Professional Documents
Culture Documents
Ford Sustainability Report
Ford Sustainability Report
Helping Build
a Better World
Integrated Sustainability
and Financial Report
2024
sustainability.ford.com I shareholder.ford.com
Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices
2
On The Road to Better — Contents — Letter from Ford and Farley — Ford at a Glance — Our Leadership in Sustainability — Financial Highlights
On The Road
to Better
Ford’s purpose has always been bigger In our following Integrated Report, we
than building vehicles. We are driven share the tremendous progress made
by a desire to build a better world. in the past year. A lot has changed since
One that is more equitable, inclusive, our last report, but Ford has never shied
and sustainable. A world in which every away from change. Change demands
person is free to move and pursue innovation, problem-solving, and hard
their dreams. work: everything we do best. And with
change comes opportunity.
There is no easy formula for how to
achieve these ambitious goals. It’s a We stand as excited for Ford’s future
journey Ford has been on since our as we are proud of its past. We are
first sustainability report 25 years optimistic. Energized. Ready for
ago, requiring both courage and care, whatever twists and turns await us
seeking to continually evolve while on The Road to Better.
honoring what we have already built. Read More
Today, we find ourselves at the In A Letter from Bill Ford and Jim Farley p.4
Contents
Our commitment to helping build a better world where every person Fundamentals 04 The Road to Better: 07 Our Leadership in Sustainability
is free to move and pursue their dreams is our legacy — and our future. A Letter From Bill Ford and Jim Farley 09 Financial Highlights
02
Building a strong, sustainable business takes commitment, effort, and 05 Ford at a Glance
persistence. By advancing groundbreaking technology, supporting
our people, our partners, and our customers, and protecting our planet, Sustainability at Ford 12 Our Materiality Assessment 21 How We Create Sustainable Value
13 Our Sustainability Strategy 22 Our Saliency Assessment
we are ensuring that Ford Motor Company will be here for generations 11
14 Our Sustainability Aspirations 26 Our Stakeholders
to come.
15 Accelerating Progress
This year marks our 25th annual sustainability report, and we are
committed to maintaining our leadership position in sustainability
Products and Services 31 Overview 38 ICE and Hybrid Vehicles
32 Customer Focused Business Segments 40 Connected Vehicles and Digital Services
reporting. That’s why this year, we are beginning the transition to align 30
34 Electric Vehicles, Batteries and Charging
our Integrated Sustainability and Financial Report with the European
Infrastructure
Union Corporate Sustainability Reporting Directive (CSRD) (EU 2023/2772
of 31 July 2023). Wherever applicable, we have noted where information is Environment 44 Overview 80 Air, Water and Soil Pollution
linked to CSRD required disclosures set out by the European Sustainability 45 Climate Change 82 Water Resources
43
Reporting Standards (ESRS). As part of this transition to CSRD, we have 76 Circular Economy and End-of-Life 85 Biodiversity and Ecosystem Health
integrated our previously standalone Climate Change Report and Human
Social 87 Overview 110 Employee Health and Safety
Rights Report into this report. 88 Human Rights 113 Customer Experience and Responsible Marketing
86
The report has been developed considering the findings of our double 99 Product Safety and Quality 116 Socioeconomic Contribution and Community
materiality assessment and is structured in alignment with CSRD 104 Human Capital Management and Diversity, Engagement
expectations. It examines our business through four lenses: Products Equity and Inclusion
and Services, Environment, Social, and Governance. Underlying the entire
Governance 121 Overview 126 Business Conduct
report is our approach to sustainability, along with our sustainability 122 Risk Factors 132 Data Protection, Privacy and Cyber Security
aspirations and achievements.
120
125 Supply Chain Management 133 Reporting Scope, Boundaries and Data Assurance
We're also shifting away from planned investments and expenditures Performance Data 135 Financial Highlights 157 Vehicle/Product Safety and Quality
to focus on actual progress to date. This transition will take time, and this 135 Products and Services 158 Human Capital Management and Diversity
report represents one more step in our journey to a more technical report
134
137 Climate Change 164 Employee Health and Safety
that uses data to describe progress toward our goals. We welcome you 145 Circular Economy and End of Life 165 Socioeconomic Contribution and Community
to share with us your feedback and any comments you may have at 148 Water Resource 166 Supply Chain Management
sustaina@ford.com. 149 Human Rights
With these diverse offerings, we remain focused on Ford and our philanthropic arm, the Ford Fund, invested
building a profitable and efficient EV business that can more than $73.7 million in charitable contributions
Our industry is experiencing Bill Ford Jim Farley
scale as demand grows. We’re gaining valuable customer toward its mission to partner with communities to help
change at a remarkable rate and insights from our first-generation EVs. We know the move people forward across key areas of impact:
magnitude, and Ford is seizing transition to EVs won’t be a straight line, but we can’t essential services, education for the future of work,
lose sight of our goal: a healthy planet and business. entrepreneurship, and mobility. This year, we are
this opportunity to lead and
celebrating 75 years of the Ford Fund and its impact in
help build a better world.” As always for Ford, we are focused on both what we
communities worldwide. Building on that commitment,
build and how we build. We’ve continued to push
Ford also launched a dedicated community engagement
ourselves on environmental quality, which includes
function to provide better lines of communication in
conserving water, reducing waste, and transitioning our
That kind of leadership has set us apart for more than growth to increase. In addition to building the best- communities where we have a manufacturing presence.
company to carbon-free electricity. It’s what our
120 years. It is why we were the first in our industry, selling gas and electric trucks in the U.S., Ford also customers and our neighbors expect from Ford. Further, we strongly believe in rewarding our employees.
25 years ago, to publish a sustainability report, which was produced the No. 1 and No. 2 best-selling hybrid trucks. In 2023, we offered a record contract for our more than
recognized for its transparency. It is why we were among We have reduced the overall carbon footprint of our
We expect our EV growth to continue this year with the 57,000 UAW-represented employees and their families in
the first in our industry to fully integrate our financial, operations, including both manufacturing and non-
launch of the all-new electric Explorer in Europe. And as the U.S. The three-year agreement with Ford of Canada’s
environmental, social, and governance performance into manufacturing, by 47% between 2017 and 2023.
EV prices come down, improving access to reliable fast Unifor-represented hourly employees provided
one consolidated report. And it’s why we reorganized The U.S Department of Energy acknowledged Ford for
charging is critical to help more customers confidently significant wage increases and bonuses, and a number
our auto business into three customer-focused segments achieving deep and sustained energy and greenhouse
choose an EV. We’re proud to have partnered with Tesla of major enhancements to support our future. For our
designed to evolve with a changing world. gas savings at 31 locations in the U.S., including all of
to ensure Ford customers were the first of any non-Tesla U.S. salaried employees, we introduced new family-
our manufacturing facilities. Ford announced that our
This values-led approach continues to guide us on the automaker to gain access to Tesla Superchargers across building benefits that cater to every unique journey
assembly plant in Cologne will be carbon neutral when
road to a more sustainable and equitable transportation the U.S. and Canada, and we’re giving customers the to parenthood. They are designed to help alleviate the
production of the all-electric Explorer starts later this
future. And it requires us to be nimble and responsive adapters they need to access the network for free. financial burden and provide support to make the process
year, and we continued construction of BlueOval City
as we deliver both what our customers want and what easier to understand and navigate.
There’s also an interesting story about EV adoption when in Tennessee. The assembly plant there will use the
the planet needs. equivalent of carbon-free electricity from the day it Our commitment to sustainability remains steadfast.
it comes to our commercial and government customers.
It’s clear to everyone at Ford that electric and software- These customers are increasingly going electric through opens. We also announced plans to build the country’s We will continue taking the long view, investing in our
defined vehicles will play an increasingly important role Ford Pro, a nearly $60 billion, industry-leading business first automaker-backed LFP battery plant, BlueOval people, our communities, and innovation on the road to
in our future. What’s also true is that building our that is helping streamline their path to electrification. Our Battery Park in Michigan, while protecting 245 acres a better and brighter future for everyone.
business for this future isn’t going to be easy or quick. customers are discovering that EVs get the job done and along the Kalamazoo River.
We invite you to explore this report for the details of
We believe we will successfully navigate this transition save them money through lower total cost of ownership. Ford is leading our industry to secure raw materials our plans and our progress.
through two pursuits: by focusing on our customers, In 2024, Ford Pro’s commercial customers will have more directly from mining companies aligned with our
and by making decisions that improve the lives of our EVs to choose from to support their unique needs and Bill Ford
sustainability goals, to scrutinize our battery supply
employees and everyone who relies on Ford. use cases, including an E-Transit with enhanced range. Executive Chair
chain and to acknowledge the rights of Indigenous
Last year, our overall EV sales increased despite slowing Our support goes well beyond the products themselves. Peoples. Lead the Charge, a consortium of advocacy Jim Farley
adoption across the industry. We have strong product We are creating an ecosystem of software-enabled organizations, ranked Ford No. 1 among global President and Chief Executive Officer
lineups in all three categories of vehicles – EVs, internal customer experiences and services to make our vehicles automakers for our efforts to deliver an equitable
combustion engine vehicles, and hybrids. Hybrid sales even more productive, while also improving their and sustainable supply chain.
rose 20% for the year. In 2024, we expect that percentage environmental performance.
Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices
CD
5
On The Road to Better — Contents — Letter from Ford and Farley — Ford at a Glance — Our Leadership in Sustainability — Financial Highlights
Ford at a Glance
#2
#2
in
in EV
EV sales
sales in
in North
North America,
America,
47%%
47
reduction
reduction in Scope
Scope 1 and
and 2 global
global
for
for the
the second
second year
year in
in aa row
row operations
operations greenhouse
greenhouse gasgas (GHG)
(GHG)
emissions
emissions since
since 2017. Science
Science Based
Based
Target
Target initiative
initiative (SBTi)
(SBTi) approved
approved
reduction
reduction target
target is 76%
76% byby 2035
2035
500, 000+
500,000
ReadMore
Read More
InClimate
In Climate Change
Change on
on p.59
p.59
6%
charging plugs on
charging plugs on the BlueOval
Charge Europe
Charge Network in Europe
Read More
Read More
reduction
reduction in Scope
Scope 3 GHG
GHG emissions
Ford Integrated Sustainability and Financial Report 2024
emissions
In
In Electric
Electric Vehicles, Batteries and Charging
Batteries and
per vehicle
vehicle kilometer since
since 2019.
2019. Charging Infrastructure
Infrastructure on p.34 on p.34
SBTi
SBTi approved
approved reduction
reduction target
target is
5 0 % by
50% by 2035
2035
CDP A
status in both
status both
86
zero waste to landfill
CDP Climate
CDP Climate and
and
sites globally
Water since
Water since 2019
2019
Read
Read More
More
In
In Climate
Climate Change
Changeon
on p.59
p.59
Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices
6
On The Road to Better — Contents — Letter from Ford and Farley — Ford at a Glance — Our Leadership in Sustainability — Financial Highlights
Ford at a Glance
— continued
111,000+
chargers on the BlueOval™ Charge Network
$2B
invested to transform our historic plant
in North America, a 25% growth from 2022 in Niehl, Cologne to the Cologne Electric
Vehicle Center. Once fully operational
in 2024, the Cologne EV Center will be
independently certified as carbon-neutral
Updated ReadMore
Read More
Read More
Read More
$73.7M
Ford Integrated Sustainability and Financial Report 2024
#1
overall score in Lead the
$4.21B
of net proceeds allocated
communities worldwide through the
Ford Motor Company Fund
Published our first Corporate Reopened our Ford Rouge Center with its Introduced SYNC®, a hands Launched the full Implemented Partnership for
Citizenship report, "Connecting living roof, daylighting system, and waste free connectivity system electric Focus EV a Cleaner Environment (PACE)
with Society" minimization Joined the United States program with suppliers to reduce
Marked 50 years of supporting Launched the Escape Hybrid, the world's Climate Action Partnership our collective environmental
communities through our first hybrid SUV and UN Global Compact footprint
philanthropic arm, Ford Motor Included human rights expectations Launched 2008 Ford Mustang Became a signatory to the UN
Company Fund in Global Terms and Conditions with with the first soy foam based CEO Water Mandate
suppliers, the first automaker to do so seats and headrests Announced a saving of more
than 10 billion gallons of water
Established Ford Received a score of 100 for the first Launched the EcoBoost Opened Ford Resource
Driving Skills for Life time from Human Rights Campaign, engine, which optimizes and Engagement
education program which also names Ford a Best Place power and efficiency Center in Southwest
Adopted the Code of to Work for LGBT equality using turbocharging and Detroit - the first of
Human Rights/Basic Established Ford Volunteer Corps direct gasoline injection five in Ford Fund's
Working Conditions to provide community service global network of
for our company opportunities for employees community centers
and suppliers
Fundamentals Sustainability at Ford Products and Services Environment Social Governance Data Appendices
8
On The Road to Better Contents Letter from Ford and Farley Ford at a Glance Our Leadership in Sustainability Financial Highlights
Financial Highlights
ESRS 2 SBM-1
We delivered solid results in 2023, Ford is well positioned to manage the transition of our 2023 Financial Highlights
products towards an electric future. In the meantime, our
reflecting positive momentum from the
strategy and unique capability to offer customers more
Ford+ plan for growth and value creation. choices demonstrated their potential in 2023. In North Revenue: Adjusted EBIT margin2:
America, we now sell gas, hybrid, and electric versions
$176.2B 5.9%
Our global product lineup is popular with customers
and generated revenue of $176 billion in 2023, up 11% of our flagship F-150 pickup truck, all at high volumes.
for our second consecutive year of double-digit growth. We had the number one internal combustion engine
Adjusted EBIT for the year was $10.4 billion, driven by (ICE) vehicle (F-Series), hybrid (Maverick) and EV truck
the continued strength of Ford Pro and Ford Blue. (F-150 Lightning) in the U.S. in 2023. Hybrid vehicles give
customers exceptional value and Ford great opportunity (2022: $158.1B) (2022: 6.6%)
In our first full year of operating with three customer- for growth. We sold about 280,000 hybrids globally last ESRS 2 SBM-1
centered auto segments, the strategy is paying off with year, up nearly 20% year over year, and expect growth
increased focus, priority, accountability, and flexibility to continue in 2024.
to quickly adapt to the changing needs of customers.
We are also pairing our popular retail and work vehicles
Ford Pro more than doubled its EBIT year over year to with digitally enabled customer experiences and value-
$7.2 billion, demonstrating the earnings power of an added services. We ended the year with 630,000 paid Net income/(loss): Adjusted free cash flow2:
emerging growth company with high customer value, software subscribers, the majority of whom are using
$4.3B $6.8B
large competitive moats and progress creating recurring Ford Pro productivity tools like telematics and fleet
revenue streams — including software and a greater management solutions, with gross margins over 50%.
emphasis on services. Ford Blue grew revenue 8% year This is a cornerstone of Ford+ and a key differentiator
over year and was profitable in every region around the for our brand.
world in 2023. Both segments are benefiting from
We recently formed Ford Integrated Services, tasked (2022: $(2.0)B) (2022: $9.1B)
ongoing updates to Ford’s product portfolio. By the end
of this year, 60% of Ford Blue’s gas and hybrid products with transforming customer experiences across our
will have been recently refreshed, including the three segments by developing and delivering high-value,
upcoming launch of a new F-150. software-enabled services that help address some of our
customers’ greatest challenges. We are focused on the
Ford Model e, our startup electric vehicle (EV) business, experiences around buying, driving, securing, servicing,
grew both wholesales and revenue in 2023, 20% and and charging a Ford vehicle to build a simple, transparent, Adjusted EBIT2: Adjusted earnings per share2:
12%, respectively. The segment’s EBIT loss of $4.7 billion and always-on relationship with the customer.
$10.4B $2.01
reflected challenging market dynamics and strategic
investments in our next-generation electric vehicles.
We are building an EV business that is appealing to
customers and profitable over the long term. To do that,
we’re reducing costs of our first-generation EVs that are
(2022: $10.4B) (2022: $1.88)
in the market today and adjusting investments to match
demand. Our goal is to ensure our next-generation
products will be profitable within the first 12 months
after they’re launched.
Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices
10
On The Road to Better — Contents — Letter from Ford and Farley — Ford at a Glance — Our Leadership in Sustainability — Financial Highlights
Financial Highlights
— continued
ESRS 2 SBM-1
Our underlying business is solid and getting stronger. Ford Credit remains a strategic asset, competitive In November 2021, Ford issued its first green bond
Organizing our business Profitability of our core business units — Ford Pro, Ford advantage, and strong performer for Ford, generating under the framework, the largest such transaction by a
around three distinct, customer- Model e and Ford Blue — improved EBIT by $2 billion, or EBT of $1.3 billion in 2023 as credit loss performance U.S. corporation at the time, raising $2.5 billion. This was
26%. Our free cash flow conversion rate was 65%, above normalizes, but remains below our historical average. followed by a second Green Bond of $1.75 billion in
focused segments is a game the top end of our target range. We are benefiting from The business is retaining existing customers, winning August 2022.
changer for Ford. With Ford+, more disciplined capital allocation to our global footprint
new ones, and increasing revenue streams with an
and portfolio of products and services. By June 30, 2023, $4.21 billion, the total of the net
we’re building a company that expanding range of digital services and products, like
proceeds of the two bonds, had been fully allocated
Raising quality and lowering costs across Ford are high credit pre-qualification for retail customers and Ford Pro
thrives at the intersection of priorities in every part of our company. To do that, we FinSimple and Insure for commercial customers.
to the design, development, and manufacture of the
company’s current EV lineup — the Mustang Mach-E,
hardware, software, and services, are reimagining and restructuring our global industrial
Company-wide, Ford again generated robust adjusted F-150 Lightning, and E-Transit — and EVs to be unveiled
system — product development, cycle planning, supply
with higher growth, higher chain, and manufacturing. Just months into the change,
free cash flow of $6.8 billion in 2023. Our balance sheet in the future, as well as other development activities
remains strong, with nearly $29 billion in cash and more that will benefit our entire EV portfolio.
margins, greater capital we are already seeing quality improvements, including
than $46 billion in liquidity at the end of year.
in new-product launches. For example, against one
efficiency, and less cyclicality.” measure — product quality after a vehicle has been in As a result, we have considerable flexibility to make
Read More
Sustainability
at Ford
In this section:
12 — Our Materiality Assessment
13 — Our Sustainability Strategy
14 — Our Sustainability Aspirations
15 — Accelerating Progress
21 — How We Create Sustainable Value
22 — Our Human Rights Saliency Assessment
26 — Our Stakeholders
Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices
12
Materiality Assessment — Sustainability Strategy — Sustainability Aspirations — Accelerating Progress — Create Sustainable Value — Human Rights Saliency Assessment — Stakeholders
We updated our sustainability materiality In 2023, we sought to achieve a balanced and Some topics were separated to allow for a more focused Topics are aligned with CSRD and
comprehensive review of topics covering all assessment, while other topics were streamlined and stated in alphabetical order
methodology to further align with
environmental, social, and governance areas likely to grouped, where appropriate. For example:
guidelines from the Corporate be relevant across Ford’s value chain. We began our Higher Impact Topics
ó Environmental Management has been split into its
Sustainability Reporting Directive. 2024 assessment by reviewing and building upon that Climate Change
constituent parts of biodiversity and ecosystems; air,
list of topics and their definitions.
The Global Reporting Initiative (GRI) requires an water and soil pollution; and water resources. Human Rights
organization to identify the most significant actual and Identified topics were supplemented with additional
ó Human Rights and Supply Chain Management has been Supply Chain Management
potential impacts on the economy, environment, and desk-based research given the fast-changing landscape
split to allow the human rights and governance areas
people. The Corporate Sustainability Reporting Directive in which we operate. We considered key sustainability Product Safety and Quality
of supply chain to be assessed separately.
(CSRD) requires companies to adopt the concept of trends, industry trends, a benchmark of our peers, and
double materiality and report on two parameters: the sustainability standards and frameworks, most notably ó Corporate Governance and Risk Management has been High Impact Topics
topics that may impact the financial performance of the European Sustainability Reporting Standards (ESRS) grouped with Transparency, Business Ethics, and
the company and the company’s own impact on society, which define the reporting requirements of the CSRD. Integrity into the combined topic Business Conduct. Air, Water, and Soil Pollution
the environment, and the economy. Biodiversity and Ecosystems
We also considered the risks and opportunities Given the inherent interdependencies between topics,
Our materiality methodology was refreshed in 2024 associated with each topic, the interests and expectations we have decided to move Electric Vehicles, a key piece Circular Economy and End of Life
to reflect these emerging guidelines and incorporate of stakeholders, as well as Ford’s organizational purpose, of our climate change strategy, under Climate Change
elements of double materiality. strategies, and goals. Not only did this approach ensure for the purpose of this report. Similarly, Accessible and Connected Vehicles and Digital Services
comprehensive coverage, but it also enabled us to adjust Affordable Mobility Solutions has been redefined as part Human Capital Management and Diversity, Equity,
Our Materiality Process
several existing topics. of climate justice. and Inclusion
ESRS 2 IRO-1
In preparation for CSRD compliance we chose to To identify the significance of each identified topic, Environmental justice, including climate justice, and Just Water Resources
rethink our methodology and refresh our materiality we assessed the severity and likelihood of impacts Transition sit at the intersection of many material topics.
to ensure we continue to focus on our most significant and the magnitude and likelihood of financial risks and For the purpose of this report, climate justice is covered Moderate Impact Topics
sustainability impacts. Moving forward, we will conduct opportunities. Results were then shared and discussed under Climate Change and Just Transition is covered
Business Conduct
assessments annually. This assessment covers Ford with internal subject matter experts and adjusted as under Human Capital Management.
Motor Company and all wholly owned subsidiaries. needed. This resulted in a topic prioritization list that Customer Experience and Responsible Marketing
Read More
was also calibrated with subject matter experts.
We recognize that we are in a transition period as we Data Protection, Privacy, and Cyber Security
In Climate Change on p.45
prepare for future CSRD reporting, and we expect that This Integrated Sustainability and Financial Report
In Human Capital Management and DEI on p.104 Employee Health and Safety
our approach will evolve further in future. is structured to provide proof points on Ford’s impacts
on each of the material topics identified. We have identified four topics as our highest priorities: Socioeconomic Contribution and Community
This year’s approach allowed us to consider our climate change (including energy use), human rights, Engagement
impacts on sustainability matters more objectively. Our Material Topics supply chain management, and product safety and
We leveraged extensive outputs gathered during our ESRS 2 SBM-3
quality. These topics are listed in alphabetical order,
2023 assessment, which engaged internal and external It is important to note that our approach is evolving, not in order of importance.
stakeholders, including industry associations and non- and that a like-for-like comparison is not possible with
governmental organizations (NGOs), and internal subject our 2023 materiality assessment. Read More
matter experts. About the full topic definitions and associated subtopics in Appendix 1
Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices
13
Materiality Assessment — Sustainability Strategy — Sustainability Aspirations — Accelerating Progress — Create Sustainable Value — Human Rights Saliency Assessment — Stakeholders
Our sustainability strategy is to make Sustainable Materials Strategy decision-making and our actions, and extends to our The CSRD requires disclosures against the European
suppliers and business partners, from the origin of the Sustainability Reporting Standards (ESRS). Throughout
a positive impact on society and the Using recycled and renewable materials helps reduce
waste and lower need for new materials. We aspire to raw materials used to make our products to the end of the report you will see ESRS tags on some chapters
environment. life of these products. Guided by our We Are Committed or sections, such as the “ESRS 2 BP-1” above, indicating
use only recycled or renewable content in vehicle plastics.
Sustainability topics are entwined with our purpose: Our near-term target is to use 20% recycled or renewable to Protecting Human Rights and the Environment policy, which disclosures we are addressing in that section.
To help build a better world where every person is free plastics by 2025 in new vehicle designs for North America our goal is to ensure that everything we do, or that
All 2024 ESRS disclosures for Ford Motor Company
to move and pursue their dreams. It’s at the heart of and Europe, including Turkey, and 10% for China. Ford’s others do for us, meets or exceeds the minimum
are contained within this Integrated Sustainability and
everything we do. closed loop recycling system maximizes aluminum regulatory requirements and strives to create a positive
Financial Report. We are voluntarily phasing in these
recycling, reduces the energy needed to create new primary impact on people and the planet.
Our Strategies disclosures in the 2024 report, not all ESRS required
aluminum, and minimizes the need for raw materials. Read More disclosures are included at this time. We are working
We have developed these specific strategies to address
towards full CSRD reporting compliance in our 2025
the collective challenges the world faces and achieve Read More In Human Rights on p.88
Integrated Sustainability and Financial Report.
our Sustainability Aspirations. In Circular Economy and End of Life on p.76 People Strategy
Time horizons in this report are consistent with our
Read More Waste Strategy Diverse representation, equity, and inclusion are the
climate reporting and cover three time horizons: short-
We are focused on managing and minimizing the waste bedrock of our people strategy. We are committed to
In Sustainability Aspirations on p.14 term (<5 years), medium-term (5–10 years), and long-
we generate to reach true zero waste to landfill across finding, hiring, developing, and retaining great talent
term (>10 years).
Climate Change Strategy that is inclusive of everyone in the communities that
our global operations. We aim to eliminate single-use
To achieve our carbon neutrality goal, we are focusing we serve. We are committed to structural and systemic There are also disclosures in this report that stem from
plastics from our operations by 2030.
on three areas that account for approximately 95% of our equity at every stage of the employee journey. Every other regulations and frameworks including, but not
carbon dioxide emissions — our vehicles, our operations, Read More employee is expected to support each other, to learn limited to, the German Supply Chain Due Diligence Act,
and our supply chain. Addressing the largest emissions about people different than themselves, and disrupt The Global Reporting Initiative (GRI), the Task Force on
in Circular Economy and End of Life on p.76
source, our vehicle use from a well-to-wheel perspective, bias in everyday behaviors and decisions. Ford supports Climate-Related Disclosures (TCFD), and the United
Water Strategy Nations Guiding Principles Reporting Framework
Ford’s investment in electric vehicles is a core element of a just transition by preparing our workforce and local
our climate change strategy. Ford is committed to reducing water use, aspiring to use communities for the transition to EVs. (UNGPRF).
freshwater only for human consumption and make zero
Read More
Ford Integrated Sustainability and Financial Report 2024
Waste
Reach true zero waste to landfill
across our operations
!9 Safety
Work toward a future that is free from
vehicle crashes and workplace injuries
Eliminate single-use plastics from our
operations by 2030
Our
Air
Attain zero emissions from our
Sustainability 0
O'-QvO
0 0
Human Rights
Source only raw materials that are
vehicles and facilities Aspirations responsibly produced
Water Access
Make zero water withdrawals for Drive human progress by providing
manufacturing processes mobility and accessibility for all
Use freshwater only for human
consumption
Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices
15
Materiality Assessment — Sustainability Strategy — Sustainability Aspirations — Accelerating Progress — Create Sustainable Value — Human Rights Saliency Assessment — Stakeholders
Accelerating Progress
As we continue on our sustainability journey, we are committed to having a
positive impact on people and the planet. Below, we have summarized our progress.
ESRS 2 SBM-1
UN Sustainable
Sustainability Aspirations Goals Progress Development Goals
• Achieved a 6% reduction in our Scope 3 GHG emissions per vehicle kilometer since 2019
Climate
Vehicles 7 AFFORDABLE
DECENTAND
WORKAND
8 ECONOMI 11 SUSTAINABLE
.f'> I!
C GROWTH
Reduce Scope 3 greenhouse gas (GHG) CLEAN ENERGY CITIES AND
IBIB
COMMUNITIES
Change
emissions from use of sold products by 50%
per vehicle kilometer by 2035 (Science Based
12 RESPONSIBLE 13 CLIMATE
Target initiative (SBTi) target, 2019 baseline) CONSUMPTION A C T IO N
Achieve carbon neutrality AND PRODUCTION
Offer lower-carbon alternative fuel options • All our diesel vehicles are compatible with low-level biodiesel blends
• In Europe, our Transit, Transit Custom, Transit Courier, Transit Connect, and Ranger are compatible with
renewable paraffinic diesel fuels, renewable diesel, and e-diesel (blends typically from 33% to 100%)
Support customers on their way to carbon • Ford Pro services help optimize customer fleets and offer EV charging (public, depot, and employee home)
neutrality • Promote “eco-driving” through training, information, and in-vehicle technology
Suppliers • We have seen significant improvements in CDP and Manufacture 2030 (M2030) supplier engagement in 2023
Work with suppliers to better understand and • Received GHG emissions data from 377 suppliers, 20% more than 2022, using CDP Supply Chain program’s
reduce our collective environmental footprint Climate Change Questionnaire
through CDP and our best practice climate • Tier 1 suppliers not only engaging on the M2030 platform, but some are also requiring their suppliers
program to participate
Address highest emitting materials used in • Ford has pledged to purchase at least 10% low-carbon aluminum and near-zero steel by 2030
our vehicles • We have signed non-binding memorandums of understanding with strategic steel suppliers and are working
on a multi-material partnership to supply Ford low-carbon aluminum, lithium, and copper
Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices
16
Materiality Assessment — Sustainability Strategy — Sustainability Aspirations — Accelerating Progress — Create Sustainable Value — Human Rights Saliency Assessment — Stakeholders
Accelerating Progress
— continued
ESRS 2 SBM-1
UN Sustainable
Sustainability Aspirations Goals Progress Development Goals
• More than 85%4 of our vehicle parts and materials are recycled and reused at their end of life
Materials
Expand our use of sustainable materials 11 SUSTAINABLE CITIES
12 RESPONSIBLE
CONSUMPTIONAND
AND COMMUNITIES
focusing on plastics, battery recycling, and • Established an interim target of 20% renewable and recycled plastics by 2025 in new vehicle designs for PRODUCTION
sustainable sourcing North America, Europe, and Turkey, and 10% in China
Use only recycled or
• Recover up to 20 million pounds of high-strength, military-grade, aluminum alloy per month through the
renewable content in
closed loop recycling system used to build F-series
vehicle plastics
• Used nine industry- and world-first plant-based materials in our production vehicles since 2000
Read More
(2022 baseline)
Reach true zero waste
to landfill across our
operations Global reduction of waste disposed from • Ford facilities around the world sent approximately 16,300 metric tons of waste to landfill, 8% less than in 2022
Eliminate single-use manufacturing by 10% (absolute volume)
plastics from our (2022 baseline)
operations by 2030
Work with selected suppliers to reduce our • Increased number of suppliers participating in the M2030 climate program, helping suppliers establish
Read More collective environmental footprint science-based targets, and measure, manage, and reduce climate emissions, water usage, and waste
Accelerating Progress
— continued
ESRS 2 SBM-1
UN Sustainable
Sustainability Aspirations D Goals Progress Development Goals
• Working to reduce vehicle emissions of non-CO2 pollutants, in accordance with increasingly stringent
Air
Air emissions reductions beyond CO2 GOOD HEALTH 11SU
STAIN
ABLECITIESAN
DCO
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3 AND WELL-BEING
.
standards around the world
Read More
Make zero water Continue to work toward using freshwater • Use of offsite alternative water was 9% in water scarce areas
withdrawals for sources only for human consumption
manufacturing processes
Work with Ford suppliers to reduce our • Increased number of suppliers participating in the Manufacture 2030 climate program, helping suppliers
Use freshwater only for
collective environmental footprint through establish science-based targets, and measure, manage, and reduce climate emissions, water usage, and waste
human consumption
our best practice climate program
Read More
Engage with our supply chain to understand • 323 of our suppliers, a 25% increase from 2022, responded to the CDP Water questionnaire
In Water Resources on p.82 and reduce its water footprint
Ford Integrated Sustainability and Financial Report 2024
Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices
18
Materiality Assessment — Sustainability Strategy — Sustainability Aspirations — Accelerating Progress — Create Sustainable Value — Human Rights Saliency Assessment — Stakeholders
Accelerating Progress
— continued
ESRS 2 SBM-1
UN Sustainable
Sustainability Aspirations Goals Progress Development Goals
• Updated our We Are Committed to Protecting Human Rights and the Environment policy to formally commit
Human
We are committed to protecting human rights GOOD HEALTH
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and the environment to the United Nations Declaration on the Rights of Indigenous Peoples (UNDRIP). Additional policies related
-·
Rights
to supporting a living wage, not engaging in unlawful eviction, and the use of security forces with proper
supervision and due diligence were added in 2023
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• Ranked first overall in Lead the Charge Coalition’s annual Leaderboard report, which evaluates leading 8
ENERGY EC ONOMC GROWTH
Source only raw materials
automakers on their efforts to eliminate emissions, environmental harms, and human rights violations from
that are responsibly
their supply chains
produced
• Trained 406 Ford supply chain employees and 400 other employees in Supply Chain Sustainability topics 10 REDUCED
11SUSTAINABLECITIES ANDCOMMUNITIES 1 2
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INEQUALITIES R E S P O N S IB L E
Read More CONSUMPTION
8
Help suppliers build their capacity to manage • Integrated sustainability metrics into sourcing decisions
In Human Rights on p.88
supply chain sustainability issues • Held direct engagements to train 48 suppliers, and supported 160 country-specific webinars from Drive
Sustainability for suppliers
=
13CLIMATE ACTION
Assess Tier 1 suppliers’ compliance with Ford’s • Strengthened our Supplier Code of Conduct to reflect changing regulations and emerging issues and help
Supplier Code of Conduct requirements and protect workers, children, communities, the rights of Indigenous Peoples, and the environment in areas where
expectations mines and processors operate
• Conducted 46 on-site audits with the Responsible Business Alliance (RBA) to confirm compliance with our
Supplier Code of Conduct
• Began conducting Responsible Supply Chain Initiative audits throughout our supply chain in addition to
Responsible Business Alliance audits
• Conducted 1,298 total supplier audits since 2003 and 1,725 follow-up audits
Build capacity of raw material supply chains • Conducted RSC Global and Initiative for Responsible Mining Assurance (IRMA) EV Battery Material supply chain
Ford Integrated Sustainability and Financial Report 2024
to responsibly source/produce to third-party audits and supported suppliers to develop corrective action plans as needed
standards • Expanded supply chain audits to include suppliers using graphite and mica
• Request IRMA or Responsible Minerals Initiative (RMI) third-party certification of materials
Increase transparency, traceability, and due
• Trained 1,632 suppliers in due diligence related topics
diligence in our EV battery material supply
• Supported RCS Global Better Mining project in the Democratic Republic of the Congo (DRC) to build capacity
chains
for artisanal and small-scale cobalt mining
• Continued support for women’s empowerment project to advance financial literacy to ensure business and
co-op success for artisanal cobalt miners in the DRC
Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices
19
Materiality Assessment — Sustainability Strategy — Sustainability Aspirations — Accelerating Progress — Create Sustainable Value — Human Rights Saliency Assessment — Stakeholders
Accelerating Progress
— continued
ESRS 2 SBM-1
UN Sustainable
Sustainability Aspirations Goals Progress Development Goals
• For the 2024 model year, Pre-Collision Assist with Automatic Emergency Braking (AEB) is offered standard on
Safety
Product Safety and Quality
Design and manufacture vehicles that offer 98% of Ford and Lincoln cars, light duty trucks5 and SUVs
innovative driver assist technologies • BlueCruise offers new features and system updates that make hands-free highway driving even better
Work toward a future
• Consumer Reports named BlueCruise the best Level 2 Automated Driving System for the second year in a row
that is free from vehicle
crashes and workplace Play a leading role in vehicle safety and driver • For the 2023 model year, multiple Ford and Lincoln nameplates were rated with 5-Star Overall Vehicle ratings
injuries assist research and innovation by New Car Assessment Programs (NCAP), including 10 in the U.S., 7 in Europe, 7 in China, and 5 in the
International Markets Group (IMG)
In Product Safety and Quality Employee Health and safety • There was one employee fatality globally in 2023. Any loss of life or serious injury in the workplace is
on p.99 Fatalities target is always zero unacceptable and deeply regretted. Robust corrective actions have been implemented to prevent
reoccurrence and reduce risk to our employees and contractors working on site
Zero serious injuries, attain industry competitive • Our global Lost-Time Case Rate (LTCR) was 0.40
lost time, and drive continuous improvement
Maintain or improve employee personal health • Our global, holistic approach to employee support and care encompasses the physical, mental, financial,
and wellbeing social, and professional wellbeing needs of our employees
Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices
20
Materiality Assessment — Sustainability Strategy — Sustainability Aspirations — Accelerating Progress — Create Sustainable Value — Human Rights Saliency Assessment — Stakeholders
Accelerating Progress
— continued
ESRS 2 SBM-1
UN Sustainable
Sustainability Aspirations Goals Progress Development Goals
• Focused on the long-term cross-functional work required to put the resources and systems in place to
Diversity,
Embed Diversity, Equity and Inclusion (DEI)
across the enterprise equitably support each employee’s career journey, and to grow and sustain an inclusive, global workplace
Equity,
and Create an environment of inclusion • 90% of participants in the 2023 Global Salaried Voice Survey responded that their People Leader treats
Inclusion everyone on their team fairly and equitably, regardless of their differences; up from 86% in 2022
• 87% of Global Salaried Voice Survey participants feel they can be themselves at Ford, up from 82% in 2022
Support a diverse,
equitable, and inclusive Promote gender and racial equity while • Published U.S. Gender and Race/Ethnicity Metrics and our annual EEO-1 report
workplace where each reducing bias in all people and business • Included in 2023 Bloomberg Gender-Equality Index, our fifth year in a row on the index
person is valued policies, processes, and systems
Continue to purchase from small businesses • In 2023 we purchased goods and services from minority-owned suppliers, women-owned businesses,
and businesses owned by veterans, minorities, veteran-owned companies, and small businesses
In Human Capital Management
and Diversity, Equity, and
women, LGBTQ+ people, and people with
Inclusion on p.104 disabilities
• Maintained our focus on offering L2 and L3 driver assistance applications that can add convenience and help
Access
Advance Ford L2 and L3 Advanced Driver
Assistance Systems (ADAS) systems make transportation even safer
• We remain committed to using vehicles and technology to expand access and provide equitable opportunities
Drive human progress by
for people and communities to move forward
providing mobility and
accessibility for all
0c. identification, prioritization, validation, and reporting. Engagement mechanisms - Pre-interview questionnaire - Survey for Ford employees and dealers
a,
a:
For more information on past salient human rights - Interviews with internal and external - Validation workshop with subject
assessments and processes, you can view our previously subject matter experts matters experts
standalone 2022 Human Rights Report and 2023 Human
Rights Progress Report under “Previous Sustainability
and Financial Reports” on our sustainability website.
Read More
Saliency Assessment Results greenhouse gas reduction targets, action plans, and 2023 Update:
Our 2023 saliency assessment resulted in an updated list transparent reporting mechanisms. Our We Are Committed to Protecting Human Rights and
of human rights and environment-related salient topics, the Environment policy mandates that we “Comply with
Access to EVs can help provide health, economic, and
as seen here. You can read more about each of these applicable laws regulating hours of work and support a
mobility benefits, especially in communities that bear
topics and the work being done in this chapter and living wage by providing competitive compensation and
a disproportionate burden from climate change and
~
throughout the report. benefits that meet or exceed legal requirements.”
air pollution.
Clean, Healthy and Sustainable Environment Read More
0 Efforts to further decrease our water consumption
~0
Sustainability Aspiration: continue at Ford plants around the world. We continue to In Human Capital Management and Diversity,
Achieve carbon neutrality no later than 2050. integrate more water-efficient processes and technologies. Equity, and Inclusion on p.104
( Most salient Human Forced Labor, Child Labor, and Human Trafficking
Attain zero emissions from our vehicles and facilities. Read More
A Rights Issues Sustainability Aspiration:
Make zero water withdrawals for manufacturing In Climate Change on p.45
~
Source only raw materials that are responsibly produced.
forFord / processes and use freshwater only for human In Air, Water, and Soil Pollution on p.80
consumption. In Water Resources on p.82 Human Rights Salient Issue:
We are conducting additional risk assessments based we used the opportunity to identify and improve Human Rights Salient Issue: Health and Safety
on due diligence regulations. Based on identified risks, weaknesses in the supplier’s policies and business Everyone has the right to freedom from violence and Sustainability Aspiration:
we are prioritizing our due diligence actions and taking practices, implementing electronic document verification harassment at work. Harassment covers a broad range of Work toward a future that is free from vehicle crashes
specific actions as required in our supply chain. Our at every stage of the hiring process. Additionally, we are unwelcomed behaviors that are humiliating, intimidating, and workplace injuries.
efforts include supply chain mapping, supply chain data conducting ongoing supplier risk assessments and audits or offensive in nature. Instances of harassment do not
transparency, and supplier audits, which are critical to beyond the supplier mentioned in the story. We have need to be intentional and they can occur as a once-off Human Rights Salient Issue:
ensure our compliance. For any concerns raised by third also strengthened our Supplier Code of Conduct to or repeatedly over a period of time. Employees have the Physical and mental health and safety of employees
parties, we are utilizing our due diligence process to mitigate increased risks related to labor shortages right to equal employment opportunity. Discrimination and workers in the supply chain is one component of
investigate the issue and understand our corporate and coupled with high immigration. occurs when an individual, or a group of people, is an adequate work environment that satisfies global
supplier involvement. treated less favorably than another because of certain and national legal standards. This includes the mitigation
Human Trafficking of occupational hazards to ensure that the likelihood of
characteristics, such as race, color, religion, sex (including
Child Labor As a global force in human rights, Ford is committed harm to employees is greatly reduced. Health and safety
gender identity, sexual orientation, and pregnancy),
Our commitment to global good includes a pledge to prohibiting forced labor in our business. To that also includes Ford’s product safety and quality and
national origin, age, disability, or genetic information.
to eliminate child labor and a promise not to employ end, we are focusing our efforts on our own operations considerations of the end users’ physical safety as they
anyone under the age of 15 unless it is for a training and working with suppliers to aggressively monitor 2023 Update: use and operate Ford products. This is particularly
program that clearly benefits the worker. and influence the behavior of our company, affiliates, Ford is committed to supporting and sustaining a important with respect to emerging risks associated
and suppliers. diverse, equitable, and inclusive workplace. As we move with electric vehicles.
