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Dow Jones & Company Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.Ford Motor Co., in a move urged by environmental groups, will embrace the concept of stabilizing global carbon dioxide, in what appears to be a first for a major auto maker.
But Ford won't commit to achieving a specific target for higher fuel economy in its vehicles. Instead, the auto maker's chairman and chief executive, William Clay Ford Jr., will call for a "broader discussion" about how to reduce carbon-dioxide emissions across the economy, said Niel Golightly, Ford's director of sustainable business strategies. Ford will "recognize a societal goal of achieving climate stabilization," said Mr. Golightly.
Ford will support a goal of stabilizing atmospheric carbon dioxide at 550 parts per million. Currently, carbon dioxide is at 380 parts per million and is on the rise, Ford said. Scientists who have studied rising atmospheric carbon-dioxide levels have predicted that if global economies continue on their current track, atmospheric carbon dioxide could rise to as much as 1,000 parts per million, creating the potential for harmful climate and environmental changes, Mr. Golightly said.
In a report scheduled for release today, Ford is expected to outline the potential impact on its business of climate change and related world-wide energy issues. The auto maker -- which recently said it would put greater emphasis on more fuel-efficient gasoline-electric hybrid engines -- prepared the paper in response to a shareholder resolution that was withdrawn after Ford committed to publishing the report. A spokesman for Ceres, a coalition of investors and environmental groups, said investors plan to file a resolution with General Motors Corp. next week urging the auto maker to prepare a report similar to Ford's.
"It's the first time an auto company has taken a comprehensive view of the financial risks from global warming," said Ceres President Mindy Lubber, who is also director of the Investor Network on Climate Risk.
At a time when Detroit auto makers have been hinting they could use a helping hand from Washington, Ford's decision to embrace at least the concept of more-vigorous action on global warming could put the auto maker at odds with the Bush administration. The White House has argued that the Kyoto treaty on climate change could hurt the U.S. economy. But Ford's statement calling for "market-based" strategies to stabilize global carbon-dioxide levels puts it in a league with several other big multinational corporations that have recently tried to find a middle ground in the climate debate.
"Regulation is not going to walk backwards on anything related to energy or carbon," Mr. Golightly said. "There's a hiatus in the U.S. But anywhere else, there is a pretty strong push on various frameworks" for carbon regulation.
Mr. Ford, who has described himself as an environmentalist, also is looking to burnish Ford's image as a progressive corporation dedicated to social responsibility and innovation. Ford's report got enthusiastic early reviews yesterday from leaders of the Union of Concerned Scientists and Ceres.
"They are highlighting that climate change is real, and that we need strong action," said Kevin Knobloch, president of the UCS.
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