Ford Motor Co. announces its 2022 annual report to accelerate its electrification transformation

Ford motor vehicles released the 2022 Sustainability and Financial Annual Comprehensive Report, which focuses on the company's transformation process leading the electrification revolution. Ford previously announced that it expects annual electric vehicle production to exceed 2 million by 2026; by 2030, electric vehicle sales will account for 50% of the company's global sales.

Ford is committed to achieving carbon neutrality by no later than 2050 and plans to achieve its medium-term target for carbon reduction by 2035 under the Science Carbon Target Initiative, which is championed by a number of international organizations, including the United Nations. In this year's annual report, Ford also voluntarily disclosed climate-related information and elaborated on Ford's plans to reduce greenhouse gas emissions per kilometer of sold vehicles by 50% compared to the 2019 baseline year and 76% lower greenhouse gas emissions from production operations than in the 2017 baseline year by 2035. In 2021, the company's absolute greenhouse gas emissions related to manufacturing have been reduced by 35% compared to 2017 levels.

Electrification is critical to Ford's sustainability goals, but it comes with challenges, including raw material sourcing and recycling of used batteries.

Bill Ford, Executive Chairman of Ford Motor Company, said: "The real success is that we can build a better world for future generations. Each year, the comprehensive report reminds me of the company's commitment and determination to live up to this value and the motivation to act on important issues. We've lived on that promise since we released the industry's first sustainability report 23 years ago, especially today. ”

To remain competitive and leading in the new era of intelligent and connected electric vehicles, Ford plans to invest more than $50 billion globally from 2022 to 2026 in the research and development of models and power battery technologies in the field of electrification. To ensure this is achieved, Ford will build new, world-class, state-of-the-art, and efficient automotive plants, create thousands of new jobs, and build a sustainable, responsible, and ethical supply chain.

"This year's report is significant because it demonstrates Ford's long-standing commitment to openness and transparency in its operations and its commitment to leading by example," said Cynthia Williams, Ford Motor Company's director of global sustainability, certification and compliance. "This report gives Ford stakeholders a clear picture of how we will put people first and build on our traditional foundations of climate action and environmental protection as Ford motor companies transition to electrification." The company's strategy and sustainability goals are inextricably linked, and we believe that what is good for the planet is equally beneficial for our customers and our business. ”

Drive innovation and sustainable growth

The 2022 Comprehensive Sustainability and Financial Report outlines Ford Motor's Ford+ growth plans to further expand the production of electric vehicles on top of the company's significant foundational strengths and leverage intelligent connectivity and disruptive technologies to make its products more accessible, compatible and safer than ever before. As part of the Paris Agreement, Ford was one of the first U.S. automakers to align with the international community to curb global warming. Ford's goal is to establish a business model with net zero carbon emissions and to become a company that has a net positive impact on the environment and society.

Highlights of the 2021 Annual Comprehensive Report

Ford Motor joins the RouteZero Global Alliance, an organization that aims to achieve 100 percent zero emissions of cars and vans sold globally by 2040 and will advance this goal by the end of 2035 in some key markets, thus working together to curb the trend of global warming.

Ford motor introduced a sustainable financing framework to guide investment in social and environmental projects, paving the way for Ford's first green bond, which has raised $2.5 billion through a 10-year offering that will fund the company's new eviction product line.

Ford Motor Co. and SK Innovation announced that they will jointly invest $11.4 billion in BlueOval City and three BlueOval SK joint venture battery plants in Kentucky and Tennessee. These large-scale plants will create nearly 11,000 new jobs and contribute to a sustainable manufacturing ecosystem. Over the next five years, Ford will also invest more than $525 million in the professional development and training of automotive technicians to better support the development of intelligent and connected electric vehicles.

Ford is also partnering with Redwood Materials, a leading battery materials company in the industry, to make electric vehicle products more cost-effective and sustainable by localizing the supply chain, creating recycling solutions for battery waste and used batteries, and accelerating lithium-ion battery recycling. Ford Motor plans to establish a global battery innovation center, Ford Ion Park, in southeast Michigan, to develop, test, and manufacture lithium-ion-focused battery cells and arrays, with an eye to solid-state in-vehicle power battery technology.

Ford joined the U.S. Department of Energy's Better Climate Challenge project, which aims to reduce greenhouse gas emissions from factory facilities by at least half by 2030, in line with the company's commitment to use 100 percent clean electricity energy to power by 2035.

Compared to 2000, Ford motor vehicle currently uses more than 78% less annual water and has established 89 zero-waste landfills around the world, in addition to ford's global manufacturing carbon footprint is also more than 35% lower than in 2017.

Ford has also set new Diversity, Equity and Inclusion (DEI) goals to increase gender and racial diversity in the company's management, and by tracking this goal quarterly, Ford has made some progress in building the workforce of the future. In 2021, Ford will also expand its philosophy of diversity, fairness and inclusion in the United States to seven other major markets, including China, and further improve the fair pay system.

Ford Motor also donated $74.4 million in charitable donations to help multiple underserved and marginalized groups around the world. Ford motor also donated 120 million masks to high-risk individual groups and organizations in 50 states to help them fight the covid-19 pandemic, in addition to ford motor funds to open a community vaccine center in Romania, and distributed food and medical kits to thousands of families in South America to help local communities and residents fight the epidemic.

In China, Ford Motor Company regards environmental protection and support for youth innovation as an important part of giving back to its communities and building a better world, and launched the "Ford Motor Environmental Award", "Ford Employee Volunteer Action" and "Ford Uber Innovation Challenge", which were integrated into Ford's "Better World" public welfare project. In 2021, the Ford Eco-Friendly Awards will establish a new Ecotourism Route Award to support and encourage outstanding projects in various nature reserves to carry out ecotourism for the public. The Ford Excellence Innovation Challenge provides a series of support for 463 youth innovation projects from 161 colleges and universities across the country, supporting youth to participate in innovative practices and enhance innovation and creativity through online courses, offline training, innovation workshops, innovation visits, mentoring and other diversified forms, with a cumulative number of participants exceeding 14,000. More than 20,000 Ford employees and their families have participated in various social welfare service activities such as community environmental protection, with a cumulative service time of more than 120,000 hours, and directly donated and raised more than RMB6 million to public welfare organizations.

Ford Motor Company's 2021 operating results and several metrics suggest that the Ford+ program is in full swing. Despite the continued impact of semiconductor chip shortages, other supply chain disruptions and the COVID-19 pandemic across the automotive industry, Ford motor achieved year-over-year growth in revenue, net income and adjusted EBITDA. Ford has made tremendous progress in both strategic direction and financial results.

This year marks the second year that Ford has integrated its annual financial report and sustainability report, providing a more comprehensive picture of Ford's overall business operations and the 23rd consecutive year that Ford has provided investors and stakeholders with transparent and rigorous sustainability reporting.

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