We have reviewed our contracted recruiting firms to
forward, our intention is to harness the power of a
ensure our hiring practices are aligned with our Global Our We Are Committed to Protecting Human Rights and 2023 Update:
talented and diverse team to help fuel our transformation
Terms and Conditions and Supplier Code of Conduct. the Environment policy commits us to preventing forced We are dedicated to creating vehicles that achieve the
and further empower Ford to better serve the diverse
We also have increased audits within Ford manufacturing labor and human trafficking, and our Global Modern highest levels of safety in a range of real-world
customers and communities where we live and work.
facilities to ensure compliance with our child labor and Slavery and Human Trafficking Transparency Statement conditions and crash testing assessments. Our mission
We respect the different cultures and beliefs of our team
human rights policies and expectations. outlines steps we are taking to ensure that slavery and is to make product quality one of the principal reasons
members, customers, and the communities we serve.
human trafficking are not occurring in our supply chains why customers buy Ford the first time — and every time.
Also, we continue to audit suppliers that have been
or other parts of our business. We are committed to speaking up and preventing
assessed as having the highest risk of human rights The health, safety, and wellbeing of our people continues
retaliation. We encourage our employees to speak up
violations. In 2023, audits did not reveal any instances of Through our membership in the Responsible Business to be a top priority for Ford. Many of our internal
if something doesn’t seem right or might violate our
child, forced, or involuntary labor. We continue to evolve Alliance (RBA) we are assessing our operations and standards go beyond applicable laws and regulations
policies, our Code of Conduct, or the law. Ford will
our risk management system including continuous supply chain. We have increased human rights risk so that we can meet our commitment to protecting the
support and protect anyone who raises a good-faith
evaluation of our high-risk considerations. assessments in both our own operations and throughout safety of our workforce in all our locations.
concern and strictly prohibits retaliation against anyone
our supply chain.
In 2023, a media outlet raised allegations regarding for reporting a suspected violation or for assisting with
potential child labor occurring in Ford’s supply chain. an investigation.
We take these allegations seriously. Ford prohibits the In Product Safety and Quality on p.99
In Human Rights on p.88 In Employee Health and Safety on p.110
use of child labor in any form and requires our suppliers
to enforce similar policies. At the end of March 2023, Harassment and Discrimination In Human Capital Management and Diversity,
Ford completed a comprehensive audit of the supplier Equity, and Inclusion on p.104
Sustainability Aspiration:
mentioned in the article, including a third-party review Support a diverse, equitable, and inclusive workplace
by the Responsible Business Alliance, and no evidence of where each person is valued.
child labor was found at the supplier’s facility. That said,
Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices
25
Materiality Assessment — Sustainability Strategy — Sustainability Aspirations — Accelerating Progress — Create Sustainable Value — Human Rights Saliency Assessment — Stakeholders
Rights of Indigenous Peoples Peoples’ rights and gain Free, Prior, and Informed to a sustainable EV future takes into account the people
Human Rights Salient Issue: Consent. and communities that will be impacted most by this
Indigenous Peoples populated areas before the arrival pivotal change.
Ford Australia operates on the lands of the Wurundjeri
of others and often retain distinct cultural and political Woi-wurrung people (near Melbourne), Wadawurrung
characteristics. Indigenous Peoples are equal to all other people (Geelong area), and several other indigenous
peoples and have the right to full enjoyment of all In Human Capital Management and Diversity,
communities across the country. Equity, and Inclusion on p.104
human rights. This includes the right to self-determination
as well as maintenance, protection, and development of Ford Australia developed a Land acknowledgement and Emerging Salient Risk: Data Privacy and Use of AI
manifestations of their culture, whether that be through partnered with contemporary indigenous artist Brad Emerging Salient Issue:
land, water, or sacred sites, and the principles of free Turner in the creation of custom artwork to acknowledge Privacy refers to the right to have personal information
prior and informed consent. Indigenous Peoples continue and pay respect to indigenous Ancestors and Elders. Ford and interactions protected from exposure to the public
to suffer disproportionately from impacts of climate Australia acknowledges Aboriginal and Torres Strait and other unwarranted private entities. This issue is
change, environmental degradation, poverty, poor Islander people as the Traditional Owners of the land particularly salient in the emerging global context of
access to education, and human rights violations. Over where we proudly conduct our business. complex artificial intelligence (AI) systems that rely on
50% of global mining projects sit on or near Indigenous the collection and usage of users’ personal data.
Peoples’ land. Concerns about the development of AI extend beyond
In Human Rights on p.88
issues of privacy and data rights into freedom of choice,
2023 Update:
Impacts of EV Transition freedom of conscience, and the bias and discrimination
Ford works to uphold the rights of Indigenous Peoples
Sustainability Aspiration: that may arise from input data or algorithms themselves.
throughout our value chain. We have updated our
We Are Committed to Protecting Human Rights and the Achieve carbon neutrality no later than 2050. 2023 Update:
Environment policy to formally reflect our commitment We have policies and procedures to address data
Drive human progress by providing mobility and
to respecting the United Nations Declaration on the management and protect the privacy of our employees
accessibility for all.
Rights of Indigenous Peoples (UNDRIP) in both our own and customers. We continue to adhere to the Automotive
business and supply chain. Human Rights Salient Issue: Consumer Privacy Protection Principles developed by the
Ford’s transition from internal combustion engines to Alliance for Automotive Innovation. We are also a founding
As we directly source our EV battery material supply
electric vehicles creates specific risks and opportunities member of the Information Sharing and Analysis Center,
chain, we are aware of the risk mineral mining may
for the progressive attainment of human rights. This which gathers, analyzes, and shares information to
pose to Indigenous Peoples’ rights. Consequently, our
includes procedural rights risks, such as ensuring access combat cyber-related threats and weaknesses.
Responsible Materials Sourcing Policy reflects our
to information and meaningful participation in decision-
requirement that our raw material suppliers ensure Free,
making for workers, suppliers, and communities affected
Prior, and Informed Consent of indigenous communities
by plant closures or other transition events. In Data Protection, Privacy, and Cyber Security on p.132
is pursued and obtained prior to projects or activities that
may affect their lands, resources, and rights. 2023 Update:
Ford recognizes that urgent action is needed to address
In addition, we require that our raw material suppliers
climate change. As we transition to EVs, we’re committed
obtain certification from the Initiative for Responsible
to working closely with local communities and
Mining Assurance or third-party certified equivalent,
stakeholders to protect the environment and to create
which requires its members to respect Indigenous
jobs in the green economy. Supporting a just transition
Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices
26
Materiality Assessment — Sustainability Strategy — Sustainability Aspirations — Accelerating Progress — Create Sustainable Value — Human Rights Saliency Assessment — Stakeholders
Our Stakeholders
ESRS 2 SBM-2
90+
Ford has a commitment to direct, open, Blue Table Forum Our Value Chain
ESRS 2 SBM-1
transparent, and frequent engagement We established the Blue Table Forum in 2022. This
stakeholder advocacy program is focused on creating Ford has an extensive value chain, including over 1,600
with our stakeholders. Tier 1 suppliers and even more Tier 2+ supplier upstream,
and building a trusted community of organizational and
and over 8,000 dealers and countless customers and
Throughout each year, management meets with
institutional investors to discuss various matters,
institutional stakeholders from a diverse group of non-
governmental organizations (NGOs), nonprofits and global communities downstream. Organizations
including long-term strategy; financial and operating academic institutions. The goal is to initiate a dialogue with regional, national, and
global representation engaged
performance; risk management; environmental, social, around critical issues faced and how we can work together
through Blue Table Forum
and governance (ESG) practices; and executive to build a carbon neutral transportation future. To date, (2022: 40+ Organizations)
compensation programs. We also engage with retail the program has engaged over 90 organizations and 175
investors. These meetings are informative and, where influential thought-leaders with regional, national, and
appropriate, we incorporate stakeholder suggestions into global representation and a diverse stakeholder network
our policy and strategic considerations, Proxy Statement,
and communications strategy.
Our Stakeholders
— continued
ESRS 2 SBM-2
Key Stakeholders
Stakeholder Importance How we engage
Communities Communities are the lifeblood of any society or culture. • Neighborhood Advisory Councils
Communities where we live and work and where we partner with businesses, schools, By engaging with our communities, we can help people • Interactions with governments and regulators
nonprofit service organizations, and government organizations are critical to our future. in need, understand what our customers want, and • Participation in and Sponsorship of Community Events
Through our Community Relations team, we focus on the communities in which we have strengthen the bonds that make us a viable and • Membership associations
manufacturing facilities. We engage with these communities in multiple ways to manage relevant business. • Dialogue with non-governmental organizations
the impact Ford has on the community and understand the community sentiment. • Partnerships with community leaders, grassroots and nonprofit organizations, and
Through our philanthropic arm, Ford Fund, we’ve been giving back and building strong local Ford dealers
communities for more than 70 years. Ford Fund co-creates and invests in partnerships and • Employee volunteerism, grantmaking, and philanthropic initiatives through the
programs across three impact areas: essential services, education for the future of work, Ford Fund
and entrepreneurship. Working across the Ford network in the U.S. and around the world, • Government relations — supporting policy that benefits our communities
we provide access to resources and opportunities that build equity, help make people’s
lives better, and create opportunities for growth.
Customers Without customers, Ford would not exist, so it’s vital • Customer experience measurement platform
Our relationship with our customers is at the core of our company. We seek to engage our that we do everything we can to nurture these • Market research
customers in new and inclusive ways to get deeper knowledge of their wants and needs. relationships and provide the products and services • Loyalty and membership rewards programs
We want to go above and beyond to deliver products and services that customers can’t live they not only want and need, but can’t live without. • Dealer interactions
without and develop strong customer relationships that can last a lifetime. Together with • Ford service Pickup & Delivery and Mobile Service experiences
our dealers, we are creating a better purchase and ownership experience for our customers • FordPass app
to help build life-long trust and satisfaction. Customers engage with the company face-to- • Ford.com website
face in our dealerships, over the phone, on our websites and social media, at our contact • Ford Owners magazine
centers, and inside our vehicles. And through our internal customer experience • Friends of Ford
measurement platform and market research, we listen and respond to customer feedback,
increasing our understanding of their needs, concerns, and preferences, and providing
actionable insights to our dealers and touchpoint owners to drive enhanced experiences.
Dealers Dealers are an essential part of the Ford family because • Intranet communications
Dealers (sales and service people) are often the first Ford representatives that our they are the most direct link between our products and • Brand sales and service representatives
customers come in contact with. We rely on their expertise and dedication, actively services and our customers. Dealers are typically the • Brand Dealer Councils
engaging and collaborating through Dealer Councils and roundtables, as well as the only connection customers have with Ford. • Dealer roundtables
creation of advertising and public service announcements. An important touchpoint for • Ford Guest Experience dealer training
us is the Dealer Attitude Survey, which provides us with useful information and insights. • President’s Circle
To honor their excellence, we conduct our annual Salute to Dealers awards. • Salute to Dealers
• Advertising and public service announcements
• Dealer Attitude Survey
Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices
28
Materiality Assessment — Sustainability Strategy — Sustainability Aspirations — Accelerating Progress — Create Sustainable Value — Human Rights Saliency Assessment — Stakeholders
Our Stakeholders
— continued
ESRS 2 SBM-2
Investors, Analysts, and Shareholders Investors, analysts, and shareholders are instrumental • Investment community forums
For our institutional and individual investors — our shareholders — to believe that Ford will in providing capital to maintain and grow our business. • Quarterly earnings communications
continue to succeed financially, they tend to rely on the opinions and research done by And since they are profit oriented, they insist that • Annual shareholders’ meeting
financial analysts who study the company in great detail. To make sure we communicate capital is invested properly and funds are managed • Integrated Sustainability and Financial Report
effectively with these financial stakeholders, we provide a broad range of materials, accurately. • Investor website
including our Integrated Sustainability and Financial Report, Proxy Statements, our annual • Proxy Statement
report on Form 10-K (SEC filings), and quarterly earnings releases. These published • SEC filings (e.g., 10-K, 10-Q, 8-K)
documents provide vital information on the company that supplement our annual • Sustainable Financing Framework
shareholder meetings, investor conferences, and annual ESG roadshows. • Sustainable Financing Report
• Ratings and rankings
Suppliers Suppliers play a huge role at every stage of the • Supplier Code of Conduct
Thousands of businesses, large and small, provide Ford with the materials, technologies, product life cycle, from sourcing raw materials to • Global Terms and Conditions
and services that we need to produce market-leading, cost-effective vehicles. From engine helping ramp up production, thereby making a • Top Supplier meetings
components to recycled fabric for car seats, we rely on suppliers from all over the world and significant contribution to our value, growth, and • Manufacture 2030
maintain stringent standards and rules to make sure our products are of the highest quality. development. • Supplier quality roundtables
In addition to holding regular meetings with individual suppliers as required, we also share • Supplier training
best practices to help them with everything from improving workplace safety, treating • Supplier Diversity Development Networking
their employees fairly and without prejudice, and reducing their impact on the environment. • External supplier organizations and partnerships
To strengthen these initiatives and relationships, we are also supporters and members and • Third-party assurers including the Initiative for Responsible Mining, Responsible
of a wide range of external supplier organizations, coalitions, and associations. Minerals Initiative, and Responsible Business Alliance
• Drive Sustainability Self Assessment Questionnaires
• Responsible Business Alliance Worker Voice Platform
Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices
29
Materiality Assessment — Sustainability Strategy — Sustainability Aspirations — Accelerating Progress — Create Sustainable Value — Human Rights Saliency Assessment — Stakeholders
Our Stakeholders
— continued
ESRS 2 SBM-2
Ceres Stakeholder Engagement Ford Response: In addition, we require that our raw material suppliers Ceres Recommendation:
As in recent years, a stakeholder team selected by Ceres End of life vehicles are a crucial part of our supply chain, obtain certification from the Initiative for Responsible Enhance battery safety measures in EVs to contain
provided recommendations for our future reporting. and we are committed to increasing battery recycling. Mining Assurance or third-party certified equivalent, which isolated incidents and prevent escalation, while also
Representing a range of constituencies and expertise, the To further these efforts, we support various battery requires its members to respect Indigenous Peoples’ reinforcing overall vehicle design to ensure passenger
most recent Ceres stakeholder engagement convened on recycling companies, including with letters of support rights and gain Free, Prior, and Informed Consent. safety even in the event of component failures.
January 31, 2024. Ford’s responses to a select number of for U.S. DOE grants.
Ford Response:
their recommendations are summarized below. We have also begun utilizing collection points to reduce Ensuring the safety and quality of EV batteries is crucial
In Human Rights on p.88
Ceres Recommendation: inefficiencies in shipping one-off, end of life batteries to building trust in our fleet of electric vehicles. Every
across the country — this allows us to ship full-truck Ceres Recommendation: Ford EV includes a battery quality operating system.
Expand charging infrastructure by strengthening
loads reducing our environmental footprint. End of life Utilize Ford’s influence and resources to support and Quality checks and tight process controls are integrated
strategic partnerships with utility companies and
batteries are sent to recyclers who are dedicated to enhance small-scale mining operations, encouraging them throughout the battery cell manufacturing and battery
relevant stakeholders.
recovering the underlying raw materials with the intent to adopt and advance sustainable and responsible practices. pack screening during vehicle assembly. Once a vehicle
Ford Response: of reintroducing these materials into the broader battery is built, Ford leverages cloud-based vehicle monitoring
Ford Response:
Collaboration plays an essential role as we work to supply chain industry. and detection and can communicate with connected
Ford supports Better Mining, an on-the-ground program
strengthen the charging infrastructure. That’s why we’ve customers if a voltage anomaly is detected. Ford also
to proactively identify risks and improve conditions in
joined the U.S. Joint Office of Energy and Transportation provides high voltage safety publications including a
nine artisanal and small-scale cobalt mine sites in the
to launch the National Charging Experience Consortium In Circular Economy and End of Life on p.76 Workshop Manual for vehicle technicians and an
Democratic Republic of the Congo. This program
(ChargeX Consortium), a new effort to rapidly develop Emergency Responders Guide for first responders.
Ceres Recommendation: contributes to building the capacity of legal artisanal and
solutions to improve EV charging across the U.S.
Establish and implement a policy on Indigenous Peoples’ small-scale mining cooperatives and sector, supporting Ford EVs are subjected to crash testing that far exceeds
This cross-industry group of automakers, charging Rights and Free, Prior, and Informed Consent (FPIC), in state services to help achieve responsible practices in the the stringency of regulatory requirements. For example,
providers, utilities, and the Department of Energy (DOE) accordance with the UN Declaration of the Rights of sector, and meet due diligence requirements. Capacity we conduct front, side, and rear impact crash tests at
national laboratories aims to drive innovation and Indigenous Peoples. building will also help mining communities meaningfully 5mph above the speeds required by safety regulations,
universal enhancements around current and future participate in global supply chains. which translates to increased impact energy and severity
Ford Response:
public charging infrastructure and the entire customer as compared to what is required by law.
Ford works to uphold the rights of Indigenous Peoples In 2023, this effort led to tangible risk management
experience.
throughout our value chain. We have updated our improvements, including the establishment of an Ford has executed a number of battery safety projects
We Are Committed to Protecting Human Rights and the accessible grievance mechanism for the artisanal and funded by the U.S. Department of Transportation
Environment policy to formally reflect our commitment small-scale mine sites being monitored, the prevention National Highway Traffic Safety Administration and the
In Electric Vehicles, Batteries and Charging Infrastructure
on p.34 to respecting the United Nations Declaration on the of incidents of child labor and work by individuals U.S. Department of Energy to support governmental and
Rights of Indigenous Peoples (UNDRIP) in both our without adequate personal protective equipment, as industry priorities in electrified vehicles. We are also
Ceres Recommendation:
own business and supply chain. well as the improvement of work and safety conditions sponsoring and funding precompetitive battery safety
Explore and invest in opportunities for the second-life
on mine sites. research projects related to EV and battery safety.
applications and recycling of EV batteries and develop Our Supplier Code of Conduct and Responsible Materials
the necessary infrastructure to support the circularity Sourcing Policy reflect our requirement that our raw
of battery usage. material suppliers ensure Free, Prior, and Informed
In Human Rights on p.88 In Product Safety and Quality on p.99
Consent of indigenous communities is pursued and
obtained prior to projects or activities that may affect
their lands, resources, and rights.
Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices
30
Overview — Business Segments — Electric Vehicles, Batteries, and Charging — ICE and Hybrid Vehicles — Connected Vehicles and Digital Services
Products
and Services
In this section:
31 — Products and Services Overview
32 — Customer Focused Business Segments
34 — Electric Vehicles, Batteries, and
Charging Infrastructure
38 — ICE and Hybrid Vehicles
40 — Connected Vehicles and Digital Services
Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices
31
Overview — Business Segments — Electric Vehicles, Batteries, and Charging — ICE and Hybrid Vehicles — Connected Vehicles and Digital Services
Products
and Services
Overview
We are on a journey to transform our company by building sustained,
Our Sustainability Aspirations UN Sustainable Development Goals
always-on customer relationships through vehicles, software, and
Climate Change: Achieve carbon We are contributing to the following UN
services that are better for the planet, make life easier — and that Sustainable Development Goals through actions
neutrality no later than 2050
people won’t want to live without. outlined in this chapter:
Customer Focused
Business Segments
ESRS 2 SBM-1
Ford+ is our plan for growth and value Ranger pickup and our Everest SUV continue to gain It’s a massive driver of our growth and profitability.
Aspirational Goals share in international markets. We believe Ford Blue will The network of thousands of local upfitters across
creation in an era of unprecedented
be a strong and a growing business for years to come. Europe and North America, purpose-built design, and
change for our company and our BUILT FORD TOUGH work trucks and vans like Super
industry. It enables us to thrive at the Duty, Ranger, and Transit, all, serviceable by Commercial
intersection of great vehicles, iconic In ICE and Hybrid Vehicles on p.38 Vehicle Centers and Transit Centres, help customers
Climate Access get the job done and stay on the road. In addition to
brands, innovative software, and high- Ford Model e
the E-Transit with enhanced range, we are preparing
Salient Human Rights Issues value services. EVs are here to stay, customer adoption is growing,
to launch the new E-Transit Custom, E-Tourneo Custom,
and their long-term upside is central to Ford+. We are
Central to unleashing the full potential of this plan was Transit Connect plug-in hybrid (PHEV), and Tourneo
committed to developing and delivering compelling,
standing up three distinct but interconnected customer- Connect PHEV in Europe.
software-defined EVs at scale — including trucks,
focused business segments in 2023 — Ford Blue, Ford When it comes to software and services, Ford Pro is
vans and SUVs in segments where we are strong, as
EV Transition Model e, and Ford Pro. This allows Ford to offer broad the tip of our always-on digital spear. Customers know
well as a new generation of smaller, more affordable
choice to customers across gas, hybrid, and electric and trust our vehicles, and we’re building on this with
electric vehicles.
UN Sustainable Development Goals vehicles as we move toward carbon neutrality. The software-driven services that provide businesses with
structure is already paying off with increased focus, As we do so, we’re building on a strong EV foundation.
data insights, vehicle access, control and functionality,
accountability, disciplined capital allocation, and the Our electric vehicle lineup continues to generate huge
and charging and fleet management. This helps them
ability to attract talent. It also gives us the speed and demand as reflected in our status as number 2 in EV
drive productivity and efficiency in their fleet operations.
flexibility to adapt to the evolving needs of our sales in 20237 for the second year in a row. Sales volumes
customers. of the F-150 Lightning pickup and Mustang Mach-E SUV Ford Pro is helping companies and governments around
both were up year over year with the Lightning the top- the world accelerate their sustainability commitments
In 2023, we also established Ford Integrated Services, a though electrification. For example, the United States
selling electric pickup and the Mach-E the third most
new team that will create and market software-enabled Postal Service announced in February 2023 that it will
popular EV of any type in the U.S. for 2023.
customer experiences across our business segments, purchase 9,250 E-Transit vans as it electrifies the
further accelerating our Ford+ transformation and Model e is also deep into development of the electric
country’s largest federal fleet.
helping us capture new revenue streams. architecture and digital platform which will provide
the foundation for rapid innovation across all future
Ford vehicles.
In Connected Vehicles and Digital Services on p.40
In Human Capital Management and Diversity,
Ford Pro
Equity, and Inclusion section on p.104
Ford Pro is a one stop shop for commercial businesses
Ford Blue
with vehicles, software, charging, financing, and services
Ford Blue leverages the strength of strong brands such designed to meet the needs to small, medium, large, and
as Mustang, Bronco, and Raptor with durable pricing government fleets. Ford Pro helps accelerate productivity
power and will be introducing a wave of new products: for commercial and government customers by lowering
the new F-150, the Ranger, a brand-new Explorer and their total cost of ownership and reducing fleet
Expedition, and Lincoln Navigator and Aviator. downtime with a leading lineup of specialized gas,
In Europe, we are bringing out new versions of Puma hybrid, and EVs.
and Kuga, our high-volume gas and hybrid SUVs. And the
Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices
33
Overview — Business Segments — Electric Vehicles, Batteries, and Charging — ICE and Hybrid Vehicles — Connected Vehicles and Digital Services
2
Europe, leading the industry for the past nine years. consumer demand while at the same time targeting
Ford in Europe is taking the next steps in the carbon neutrality across its European facilities, logistics,
transformation of our business in Europe, responding and key suppliers by 2035.
to rapidly changing market conditions and a growing Ford in China
field of electric vehicle competitors entering the market. in EV sales in North America, for the
Our strategy to turn our business around in China is second year in a row
This transformation is designed to continue to deliver
gaining traction. The restructuring of our EV business
on our customers’ expectations of outstanding vehicle
there is nearly complete, and the internal combustion
design and quality and increasingly serve customers
engine business is now profitable. We are now expanding
with connected vehicle technology and services.
China’s role to a profitable export hub. We’ve exported a Number
These actions will enable us to profitably compete with record number of vehicles from China to markets like
a new line-up of iconic passenger vehicles, while also
extending Ford Pro’s position as the best-selling brand
in the commercial vehicle sector.
We are focused on building a profitable • The E-Transit — an electric version of America’s best- Developing the Next Generation of EVs
Aspirational Goals selling van3 — is smart and connected, and will arm
EV business that aligns manufacturing The ultimate success of our EV transition will be driven
fleet owners with technology solutions like a high- by our future generation products designed from the
capacity and capital allocation with speed in-vehicle data architecture and cloud-based ground up. As we develop these next-generation
customer demand. services to offer new ways to optimize fleet products, we’re aiming to eliminate the compromises
performance. New for the 2024 model year, E-Transit customers may face in choosing an EV. At the same time
2023 has been a year of challenges — and opportunities.
Climate Access with enhanced range offers 26-32% increase in range we’re leveraging EVs’ inherent advantages to make
From the evolution of the EV market, to new global
for work requiring longer distances and new use cases incredible products that customers are waiting for today.
Salient Human Rights Issues competitors and technology disruptions, our business
such as refrigeration.
is always subject to change. Ford will continue to adapt Our next-generation vehicles will be cost-optimized
to grow our EV business. • The European electric Explorer offers an outstanding and guided by the learnings of our first-generation
digital experience with a fully loaded infotainment vehicles that are currently available. Not only must
The Electric Era is Here
system, 15-inch movable screen, wireless app these products be breakthrough in efficiency, but they
EV Transition We are in the midst of implementing an ambitious, integration, and advanced driver assistance, coming must also be packed with innovation.
comprehensive plan to make the transition to an electric in 2024.
UN Sustainable Development Goals lifestyle — or commercial fleet — easy. To support this, two years ago, we established a small,
11 SUSTAINABLE CITIES AND COMMUNITIES • The new E-Transit Custom is the EV successor to talented team that is developing a smaller, more
We started by electrifying our most iconic products — Europe’s best-selling van with uncompromised affordable platform for future electric vehicles. This team
the Mustang, F-150, and Transit — which quickly helped capability, new customer experiences, and full Ford is creating flexibility for multiple silhouettes and form
elevate Ford to the number 2 EV brand in the U.S. in 2022 Pro support. factors for retail and commercial customers with an
and again in 20233. In addition to offering zero-emissions
• The E-Tourneo Custom, Transit Connect plug-in hybrid intense focus on cost competitiveness and efficiency.
versions of our most popular vehicles, we are harnessing
electrification to deliver more of what customers love (PHEV) and Tourneo Connect PHEV further expand Ford Smaller EVs will play a role in our strategy. They are
about them: performance, capability, and productivity. Pro’s commercial electric vehicle portfolio in 2024 and attractive to scale for a larger number of customers
all are backed by Ford Pro’s connected services for and show them all the benefits that EVs can provide —
• The electric Mustang Mach-E brings the 0-60 mph unmatched productivity. from lower operating and maintenance cost over the life
thrills Mustang is famous for, in a sleek package
A key part of Ford’s goal to drive the adoption of electric of the vehicle, to zero carbon dioxide emissions.
brimming with the latest technology and software.
vehicles is to target the large market for fully electric The development of our next-generation EVs is
• New for 2024, we are introducing the first rally-inspired commercial vans and trucks. Ford is planning to bring supported by a flexible industrial footprint; the
Mach-E — the Mustang Mach-E Rally. This machine the benefits of electric vehicles to these customers with redesigned Cologne Electric Vehicle Center opened
boasts a tuned version of the Mustang Mach-E GT an accessible price point, improved productivity, and in 2023, BlueOval City development is on track in
powertrain, with a two-motor layout targeting at least lower cost of ownership. Tennessee, and we’re building the country’s first
650 lb.-ft. of torque and 480 horsepower.8
automaker-backed and wholly owned and operated
• The F-150 Lightning brings stunning innovation, lithium iron phosphate (LFP) battery plant, BlueOval
technologies and capabilities to the F-Series, America’s Battery Park, in Michigan.
best-selling truck3, combined with the power, payload,
and towing capability that is the hallmark of all Built
Ford Tough trucks.
Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices
35
Overview — Business Segments — Electric Vehicles, Batteries, and Charging — ICE and Hybrid Vehicles — Connected Vehicles and Digital Services
Batteries Customers can also access chargers from Francis Energy, Home Charging
New Markets and Models for the F-150 Lightning A Second Battery Chemistry Blink, and Red E across the U.S. and Canada with EV customers in North Carolina will have chance to save
The F-150 Lightning went global for the first time As part of our company’s commitment to making EVs embedded charger routing and simple payment options money, increase the use of renewable energy and
with entry into Norway, the world’s most advanced more affordable and accessible to customers, we are via FordPass or Ford Pro Intelligence. These three support electric grid resiliency while charging at home,
electric vehicle market, where 82% of new car sales introducing lithium iron phosphate (LFP) batteries providers bring more than 10,000 new chargers to the thanks to a new pilot program we’ve launched with Duke
are electric. to some of our EV lineup. Durable LFP batteries, our network, including more than 550 new DC fast chargers. Energy. The EV Complete Home Charging Plan pilot aims
second battery chemistry, tolerate more frequent and to bring more certainty to the cost of EV home charging
In the U.S., a new F-150 Lightning model — F-150 Ford EV customers have access to more than 15,000
faster charging while using fewer high-demand, high- by providing a low, fixed monthly rate for electricity
Lightning Flash™ — is a tech-forward offering that Tesla Superchargers across the U.S. and Canada. Mustang
cost materials. used in exchange for allowing Ford and Duke Energy to
brings together most of current customers’ favorite Mach-E, F-150 Lightning, and E-Transit customers will
manage charging times to best support the electric grid.
features at a more compelling price point. The F-150 As we scale EV production, introducing lower-cost LFP be able to access the Superchargers via an adapter and
Lightning Flash expands on the XLT model line batteries at scale will help us contain or even further software integration along with activation and payment The pilot program will help support electric grid
by adding in-demand tech capabilities, including reduce EV prices for customers, while allowing us to via FordPass or Ford Pro Intelligence. In the future Ford resiliency by seamlessly managing selected customers’
an extended-range battery, which has a targeted produce more electric vehicles and offer more choices will produce next-generation electric vehicles with the home charging schedules when there is less strain
EPA-estimated range of 320 miles, available Ford to new EV customers. North American Charging Standard (NACS) connector on the grid and when more renewable energy is
BlueCruise hands-free highway driving, and a built-in, eliminating the need for an adapter to access readily available.
LFP battery technology also helps reduce reliance on Tesla Superchargers.
standard 15.5-inch touchscreen for seamless In Europe, we’re partnering with industry innovators
critical minerals such as nickel and cobalt and is in line
interactions and navigation. The F-150 Lightning The BlueOval Charge Network provides one stored to deliver new energy experiences that will enable
with our work to create an EV supply chain that upholds
Flash customer values an EV powertrain and payment account through the FordPass App, or Charge Ford customers to charge their EVs using energy
its commitments to sustainability and human rights.
advanced tech features paired with a more accessible Assist App (soon to be “Public Charge”) in the vehicle’s tariffs specifically designed to enhance the ownership
price point and the F-150’s proven ability to handle BlueOval Battery Plant touchscreen, eliminating the need for on-site credit experience. Developed to support Ford’s expanding EV
anything, whether people, pets, or gear. In support of our commitment to this second battery card use. Once owners have created an account and line-up, the opportunities will initially be available from
chemistry, we are building the country’s first automaker- activated Plug & Charge, Tesla Superchargers will support early 2024 to drivers of Ford Mustang Mach-E, followed
backed and wholly owned and operated LFP battery Plug & Charge with Ford EVs. This means customers by the new all-electric Ford Explorer when it arrives later
plant, called BlueOval Battery Park Michigan. We are simply have to plug in and charging will automatically in the year.
right-sizing this project as we balance investment, start with charges managed through FordPass.
A newly developed Dynamic Charging feature is
growth, and profitability.
In Europe, the BlueOval Charge Network provides designed to enable Ford EVs to communicate with the
Charging Network customers with access to over 500,000 plugs. Retail energy providers’ intelligent supply networks. As a
Creating a seamless and simple public charging customers can find charging stations and pay for result, owners of compatible models will be able to plug
experience is key to accelerating EV adoption and charging using FordPass. Larger fleets can access Ford in their vehicle, input their desired state-of-charge and
providing customers with range confidence. Charge Assist via SYNC in Europe and North America. departure time using a smartphone app and simply get
on with their day — safe in the knowledge that their
Customers in North America have more options than Ford continues to strengthen its EV charging experience in
battery will be automatically charged using tariffs
ever before — and the number continues to grow. China. Ford Mustang Mach-E owners can access a network
designed to help maximize cost savings and the use of
Our BlueOval™ Charge Network in North America is of 660,000 public charging plugs from 20 charging
renewable energy.10
growing by 25%, bringing the new network total to operators in China — including 470,000 fast-charging
more than 111,000 chargers.9 plugs and public charging sources across 350 cities.
Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices
36
Overview — Business Segments — Electric Vehicles, Batteries, and Charging — ICE and Hybrid Vehicles — Connected Vehicles and Digital Services
Energy Services:
Ford’s Vehicle-to-Grid
BUSINESS HIGHLIGHT
Collaborating to Strengthen Charging Infrastructure utility reimbursement reporting, important for home- Designed to be highly efficient, the 125-hectare site is
Collaboration plays an essential role as we work to based drivers. equipped with a brand-new production line, battery Ford Pro and Xcel Energy
strengthen the charging infrastructure. That’s why we’ve assembly, and state-of-the-art tooling and automation. Ford Pro and Xcel Energy, a national leader in
Using Ford Pro Charging solutions can also allow
joined the U.S. Joint Office of Energy and Transportation Following the successes of Mustang Mach-E, E-Transit, clean energy, announced in December a unique
customers to charge more vehicles at a given time.
to launch the National Charging Experience Consortium and F-150 Lightning, we unveiled our fourth EV globally, collaboration to support the deployment of 30,000
The software also tracks performance and provides fleet
(ChargeX Consortium), a new effort to rapidly develop the electric Explorer, which will be the first electric EV charging ports in Xcel Energy service territories
managers with insights like kWh consumption, charge
solutions to improve EV charging across the U.S. vehicle to be produced in Cologne, followed by a second across the U.S. by 2030. Most upfront costs will be
speed and distance to empty, and helps optimize total
electric vehicle, a sports crossover. offset by Xcel for qualifying business fleet
This cross-industry group of automakers, charging cost of ownership.
providers, utilities, and the Department of Energy At the core of the Cologne EV Center are digital customers11. Ford Pro will offer its suite of end-to-end
Businesses can also help lower their total cost of advancements that connect machines, vehicles, and charging solutions to Xcel Energy business customers
national laboratories aims to drive innovation and
ownership through understanding the various incentives workers. Implementing self-learning machines, as part of the effort.
universal enhancements around current and future
available to them. To help ease confusion, Ford Pro has autonomous transport systems, and big data
public charging infrastructure and the entire customer The 30x30 collaboration is an innovative approach
compiled commercial incentives to make it easy to find management in real time are integral to continuously
experience. The consortium will immediately focus on between a vehicle manufacturer and utility provider
available tax credits on EVs, charging equipment, and improving the efficiency of the production processes,
payment processing, user interfaces, and vehicle-to- to streamline the process for businesses to acquire
charging installation costs at https://www.fordpro.com/ assuring high quality. In addition, not only will new
charger communication, as well as work toward EV charging and support. This novel approach
en-us/incentives/. We have also launched a program with cognitive and collaborative robots, and augmented
collaborative diagnostic data sharing to further support provides energy and utility companies a template
professional services firm Ernst & Young LLP (EY US) to reality solutions support plant employees, but they will
solutions for all stakeholders. for future collaboration, helping them meet the EV
help give customers no-cost information to learn about also increase efficiencies and data exchange with other
Commercial Charging IRA tax credits for which they may qualify. charging infrastructure needs of businesses in their
plants enabling them to share experiences in real time.
Ford Pro is laser focused on delivering reliable charging service areas.
Transforming our Industrial System to Expand Ford’s First Carbon neutral Assembly Plant
solutions that meet the needs and EV use cases of its
EV Production Once fully operational, the Cologne EV Center will
commercial customers including home, depot, and
We are taking a diverse strategic approach to transforming be independently certified as carbon neutral. This North American EV Production
public charging with software to efficiently manage it.
our industrial system to expand EV production by independent certification will be audited and reconciled BlueOval City, our all-new mega-campus in West
To support this, Ford Pro has added new charging
reimagining existing manufacturing sites like those on a regular basis against purchasing high-quality carbon Tennessee, is taking shape and preparing to build our
hardware to its suite of end-to-end solutions to help
in Cologne, Germany. offsets for any remaining emissions. As Ford’s first next-generation electric truck. This is an opportunity
make it easier for commercial customers to transition
carbon neutral assembly plant to open globally, the to revolutionize America’s truck by combining a century
their fleets to electric. The new Series 2 AC Charging Cologne EV Center Paves the Way to the Future
Cologne EV Center supports our commitment to reach of know-how with world-class electric vehicle, software,
Station 80 amp and expanded DC Fast Charger options The opening of the Cologne Electric Vehicle Center in
carbon neutrality across our entire European footprint and aerodynamics talent.
are designed for commercial vehicle use and packed Germany represents a major step along our journey to
with new features. Coupled with Ford Pro’s charging of facilities, logistics, and direct suppliers by 2035.
carbon neutrality and our electric future. This high-tech
management software, Ford Pro provides a fully production facility will build our new generation of
integrated solution that simplifies EV charging for both electric passenger vehicles for millions of European Read More
Ford Blue is a vibrant global industrial We also have a wave of new products coming: the new Advanced Transmissions and Drivelines
Aspirational Goals F-150, a brand-new Explorer and Expedition and Lincoln
powerhouse with iconic vehicles and We continue to optimize our transmissions to improve
Navigator and Aviator. In Europe, we’re bringing out fuel economy and emissions. Highly efficient eight-,
a runway for profitable growth. new versions of Puma and Kuga, our high-volume gas and ten-speed planetary transmissions have been
Internal combustion engine (ICE) vehicles remain an and hybrid SUVs. And the Ranger pickup and Everest widely deployed across our vehicles and the volume
important part of the Ford story. ICE volumes will decline SUV continue to gain share in international markets. of hybrid electrified transmissions continues to increase.
Access
as EV adoption increases, and we embrace that reality. We have been producing hybrids for 20 years, and remain Our transmission team has shifted focus to design and
Salient Human Rights Issues However, the pace of EV adoption will vary by segment committed to building hybrids for the foreseeable future. develop innovative power unit (electric drive unit)
and geography with Europe and China transitioning Hybrids will play an important role during the transition technologies and features for electrified vehicles.
faster than the U.S., our biggest market. Consequently, to EV, particularly in markets where the EV infrastructure
we expect strong U.S. ICE and hybrid sales well into the is not mature. Consequently, we’re broadening our hybrid
next decade. powertrain offerings.
EV Transition
We are committed to continuously improving our Diesel Engines
UN Sustainable Development Goals ICE powertrains to achieve better fuel economy while
Modern diesel engines can offer reduced carbon dioxide
meeting increasingly stringent emissions criteria.
11 SUSTAINABLE CITIES AND COMMUNITIES
We’re creating and offering services Customers can stream music, audiobooks, and podcasts CarPlay and Apple Maps then calculates the vehicle’s
Aspirational Goals using downloaded entertainment apps, as well as estimated state of charge when it reaches a destination.
that will make our customers’ live
embedded SiriusXM with 360L,15 for a personalized Apple Maps will route drivers to a charging station if it
better while delivering significant listening experience so they are always available in estimates that a charge is required. Apple Maps EV
ongoing value. the vehicle — regardless of whether a smartphone is Routing is currently available for certain Mustang Mach-E
connected in the vehicle. owners.17 It is coming to the F-150 Lightning in 2024.
