Ford Motor Company partners with Manufacture 2030 to improve supply chain sustainability

Ford Motor Company and Manufacture 2030 recently established a strategic alliance to help Ford suppliers meet their carbon reduction targets in support of Ford’s goal to become carbon neutral globally by 2050 and in Europe by 2035.

Ford was one of the first U.S. automakers to enroll in Manufacture 2030 and the first to do so with the inclusion of its entire global supply chain. M2030 is intended to help suppliers track, control and reduce carbon emissions. Ford is the largest automaker in the United States, employs the most hourly workers nationwide, and was one of the first American automakers to partner with other countries to reduce the effects of the global warming under the Paris climate agreement.

“Achieving carbon neutrality for Ford is an important corporate goal and an integral part of our goal to help build a better world,” said Jonathan Jennings, Ford’s global vice president of supply chain. “This is becoming a strong demand from our customers, shareholders and investors, and the supply chain is key to achieving this goal. To achieve our goals, we will need to reduce emissions across our entire value chain, particularly those from the purchase of energy, goods and services. M2030 is a key program for Ford to help us not only report emissions, but also develop realistic action plans and navigational pathways towards achieving our goals.

Ford is providing the optional platform to its more than 5,000 global Tier 1 supplier sites in more than 66 countries as part of the first phase of its partnership with M2030, including suppliers who have not yet defined scientific targets for reducing carbon emissions. As suppliers develop their carbon neutral strategies, the M2030 platform can help them decide what steps to take to measure, manage and minimize carbon emissions and costs.

“This is a powerful example of how Ford’s scale and proven industry expertise can help accelerate the shift to electric vehicles and support a diverse supply chain that’s good for everyone. people and the planet, and good for business,” said Cynthia Williams, global director of sustainability, certification and compliance at Ford. “By working together and leveraging our collective expertise, we believe this platform will help our suppliers significantly reduce their carbon emissions and have a greater positive impact.”

Ford recently announced a number of battery capacity and raw material sourcing initiatives, building on strong demand for its new electric vehicles. These initiatives set a clear path toward Ford’s targeted annual operating rates of 600,000 electric vehicles by the end of 2023 and more than 2 million by the end of 2026. Ford continues to plan that more than half of its global production will be electric vehicles by 2030 as it develops a new electric vehicle supply chain that meets its commitments to sustainability and human rights.

The initiative will also help the company fulfill its commitment to the First Movers Coalition, a global initiative to use supply chains and purchasing power to grow first markets for advanced clean energy solutions. Ford has pledged to purchase at least 10% near-zero carbon steel and aluminum as a coalition member by 2030.

Since 2003, Ford Motor Company has set clear expectations of its suppliers regarding human rights, the environment, responsible sourcing of materials and legal business operations. In 2021, Ford formalized these expectations with the establishment of a formal Supplier Code of Conduct.

To reduce their impact on climate change, Ford suppliers are required by the Code of Conduct to develop action plans, clear reporting methods and science-based greenhouse gas reduction targets consistent with the Paris climate agreement.

Source and photo: Ford

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