Dive Brief:
- Ford Motor Co.’s board of directors is asking investors to reject a shareholder proposal requiring the company to report whether its efforts to curb supply chain greenhouse gas emissions align with its net-zero goals, according to a 2025 proxy statement.
- Shareholder Green Century Capital Management, which raised the proposal, claims the automaker will struggle to achieve its target of global carbon neutrality by 2050 without a strategy to reduce supply chain emissions, particularly when it comes to incorporating low-carbon steel.
- Ford’s board thinks the additional report is unnecessary, noting that the company’s annual Integrated Sustainability and Financial Report includes information about its supply chain sustainability progress.
Dive Insight:
As part of its Supplier Code of Conduct, Ford requires its suppliers to report on all scope emissions to better gauge its collective environmental impact. In 2024, the automaker reported it received greenhouse gas emissions data from 377 of its suppliers, a 20% increase over 2022.
“When supplier policies are not aligned with the requirements and expectations outlined in the Supplier Code, the supplier must undertake corrective actions to demonstrate continuous improvements with a deadline for compliance,” Ford said in the 2025 proxy statement.
Additionally, Ford has agreed to purchase 10% low-carbon aluminum and near-zero steel by 2030, as noted in its sustainability report. It also signed non-binding contracts with strategic steel suppliers and is working on a multi-material partnership to source aluminum, lithium and copper.
Green Century Capital Management argues that despite the automaker’s pledges, Ford has not outlined how it will incorporate those steel-related efforts into its strategy to lessen supply chain emissions, which represent 11% of its emissions overall.
“To appropriately respond to climate-related risks and opportunities, Ford should address supply chain emissions with the same ambition as its existing climate risk mitigation efforts,” the Boston-based shareholder states in the proposal.
Green Century Capital Management also claims Ford is lagging behind its peers, namely Volvo and Mercedes-Benz, that have joined ResponsibleSteel, a global standards and certification initiative.
