As part of its Supplier Code of Conduct, Ford requires its suppliers to report all emissions volumes to better assess their collective environmental impact. In 2024, the automaker reported receiving greenhouse gas emissions data from 377 of its suppliers, a 20% increase compared to 2022.
“When a supplier’s policy does not meet the requirements and expectations outlined in the Supplier Code, the supplier must take corrective actions to demonstrate continuous improvement with a compliance deadline,” Ford said in its proxy statement for 2025.
Additionally, Ford has agreed to procure 10% low-carbon aluminum and nearly zero steel by 2030, as outlined in its sustainability report. The company has also signed non-binding contracts with strategic steel suppliers and is working on partnerships to secure aluminum, lithium, and copper.
Green Century Capital Management claims that, despite the automaker's promises, Ford has not specified how it will incorporate these steel-related efforts into its strategy for reducing emissions in its supply chain, which accounts for 11% of total emissions.
“To appropriately address the risks and opportunities related to climate change, Ford should address supply chain emissions with the same ambitions as its current efforts to reduce climate risks,” the Boston-based shareholder proposal states.
Green Century Capital Management also claims that Ford is lagging behind its competitors, particularly Volvo and Mercedes-Benz, who have joined ResponsibleSteel, a global standards and certification initiative.