Ford Motor Company (F - Free Report) recently vowed to become carbon free by 2050, a target that will put the automaker into line with the expectations set by the landmark Paris climate agreement. To fulfill its commitment, the company will work with California to shrink its greenhouse gas output and find ways to eliminate pollution.
The company will focus on three key sources that make up to 95% of its carbon dioxide emissions, including emissions from the vehicles it sells, emissions from its factories, and suppliers.
In 2019, the firm extended its climate strategy approach to find more efficient ways to combine people's desires and needs with the industry, together with technological possibilities, by incorporating human-centered design-thinking. A cross-functional Ford team from around the world, including the United States, Europe and China, created a carbon-neutral approach, after reviewing information on the environment, consumers, infrastructure, regulations, energy, strategic strategies, life-cycle analyses and other factors.
Ford has also made considerable strides toward this target, with total carbon emissions from its plants dropping by more than 14% in 2019, which is roughly equal to having 138,000 motor cars off the road for a year. However, their cars and trucks' combined fuel economy flatlined the same year, suggesting that making changes to their biggest source of carbon emissions is a major challenge.
Ford is accountable for increasing the planet's CO2 emissions from people driving their vehicles. The cars it produces generate 135 million metric tons of carbon dioxide, which emits almost as much as 35 coal-fired power plants in a year.
Meanwhile, Ford is committed to spending more than $11.5 billion in investment into its electric vehicles (EV) through 2022, by introducing zero-emission versions of some of the company’s popular vehicles, including the Mustang Mach-E, which will arrive in dealerships this year, as well as the Transit Commercial EV and full-electric F-150 coming in 24 months.
Ford has also set a target of completely powering all its manufacturing plants by 2035 with locally-sourced renewable energy, which indicates that energy would be derived only from sources like hydropower, geothermal, wind or solar.
Zacks Rank and Stocks to Consider
Ford currently carries a Zacks Rank #3 (Hold). Shares of the company have declined 36%, year to date, compared with the industry’s rise of 38.7%.
Some better-ranked stocks are Niu Technologies (NIU - Free Report) , Tesla (TSLA - Free Report) and AngloGold Ashanti Limited (AU - Free Report) , each carrying a Zack Rank of 2 (Buy) at present. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Shares of Niu have surged 73.5% year to date, as against the industry’s decline of 11.9%.
Shares of Tesla have gained 129.7%, year to date, compared with industry’s rise of 38.7%.
Shares of AngloGold have rallied 27%, year to date, compared with the industry’s rise of 24.2%.
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