Access
We are deep into the development of our future
software platforms which provide the foundation for The Premium Connectivity plan enables even more Mustang Mach-E and F-150 Lightning drivers who use
Salient Human Rights Issues rapid innovation and a profitable new software and capability, such as downloading apps into the car, for Google Maps through Android Auto will also gain access
services business, as we continuously improve video play, video conferencing, gaming, and even to more sophisticated routing capability to help with the
experiences for our customers. internet browsing — all while parked. charging needs of an electric vehicle, especially on road
trips. Google Maps will be able to deliver routing
Ford and Lincoln Digital Experience Ford and Lincoln Digital Experience will be introduced
information for Ford EVs including battery on arrival
As our lives increasingly center around digital in a variety of vehicles coming to market, beginning with
EV Transition estimate, end of range Indicator, auto-suggested
ecosystems, consumers expect consistent access to the the 2024 Lincoln Nautilus and 2025 Lincoln Aviator, and
charging stops, minimum recommended charge, and
UN Sustainable Development Goals most important people, content, and services across their the 2025 Ford Explorer. SYNC 4 remains available in
battery on arrival estimate (next stop). The feature works
11 SUSTAINABLE CITIES AND COMMUNITIES
devices. We’ve introduced the Ford and Lincoln Digital some of our vehicles.
when a user connects their smart phone and activates
Experience to provide our customers with seamless The Ford and Lincoln Digital Experience is the fastest Android Auto in the vehicle and uses Google Maps for
connections when they hit the road. infotainment system Ford and Lincoln has ever offered. navigation. EV Routing for Android Auto will be rolled
The Ford and Lincoln Digital Experience represents It is designed to enable more new apps and services out via an OTA software update in 2024.
a step forward in our approach to the design and in the future thanks to over-the-air (OTA) software
Ford Pro Software and Connected Data
development of in-vehicle infotainment systems. update capability.16
With the software and connected data that Ford Pro offers,
This all-new infotainment platform further improves Over-the-Air Software Updates we can help fleet managers and business owners solve
the connected vehicle experience. With Ford and
OTA software updates are a critical capability and a some of their biggest challenges like uptime, safety and
Lincoln Digital Experience, customers can access their
real differentiator for us. Ford vehicles are equipped security, lower total cost of ownership, and increasingly,
digital lives, including their favorite apps and services
with advanced OTA update capability for quick and environmental sustainability.
from Google and Amazon, through a new integrated
easy wireless upgrades that can help enhance quality,
native experience, as well as with Apple CarPlay® Technology is driving a paradigm shift and Ford Pro is
capability, and improve the ownership experience over
powered by iPhone, and Android Auto™ through other uniquely positioned to integrate new digital solutions
time while reducing dealer trips. Convenient, routine
compatible devices.13 that build on our strong foundation of vehicle leadership
software updates keep our customers’ vehicles
and our unmatched support network.
Google Assistant serves as the default voice assistant. performing at their peak. We’ve delivered more than
Alexa Built-In is also available as an alternative for in- 25 million OTA updates, enabling us to make our We currently have over 500,000 paid software business
vehicle controls and can help with making calls, sending vehicles even better over time. subscriptions for solutions such as telematics and
texts, setting a meeting, or controlling connected home charging and fleet management software. This
For example, Mustang Mach-E owners can now plan
devices.14 Integrated Google Maps offer real-time traffic, represents a 46% increase in 2023.
long EV journeys via Apple CarPlay with the Apple Maps
road conditions, dynamic and eco-friendly routes, and
EV Routing feature17, which creates a route to a driver’s Our paid software attach rate in 2023 was 12% of our
points of interest.
preferred destination — including EV charging stations connected vehicle base, and we expect this to grow to
along the way. Drivers simply enter trip details into a third of Ford Pro connected vehicles by 2026. This will
Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices
41
Overview — Business Segments — Electric Vehicles, Batteries, and Charging — ICE and Hybrid Vehicles — Connected Vehicles and Digital Services
add even more value for our customers through features BlueCruise Hands-Free Highway Driving BlueCruise Expands to Europe Everything we do is about the customer and we spent
like intelligent predictive maintenance, advanced fleet 19
BlueCruise enables hands-free highway driving In 2023, Ford expanded the availability of BlueCruise a lot of time listening to customers who use BlueCruise
controls, as well as other safety and security capabilities. technology that can help make highway driving easier, beyond the U.S. and Canada to customers in Europe every day. One professional told us the worst part of
and more enjoyable whether on a daily commute in across three countries. BlueCruise received approval for their day was going to and from work, and now it is the
Ford Pro software integrates with our physical service
stop-and-go traffic or a road trip. BlueCruise allows Ford use on the motorway network in Great Britain, becoming best part of their day because they are using BlueCruise
network and combines data from vehicles, charging
and Lincoln owners to drive hands-free while BlueCruise the first advanced driver assistance system that delivers — their commute has gone from monotonous to
hardware, and daily fleet activity into a digital interface
steers, accelerate and brakes, and keeps the vehicle true hands-free driving at highway speeds in Europe. enjoyable. A teacher who has spent 25 years commuting
that a fleet manager or business owner can easily access
centered in the lane. A driver-facing camera monitors eye Approval in Germany and then Spain quickly followed, around an hour to work each way, can enjoy her coffee
and integrate into their existing systems. Our software
gaze and head position to ensure the driver is actively with Ford being the first automaker to receive approval and breakfast and arrive with more peace of mind.
offering allows us to provide tailored preventive repair
monitoring the road. The latest versions of BlueCruise in Spain for hands-free highway driving. Now, customers
and diagnostics using vehicle history.18
also include features such as Lane Change Assist, with BlueCruise-equipped Mustang Mach-E vehicles in
BlueCruise by the Numbers in 2023
We’ve created a curated system of Ford built applications allowing a driver to switch lanes hands-free with the tap approved countries are able to use and enjoy hands-free
and third-party solutions that work together and can highway driving. • 290,000 + BlueCruise-equipped vehicles on the
of the turn signal when the path is clear, and In-Lane
even support fleets with multiple makes of vehicles. road globally across Ford and Lincoln
Repositioning, which helps provide more space by subtly Value of BlueCruise for Ford and Lincoln Customers
Our customers are already realizing the benefits of our shifting away from vehicles in adjacent lanes. BlueCruise • Customers have spent more than 2.3 million hours
Driving can be tiring, stressful, and physically draining.
Ford Pro intelligence platform in productivity gains, fuel operates on 97% of controlled access highways in areas using and enjoying BlueCruise (U.S. and Canada)
BlueCruise can help Ford and Lincoln customers arrive
optimization, improvements in how they run and secure called hands-free Blue Zones across U.S. and Canada. to their destination less fatigued, more energized, and • Customers have driven more than 156 million miles
their vehicles, and promotion of safe driving behaviors.
In 2023, BlueCruise was recognized as Consumer Reports gives them the ability to truly enjoy the ride and be hands-free using BlueCruise (U.S. and Canada)
The effectiveness of our software and services is only top rated Active Driver Assistance system, two times in more engaged with passengers.
going to get better with the launch of Ford’s NextGen a row. BlueCruise received a 9/10 score in the categories
digital architecture being developed by Model e. of “capabilities and performance,” “keeping the driver
Ford Pro’s key differentiator is our ability to integrate engaged,” and “clear when safe to use.”
the software, vehicles, and services into a cohesive Ford has evolved how it offers BlueCruise for customers,
ecosystem. By reducing friction for our customers, giving customers flexibility and choice for how and when
we can increase their loyalty, satisfaction, and retention. they activate BlueCruise across new Mustang Mach-E,
This in turn will help us to attract new customers and F-150 Lightning, F-150, and Expedition vehicles.
capture more of their spending as the economic value Customers can choose to activate BlueCruise at vehicle
we provide increases. purchase, or on a monthly or annual basis because the
hardware is installed from the factory.
Other Feature Benefits Final testing alone can involve a dozen or more
trips between different locations before vehicles are
We’re applying connected vehicle data and artificial
parked and ready for collection and delivery by road,
intelligence (AI) to offer features that make living with
rail, and ferry. Using AI technology, those vehicles
and using our vehicles even easier. For example, AI is
would simply drive themselves and be charged and
helping make it easier to hitch a trailer. The all-new Ford
ready to go. E-SELF works for all vehicles equipped
Pro Trailer Hitch Assist available exclusively for Ford F-
with an automatic transmission, electronic stability
Series uses sophisticated artificial intelligence, including
control, an electric handbrake, and assisted steering;
computer vision and machine learning, to automatically
the only additional requirement is a smart
back up and align a truck’s hitch ball to a trailer coupler
communication unit to enable the interaction with
with a button push.
the infrastructure.
Ford’s in-house team secured 60 patents while
developing this industry-first technology, which
automatically controls the truck’s speed, steering, and
braking to make sure the trailer hitch ball is directly
under a conventional trailer coupler.
Environment
In this section:
44 — Environment Overview
45 — Climate Change
45 — Carbon Neutrality Overview
53 — Impacts, Risks, and Opportunities
58 — Policies
59 — Achieving Carbon Neutrality
70 — Scenario / Resilience Analysis
76 — Circular Economy and End of Life
80 — Air, Water, and Soil Pollution
82 — Water Resources
85 — Biodiversity and Ecosystems
Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices
44
Overview — Climate Change — Circular Economy and End of Life — Air, Water, and Soil Pollution — Water Resources — Biodiversity and Ecosystems
Environment
Overview
Everyone should experience the benefits of clean air, clean water,
Our Sustainability Aspirations UN Sustainable Development Goals
and clean transportation. While we are dedicated to making our
Climate Change: Achieve carbon We are contributing to the following UN
product portfolio company carbon neutral, our sustainability efforts Sustainable Development Goals through actions
neutrality no later than 2050
also extend to our manufacturing sites operations, supply chain, outlined in this chapter:
and the communities we serve. Alongside our global partners, we Energy: Use 100 percent carbon-free
continue to make measurable gains against tough environmental electricity in all manufacturing by 2035
targets. Our investments in greener sustainable manufacturing are
fueling the transition to carbon neutrality and achieving the positive Materials: Utilize only recycled or
renewable content in vehicle plastics
impact that is essential to our collective future.
Waste: Reach true zero waste to landfill
across our operations
A Science-Based Approach to Climate Change Electric Vehicles are our Future Eliminate single-use plastics from our
Our aspiration to achieve carbon neutrality Electric vehicles are central to our carbon operations by 2030
globally no later than 2050 is in line with the neutrality strategy. Around the globe, we Air: Attain zero emissions from our
Paris Agreement and supported by science- are investing to advance our EV strategy vehicles and facilities
based targets approved by the Science Based and create a sustainable manufacturing
Target initiative (SBTi). We are focusing on system for our vehicles and the batteries
Water: Make zero water withdrawals
approximately 95% of our greenhouse gases that power them.
for manufacturing processes
emissions — our vehicles, operations, and
We Are Committed to Use freshwater only for human
supply chain. Our energy management
Environmental Leadership consumption
strategy is the key enabler for achieving
greenhouse gas emissions reductions for Our commitment to environmental
our operations. leadership and sustainability goes beyond
climate and also encompasses our strategies
for sourcing materials, water usage, air
pollution, and waste. Our holistic approach
is essential to protecting our planet.
Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices
45
Overview — Climate Change — Circular Economy and End of Life — Air, Water, and Soil Pollution — Water Resources — Biodiversity and Ecosystems
Climate Change
Carbon Neutrality Overview
Climate change is among the biggest Ford’s emissions, along with those of other automakers, We are proud that in 2023 we received an A rating for
Aspirational Goals are part of road transportation. Ford’s total Scope 1, 2, Climate from CDP for the fifth year in a row.
challenges of our generation.
and 3 emissions of approximately 373 million metric
The Transition Plan — Climate Change Mitigation
The World Economic Forum’s 2023 Global Risks Report tons20 across the value chain in 2022 are equivalent to
ESRS E1-1, E1-3, E1-4
identified failure to mitigate climate change as the most about 1% of the total world energy-related CO2 emissions.
Ford’s Aspirations
severe risk on a global scale over the next 10 years.
Ford is proud to be one of the first U.S. automakers to
Climate Energy Rising sea levels, more frequent droughts, severe storms,
2022 Ford CO2eEmissions align with the international community to limit global
and forest fires combined with environmental degradation
Salient Human Rights Issues warming as part of the Paris Climate Agreement. Globally
threaten food, water, health, and energy security.
• Vehicles - tailpipe: 56% we aim to reach carbon neutrality no later than 2050.
It is critical that all industries reduce greenhouse gas • Vehicles - energy production: 29% This timing is consistent with the timing outlined in EU
(GHG) emissions in line with science. This includes • Suppliers: 11% Regulation (EU) 2021/1119 (European Climate Law). We are,
making the necessary near-term progress along the e Misc: 3% however, on an accelerated pathway in Europe aiming to
Environment
journey to carbon neutrality by 2050 as aligned with • Operations: 1% achieve carbon neutrality by 2035. See European Carbon
the United Nations Framework Convention on Climate Neutral 2035 Strategy on page 46.
UN Sustainable Development Goals
1111
Change (Paris Climate Agreement).
-
Source: Ford 2023 CDP Report
To make progress toward carbon neutrality, including
1 ,,,, . ,
I I I 'I , I I
reducing emissions in line with science, we are investing
.. ' 2022 Global CO2Emissions from Energy in our business now to transform our value chain by
~
Significant changes will be required to decarbonize
:: ii:: global energy and transport systems. We expect these reducing Scope 1, 2, and 3 emissions as defined by the
• Electricity & heat production: 44% changes will occur in different product segments and GHG Protocol. Currently, our global focus is on three
• Industry: 25% regions at different times. Our approach and our interim areas that account for approximately 95% of our CO2e
• Road transport: 16% targets reflect these differences. emissions — our vehicles, operations, and supply chain.
• Residential: 5%
Climate Change Reporting Our Global SBTi Greenhouse Gas Targets
• Other transport: 5%
Other: 5% Transparent corporate climate change reporting is a Our interim goals are backed by science-based targets
... priority for us, and we are committed to following the approved by the Science Based Target initiative (SBTi):
N Source: IEA World Energy Outlook 2023
0
...
N most credible voluntary standards available. Based on • Reduce Scope 1 and 2 GHG emissions from our
0c. the Task Force on Climate-Related Financial Disclosures
a, operations (manufacturing and non-manufacturing)
a: Climate Crisis and the Auto Industry (TCFD), we have issued climate change scenario reports by 76% by 2035 from a 2017 baseline
Road vehicles are a major contributor to GHG emissions. since 2019. This year, our climate report has been
According to the International Energy Agency (IEA) integrated into this Integrated Sustainability and • Reduce Scope 3 GHG emissions from the use of
World Energy Outlook, in 2022 the global transport Financial Report as we begin to transition to EU sold products by 50% per vehicle km by 2035 from
sector was responsible for 21% of total energy-related Corporate Sustainability Reporting Directive (CSRD) a 2019 baseline
CO2 emissions, with road vehicles emitting 16% of the reporting, which is consistent with and more granular Our Scope 1 and 2 operations target, including
total. Passenger cars produced about half of global road than the TCFD, and includes double materiality. manufacturing and non-manufacturing sites, is aligned
emissions in 2022. to SBTi’s 1.5°C path. Scope 2 emissions are market-based.
Read More
Key Supporting Commitments about and share actionable best practices for carbon geothermal, hydro, and bio energy sources. We are
European Carbon Neutral 2035 Strategy In 2020 Ford committed to the UN’s Business Ambition reduction. We are proud to join this effort to meet the actively investing, partnering, and collaborating in
In Europe, we have an accelerated strategy with Pledge for 1.5°C, which calls on companies to set urgent call to mitigate the impacts of climate change. carbon-free energy throughout our value chain.
the goal of being carbon neutral no later than 2035. science-based targets aligned either with limiting global Examples include renewable electricity for not only
Supply Chain
This means: temperature rise to 1.5°C above pre-industrial level or our operations but also for public and home charging
We are members of the First Movers Coalition to
a 2050 net zero target date. This is reflected in our infrastructure, supporting our supply base via
• Ford is shifting our entire line-up of passenger accelerate the transition to low-carbon aluminum and
2050 aspiration and our Scope 1 and 2 target. We have Manufacture 2030 and advocating for the transformation
and commercial vehicles to 100% electric by 2035. near-zero steel, addressing two key high-carbon
evaluated SBTi’s proposed interim automotive sector of the electric grid.
materials in the supply chain.
• Ford is targeting carbon neutral 1.5°C pathway for vehicle use and are awaiting the final
Read More
version’s publication. Alignment with Business and Financial Planning
– EV and EV component manufacturing facilities Decarbonizing our business and providing sustainable In Climate Change — Achieving Carbon Neutrality on p.59
Ford is also committed to the New Deal for Europe
– Tier 1 suppliers (Scope 1 and 2) mobility solutions is essential to realizing Ford’s overall
initiative to devise a comprehensive Sustainable Europe The Carbon Neutrality Scenario graph shows what
vision of building a better world. It is reflected in our
2030 Strategy. the decarbonization path might look like as a result
– Logistics operations that transport parts to EU overall strategy to transform our product and services
of actions taken, including those discussed here.
production sites and vehicles to dealers Vehicles portfolio and in major investments to realize the
The path will not be linear, and the relative share
Our strategy is powered by an exciting lineup of EVs, In 2021, Ford joined RouteZero, a global coalition, to sign transformation. Nothing will be more influential than
of GHG emissions for each scope will shift over time.
including an electric version of the popular Ford the ZEV Declaration, pledging to work towards making our electrification strategy. Our overall decarbonization
As we sell more EVs and fewer internal combustion
Puma, the E-Transit, and the electric Explorer. sales of all new cars and vans zero-emissions by 2040 approach is summarized below.
engine vehicles, the total GHGs from vehicle use should
globally and no later than 2035 in leading markets.
decrease significantly. However, in the near term, the
Not only is the European market seen as ready for an RouteZero ran in the lead up to COP26 from 2020-2021, Read More
GHGs from energy production will likely increase due
accelerated Ford carbon neutrality strategy, but we and the work is now being continued under Accelerating In Electric Vehicles, Batteries, and Charging infrastructure on p.34
to more electricity use for EV battery production.
also view it as a potential blueprint for other regions. to Zero (A2Z) Coalition. SBTi’s proposed automotive OEM
Decarbonization Levers, Actions, and Investments
interim 1.5°C pathway also includes a reference to A2Z.
Emissions avoidance and reductions are Ford’s top
Carbon Neutrality Scenario
Our Scope 3 use of sold products (vehicles) target is We support the authority of California and other U.S. climate change priority. Understanding the potential
consistent with a well-below 2°C path; vehicle sector states to protect people’s health and avoid the worst environmental and cost impacts of our vehicles and
... pathways for a 1.5°C target setting have not yet been services over their life cycle — from the acquisition of raw • Scope 1 and 2
N
0 impact of climate change by establishing and enforcing Operations
...
N
finalized by the SBTi. Our Scope 3 target goes beyond air pollution standards and zero-emission vehicle materials, through vehicle production, distribution, and
0c. • Scope 3 Misc
a,
a: tailpipe emissions and includes vehicle emissions requirements for new vehicles within their states. use, to end-of-life disposal or recycling — aids this effort,
• Scope 3 Supply
from an energy-cycle (fuel and electricity) perspective allowing the company to focus on key GHG sources. SBTi Chain
Operations Targets
(well-to-wheels). This includes energy production and • Scope 3 Vehicle
We’ve joined the U.S. Department of Energy’s (DOE) The graphic, Decarbonization Levers and Actions Met
consumption during vehicle use. Energy Production
Better Climate Challenge to reduce GHG emissions from Overview, on page 48 shows an overview of the key Carbon • Scope 3 Vehicle
These interim GHG reduction targets do not include our U.S. manufacturing facilities 50% by 2030, relative decarbonization levers along with example actions for Neutrality Tailpipe
the use of offsets. our largest contributors — currently vehicle use and Globally
to a 2017 baseline. We have also joined the U.S. DOE’s • Carbon Removals
Better Plants Challenge to reduce energy intensity from supply chain emissions — and our operations.
our U.S. manufacturing facilities by 10% by 2030, relative
It is important to note that the backbone of the
to a 2020 baseline. Through these programs, DOE
transformation to a carbon neutral business is carbon- 2019 2035 2050
provides technical assistance and opportunities to learn
free energy. This includes wind, solar, nuclear,
Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices
47
Overview — Climate Change — Circular Economy and End of Life — Air, Water, and Soil Pollution — Water Resources — Biodiversity and Ecosystems
Locked-in GHG are future emissions that will occur over Transition Plan Key Investments
our products’ or facilities’ lifetimes due to choices we
Investment Comment
make today. For example, most of the vehicles we sell
today will be on the road for over a decade. Therefore Revenues/savings from • Energy efficiency projects estimated energy cost savings Investments made in global manufacturing locations to
in Scope 3, Category 11 (use of sold products) we report investments in low carbon – Building lighting — $0.48M improve energy and process efficiency while generating
the locked-in GHG emissions over a 150,000 mile lifetime alternatives – Compressed air systems — $0.75M savings sufficient to self-fund the capital investments
in the year the vehicle is sold. This is also reflected in – Steam elimination — $1.2M
our vehicle use SBTi target. Compared to vehicle use, – Process optimization — $0.48M
locked-in Scope 1 and Scope 2 GHG emissions from our Expenditures (OpEx) for R&D Year Expenses (in Billions) Engineering, research, and development expenses primarily
operations are expected to be small. 2020 $7.1 consist of salaries, materials, and associated costs
By 2050, we may have some remaining hard-to-reduce 2021 $7.6
GHG emissions. We intend to neutralize these emissions 2022 $7.8
using carbon removals, i.e., natural or technical strategies 2023 $8.9
that remove CO2 from the atmosphere and provide Investments (CapEx) in our Some of the EV investments we have underway include:
secure long-term storage. low carbon future • $4.21 billion allocated through two green bonds to fund clean
An overview of some key investments that support transportation projects, including the manufacture of current and future
EV products
the implementation of our plan are provided in table
Transition Plan Key Investments. Ford has no • $2 billion to convert Ford’s Cologne, Germany operations into a state-of-
the-art electric vehicle center, completed in 2023 and scheduled to begin
investments related to coal, oil, and gas-related
production in 2024
economic activities.
• £230 million in Halewood, U.K. Transmission Facility to build EV
Ford plans to report globally on the EU Taxonomy components for Europe, completed in 2023
Regulation 2020/852 (Taxonomy Regulation) and • $440 million in the Rouge Electric Vehicle Center where the F-150
associated Delegated Acts in 2025. Ford has reported Lightning is built
on the EU Taxonomy Regulation for Ford Spain,
including France, Italy, and Mexico21 since 2021 as it is
subject to the publication of non-financial information.22
,_
l/l
QJ
Vehicle Usage Operations Supply Chain
>
QJ
_J
C
0
·.;:;
re
---85% ---1% ---11%
-~C • Vehicle Technology • Energy-efficiency & GHG Reductions • Supplier Engagement
0
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,_ – Powertrains and vehicle design – Sourcing requirements
re
• Carbon-free Energy
u – Decarbonization support
QJ • Energy Options
0
>,
– Low carbon fuels and carbon-free electricity • Low Carbon Materials
~ • Supporting Customers
– Batteries, steel, aluminum, and plastics
– Product offerings, key EV adoption enablers,
and eco-friendly driving support
• A portfolio of low carbon products • 100% carbon-free electricity for our global manufacturing by 2035 • Require suppliers and their subcontractors to establish science-based
– Battery electric vehicles – GTE’s MIGreenPower program GHG reduction targets, action plans, and transparent reporting
... - Electrification of iconic vehicles – Global onsite renewable projects mechanisms
N
0 - Europe — 10 new EVs by 2024
...
N
• Reduction or elimination of natural gas usage • Manufacture 2030 — global Tier 1 supply chain initiative
0c. l/l
- Next-generation EVs
a,
C
0 – Paint shop upgrades at Oakville & Ohio Assembly Plants – Sharing decarbonization best practices, and providing training and
a: ·.;:; - Larger trucks, vans, SUVs, and a small, low-cost platform
u – No natural gas use for building heat when Tennessee Electric access to green finance
"'
·;:; <( – Lower emissions ICE vehicles
C:
"' "Cl Vehicle Center (TEVC) begins operations – Enabling site GHG emissions data collection
C:
;:;: QJ - Improved fuel efficiency & compatibility with alternative fuels
,, C
• By 2030 purchase at least 10% low-carbon aluminum and near-zero
C: C - Traditional and plug-in hybrids • Campus transformation
"' .!:!! steel (First Movers Coalition)
~ c.. – Hydrogen fuel cell – Research & Engineering
:c >, – Memorandums of understandings with 3 European steel suppliers
"'
C: QJ - Technology development for our medium- and heavy-duty vehicles – Corktown
"!2111 ~
::, • Addressing key EV adoption barriers • Ford’s first carbon neutral vehicle assembly plant
,,"'
~ – Expanding the BlueOval Charge Network – Cologne Electric Vehicle Center with significant GHG reductions
~
"' – More affordable battery chemistries like LFP (Lithium Iron Phosphate)
~
C:
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LL
Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices
49
Overview — Climate Change — Circular Economy and End of Life — Air, Water, and Soil Pollution — Water Resources — Biodiversity and Ecosystems
market mechanisms. The status in 2023 for our global risks identified in the Ford Enterprise Risk Management a performance objective emphasizes Ford’s commitment
0c.
a,
a: manufacturing operations was process, which includes climate-related risks. to transitioning our portfolio to electric vehicles and
creating environmental benefits in the transition to EVs
• Carbon-free electricity — 70.5% 2023 Status Read More by addressing the largest source of our GHG emissions,
• Renewable electricity — 50.8% In Business Conduct — Accountable and vehicle use.
Vehicle Use Operations Inclusive Governance on p.127
Read More Collaboration
Remuneration
On Ford’s Road To Carbon Neutrality on p.51 Avoiding the worst consequences of climate change
• 100% GHG Reduction The individual performance factor that applies to both
In Achieving Carbon Neutrality on p.59 requires collaboration with multiple partners and
• Remaining to 2035 Target our Performance Stock Units and Annual Performance
In Performance Data on p.135 organizations in the public and private sectors to drive
• Progress Bonus Plan is assessed based on the employee’s success
timely progress. We are working together to address
in driving and aligning with our Ford+ plan and corporate
challenges including barriers to electric vehicle adoption,
strategy, which could include efforts around climate
Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices
50
Overview — Climate Change — Circular Economy and End of Life — Air, Water, and Soil Pollution — Water Resources — Biodiversity and Ecosystems
government regulations, economic factors, and the Ford’s global director of sustainability, Cynthia Williams
availability of carbon-free electricity and renewable fuels. participated in TED Explores: A New Climate Vision. Ford
is also one of the 13 founding members of the 2023 TED
Our Blue Table Forum is a space for dialogue around
Future forum, hosted at Michigan Central. The mission
how we can work together with various stakeholders
of the forum was “BRINGING PEOPLE TOGETHER: We
from a diverse group of non-governmental organizations
convene thought leaders from around the world to share
(NGOs), nonprofits, and academic institutions.
diverse perspectives, build community and foster new
Ford partners with organizations like the Center for collaborations that can lead to tangible progress.”
Climate and Energy Solutions Business and Environmental
We are working to provide EVs by offering equitable
Leadership Council to help advance stronger GHG
financing, supporting greater EV charging access,
emissions policy and infrastructure improvements to
developing new mobility solutions in urban and rural
remove obstacles and build the market for EVs.
areas, diversifying our supplier, dealer, and investor
We support consumer EV incentives to accelerate network, and supporting small businesses and
the transition by making electric vehicles even more businesses owned by women, minorities, veterans,
accessible and affordable while supporting manufacturing and people with disabilities.
jobs. We are also working with government partners to
We also support and align with federal policy which
secure the supply chains and develop the technologies we
includes several provisions that aim to direct investments
need to produce EVs and batteries here in the U.S., also
into communities that are marginalized and generally
ensuring the United States remains competitive globally.
more adversely impacted by air pollution and climate
Read More change. This might include, for example, tax incentives
for the installation of EV charging infrastructure in low-
In Government Regulations, Policy and Engagement on p.131
income census tracts, or for clean energy projects that
In the 2023 U.S. Political Engagement Report
meet prevailing wage and apprenticeship requirements.
Climate Justice
...
N Addressing climate change is more than decarbonizing
0
...
N
our business. It is also about the impact of the transition
0c.
a, to electric vehicles on our workforce and communities.
a:
to Carbon Published our first Reopened our Ford Rouge Joined the United States Launched the EcoBoost
~---•-------------•-------------•-------------•--------------~
2018 2015 2014 2011 t)-
Met our goal to reduce operational Launched the lightweight Implemented Partnership for Launched the fully electric
greenhouse gas (GHG) emissions F-150, with all-aluminum body a Cleaner Environment (PACE) Focus electric vehicle (EV)
per vehicle produced by 30% eight program with suppliers to
yea rs early reduce our collective
environmental footprint
...
N
______________________________________________________________...,,
,.....
0
...
N
0
c.
a,
2020 2021
a:
Set aspiration to be carbon neutral no later than 2050 Set 2035 SBTi targets for our operations and vehicles
Launched all-electric Mustang Mach-E Joined RouteZero (now A2Z) working toward 100% ZEVs fo r ca rs
Offered 155,000 charging stations in Europe on the FordPass and vans globally by 2040
Charging Network, in partnership with NewMotion
Launched new Sustainable Financing Framework - the first
transaction, a $2.5 billion green bond
Tied Corporate and Supplemental revolving and 364-day cred it
facilities to sustainability-linked KPls
Required suppliers to set carbon neutrality targets dates
Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices
52
Overview — Climate Change — Circular Economy and End of Life — Air, Water, and Soil Pollution — Water Resources — Biodiversity and Ecosystems
~---•-----------------------------------------------•---------------------..
2022 2023
Launched all-electric F-150 Lightning and E-Transit Announced Ford in Europe 2035 Announced Ford Pro and Xcel Energy charging
Issued a second Green Bond of $1 .75 billion, carbon neutrality target date infrastructure collaboration for fleets
published the first Susta inable Financing Report Announced reorganization Announced Memorandum of Understanding
Entered agreement for multiple Michigan locations of business into three with RheinEnergie to expand solar panels at
to purchase 100% renewable electricity business segments: Ford Blue, our Cologne facilities
Ford Model e and Ford Pro
Achieved 100% carbon -free electricity sourcing
for our manufacturing facilities in Europe, Mexico Joined the First Movers
Coalition (Steel and Aluminum)
0 and Ohio
J ~-'· 2026
Build batteries at Blueoval Battery Park
•-------------------------------•-------------------....,
2025
Build next generation electric truck Target 100% carbon-free electricity -
2024
Launch an all- new electric Explorer in
(Marshall, Ml) and battery packs with SK Innovation all Michigan manufacturing facilities Europe produced in Cologne - Ford's
at BlueOval City Target 20% recycled and renewable first carbon neutral vehicle assembly plant
Target 100% carbon-free electricity plastics content for North American, Target zero emissions capability
and zero natural gas for building heat - EU and Turkey programs and 10% for full range of European Light
Tennessee Electric Vehicle Center for China Commercial Vehicles
...
N
0
...
N
0c.
a,
a:
-•--------------------------------•-----------------•-----------•-----------
.....
2030 2035 2040 2050
Target 40-50% U.S. EV vehicle sales Purchase at least 10% near-zero Meet our SBTi-approved emissions Work toward 100% CARBON
Target reducing GHG emissions carbon steel and aluminum targets - operations and vehicles zero -emissions cars NEUTRALITY
from U.S. manufacturing facilities (First Movers Coalition) Work toward 100% zero-emissions and vans globally (A2Z) GLOBALLY
by 50% (Better Climate Challenge, Target elimination of single-use cars and vans in leading markets (A2Z)
2017 baseline) plastics from our operations Target 100% carbon -free electricity
in all manufacturing
Target Ford in Europe 2035 carbon
neutrality
Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices
53
Overview — Climate Change — Circular Economy and End of Life — Air, Water, and Soil Pollution — Water Resources — Biodiversity and Ecosystems
Climate Change
Impacts, Risks, and Opportunities
E1 SBM-3, E1 IRO-1
The Identification and Assessment Process Three scenarios were used. The IEA Net Zero Emissions The table Major Climate-related Opportunities on
Climate Impacts by 2050 Scenario (NZE) helps expose transition risks page 56 provides an overview of the major opportunities
Ford is committed to achieving carbon neutrality across while the IEA Stated Policies Scenario (STEPS) and the identified in the most pertinent categories but is not
our vehicles, operations, and supply chain. We annually Intergovernmental Panel of Climate Change (IPCC) a complete listing of our pursuits. Again examples are
assess our entire value chain’s impact on climate change Representative Concentration Pathway 8.5 (RCP8.5) provided, see table Material Climate-related
by calculating emission scopes 1, 2, and 3 as defined by high emissions and temperature climate scenarios help Opportunities: Examples on page 57.
the Greenhouse Gas Protocol. The status and future expose expected physical risks due to climate change.
emissions based on planned actions for our vehicles, The risks and opportunities were examined for the
operations, and supply chain are evaluated relative to entire value chain along three time horizons: short-term
associated science-based pathways and reviewed (<5 years), medium-term (5–10 years), and long-term
regularly by management and the Sustainability, (>10 years).
Innovation and Policy Committee of the Board of
Directors. This allows us to identify potential concerns Read More
early in the process, ensuring that we are on track to In Climate Change — Scenario/Resilience Analysis on p.70
meet our carbon neutrality commitments.
Our Climate-related Risks and Their Business Impact
Read More Major risks for leading markets currently transitioning to
In Climate Change — Achieving Carbon Neutrality on p.59 electric vehicles cover all three time horizons. In leading
In Performance Data on p.135 markets, we expect technology, market, and workforce
risks to lessen in the long term as EV adoption becomes
Risks and Opportunities
more widespread. At the same time, resource availability
We divided climate-related risks into two categories:
and regulatory risks may increase. Other markets will
• Transition risks — those that arise from actions reach the EV inflection point later, extending the time-
associated with the transition to a low-carbon horizon for technology and market risks.
economy, including the introduction of new climate The table Major Climate-related Risks on page 54
policies or low-carbon technologies provides an overview of the major risks identified in the
• Physical risks — those that arise from the acute and most pertinent categories and is not a complete listing of
chronic physical impacts of climate change the risks we examine. Examples are provided in the table
Material Climate-related Risks: Examples on page 57.
We identified and assessed climate-related risks and
opportunities based on TCFD guidelines and well- Our Climate-related Opportunities for the Business
established, state-of-the-art science scenarios. At Ford we also see opportunities across the three
measured time horizons for addressing climate-related
The range provided by these scenarios identifies likely
issues. Similar to the identified risks, we expect the
risks and opportunities, as these definitive scenarios
timing of some major opportunities related to EV
cover a wide gamut of societal action, addressing
adoption to occur sooner for leading markets while
future uncertainties, whether that is related to policy,
later in other markets.
macroeconomic, energy systems, or technological
developments.
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Overview — Climate Change — Circular Economy and End of Life — Air, Water, and Soil Pollution — Water Resources — Biodiversity and Ecosystems
Transition Risks
Regulation Ford is subject to emissions, fuel economy, and other regulations that govern product characteristics, and these can differ locally, regionally, and nationally. New regulations are continuously being proposed to address
environmental concerns, and the regulatory landscape can change quickly. To comply, we may need to substantially modify product plans and facilities. Additionally, climate-oriented regulations and initiatives may
increase the cost of vehicles by more than the perceived consumer benefit, dampening our financial margins.
Technology If cost-effective and timely hardware and software solutions are not available to meet our GHG reduction goals, we are subject to technology risk. As we make further GHG reductions, it becomes more challenging to make
cost-effective improvements. Technology may not be available to make the improvements at the rate required, and the carbon neutral grid and charging infrastructure may not keep pace with vehicle electrification which
could negatively impact sales. New vehicle offerings may also present technological challenges that could be costly to implement and overcome. If we are unable to meet customer demand or quality expectations with our
products and technologies, there could be an adverse effect on our business.
Financial There is a risk that our carbon neutrality plan would need to be accelerated which would require increased investments. Our Corporate and Supplemental and 364-day revolving credit facilities are tied to sustainability-
linked KPIs such as reducing GHG emissions from our manufacturing plants and lowering Ford of Europe’s passenger vehicle tailpipe CO2 emissions. The applicable margin and facility fees may be adjusted if Ford fails to
achieve the specified targets. Increased transitional costs without governmental funding and lower-cost technology breakthroughs are also risks.
Legal Non-compliance with regulatory requirements can lead to fines or sales restrictions.
Market Meeting our climate goals relies on wide market acceptance of EVs. There is a risk that our offerings do not meet sales volume expectations. Low market acceptance could be caused by low gas prices, changes required
to fueling (including charging) behavior, or by more product entries — from existing and new market participants — than are supported by demand. Excess supply could lead to decreased revenue and profitability.
Reputation Reputation risk is tied to other risks such as meeting product emission targets or sales volumes for environmentally friendly vehicles. Our reputation can suffer if we do not reduce CO2 emissions in line with expected
progress for climate stabilization, or if our transition to electrification is slower than expected, either of which could result in lower sales.
Resource Scarcity As electrified products proliferate, there is a risk that scarcity of components or raw materials (such as those necessary for EV batteries) may disrupt our operations or increase our cost of goods sold, thereby slowing
EV adoption if alternative components, materials, or suppliers cannot be found in a timely manner. To facilitate our access to raw materials and other components necessary for the production of EVs, Ford has entered into
and may, in the future, enter into multi-year offtake agreements and other long-term contracts for the purchase of raw materials and other components, which, subject to certain conditions, obligate us to purchase set
amounts of materials or components. Accordingly, we are subject to the risks associated with lower future demand for such materials and components.
Workforce With the significant shift in capabilities needed to deliver the transition to electrification, there is a risk of lack of skilled workers and programs necessary to maintain or upskill our workforce. Our ability to attract and
retain talented, diverse, and highly skilled employees is critical to our success and competitiveness.
Physical Risks
Acute: Climate change can lead to increased extreme weather events such as storms, wildfires, or floods that can disrupt production or component supplies at our facilities, or within our supply chain. This may increase our costs
Extreme Weather and delay or otherwise impact both our production operations and customers’ ability to receive our vehicles.
Chronic: Climate change can lead to longer-term conditions such as extended droughts. Droughts can affect our access to water for our operations, especially in water-scarce areas. This may increase our operating costs or require
Drought investment to find alternative solutions.
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Overview — Climate Change — Circular Economy and End of Life — Air, Water, and Soil Pollution — Water Resources — Biodiversity and Ecosystems
Heavy precipitation (rain, hail, snow/ice) Ford’s production, as well as our suppliers’ production, and/or the ability for products to Purchasing operations engages in an organization-wide Supply Risk Management process
Risk Type: Acute Physical be delivered to consumers could be disrupted by natural or man-made disasters, adverse that focuses on strategic and tactical planning to minimize disruption for the Ford vehicle
effects of climate change, or other factors. As one example, global climate change has the and component assembly plants due to supply chain events, including acute climate-
Time Horizon: Short-term
potential to lead to increased extreme precipitation events that produce ice or flooding related situations.
Magnitude of Impact: Medium which can disrupt production either directly or through interruptions to our supply chain. Ford has implemented an N-Tier Supply Mapping and Risk Sensing solution which provides
Primary Potential Financial Impact: Decreased In 2021 an acute weather event, Winter Storm Uri in the United States, caused significant a consolidated reporting view of Ford’s multi-tier supplier network, supplier risk scores,
revenues due to reduced production capacity disruption to supplier facilities due to ice and subfreezing temperatures causing and daily risk events in the form of user interactive visuals. Beginning in 2022, we used
Likelihood: About as likely as not widespread power outages. Over 500 different parts and dozens of Tier 1 suppliers these tools to understand the potential business disruption exposure of daily risk events
were impacted by raw material shortages. These suppliers provided parts for most of our including storms, tornadoes, and tsunamis. In addition, a predictive tool has been
North American assembly plants including those in Kentucky, Michigan, Missouri, Canada, developed by the Ford Global Data Insight & Analytics team. This system, named Supplier
and Mexico. Performance and Risk (SPR), allows us to monitor a host of predictive data inputs to
mitigate potential supply disruptions.
When the platform identifies risks, the team notifies suppliers, who respond with their
status. The supplier status data are used to identify any disruptions and enable mitigation
actions within five days. Collaborative tools under deployment in 2024 will allow for
instant communication which will reduce the alert and response time to hours.
