Ford Motor Company

RATING

SECTOR

Automotive

WEBSITE

CONTACT

1 American Road Dearborn, Dearborn, MI 48126

Tel: +1-800-565-3673

STOCK EXCHANGE

LISTING

  • 2020 Fortune Global 500 (100) By Fortune #31
  • 2020 Fortune U.S. 500 (100) By Fortune #12
  • 2019 Fortune Global 500 (100) By Fortune #30
  • 2019 Fortune U.S. 500 (100) By Fortune #12
  • 2019 CR Magazine’s 100 Best Corporate Citizens – #11
  • 2018 Fortune U.S. 500 (100) By Fortune #11
  • 2018 The World’s Most Valuable Brands By Forbes #42
  • 2017 marks the eighth year in a row Ford Motor Company has been named one of the World’s Most Ethical Companies by the Ethisphere Institute
  • 2017 World’s Most Admired Company by Fortune
  • 2016 The Just 100: America’s Best Corporate Citizens by Forbes
  • 2016 America’s Best Employer by Forbes
  • 2016 Top Green Company by Newsweek
  • 2016 World’s Most Attractive Employer for Engineering and IT by Universum
  • 2016 100% on the Human Rights Campaign’s Corporate Equality Index.

EMPLOYEES

190,433

CHIEF SUSTAINABILITY OFFICER

Bob Holycross  

AWARDS

  • The all-electric Ford Mustang Mach-E and the all-new F-150 have earned Green Car Journal’s 2021 Green Car of the Year and Green Truck of the Year awards.
  • 2020 The World Environment Center (WEC) is pleased to announce that its 36th annual Gold Medal for International Corporate Achievement in Sustainable Development will be awarded to Ford Motor Company
  • 2019 Society of Plastic Engineers Environmental Award for creating the first injection molded under hood emission control component, made from 100% post consumer recycled carpet resulting in a 25% cost reduction and no impact on performance
  • 2019 USGBC Sustainable Innovation award for Ford Factory
  • 2019 Carbon Disclosure Project (CDP), the environmental impact nonprofit that drives sustainable economies, awarded Ford an A for water security, in recognition of its efforts to manage water sustainably
  • 2019 Carbon Disclosure Project (CDP) also awarded Ford an A as a company most prepared for climate change
  • 2018 Ambassador Award – Women’s Business Enterprise Great Lakes
  • 2018 Excellence in Supplier Diversity – Women’s Business Enterprise Great Lakes
  • 2018 Best of the Best for Veteran-Friendly Company – US Veterans Magazine
  • 2018 Top Supplier Diversity Program – US Veterans Magazine
  • 2018 ACE Award for Corporation Of the Year – Michigan Minority Supplier Diversity Council
  • 2018 Benchmark Award – Rainbow Push
  • 2018 Corporation of the Year – Michigan Hispanic Chamber of Commerce
  • 2018 Top Corporation – Womens Business Enterprise National Council

CONTENT SOURCE

FURTHER READING

Report created by Kavita Kripalani  

Ford Motor Company

SECTIONS :  Sustainability    Evaluation  •  Progress  •  Watch  Overview

Company Activity

Ford Motor Company, commonly known as Ford, is an American multinational automaker that has its main headquarters in Dearborn, Michigan, a suburb of Detroit. It was founded by Henry Ford and incorporated on June 16, 1903.

Since 1903, Ford Motor Company has put the world on wheels. Since 1903, Ford Motor Company has built iconic vehicles, including Model T, Continental, Mustang, F-series, and Bronco. They have also manufactured many other products, such as airplanes, radios, refrigerators, postal machines, and weather satellites, answered the call for manufacturing medical supplies, including PPE for first responders and frontline healthcare workers.

Ford Motor Co. engages in the manufacture, distribution, and sale of automobiles. It operates through the following three segments: Automotive, Mobility, and Ford Credit.

  • The Automotive segment engages in developing, manufacturing, marketing and servicing of Ford cars, Lincoln vehicles.
  • The Mobility segment includes Ford Smart Mobility LLC and autonomous vehicles business.
  • The Ford Credit segment comprises Ford Credit business on a consolidated basis, which is primarily vehicle-related financing and leasing activities.

The company was founded by Henry Ford on June 16, 1903 and is headquartered in Dearborn, MI.

Company Sustainability Activity

Ford is spiring to achieve carbon neutrality globally by 2050, Ford focuses on vehicle use, suppliers and factories, which together represent 95% of their emissions. They also need to address many external factors, including government policies, technical solutions, energy price fluctuations and changes in consumer demand. They will advocate for key enablers that support their aspirational goal and encourage collaboration between stakeholders.

