{"id":8241,"date":"2016-11-02T23:50:59","date_gmt":"2016-11-03T03:50:59","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-rctom\/submission\/ford-goes-further-to-curb-climate-change\/"},"modified":"2016-11-03T23:41:28","modified_gmt":"2016-11-04T03:41:28","slug":"ford-goes-further-to-curb-climate-change","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/ford-goes-further-to-curb-climate-change\/","title":{"rendered":"Ford Goes Further to Curb Climate Change"},"content":{"rendered":"

When most people think of recent large-scale efforts to combat climate change, the Paris Climate Change Conference usually comes to mind. At this conference, most of the world\u2019s nations committed \u201cto curb GHG emissions and keep temperature increases \u2018well below\u2019 2\u00baC.\u201d [1] However, the private sector also took a major step towards curbing GHG levels by letting their money do the talking.\u00a0Last month, the Institutional Investors Group on Climate Change (IIGCC), who collectively manage $24 trillion in assets, sent a clear message to the automotive industry: get serious about climate change, or lose our support. [2] This presents a large incentive for the automotive industry to do their part to combat climate change, lest their stock prices suffer. This post will specifically investigate how Ford is affected by climate change, what steps it has taken to address these affects, and what can still be done.<\/p>\n

\"Production
Production of the Ford C-Max [3]<\/figcaption><\/figure>As a large player in the automotive industry, Ford is affected by climate change in a number of ways. First, as regulation of emissions increases, Ford will inevitably need to lower the emissions that come from the automobiles they sell as well as from the manufacturing process by which the automobiles are built. Second, financial constraints that organizations like the IIGCC are imposing will also force Ford\u2019s hand by imposing further costs to ignoring climate change. Finally, as consumers become more environmentally conscious, they will be more likely to purchase either hybrid or electric vehicles, affecting the aggregate demand in the automotive industry.<\/p>\n

To address the issues related to climate change, Ford has rolled out a sustainability program with a three-pronged strategy:<\/p>\n

    \n
  1. Continuously reducing the greenhouse gas (GHG) emissions and energy usage of our operations<\/li>\n
  2. Developing the flexibility and capability to market lower-GHG-emission products, in line with evolving market conditions<\/li>\n
  3. Working with industry partners, energy companies, consumer group and policy makers to establish an effective and predictable market, policy and technological framework for reducing GHG emissions [4]<\/li>\n<\/ol>\n

    This strategy directly addresses the most pressing climate change issues facing the automotive industry. For their efforts, Ford\u2019s global manufacturing CO2 <\/sub>strategy received recognition at the US Environmental Protection Agency\u2019s Climate Leadership Awards Ceremony and Conference. [5] The company is evidently making great strides in their climate change strategy, embracing their role as a recognizable brand, and setting a precedent for other automotive companies to follow.<\/p>\n

    In examining what additional steps Ford might consider taking with regards to their GHG emissions strategy, one can use the five key demands raised by the IIGCC in \u201cInvestor Expectations of Automotive Companies: Shifting gears to accelerate the transition to low carbon vehicles\u201d,<\/em> paraphrased below:<\/p>\n

      \n
    1. Create governance to ensure board and management responsibilities for climate change are clearly defined<\/li>\n
    2. Identify long-term strategy to make business resilient to climate change<\/li>\n
    3. Create robust greenhouse gas emissions reduction plan<\/li>\n
    4. Engage pro-actively with public policy makers to accelerate the transition to a low-carbon economy<\/li>\n
    5. Increase transparency of fleet and manufacturing emissions in annual reports [6]<\/li>\n<\/ol>\n

      There is evidence on Ford\u2019s website that they are actually making progress on all five of these key demands. Ford should focus further on these existing efforts, and also act as a thought leader in the automotive industry, encouraging automotive companies similar to their own to adopt similar practices. It should be noted that while demands from these investors might seem to come from a place of altruism, in all likelihood the primary driver of this comes from fear that climate change regulations will cripple automotive firms that are unprepared to deal with the consequences. Whether these investors are altruistic in nature, or merely protecting their investments, their efforts are welcomed by all those concerned by climate change. (616 words)<\/p>\n

       <\/p>\n

      [1] – Rebecca M. Henderson, Sophus A. Reinert, Polina Dekhtyar, and Amram Migdal, \u201cClimate Change in 2016: Implications for Business,\u201d HBS No. N2-317-032 (Boston: 性视界 Business School Publishing, 2016), p. 9.<\/p>\n