Changing customer behavior We have announced our intent to continue making multi-billion-dollar investments in Ford’s long-term competitiveness depends on the successful execution of the Ford+ plan
Risk Type: Transition Risk — Market electrification and software services. Our plans include offering electrified versions of in order to more effectively compete in the marketplace and adapt to evolving customer
many of our vehicles, such as the F-150 Lightning and E-Transit. The automotive, software, preference. Ford+ is focused on delivering distinctive and increasingly electric products
Time Horizon: Medium-term
and digital service businesses are very competitive and are undergoing rapid change. plus always-on customer relationships and user experiences. Our Ford+ plan is designed
Magnitude of Impact: Medium Traditional competitors are expanding their offerings, and new types of competitors to leverage our foundational strengths to build new capabilities — enriching customer
Primary Potential Financial Impact: Decreased (particularly in our areas of strength, such as trucks, utilities, and commercial vehicles) experiences and deepening loyalty. To facilitate this transformation, we are making
revenues due to reduced demand for products are entering the market. New competitors may possess superior technology and may substantial investments, recruiting new talent, and optimizing our business model,
and services have business models that are more efficient and are not subject to the same level of fixed management system, and organization. In executing Ford+, we must anticipate, develop,
Likelihood: Likely costs as ours. These factors increase the importance of our ability to anticipate, develop and deliver products and services with disciplined capital allocation.
and deliver products and services that customers desire on a timely basis, in quantities
in line with demand and at costs low enough to be profitable. If the EV market does not
develop at the rate we expect; if there is a negative perception of our EVs or about EVs
generally; or if consumers prefer our competitors’ vehicles or technologies, there could
be an adverse impact on our financial condition or results of operations.
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Overview — Climate Change — Circular Economy and End of Life — Air, Water, and Soil Pollution — Water Resources — Biodiversity and Ecosystems
Product Developing a portfolio of EVs for the transition away from internal combustion engine (ICE) vehicles is an opportunity for Ford. Our portfolio includes all-electric, plug-in hybrid, hybrid, and fuel-efficient ICE vehicles
(e.g., EcoBoost). This portfolio provides the company with the opportunity for growth and increased market share as the transition continues.
Financial There is an opportunity to drive scale, diversify, and directly source parts (battery) of the supply chain, and support battery innovation to deliver cost efficiency and improved profitability.
Our Corporate and Supplemental and 364-day revolving credit facilities are tied to sustainability-linked KPIs. The applicable margin and facility fees may be adjusted if we achieve the specified targets.
Conserving We see several opportunities to conserve resources such as battery materials and energy, as well as to improve business productivity. We are reducing energy consumption in operations through efficiency projects which
Resources will lower our energy costs. Ford Pro helps commercial vehicle owners improve fleet efficiency and uptime.
Reputation An increasing number of consumers think it’s important for companies to take action on climate change, and some are willing to pay more for products that are better for the environment. Meeting customer expectations
by delivering electrified products and solutions, an always-on relationship with customers and an ever-improving user experience will strengthen our reputation and improve our bottom line. We believe Ford is well
positioned to establish a “green” reputation with customers based on our electrification plans supplemented with improved customer experience and our broader sustainability efforts which include carbon neutral
manufacturing and circular economy actions.
Workforce Electrification represents a revolution in the auto industry as it reshapes the future of work. We are mindful of the impacts on our employees, our supply chain, our communities, and our customers. We are addressing
and evolving our Just Transition strategy as we move toward carbon neutrality and electrification.
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Overview — Climate Change — Circular Economy and End of Life — Air, Water, and Soil Pollution — Water Resources — Biodiversity and Ecosystems
Shift in consumer preferences Consumers are increasingly environmentally conscious. Additionally, policies such as • Ford has institutionalized our Enterprise Risk Management (ERM) process, which includes
Opportunity Type: Products and services CO2-related taxation in Europe drive demand toward low-CO2 vehicles and incentivize the an Environmental & Safety Compliance (E&SC) Business Plan Review and Special
up-take of new, fuel-efficient vehicles. The European tax scheme has two waves: the first Attention Review process. There, E&SC senior leadership review the status of the
Time Horizon: Medium-term
for vehicles emitting less than 50g CO2/km by 2025, and the second for zero-emission business and the risks and opportunities presented to the business, and develop plans
Magnitude of Impact: Medium vehicles by 2030. Tax incentives such as those within the U.S. Inflation Reduction Act are to address those risks and opportunities. If consumer demand shifts toward different
Primary Potential Financial Impact: Returns another example. products, such as vehicles with higher fuel economy and advanced technology
on investment in low-emission technology We expect that Ford’s diverse global portfolio should be able to meet the demands and powertrains, the E&SC review process is intended to cause us to increase output of
Likelihood: Virtually certain needs created by such a shift — both in Europe and around the globe — and expects to corresponding products and technologies.
perform well, providing opportunities for growth and increased market share. • Our current and announced product offerings give us flexibility to meet changing
consumer demands. This includes a variety of lower CO2 emissions vehicles, including
efficient diesel and gasoline vehicles, vehicles with EcoBoost engines and hybrid, plug-in
hybrid, and battery electric vehicles.
• In 2023, our European portfolio included 15 electrified offerings from hybrid to EVs.
Globally, we began selling new EV models in 2021 with the Mustang Mach-E and
followed by the F-150 Lightning and E-Transit in 2022.
• We are investing in the research and development of more efficient internal
combustion engines, hybrid technology, electric vehicles, batteries, lightweight and
sustainable materials, and controls and software to create efficient vehicles that match
customer preferences.
Move to more efficient buildings Setting goals to reduce GHG emissions through improved operational efficiencies has the The Ford Energy Management Operating System (EMOS) is our global standardized process
Opportunity Type: Resource efficiency benefit of reducing energy expenses. for managing and driving energy efficiency at our facilities, including setting annual energy
targets for our global manufacturing locations. Improving operational efficiency of existing
Time Horizon: Short-term • Ford has established a global Carbon Reduction Strategy with a goal to reduce our
manufacturing locations is a fundamental element of EMOS. In 2023 we updated and
Magnitude of Impact: Low absolute Scope 1 and 2 GHG emissions by 76% from all our operations (both
better integrated the ISO 50001 management systems approach into our EMOS through
manufacturing and non-manufacturing facilities) by 2035 measured from a 2017 baseline.
Primary Potential Financial Impact: Reduced participation in the U.S. Department of Energy’s 50001 Ready Program. We have 31 Ready-
indirect (operating) costs • To ensure Ford remains on track to this long-term objective, we set a five year recognized sites in the U.S., including all of our U.S. manufacturing locations.
manufacturing-specific Carbon Reduction Strategy to reduce our absolute Scope 1 and 2
Likelihood: Virtually certain Recently implemented efficiency actions at various manufacturing locations in Michigan
GHG emissions by 18% from all our manufacturing locations by 2023, measured from a
are examples of Ford’s continued focus on improving operational efficiency — lighting
2017 baseline. This strategy will be extended in 2024.
conversions, compressed air optimization, and steam elimination. Additional actions taken
to reduce carbon emissions from our operations include booth recirculation and abatement
consolidation project at a manufacturing plant in Ohio and a lighting project at Kansas City
Assembly Plant in 2023. The latter is projected to result in 3,894 metric tons of CO2e
reductions annually.
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Overview — Climate Change — Circular Economy and End of Life — Air, Water, and Soil Pollution — Water Resources — Biodiversity and Ecosystems
Climate Change
Policies
ESRS E1-2
Climate Change
Achieving Carbon Neutrality
ESRS E1-3, ESRS E1-4
Metrics Overview An overview of the two SBTi 2035 targets is given in SBTi 2035 Targets Summary
In this section we provide an overview of our climate- table SBTi 2035 Targets Summary; details are discussed
Scope 3 — Category 11 — Vehicle Use Scope 1 and 2 — Total Operations
related metrics for our vehicles, our operations, and our below. We are on track to achieve both SBTi targets.
(Manufacturing + Non-Manufacturing)
supply chain followed by details for each of the three
focus areas including targets, metric methodology, Reduction Target 50% 76%
decarbonization levers, key planned actions and In Performance Data on p.135
Reduction Target Year 2035 2035
investments, performance, and an outlook. Our vehicle metrics are affected by the shift in global
Base Year 2019 2017
consumer preference away from smaller vehicles toward
Our carbon neutrality related metrics help us to ensure
trucks and SUVs. U.S. industry vehicle production data Base Year Value 330 (g CO2e / km) 4.6 (M metric tons CO2e)
that we are decarbonizing our business in a timely
from the 2023 EPA Automotive Trends database shows 2023 Status 311.1 (g CO2e / km) 2.5 (M metric tons CO2e)
manner and managing climate risks and opportunities.
this shift from 53% cars in 2017 to 37% cars in 2022.
The metrics are aligned with Ford’s We Are Committed
Pathway well-below 2°C23 1.5°C
to Protecting Human Rights and the Environment policy Our Ford portfolio is increasingly focused on the
and the Paris Climate Agreement. products with the greatest reach and leverage, allowing Methodology SBTi sectoral decarbonization pathway SBTi cross-sector absolute contraction
for Transport (v 1.1)
us to enhance the fuel efficiency of our light- and
Ford has established the following metrics:
medium duty truck lines, and offer full battery and Scope Split NA S1 — 30%
Vehicles — Fleet Average hybrid electric versions of our flagship nameplates. S2 — 70%
• Voluntary
Data from the U.S. EPA Automotive Trends Report, Scope Coverage (%) 69% of total Scope 324 100%
– Scope 3 well-to-wheels (WTW) greenhouse gas (GHG)
representing the largest share of vehicles in our global 78% of Scope 3, category 11
emissions from the use of sold products (grams
fleet, show that the real-world CO2-intensity of Ford U.S.
CO2e / km, Science Based Target initiative (SBTi)) GHG Coverage CO2, CH4, N2O CO2, CH4, N2O
light-duty vehicles has improved 21% for cars and 10%
• Regulatory for trucks between 2017 and 2022. External Assurance SBTi — 2021 SBTi — 2021
– Fuel economy (miles per gallon) or fuel consumption
Metrics Governance
(L/100km)
– CO2 tailpipe emissions (grams per mile or km) Our SBTi-approved GHG scope emissions metrics and
carbon-free electricity metric are reported biannually
Operations — Voluntary
in the Global Sustainability & ESG Meeting (GSM) and
• Manufacturing and non-manufacturing
annually to the Sustainability, Innovation and Policy
– Absolute Scope 1 and 2 (tCO2e, SBTi)
Committee of the Board of Directors.
• Manufacturing only
The vehicle fuel economy/consumption and CO2 metrics
– Carbon-free electricity (%)
are reviewed two or more times per year at the
Together the two SBTi 2035 targets cover 69% of total Compliance Automotive Strategy Meeting.
scope GHG emissions, do not include offsets, and are
strictly GHG reduction targets. Our decision to set SBTi-
endorsed science-based emission reduction targets was
partially informed by knowledgeable stakeholders such
as investors and non-governmental organizations (NGOs).
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Overview — Climate Change — Circular Economy and End of Life — Air, Water, and Soil Pollution — Water Resources — Biodiversity and Ecosystems
Vehicle Use — Scope 3 When setting our Scope 3, category 11 target, we used A Portfolio Approach to Decarbonizing Vehicles
Target an internal forecast of future sales activity as input to the
SBTi sectoral decarbonization tool. The tool adjusts the Vehicle Design Lower-carbon Energy Options Support Customers
Ford’s SBTi approved intensity target for Scope 3 GHG
emissions from the use of sold products is to reduce intensity target to account for growth such that absolute • Electric vehicles • Electricity • Providing options for different
emissions 50% per vehicle km by 2035 from a 2019 emissions decrease. • Fuel cell vehicles • Hydrogen vehicles and fuels, and how those
base year. • Plug-in hybrid vehicles • Biofuels vehicles will be maintained
Key factors to achieving the target include technology
• Hybrid vehicles • Carbon neutral e-fuels • Address key adoption enablers,
Methodology solutions, government policies and regulations, customer
• Aerodynamic improvements • Compressed natural gas (CNG) e.g., affordability and EV charging
Our Scope 3 use of sold products (vehicles) target uses adoption of new technologies, and economic conditions.
• Weight reductions • Liquefied petroleum gas (LPG) deployment with renewable energy
the SBTi sectoral decarbonization pathway for Transport Future technology solutions, such as electric vehicles,
• Promoting “eco-driving” through
(v 1.1). This is a well-below 2°C path; as noted earlier, a and supportive policies and regulations can help achieve
training, information, and in-vehicle
vehicle sector pathway for 1.5°C target setting has not the target. Customer preferences and economic
technology
yet been finalized by SBTi. conditions may have either positive or negative GHG
emissions contributions.
This intensity target covers about 78% of the global fleet
emissions, focusing on the regulated vehicle fleets in When Ford established this target in 2021, the base year
our key markets: the U.S., the EU, and China. This is a of 2019 was chosen as a year with representative sales
subset of the global inventory of absolute vehicle GHG volumes. 2020 was not chosen as a base year due to the
emissions that are calculated for 100% of the global fleet. COVID pandemic and global microchip shortages
We use robust compliance data in regions where vehicle affecting sales volumes. The baseline value for setting
fuel economy and CO2 are regulated. Emissions from 2035 targets were calculated following the GHG Protocol,
unregulated vehicle types and regions are calculated and has been verified to a limited level of assurance.
with average data from the regulated vehicle fleets. Decarbonization Levers, Actions, and Investments
The Scope 3 target goes beyond tailpipe emissions and Reducing GHG emissions associated with the use of
includes reducing vehicle emissions from an energy-cycle our vehicles, our largest GHG emissions source, is critical.
(fuel and electricity) perspective, well-to-wheels (WTW), The use-phase CO2 emissions on a WTW basis depend
which includes both the production and consumption of on vehicle design, the energy source, and how the
the energy used by the vehicles. The vehicle emissions vehicles are used by our customers. See overview in
are calculated to represent on-road WTW emissions. table, A Portfolio Approach to Decarbonizing Vehicles.
That is, the calculations convert regulatory laboratory Ford is researching and developing technology and
test tailpipe emission data to on-road emissions and services to address reductions in all three areas.
add the emissions associated with upstream energy This includes collaboration with a range of partners,
production such as extracting and refining oil and including fuel and electricity producers, infrastructure
generating electricity. Lifetime is defined as 150,000 developers, and governments, particularly for well-to-
miles (241,000 km) for light duty vehicles and 185,000 tank (WTT) energy production emissions that are beyond
miles (298,000 km) for heavy duty vehicles. our direct control.
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Overview — Climate Change — Circular Economy and End of Life — Air, Water, and Soil Pollution — Water Resources — Biodiversity and Ecosystems
Long-term, we expect that carbon neutral cars and Lower-carbon Energy Options
vans globally will be powered by some combination As the electric grid continues to shift to carbon‑free Future Carbon-neutral Transportation Options
of electricity, hydrogen, and hydrocarbon fuels from energy sources, CO2 emissions from electricity production
sustainable sources, depending on infrastructure, are expected to further decrease, creating even greater
technology development, policy, and customer CO2 emissions savings, particularly for EVs.
acceptance. (See graphic Future Carbon-neutral
According to Argonne National Laboratory’s GREET 2023
Transportation Options.) The challenge, however, as
model, compared to conventional port fuel injection (PFI)
highlighted by the scenario analysis, is not only meeting
gasoline engine with 10% ethanol (E10) vehicles, EVs
the need for a diverse set of environmentally friendly
reduce GHG emissions almost 60% when charged with
technology solutions globally, but flexibly developing
U.S. average grid electricity. (See EV Emission Savings on
and offering solutions that are responsive to the
page 63 to see how this translates to Ford products.)
changing needs of our consumers.
When electricity is produced using carbon-free energy,
We will continue to improve fuel economy and reduce the in-use GHG reduction is up to 100% on a well-to-
GHG emissions across our global vehicle portfolio, while wheels basis.
rapidly scaling our EV production rate.
The GREET model also shows possible GHG reductions
Vehicle Design for alternative fuels, enabling our customers to reduce
Our early EV actions have contributed to current GHG their carbon footprint during the transition to electric
reductions, as well as improvements in fuel economy in vehicles. GHG emissions can be about 15% lower for
our internal combustion engine (ICE) and hybrid vehicles. diesel and compressed natural gas (CNG) vehicles, 25%
These will continue to be key levers going forward as lower for 20% biodiesel blend (B20) vehicles, and 30%
we transform the portfolio. lower for 85% ethanol from corn (E85) vehicles.
Our efforts also include the development of hydrogen GHG emission reductions of about 55% are possible
fuel cell technology for our medium- and heavy-duty with hydrogen fuel cell vehicles using “grey” hydrogen EV: Electric vehicle; CCS: carbon capture and storage; FCEV: fuel cell electric vehicle; HEV: hybrid electric vehicle; ICEV: internal combustion engine vehicle;
vehicles. In partnership with the U.S. Department of produced by steam methane reforming (SMR) of natural PHEV: plug-in hybrid electric vehicle
Energy (DOE) we will develop and demonstrate hydrogen gas. Using “blue” hydrogen (produced mainly by SMR
fuel cell electric Class-5 Super Duty trucks through the coupled with carbon capture and storage), or “green”
DOE SuperTruck 3 program. With this project, we intend hydrogen (produced by electrolysis from carbon-free
to show that fuel cell electric technology offers cost, electricity), fuel cell vehicles can have 80-95% well-to-
payload, towing, and refueling times that are approaching wheels GHG reduction. Green hydrogen could also be
those of conventional gasoline and diesel trucks. used to synthesize synthetic fuels made from electricity
often called e-fuels. (See graphic Future Carbon neutral
Transportation Options.) While e-fuels are not yet
In Electric Vehicles, Batteries and Charging Infrastructure on p.34 commercially available, they have the potential for 95%
In ICE and Hybrid Advancements on p.38 GHG reductions over the entire life cycle compared to
ICE vehicles, according to FVV25.
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Overview — Climate Change — Circular Economy and End of Life — Air, Water, and Soil Pollution — Water Resources — Biodiversity and Ecosystems
We offer our customers many vehicles that are capable Vehicles Powered by Alternative Fuels
of using these reduced-GHG fuels. All our diesel vehicles
Conventional Alternative Production Method Typical Blend Levels Vehicle Type Ford Vehicle Models
are compatible with low-level biodiesel blends including
Fuel Fuel(s) and Feedstocks in Gasoline or Diesel
B20 in the U.S., Thailand, and Malaysia; B7 in Europe;
(varies by region)
B30 in Indonesia; and B15 in Brazil. Also in Europe, our
Transit, Transit Custom, Transit Courier, Transit Connect, Gasoline Ethanol Fermentation of corn starch 10%, 15%, 28%, or up Conventional spark- Low-level blends compatible in conventional vehicles for
and Ranger are compatible with renewable paraffinic (low and high or sugar cane (1st generation) to 85% in gasoline ignited IC engine. Flex- each region
diesel fuels such as HVO, renewable diesel, and e-diesel, level blends) or from non-food biomass fuel vehicle (FFV) E85 (U.S.): F-150, F-250, F-350, F-450 Super Duty, Police
and can be used at higher blends, typically from 33% to (2nd generation) adaptions for E85 Interceptor Utility, Transit, Transit Connect, Transit Cutaway/
100%. See table, Vehicles Powered by Alternative Fuels. Chassis Cab, E-350, E-450 Cutaway and Stripped Chassis
Supporting Customers E85 FFV (France and Sweden): Kuga, Fiesta, Puma, Focus,
We offer a comprehensive and flexible range of electric Transit Connect
and efficient internal combustion vehicles, including E-gasoline Chemical synthesis using Not yet available, Conventional spark- Expected to be compatible in all conventional gasoline
hybrids. To facilitate the transition, we are working CO2, electricity26, and water theoretically up to 100% ignited IC engine vehicles
to make EVs more accessible to millions, addressing in gasoline
barriers to entry such as charging and cost, and
improving the EV customer purchase experience. Diesel Biodiesel Transesterification of plant 5%, 7%, 20% in Conventional B7 (Europe): All diesel models
oils (soy, canola, rapeseed, diesel fuel compression ignition B20 (U.S.): F-250, F-350, F-450, F-550, F-600, F-600, Super
To meet our commercial customers’ growing demand for corn, palm) or animal fats IC engine Duty Pickups and Chassis Cabs; F-650 and F-750 Medium
value and productivity as well as sustainable products,
Duty Chassis Cab
Ford Pro combines digital and physical services to help
optimize and maintain customer fleets while offering Paraffinic Hydrotreating of plant oils or 33% to 100% in Conventional R33 (Europe): All diesel models
public, depot, and employee home charging of EVs, diesel animal fats. Chemical diesel fuel compression ignition R100 (Europe): Transit, Transit Custom, Transit Courier,
including the use of carbon-free energy. Our advanced (renewable synthesis using CO2 or IC engine Transit Connect, Ranger
telematics systems contribute to fuel efficiency and diesel, biomass, electricity26, and
reduced emissions by helping commercial customers E-diesel) water
optimize delivery or service call routes, including to put Not Compressed Natural gas from fossil Not applicable Spark-ignited IC engines Wide range of U.S. commercial vehicles with CNG/Propane
the right vehicle in the right place for the right job, and applicable Natural Gas resources. Anaerobic with CNG fuel system prep kits: F-250, F-350, F-450, F-550, F-600, F-650, F-750,
providing in-vehicle training for drivers to develop more (CNG, also digestion of biomass. Transit Connect, E-Series Cutaway, F-59, F-53 RV Stripped
efficient operating habits. biomethane, Chemical synthesis using Chassis
e-methane) CO2, electricity26, and water
In Electric Vehicles, Batteries, and Liquefied Propane and butane from Not applicable Spark-ignited IC engines
Charging Infrastructure on p.34 petroleum fossil resources with LPG fuel system
gas (LPG)
77 8,664
gallons of gasoline
not used33
37 4,163
gallons of gasoline
not used33
59 6,639
gallons of gasoline
not used33
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Overview — Climate Change — Circular Economy and End of Life — Air, Water, and Soil Pollution — Water Resources — Biodiversity and Ecosystems
Performance Outlook Operations — Scope 1 and 2 This same process is used to ensure that data for
We are on track to achieve our 50% reduction target for EVs are the core of our decarbonization strategy. Target — GHG Reductions the baseline and subsequent years are representative.
Scope 3 vehicle use, as shown in graph, SBTi Scope 3 Use Currently, the EV market is rapidly changing — demand Ford has set a science-based target, approved by SBTi, The base year 2017 was chosen to be consistent with
of Sold Products Target and Progress. Our preliminary has been slower than expected and prices are coming to reduce Scope 1 and 2 GHG emissions by 76% by 2035, previously released CO2e reduction targets; it was also
estimate for 2023 shows the average GHG intensity of down towards parity with internal combustion engine relative to a 2017 baseline. seen as a representative production year. We did not
the vehicles we sold in 2023 will be about 6% lower than (ICE) vehicles. We need to continue to adapt to remain use 2020 as a baseline due to the COVID pandemic
for the vehicles we sold in 2019. The preliminary data for competitive. That means offering high-quality, Methodology — GHG Reductions and global microchip shortages resulting in lower
2023 indicate the fleet average CO2e-intensity is about differentiated products and services at a price point This reduction target is based on the SBTi 1.5°C cross- production volumes.
the same as in 2022. customers are willing to pay. As we scale our EV business sector absolute contraction pathway of 4.2% annual,
linear GHG reduction. Scope 1 emissions account for 30% An annual third-party verification process validates our
to match demand, we can take advantage of increased
And we estimate the absolute Scope 3 emissions from while Scope 2 represents 70% of the emissions in the emission inventory. Following verification, final metric
plant capacity, design and manufacturing efficiency
the use of sold products (vehicles) will be reduced by baseline year. Scope 2 emissions are market-based. status is shared internally with the Vice President, Chief
initiatives, and improving battery costs to help increase
about 21% since 2019. Sustainability, Environment, and Safety Officer as part
the value proposition of our EVs and grow our market This target accounts for approximately 1% of Ford’s total of the Global Sustainability & ESG Meeting. This meeting
share. We also expect EV technology to continue to GHG emissions and covers 100% of the total Scope 1 and is also used to review intermediate data mid-year.
develop with decreasing associated costs and for the 2 emissions. This means that target covers 100% of our
grid to decarbonize, giving us confidence in achieving operations (manufacturing and non-manufacturing) that Target — Carbon-free Electricity
our long-term GHG reduction targets. are defined in our Inventory Management Plan as being Use 100 % carbon-free electricity in all manufacturing
within Ford’s operational control and includes many of facilities by 2035.
Complementary to our EV strategy, we continue to offer
customers broad choice with lower emissions during our global joint venture (JV) manufacturing facilities. Methodology — Carbon-free Electricity
the transition to fully carbon neutral transportation. For We ensure that our Scope 1 and 2 target is consistent Procuring carbon-free electricity is one of Ford’s key
example, fuel efficient hybrids are growing in popularity, with our GHG inventory boundaries through our GHG decarbonization objectives in achieving our science-
particularly in markets where EV infrastructure is not inventory and associated management plan, aligned based Scope 1 and 2 GHG reduction target. Progress
mature. Ford has been selling hybrid vehicles for more with the GHG Protocol and ISO 14064-3. The inventory is measured against the same base year of 2017.
than two decades. In 2023, we sold nearly 280,000 management plan clearly defines our operational This target covers all of the global manufacturing plants
hybrids globally, up nearly 20% year over year, and boundaries, emission sources, and associated where we have operational control. The same methodology
we expect them to continue growing this year. methodologies, to ensure consistency from year to year. for the GHG reduction target is used to ensure that GHG
For example, we have defined our organizational coverage for this target is consistent with our GHG
boundaries using the operational control approach. inventory boundaries and that the data for the baseline
This approach was selected as we believe it yields and subsequent years are representative. This target also
the most comprehensive and accurate accounting of goes through the same verification process as described
Ford’s global footprint, as the majority of Scope 1 and 2 for the GHG reductions target.
GHG emissions are generated from manufacturing Decarbonization Levers, Actions, and Investments
facilities and offices which Ford owns and operates. To achieve our operational emissions reduction goals
Each year, Ford reviews a comprehensive listing of and realize our carbon neutral future, we are using energy
properties, buildings, and spaces owned and leased more efficiently, reducing GHG emissions from our
by Ford Motor Company for inclusion or removal from operations and increasing our use of carbon-free energy.
the GHG inventory.
Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices
65
Overview — Climate Change — Circular Economy and End of Life — Air, Water, and Soil Pollution — Water Resources — Biodiversity and Ecosystems
The expected relative contributions of the different levers Energy Efficiency and GHG Reductions with new energy-efficient solutions, will save more
to reach our SBTi 2035 targets are shown in chart Key Energy efficiency is a priority as we modernize existing than 2,000 metric tons of CO2e and more than 2,600 Achieving Carbon Neutrality at Cologne EV Center
Decarbonization Levers for 2035 SBTi Target — Scope 1 plants and design new ones. Our energy efficiency and megawatt hours (MWh) of electric energy per year. To achieve carbon neutrality, Ford will reduce the
and 2. Past energy consumption and mix data; energy conservation efforts over the past decade have focused In 2024, the Cologne Electric Vehicle Center will produce use of energy and emissions in the Cologne plant
intensity and GHG intensity based on net revenue; and on improvements to lighting, compressed air, rotating the new Ford Explorer, our first European-built, all- by implementing new processes, machinery, and
gross Scopes 1 and 2 emissions are found in the equipment (fans, pumps, and motors), heating systems, electric passenger car. A second all-electric passenger technologies. All electricity and natural gas required
Performance Data section of this document. and process system optimization. car will follow later in the year. (See box Achieving to operate the facility is carbon neutral based on
Carbon Neutrality at Cologne EV Center for more details.) being 100% certified renewable electricity and
Our Energy Management Operating System, launched
in 2013, delivers both energy efficiency projects and We are also ensuring that our new offices are energy biomethane.
In Performance Data on p.135
energy conservation measures, with Plant Energy Teams efficient. In Dearborn, we are transforming the Research The heat required to warm the facility and processes
assigned at each plant to set priorities and implement and Engineering Center into a high-tech, efficient, and is carbon neutral, as the local energy provider will
measures. For example, a significant lighting project at forward-thinking campus. offset the corresponding emissions from the
Kansas City Assembly Plant in 2023 is projected to result assembly plant on behalf of Ford. The heat is
in 3,894 metric tons of CO2e reductions annually. generated by an external power plant and waste
In ICE and Hybrid Vehicles on p.38 incineration plant and provided through a dedicated
We also participated in the US Department of Energy’s
50001 Ready Program which helped us update and steam network to Ford.
better integrate the ISO 50001 management systems The local energy provider plans to reduce their
approach into our Energy Management Operating operating emissions for this heat delivery by
System. As a result, we have 31 Ready-recognized sites in approximately 60% in 2026 and then eliminate these
the U.S., including all of our U.S. manufacturing locations. emissions completely by 2035. Once fully operational,
Although only U.S. manufacturing sites are able to be Ford’s Cologne EV Center will be independently
recognized by the DOE under the Ready program, all certified as carbon neutral. This independent
of our manufacturing locations globally reap the benefits certification will be audited and reconciled on a
of this program, as the approaches have been integrated regular basis against purchasing high-quality carbon
into our Energy Management Operating System. offsets for any remaining emissions.
Looking to the future, we are focused on driving energy
efficiency throughout the manufacturing process. In
particular, we are making significant investments in our
plants to reduce and eventually eliminate Scope 1 natural
gas emissions which present a significant challenge for
our operations. For example, we are investing in a project
at Ohio Assembly Plant to reduce CO2 emissions associated
with natural gas combustion in their paint shops.
• •
United States China - Joint Ventures
production was 115,739 MWh in 2023.
Sacramento HVC/HCC Regional
Distribution Center
-- Changan Ford facilities
in Chongqing and Jiangling Ford
--
Anticipated to cover 90% of the facility's Ford and their partners have installed
5.9 113
usage, the system came on line Aug 2023. solar at 5 different plants.
MWp MWp
3.8MWp 6.1 MWp
• •
Germany Thailand - Joint Venture
Merkenich, Cologne
- - AutoAlliance Thailand
- -
The installation, due to be completed Ford and their partners increased
by mid-2024, will supply about 6% capacity of their rooftop solar
of the electricity needed for the Ford installation in 2023.
facilities located in Merkenich including
its development center.
0.7
MWp
5MWp 7.7MWp
Spain Thailand
Almussafes Vehicle Ford Thailand Manufacturing
Manufacturing Facility
Solar installation in the vehicle
7.7
MWp
Operational since 2022. The installation
is capable of producing the equivalent
parking yard covers a total area
of 59,000 square meters.
power every year to run 2,300 average
homes. This will be extended to 8.6 MWp
in the spring of 2024.
1MWp 13.SMWp
UK South Africa
"
•••• Daventry Parts Distribution Cente Ford Silverton Assembly Plant,
...
••••
•<1>
••• Installed in 2023 and is scheduled
to be operational in the first quarter
Pretoria
•
UK
Solar Dagenham Engine Plant
Supply Chain — Scope 3 — Purchased Goods of carbon-free electricity, a key enabler to addressing purchase at least 10% low-carbon aluminum and near-
and Services climate change. Representative Electric Vehicle Material Supply zero steel by 2030.34
Targets Chain Emissions (kg C0 2 e/vehicle)
All of our production suppliers were required to submit Plastics
Ford has established targets to achieve carbon neutrality carbon neutrality target dates by the end of 2022. We are Recognizing the important role the circular economy
for our supply chain (Scope 3 emissions — purchased using this information to develop a joint roadmap with plays in reducing emissions embedded in our vehicles,
goods and services). them on our journey toward carbon neutrality. In 2023, we have set a target to use 20% recycled and renewable
• Europe — across Ford of Europe Tier 1 suppliers for supplier carbon neutrality status was integrated into plastics in new vehicle designs for North America,
Scope 1 and 2 GHG emissions by 2035. production sourcing decisions. Europe, and Turkey by 2025. Our target for China is 10%.
• Global — across all suppliers, for all scopes, no later Supplier Engagement — Climate Best Practice Program Read More
than 2050. Ford was among the first American automakers to
in Circular Economy and End of Life on p.76
include our global supply chain on the Manufacture
Decarbonization Levers, Actions, and Investments 2030 (M2030) platform. This climate best practice Our Supplier Code of Conduct requires Ford suppliers to
Our supply chain is essential to reducing GHG emissions program provides support for our suppliers with use recycled and renewable materials where possible in
and achieving our carbon neutrality goals. We are measurement, management, and reduction of carbon packaging. It also mandates that suppliers increase their
focused on increasing supplier engagement across the emissions, water, and waste as we strive to reach carbon use of recycled content and improve the recyclability of
supply chain by leveraging the requirements of our neutrality globally. Ford products through material selection and product
Supplier Code of Conduct and engaging in initiatives design as approved by Ford.
such as Manufacture 2030. The latter builds on our Not only does this program provide support to our Batteries
suppliers in building an action plan toward carbon Data Quality and Availability — Catena-X
successful CDP Supply Chain reporting program to better In Europe, new regulations will require manufacturers
neutrality, but it will also help Ford identify and In an effort to increase the transparency of our supply
measure progress and help identify areas of concern. We to report on their supply chain carbon footprint and
prioritize key focus areas and those suppliers requiring chain, we have engaged with the Catena-X Automotive
are also focusing on decarbonizing key materials and extended producer responsibility for proper battery
extra support. Network, which was established to improve sustainability
improving data quality and availability. recycling. In advance of the European Battery Regulation,
and efficiency across the automotive supply chain
In 2023 we opened the voluntary platform up to all of our Ford is participating in EV battery pilots to support
Supplier Engagement — The Supplier Code of Conduct through continuous data exchange between partners.
Tier 1 global supplier sites (over 4,600), including suppliers compliance with both of these requirements.
We have outlined conduct guidelines for our suppliers Ford joins a wide range of partners from business and
since 2003, and in 2021, established a formal Supplier who have yet to establish science-based targets.
Read More science in this unprecedented collaboration between
Code of Conduct that applies clear expectations related Low-Carbon Materials companies in the automotive industry.
In Human Rights on p.96
to human rights, the environment, responsible material From a life cycle perspective for a strong EV portfolio, the
Steel and Aluminum — First Movers Coalition As a digital ecosystem and collaborative network,
sourcing, and lawful business practices for our supplier. highest emitting materials are batteries, steel, aluminum,
The First Movers Coalition is a global initiative to Catena-X will create uniform standards for data and
The document was refreshed in 2023 to include Ford in and plastics as shown in the chart to the right. Note that
harness purchasing power and supply chains to information exchange across the automotive value chain.
Europe’s accelerated carbon neutrality aspiration. this is only illustrative, the relative amounts will vary
create early markets for innovative clean energy This includes the calculation of product carbon footprints
The Supplier Code of Conduct requires Ford suppliers depending on the vehicles.
technologies. More than 90 companies comprise the and facilitating the exchange of primary CO2 data, a key
to establish science-based GHG reduction targets, action coalition to help accelerate the adoption of emerging to understanding embedded emissions in vehicles and
plans, and transparent reporting mechanisms aligned climate technologies. By 2030, these commitments will driving reductions. In 2023 we joined with Cofinity X
to support carbon neutrality no later than 2050 globally represent an annual demand of $16 billion for emerging for the beta phase of testing and selected partners for
(all scopes); and for Tier 1 sites shipping to Europe, carbon climate technologies and 31 million tonnes (Mt) CO2e a product carbon footprint study that will collect data
neutrality by 2035 (Scope 1 and 2). We also require our in annual emissions reductions. Ford has pledged to up to Tier 4 suppliers.
suppliers to increase energy efficiency and their use
Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices
69
Overview — Climate Change — Circular Economy and End of Life — Air, Water, and Soil Pollution — Water Resources — Biodiversity and Ecosystems
Performance Outlook
We have seen significant improvements in supplier Decarbonizing the supply chain is a complex task
engagement in 2023, particularly for CDP and of growing importance as we electrify our portfolio.
Manufacture 2030 (M2030) responses. For example, we Increasing collaboration to cost-effectively reduce
had a 20% increase in supplier CDP responses over 2022. the GHG emissions of our materials and parts while
It is also encouraging to see a number of our large Tier 1 improving data availability and quality are key enablers
suppliers engaging on the M2030 platform and requiring going forward.
their suppliers to participate, which is an important step
Increasing our use of renewable energy, including green
in tackling our Tier 2 emissions.
hydrogen, is the most important external factor in the
Furthermore, integrating carbon neutrality into our transition to low-carbon materials. Significant investment
sourcing decisions was a key step in changing how we in these and other technologies is critical — as is
do business. This, along with our continued engagement governmental funding and policy support to help
with suppliers to understand their commitment, will help facilitate the transition.
ensure future progress.
GHG Removals and Mitigation Projects Financed
Helping us meet our commitment to the First Movers through Carbon Credits
Coalition and our carbon neutrality aspirations, Ford is ESRS E1-7
taking steps to secure a supply of near-zero emissions The GHG removals and GHG mitigation projects financed
steel and low-carbon aluminum for future products. Ford through carbon credits mentioned here do not contribute
has signed non-binding memorandums of understanding to our GHG reduction targets. Any financed carbon
(MoUs) with strategic aluminum and steel suppliers to credits proposals are evaluated by the offsetting review
secure a supply of of near-zero emissions steel and low- board, composed of a cross-functional team of experts,
carbon aluminum and significantly improve the carbon based on strict criteria in terms of what is being offset
footprint of our supply chain, of which aluminum and and how it is being offset. The proposals are approved
steel production is a key component. In 2023 we met at the Global Sustainability & ESG Meeting. For example,
with these strategic suppliers to understand the required it is required that project GHG reductions should be
transformation, including the significant increase in on track for a science-based pathway, have an end date
demand for carbon-free electricity and hydrogen. to the usage of offsets and the amount must be below
Ford’s defined threshold. The offsets that are purchased
In 2023 we also communicated with suppliers impacted
need to be third-party certified, highly additional,
by the EU Carbon Border Adjustment Mechanism (CBAM)
permanent, and with no leakage.
and began collecting primary direct GHG emissions data
for CBAM impacted parts. No offsets were purchased in 2023 for use of making
carbon neutral claims. As previously noted, however,
once fully operational, the Cologne EV Center will be
independently certified as carbon neutral. The details
of the amount and the chosen financed carbon credit
projects will be disclosed in future reports.
Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices
70
Overview — Climate Change — Circular Economy and End of Life — Air, Water, and Soil Pollution — Water Resources — Biodiversity and Ecosystems
Climate Change
Scenario / Resilience Analysis
E1 SBM-3
Our Approach to Resilience Analysis Introduction to the Scenarios 2035–2045 Scenario Comparison Overview
The scenario analysis informs the Company about how We use the International Energy Agency’s (IEA) World
Net Zero Emissions by Stated Policies Scenario High Emissions/Temperature
to position itself appropriately on climate risks, related Energy Outlook (WEO) and Intergovernmental Panel on
2050 Scenario (NZE) (STEPS) Scenario (RCP8.5)
opportunities, and the resilience of our strategy and Climate Change (IPCC) scenarios as authoritative sources
business operations. Each scenario requires a high-level aligned with state-of-the-art science for global energy Temperature Increase 1.5°C ~1.8°C 2°C
qualitative assessment of the potential impact of the projections that are relevant to our global footprint. (2040 est.)
scenario and climate-related issues on Ford’s financial WEO scenarios provide insight into energy supply and
performance (revenues and costs) and financial position demand with implications for climate targets and economic Policy Global policy implemented Today’s policies with No explicit climate policy
(assets and liabilities). development. Of the three WEO scenarios, we use the to limit temperature rise to no changes
Stated Policies Scenario (STEPS) and the Net Zero 1.5°C. CO2 pricing rises
A team of internal experts qualitatively evaluated our Existing and planned
Emissions by 2050 (NZE) Scenario shown in the table rapidly in all regions
corporate strategies assessing our resilience to each CO2 pricing
2035-2045 Scenario Comparison Overview. We also
scenario. The team reviewed the scenario assumptions,
include the IPCC Representative Concentration Pathway Technology Deploys a wide portfolio of Evolutionary growth Modest progress, focusing on
brainstormed scenario implications to industry and Ford,
8.5 (RCP8.5) high emissions and temperature scenario. clean energy technologies unconventional fossil energy
and considered whether our strategies and investments
Like the WEO scenarios, RCP8.5 has underlying development and food security
are resilient to future business environments. The
projections of energy consumption and socio-economic Energy Consumption (EJ) 632 to 528, -16.5% 632 to 692, +9.5% 650 to 1,000, +54%
resilience analysis was conducted for the entire value
factors. These three scenarios cover conditions from high 2022 to 2040 (elec +29%) (elec: +18%)
chain with focus on our own operations and the supply
climate ambition to status quo to significant climate
chain. All previously discussed climate-related impacts,
impacts, providing a useful range of circumstances to Energy Mix 58% renewables & biomass 28% renewables & biomass 18% renewables & biomass
risks, and opportunities were considered in the analysis.
cover relevant risks and uncertainties in Ford’s value
Our scenario analysis covers a 2035-2045 time horizon. Energy Prices in 2030s Oil averages $42/bbl Oil averages $85/bbl Fossil fuel prices double by
chain.
