8/9/2019 Ford's Blueprint for Sustainability - Summary
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2009/10
Bluprit for Sustaiability
The Future at WorkSee our full re
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8/9/2019 Ford's Blueprint for Sustainability - Summary
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Ala Mulally
President and Chie Executive Ofcer
We are providing aordable uel economy
or millions o customers by introducing
uel-saving technologies across a wide
range o vehicles.
William Clay Ford, Jr.
Executive Chairman
Creating a strong business and building
a better world are not conlicting goals
they are both essential ingredients or
long-term success.
WelcomeMessage rom the Executive Chairman
and President and Chie Executive Oicer
In 2009, Ford Motor Company successfully weathered theworst business environment in generations, posting our first fullyear of positive net income since 2005. Our market share grewin North America, Europe and South America, while sales
increased in the rapidly growing Asia Pacific and Africa region.
These results show that our ONE Ford plan is working: we arebuilding great products, a strong business and a better world.During 2009, we:
Stayedontracktosurpassourproductcarbondioxide(CO2) goal, which calls for a 30 percent reduction in the CO2emissions of our new U.S. and European vehicles by 2020,compared to the 2006 model year.
Introducedtwonewhybridelectricvehiclesandseveralother vehicles that achieve best-in-class fuel economy.
Cutglobalwateruseby16.6percentandimprovedenergy
efficiency in North America by 4.6 percent. Since 2000, wehave cut energy use at our global facilities by 44 percent.
Furtherimprovedvehiclequality,puttingFordonparwithor
better than the best in the business, according to severalglobal third-party assessments.
ReceivedthemostTopSafetyPicksfromtheU.S.-based
Insurance Institute for Highway Safety of any automaker 19 Ford vehicles in total and introduced a range ofsafety innovations.
We are optimistic about Fords future possibilities. This is oneof the most exciting times in our industry since mass automobileproduction began more than a century ago. New technologiesare radically transforming some of the most fundamental andenduring elements of the automobile. The companies that leadthese changes will create new green jobs and generate profitswhile reducing fuel use and CO2 emissions, benefiting both theeconomy and the environment.
As a global community, we have the opportunity to forge acompelling vision to contribute to addressing the issues ofeconomic growth, energy independence and environmentalsustainability. We see two key enablers of progress in theseareas: technologies and innovation will provide the solutions,while collaborative partnerships and a systems approach willhelp us implement them.
Collaboration and innovation are the foundation of our work inareas ranging from vehicle electrification to human rights in oursupply chain. Ford has a proud heritage of improving peopleslives and making their world a better place. We want to build on
this by being recognized as a trusted partner and operatingresponsibly and sustainably wherever we do business. Througha decade of work and a disciplined reinvention of our Company,we have built sustainability into our business model.
Our Company has been through some tough times, but wehave emerged leaner, stronger and more focused. With thesupport of our stakeholders, we are creating an exciting and
viable company poised to deliver profitable growth for all.
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Fusion HybridWeve doubled our hybrid vehicle production, and w
the way to delivering the irst o our pure battery elec
plug-in hybrid vehicles.
Mor about sustaiig Ford
www.ford.com/go/sustaiability
After enduring several of the most difficult yearsin our Companys history, Ford turned a cornerin 2009. In the face of a global economic and
financial crisis, as well as unprecedented eventsin the U.S. automotive industry, Ford posted thefirst full year of positive net income since 2005,and a $17.5 billion improvement over 2008.
Despite the continued economic slump o 2009, which included the
bankruptcies o two domestic competitors and a nearly 40 percent
cumulative drop in new vehicle sales in the U.S. since 2005, we
gained market share in most o our business units across the globe,
including our irst ull-year market share gain in the U.S. since 1995.
Based on Fords improving perormance, the gradually
strengthening economy, and our present assumptions, we nowexpect to deliver solid proits this year with positive Automotive
operating-related cash low.
Our progress in 2009 oers the strongest proo yet that our
business strategy is successul and that we are orging a path
toward proitable growth through teamwork and leveraging global
scale. Three years ago, we created the ONE Ford plan to guide
our business toward better times. We cascaded the plan across
our global organization. And we are executing the plan.