      [2] \u2013 Terry Macalister, \u201cInvestors warn car industry over climate change,\u201d The Guardian, October\u00a012, 2016, [https:\/\/www.theguardian.com\/environment\/2016\/oct\/12\/investors-warn-car-industry-over-climate-change<\/a>], accessed November\u00a02016.<\/p>\n

      [3] \u2013\u00a0U.S. Department of Energy, \u201cThe History of the Electric Car,\u201d Breaking Energy, September 15, 2014, [http:\/\/breakingenergy.com\/2014\/09\/15\/the-history-of-the-electric-car\/], accessed\u00a0November\u00a02016.<\/p>\n

      [4] \u2013 Ford, \u201cFord’s Climate Change Strategy,\u201d \u00a0https:\/\/corporate.ford.com\/microsites\/sustainability-report-2014-15\/environment-climate-strategy.html<\/a>, accessed November 2016.<\/p>\n

      [5] \u2013 Ford, “Developing Our Stabilization-Based Climate Change Strategy and CO2 Reduction Targets,” https:\/\/corporate.ford.com\/microsites\/sustainability-report-2014-15\/environment-climate-strategy-stabilization.html, accessed November 2016<\/p>\n

      [6] – Institutional Investors Group on Climate Change. \u201cInvestor\u00a0Expectations\u00a0of\u00a0Automotive\u00a0Companies.\u201d 2016. [http:\/\/www.iigcc.org\/files\/publication-files\/IIGCC_2016_Auto_report_v13_Web.pdf], accessed November\u00a02016.<\/p>\n

       <\/p>\n","protected":false},"excerpt":{"rendered":"