Highlights

  • Goal: 100% renewable energy for all manufacturing sites by 2035
  • Goal: Achieve carbon neutrality globally by 2050
  • Human: 190,433 people employed 10,921 dealers Around 1,200 Tier 1 suppliers 
  • Social and Relationship: Provides communities access to opportunities for improvement for more than 70 years, Community partnerships with non-profits and dealers in more than 50 countries
  • Financial: $156 billion in revenue generated in 2019 Investing more than $11.5 billion in electrified vehicles through 2022 Manufactured 55 manufacturing and assembly plants 8 regional engineering, R&D centers Investing more than $4 billion through 2023 on launching a self-driving service 
  • Intellectual: 4,884 global utility patents issued, Over 100 years as pioneers in the auto industry – and 20 years’ experience in EVs Natural 12.97 billion kWh of energy used 19.4 million gallons of water used for manufacturing processes (19% from groundwater)
  • Most of their in-person supplier training is delivered through the AIAG or Drive Sustainability, an organization committed to increasing sustainability and supply chain management efforts in the automotive industry. 
  • Customers: Financial assistance and deferred payments for customers impacted by COVID-19; 5.38 million vehicles sold; Created the largest EV public charging network in the United States
  • Investors: $2.6 billion as dividends to shareholders
  • Suppliers: More than $15 billion spent from minority-, women- and veteran-owned companies and small businesses in 2019; Best practices cascaded through PACE program
  • Communities: Over $2 billion invested in communities to date; $10 million invested in Detroit over four years; Inaugural SHE-MOVES grant program, supporting social enterprises in India,
  • Nigeria and South Africa
  • Society: $740 million invested in Detroit’s Michigan Central Station Face shields, ventilators and respirators manufactured in response to COVID-19

Targets

Climate Change

  • Ford aspires to achieve carbon neutrality by 2050
  • Aspiring to achieve carbon neutrality globally by 2050, they focus on vehicle use, suppliers and factories, which together represent 95% of their emissions. They also need to address many external factors, including government policies, technical solutions, energy price fluctuations and changes in consumer demand. They will advocate for key enablers that support their aspirational goal and encourage collaboration between stakeholders.
  • Reduce carbon footprint

Energy 

  • Ford will use 100% locally sourced renewable energy for all manufacturing plants globally by 2035 

Air 

  • Ford aspires to achieve zero air emissions from our facilities 

Materials 

  • Ford aspires to only use recycled and renewable plastics in their vehicles globally

Access 

  • Ford aspires to drive human progress by providing mobility and accessibility for all 

Human Rights 

  • Ford aspires to responsibly source all raw materials used within their vehicles globally 
  • Ensure everything they make or that others make for them is consistent with local laws and their own commitment to respecting human rights 
  • Help suppliers build their capacity to manage supply chain sustainability issues
  • Assess Tier 1 suppliers’ compliance with local laws and Ford’s supply chain sustainability expectations
  • Improve the transparency of mineral sourcing and increase the capacity of conflict-free smelters
  • Continue to purchase from veteran-, minority- and women-owned businesses

Waste 

  • Achieve true zero waste to landfill across their operations 
  • Eliminate single-use plastics from their operations by 2030
  • Reduce waste to landfill by 21% when measured in kg per unit
  • Reduce general trash by 15% when measured in kg per unit
  • Improve waste avoidance by 10% when measured in kg per unit
  • Eliminate single-use plastics by 2030

Water 

  • Make zero water withdrawals for manufacturing processes 
  • Use freshwater for human consumption only
  • Save an additional 30% of the water from our manufacturing (2015–2020)
  • Use freshwater sources for human consumption only
  • Make zero water withdrawals for manufacturing processes
  • Work with selected suppliers to reduce our collective environmental footprint

Diversity 

  • Aspire to become the most inclusive and diverse global company
  • Integrate diversity and inclusion across the enterprise
  • Create an environment of inclusion
  • Drive diversity and inclusion-focused learning across the enterprise to reduce unconscious bias
  • Promote gender parity and equal pay

