Climate Change Climate Change
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Report Home Contact Downloads GRI Index UNGC Index Site Map Glossary Sustainability Report 2010/11 MATERIAL ISSUES Materiality Analysis Climate Change Climate Change Greenhouse Gas Emissions Overview Climate Change Risks and Opportunities Our Strategy: Blueprint for Sustainability Ford’s Sustainable 2010 HIGHLIGHTS... Technologies and Alternative Fuels Plan Offered four Ford vehicles that Began producing the Transit Reduced CO2 emissions from Announced development of a Progress and Performance achieve 40 mpg or better Connect Electric, the first of global operations by 5.6 solar energy system at the five electrified vehicles percent on a per-vehicle basis Michigan Assembly Plant Climate Change Policy since 2009 and Partnerships Electrification: A Closer Look Ford is committed to doing our share to prevent or reduce the potential for environmental, economic and social harm due to climate change. Perspectives on Water Sustainability Supply Chain We have a comprehensive, science-based global strategy to reduce greenhouse gas (GHG) emissions from our products and processes while working cooperatively with the public and Vehicle Safety and Driver- private sectors to advance climate change solutions. We are taking a holistic approach to the Assist Technologies issue, recognizing that it affects all parts of our business and is interconnected to other important issues, from water availability and energy security to human rights. Sustaining Ford Perspectives on Sustainability We believe our commitment to addressing the climate change issue in a comprehensive and strategic way is one of the factors that has helped to transform our Company’s current and future products and prospects. Toolbox Our Commitment Mark Fulton and Bruce Print report Kahn Our climate change strategy is based on doing our share to stabilize carbon dioxide (CO2) concentrations in the atmosphere at 450 ppm, the level generally accepted to avoid the most Global Head of Investment Download files serious effects of climate change. Our stabilization commitment includes: Research and Senior Investment Analyst for Climate Change, DB Climate Change Advisors Each new or significantly refreshed vehicle will be best in class, or among the best in class, for fuel economy From our global portfolio of products, we will reduce GHG emissions enough to contribute to climate stabilization – even taking into account sales growth We will reduce our facility CO2 emissions by 30 percent by 2025 on a per-vehicle basis. Perspectives on During 2010, we expanded the climate stabilization analysis that we had undertaken previously for Sustainability the U.S. and Europe to the other regions in which we operate. This analysis defines the emission reductions needed to meet our stabilization commitment. For an in-depth look at the science behind our commitment, please see Ford’s Science-Based CO2 Targets. Our technology migration plan – embodied in our blueprint for sustainability – maps the road we’re taking to achieve our product goals. Our Progress We are on track to meet our commitments. We are making progress by adding advanced technology to all our products and offering high-value, attractive models that are smaller, lighter and more fuel efficient, encouraging customers to shift purchase behavior. We also continue to Gerhard Schmidt invest in energy-efficiency improvements at our facilities worldwide and, during 2010, explored Chief Technical Officer, Vice carbon emissions in our supply chain through multi-stakeholder projects. President of Research and Advanced Engineering (Emeritus), Among recent and upcoming actions, we: Ford Motor Company Reduced fleet-average CO2 emissions from our 2010 model year U.S. and European new vehicles by 10.5 percent and 8.1 percent, respectively, compared to the 2006 model year.1 Reduced CO2 emissions from our global operations by 5.6 percent on a per-vehicle basis, compared to 2009. Announced three more engines with our patented EcoBoost fuel-saving technology. By 2013, we expect to be producing approximately 1.5 million EcoBoost engines globally, about 200,000 more than originally expected. Offered four models in North America that provide 40 miles per gallon or better – compared to 2009, when our most fuel-efficient vehicle achieved 35 miles per gallon. Offered 18 models in Europe that achieve a CO2 emission level of 130 grams per kilometer, and two that achieve less than 100 grams per kilometer. Announced the development of a solar energy system – one of the largest in Michigan – that will help power the production of fuel-efficient small cars, including the Focus Electric, at our Michigan Assembly Plant. Our Policies Ford cannot achieve climate stabilization alone. Reducing emissions by the amount