Ford’s board refused to respond to questions from investors during its annual shareholders meeting today on delivering on its commitment to green steel, its efforts to stop workers from unionizing and lack of engagement communities.
6% of investors voted for a proposal asking Ford to explain how it will meet its 2022 commitment to source low-carbon steel, a move essential to cutting its massive supply chain emissions. This follows the carmakers’ move in 2022 to join the First Movers Coalition, publicly committing to source at least 10% low-carbon steel by 2030. Despite this pledge, Ford has so far failed to disclose a credible plan for how they will meet this goal.
Ford refused to answer questions about the attempts by its joint venture BlueOval SK to dissuade workers from joining the union at electric-vehicle battery plants in Kentucky and Tennessee. Ford previously blocked shareholders from voting on a proposal on the issue by investor nuns, after it complained to the SEC. Investors subsequently wrote to Ford that their concerns about material risk remained, and have yet to receive a response.
Ford is a top performer of Lead the Charge’s annual leaderboard ranking of global automakers based on their efforts to build equitable, sustainable, and fossil-free electric vehicle supply chains, though no automaker achieved a total score of over 50% on the indicators. Investor concerns about Ford’s steel decarbonization efforts and its actions on labor and community rights shows the work that even industry leading carmakers need to do to ensure fair and sustainable supply chains.
Carly Oboth, senior supply chain campaigner with Public Citizen
“Ford and its board must be held accountable for the promises it has made to leverage its purchasing power to cut carbon emissions from its supply chain. If joining the First Movers Coalition was anything beyond a public relations stunt, the company must disclose a plan to keep its promises. It’s time for Ford to back up its words with a clear plan to meaningfully cut supply chain emissions.”
Sister Susan Francois, Assistant Congregation Leader & Treasurer of the Sisters of St. Joseph of Peace
“We are disappointed that Ford has refused to respond to our concerns about anti-union activities and local community demands for a legally-binding agreement. As investors we know that battles with workers and local communities are not good for business and we want to see Ford address these concerns. Pope Francis taught us that the local people must have a place at the table when projects are placed in their community and that workers have fundamental rights. Ford must take its role seriously in this regard.”
Aaron Acosta, program director at Investor Advocates for Social Justice:
”By ignoring investors’ concerns and failing to provide a meaningful response at the AGM, Ford has demonstrated, once again, that it prefers to pretend these serious human rights risks don’t exist. By shirking its human rights responsibilities, Ford appears more interested in short-term savings at the expense of long-term shareholder value, workers, and communities. We are deeply disappointed Ford has chosen this path.”