Progress

  • Combined car and truck fuel economy fell by 0.3% in 2019 
  • Award-winning EcoBoost® and EcoBlue technology now used in 8 million engines worldwide 
  • Published second Climate Change Scenario Report 
  • By switching to aluminum, reduced the weight of the 2018 Lincoln Navigator by 200 pounds, the 2018 Ford Expedition by 300 pounds and the 2017 Ford Super Duty by 350 pounds
  • incorporating graphene, a strong but light carbon-based material, to all our vehicles, starting with the Ford F-150 and Mustang
  • Offer several models powered by ethanol and biodiesel
  • A wide range of commercial vehicles and certain passenger vehicles run on compressed natural gas (CNG) and liquefied petroleum gas (LPG)
  • Set an interim goal of 20% sustainable material by 2025 Since 2000, they have used 12 industry- and world-first plant-based materials in their production vehicles, they are researching the possible use of tomato skin, bamboo, agave fiber, dandelion roots, algae and coffee chaff
  • Working to reduce emissions of non-CO2 pollutants, in accordance with increasingly stringent standards around the world 
  • In February 2019, announced the largest renewable energy procurement in our history through a collaboration with DTE Energy
  • Surveyed 253 production suppliers (83%) using the CDP Supply Chain program’s Climate Change questionnaire, and 162 suppliers (78%) responded to the CDP Water questionnaire
  • Shared best practices examples with 56 key Tier 1 suppliers through the Partnership for A Cleaner Environment (PACE) and introduced a streamlined version, FastPACE, in Asia Pacific. Suppliers in the PACE program expect to save 680,000 metric tons of CO2 over the next five years
  • Cutting GHG Emissions From Facilities: Achieved  previous GHG emissions target eight years early, through initiatives such as installing LED lights and updating our painting operations
  • In 2019, reduced their absolute emissions by 14.6%, or 0.64 million metric tons – the equivalent of more than 138,000 passenger vehicles being driven for a year. 
  • Conducted a formal assessment of our salient human rights issues, in line with the UNGPRF 
  • Developed and started to roll out human rights action plans 
  • We have conducted around 50 human rights assessments against our Policy Letter 24 since 2004
  • Determined 22 high-priority countries, based on an annual human rights risk analysis 
  • We conducted 15 training sessions on human rights, working conditions, business ethics and the environment
  • Aligned 100% of their 79 Aligned Business Framework (ABF) production suppliers’ codes of conduct with theirr Policy Letter 24
  • Completed 1,186 supplier audits and 1,612 follow-up assessments to date 
  • Conducted 23 new audits in 2019 using the RBA Validated Assessment Process methodology (100% certified by the RBA)
  • Achieved a 100% response rate from in-scope suppliers for conflict minerals 3TG reporting 
  • Implemented a responsible sourcing of raw materials strategy
  • Purchased goods and services worth $8.49 billion from minority-owned suppliers, $1.53 billion from women owned businesses, $0.179 billion from veteran-owned companies and $5.22 billion from small businesses
  • Ford Driving Skills for Life reached 40,000 participants in 2019 and is currently active in 31 countries
  • They are a founding member of the American Center for Mobility, They are a partner in Automated Driving Applications and Technologies (AdaptIVe), Europe’s largest research project on automated driving, They have established partnerships with a range of universities, including Purdue University and Virginia Tech
  • 102 zero waste to landfill sites, up from 88 
  • Recorded a 21% reduction in waste to landfill per vehicle over the period 2018–2020
  • Standardizing the tracking and sorting of waste to increase recycling and reuse
  • Implementing technologies and programs that minimize waste, they are working with suppliers to increase the use of eco-friendly packaging
  • Established an interim target of 20% renewable and recycled plastics by 2025
  • Reduced their absolute operational water use by 13% since 2018 and by 70% since 2000 (saving more than 11 billion gallons)
  • Installed more non-water-based technologies and used alternative sources such as other companies’ treated wastewater
  • Incorporating more water processes and technologies in our assembly plants, including water reuse and recycling systems
  • Shared best practice examples with 56 key Tier 1 suppliers through PACE, and introduced a streamlined version, FastPACE, in Asia Pacific. PACE participants expect to save an estimated 470 million gallons of water in their operations from 2019 to 2030
  • Firmly embedded diversity and inclusion in their People Strategy and Culture Operating System to support their overall corporate strategy
  • Signed the CEO Action for Diversity & Inclusion pledge in 2018 
  • Hosted the Check Your Blind Spots Tour in July 2019 
  • Became a signatory to the United Nations Women’s Empowerment Principles in February 2020 
  • Led the global Day of Understanding across all Ford markets in March 2020, they used Employee Resource Groups (ERGs) to serve their membership, the business, customers and communities around the globe 
  • Launched virtual Lunch Series around belonging and inclusion 
  • 20,000 salaried employees globally attended facilitated or online unconscious bias learning sessions
  • For the second year in a row, Ford was included in the Bloomberg GEI in 2020, their Global Salaried Gender Pay Ratio is 98.2%