required calls for an integrated approach – a partnership of all stakeholders, including the automotive industry, the fuel industry, government and consumers. It can only be achieved by significantly and continuously reducing GHG emissions over a period of decades in all sectors of the economy. In the transportation sector, this means improving vehicle fuel economy, developing lower-carbon fuels and providing price signals to encourage consumers to purchase more fuel-efficient vehicles. If there is a mismatch between available fuels, vehicles and consumers, climate stabilization goals will not be met. Accordingly, we are committed to advocating for effective and appropriate climate change policy. We are promoting comprehensive market-based policy approaches that will provide a coherent framework for GHG emission reductions, so that companies like ours can move forward in transforming their businesses with a clear understanding of our obligations. In This Section In this section of our Sustainability Report we provide an overview of GHG emissions, including data on the contribution of light-duty vehicles, lifecycle CO2 emissions from a typical vehicle and Ford’s own climate “footprint.” We also discuss the risks and opportunities the climate change issue poses for Ford, our climate change strategy – including our blueprint for sustainability – and how we are addressing climate change public policy issues. An electrification case study explores how we are bringing electrified vehicles to market. 1. Please see Sue Cischke’s letter for a discussion of our CO2-reduction goal for North America and Europe. Report Home > Material Issues > Climate Change Report Home Contact Downloads GRI Index UNGC Index Site Map Glossary Sustainability Report 2010/11 MATERIAL ISSUES Materiality Analysis Greenhouse Gas Emissions Overview Climate Change Climate change is the result of an increase in heat-trapping (greenhouse) gases in the Greenhouse Gas atmosphere. Carbon dioxide (CO2) is the major long-lived greenhouse gas (GHG). The burning of Emissions Overview fossil fuels (to provide electricity, heat and transportation, and to support industry and agriculture), Snapshot of as well as deforestation, leads to emissions of CO2 and increased levels of atmospheric CO2. The Greenhouse Gas atmospheric concentration of CO2 has increased from a preindustrial level of 270–280 parts per Emissions from Ford million (ppm) to a level of approximately 390 ppm in 2010 (see Figure 1). Facilities and Ford- Produced Vehicles Global temperature records have been reported independently by scientists at the National Aeronautics and Space Administration (NASA) in the U.S., the National Oceanic and Atmospheric Supply Chain Administration in the U.S., the Climate Research Unit at the University of East Anglia in the U.K. and the Japanese Meteorological Agency. The records from these four independent groups are in Beyond CO2 good agreement and show a distinct warming trend over the past century. The past decade was Lifecycle Vehicle CO2 the warmest decade in the instrumental temperature record. As shown in Figure 2, the warming Emissions trend is continuing, and 2010 was one of the warmest years on record. Independent measurements of rising sea level, increasing acidification of the oceans, loss of Arctic sea-ice, Climate Change Risks and and the retreat of glaciers around the world are consistent with the impact of rising GHG Opportunities concentrations and global temperature. Our Strategy: Blueprint for Sustainability Figure 1: CO2 concentration measured at the observatory in Ford’s Sustainable Mauna Loa, Hawaii Technologies and Alternative Fuels Plan Progress and Performance Climate Change Policy and Partnerships Electrification: A Closer Look Water Supply Chain Vehicle Safety and Driver- Assist Technologies Sustaining Ford Perspectives on Sustainability Toolbox Print report Data source: NOAA (2011) Download files Figure 2: Global temperature Data source: NASA (2011) Global Emissions Figure 3 (below) provides a breakdown of estimated 2008 fossil fuel CO2 emissions by region. For the U.S. and Europe, the emissions are further broken down by sector and by mode in the transportation sector. The data were taken from reports published by the International Energy Agency, the European Environment Agency and the U.S. Environmental Protection Agency. Globally, emissions from cars and light-duty trucks comprise about 11 percent of all fossil fuel CO2 emissions. In the U.S., cars and light-duty trucks account for approximately 20 percent of fossil fuel CO2 emissions, or approximately 4 percent of global fossil fuel CO2 emissions. In Europe, passenger cars and light-duty trucks account for approximately 19 percent of fossil fuel CO2 emissions, or about 3 percent of global fossil fuel CO2 emissions. Until