Ford Motor Co. and Manufacture 2030 (M2030) announced a strategic partnership to help the automaker’s suppliers achieve carbon neutrality by 2050 globally and 2035 in Europe at the latest.
According to the group’s website, M2030 began working in 2008 to find new ways to spread sustainable practices in global supply chains. Ford is the first American automaker to partner with the group. In a joint press release from M2030 and Ford, the goal of this work is to help suppliers measure, manage and reduce carbon emissions.
“Achieving carbon neutrality for Ford is an important goal for the company and an integral part of our mission to help create a better world,” said Jonathan Jennings, Ford’s global vice president of supply chain. “This is becoming a high demand from our customers, shareholders and investors, and the supply chain is essential to achieving this goal. Achieving the targets requires reducing emissions across the value chain, particularly from purchased energy, goods and services. M2030 is a key program for Ford that helps us all not only report emissions, but create realistic action plans and directions to achieve our goals.
In the first phase of the partnership, Ford will offer a voluntary platform to its more than 5,000 global Tier 1 suppliers, spanning more than 66 countries, including suppliers that have not yet established science-based carbon reduction targets.
“This is a powerful example of how Ford’s scale and proven industry expertise can help accelerate the transition to electric vehicles and support a diverse supply chain that benefits people, planet and business,” said Cynthia Williams, Ford Sustainability and Homologation Representative. and Global Director of Compliance. “We believe that by working together and leveraging our collective expertise, this platform will help our suppliers achieve significant carbon reductions and greater positive impact.”
Backed by strong demand for its new electric vehicles (EVs), Ford in July unveiled a series of initiatives to source battery capacity and raw materials that will “light a clear path” to reach a target of 600,000 electric cars by the end of 2023 and beyond. Over 2 million by the end of 2026. Ford plans to make more than half of its global production electric vehicles by 2030.
The initiative also supports the company’s commitment to the First Movers Coalition, a global initiative to use purchasing power and supply chains to create early markets for innovative clean energy technologies, according to the release. As part of the coalition, Ford commits to purchasing at least 10% near-zero carbon steel and aluminum by 2030.
Ford has outlined specific codes of conduct for its suppliers since 2003, and in 2021 introduced a formal Supplier Code of Conduct, which includes human rights, environmental, responsible material sourcing and legal business practices expectations for every member of the company’s supplier community.
General Motors is also eyeing an electric and carbon-neutral future, recently declaring its fast-growing electric vehicle portfolio to be firmly profitable in North America by 2025 as the region’s electric vehicle capacity is ramped up to more than 1 million units per year. .
“GM’s ability to grow electric vehicle sales is a return on many years of investment in research and development, design, engineering, manufacturing, our supply chain and a new electric vehicle customer experience designed to be the best in the industry,” said GM’s chairman and CEO. Mary Barra. “Our multi-brand, multi-segment, multi-price point EV strategy gives us incredible leverage to grow revenue and market share, and we believe our Ultium platform and vertical integration will allow us to continuously improve battery performance and cost.”
Over the next three years, GM plans to move “very aggressively” toward EV leadership, with adoption expected to approach 20% of US industry sales by 2025. Plans include:
- Several segments of pickup trucks, SUVs, and luxury vehicles, which account for about 70% of EV industry volume;
- A new digital retail platform with U.S. dealers to improve the buying and shopping experience for EV customers and reduce GM’s costs by an estimated $2,000 per vehicle;
- Building electric cars at five GM assembly plants in the US, Canada and Mexico;
- Ultium Cells, GM’s battery cell joint venture, will operate plants in Ohio, Tennessee and Michigan by the end of 2024; and
- Continues to secure battery raw material needs beyond 2025 through strategic supply agreements and direct investments in resource recovery, processing and recycling.
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