Ford introduces a financial framework for switching to EVs

Automotive manufacturer - Ford - introduces North America’s first sustainable financing framework, prioritising EVs, clean production, and the community

In an announcement made by Ford Motor Company, the automotive manufacturer, under its subsidiary - Ford Credit Company - has introduced to North America’s first sustainable financing framework for the automotive industry.

The framework focuses on and paying for ambitious plans in electric vehicles (EVs), clean production, and investing in communities.

“Winning businesses are financially healthy and lead in sustainability – it’s not a choice, they rely on each other. We’re again putting our money where our mouth is, prioritising and allocating capital to environmental and social initiatives that are good for people, good for the planet, and good for Ford,” said John Lawler, Ford’s CFO.

The announcement came from Ford on the fifth anniversary of the Paris Climate Agreement, and the company’s attendance of the United Nations Climate Change Conference (COP26) in Glasgow, Scotland.

Outlined initiatives in Ford’s sustainable financing framework aim to help the automotive manufacturer to become carbon neutral no later than 2050 (in line with the Paris Agreement). Ford was one of the first full-line automotive manufacturers to pledge its commitment to reducing greenhouse gas emissions from vehicles, operations, and the supply chain. 

“We’re going to build high-quality electric vehicles at scale and do so in a way that has a positive impact on people and the environment. In communities where air pollution and climate change are disproportionate burdens today, access to EVs can have the additional benefit of moving people to the front of the line for the health, economic and mobility benefits these vehicles can provide,” said Bob Holycross, Ford’s vice president, Sustainability, Environment and Safety Engineering.

Understanding the sustainable financing framework

Covering both unsecured and securitisation funding transactions, Ford and Ford Credit will finance environmental and social projects, as well as evaluate and select electrification and mobility projects. 

In addition, the framework will govern how the proceeds will be managed, with Ford and Ford Credit reporting on the results. 

The proceeds from sustainable financing will be invested in four areas:

  • Clean transportation
  • Clean manufacturing
  • Making lives better
  • Community revitalisation

To find out more, click here

Share

Featured Articles

Battery Innovation & Female Leadership in China's EV Sector

The EV landscape in China see sales surge amid battery innovation & women in leadership roles, who restructure supply chains & navigate geopolitics

Alstom's Electric Trains lead Sustainable Growth in Perth

Alstom's AUD$1bn contract for unit C-Series electric trains will ensure commuters in Perth can enjoy a clean & punctual commute, as e-trains gather speed

NIO Launches Smart Driving Technology Center in Germany

Smart electric vehicle manufacturer NIO has expanded its operations from China to Germany, with the launch of the Smart Driving Technology Center

Tesla & VinFast rev up EV manufacturing in India

Sustainability

Aggreko to Support Formula E’s Sustainability Targets

Sustainability

XPO Logistics Leads the Way in Decarbonisation

Sustainability