     

    Ford commits to the following ESG Disclosures:

    • Task Force on Climate Related Financial Disclosures (TCFD): 2020 Climate Change Scenario Report provides scenario planning across climate change and technology dimensions. In March 2020, Ford formally committed to TCFD
    • Carbon Disclosure Project (CDP): 2020 CDP Response is an important tool for managing the risks and opportunities presented by climate change and water security, achieved CDP “A List” for both ratings
    • Sustainability Accounting Standards Board (SASB): 2020 Sustainability Report marks the second time that Ford has reported to the SASB framework against the Transportation Standards
    • Global Reporting Initiative (GRI): 2020 GRI Index responds to material issues across planet, people, innovation, and governance categories
    • UN Sustainable Development Goals (SDG): 2020 UNGPRF Frameworks contains Ford’s initiatives and progress on respecting Human Rights

Certificates

  • Updating fleets to meet the requirements of ISO 14001 and other regulatory standards
  • All (100%) of Ford’s 2019 global facility GHG emissions will be third-party verified to a limited level of assurance in conformance with ISO 14064-1:2018.
  • Completed in late 2019, the Central Energy Plant will be certified Leadership in Energy and Environmental Design (LEED) Gold

UN Sustainable Development Goals

UN SDGs Compliance

SDG 3

  • Their Plug-In Hybrid Ford Transit Custom van was the centerpiece of a year-long trial in London to see if PHEVs could help improve air quality in cities with clean air targets. Supported by a £4.7 million grant from the U.K.’s Advanced Propulsion Centre, a range of businesses covered 150,000 miles in 20 PHEVs to test whether they could carry out their typical duties while using zero-emissions power.
  • Responding to COVID-19 to support their workforce, Ford introduced Working Remotely resources to ramp up from approximately 1,000 employees working from home to over 115,000 virtual workers. Ford@Home communicates weekly key resources to help employees take care of themselves and others, stay connected to their teams, and get work done.  

SDG 5 

  • Leveraging the diversity of their people makes our business stronger and helps us reflect the communities in which we live and work. They have embedded diversity and inclusion in their People Strategy to create a culture that enables us to attract, retain and develop top talent. They have many teams and Employee Resource Groups focused on inclusion, supported by partnerships fostering diversity among suppliers, communities and customers. Jim Hackett, their President and Chief Executive Officer (CEO), committed to the CEO Action for Diversity & Inclusion pledge and they became a signatory to the United Nations Women’s Empowerment Principles. For the second year in a row, Ford was included in the 2020 GEI in recognition of its commitment to transparent gender reporting and workplace equality. And to support their aspiration to become the world’s most trusted company, they published our GEI survey responses along with our Sustainability Report. They also received a perfect score of 100 on the Disability Equality Index Best Places to Work list. For more details, see the 2019 Diversity Performance Metrics report section.

SDG 6

  • Water reuse and recycling are occurring at plants around the world. To help cut their water consumption further, they continue to incorporate more water efficient processes and technologies. For example, at their Irapuato Transmission Plant in Mexico, internally treated and externally sourced non-potable water are used. In China, treated wastewater recycling systems have been installed at four assembly plants. And in the United States, the Flat Rock Assembly Plant and Kansas City Assembly Plant have recycling and reuse systems to generate treated wastewater to supplement water use in paint shops.

SDG 7

  • To reduce the energy and emissions footprint of their manufacturing processes, Ford continues to invest in state-of-the-art facilities and new production techniques, guided by their global Carbon Reduction Strategy for manufacturing and our aspiration to achieve carbon neutrality by 2050

SDG 8

  • They rely on the skills of thousands of employees and people in our supply chain. Everything they make – or that others make for them – needs to be consistent with local laws and our own commitment to protecting human rights, which they identify through their salient human rights assessment process. They serve on the Board of Directors of the Responsible Business Alliance (RBA), actively participate in several workgroups and use its Validated Audit Protocol to assess labor, health and safety, management systems, ethics and environmental issues. In addition, they assist suppliers with priority non-conformances by offering RBA e-learning modules, developing corrective action plans and monitoring progress.

SDG 9

  • Helping employees stay up to speed with the latest technologies required by the automotive industry, they research new techniques, explore alternative digital strategies, and offer learning opportunities in the skills and capabilities required by the “Factory of Tomorrow.” The renovated UAW-Ford Technical Training Center reopened in 2019 with new courses in Advanced Manufacturing Engineering and emerging skills like drone piloting, 3D printing, robotics and networking technology. They are also committed to identifying and engaging with the next generation by working with high schools, colleges and universities. Students can undertake practical assignments at Ford, while research can be directed toward the anticipated needs of their business.

