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OUR FUTURE IS IN MOTION

WHAT DRIVES US
SUSTAINABILITY REPORT 2020

WWW.SUSTAINABILITY.FORD.COM
2 Ford Sustainability Report 2019/20 STRATEGY AND GOVERNANCE PUTTING PEOPLE FIRST PROTECTING OUR PLANET CREATING TOMORROW, TOGETHER

WELCOME
Welcome to our 2020 Sustainability Report, the 21st ABOUT OUR REPORTING SUITE Data Assurance
Data in this report is subject to various
annual report of our sustainability progress. We see This Sustainability Report details our
forms of assurance, as outlined below and
sustainability performance for 2019 and
reporting as an ongoing, evolving process and expect our early 2020.
noted in the data tables. The summary
reporting to continue to evolve. We invite your feedback report has been reviewed by Ford’s
To supplement this report, we publish top senior executives, as well as the
on the contents of this report, as well as our approach to summary information online, at Sustainability and Innovation Committee
reporting, at sustaina@ford.com. sustainability.ford.com, and in an eight- of the Board of Directors.
page summary.
Some of the data in our reports has
We support and align with the world’s been subject to internal and third-
leading sustainability reporting party verification.
CONTENTS
frameworks. You can find all our indexes
2 Welcome Financial data was audited for disclosure
on our downloads page.
in the Ford Annual Report on Form 10-K.
2 About Our Reporting Suite – Bloomberg Gender-Equality Index (GEI)
Verification data is not yet available for
– Global Reporting Initiative (GRI) Ford’s 2019 global facility greenhouse
3 Strategy and Governance Content Index gas (GHG) emissions. All (100 percent) of
3 Letter From William Clay Ford, Jr. and Jim Hackett – Sustainability Accounting Standards Ford’s 2019 global facility GHG emissions
4 Our Response to the COVID-19 Outbreak Board (SASB) Index will be third-party verified to a limited
6 Our Sustainability Strategy – Task Force on Climate-related Financial level of assurance in conformance with
8 Prioritizing Key Issues Disclosures (TCFD) Index ISO 14064-1:2018. In addition, all of our
10 Our Goals and Progress European facilities impacted by the
– UN Global Compact (UNGC)
13 Creating Value at Ford mandatory EU Emissions Trading Scheme
Communication on Progress Index
14 Governance (EU-ETS) are third-party verified. All
– UN Guiding Principles Reporting EU-ETS verification statements are
16 Putting People First Framework (UNGPRF) on Human provided to Ford, by facility, from Lucideon
Rights Index (formerly CICS) for U.K. facilities, Lloyds
16 Empowering Our People for Spain and Intechnica for Germany.
– United Nations Sustainable Development
22 Respecting Human Rights European facilities are verified against the
Goals (UN SDGs) Index
27 Safety and Quality EU-ETS rules and guidelines.
30 Strengthening Communities and Making Lives Better Reporting Scope and Boundaries
Consistent with GRI guidance on boundary Ford reports facility carbon dioxide
33 Protecting Our Planet setting, the data in this report covers all (CO2) equivalent emissions to national
of Ford Motor Company’s wholly and emissions registries or other authorities in
33 Climate Change Strategy
majority-owned operations globally, the United States, Canada, Mexico, Brazil,
35 Reducing Our Vehicle Footprint
unless otherwise noted, and spans 2019 China, Germany, Spain and the U.K.
41 Sustainable Operations
data for operations and 2019–2020 data
44 Minimizing Our Supply Chain Impact Various environmental data is reported
for vehicles, some of which was affected
to regulatory authorities. Ford’s facility
47 Creating Tomorrow, Together by the COVID-19 outbreak. Boundaries for
environmental data is managed using
each material issue are noted in our GRI
our Global Emissions Manager database,
47 Scaling Up Electrification Content Index.
which provides a globally consistent
49 Self-Driving Vehicles
Where relevant, data measurement approach to measurement and monitoring.
49 Mobility Solutions
techniques, the bases of calculations The kind of assurance used for each data
51 Customer Experience
and changes in the basis for reporting or set is noted in the data charts.
53 Global Data Analytics and Privacy
reclassifications of previously reported
data are included as footnotes.
3 Ford Sustainability Report 2019/20 STRATEGY AND GOVERNANCE PUTTING PEOPLE FIRST PROTECTING OUR PLANET CREATING TOMORROW, TOGETHER

LETTER FROM WILLIAM CLAY FORD, JR. AND JIM HACKETT


We believe that freedom of Last year, we celebrated 20 years of To help reduce the CO2 emissions With our Creating Tomorrow Together
sustainability reporting by setting associated with our vehicles we are transformation plan we are accelerating
movement drives human ambitious new goals to help us make offering a new generation of lower- our efforts to be a leader in mobility and
progress and are committed to a positive impact on the communities carbon powertrains and fuels, including making progress toward our vision of
helping everyone move more where we live and work. In this year’s hybrids and electric vehicles (EVs). We clean, safe, affordable and accessible
report we have turned the spotlight on are launching electrified versions of our transportation for all, with less congestion,
safely, confidently and freely. the amazing people behind our progress: most popular nameplates – the world’s better air quality, shorter journey times
Global challenges, from climate our skilled employees, our dedicated number one truck, best-selling sports car and fewer accidents. We foresee smart
dealers, suppliers and partners, our local and commercial vehicles among them – vehicles operating in a smart world,
change and public health to the communities and our valued customers. and offering customers access to North communicating with each other and
physical and social barriers to They are front and center in everything America’s largest EV charging network. the surrounding infrastructure through
mobility, are shaping the way we we do. open-source platforms such as our
Transportation Mobility Cloud. To help
do business. How we navigate In these unprecedented times we are
fulfill our vision we have invested in
reminded of how fragile this world can TO PROTECT OUR PLANET, BOTH
these challenges will be critically be. But we also are reminded of how NOW AND FOR FUTURE
strategic partnerships with Argo AI and
Volkswagen to develop self-driving
important on our journey to powerful it is when we work together GENERATIONS, WE ARE AIMING TO SOURCE technology. We also are making shorter
becoming the world’s most to drive human progress. These beliefs 100 PERCENT RENEWABLE ENERGY FOR journeys more efficient through our
confirm our current actions to address
trusted company. ALL OUR MANUFACTURING SITES BY 2035. e-scooter business Spin.
climate change and compel us to continue
WE ALSO HAVE SET A NEW GOAL FOR
to change our behavior in profound and In a time of challenges and change what
lasting ways. Ford is the only full line U.S. OURSELVES: ACHIEVE CARBON NEUTRALITY drives us remains the same: leaving things
automaker committed to doing its part GLOBALLY BY 2050.” better than we found them. By keeping
to reduce CO2 emissions in line with the people at the heart of every decision we
Paris Climate Agreement and working with make, we will build trust and create a
California for stronger vehicle greenhouse better future, together.
gas standards.

WILLIAM CLAY FORD, JR.


EXECUTIVE CHAIRMAN
JIM HACKETT
PRESIDENT AND CHIEF
EXECUTIVE OFFICER

William Clay Ford, Jr. Jim Hackett


Executive Chairman President and
Chief Executive Officer
4 Ford Sustainability Report 2019/20 STRATEGY AND GOVERNANCE PUTTING PEOPLE FIRST PROTECTING OUR PLANET CREATING TOMORROW, TOGETHER

OUR RESPONSE TO THE COVID-19 OUTBREAK


Our hearts go out to everyone affected physical, mental and emotional health,
by the coronavirus crisis. Throughout and conducted surveys to understand THIS IS ONE OF THE GREATEST CRISES TO THREATEN
our history, Ford has always answered their work preferences.
HUMANITY IN MY LIFETIME. IN TIMES OF CRISIS, IT IS INCUMBENT
the call for help when needed and that
We developed return-to-work protocols UPON EVERY CITIZEN TO DO WHAT THEY CAN, WHETHER IT’S TO STAY
legacy has continued during the COVID-19
for our manufacturing and non- AT HOME AND SOCIALLY ISOLATE OR LEVERAGE THEIR SKILLS IN
outbreak. As well as acting quickly to
manufacturing operations globally,
keep our people safe, we have supported DIFFERENT WAYS AND HELP.”
with amended safety requirements and
our communities and customers around
restructured roles. These comprehensive ADRIAN PRICE, DIRECTOR, GLOBAL CORE ENGINEERING – VEHICLE
the world.
“playbooks” are being applied consistently OPERATIONS MANUFACTURING
at all our locations to ensure the safety of
KEEPING OUR EMPLOYEES all employees.
SAFE AND WELL With many customers financially impacted
The safety and well-being of our people ADAPTING TO CHANGING by the outbreak, Ford Credit’s “Built to
Lend a Hand” program offers existing U.S.
has always been our top priority. To CUSTOMER NEEDS
protect our employees, we took the customers affected by the coronavirus the
We fully appreciate and value the efforts option for payment deferral. Eligible new
difficult but necessary decision to
of first responders, so we ensured customers in the United States can defer
temporarily suspend component and
dealership service centers remained open, payments for up to three months and Ford
vehicle production beginning early
largely to maintain emergency response will pay for three months, providing up to
February in China and mid-March across
vehicles. And we expanded our mobile six months of payment peace of mind.
the rest of our global operations. We
maintenance pilot program for retail and
also provided many of our employees
commercial fleet customers in the U.K., FORD HAS CONSISTENTLY APPEARED IN
with the technology to continue their
the United States and Argentina, helping
work from home, in line with shelter-in- THE TOP THREE “COMPANIES RESPONDING
crucial support vehicles stay on the road.
place guidance in their host countries, IN A MEANINGFUL WAY TO THE CRISIS,”
implemented programs to support their ACCORDING TO THE HARRIS POLL.

To minimize the risk of spreading the virus,


we now offer a fully digitized “shop, buy
and own” journey, and more than one-
third of our sales in China are now made
online. Ford dealers now employ our
“No Touch” service program with remote
pickup and delivery, and fully disinfect
vehicle surfaces for greater peace of mind.
With one eye on the future, we have been
working with Ohio State University to
assess whether new materials might help
us create anti-bacterial surfaces.
Having enhanced the software on our
Police Interceptor Utility vehicles, we
are enabling the powertrain and climate
control systems to “bake” the interior
at 56°C/133°F for 15 minutes – long
enough to disinfect the vehicle effectively,
according to Ohio State University.
5 Ford Sustainability Report 2019/20 STRATEGY AND GOVERNANCE PUTTING PEOPLE FIRST PROTECTING OUR PLANET CREATING TOMORROW, TOGETHER

HELPING IN THE FIGHT We have donated or loaned vehicles to


AGAINST COVID-19 charities and medical organizations across Our Holistic Approach
the world, supporting the distribution
Health care professionals, first Our “global policy, local action”
of food and medical supplies and the
responders, transport workers and approach has been supported
transportation of volunteers and patients.
store clerks are putting themselves by robust governance structures
During National Nurses Week, Lincoln
in harm’s way to provide essential and clear communication, and
delivered 1,000 meals to frontline workers
services. To support them as best we directed by a cross-functional Crisis
at medical centers in Los Angeles and
can, we have used our design expertise Management team.
New York, accompanied by thank-you
and manufacturing capacity to help messages from customers. With a global shutdown forcing a
produce medical and personal protective renewed focus on cost and liquidity,
equipment, joining forces with union Our employees have shown they care
we reduced spending across the
representatives and partners from other through the COVID-19 Donation Match
business to ensure we emerge from
industries around the world. Program, a combined effort between
the crisis stronger. Our recent actions
Ford Fund and Bill Ford that will match
• In just 40 days, we worked with 3M to provide the flexibility to weather the
$500,000 in donations to community
design and develop a new Powered disruption caused by COVID-19 and
organizations fighting COVID-19, raising
Air-Purifying Respirator (PAPR), using the confidence to continue investing
a potential $1 million. Ford employees
existing parts including fans from Ford America, while volunteers in Spain, Brazil in growth opportunities. While the
are also reading children’s books for our
F-150 cooled seats. Volunteers at our and Argentina have also been making effects of the coronavirus may affect
Read and Record project, creating an
Vreeland facility in Flat Rock, Michigan, face shields timings, we are still excited about the
online library for young people affected by
will produce as many as 100,000 PAPRs new launches we have planned.
• We leveraged the 3D printing capability school closures.
• Working with GE Healthcare, volunteer at our Advanced Manufacturing Center Read the latest coronavirus news and
employees in Michigan will produce as to produce disposable respirator masks updates on Ford.com
many as 50,000 Model A-E ventilators, a
simplified ventilator designed to operate • We collaborated with suppliers to
on air pressure without the need for produce collection kits for testing
electricity, within the first 100 days of patients and make up to 300,000
beginning production reusable isolation gowns a week from
airbag materials
• Our design team created transparent
full-face shields, which were tested at
SUPPORTING OUR
three hospitals in the Detroit area. We
have since ramped up production to a COMMUNITIES
maximum capacity of more than Our philanthropic arm, Ford Fund, has
4 million a week allocated resources worth $1.6 million to
help communities and nonprofits on our
• Our Chihuahua Engine Plant in Mexico doorstep and around the world to address
is producing 100,000 face shields for hunger, shelter and mobility challenges
health care workers across Central related to COVID-19.

WE’VE BEEN AROUND 117 YEARS. WE WERE THE ARSENAL OF


DEMOCRACY DURING TWO WORLD WARS, AND WE BUILT IRON
LUNGS FOR POLIO VICTIMS. WHENEVER WE’RE CALLED ON,
WE’RE THERE.”

BILL FORD, EXECUTIVE CHAIRMAN


6 Ford Sustainability Report 2019/20 STRATEGY AND GOVERNANCE PUTTING PEOPLE FIRST PROTECTING OUR PLANET CREATING TOMORROW, TOGETHER

OUR SUSTAINABILITY STRATEGY


We are changing the way we work, • Changing the way we work:
how vehicles are made and the For the customer to be at the center of
way people move. We are changing all we do, employee centricity is critical.
lives for the better. We are Creating This includes empowering decisions to
Tomorrow, Together. be made at the lowest level, streamlining
systems and processes, and ensuring
Building on our strengths, we’re investing
we are developing our team for the skills
in our core business of designing,
needed today and in the future. It is
manufacturing, marketing, financing
imperative to have an inclusive culture
and servicing cars, sports utility vehicles
where all voices are heard, and everyone
(SUVs), trucks and commercial vehicles.
supporting Ford feels that they belong.
And, at this pivotal moment in time in our
We also are flexible in where and how
industry, we are up to the challenge to
work is done, providing the necessary
maximize new opportunities created by
tools and technology for teams to
electrification, self-driving technology and
collaborate virtually, while providing
mobility solutions.
energizing workspaces when teams meet
• Changing how products are made: face to face
We’re creating high-quality vehicles in an
• Changing lives for the better:
environmentally and socially responsible
As a global employer, brand, purchaser
way, and reducing the impacts of our
and neighbor, we want to have a positive
operations and supply chains through
influence on the future. We can do this
world-class facilities, innovative
through our vehicles and services, as
manufacturing processes and the most
well as by offering the best customer
sustainable materials
experience, assisting disadvantaged
• Changing the way people move: populations, strengthening our
We’re creating smart vehicles and supply chain and building safe,
mobility solutions for a smart world, inclusive workplaces
based on our long-term vision of
increasing access to easier, safer and
cleaner journeys for all

OUR ASPIRATIONAL GOALS


Climate Change Energy Access Air
We aspire to achieve carbon We will use 100 percent locally We aspire to drive human We aspire to achieve zero air
neutrality by 2050 sourced renewable energy for progress by providing mobility emissions from our facilities
all manufacturing lants globally and accessibility for all
Human Rights Materials
by 2035
We aspire to responsibly source Water We aspire to only use recycled
all raw materials used within our Waste We will make zero water and renewable plastics in our
vehicles globally We will achieve true zero waste withdrawals for vehicles globally
to landfill across our operations manufacturing processes
Diversity
We aspire to become the We will eliminate single-use We will use freshwater for
most inclusive and diverse plastics from our operations human consumption only
global company by 2030
7 Ford Sustainability Report 2019/20 STRATEGY AND GOVERNANCE PUTTING PEOPLE FIRST PROTECTING OUR PLANET CREATING TOMORROW, TOGETHER

OUR ISSUES-SPECIFIC – People Strategy In a recent study with the Erb Institute at the University of Michigan, we asked internal and
STRATEGIES external stakeholders “What does human progress mean?” The findings – which spanned
– Human Rights Strategy
enhancing societal economic prosperity, increasing access to transportation, preserving
Our approach to sustainability involves human rights, and protecting health and safety – suggest that trust and innovation are both
– Climate Change Strategy
doing our share to meet the collective essential to driving human progress.
challenges the world faces. To address the – Sustainable Materials Strategy
full range of these material issues, we have
developed a number of strategies that are – Circular Economy Strategy
targeted toward specific topics. – Renewable Energy Strategy

PRESERVE
HUMAN RIGHTS

ENHANCE PROTECT HUMAN


SOCIETAL HEALTH, SAFETY
ECONOMIC AND WELL-BEING
PROSPERITY

INCREASE
ACCESS TO
TRANSPORTATION

OUR LONG-TERM VISION – OF A


OUR AIMS CONNECTED TRANSPORT NETWORK
COMPRISING INCREASINGLY INTELLIGENT
 
VEHICLES COMMUNICATING WITH EACH

OTHER AND THE WORLD AROUND THEM
Trusted Mobility: To become the world’s Driving Human Progress: To provide Positive Impact: To not just reduce our
most trusted company vehicles and services that help create footprint but to develop innovations that – WILL MAKE PEOPLE’S LIVES BETTER IN
We understand that trust is earned by living a better world and facilitate freedom bring positive benefits WAYS THEY MAY NOT YET REALIZE.
up to your commitments. Our ambitions in of movement We want to go beyond minimizing the
this area are based on behaving ethically Throughout our history, our purpose has impact of our activities to having a net
and with integrity, acknowledging where we always been based on driving human positive contribution to society and the
can improve, being transparent and open to progress through mobility and accessibility. environment. Naturally, we want our
change, and striving to serve others. We will continue to explore and develop vehicles to use less fuel and produce
new solutions in connectivity, automation fewer emissions. But our long-term
and electrification, foster different vision – of a connected transport network
capabilities within our business and use comprising increasingly intelligent vehicles
human-centered design to make the future communicating with each other and the
better for everyone. world around them – will make people’s
lives better in ways they may not yet realize.
8 Ford Sustainability Report 2019/20 STRATEGY AND GOVERNANCE PUTTING PEOPLE FIRST PROTECTING OUR PLANET CREATING TOMORROW, TOGETHER

PRIORITIZING KEY ISSUES


The world is constantly changing, Our Materiality Matrix
so conducting a formal materiality The materiality matrix (right) plots each Materiality Matrix
assessment helps us identify and issue and the ratings accorded to it.

Higher
prioritize the sustainability issues that The y-axis represents the influence on
matter most to our business and are stakeholders and the x-axis represents
of most concern to our stakeholders. the impact on Ford. Issues found closer to
1
The process we undertake enables us the upper right-hand corner of the matrix 3
8 2
to focus our sustainability strategy, are of higher influence and impact to both 10 6
resources and reporting on these issues. Ford and its stakeholders. 9
See the GRI Content Index for the definitions 11 7 5
MATERIALITY RESULTS

Influence on Stakeholders
of our material issues 12 4
We conduct materiality assessments 17
23 16 13
every two years and carried out our most Our Materiality Process
recent analysis in early 2019. The results Identification 18
14
are reflected in the matrix opposite. We created a list of potential issues, 21 19
grouped into four categories: governance 15
We consider material information to be 22
and ethics, planet, people and innovation. 20
that of greatest interest to, and having the These were identified through desk-based 26 24
potential to affect the perception of, those research, which included a peer review,
stakeholders who wish to make informed media scan and review of sustainability
decisions and judgments about the thought leadership from industry experts
company’s commitment to environmental, and associations. 25
social and economic progress. 27
Prioritization
The analysis identified our most material An online survey, followed by a

Lower
issues as: workshop attended by external and
• Electrification and alternative fuels internal stakeholders, helped us in
Lower Impact on Ford Higher
further identifying key challenges and
• Customer satisfaction, vehicle quality opportunities, and prioritizing the issues. 
and safety
Review 1 Electrification and 8 Human rights 18 Work stoppages
• Vehicle carbon footprint/fuel economy The results of the analysis were reviewed alternative fuels 9 Air quality 19 Mobility solutions
by a range of internal and external 2 Customer satisfaction, 10 Customer engagement 20 Employee wellness, health
• Climate change/resilience strategy/ vehicle quality and safety
stakeholders. Revisions were made to and marketing and safety
energy future 3 Vehicle carbon footprint/
ensure that our process and list of issues 11 Ethical business practices 21 Smart technology
fuel economy
• Supply chain management/capacity were comprehensive, well understood 12 Sustainable materials 22 Process chemicals
4 Climate change/resilience
building and performance/responsible and reflective of stakeholders’ views strategy/energy future 13 Self-driving vehicles 23 Environmental management/
sourcing of raw materials and feedback. 5 Supply chain management/ 14 Changing process innovation

capacity building and consumer preferences 24 Operations/logistics energy


We consider human capital, human rights, See our GRI Content Index for more details use and GHG emissions
performance/responsible 15 Financial health, intellectual
health and safety, and diversity and on our approach to materiality sourcing of raw materials property protection and 25 Water use
inclusion as issues of great importance 6 Accountable and brand perception 26 Sustainable cities
for social and economic progress. We also inclusive governance 16 Human capital and infrastructure
acknowledge other emerging trends and 7 Government regulation, 17 Waste management 27 Socioeconomic contribution
assess them for inclusion as they arise. policy and engagement and community engagement
COVID-19 has reinforced the importance
of putting people first and embracing
Key Planet People Innovation Governance and Ethics
disruption to evolve.
9 Ford Sustainability Report 2019/20 STRATEGY AND GOVERNANCE PUTTING PEOPLE FIRST PROTECTING OUR PLANET CREATING TOMORROW, TOGETHER

STAKEHOLDER REVIEW OF Recommendation priority non-conformances by offering RBA


OUR REPORT Addressing Specific Climate Change e-learning modules, developing corrective
Goals and Leadership Initiatives action plans and monitoring progress.
Dialogue with our stakeholders fosters
trust, helps us identify new trends and Ford response Recommendation
emerging issues, and consolidate the Aspiring to achieve carbon neutrality Improving Diversity and Inclusion
partnerships we have established to help globally by 2050, we focus on vehicle
Ford response
us achieve our aspirational goals. use, suppliers and factories, which
Leveraging the diversity of our people
together represent 95 percent of our
Investors and Analysts makes our business stronger and helps us
emissions. We also need to address many
Through face-to-face meetings, reflect the communities in which we live
external factors, including government
telephone calls, roadshows and and work. We have embedded diversity
policies, technical solutions, energy price
conferences, Ford regularly engages with and inclusion in our People Strategy
fluctuations and changes in consumer
investors and analysts, who increasingly to create a culture that enables us to
demand. We will advocate for key
factor in environmental, social and attract, retain and develop top talent.
enablers that support our aspirational
governance (ESG) aspects in their We have many teams and Employee
goal and encourage collaboration
investment decisions. Resource Groups focused on inclusion,
between stakeholders.
supported by partnerships fostering
Sustainability and Recommendation diversity among suppliers, communities
Innovation Committee Focusing on the Positive Impact of and customers. Jim Hackett, our President
As part of their responsibilities, the Human Rights Systems Throughout the and Chief Executive Officer (CEO), The renovated UAW-Ford Technical
members of our Sustainability and Supply Chain committed to the CEO Action for Diversity Training Center reopened in 2019 with
Innovation Committee of the Board & InclusionTM pledge and we became a
Ford response new courses in Advanced Manufacturing
of Directors review the summary signatory to the United Nations Women’s
We rely on the skills of thousands of Engineering and emerging skills like
Sustainability Report. Empowerment Principles.
employees and people in our supply chain. drone piloting, 3D printing, robotics and
Ceres Stakeholder Committee Everything we make – or that others For the second year in a row, Ford was networking technology.
As in recent years, a stakeholder make for us – needs to be consistent included in the 2020 GEI in recognition of We are also committed to identifying
team selected by Ceres provided with local laws and our own commitment its commitment to transparent gender and engaging with the next generation
recommendations for this report. to protecting human rights, which we reporting and workplace equality. And by working with high schools, colleges
Representing a range of constituencies and identify through our salient human rights to support our aspiration to become and universities. Students can undertake
expertise, including investors, academia, assessment process. We serve on the the world’s most trusted company, we practical assignments at Ford, while
small- and medium-sized enterprises Board of Directors of the Responsible published our GEI survey responses research can be directed toward the
(SMEs) and suppliers, the Business Alliance (RBA), actively along with our Sustainability Report. anticipated needs of our business.
Ceres Stakeholder Committee participate in several workgroups and We also received a perfect score of 100
convened in April 2020. use its Validated Audit Protocol to assess on the Disability Equality Index Best Recommendation
Ford’s responses to their labor, health and safety, management Places to Work list. For more details, see Identifying and Incorporating ESG Risks
recommendations are systems, ethics and environmental issues. the 2019 Diversity Performance Metrics into Our Overall Risk Management
summarized as follows: In addition, we assist suppliers with report section. Ford response
Recommendation With a heightened focus on ESG-related
Maintaining an Adaptive Workforce reporting, we are continuously working
FORD MOTOR COMPANY UNDERSTANDS THE IMPORTANCE, AND Equipped to Manufacture New toward improving our transparency
THE VALUE, OF REGULARLY INVITING REPRESENTATIVES OF KEY Vehicle Types through the disclosure of all ESG risk
STAKEHOLDER INTERESTS TO OFFER SPECIFIC, ACTIONABLE factors. Among the risk factors included
Ford response in our Annual Report on Form 10-K for
RECOMMENDATIONS FOR IMPROVING THE COMPANY’S SUSTAINABILITY Helping employees stay up to speed the year ended December 31, 2019, were
PERFORMANCE. THROUGH OUR ENGAGEMENT WE CONSTRUCTIVELY CHALLENGE THE with the latest technologies required by specific ESG-related risks, including
COMPANY’S LEADERSHIP TO THINK BIGGER, BOLDER AND FASTER IN PURSUIT OF THEIR the automotive industry, we research climate-related physical risk and
MOST MATERIAL, AND MOST URGENT, OBJECTIVES.” new techniques, explore alternative employee recruitment and retention
digital strategies, and offer learning – ensuring that we attract and retain
JOHN WEISS, SENIOR DIRECTOR, CERES COMPANY NETWORK opportunities in the skills and capabilities talented and diverse employees.
required by the “Factory of Tomorrow.”
10 Ford Sustainability Report 2019/20 STRATEGY AND GOVERNANCE PUTTING PEOPLE FIRST PROTECTING OUR PLANET CREATING TOMORROW, TOGETHER

OUR GOALS AND PROGRESS


Our goals, commitments and targets are aligned with our material issues. Below,
we have summarized our progress and provided examples of how we’re making
a positive contribution to society as we work toward them. All our initiatives are
in progress.

ASPIRATION TOPIC AREA GOALS 2019/2020 PROGRESS EXAMPLES

CLIMATE CHANGE/ENERGY/AIR/MATERIALS

Climate Change: We aspire Reducing Our Improve fuel economy across our global vehicle We aspire to achieve carbon neutrality by 2050
Vehicle Footprint lineup, consistent with regulatory requirements and
to achieve carbon neutrality Combined car and truck fuel economy fell by 0.3 percent in 2019
climate stabilization
by 2050. Award-winning EcoBoost® and EcoBlue technology now used in 8 million engines worldwide
CDP Climate Change questionnaire
Energy: We will use
We have published our second Climate Change Scenario Report
100 percent locally sourced
renewable energy for all Continue our lightweighting plans By switching to aluminum, we reduced the weight of the 2018 Lincoln Navigator by 200 pounds, the 2018 Ford
manufacturing plants Expedition by 300 pounds and the 2017 Ford Super Duty by 350 pounds

globally by 2035. We are incorporating graphene, a strong but light carbon-based material, to all our vehicles, starting with the
Ford F-150 and Mustang
Air: We aspire to achieve Offer alternative fuel vehicles We offer several models powered by ethanol and biodiesel
zero air emissions from
A wide range of commercial vehicles and certain passenger vehicles run on compressed natural gas (CNG) and
our facilities. liquefied petroleum gas (LPG)

Materials: We aspire to Continue to develop and implement our We have set an interim goal of 20 percent sustainable material by 2025
only use recycled and Sustainable Materials Strategy Since 2000, we have used 12 industry- and world-first plant-based materials in our production vehicles
renewable plastics in our We are researching the possible use of tomato skin, bamboo, agave fiber, dandelion roots, algae and
vehicles globally. coffee chaff

Sustainable Reduce global facility CO2 emissions by 18 percent We aspire to achieve carbon neutrality by 2050
Operations (2019–2023) We have set a goal that exceeds the requirement of the IEA ETP 2017 Beyond 2°C Scenario pathway for Ford’s
manufacturing operations
CDP Climate Change questionnaire

Achieve 32 percent renewable energy by 2023 and Our Dearborn Truck Plant, Michigan Assembly Plant and several new buildings on our Research and Engineering
100 percent locally sourced renewable energy and Corktown campuses will be powered by 100 percent locally sourced renewable energy by January 2021
by 2035

Air emissions reductions other than CO2 We are working to reduce emissions of non-CO2 pollutants, in accordance with increasingly stringent standards
around the world
In February 2019, we announced the largest renewable energy procurement in our history through a
collaboration with DTE Energy.