This is aligned with our current interim 2035 Science mid-century (vs 2005)
Based Target initiative (SBTi) Targets. It is far enough The three scenarios:
EVs in 2030s Higher EV adoption across Lower EV adoption in Extremely limited EV adoption;
into the future, as it will take time to decarbonize the
• The Net Zero Emissions by 2050 Scenario (NZE) shows markets advanced economies continued reliance on oil in the
transportation system, yet still relevant for Ford’s
the global energy sector achieving net zero CO2 transport sector
strategic planning processes. These scenarios are not
emissions by 2050, with advanced economies reaching
predictions of the future and do not represent forecasts. Environment Less severe weather events Increasing severe weather Frequent and severe weather
NZE ahead of others.
events events
The 2023 published analysis was refreshed at the
• The Stated Policies Scenario (STEPS) is a pragmatic Economy 3% average annual growth 3% growth slows due to 3% growth, but low per capita
beginning of 2024, including adding a high emissions
exploration of the current policy landscape, mapping high rebuilding costs income increase as population
and temperature scenario. The process of climate
out a trajectory of policies that are in place or under growth is high. Little
scenario analysis is evolving, and we expect the
development by governments around the world. convergence between high-
approaches and data quality to improve over time, which
will further contribute to our understanding of climate • The IPCC’s Representative Concentration Pathway 8.5 and low-income countries
risks and opportunities, and help strengthen our ability (RCP8.5) considers a case with high energy demand
to adapt to climate change. This will include, in the future, and GHG emissions growth in the absence of climate
the consideration of estimated anticipated financial policies, leading to high temperature increase.
effects from material physical and transition risks.
Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices
71
Overview — Climate Change — Circular Economy and End of Life — Air, Water, and Soil Pollution — Water Resources — Biodiversity and Ecosystems
Common Assumptions for WEO Scenarios35 The Net Zero Emissions by 2050 Scenario (NZE)36 There is a slow pace of innovation in non-fossil
Many assumptions are common between the STEPS This is a normative IEA scenario that shows a narrow but technology, with only modest cost and performance
and NZE scenarios as described by the WEO: theoretically achievable pathway for the global energy improvements. Technological progress is focused on
sector to achieve net zero CO2 emissions by 2050, with advanced fossil technologies, particularly coal, and
• The global economy is assumed to grow by ~3% per
advanced economies reaching net zero emissions ahead unconventional oil sources after 2050. GHG emissions
year on average over the period to 2050, with large
of others. This scenario also meets key energy-related more than double by 2050 due to increased fossil
variations by region and over time
United Nations Sustainable Development Goals, in energy use and growing agricultural production for
• GDP per capita in emerging market and developing particular, by achieving universal access to energy by the large population.
economies continues to gradually move toward the 2030. This effort requires increased investment in clean
The Results — Scenario Implications
levels in advanced economies energy and infrastructure output, in both emerging
markets and developing economies. The scenario does The results of the resilience analysis are summarized
• The global population is assumed to rise from separately for each scenario in the tables below. Key
not rely on emissions reductions from outside the energy
7.8 billion people in 2021 to 8.5 billion in 2030 and implications for industry and Ford are provided along
sector to achieve its goals but assumes that non-energy
9.7 billion in 2050 with a short final assessment for Ford.
emissions will be reduced in the same proportion as
• Improvements in health, diet,and living conditions have energy emissions. It is consistent with limiting the global
gradually lifted life expectancy of the global population temperature rise to 1.5°C by 2100 without a temperature
by a decade over the past 40 years. Coupled with overshoot (with a 50% probability).
declining fertility rates, this translates into a rising
The Stated Policies Scenario (STEPS)36
share of older people in the global population. An older
STEPS provides a more conservative benchmark for the
population uses more energy than the average
future because it does not assume that governments will
population at home, but less for transport
reach all announced goals. The scenario is not designed
• The share of the global population living in towns to achieve a particular outcome, and the rise in global
and cities is expected to rise to almost 70% by 2050. average temperatures associated with STEPS is around
Urban development has implications for patterns of 2.4°C by 2100 (with a 50% probability). Instead, it takes
energy use a more granular, sector-by-sector look at what has been
put in place to reach energy-related objectives, taking
• Technology costs are crucial in determining how
into account not just existing policies and measures
demand for energy services is met in each sector or
but also those that are under development. The STEPS
country. The cost of energy technologies evolve over
explores where the energy system might go without
time in the scenarios as a result of continued research,
a major additional steer from policy makers.
improvements in manufacturing and learning-by-doing.
However, a continuous process of technology High Emissions/Temperature Scenario (RCP8.5)37
improvement and learning is built into the modeling. The RCP8.5 scenario combines assumptions about
A reduction in clean technology costs is assumed, high population and relatively slow income growth
albeit with variations depending on the level of policy with modest rates of technological change and energy
support and extent of deployment intensity improvements. With no explicit climate policy,
the high energy demand is met primarily by fossil fuels.
International trade in energy and technology is limited.
Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices
72
Overview — Climate Change — Circular Economy and End of Life — Air, Water, and Soil Pollution — Water Resources — Biodiversity and Ecosystems
• Policy: What-it-takes policies to achieve net zero. CO2 pricing in all regions • Significant carbon neutrality progress achieved as EVs become pervasive • Innovation allows for seamless coordination of private and public
• Environment: Low climate change. Severe weather events increase and consumers are motivated to contribute toward climate solutions transportation
• Social: More local and personal environmental activism • Low cost of oil favorably positions highly efficient internal combustion • Requires multiple mobility solutions for urban, suburban, and rural applications
engine (ICE) vehicles in developing markets while pressure to sunset • Massive competition in green space with small, agile companies entering
• Economy: Global growth 3% per year. Economy is driven by new industries
them remains strong in most regions
providing green solutions and technologies • Fast-paced shift in skills and jobs
• Increased collaboration across sectors and within auto industry on
• Energy prices: Oil demand drops by 30% by 2030 and prices $42 per barrel
key challenges
• Technology: Speed of scaling up innovation is rapid. Governments support
• The electric grid decarbonizes quickly with supporting policy
R&D and collaborate to reduce costs. EV sales robust
Ford Implications
• Rapid migration to EVs in developed countries while less-developed regions • Mix of public and private, first-mile and last-mile solutions
that struggle to switch to EVs have diverse, low-cost solutions and maintain • Intense competition causes niche focus by smaller players causing Ford
ICE options to buy up smaller innovative companies and incorporate them into the
• Need to find alternative solutions for medium- and heavy-duty vehicles in Company’s technology portfolio or increase focus on “major” segments
response to ICE phase-out plans • Occasional disruptions from weather events such as storms, wildfires,
• Fuel cell emphasis and technological advancement needed to retain or floods affect production at our facilities and must be managed
commercial truck leadership • Cradle-to-grave focus on vehicles enables strong circular economy efforts
• Ford Pro solutions become a larger portion of the portfolio and mobility • Rapidly changing technology requires workforce upskilling and reskilling
services expand
Ford Assessment: Technology opportunities and environmental needs align to deliver diverse solution sets addressing climate change during the transition to NZE. Swift action with agile product development processes is required due
to heightened competition from newcomers. Challenge in finding winners globally to achieve scale.
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73
Overview — Climate Change — Circular Economy and End of Life — Air, Water, and Soil Pollution — Water Resources — Biodiversity and Ecosystems
• Policy: Assumes only policies already announced • Mobility hampered by congestion, air pollution, and severe weather • The electric grid decarbonizes slowly with limited supporting policy
• Environment: High climate change. Significant migration and rebuilding • Decreased demand for personal vehicles due to environmental impact • Buy local initiatives/nationalism increase and undermine global brands
from frequent natural disasters and urban congestion. Increased reliance on public transportation • Increased emphasis on individual energy independence as electrical grid ages
• Social: Middle class constrained due to pressure on urban areas. • Increased supply chain disruptions lead to more complexity to avoid • Healthcare, safety, and education systems strained by climate events and
Urbanization is a key driver dependence on single suppliers or regions social unrest
• Economy: Global economy grows 3% per year but slows due to increasing • Increased social pressure on companies and governments to take • Cost of living impacts and widening wealth gap
rebuilding costs climate action
• Energy prices: Oil demand rebounds, $82 per barrel Ford Implications
• Technology: Technologies get slowly cheaper. EV sales lower than
• Lower than expected EV demand requires pricing and policy support • Smart mobility does not reach full potential as foreseen; autonomous vehicles
expected and primarily in advanced economies
• Electric vehicles are required but are expensive. Low demand and lack are a niche market
of policy hinder their profitability • Increased extreme weather events such as storms, wildfires, or floods disrupt
• Vehicle solutions must be environmentally friendly (air quality and CO2) production at our facilities. Production delays and cost increases lower sales
and simultaneously rugged enough to handle severe weather and decrease profits
• Electric vehicles can provide a temporary source of electricity during power • Supply chain redundancy needed to prevent weather-related supply chain
outages and extreme weather events disruptions. Carbon neutrality and electrification commitments are challenged
• Small vehicles, micro-mobility — such as e-bikes and e-scooters, and • Circular economy affects key sectors including battery manufacturing
increased car-sharing satisfy the market for environmentally friendly solutions
Ford Assessment: A challenging environment and economy make strategy development complex, but limited policy provides some support for climate-focused actions. Increasing extreme weather events are a clear threat making it easier to
gain multi-stakeholder support. Product, service, and supply chain diversification is critical to maintain resilience. Ford must accelerate work toward developing meaningful, market-driven policy solutions to address climate change with urgency.
Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices
74
Overview — Climate Change — Circular Economy and End of Life — Air, Water, and Soil Pollution — Water Resources — Biodiversity and Ecosystems
• Policy: No climate policy • High cost of living leads to less disposable income and widening wealth gap • The aging fossil-based electric grid requires continual maintenance and repair
• Environment: Highest climate change with severe weather impacts. • Low disposable income leads to decreasing market for personal vehicles. after severe weather events
Poor air quality Growth of public transportation systems using fossil fuels • Mobility severely hampered by congestion, air pollution due to continued use
• Social: Low per capita income, little growth. High disparity between low- • Emphasis on greater self-sufficiency of individual countries and regions of fossil fuels for transport, and severe weather
and high-income countries promotes the circular economy • Little redundancy in supply chain due to domestic focus; disruptions more
• Economy: Percent growth but low per capita income increase as population • Limited international trade in energy and technology; greater reliance on common
growth is high. Little convergence between high- and low-income countries. domestically available resources • Environmental concerns are locally strong, especially in high- and medium-
• Energy prices: Oil demand rebounds, ~$82 per barrel income regions; lower-income regions are focused on food security
• Technology: Technological progress is modest, focusing on unconventional • Global population increase strains capacity of industrial production
fossil energy development and food security Ford Implications
• Lack of pricing and policy support minimizes the EV market • Recurring extreme weather events, droughts, and flooding require planning
• Limited EV production. Domestic manufacturing emphasis makes obtaining for relocation of assembly plants to less affected regions
battery materials for EVs difficult • Manufacturing becomes regional with local supply chains. Materials are
• Internal combustion engine vehicles (ICEVs) dominate the market in this limited and costly requiring vehicle design changes
fossil fuel world. High cost of fuel increases demand for fuel efficient • Regional circular economy grows with resource scarcity
vehicles, making hybrid electric vehicles (HEVs) the standard engine type • Without global supply chain redundancy, weather-related disruptions must
• Demand grows for commercial vehicles and public transport; personal be managed. Supplier location vulnerability to physical climate risk is key
vehicle sales decline factor in supplier selection
• Small, rugged vehicles with higher ground clearance are required to handle • Without supporting policies, carbon neutrality and electrification
severe weather and minimize operation cost commitments are delayed/abandoned
Ford Assessment: Most difficult scenario in which to implement climate-based strategies due to societal disinterest. Business model maintains ICEV focus for decades with extremely limited or no EV production. Supply chain is fragile, local,
and subject to disruptions by frequent extreme weather events, requiring careful management. Circular economy is key to secure resources and reduce costs. Resilience requires major changes from current business plan, with emphasis on
smaller commercial vehicle HEV product offerings and locally-sourced raw and recycled materials, but does not achieve climate goals.
Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices
75
Overview — Climate Change — Circular Economy and End of Life — Air, Water, and Soil Pollution — Water Resources — Biodiversity and Ecosystems
Resilience of Ford’s Strategy • Increased production stoppages at Ford or supplier scenario shows that without supporting policies, electric being the first automaker to open up Tesla’s Supercharger
Key Findings facilities due to climate-related natural disasters. vehicle opportunities are extremely limited. network to our EV customers. Additionally, Ford Pro is an
Through our scenario development process, Ford leaders A significant disruption to our production schedule and integrated partner helping customers decarbonize their
Many factors lead to this uncertainty in EV market
and subject matter experts identify risks, associated lower volumes of more profitable products could have fleets, not just with vehicles but also charging solutions
penetration. Urban environment trends are expected
challenges, and opportunities as we work toward our a substantial adverse effect on our financial condition and productivity software.
to be a major determinant of consumer vehicle choice
carbon neutrality goal. We have identified the following In the RCP8.5 high emissions and temperature scenario, along with policy, infrastructure updates, and realizing Ford’s response to the various scenarios will require
themes as critical to success: our EV strategy, public risks to Ford and society include: affordable technologies. As a result, we expect carbon different solutions, but the building blocks are in place.
policy, workforce, customer experience, finance, mobility neutrality to be reached in different product segments Our EV foundation will allow us to scale as the market
and AI, operations, suppliers, and reputation. Below are • Increased supply chain disruptions due to climate-
and regions at different times. Passenger vehicles will grows, and we will continue to address key enablers.
examples of how these themes are exposed through the related severe weather and drought, which is
be carbon neutral before larger commercial vehicles, Our lower emissions internal combustion engine vehicles,
scenario analysis. complicated further by the shift from international
and advanced economies with progressive policies will including traditional hybrids and alternative fuel-
to regional supply chains
In the Net Zero Emissions by 2050 scenario, Ford is well be carbon neutral before the rest of the world. compatible vehicles, help decarbonize the business
positioned to respond to the opportunities of our electric • Decreased vehicle sales due to lower demand for in the transition or in the high temperature scenario.
In summary, a critical take-away from this future scenario
vehicle strategy. Risks in this scenario for Ford, and personal vehicles, EVs sales extremely limited
deep dive is a need for a diverse yet global set of Read More
companies in most industries, include: For both the STEPS and RCP8.5 scenarios there is high environmentally friendly technology solutions that are
In Products and Services on p.31
• Rapid acceleration of diverse technology solutions that risk that Ford, and companies in most industries, cannot responsive to the changing needs of our consumers.
decarbonize the entire value chain to reach our climate Our Sustainable Financing Framework was introduced
require workforce upskilling and reskilling Ability to Respond
and energy aspirations. in 2021 to support the design, development, and
• Heightened competition from agile newcomers in the We are committed to building a profitable, enduring EV
manufacture of our electric vehicles and create positive
“green space” The lack of a comprehensive, market-driven carbon business for the long-term. This will help us address the
social and environmental benefits in the transition
pricing solution reflects a major shortcoming of the largest source of our GHG emissions and successfully
to EVs.
Our strategic response includes introducing a new STEPS and RCP8.5 scenarios. Furthermore, without any compete in a low-carbon economy. Our EV strategy is to
learning strategy at Ford and investing in job training explicit climate policies, the RCP8.5 high emissions and build the greatest vehicles at the lowest cost and invest The net proceeds from each sustainable financing is
and career readiness initiatives, such as our work to train temperature scenario fails to set climate goals, let alone in innovative, software-enabled customer experiences being used to fund or refinance, in whole or in part, new
future employees on advanced batteries at BlueOval SK meet them. Ford faces significant costs to adapt to that our customers love and differentiate our brand. or existing green or social projects, assets, or activities
Battery Park. We will continue to adapt our reskilling climate change in this scenario, including relocating Along this journey we anticipate that EV technology of Ford or Ford Credit. $4.21 billion has been allocated
process going forward to address our changing facility sites and changing product offerings. will continue to advance and become more affordable, as of February 2024.
vehicle portfolio. while the grid will continue to decarbonize, bolstering
Analysis of the three scenarios indicates that, while The financing will continue to be allocated and invested
Risks in the Stated Policies Scenario for Ford, and our confidence in achieving GHG reductions.
consumer preferences and technology choices are in four different areas:
companies in most industries, include: changing, there is uncertainty associated with the pace Our approach of offering a broad choice of lower
• Clean transportation
• Higher costs for available technologies to reduce GHG of uptake or the achievable market share of new emission powertrains also provides us with resilience
technologies, such as EVs and autonomous vehicles. during the transition period to fully carbon neutral • Clean manufacturing
emissions leading to lower consumer acceptance
transport. For example, hybrids will be a key product
While the NZE scenario suggests high uptake, the • Making lives better
• Engineering and financial resources required to offering during the transition to EVs, particularly in
deploy new technologies, while maintaining existing competition for market share is increased. In the STEPS
markets where the EV infrastructure is not mature. • Community revitalization
technologies across a range of products scenario, however, lower-than-expected EV demand or
increased weather events could result in increased costs We will partner when necessary to address key enablers, Read More
and decreased EV sales and revenue. The RCP8.5 leverage scale, and avoid capital destruction, such as
In the 2023 Sustainable Financing Report
Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices
76
Overview — Climate Change — Circular Economy and End of Life — Air, Water, and Soil Pollution — Water Resources — Biodiversity and Ecosystems
II I
I As part of our commitment to protecting the
environment, our We Are Committed to Protecting
Human Rights and the Environment policy calls on us to
use recycled and renewable materials, reduce substances
of concern, and improve recyclability of our products
Our broader aspiration is to utilize only recycled or
renewable content in vehicle plastics. Ford has begun
the process of tracking the recycled and renewable
content in pilot programs and will continue work to
operationalize the process for future programs.
through material selection and product design.
Using Recycled Materials for Vehicle Parts
This policy extends beyond Ford’s operations, as we ESRS E5-2
explicitly require our suppliers and expect partners While not every polymer can easily use recycled material,
and joint ventures to adopt and enforce similar policies there is potential for recycling to reduce the carbon
and extend them to their own supply chain. footprint of some of our plastics by 70-90%.
Our Approach: A Focus on Plastics Through activities such as transforming recycled plastic
ESRS E5-2 bottles into vehicle parts, we are helping to play a major
Over 85%38 of vehicle parts and materials are recycled role in improving or reducing the carbon footprint of
and reused at their end of life. Understanding that the auto parts.
...
N metallic portions of vehicles are already highly recycled,
0 Due to its light weight, recycled plastic is ideal for the
...
75% 17%
N
we are focused on recycled and renewable content
0C. manufacture of underbody shields, engine under-shields,
a, in plastics.
a: and front and rear wheel arch liners that can help
"'
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By increasing the sustainability of plastics in our vehicles’ improve vehicle aerodynamics. We also use post-
C:
"' metals (already plastics, elastomers,
C:
;:;: design, we can make a beneficial impact on the consumer nylon and polypropylene carpeting for cylinder highly recycled) textiles (area to improve)
,,
C: environment — and our business. head covers, fans and shrouds, and carbon canisters.
"'
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:c Waste products generated by other industries comprise
"'
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"!2111 much of our recycled and renewable content. We use
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the ISO 14021 standard to account for this content. When
,,"'
~ tracking our status for recycled content, we use the part
~
~"' inventory list associated with the high volume variant liquids (already recycled other
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Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices
77
Overview — Climate Change — Circular Economy and End of Life — Air, Water, and Soil Pollution — Water Resources — Biodiversity and Ecosystems
We are also deriving value from waste material, The $2.5 million grant is one of 30 DOE projects to help Remanufacturing Supports Sustainability Goals
New Frunk Design Reduces Complexity, using recycled ocean plastics in the Bronco Sport. decarbonize the U.S. industrial sector, advance clean Remanufacturing has been an important part of Ford’s
Weight, and Cost This exemplifies our approach to the circular economy manufacturing and improve America’s economic sustainability effort since it was introduced in response
Increasing the sustainability of plastics in vehicle as we seek to migrate these materials to other vehicles competitiveness. to shortages of steel and iron during World War II. Since
design can help to make a beneficial impact on the and applications. then, Ford has remanufactured powertrain assemblies,
In the first year of the project, Ford and our partners
environment. The 2023 Mustang Mach-E frunk is a turbos, injectors, steering components, brake components,
Using Renewable Materials for Vehicle Parts have successfully developed polyols derived from CO2,
prime example. electronic modules, starters, and alternators.
Renewable, plant-based materials continue to play a that show reduced embodied carbon compared to their
The simplified frunk design in the Mustang Mach-E role in our sustainability strategy. Ford is a leader in this petroleum-based counterparts as measured through Remanufacturing turns a previously used, sold, or worn-
drastically increased post-consumer recycled content. space, having implemented nine plant-based materials Life Cycle Assessment (LCA) and initial scalability. out part into a like-new or better-than-new condition
Created from recycled packaging, including the in current and past vehicle production. These robust CO2-based polyurethane foams were formulated to meet which can be warranted for performance level and
approximate equivalent of 115 post-consumer use materials enable lighter weight parts that can help manufacturability. The current work focuses on meeting quality. Remanufacturing saves considerable energy,
yogurt cups, the new frunk tub goes from six pieces improve fuel economy, sequester carbon, and reduce performance requirements for applications including uses less raw material compared to a new unit,
to one, reduces the weight by over 6.6 pounds, and global warming impacts. They also require less energy seating and noise, vibration, and harshness reduction. substantially reduces CO2 emissions, and helps extend
drastically cuts the part cost. to manufacture. Our industry-first sustainable materials the life cycle of the vehicle product line.
Closing the Loop in Aluminum Recycling
include soy foam, wheat straw, rice hulls, tree-based
The innovative redesign of the frunk insert We are the largest automotive aluminum recycler in Reclaimed powertrain material supports Ford
cellulose, and coffee chaff.
garnered a sustainability award from the Society the world. Our work to close the loop in aluminum sustainability objectives. In 2023, we reclaimed 4,077
of Plastics Engineers. Soy-based foam, launched on the 2008 Mustang, has recycling supports our policy to use recycled materials metric tons of steel and 3,058 metric tons of aluminum
been used in every Ford North American built vehicle and improve the recyclability of our products. Our closed from transmission material. We also reclaimed 1,128
for seat cushions and backs for more than a decade, loop recycling system maximizes aluminum recycling metric tons of cast iron, 534 metric tons of steel, and
totaling over 23 million vehicles. Use of bio-based foams in our plants and minimizes the need for primary metal. 741 metric tons of aluminum from engine material.
have reduced greenhouse gas emissions by about 210 Combined, Ford supplied 119,000 remanufactured
Working closely with our aluminum sheet suppliers, we
million pounds cumulatively, and continues to save an engines and transmissions in the U.S.
have created unique alloys that enable us to maximize
average of 3.38 million pounds of petroleum annually
the reuse of aluminum within our own plants. Not only Battery Recycling
since 2014.
does our system recover aluminum scrap during parts End of life vehicles are a crucial part of our supply chain,
Our Advanced Polymer Technologies team continues stamping, but it also keeps the various aluminum alloys and we are committed to increasing battery recycling.
to pioneer the development of new sustainable plastic separated so they can be recycled back into fresh alloy To further these efforts we support various battery
materials and processes including using waste from for new vehicles. Making recycled aluminum only takes recycling companies, including with letters of support
olive production to reinforce plastics, captured carbon around 5% of the energy needed to make new aluminum, for U.S. Department of Energy grants.
dioxide in foam formulation and low-carbon basalt fibers according to the Aluminum Association, and minimizes
for reinforcement. the need for primary metal. We have also begun utilizing collection points to reduce
inefficiencies in shipping one-off, end of life batteries
Additional Strategies and Actions We currently recycle up to 20 million pounds of aluminum across the country — this allows us to ship full-truck
ESRS E5-2 each month at our Dearborn Stamping, Kentucky Truck loads reducing our environmental footprint.
Converting CO2 to Polyurethane Foam and Buffalo Stamping facilities. This represents
Ford was awarded a grant by the U.S. Department approximately 25% of our aluminum sheet coil purchases. End of life batteries are sent to recyclers who are
of Energy to conduct research on using CO2 as a dedicated to recovering the underlying raw materials
feedstock to make more sustainable polyurethane foams. with the intent of reintroducing these materials into the
broader battery supply chain.
Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices
78
Overview — Climate Change — Circular Economy and End of Life — Air, Water, and Soil Pollution — Water Resources — Biodiversity and Ecosystems
In Europe, new regulations will require manufacturers shall aim to reduce or replace carcinogenic, mutagenic, generation by 5% and reducing waste disposed, or Waste Management Metrics and Targets
to report on their extended producer responsibility for reprotoxic or persistent, bio accumulative and toxic removed from the value stream, by 10%. We will continue ESRS E5-3
proper battery recycling. substances in the products they supply to Ford. to drive waste sent to landfill reductions globally and We have progressed toward targeting absolute
progress toward our zero waste to landfill goal. reductions in the waste strategy so that we can more
Life Cycle Assessment (LCA) Research and Regulations Expanded efforts will be made, over and above
clearly define our impact to the environment and
We continue to conduct LCA-based studies to evaluate the RSMS, to reduce certain substances of concern in The third phase builds on the second phase of the
surrounding communities.
potential environmental implications of vehicle raw non-dimensional commodities used in manufacturing strategy, which focused on minimizing waste generated
materials, manufacturing, and use. Topics include operations, such as paints and related chemicals, from high-volume streams and managing the waste we Our most recent waste strategy targets are to reduce
recycled polymers and composites, cradle-to-gate and adhesives and sealers, hydrocarbon lubricants, etc. generate to avoid landfill disposal. absolute global waste generated by 5% and to reduce
use phase impacts of lithium-ion batteries, and benefits In support of this Manufacturing Materials strategy, global waste disposed by 10% based on a 2022 base year.
Our Supplier Code of Conduct requires suppliers
of EV battery circular economy. which will soon be officially launched, we have
to maintain an ISO 14001-certified environmental Tracking our Progress
developed a targeted list for certain substances of
In the EU, we are anticipating regulations related to LCAs. management system. Beyond that, we are also beginning ESRS E5-5
concern, including substances of very high concern,
to receive various waste measurements such as total Ford facilities around the world sent approximately
• The EU Battery Regulation requires a Carbon Footprint for replacement, reduction, or reformulation. We have
hazardous waste from our suppliers. 16,300 metric tons of waste to landfill, 8% less than in
Declaration starting in 2025 engaged selected suppliers of high-volume commodities
and are working with them to review current use of Actions 2022. Currently, we have 86 zero waste to landfill (ZWTL)
• The EU CO2 Fleet Regulation requires the European substances of concern and identify possible alternatives. To ensure that more of our facilities reach zero waste sites globally. The Sterling Axle Plant and Essex Engine
Commission to set out a common Union methodology to landfill status, we continue to implement a range of Plant became the latest sites to achieve ZWTL in 2023.
for the full life cycle CO2 emissions by 2025, with Waste Management Policies
waste reduction initiatives. Ongoing initiatives include All Ford manufacturing plants in China operate with zero
ESRS E5-1
voluntary reporting from 2026 onwards implementing new technologies and programs that
We have set the sustainability aspirational goals to waste to landfill. Waste generated in all factories is either
• UN Economic Commission for Europe’s Working Party minimize waste and standardizing the tracking and recycled or managed for thermal destruction with or
eliminate single-use plastics across our global operations
on Pollution and Energy, a subsidiary body of the sorting of waste to increase recycling and reuse. without energy recovery instead of being sent to landfills
by 2030 and reach true zero waste to landfill across our
World Forum for Harmonization of Vehicle Regulations, global operations. Eliminating Single-use Plastics for final disposal. Our Blue Oval European facilities have
has set up an informal working group on a harmonized We continue initiatives around the world toward our also all achieved zero waste to landfill status, using the
vehicle LCA methodology with adoption of final Our We Are Committed to Protecting Human Rights and same strategies.
goal of eliminating single-use plastics. Global teams
recommendations expected by end of 2025 the Environment policy calls on us to divert waste from
are collaborating to reduce single-use plastics in part It’s essential that our plants have the resources needed
landfill to products and reduce single use plastic.
Substances of Concern and Substances packaging. Other regional efforts include returnable to collect and manage waste to help them meet our
of Very High Concern Our Approach to Waste Management containers for take-away food in Cologne, Germany and global waste standard, a minimum set of requirements
ESRS E2-2, ESRS E2-5 ESRS E5-2 phasing out single-use plastic utensils in all our facilities for the manufacturing plants to successfully pursue our
Ford’s Restricted Substances Management Standard Not only does reducing waste help reduce our impact in U.S. and Canada. waste-related sustainability targets.
(RSMS) and associated Restricted Substances List (RSL) on the planet, but it also optimizes efficiency in our Reducing End of Life Impacts
restricts or excludes certain chemicals from parts, resource-intensive industry. By reducing or recycling We proactively review non-dimensional materials such
materials, equipment, packaging, office supplies, generated waste, we can avoid the landfill, reduce as lubricants and paints within our manufacturing
machinery, and/or tooling supplied to or manufactured greenhouse gas emissions, and generate an additional operations. Going beyond applicable regulations, we
by Ford or intended for use in Ford products. The supply of valuable resources. are developing a timeline to further reduce substances
Standard supplements, but does not supersede, the In 2023, we launched the third phase of our global waste of concern in our facilities, including those that are
responsibility of each supplier to comply with laws and management strategy, which will continue until 2027. carcinogenic or environmentally persistent.
regulations for the receiving Ford locations. Suppliers During this time, we will focus on reducing overall waste
Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices
79
Overview — Climate Change — Circular Economy and End of Life — Air, Water, and Soil Pollution — Water Resources — Biodiversity and Ecosystems
Sustainable Manufacturing:
By recycling materials we’re At the International Distribution The Cologne Electric Vehicle Center
minimizing the amount of waste Operations plant in Mexico, we have will be Ford’s first completely
sent to landfills and reducing optimized water usage to the point carbon neutral production facility
our need for raw materials, which that zero freshwater is used in the when it begins producing the all-
in turn helps reduce our production process at the Irapuato electric Explorer in 2024.
environmental impact. Transmission Plant and the
By adopting lean manufacturing
Chihuahua Engine Plant. Freshwater
The results of lean manufacturing principles and practices, Ford is
is only used for human consumption.
can be seen at Ford facilities around improving efficiency, profitability,
the world: At Michigan’s Livonia The Essex Engine Plant in Ontario, and sustainability. It’s good for our
Transmission Plant, the plastic Canada, recently realized its goal business and good for the planet.
straps that are used to hold down of sending zero waste to landfills,
transmissions in shipping are sent helping all Ford’s Canadian sites
back to the manufacturer to be operate as zero-waste-to-landfill
remolded and reused. facilities.
Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices
80
Overview — Climate Change — Circular Economy and End of Life — Air, Water, and Soil Pollution — Water Resources — Biodiversity and Ecosystems
Reducing emissions will reduce Water and soil pollution are issues that Ford takes Plant Emission Reductions
Aspirational Goals seriously and have determined them to be material ESRS E2-2
air pollution, help protect people’s
. Q~ D
topics for the first time after updating our materiality Ford reduces pollution from our manufacturing facilities
health, and avoid the worst impacts assessment to more closely align with the CSRD by using best available techniques as required by
of climate change. double materiality process. These topics will be regulations. This includes re-evaluating technology and
Air reviewed carefully throughout the 2024 year in order upgrading controls as necessary.
Air, Water, and Soil Pollution Policies
to report against them in more detail in our 2025
ESRS E2-1 However, we go beyond simply meeting regulatory
Salient Human Rights Issues Integrated Report.
We have set a sustainability aspirational goal to attain requirements by developing and tracking of plant-specific
zero air emissions from our vehicles and facilities. Vehicle Emissions volatile organic compounds (VOC) targets. In order to
ESRS E2-2 support each Ford plant’s VOC reduction target, we use
Our We Are Committed to Protecting Human Rights and
An increasing number of countries and states have a data-driven quality strategy dashboard which tracks
the Environment policy mandates that we work to reduce
Environment announced requirements for 100% zero-emission VOC emissions and identifies opportunities for reduction.
emissions. Global emission standards have led to lower
vehicle (ZEV) sales. As part of best practices and strategic improvements,
vehicle emissions and improved air quality.
UN Sustainable Development Goals plants have follow-ups based on their progress and
We expect that all new vehicle sales in the EU will
This policy also requires us to follow Ford procedures review VOC data as a team.
be zero-emissions vehicles by 2035, per EU mandates.
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Already Compliant • EPA Tier 3 standards • Euro 6e real driving • National stage-6a (China 6a) LDV and HDV • Argentina and Uruguay: Euro 5 • Middle East: Standards based on Euro 2, Euro 3,
or Surpassing • California’s LEV III emission (RDE) emissions standards nationwide • Australia: Euro 5 Euro 4, Euro 5, and Euro 6
standards • National stage-6b (China 6b) LDV emissions • Brazil: L7 PROCONVE L7 + OBDBr3 +RDE Monitoring • New Zealand: Euro 6b; U.S. Tier 3
standards in five cities and provinces • Peru: Euro 4; U.S. Tier 2
• Cambodia: Euro 4
• Chile: Euro 6b or U.S. Tier 3 Bin 125 • South Africa: Euro 2
• Colombia: Euro 6b or U.S. Tier 3 Bin 125 (diesel), • Taiwan: Euro 6.2; U.S. Tier 2 Bin 5
Euro 4 (Gasoline) • Thailand: Euro 5b
• Costa Rica: Euro 4; U.S. Tier 2
Being Phased In • California’s Advanced • Euro 7 • National stage-6b (China 6b) LDV and HDV • Australia: Euro 6d • Costa Rica: Euro 6.1 or U.S. Tier 3
Clean Cars II emissions standards nationwide • Brazil: PROCONVE L8 Fleet Average Emissions + • Colombia: Euro 6c or U.S. Tier 3 Bin 70 (diesel)
OBDBr3 + RDE Compliance • Peru: Euro 6b or U.S. Tier 3 Bin 125
• Cambodia: Euro 5 • South Africa: Euro 5
• Chile: Euro 6c or U.S. Tier 3 Bin 70 • Thailand: Euro 6b
Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices
82
Overview — Climate Change — Circular Economy and End of Life — Air, Water, and Soil Pollution — Water Resources — Biodiversity and Ecosystems
Water Resources
Ford was one of the first companies Our We Are Committed to Protecting Human Rights and At a minimum, all our manufacturing sites obtain water
Aspirational Goals the Environment policy calls on us to reduce freshwater discharge permits and perform some level of process
to publicly make water stewardship
usage and support safe and accessible drinking water water treatment prior to discharge. In the absence of
a core sustainability priority, and in our manufacturing operations and communities. a government-imposed discharge limit, we have
that commitment has never been established a minimum treatment level for our process
Our global manufacturing water strategy aims to continue
Water
more important. our position as a leader in making zero water withdrawals
water to meet prior to discharge. Additionally, the latest
iteration of our global manufacturing water strategy calls
Water Policies for manufacturing processes in order to support
on us to improve discharge quality with an emphasis on
Salient Human Rights Issues ESRS E3-1 freshwater availability in local communities. All of our
direct dischargers.
We have set the sustainability aspirational goals to make manufacturing sites are included in our water strategy.
zero water withdrawals for manufacturing processes and All our manufacturing sites have emergency response
We consider freshwater to include both surface water
use freshwater only for human consumption. plans that include both methods to prevent releases, as
and groundwater. This is aligned with, and extends
well as actions to take in the unlikely event of a release
Environment beyond, the Global Reporting Initiative definition of
in order to minimize any environmental impact.
freshwater as surface water.
UN Sustainable Development Goals
Reuse/
recycle
Water Resources
— continued
Our Approach and Corporate Responsibility requires Ford to provide a Responsibility requires Ford to work constructively Recognition
ESRS E3-2 safe and healthy work environment for all employees. with local communities, including implementation of Ford has been recognized with an A rating in water
By integrating more water efficient processes and sustainable water strategies. security by the Carbon Disclosure Project (CDP), a
Investors are included because they are crucial to Ford’s
technologies in our manufacturing systems we can leading global environmental non-profit with the
economic health since Ford is a publicly traded company. Lastly, suppliers are considered a key component of
further decrease our water consumption. We strive to largest environmental database in the world, in a report
Ford remains engaged with investors through various our business, which is why Ford engages strategically
identify alternative water sources at all facilities, but highlighting current water risks and future water-related
forums and events to communicate our commitment to with suppliers based on the level of risk determined by
especially those that are located in water scarce regions. financial opportunities for businesses. The report
environmental sustainability (water, climate, waste) and a combination of factors including 1) water use intensity
We are committed to extraction policies and practices that to better understand their concerns. based on commodities, 2) the geographical footprint highlights our water saving innovations in our
ensure our operations don’t restrict other users’ access to of suppliers’ operations and 3) suppliers’ business manufacturing facilities around the world as real-world
Local communities are included because Our Code of business success stories. This was Ford’s ninth year in
water. For example, we make efforts to utilize alternative relationship with Ford.
Human Rights, Basic Working Conditions, and Corporate a row receiving the CDP Water A rating.
water sources, like rainwater and wastewater from other
organizations, for our manufacturing processes.
To perform the extensive analysis of our direct Efficiencies Recycling/ Alternative Freshwater for Reduction in Elimination of Water Clean Water for All
Water Reuse Water Source Domestic Use Only Alternative for Manufacturing (Positive Impact)
operations and value chain risk, we utilize a combination Water Source Processes
of tools, water regulatory frameworks, and the status of
ecosystems and habitats in order to fully evaluate risk,
identify water-stressed areas, and understand regional
ecosystem limits and demands. vEvERSION 1
Water Resources
— continued
19.4%
Actions and Resources Metrics and Targets
ESRS E3-2 ESRS E3-3
Achieving Zero Freshwater for Manufacturing The third iteration of our 2025 Global Manufacturing
In 2022, the Irapuato Transmission Plant was the Water Strategy continues to target a 15% reduction
second Ford facility to achieve the zero freshwater in absolute freshwater usage from a 2019 base year.
reduction in annual water usage from 2019
for manufacturing goal, joining the Chihuahua Engine base year
We prioritize sites located in water-stressed areas,
facility. In 2023, our use of alternative water was 9%
especially when seeking alternative sources of water.
in the water scarce areas.
These efforts will continue our leadership position in
75.5%
In addition to improving water quality discharges at water conservation worldwide, as well as demonstrate
our sites, we are applying freshwater reduction methods how we can provide a positive environmental impact
at our sites that mimic the behavior and performance on our surrounding communities.
of the local ecosystem.
Ecological thresholds have not been considered or
Water Recycling evaluated. Our targets are not based on legislation. reduction in annual water usage since 2000,
accounting for 199 billion gallons of water
Our Louisville Assembly Plant was recognized by the EPA
Tracking Our Performance
in 2021 for its leadership and commitment to practices
ESRS E3-4
that reduce, eliminate, or prevent pollution at its source,
In 2023, we reduced our use of our absolute freshwater
specifically for a new water recycling initiative. Louisville
by 19.4% from a 2019 base year. While lower production
is one of 12 Ford plants utilizing an End-Of-Pipe water
volumes played a role in that reduction, we still
reuse system.
improved our water use efficiency and made great
Clean Water for All progress in implementing water reduction projects that
We have expanded our water focus to include the will contribute to sustained water savings.
quality of water that leaves our site, prioritizing direct
Since 2000, we have achieved a 75.5% reduction in
discharges to local streams and rivers. In order to
annual water use, accounting for 199 billion cumulative
support this effort, we have added a new aspirational
gallons of water. Through integrating more water
principle: Clean Water for All. Elements of this principle
efficient processes and technologies in our
include not taking a precious resource, putting water
manufacturing systems to further decrease our water
back cleaner than we received it, and utilizing water
consumption, our water conservation actions are equal
management solutions that are beneficial to both the
to providing a year’s worth of water to 1.8 million homes.
ecosystem and the community.
Biodiversity plays a crucial role in Ford Wildlife Foundation and Bronco Wild Fund
Salient Human Rights Issues We are committed to developing solutions to preserve
limiting climate change. Ecosystems
biodiversity and restore ecosystems across our facilities
and the biodiversity they contain
and the surrounding communities through programs like
absorb around half of greenhouse the Ford Wildlife Foundation (FWF) and the Bronco Wild
gas emissions, according to the UN. Fund (BWF).
Environment
Yet, climate change is contributing The FWF is making important contributions to
UN Sustainable Development Goals to biodiversity’s decline as it alters biodiversity, environmental conservation, and awareness
ecosystems around the globe. through its support of leading conservation organizations
12 RESPONSIBLE CONSUMPTION AND PRODUCTION
Measurements of an ecosystem can include carbon Ecosystem Preservation in Michigan Since the Bronco Wild Fund’s inception in 2020, Ford has
capture rates, water infiltration volume, biodiversity We are building the country’s first automaker-backed dedicated more than $6.4 million to the program to
support, soil generation, etc. lithium iron phosphate battery plant, called BlueOval support the outdoors; an additional $4.7 million has been
Battery Park Michigan. matched or unlocked by Bronco Wild Fund contributions.
