Ford's supply chain leads the way in partnership for sustainability

Dive Brief:

  • Ford Motor Company's supply chain is rolling out an amplified Partnership for A Cleaner Environment (PACE) program, a recent company press release reported. With a membership of more than 40 suppliers in 40 countries, PACE could potentially positively affect almost 1,100 supplier sites.
  • The PACE program offers useful tools to support suppliers attempting to reduce carbon-dioxide emissions and waste, and also improve the efficiency of water usage and energy consumption. The tools enable suppliers to track and achieve sustainability goals of their own, which they then share with Ford.              
  • The Ethisphere Institute included Ford on its annual list of the World’s Most Ethical Companies for the eighth time in part due to these efforts. Further efforts include a plan to reduce global carbon emissions by a possible 500,000 metric tons by 2022.

Dive Insight:

Supply chains are frequently analyzed for waste and efficiency improvement; including suppliers in a move to increase sustainability is a growing effort likely to yield success. Large corporations such as Target and Ford purchase in great enough bulk to draw the loyalty — and cooperation — of their suppliers.

Ford chooses its suppliers based on their Carbon Disclosure Project (CDP) results; in particular, the amount of greenhouse gas emissions and water used in production. In the 2015/2016 Sustainability Report66% percent of chosen suppliers reported having an emissions reduction target, while 78% reported concern over climate change as a motivating business strategy. In addition, 41% reported a water-related reduction target or goal.

Ford also engages in sustainability efforts on a collaborative level, as a member of the Suppliers Partnership for the Environment, an organization of automotive OEMs, their suppliers and the U.S. Environmental Protection Agency.

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Filed Under: Regulation Procurement
Top image credit: Flickr; Joel Penner