Minimizing Our Engage with our supply chain to understand its We surveyed 253 production suppliers (83 percent) using the CDP Supply Chain program’s Climate Change
Supply Chain carbon and water footprints questionnaire, and 162 suppliers (78 percent) responded to the CDP Water questionnaire
Impact
Work with selected suppliers to reduce our We aspire to achieve carbon neutrality by 2050
collective environmental footprint We shared best practices examples with 56 key Tier 1 suppliers through the Partnership for A Cleaner
Environment (PACE) and introduced a streamlined version, FastPACE, in Asia Pacific. Suppliers in the PACE
program expect to save 680,000 metric tons of CO2 over the next five years
11 Ford Sustainability Report 2019/20 STRATEGY AND GOVERNANCE PUTTING PEOPLE FIRST PROTECTING OUR PLANET CREATING TOMORROW, TOGETHER

ASPIRATION TOPIC AREA GOALS 2019/2020 PROGRESS EXAMPLES

ACCESS

We aspire to drive Safety and Quality Design and manufacture vehicles that offer Ford Co-Pilot360TM technology is being rolled out in key global markets
innovative driver assist technologies, and meet
human progress by For the 2019 model year, 10 Ford and three Lincoln nameplates received 5-Star Overall Vehicle Scores in the U.S.
or exceed all regulatory requirements for safety New Car Assessment Program (NCAP), and five models earned 5-star ratings by Euro NCAP in 2019
providing mobility and and quality
accessibility for all. Ford results in the Vehicle Dependability Study have improved every year for the past four years, and our score
in the Automotive Performance, Execution and Layout (APEAL) study has improved every year since 2014. Five
2019 Ford Motor Company models won awards in their category
In 2019, Ford was one of five U.S. brands performing above the industry average in the Initial Quality Study. With
Ford ranked fourth (2018: fifth) and Lincoln fifth (2018: seventh), this was the first time both brands have made
the top five

Play a leading role in vehicle safety and driver assist We are a founding member of the American Center for Mobility
research and innovation We are a partner in Automated Driving Applications and Technologies (AdaptIVe), Europe’s largest research
project on automated driving
We have established partnerships with a range of universities, including Purdue University and Virginia Tech

Provide information and educational programs to Ford Driving Skills for Life reached 40,000 participants in 2019 and is currently active in 31 countries
promote safe driving practices

Health and Safety Fatalities target is always zero We did not have any fatal incidents in 2019 to report. This is a significant achievement for us because
unfortunately, we have experienced fatalities in previous years

Zero serious injuries, attain industry competitive Our lost-time case rate (LTCR) decreased from 0.41 to 0.39.
lost-time and drive continuous improvement

Maintain or improve employee personal health and We continue to provide programs and services that help employees achieve health and well-being and make
well-being informed choices

Mobility Solutions Deliver our Ford Smart Mobility plan, with a focus We acquired Quantum Signal (robotics and sensing technology)
on emerging opportunities in mobility We are developing the Transportation Mobility Cloud, an open software platform allowing vehicles and
infrastructure to communicate
Testing self-driving vehicle technology in partnership with Argo AI continues
We are expanding the Spin e-scooter business to Europe

Electrification Pursue our electrification strategy We are investing more than $11.5 billion in electrification globally over five years
The all-electric Mustang Mach-E is being launched in the United States and Europe
Other zero-emission vehicles include Ford Escape and Lincoln Aviator plug-in hybrids, the Territory EV in China
and an all-electric Transit in Europe and North America for the 2022 model year

HUMAN RIGHTS

We aspire to responsibly Respecting Human Ensure everything we make or that others make We conducted a formal assessment of our salient human rights issues, in line with the UNGPRF
Rights for us is consistent with local laws and our own
source all raw materials We developed and started to roll out human rights action plans
commitment to respecting human rights
used within our We have conducted around 50 human rights assessments against our Policy Letter 24 since 2004
vehicles globally. Help suppliers build their capacity to manage We determined 22 high-priority countries, based on an annual human rights risk analysis
supply chain sustainability issues We conducted 15 training sessions on human rights, working conditions, business ethics and the environment
We aligned 100 percent of our 79 Aligned Business Framework (ABF) production suppliers’ codes of conduct
with our Policy Letter 24

Assess Tier 1 suppliers’ compliance with local laws We completed 1,186 supplier audits and 1,612 follow-up assessments to date
and Ford’s supply chain sustainability expectations We conducted 23 new audits in 2019 using the RBA Validated Assessment Process methodology (100 percent
certified by the RBA)

Minimizing Our Improve the transparency of mineral sourcing and We achieved a 100 percent response rate from in-scope suppliers for conflict minerals 3TG reporting
Supply Chain increase the capacity of conflict-free smelters We implemented a responsible sourcing of raw materials strategy
Impact
Continue to purchase from veteran-, minority- and We purchased goods and services worth $8.49 billion from minority-owned suppliers, $1.53 billion from women-
women-owned businesses owned businesses, $0.179 billion from veteran-owned companies and $5.22 billion from small businesses
12 Ford Sustainability Report 2019/20 STRATEGY AND GOVERNANCE PUTTING PEOPLE FIRST PROTECTING OUR PLANET CREATING TOMORROW, TOGETHER

ASPIRATION TOPIC AREA GOALS 2019/2020 PROGRESS EXAMPLES

WASTE

We will achieve true zero Sustainable Reduce waste to landfill by 21 percent when We have 102 zero waste to landfill sites, up from 88
Operations measured in kg per unit
waste to landfill across We have recorded a 21 percent reduction in waste to landfill per vehicle over the period 2018–2020
our operations. Reduce general trash by 15 percent when measured We are standardizing the tracking and sorting of waste to increase recycling and reuse
We will eliminate single- in kg per unit

use plastics from our Improve waste avoidance by 10 percent when We are implementing technologies and programs that minimize waste
operations by 2030. measured in kg per unit We are working with suppliers to increase the use of eco-friendly packaging

Eliminate single-use plastics by 2030 We have established an interim target of 20 percent renewable and recycled plastics by 2025

WATER

We will make zero Sustainable Save an additional 30 percent of the water from our We have reduced our absolute operational water use by 13 percent since 2018 and by 70 percent since 2000
Operations manufacturing (2015–2020) (saving more than 11 billion gallons)
water withdrawals for
manufacturing processes. Use freshwater sources for human We have installed more non-water-based technologies and used alternative sources such as other companies’
consumption only treated wastewater
We will use freshwater for
human consumption only. Make zero water withdrawals for We are incorporating more water processes and technologies in our assembly plants, including water reuse and
manufacturing processes recycling systems

Minimizing Our Work with selected suppliers to reduce our We have shared best practice examples with 56 key Tier 1 suppliers through PACE, and introduced a streamlined
Supply Chain collective environmental footprint version, FastPACE, in Asia Pacific. PACE participants expect to save an estimated 470 million gallons of water in
Impact their operations from 2019 to 2030

DIVERSITY

We aspire to become the Diversity and Integrate diversity and inclusion across We firmly embedded diversity and inclusion in our People Strategy and Culture Operating System to support our
Inclusion the enterprise overall corporate strategy
most inclusive and diverse
global company. Create an environment of inclusion We signed the CEO Action for Diversity & InclusionTM pledge in 2018
We hosted the Check Your Blind Spots Tour in July 2019
We became a signatory to the United Nations Women’s Empowerment Principles in February 2020
We led the global Day of Understanding across all Ford markets in March 2020
We used Employee Resource Groups (ERGs) to serve their membership, the business, customers and
communities around the globe
We launched virtual Lunch Series around belonging and inclusion

Drive diversity and inclusion-focused learning 20,000 salaried employees globally attended facilitated or online unconscious bias learning sessions
across the enterprise to reduce unconscious bias

Promote gender parity and equal pay For the second year in a row, Ford was included in the Bloomberg GEI in 2020
Our Global Salaried Gender Pay Ratio is 98.2 percent1

1 A peer group consists of employees in the same region, salary grade and skill team, when available.
13 Ford Sustainability Report 2019/20 STRATEGY AND GOVERNANCE PUTTING PEOPLE FIRST PROTECTING OUR PLANET CREATING TOMORROW, TOGETHER

CREATING VALUE AT FORD

OUR INPUTS OUR BUSINESS VALUE CREATED


(OUTPUTS AND OUTCOMES)
Human
190,433 people employed Our Purpose Our Aims Our Governance
Employees
10,921 dealers To drive human progress • Trusted company Solid governance to manage
Around 1,200 Tier 1 suppliers through freedom • Driving human progress sustainability across Employee salaries and benefits
of movement our business
• Positive impact Employee training and development
Social and Relationship
Customers

Provide communities access to
opportunities for improvement for Financial assistance and deferred
more than 70 years Design payments for customers impacted
Community partnerships with We consider sustainability by COVID-19
non-profits and dealers in more criteria to reduce our 5.38 million vehicles sold

than 50 countries vehicles’ impacts.
Created the largest EV public
End of Vehicle Life Raw Materials charging network in the United States
Financial We produce vehicles that and Suppliers
$156 billion in revenue generated
 are 85 percent recyclable. We encourage our suppliers Investors
in 2019 to adopt high environmental
and social standards. $2.6 billion as dividends

Investing more than $11.5 billion in
 to shareholders
electrified vehicles through 2022
Mobility Logistics (inbound) Suppliers
We are exploring Our We encourage our
Manufactured new solutions logistics providers More than $15 billion spent
55 manufacturing and
 to support business to transport finished from minority-, women- and
assembly plants urban mobility. activities vehicles and parts veteran-owned companies and
8 regional engineering, R&D centers efficiently. small businesses in 2019

Investing more than $4 billion


 Best practices cascaded through
through 2023 on launching a Our Vehicles in Use Manufacturing PACE program
self‑driving service We provide a safe We invest in lean
and enjoyable process and world- Communities
experience with high- class factories to
Intellectual quality vehicles. create positive impact. Over $2 billion invested in

4,884 global utility patents issued communities to date
 ver 100 years as pioneers in
O $10 million invested in Detroit over

Sales and Service Logistics (outbound)
the auto industry – and 20 years’ four years
We’re reimagining customer We encourage our logistics
experience in EVs
experience by listening and providers to transport finished Inaugural SHE-MOVES grant program,
adapting to their needs. vehicles and parts efficiently. supporting social enterprises in India,
Natural Nigeria and South Africa
12.97 billion kWh of energy used

Society
1 9.4 million gallons of water used
for manufacturing processes  740 million invested in Detroit’s
$
(19 percent from groundwater) Michigan Central Station
Face shields, ventilators and
respirators manufactured in response
to COVID-19
14 Ford Sustainability Report 2019/20 STRATEGY AND GOVERNANCE PUTTING PEOPLE FIRST PROTECTING OUR PLANET CREATING TOMORROW, TOGETHER

GOVERNANCE
We believe that sound governance SUSTAINABILITY
structures and policies are needed GOVERNANCE THE SUSTAINABILITY AND INNOVATION COMMITTEE IS AN
to govern our business, manage
We employ a variety of governance IMPORTANT ELEMENT OF FORD’S GOVERNANCE STRUCTURE,
our performance and create value
responsibly and ethically. These systems and processes to manage the PROVIDING ESSENTIAL OVERSIGHT OF ESG ISSUES AND ASSESSING
processes and systems serve as different aspects of sustainability across HOW OUR INNOVATIONS SUPPORT OUR SUSTAINABILITY AGENDA.”
the foundation for delivering on our our business, as summarized throughout
this report. WILLIAM H. HELMAN, CHAIRMAN, SUSTAINABILITY AND INNOVATION COMMITTEE
sustainability strategy and integrating
ESG issues into our business decisions. As outlined opposite, we have a number
of management processes, systems and
CORPORATE GOVERNANCE groups in place that are designed to help Board Committees Sustainability and Innovation Committee
us improve our performance against our • Meets up to three times a year
While remaining a successful business,
material and salient sustainability issues,
we want our operations and activities • Primary responsibility for assessing the company’s progress on
from climate change and human rights to
to have a positive impact on the world. strategic economic, environmental and social issues as well as
safety and quality, and take responsibility
Our integrated governance systems and the degree to which sustainability principles have been integrated
for the positive impact our activities have
processes help us build sustainability into the various skill teams (see the Committee’s Charter)
on society and the world around us.
across our company. • Evaluates and advises on innovations and technologies that
As part of our efforts to remain successful improve our economic, environmental and social sustainability,
TRANSPARENCY AND TRUST enrich our customers’ experiences, increase shareholder value
and profitable, our business needs to be
lean, fit and agile, so that we can capitalize We always keep ethics and compliance and improve people’s lives

on new opportunities in the future. That’s at the heart of our business practices, • Reviews the summary Sustainability Report as well as any
where our workplace transformation as we believe that trust in our brand is initiatives related to innovation
comes in, reducing bureaucracy, building earned by acting with honesty, expertise
and care. Other Board Committees: Audit, Compensation, Nominating and
skills and adopting more efficient ways Governance and Finance.
of working. Our Corporate Compliance, Ethics and
Our Board of Directors is guided by Integrity Office provides training and Executive Management Vice President, Chief Sustainability, Environment and
our Corporate Governance Principles, communication tools to help our people Safety Officer

Code of Ethics and charters for each comply with our policies and their legal • Primary responsibility for sustainability issues
board committee. These are publicly obligations. They include a mobile app,
The Right Way, that answers frequently • Oversees the Sustainability & Vehicle Environmental Matters
available in the Corporate Governance
asked questions and provides direct group, the Environmental Quality Office, the Vehicle Homologation
section of our corporate website. Read & Compliance group and the Automotive Safety Office
more about corporate governance in our access to the Compliance, Ethics and
Form 10-K report. Integrity Office. • Leads a multi-disciplinary senior-level team to oversee our
actions in response to our climate change and sustainable
The Right Way is available to our global mobility strategies
workforce in several local languages, as
well as our suppliers and other partners, Other executive and group vice presidents across our functional
helping them become more familiar with areas also have responsibility for sustainability-related issues.
our policies and practices. The information
is shared with other companies and groups Function Areas Sustainability and Vehicle Environmental Matters
as “open source” material. • Coordinates our companywide sustainability strategy and
activities

• Leads our sustainability reporting and stakeholder engagement

• Collaborates with other functional areas and skill teams to


integrate sustainability throughout the company
15 Ford Sustainability Report 2019/20 STRATEGY AND GOVERNANCE PUTTING PEOPLE FIRST PROTECTING OUR PLANET CREATING TOMORROW, TOGETHER

To leverage our resources more effectively We created a Culture Operating


ETHICS AND INTEGRITY ARE A BIG PART OF WHO WE ARE AS A on priority issues, we work with external System that proactively measures the
partners through a wide range of transformation of Ford to enhance a
COMPANY. WE STRIVE TO PROVIDE CLEAR POLICIES, EFFECTIVE
coalitions, industry groups and trade culture of mutual respect and acceptance
COMMUNICATION AND ENGAGING TRAINING TO MAKE IT EASY FOR OUR associations. This helps us develop and to help eliminate harassment and
PEOPLE TO DO THE RIGHT THING AND COMPLY WITH OUR POLICIES AND promote policies that could benefit our discrimination. This system is being
LEGAL OBLIGATIONS.” company, our industry and society as implemented globally and driving a shared
a whole. culture that is aligned with our Truths.
BETH ROSE, CHIEF COMPLIANCE, ETHICS AND INTEGRITY OFFICER, AND ASSISTANT As part of this implementation, we provide
GENERAL COUNSEL When our views do not align with those
access to necessary accommodations
of the associations to which we belong,
and basic services in the workplace,
we reserve the right to make our own
like assistive technology and spaces
Ethics and Compliance Training To ensure this, we have: position clear.
like breastfeeding rooms and changing
Our Policy Letters and Directives formally
• Put clear anti-bribery and anti-corruption Policy Letters and Directives areas. We will complete mandatory
set out the expectations we have for our
policies in place We use Policy Letters and Directives to anti-harassment training of all global
employees and others working on our
establish a framework of broad, basic employees by the end of 2020.
behalf. The most important of these are • Established procedures for the
contained within our Code of Conduct principles within which we conduct
mandatory reporting of suspected In addition, we are implementing several
Handbook, available to employees in our business across the world. These
violations of laws or policies actions to enhance a culture around
14 languages. These expectations are materials provide more in-depth
mutual respect in all our manufacturing
reinforced in mandatory online training • Included anti-bribery and anti-corruption information on certain topics and specific
facilities globally. These include:
courses, which are periodically refreshed elements in our Global Terms and business segments.
and reviewed to ensure the content Conditions and other contracts • Our Culture Playbook, which includes
remains relevant and appropriate. HARASSMENT AND training on root cause analysis and
• Assessed our operations for bribery and
leadership engagement
Reporting Violations corruption-related risks DISCRIMINATION
Our compliance program facilitates Everyone has the right to feel safe, and • Sensitivity training for vehicle
• Trained individuals who may encounter
the confidential reporting of known or to be themselves, at work, so we identify launch teams
bribery or corruption issues in their work
potential violations of the law or of our harassment and discrimination as a • Compliance with U.S. state-specific
policies. Our people can report violations salient human rights issue (see page 22). mandated anti-harassment training
directly to Human Resources or the PUBLIC POLICY
National governments make decisions H
 arassment and discrimination is a • The governance of harassment and
Compliance, Ethics and Integrity Office
that impact our activities every day. salient human rights issue for Ford. discrimination, including quarterly
as well as the Office of General Counsel
or the General Auditors’ Office. Violations As a global business, we acknowledge We don’t allow any form of harassment, reporting and reviews with Ford’s
can also be reported using the SpeakUp our responsibility to input into those prejudice, intimidation or violence, Executive Leadership Team and Board
reporting mechanism, telephone hotlines, decisions and use our influence to inform including, but not limited to, being based of Directors
websites or email, some of which allow for any subsequent policies. on gender, gender identity, race, color, Find out how Ford is creating an
anonymous reporting. religion, age, national origin, sexual
Supporting the Policy-Making Process inclusive culture
We participate openly in the political orientation, disability or veteran status.
Allegations are reviewed by a cross-
functional committee, which oversees process, supporting the development of
any investigations and subsequent local, regional, national and international
corrective or disciplinary action. policies that affect our company,
customers and communities. We share our
Anti-Bribery and Anti-Corruption expertise and add our perspective through
Our many facilities around the world need our Government Affairs offices around WE’RE WORKING TOGETHER TO UNLEASH THE FULL POTENTIAL
to comply with a wide range of national the world. OF OUR WORKFORCE IN MANUFACTURING AND CREATING A
laws and governmental enforcement WORK ENVIRONMENT THAT IS SAFE AND INCLUSIVE FOR EVERYONE. WE
practices with regard to bribery and
DO NOT TOLERATE ANY FORM OF PREJUDICE OR INTIMIDATION AND, TO
corruption. We maintain the highest
standards wherever we operate and do FOSTER A CULTURE FOUNDED ON RESPECT AND ACCEPTANCE, WE ARE TEACHING AND
not allow bribery or corruption, even when LEARNING EVERY DAY.”
it may be tolerated or condoned.
LILIANA RAMIREZ, GLOBAL DIRECTOR, LEAN MANUFACTURING AND CULTURE
16 Ford Sustainability Report 2019/20 STRATEGY AND GOVERNANCE PUTTING PEOPLE FIRST PROTECTING OUR PLANET CREATING TOMORROW, TOGETHER

PUTTING EMPOWERING
We’re transforming our culture. Our culture is positioned to deliver today’s
Our people’s passion and dedication will results. To deliver better results tomorrow,
OUR PEOPLE
PEOPLE
build a better tomorrow for everyone, so we know that we must shift some aspects
we’re focused on creating an adaptive, agile of our culture to create new experiences and
workforce. Through respect, inclusion and shape new beliefs. Culture transformation

FIRST
Our culture – what it’s like to work
equality, everyone will feel empowered to fulfill at Ford – is built on the strength takes time but we continued our journey
their potential. of our history and transformed toward a winning, customer-centered
by our passion and ambition to culture during 2019 by recognizing how our
We’re changing the way we work. shared values and beliefs impact our day-
create tomorrow. We believe
We’re redesigning the way we work to gain new
People drive our success: in creating experiences for our to-day interactions and business results.
capabilities, improve efficiency and keep people
our skilled employees, our at the heart of everything we do.
employees, customers, partners and We have launched a Culture Operating
communities that empower people
dedicated dealers, suppliers We respect human rights. to make the world a better place. We
System that enables us to work quickly
across functions on key experiences, while
and partners, our local We address the issues with the most impact embrace diversity and inclusion, and shared governance and metrics help us
on the thousands of people touched by create a culture that enables us to
communities and our valued align what “success” looks like.
our business. attract, retain and develop top talent.
customers. They are front and
We’re focused on health and safety. Our People Strategy CHANGING THE WAY WE WORK
center of everything we do to Keeping our employees safe at work, even Through our holistic approach,
Driven by Ford Land, we’re making a
drive human progress. during the COVID-19 crisis, and providing we will:
positive impact on workplace culture and
customers with safe, high-quality vehicles how people interact around the world.
Use continuous learning and
are both priorities for us. More than just managing properties, we
THE HEART OF FORD’S GLOBAL adaptive capabilities to deliver
We’re building a customer-focused business. business value and reinforce are delivering experiential workplaces
COMMUNITY WORK IS MAKING
By consistently behaving with integrity, expertise our culture where team members will innovate,
PEOPLE’S LIVES BETTER.
and empathy, we will earn customers’ trust. collaborate and thrive as well as being
OUR EMPLOYEES ARE THE BACKBONE Create a more fit and flexible flexible around our employees’ preference
This is critical as we work toward becoming the
OF THIS WORK, AND THEIR VALUES IN organization through to work remotely. We’re using space
world’s most trusted company.
GIVING BACK AND CARING FOR OTHERS collaborative networks and differently, tailored to each location, from
We’re committed to being a good neighbor. processes that enable agility and our new global technology and product
DRIVE THIS MISSION. SUPPORTING THE
We want to have a positive impact on the customer centricity development center in Chennai, India, to
COMMUNITIES WHERE WE LIVE AND
communities where we live and work, from a Build an inclusive, diverse and a new administrative facility in São Paulo,
WORK THROUGH MEºNTORSHIP,
healthy environment to building long-lasting adaptive learning community, Brazil. These sites will act as magnets for
SERVICE AND PARTNERSHIP partnerships that address key challenges. attracting and retaining the best people,
drive accountability and deliver
PROGRAMS IS WHAT MAKES FORD A as we co-create a new future.
value every day
SPECIAL FAMILY COMPANY.” OUR ASPIRATIONAL GOALS
Creating a Winning Culture One example is D-Ford, our new human-
 e aspire to become the most
W Put simply, our culture is how it feels to centered design group, which will help
MARY CULLER, inclusive and diverse global company. everyone learn and use new tools to make
work at Ford. It encompasses our daily
PRESIDENT, FORD FUND us better at how we think and what we do.
We aspire to responsibly source all raw interactions and experiences, our beliefs,
DETROIT DEVELOPMENT DIRECTOR the spaces in which we work and the way We’ve established four D-Ford labs – in
materials used within our
CHIEF OF STAFF, OFFICE OF THE we act. Detroit, London, Palo Alto and Shanghai – to
vehicles globally.
EXECUTIVE CHAIRMAN better understand and satisfy our customers.

Sustainable Development Goals


Through our work in putting people first, we are I COME TO WORK EVERY DAY EXCITED TO COLLABORATE AND
contributing to the following United Nations INNOVATE WITH MY AMAZING TEAM. FORD PROVIDES THE
Sustainable Development Goals: TOOLS, THE SPACE AND THE FREEDOM TO DO JUST THAT. WE ARE
CHANGING THE WAY WE WORK BY PROVIDING MORE FLEXIBILITY AND
ENCOURAGING EACH OTHER TO DO OUR BEST.”

LAURA CASTRO, CHIEF FINANCIAL OFFICER, MEXICO, CARIBBEAN AND


CENTRAL AMERICA
17 Ford Sustainability Report 2019/20 STRATEGY AND GOVERNANCE PUTTING PEOPLE FIRST PROTECTING OUR PLANET CREATING TOMORROW, TOGETHER

190,433
Read more about Ford’s response
Our Culture Operating System to COVID-19 and how we’re
Getting fit and capitalizing on new Organizational Fitness and Workforce restarting operations
GLOBAL WORKFORCE AT END OF 2019
opportunities is critical to our future. Planning: To manage organizational

8,531
Employee Engagement
We’re making our business more health and deliver against our priorities,
and Satisfaction
agile and competitive by updating we are redesigning how we work to be
Effective communication is vital to our
our policies and procedures to reduce more efficient, empower employees ANNUAL DECREASE IN EMPLOYEES IN 2019
ongoing success, so we use many different
bureaucracy; redesigning the way we and address bureaucracy.

32
channels to drive dialogue with our
work to encourage collaboration and
Communication: We undertake employees. These include our Intranet
productivity; building the skills and
consistent, employee-centered site and website; corporate publications
capabilities of our people; and acting EMPLOYEES IN OUR CULTURE CABINET
communication and capture employee and reports; social media; Jim Hackett’s
with integrity at all times to build trust. WERE NOMINATED TO INFLUENCE AND
sentiment as a measure of our video blog; webcasts and executive Q&A
sessions with senior management; labor– ENERGIZE OTHERS
Strategy, Trust and Brand: Our strategy, culture transformation.