Ford is steadastly ocused on creating a strong business that
builds great products that contribute to a better world. We con
to press orward to globalize vehicle platorms that can be ada
to meet speciic regional needs. Flexible manuacturing capab
allow us to bring products to market with greater speed and
eiciency than ever beore.
We believe that we have been able to weather these last diic
years because our business and our sustainability strategies a
aligned and intertwined. But were ar rom complacent, and w
continuing to address adverse conditions. Notwithstanding ma
positive signs o an economic recovery, the global business
environment remains extraordinarily challenging, with increasin
intense competition rom other automakers.
Our path toward long-term viability began well beore the
recent economic downturn began. We have been undamenta
restructuring our operations in ways that impact every part o o
business. We recognized that our business model needed tochange, and we have been changing it.
One key element o that is our increased ocus on a more bala
portolio that includes more small and midsize vehicles, to resp
to consumer demands. Weve been very clear about our prod
strategy to deliver improved uel economy and reduced greenh
gas emissions through advanced technologies. Our blueprint
sustainability, which highlights how we will meet our product
CO2-reduction goal, has positioned us to lead in the industry.
Oering vehicles with smaller environmental ootprints, tackling
mobility challenges o rapidly growing urban centers, and tailo
our products and services to increasingly diverse global markenot peripheral to Fords uture success they are central to it.
Rad mor oli about:
OurONE Ford plan
Ourplantoreturntoprofitability
Oursalesandmarketsharetrends
Our One Ford pla is achordby four ky prioritis:
Aggressiverestructuring
Acceleratedproductdevelopment
Improvingourbalancesheet
Workingtogether
SuStainingford
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Mor about climatchag ad mobilitywww.ford.com/go/sustaiability
Climate change has the potential to affect allparts of our business and is interconnected toother important issues from water availability
and energy security to human rights andmobility. Ford has developed a comprehensive,science-based global strategy to reducegreenhouse gas emissions and processes whileworking cooperatively with the public and privatesectors to advance climate change solutions.We believe this strategy is one of the factors thathas helped to transform our Companys currentand future products and prospects.
Our Goals
In early 2008, we announced a goal to reduce CO2 emissions rom
our U.S. and European new vehicles by 30 percent by 2020, relative
to a 2006 model year baseline. We also set out a technology
migration plan embodied in our blueprint or sustainability that
details our near-, mid- and long-term product plans to meet this goal
(see graphic opposite). Despite challenging economic conditions, we
are making signiicant progress in implementing the plan and are on
track to surpass the goal. In addition, we have committed that all our
new vehicles will be best in class, or among the best in class, or uel
economy in their segment. During 2009, we expanded our analysis o
potential greenhouse gas emission reductions to include the products
we sell in Brazil and China. In this analysis, we compared our current
product plans to potential reductions aligned with long-term CO2
stabilization at 450 ppm, and considered the impact o low-carbonuels. This is a step toward developing goals or these markets.
Our Progrss
In every region o the world, we are advancing toward our goals by
introducing new products and technologies that signiicantly cut uel
consumption and emissions. For example, during 2009 and early
2010 we:
ReducedCO2 emissions rom our 2009 model year U.S. and
European new vehicles by 12 percent and 6.7 percent,
respectively, compared to the 2006 model year.
ExpandedtheglobaluseofourEcoBoost engines, which
deliver up to 20 percent better uel economy compared to
larger-displacement engines. Our new our-cylinder EcoBoo
engine was introduced in Europe, and we announced plans
use it in China on the Ford Mondeo in 2010. Expandedourlineupofhigh-fuel-efficiency,low-carbon-em
ECOnetic vehicles in Europe, including the second-generatio
Focus and Mondeo. The Focus ECOnetic with stop/start
technology emits just 99 g/km o CO2.
IntroducedtheFigoinIndia,availablewithachoiceoffuel-e
engines, one gasoline and one diesel.
Launchedamorefuel-efficientKainSouthAmericathatfeatu
improved gearing ratios and aerodynamics.
Announcedthelaunchin2010oftheLincolnMKZHybrid,o
ith hybrid oering, which is expected to be the most uel-e
luxury sedan available in North America.
Announcedthatwearedeliveringonour2006pledgetodo
the number o lexible-uel vehicles produced in the United S
by the end o 2010.
