Ford takes green action

FORD            SUPPLY CHAIN              CARBON

Global - Ford said it will be monitoring the carbon emissions of 35 of its top global suppliers as part of a larger plan to shrink its carbon footprint in the auto industry.

Ford's newly announced green supply chain approach builds on its success in measuring and reduces greenhouse gases. The automaker said it will be working with World Resources Institute, World Business Council for Sustainable Development and the Carbon Disclosure Project in an effort to identify appropriate data from suppliers.

It will survey 35 of its top global suppliers on their energy use and estimated greenhouse gas emissions. It will use the information to gain a better understanding of the carbon footprint of its supply chain and use the data to eventually create a broad-based carbon management approach, the company said.

"Suppliers play and important role as we look to reduce our overall carbon footprint and drive more efficiency in an energy constrained world," said Tony Brown, Ford group VP of global purchasing. "This initiative builds on our leadership in collaborating with suppliers and gives them a way to participate in solving an issue that faces our entire industry."

The 35 suppliers represent 30% of Ford's US$65 billion in annual procurement spend.

Ford said that while many of its suppliers already measure their greenhouse gas emissions, the project would facilitate collaboration and sharing of processes and practices that can drive significant emissions reductions and help meet future regulatory requirements.

The data gathered from suppliers will be evaluated using modeling software from PTC InSight. Preliminary work Ford has done with PTC has indicated there are opportunities for both Ford and suppliers to reduce carbon emissions. Any reductions by suppliers would be in addition to Ford's own goal of reducing greenhouse gases 30 percent by 2020 from the company's 2006 model year baseline.

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