In an industry first, Ford Motor Company has issued a report addressing
the business implications of climate change, carbon dioxide emissions
and global energy concerns.
"I am proud to say that Ford Motor Company is one of the first
companies to have open discussions about climate change," said Bill
Ford, chairman and CEO. "We see climate change as a business issue as
well as an environmental issue and we're accelerating our efforts to
find solutions. Addressing this issue will require collaborative action
across all sectors of our society and I'm committing Ford Motor Company
to do its part."
The report addresses how concerns about emissions of greenhouse
gases, including CO2, are linked to other factors affecting the
business; the steps the company is taking to manage the risks and
capture opportunities associated with climate change; and the market,
policy, social and technological enablers required to achieve
significant changes in the industry's carbon footprint.
Ford's report recognizes the importance of precautionary, prudent
and early actions to stabilize greenhouse gas concentrations in the
atmosphere. It also highlights the need for integrated approaches by
fuel companies, vehicle manufacturers, consumers and policy makers.
For its part, Ford Motor Company is pursuing a three-pronged strategy:
- Continuously reducing the greenhouse gas emissions and energy use of company operations.
- Enhancing the flexibility and capability to market lower-greenhouse gas-emissions products that will attract consumers.
- Working with
industry partners, oil companies and policy makers to establish an
effective and more certain market, policy and technological framework
for reducing road transport greenhouse gas emissions
"Climate
change and energy security affect our operations, our customers, our
investors and our communities," said Niel Golightly, director,
Sustainable Business Strategies. "So you can be sure we see these
issues as important to our long term business competitiveness. Some
view these challenges as yet another burden on an already stressed
industry; but we see potential for innovative business opportunities in
solving them.
"This report is a snap shot of work we've been doing for over five
years," said Golightly. "And it points to where we're going. It
challenges some assumptions about what our industry can do by itself;
but it also suggests some paths toward collaborative solutions that
make economic sense."
A shareholder resolution filed in November 2004 by the Interfaith
Center on Corporate Responsibility (ICCR), Ceres (a coalition of
investors and environmental groups and founder of the Investor Network
on Climate Risk) and others was subsequently withdrawn in March 2005
when Ford announced it would publish this report. The report was
drafted under the direction of the company's cross-functional,
vice-presidential task force and was reviewed by the Environmental and
Public Policy Committee of the Board of Directors.
In addition to ICCR and Ceres, Ford considered views from other
external stakeholders and experts in developing this report, among them
the Massachusetts Institute of Technology, Princeton University's
Carbon Mitigation Initiative, the Union of Concerned Scientists (UCS)
and the Natural Resources Defense Council (NRDC).
"Ford leads the industry in this vital service to investors, the
auto industry itself, and U.S. citizens as this report considers the
realities of global warming in their business plan, and in their
commitment to engage policy solutions," said Caldwell Dominican Sister
Patricia Daly, OP executive director of the Tri-State Coalition for
Responsible Investment and lead filer for the ICCR members. "Ford
clearly understands that global warming is a serious environmental and
financial issue, and that climate-friendly vehicles must be part of the
solution," said Mindy S. Lubber, president of Ceres and director of the
Investor Network on Climate Risk, an alliance of investors with nearly
$3 trillion of assets. "Investors see Ford's actions to analyze the
business and competitive implications of climate change as an important
step. This, coupled with strong leadership from the company to develop
meaningful climate policy solutions in Washington, would be a winning
recipe that would allow all U.S. companies to move full-throttle into
the clean energy economy."
The report highlights company commitments that address the industry's greenhouse gas footprint. These include:
- Producing up to 250,000 hybrid vehicles annually by 2010.
- Expanding the
production of flexible fuel vehicles (FFVs) which can use blends of up
to 85% ethanol (E85). Ford will also support the expansion of the E85
infrastructure and promote the advantages of FFVs to consumers.
- Committing to
reduce the greenhouse gas emissions from its North American plants by
6% by 2010 as part of the Chicago Climate Exchange.
- Reducing greenhouse gas emissions by 5% over five years in Ford plants subject to the U.K. Emissions Trading Scheme.
- Offsetting
the CO2 emitted from the production of its hybrid vehicles -beginning
with the Ford Escape Hybrid. For every ton of carbon emitted in the
creation of the vehicle, the company will purchase an offset. Ford will
also develop materials for consumer education that will create a level
of understanding of what an offset is and how customers can act on
further offset opportunities.
- Introducing
an "Eco-Driving" Web-based program to all U.S. salaried employees
during the first half of 2006. The program is designed to heighten
awareness of driving behaviors and their relationship with emissions
and fuel economy. Ford will look to make this program available to the
global company workforce as well as agency support and suppliers.
With
the report's release, Ford hopes to contribute to the larger public
dialogue on the decisions, tradeoffs and actions required to address
climate change concerns.
Ford's Climate Change Report is available
online.