CommittedtointroducefivenewelectrifiedvehiclesinEuro
2013, including battery electric, plug-in hybrid and hybrid ele
vehicles that will also be introduced in North America by 201
IntroducedtheTransitConnecttoNorthAmerica,creatinga
class o nimble commercial vans with outstanding uel econ
The Transit Connect will be the basis or Fords irst 21st cen
battery electric vehicle.
AnnouncedabatteryelectricversionoftheFocus,oneofu
10 vehicles based on our new global compact car platorm
is expected to deliver up to 2 million vehicles annually by 20
Ford is actively working to address challenges and opportuniti
posed by widespread use o electric especially plug-in veh
Such a shit could cut greenhouse gas emissions rom vehicle
increase the use o domestic energy sources, decrease pressu
on petroleum stocks and reduce urban air pollution. But it will
Ford FiestaWe introduced our new Fiesta global small car in Europe in 2008
and in China in 2009. When it launches in the United States in 2010,
it is expected to have best-in-class uel economy in its segment.
We are on track to surpass our goal of a 30 percent reductio
in CO2 emissions from our U.S. and European new vehicles
by 2020, relative to a 2006 model year baseline.
climatechange and
mobility
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requireunprecedentedlevelsofcollaborationandpartnership
between automakers, government oicials, utilities, transportation
providers and inormation technology companies.
A wide range o stakeholders will need to work together to developcharging inrastructure, integrate electric vehicles with electric
utilities, and knit vehicles and grids together into an eicient system.
During 2009 and early 2010 we:
Workedwithacoalitionof10utilities,theU.S.Departmentof
Energy,theNewYorkStateEnergyResearchandDevelopment
Administration,andtheElectricPowerResearchInstitutetotest
a leet o Ford-provided plug-in hybrid vehicles.
AnnouncedacollaborationwithMicrosoft on new energy
management sotware that will help owners o plug-in electric
vehicles determine when and how to recharge their vehicles,
while giving utilities better tools or managing the expected
changes in energy demand.
Catalyzedandconducteddialogueswithkeystakeholdersin
several U.S. cities to explore sustainable mobility projects that
incorporate electric vehicles and inrastructure.
Workedonotherimportantissuesrangingfromstandards
development to battery recycling.
Were also making progress in understanding and reducing our
climate ootprint across our value chain. We reduced 2009
operational CO2 emissions by 9 percent globally compared to 2008
and earned our ith consecutive Energy Star Award or Sustained
Excellence rom the U.S. Environmental Protection Agency. In
addition, we announced our participation in the Carbon Disclosure
ProjectsSupplyChainInitiativeandtheWorldResourcesInstitute/
World Business Council or Sustainable Developments Scope
road testing projects both as a way to better understand
greenhouse gas emissions in our supply chain. Ford is the only
automaker participating in these two initiatives.
Climat Chag Policy
We are committed to advocating or eective and appropriate
climate change policy in the United States and around the wo
We are an active member o the U.S. Climate Action Partnersh
(USCAP), a coalition o diverse stakeholders that has released
consensus recommendations or U.S. climate protection legis
The recommendations represent a balanced and integrated
approach to key linked issues that must be addressed in any
national climate legislation; however, we recognize that the
recommendations are not the only possible path orward. Our
product goal is aligned with the USCAP recommendations and
the broad goal o climate stabilization. The goal also aligns our
product plans to meet or exceed recently announced uel eco
requirementsintheUnitedStatesandEurope.
Mobility
Most automakers deinesustainable mobilityas reducing the
environmental impacts o the vehicles they oer by cutting the
vehicles liecycle greenhouse gases and other emissions.
As indicated by the previous discussion, we see this as an imp
piece o the picture and were working hard to achieve it.
But there are other important pieces as well. By 2050, there w
nine billion people on Earth, 75 percent o whom will live in urb
areas. Putting nine billion people into private automobiles is ne
practical nor desirable.