Biodiversity Preservation at Cologne EV Center In 2023, Ford dedicated more than $2.3 million in support
In 2023 Ford opened the Cologne Electric Vehicle (EV) We have ensured that 245 acres on the southern portion of 123 outdoor access, preservation, and stewardship
Center, where the production of the European all-electric of the site along the banks of the Kalamazoo River are projects in 40 states and the District of Columbia. Ford’s
Ford Explorer will start in 2024. The technological being placed into a conservation easement. This property investment unlocked over $1.3 million in additional funds.
upgrade of the Ford Cologne EV Center in 2023 was will be preserved for generations to come and protected
against future industrial development. The Ford Fund, Supply Chain Biodiversity
accompanied by an ecological improvement of
biodiversity and the ecological balance of the existing Ford’s charitable arm, has provided resources for Calhoun We expect our suppliers to preserve biodiversity as well.
factory greenspace. The outdoor areas of many of our County to engage with the community to explore how Looking ahead, in Europe we are preparing for upcoming
company premises, including the Cologne EV Center, the public can best access and utilize this space. Current EU regulations on deforestation and forest degradation-
offer potential for protecting biodiversity. plans are that Calhoun County will own and manage the free supply chains.
conservation easement.
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Overview — Human Rights — Product Safety and Quality — Human Capital and DEI — Employee Health and Safety — Customer Experience — Community Engagement
Social
In this section:
87 — Social Overview
88 — Human Rights
99 — Product Safety and Quality
104 — Human Capital Management
and Diversity, Equity, and Inclusion
110 — Employee Health and Safety
113 — Customer Experience and
Responsible Marketing
116 — Socioeconomic Contribution
and Community Engagement
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87
Overview — Human Rights — Product Safety and Quality — Human Capital and DEI — Employee Health and Safety — Customer Experience — Community Engagement
Social
Overview
Sustainability has always meant much more to us than minimizing
Our Sustainability Aspirations UN Sustainable Development Goals
our carbon footprint. As we work toward a climate-resilient future,
Human Rights: Source only raw materials We are contributing to the following UN
we are committed to protecting human rights and advancing diversity, Sustainable Development Goals through actions
that are responsibly produced
equity, and inclusion in our workforce — and in the communities outlined in this chapter:
we serve across the world. As we continue our work toward gender Safety: Work toward a future that is free
and racial equality and protecting the rights of all people, we rely ll ll ll ll
on frequent assessments and transparent communication to ensure
from vehicle crashes and workplace injuries
ll
we remain on the right path. Diversity, Equity, and Inclusion: Support
a diverse, equitable, and inclusive
workplace where each person is valued
ll ll ll ll ll
We Are Focused on Protecting and We understand that our differences and
Respecting Human Rights uniqueness help make us stronger and more
We are committed to respecting human innovative. Our culture of inclusion empowers
rights within our company, across our value our people to transform our business.
chain, regions, and suppliers. We ensure that We Support a Just Transition
everything we do — or that others do for us
We are helping to prepare our workforce and
— is produced lawfully and with respect for
local communities for the transition to EVs.
human rights.
We are committed to providing employees
We Prioritize Health and Safety with the opportunity to upskill and reskill
The health, safety, and wellbeing of our with supportive training programs.
employees, our customers, and our We Are Passionate About Partnering
communities is a top priority for Ford. with Communities
Our policies and our products are designed
The Ford Motor Company Fund and Ford
to advance our safety culture.
Community Relations team partners with
We Are Dedicated to Creating a Culture community leaders and nonprofits to help
of inclusion meet the unique needs of under-resourced
We treat our workforce fairly, humanely, and underrepresented communities.
and with respect and dignity.
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Overview — Human Rights — Product Safety and Quality — Human Capital and DEI — Employee Health and Safety — Customer Experience — Community Engagement
Human Rights
Our commitment to respecting human Rights Progress Report under “Previous Sustainability Our Vice President, Chief Sustainability, Environment,
Aspirational Goals and Financial Reports” on our sustainability website. and Safety Officer is responsible for interpreting and
rights is a company-wide endeavor that
implementing our We Are Committed to Protecting
guides our strategy and our actions. Read More
Human Rights and the Environment policy, managing
We are committed to respecting human rights across On our sustainability website risk, and reviewing with, as appropriate, the Vice
our company, our supply chain, and the regions in President Global Manufacturing and Labor Affairs, Vice
Our Human Rights Policy
Human Rights
which we operate. We respect human rights in all our ESRS S1-1, ESRS S2-1 President Global Commodity Purchasing, Chief People
activities and seek to address concerns that may arise and Employee Experience Officer, and the Chief Policy
Salient Human Rights Issues We have set a sustainability aspirational goal to source
on a timely basis. Officer and General Counsel.
only raw materials that are responsibly produced.
In 2023, we conducted our third formal salient human Human Rights Policy Updates
We are guided by our We Are Committed to Protecting
rights assessment, which identified and prioritized the We have updated our We Are Committed to Protecting
Human Rights and the Environment policy. Prohibiting
following potential high-risk human rights areas within Human Rights and the Environment policy to formally
the use of child labor and forced or compulsory labor
Environment Fair work Forced labor EV Transition Health/Safety our operations and along our supply chain. These are reflect our commitment to respecting the United Nations
are among its mandates.
listed in alphabetical order. Declaration on the Rights of Indigenous Peoples.
We aspire to ensure that everything we do — or that others
• Clean, healthy, and sustainable environment We have also updated our previous alignment to the
do for us — is consistent with local law and our own
1998 International Labour Organization (ILO) declaration
• Fair and decent work commitment to human rights per our We Are Committed
on Fundamental Principles and Rights at Work to the
Harassment/ Indigenous to Protecting Human Rights and the Environment policy.
Discrimination Peoples
• Forced labor, child labor, and human trafficking 2022 version. This updated version includes the
In situations where non-compliance is confirmed, we
Occupational Safety and Health Convention (No. 155)
UN Sustainable Development Goals • Harassment and discrimination provide remedy as quickly as possible. We require our
and Promotional Framework for Occupational Safety
suppliers and expect our business partners to adopt and
• Health and safety and Health Convention (No. 187).
enforce similar policies.
ll ll ll ll
ll • Impacts of EV transition As mandated by our We Are Committed to Protecting
The policy now also states our adherence to the
Minamata Convention on Mercury, Stockholm Convention
• Rights of Indigenous Peoples Human Rights and the Environment policy, we follow all
of 23 May 2001 on Persistent Organic Pollutants, and the
Ford policies and comply with or exceed all applicable
ll ll ll ll ll Using these salient issues as a guide, we continue to
strengthen our policies on issues such as child labor,
laws and regulations, including all applicable due
Basel Convention on the Control of Transboundary
Movements of Hazardous Wastes and their Disposal.
diligence laws. We also strive to meet the spirit of these
forced labor, human trafficking, protecting the rights laws and regulations. Cost alone does not drive our Additional policies related to supporting a living wage,
of Indigenous People, addressing impacts of vehicle business decisions; we consider impacts on human rights not engaging in unlawful eviction, and the use of security
electrification, ensuring a safe and fair workplace, among other factors. We explicitly require our suppliers forces with proper supervision and due diligence were
and enabling efforts to achieve a cleaner planet. and expect partners and joint ventures to adopt and added in 2023.
enforce similar policies and extend them to their own
Read More In alignment with due diligence laws such as the German
supply chain.
In Our Saliency Assessment on p.22 Supply Chain Due Diligence Act, we issued the Policy
As part of our commitment to transparency, our Statement on Ford’s Human Rights Strategy, Policies and
For more information on past salient human rights We Are Committed to Protecting Human Rights and the Processes that further outlines our commitment to our
assessments and processes, you can view our previously Environment policy is posted on our corporate website due diligence efforts.
standalone 2022 Human Rights Report and 2023 Human along with our Code of Conduct.
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Overview — Human Rights — Product Safety and Quality — Human Capital and DEI — Employee Health and Safety — Customer Experience — Community Engagement
Human Rights
— continued
Human Rights Policy Commitments • Implementing due diligence processes to identify, Corporate Human Rights Risk Assessment
We support the UN Sustainable Development Goals and prevent, mitigate, and account for human rights Due diligence for our human rights risk In line with our corporate policy, Ford conducts human
are members of the UN Global Compact and incorporate impacts in our business and our supply chain assessments at our facilities rights risk assessments across our global manufacturing
their Ten Principles in our operations. We have also facilities using the Responsible Business Alliance (RBA)
• Providing remedial actions when needed
signed the UN CEO Water Mandate and an action pledge Online Self-Assessment Questionnaire (SAQ).
for the UN’s “International Year for the Elimination of
Child Labor.” Aligned with the UN Guiding Principles
on Business and Human Rights, we are committed to
respecting these widely accepted international human
• Communicating transparently with our stakeholders
about our processes and actions
Human Rights
— continued
Lead the Charge, which scores the world’s automakers identify and immediately address human rights issues The Supplier Code of Conduct is aligned with the the environment while enhancing requirements for
on their efforts to eliminate emissions, environmental in our supply chain. following international frameworks and charters mining and processing facilities.
harms, and human rights violations from their supply and industry guidance:
We offer training resources to help our suppliers build 2023 updates to the Supplier Code of Conduct include
chains, ranked Ford first overall on their Leaderboard.
their capacity to manage supply chain issues, and we • International Bill of Human Rights (The United Nations bolstering compliance with Ford’s prohibition of the use
We also received the highest human rights scores in
meet with our top suppliers individually to discuss Universal Declaration of Human Rights and its two of child labor in any form by adding age verification for
the industry for the second year in a row, thanks to our
specific sustainability topics on an annual basis. Covenants) 1948 suppliers to protect against child labor.
industry-leading Responsible Materials Sourcing Policy
and due diligence policies. Our Supplier Code of Conduct • International Labour Organization (ILO) Declaration on Ford has also added language around support for a
ESRS S2-1 Fundamental Principles and Rights at Work (2022), living wage to our Supplier Code of Conduct to include
Human Rights in Our Supply Chain
Since 2003, we have set human rights and environmental including ILO Convention No. 138 on Minimum Age and competitive compensation and benefits that meet or
ESRS S2-2
expectations and requirements for our suppliers and Convention No. 182 on the Worst Forms of Child Labour exceed legal requirements.
With more than 1,600 Tier 1 production suppliers and
updated them annually. In 2021, we established a formal
4,600 supplier sites providing vehicle parts composed • United Nations (UN) Guiding Principles on Business In addition, we have updated our Supplier Code of
Supplier Code of Conduct that applies requirements and
of nearly 1,000 different materials, our supply chain is and Human Rights (2011) Conduct to reflect the expectations we have of our
expectations related to:
vast and complex. To support our commitment to use suppliers to respect the rights of Indigenous Peoples
• Organisation for Economic Co-operation and
materials in our vehicles that are safe and sourced • Human rights in accordance with the United Nations Declaration on
Development (OECD) Guidelines for Multinational
responsibly and protect human rights, it’s important the Rights of Indigenous Peoples.
• The environment Enterprises (2011 Edition)
for us to understand where the materials come from.
When securing raw material, we require our suppliers
• Responsible material sourcing • OECD Guidance for Responsible Supply Chains of
Ford uses our purchasing power to enable responsible to pursue and obtain Free, Prior, and Informed Consent
Minerals from Conflict Affected and High-Risk Areas
sourcing, including EV battery raw materials, and better • Responsible and lawful business practices of indigenous communities prior to projects or activities
(2016 Edition)
protect impacted communities and the environment. that may affect their lands, resources, and rights.
• Third-party sustainability audits
• UN Global Compact
We utilize a variety of tools, including our Supplier Code 2023 updates also add requirements for suppliers
Our Supplier Code of Conduct addresses key human rights
of Conduct, to ensure that our commitment to respecting • UN Sustainable Development Goals shipping to Europe to achieve carbon neutrality for
and workplace issues commonly associated with modern
human rights everywhere we operate cascades Scope 1 and 2 emissions by 2035, ensuring measured
slavery, including but not limited to child labor, forced • UN CEO Water Mandate
throughout our supply chain. progress in meeting Ford’s ESG commitments.
labor, human trafficking, fair and equal wages, and
• UN Women’s Empowerment Principles
We place a heavy focus on Supply Chain Transparency freedom of association and collective bargaining rights. The Supplier Code of Conduct now also states our
to give us visibility into our supply chain and, when • UN Declaration on the Rights of Indigenous Peoples adherence to the Minamata Convention on Mercury,
Supplier Policy Commitments
necessary, launch an investigation to ensure suppliers Stockholm Convention of 23 May 2001 on Persistent
Our Supplier Code of Conduct specifically addresses and Ford also engages in the RBA and the Automotive
are meeting Ford’s environmental, social, and Organic Pollutants, and the Basel Convention on the
prohibits trafficking of human beings, child labor, and Industry Action Group Smelter Engagement Teams to
governance (ESG) expectations as outlined in our Control of Transboundary Movements of Hazardous
forced labor. While we explicitly require suppliers to encourage smelters/refiners to become compliant via
Supplier Code of Conduct. We also partner with other Wastes and their Disposal.
follow all applicable Ford policies and to comply with or conflict-free standard third-party audits.
businesses across sectors to learn from each other and
exceed all applicable current and impending laws and To ensure responsible sourcing of critical raw minerals,
share best practices. Updates to Supplier Code of Conduct
regulations, our Supplier Code of Conduct also aligns Ford requires suppliers to purchase from materials
In 2023, we further strengthened our Supplier Code
We continue to work closely with our suppliers and with with widely accepted international human rights processors that are certified through a third-party
of Conduct to reflect changing regulations and
third-party assurers such as the Initiative for Responsible frameworks and charters. Suppliers are obligated to responsible sourcing standard such as the Responsible
emerging issues and help protect workers, children,
Mining Assurance (IRMA), Responsible Minerals Initiative extend these requirements to their own supply chains. Minerals Initiative’s (RMI) Responsible Minerals Assurance
communities, the rights of Indigenous Peoples, and
(RMI), and Responsible Business Alliance (RBA), to Process (RMAP). Raw material suppliers are required to
Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices
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Overview — Human Rights — Product Safety and Quality — Human Capital and DEI — Employee Health and Safety — Customer Experience — Community Engagement
Human Rights
— continued
source from mines seeking certification via a mining Sourcing for Sustainability sourcing, after a grievance arises through our grievance is open and accessible for all stakeholders along Ford’s
assurance standard, such as the Standard for ESRS S2-4 mechanisms or in response to media reports or requests. supply chain. As noted earlier, an outline of the external
Responsible Mining from the Initiative for Responsible We launched the integration of sustainability metrics Third-party audits resulting in non-conformance can also grievance process is posted on our corporate website.
Mining Assurance (IRMA) or an agreed upon third-party into supplier sourcing decisions in 2022. The first trigger engagement. In 2023, we piloted conducting
Corrective action process and closure audits ensure
certified equivalent. These certifications are aligned metric launched, the Sustainability Self-Assessment supply chain audits prior to initial sourcing.
remedy in alignment with third-party guidance from
with OECD Supply Chain due diligence requirements. Questionnaire Rating, requests that suppliers complete
Grievance Mechanisms and Remedies organizations such as RBA, RCS, and others.
In addition, suppliers must disclose sub-tier and raw the Drive Sustainability Self-Assessment Questionnaire ESRS S2-3
material supply chain actors and locations that provide (SAQ) and share responses with Ford. In addition to the The SAQs request that suppliers have an effective
Per our Supplier Code of Conduct we require our
materials used in products supplied to Ford. SAQ Rating, the following metrics launched in 2023: grievance mechanism in place that seeks active feedback
suppliers to:
after the grievance process is closed and remedied.
Ford will regularly update the Supplier Code of Conduct to • Carbon Neutrality Target — provide a target that is
• Provide an operational-level grievance mechanism
reflect changes in regulations and stakeholder expectations. science-based and meets either Ford’s European 2035 Worker Voice App
accessible to all employees, suppliers, and the public
or global 2050 carbon neutrality goal Supply chain workers can use the Responsible Business
Our Responsible Materials Sourcing Policy
• Transparently inform stakeholders on their grievance Alliance (RBA) Worker Voice Platform to provide feedback,
Our Responsible Materials Sourcing Policy covers conflict • Sustainability Score — based on supplier compliance
mechanism, including how to access and use share grievances, and develop skills. The app’s grievance
minerals, other minerals of concern, and environment, with sustainability reporting requirements
mechanism has been posted on our corporate website to
social and governance (ESG) risks in material supply • To bring the violation or adverse impact to an end;
If a supplier has an unacceptable sustainability finding, increase community members’ awareness of and access
chains, as well as mineral due diligence applicable to the provide appropriate remedies when non-compliance
the decision to source must be reviewed at the Global to this tool.
supply chain. This policy was updated to align with the occurs
Commodity Director level and a corrective action plan
updates made to our Supplier Code of Conduct, including Ford was one of the first RBA member companies to
must be in place. • Not retaliate against anyone who makes a good faith
to reflect our commitment to the United Nations launch the new RBA Worker Voice Platform to our
report of a violation of policy or law
Declaration on the Rights of Indigenous Peoples and Drive Sustainability SAQ suppliers. We also leverage the RBA’s Worker Voice
ensure Free, Prior, and Informed Consent when securing Using the industry standard Drive Sustainability SAQ, • Report suspected wrongdoing and concerns — grievance mechanism to identify and work together
raw materials we analyze our suppliers’ policies to ensure they align including concerns about product safety — to Ford at with other RBA members to ensure suppliers meet our
with ours. Armed with this information, our sourcing SpeakUp@ford.com requirements for human rights and environment issues.
Global Framework Agreements
decisions now include results from the SAQ and
Our Supplier Code of Conduct states our commitment Ford may ask for confirmation of compliance with the The Worker Voice app is available to all our direct
suppliers’ willingness to work with us on compliance
to recognize and respect employees’ rights to freedom requirements of the Supplier Code of Conduct at any suppliers free of charge, and we actively encourage all
through our sourcing process.
of association and collective bargaining. We require our point in its relationship with a supplier, including suppliers to participate in the platform. We have also
suppliers to: In 2023, we continued to focus on growing our supplier before business is awarded. Any corrective action plans invited suppliers to training sessions covering the
SAQ completions and policy alignment with Ford’s required to demonstrate or rectify non-conformance importance of grievance mechanisms.
• Work with recognized employee representatives
Supplier Code of Conduct across our global supply base. to the Supplier Code of Conduct will be according to
to promote the interests of employees We have updated our external grievance mechanism
We migrated from SAQ 4.0 to SAQ 5.0 in 2023, moving a mutually agreed timeline and at no cost to Ford.
document information. The updates include:
• Not discriminate or retaliate against any employees, to a more comprehensive SAQ.
Ford will not tolerate any retaliation against its suppliers
including those participating in a trade union • More structured process flow
Supply Chain Engagement for bona fide reports of unethical or unlawful conduct
• Provide opportunities for employees and external ESRS S2-2 by our employees or representatives. Suppliers may also • Clearer explanation of process steps
stakeholders concerns to be heard, even where there Our efforts to ensure the protection of human rights utilize and transparently inform stakeholders of human
• Icon based instruction letter
is no representation by unions includes gaining input and perspective from supply chain rights and environment-related issues through Ford’s
workers. Supplier engagement typically happens post- External Grievances system. This grievance mechanism • Additional languages
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Human Rights
— continued
This document also outlines how issues are raised Enabled by the requirements of Germany’s Supply Audit Program Ford Supply Chain Application Purpose Type of Audit
and monitored, and describes the opportunity for Chain Due Diligence Act, we have strengthened our due
complainants to raise their hands if they experience diligence processes to identify, prevent, and mitigate Drive Sustainability Supplier All suppliers Evaluate suppliers’ policy Desktop
any negative impact based on their grievance submitted. risk at our suppliers. Assessment Questionnaire coverage of environmental, social,
Any retaliation resulting from a submitted complaint can (SAQ) and governance topics
Supplier Assessment Process
be reported through our grievance mechanism and will Responsible Business High-risk Tier 1 suppliers Evaluate suppliers’ labor, ethics, On-site
We are developing a risk assessment process to identify
be coordinated accordingly by a third party (RBA). Alliance Validated health and safety, environmental,
and drive action on highest risk suppliers first. We first
Supply Chain Due Diligence perform an abstract analysis based on country risk, Assessment Program and management systems
ESRS S2-2 industry risk, and dollars spent with each supplier site. (RBA VAP) practices
Ford works to identify and address potential human We also evaluate suppliers’ alignment with Ford’s Responsible Business Tier 1 suppliers with Evaluate specific list of allegations On-site
rights violations and environmental risks within our Supplier Code of Conduct utilizing the Drive Sustainability Alliance Specialty Validated alleged labor issues that have been made against a
business and supply chain. Self-Assessment Questionnaire (SAQ). Once the SAQs Assessment Program specific facility with high risk of
are received, we conduct a concrete risk analysis to (RBA SVAP) labor issues
The enactment of global legislation, including the
determine which suppliers will require an audit based
German Supply Chain Due Diligence Act and other due Responsible Supply Chain High-risk Tier 1 automotive Evaluate automotive suppliers On-site
on severity and likelihood. Third-party audits are then
diligence legislation, have further enhanced our due Initiative (RSCI) suppliers sustainability practices on social
conducted on high-risk Tier 1 suppliers and EV battery
diligence efforts. Our efforts, including assessing risk, compliance, occupational safety,
material sub-tier suppliers.
supply chain mapping, third-party validation of supplier and environmental protection
policies, and supplier audits, are critical to ensure our We identify material impacts on supply chain workers
Responsible Minerals Raw material processors Evaluate processors’ company- On-site
compliance. We are also considering environmental risks through third-party audits, grievance mechanisms, or via
Assurance Process (RMAP) level management processes for
that may lead to human rights violations. escalation to the buyers for the supplier. Our corrective
responsible mineral procurement
action process (CAP) monitors compliance and prevents
aligned with Organisation for
future risks. Closure audits take place after the corrective
Read More
Human Rights
— continued
Ford is a founding member of the Responsible Supply results of Corrective Action Plans, following a timeline Supply Chain Sustainability Training We are working diligently to ensure we are ethically
Chain Initiative (RSCI) launched by the German based on the priority of non-conformances reported. ESRS S2-2, ESRS S2-4 and responsibly sourcing and tracing the supply
Automotive Industry Association VDA (Verband der We invite suppliers located in countries and regions chains and the raw materials that move through them.
In 2023, we conducted a total of 46 initial sustainability
Automobilindustrie). The objective of the RSCI is to where there may be elevated risk to attend training We are making sourcing decisions that align with our
responsibility audits of our high-risk Tier 1 suppliers
develop a standardized assessment for evaluating the to increase awareness of Ford’s requirements and legal sustainability standards and corporate sustainability
using RBA’s Validated Assessment Program (VAP) and
sustainability of companies in automotive supply chains, obligations, including those related to forced labor commitments.
using RSCI’s protocol. We also conducted 35 RBA and
including measures like working conditions, occupational and child labor. We reached over 800 external suppliers
RSCI closure audits of our suppliers. Mineral Due Diligence
safety, and environmental protection. In addition, it has to provide training and education in 2023. ESRS S2-2
developed an industry standard audit which is aligned Remediation of Audit Findings
Our Ford supply chain teams are the first line of Since 2013, in compliance with the U.S. Dodd Frank Act,
with the German Supply Chain Due Diligence Act ESRS S2-3
investigation into our suppliers. To increase their section 1502, we have filed an annual Conflict Minerals
requirements as well as upcoming legislation such as We rely on cross-industry standard approaches and third-
understanding of sustainability issues, we launched Disclosure report with the U.S. Securities and Exchange
the EU Directive on corporate sustainability due diligence. party corrective actions to respond to actual or potential
training modules in 2022 directed toward all of Ford’s Commission (SEC). The report describes our due diligence
We piloted the RSCI audit in 2022 and expanded our use negative impacts on supply chain workers. Third-party
global supply chain employees. process, as defined by the OECD Due Diligence Guidance
with automotive suppliers in 2023. corrective actions and certifications from RBA and RSCI
to ensure suppliers who provide us with components
are based on international standards and implemented In 2023, 400 global supply chain staff received live
Together, the RBA Validated Assessment Program and containing tin, tungsten, tantalum, and gold (3TG)
in collaboration with the non-compliant supplier. We also online training on our Supply Chain Sustainability
RSCI audit represent a collaborative approach to auditing understand the origins of such minerals, source them
leverage training developed with industry partners programs. We continue to reach our global supply chain
that reduces the burden on suppliers from multiple responsibly, and not knowingly provide parts containing
through the Automotive Industry Action Group, Drive teams and provide education in commodity team training
requests for sustainability audits. Third-party minerals that contribute to conflict. Suppliers are
Sustainability, RMI, and RBA. sessions throughout the year.
sustainability audits let suppliers know whether they required to use smelters and refiners that have been
meet their contractual obligations to Ford and our We encourage our suppliers to use third-party ESG Responsible Sourcing of Raw Materials validated as conforming to an independent third-party
expectations while highlighting areas for improvement. certifications. Corrective action plans and sourcing holds ESRS S2-4 responsible mineral sourcing validation program.
enforce remedial actions taken by suppliers and mitigate Ford uses our purchasing power to not only fuel our
Both the RBA VAP and RSCI assessments are conducted We continue to enhance our Responsible Materials
risk in our supply chain. business needs but also protect communities and the
through independent third-party audit firms that are Sourcing program by expanding the scope of our due
accredited by the RBA. Audits include worker interviews environment on which they depend. Our goal is to
Suppliers work with region leads based on the results of diligence to include additional industry-relevant
and can be either announced or unannounced. Audits understand the origins of our raw materials and ensure
an SAQ or an RBA Validated Audit. Corrective action plans materials and mineral provenance from Conflict Affected
can also include private in-person interviews with they are sourced responsibly, upholding our commitment
are put into place to remediate issues and mitigate any and High Risk Areas beyond the Democratic Republic of
employees at the site, as required by the Ford Supplier to human rights, compliance with international
gaps between supplier policy and Ford’s Supplier Code the Congo and adjoining countries. Ford has conducted
Code of Conduct. standards, and minimizing environmental and
of Conduct. After the corrective action is complete, a a formal due diligence process39 on cobalt since 2018;
community impact.
closure audit ensures that the corrective actions have mica due diligence since 2019, which was formalized in
Audit results are used to identify and prioritize needed
been effective. It is imperative that we have sufficient raw materials to 2020; and launched formal due diligence on lithium and
improvements at the facility level. Each supplier who has a
achieve our goals for electric vehicles. To do so, we are nickel in 2022.
negative finding through the audit is expected to develop a When specific risks are identified in the supply chain,
Corrective Action Plan detailing causes and provide planned working to identify and negotiate with raw material
processes are in place to identify the suppliers and We use data collected through Responsible Minerals
remediation actions to address identified areas of concern suppliers to secure materials that meet our ESG
assign them training. Initiative (RMI) reporting templates to engage processors
and take measures to correct non-conformances. For more requirements. We have implemented processes and
to undergo RMI’s Responsible Material Assurance Process
serious priority non-conformances, we review and monitor structural changes to enable fast action.
(RMAP) and their new ESG assessment.
immediate containment plans and longer-term Corrective
Action Plans. Closure audits are scheduled to assess the
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120
like recycled denim and rice
husks in our trucks, we are driven
to improve our sustainability
over time.
Years of Ford’s commitment
But what about all the things in our to a responsible and
vehicles that others make for us? sustainable supply chain
Human Rights
— continued
Initiative for Responsible Mining Assurance due diligence requirements. Capacity building will also Our collaboration with RCS Global is strengthening our
ESRS S2-4 help mining communities meaningfully participate in responsible sourcing capacity and driving continual Addressing Child Labor Through Economic
We are proud to be the first U.S. automaker to join the global supply chains. improvements in transparency and responsibility in our Opportunities for Women
Initiative for Responsible Mining Assurance (IRMA), which raw material supply chains. We also provide our suppliers Ford is addressing one of the root causes of child
In 2023, this effort led to tangible risk management
works to advance responsible mining practices through with the tools and training to support their continual labor through a program that provides economic
improvements, including the establishment of an
third-party verification and community engagement. improvement. Suppliers who do not meet Ford standards opportunities for women in the Democratic Republic
accessible grievance mechanism for the ASM sites
IRMA ensures a high level of community engagement, are required to demonstrate improvement under a of the Congo (DRC). The Ford Fund is working with
being monitored, the prevention of incidents of child
including utilizing Free, Prior, and Informed Consent Corrective Action Plan that is closely monitored by Ford. the Oil and Mines Governance Center (OMGC), to
labor and work by individuals without adequate personal
where mines impact Indigenous Peoples’ land, resources, implement a program that aims to break down
protective equipment, as well as the improvement of Mapping Ford Battery Supply Chains to the Mine Site
and way of life. In order to claim an IRMA Achievement barriers that prevent women in the DRC from
work and safety conditions on mine sites.
Level, a mine site must meet 40 critical requirements Supplier Number of Country of Operation equitably accessing opportunities that cobalt demand
and have corrective action plans to indicate how they Battery Mapping Type Identified provides. The project’s goal is to improve the working
will fully meet the requirements within a specific time ESRS S2-4
Suppliers conditions of these women, increase their incomes,
period. These critical requirements relate to the principle In 2021, we initiated supply chain mapping and auditing support the stability of their households, and reduce
Battery 5 China, Poland, Korea, USA
areas of business integrity, planning and managing with RCS Global Group to deliver a multi-commodity the presence of children in mining.
for positive legacies, social responsibility, and responsible sourcing audit program to understand the Cathode 5 China, Korea
Launched in 2021, the project is continuing to
environmental responsibility. sources of the cobalt, nickel, and lithium used in our EVs.
Electrolyte 1 China progress by providing equipment, safety training,
RCS Global Group, a recognized leader in data-driven ESG
We are also encouraging use of the IRMA self-assessment access to banking services, and additional financial
performance and auditing, conducts independent audits Manufacturer 9 China
tool for mining companies to proactively understand education for members of co-ops and other women.
using OECD Due Diligence Management Systems down
gaps to the IRMA standard. The tool also provides Traders 41 China, Korea, Luxembourg, The OMGC exceeded their training goal for 2023 by
to the mine site.
guidance for implementation. Mining companies can Netherlands, Singapore, training and empowering 210 women to operate in
share the self-assessment results so key stakeholders Since then, the scope of this project has expanded to Switzerland, United Arab compliance with OECD and CGE (Entreprise Générale
like Ford can better understand risks and areas of include plug-in hybrid electric (PHEV) supply chains, Emirates de Cobalt) standards regarding labor, corruption,
improvement. The IRMA self-assessment can also serve graphite and electrolyte battery material audits. In 2023, Refiner 34 Chile, China, DRC, Finland, and environmental protection. Additionally, more than
as an important tool to discuss best practices on we piloted conducting supply chain audits prior to initial Korea, Sweden 100 women received financial training, and 50 women
responsible mining. Mining companies are also sourcing. To date, the project has conducted 43 supplier were assisted in opening banking facilities.
encouraged to provide feedback to IRMA to help improve audits along five select battery supply chains at all tiers Treatment 14 Australia, Chile, DRC,
Unit Finland, Indonesia, Russia, With the support of Ford Fund and OMGC, the
engagement and adoption of the mining standard. through to the mine site. These initial audits have led
Turkey women’s cooperatives also made significant progress
to the identification and mapping of 151 suppliers and
Better Mining in 2023 to legitimize their operations and secure their
identified mine sites in Australia, Chile, China, the Large Scale 18 Australia, Chile, China,
ESRS S2-4 long-term rights to mine in this region.
Democratic Republic of the Congo, Finland, Indonesia, Mine (LSM) DRC, Finland, Indonesia,
Ford supports Better Mining, an on-the-ground program
Russia, and Turkey. No critical risks, including child labor, Russia, Turkey Fund has extended our support into 2024. With the
to proactively identify risks and improve conditions in
were identified during the audits. help of OMGC, women working in the Kapata, Tshipuku,
nine artisanal and small-scale (ASM) cobalt mine sites Integrated TU 13 Australia, Chile, DRC,
and Biwaya artisanal cobalt sites will continue to
in the Democratic Republic of the Congo (DRC). In early 2023, the Supply Chain Sustainability team and LSM Turkey
benefit from training in entrepreneurship, financial
underwent a responsible sourcing audit of our nickel,
This program contributes to building the capacity of legal Other40 11 China literacy, and new regulations for artisanal and small-
lithium, and cobalt OECD due diligence management
ASM cooperatives and sector, supporting state services to Total 151 scale mining.
systems and will continue to work to close gaps identified.
help achieve responsible practices in the sector and meet
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— continued
Supply Chain Transparency CATENA-X Leverages Data to Increase Supply As a member of the Responsible Business Alliance (RBA), Direct Sourcing of EV Battery Raw Materials
Supply chain transparency and human rights protection Chain Transparency we engage in cross-industry dialogue and standard As we transition to electric vehicles, we are building
go hand in hand. By improving our visibility into our Our involvement in the Catena-X Automotive Network setting on issues related to human rights in our an EV supply chain that upholds our ESG commitments,
supply chain, we are enabling better business practices continues to evolve. Developed to support compliance operations and supply chain and responsible materials in alignment with our We Are Committed to Protecting
and supply chain resiliency, starting from raw materials with the EU Battery Regulation, this initiative will sourcing. In addition to being the first OEM to join the Human Rights and the Environment policy and our
and their responsible sourcing. Not only does this help increase the transparency of our supply chain, enabling RBA in 2016, Ford has maintained membership Supplier Code of Conduct.
us identify and address human rights risks, it also us to improve sustainability and create efficiencies across participation as members of the RBA Board of Directors,
including chair from 2020-2023. We recognize that some of the EV components include
positions us to comply with due diligence legislation. the automotive supply chain through continuous data
minerals with inherent risk due to extraction processes
exchange between partners. Our involvement with Our membership in the Initiative for Responsible
When potential supplier issues are identified anywhere and country locations. Transparency and traceability are
Catena-X will help the company improve sustainability, Mining Assurance (IRMA) and promoting the use of
in our supply chain, we initiate an investigation to the keys to a more sustainable and accountable mineral
ensure human rights standards are followed, and make comprehensive, third-party assessments of mining
determine whether the supplier is in the supply chain supply chain. As we work to discover and audit our
supply chains even more transparent. practices helps us achieve our responsible sourcing
providing parts to Ford. If confirmed, we then work with current supply chains, we are preparing for our future
our Tier 1 supplier to cascade our requirements and In 2023, we joined the Cofinity-X Beta Phase project. goals. When we became the first U.S. automaker to along the entire EV battery supply chains (see graphic)
confirm compliance with our Supplier Code of Conduct. Cofinity-X is enabling the largest collaborative and open join IRMA in 2021, we strengthened our human rights to obtain transparency and strong commitments to
We are currently developing internal systems to conduct data network of partners in the automotive ecosystem aspiration to responsibly source all raw materials used sustainability issues, throughout the sourcing process.
these investigations proactively with suppliers in our for value creation and sustainability across our supply within vehicles globally.
highest risk categories. chain while striving to be compliant with Catena-X.
To align with forced labor and due diligence legislation, Adhering to Catena-X principles, Cofinity-X operates an
we have updated our Supplier Code of Conduct and open dataspace of distributed, sovereign data sources.
contractual obligations to require suppliers to share This dataspace creates a trusted environment for all its
sub-tier supply chain information upon request. We have participants to enable the development and deployment
Raw Material Battery Cell/Pack
utilized these updates to conduct supply chain audits for of value-generating and digital use cases, from and for Processing Production
EV batteries, Value Stream Mapping, and traceability data. its participants across the automotive supply chain.
A new online tool allows suppliers to input their value
Through Cofinity-X, we have identified the application
stream mapping data and post documentation of evidence.
partner and have identified five partners for a Product
Battery Passport Carbon Footprint (PCF) study. These actions act as the
Upon the passing of the EU Battery Regulation in 2023, foundational steps that will launch our ability to collect
Ford began developing a strategy to comply with the data within the implemented technical environment
new requirements for our Battery Electric and Hybrid along our supply chain up to Tier-N.
vehicles. As part of this process, we consulted cross Supply Chain Partnerships
departmental and external stakeholders, identified and
Mounting requirements and transparency around supply
vetted IT solution vendors, and organized a task force Mining Cell Component EV Production
chain are providing opportunities to work across industries
to ensure our company is prepared for the upcoming
to increase supply chain transparency and support human
Production
reporting requirements for carbon footprint, durability
rights. We partner with other businesses, organizations,
and state of health, due diligence, recycling, and
and coalitions that have the same standards and
electronic exchange system.
commitments to a sustainable future as we do.
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— continued
Many global EV battery material suppliers are located are identified, we are adding mitigating actions into our IRMA has developed 40 critical requirements, including We are working towards including specific ESG terms
in high-risk countries and countries with developing supply contracts. one focusing on the rights of Indigenous Peoples. This in the agreements that align with Ford’s Supplier Code
economies that could include vulnerable populations. requires new mine sites to obtain FPIC of Indigenous of Conduct, including Ford audit rights and independent
We are requiring suppliers source raw mined materials
Our focus on human rights and the environment gives Peoples and existing mines to have obtained FPIC or third-party audits.
from suppliers committing to and/or certified by the
us the opportunity to raise the standards in the demonstrate operations that support positive relationships
Initiative for Responsible Mining Assurance (IRMA) EV Battery Material Due Diligence
communities in which our suppliers operate and ensure with affected Indigenous Peoples, including providing
or third-party certified equivalent. We also request ESRS S2-2
our purchasing power can create a positive impact remedies for past impacts on Indigenous Peoples’ rights
processing facilities to apply similar independent or Once procurement negotiations are completed, the
throughout the battery supply chain. and interests. Our requirement for mining suppliers to
third-party standards from RMI that include ESG audits ESG EV Battery Material Management Team is continuing
seek IRMA certification or third-party certified equivalent,
We are working with directly contracted suppliers and demonstrate their actions toward responsible to conduct risk assessments of our future raw material
furthers our commitment to respect Indigenous Peoples’
towards diversifying our supply chain. This will allow sourcing. As a way to address additional risks beyond suppliers to understand areas of highest risk. We are
rights. IRMA states that because of the requirement that
us to have a stronger impact as we secure minerals for the most severe human rights issues outlined in the working with suppliers and partners to understand
FPIC be free from external manipulation, coercion, and
our EVs more directly and gain transparency into our OECD Mineral Due Diligence guidance, we aim to assess transparency into raw material suppliers and requesting
intimidation, an FPIC process cannot be undertaken in
EV battery raw material supply chains. Working directly our mineral processors and mines to build robust ESG due diligence data from identified suppliers to support
situations where indigenous or tribal peoples are living
with suppliers heightens our ability to have a positive management systems. Finally, as we work toward alignment with Ford’s ESG expectations.
in voluntary isolation.
contribution on impacted mining communities. Contracts compliance with various current and upcoming global
securing raw material will require suppliers to engage due diligence laws, we require supply chain transparency In 2023, we secured future materials from one mine site We are also engaging with our partners and suppliers
with communities, including respecting Indigenous down to the mine. that is IRMA certified. to confirm alignment and actions that comply with our
Peoples’ rights, conducting due diligence, and monitoring Supplier Code of Conduct, and we are reviewing their
Indigenous Peoples’ Rights and Raw Materials Responsible Direct Sourcing ESG management systems to gain insight into their
during all phases of the sourcing process.
Aligned with our policies, when securing raw materials, Ford has sourced the majority of the lithium and nickel management and risk assessment processes. We are
We are working with suppliers to implement ESG suppliers will respect the rights of Indigenous Peoples needed to reach our EV capacity targets. building a tool to help manage ESG requirements and
management systems to strengthen performance and in accordance with the United Nations Declaration on adherence to the Supplier Code of Conduct throughout
We’ve announced lithium agreements with global
assess for risks that are monitored and remedied as the Rights of Indigenous Peoples (UNDRIP) and ensure the life of the contract.
suppliers, Albemarle, SQM, and Nemaska. While these
necessary in our partnerships, investments, and the Free, Prior, and Informed Consent (FPIC) of indigenous
global suppliers give our plan stability, we’re also directly We will continue to conduct due diligence on these
supply chain. communities is pursued and obtained prior to projects or
sourcing from US-based development projects, including suppliers, which could include on-site Ford assessments,
activities that may affect their lands, resources, or rights.
We are also working to align suppliers’ ESG performance, an agreement with Ioneer. where we will work with suppliers to prepare for third-
programs, and practices with international third-party UNDRIP “emphasizes the rights of Indigenous Peoples party audits. This allows us to monitor for preparedness
A three party collaboration will advance more sustainable
standards and best practices as well as Ford policies, to live in dignity, to maintain and strengthen their own and oversight in between third-party audits. Due
nickel production in Southwest Sulawesi, Indonesia and
including our Supplier Code of Conduct. institutions, cultures and traditions and to pursue their diligence activities could also include third-party audits
help make electric vehicle batteries more affordable.
self-determined development, in keeping with their own like IRMA or RMI and review of corrective action plan
Meeting ESG Standards The collaboration will deliver materials essential for the
needs and aspirations.” implementation.
