Ford seeks four-fold increase in engagement on emissions

16 June 2011

16 June 2011 | Lindsay Clark

Ford plans to be in discussions with more than 150 vendors about recording and reporting greenhouse gas emissions by the end of this year.

It is currently speaking to 35 suppliers who represent close to 30 per cent of its annual procurement spend, which in 2009 was $65 billion (£40 billion). It wants to increase levels of engagement with suppliers on the issue by 350 per cent by the end of 2011.

The automotive giant plans to build on its work with the Supply Chain Program of the CarbonDisclosure Project’s (CDP), which it joined in 2010. As a result of joining, it conducted a survey of the 35 suppliers to examine to what extent they measure and report their emissions. In its SustainabilityReport 2010/11, Ford said that the study discovered 80 per cent track greenhouse gas (GHG) emissions and 50 per cent of those report their emissions externally.

“The results clearly demonstrated that those high-impact suppliers that we had hoped were paying attention to GHG emissions were, in fact, doing so,” the CSR report said. “However, these results may not represent the broader global automotive supply base’s readiness to track, report and proactively manage GHG emissions.”

Ford said it would be engaging a much broader selection of production, information technology, and logistics suppliers in the future.

The Carbon Disclosure Project’s 2011 Supply Chain Report, by management consultants AT Kearney, is the result of interviews with 57 global companies and 1,000 suppliers. It found that 50 per cent of large businesses and 25 per cent of their suppliers reduced costs by managing carbon in the supply chain.

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