5,000
brand and culture must be aligned to management committee meetings; Global
Our Truths: Our shared beliefs for how “Town Huddle” meetings; and Employee
achieve our aspiration to be the world’s
we live, act and communicate provide Resource Group initiatives.
most trusted company. VOLUNTEERS MAKE UP OUR CULTURE
clarity of behavior and are integrated
Agile and Design Thinking: Innovative, in the way we attract, onboard and We’re engaging at all levels of the business STREET TEAM
human-centered ways of working develop talent. on the transformation of our culture.
will be crucial to keeping up with this For example: Understanding the Employee Experience
technology-driven business environment. Ford has completely revamped its
• The 32 employees in our Culture approach to understanding and acting
Workplace Experience: Transforming Cabinet were nominated to influence on employee sentiment. Traditionally,
our workplaces requires integration, and energize others to help shape our the company relied on broad, occasional
interaction, collaborative technology and culture transformation. Diverse in terms surveys to know how employees were
flexible working. of demography, discipline and market, thinking and feeling. After extensive
the group represents the employee research, it became clear that more
Diversity and Inclusion: An inclusive and voice to senior leaders, providing insight
diverse workplace is critical to executing focused, more frequent and more
into what’s working and what needs comprehensive data was needed.
our corporate strategy. to change
Policies and Processes: We are co- As a result, Ford developed a new
• Our Culture Street Team is a global ask/listen/observe framework – a
creating solutions with employees, network of about 5,000 volunteers who
focusing on the language we use as comprehensive and consistent
develop and lead initiatives to promote methodology for studying employee
well as how our employees experience culture change across the business
those policies. sentiment in near real-time. The
framework – the recipient of an i4cp 2020
Next Practice Award – incorporates both
active and passive measurements related
to employee experience:
Responding to COVID-19 Our Compassion Protocol focuses on
To support our workforce, we introduced leading with empathy and compassion
Working Remotely resources to ramp up when caring for our Ford family in these
from approximately 1,000 employees challenging times.
working from home to over 115,000
We developed return-to-work protocols WE ARE CREATING GLOBAL CENTERS OF EXCELLENCE WHERE
virtual workers – all within one week.
for our manufacturing and non- TALENT CAN THRIVE. THESE WILL BE INVITING PLACES FOR
As our workforce embraced this new
manufacturing operations globally, EMPLOYEES, PARTNERS, BUSINESSES AND ENTREPRENEURS TO WORK
way of working, we implemented two
with amended safety requirements and WITH US TO CREATE TOMORROW, TOGETHER.”
programs to support their physical, mental
restructured roles. These comprehensive
and emotional health and well-being.
“playbooks” are being applied consistently DAVE DUBENSKY, CHAIRMAN AND CEO, FORD LAND DEVELOPMENT
Ford@Home communicates weekly key
at all our locations to ensure the safety of
resources to help employees take care of
all employees.
themselves and others, stay connected
to their teams, and get work done.
18 Ford Sustainability Report 2019/20 STRATEGY AND GOVERNANCE PUTTING PEOPLE FIRST PROTECTING OUR PLANET CREATING TOMORROW, TOGETHER

• Asking for employee reactions on a


particular topic – for example through DIVERSITY AND INCLUSION IS NOT A PROGRAM OR AN INITIATIVE.
surveys, polls, focus groups or interviews
IT’S ABOUT PEOPLE. THERE’S ONE BASIC HUMAN NEED COMMON
• Listening to what employees naturally TO EVERY SINGLE PERSON ON THE PLANET: THAT’S THE NEED TO
say about a topic in public forums, BELONG. WE CAN’T BE THE WORLD’S MOST TRUSTED COMPANY UNLESS
whether internal (e.g., @FordOnline EVERYONE SUPPORTING FORD CAN BE THEMSELVES AND DO THEIR BEST WORK.”
article comments) or external (e.g.,
Glassdoor reviews) LORI COSTEW, CHIEF DIVERSITY OFFICER

• Observing behaviors, such as Creating a Sense of Belonging


employees attending events, viewing UN Women’s In July 2019, our World Headquarters
announcements, watching videos and Empowerment Principles hosted the Check Your Blind Spots Tour,
downloading materials related to the Jim Hackett, our President and CEO, in support of the CEO Action for Diversity
topic being studied signed the UN Women’s Empowerment & InclusionTM pledge. This event raised
Most recently, the framework was used Principles on behalf of Ford Motor awareness of unconscious bias and
to study employee sentiment related to Company in February 2020. In doing offered a unique, technology-enabled
the COVID-19 outbreak. An enterprise poll Creating the Campus of the Future so, we have proudly committed multimedia experience, centered on
collected perceptions, reactions, feelings Illustrating our human-centered to a set of principles uncovering “blind spots” that influence
and needs from thousands of employees design and cross-functional to empower women everyday decision making.
each week. Ask/listen/observe data was approach, we’re transforming our around the world in the
In partnership with the CEO Action pledge,
continuously reviewed by Ford decision Research and Engineering Center in workplace, marketplace
Ford employees celebrated the Day of
makers and content creators, then used to Dearborn, Michigan, into a high-tech and communities.
Understanding in March 2020, to advance
target resources and shape new programs. campus that will help drive innovation inclusion across Ford. This energetic
and attract world-class talent. By fully leveraging the diversity of our and inspiring day focused on creating
Ford’s ask/listen/observe framework
global team and ensuring a workplace in awareness and a sense of belonging for
allows the company to better, and more A new central building – the future
which everyone is included, we can make all employees through dialogue, learning
quickly, understand employee needs – home to our product development
our business stronger, and reflect the and connecting. As part of the event, Lori
and to create more impactful solutions community – has been designed to
communities in which we live and work. Costew, our Chief Diversity Officer, asked
that meet those needs. This approach optimize the way we work. Informed
This is critical for attracting and retaining every salaried employee to identify one
will continue to be developed, harnessing by employee feedback, human
top talent; people want to come work for a behavioral shift they can make to create a
employee feedback along the way. behavior and 4D design principles,
company where they have an opportunity more inclusive workplace.
which take into account changes
to thrive.
DIVERSITY AND INCLUSION over time, the flexible space will Learn more about Ford’s diversity and
incorporate a mix of personal, Social Injustice inclusion actions online
We aspire to become the most inclusive collaborative and communal zones. Society and corporations cannot stay
and diverse global company, and invite silent to social injustice. Watch a short video about the Day
everyone to bring their whole selves – all The site – based on the principles of of Understanding
their passion, inspiration, integrity and integration, interaction, co-location There’s no doubt that the weight of these
uniqueness – into work each day. and flexibility – will showcase challenges disproportionately falls on
new mobility solutions such as the African American community. We Creative Ways to Promote Diversity
electrified bikes, scooters and have seen this disparity among Ford team Ford’s commitment to cultural
OUR GOAL shuttles, and comprise a wealth of members affected by COVID-19, and the diversity shines through in this year’s
sustainability features. legacy of economic disparities in our own advertising campaign for the all-new
We aspire to become
home city of Detroit. 2020 Escape. The campaign, Built
the most inclusive and Together with the restoration of Phenomenally, showcases remarkable
diverse global company. Michigan Central Station in Detroit’s This is our moment to lead from the front women in the entertainment industry
Corktown neighborhood, as well and fully commit to creating the fair, as well as at Ford. It also spotlights
as our robotics research lab at the just and inclusive culture that all team our commitment to the Free the
Our Approach to Diversity and Inclusion University of Michigan in Ann Arbor, members deserve. There are no easy fixes
The business case for having an inclusive Work initiative we co-founded, which
we’re creating an innovation corridor to longstanding systemic issues. However, encourages companies to be more
and diverse team is irrefutable. Diversity where innovators can develop and we are committed to listening, learning
and inclusion (D&I) is firmly anchored into inclusive in the bidding process for
test future mobility solutions. and co-creating solutions to make us a creative talent.
our plan for Creating Tomorrow, Together. better company.
19 Ford Sustainability Report 2019/20 STRATEGY AND GOVERNANCE PUTTING PEOPLE FIRST PROTECTING OUR PLANET CREATING TOMORROW, TOGETHER

Employee Resource Groups


Rankings and Ratings Highlights One of the best examples of embedding Women of Ford Celebrate
a sense of belonging into everyday life International Women’s Day
at Ford is our network of Employee The theme of the International
Resource Groups (ERGs) – organizations Women’s Day 2020 campaign,
of employees who share characteristics #EachforEqual, focuses on the idea
For the second year in a row, Ford was 2019 Disability Equality Index (DEI): For or life experiences. Our ERGs drive that by challenging stereotypes,
included in the 2020 GEI in recognition of the first time, Ford received a perfect professional development, host fighting bias, broadening perceptions
its commitment to transparent gender score of 100 on the DEI Best Places to professional, educational and cultural and celebrating women’s
reporting and workplace equality. And Work list, a leading disability inclusion events, support recruitment and achievements, we can all support
to support our aspiration to become assessment tool. Our score demonstrates community outreach, and help advance gender equality.
the world’s most trusted company, we that we follow many aspects of disability business goals.
On March 9, 2020, our Professional
published our GEI survey responses inclusion best practices.
For more than two decades, Ford’s Women’s Network ERG hosted
along with our Sustainability Report.
Ford has received further recognition from: ERGs have provided support, outreach, its seventh annual International
mentoring and development to all Women’s Day event. Its three main
employees, as well as providing critical elements were:
input into the business. ERGs are
sponsored by our senior leaders and are • A rebranding of the group to become
open to all our employees. Women of Ford

We currently have 11 ERGs for a range • President and CEO Jim Hackett
I AM HONORED AND MOTIVATED TO BE THE EXECUTIVE
of ethnicities, women, the LGBTQ+ sharing his views on gender equality
CHAMPION FOR WOMEN OF FORD. OUR GOAL IS FOR FORD TO BE
community, employees of faith, disabled • A moderated panel with the female
A LEADING COMPANY OF CHOICE FOR EMPOWERMENT, INCLUSION AND
employees, veterans and employees new leaders at Ford who were featured in
PROFESSIONAL DEVELOPMENT FOR ALL WOMEN – AT ALL LEVELS. WE in tenure. the book The Road to the Top is Not
HAVE MORE THAN 10,000 MEMBERS AROUND THE GLOBE AND TOGETHER, WE ARE
Watch a short video about our ERG groups on the Map
COMMITTED TO DRIVING CHANGE IN THE WORKFORCE.”
Global Salaried Gender Pay Ratio The Women of Ford and its member
LISA DRAKE, GLOBAL VP OF PURCHASING AND CHIEF OPERATING OFFICER OF FORD
Ford’s Global Salaried Gender Pay Ratio, chapters are driving change on
NORTH AMERICA several key strategic imperatives:
defined as the weighted average ratio of
average female salaries to average male increasing the ratio of women in the
salaries within peer groups1 worldwide, is company, becoming an employer of
98.2 percent. choice for women, and enhancing
2019 DIVERSITY PERFORMANCE global communications in an effort
While this ratio provides a rough measure to create a community of male and
OF OUR GLOBAL SALARIED WORKFORCE: OF OUR U.S. EMPLOYEES (HOURLY AND SALARIED):

27.5% 31.6%
of pay equity, it does not account for female advocates.
individual circumstances such as job
titles, education and experience. Such Attendees were also able to browse
ARE FEMALE ARE MEMBERS OF MINORITY GROUPS factors may explain much of the difference a photo gallery of female Ford

22.2% 24.3%
between the female and male averages. employees, called Women Behind the
Blue Oval. One of them, Dr. Cynthia
We are interested in providing Flanigan, is featured in the
OF MANAGERS2 ARE FEMALE ARE FEMALE transparency on how well we are doing, New Power Suit campaign,
as well as reaffirming our long-term which celebrates women
OF OUR 14 BOARD DIRECTORS: OF OUR 39 CORPORATE OFFICERS: commitment to fairly compensating all making an impact within

3 6
our employees. and outside of the
automotive industry.
ARE WOMEN ARE WOMEN

2
IDENTIFY THEMSELVES AS MEMBERS
8
IDENTIFY THEMSELVES AS MEMBERS 1 A peer group consists of employees in the same region, salary grade and skill team, when available.
OF MINORITY GROUPS OF MINORITY GROUPS 2 Middle management and above.
20 Ford Sustainability Report 2019/20 STRATEGY AND GOVERNANCE PUTTING PEOPLE FIRST PROTECTING OUR PLANET CREATING TOMORROW, TOGETHER

BUILDING AN ADAPTIVE • An extended program during the first


WORKFORCE year of employment provides new Ford Ranked as Student Employer
employees with a range of engagement of Choice
Our success depends on our ability to opportunities, including corporate and
attract, engage and retain a diverse We are proud to have been listed as
skill team orientations, presentations,
employee population, and help keep an attractive employer in Universum’s
question-and-answer sessions
pace with a rapidly evolving world 2019 Talent Survey, taken by more
with leaders and an internal social
through continuous, agile learning. than 247,000 students. Ford
media platform
was ranked 12th by engineering
Attraction and Retention Strong policies help Ford people balance students and 47th among business
Attracting Tomorrow’s Talent their work and personal lives and support students in the annual survey,
Our research shows that employees them during key moments. U.S. salaried which ranks characteristics such
choose Ford because of its rich employees, new mothers and fathers, as work environment, innovation,
history, reputation and brand values, and adoptive parents are eligible for eight future earnings and leadership
career development and training Celebrating Diversity and
weeks of paid parental leave, in addition in development.
opportunities, and commitment to D&I. Inclusion in Latin America
to six to eight weeks for the birth mother.
In the competition for talent, creative In 2019, Brazil celebrated its first D&I
New parents are also eligible to transition
recruiting methods are vital. Our strategy Week with speakers and events all Developing Our Leaders
back to work part-time at full-time pay.
includes working alongside professional centered on the themes of addressing A culture of learning is key. We continue to
These policy changes enhance our ability
organizations, colleges and universities unconscious bias and Brazil’s history develop, deploy and evaluate programs
to attract and retain top talent and
(including historically black colleges of diversity. that help leaders succeed in their roles,
increase employee morale.
and universities), engaging with local as well as developing and engaging their
Meanwhile in Mexico, we celebrate
community partners and connecting Our Re-Entry Program teams to deliver value and prepare for
Pride Month every year and organize a
with the next generation of creators and Ford’s Re-Entry Program is designed to the future.
Diversity Fest for all Ford employees
innovators using social media. recruit those who have spent time out
across the country. This national Our cohort-based leadership programs
of the corporate world, primarily due to
event sees each plant taking incorporate social and peer learning
raising families or serving in the military.
Supporting the LGBTQ+ charge of one of the five pillars: to provide intense development
Successful applicants are offered full-time
Community LGBTQ+, generations, disabilities, experiences applied to specific work-
positions and supported to reintegrate into
multicultural, gender. related challenges:
We support Fair and Equal Michigan’s the workforce. The program helps talented
efforts to initiate legislation amending people with a diverse range of skills, • The Global Leadership Summit: For
the state’s civil rights law to support Our FordWorks inclusive hiring program experiences and backgrounds be successful executives and general managers
the LGBTQ+ community and protect helps us deliver on-the-job training at Ford, driving productivity, innovation and responsible for global projects,
against discrimination. and employment opportunities to creativity across the business. departments and budgets
neurodiverse employees. Equitable IN THE U.K., WE HAVE EXTENDED OUR
AT FORD, WE’RE • Global Executive Leadership: Geared
pay and the continual development of MATERNITY WORKSHOP PROGRAM,
COMMITTED TO toward directors and senior managers
FordWorks employees are core values of COVERING FLEXIBLE WORK OPTIONS,
CREATING A SAFE AND associated with a region, but with
the program. STATUTORY ENTITLEMENTS responsibilities that extend globally
INCLUSIVE WORKING
Keeping the Best Onboard AND WELL-BEING, TO INCLUDE
ENVIRONMENT THAT REFLECTS THE • Experienced Leader Program: Aimed at
After identifying and hiring the right PATERNITY WORKSHOPS.
COMMUNITIES IN WHICH WE LIVE AND middle management, the program helps
people, a strong onboarding experience Watch a short video about our
WORK. THAT’S WHY WE SUPPORT grow the capabilities of our skill team
is essential. In the United States, for Re-Entry program leaders running regional projects and
THESE EFFORTS TO AMEND THE example, we have two programs that
Learning and Development functional departments
ELLIOTT-LARSEN CIVIL RIGHTS ACT equip new employees for success:
Developing our people is critical to • Leadership Academy: A recommended
TO INCLUDE LGBTQ+ PROTECTIONS • Get Started provides 30 days of support our future success as well as ensuring curriculum path for new and experienced
GIVING THE STATE OF MICHIGAN THE services and resources, helping new employee satisfaction. That’s why we front-line leaders, which builds
ABILITY TO PROVIDE EQUAL RIGHTS starters navigate the essentials of commit significant resources to providing foundational leadership skills
TO ALL RESIDENTS AND ATTRACT early onboarding employees with insight into organizational
NEW RESIDENTS.” skill needs, developing learning solutions
to address those needs and enabling
BILL PETERS, GLOBE CHAIRPERSON
our people to apply those abilities to
improve performance.
21 Ford Sustainability Report 2019/20 STRATEGY AND GOVERNANCE PUTTING PEOPLE FIRST PROTECTING OUR PLANET CREATING TOMORROW, TOGETHER

Getting Fit for the Future of science and mathematics in industry. pursuing higher education. Since 2012,
Keeping employees up to speed with Participants work with professional FDD has impacted more than 200,000
the latest technologies required by the scientists, engineers and technicians students across the United States,
ever-evolving automotive industry is a in state-of-the-art laboratories and Puerto Rico, Latin America and Europe.
major challenge. We support employee manufacturing facilities The initiative has delivered more than
development by researching new $10 million in educational resources.
• We support The Tech Interactive, a
techniques, adapting delivery and exploring
nonprofit science and technology center in Watch a short video about Ford
alternative digital strategies, as well as
the heart of downtown San Jose in Silicon Driving Dreams
providing continuous learning opportunities
Valley. The experiential learning resource
in the skills and capabilities required by • Ford College Community Challenge
provides hands-on activities, experimental
what we call the Factory of Tomorrow. (Ford C3): In 2014, Ford Fund teamed up
education programs is crucial if we’re labs and design challenges to encourage
with the nongovernmental organization
Since the early 2000s, we have used going to fill the gap between tomorrow’s innovation, creativity and curiosity
(NGO) Enactus to bring Ford C3, an
extended reality to design new products needs and the skills of today’s workforce. Empowering Through Education innovative program supporting college
and processes. Virtual reality provides
• After more than two decades of support We know that education drives individual student social entrepreneurs, to nine
global teams of operators and engineers
of FIRST®, a robotics community that and community prosperity and social additional markets in Europe, Africa and
with the opportunity to collaborate in
prepares young people for the future, mobility. Today’s global, innovation- Latin America. Over the past five years, this
immersive learning experiences, and allows
Ford became a FIRST Strategic Partner based economy requires people to access collaboration has helped around 2,500
them to design parts or equipment, or fix
to encourage learning among students relevant knowledge and skills, enabling students launch 190 social enterprises
problems with layout, ergonomics and
of all ages. During 2019–2020, we them to adapt to the pace of technological that have positively impacted more than
safety, before anything is manufactured.
supported more than 200 teams across change that confronts us all. 200,000 people around the world
Factory employees are also developing
analytic tools to monitor processes and all FIRST programs, and around 500 Ford To help provide this access, Ford Fund • Ford Fund Smart Mobility Challenge
improve safety, quality, delivery and cost. employees volunteered as mentors to supports initiatives that empower young (UK): Based on the Ford C3 model, Ford
more than 60,000 students people to take control of their future, work Fund and the Ford of Europe Mobility Team
After a $35 million renovation, the UAW-
• We work with Primary Engineer, to improve people’s lives and drive social challenged students at Loughborough
Ford Technical Training Center reopened in
a nonprofit that runs engineering- mobility by making connections between University to devise realistic, sustainable
2019 with a revamped curriculum. As well
based courses for school children in what is learned in the classroom and its and affordable urban mobility solutions.
as traditional skills like electrical wiring,
the U.K. Ford supports the Structures application in the real world. Three winning teams shared $25,000 in
pipefitting and welding, the center now
and Mechanisms program with Basic funding to develop their ideas
offers courses in Advanced Manufacturing • Ford Driving Dreams (FDD): FDD, a
Engineering, with a focus on emerging Electrics, encouraging children to build a signature education initiative of Ford • HERImpact D.C.: Ford Fund and 1863
skills like drone piloting, 3D printing, model vehicle from scratch. Every school Fund, has been providing scholarship Ventures launched HERImpact D.C. in
robotics and networking technology. is matched with a Ford engineer to bring awards, contests and pep rallies November 2018 to increase funding and
a real-world context to the sessions. To to inspire multicultural youth and resources for female entrepreneurs in
In addition, university research programs date, 44 Ford volunteers have engaged celebrate the benefits of staying in the D.C. region. Participants are invited
can be leveraged and directed toward 60 schools and more than 2,700 children school, achieving academic success and to a series of events aimed at building
the anticipated needs of our business
• To boost female representation in social entrepreneurship skills. In 2019,
and introduce us to top academics for
the tech industry, we support Girls Ford Next Generation Learning Hits we expanded to more locations and
potential employment.
Who Code, a nonprofit that equips the U.K. launched a business plan competition
young women with the skills to pursue Ford Next Generation Learning (NGL) with $50,000 in prizes and investments
INVESTING IN THE NEXT opportunities in computing. Across reaches more than 300,000 students • Ford First Gen @ Spelman College: This
GENERATION the United States, sessions combine each year, transforming high-school first-of-its-kind Ford Fund program is
As the world evolves, we’re working with robotics, web design and mobile education in 40 communities across designed to improve college completion
high schools, colleges and universities, development with mentorship from the United States. In 2019, elements rates among first-generation students.
preparing students of all ages to meet engineers at our Ford Research and of the model were introduced into the The program provides students a range
the challenges ahead. Innovation Center in Palo Alto, California school curriculum in the North East of personal and professional services to
of England. The Ford NGL “roadmap” help them succeed during their four years
Our Support for STEAM Programs • The High School Science Technology
connects communities, businesses in college. Pairing first-year students with
We encourage young people to consider Program (HSSTP) offers high school
and educators to blend classroom juniors as peer mentors, this is the latest
a career in industry by studying STEAM students hands-on experiences to
learning with essential workplace skills in Ford Fund’s long-standing commitment
(science, technology, engineering, arts and increase their awareness about technical
and real-world experience. to supporting students at historically
math) subjects. This investment in STEAM careers and demonstrate the importance
black colleges and universities
22 Ford Sustainability Report 2019/20 STRATEGY AND GOVERNANCE PUTTING PEOPLE FIRST PROTECTING OUR PLANET CREATING TOMORROW, TOGETHER

RESPECTING Our commitment requires a robust


approach to safeguarding against
suppliers. We review these issues annually
and communicate our progress externally
HUMAN RIGHTS
EVERY BUSINESS
human rights abuses in our supply chain. through the pages of this report, as well as
MUST PUT
This includes: our UNGPRF Index.
PEOPLE FIRST AND
We work to identify and prioritize the • Analyzing the human rights risks Human Rights Action Plans STRIVE TO BECOME
issues with the most impact on the associated with our supply base In 2019, a cross-functional team developed
thousands of people touched by our TRULY RESPONSIBLE, REGENERATIVE
a process to manage and track our action
business. At all times, we strive to • Conducting training to build our AND RESILIENT. THAT’S WHY WE’RE
plans to prevent, manage and remediate
comply with local laws and our own suppliers’ capability USING OUR LATEST HUMAN RIGHTS
salient human rights issues. This process
commitment to respecting human rights. will help us track the effectiveness of our SALIENCY ASSESSMENT TO HELP US
• Auditing our Tier 1 suppliers in high-
Our commitment is embodied in our priority locations due diligence systems and performance, PRIORITIZE WHERE TO DIRECT OUR
Policy Letter 24: Code of Human Rights, and indicate opportunities to focus our RESOURCES, AND DEVELOP ACTION
• Collaborating with others in multi- efforts to address human rights issues,
Basic Working Conditions and Corporate PLANS TO MONITOR, ADDRESS AND
stakeholder initiatives and partnerships including those that affect how we source
Responsibility (referred to as Policy INCREASE ENGAGEMENT ON
Letter 24). This is based on internationally See our performance data for further detail materials responsibly. This report details
actions we are taking to address these THESE ISSUES.”
recognized labor standards, including
the UN Guiding Principles on Business salient human rights issues indicated by
IDENTIFYING OUR SALIENT this symbol: .
MARY WROTEN, DIRECTOR, GLOBAL
and Human Rights, the Organisation for
Economic Co-operation and Development
HUMAN RIGHTS ISSUES SUSTAINABILITY, SUSTAINABILITY,
Please see the UNGPRF Index for further ENVIRONMENT & SAFETY ENGINEERING
(OECD), the Universal Declaration of We prioritize human rights issues at
details of our current and planned actions
Human Rights and the International Ford and in our supply chain using a
Labour Organization core labor standards. formal saliency assessment process.
Conducted in line with the UN Guiding
Ford is a signatory of the UN Global Principles Reporting Framework OUR SALIENT HUMAN RIGHTS ISSUES ISSUE UN SDGs**
Compact, a framework of 10 universally (UNGPRF), our 2020 saliency
accepted principles covering human 1 Access to water
assessment identified and updated the and sanitation
rights, labor, environment and anti- human rights issues at risk of the most
corruption, and we actively participate in severe negative impacts through our 2 Air quality
the UNGC’s Supply Chain Sustainability activities and business relationships. 1
Advisory Committee. We incorporate
Having conducted the first saliency 10 2 3 Child labor
these principles into our policies and
procedures. See our UNGC Index for assessment in the auto industry in 2018,
further information. our second assessment built on this 4 Climate
foundation. It was conducted with a third- change
We have conducted around 50 human party consultancy and we considered 9 3
rights assessments since 2004, evaluating MOST SALIENT
geographic, social, economic, diversity,
how our global facilities, including joint HUMAN RIGHTS 5 Data protection,
community and supplier-related issues. privacy and security
ventures, align with Policy Letter 24. Ford The process included desk-based research, ISSUES FOR FORD*
began to pilot a new, more quantitative interviews, an online survey and workshops 6 Forced labor
process for assessing human rights risks 8 4
with external stakeholders, including and ethical
across global facilities in a consistent investors, industry experts and suppliers, recruitment
way, in line with industry best practices. along with Ford employees representing all
An overview of recent assessments is 7 Harassment
skill teams and global regions.
available for download. 7 5 and discrimination
The assessment identified 10 salient
Due to global plant closures from 6 8 Health, safety
human rights issues (see graphic). These
COVID-19, the complete summary from and security
apply throughout our business and our
assessed facilities will be delayed and supply chain, including raw material 9 Human trafficking
published in due course. sourcing, and extend to our partners and
* In alphabetical order. 10 Product safety

** Other SDGs might apply; for full detail on our contribution, and quality
see our SDGs Index.
23 Ford Sustainability Report 2019/20 STRATEGY AND GOVERNANCE PUTTING PEOPLE FIRST PROTECTING OUR PLANET CREATING TOMORROW, TOGETHER

RESPECTING HUMAN RIGHTS Our Safety Record


WITHIN FORD Any loss of life or serious injury in the
I AM FORTUNATE TO WORK FOR A COMPANY WHOSE STRATEGIC
workplace is unacceptable and deeply
Our commitment to human rights starts SAFETY MEASURES REFLECT THE HEALTH AND WELL-BEING OF
regretted. We did not have any fatal
with our employees, in line with our BOTH ITS EMPLOYEES AND THEIR FAMILIES. THIS ALLOWS ME TO WORK incidents in 2019 to report. This is a
values of Doing the Right Thing and MORE EFFECTIVELY AND REMINDS ME THAT WHEN I RETURN HOME TO significant achievement for us because
Putting People First. We are taking unfortunately, we have experienced
MY FAMILY, I CAN KEEP THEM HEALTHY AND SAFE.”
actions and establishing best practices fatalities in previous years. Another key
to respect human rights throughout our KEVIN BREWER, MILL OPERATOR, TROY DESIGN AND MANUFACTURING safety indicator, our lost-time case rate
business. We do not tolerate harassment (UAW REPRESENTATIVE) (LTCR), decreased from 0.41 to 0.39 in 2019.
and discrimination, and we follow
ethical recruitment practices. Read Forced Labor, Child Labor and
more about how we’re creating a winning Human Trafficking
In addition to the policies and procedures external benchmarking. We hold regular
culture on page 16. Identifying them as salient human rights
through which we protect our employees, talks and events on key safety issues,
issues, we do not tolerate forced labor,
we safeguard against the threat of forced including reporting all injuries, hazards
child labor or human trafficking in our
labor, child labor and human trafficking and near-misses, so we can take action to
Our Human Rights Principles operations. We safeguard against the threat
among our suppliers and business partners. prevent recurrences. We also participate in
of these human rights violations in our
• We respect employees’ right to We have an International Framework multi-industry groups, within and outside
business and supply chain by maintaining
freedom of association and to Agreement (IFA) with the International the automotive sector, to share safety
compliance with all legislative initiatives,
collectively bargain Metalworkers’ Federation that reiterates best practices and collaborate to address
acts and regulations designed to increase
our commitments to our global labor common issues.
• We do not tolerate harassment or transparency and promote due diligence.
community. The principles outlined in These currently include the California
unfair discrimination Around the world, the many campaigns,
the IFA are based on highly respected Transparency in Supply Chains Act of 2010,
initiatives and promotions we undertook in
• We will not use forced/compulsory or labor standards supported by groups, the U.K. Modern Slavery Act of 2015 and the
2019 to promote occupational health and
child labor institutions and documents, such as the Australia Modern Slavery Act of 2018.
safety included:
UN Universal Declaration of Human Rights
• We provide compensation and and the Global Sullivan Principles of • Come Home Safe campaign in Europe: C
 hild labor, forced labor and human
benefits as well as work and vacation Social Responsibility. To support Ford’s safety culture in Turkey, trafficking are salient human rights issues
hours that are competitive and families and children of employees for Ford.
comply with applicable laws We ensure ongoing compliance with these
participated in a safety and safe work
principles through open dialogue with For further information, download our
• We will provide a safe and healthy practices workshop. The children recorded
our union partners and an annual Global Global Modern Slavery and Human
working environment that meets or messages wearing personal protective
Information Sharing Forum, attended by Trafficking Disclosure Statement
exceeds applicable standards for equipment and created artwork to
union leaders and senior leaders at Ford.
health and safety remind their parents of the importance of

7 YEARS
Where compliance issues are identified,
everyone’s safety at work and beyond
• We promote and support appropriate we collaborate on solutions to critical
education, training and development issues as they arise. • Drills for National Safety Month in
China: In June 2019, leadership and WITHOUT A SAFETY INCIDENT AT OUR
• We respect the natural environment Health and Safety
employees from all Ford China plants HERMOSILLO STAMPING AND ASSEMBLY
and want to help preserve it for Nothing is more important than the health,
participated in various drills and activities PLANT IN MEXICO
future generations by working to safety and well-being of our people.
to raise employees’ safety awareness
provide environmental solutions and Health, safety and security remains
and skills, reduce unsafe behavior and LOST-TIME CASE RATE (LTCR)
avoid waste a salient human rights issue and a key
enhance Ford’s strong safety culture Cases per 200,000 hours worked
strategic priority at Ford, and we work hard
• We will be honest, open and to achieve world-class levels of safety • Partnership with the Michigan 0.41
transparent and model the highest year-over-year, through the application of Occupational Safety and Health
standards of corporate integrity policies and best practices. Administration (MIOSHA) in Detroit: 0.39
0.38
Ford partnered with MIOSHA to protect
• We encourage business partners and H
 ealth, safety and security is a salient
workers restoring the Michigan Central
suppliers to adopt and enforce similar human rights issue for Ford.
Station building in Corktown, Detroit,
policies to those outlined in the
We maintain a robust safety culture to selected as the venue to kick off MIOSHA’s
above principles
reduce workplace injuries, supported by National Safety Stand-Down Week in May
effective communication, reporting and 2019, focusing on fall prevention 2017 2018 2019
24 Ford Sustainability Report 2019/20 STRATEGY AND GOVERNANCE PUTTING PEOPLE FIRST PROTECTING OUR PLANET CREATING TOMORROW, TOGETHER