We established a new ESG EV Battery Material auto industry’s shift to EVs and enhance Indonesia’s EV
Management team that focuses on managing ESG FPIC allows Indigenous Peoples “to give or withhold manufacturing industry while upholding our commitment Diversifying and directly sourcing various parts of the
requirements in our EV Battery material supply chain consent to a project that may affect them or their to responsibly source materials. supply chain allows us to ensure sources have stronger
down to the raw materials. Prior to any contracts, we are territories. Once they have given their consent, they can ESG throughout the supply chain. Even in cases where
Our investment into nickel also provides cobalt as a
conducting due diligence with SAQs, risk assessments withdraw it at any stage. Furthermore, FPIC enables them we are not directly sourcing, we will have transparency
by-product which diversifies our sources of cobalt
based on location and materials, and reviewing to negotiate the conditions under which the project will to know our supply chains and complete due diligence
beyond the Democratic Republic of the Congo.
company-specific ESG performance. When risk issues be designed, implemented, monitored and evaluated.” in advance and throughout the source of supply.
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Overview — Human Rights — Product Safety and Quality — Human Capital and DEI — Employee Health and Safety — Customer Experience — Community Engagement
Human Rights
— continued
Raw Material Sourcing: Lithium in Australia Additionally, the agreement includes other commitments
In 2023, we announced several lithium agreements to that are already being carried out by Albemarle, such as
secure our EV growth, diversify our supply chain, and robust community engagement, including with
ensure we are doing our part to create equitable and Indigenous Peoples, that allows for input as well as
sustainable mineral supply chains. As part of this information sharing on environmental impacts. Ford also
sourcing, we implemented a more robust ESG due recognizes the Greenbushes mine’s commitments to
diligence system focused on sourcing raw materials at enhancing water conservation, decarbonization through
the mine. Our due diligence focuses on potential further clean energy agreements, and promoting waste
company, country, and project ESG risks and is used to recycling and recovery practices.
inform and establish the ESG requirements in the supply As part of our commitment to ongoing due diligence and
agreements. ESG Management, Ford’s ESG EV Battery Material
One supply agreement secured lithium from Albemarle’s Management team will continue to review performance,
Kemerton refinery, and sources mined inputs from the and collaborate directly with Albemarle, including an
Talison Lithium managed Greenbushes mine (Australia, onsite assessment. We aim to ensure ESG management
49% owned by Albemarle). We completed risk in mineral supply chains and are commited to engaging
assessments that considered Albemarle’s public policies, with material suppliers, including working together to
history of risk mitigation and performance, and country improve industry practices and expand our learnings to
level risks. Contracts were written to consider sub-tier suppliers throughout our mineral supply chains.
appropriate ESG requirements to protect human rights, Our approach to addressing ESG risks proactively, and in
working conditions and the environment, all of which agreement with our suppliers, helps us meet our
were already reflected in Albemarle’s Code of Conduct aspiration to source only raw materials that are
and other policies and inherent in its Core Values. responsibly produced. We understand that ESG due
To address lithium mining risks, we included mitigating diligence, management, and oversight is required
actions in the agreement. Albemarle reaffirmed its regardless of where minerals are sourced, and we will
commitments such as maintaining an ESG management continue to work with our suppliers to improve and
system, complying with policies aligned with the Ford’s implement best practices that protect people,
We Are Committed to Protecting Human Rights and the communities, and our planet.
Environment policy and Supplier Code of Conduct, and
conducting an independent Initiative for Responsible
Mining Assurance (IRMA) audit verification at the mine
site source for the lithium products. Shortly after the
agreement with Ford was announced, Albemarle became
the first lithium producer to complete an independent
audit and have its audit report published by IRMA.
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Overview — Human Rights — Product Safety and Quality — Human Capital and DEI — Employee Health and Safety — Customer Experience — Community Engagement
For more than 100 years, we have • Implement and follow disciplined systems to experiences that contribute to a better world. We are
Aspirational Goals measure performance, enhance consistency, also expanding the use of connected vehicle data to
earned trust by designing and
and manage feedback identify potential emerging issues as well as to help
manufacturing safe, quality products us understand what customers may be experiencing.
• Take quality concerns seriously, whether from inside or
to meet the needs of people around
outside the company, and address them appropriately Managing material impacts, risks, and opportunities
the world. Our customers rely on our related to our customers is central to earning our
Safety Safety Governance Process
attention to quality and the strength customers’ trust. We use internal and external
To deliver our corporate strategy, we have established a
Salient Human Rights Issues of our brand depends on it. measurements of quality and brand promotion to help
cross-functional governance process to review upcoming us assess our performance and determine where
Product Safety and Quality Policies regulatory rule making, third-party evaluations and improvements are needed.
ESRS S4-1 ratings, competitive benchmarking, and new technology.
We have set the sustainability aspirational goal to These processes also ensure robust program execution. Externally, we use industry benchmarking data to
reduce vehicle crashes and workplace injuries. measure our quality success and give us the greatest
Health/Safety
Designing for Safety credibility with external stakeholders and audiences.
UN Sustainable Development Goals Corporate policies and dedicated personnel reinforce Ford has developed state-of-the-art analytical tools, Warranty repairs are a key metric to measure initial
our commitment to safety in our products and services methods, and computer simulations to complement quality. We also include measures of customer
and help ensure our products meet or exceed applicable our engineering analyses and full suite of crash testing, excitement to assess product quality.
laws and regulations. Our policies support a strategy to at the component, sub-systems, and full vehicle system
help ensure we design and develop safe vehicles and To mitigate or remediate negative impacts on consumers,
levels. By maximizing the benefits of Computer Aided
services for all users. Per our Code of Conduct, we we created a Field Service Action (FSA) Implementation
Engineering tools, we can help achieve cost-efficient,
actively evaluate quality and aim to deliver continuous Team that optimizes FSA execution and takes care of
weight-efficient, and high safety performance design.
improvement in the safe design of our products customers involved in FSAs more efficiently. This enhanced
We develop these tools and conduct crash and other
and services. coordination with cross-functional teams has improved
vehicle attribute evaluation tests at our sophisticated
timing for production and service parts availability so
As our Code of Conduct notes, we: sites in the U.S. and Europe, including the Virtual Test
customer vehicles can be updated quickly when an FSA
Track Experiment simulator at the Research and
• Design and manufacture safety into our products is required.
Innovation Center in Dearborn, Michigan.
and services, seeking to continuously advance safety Machine learning tools are used and continue to be
in the transportation operating system Ford does not use animals for testing nor do we ask
refined for expedited review of field reports to accelerate
or fund others to do that for us. We will continue to be
• Provide products and services that meet or exceed the detection of potential issues in the field. We utilize
leaders in creating, developing, and validating alternative
regulatory requirements Machine Learning and Artificial Intelligence, such as
methods to proving and providing product safety.
Large Language Models, to search and categorize field
• Promote safe and responsible consumer practices Managing Our Relationship with Customers reports, swiftly identifying potential issues from extensive
ESRS S4-2, ESRS S4-3 unstructured data without relying on predefined
• Take seriously any safety concerns or product
complaints, and address them appropriately Ensuring customer satisfaction is an important part of keywords. Leveraging natural language processing,
our safety efforts. We take a user-centered approach to we can identify similar issues regardless of how they are
• Prioritize quality in our products and services, customer satisfaction by actively innovating, reviewing described. By deploying AI for automated categorization
seeking continuous improvement customer feedback, and conducting competitive and pattern discovery, we aim to enhance efficiency,
benchmarking to deliver products and customer visibility, and ultimately field safety.
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To ensure that our actions are effective and deliver the For repairs that cannot be completed OTA, Ford has Europe: Euro NCAP Safety Features
intended outcomes for consumers, we have developed expanded Mobile Repair and Pick Up and Delivery • No vehicles received a star rating in 2023. U.S. Automatic Emergency Braking (AEB) Commitment
an integrated data management system that tracks options to make vehicle service and recall repairs Ford’s Automatic Emergency Brake (AEB) Pre-Collision
• Programs with valid published 5-star rating (and
investigations all the way through recall remedy easier and more convenient for customers to complete. Assist feature5 scans the road ahead and can alert drivers
available in Europe during 2023): Ford Mustang Mach-
implementation. In 2023, we further enhanced system to potential collisions with vehicles or pedestrians
Key Safety Metrics E, Fiesta, Focus, Kuga, Explorer, Tourneo Connect, and
functionality, with new data reports for early-stage directly in the driver’s path41. If the driver’s response is
Ford vehicles continue to achieve high marks and Ranger. These vehicles represent 64% of nameplates
investigations and integration of our problem reporting not sufficient, AEB will increase brake-assist sensitivity to
recognition in regulatory and New Car Assessment in EU market in 2023.
system and quality discipline analysis tools. provide full responsiveness when the driver does brake.
Programs (NCAP) crash testing assessments. The varying China: China NCAP
We can generate custom reports and metrics within If an impact becomes imminent and the driver does not
protocols and evaluation criteria of NCAPs and their fast- • Ford had two China NCAP 5-Star rated vehicles in 2023:
the tool to help track our progress on all fronts. And, take corrective action, brakes can apply automatically.
paced continuous updates to those criteria makes it Ford Equator Sport and Lincoln Zephyr. These vehicles
customers can view the status of any recalls on their increasingly difficult to achieve top ratings across all Ford committed to equip at least 95% of all new light-
join existing nameplates Edge, Everest, Explorer, Focus,
vehicles via the Ford website. Recall completion rates regions; however, many of our vehicles receive the top duty vehicles (under 8,500 pounds) with AEB in the U.S.
and Mondeo with valid published 5-sar ratings and
are tracked and reported to the National Highway Traffic 5-star safety ratings globally. We continue to place market by September 2023. Ford met that commitment
available in China during 2023.
Safety Administration (NHTSA) and other agencies. considerable emphasis on our performance in these two years early and continues to improve. For 2024
assessments. China: C-IASI (China Insurance Automotive Safety Index) model year, Pre-Collision Assist with AEB is offered as
Our product development process helps us avoid
• Ford Mondeo and Mach-E were awarded C-IASI Good standard on 98% of Ford and Lincoln cars, light duty
causing material negative impacts on consumers. 2023 Vehicle Safety Highlights Rating for all safety assessments in 2023. These join trucks5, and SUVs.
The process includes internal validation for requirements
United States: U.S. NCAP (NHTSA) the nameplates Focus, Escape, and Mach-E which are
to ensure our products meet or exceed applicable laws Ford is continuing our AEB commitment for vehicles
• For the 2023 model year, Ford Mustang, Escape, available in market and have previously achieved the
and regulations. in the 8,501 to 10,000-pound range, which requires
Edge, Expedition, Explorer, F-150, F-150 Lightning, C-IASI Good Rating.
Tracking our Performance Bronco Sport, and Lincoln Corsair, Aviator, and 95% AEB fitment by September of 2026. 78.03% of Ford
Australia & New Zealand ANCAP vehicles in this weight class have AEB standard as of
ESRS S4-3 Nautilus nameplates were rated with 5-star overall
• Mustang Mach-E Select and Premium models offered August 31, 2023. Ford will also be selling AEB equipped
In addition to meeting or exceeding applicable laws and vehicle scores.
in Australia were awarded 5-Star ratings in 2023. vehicles in Canada at similar levels.
regulations, we establish targets to achieve the desired
United States: Insurance Institute for These vehicles join existing nameplates Puma, Escape,
performance in third-party ratings testing. The timing Combating Heatstroke in Vehicles
Highway Safety (IIHS) Everest, Ranger with valid published 5-sar ratings and
is based on program cycle and publication of third-party Since 1998, at least 969 children have died from
• For the 2023 model year, Ford Explorer and Lincoln available in market in 2023.
testing protocols. Pediatric Vehicular Heatstroke in the United States42,
Nautilus received Awards.
Euro NCAP Commercial Van Rating including cases where children were forgotten in the
We measure the time to issue resolution with a “shot
• The Mustang Mach-E, Ford Explorer, and Lincoln • Ford received van ratings for Transit (Gold) and Transit vehicle, knowingly left, gained access on their own,
clock,” leveraging Quality Early Detection and using
Aviator earned overall “good” ratings after successfully Courier (Platinum). The Courier rating is the only or were trapped.
Connected Vehicle Data to identify potential issues
completing updated front moderate overlap crash Platinum rating awarded this year and also the highest
quickly. For example, updating vehicle software via Ford’s Rear Occupant Alert System gives an “in-vehicle”
testing. ever score achieved.
over- the-air update technology (OTA) allows for faster audible and visual warning that alerts the driver to
issue resolution without requiring a customer to bring • Mustang Mach-E achieved “good” ratings in every UK What Van Safety Award check the back seat of the vehicle for occupants after
their vehicle to a dealership for repair. With customer crashworthiness and crash avoidance safety category • The Transit Custom and Transit Courier received first the vehicle is turned off. Some vehicles are also capable
consent, Ford can address safety, environmental, and tested by IIHS, making it the top scoring electric and second place respectively. of sounding the exterior horn as a part of the warning
quality issues OTA when the fix involves addressing midsize SUV of all tested through March 2023. escalation. When the ignition is on and a rear door is
a software issue and can be performed OTA. opened and closed, or ignition is turned on shortly after
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the opening and closing of the rear doors, the system to the risk of an unexpected open door. A new driver top rated Active Driver Assistance system, for the second pro trailer button and once the two are aligned, the truck
infers the potential presence of occupants in the rear assistance feature called Exit Warning, is now available year in a row. stops and the driver lowers the trailer onto the tow ball.
seat and triggers the alert when the vehicle is turned off. on all models of the all-new 2024 Ford Mustang to help
Smart Hitch
share the road and protect vulnerable road users like
In 2019, Ford committed to equip at least 95% of Available Smart Hitch is designed to help drivers easily
cyclists, scooter riders, and pedestrians. In Connected Vehicles and Digital Services on p.40
passenger vehicles with rear doors and rear seating load trailers and practice safe towing. Smart Hitch
positions (under 10,000 pounds) in the U.S. with a rear Available Exit Warning is designed to alert the vehicle’s Reverse Brake Assist helps the customer distribute trailer weight correctly
seat potential occupant reminder system by September 1, occupants with audible and visual alerts via Ford SYNC, Reverse Brake Assist can help reduce or avoid a collision by measuring the tongue weight of a trailer being
2024. Ford met that commitment a year early, as the Rear on the Mustang’s instrument cluster and side mirror when backing up by automatically applying the brakes connected. Smart Hitch calculates the trailer’s
Occupant Alert System was standard on 98.4% of the if rear approaching traffic, cyclists, or pedestrians are when the system detects an object in the vehicle’s path. appropriate tongue weight after it is set up on the
applicable United States vehicles when Ford reported detected. Available Exit Warning uses the vehicle’s rear Reverse Brake Assist utilizes sensors on the rear bumper center touch screen and provides guidance on weight
its annual update to the National Highway Traffic Safety corner BLIS® (Blind Spot Information System) radar and the rearview camera to detect objects and help distribution or hitch overloading on the screen or on
Administration (NHTSA) in October 2023. sensors when parallel parked to help detect other reduce or avoid a collision. The system is active when the FordPass App. The truck will indicate if the current
vehicles, cyclists, and pedestrians moving towards the the vehicle is in Reverse and traveling at a speed above hitch weight is too high or low, and can even guide
Ford initiated research and advanced engineering
vehicle’s sides from behind and warn occupants before 1 mile per hour (mph) but below 7 mph. A message owners through properly tensioning a weight-
projects to help develop interior cabin radar sensing
they open the door to exit the vehicle. and warning indicator will appear when the system redistributing hitch.
to potentially detect the presence of occupants.
automatically applies the brakes.
Advancements Made in Active Safety Technologies Keeping Occupants Safe
We will continue to enhance warning notifications for
and Co-Pilot 360 Technology Trailer Reverse Guidance
future models and research technologies that can detect Precompetitive Partnerships
We continue to make advancements in our Active Safety Available Trailer Reverse Guidance enhances visibility
in-cabin occupant presence. These features will help To enhance the safety of vehicle occupants, maintain
Technologies and Co-Pilot 360 to help keep drivers in with cameras in the sideview mirrors and visual guides
address scenarios beyond those defined by the 2019 competitiveness and leadership, and support our
command from the driveway to the highway. From blind in the center dash screen to give extra assistance when
Voluntary Agreement and should enhance effectiveness aspiration to be the most trusted company, Ford
spot detection to parking assistance to hauling cargo, you are backing up a trailer. Drivers get a clear view of
in minimizing and potentially avoiding pediatric vehicular collaborates globally with other automotive
Co-Pilot 360 gives drivers a clear view of the road ahead where the trailer’s going while Trailer Reverse Guidance
heatstroke cases. manufacturers, suppliers, policy makers, associations,
and the path behind them. coaches them along the way.
research institutions, and universities.
Digital Rearview Mirror Gives Better User Experience
New BlueCruise Features Pro Trailer Backup Assist™
Ford Pro™ continues to use technology to give For example, Ford is a member of the U.S. Council
Our in-house team is constantly improving BlueCruise — This available feature makes backing up a trailer as
commercial customers a better user experience while for Automotive Research (USCAR). We work under the
adding features and enhancing its hands-free Advanced easy as turning a knob — simply rotate in the direction
helping improve productivity with an available new USCAR Safety Technical Leadership Council (TLC) to
Driver Assist Systems (ADAS) with experiences that offer you want the trailer to go and Pro Trailer Backup Assist
Digital Rearview Mirror available on 2023 Ford Transit® identify safety challenges, technical issues, and vehicle
a more human-like driving feel. responds accordingly.
and E-Transit vans. The Digital Rearview Mirror features accident safety research needs. We are currently
a high-definition monitor that displays a panoramic view BlueCruise Version 1.3 rolled out in late 2023. The latest Pro Trailer Hitch AssistTM conducting precompetitive vehicle safety research on
of the area behind the van, allowing drivers to spot version of our cutting-edge driver assist technology adds Available Pro Trailer Hitch Assist helps drivers hook the effects that new and emerging vehicle technologies
cyclists, pedestrians, and other vehicles, even when a lane change support and other refinements that keep up trailers more easily by automatically controlling the and safety requirements will have on vehicle safety.
bulkhead, cargo, passengers, or windowless rear doors drivers in hands-free mode on average five times longer steering wheel, throttle, and braking to align the hitch We are also working under the USCAR safety TLC
are in the way. than version 1.0. ball and trailer coupler. The user needs to confirm the umbrella on precompetitive projects on next-generation
trailer coupler height is ½ to 3 inches above the hitch Anthropomorphic Test Devices, or crash dummies, to
Exit Warning Keeps Pedestrians and Cyclists Safe BlueCruise continues to receive external recognition. assess and validate their repeatability, reproducibility,
ball during the feature use. The driver holds down the
Exiting a vehicle onto a busy street or sidewalk exposes In 2023, BlueCruise was recognized as Consumer Reports durability, and ease of use to help shape future
cars, pedestrians, and cyclists approaching from behind regulations and help NHTSA develop meaningful
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Overview — Human Rights — Product Safety and Quality — Human Capital and DEI — Employee Health and Safety — Customer Experience — Community Engagement
protocols that lead to real world safety enhancement in When it comes to safety, these efforts by Ford Fund a modem-based system, is being introduced in a number Ford EVs are subjected to crash testing that far exceeds
motor vehicle accident outcome. include philanthropic grantmaking to a variety of of countries across the globe. the stringency of regulatory requirements. For example,
organizations that prioritize safety for vulnerable road we conduct front, side, and rear impact crash tests at
As a member of the Alliance for Automotive Innovation, EV Battery Health and Safety
users in low-income communities, as well as the long- 5 mph above the speeds required by safety regulations,
we are working with other automotive manufacturers on Ensuring the safety and quality of EV batteries is crucial
running Driving Skills For Life program. which translates to increased impact energy and severity
generating responses to regulatory agencies such as the to building trust in our fleet of electric vehicles. Every
as compared to what is required by law.
National Highway Traffic Safety Administration (NHTSA) Now in its 21st year with global activations spanning the Ford EV includes a battery quality operating system.
and Insurance Institute for Highway Safety (IIHS) and United States, Europe, and IMG regions, this program Quality checks and tight process controls are integrated We also conduct crash tests beyond what is required by
precompetitive research on Large Truck Safety and invites newly licensed and permitted teenage drivers to throughout the battery cell manufacturing and battery regulations and consumer testing, enhancing robustness,
biomechanics for Head Injury criteria. go through various hands-on training exercises to ensure pack screening during vehicle assembly. Once a vehicle and furthering the high level of safety of our EVs.
that teen drivers, as well as the pedestrians, cyclists, and is built, Ford leverages cloud-based vehicle monitoring
Other collaborations include the European Automobile We are the only company in the world that certifies
transit users who they interact with on the roads, can and detection and can communicate with connected
Manufacturers Association, the Society of Automotive our EV and internal combustion engine police interceptor
all have a right to a safe mobility journey. In the United customers if a voltage anomaly is detected. Ford also
Engineers, the International Organization for vehicles at 75 mph speed with 50% offset rear impact
States, Ford Fund partners with the Governors Highway provides high voltage safety publications including
Standardization (ISO), the Global Human Body crash tests — the most stringent rear impact test that
Safety Association to bring these Driving Skills For Life a Workshop Manual for vehicle technicians and an
Modeling Consortium, and the Canadian Vehicle exceeds legal requirements. This internal commitment
events to 10 Ford communities. Emergency Responders Guide for first responders.
Manufacturers’ Association. helps the battery and structural design in EV police
In December 2023, Ford Fund announced a $5 million interceptors successfully survive.
Ford has funded and executed precompetitive safety
investment in mobility solutions focused on addressing
research projects with universities such as University
transportation insecurity in Ford’s hometown Safety Research Partnerships
of Michigan Dearborn, University of Michigan
communities located in Southeastern Michigan, EV safety research Evaluating the safety performance of lithium-ion batteries with Sandia National Laboratories
Transportation Research Institute, Michigan State
Louisville, Kansas City, Chicago, Ohio, West Tennessee, and the National Renewable Energy Laboratory. Effort includes developing mechanical,
University, Wayne State University, and Tsinghua
and Buffalo. With its Safety in Mobility work, Ford Fund thermal, and electromechanical multi-physics modeling capabilities to help predict lithium-
University in China. We often publish the research results
works so that every person is free to move and pursue ion battery performance and damage when subjected to an impact.
in peer-reviewed journals and scientific publications.
their dreams through affordable, reliable, and safe
Technical challenges In addition to the American Center for Mobility, Ford is a member of the Autonomous Vehicle
We have been a member of the Driver Alcohol Detection transportation.
of self-driving Industry Association and is working toward a world where safe and trusted autonomous
System for Safety (DADSS) program, since it was
Post-Crash Response vehicles vehicles increase road safety and improve mobility opportunities for all.
established. This cooperative research partnership
In addition to helping occupants call for assistance after
is developing an alcohol detection technology that Vehicle-to-Vehicle Ford is a member of the 5G Automotive Association to advance connected technology for
an accident, our 911 Assist can give first responders
passively detects driver impairment and prevents the (V2V) safety automotive applications. Ford is also a member of the Leadership Circle for Mcity to shape
potentially life-saving information, quickly and efficiently.
car from moving. Ford provided an active lead in both communication all aspects of the future of mobility.
Available through SYNC and our new Ford and Lincoln
the technical and policy working groups developing systems
Digital Experience infotainment system, 911 Assist shares
the alcohol sensing technology. Ford collaborated with
a GPS location with the operator and relays data on impact Cybersecurity Ford is a member of the AutoISAC an industry-driven community to share and analyze
DADDS on implementing passive breath sensors in two
velocity, crash type, safety belt use, and airbag deployment, intelligence about emerging cybersecurity risks to the vehicle, and to collectively enhance
Mach-E vehicles in Connecticut for fleet evaluation.
helping emergency services respond appropriately. vehicle cybersecurity capabilities.
We also partner with Ford Motor Company Fund, the
The majority of our vehicles also carry the SOS Post- Driver distraction Ford is a board member of the Automotive Coalition for Traffic Safety and is funding research
company’s philanthropic arm, on their work to promote
Crash Alert System, which alerts passers-by and first and Advanced on developing a passive blood alcohol content detection system to reduce drunk driving.
affordable, reliable, and safe mobility for those
responders to a vehicle’s location. In addition, e-Call, Driver Assistance In 2023 Ford joined the Partnership for analytics, research, and traffic safety, which is a data
experiencing transportation insecurity.
technologies sharing partnership that serves as a source for real-world data driven traffic safety information.
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Overview — Human Rights — Product Safety and Quality — Human Capital and DEI — Employee Health and Safety — Customer Experience — Community Engagement
Ford has executed a number of battery safety projects Ford Motor Company realized improvements at three Improving our Quality Processes with Data
funded by the U.S. Department of Transportation months of ownership in our 2023 QNPS metrics. QNPS and Technology
National Highway Traffic Safety Administration (NHTSA) provides timely and actionable insights that align with We are leveraging data analytics and data management
and the U.S. Department of Energy to support various industry performance indicators of quality, to improve vehicle quality, customer safety, and
governmental and industry priorities in electrified such as the annual studies conducted by J.D. Power. customer satisfaction.
vehicles. We are also sponsoring and funding
We leverage external, industry benchmarking data Increasing our use of advanced data analytics and
precompetitive battery safety research projects related
to understand the relative strength of our quality machine learning will help us detect potential issues
to EV and battery safety such as Lithium-ion Multiphysics
performance and our improvement opportunities. across our vehicle portfolio earlier — even before
Modeling, Post Crash HV/LV (high voltage and low
This also provides us the credibility with external delivering the vehicle to the customer. Our Early Quality
voltage) Components, and Connectors and Intrusion
stakeholders and audiences. All Ford plants are Issue Suite draws on multiple data sources, from
Effects on HV (high voltage) Batteries.
accredited to ISO 9001:2015. connected vehicles to customer service calls, to
Monitoring Product Quality and Brand Advocacy accelerate the investigative process. This tool minimizes
Industry — 2023 Quality Achievements
Our mission is to make product quality one of the • Initial Quality Study (IQS): In the J.D. Power IQS results, time from detection to correction by combining this
principal reasons why customers buy Ford the first which ranks automotive Original Equipment information with automatic anomaly detection and root
time — and every time. Manufacturers (OEMS) and their brands based on cause analysis.
We use several metrics including, warranty repairs, problems per 100 (PP100). Ford Motor Company’s (FMC) We continue to improve our integrated data
customer advocacy, and customer excitement to rank position was 23rd among OEMs in the Industry. management system for tracking investigations all the
understand how consumers perceive the quality Additionally, the Ford brand rank was 15th among way through recall implementation. We are expanding
experience from our products. “Mass Market” brands. The Lincoln brand ranks 12th the numbers of parts and subsystems that we can
among “Premium” brands. FMC received an award for precisely trace to vehicle-specific builds when an issue
Our Quality Net Promoter Score (QNPS) metric, which the Ford Ranger (Midsize Pickup) along with four models arises. This avoids issuing wider recalls targeting a date
measures the ownership experience at three, 12, and ranking within the “Top 3” of their segments: Ranger range of vehicle identification numbers, which generally
36 months in service, helps us understand and improve and Maverick (Midsize Pickup), Bronco Sport (Small involve broad vehicle populations that may not all be
our consumers’ quality perceptions and advocacy over SUV), and Lincoln Nautilus (Midsize Premium SUV).43 affected. By precisely identifying recall populations we
their ownership cycle. QNPS has provided a comprehensive
• J.D. Power Automotive Performance, Execution and can limit the number of customers who are
and holistic view of quality by capturing both customers’
Layout Study (APEAL): Ford Motor Company ranks 10th inconvenienced and optimize the number of remedy
“likes” (e.g., “Things Gone Right”) and items customers
among OEMS. Ford Brand ranked 10th in “Mass Market” parts needed.
“like least” about our products. We enhanced our process
in 2023 by conducting QNPS continuously, talking to brands, scoring one point higher than the segment
our customers monthly throughout the year. We have average; Lincoln Brand ranked seventh in “Premium”
migrated from QNPS to Corporate Net Promoter Score brands, scoring two points higher than the segment
(CNPS) for 2024 given the rich insights we are learning average. FMC had four models ranking within the
regarding the services we offer our customers in addition “Top 3” of their segments: Mach-E (Compact SUV),
to product insights. Bronco Sport (Small SUV), Maverick (Midsize Pickup),
and Nautilus (Midsize Premium SUV).44
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Overview — Human Rights — Product Safety and Quality — Human Capital and DEI — Employee Health and Safety — Customer Experience — Community Engagement
A new culture is taking root at Ford. A link to our internal We Are Committed to Speaking Up Workforce and Talent Development
Aspirational Goals and Eliminating Retaliation policy is included in the Ford is committed to providing hourly and salaried
One that demands focus, collaboration,
Code of Conduct. The Code of Conduct also lists all the employees with the opportunity to upskill and reskill
and excellence. One that pulls together channels available for employees to report any type of with supportive training programs both internally and
our entire team around the globe to concern. Employees can file reports in person, via email, with the help of community partners. We are dedicated
Diversity,
achieve our purpose of helping to build online, or via toll-free hotline, and may report to the principles of lifelong learning, embracing a
anonymously if desired. growth mindset and career development. Engineers
Equity and
Inclusion a better world where every person is
who previously developed state-of-the-art internal
free to move and pursue their dreams. We commit to not tolerating harassment or
combustion engines (ICE) and emissions systems are
Salient Human Rights Issues discrimination of any form, supporting diversity,
Our talented and passionate teams are embracing the now applying those same modeling and experimental
providing a healthy and safe working environment,
future, and the challenges and opportunities it will bring, testing skill sets to design industry-leading EV battery
protecting consumer and employee data privacy,
without losing sight of our legacy of serving the world safety systems, optimize fuel cell system components,
and prohibiting bribery. These policies are described
with integrity and competence. We are committed to and improve eMachine manufacturing processes.
in more detail in our Code of Conduct.
Fair work Harassment/
Discrimination giving them the tools they need to succeed. Community Access to Quality Jobs
Supporting a Just Transition
Human Capital Management and Diversity, As we build an electric future at our plants, we are
UN Sustainable Development Goals While the shift to electric vehicles is critical to Ford providing opportunities to skill and connect community
Equity, and inclusion (DEI) Policies
achieving our business and sustainability goals, the members with manufacturing careers. BlueOval City in
ESRS S1-1
transition comes with challenges that we cannot ignore. Stanton, Tennessee will be one of our most
We have set the sustainability aspirational goal to
As we transition to EVs, labor and employment markets technologically-advanced manufacturing campuses to
support a diverse, equitable, and inclusive workplace
will continue to require new skills, new ideas, and new date, and will create thousands of jobs.
where each person is valued.
habits of mind. Building this future requires changing
Ford’s Code of Conduct includes our 17 Corporate and reshaping virtually all aspects of the way we have Engaging with Labor Unions
ESRS S1-2, ESRS S1-8
Policies which outline the company’s commitment to operated for more than a century. Consequently, we are
and expectations for employees. Employees are expected reorganizing some functions throughout our business. Ford has a longstanding history of working with unions,
to operate in alignment with the Code of Conduct at We will live up to our duty to care for and support those and we remain committed to the agreed collective
all times. affected, providing not only benefits but significant help bargaining process. In Europe, Ford has a long standing
to find new career opportunities. European Works Council that allows for meaningful
We treat our workforce fairly, humanely, and with respect exchange at the regional level. Working conditions and
and dignity. We recognize and respect employees’ rights As we continue to implement our EV strategy and move terms of employment are influenced by collective
to freedom of association and collective bargaining and toward carbon neutrality, we are supporting a just bargaining agreements, where applicable, at the country
work with recognized employee representatives to transition for our employees, our supply chain, and the level and based on the employee type (salary, hourly,
consider the interests of employees at all times. communities in which we operate. We recognize that management).
new skills and learning approaches are needed as the
We do not discriminate or retaliate against any In 2023, Ford engaged in collective bargaining around the
transition to EVs disrupts business models across
employees, including those participating in a trade globe with our respective union counterparts. We reached
industries and new value streams emerge. Ford supports
union. Even where there is no representation by unions, new labor agreements in our European, IMG, and Americas
a just transition by preparing our workforce and local
we provide opportunities for employee and external regions addressing wage increases and other provisions
communities for the transition to EVs.
stakeholder concerns to be heard. supporting the employee experience.
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Overview — Human Rights — Product Safety and Quality — Human Capital and DEI — Employee Health and Safety — Customer Experience — Community Engagement
Employee Engagement Continuous Feedback Via Always-On Survey Our employees indicated that they feel a sense of Our 2023 Global Salaried Gender Pay Ratio is 98.7%.
ESRS S1-2 Measuring employee sentiment via an always-on survey satisfaction with their jobs, feel valued, and feel supported This ratio is defined as the ratio of average female
Employee engagement is a catalyst for our success. ensures leadership understands the general pulse of in taking care of their wellbeing. The following metrics salaries to average male salaries adjusting for region, pay
We leverage a multi-channel open dialogue to keep employees and can respond in a timely fashion to issues reflect sentiment around our efforts to support employees: grade, salary plan, education, and experience worldwide.
our employees informed, engaged and vested in and concerns. Results of all of our employee surveys are Our U.S. Salaried Minority Pay Ratio is 101.5%. This ratio
• 74% feel valued as an employee of Ford; up from 69%
the company’s success. Our regular cadence of presented to senior leaders in dashboard formats that is defined as the weighted average ratio of average
in 2022
communications provides opportunities to frequently support better and faster data-informed decisions. minority salaries to average non-minority salaries among
share information and business updates. It includes • 85% are satisfied with their job employees in the same skill team and pay grade.
Employee Sentiment Survey
global Town Halls, our intranet and websites, corporate
In 2023, we revamped the content of our annual • 91% say their People Leader supports their efforts Although our analysis shows no indications of systematic
publications and reports, social media, webcasts, and
sentiment survey of global salaried employees to include to balance their work and personal life pay bias, we monitor our entire compensation structure
executive Q&A sessions with senior management, labor-
new metrics. Eleven key metrics that can be trended to ensure that all employees are paid appropriately.
management committee meetings, as well as Employee Equal Pay for Equal Work
from 2022 showed an increase in favorability. We also
Resource Group initiatives led by the Global DEI Office. ESRS S1-16 Employee Benefits
added a U.S./Canada Non-Salaried Voice Survey in 2023.
We are committed to equal pay for equal work. We are committed to meeting our employees’ needs
Social Action Council
The annual salaried engagement survey is sent to This commitment applies to all forms of pay, including while balancing the needs of the business. At Ford,
We launched our Social Action Council in 2022 to
employees via an email which explains the data base salary, incentives, bonuses, and other forms the purpose of work defines where that work is done.
promote and support positive change. A cross-functional
governance process. To ensure individual employee of compensation. We take a consistent approach to flexible work patterns
team of Ford leaders, the Social Action Council assesses
confidentiality, no results for any group of less than and arrangements globally. We maintain a hybrid work
the impacts of social issues on Ford’s business and Our We Are Committed to Protecting Human Rights and
five is shown. Our privacy policy and confidentiality model for our non-place-dependent workforce and have
stakeholders and presents engagement recommendations the Environment policy mandates that we “Comply with
disclosures are shared with all employees. developed guidelines and tools to support those who
to the company’s executive leaders and Board of applicable laws regulating hours of work and support a
Directors based on Ford’s purpose, business, and Key Metric Results from Global Salaried Voice Survey living wage by providing competitive compensation and choose this path.
capacity to make an impact. At Ford, we are creating an inclusive environment. The benefits that meet or exceed legal requirements.” Job sharing programs and mechanisms are available
following metrics reflect sentiment around these efforts: for those who want to work reduced hours. Employees
Employee Feedback Our Total Rewards office assessed our global
S1 SBM-2, ESRS S1-2 • 88% of survey participants say that at Ford, people feel remuneration policies and practices to confirm alignment in North America, Europe, and India who are interested
respected regardless of their differences; up from 86% with the Wages & Benefits guidance set forth by the in job sharing can create a profile on our JobShare
Understanding our employees’ concerns is essential.
in 2022 Responsible Business Alliance (RBA) and the Automotive Connect app, search for matches and reach out to
We seek feedback from our employees via our annual
Industry Action Group. The assessment considered potential partners.
engagement survey and always-on shorter pulse • 87% feel like they belong and can be themselves at
surveys. Results are shared with senior leadership. competitive wages, benefits, and overtime compensation. Family Benefits
Ford, up from 82% in 2022
Moderated discussions with senior leadership on the Our evaluation confirmed that all Ford employees In 2023 we introduced new family-building benefits that
feedback received and potential actions to take then • 90% say their People Leader treats everyone on their globally receive wages and benefits which, at minimum, cater to every unique journey to parenthood for our U.S.
drives action planning and goals. team fairly and equitably, regardless of their respect minimum wages, overtime compensation, salaried employees. The new benefits offer reproductive
differences medical leave, and government-mandated benefits, assistance/fertility treatments, surrogacy reimbursement,
Other opportunities to share feedback include direct
and are adequate to cover basic needs, as well as enable and include an expansion of the current adoption
interaction with communication coordinates and leaders. • 84% feel safe to express concerns about problems and
a decent standard of living. reimbursement benefit. They are designed to help
tough issues
alleviate the financial burden and provide support to
make the process easier to understand and navigate.
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Overview — Human Rights — Product Safety and Quality — Human Capital and DEI — Employee Health and Safety — Customer Experience — Community Engagement
Ford has a process in place to review and respond to For confidentiality reasons, we may or
reports as appropriate. We keep information related may not be able to make you aware of
to reports confidential, sharing it only as needed to the outcome of an investigation or any
carry out an investigation by designated individuals. actions taken.
We do not tolerate retaliation in any form against someone who makes
a good faith report or participates in an investigation.
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Overview — Human Rights — Product Safety and Quality — Human Capital and DEI — Employee Health and Safety — Customer Experience — Community Engagement
Ford will support and protect anyone who raises a good- To mitigate material risks and pursue material Employee Resource Groups The supplemental report also provides more nuanced
faith concern in connection with a potential violation of opportunities, we provide Integrity Training to the salaried Employee Resource Groups (ERGs) are voluntary, breakdowns of diversity at various managerial levels.
the Code of Conduct, company policies, or the law. Ford workforce. We also include relevant questions in the employee-led global organizations that operate as part
We are committed to equal pay for equal work.
strictly prohibits retaliation against anyone for reporting Integrity Training survey and in our Employee Voice survey. of the Global DEI Office. ERGs connect individuals, and
Employee compensation in each market should be fair
in good faith a suspected violation or for assisting with allies, who share common affinities, interests, and
Global Diversity, Equity, and Inclusion (DEI) and equitable, irrespective of gender, race, or similar
an investigation. experiences and serve as a place for employee learning,
Ford is committed to supporting and sustaining a personal characteristics. Equal pay for equal work applies
collaboration, and development.
The online platform, SpeakUp.ford.com, is a confidential diverse, equitable, and inclusive workplace. As we move to all forms of pay, including base salary, incentives,
and secure channel to report concerns related to forward, our intention is to harness the power of our In 2023, we transformed how our global ERGs operate bonuses, and other forms of compensation.
Corporate Policies, the Code of Conduct, the law, or talented team to help fuel our transformation and further in order to increase efficiency, better support employees,
other compliance and ethics matters. The SpeakUp site empower Ford to better serve the diverse customers and and to further advance the Ford+ plan. All 10 global
is managed by a third-party vendor. Employees may communities where we live and work. ERGs are aligned to promote and support diversity and In the EEO-1 report and the Supplemental Report
also report concerns to their People Leader, HR, People inclusion by focusing on three strategic areas:
DEI in Dealerships
Matters, or the Office of the General Counsel (OGC). Women in Ford’s Workforce
• People — Offer a network for employees sharing an Ford customers are very diverse; they represent
Both the Code of Conduct and the We Are Committed to Global Salaried Employees by Gender affinity to connect, collaborate, and access resources different backgrounds, cultures, perspectives, and needs.
Speaking up and Eliminating Retaliation policy include an Women 28.0% for personal and professional development. To better serve our diverse customer base and to ensure
explanation of the process after a report is filed. The OGC equal opportunity and inclusion, we remain committed
Men 71.9% • Community — Promote the company’s commitment
uses a third-party vendor to track SpeakUp complaints. to evolving our network by making dealer diversity
to philanthropy and to building a better world.
Women on our Board of Directors 28.6% a top priority.
Once a report has been filed, the report is logged into
• Business — To act as brand advocates and support
the system and then routed to the appropriate internal Women in Top Management 25.6% In 2023, we added 23 new ethnic minority dealers in
the Ford+ plan.
resource. When warranted, an investigation plan is the U.S., and we have dedicated candidate identification
Women in Professional Level 27.9%
developed and the investigation proceeds. The allegations Equal Employment Opportunity coordinators to cultivate and maintain a robust pipeline.
are then verified or found to be without merit. The process Women in Hourly/Production Positions 21.1% Our EEO-1 report provides a snapshot of our U.S. We also maintain strong relationships with minority
concludes with the appropriate action being taken. demographics as of year-end 2023, based on dealer associations.
