Climate Change and the Environment

At Ford, we have been working for many years to reduce the environmental impacts of our vehicles and operations.

For example, we are doing our part to prevent or reduce the potential for environmental, economic and social harm due to climate change. We have a science-based strategy to reduce greenhouse gas (GHG) emissions from our products and operations that focuses on doing our share to stabilize carbon dioxide (CO₂) concentrations in the atmosphere. We are on track to meet the central elements of our strategy: For each of our new or significantly refreshed vehicles, we will continue to offer a powertrain with leading fuel economy, and we are reducing GHG emissions across our global product portfolio.

In South America, we are improving fuel economy by introducing some of the efficient engine and transmission technologies currently used in North America, and by offering technologies compatible with the widespread use of biofuels in Brazil. We offer our EcoBoost® engine on the Ford Mondeo in Argentina and the Ford Fusion in Brazil.

We are continuing to implement the new, more-efficient Sigma engine, which improves efficiency compared to current engines through reduced internal friction and improved electronic throttle controls. We have also improved the gearing ratios, aerodynamics and rolling resistance of our South American models, further increasing fuel economy. In Brazil, our Ford EcoSport, a B-Segment SUV, is a fuel-economy leader in its segment. In 2013 in Brazil, we launched the new Ford Fiesta, which received an “A” rating for fuel efficiency in the new Brazilian fuel-efficiency labeling system. Ford also received a Seal of Excellence award for the Fusion Hybrid and the 2014 Fiesta 1.6L TiVC in Brazil. These awards are given to vehicles in the top 20 percent for fuel economy, regardless of vehicle segment or type.

Over the past few years, we have successfully implemented a large number of fuel-efficiency technologies in our B- and C-sized vehicle segments, which make up approximately 80 percent of the Brazilian market. These include twin independent variable cam timing engines and direct-injection engines, Battery Management Systems, smart alternator systems and dual-clutch automatic transmissions.

Aligned with our global standards and the Brazilian New Automotive Regime (Inovar-Auto) – a federal government measure that aims to stimulate investment in the Brazilian auto industry – Ford Brazil is focusing on achieving fuel-efficiency targets and investing in engineering. Also in Brazil, newly introduced fuel economy and CO₂ emission regulations will speed up the introduction of new fuel-efficiency technologies.

Ford is also using recycled and/or natural material in our vehicles in South America. All vehicles locally produced use 5 to 7 kg of recycled PET plastic in the form of carpets, ceiling linings, wheel boxes and acoustic blanket carpeting. And, the instrument panel of the new Cargo trucks is made with sisal natural fiber.

We are the first automobile company in Brazil to voluntarily report our facilities’ GHG emissions to the Brazilian Greenhouse Gas Protocol. As a participant and one of the founders of the Protocol, we have conducted an inventory of our facility emissions and have set reduction goals. The results of the inventory can be seen in the graph below. While our reported GHG emissions per unit of production for 2013 showed an increase of approximately 3% from 2012, this can be explained mainly due to the 2013 electricity CO₂ emission factor (Scope 2) increase of 40% from 2013. While production increased by approximately 17%, indirect electricity consumption increased by less than 7% and direct energy consumption increased by less than 1%.

We are also strengthening our environmental management systems in our facilities. In 2013 our Valencia Plant was successfully audited for compliance with ISO 140001:2004. Valencia also received an Instituto Municipal del Ambiente certification, which confirms our compliance with Venezuelan environmental legislation. In Venezuela, our environmental management is supported by an Environment Cross-Functional Team, a group of employees who undertake sustainability initiatives and educate other employees. We have also reduced volatile organic compound emissions and water pollution as a result of the introduction of paint robots to the production process. At São Bernardo do Campo, we completed a high-bay lighting retrofit project, which improves the work environment and saves energy.

Recycling at our plants is also a priority. As a result, solid waste at our Valencia Plant facility has been reduced by 20 percent in the last three years. In Argentina, many materials used in the production process are recycled. For example, vegetable oil used in the kitchens is used for biodiesel, and the profit is donated to a neighborhood dining hall for children. Unused office paper and bottle lids are donated to the Garrahan Children’s Hospital Foundation. Plastic PET containers are recycled to benefit the Forest Bank Foundation, a nonprofit organization focused on restoration, conservation and wise management of native species in Chaco and Formosa. Through this initiative, Ford Argentina contributed to the preservation of 150,000 square meters of forest in the Impenetrable Chaqueño area, which will become the new La Fidelidad National Park.

Other initiatives include an environmental education program for public and private school students and a restoration and landscape project, among others. Hosted by Ford Camaçari, students visit the Environmental Education Center and participate in activities and talks related to permaculture. At São Bernardo do Campo, employees participated in a restoration and landscape project. Over 1,700 seedlings of native Atlantic forest species were planted, returning an important stretch of riparian vegetation to the city.

For a discussion of our global environmental impact, climate change impact, policy and commitments please see the Climate Change and Environment section.