Ford

No leading practices were identified for this company.

No leading practices were identified for this company.

No leading practices were identified for this company.

Ford publicly supports significant climate policies and outlines a process to monitor and review its membership in associations, alliances and think tanks that do not align with its climate policy positions. It also sets out an action plan in case of misalignment, such as withdrawing from or ending membership where necessary.

Ford has set targets to reduce its scope 1 and 2 emissions by 76% by 2035 and scope 3 emissions from the use of sold products by 50% per vehicle-kilometre, compared to 2017. However, the company should set more intermediate goals to ensure progress. Additionally, the company provides no disclosure on its upstream scope 3 emissions, and its downstream scope 3 emissions intensity has only decreased by 1% over the last four years, which is not on track to align with a 1.5°C pathway.

Ford’s transition plan is informed by scenario testing that has qualitatively assessed the potential impact of the considered scenarios and climate-related issues on the company’s financial performance and position. While the scenario analysis covers the entire value chain, with a focus on Ford’s operations and supply chain, the results are not quantitative and does not consider a carbon price. The company has management incentives for executives based on EV sales volumes, but these incentives are only short-term bonuses.

Ford invested 67% and 73% of its total capital expenditure (CapEx) on low-carbon technologies in 2023 and 2024, respectively. The company is expanding its low-carbon business models, such as deploying EV charging ports and building EV production factories. However, Ford does not disclose the proportion of its research and development (R&D) investments dedicated to low-carbon technologies. In 2023, only 4% of Ford’s total revenue originated from low-carbon products and services.

No risks and opportunities were identified for this company.

The company commits to engaging in social dialogue with workers and unions. It also discloses the categories of stakeholders it engages with on a just transition, including non-governmental organisations (NGOs), non-profits and academic institutions. However, no evidence was found to demonstrate the company’s ongoing social dialogue and meaningful engagement with affected stakeholders. There is no evidence of the company undertaking low-carbon transition planning to mitigate the social impacts of the transition on workers, affected stakeholders and its business relationships. Additionally, no evidence was found to demonstrate the company’s engagement in social dialogue and with stakeholders in its just transition planning.

The company has a commitment to create and support access to green and decent jobs as part of the low-carbon transition. It discloses the actions it takes in this regard, such as offering relevant trainings to workers and other affected stakeholders. However, the company does not disclose the measures it takes to ensure that these jobs embed equality of opportunity for women and vulnerable groups. Additionally, the company has a commitment to reskill and upskill workers and stakeholders affected by the low-carbon transition and discloses the actions it takes in this regard. For instance, it has invested more than USD 73.7 million in charitable contributions towards its mission to partner with communities to help move people forward across key areas of impact: essential services, education for the future of work, entrepreneurship and mobility. It has also launched a dedicated community engagement function to provide better lines of communication in communities where it has a manufacturing presence.

No relevant disclosure was found to show if the company identifies impacts of the low-carbon transition on social protection for workers and affected stakeholders, nor how it contributes to social protection. Additionally, no evidence was found that the company expects its business relationships to contribute to the social protection of their workers and affected stakeholders. No relevant disclosure was found to show how the company identifies any misalignment of its lobbying activities with policies and regulations that support the just transition, nor of the measures it takes to address misalignment. Furthermore, no evidence was found that the company lobbies for policies and regulations for green and decent job creation; retention, education and reskilling; and social protection for workers.

The company commits to respecting human rights and the ILO fundamental rights at work, and it expects its business relationships to respect the ILO fundamental rights at work. Furthermore, the company discloses a human rights due diligence process that includes the assessment of salient human rights risks. However, it does not identify or disclose the categories of affected stakeholders. The company takes action to mitigate these human rights risks in its own operations and its supply chain, and it engages with affected stakeholders. Additionally, the company has a grievance mechanism available to workers and external stakeholders.

The company commits to respecting worker health and safety and gender equality, and it discloses some information on collective bargaining and workforce diversity fundamentals. However, it can strengthen its disclosure on these subjects, as well as on its living wage and working hours practices.

The company commits to personal data protection, and it has policies to prohibit bribery and corruption, and ensure responsible tax practices and responsible lobbying and political engagement. However, the company can strengthen its disclosure on these subjects.