Supply Chain

In 2009 and early 2010, we took significant steps to better understand the risks and opportunities of GHG regulation and climate change for our suppliers and, by extension, for Ford. We have worked hard to reduce GHG emissions from our products and operations, which enhances our competitiveness, and we hope to help promote similar competitiveness throughout the automotive supply chain.

Ford has signed on to be a "road tester" of the World Resources Institute/World Business Council for Sustainable Development's Scope 3 Greenhouse Gas Reporting Protocol. Ford road tested the widely used and respected Scope 1 (direct GHG emissions) and Scope 2 (indirect emissions, e.g., from electricity production) protocols. The Scope 3 protocol covers outsourced activities, supplier manufacturing and product use. The draft standards were developed through a global, collaborative multi-stakeholder process, with participation from over 1,000 volunteer representatives from industry, government, academia and nongovernmental organizations. The road testing process will provide real-world feedback to ensure the standards can be practically implemented by companies and organizations from a variety of sectors, sizes and geographic areas around the world. The final standards are scheduled to be published in December 2010. Ford's contribution will be to request data from selected Tier 1 production suppliers, representing close to 30 percent of Ford's $65 billion in annual procurement spending, and to provide feedback on practical aspects of using the protocol.

Ford has also joined the Carbon Disclosure Project's Supply Chain initiative. Through this effort, Ford is working with selected suppliers to gather qualitative as well as quantitative information about the suppliers' climate risks and emissions and how they are managing them.