• Imposing financial burdens on workers responsibly. We participate in workgroups


by withholding wages or expenses, or and discussions to address ethical, Transparent Reporting on
charging them for any fees involved in environmental and labor issues, and use Modern Slavery
the recruitment process. Suppliers are tools to ensure the responsible sourcing In 2019, Ford participated in the
required to repay any fees that workers of specific raw materials as early in the GRI–RLI Task Force on Reporting
pay during the recruitment process sourcing process as possible. on Modern Slavery. The task force,
Read more about attraction and Disclosing and Reporting on composed of 14 cross-industry
recruitment, and our efforts to combat Conflict Minerals organizations, produced a toolkit to
unconscious bias Ford continues to maintain its leadership encourage increased reporting on
position in addressing the human rights modern slavery. The toolkit provides
guidance for downstream companies
RESPONSIBLE SOURCING issues associated with conflict minerals.
on due diligence and
Our Conflict Minerals Report maintained
OF RAW MATERIALS reporting requirements
its place in the top five companies across
Our complex supply chain comprises all industries in the Mining the Disclosures related to modern
around 1,200 Tier 1 production suppliers. 2019 report, published by the Responsible slavery across the
Robots Take the Strain We monitor them to ensure the 1,000 Sourcing Network, and was once again the supply chain.
different materials we use are safe, clear leader among automakers.
Six collaborative robots (“cobots”) responsibly sourced and do not
now work alongside engineers in contribute to conflict. Ford chairs the Automotive Industry
Cologne, Germany, to ensure every Ford Action Group (AIAG) Smelter Engagement
Fiesta has a perfect finish. The cobots Team (SET) on behalf of the North Reporting Progress
complete a choreographed sequence OUR GOAL American automotive industry to lead and Suppliers are required to submit an annual
to sand the entire body surface in just complete coordinated outreach directly Conflict Minerals Reporting Template to
We aspire to responsibly
35 seconds, with the same precision to smelters and refiners to engage in us. For five consecutive years, 100 percent
source all raw materials
and dexterity as a human hand. The independent audit programs. We also of in-scope suppliers have responded.
used within our
initiative allows operators to use their vehicles globally. lead the Responsible Minerals Initiative We plan to continue our conflict minerals
time on more complex tasks and avoid (RMI) SET for global gold refiner outreach journey by maintaining a 100 percent
suffering the strains associated with and engagement. response rate from in-scope suppliers for
performing repetitive tasks. We never knowingly procure materials
Conflict minerals include gold, as well as annual reporting; encouraging smelters
that contribute to child and forced
Watch a short video about cobots columbite-tantalite (coltan), cassiterite to be audited by independent validation
labor, bribery and corruption, conflict
and wolframite or their derivatives, programs such as the Responsible
or environmental concerns. We commit
tantalum, tin and tungsten (known as Minerals Assurance Process (RMAP); and
to complying with local laws, reporting
Ethical Recruiting “3TG”), which are used in many auto increasing the percentage of suppliers
customer terms and conditions, and
Our policies and procedures for our components. We require all of our providing smelter lists and using RMAP-
respecting indigenous populations’ rights
business, including our suppliers, are suppliers whose components contain 3TG conformant smelters.
to water and land. To address our salient
aligned with the fundamental principles human rights issues related to sourcing to conduct due diligence to understand In 2020, we plan to voluntarily submit
of ethical recruitment, one of our salient raw materials, we collaborate with the origins of these minerals, source them information on our conflict minerals
human rights issues. stakeholders to identify risks, share best responsibly and not knowingly provide due diligence through an online portal
practices, agree on remedial actions, and minerals that may contribute to conflict. in accordance with the European
Our policies prohibit Ford employees and
our suppliers from: monitor and report any action taken. We continue to encourage suppliers Commission conflict minerals regulation
to use the Due Diligence Guidance and to become effective January 2021, and
• Destroying, concealing, confiscating To increase transparency and
associated framework compiled by the will continue filing conflict minerals due
or otherwise denying access by an responsibility in raw material sourcing,
Organisation for Economic Co-operation diligence information voluntarily to the
employee to the employee’s identity we have developed and are actively
and Development (OECD) to assess the European portal annually.
or immigration documents, such as implementing a raw material sourcing
strategy that expands our material chain of custody of these minerals. Read our most recent Conflict Minerals
passports or driver’s licenses, regardless
of the issuing authority due diligence program beyond conflict Learn more about our 2019 actions Disclosure filing and download our Conflict
minerals. With certain raw materials, and disclosures through our Conflict Minerals Policy for more information.
• Using misleading or fraudulent practices such as cobalt, mica, rubber and conflict Minerals Report, filed annually with
during the recruitment process minerals (see below), suppliers may the U.S. Securities and Exchange
be asked to verify that the materials Commission (SEC).
they supplied to us were sourced
25 Ford Sustainability Report 2019/20 STRATEGY AND GOVERNANCE PUTTING PEOPLE FIRST PROTECTING OUR PLANET CREATING TOMORROW, TOGETHER

To demonstrate our commitment to


Supplier Requirements SOURCING THE RAW MATERIALS NEEDED FOR BATTERY responsibly sourced copper, we have
partnered with The Copper Mark, a new
Our Global Terms and Conditions, TECHNOLOGY PRESENTS SOME COMPLEX CHALLENGES. WE
comprehensive social and environmental
and other supporting documents, WORK TIRELESSLY TO ADDRESS THE ETHICAL, ENVIRONMENTAL, HUMAN assurance program. We will work in
require suppliers and sub-contractors AND LABOR RIGHTS ISSUES THROUGHOUT THE SUPPLY CHAIN, AND cooperation with The Copper Mark,
to comply with the fundamental
STRIVE TO MAKE THE WHOLE PROCESS AS TRANSPARENT AS POSSIBLE.” encouraging copper producers to adapt
protections, including those listed
responsible operating practices and
below, for all workers. We ask EMMA KING, GLOBAL SUSPENSION AND NORTH AMERICA LEAD CHASSIS make significant contributions to the UN
our suppliers to extend the same DIRECTOR, PURCHASING Sustainable Development Goals.
expectations to their own suppliers.
• Forced labor and ethical recruiting Mica Platform for Sustainable Natural Rubber
• Child labor Mica is used predominantly in surface (GPSNR) to improve socioeconomic
coatings and contained in other vehicle and environmental performance in the
• Conflict minerals and responsible materials, such as in polymers for exterior supply chain. Members, including tire
sourcing of raw materials mirror housing and covers. We engage in manufacturers, rubber suppliers and
regular dialogue with key coating suppliers processors, vehicle manufacturers and
• Bribery and corruption
to monitor the responsible sourcing NGOs, seek to improve human rights
For environmental requirements for of mica. standards, prevent land-grabbing and
suppliers, see Minimizing Our Supply deforestation, protect biodiversity and
In 2020, we plan to explore enhanced
Chain Impact. water sources, improve yields and increase
mica due diligence, consistent with our
supply chain traceability.
own commitment to protecting human
rights and in adherence with local law. We One of the GPSNR’s priorities is to involve
Other Responsibly Sourced
participate in the RMI’s mica working group independent natural rubber growers in
Raw Materials
to explore cross-industry collaborations setting strategy and implementation
We seek to identify and prevent risks in
that can result in enhanced mica supply initiatives dedicated to improving Multi-Stakeholder Action on
our supply chain associated with raw
chain risk identification and mitigation. rubber sourcing. To date, more than 20 Responsible Sourcing
materials other than 3TG. To help our
We take our sustainability commitments smallholders from around the world have
suppliers source materials ethically We participate in several multi-
seriously and seek to address issues become members of GPSNR.
and responsibly, we use enhanced stakeholder groups focused on both
quickly if they occur.
requirements in contracts, reporting Copper conflict minerals and other materials.
requests and transparent dialogue. Rubber Copper is commonly found in various These activities include:
We’ve extended our responsible sourcing We promote the sustainable sourcing automotive components, including
• Chairing the Smelter Engagement
requirements beyond conflict minerals to of natural rubber through third-party radiators, wiring, circuitry and printed
Team and engaging in the
additional materials. research and multi-stakeholder circuit boards.
Responsible Materials Work Group
initiatives. We co-founded the Global
Cobalt of the Automotive Industry Action
An electric car battery contains up to Group (AIAG)
20 pounds of cobalt, largely sourced from
REPORTED SMELTER CONFORMANCE RATES AS OF DECEMBER 31, 2019 • Serving on the Projects and
the Democratic Republic of the Congo
(by mineral) Resources Work Group of the Public-
(DRC) , and demand is rising in line with
Private Alliance for Responsible
the growth of electrified vehicles. Sourcing
3 Minerals Trade (PPA)
the minerals needed without contributing 9
(6%)
to forced and child labor is a significant (16%) 50
(32%)
• Leading the Global Gold Smelter
challenge that we can only solve through Engagement Team and participating
collaboration with miners, smelters TIN TUNGSTEN TANTALUM GOLD in several workgroups with the
and refiners. Responsible Minerals Initiative (RMI)
We continue to explore supply chain • Participating in the automotive
48 47 39 106
mapping to gain greater transparency (84%) (94%) (100%) (68%) original equipment manufacturer
about the sources of the cobalt we use for (OEM) and capacity building
our battery electric vehicles (BEVs). workgroups of the Global Platform for
Conformant/active Not participating Sustainable Natural Rubber (GPSNR)
26 Ford Sustainability Report 2019/20 STRATEGY AND GOVERNANCE PUTTING PEOPLE FIRST PROTECTING OUR PLANET CREATING TOMORROW, TOGETHER

BUILDING CAPABILITY IN OUR Auditing Our Suppliers TOTAL NON-CONFORMANCES 2019


2019 Training Performance Third-party social responsibility audits let
SUPPLY CHAIN Ethics: 7%
AIAG e-learning module: suppliers know whether they meet their
Preserving human rights is a key legal requirements and our expectations,
Environment: 10%
874 participants (26% Ford suppliers)
component of our model for human while highlighting areas for improvement.
Labor: 32%

progress. Our work to address our salient Supplier training: We have held 1,186 supplier audits and 1,612
human rights issues extends throughout 96 direct and indirect supplier sites in follow-up assessments worldwide to date.
our entire supply chain. Training is five countries (Brazil, Malaysia, Poland, Management
essential to help our suppliers build their South Africa and Taiwan) Systems:
25%
capacity to manage human rights issues Health and Safety:
26%
and working conditions in their facilities.
Through the Responsible Business
Given the size and complexity of our Alliance (RBA), we work on issues such as were conducted, 100 percent of which
Ford suppliers are invited to complete
supply chain, we focus on suppliers in human rights, working conditions, child were externally validated and certified by
Drive Sustainability’s Self-Assessment
locations that pose the highest risk for labor, forced labor, ethical sourcing and the RBA.
Questionnaire (SAQ). The SAQ assesses
substandard working conditions. To environmental responsibility. We currently
social and environmental sustainability Audit Findings
identify these locations, we conduct an serve on the RBA’s Board of Directors
performance, business conduct and In our 2019 RBA audits, approximately
annual risk analysis, incorporating internal and actively participate in a number of
compliance, and supplier management, 6 percent of identified non-conformances
data and input from external experts and workgroups. We use its Validated Audit
and allows responses to be shared with required immediate action, of which
stakeholders. Our list of 22 high-priority Protocol to assess labor, health and
customers. For the third consecutive year, 55 percent are labor issues (primarily
countries remained unchanged in 2020. safety, management systems, ethics and
we issued more than 500 supplier SAQs to working hours and consecutive days of
environmental issues. In 2019, 23 audits
Our robust approach to safeguarding our Tier 1 suppliers. The responses inform work), 43 percent are health and safety
against human rights abuses in our supply our risk assessment for prioritizing further issues related to emergency preparedness
chain includes: capacity building or due diligence. and 2 percent are related to ineffective
Reimbursing Recruitment Fees
management systems.
• Conducting training to build our During 2019, through our partnership with During 2019, we worked with a
suppliers’ capability the Responsible Labor Initiative (RLI), we supplier in Taiwan to reimburse All suppliers with priority non-
supported training and capacity building recruitment fees that were being conformances are offered RBA e-learning
• Auditing our Tier 1 suppliers in high- for our supply base in Taiwan, with a modules to support capability building. We
charged to migrant workers at the
priority locations particular focus on recruitment fees. help them develop corrective action plans
supplier’s site. Although fees are
• Participating in multi-stakeholder Attendees were given insights into the regulated by the government of and regularly monitor their progress.
initiatives and industry partnerships warning signs of forced labor and how Taiwan and can be legally charged
to play an active role in prevention and See our performance data for
to migrant workers, we requested
Training to Build Capability remediation. A total of 125 individuals more information about social
the supplier provide remediation
Our approach to training was developed representing 73 companies attended the responsibility audits
by reimbursing all recruitment
and launched through the AIAG, of one-day session conducted by RLI. and service fees associated Taking Corrective Action
which Ford is a member of the Board of with the workers’ employment For any non-conformances found, we
Directors. It involves an e-learning module, See our performance data for more
information about training sessions in accordance with our ethical expect suppliers to develop action
introducing the Automotive Industry recruiting expectations. Our team plans that detail causes and planned
Guiding Principles, and an assessment, Strengthening our ability to identify and worked with the supplier to identify remediation. For more serious priority non-
freely available to OEMs and their manage human rights issues with our policies and procedures to prevent conformances, we review and monitor
suppliers in seven languages. These are regional buyers, 70 Ford Purchasing and remediate fees in the future. immediate containment plans and longer-
supported by locally customized workshop employees in the Asia Pacific region were These policies were adopted by the term corrective action plans.
sessions, the information from which trained on our Policy Letter 24 and Supply supplier and implemented in other
participants must share with their own Chain Sustainability Program, taking the Although we reserve the right to end our
facilities, thereby spreading the
employees and suppliers. total trained or retrained to date to 4,811. relationship should any supplier fail to
effect of the corrective action beyond
comply with our Global Terms, we did
Most of our in-person supplier training Taiwan. Lessons learned resulted in
We also conducted Driving a Better not end any supplier relationships due to
is delivered through the AIAG or Drive a partnership with the RLI, to provide
Tomorrow learning sessions for more than unresolved audit findings in 2019.
Sustainability, an organization committed training and capacity building with
400 Purchasing employees, focusing on
to increasing sustainability and supply a focus on recruitment fees for our Please see the UNGPRF Index for
how they can support responsible sourcing
chain management efforts in the Taiwan suppliers. further details of our suppliers’ non-
and build trust in business relationships.
automotive industry. conformances and any current or planned
remedial actions.
27 Ford Sustainability Report 2019/20 STRATEGY AND GOVERNANCE PUTTING PEOPLE FIRST PROTECTING OUR PLANET CREATING TOMORROW, TOGETHER

SAFETY AND U.S. NEW CAR ASSESSMENT

QUALITY
NEW TECHNOLOGIES ARE CREATING EXCITING OPPORTUNITIES PROGRAM (NCAP)

10 Ford and
FOR GROWTH FOR SUPPLIERS THAT CAN GRASP THE CONCEPT OF
DIVERSITY AND INCLUSION. WE REMAIN COMMITTED TO SUPPORTING AND
Ford cares about customer safety.

3 Lincoln
PROMOTING OUR DIVERSE SUPPLIERS, WHILE EXPANDING THE ECONOMIC
Safety and quality of our vehicles is
IMPACT AND GROWTH IN THE COMMUNITY FOR A MORE SUSTAINABLE FUTURE.” a salient human rights issue and will
always be our highest priority.
TRAVIS SPENCER, HEAD OF SUPPLIER DIVERSITY AND INCLUSION
NAMEPLATES EARNED 5-STAR OVERALL
P
 roduct safety and quality is a salient
VEHICLE SCORES
human rights issue for Ford.
SUPPLIER DIVERSITY sectors that each purchase at least
$1 billion of goods annually from diverse We have systems in place to help EURO NCAP
We are committed to creating

5 models
suppliers. The BDR encourages corporate ensure that our vehicles meet or exceed
opportunities for diverse suppliers
entities to grow their supplier diversity performance and quality standards,
running minority-, women- and
programs and shares best practices as well as customer expectations,
veteran-owned businesses that foster
through the production of white papers. throughout their design, development EARNED 5-STAR OVERALL VEHICLE SCORES
innovation, drive profitability and
prioritize sustainability. and manufacture.
Further demonstrating our commitment,
we hold Board of Director seats with
Our nationally recognized Supplier Diversity
IMPROVING VEHICLE SAFETY

Top 5
several advocacy organizations for
and Inclusion (SDI) program facilitates
minorities and women. Our corporate safety policy outlines our
productive business partnerships with

$153BN
a diverse range of entrepreneurs and commitment to creating vehicles that
develops services for our customers by achieve the highest levels of safety in a
BOTH FORD AND LINCOLN RANKED IN THE
driving innovative best practices. It now range of real-world conditions. This helps
IN GOODS AND SERVICES SOURCED WITH TOP FIVE OF THE INITIAL QUALITY STUDY
includes certifications from the National us meet or exceed relevant laws and
MINORITY-, WOMEN- AND VETERAN- FOR THE FIRST TIME
LGBT Chambers of Commerce, Disability:IN, regulations, as well as customers’ needs
OWNED BUSINESSES TO DATE
the Small Business Administration and and expectations.
WEConnect International, emphasizing our
commitment to diversity and inclusion. 14 Our processes and systems confirm that
our vehicles align with stringent internal
Global Safety Ratings
Ford continues to receive high marks and
accolades in public and private crash-
In 2019, Ford purchased goods and OF OUR 108 STRATEGIC ALIGNED BUSINESS guidelines on safety design and Ford-
FRAMEWORK (ABF) SUPPLIERS ARE specified levels of performance for Public testing assessments. However, the full
services worth more than $15 billion,
MINORITY-, VETERAN- AND WOMEN-OWNED Domain tests (see below). We regularly range of global, regional and national
as follows:
re-evaluate and update these guidelines, programs that rate and publish vehicle
• $8.49 billion from minority- ensuring continuous improvement. To safety ratings vary considerably. They
Widening the Inclusion Network are conducted by a range of consumer
owned suppliers achieve high levels of safety performance,
To amplify the impact of our spend advocacy groups, auto clubs, motoring
we conduct engineering analyses,
• $1.53 billion from women- with diverse businesses, Ford’s Tier 1 magazines and insurance-sponsored
computer simulations and component,
owned businesses suppliers are encouraged to establish organizations, each with its own testing
sub-system and full-vehicle crash tests
their own supplier diversity programs, protocols and evaluation criteria.
• $0.179 billion from veteran- at several sites in the United States and
with guidance on percentage spend
owned companies Europe, including crash-test facilities, the
with minority-, women- and veteran-
VIRTTEX (Virtual Test Track Experiment)
• $5.22 billion from small businesses owned businesses, as well as other
and the Research and Innovation Center in
small businesses and disabled- or
Promoting a Diverse Supply Chain Dearborn, Michigan.
LGBTQ-owned organizations.
As well as buying from diverse suppliers,
we work with business leaders, Ford has launched an enhanced Tier
community organizations and trade 2 supplier program, the Tier 2 WIN WE BUILD OUR VEHICLES AND DEVELOP OUR SERVICES TO DRIVE
associations that represent the interests (Widening the Inclusion Network). HUMAN PROGRESS AND PROTECT OUR CUSTOMERS, WHILE
of diverse businesses. It further extends the impact of these DELIVERING THE QUALITY, SAFETY, RELIABILITY AND DRIVING EXPERIENCE
programs through coaching and THEY EXPECT.”
We are members of the Billion Dollar
mentorship, as well as connecting our
Roundtable (BDR), a group of 29
key suppliers with diverse businesses. KIMBERLY HARRIS, GLOBAL QUALITY BUSINESS MANAGER
corporate members across 10 industry
28 Ford Sustainability Report 2019/20 STRATEGY AND GOVERNANCE PUTTING PEOPLE FIRST PROTECTING OUR PLANET CREATING TOMORROW, TOGETHER

WORKING IN A COMPANY THAT IS SO COMMITTED TO THE


SAFETY OF ITS CUSTOMERS, AS WELL AS THE ENVIRONMENTAL
SUSTAINABILITY OF ITS OPERATIONS AND PRODUCTS, FOSTERS A SPIRIT
OF TRUE INNOVATION. CONSTANTLY SEARCHING FOR NEW SOLUTIONS
HAS BECOME AN EVERYDAY PASSION.”

ADRIAN DIAZ, ASSOCIATE DIRECTOR, AUTOMOTIVE SAFETY OFFICE

• Data Analytics and Machine Learning: DRIVER ASSIST


We are increasing our use of advanced TECHNOLOGIES
data analytics and machine learning
to help with the earlier detection Having set the benchmark with factory-
of potential issues across our installed safety belts six decades ago,
vehicle portfolio we continue to develop new, innovative
driver assist technologies that enhance
Because these New Car Assessment • Vehicle Dependability Study: Ford’s • Traceability: New tools will enable us vehicle safety.
Programs (NCAPs) vary so much and results have improved every year for to trace parts and subsystems more
are continually updated, it is increasingly the past four years. In the 2019 study precisely to vehicle-specific builds when A World of Driver Assist Options
difficult to achieve top ratings across all of three-year-old vehicles, the 2016 an issue arises, rather than issuing wider Ford and Lincoln Co-Pilot360™
regions. Nonetheless, we are proud that Ford Expedition was recognized for recalls targeting a date range of vehicle technologies help customers drive safely
so many of our vehicles have received its reliability identification numbers, which generally and confidently, alerting them to potential
5-star ratings. involve broad vehicle populations that collisions and making routine tasks
• Automotive Performance, Execution easier. These features, available around
may not all be affected
Our safety assessment report, A Matter and Layout (APEAL) study: Ford’s APEAL the world, use a combination of radar,
of Trust, details the steps we are taking score has improved every year since • Improving Investigation Processes: sonar and cameras to sense and interpret
to ensure our next generation of smart, 2014. Five 2019 Ford Motor Company We continue to improve investigation the environment.
self-driving vehicles are safe for drivers, models (Ford Ranger, Ford Super Duty, tracking and dealer engagement
passengers, other road users and Ford Expedition, Ford F-150 and Lincoln processes. Using an integrated data In the United States, the Ford and Lincoln
pedestrians. Read more on page 49. Navigator) won awards in their category management system, we will soon be Co-Pilot360™ base package contains five
able to monitor all stages of a quality standard technology features: Blind Spot
• Initial Quality Study (IQS): Since IQS was Information System (BLIS®) with Cross-
PRODUCT QUALITY redesigned in 2013, Ford has improved by
investigation, which will lead to faster
Traffic Alert Lane-Keeping System, Pre-
decisions, improved parts availability and
We use internal and external more than 36 percent. In 2019, Ford was Collision Assist with Automatic Emergency
global sharing of best practice solutions
measurements of quality and brand one of five U.S. brands performing above Braking, Auto High-Beam Headlamps and
promotions to assess our performance the industry average. With Ford ranked Rear-View Camera. This package is now
and decide where we can make fourth (2018: fifth) and Lincoln fifth (2018: PASSENGER VEHICLE RECALLS available on at least 15 of our 2020 model
improvements. seventh), this was the first time both (UNITED STATES)3 year vehicles.
brands have made the top five (Million)
Providing high-quality products improves
the customer ownership experience. We See our product quality data in our 7.1
use warranty repairs per 1,000 vehicles Data Appendix.
at three months in service as a key metric
Since vehicle quality and customer safety 5.94
to measure initial quality, going beyond
remain top priorities at Ford as a salient
warrantable defects to include measures
human rights issue, we are investing
of customer excitement with new product
additional time and attention to continue
features. Our established metrics measure
improving in these areas. Accordingly,
Quality Promoter Loss and Product Likes
we are revamping our processes and
and Dislikes on a per 1,000 vehicle basis.
leveraging cutting-edge technologies to 2018 2019
We also subscribe to three annual studies ensure quality, customer satisfaction and
by J.D. Power and Associates: recall actions have more visibility and
support at all levels of the company. 3 Includes TAKATA Airbag and DPS6 transmission-related recalls.
29 Ford Sustainability Report 2019/20 STRATEGY AND GOVERNANCE PUTTING PEOPLE FIRST PROTECTING OUR PLANET CREATING TOMORROW, TOGETHER

The Next Level


Other Driver Assist Technology Our 2021 model year Ford Mustang Mach-E Combatting Heatstroke
Pro Trailer Back-up AssistTM (2020 model year Expedition, F-150 and Super Duty) and F-150 will be the first Ford vehicles in Vehicles
After entering a few measurements, the camera tracks the trailer’s position and turns to come with the Ford Co-Pilot360™ 2.0 In the United States, on average, a child
the trailer in the same direction as a driver-activated dial. package. This adds extra features, on top dies from vehicular heatstroke every
of those offered on the Ford Co-Pilot360™ nine days (KidsAndCars.org). At Ford,
Hill Descent ControlTM (2020 model year Explorer and Expedition) base package, as standard: development is underway to design a
This system continually adjusts braking pressure to help control slippage and
• Reverse Sensing System assists drivers Rear Occupant Alert System that can
maintain a constant preset speed while going down a steep gradient.
when parking by sounding a tone when provide warnings via our SYNC system.
Trail ControlTM (FX4 Off-Road Package for Ranger, F150 Raptor and Super Duty) the vehicle gets close to surrounding Encompassing all the elements
The driver-activated system helps the vehicle cope with rough terrain by managing vehicles and other objects outlined in the Voluntary Agreement
throttle and braking on each wheel while maintaining a constant speed of up to published in September 2019 from the
20 mph. • Reverse Brake Assist alerts the driver Alliance of Automobile Manufacturers
to stationary objects and pedestrians (Auto Alliance) and the Association of
Learn more about our driver assist technology at Ford.com behind the vehicle, and can bring it to a Global Automakers, the feature will be
complete stop if the driver doesn’t react deployed globally well ahead of the
Other Research Partnerships in time mandatory 2025 model year deadline.
Occupant Protection • Working with industry partners to evaluate the repeatability, reproducibility and • Post-Collision Braking helps reduce the Greater understanding about
and Crashworthiness durability of new anthropomorphic test devices (“crash test dummies”) so that they impact of a potential secondary collision the dangers of leaving a young
more closely simulate the responses of human occupants by automatically applying moderate child unattended in a vehicle is
• Analyzing occupant injuries from far-side crashes with USCAR brake pressure after an initial crash also imperative, which is why we
• Evaluating the safety performance of lithium-ion batteries with Sandia National
A new hands-free driving feature to are funding a campaign by the
Laboratories and the National Renewable Energy Laboratory
help make driving less stressful will be Alliance of Automotive Innovation
• Assessing the internal damage that a battery cell can sustain without shorting with
Wayne State University available on the new Mustang Mach-E and to raise awareness of pediatric
eventually on other models. vehicular heatstroke.
• Researching the potential of nano-liquid foam technology in both restraints and
structural applications with Michigan State University
Read about our Safety Insights
• Evaluating the material properties of 3D metal lattices and using computer-aided comes with a call-for-help system.
analytics tool
engineering for modeling crash-loading with the Royal Melbourne Institute of Technology SYNC 911 Assist (Emergency Assistance
Technical Challenges of • Founding member of the American Center for Mobility, using its state-of-the-art facility Occupant Protection outside the United States) can make an
Self-Driving Vehicles for developing and validating test methods for self-driving vehicles Precompetitive Partnerships emergency call using a paired cell phone
• Leadership Circle member of MCity, partnering with the faculty of the University To enhance the safety of vehicle after a crash in which an airbag is deployed
of Michigan occupants, we work alongside General or the fuel pump shut off. As well as
• Member of Partners for Automated Vehicle Education (PAVE) Motors and Fiat Chrysler through the U.S. providing the operator with a GPS location,
• Working with Virginia Tech to assess positional issues for potential restraints and seating Council for Automotive Research (USCAR), the system relays data on impact velocity,
configurations in self-driving vehicles and collaborate with other manufacturers crash type, safety belt use and airbag
• Participating in the Crashworthiness Task Force Committee of the Society of Automotive through the Auto Alliance, the European deployment, helping emergency services
Engineers Automated Driving Systems (ADS) Automobile Manufacturers Association respond appropriately.
(ACEA), the Society of Automotive
Vehicle-to-Vehicle • Working with other automotive OEMs and the Federal Highway Administration on Most of our vehicles carry the SOS–
Engineers (SAE) and the International
(V2V) Safety vehicle-to-infrastructure (V2I) safety, mobility and sustainability applications, alongside Post Crash Alert System™, which alerts
Communication the SAE on message standards, and with owners and operators of road infrastructure to Organization for Standardization (ISO). We
passersby and first responders to a
Systems facilitate developments often publish the results in peer-reviewed
vehicle’s location. In the event of airbag
journals and scientific publications.
Cybersecurity • Instrumental in developing global standards including co-chairing work on the upcoming or safety belt pre-tensioner activation,
ISO 21434 standard, participation on past best practices in conjunction with the
Post-Crash Response it automatically starts the hazard lights,
Information Sharing and Analysis Center (Auto-ISAC) and proactively assessing the
impact of cybersecurity on new areas such as data privacy, advanced driver-assistance In-vehicle technology that helps occupants unlocks the doors and sounds the horn
systems and self-driving vehicles to call for assistance after an accident can (non-European vehicles only).
• Continuing to work with the Department of Homeland Security on pre-competitive give first responders potentially life-saving
In parallel to a mandatory EU regulation on
research through the Automotive Cybersecurity Industry Consortium (ACIC) information, quickly and efficiently.
Automated Emergency Calling Systems
Driver Distraction • Partnering with universities and organizations such as the Auto Alliance, we are Our SYNC® in-car connectivity, which for new vehicles in 2018, a UN regulation
researching driver distraction and analyzing data from large-scale naturalistic enables drivers to use cell phones and to harmonize all in-vehicle systems on a
driving studies global scale has also been adopted.
MP3 players through voice commands,
30 Ford Sustainability Report 2019/20 STRATEGY AND GOVERNANCE PUTTING PEOPLE FIRST PROTECTING OUR PLANET CREATING TOMORROW, TOGETHER

