Ford Motor Company to Issue Greenhouse Gas Report
DEARBORN, Mich., March 31, 2005 - Ford Motor Company announced today it will issue a report on climate change by the end of the year.
The report will examine the business implications of greenhouse gas emissions, with reference to government policies and regulations, Ford's product and manufacturing facilities actions, and advanced technology development.
"We have long identified climate change as a serious environmental issue, and shareholders are increasingly asking about the risks as well as the opportunities associated with it," said Bill Ford, chairman and CEO. "It's time for a broader, more inclusive public dialogue on the complex and important challenge of climate change; our report will be part of our contribution to that dialogue."
Ford began publicly sharing its perspective on climate change in 2000 with publication of its first corporate citizenship report. The report, which details the company's social, economic and environmental performance, has since been cited by external organizations for its candor in addressing business opportunities and challenges.
The climate change report will similarly reflect an open dialogue and document information about this issue. The report will include details on greenhouse gas emissions from Ford products as well as its manufacturing facilities. It will also include a strategic analysis of climate change issues, including the potential impact of various policy and regulatory alternatives and their implications for advanced innovations and technological developments.
Ford will draft its climate change report in consultation with a wide variety of climate change and policy experts as well as with the Interfaith Center on Corporate Responsibility (ICCR) and the Boston-based Ceres, a coalition of investors and environmental groups and founder of the Investor Network on Climate Risk (INCR). The company has been engaged in dialogue with ICCR, Ceres and other non-governmental organizations for several years.
The report, which will be issued by year end, will be developed under the direction of the cross-functional, vice-presidential task force that has been working on strategies for addressing climate change since 2003. The Environment and Public Policy Committee of Ford's Board of Directors will approve the scope of the report, will review and approve the report, and will review the report with the full Board.
"We believe long-term shareholder value and environmental responsibility go hand-in-hand and that planning carefully and exercising leadership now will strengthen our business and our attractiveness as an investment into the future," said Tim O'Brien, vice president Corporate Relations, Ford.
"Our decision to produce a climate change report is consistent with steps being taken by Bill Ford and (Ford President and COO) Jim Padilla to anticipate the expectations of investors and our customers for products, services and practices that deliver environmental and social as well as financial returns," O'Brien added.
ICCR and Ceres acknowledged Ford's decision to produce a report on climate change as a critical step to furthering substantive discussion about the issue.
"We congratulate Ford for leading the U.S. industry in responding to shareholder concerns by addressing a variety of policy and business scenarios," said Sister Patricia Daly, OP, executive director of the Tri-State Coalition for Responsible Investment, a coalition of investors with the Interfaith Center on Corporate Responsibility (ICCR), which has been encouraging more climate risk disclosure from U.S. companies in recent years.
"Climate change is an enormous business challenge for the auto sector, which faces a double-edged threat of rising gas prices and a growing, worldwide push for greenhouse-friendly vehicles," said Mindy S. Lubber, president at Ceres. "Ford's commitment to pursue this report shows an important willingness to face this challenge so that it can better position itself competitively."
Ford is working on a variety of fronts to reduce greenhouse gas emissions. On the vehicle front, Ford is focused on four promising technologies that offer short-term and long-term solutions including gas-electric hybrids, clean diesels, hydrogen internal combustion engines and hydrogen fuel cells. Additionally, the company is developing conventional powertrain technologies that are resulting in cleaner, more efficient vehicles.
Ford is also a leader in reducing emissions from its manufacturing plants ahead of regulations and has targeted a 14 percent improvement in energy efficiency across its global operations between 2000 and 2005. In the U.S., Ford obtains 5 percent of its energy needs from green sources, including hydropower and waste gases. The company is a founding member of the Chicago Climate Exchange to help evaluate innovative market-driven policy options.
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