Ford Motor Company and Manufacture 2030 (M2030) announced today a strategic partnership. This is to help Ford’s suppliers meet their carbon reduction targets toward Ford’s goal of reaching carbon neutrality no later than 2050 globally and by 2035 in Europe.
Ford is among the first American automakers to join M2030 and the first to include its global supply chain on the platform. M2030 is designed to help suppliers measure, manage and reduce carbon emissions.
Ford manufactures more vehicles in the US.and employs more hourly workers in America than any other automaker. It was also one of the first American automakers to align with the international community to limit the impacts of global warming as part of the Paris Climate Agreement.
Jonathan Jennings, Ford Global Vice President, Supply Chain, said: “Achieving carbon neutrality for Ford is an important corporate goal and integral to our purpose to help build a better world.
“It is becoming a strong demand from our customers, shareholders and investors, and the supply chain is essential in achieving this goal. Hitting our targets will require we cut emissions across our entire value chain, particularly from purchased energy, goods and services.
“M2030 is a key program for Ford to help us all in not only reporting emissions but in forming realistic action plans and glide paths to achieving our goals.”
In the first phase of the partnership with M2030, Ford is offering the voluntary platform to its more than 5,000 Tier 1 global supplier sites. This covers more than 66 countries, including suppliers who have yet to establish science-based carbon reduction targets.
M2030’s platform can help suppliers identify which actions to take to measure, manage and reduce carbon emissions and reduce costs as they build their carbon neutrality plans.
Cynthia Williams, Global Director Sustainability, Homologation and Compliance at Ford, said: “This is a powerful example of how Ford’s scale and proven industrial expertise can help accelerate the shift to electric vehicles and support a diverse supply chain that is good for people and the planet, and good for business.
“By working together and leveraging our collective expertise, we believe this platform will help our suppliers deliver significant carbon reductions and greater positive impact.”
Building on strong demand for its new electric vehicles (EVs), Ford recently announced a series of initiatives for sourcing battery capacity and raw materials. These light a clear path to reach its targeted annual run rate of 600,000 EVs by late 2023 and more than two million by the end of 2026.
As Ford creates a new EV supply chain that upholds its commitments to sustainability and human rights, the company continues to plan for more than half its global production to be EVs by 2030.
Ford is moving to an electric future in a big way. Back in September, the company announced it will be building a new facility in the USA where it’s investing $5.6 billion in electric vehicles and batteries. In July, Ford also announced its new global electric vehicle battery capacity plan and will be on track to hit over two million units by 2026.
This latest initiative will also support the company’s commitment to the First Movers Coalition. This is a global initiative to harness purchasing power and supply chains to create early markets for innovative clean energy technologies. As part of the coalition, Ford has committed to purchase at least 10 per cent near zero carbon steel and aluminium by 2030.
Ford has outlined specific conduct guidelines for its suppliers since 2003. In 2021, it established a formal supplier code of conduct that applies clear expectations related to human rights, the environment, responsible material sourcing and lawful business practices for every member of the company’s supplier community.
The code of conduct requires Ford suppliers to establish science-based greenhouse reduction targets, action plans, and transparent reporting mechanisms aligned with the Paris Climate Agreement to minimise their impact on climate change.