Boston, May 8, 2025 – 5.6% of Ford Motor Company shareholders voted Thursday in support of Green Century’s resolution asking Ford to reduce climate emissions from its supply chain. Ford’s supply chain, which provides steel, aluminum and batteries, among other materials, represents 11% of the company’s impact on climate change.
Descendants of company founder Henry Ford own a special class of stock that gives them 40% of the voting power on shareholder proposals.
“We’re glad to see many independent investors asking Ford to better address the climate impact of its supply chain,” said Green Century president Leslie Samuelrich. “By investing more in sustainable materials to make its vehicles, Ford could assure shareholders it’s prepared to more fully mitigate climate-related risks.”
Steel and aluminum are big climate polluters
The climate impact of Ford’s supply chain mainly comes from materials such as steel (a metal mostly composed of carbon and iron) and aluminum, the production of which are responsible for approximately 10% of global climate emissions. The auto industry is the second-largest consumer of steel, procuring 12% of global supply, and is the largest aluminum buyer in the world. Alternatives such as low-carbon steel and recycled aluminum can reduce climate emissions from each material by over 95%.
Ford aims to be climate neutral by 2050, but lacks a plan for its supply chain
A comprehensive climate transition plan should describe the strategies, milestones, and timelines for a company to deliver on its decarbonization targets. It also includes progress reporting. Green Century’s proposal argued that these steps are as necessary for Ford’s supply chain as they are for its other emissions sources.
Ford aims to have net zero emissions by 2035 in Europe and by 2050 globally to tackle climate change, which the company acknowledges is “one of the biggest challenges of our generation.” To meet those targets, Ford will need to significantly scale up procurement of low-emissions steel and aluminum from its current target of 10% by 2030, among other steps. And while Ford has outlined detailed climate emissions reduction efforts for its operations and vehicle use, it hasn’t disclosed similar targets or plans for its supply chain.
Ford has taken important steps, but more work is needed
Ford has adopted some policies to cut supply chain emissions, including target-setting requirements for its suppliers and several nonbinding agreements with low-carbon steel suppliers signed in 2022. However, the second-largest U.S. auto maker has yet to report on results or incorporate those steps into a supply chain emissions reduction plan that charts a path to its net zero goals.
Competitors such as Volkswagen and BMW disclose supply chain climate emissions reduction targets and plans, and additional companies including Mercedes, Volvo and Porsche have locked in supplies of more sustainable steel. Ford’s lack of a plan to fully mitigate its contribution to climate change may harm its image and credibility so as to become a factor in customer purchasing decisions, particularly in Europe.
“Unless you’re Mad Max, you can’t drive a Ford on a burning planet,” said Annie Sanders, director of shareholder advocacy at Green Century. “It’s time for Ford to clean up its supply chain in line with its own net zero goals and investor expectations.”
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