By Liz Door, Chief Supply Officer, and Mary Wroten, Executive Director of Environmental Quality and Sustainability
At Ford, our purpose is bigger than building vehicles. We’re driven by a desire to help build a better world — for people, for the communities where we live and work, and for the planet we all share.
Our purpose gives us a vision to aspire to, but from a practical perspective, building a better world means we need to have a plan. That’s why Ford has set an ambitious goal: We’re committed to achieving carbon neutrality across our vehicles, operations and supply chain by 2050. The innovation we’re putting into Ford to reduce the footprint of our vehicles is one part of the carbon neutrality equation. Reducing emissions in our operations is another.
To this end, Ford has made it a priority to invest in renewable energy sources like geothermal, solar and wind, and, through this strategy, we’re making notable progress toward our objectives. Through our 2022 agreement with DTE Energy in Michigan, for example, we made the largest renewable energy purchase by a corporation from a utility in U.S. history. In 2023, our global manufacturing operations used more than 70% carbon-free electricity — more than half was renewable electricity. And by 2026, every Ford vehicle manufactured in Michigan will be assembled with the equivalent of 100% carbon-free electricity — nine years earlier than our global goal of 100% carbon-free electricity by 2035.
We’re also looking to our supply chain to make further emissions reductions, working closely with our suppliers and partners around the globe to bring them along on our Road to Better journey. Ford is creating high standards for our suppliers and leading transformation in the automotive sector through several renewable energy initiatives. These include our strategic partnership with Manufacture 2030, which is designed to help suppliers measure, manage and reduce carbon emissions, as well as our role as a founding member of the First Movers Coalition, through which we’re committing to near-zero carbon emissions for at least 10% of our primary aluminum and steel purchases by 2030.
Ford’s most recent supplier-focused initiative is our founding sponsorship of the Transform: Auto program, which was announced today. This innovative industry collaboration aims to drive the adoption of renewable energy across the automotive supply chain — providing suppliers with tailored guidance and expert support to help them reach carbon-neutral targets. It’s a testament to Ford’s belief in the power of collaboration to move the automotive industry — OEMs and suppliers alike — toward a more sustainable future.
These renewable energy initiatives also have benefits beyond their environmental impact. For example, not having to rely solely on traditional energy sources makes Ford’s supply chain more resilient, nimble and innovative, and it also helps us cut costs. Being sustainable is not just good for the planet; it’s also good for business. So when it comes to the question of why Ford is investing heavily in renewable energy, the answer is clear: doing so makes our entire value chain better. Better for the environment, people and communities. Better for the strength and resiliency of our operations. And better for our bottom line.
We take pride in our long track record of aligning business practices with societal and environmental imperatives and prioritizing the well-being of our employees and community members. It’s going to take hard work and collaboration, but we’re ready. This is the road we’re on at Ford. The Road to Better.