2Sustain

Ford Motor Company wants to reduce the carbon footprint of its supply chain, and so the company announced last week that it will survey 35 global suppliers on their energy use and GHG emissions.

The 35 suppliers include companies that make commodities such as seats, steering systems, tires and metal components, and they represent nearly 30 percent of Ford’s $65 billion in annual procurement spending. The company says it wants to use the data collected to create a broad-based carbon management approach for its supply chain.

“Suppliers play an important role as we look to reduce our overall carbon footprint and drive more efficiency in an energy constrained world,” explains Tony Brown, Ford group vice president, 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.”

Ford says it will share feedback from its data collection process with World Resources Institute (WRI) and the World Business Council for Sustainable Development (WBCSD), in an effort to create a broad-based carbon management approach for its entire supplier network.

More about Ford’s sustainability initiatives is available in the company’s Blueprint for Sustainability.

Companies that are serious about sustainability simply have no choice but to focus on their supply chains –because as I’ve posted about before, that’s “where the action is.” It’s great to see that the supply chain (finally) is gaining deserved recognition as an essential component of any comprehensive sustainability plan. (See recent posts about similar initiatives at Walmart and P&G.)  And, I think we’re going to continue to see an increased emphasis on measuring and benchmarking supplier sustainability data, as organizations start to reap big benefits (cost cutting, enhanced risk managment, etc.) from supply chain management strategies that integrate both environmental and broader CSR initiatives throughout the supplier network.