SDG 10

  • Ford states that everyone has the right to feel safe, and to be themselves, at work, so they identify harassment and discrimination as a salient human rights issue.

SDG 11

  • Hybrid Vans Support Drive for Cleaner City Air: Ford’s Plug-In Hybrid Ford Transit Custom van was the centerpiece of a year-long trial in London to see if PHEVs could help improve air quality in cities with clean air targets. Supported by a £4.7 million grant from the U.K.’s Advanced Propulsion Centre, a range of businesses covered 150,000 miles in 20 PHEVs to test whether they could carry out their typical duties while using zero-emissions power.

SDG 12

  • We have demonstrated our commitment to doing the right thing by pursuing a voluntary agreement with California in which we commit to more stringent vehicle emission reductions than the Federal regulations require.

SDG 13

  • Aspiring to achieve carbon neutrality globally by 2050, they focus on vehicle use, suppliers and factories, which together represent 95% of their emissions. They also need to address many external factors, including government policies, technical solutions, energy price fluctuations and changes in consumer demand. They will advocate for key enablers that support their aspirational goal and encourage collaboration between stakeholders.
  • With a heightened focus on ESG-related reporting, they are continuously working toward improving our transparency through the disclosure of all ESG risk factors. Among the risk factors included in their Annual Report on Form 10-K for the year ended December 31, 2019, were specific ESG-related risks, including climate-related physical risk and employee recruitment and retention – ensuring that they attract and retain talented and diverse employees.

Evaluation

The company has industry-recognized certifications and has earned commendable rankings, not only as an employer, but also in ethics and sustainability.

Though the company was associated with one of the most shocking automobile scandals decades ago, it has since worked hard to reinvent itself to redeem its reputation and legitimacy by leaps and bounds.

Ford’s sustainability report incorporates specific UN SDGs, clear goals, and detailed evidence of their progress.

The company works to address sustainability head-on in various aspects of their business. They are transparent in communicating their targets and KPIs, and have adopted robust sustainability disclosure practices to truly hold themselves accountable.

At the same time, it should be taken into account that the automotive industry is a top contributor to the adverse affects climate change; the company should remember to not lose sight of this when making their business decisions.

The company achieves a rating of B.

Analyst Outlook: Negative

The company should continue refining their targets, making substantive, impactful progress, and striving to obtain even higher rankings and accolades.

Key Points

  • Ford was involved in several controversies over the environmental impact of its vehicles from as far back as the 1970s, the most infamous one being the Ford Pinto scandal in which Ford was obliged to recall all 1971-76 Pintos for fuel-tank modifications. Between 1971 and 1978, the Pinto was responsible for a number of fire-related deaths and approximately fifty lawsuits were brought against Ford in connection with rear-end accidents in the Pinto.
  • In 2001, the Firestone recall and a slowed economy placed Ford in danger of bankruptcy.
  • Since their purposeful leadership change in 2006, Ford has been making outstanding progress in sustainability and restoring their company reputation
  • Ford avoided a bailout from the government in the 2008-2009 recession, which showed that they were financially viable enough to get through economic challenges. This helped improve their reputation. 
  • Ford has been named one of the World’s Most Ethical Companies by the Ethisphere Institute for eight years in a row
  • Ford is helping in the fight against Covid-19, including development of a Powered Air-Purifying Respirator (PAPR), Model A-E ventilators, face shields and testing kits. 
  • Aspiring  to achieve carbon neutrality globally  by 2050
  • Committing  to the Paris Climate  Agreement  and committing  to working with  California  to adopt meaningful GHG  emissions  reductions  (only full  line  U.S. automaker  committed  to both)
  • Investing  more than  $11.5 billion  through 2022 to deliver  a portfolio  of hybrids,  plug in  hybrids  and Battery Electric Vehicles (BEV) to meet our customers’ evolving needs and preferences
  • Became a signatory to the United Nations (UN) Women’s Empowerment Principles in February 2020
  • Appeared  in the Bloomberg Gender Equality Index for the second straight  year
  • Received a perfect score of 100 in the 2019 Disability Equality  Index
  • Continued commitment to the CEO Action Pledge for Diversity & Inclusion™
  • Supported the Task Force on Climate related Financial  Disclosures (TCFD) that fully  discloses  their governance around climate-related  risks  and opportunities

 

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