At Ford, our goal is to make mobility aordable in every sense
the word economically, environmentally and socially. We belie
that creative collaboration and innovative technologies and se
that integrate diverse public and private modes o travel can
harness the beneits o mobility while reducing its environment
and social impacts. By concentrating on providing aordable
transportation throughout the world and applying emerging
inormation technologies, we believe Ford can contribute to
addressing signiicant mobility challenges. For several years, F
has engaged with stakeholders including municipal and stat
government oicials, utilities, transportation planners and NGO
to envision mobility solutions and pursue their implementation
Rad mor oli about:
Fordsclimatechangerisks
and opportunities
Ourblueprintforsustainability
Climatechangepublicpolicy
Electricvehicles
Newmobility
neAR TeRMBegin migration to advanced technology
Signifcant number o vehicles withEcoBoost engines
Electric power steering
Dual clutch and six-speed transmissionsreplace our- and fve-speeds
Flexible-uel vehicles
Additional hybrid applications
Increased unibody applications
Introduction o additional small vehicles
Battery management systems
Aerodynamics improvements
Stop/start systems (micro hybrids)
CNG/LPGprepenginesavailablein select markets
MID TeRM
Full implementation o known technology
EcoBoost engines available in nearly all vehicles
Electric power steering high volume
Six-speed transmissions high volume
Weight reduction o 250750 lbs.
Engine displacement reduction acilitatedby weight reductions
Additional aerodynamics improvements
Increased use o hybrids
Introduction o battery electric and plug-inhybrid vehicles
Vehicle capability to ully leverage availablerenewable uels
Diesel use as market demands
Increased application o stop/start
LOnG TeRMContinue leverage o hybrid technologies deployment o alternative energy sources
Increased percentage o internal combustioengines using renewable uels
Volume expansion o hybrid technologies
Continued leverage o plug-in hybrid andbattery electric vehicles
Introduction o uel cell vehicles
Clean electric/hydrogen uels
Continued weight reduction throughuse o advanced materials
2007 2011 2020 2
8/9/2019 Ford's Blueprint for Sustainability - Summary
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2010 Ford TaurusThe 2010 Ford Taurus is one o the saest-rated large sedans
sold in America. It received ive-star NCAP crash ratings or
rontal and side impact and good IIHS ratings in oset rontal
impact, side impact, roo strength and rear impact evaluations.
Mor about vhicl safty
www.ford.com/go/sustaiability
Vehicle safety is one of four principles thatinform and guide Fords every design andengineering effort,1 and we continually work to
raise the bar on safety. Based on the followingindependent measures, Ford remains anindustry leader in motor vehicle safety.
FordholdsthemostTopSafetyPicks(awardedbytheInsurance
Institute or Highway Saety, or IIHS) o any vehicle manuacturer.
Nineteen Ford vehicles earned this honor in 2009.
Forthe2010modelyear,23Fordvehiclesreceivedfive-star
ratings or both rontal impact and side impact rom the National
Highway Traic Saety Administration (NHTSA) in its U.S. New
Car Assessment Program (NCAP) ratings.
InFordsmostrecentEuroNCAPassessments,theFordKuga
and Ford Fiesta achieved Fords irst three-star ratings orpedestrian protection. These cars also joined the Focus, Mondeo,
S-MAX and Galaxy in having best-in-class, ive-star adult
protection and our-star child protection ratings.
Prvtig Distractd Drivig
Recently,distracteddrivinghasreceivedsignificantpublicattention
as a contributing actor in motor vehicle crashes. Ford has been
conducting research on distracted driving or many years, and
weve recently taken a number o important actions to address it.
In 2009, Ford was the irst vehicle manuacturer to support the
SchumerbillintheU.S.Senate,whichwouldrequirestatestoban
handheld texting while driving. Ford also clariied its employee
policies to explicitly ban the practice.