STRENGTHENING FREC Comes to Thailand


COMMUNITIES
IT IS REWARDING
TO KNOW THAT,
The Ford Resource and Engagement protects Thailand’s natural habitats

AND MAKING LIVES


Center (FREC) Bangkok is the latest
THROUGH MY WORK AT • Urban Studies Lab runs research and
addition to our $15 million network of

BETTER
FORD, I HELP TO projects to give communities a voice in
community centers around the world.
EMPOWER COMMUNITIES, DELIVER urban planning decisions
Opened in October 2019 in the historic
MUCH-NEEDED SUPPORT IN TIMES OF • Precious Plastic Bangkok turns plastic
More than just an employer, we’re also Nang Loeng neighborhood, FREC
a neighbor to thousands of people NEED, AND PROVIDE RESOURCES TO waste into new products
Bangkok serves as a hub for some of
around the world – and good neighbors FOSTER THE DREAMS OF YOUNG Thailand’s most innovative nonprofits, • FabCafé runs a high-tech workshop in a
step up when their communities need HISPANICS IN THE U.S. AND LATIN social enterprises and foundations: community space
them most. That’s what drives our AMERICA. I AM PROUD TO CONTINUE
commitment to making a positive • Scholars of Sustenance distributes • Creative Migration (East) advances
HENRY FORD’S LEGACY OF CREATING
impact on society and strengthening the surplus food to communities in need cultural diplomacy through art, public
AN INNOVATED, SUSTAINABLE
communities in which we operate. engagement and sustainability
BUSINESS, WHILE STRENGTHENING • Love Wildlife teaches young people the
Ford Fund: Coordinating Our Efforts importance of wildlife • Na Café offers vocational programs for
COMMUNITIES AND HELPING IMPROVE
As the company’s philanthropic arm, Ford young people, supports refugees, runs
PEOPLE’S LIVES.” • The Bird Conservation Society of
Motor Company Fund (“Ford Fund”) aims soup kitchens, and promotes zero-
Thailand trains bird enthusiasts and
to strengthen communities and help make JOE ÁVILA, MANAGER, U. S. AND LATIN waste food and beverages
people’s lives better. AMERICA, FORD FUND
Investing In and Around Detroit local, national and global partnerships, we
For more than 70 years, Ford Fund has been
Since our company was founded in Detroit were able to provide educational resources,
driving human progress by providing access • Promote safe driving: Providing teens in 1903, we have been investing in and promote safe driving and smart mobility
to opportunities and resources that help and newly licensed drivers with training around our hometown. Ford Fund has initiatives, and support programs that
people reach their full potential. Working beyond what they learn in standard driver invested more than $175 million in local enriched community life in more than 50
with dealers and nonprofit partners in education programs education, arts, cultural, diversity, hunger countries in 2019.
more than 50 countries, Ford Fund helps
• Encourage employee volunteering: relief and social service organizations
advance our vision of becoming the world’s One of the ways we do this is through our
Creating opportunities for Ford throughout southeast Michigan.
most trusted company by investing in Ford Resource and Engagement Centers
programs that: employees to give back through the Ford In addition to transforming the long- (FRECs) – a Ford Fund innovation that
Volunteer Corps and other programs abandoned Michigan Central Station into brings nonprofit partners together in a
• Enrich community life: Developing
• Support education: Advancing essential a new innovation hub, Ford is investing collaborative environment to support
programs that help feed the hungry,
skills development and job training, and $10 million over four years to support local communities. Each center reflects
remove socioeconomic barriers, provide
presenting opportunities for young people programs that benefit people living in the needs and culture of the community
disaster relief, support arts and cultural
to study science, technology, engineering, the development area. This initiative it serves, from basic needs such as food
initiatives, and celebrate the diversity that
arts and math (STEAM) subjects focuses on housing affordability, workforce and shelter to job training, mentoring and
strengthens communities
development, mobility solutions, park educational opportunities, or arts and
preservation, neighborhood safety and cultural initiatives.
COMMUNITY LIFE preserving Corktown’s culture. As part of
Ford Fund works with local and global The original FREC in southwest Detroit
Ford Fund: Coordinating Our this agreement, we awarded $250,000 in
partners on programs and services has assisted more than 100,000 local
Impact on Society grants to four nonprofit organizations to
that make people’s lives better. From residents, distributed more than 2.7 million
$62.2 million fund programs that celebrate the area’s
feeding the hungry and mentoring pounds of food and helped complete more
total charitable contributions in 2019 history and culture.
social entrepreneurs to supporting than 11,000 tax returns. In total, the facility
(Community life: $40.1 million; Building a Better World has returned $3 in services to the local
multicultural initiatives and rebuilding
Education: $13.3 million; Driver safety: Across the United States and around community for every $1 invested. Ford Fund
after a natural disaster, we connect
$8.8 million) the world, we’ve developed a grassroots has since opened additional community
at a grassroots level to strengthen
More than $2 billion communities and help people in need. framework – Operation Better World – centers on the east side of Detroit; in
invested to strengthen communities that brings local Ford teams, dealers and Pretoria, South Africa; Craiova, Romania;
Watch a short video about Ford nonprofits together in a coordinated way to and Bangkok, Thailand (see above).
around the world to date
Driving Dreams better serve the community. Through these
31 Ford Sustainability Report 2019/20 STRATEGY AND GOVERNANCE PUTTING PEOPLE FIRST PROTECTING OUR PLANET CREATING TOMORROW, TOGETHER

PROMOTING SAFE DRIVING


Supporting the Journey to “Type
Ford Driving Skills for Life (DSFL) is a
None” Diabetes
global initiative that teaches teens and
Through our partnership with the other newly licensed drivers how to stay
Juvenile Diabetes Research Foundation safe behind the wheel.
(JDRF), we support its mission to
create a world without type 1 diabetes Through free safe-driving clinics
(T1D). The thousands of volunteers and instruction via its online training
in the Ford Global Action Team, “Academy,” Ford DSFL teaches skills
organized into fundraising teams necessary for safe driving beyond
across 40 sites, have raised $65 million what is learned in standard driver
since 1983, complementing JDRF’s education programs.
work to fund vital T1D research and
During hands-on driving clinics,
support people with the condition.
newly licensed drivers are paired with
Watch a short video about our work professional driving instructors to learn
with the JDRF about vehicle handling, hazard recognition,
speed, space management, distraction
and impairment. The curriculum also
Disaster Relief highlights the role that vehicle technology
Supporting nonprofit disaster relief can play in saving lives, and addresses
efforts is an essential part of our mission. issues surrounding the relationship
Every year, Ford Fund provides more between cyclists and drivers, the safe
than $1 million in grants to nationally use of electric scooters and the safety
recognized aid organizations – including protocols around ride-sharing services.
the American Red Cross Annual Disaster
Giving Program – in addition to donating Around the world, Ford DSFL training
SHE-MOVES: Driving Human Progress Through Social Enterprise vehicles, supporting employee donation is adapted to reflect cultural nuances,
and volunteer programs, and working with unique driving conditions, and local laws
Ford’s grant program SHE-MOVES (Strengthen Her: Mobilizing
dealers to support both immediate and and infrastructure in each country it
Ventures for Social Innovation) supports women-led social
long-term rebuilding efforts. is offered.
enterprises with women and mobility at the heart of their mission.
• SHE-MOVES funding helps Uhambo in South Africa to train parent In 2019, Ford Fund, as well as our EMPLOYEE VOLUNTEERING
“champions,” giving children with disabilities access to work, school and social employees and dealers, contributed to
FORD DSFL IN NUMBERS

40,000+
events, and offering caregivers relief from isolation relief efforts in response to the wildfires of
Australia, an earthquake in Puerto Rico and
• SHE-MOVES funding helps Shuttlers offer women commuters personal and a hurricane in the Bahamas. In Puerto Rico
professional development opportunities during their bus journeys into Lagos, Nigeria alone, Ford Fund has invested more than PARTICIPANTS IN 31 COUNTRIES IN 2019
• Zaclon India is helping more than 40 women to gain driving and commercial vehicle $1.5 million in aid and donated vehicles

1.25M+
licenses, enabling them to earn a living behind the wheel since Hurricane Maria struck in 2017.

BEFORE ESTABLISHING MY OWN STARTUP, I DIDN’T HAVE TIME


We also acted quickly to protect our
people, customers and communities during DRIVERS TRAINED IN 50 U.S. STATES AND
FOR PERSONAL AND CAREER DEVELOPMENT AND HAD TO TAKE
the coronavirus crisis. Read about our 46 COUNTRIES SINCE 2003
LEAVE TO ATTEND TRAINING. THAT’S WHY I’M VERY EXCITED ABOUT response to the COVID-19 outbreak.

$60M+
JOINING THE SHUTTLES TO MENTOR YOUNG WOMEN.”

NKEM OKOCHA, MENTOR, SHUTTLERS


INVESTED IN FORD DSFL TO DATE
32 Ford Sustainability Report 2019/20 STRATEGY AND GOVERNANCE PUTTING PEOPLE FIRST PROTECTING OUR PLANET CREATING TOMORROW, TOGETHER

VOLUNTEERING IN 2019

17,000 1,400+
Bill Ford Better World Challenge Senior Executive Mentoring
The Bill Ford Better World Challenge is a global grant program that supports • Our one-day MentorMe sessions
employee-led efforts to address issues surrounding mobility, food and shelter, and match suppliers with senior
access to water, sanitation and hygiene in their local communities. EMPLOYEES PROJECTS IN 37 executives from Ford and other
COUNTRIES partner organizations, to help assess
Jointly funded by Executive Chairman Bill Ford and Ford Fund, the program has
their challenges and opportunities,

117,000 $1M+
awarded $1.5 million to projects in India, Mexico, South Africa, Thailand and the United
and provide feedback to enhance
States since it began in 2015.
leadership and communication
In our most recent projects:
VOLUNTEERING FOR TOOLS AND • The year-long MentorWE program
• Ford employees in Orlando, Florida, developed Food for Life, an urban agriculture HOURS SUPPLIES FROM matches female business owners
program that makes nutritious food more accessible by converting underutilized land FORD FUND with industry peers and offers
into micro-farms and teaching the students at two underserved high schools how to them tailored advice from mentors,
grow their own food corporate leaders and other experts

• The Watergen program in drought-stricken South Africa uses special equipment


hitched to a Ford Ranger to capture moisture from the air. Between August 2019
and March 2020, it has provided clean and safe drinking water for 2,700 community Employee Programs
members in the Eastern Cape A signature program of the Ford Volunteer
Corps, Global Caring Month, provides a
I WANT TO THANK WORLD VISION AND FORD FOR BRINGING concentrated 30-day focus on community
CLEAN WATER TO MY SCHOOL. UNCLEAN WATER MADE ME SICK service each September. In 2019, Ford’s
MANY TIMES BUT SINCE I STARTED TAKING CLEAN WATER, MY Thirty Under 30 Legal Alliance for Women spearheaded
CONDITION HAS IMPROVED.” Ford’s Thirty Under 30 leadership a global effort to assist community
program empowers younger employees organizations that empower women and
PROGRAM BENEFICIARY to work with philanthropic organizations, girls. Volunteers from more than 70 law
learn how they operate and offer insights firms joined Ford volunteers working at
on how they might better connect homeless shelters and food banks, and
Volunteering has always been an integral of current and retired Ford employees who with future donors and volunteers. offered pro bono legal work to help make
part of Ford’s commitment to making serve on the front lines to strengthen the Each year, 30 diverse employees from people’s lives better. The effort brought
a positive impact on society. Through communities in which we do business. the United States, Canada and now together volunteers from 30 U.S. states, as
the Ford Volunteer Corps, we provide Mexico take time away from their jobs well as Argentina, Brazil, Germany, Mexico,
opportunities for employees to support Since 2005, Ford volunteers in six Spain, Thailand, the U.K. and Venezuela.
to focus on challenging social issues
service projects in the communities continents have logged more than
facing their communities. The 2019 class Every spring, hundreds of volunteers
where they live and work. 1.4 million hours of service to help feed the
worked with community development across Europe take part in Vibrant
hungry, provide clean water, build homes,
organizations to create potential Volunteer Week, a week of service in the
Launched by Bill Ford 15 years ago, the renovate schools, mentor young people
solutions to neighborhood concerns communities where they live.
Ford Volunteer Corps is a global network and protect the environment.
such as homelessness, affordable
housing, economic development and
basic services.

THIS IS AN OPPORTUNITY FOR PROFESSIONAL AND PERSONAL


GROWTH. I HAVE ALWAYS BEEN INVOLVED WITH VOLUNTEER
WORK, AND IT IS GREAT TO WORK AT A COMPANY WHERE A LIFE GOAL OF
HELPING OTHERS IS FULFILLED THROUGH COMPANY INITIATIVES.”

EMANUELA CARVALHO DA SILVA, ANALYST, FORD HUMAN RESOURCES, BRAZIL


33 Ford Sustainability Report 2019/20 STRATEGY AND GOVERNANCE PUTTING PEOPLE FIRST PROTECTING OUR PLANET CREATING TOMORROW, TOGETHER

PROTECTING CLIMATE
We’re striving to become a carbon- For more than a decade, we have
neutral business. developed a comprehensive approach that
CHANGE
OUR
Climate change is a global challenge that helps us address the issues associated

STRATEGY
affects us all. In response, we aspire to achieve with our changing climate.
carbon neutrality by 2050.

PLANET
We are focusing on three main areas
We’re electrifying the future. Climate change was identified as globally that account for about 95 percent
We are offering electrified versions of our one of the most important issues of Ford’s carbon emissions:
most popular nameplates and have helped in our latest salient human rights • Vehicle use
We’re making a positive create North America’s largest EV public issues due to the impacts of extreme
charging network. • Our suppliers
contribution to the world weather events, rising sea levels,
droughts and water shortages. Our
around us by reducing the We’re switching to renewable energy.
responsibility for reducing GHG
• Our factories
By managing energy responsibly and moving
emissions associated with the toward locally sourced renewable power, we emissions starts with the use of Our strategy is also shaped by external
our vehicles. factors, including government policies,
use of our vehicles, responsibly will create positive environmental benefits.
physical risks such as extreme weather
managing our operations and We’re preserving the planet’s valuable
C
 limate change is a salient human and other effects of climate change,
rights issue for Ford.
encouraging best practices natural resources. market trends and the growing desire
As well as reducing waste, avoiding freshwater among consumers for more sustainable
among our suppliers. for operational use and phasing out single-use vehicles. In terms of our supply chain, our
OUR GOAL
plastics, we’re exploring ways to use renewable initial approach will include select Tier 1
and recycled materials in our vehicles. We aspire to achieve suppliers. Factory emissions include both
WE BELIEVE THAT MAKING
carbon neutrality Scope 1 and 2 emissions.
GREAT VEHICLES AND by 2050.
MAINTAINING A STRONG BUSINESS OUR ASPIRATIONAL GOALS We are working to develop targets
DON’T HAVE TO BE AT THE COST OF  e aspire to achieve carbon neutrality
W approved by the Science Based Targets
PROTECTING THE PLANET. THESE by 2050. initiative (SBTi) for Scope 1, Scope 2
Doing our share to meet the collective and Scope 3 (use of sold products). As
PRIORITIES ARE DEPENDENT ON EACH  e aspire to achieve zero air emissions
W
challenge of climate change is a key part of this effort, we will develop and
OTHER AND AREN’T MUTUALLY from our facilities.
responsibility and a strategic priority report on interim targets in our future
EXCLUSIVE. TO HELP US ACHIEVE OUR We will use 100 percent locally sourced for Ford. As part of our goal to be the sustainability reports.
ASPIRATIONS, WE HAVE SET OUT SOME renewable energy for all manufacturing world’s most trusted company, we
plants globally by 2035. are strengthening our commitment Why 2050?
AMBITIOUS GOALS THAT WILL MOVE US
 e will make zero water withdrawals
W to limit the global temperature Achieving global carbon neutrality by
TOWARD A CARBON-NEUTRAL FUTURE.”
for manufacturing processes. increase in keeping with the Paris no later than 2050 strengthens our
BOB HOLYCROSS, Agreement, through our aspiration to commitment to the Paris Agreement
We will use freshwater for human and is a natural evolution of our current
VICE PRESIDENT, CHIEF consumption only. achieve carbon neutrality by 2050,
with interim targets that address the approach. However, the challenge of
SUSTAINABILITY, ENVIRONMENT We will achieve true zero waste to reaching the 2050 goal for our industry
urgency of climate change as well as
AND SAFETY OFFICER landfill across our operations. and our company should not be
regional differences.
We will eliminate single-use plastics
from our operations by 2030.
We aspire to only use recycled
WE’RE COMMITTED TO ADVANCING TECHNOLOGIES TO
and renewable plastics in our
vehicles globally. MITIGATE OUR CO2 FOOTPRINT AND CREATING A POSITIVE
IMPACT IN SOCIETY. FORD WORKS CLOSELY WITH REGULATORS
Sustainable Development Goals AND TECHNOLOGY EXPERTS TO FIND WAYS TO REDUCE EMISSIONS
Through our work in protecting our planet, FROM OUR VEHICLES, IMPROVING AIR QUALITY WHILE MEETING
we are contributing to the following United CONSUMERS’ EXPECTATIONS.”
Nations Sustainable Development Goals:
CYNTHIA WILLIAMS, GLOBAL DIRECTOR, SUSTAINABILITY, HOMOLOGATION
AND COMPLIANCE
34 Ford Sustainability Report 2019/20 STRATEGY AND GOVERNANCE PUTTING PEOPLE FIRST PROTECTING OUR PLANET CREATING TOMORROW, TOGETHER

2019 FORD CO2 EMISSIONS (CDP) goal of carbon neutrality, including carbon to see if there was a better approach and adjust our science-based CO2 targets
Factory: 3% pricing systems. To achieve this ambitious to integrate the wants and needs of and explore how best to factor in non-
Miscellaneous1: 5%
and complex goal, we are committed to consumers, the possibilities of technology CO2 emissions.
serving as a positive force in increasing and the requirements for business
Suppliers: 17% To reach this long-term aspiration, we
the collaboration required between success. A team from across functions
need to prepare ourselves in the short
all stakeholders. and regions (the United States, Europe
and mid term. We regularly review our
and China) met regularly to formulate
How We Developed Our vehicle development plans to assess
our carbon-neutral approach, analyzing
Current Approach how they align with our metrics for
Vehicle use: 75% information on the environment,
Since the introduction of our climate reducing CO2 emissions. While achieved
customers, technology, legislation,
science-based glide path for light-duty reductions will vary from year to year due
energy, competitive approaches, life cycle
vehicle CO2 reductions in 2007, we have to external factors that are outside of our
assessments (LCAs) and other trends.
underestimated. Enormous changes will updated the glide path about every five control, we are improving the efficiency
The team has developed a framework for
be required to decarbonize the global years to capture the latest climate science of conventional and hybrid electric
success that includes metrics that were
energy and transportation systems. and our progress. Our original model was vehicles (HEVs) and prioritizing a carbon-
reviewed and endorsed by management to
based on 450 ppm CO2 stabilization, and neutral portfolio that is key for the future.
ensure the integration of carbon neutrality
While it will take time for infrastructure in 2017, we moved to a 2°C temperature Depending on infrastructure, technology
into company processes.
to be updated, the technology to become stabilization pathway. Our glide path development, policy and customer
affordable and other obstacles to be approach is as follows: We are pursuing vehicle-use CO2 targets acceptance, our long-term carbon-
addressed, we expect the goal of carbon consistent with carbon neutrality and neutral portfolio will be powered by some
neutrality to be reached in different • Based on climate science and modeling
the SBTi. We will continue to use our combination of renewable, carbon-neutral
product segments and regions at by recognized authorities, including the
model to conduct sensitivity studies on electricity, hydrogen and fuels (biofuels
different times. For example, we expect International Energy Agency (IEA), we
how our pathway is affected by global and e-fuels). Fossil fuels may also
passenger vehicles to be carbon neutral developed a model of global and light-
changes such as economic conditions, the continue to have a place in combination
before larger commercial vehicles with duty vehicle (LDV) CO2 emissions from
availability of renewable, carbon-neutral with carbon capture and sequestration
more demanding duty cycles. Given their different regions
electricity and fuels, and regulations. technology (see graphic below).
progressive policies, we expect the EU, • We calculated the 2°C stabilization As the factors change and as climate
California and other U.S. states following emission reduction levels for LDVs over science develops, we will further refine
California’s lead to be carbon neutral time, resulting in “CO2 glide paths” for
before the rest of the world. Our interim the LDV sector that take into account Carbon-Neutral Powertrain Options
targets will reflect these differences. regional differences in vehicle size and
It is important to note that carbon fuel consumption, biofuel availability and
neutrality can be achieved using emission market growth
CO2 or C Carbon Sequestration (CCS)
reductions and carbon offsets. Our • We then calculated Ford-specific glide Carbon Capture:
philosophy is to focus on emission paths (CO2 reduction goals) for our Atmospheric or Industrial CO2,
reductions. We are not planning to use Biomass
new vehicle lineups across our major
carbon offsets for our light duty vehicles, operating regions, and applied the
although they may sometimes be E-fuel
methodology to determine reduction
necessary, especially for medium- and Production
targets for our facilities
heavy-duty vehicles and in less developed
regions of the world. Our CO2 model is not intended to provide E-fuel
Electricity H2
the “answer,” but a range of possible Electricity Biofuel
We recognize that to be successful, vehicle and fuel solutions in a carbon- Generation Electrolysis
we need many external factors to be constrained world. Our reduction targets
aligned with our efforts. These include are an approximate guide to cumulative
government policies, technical solutions, CO2 reduction, rather than a precise Water
the green grid and market trends such as limitation of annual emission rates. BEV FCEV ICEV, HEV, PHEV
energy price fluctuations and changes in
consumer demand. We will monitor and In 2019, we began to examine our climate
Future carbon-neutral transportation will be powered by a combination of electricity,
advocate for key enablers that support our strategy using human-centered design,
hydrogen, e-fuels and biofuels, and/or fossil fuels with CCS.
BEV – battery electric vehicle, FCEV – fuel cell electric vehicle, ICEV – internal combustion engine vehicle,
1 Miscellaneous is total Scope 3 less vehicle use and purchased goods (i.e., upstream and downstream HEV – hybrid electric vehicle, PHEV – plug-in hybrid electric vehicle
transportation and distribution, business travel, capital goods, franchises).
35 Ford Sustainability Report 2019/20 STRATEGY AND GOVERNANCE PUTTING PEOPLE FIRST PROTECTING OUR PLANET CREATING TOMORROW, TOGETHER

To realize this portfolio, we are investing


heavily in vehicle electrification, actively
REDUCING by 14 percent and the Ford Expedition by
30 percent in the same timeframe. We will
pursuing fuel cell solutions for the OUR VEHICLE continue to enhance the fuel efficiency of

FOOTPRINT
appropriate segments and exploring our light and medium duty truck lines by
renewable fuels. In the transition period, offering full battery (BEV) and hybrid (HEV)
it will be important to remain financially electric models of our flagship nameplates
viable and keep in step with consumer To reduce the CO2 emissions associated including the F-150, Explorer and Escape.
demand while finding ways to encourage with the use of our vehicles, we are
committed to making more efficient We have demonstrated our commitment
market growth of our expanding zero-
technologies and lower-impact vehicles to doing the right thing by pursuing a
Ford Participates in the Climate emission vehicle (ZEV) portfolio. Although
accessible on a global scale. voluntary agreement with California in
Leadership Conference in Detroit we don’t presently have all the answers,
which we commit to more stringent vehicle
we are committed to achieving our goal.
In March 2020, Ford Motor Company A
 ir quality is a salient human rights issue emission reductions than the Federal
participated in the Climate A Commitment to Transparency for Ford. regulations require.
Leadership Conference in Detroit, Climate change is a global challenge that
We take a portfolio approach, offering For the foreseeable future, internal
Michigan. Business executives, affects us all and its societal implications
smarter choices for improving fuel combustion engine (ICE) vehicles will
elected officials, nonprofits and are profound, making it a salient human
efficiency and vehicle CO2 emissions continue to play a role in most markets.
members of academia participated rights issue and a strategic priority for
across three areas (see table on page 36). With U.S. fuel prices staying low in recent
in educational sessions, roundtable Ford, as well as for our stakeholders.
discussions and policy briefings years, customers are favoring attributes
Ford’s aim is to achieve carbon neutrality
to explore potential solutions that In an effort to increase transparency such as performance, connectivity and
from our vehicles by 2050. Our global
address climate change. about the resiliency of our climate change infotainment above fuel efficiency.
fuels migration path and our technology
strategies, we’ve produced our second Nonetheless, in line with our beliefs and
migration plan are based on delivering
At the event, Bob Holycross, Vice Climate Change Scenario Report in our strategy, we continue to improve fuel
high-quality vehicles that consumers want
President, Chief Sustainability, response to the recommendations of the economy and reduce CO2 emissions across
while responding to the risks associated
Environment and Safety Officer, Task Force on Climate-related Financial our portfolio to minimize the environmental
with climate change.
spoke about Ford’s vision for a more Disclosures (TCFD), to which we are now impact associated with their use.
sustainable future, including our formally committed. This report outlines Reducing vehicle carbon emissions
GHG framework with California. He However, traditionally powered vehicles
our ambition to achieve carbon neutrality is challenging. Over the past decade,
also outlined our commitment to will eventually be displaced by electric and
by 2050, the climate scenarios we have consumer preference has shifted away
comprehensive, industrywide policies other low-emission options as technologies
developed internally, the resiliency of our from cars, and toward trucks and SUVs,
that protect the environment and and infrastructure develop, and as some
strategies to those scenarios, and how we as fuel prices have remained low. In 2019,
promote technology innovation. countries and cities place restrictions
monitor and review the impacts of climate sales data shows that 68 percent of our
on ICE vehicles. We’re already scaling up
change on our strategies. U.S. customer base preferred a truck to
the number of electrified models in our
a car. During this shift, we have improved
global fleet, including our new, all-electric
ACTIONS TAKEN NOW …LEAD TO US ACHIEVING OUR fuel efficiency across several individual
Mustang Mach-E and Transit, as well as
AND IN THE NEAR FUTURE… GOALS IN THE FAR FUTURE nameplates significantly. From 2012 to
creating North America’s largest EV public
2019, fuel economy for the Ford F-150
• Remain Financially Viable charging network.
improved by 16 percent, the Ford Escape
• Address Urgency
• Prioritize Carbon Neutral Aspirational Goal FORD CAR AND TRUCK FUEL ECONOMY (mpg)2
Portfolio Development
• Connect with Customers
To Achieve Carbon 35.2 35.7 35.6

• Encourage Market Development Neutrality by 2050 29.6 28.9 29.0


26.1 26.3 26.8
(Communicate, Advocate & Partner)
• Monitor Key External Enablers
Combined car
and truck fleet
TO DRIVE COLLABORATION AND PROGRESS TOWARD OUR NEW CARBON-NEUTRALITY GOAL average
Cars (domestic
(SEE GRAPHIC ABOVE), WE HAVE JOINED THE CEO CLIMATE DIALOGUE AND THE CLIMATE and import)
LEADERSHIP COUNCIL IN THE UNITED STATES, AND SIGNED UP TO THE NEW DEAL FOR EUROPE Trucks
INITIATIVE TO DEVISE A COMPREHENSIVE SUSTAINABLE EUROPE 2030 STRATEGY. 2017 2018 2019

2 Calculated using the Corporate Average Fuel Economy (CAFE) drive cycle standards. Does not include A/C or Off-Cycle credits. Includes 0.2 mpg flex-fuel vehicles (FFVs) credit.
36 Ford Sustainability Report 2019/20 STRATEGY AND GOVERNANCE PUTTING PEOPLE FIRST PROTECTING OUR PLANET CREATING TOMORROW, TOGETHER

U.S. CUSTOMER PREFERENCES We acknowledge the fact that WTT GHG (CO2EQ) SAVINGS VS. PISI
impacts are part of the total vehicle life GASOLINE (E10) IN THE UNITED STATES
cycle; however, these emissions are beyond POWERTRAIN/FUEL TTW WTW
our direct control. We therefore look to
34% 32% DISI/E10 13% 13%
address these impacts in collaboration
HEV/E10 28% 28%
2017 2018 2019
2017 with a range of partners, including fuel
46%
54% and electricity producers, infrastructure PHEV/E101,2 69% 44%
68%
66% developers and governments. BEV/grid-average electricity 100% 64%

Truck Car Life Cycle Assessment Research BEV/renewable electricity 100% 100%

Although LCA is a valuable tool for E853 2% 32%


assessing and comparing materials and CNG 24% 21%
OUR PORTFOLIO APPROACH TO VEHICLE EMISSIONS technologies, its complexity limits how LPG 15% 16%
VEHICLES FUEL CUSTOMERS many vehicles we can assess.
FCEV4 100% 55%
Affordable, accessible lower- Developing vehicles that use lower- Providing options for different We are studying the energy and CO2 Diesel 14% 16%
emission options: emission fuels: vehicles and fuels, and how those emissions embedded in automotive parts
• Electrified vehicles • Electricity vehicles will be maintained B205 14% 26%
produced from lightweight carbon fiber
• New engine/transmission • Renewable fuels Promoting “eco-driving” through HVO6 20% 90%
technologies training, information and in- composites and comparing them to any
• Compressed natural gas (CNG)
• Aerodynamic improvements vehicle technology estimated fuel and GHG emission savings DME7 23% 69%
• Liquefied petroleum gas (LPG)
• Weight reductions during vehicle use. Reference:
• Hydrogen
• Advanced powertrain options GREET 2019 (https://greet.es.anl.gov/, 2020 simulation)

IMPROVING FUEL ECONOMY 1 U.S. average grid electricity mix.


