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SUSTAINABILITY REPORT 2020
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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
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
INCREASE
ACCESS TO
TRANSPORTATION
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
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
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
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
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
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.
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
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
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
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
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
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
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
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.
$60M+
JOINING THE SHUTTLES TO MENTOR YOUNG WOMEN.”
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
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
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
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%
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
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
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
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
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.
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
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