Fords voice-activated SYNC technology, irst unveiled in 2007,
encourages drivers to use voice controls with hand-held devices
as cell phones and MP3 players, enabling them to keep their eye
the road and hands on the wheel. For example, when a text mes
arrives to a drivers cell phone, SYNC can read it aloud through
text-to-speech technology and then provide a list o canned repl
the driver to select rather than key-in manually. Also, SYNC locks
certain eatures (such as adding or editing a phone book contact
whiledriving.FordsinnovativeMyKeytechnologyalsohelpsp
encouragetheirteenagerstodrivemoresafely.MyKeyallowsow
to program a key that can, or example, limit the vehicles top sp
to 80 mph and mute the audio system until the saety belt is buc
Finally,ourFordDrivingSkillsforLife(FDSFL)programinclude
instruction(bothontheFDSFLWebsiteandatride-and-drive
or teen drivers) on the importance o avoiding distracted drivin
In2009,FDSFLactivitieswerecarriedoutinnineU.S.states,
the programs reach was expanded in the Asia Paciic region,
roughly 11,000 drivers were trained. Operation Teen Sae Driv
a joint eort between Ford and the state o Illinois that is mod
onFDSFLhascontributedtorealresults:thestatehasseen
49 percent reduction in teen atalities in the three years since t
program was launched.
Supportig Collaborativ Rsarch
On the research side, Ford is a leader in eorts to assess and
the eectiveness o active saety technologies. In January 201
consortiumof29partnersledbytheFordEuropeanResear
Center in Germany joined orces in the Accident Avoidance b
Active Intervention o Intelligent Vehicles (interactIVe) project. T
consortium seeks to support the development and implement
o active saety systems, and includes seven automakers, six
suppliers and 14 research institutes.
In 2010, Ford is bringing to market
worlds first automotive inflatable s
belts, combining traditional seat be
and air bag technologies to help redhead, neck and chest injuries for re
seat passengers.
Rad mor oli about:
Managingvehiclesafety
Accidentavoidanceandoccupant
protection technologies
Researchondistracteddriving
1Theotherprinciplesarequality,fuelefficiencyandsmarttechnologies.
vehicleSafety
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Engagement with Key Suppliers Corporate Managemen
Ford is working with its strategic production suppliers at the
corporate level to enhance their policies, veriication system
and ability to inluence their own supply chains. Our 90 Align
Business Framework suppliers commit to manage and assuproper working and environmental conditions in their acilitie
supply chains, and we are measuring their progress in doing
Collaboration within the Automotive Industry: Ford is driv
collaboration between automakers and supply chain compa
on global working conditions issues through the AIAG.
Through these eorts, we have learned the importance o help
to build the capability o suppliers to manage working conditio
rather than simply assessing their compliance with Ford and le
requirements(thoughassessmentscontinuetoprovideimpor
learnings). We continue to see signiicant potential or collabor
action by automakers to establish a common, eective and e
approach to ensuring sound working conditions in the automo
supply chain.
Beyond our own industry, we are working with government lea
to explore how to encourage multinational companies to act a
positive orce in protecting human rights in global trade, both
through work in their own supply chains and through advocac
More than 180,000 of our suppliers workers have been trained
in human rights based on Ford and joint automaker supplier
outreach programs.
Mor about huma rights
www.ford.com/go/sustaiability
Today, Fords Code of Basic Working Conditions (CBWC), adoptedin 2003, applies throughout our global operations and our $65 billionsupplychain.Werequireoursupplierstoensurethatourproducts
no matter where they are made are manufactured under conditionsthat demonstrate respect for the people who make them. We are asignatory to the United Nations Global Compact and activelyparticipatebyinvitationintheHumanRightsandSupplyChain
Sustainability Advisory Groups convened by the Global Compact.
We aim to leverage Fords global supply chain to make a
positive impact in the markets in which we do business, using
a three-pronged approach:
Engagement with Individual Supplier Facilities: Training
and capability building orm the basis o Fords supply chainworking conditions program, supported by assessments o
individual actories (totaling more than 600 to date). Through
Ford-administered programs and those conducted in conjunction
with other automakers and the Automotive Industry Action Group
(AIAG), we have trained 1,773 managers rom 1,478 supplier
companies on systemic solutions to working conditions challenges.
Trainingparticipantsarerequired,inturn,tocascadethetraining
to their own management and employees as well as to clearly
communicate expectations to their suppliers, thereby expanding
the impact signiicantly.
Ten years ago, stakeholders challenged Ford totake a leadership role in addressing human rightsissues in the automotive industry by developing
systems and programs to ensure sound workingconditions in Ford facilities and our supply chain.We recognized compelling business reasons totake up the cause: we believe that people aremost likely to excel in an environment that aimsfor excellence. We also understand the positiveimpact our actions can have on our 176,000employees and the million people who workfor companies in our supply chain.