2 PHEV assumes 50 percent all-electric operation.
We use a variety of approaches to 3 Ethanol from corn.
TAKING A LIFE CYCLE vehicle use, we calculate that our sold
improve the fuel economy of our 4 Hydrogen from steam methane reforming of natural
APPROACH vehicles produce 135 million metric tons of gas at a central plant.
CO2 emissions. vehicles, guided by our Global Fuels 5 Biodiesel from soy.
We continue to explore the impacts Migration Path (see table on next 6 Hydrotreated vegetable oil made from used cooking
of our vehicles and services over their Our focus is on improving tailpipe or page). Improving fuel economy goes oil (ref. internal studies).
tank-to-wheels (TTW) emissions3, and 7 Dimethyl ether made from landfill gas.
entire life cycle. This holistic approach hand in hand with our work to scale
helps us reduce our environmental we continue to study well-to-wheels up electrification.
footprint through the materials and (WTW) impacts in keeping with our
carbon-neutrality aspiration. This includes Advances in Engine and Diesel Engines
energy we use to make our vehicles, and
the production (well-to-tank, WTT) and Transmission Technologies We have continued to drive the benefits
the emissions they generate during use.
consumption (TTW) of fuel during vehicle Gasoline Engines of advanced diesel engine technology
We use a range of analytical tools to use. WTW emissions vary with vehicle, Thanks to turbocharging and direct fuel through our leading EcoBlue® range. In
identify and measure the potential engine type and energy source. injection, our EcoBoost® engine range is specific markets and segments, such as
environmental and cost impacts of our the flagship of our efforts to improve fuel light commercial vehicles and heavy-
vehicles and services over their life cycle, When comparing vehicles, diesels efficiency and reduce CO2 emissions in duty vehicles, modern diesel engines
from the acquisition of raw materials, generally have lower lifetime WTW our gasoline-powered vehicles. Award- offer reduced CO2 emissions and fuel
through vehicle production, distribution GHG emissions than their gasoline- winning, fuel-saving EcoBoost technology consumption, especially with heavy
and use, to end-of-life disposal powered equivalents and, in vehicles is now available on more than 80 percent loads, and can achieve 20–30 percent
or recycling. with alternative powertrains, WTW CO2 of our nameplates, and has now been used better fuel economy than comparable
emissions vary with how carbon intensive in 8 million engines worldwide. gasoline engines.
In terms of overall impact, vehicle use the fuel production process is. Therefore,
(operation) is the main source of life cycle lower-carbon options such as BEVs and We are developing new technologies to In North America, we’re offering two
emissions. Use-phase CO2 emissions plug-in hybrid electric vehicles (PHEVs) improve engine performance, such as advanced diesel engines. The 3.0-liter
depend on many factors, including the are more beneficial when the electricity advanced boosting, reduced friction, and Power Stroke is the first diesel engine for
energy source and the way the vehicles comes from renewable sources such as advanced fuel injection and ignition. We the F-150, and the 6.7-liter Power Stroke
are driven. Using the GHG Protocol wind or solar power. also continue to assess how low-carbon epitomizes the strength of the Built-Tough
methodology, as well as actual vehicle renewable fuels can help reduce CO2 F-series trucks. Both engines demonstrate
testing, to estimate emissions from emissions as we bring electrified and hybrid the class-leading fuel efficiency and
models to market (see table). performance of progressive diesel engines.

3 T TW describes the use of fuel in the vehicle and emissions during driving; WTT describes the production of the fuel to its supply at the charging point or fuel pump; WTW refers to the whole chain from fuel production to vehicle use.
37 Ford Sustainability Report 2019/20 STRATEGY AND GOVERNANCE PUTTING PEOPLE FIRST PROTECTING OUR PLANET CREATING TOMORROW, TOGETHER

In Europe, the new 2.0-liter Ford EcoBlue Our advanced diesel engines are already 2019 SAW THE PRODUCTION OF THE We’ve also made progress with graphene,
diesel has now completed its rollout
across the passenger car fleet, bringing
with it not only the refinement and
compatible with biodiesel. For the
Scandinavian market, we approved
commercial vehicles equipped with the
Millionth a light, carbon-based material 200 times
stronger than steel. We already use
it in the Ford F-150 and Mustang, and
FORD ECOBLUE ENGINE
performance traditionally associated with 2.0-liter Ford EcoBlue engine to use will eventually incorporate graphene-
Ford diesel, but also emission control hydrotreated vegetable oil (HVO) as reinforced components into all
solutions capable of addressing the a biodiesel fuel. HVO, based on waste Advanced Transmissions and Drivelines our vehicles.
challenge of Real Driving Emissions (RDE). including used cooking oil, is able to We continue to advance our front-
2019 saw the production of the millionth reduce CO2 emissions up to 90 percent on and rear-wheel-drive transmissions ALTERNATIVE FUELS
Ford EcoBlue engine. a WTW basis. We will continue to focus to increase efficiency and improve
on new sustainable fuels such as DME vehicle performance, and we are further
AND POWERTRAINS
(dimethyl ether). developing low-friction, all-wheel- Our plan to develop sustainable
drive systems. The 10-speed automatic technologies includes researching and
transmission is now used in our new developing alternative powertrains
GLOBAL FUELS MIGRATION PATH Ford Expedition and Lincoln Navigator, and fuel options across all our vehicles,
To support global climate stabilization, we have developed a fuels roadmap to guide our efforts. This informs how we improving powertrain efficiency and giving customers more choice. In
migrate our vehicle, powertrain and fuel options toward lower CO2 emissions and improved fuel efficiency.
vehicle performance. Additionally, our new particular, we are launching electrified
FUEL OPTION NOW (2020–2021) NEAR (2022–2026) FAR (2027+) modular hybrid transmission version of the versions of all our most popular
10-speed enables the hybridization of our nameplates, including the all-electric
Gasoline and Growth of fossil fuel availability Gasoline/diesel fuel properties Further gasoline/diesel fuel
Diesel continues with developments in improvements facilitating properties improvements to large rear-wheel-drive vehicles, including Mustang Mach-E.
extraction technologies efficiency improvements and support advanced vehicle the F-150. The All-New, All-Electric
carbon reductions technologies driving further
efficiency improvements and Reducing Vehicle Weight Mustang Mach-E
carbon reductions We use advanced lightweight materials For the first time in 55 years, Ford is
Electricity Electricity grids start to Electricity grids continue to Clean electricity further wherever practicable to improve fuel expanding the Mustang lineup with the
(HEV, PHEV, transition to low-CO2 future transition to low-CO2 future enhances the benefit of PHEVs economy and increase payload and towing all-new, all-electric Mustang Mach-E SUV,
BEV) Implementation of renewable Grid/infrastructure and and BEVs capability. By switching to aluminum, we which will feature a new infotainment
energy, including solar and wind standardization support reduced the weight of the 2018 Lincoln system and connected vehicle technology.
expansion of PHEVs and BEVs
Navigator by 200 pounds, the 2018 Ford The Mustang Mach-E embodies the
Renewable First-generation biofuel Renewable fuel capacity Renewable fuel capacity Expedition by 300 pounds and the 2017 Mustang spirit and brings fun, guilt-free,
Fuels production increases expands in selected markets expands in all markets Ford Super Duty by 350 pounds. zero-emission driving to life.
Second-generation biomass- Greater contribution by second-
based fuel production generation biomass-based fuels
technology matures E-fuel availability increases
E-fuels become available in
limited quantities (e-methane,
e-methanol/e-DME, e-diesel)

CNG, LPG CNG and LPG available in CNG expands in CNG and DME from alternative/
and DME limited markets commercial fleets renewable sources
Bio-methane blended into CNG CNG vehicles capable of using Increasing fraction of liquid
supply in Europe 100 percent bio-methane renewable hydrocarbons in
and e-methane, or blended fuel portfolio
with CNG
Availability increases
with demand and
production capacity
Increasing development
of renewable DME for
compression ignition engines

Hydrogen Steam reforming of natural gas Increased share of hydrogen Further increased
from renewable sources share of hydrogen from
renewable sources

CNG: Compressed natural gas DME: Dimethyl ether


LPG: Liquefied petroleum gas E-fuels (electro-fuels) are produced from renewable
electricity and carbon from biomass or CO2
38 Ford Sustainability Report 2019/20 STRATEGY AND GOVERNANCE PUTTING PEOPLE FIRST PROTECTING OUR PLANET CREATING TOMORROW, TOGETHER

VEHICLES POWERED BY ALTERNATIVE FUELS


RENEWABLE CNG, LPG AND FCEVs
BIOFUEL VEHICLES DME VEHICLES Announced Ford Global Electrified Lineup
Fuel Ethanol, made from CNG Hydrogen fuel cell system –
fermented corn sugars or converts stored hydrogen
Full Hybrid Plug-In Hybrid All-Electric
LPG
sugar cane, is usually blended to electricity
DME under investigation
with gasoline (e.g., E10, E15,
E27 or E85); ethanol from
non-food feedstocks is
technically feasible Mondeo Escape/Kuga Mondeo Escape/Kuga Mustang Mach-E Territory
Renewable diesel fuels made
from soy, canola, rapeseed,
corn or palm oil, or animal fats,
and mixed with fossil diesel. Explorer F-150 Explorer Tourneo Custom Transit F-150
Biodiesel (FAME) typically has
lower blends (B7, B20), while
HVO can be blended at higher
concentrations (R33).
Corsair Aviator Territory Aviator New Model on
Benefits Biofuels made from renewable Lower CO2 and life cycle GHG Zero-emission EVs VW Platform
resources may reduce emissions than gasoline or Only water and low-temperature
CO2 emissions diesel vehicles heat are by-products
Next-generation biofuels Lower non-CO2 emissions Corsair
made from plant stems and
leaves, waste, or used cooking
Additional, unannounced products are planned
oil reduce competition for
food crops

Models E85 FFV: F-150, Super Duty, Wide range of commercial


Transit Connect, Explorer vehicles with gaseous prep kits:
Hybrid Vans Support Drive for Cleaner City Air
(fleet), Kuga F-150, F-250, F-350, Transit
E100 FFV: Ka, EcoSport Connect, E-series cutaway, Our Plug-In Hybrid Ford Transit Custom Further trials in Cologne in Germany and
F-X50 chassis cab van was the centerpiece of a year-long Valencia in Spain will provide data from
B20: F-150, F-250/F-350 Super
Duty, Transit Fiesta LPG in Europe trial in London to see if PHEVs could help different cities, customers and vehicles.
HVO: Transit in Europe improve air quality in cities with clean air
Ford will investigate how innovative
targets. Supported by a £4.7 million grant
technology could help accurately track
The Mustang Mach-E will be available in and North America for the 2022 model from the U.K.’s Advanced Propulsion
and increase the number of “green
North America and Europe with standard year for the United States and Canada. Centre, a range of businesses covered
miles” driven by vehicles. These trials
and extended range battery options with 150,000 miles in 20 PHEVs to test
Watch a video about the making of the feature the FordPass Connect onboard
either rear-wheel drive or all-wheel drive. whether they could carry out their typical
Mustang Mach-E cellular modem, and a plug-in device
One configuration of the Mach-E SUV duties while using zero-emissions power.
to enable geofencing and blockchain
has a targeted Environmental Protection Ford is investing more than $11.5 billion in
During the trial, 75 percent of the capabilities. With geofencing, whenever
Agency (EPA)-estimated range of at least electrified vehicles through 2022. See the
fleet’s mileage in Central London and a trial vehicle enters a controlled zone,
300 miles.4 Scaling Up Electrification section for more
49 percent in Greater London was its electric-drive mode is triggered
information about the electrification of our
Other ZEVs include the Territory EV in completed using pure electric power. and the zero-emission green driving
most popular nameplates.
China and an all-electric Transit in Europe The results highlight how PHEVs can miles are documented. The blockchain
dramatically reduce tailpipe emissions technology enables secure, tamper-
in inner cities as the charging network proof tracking and logging of vehicle
develops, and give the flexibility to emissions records, which makes it
THE ALL-NEW MUSTANG MACH-E IS THE NEW BENCHMARK complete longer journeys when required. ideal for the PHEV pilot. Security, trust
and transparency of emissions data
FOR ALL-ELECTRIC VEHICLES. IT’S ALL ABOUT GUILT-FREE,
are of paramount importance to all
ZERO‑EMISSION DRIVING. IT’S A GAME-CHANGER.”
stakeholders in this project and are key
ULRICH KOESTERS, DIRECTOR, ELECTRIFICATION EUROPE for our vision of cleaner air in the city.

4 Based on full charge when configured with optional extended range battery and rear-wheel drive. Actual range varies with conditions such as external elements, driving behaviors, vehicle maintenance and lithium-ion battery age. Final
EPA-estimated ratings are available in the 2020 calendar year.
39 Ford Sustainability Report 2019/20 STRATEGY AND GOVERNANCE PUTTING PEOPLE FIRST PROTECTING OUR PLANET CREATING TOMORROW, TOGETHER

Several countries, including Norway, the


Netherlands, France and the U.K., are FORD OF EUROPE IS COMMITTED TO MEETING THE STRINGENT
going further still, announcing plans to ban
EUROPEAN 2020 CO2 EMISSIONS TARGETS, OFFERING A BROAD
ICEVs or implement 100 percent ZEV sales
targets to further improve air quality. MIX OF HIGHLY EFFICIENT AND ELECTRIFIED VEHICLES WITH LOW CO2
EMISSIONS, INCLUDING MHEVS, HEVS, FHEVS AND PHEVS.”
Zero-Emission and Zero-Impact
Emission Vehicles DR. WULF-PETER SCHMIDT, DIRECTOR SUSTAINABILITY, ADVANCED REGULATION AND
The EU Parliament has announced its PRODUCT CONFORMITY
Growing the Ford Brand in India intention of only registering ZEVs starting
In October 2019, we announced in 2040 as a contribution to the planned
a joint venture with Mahindra to EU target of net carbon neutrality by 2050 MOVING TOWARD A Our Sustainable Materials Legacy
strengthen the Ford brand in India. (the EU Green Deal). CIRCULAR ECONOMY Henry Ford, our company’s founder,
This development will help Mahindra pioneered research in using plant-
ZEV mandates are in place in California, The materials used in a vehicle are
and Ford to offer new products to based and recycled materials, and that
10 other U.S. states and China. ZEVs an important element of its overall
customers faster than before and spirit and legacy live on today at our
– namely BEVs or FCEVs – have no sustainability. We aspire to only
deliver profitable growth to both Research Laboratory. Since 2000, we
tailpipe emissions but, from a life cycle use renewable and recycled plastic
companies. To be fully operational have introduced 12 industry- and world-
perspective, are not zero-emission. materials with lower life cycle impacts,
in 2020, the joint venture will be first, new plant-based materials into our
Upstream electricity generation that provide equivalent or better
operationally managed by Mahindra. vehicles, and continue to introduce new
emissions of air pollutants for a BEV can quality, appearance and performance
The joint venture will focus on the applications using recycled plastics. Our
be comparable to ICE vehicle tailpipe as existing materials. Additionally, we
utility vehicle segment and expects long-term ambition is to create positive
emissions, although they are not typically have established an interim target of
to introduce three new products impacts through our material choices, in
emitted in urban areas. 20 percent renewable and recycled
under the Ford brand, beginning with line with our aspirational goal.
a new midsize SUV that will have a plastics by 2025 as we make progress
With tailpipe emissions from ICE-equipped
common Mahindra product platform toward a circular economy. Through our research, we have discovered
vehicles declining to very low levels, the
and powertrain. new, robust natural-fiber-reinforced
concept of zero-impact emission vehicles
materials that improve fuel economy
(ZIEVs) is beginning to be discussed.
OUR GOAL because they are lighter in weight. These
ZIEVs have tailpipe emissions which, while
ADDRESSING NON-CO2 not zero, have a negligible impact on air We aspire to only
plant-based materials sequester carbon,
reducing global warming impacts, and
EMISSIONS quality. ZIEVs may have a role to play in use recycled and require less energy to process. Many
Internal combustion engine vehicles the lower emissions future ahead, enabled renewable plastics in our of them are waste products from the
(ICEVs) emit hydrocarbons, carbon by ultra-clean internal combustion engine vehicles globally. agricultural industry, helping us to achieve
monoxide, nitrogen oxides and vehicles, EVs and FCEVs.
circular economy goals.
particulate matter during combustion. REGIONAL EMISSIONS STANDARDS
Acknowleding these pollutants can Recycled Materials
affect air quality, particularly in urban
UNITED STATES EUROPE CHINA OTHER REGIONS By using recycled materials, we are
areas, we have indentified air quality Already Environmental Euro 6 tailpipe National stage-5 India: Bharat Stage VI keeping waste out of landfill, as well as
as a salient human rights issue. We are Compliant or Protection Agency emissions standards (China 5) Brazil and Argentina: using fewer natural resources and less
working to reduce emissions of non-
Surpassing (EPA) Tier 2 regulations Phase II emission standards PROCONVE L-6 and energy. Most metals are already recycled,
CO2 pollutants through our research, California’s Low Euro 6d Temp Real National stage-6a standards based on but our most notable example of “closed
Emission Vehicle II Driving Emissions (China 6a) in nine Euro 5
vehicle development and operations, in loop recycling” is the return of high-value
(LEV II) program (RDE) standards cities/provinces Middle East: Standards
accordance with increasingly stringent aluminum scrap to raw material suppliers
National stage-6b based on Euro 2, Euro 3
standards around the world. (China 6b) in five diesel and Euro 4
for the fabrication of new sheet for Ford
cities/provinces F-Series trucks. The new challenge in
Standards Continue to Tighten recycling is plastics, where we focus most
Ford complies with or exceeds all global Becoming EPA Tier 3 standards Euro 6 evaporative China 6a emission Brazil: PROCONVE L-7 of our efforts.
criteria emission standards as they are Compliant as California’s LEV III emissions standards standards, effective Chile/Colombia:
introduced. The enforcement of such
Phased In standards, closely Phase II nationwide July 2020 Standards based on Ford is already a leader in using post-
standards has led to lower vehicle aligned with the EPA’s Euro 6d Real Euro 6 consumer discarded carpet in molded
Tier 3 program Driving Emissions
emissions and improved air quality in engine components and extension dash
(RDE) standards
many cities in recent decades. panels made using recycled tires. We
continue to look at other innovative
40 Ford Sustainability Report 2019/20 STRATEGY AND GOVERNANCE PUTTING PEOPLE FIRST PROTECTING OUR PLANET CREATING TOMORROW, TOGETHER

by-products and waste streams, such We also launched a new material on an


as agave fiber from the tequila-making extension dash panel (a semi-structural BEING BETTER STEWARDS OF THE ENVIRONMENT MAKES GREAT
process or U.S. currency taken out plastic panel just under the windshield
BUSINESS SENSE. “GOING GREEN” IS VITAL TO US AND THE
of circulation, and we’ve even begun wipers), which is made from recycled
exploring how ocean plastics can be carpet backing and recycled tire rubber. HEALTH AND WELL-BEING OF OUR COMMUNITY. FORD’S GO GREEN
turned into automotive parts. This application has given a new lease of INITIATIVE IS PERFECTLY ALIGNED WITH OUR MISSION AT LAFONTAINE
life to around 11.9 million square feet of AND HELPS SHOWCASE THE EXTENSIVE GOLD LEED ASPECTS OF OUR DEALERSHIP. WE
New Applications in 2019
carpet and 26,250 pounds of tire rubber – WERE THE FIRST FORD DEALERSHIP IN THE NATION TO BUILD A GOLD LEED-CERTIFIED
We created the first injection-molded
two materials that have significant DEALERSHIP AND LOOK FOR ADDITIONAL OPPORTUNITIES TO STRENGTHEN AND ALIGN
carbon canister, an under-hood emission
environmental challenges at end-of-life.
control component, made from OUR RELATIONSHIP WITH FORD.”
100 percent post-consumer recycled
SCOTT TARWACKI, GENERAL MANAGER , LAFONTAINE FORD
carpet backing. Replacing fossil feedstock,
the recycled resin reduces material
cost by 25 percent, with no impact on Renewable Materials
performance. It is currently being used We were the first automotive company to
on more than 20 Ford programs globally. launch soy-based foam in 2007, and since
This application won the 2019 Society of then, we have introduced new composites
Plastics Engineers Environmental Award. using castor oil, kenaf, wheat straw,
rice hulls, coconut and tree fibers into
our vehicles.

Society of Plastics Engineering Award. In the laboratory, we’re continuing


to research new materials including
SUSTAINABLE MATERIALS AT FORD Giving Vehicles a Caffeine Boost
bamboo, agave (tequila) fiber, algae and
even captured CO2. Having introduced Through a new research partnership
Soy Foam Kenaf Rice Hulls Coffee Chaff an award-winning tree-based cellulose with McDonald’s USA, we will be
• Launched on Mustang • Launched on Escape • Launched on F-150 • 20% lighter composite into the consoles of the Lincoln using coffee chaff – the dried skin of
• Now on all North door bolster wiring harness • 25% less energy the coffee bean – as an industry first
Continental in 2018, we are currently
American vehicles • 25% weight reduction • 45,000 lbs in first year
testing whether it can be used in other in vehicles.
• 5 million lbs of petroleum
saved annually new applications. Together, we’ve found that chaff, a
2019 Developments skin that comes off the bean during
We have recently started using rice roasting, can be used for reinforcing
2008 2010 2013 2014 2019 components such as headlamp
hulls in composites for wiring channels.
This material is 10 percent lighter, uses housings. Components made from
an agricultural by-product and meets coffee chaff will be about 20 percent
all performance requirements while lighter, require up to 25 percent less
Wheat Straw Cellulose energy to mold and have significantly
reducing our environmental impact. The
• Launched on Flex 3rd row • Launched on MKX
natural high silica content of rice hulls better heat resistance. McDonald’s
storage bin armrest substrate
• Saves 20,000 lbs • 6% weight reduction reduces mildew and fungal growth, and sells more than 1 billion cups of
petroleum annually • Parts produced 20–40% faster offers better flame retardancy and lower coffee each year, so there is a lot of
moisture absorption than other natural chaff available.
fibers. The application offers farmers an Working alongside different
additional revenue stream. companies, including McDonald’s,
CLOSING THE LOOP HAS BEEN A PRIORITY FOR FORD FOR MORE
Eliminating Harmful Substances we will continue to utilize materials
THAN 20 YEARS. WE’RE WORKING WITH DIFFERENT INDUSTRIES
We manage the materials we use in that otherwise would be waste or
TO EXCHANGE MATERIALS THAT OTHERWISE WOULD BE BY-PRODUCTS by-products.
our vehicles to ensure we meet local
OR WASTE.” and global regulations to eliminate or Watch a video about our new
DR. ALPER KIZILTAS, TECHNICAL EXPERT, SUSTAINABLE AND EMERGING MATERIALS reduce a range of materials including partnership with McDonald’s
hex chrome, lead, mercury and copper
41 Ford Sustainability Report 2019/20 STRATEGY AND GOVERNANCE PUTTING PEOPLE FIRST PROTECTING OUR PLANET CREATING TOMORROW, TOGETHER

SUSTAINABLE Leading on Climate and Water


To achieve our current target – an
18 percent absolute reduction in
OPERATIONS Ford is one of 181
operational GHG footprint by 20235 – our
Plant Energy Team focuses our efforts on
companies on the CDP
By improving the operations under our securing a reliable supply of energy for
Climate Change “A List”
direct control, we aim to make a positive our manufacturing plants, making those
and we have retained our
contribution to the world around us. facilities more efficient and collecting,
place on the CDP Water
storing and managing data and analytics.
Our Science-Based Approach Security “A List” for the
Maximizing the efficiency of our operations fifth consecutive year. We We report our GHG emissions, participate
is the key to lowering GHG emissions join only nine other U.S. in emissions trading schemes and adhere
and energy use. We use the Science companies in making both to a number of carbon reduction initiatives
Based Targets initiative methodology to lists, and we are the only in the United States, Mexico, Canada,
develop specific glide path targets for our U.S. automaker on both. Brazil and other countries.
manufacturing operations. These are based For more information, see Ford’s Read more about our aspirational goal to
on climate science and the need to limit the response to the CDP. achieve carbon neutrality by 2050
(in brake pads). We have phased out all EU rise in global temperature in line with the
REACH Authorization-listed substances Paris Agreement and our aspirational goal Cutting GHG Emissions From Our Facilities
that have reached their “sunset dates,” to achieve carbon neutrality by 2050. We achieved our previous GHG emissions
after which they cannot be used in the EU ENERGY AND EMISSIONS target eight years early, through initiatives
without authorization from the European We are looking for ways to reduce our such as installing LED lights and updating
We’re continuing to improve the way
Chemicals Agency (ECHA). footprint by: our painting operations.
we use energy at our manufacturing
In addition, we lead, chair or participate • Increasing our use of renewable energy facilities and other sites, to help address In 2019, we reduced our absolute
in several industry association working climate change. As well as using energy emissions by 14.6 percent, or 0.64 million
• Focusing on responsible water stewardship
groups, including the Global Platform for more efficiently, we are increasing our metric tons – the equivalent of more than
Sustainable Natural Rubber and Drive • Achieving true zero waste to use of power from renewable sources, 138,000 passenger vehicles being driven
Sustainability, and advise governmental landfill across our operations, reducing the GHG emissions from our for a year.
agencies about developments in wherever practicable operations and making our transport
substance restrictions. more fuel efficient. Making the Switch to Renewable Energy
• Eliminating single-use plastics from We have set an aspirational goal to
Reducing End-of-Life Impacts our operations achieve 100 percent locally sourced
At least 95 percent of a vehicle is OUR GOALS renewable energy for all manufacturing
recoverable at the end of its useful life Read more about how we’re sharing best
practices with our suppliers We will use 100 plants globally, without the use of credits,
but getting the final fractions can be percent locally sourced by 2035. This involves a procurement mix
prohibitively energy- and labor-intensive. The Factory of Tomorrow renewable energy for all of wind, solar power, storage and hydro to
Nonetheless, we aim to recover as much We’ve been innovating since the first manufacturing plants replace fossil-based generation.
as possible through materials selection moving assembly line, and today, our globally by 2035.
and by engaging with vehicle dismantlers. Research and Advanced Engineering
Organization develops new technologies We aspire to achieve GHG EMISSIONS FROM OUR OPERATIONS
As part of our voluntary Go Green Dealer

