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Ford Examining GHG Emissions of Supply Chain

June 01, 2010

DEARBORN, MI - Ford Motor Co. announced plans to survey 35 top global suppliers on their energy use and estimated greenhouse gas emissions, in order to better understand the carbon footprint of Ford's supply chain. 

The automaker hopes to use the data to eventually create a broad-based carbon management approach for its supply chain. The 35 suppliers represent close to 30 percent of Ford's $65 billion in annual procurement spending. 

"Suppliers play an 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 vice president 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 suppliers in the initial request include companies that make commodities such as seats, steering systems, tires and metal components, which require more energy to produce and thus have a larger carbon footprint. While many of these suppliers already measure their greenhouse gas emissions, the project would facilitate collaboration and information sharing that can drive further emissions reductions and help meet future regulatory requirements. 

"Climate change has the potential to affect all parts of our business, and is connected to other important issues -- from water availability and energy security to human rights," said Susan Cischke, group vice president for sustainability, environment and safety engineering. "Understanding the carbon footprint of our supply chain is a crucial part of our comprehensive global strategy to reduce greenhouse gases." 

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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