The automotive industry is undergoing a significant transformation, with sustainability and electrification emerging as central pillars for its future. As cars contribute to more than 20% of national greenhouse gas emissions, the demand for cleaner, more sustainable alternatives is driving innovation.

Electric vehicles -EVs- are at the forefront of this change, offering substantial potential to mitigate emissions and reduce the carbon footprint of transportation. This report delves into the sustainability efforts of leading automotive brands -Tesla, Volkswagen, BMW, and Ford- evaluating their performance in key areas such as ecological impact, energy consumption, recycling rates, supply chain transparency, and long-term sustainability goals.

Introduction to BMW

Ford, a prominent American automaker headquartered in Dearborn, USA, is making significant strides toward sustainability while staying true to its legacy of rugged durability and mass-market appeal.

In 2023, the company generated USD 176.2 billion in revenue and produced 4.19 million vehicles. With a clear goal to achieve carbon neutrality by 2050, Ford is steadily shifting towards a more sustainable future. While its share of low-carbon vehicles in 2023 was 3%, the company is committed to transitioning its entire lineup of passenger and commercial vehicles to 100% electric vehicles (EVs) by 2035.

Ford combines its rich American heritage with a growing focus on sustainability, aiming to reduce its emissions by 76% by 2035 in Europe and targeting a 50% reduction in scope 3 emissions per vehicle-kilometre. Known for its trucks and commercial vehicles, Ford is expanding its electric offerings, providing solutions for both work and everyday drivers. As the company pursues its comprehensive transition plan, it continues to adapt its operations to meet evolving environmental goals while remaining an automotive powerhouse with a strong global presence.

Built Ford Tough

Criteria

Carbon Footprint, High

Ford is targeting carbon neutrality by 2050, with goals to cut direct emissions (Scope 1 and 2) by 76% and reduce Scope 3 emissions (vehicle use) by 50% per kilometer by 2035. To date, the company has reduced Scope 1 and 2 emissions by 47% since 2017 and Scope 3 emissions by 6%. Ford is investing $6.8 billion in green projects, including a $2 billion initiative to convert its Niehl plant into a carbon-neutral EV production center by 2024. However, only 3% of Ford’s sales were from low-carbon vehicles in 2023, which highlights the need to accelerate efforts in this area.

Ford is also innovating in battery technology, with advancements such as modular battery packs and battery-swapping systems to reduce repair costs and environmental impact
.

Ecological Impact, High

Ford has invested $4.21 billion in ecological projects since 2021 through Green Bonds. The company supports the Convention on Biological Diversity (CBD) and the United Nations Declaration on the Rights of Indigenous Peoples (UNDRIP), aiming to reduce water usage, particularly in water-stressed areas. Their goal is zero water withdrawals for manufacturing and to use freshwater only for human consumption.

Energy Consumption, High

Ford is committed to using 100% carbon-free electricity in all manufacturing by 2035. In 2023 and 2024, 67% and 73%, respectively, of its capital expenditure was allocated to low-carbon technologies. However, only 4% of Ford’s total revenue in 2023 came from low-carbon products and services, indicating the need for stronger growth in this area.

Ford is expanding the BlueOval Charge Network, with over 111,000 chargers in North America and 500,000 in Europe, to support EV adoption and reduce reliance on fossil fuels.

Freight Density, Low

Ford is optimizing logistics by incorporating circular economy principles and digitalization to reduce emissions from transportation. However, more detailed data on freight density would be helpful to assess progress in this area.

Recycling Rates, Medium

Ford is focused on sustainable materials and waste reduction. The company aims for Zero Waste to Landfill across all operations and plans to eliminate single-use plastics by 2030. By 2025, they aim for 20% of plastics used in new vehicle designs for North America and Europe and 10% for China to be recycled or renewable plastics.

Saving Levels, Medium

Ford’s sustainability initiatives, such as decarbonization and waste management, are contributing to both environmental benefits and operational cost savings. With 86 zero-waste-to-landfill sites globally, Ford’s initiatives reduce environmental impacts while enhancing operational efficiency.