In early 2010, Corporate Responsibility Officermagazine rank
Fords human rights efforts first among companies included i
its 100 Best Corporate Citizens list. Ford was also deemed on
the Worlds Most Ethical Companies by the Ethisphere Institut
Ford was the only automaker to receive either recognition.
Rad mor oli about:
FordsCodeofBasicWorking
Conditions
Oursupplychainprofile
Oursupplychainworkingconditions
training and assessment status
humanrightS
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Performance Overview
We defnesustainabilityas a business model that creates
value consistent with the long-term preservation and
enhancement o environmental, social and fnancial capital.
Below are some key indicators o our perormance
in these areas. See the ull data set and notes at
www.ford.com/go/sustaiability.
Cotact
Preparing this summary oers a valuableopportunity or us to assess and improveupon our progress and perormance. Tocontinue to do so, we need your eedback:
Thomas A. nima
Ford Motor Compay
O Amrica Road
Darbor, MI 48126, U
For additioal ots to accompay this data go to th full rportwww.ford.com/go/sustaiability
FORD DATA 2009/10
eCOnOMY/QUALITY 2007 2008
Global Quality Research System things gone wrong (three months in service), total things gone wrong per 1,000 vehicles 1,405 1,206
Global Quality Research System customer satisaction (three months in service), percent satised 76 77
Sales satisaction with dealer/retailer, Ford brand, U.S., net promoter score 82 84
Sales satisaction with dealer/retailer, Ford brand, Europe, net promoter score 80 81
Service satisaction with dealer/retailer, Ford brand, U.S., net promoter score 72 74
Service satisaction with dealer/retailer, Ford brand, Europe, net promoter score 68 70
Shareholder return Bloomberg total return analysis, percent -10 -66
Net income/loss, $ billion -2.7 -14.7
Sales and revenue, $ billion 172.5 146.3
enVIROnMenT 2007 2008
Ford U.S. feet uel economy, combined car and truck, miles per gallon (higher mpg refects improvement) 25.3 26.0
Ford U.S. feet CO2 emissions, combined car and truck, grams per mile (lower grams per mile refects improvement) 352 340Ford Europe feet CO2 emissions, grams per kilometer (based on production data or European markets)
Ford 149 146
Volvo 190 182
Worldwide acility energy consumption, trillion BTUs 65.6 61.0
Worldwide acility energy consumption per vehicle, million BTUs 10.8 12.2
Worldwide acility CO2 emissions, million metric tons 6.1 5.4
Worldwide acility CO2 emissions per vehicle, metric tons 1.02 1.09
North American Energy Eciency Index, percent (2000 base = 100 percent) ( lower percentage refects improvement) 74.4 69.9
SOCIeTY 2007 2008
Employee satisaction, Pulse survey, overall, percent satised 64 66
Overall dealer attitude, Ford, relative ranking on a scale o 1100 percent (summer/winter score) 69/64 68/69
Overall dealer attitude, Lincoln Mercury, relative ranking on a scale o 1100 percent (summer/winter score) 66/64 64/66
Ford Motor Company Fund contributions, $ million 37 33
Corporate contributions, $ million 17 16
Volunteer corps, thousand volunteer hours 86 100
Lost-time case rate (per 100 employees), Ford Motor Company 0.9 0.7
Lost-time case rate by region (per 100 employees), Ford Motor Company
Americas 1.2 1.0
Asia Pacic and Arica 0.1 0.1 0
Europe 0.7 0.6
U.S. saety recalls, number per calendar year (including legacy vehicles on the road or 10+ years) 15 10
U.S. units recalled, number o million units (including legacy vehicles on the road or 10+ years) 5.5 1.6
IIHS Top Saety Picks, number o vehicles 6 14
1Allbut12,000ofthe4.5millionvehiclesrecalledareoldermodels(19922003)thatwereequippedwithfaultyTexasInstrumentsspeedcontroldeactivationswitches.Althoughthedatashowsthema
ofthevehiclesequippedwiththeseswitchesdonotposeasignificantsafetyrisk,werecalledthemtoreassurecustomersandeliminateanyfutureconcerns.
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