3.74
to improve our manufacturing processes zero air emissions from
Sustainability Program, many U.S. our facilities.
service centers collect the headlights, and develop world-class vehicles.
bumpers and windshield-wiper motors For example, Ford was an early adopter TOTAL EMISSIONS FROM FORD FACILITIES
removed during servicing. The parts are of advanced 3D printing technology to (MILLION METRIC TONS)

0.70
either cleaned and remanufactured, or help drive what we call the Factory of Our Strategy for Reducing Carbon
dismantled and recycled for use in new Tomorrow. This technology enables us To reduce the energy and emissions
applications. We also work with the to produce and test high-performance footprint of our manufacturing processes,
U.S. EPA, state authorities, dismantlers, components on demand and we’ve we continue to invest in state-of-the-art EMISSIONS PER VEHICLE PRODUCED
steelmakers and environmental groups already used it at scale to customize facilities and new production techniques, (METRIC TONS)
to encourage the recycling of mercury regional components on our GT500 and guided by our global Carbon Reduction
switches in older vehicles. More than F-150 Raptor models without affecting Strategy for manufacturing and our
15,750 pounds of mercury has been mass production elsewhere. aspiration to achieve carbon neutrality by 5 Exceding the requirement of the IEA ETP2017
recovered to date. Beyond 2°C Scenario (B2DS) pathway for Ford’s
2050 (read more on pages 33–35). manufacturing operations.
Watch a short video about 3D printing at Ford
42 Ford Sustainability Report 2019/20 STRATEGY AND GOVERNANCE PUTTING PEOPLE FIRST PROTECTING OUR PLANET CREATING TOMORROW, TOGETHER

Sustainability at Ford is moving beyond Logistics With a Lighter Footprint


approaches for reducing negative impacts, From receiving incoming parts and
and toward an ethos that catalyzes long- components to delivering finished vehicles
term positive impacts for employees, to our dealers, our logistics operations
communities, economies and ecologies. represent a significant opportunity to
reduce our emissions.
Our strategy facilitates the integration of
cutting-edge thinking and approaches Overseen by our Material Planning and
in Ford properties to achieve results that Logistics organization but coordinated
align with associated business goals: regionally, we look for ways to minimize
the impacts of both inbound and
• A commitment to the next generation
outbound freight. Freight emissions
of sustainability innovation, prioritizing
depend on a number of factors, including
positive impacts to the health and
the mode of transport used, equipment
well-being of employees, communities,
efficiency, distance traveled and network
economies and the environment
design (see graphic below).
• An increased focus on reducing
New Central Energy Plant We seek to reduce emissions by:
embodied and operational
Our new state-of-the-art Central Energy Plant, located on the Research and carbon through a combination of • Using more fuel-efficient and lower-
Engineering campus in Dearborn, Michigan, will use significantly less energy and energy efficiency and renewable carbon modes of transport
dramatically reduce the company’s carbon footprint. energy strategies
• Updating our fleets to meet the
The plant will use 10 times less natural gas than a traditional boiler facility by • Reinforcing our image as a forward- requirements of ISO 14001 and other
producing steam as a by-product of the facility’s turbines. Advanced chiller thinking company attracting top talent regulatory standards
technology will contribute to a 35 percent reduction in energy use, while an insulated and leading-edge strategic partnerships
• Ensure component sourcing decisions
5.3-million-gallon thermal energy tank will increase energy efficiency and reduce the
• Using data-driven, science-based take into account the shipping distance
facility’s peak electricity use by 250 percent.
approaches for setting, achieving and
• Improving route planning and the
Completed in late 2019, the Central Energy Plant will be certified Leadership in Energy communicating goals in six priority
efficiency of our logistics network
and Environmental Design (LEED) Gold for its environmentally conscious design categories: health and well-being,
and operation. atmosphere, materials, water, carbon, • Measuring and reporting freight
and soil and habitat GHG emissions
• Optimizing the packaging used to protect
Ford supports the implementation of We also have an agreement to provide
components and vehicles in transit
renewable energy where the project can 100 percent renewable energy at our
be tied to the manufacturing facility, either GFL campus in Palo Alto, California. In
directly or through the local distribution addition to lowering our carbon footprint,
utility, to support local jobs, improve the the deal means that every EV mile driven
local environment and add resiliency to that was charged at our facility will be 100 REDUCING EMISSIONS FROM LOGISTICS
the local grid. percent renewable.
NETWORKS DRIVERS VEHICLES OTHER TRANSPORT
Our Michigan Assembly Plant and See how we’re helping our suppliers reduce MODES
Dearborn Truck Plant, as well as several their impact Improved route planning Training in fuel-efficient New engine technologies Using rail, sea and river
new buildings on our Research and driving techniques transport to reduce
Committed to Green Buildings Regional distribution Modifying equipment (e.g.,
Engineering and Corktown campuses will centers to deflectors, speed limiters) road miles
We continue to implement a range of
be powered by 100 percent renewable coordinate deliveries Packaging designs to Multi-modal solutions (e.g.,
best practices in our new facilities, from
energy by January 2021, using locally Routes with several increase payloads “SWAP body” trailers for
advanced water treatment and waste both road and rail)
sourced wind energy through DTE Energy’s collection points Fewer trips for lower
reduction systems to energy-saving
MIGreenPower program. This will reduce fuel consumption
technologies, continuing to minimize
our GHG footprint by 0.4 million metric
impacts on the environment.
tons annually.
43 Ford Sustainability Report 2019/20 STRATEGY AND GOVERNANCE PUTTING PEOPLE FIRST PROTECTING OUR PLANET CREATING TOMORROW, TOGETHER

WATER USE REDUCING WASTE


Water is vital to many aspects of our Water Use at Our Facilities Operating in a resource-intensive
operations. We have a responsibility FRESHWATER industry, the focus of our strategy is
to use and manage water sources to optimize efficiency and create less
Tap Water Lake Water River Water Groundwater Rainwater
efficiently and sustainably, especially in waste. We reuse or recycle any waste
water-stressed countries such as India, we do generate wherever possible,
South Africa and Mexico. rather than sending it to landfill, which
provides us with an additional supply of
A
 ccess to water and sanitation is a
valuable resources.
salient human rights issue for Ford.
NON-FRESHWATER
Wastewater Salt Water OUR GOALS
OUR GOALS (from an offsite location) (oceans and seas)
We will achieve true zero
We will make zero waste to landfill across
water withdrawals our operations.
for manufacturing
processes. We will eliminate single-
use plastics from our
We will use operations by 2030.
freshwater for human
consumption only. Depending on location, we use a variety States, the Flat Rock Assembly Plant and
of water sources in our operations. In Kansas City Assembly Plant have recycling Meeting Our Waste Targets
the long term, we are committed to and reuse systems to generate treated We are targeting a 21 percent reduction
Our Water Strategy phasing out the use of freshwater in our wastewater to supplement water use in in waste sent to landfill, a 15 percent
Our long-term approach reflects the manufacturing operations. We will achieve paint shops. reduction in general trash and a 10 percent
need to understand water challenges this by installing more non-water-based reduction in waste generation, over the
in their local context, with extraction See how we’re helping our suppliers reduce
technologies, increasing recycling and period 2018–2020. We also have an
policies and practices designed to make their impact
reuse, and relying more on alternative aspirational goal of eliminating single-
sure our operations do not adversely sources such as other companies’ use plastics from our global operations

13%
affect other users’ access to water. Our treated wastewater. by 2030.
strategy focuses on reducing water in
manufacturing, using freshwater for Reducing Operational Water Use In 2019, Ford facilities around the world
human consumption only and making The challenging target we have set REDUCTION IN ABSOLUTE OPERATIONAL sent approximately 25,000 metric tons
zero water withdrawals for manufacturing ourselves is to reduce water use per WATER USE SINCE 2018 AND 70% of waste to landfill, 26 percent more than
processes. See our progress on page 12. vehicle by an additional 30 percent REDUCTION SINCE 2000, SAVING MORE in 2018.
between 2015 and 2020. In 2019, we THAN 11 BILLION GALLONS
What Is Freshwater? reduced our absolute operational water During the year, 43 facilities and other
Freshwater is the main source of drinking use by 13 percent since 2018 and by Ford buildings in the Detroit area
water around the world and is recognized 70 percent since 2000 (saving more than temporarily lost their zero waste to landfill
as essential for human life and well-being 11 billion gallons). (ZWTL) status as a result of the abrupt
in GRI Standard 303. The GRI defines
freshwater as surface water, but our Water reuse and recycling are occurring
definition is broader, including both at plants around the world. To help us
ONE OF THE WAYS THAT FORD SHOWS IT IS A COMPANY THAT
surface water and groundwater. Our cut our water consumption further, we
CARES ABOUT ITS ENVIRONMENTAL IMPACT, IS THROUGH THE
goal is to minimize our use of freshwater continue to incorporate more water-
efficient processes and technologies. VALUE WE PLACE ON REDUCING FRESHWATER UTILIZED IN OUR
while aiming for a goal of zero – or even
positive – impact on freshwater sources in For example, at our Irapuato Transmission OPERATIONS. WE HAVE ACHIEVED SIGNIFICANT WATER REDUCTIONS IN THE
the future. Plant in Mexico, internally treated and PAST, AND WE CONTINUE TO FOCUS ON IMPLEMENTING SUSTAINABLE PRACTICES THAT
externally sourced non-potable water WILL BENEFIT OUR COMMUNITIES.”
are used. In China, treated wastewater
recycling systems have been installed at TAMBERLYN SHELL, ENVIRONMENTAL COMPLIANCE ENGINEER, ENVIRONMENTAL
four assembly plants. And in the United QUALITY OFFICE
44 Ford Sustainability Report 2019/20 STRATEGY AND GOVERNANCE PUTTING PEOPLE FIRST PROTECTING OUR PLANET CREATING TOMORROW, TOGETHER

closure of a local waste-to-energy facility.


Ford remains committed to delivering our
Going for Zero
To ensure that more of our facilities reach MINIMIZING OUR
ZWTL objectives, and has since regained ZWTL status, we continue to implement SUPPLY CHAIN
IMPACT
ZWTL status for all 43 facilities. In the a range of waste reduction initiatives.
process, 14 new facilities acquired ZWTL These include:
status, bringing the total number of global
• New technologies and programs that We rely on thousands of suppliers to
ZWTL sites up to 102 from 88.
minimize waste provide us with materials, components
In addition to our focus on reducing waste and services for our vehicles. By sharing
• Standardizing the tracking and sorting of Ohio Assembly Plant Wood
to landfill at our facilities, we are focused what has worked well at Ford, we can
waste to increase recycling and reuse Block Project
on minimizing the amount of waste help them cut costs, improve quality and
we generate. • Focusing on the five main sources of Our Ohio Assembly Plant (OHAP) become more sustainable.
waste to landfill at each facility implemented a project aimed
at reducing waste to landfill by The supply chain in our industry is
• Working with suppliers to increase the complex, with many tiers between
addressing one of its most significant
Ford Farm use of eco-friendly packaging material suppliers and manufacturers
landfilled waste streams – wood
Our commitment to sustainability spacer blocks – which are used as such as Ford. Our supply chain includes
See how we’re helping our suppliers reduce
and the circular economy in our in- frame supports during transportation. component suppliers as well as indirect
their impact
house food service business involves The blocks were constructed with suppliers of facilities, equipment,
minimizing waste through recycling Reducing the Impact of Packaging rubber stapled to the wood, which materials and services.
and composting, reducing our carbon Packaging is crucial for protecting did not allow for recycling. In 2018,
footprint and eliminating single- components on their journey to our For certain raw materials such as tin,
this waste stream resulted in more tantalum, tungsten, gold, cobalt, mica and
use plastic. facilities, and having standardized than 300,000 pounds of waste sent
containers and materials helps to rubber, suppliers are invited to support
We also design our to landfill. initiatives that improve due diligence, or
optimize payloads and lower costs. In
menus with employee The team investigated alternatives are required to verify that the materials in
many locations, we have agreements with
health and well-being and ultimately identified one the parts they supply to Ford have been
packaging providers so that containers
in mind, with a focus constructed solely of wood, and sourced responsibly.
are collected, stored and forwarded to
on local, organic and collaborated with all appropriate
other suppliers. Our long-term objectives are to:
sustainable suppliers, and choices departments to ensure the block
that reflect local cultures and a wide Working with suppliers, we always review met all safety, quality and sourcing • Engage with our supply chain
range of dietary needs. how components and production parts requirements. OHAP started using to understand our collective
will be packaged before we launch a new the new, recyclable block in 2019. environmental footprint
vehicle. Our packaging guidelines for This is a great example of doing the
PEOPLE WANT North America and Asia Pacific require • Work with selected suppliers through
right thing, by identifying alternative
TO KNOW our suppliers’ packaging to have at least target setting and cascading best
solutions to difficult challenges.
WHERE THEIR FOOD IS a neutral (if not positive) environmental practices for reducing energy and water
footprint, achieved through the use use, CO2 emissions and waste
COMING FROM, HOW
IT’S GROWN AND THAT IT’S SAFE TO of 100 percent recycled, renewable or • Make mineral sourcing within our supply
recyclable materials. chain more transparent
EAT. WE’RE CHANGING THE WAY WE
WORK PROVIDING HEALTHIER • Improve the capacity of conflict-
ALTERNATIVES AND INVITING PLACES. free smelters
IMPROVING WASTE SEGREGATION IS ESSENTIAL FOR US TO MEET
WE ARE CHANGING THE EMPLOYEE
OUR SUSTAINABILITY GOALS. AT FORD MANUFACTURING Since 2003, we have conducted 1,186
EXPERIENCE WHILE BEING MINDFUL third-party external supplier audits and
PLANTS, THROUGH PROGRAMS SUCH AS WASTE MANAGEMENT VISUAL
OF THE GROWING POPULATION AND 1,612 follow-up assessments globally
AIDS AND ON-SITE WASTE RECYCLING AUDIT, WE ARE PROUD OF WHAT
SHRINKING FARMLAND.” across all commodities.
WE DO EVERY DAY TO REDUCE OUR ENVIRONMENTAL FOOTPRINT.”
MARK FREEMAN, GLOBAL
XIAOXIAO YU, PLANT ENVIRONMENTAL CONTROL ENGINEER, ESSEX ENGINE
FOODSERVICE STRATEGY MANAGER
PLANT, CANADA
45 Ford Sustainability Report 2019/20 STRATEGY AND GOVERNANCE PUTTING PEOPLE FIRST PROTECTING OUR PLANET CREATING TOMORROW, TOGETHER

UNDERSTANDING OUR OUR SUPPLY CHAIN


Supplier Requirements
SUPPLIERS’ IMPACT OPERATIONS PRODUCTION SUPPLIERS INDIRECT SUPPLIERS
Our Global Terms and Conditions,
As well as directly managing the $110 billion global spend on goods 1,200+ Tier 1 supplier companies 10,000 supplier companies
and other supporting documents,
impacts of our own facilities, we have a and services 60+ countries 600+ commodities
require suppliers and sub-contractors
duty to help our suppliers reduce their 60+ Ford-owned assembly and 4,400+ supplier sites
to comply with environmental powertrain manufacturing sites6
environmental footprint. 100,000+ parts manufactured
requirements for all aspects of
To better understand our suppliers’ our product’s life cycle. We ask 500+ commodities sourced

GHG emissions and water use, we our suppliers to extend the same
survey a selection of them every year, expectations to their own suppliers.
using the CDP Supply Chain program’s PACE: One Step at a Time
• Acquisition of raw materials 1
Climate Change and Water Security
questionnaires. These two surveys provide • Manufacturing Create Roadmap
us with qualitative and quantitative Suppliers create long-
• Packaging
information about how our production term plans for improving
• Distribution environmental performance
suppliers, as well as indirect suppliers
of logistics and information technology • Operation
5
services, manage environmental risks and • Reuse/end-of-life considerations Share Best Practices
maximize opportunities. Best practice examples 2
For human rights requirements for Collect Data
are updated and shared
The selection of suppliers is based on suppliers, see Responsible Sourcing of Baseline environmental
among our suppliers and
their emissions or water intensity, their Raw Materials. data is recorded
our own facilities
geographic footprint and the strategic
nature of their relationship with Ford.
can be replicated. We encourage our Tier 1
SUPPLIERS suppliers to cascade the information
2018 2019 through their own supply chains.
Integrating action on 84% 89%
For example, PACE participants expect
climate change into their
business strategy to save an estimated 470 million gallons
of water in their operations from 2019 to
Reporting a water-related 81% 83% 2030, according to data collected in 2020.
target or goal This will be achieved through efficiency
Reporting an emissions 73% 73%
improvement projects such as recycling
reduction target or goal cooling water and considering life cycle
costing when replacing water-using 4
equipment. Suppliers in the PACE program Report Reductions 3
Building Supplier Capability Performance improvements are Implement Practices
Through PACE also expect to save 680,000 metric tons
of CO2 over the next five years. measured and progress against Successful approaches are
We can’t tackle environmental issues the baseline data is reported selected and replicated
alone and our impacts don’t stop at the In addition to the full PACE program,
gate – the suppliers who make parts and Ford launched a new streamlined version
components for us have their own impacts in 2019, FastPACE, in the Asia Pacific
on the world around us. Our supply chain region. With the success of participating
sustainability program, Partnership for A FastPACE suppliers completing the Excel- IT’S IMPORTANT TO US AS A BUSINESS THAT WE MINIMIZE OUR
Cleaner Environment (PACE), is designed based toolkit, which included hundreds of IMPACT ON THE WORLD AROUND US. THAT CAN ONLY BE
to reduce the overall environmental leading practices and actions to address
impact of Ford’s key supply chain partners ACHIEVED WITH SUPPLIERS THAT ARE WILLING TO SHARE THAT
air emissions, energy and water use, we
(see graphic opposite). RESPONSIBILITY AND WORK WITH US TO REDUCE OUR COLLECTIVE
plan to continue and expand the program.
ENVIRONMENTAL FOOTPRINT.”
The PACE program enables us to share Both PACE and FastPACE programs
the best practice examples we’ve encourage suppliers to set and MARY ELLEN BRIDGES, PURCHASING MANAGER, SUPPLY CHAIN SUSTAINABILITY
implemented across our business with 50 report progress toward long-term
strategic suppliers so that their benefits reduction targets. 6 Does not include joint ventures.
46 Ford Sustainability Report 2019/20 STRATEGY AND GOVERNANCE PUTTING PEOPLE FIRST PROTECTING OUR PLANET CREATING TOMORROW, TOGETHER

Our ABF Network Honoring Supplier Excellence LEAR IS COMMITTED TO DOING ITS PART TO ACHIEVE A
108 suppliers: At our 21st annual World Excellence SUSTAINABLE FUTURE FOR OUR ENVIRONMENT, OUR BUSINESS
Awards, held in May 2019, 53 AND OUR CUSTOMERS. AS A SUPPLIER, LONG-TERM RELATIONSHIPS WITH
• 79 production suppliers and 29
suppliers from around the world OUR CUSTOMERS ARE ESSENTIAL, AND OUR PARTICIPATION IN FORD’S
indirect suppliers
received accolades for outstanding
PACE PROGRAM ENABLES OUR ACCESS TO BEST PRACTICES, DRIVING COLLABORATION,
• 14 of these are minority-, veteran- performance in the fields of safety,
quality, sustainability, diversity TECHNOLOGY DEVELOPMENT, MUTUAL PROFITABILITY AND COLLECTIVE IMPROVEMENT
and women-owned suppliers
and smart technology. Five supply OF THE GLOBAL AUTOMOTIVE ENVIRONMENTAL FOOTPRINT.”
Of our 79 production suppliers: chain partners also received Special
JACK NUNES, GLOBAL VICE PRESIDENT, HEALTH, SAFETY, ENVIRONMENTAL
• 100% have codes of conduct Recognition awards.
MANAGEMENT AND SUSTAINABILITY, LEAR CORPORATION
aligned with our Policy Letter 24
• 82% have governance systems
covering their operations and
Our ABF suppliers
supply chains
We engage with our key strategic suppliers, representing about 65 percent of our
Download a list of our ABF Suppliers annual spend, through our ABF to manage human rights issues with ABF suppliers:
• Ford verifies that they each have a code of conduct that aligns with our own Policy
This dialogue helps drive quality and Letter 24
• We were the first automaker to join
innovation, identify synergies between
the Responsible Business Alliance • Suppliers provide training to ensure employees understand and comply with the
businesses and encourages collaboration
(RBA), and have participated in the code of conduct
in areas such as ethical business
Environmental Science Work Group to
practices, working conditions and • Ford validates its processes to ensure ongoing alignment
implement best practices and cross-
responsible sourcing.
industry collaboration. Having adopted • Suppliers verify that their own supply chain partners comply with our shared
Collaborating With Industry Partners the Validated Audit Protocol, we standards and expectations
To amplify our efforts and encourage conducted 23 new audits across a range
collaboration throughout the automotive of suppliers in 2019 and helped them to
sector, we participate in several improve working conditions. Read more
industry forums. about the RBA audit process
• Through the Suppliers Partnership for
the Environment – a collaboration of
automotive OEMs and suppliers with the
U.S. EPA – we are working to advance
• As a founder of the AIAG Environmental responsible battery management at
Sustainability Advisory Group and vehicle end-of-life, increase biodiversity
member of its Greenhouse Gas Work and reduce waste
Group, we have worked with other OEMs
to develop supplier training programs
covering GHG emissions, Scope 3
emissions and water management,
with guidance on calculations and
strategy development

253 208
SUPPLIERS (64% OF FORD SPEND) SUPPLIERS (60% OF FORD SPEND)
SURVEYED USING CDP CLIMATE CHANGE SURVEYED USING CDP WATER SECURITY
QUESTIONNAIRE (83% RESPONSE RATE) QUESTIONNAIRE (78% RESPONSE RATE)
47 Ford Sustainability Report 2019/20 STRATEGY AND GOVERNANCE PUTTING PEOPLE FIRST PROTECTING OUR PLANET CREATING TOMORROW, TOGETHER

CREATING SCALING UP
We are electrifying our most our aspiration to become carbon neutral
popular nameplates. by 2050, we plan to deliver affordable EVs
ELECTRIFICATION
TOMORROW,
To meet the global demand for lower-carbon at scale, focusing on China, Europe and
transport, we are delivering a growing portfolio North America.
of affordable hybrids, plug-in hybrids and all-

TOGETHER
Having committed to producing The adoption of battery electric vehicles
electric vehicles. electrified propulsion options for (BEVs) will increase as potential barriers,
all future Ford nameplates, we are
We are investing in self-driving technology. such as cost, vehicle offerings, charging
investing more than $11.5 billion infrastructure and consumer education,
To help make a self-driving vehicle service
globally in electrified vehicles come down. The success of exciting and
commercially viable, we’re investing in
We believe that the freedom (EVs) and charging infrastructure capable fully electric vehicles relies on
research, forging partnerships and testing the
of movement drives through 2022. leveraging our scale and technologies,
technology on the streets of several U.S. cities.
human progress. So, we’re amplifying the attributes our customers
We’re focused on cities and citizens. OUR ELECTRIFICATION love, redesigning our business models and
creating smart vehicles To improve all aspects of urban transportation,
STRATEGY building alliances with key partners.
we’re exploring ways to enable vehicles, other
in a smart world to solve Global demand for cleaner To support our electrification strategy, we
road users and infrastructure to communicate
today’s – and tomorrow’s – with each other, and working in partnership transportation is rising with several are investing in manufacturing plants such
countries, including China, India, France as our state-of-the-art facility in Valencia,
mobility challenges. with municipal authorities to solve their
and the U.K., announcing plans to
specific mobility issues. Spain, which will now make lithium-ion
phase out vehicles powered solely by batteries as well as producing the new
We put customers at the heart of combustion engines and fossil fuels by S-MAX Hybrid and Galaxy Hybrid models.
I’M EXCITED BY THE ROLE THAT everything we do. 2040. In support of that goal, as well as
FORD CAN PLAY IN USING In today’s increasingly connected world,
INNOVATIVE, DISRUPTIVE TECHNOLOGY customers expect more personalized ANNOUNCED FORD GLOBAL ELECTRIFIED LINEUP
TO MAKE THE WORLD BETTER. experiences. So, we’re reimagining every
touchpoint and interaction to make their lives FULL HYBRIDS (HEVs) PLUG-IN HYBRIDS (PHEVs) ALL-ELECTRIC (BEVs)
CONNECTIVITY, AUTOMATION,
simpler, easier and more enjoyable. Propulsion ICE, electric motor with a ICE, electric motor with High-voltage electric motor
ELECTRIFICATION, DATA SHARING – Sources lithium-ion battery system a high-voltage lithium- powered by a lithium-ion
THESE THINGS ARE CHANGING THE We use data and analytics to ion battery battery pack

BUSINESS OF MOBILITY, AND MAKING drive innovation. Benefits When using the electric motor Battery can be charged Zero CO2 and other emissions
US RETHINK OUR VALUE ADD AS
Having invested in creating connected vehicles, and battery system only (e.g., from a household or public during use
a key priority remains the harnessing of the low speeds, short distances), electric outlet Instant torque
A COMPANY.” no gasoline is used
data they generate and using it to create even When the battery is depleted, Battery can be charged
HAU THAI-TANG, CHIEF better vehicles and services in the future. Can run on battery power, on the vehicle functions as a from a household or public
ICE power, or both standard HEV electric outlet
PRODUCT DEVELOPMENT AND Regenerative braking system Accrues charge through
PURCHASING OFFICER captures energy to recharge regenerative braking
OUR ASPIRATIONAL GOAL the battery Tailpipe emissions can
 e aspire to drive human progress by
W reach zero when running on
battery power
providing mobility and accessibility
for all.