Specific Product Monitoring, High

Ford emphasizes monitoring the environmental impact of its products throughout their lifecycle, using ISO-standardized life cycle assessments (LCAs) to identify and minimize environmental hotspots.

Their commitment to reducing GHG emissions per vehicle kilometer and expanding the BlueOval Charge Network supports sustainable product development. Additionally, Ford uses the Chemical Compliance Governance Model (CCGM) to ensure responsible management of chemical substances through regular audits and compliance benchmarking.

Supply Chain Waste, Low

Ford works closely with suppliers to reduce hazardous chemicals and promote eco-friendly practices. The company conducts audits to address potential human rights issues and aligns with environmental and social goals. This demonstrates Ford’s focus on sustainability throughout its supply chain.

Sustainability Scorecards, High

Ford uses materiality analyses and tracks ESG performance with clear KPIs, including linking Board compensation to sustainability goals. The company holds a Carbon Disclosure Project (CDP) A rating for both Climate and Water since 2019, and top ranking in the Lead the Charge Coalition’s annual report, reflecting its strong sustainability record.

Ford’s Green Finance Framework is aligned with the EU Taxonomy, underscoring its commitment to responsible financial and environmental practices.

Water Management, High

Ford is committed to responsible water use, aiming for zero water withdrawals in manufacturing and using freshwater solely for human consumption. Their CDP A status for Water demonstrates strong water management practices, and their participation in the Water Disclosure Project and water-saving initiatives showcases ongoing efforts to reduce water use.

Conclusion

Ford is progressing towards sustainability with a focus on decarbonization, resource conservation, and electric vehicle (EV) adoption.

Despite challenges, such as low-carbon vehicle sales and the need for greater growth in green technologies, Ford is committed to achieving carbon neutrality by 2050.

The company is making significant investments in energy efficiency, waste reduction, and sustainable materials, alongside expanding its EV infrastructure. With continued improvements, Ford is positioned to play a major role in the transition to a more sustainable automotive industry.

Related to other brands

Number of criteria met by each brand:

ESCP Business School Team

Research developed by five curious international ESCP Business School students who have worked together to successfully complete their consulting project. They analysed four brands in four different categories -24 brands: electric cars EV, dairy products, computers, personal care, luxury apparel, fast fashion-, according to 10 environmental criteria.

Sources

  • Tesla full annual report 2023
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  • The guardian: “About 500,000 trees cut down at site of Tesla gigafactory near Berlin. 22 aout 2024” (Damian Carrington and Ajit Niranjan in Berlin)
  • World benchmarking alliance: Automotive and Transportation Manufacturers Benchmark 2024
  • Volkswagen Group sustainability report 2023
  • Automotive logistics: “The many roads, fuels and tech leading to zero emission logistics at Volkswagen Group” (Christopher Ludwig)
  • Tech target: “7 biggest examples of greenwashing” (Tim Murphy)
  • EV Magazine: “Volkswagen’s EV Initiatives From Charging to Batteries” (Helen Sydney Adams)
  • World benchmarking alliance: Automotive and Transportation Manufacturers Benchmark 2024
  • BMW sustainability & Group report
  • Supply chain digital: “BMW Leads the Charge in Sustainable Battery Recycling” (Tom Chapman)
  • Eco news: “ wakes up the world from the hydrogen dream: The circle-shaped engine is the future” (Edwin O)
  • CapGemini: “The BMW Group strengthens its frontrunner position in sustainable supply chains” (client story)
  • World benchmarking alliance: Automotive and Transportation Manufacturers Benchmark 2024
  • Ford’s Integrated Sustainability and Financial Report 2024
  • Wired: “The Electric Explorer’s Nightmare Launch Shows Everything Ford Gets Right and Wrong About EVs” (Jeremy White)
  • The EV Report: “Ford Adjusts EV Strategy for Growth and Profitability”
  • TCD: “Ford enters new territory with game-changing battery tech: ‘This could reduce repair costs’” (Rick Kazmer)
  • World benchmarking alliance: Automotive and Transportation Manufacturers Benchmark 2024
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