      Ford's efforts to combat climate change amid new pressures from the private sector.<\/p>\n","protected":false},"author":1930,"featured_media":0,"comment_status":"open","ping_status":"closed","template":"","categories":[116,1218],"class_list":["post-8241","hck-submission","type-hck-submission","status-publish","hentry","category-automotive","category-climate-change"],"connected_submission_link":"https:\/\/d3.harvard.edu\/platform-rctom\/assignment\/climate-change-challenge-2016\/","yoast_head":"\nFord Goes Further to Curb Climate Change - Technology and Operations Management<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/ford-goes-further-to-curb-climate-change\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Ford Goes Further to Curb Climate Change - Technology and Operations Management\" \/>\n<meta property=\"og:description\" content=\"Ford's efforts to combat climate change amid new pressures from the private sector.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/ford-goes-further-to-curb-climate-change\/\" \/>\n<meta property=\"og:site_name\" content=\"Technology and Operations Management\" \/>\n<meta property=\"article:modified_time\" content=\"2016-11-04T03:41:28+00:00\" \/>\n<meta property=\"og:image\" content=\"http:\/\/breakingenergy.com\/wp-content\/uploads\/sites\/2\/2014\/04\/155782682.jpg\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data1\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/submission\\\/ford-goes-further-to-curb-climate-change\\\/\",\"url\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/submission\\\/ford-goes-further-to-curb-climate-change\\\/\",\"name\":\"Ford Goes Further to Curb Climate Change - Technology and Operations Management\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/submission\\\/ford-goes-further-to-curb-climate-change\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/submission\\\/ford-goes-further-to-curb-climate-change\\\/#primaryimage\"},\"thumbnailUrl\":\"http:\\\/\\\/breakingenergy.com\\\/wp-content\\\/uploads\\\/sites\\\/2\\\/2014\\\/04\\\/155782682.jpg\",\"datePublished\":\"2016-11-03T03:50:59+00:00\",\"dateModified\":\"2016-11-04T03:41:28+00:00\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/submission\\\/ford-goes-further-to-curb-climate-change\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/submission\\\/ford-goes-further-to-curb-climate-change\\\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/submission\\\/ford-goes-further-to-curb-climate-change\\\/#primaryimage\",\"url\":\"http:\\\/\\\/breakingenergy.com\\\/wp-content\\\/uploads\\\/sites\\\/2\\\/2014\\\/04\\\/155782682.jpg\",\"contentUrl\":\"http:\\\/\\\/breakingenergy.com\\\/wp-content\\\/uploads\\\/sites\\\/2\\\/2014\\\/04\\\/155782682.jpg\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/submission\\\/ford-goes-further-to-curb-climate-change\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Submissions\",\"item\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/submission\\\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"Ford Goes Further to Curb Climate Change\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/#website\",\"url\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/\",\"name\":\"Technology and Operations Management\",\"description\":\"MBA Student Perspectives\",\"potentialAction\":[{\"@type\":\"性视界Action\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Ford Goes Further to Curb Climate Change - Technology and Operations Management","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/ford-goes-further-to-curb-climate-change\/","og_locale":"en_US","og_type":"article","og_title":"Ford Goes Further to Curb Climate Change - Technology and Operations Management","og_description":"Ford's efforts to combat climate change amid new pressures from the private sector.","og_url":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/ford-goes-further-to-curb-climate-change\/","og_site_name":"Technology and Operations Management","article_modified_time":"2016-11-04T03:41:28+00:00","og_image":[{"url":"http:\/\/breakingenergy.com\/wp-content\/uploads\/sites\/2\/2014\/04\/155782682.jpg","type":"","width":"","height":""}],"twitter_card":"summary_large_image","twitter_misc":{"Est. reading time":"4 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/ford-goes-further-to-curb-climate-change\/","url":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/ford-goes-further-to-curb-climate-change\/","name":"Ford Goes Further to Curb Climate Change - Technology and Operations Management","isPartOf":{"@id":"https:\/\/d3.harvard.edu\/platform-rctom\/#website"},"primaryImageOfPage":{"@id":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/ford-goes-further-to-curb-climate-change\/#primaryimage"},"image":{"@id":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/ford-goes-further-to-curb-climate-change\/#primaryimage"},"thumbnailUrl":"http:\/\/breakingenergy.com\/wp-content\/uploads\/sites\/2\/2014\/04\/155782682.jpg","datePublished":"2016-11-03T03:50:59+00:00","dateModified":"2016-11-04T03:41:28+00:00","breadcrumb":{"@id":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/ford-goes-further-to-curb-climate-change\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/d3.harvard.edu\/platform-rctom\/submission\/ford-goes-further-to-curb-climate-change\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/ford-goes-further-to-curb-climate-change\/#primaryimage","url":"http:\/\/breakingenergy.com\/wp-content\/uploads\/sites\/2\/2014\/04\/155782682.jpg","contentUrl":"http:\/\/breakingenergy.com\/wp-content\/uploads\/sites\/2\/2014\/04\/155782682.jpg"},{"@type":"BreadcrumbList","@id":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/ford-goes-further-to-curb-climate-change\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/d3.harvard.edu\/platform-rctom\/"},{"@type":"ListItem","position":2,"name":"Submissions","item":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/"},{"@type":"ListItem","position":3,"name":"Ford Goes Further to Curb Climate Change"}]},{"@type":"WebSite","@id":"https:\/\/d3.harvard.edu\/platform-rctom\/#website","url":"https:\/\/d3.harvard.edu\/platform-rctom\/","name":"Technology and Operations Management","description":"MBA Student Perspectives","potentialAction":[{"@type":"性视界Action","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/d3.harvard.edu\/platform-rctom\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"}]}},"_links":{"self":[{"href":"https:\/\/d3.harvard.edu\/platform-rctom\/wp-json\/wp\/v2\/hck-submission\/8241","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/d3.harvard.edu\/platform-rctom\/wp-json\/wp\/v2\/hck-submission"}],"about":[{"href":"https:\/\/d3.harvard.edu\/platform-rctom\/wp-json\/wp\/v2\/types\/hck-submission"}],"author":[{"embeddable":true,"href":"https:\/\/d3.harvard.edu\/platform-rctom\/wp-json\/wp\/v2\/users\/1930"}],"replies":[{"embeddable":true,"href":"https:\/\/d3.harvard.edu\/platform-rctom\/wp-json\/wp\/v2\/comments?post=8241"}],"version-history":[{"count":0,"href":"https:\/\/d3.harvard.edu\/platform-rctom\/wp-json\/wp\/v2\/hck-submission\/8241\/revisions"}],"wp:attachment":[{"href":"https:\/\/d3.harvard.edu\/platform-rctom\/wp-json\/wp\/v2\/media?parent=8241"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/d3.harvard.edu\/platform-rctom\/wp-json\/wp\/v2\/categories?post=8241"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}