CLIMATE CHANGE AND ENVIRONMENT

Ford’s Greenhouse Gas Footprint

We are working to understand the greenhouse gas (GHG) footprint of our operations and products over their total life cycle – from raw materials extraction to manufacturing to product use and disposal at end of life. We use this broad understanding of our GHG footprint across our value chain to identify and prioritize the key areas on which to focus our GHG emissions reduction efforts.

We are in the process of assessing many elements of our GHG footprint (see Figure 2 below). We have a good understanding of GHG emissions associated with our facilities, including direct emissions from our electricity production and indirect emissions from purchased electricity, steam and heat. We also have estimates of the emissions associated with the “use” or driving phase of our products, which is by far the largest contributor to our overall GHG footprint.

Figure 1 below provides our calculation of GHG emissions from our facilities and from the use of all Ford vehicles on the road in 2012, including new sales and the legacy fleet.1 Figure 2 provides our current assessment of the relative contribution of these and other categories of emissions to our GHG footprint and information on our efforts to reduce or influence GHG emissions at these different stages across our value chain.

Figure 1: 2012 GHG Emissions from Ford’s Operations and Ford Vehicles on the Road

Million tonnes

  2012
Ford Facilities 4.8
New Ford Vehicles 25
All Other Ford Vehicles 311
Figure 2: GHG Emissions across Our Value Stages2

Logistics/Transportation (upstream/downstream) Scope 3 Indirect

Emissions Category3

Transportation of parts and finished vehicles

Contribution to Ford’s GHG Footprint

  • Small

Ford’s Efforts to Reduce or Influence Emissions

Although logistics accounts for a relatively small percentage of our vehicles’ total life cycle emissions, we are working hard to maximize the efficiency of these operations to reduce their environmental impact. We are also measuring GHG emissions from logistics as part of our efforts to understand and reduce these emissions.

Also see:

Supplier Parts Manufacturing (downstream) Scope 3 Indirect

Emissions Category3

Supply chain (purchased goods and services, capital goods)

Contribution to Ford’s GHG Footprint

  • Under investigation

Ford’s Efforts to Reduce or Influence Emissions

We are working to understand the GHG emissions from our key suppliers’ facilities. And, we are continuing to expand our approach to enhancing supplier environmental performance.

Also see:

Ford Manufacturing Scope 1 Direct

Emissions Category3

Direct electricity production, direct consumption of fossil fuels for non-electricity applications

Contribution to Ford’s GHG Footprint

  • Small

Ford’s Efforts to Reduce or Influence Emissions

We are taking many steps to reduce our energy use. We are also using on-site renewable energy sources at some facilities to reduce our direct carbon emissions.

Also see:

Ford Manufacturing Scope 2 Indirect

Emissions Category3

Purchased electricity and heat

Contribution to Ford’s GHG Footprint

  • Small

Ford’s Efforts to Reduce or Influence Emissions

We are taking many steps to reduce our energy use.

Also see:

Ford Manufacturing Scope 3 Indirect

Emissions Category3

Employee travel and commuting

Contribution to Ford’s GHG Footprint

  • Small

Ford’s Efforts to Reduce or Influence Emissions

Though this is a very small element in our overall GHG footprint, we are reducing employee travel and commuting emissions in a number of ways, including allowing telecommuting, encouraging virtual meetings, and facilitating employees’ use of electric vehicles by offering on-site vehicle charging at many facilities.

Sales and Service Scope 3 Indirect

Emissions Category3

Dealerships

Contribution to Ford’s GHG Footprint

  • Not currently measured

Ford’s Efforts to Reduce or Influence Emissions

We are working with our dealers to reduce the GHG emissions of their operations, including funding energy efficiency upgrades and piloting on-site renewable energy.

Also see:

Product Use Scope 3 Indirect

Emissions Category3

Vehicle use phase

Contribution to Ford’s GHG Footprint4

  • Large

Ford’s Efforts to Reduce or Influence Emissions

We have a comprehensive plan for reducing the GHG emissions from our vehicles and are making progress on our climate stabilization goals and vehicle GHG emissions. We also have programs to help consumers make more fuel-efficient driving choices.

Also see:

End of Life Scope 3 Indirect

Emissions Category3

End of life product disposal

Contribution to Ford’s GHG Footprint

  • Small

Ford’s Efforts to Reduce or Influence Emissions

We are working to improve the end-of-life management of our vehicles, including increasing their recyclability.

Also see:

We are working to gather the information we need to provide an accurate and complete estimate of our total GHG footprint, especially the data for many of the Scope 3 emissions categories such as emissions from our supply chain, the transportation of parts and finished products, and our dealerships. We prefer to have a high level of confidence about measurements and estimates of these different categories before reporting values. However, we are continually working to improve this understanding and will continue to provide updates on our GHG footprint through this report and other sources.

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  1. This calculation differs from the Scope 3 definition of “use of sold products” in the World Resource Institute’s and World Business Council for Sustainable Development’s GHG Protocol method for accounting and reporting GHG emissions from organizations, which estimates the life cycle emissions of all products sold during the reporting year.

  2. In Figure 2, Scope refers to the World Resource Institute’s and World Business Council for Sustainable Development’s GHG Protocol method for accounting and reporting GHG emissions from organizations. Please see the How We Are Assessing Our GHG Footprint section for definitions of these scopes. Or for more details see the GHG Protocol website (pdf, 5.9Mb).

  3. The scopes and emissions categories in this graphic are based on the GHG Protocol. That protocol includes more emissions categories than we present here; we have chosen to focus on the categories that are most significant to our operations. For a complete list of the GHG emissions categories please see the GHG Protocol Scope 2 guidance revised (pdf, 3.5Mb) and final (pdf, 3.5Mb) and Scope 3 guidance (pdf, 5.9Mb).

  4. GHG emissions during the “use” phase of our vehicles are actually contained within the GHG footprints of millions of our customers around the world, who make their own individual decisions regarding not only what vehicles to purchase or lease, but also how often, how far and how aggressively to drive those vehicles. Although these day-to-day customer decisions are not within our control, we recognize that our vehicles’ fuel efficiency and other GHG-related characteristics are significant factors in determining our customers’ aggregate GHG emissions from the use of our products. Accordingly, we include this “use” phase as part of our GHG footprint for purposes of this report.