Sustainable Development Goals


Through our work in creating tomorrow, together,
we are contributing to the following United
Nations Sustainable Development Goals:
48 Ford Sustainability Report 2019/20 STRATEGY AND GOVERNANCE PUTTING PEOPLE FIRST PROTECTING OUR PLANET CREATING TOMORROW, TOGETHER

Electrifying Our Vehicles


Our holistic approach includes electrifying
our most popular nameplates, providing
a profitable portfolio of hybrids, plug-
in hybrids and all-electric vehicles to Supporting Charging Infrastructure
meet our customers’ evolving needs and One of the biggest barriers to customers
preferences, as outlined in the table on considering an EV has been the fear of
the previous page. These include our all- running out of power or the inability to find
electric Mustang Mach-E in North America a charging site.
and Europe, an all-new Ford Explorer
Plug-In Hybrid for customers across Addressing that concern, we’re offering
Europe, Ford Escape and Lincoln Aviator our all-electric vehicle customers in North
PHEVs, and a broad range of EVs in China, America access to the FordPass Charging
including the new Territory BEV. network, North America’s largest EV public It’s Electrifying: The Mustang Mach-E
charging network. More than 13,500 places For the first time in more than 50 years, Ford is expanding the Mustang lineup with
Commercial vehicles are an important part to charge and almost 40,000 charge the all-new, all-electric Mustang Mach-E, which brings to life how we are rethinking
of our plans. The all-electric Ford Transit plugs – more than any other automotive manufacturing, product development and people-centered design.
is intended to help lead the transition to manufacturer – are accessible via the
carbon neutrality and help businesses FordPass app.1 Coming to North America and Europe, the Mustang Mach-E SUV has a targeted
achieve their sustainability goals while EPA-estimated range of at least 300 miles,2 and is estimated to add an average of
helping cities improve air quality and Helping make charging an effortless 61 miles of range in approximately 10 minutes while charging on DC Fast Charging
reduce noise levels. There are also lower experience for EV drivers in Europe, station with the extended range battery and rear-wheel drive. 3
costs and possible vehicle tax incentives Ford has also joined several other
manufacturers to create the IONITY As well as high-performance, zero-emission driving, the Mustang Mach-E offers
for owners when compared to internal
consortium. Through this pan-European customers the SYNC® 4A communications system and the latest connected vehicle
combustion engine (ICE) vehicles. We plan
joint venture, we aim to build a network technology, including over-the-air update capability for quick and easy wireless
to introduce the Transit, and an all-electric
of 400 fast-charging stations in key upgrades that enhance quality, capability and convenience.4
F-150 pickup, by mid-2022.
locations by 2020, with the first ones
For further information, please see the already operational.
Improving Fuel Economy section on Our wider efforts to improve charging • Customers being able to monitor
page 36. access include: charging at home and easily find and
pay for one-stop charging at FordPass
• New Ford all-electric vehicles, including
Charging Network stations, through the
the Mustang Mach-E arriving in the U.S.
FordPass app or in each vehicle’s on-
at the end of 2020, coming with a Ford
screen dashboard
Mobile Charger that can charge using
FOR CUSTOMERS WHO OWN, OR ARE CONSIDERING, AN 120V and 240V outlets; for those with • We are partnering with EV charging
ELECTRIFIED VEHICLE, CHARGING AWAY FROM HOME IS A MAIN longer commutes or who want greater provider TELD and Anyo in China to
peace of mind, a Ford Connected Charge extend access to public charging
CONCERN. BUT BY OFFERING INDUSTRY-LEADING CHARGING ACCESS
Station at home can fully power a stations, with FordPass already
ACROSS NORTH AMERICA AND EUROPE, WE ARE ENABLING MORE
vehicle overnight connecting Ford owners with 150,000
CUSTOMERS TO CONFIDENTLY ENJOY THE BENEFITS OF OWNING AN public charging sites in more than 300
ELECTRIC VEHICLE.” • A collaboration with Amazon in the
cities across the country
U.S. for installation services, from
MATT STOVER, DIRECTOR, CHARGING/ENERGY SERVICES 240V outlets to the Ford Connected
Charge Station

1 Based on original equipment manufacturers (OEM)/automotive manufacturers that sell all-electric vehicles and have publicly announced charging networks. Department of Energy data used. FordPass, compatible with select smartphone
platforms, is available via a download. Message and data rates may apply.
2 Based on full charge when configured with optional Extended range battery and rear-wheel drive. Actual range varies with conditions such as external elements, driving behaviors, vehicle maintenance, and lithium-ion battery age. Final
EPA-estimated ratings available in the 2020 calendar year.
3 Range and charge time based on manufacturer computer engineering simulations and EPA-estimated range calculation methodology. The charging rate decreases as battery reaches full capacity. Results may vary based on peak charging
times and battery state of charge. Actual vehicle range varies with conditions such as external elements, driving behaviors, vehicle maintenance, lithium-ion battery age and state of health.
4 FordPass Connect (optional on select vehicles), the Ford Pass app and complimentary Connected Service are required for remote features (see FordPass Terms for details). Connected service and features depend on compatible AT&T
network availability. Evolving technology/cellular networks/vehicle capability may limit functionality and prevent operation of connected features. Connected service excludes Wi-Fi hotspot.
49 Ford Sustainability Report 2019/20 STRATEGY AND GOVERNANCE PUTTING PEOPLE FIRST PROTECTING OUR PLANET CREATING TOMORROW, TOGETHER

SELF-DRIVING deliver unmatched capability, scale and


reach. We are also building a new electric
PRIORITIZING SAFETY MOBILITY
VEHICLES SOLUTIONS
Safety is a top priority for us. We are
vehicle for Europe, based on Volkswagen’s
focused on using the best technology
Modular Electric Drive toolkit beginning in
to create a fully integrated self-driving
Our goal is to use self-driving technology 2023, and we have signed an agreement Our vision for future urban mobility
system that can be manufactured at scale
to make people’s lives better in the to collaborate on commercial vehicles involves addressing challenges such
for safe and reliable deployment.
cities we operate in. Self-driving from 2022. as climate change, air pollution and
vehicles have the potential to deliver When testing self-driving vehicles, Ford congestion. Parking, traffic flow, public
Ford’s acquisition of Michigan-based
new levels of accessibility, affordability and Argo AI implement strict precautions transport and deliveries can all be
Quantum Signal in July 2019 strengthens
and convenience, particularly in to ensure safety every step of the way. In radically improved if we coordinate all
our expertise in real-time simulation
urban environments. addition to using simulation and proving- forms of transportation.
and algorithm development for our
ground testing before testing on public
Transportation as a Service (TaaS)
roads, all of Ford and Argo AI’s self-driving
TOMORROW’S MOBILITY platform, and to enhance the customer
test vehicles currently have a safety driver OUR GOAL
TODAY experience inside the vehicle.
and co-pilot on board. We aspire to drive
Every city has its own transportation human progress by
Read our safety report, A Matter of Trust,
challenges, which require tailored providing mobility and
for more information.
responses. So, we are working with city accessibility for all.
and community leaders to build services
that are safe, reliable and address their
specific needs as part of a broader THE WORLD IS CHANGING
transportation solution.
With a growing shift away from vehicle
Whether moving people or goods, a self- ownership toward services, we are investing
driving service must be built with trust and in our digital capabilities to develop mobility
safety in mind. That is why we are focused and connected vehicle services. Two core
on delivering every part of a sustainable, elements underpin everything we’re doing to
scalable service, from the development ensure our mobility solutions benefit cities
of the necessary software with our and citizens:
technology partner Argo AI to building a
• Focusing on the real-world experiences
best-in-class customer experience.
of our customers to making movement
Working closely with customers, industry more accessible and efficient
and government officials, we plan to
• Reassuring owners and users of our
spend more than $4 billion through 2023
products and services that their data is
on our self-driving business. This includes
secure and being used to improve mobility
a $1 billion investment in our technology Testing Self-Driving Vehicles These vehicles are learning how
partner Argo AI. We have tested self- to navigate while predicting what We have engaged many experts outside
driving technology on the streets of Ford and Argo AI are rolling out real-
other drivers may do in a variety of Ford and created our own Technology
several U.S. cities, most recently in Austin, world testing across cities in the United
conditions and aiming to drive like a Advisory Council to gain further insight
Texas (see opposite). States to make our self-driving system
human driver. The collective knowledge into how the future might shape today.
(SDS) smarter.
we’re gaining by operating in six very The main trends in technology align with
TECHNOLOGY PARTNERSHIPS We have committed to launching a different locations is a big factor in why our core competencies, including digital
self-driving service in Austin, Miami- we’re making great progress toward networks, trust and advanced technology.
In the latest development of our global
Dade County and Washington D.C. and successfully launching our self-
alliance with Volkswagen, the German
automaker has joined Ford in investing in
are testing our self-driving vehicles in driving business. COMMUNICATION IN
these cities, as well as in Detroit, Palo
Argo AI. This allows both companies to Watch a video about how Ford is building THE CLOUD
Alto and Pittsburgh. Each city represents
integrate Argo AI’s self-driving software a self-driving business We are leading efforts to build a new vision
a unique opportunity to expose the
into our own vehicles across the United for urban transport – one that focuses on
system to different road infrastructure
States and Europe. While both companies the individual needs of people who live
design, driving behavior and even traffic
remain independent, teaming up with and work in our cities.
light placement.
Argo AI on this technology will allow us to
50 Ford Sustainability Report 2019/20 STRATEGY AND GOVERNANCE PUTTING PEOPLE FIRST PROTECTING OUR PLANET CREATING TOMORROW, TOGETHER

Ford Trends Report 2020 THE PARTNERSHIPS WE ARE PUTTING IN PLACE WITH TECHNOLOGY
In the eight years since we first published an annual trends report, one theme has COMPANIES AND OTHER AUTOMAKERS ARE VERY POWERFUL. IN
remained consistent: the role of trust in society. Continuing to build trust in brands, ADDITION TO REDUCING DEVELOPMENT COSTS AND CREATING ECONOMIES
institutions and relationships to better serve our customers, communities and the planet OF SCALE, WE CAN IMPROVE THE CUSTOMER EXPERIENCE WITH MORE
remains a dominant theme in the 2020 Trends Report.
RAPID INNOVATION ON NEW TECHNOLOGIES AND VEHICLE OFFERINGS.”
NOBODY CAN PREDICT THE FUTURE, BUT I BELIEVE THAT SOME
RAJ SARKAR, DIRECTOR, BUSINESS STRATEGY
OF US CAN CREATE IT. AND YOU CAN ONLY DO THAT IF YOU
HAVE MEANINGFUL, PURPOSEFUL CONVERSATIONS ABOUT WHAT SORT
OF FUTURE IS MOST BENEFICIAL TO YOU OR YOUR ORGANIZATION.”
A Quantum Leap in
SHERYL CONNELLY, CHIEF FUTURIST Combatting Congestion
We’re exploring the potential for
mitigating congestion through
By creating new mobility services and technology. C-V2X can communicate with intelligent route planning. To do this,
solutions, we are improving people’s other vehicles, cyclists, pedestrians and we need extensive computing power,
lives and solving major environmental road infrastructure such as traffic lights, which is where our research pilot with
challenges. Core to this effort is the as well as construction sites and other Microsoft comes in.
Transportation Mobility Cloud (TMC), a challenging road conditions, to optimize We leveraged techniques inspired by
cloud platform that provides the real- safe, efficient travel. quantum computing to model improving
time data and operations of connected mobility in busy urban environments.
We are committed to deploying C-V2X in
vehicles. The TMC gives developers Scientists have simulated thousands
China in 2021 and in all new U.S. vehicle
and mobility providers tools to better of vehicles requesting identical routes
models from 2022. But to achieve its
understand, control and remotely update across Seattle and, when compared
full potential, C-V2X must be widely
vehicles, thus enabling them to create to “selfish” routing, balanced routing
deployed within transportation systems;
a more sustainable, efficient and safe has the potential to reduce both
this requires automakers, government
transportation network. congestion and commuting time. Initial
agencies and other partners to support
Read more about how we’re using its potential. results are promising, and we continue
data analytics to work with Microsoft to evaluate
The Federal Communications Commission further opportunities. Transforming Michigan
C-V2X: It’s Good to Talk (FCC) recently proposed to allow C-V2X Central Station
Enabled through the rapidly developing 5G to operate alongside Wi-Fi in a portion of We are investing $740 million to
network, we continue to lead the industry’s the wireless spectrum set aside for safety safety applications so we’re urging the restore Michigan Central Station and
rollout of next-generation vehicles using purposes. Our lab and field tests show FCC to preserve the entire band for safety several surrounding properties to
cellular vehicle-to-everything (C-V2X) that Wi-Fi signals compromise C-V2X applications such as C-V2X. create an innovation hub in Corktown,
Detroit’s oldest neighborhood. Our
Dearborn campus transformation
CITY SOLUTIONS will bring together thousands of
WHAT AN EXCITING TIME TO BE AT SUCH AN ICONIC COMPANY! We’re working to help cities understand Ford employees, entrepreneurs
IN EUROPE, WE ARE FOCUSING OUR MOBILITY EFFORTS ON their transportation needs and explore and partners in modern, mixed-use
ENABLING OUR COMMERCIAL CUSTOMERS TO MOVE AND WORK IN CITIES how new technology and data can support spaces designed to foster innovation
IN A SUSTAINABLE WAY. WE ARE ACTIVELY RUNNING PILOTS WITH OUR better urban mobility for all. and engagement. The Corktown
CUSTOMERS ON LAST-MILE DELIVERIES, PARKING AND SHARING COMMERCIAL VEHICLE Crowdsourcing Solutions: The area will serve as a catalyst for new
DATA WITH CITY STAKEHOLDERS. THE TEAM ARE PROUD TO BE HELPING TO DEFINE City:One Challenge ideas, and a proving ground for our
connected vehicles, city solutions
FREEDOM OF MOVEMENT FOR THE NEXT CENTURY, BY IMAGINING, DESIGNING AND
Founded on the idea that we can solve and new mobility concepts, helping
CREATING SOLUTIONS WITH OUR CUSTOMERS AT CENTER OF EVERYTHING WE DO.” today’s mobility needs one person and one us better understand the role
SARAH-JAYNE WILLIAMS, DIRECTOR, SMART MOBILITY EU solution at a time, the City:One Challenge transportation plays in revitalizing
provides a platform designed to empower our cities.
city officials, companies and communities
51 Ford Sustainability Report 2019/20 STRATEGY AND GOVERNANCE PUTTING PEOPLE FIRST PROTECTING OUR PLANET CREATING TOMORROW, TOGETHER

to collaborate on new mobility solutions


at the local level. Having supported pilot
Accessibility: Key to shifting culture and
creating opportunities is understanding that CUSTOMER
projects in Miami, Pittsburgh and Grand
Rapids, we focused on meeting local
disability intersects all areas of life. Many
of our Challenge finalists aim to enhance
EXPERIENCE
mobility needs in four new locations in equity and provide a platform for innovation We’re reimagining every single part of
2019: Indianapolis, Austin and Mexico City, and inclusion: the customer journey and giving them
as well as the redevelopment of Michigan experiences that make their lives easier,
• In Indianapolis and Detroit, pilot winner
Central Station in Detroit. The winners are worry-free and more enjoyable.
AbleLink Smart Living Technologies
now launching pilots in each city.
will deploy its Wayfinder technology, Great products and services alone will
Collaboration With Local Community which uses GPS and personalized visual, not be enough to achieve our ambition
Groups: We have teamed up with 400 audio and vibration prompts to help to become the world’s most trusted
Forward, an initiative that supports the individuals with cognitive disabilities company. It will also require a deep
next generation of female architects, with travel independently on fixed-route understanding of customer insights,
a focus on African American girls, through public transportation behaviors and lifestyles to create
mentorship and financial assistance. ever-better experiences. Only through
• In Austin, Tappy Guide will provide mobile-
Through the partnership, nine young knowledge and empathy can we build
enabled navigation guides for the visually
women facilitated community working Delivering the Final Step With customer loyalty over time, so we are
impaired, hearing impaired, senior citizens
sessions for the City:One Michigan Central Agility Robotics focusing on the needs of each consumer.
and others with mobility impairments
Station Challenge.
Continuing our existing partnership
Watch a short video about the BUILDING TRUST
Racial Equity: We have provided a with Agility Robotics to explore how
City:One Challenge
platform for entrepreneurs to understand commercial vehicle customers can Trust is about managing risk and
how systemic racism impacts health and make warehousing and deliveries uncertainty, and our Trust Framework is built
mobility for low-income communities and more efficient and affordable, Ford on honesty, expertise and care. We need to
communities of color in Austin’s eastern has acquired two upright, walking display these now, in the near future and
neighborhoods. Working with the City of “Digit” robots. over the long term to build trust. The critical
Austin’s Equity Office, the City of Austin enabler is giving customers, suppliers and
Transportation Department and Joyce
Digit folds itself up for easy storage TransLoc, DoubleMap and
in the back of a vehicle and, on Ride Systems Merge Under other stakeholders relevant information to
James Consulting, we engaged the city’s be transparent and open – but always with
Challenge finalists in a two-day workshop
reaching its destination, can complete Ford Mobility
the delivery process “on foot.” If it data privacy and safety in mind.
that included racial equity training, followed The three most trusted names
encounters an unexpected obstacle, in transit technology – TransLoc, As part of our human-centered design
by a panel discussion with the Black Mamas
it can access additional sensing and DoubleMap and Ride Systems – process, we are creating cross-functional
Community Collective. The experience gave
computing support from the self- are now all part of Ford Mobility. teams with a wide diversity of expertise
finalists new insights as they developed
driving vehicle. They have come together to deliver to address customers’ needs. Ultimately,
their proposals.
The partnership builds on existing mission-critical solutions for transit this will enable us to design vehicles and
collaborations in self-driving delivery providers, including flexible dynamic services that delight customers and help
vehicles with Postmates and Walmart. routing, fixed route systems and them feel more in control. For example,
planning services. we’ve developed an advanced suite of driver
assist technology – Ford Co‑Pilot360TM –
The one-stop-shop platform serves that helps reduce stress and instill driver
more than 1,500 locations, including confidence in our vehicles.
THROUGH THE CITY:ONE CHALLENGE, WE AIM TO ELEVATE
municipalities, cities, hospitals,
airports, universities and corporate Watch a short video of Jim Hackett
COMMUNITY VOICES AS THEY UNDERSTAND FIRSTHAND THE addressing Ford customers
business campuses. The group is the
CHALLENGES OF MOVING AROUND. WHEN WE LISTEN TO MULTIPLE largest single provider of agency-
POINTS OF VIEW FROM THE COMMUNITY AND WORK WITH THEM ON owned microtransit systems for
MOBILITY DESIGN, WE HELP CREATE A STRONGER FOUNDATION FOR BUILDING municipal transit agencies in the
MOBILITY SOLUTIONS WITH IMPACT THAT CAN BE RELEVANT TO EVERYONE.” United States, and their fixed route
and on-demand systems are at the
GINA SCHRADER, CO-FOUNDER AND OPERATIONS LEAD, CITY INNOVATIONS, core of cities and towns, as well as on
FORD MOBILITY university and business campuses.
52 Ford Sustainability Report 2019/20 STRATEGY AND GOVERNANCE PUTTING PEOPLE FIRST PROTECTING OUR PLANET CREATING TOMORROW, TOGETHER

• Mobile Service Units: We continue to


WE ARE EMBRACING CO-LOCATED AND CROSS-FUNCTIONAL expand our mobile maintenance pilot
program, which brings Ford-quality
TEAMS TO LEVERAGE USER INSIGHTS AND TECHNOLOGIES TO
tools and technicians out to retail and
MAKE LIFE BETTER FOR OUR CUSTOMERS, AND BUILD DEEPER, LONGER- commercial fleet customers in the U.K.,
TERM RELATIONSHIPS WITH THEM BASED ON TRUST.” the United States and Argentina. Their
most important work involves keeping
JIM HACKETT, PRESIDENT AND CHIEF EXECUTIVE OFFICER
first responders and other critical
support vehicles on the road during the
IMPROVING THE CUSTOMER COVID-19 crisis.
EXPERIENCE Spin Expands to Europe
• Ford Credit: In the face of uncertainty
We’re listening to our customers to Ford acquired San Francisco-based and multiple shelter-in-place orders,
ensure that each interaction addresses electric-scooter company Spin in late Ford Credit offered payment deferrals
unmet needs, exceeds their expectations 2018, meeting a need for convenient, and zero percent financing options on
and builds long-term satisfaction. That cost-effective micro-mobility for most new models, along with online
includes everything from a visit to the those first and last miles of a journey. financing and purchasing at more than • Reducing Downtime: In Europe, we’re
dealership or a click on our website to 500 dealerships. working on a pilot to reduce vehicle
Already collaborating with cities
getting a repair. Our efforts to improve service and repair time for commercial
and universities around the United • Transparent Workshop: In China,
every experience are outlined below. and fleet customers. The pilot empowers
States to offer an affordable, reliable customers can now follow their vehicles a dedicated specialist team with a range
Watch a short video with Elena Ford and sustainable alternative for short through a service, using the WeChat mini- of data tracking the entire breakdown
discussing the customer experience trips, the service is coming to Europe program on their phone or digital screens and repair journey to help customers get
shortly. A fleet of dockless scooters is in participating dealerships. Cameras
• FordPass App and FordPass back on the road.
destined for Cologne, Germany, and with license plate recognition provide
Rewards Program: FordPass allows other cities in the country will follow. • Electrification: Our all-electric Mustang
real-time footage and notify customers
customers to receive personalized Mach-E will come with a suite of
Spin has also announced plans to at each stage of the process.
information, monitor their vehicles, innovative technology, including Phone
get maintenance reminders and make invest in hundreds of additional • Augmented Reality Service Tool: As A Key, a 15.5-inch touch screen and
service appointments. In North America, charging hubs around the We were the first automaker in Latin next-generation SYNC that adapts
the 4 million FordPass Rewards loyalty United States. America to use augmented reality to to customer behavior. Over-the-air
program members can earn and redeem support vehicle maintenance. The updates can add enhancements and
points toward maintenance, parts, special glasses connect dealerships features while the vehicle sits in the
services and new vehicle purchases. • No-Touch Safe Service: During the with centralized Ford service engineering driveway. Customers will also have
COVID-19 outbreak, Ford dealerships specialists, reducing maintenance times access to more than 13,500 charging
• New Contact Center Model: Our
have gone to great lengths to avoid direct and improving the accuracy of more stations across North America through
new U.S. contact center in Houston
customer contact and to fully disinfect complex diagnostics. the FordPass network (see page 48 for
introduced an “own the contact” model
as a blueprint for all Ford call centers vehicles before and after services, further information).
globally. Based on best practices from repairs, test drives and sales. More
Read more about our response to the
Lincoln, specially trained agents stay than 90 percent of Ford dealers in the
COVID-19 outbreak
with the customer until their issue is United States now offer remote pickups
resolved rather than transferring them and deliveries.
to other colleagues. The Houston center • Ford Signature Dealerships: New
currently serves U.S. truck owners but signature dealerships deliver a fresh look,
the system will be expanded to SUV and greater transparency and an improved WE ARE JUST AS PASSIONATE ABOUT CUSTOMER EXPERIENCE AS
car customers. experience. We will have 300 Ford WE ARE ABOUT OUR VEHICLES. IT’S ABOUT BEING THERE FOR
Signature dealerships by the end of 2020, OUR CUSTOMERS AS THEY USE OUR PRODUCTS AND SERVICES, AND
and thousands more are in the pipeline. EARNING THEIR TRUST AT EACH STEP ALONG THEIR JOURNEY. OUR GOAL
IS TO CREATE CUSTOMER ADVOCATES BY DELIVERING OWNER AND USER EXPERIENCES
WITH HONESTY, EXPERTISE AND CARE.”

JORGE VIVAS, DIRECTOR, GLOBAL CUSTOMER EXPERIENCE STRATEGY


53 Ford Sustainability Report 2019/20 STRATEGY AND GOVERNANCE PUTTING PEOPLE FIRST PROTECTING OUR PLANET CREATING TOMORROW, TOGETHER

ENGAGING EMPLOYEES GLOBAL DATA


ANALYTICS AND
One of our top priorities over the past GENERATING MEANINGFUL, ACTIONABLE INSIGHT FROM DATA
year has been championing customer TAKES HIGH-QUALITY DATA SCIENCE COMPLETED BY SOME VERY
experience internally. Through employee
events and campaigns, we’re helping
PRIVACY SMART PEOPLE. LUCKILY FOR FORD AND FOR OUR SAFETY INSIGHTS
PRODUCT, WE’RE FINDING A WAY TO GENERATE BUSINESS-CRITICAL
foster a customer-centric mindset and
The information that customers provide INSIGHT THROUGH THE APPLICATION OF WORLD-CLASS DATA ANALYTICS.”
educating employees that customer
helps us deliver great products, a
experience is everyone’s responsibility. For CALLAHAN COPLAI, PRODUCT OWNER, SAFETY INSIGHTS, FORD CITY SOLUTIONS
personalized experience and continued
example, our Creating Tomorrow, Together
innovation. We respect customer privacy
Open House at our Dearborn Headquarters
and use the data they share responsibly.
in January 2020 included a special exhibit
and vision mapping workshop that helped Safety Insights
employees connect their work to the DATA PRIVACY AND SECURITY
Safety Insights is an award-winning,
customer experience. Identified as one of our salient human patent-pending traffic safety analytics
rights issues, we take our responsibilities tool built entirely by Ford that can help public agencies save time, money and, most
We also launched an Employee, Friends
concerning data protection, privacy and importantly, lives.
and Family Support Program in 2020
security seriously. Our companywide
that provides all salaried employees in
governance infrastructure drives a holistic Through an intuitive web-based platform, Safety Insights shows traffic flow, crash
the United States with access to quick,
approach that includes policies focused on events and connected vehicle safety events such as hard braking or acceleration.
preferential assistance with a vehicle
transparency, responsible data handling Users are able to visualize safety data, identify hotspots and simulate potential
question or issue by simply filling out an
and use, and choice, where appropriate. solutions all in a single easy-to-use tool. The system incorporates analytical
online form. This program will be rolled out
methods found in the Highway Safety Manual, as well as algorithms developed by
to other regions over time. D
 ata protection, privacy and security is a our GDI&A team.
salient human rights issue for Ford.
OVER THE PAST FOUR YEARS, MORE Safety Insights originated as RoadCode, a Ford submission through the U.S.
We have adopted the Automotive Department of Transportation’s Solving for Safety Competition that ended in
THAN 1,000 U.S. DEALERS HAVE INVESTED Consumer Privacy Protection May 2019. The beta version of Safety Insights is currently being used by 10 public
A TOTAL OF $2 BILLION TO UPGRADE Principles developed by the Alliance agencies with more than 80 users, with broader rollout plans being led by Ford’s City
THEIR FACILITIES TO ENHANCE THE for Automotive Innovation. We are also Solutions team.
CUSTOMER EXPERIENCE. actively engaged with the Automotive
Cybersecurity Industry Consortium
(ACIC), a collaboration between the auto Our 1,000-strong Global Data, Insight External Recognition
industry, research organizations and and Analytics (GDI&A) team uses data • In 2019, our Safety Insights tool earned
government to strengthen cybersecurity science and analytics as the foundation second prize in the U.S. Department
TO BE A TRULY
in the automotive sector. The ACIC of our innovations. This effort helps us of Transport-sponsored Solving for
CUSTOMER-
researches, develops, evaluates and understand and anticipate consumer Safety Challenge
CENTERED COMPANY, WE improves cybersecurity by addressing behavior and accelerates the development
NEED EVERYONE TO critical infrastructure needs in • Ford’s GDI&A and Manufacturing teams
of the mobility, electrification, connectivity
automotive systems. won the 2019 ANNY Excellence in
PLAY A ROLE. IT CAN’T JUST BE OUR and self-driving solutions that will improve
Analytics Award from the International
DEALERS OR THE CUSTOMER people’s lives.
In addition, we are a founding member Institute for Analytics (IIA) for their
EXPERIENCE TEAM. WE NEED TO of the Information Sharing and Analysis Always acting with privacy in mind, efforts to improve global supply chain
FOSTER A CUSTOMER-FIRST MINDSET Center (Auto-ISAC), which gathers, we use analytics in research, product fitness. As one example, we modified
AMONG ALL FORD EMPLOYEES AND analyzes and shares information to combat development, manufacturing, supply the ordering system to fully optimize
ACROSS ALL AREAS OF OUR BUSINESS.” cyber-related threats and weaknesses. chain, marketing and sales, finance, truck trailers when shipping parts to
purchasing, information technology and Ford plants, avoiding more than 10,000
ELENA FORD, CHIEF CUSTOMER GLOBAL DATA INSIGHT AND human resources functions. Led by GDI&A, journeys and over 1 million miles
EXPERIENCE OFFICER we’re also using artificial intelligence (AI)
ANALYTICS
to enhance our vehicles and services,
Harnessing the data provided by connected improve our product development and
vehicles and using it to create even better manufacturing processes, and deliver
experiences continues to be a key priority. enhancements across the business.
AS WE LAUNCH THIS YEAR’S SUSTAINABILITY REPORT, WE ARE REMINDED OF HOW CONNECTED
WE ALL ARE AND HOW EVERY INDIVIDUAL ACTION WE TAKE, WHETHER RESPONSIBLE OR RECKLESS,
CAN HAVE REAL CONSEQUENCES FOR SOMEONE ELSE. THE CORONAVIRUS PANDEMIC HAS SHOWN US HOW
POWERFUL IT IS WHEN ACTIONS IN SERVICE TO SOMETHING GREATER, SCALED AROUND THE WORLD, CAN
CHANGE HUMAN BEHAVIOR. IT’S A HOPEFUL SIGN THAT WE CAN COME
TOGETHER TO ADDRESS THE CHALLENGE OF CLIMATE CHANGE.

SUSTAINABILITY IS ONE OF THE BIGGEST ISSUES FACING BUSINESSES


IN OUR TIME, AND I AM VERY PROUD OF THIS YEAR’S REPORT BECAUSE
IT DOCUMENTS THE PROGRESS WE ARE MAKING ON THINGS WE HAVE
BEEN WORKING ON SINCE LAUNCHING THE REPORT OVER 20 YEARS
AGO. FORD IS THE ONLY FULL LINE U.S. AUTOMAKER COMMITTED TO
DOING ITS PART TO REDUCE CO2 EMISSIONS IN LINE WITH THE PARIS
CLIMATE AGREEMENT AND WORKING WITH CALIFORNIA FOR STRONGER
VEHICLE GREENHOUSE GAS STANDARDS. WE ARE ALSO ELECTRIFYING
OUR MOST ICONIC NAMEPLATES BEGINNING WITH THE MUSTANG
MACH-E THIS YEAR.

HOWEVER, NONE OF THIS WOULD BE POSSIBLE WITHOUT OUR


INCREDIBLE PEOPLE AT FORD. THANKS TO THEM, MORE THAN EVER,
WE ARE BUILT FOR GENERATIONS TO COME.”

BILL FORD, EXECUTIVE CHAIRMAN

OUR ASPIRATIONAL GOALS


Climate Change Energy Access Air
We aspire to achieve We will use 100 percent We aspire to drive We aspire to achieve
carbon neutrality locally sourced human progress by zero air emissions from
by 2050 renewable energy for all providing mobility and our facilities
manufacturing plants accessibility for all
Human Rights globally by 2035 Materials
We aspire to responsibly Water We aspire to only
source all raw materials Waste We will make zero use recycled and
used within our We will achieve true zero water withdrawals for renewable plastics in
vehicles globally waste to landfill across manufacturing processes our vehicles globally
our operations
We will use
Diversity freshwater for human
We aspire to become We will eliminate single- consumption only
the most inclusive and use plastics from our
diverse global company operations by 2030

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