Our Global DEI Vision occupational categories prescribed by the federal
There are specific channels for handling employee- Our efforts also include offering Ford dealerships
We respect the different cultures and beliefs of our team government that aggregate jobs with widely varying
related matters including work-related issues relating resources to support their own DEI efforts. We encourage
members, customers, and the communities we serve. skill requirements. Approximately 95% of all Ford Motor
to compensation, discrimination, harassment, employee Ford dealers to participate in the Ford Guest Experience
Our journey is ongoing and our commitment unwavering Company hourly and salaried positions fall into just
benefit concerns, the Code of Conduct, and company Immersion. FGE includes learning opportunities to help
as we nurture an equitable workplace where each person four of the 10 categories. The usefulness of this data
policies. All Corporate Policies and the Code of Conduct dealers better connect with customers, build cultural
is valued, empowered to do their best work, and inspired for measuring diversity success, and for making direct
include a section emphasizing the importance of competency, and to integrate diversity, equity, and
to move freely and pursue their dreams. comparisons to other companies or other industries with
speaking up and a reference to the Policy. inclusion concepts into their workplace.
different job structures, is therefore extremely limited.
We send a People Matters Post-Investigation Survey to As the company transforms, so have our plans to As we move forward, Ford remains committed to
advance global DEI. We are focused on the long-term To address these shortcomings, Ford has developed
randomly selected known complainants so that we can operating in ways that best serve the diverse customers
cross-functional work required to put the resources and a more robust supplemental report that disaggregates
receive their feedback. We use this employee feedback and communities where we live and work.
systems in place to equitably support each employee’s technical jobs in fields such as engineering and
to determine if processes and/or programs require
career journey, and to grow and sustain an inclusive, information technology, which pose recruiting
enhancement; if policies or procedures need alteration;
global workplace. challenges that are very distinct from non-technical roles.
or if any other actions are needed as appropriate.
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Overview — Human Rights — Product Safety and Quality — Human Capital and DEI — Employee Health and Safety — Customer Experience — Community Engagement
Supplier Diversity and Inclusion Supplier Diversity and Inclusion 2023 recognitions include:
Ford’s commitment to engaging minority businesses • WEConnect International, Top Corporations —
dates back to 1968 when it initiated an inner-city supplier Platinum Level
development program. This evolved into the official
Minority Business Development Program in 1978, • Women’s Business Enterprise National Council,
pioneering diversity in the U.S. Top 10 Global Champions in Supplier Diversity
Today, Ford’s Supplier Diversity and Inclusion initiative • National Minority Supplier Development Council,
encompasses more than minority and women owned Corporation of the Year
businesses and has expanded to U.S. small businesses, • Hispanic Association on Corporate Responsibility,
Veteran-owned businesses, enterprises led by Procurement/Supplier Diversity 5 Star Rating
individuals with disabilities, and LGBTQ+ entrepreneurs.
The program also embraces global women-owned Capital Markets Diversity and Inclusion
businesses and Canadian Indigenous-owned enterprises. Growing and developing a diverse banking group is
consistent with our commitment to supplier diversity
In addition to fostering diversity within its Tier 1 supply and inclusion. To further support this effort, Ford
base, Ford advocates for diverse suppliers in its supply partners with minority owned firms across several capital
chain procurement with the Tier 2 WIN — Widening market areas. During the 2023 fiscal year, this included
Inclusion Network initiatives. This expansion not only debt issuance underwriting, fixed income trading, cash
diversifies sourcing options but also bolsters supply deposits, and supporting Ford’s corporate revolver.
chain resilience by promoting competition among In addition, Ford offers opportunities to help minority-
vendors, driving improved service and pricing. owned banks expand hiring, internship programs, and
Furthermore, Ford has supported strategic alliances and training opportunities. These offerings can further enable
joint ventures among diverse suppliers, enhancing their banks to broaden their capabilities and better serve the
capabilities and fostering growth. These collaborations communities they support.
empower diverse businesses to enhance capacity,
acquire new skills, and fortify the supply chain locally
and regionally.
The health and safety of our employees Safety Performance at every Ford facility. Our engineered systems are
Aspirational Goals ESRS S1-2, ESRS S1-14 designed and installed to provide safe operations for
continues to be a top priority for Ford.
Any loss of life or serious injury in the workplace is our employees.
Promoting health and safety is a unacceptable and deeply regretted. Unfortunately,
As we build new plants and update existing facilities,
collective effort, and everyone at Ford there was one employee fatality globally in 2023.
safety for high-risk construction contractors working
plays an essential role. Robust corrective actions have been implemented to
on Ford projects continues to be a priority. In 2023, we
Safety
prevent re-occurrence and reduce risk to our employees
Many of our internal standards go beyond applicable held focus group and benchmarking discussions with
and contractors working on site. We continue to
Salient Human Rights Issues laws and regulations to meet our commitment to our key construction prime contractors to share best
encourage accurate and detailed reporting of safety
protecting the safety of our workforce in all our locations. practices associated with pre-apprentice trades and
issues to reduce risk and improve workplace safety.
the abnormally higher injury rates within that group.
Health and Safety Policies Our safety culture is based on our Health and Safety The outcome of the sessions included better alignment
ESRS S1-1
Commitment, “Our most valuable asset is our people. on how those persons working in that space can be
Health/Safety We have set the sustainability aspirational goal to work There can be no compromise.” It applies to all better protected, as well as updated language within
towards a future that is free from vehicle crashes and employees, contractors, and visitors performing work our own construction safety standards.
UN Sustainable Development Goals workplace injuries. at our locations globally.
Safety Operating System
Our commitment to employee health and safety is Safety performance is managed by Senior Leadership ESRS S1-4
stated in our corporate Code of Conduct and internal through Plant Operation Reviews, Manufacturing Safety As stated in our Workplace Health and Safety policy,
Workplace Health and Safety policy, We Are Councils, and Safety Process Review Board meetings. Ford is committed to fostering a safe and healthy
Committed to a Safe and Healthy Working Environment. working environment in each of our locations worldwide.
Our We Are Committed to Protecting Human Rights and Unions representing production workers, skilled trades,
The global Safety Operating System (SOS) allows for
the Environment policy also states that Ford commits to and engineers play a crucial role in improving health and
comprehensive self-assessments of our corporate safety
providing a healthy and safe working environment. safety for our employees and workplaces. We are
standards in both our manufacturing and, beginning in
committed to supporting these unions and collective
According to our Code of Conduct, our operations and 2024, non-manufacturing locations.
bargaining to ensure the health and safety of our union
team members are expected to: represented employees and locations. The SOS helps ensure the work environment within our
• Participate in all required safety training facilities is safe for our employees and meets or exceeds
Designated members of management interact with
all regulatory and company requirements.
• Understand and follow our policies, processes, local, national, and global union representatives to foster
and requirements the open communications and collaboration needed to This internal tool validates each facility’s capability
work through contractual requirements. We partner with and adherence to meet our safety requirements.
• Plan and test responses to potential emergency our labor unions globally in supporting our health and The SOS is designed to prevent and reduce incidents
situations that may arise in our operations through safety initiatives and continue to address issues as they by implementing different elements such as incident
business continuity planning arise together. investigation and analysis, training, risk assessment,
• Work together to develop health and safety objectives and emergency preparedness.
Safe Conditions at New and Existing Facilities
and adequate plans to continuously improve health ESRS S1-4 In 2023 we took another step in our journey to
and safety at our locations We rely on robust standards and procedures, along with modernize our safety and ergonomic processes globally.
• Speak up immediately if they see unsafe behavior dedicated resources in our manufacturing engineering A dashboard created by our Global Data Insight and
or hazardous conditions teams, to assure safe conditions and a safe workplace Analytics (GDIA) team provides global, regional,
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Overview — Human Rights — Product Safety and Quality — Human Capital and DEI — Employee Health and Safety — Customer Experience — Community Engagement
manufacturing director, and plant specific self- instruction and guidance to our facilities through Engagement and Choice
assessment results. This tool, which is integrated with Immediate and Permanent Corrective Actions. These Empower choice of how to work, rest, and play when Prioritizing Safety at Ford Thailand Manufacturing
the SOS, has simplified data review by allowing us to corrective actions require facilities to make changes possible and appropriate. Ford has received global recognition for its safety
quickly identify issues by location, region, or globally and improvements and implement controls to prevent efforts. Ford Thailand Manufacturing (FTM) and
Culture and Understanding
to ensure allocation of resources. Our GDIA partners recurrence of these significant incidents. AutoAlliance Thailand (AAT) were honored at a
Advocate work-life integration and understanding
will continue to work with us and improve our SOS national level for their outstanding commitment to
Safety Training of individual differences.
dashboard to ensure the necessary data is mined from prioritizing safety, occupational health, and workplace
ESRS S1-4
the new application globally, regionally, locally, by Environmental Impact environment in their business model for 2023.
Safety training plays an essential role in our efforts
question, etc. Align our operations to our organizational values.
to achieve a future that is free from workplace injuries. FTM and AAT earned the Excellent Award for Safety,
Safe Observation Index Our safety training programs are best in class in the For example, the Corporate Ergonomics team completed Occupational Health, and Work Environment,
A leading indicator tool, the Safe Observation Index (SOI), automotive industry. A safety training matrix lists all several rounds of lab and production-based Hand-Arm demonstrating the dedication of FTM’s employees
allows for the evaluation of tasks and physical conditions safety topics, the frequency for each training course, Vibration testing of Electronic Pulse (E-Pulse) tools in and business partners to upholding high safety
in the workplace by team members. Corporate Safety the personnel that are required to complete training, response to a rapidly growing interest from production standards in the workplace.
collaborated with our IT partners and operations to and who manages the training and training format. teams. E-Pulse tools can accurately reach nominal
torques without generating the torque reaction forces Their collective efforts have led to exceptional
develop the SOI mobile application, which allows our We conducted regular communications and promotions
(tool kick) of traditional DC tooling. However, when operational performance and safety statistics, with
teams to be more efficient and enable real-time data on key safety issues to promote occupational health and
potentially hazardous hand-arm vibration exposures no major accidents reported over the past decade.
entry with no redundant work. safety. We also shared safety best practices via multi-
were identified during testing, the cross-functional team This was the tenth and seventh years respectively
The SOI mobile app will be launched globally in 2024 to industry groups, within and outside the automotive that FTM and AAT earned this honor.
responded by creating data-driven guidelines for safe
all manufacturing and non-manufacturing facilities and sector, and collaborated to address common issues.
implementation before unstandardized deployments
will include the necessary translations by region for the Human-centered Design for Health, created unnecessary ergonomic risk to our operators.
question sets. It was a Key Performance Indicator (KPI) for Safety, and Wellness
the Americas in 2023 and will be a global KPI in 2024. Safety in Battery Manufacturing
ESRS S1-4
ESRS S1-4
In addition, we are partnering with GDIA to extract the Human-centered design can transform the auto
Safety is a top priority as we continue to produce EVs
SOI data globally, regionally, and locally into a dashboard industry’s approach to manufacturing. By focusing on
at new sites and existing locations. The Battery Electric
for quick and easy review of factors including SOI environmental stewardship and social equity, we can
Safety Core Team shares knowledge with engineering,
completion and areas of concern. This new feature will play a leading role. We aim to address the occupational
product development and manufacturing locations.
improve overall reporting and eliminate the current demands specific to manufacturing and improve the
This team reviews training requirements, emergency
process of counting and maintaining Excel documents. working conditions and health of our essential workers
response procedures, best practices, and internal and
through the following five priorities:
Reporting Tools external incidents to better understand and prepare
ESRS S1-4 Health Equity our workforce.
We continue to utilize the Global Event Reporting Tool, Everyone has a fair and just opportunity to be as healthy
Our Medical and Industrial Hygiene and Toxicology
which enables us to quickly notify locations of significant as possible.
teams support new processes globally and review
events which may affect their operations. Together with Learning and Growth new materials for manufacturing battery electric vehicles.
the Corrective Action Issuance process, it provides a Encourage exploration and development of soft skills This will help ensure that we anticipate, identify, analyze,
forum for Ford to communicate significant incidents and lifelong learning. and measure potential occupational exposures and
when they occur, and then proactively provide monitor our employees as needed.
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Overview — Human Rights — Product Safety and Quality — Human Capital and DEI — Employee Health and Safety — Customer Experience — Community Engagement
We have updated safety measures at BlueOval City in Ford provides benefits to help employees optimize their
Tennessee and Ion Park Michigan. Emergency Response personal wellbeing. Examples include:
Plans were updated to include the use of fire blankets
• Ford partners with Lyra to provide U.S. salaried
for thermal runaway events associated with battery
employees and their eligible family members with
electric vehicles. In addition, we initiated a Process
an enhanced mental health benefit. This includes
Safety Management program for chemicals used at the
expanded access to evidence-based therapy and
Kentucky and Tennessee battery manufacturing facilities
coaching, as well as additional tools and resources.
and safe start-up at research activities at the Ford Ion
As a result, 88% of those who participated in therapy
Park facility.
or coaching reported they improved or recovered.
Proactive Approach to Emergency Response
• In partnership with the UAW, we continued the
ESRS S1-4
Campaign of Hope in our manufacturing plants,
Quick and strategic responses to emergency situations
with the goal of reducing the stigma associated
and natural disasters require comprehensive planning,
with seeking help for addiction and mental health.
which in turn requires testing and drills. With this in
In addition, this campaign directed employees to the
mind, we collaborated with multiple jurisdictions on
behavioral health benefits provided by the company.
an active assailant exercise at the Kentucky Truck Plant
in June 2023. • The Ford Global Mindfulness Club offers weekly
mindfulness and meditation sessions in nine countries
In Dearborn, 20 Emergency Response Teams (ERT) from
and six different languages, as well as an annual
across the company met for a two-day competition in
Mindfulness Week.
May 2023. ERT members are volunteers who are the
first to respond to an emergency on-site at the plant. • Ford partners with meQuilibrium to provide U.S.
The team members undergo many hours of training and salaried employees and their eligible family members
use their skills to assist in an emergency until first with a personal resilience building and stress
responders arrive. management program as part of their benefits.
Employee and Leadership Support • Ford partners with Edelman Financial Engines to
ESRS S1-4 provide U.S. employees (and retirees) with financial
Our global, holistic approach to employee support and wellbeing benefits including financial counseling,
care encompasses the physical, mental, and financial comprehensive digital planning tools, expert led
wellbeing needs of our employees. Foundational to our webinars, and more. In addition, Ford partners with
employee care philosophy is providing a broad array of Tuition.io to provide U.S. salaried active employees an
benefits and helping employees understand how to educational financial wellbeing platform designed to
optimize those benefits to meet their individual needs help strategize and optimize student loan debt
and goals. We are committed to creating an environment repayment.
where employees and People Leaders care for and
support each other as we deliver Ford+.
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Overview — Human Rights — Product Safety and Quality — Human Capital and DEI — Employee Health and Safety — Customer Experience — Community Engagement
Customer Experience
and Responsible Marketing
Every day, Ford employees and dealers up their vehicle and return it when the repair has been Raising Concerns via Global Contact Centers
UN Sustainable Development Goals completed. This adds convenience and choice to the ESRS S4-3
listen to customers and dream, design,
service experience while minimizing downtime. For light Approximately 3,000 agents in our Global Contact
DECENT WORK AN
D
8 ECONOMIC GROWTH test, and manufacture vehicles and repairs and routine maintenance, a Mobile Service van Center are dedicated to helping our customers and
services to meet their needs. The goal can be dispatched with a trained technician to perform dealers with any questions or concerns related to Ford or
is not to simply meet expectations, service at an eligible location of the customer’s choice. Lincoln products and services. We offer a variety of ways
to engage with the Global Contact Center, capturing all
but to go above and beyond to deliver The Mobile Service van fleet and mobile repair order
inbound and outbound contacts via phone, chat, SMS,
products and services that customers business continues to grow at a rapid pace as we have
Apple Business Chat, email, postal mail, and our website.
added over 2,300 mobile service units in 2023 — a 278%
can’t live without. In addition, we actively engage in selected social media
increase over 2022. This was driven in part by strong
forums and directly engage with customers who flag
Policies Related to Customers growth in our mobile repair orders, which are up 280%
ESRS S4-1
issues and concerns on key social media platforms.
for 2023. With over 3,100 launched Mobile Service units,
Our commitment to customer engagement is written into Ford has the largest Mobile Service fleet in the U.S. Our focus on customer experience and product safety
our corporate Code of Conduct which states, “We seek to Globally, the number of Ford Pro Mobile service vans and quality is showing results. We use internal metrics
engage our customers in new and inclusive ways to get deployed doubled between 2022 and 2023. to help monitor inquiries raised and how they are
deeper knowledge of their wants and needs.” addressed or resolved. For example, cases which cannot
Our remote services continue to be popular with
be solved during the initial contact with the Global
Engaging With Our Customers customers. We delivered over 2.0 million remote
Contact Center and are open for more than 24 hours are
ESRS S4-2 experiences in 2023, an increase of 335% over 2022.
classified as Concern Cases. The quality of resolution of
Ford provides multiple channels for customers to engage And customers are responding positively. The Net
these cases is known as the Concern Net Promoter Scores
with the company directly. Customers engage with the Promoter Score (NPS) on mobile service repair order
(NPS). In 2023, Concern NPS improved from +7 to +26.
company in our dealerships, on our websites and social outperforms overall service scores by over 12 percentage
During the same time period, Customer Experience
media, at our contact centers, and inside our vehicles. points. To help manage the increased demand, we
increased from 60% to 73% and Concern Resolution
We invite them to provide their sentiment on touchpoint expanded our Mobile Service program to include Escape
grew from 74% to 81%.
satisfaction and their likelihood to advocate for the brand SUVs, allowing customers at its smaller-volume dealers
as they proceed along the customer experience journey. more convenient options for vehicle service. A Proactive Customer Support initiative in 2023
contributed to customer experience improvements.
Our internal customer experience measurement platform Loyalty and Membership Rewards
The Global Contact Centers proactively reached out to
provides actionable insights to our dealers and Our FordPass Rewards loyalty program lets U.S. over 612,000 customers in 2023, representing over 10%
touchpoint owners to drive enhanced experiences. customers earn and redeem Points for things like of the total annual inbound contact volume. This is in
service, accessories, Connected Services, and vehicle contrast to 329,000 proactive contacts in 2022. We have
Managing Our Relationship with Customers
purchases. The FordPass Rewards member base in the also put more emphasis on customer self-help, more
ESRS S4-4
U.S. continues to grow with 2 million+ new members than doubling the monthly self-help interactions to over
We have increased our commitment to enhancing the
in 2023, bringing the current member count to over 4 million with a task success in 2023 of 61%, starting at
ownership experience. Ford customers in the U.S. now
13 million. Program expansion has unlocked many new 49% in January 2023 and ending the year at 71% task
can enjoy complimentary Pickup & Delivery as well as
ways to earn and redeem Points throughout the Ford success in December 2023.
expanded mobile services from participating dealers.
ecosystem, including at accessories.ford.com, for select
With Pickup & Delivery, the customer’s preferred Ford
Connected Services, SiriusXM subscriptions and at events
dealer will come to their home or place of business, pick
such as the Bronco Off-Roadeo.
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Overview — Human Rights — Product Safety and Quality — Human Capital and DEI — Employee Health and Safety — Customer Experience — Community Engagement
Customer Feedback and Process to Remediate communications channel during an interaction with a We are in the process of accelerating the transformation The Ford Guest Experience is a way of doing business
Negative Impacts customer. For example, a customer that has initiated of our dealers into a competitive differentiator for the to ensure we meet and exceed dealer and guest needs
ESRS S4-4 contact via chat can be seamlessly moved to a phone company’s businesses across Ford Blue, Ford Model e, both today and in the future. It’s designed to address
All Contact Centers in all regions (excluding China) conversation without the agent having to stop the Ford Pro, and Lincoln. With that in mind, in 2023, we key drivers of sales and service satisfaction, and to
have been moved to One CX, our new experience interaction and open a new case. This omnichannel named Elena Ford as chief dealer engagement officer. build loyalty, trust, and amazing relationships with our
measurement platform. Covering all contact channels, capability, coupled with a high degree of automation, Ford and dealers around the globe will collaborate to guests. At its core, FGE is a dealer “mindset” shift from
and using globally consistent surveys, the new platform will streamline the process and allow agents to focus increase the consistency and efficiency of our global a transactional to a guest relationship. By treating
serves as the consolidated resource for customer on the customer. dealer council’s governance, improve retail facilities, guests like family and creating memorable experiences,
feedback. Consistency in surveying and reporting modernize training and development, become more guests are able to do business with dealers on their
Inflation Reduction Act
contributed to the strong customer experience (CX) diverse, further raise community engagement, and terms, throughout their entire ownership cycle.
Metrics improvements in 2023 thanks to global best In 2023, all three of our electric vehicles, as well as our amplify best practices.
plug-in hybrids, were eligible for Inflation Reduction Act Ford Guest Experience topics vary depending on the
practice sharing.
federal tax credits of up to $7,500. In order to qualify for Starting in 2024, our dealers will begin to select an area location of the training, but broadly focuses on the
The Global Contact Centers actively use survey the consumer incentive, among other requirements, the of focus. Some will invest in EVs and become Model e human elements of both Sales and Service: Respecting
feedback via a process called “closed loop.” Team leads, vehicle MSRP be at or below $80,000, and the purchaser dealers. Others will specialize with Ford Blue or Ford Pro. the guests’ time and supporting the feeling that Ford
supervisors, and managers analyze customer feedback, must meet certain income limits. Every one of our EVs Some dealerships will go “all-in” across Ford Blue, Ford “has their back” throughout the ownership experience.
focusing on any customer rating below “excellent.” They and plug-in hybrids was assembled in North America, Pro, and Ford Model e. This is delivered by initiatives around the globe such
reopen cases if required, provide feedback to customers, meeting a requirement for the consumer tax incentive. as Mobile Service, Pick Up & Delivery, Connected Vehicle
In an effort to improve our buying experience, beginning
and review improvement opportunities with agents. Going forward, Ford will continue to maximize eligibility data, Diversity, Equity & Inclusion, Talent Management,
in 2024, Model e customers will have flexible purchase
for federal tax credits for our customers. Electrification, and more. The training helps exemplify
To complement the CX Surveys, we are launching a options, both online and in the dealership, with
the need to make experiences fit the unique needs of the
new AI-driven Call Analytics tool which will provide key Commercial customers of Ford E-Transit™, F-150® transparent pricing that they don’t have to haggle over,
guest so that they will never forget how our experience
insights into the customer/agent interactions, helping Lightning™ and other Ford commercial EVs — as well and remote vehicle delivery, as well as later pickup.
made them feel. It is Ford and the dealer’s task to deliver
to provide very specific customer feedback to Product as Ford Pro Charging™ equipment — may qualify for IRA These better experiences make customers more likely
“wow” moments at each interaction.
Development and Quality. Not only will this tool deliver tax credits of up to $7,500 per electric vehicle purchased. to build a relationship and choose the same dealer again.
self-help and knowledge-base gaps for the team to Ford Pro is working to help give electric vehicle We want each of our Model e dealers to be a trusted Dealers involved in the program are encouraged to use
address, but it will also provide deeper insight into agent customers no-cost information to learn about IRA tax partner for new EV customers who want to see and learn an action plan that outlines different commitments they
behavior, driving agent training opportunities. credits for which they may qualify. about these new great products. want to make in their store to drive effective and long-
term change. When they complete a task, they are
We are in the process of building a completely new We also anticipate that the EU Green Deal will have Dealer Training
encouraged to make another goal in order to continue
case management system for our agents to capture all a positive impact for our customers and the green The Ford Guest Experience is an integrated approach to their Guest growth process.
relevant customer, vehicle and service details, and notes electrification of mobility in the covered regions. Dealer Training, Culture, Immersion, and Implementation
related to a particular case. The new system, which we We expect European mandates for more EV charging that drives Guest Centric change. Since the US program Reimagining the Customer Journey in Europe
are piloting in Houston, TX, is called CX-Hub and infrastructure will support European customers in launch in 2022, 1,200 Global Dealers have been to in-person We are taking customer experiences in Europe to new
integrates all systems an agent needs into one system. migrating to fully electric vehicles. Immersion events, with an additional 1,330 targeted in levels, integrating processes from discovery to servicing
Consequently, the agent can access all the required 2024. Additional FGE activities have also occurred in non- for seamless simplicity, starting with electric vehicles.
information and systems to solve a customer problem Dealer Engagement and Improvements
immersion form, making the Ford Guest Experience a In May 2023, we unveiled a new vision to make
within the CX-Hub. Not only does the system allow the With over 8,000 Ford dealers around the world, we flexible, yet integral foundation for a positive Guest discovering, testing, buying, and owning Ford products
agent to serve multiple contact channels at the same have the largest physical support network of any brand Experience around the Globe. not only simpler, but also more satisfying — starting
time, but the agent has the ability to switch the broadly distributed across North America and Europe. with Ford electric vehicles.
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Overview — Human Rights — Product Safety and Quality — Human Capital and DEI — Employee Health and Safety — Customer Experience — Community Engagement
In partnership with our retail partners across Europe, We are committed to ensuring that our marketing,
we are entirely reimagining the customer journey to product offerings, and services meet the needs of
EV ownership, with online access and touchpoints our diverse current and future customers. We do not
available every step of the way. The new approach specifically target vulnerable consumers and users.
introduces online showrooms and virtual test drives Our marketing is aimed at those intending to purchase
for exploring products and services. Transparent pricing vehicles, with demographics and needs differing
means no surprises. And customers will be able to depending on which product and/or service we are
personalize their vehicle handover, access charging, advertising. While mass market advertising will reach
and arrange pickup and delivery for servicing with a broad population group, ad placements are based
a few clicks on their smartphone. on our target demographics and needs.
By making it easier for greater numbers of customers We make a conscious effort to work with a diverse group
to go electric, our new customer experience will support of creative professionals to develop and produce our
our commitments to achieving carbon neutrality for our content across multiple channels. In addition to engaging
European operations, logistics, and direct suppliers by content creators from underrepresented groups, we
2035, and building a more sustainable, inclusive, and strive to offer training and mentorship through the
equitable transportation future. marketing process.
We are also tackling the single most frustrating factor We follow industry standards for responsible marketing
for car-buyers according to the New Car Buyers Survey — practices including customer privacy, email contact rules,
uncertainty about when their new car will arrive. Clear etc., and always assure that all of our marketing work
communication, online visibility of the order status, is routinely monitored and reviewed for legality and
and the ability to book delivery slots online will compliance. We strive to apply best practices in
help customers plan ahead and put time back on sustainability as we produce our marketing assets.
their calendars.
Responsible Marketing
S4 SBM-3
Representing the diversity and perspective of our
customer base in our marketing materials is important
to us.
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Overview — Human Rights — Product Safety and Quality — Human Capital and DEI — Employee Health and Safety — Customer Experience — Community Engagement
Communities where we live and work, Across our work, we empower Ford employees to give back
UN Sustainable Development Goals to the communities where they live and work. Employee Disaster Relief
and where we partner with businesses,
volunteers help fuel our mission by bringing their unique As the rate of floods, tornadoes, hurricanes, and
schools, nonprofit service organizations, skills and heart for service to volunteering with our wildfires continues to increase, Ford and The Ford
and government organizations are community partners. In 2023, employees filled more than Fund, are expanding their partnership with Team
critical to our future. 7,000 volunteer opportunities and spent over 55,000 hours Rubicon — a veteran-led humanitarian organization
volunteering in community service projects throughout the that operates in nearly every county in the United
The Ford Fund year. During Global Caring Month in September, employees States. According to studies, 90% of U.S. counties
ESRS S3-4
planned and participated in more than 100 volunteer experienced a federal climate disaster between
As the philanthropic arm of Ford, the mission of the Ford projects in 31 countries, addressing issues they care about 2011-2021.46
Motor Company Fund is to partner with communities to and making a difference in their local communities.
help move people forward and upward. We partner with Team Rubicon Powered by Ford is a new $5.8 million
communities where Ford has roots — spanning more Charitable Contributions Made by Ford and Ford Fund disaster relief initiative that includes the donation
than 40 countries around the globe — working on the Total contributions $73.7M of a fleet of 17 vehicles, a $2.5 million philanthropic
ground with nonprofits to co-create and invest in investment and a commitment to deploying
Total given to disaster relief $1.8M employee volunteers — all of which greatly expands
solutions that meet unique community needs.
Volunteer hours in reporting year >55,000 Team Rubicon’s ability to provide no-cost services
In 2023, Ford and Ford Fund invested more than to vulnerable communities in the wake of a disaster.
$73.7 million in philanthropic contributions to help
Expanding Access to Food Through the expanded partnership, Ford volunteers
strengthen communities and build a better world.
More than 34 million Americans, including 9 million joined Team Rubicon relief projects in Detroit,
Since 1949, we have invested more than $2.3 billion
children experience food insecurity in the U.S. today. Houston, and Florida last year. And in August, after
in community-focused initiatives around the globe.
During September’s Hunger Action Month, Ford Fund Hurricane Idalia damaged thousands of homes and
Our partnerships and programming are focused on announced partnerships with local food banks, DoorDash businesses in Florida, Team Rubicon was on the
the following areas: and Feeding America to help individuals and families ground for more than three months. During the
facing hunger access the food they need through mobile deployment, a team of Ford employees joined Team
ó Essential Services: Expanding access to food,
delivery. By investing in mobility solutions, Ford Fund Rubicon’s “Greyshirt volunteers,” supporting their
transportation, disaster relief, and other critical
and its partners are helping bridge the gap between efforts to remove debris, clear trees, and help
services that allow communities to thrive
access to transportation and food. residents get back on their feet.
ó Education for the future of work: Building pathways
Working with local food banks in Detroit, Louisville, Ford’s disaster relief efforts extend far beyond the
to education for careers in mobility, technology, and
Memphis, and West Tennessee, Ford Fund is broadening U.S. For example, when a devastating earthquake
the trades
access to meals using home delivery in collaboration struck Turkey in March 2023, Ford Fund joined forces
ó Entrepreneurship: Connecting aspiring entrepreneurs with DoorDash’s Project DASH. Door Dash will deliver with Ford Otosan to mobilize hundreds of employee
with capital, mentorship, and training to diversify the fresh food and produce from participating food banks volunteers. Ford Fund also coordinated relief efforts
pipeline of new founders and expand opportunities to transportation-limited people and families. that included vehicle donations, emergency search-
for business ownership and-rescue operations, financial contributions, and
Ford Fund also committed $1.25 million in grants to
ó Mobility: Investing in solutions that use transportation Feeding America food banks in Ford’s home-base in-kind donations that provided critically needed
and technology to connect people with the resources communities. The grants will enable food banks in supplies and essentials.
and opportunities they need to move forward upstate New York, Illinois, Ohio, Southeast Michigan,
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Overview — Human Rights — Product Safety and Quality — Human Capital and DEI — Employee Health and Safety — Customer Experience — Community Engagement
Missouri, Kentucky, Tennessee, Texas, and South Florida Bridging the Transportation Gap apprenticeship program called “Building for Thailand’s Ford New Zealand supported recovery efforts with
to create and scale innovative mobility solutions that Through a $5 million investment and partnerships Future” to develop the skills and technical capability funding and vehicle donations and loans when Cyclone
address food insecurities, such as access to fresh food with over a dozen nonprofit organizations, Ford Fund is of mechanic and mechatronics workforce in Thailand. Gabrielle struck New Zealand in 2023.
in areas where it is otherwise unavailable. helping bridge the gap between transportation-limited Scholarship winners receive academic training in
Ford South Korea continued its partnership with the Ford
communities and access to resources and services classroom as well as on-the-job training and knowledge
Education and Workforce Development Fund to support conservation and environmental grants
including healthcare and fresh food. Some of our sharing from manufacturing experts and Ford
Around the world, Ford Fund partnerships and to local individual and groups that have an idea for
partners include United Way of Southeastern Michigan’s dealerships. Over the past six years, Ford has granted
programming expand access to scholarships, technical protecting the environment.
“Ride United” program and Foenix — Mobility Rising, 118 scholarships with a total value of over THB 5,984,000.
training, and career readiness programs that prepare
a nonprofit focused on removing transportation barriers Ford Philippines partnered with its Ford dealer network,
the next generation of leaders for careers in automotive FBS India actively promotes inclusion as a part of its core
in under-resourced communities. Our partnership with Motolite Ramcar Battery and Philippine Business for
and tech. Corporate Social Responsibility (CSR) objectives and
Vision to Learn provides vision screening and eye care Social Progress (PBSP) to advocate for the proper
engages with diverse community groups through various
In South America, the Ford Enter IT training and for students in Northeast Ohio. While a partnership disposal and legitimate recycling of used lead acid
initiatives. The Right Wheelchair Project provided nearly
certification program is helping remove barriers to with Wayne Health provides pharmacy support through batteries (ULABs). Motolite donates to PBSP an amount
120 people with disabilities with customized wheelchairs
education while addressing the growing demand for IT mobile prescriptions and refills for Detroit residents. for every battery collected from each dealer group and
in 2023. And Project Mobility offered almost 500 prothesis
professionals. The program launched in Brazil in 2022 the fund will be used for the rehabilitation of watersheds.
Building Community in BlueOval City to underserved people with spinal cord injuries. FBS India’s
and expanded to Argentina, Chile, Columbia, and Peru The fund, which is augmented by a $25,000 grant from
In response to meetings with nonprofit leaders and Happy School project supported 280 intellectually disabled
in 2023. Ford Fund, will be used for the rehabilitation of the
community organizations in the counties surrounding children and slow learners in six schools through a series
Marikina and Buhisan watersheds. Another $25,000 grant
In the U.S., a new $1 million Ford Auto Tech Scholarship BlueOval City in Tennessee, Ford Fund launched a of interventions that include creating individual education
is in the pipeline to support the program in 2023-2024.
program backed by Ford Fund and Ford dealers is capital grants program in the fall of 2022 to help plans for the children, capacity building of parents and
helping address the increasing demand for highly skilled strengthen civic spaces and services in the region. teachers, and deployment of special educators.
automotive technicians across the industry and reducing Local municipalities and organizations were encouraged
The Middle East team conducted CSR initiatives in 2023,
barriers for students pursuing careers in automotive to apply and propose improvements based on their
ranging from celebrating Emirati Women’s Day to
service and technology. The program is open to current unique expertise and understanding of community needs.
socializing with the elderly and children with special
and future students enrolled in post-secondary auto
After reviewing more than 200 applications, 17 needs and helping them in their daily routines, to hosting
or auto and diesel technician training programs in the
organizations were selected to receive a total of nearly Henry Ford Entrepreneurship Academy sessions at Dubai
Greater Atlanta, Chicago, Dallas, and Phoenix areas.
$1.2 million in 2023. Grantees were selected from all six Women’s College. Our Middle East team has also
The program’s focus on STEM skills fuels upward
counties surrounding the worksite and their proposals contributed to buy and pack toys, books, and off-the-
professional and economic mobility as the industry
address a range of civic needs — from public safety, shelf medicines to children who are battling cancer at
moves toward electrification.
beautification, education, and workforce development Children’s Cancer Center-Lebanon.
In honor of Ford South Africa’s centennial, Ford Fund is to essential services such as fresh food delivery to
Ford Vietnam launched a project to provide job
partnering with Ford South Africa to transform shipping underserved communities.
opportunities for young woman in the highland regions
containers into 100 math and science labs for primary
Creating Opportunities on a Global Scale and reduce early marriage in these areas. Specifically,
schools across the country. In addition, 100 scholarships
ESRS S3-4 the project’s fashion teachers, students, and designers
will be awarded to provide young adults from under-
Around the globe, Ford continues to make a difference will teach young H’Mong women how to use traditional
resourced communities with opportunities for STEM-
in the communities where our employees and partners materials and local traditional crafts to create high-
related careers and apprenticeship programs within
work and live. For example, Ford Thailand collaborated applicable and high-value products that can be
automotive and advanced manufacturing industries.
with Thai-Austrian (Sattahip) Technical College in an introduced into practical life.
Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices
118
Overview — Human Rights — Product Safety and Quality — Human Capital and DEI — Employee Health and Safety — Customer Experience — Community Engagement
Computers for
Kids Making a
Difference
Community Engagement Policies communities, governments, non-governmental Ford tracks community sentiment through various forms Various processes are used to manage impacts
S3 SBM-3, ESRS S3-1 organizations, and other stakeholders, including including: social media posts; surveys; listening sessions; depending on their scope and scale. If it is a perceived
Our human rights policy commitments extend to affected Indigenous Peoples. media articles; and discussions with government and or potential negative impact, Ford will proactively
communities. We do not engage in unlawful eviction or community leaders on what they are hearing. engage with the community through resident town
We strive to prevent and mitigate human rights and
taking of land, forests, and waters securing the livelihood halls, listening sessions with government and
environmental impacts. To accomplish these goals, Community members reach out to Ford through
of human beings. We strive to minimize negative community leaders, civic groups, educators, nonprofits,
we provide appropriate remedies if non-compliance contact with our plant leadership as well as through
impacts, on both human beings and the environment, environmental groups, etc., depending on the potential
occurs and bring any violation to an end. our dealers and government officials. In addition,
while striving for positive impact. In support of this goal, issue. These sessions allow Ford to provide additional
residents can contact Ford directly through our corporate
we have instituted to a variety of initiatives to mimic We report suspected violations of our We Are Committed information to address any questions or concerns.
website or through our on the ground representatives
ecosystem performance, eliminate waste, and divert to Protecting Human Rights and the Environment policy. In addition, obtaining community feedback on concerns
in the community.
waste from landfill to products, reduce fresh water Ford takes reports seriously. Reporting inappropriate allows Ford to assess what mitigation steps, if any,
usage, reduce single-use plastic, and support safe behavior helps us maintain a positive culture and When Ford has a change in its manufacturing footprint are needed.
and accessible drinking water in our manufacturing compliance with the law and allows us to educate and that may impact residents, it will host listening sessions
Tracking our Performance
operations and communities. counsel. Information on how to report grievances is and provide updates on our website.
Our targets include improved community sentiment,
presented in our Code of Conduct which is available
Managing impacts in our communities ensuring community investment is made in all
on our corporate website. External stakeholders may
ESRS S3-3 manufacturing locations and supporting ongoing
In Environment on p.44 report by emailing SpeakUp@ford.com. Violations of
There have been limited incidents in communities engagement by hosting regular town halls and
our We Are Committed to Protecting Human Rights and
Supporting worthy community institutions, programs, that Ford has remedied by working in partnership responding to resident concerns.
the Environment policy may lead to disciplinary action
and endeavours is woven into the fabric of our culture. with government agencies and the community.
up to and including termination.
We take pride in our role as an active and valuable
Ford has a 120+ year history of operating safely in
member of the communities in which we operate. In addition, regular interactions with community
communities across the world. There is no evidence
Not only do we encourage our people to be involved stakeholders and elected officials in our manufacturing
that these communities are at a greater risk of harm.
in community initiatives and contribute to worthy communities also provide opportunities to learn of any
We meet or exceed all air emissions regulations for our
charitable, educational, and civic causes, but Ford impacts. We review any impacts received through these
manufacturing facilities and received an A score rating
supports nonprofit organizations focused on education, channels with cross-functional experts to determine
for water security from CDP.
community development, social services, safe/smart what mitigation steps are required.
mobility, and civic/cultural initiatives. We follow the If a material impact is identified, Ford works closely with
Engaging with Communities
global approval process, as well as any local the community and government officials and agencies to
ESRS S3-2
requirements set up by operations for contributions determine the appropriate remedy. The remedy usually
In addition to the Ford Fund activities outlined earlier
or other support provided by Ford. consists of a combination of mitigating any negative
in this chapter, Ford is an active member of the
impacts and compensating those affected through
communities in which we do business. We engage
various channels.
with the community through business organization
In The Ford Fund on p.116
memberships, regular interactions with government We take resident concerns very seriously as Ford
We integrate due diligence findings in our business officials at all levels of government that represent the prides ourself on being a good neighbor as one of our
planning and decision making, considering the facility, as well as presence at community events and company’s core values. Ford will continue to listen and
environment, human rights, public health, indigenous philanthropic endeavors. respond and work in good faith toward an acceptable
populations, and the communities where we operate. outcome for all stakeholders involved.
We engage constructively with suppliers, local
Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices
120
Overview — Risk Factors — Supply Chain Management — Business Conduct — Data Protection, Privacy, and Cyber Security — Reporting Scope and Data Assurance
Governance
In this section:
121 — Governance Overview
122 — Risk Factors
125 — Supply Chain Management
126 — Business Conduct
126 — Transparency, Business Ethics,
and Integrity
127 — Accountable and Inclusive
Governance
131 — Government Regulations,
Policy, and Engagement
132 — Data Protection, Privacy, and
Cyber Security
133 — Reporting Scope, Boundaries,
and Data Assurance
Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices
121
Overview — Risk Factors — Supply Chain Management — Business Conduct — Data Protection, Privacy, and Cyber Security — Reporting Scope and Data Assurance
Governance
Overview
Our corporate officers and Board of Directors are dedicated to serving the interests
UN Sustainable Development Goals
of our shareholders and creating long-term value. Guided by our purpose, history,
We are contributing to the following UN
and business strategy, our officers and directors provide expert oversight and guidance Sustainable Development Goals through actions
to ensure we are well-positioned to respond to the changing global business outlined in this chapter:
environment. Our culture of compliance and ethics is formalized in company policies, 8 DECENT WORK AND ECONOMIC GROWTH 10 REDUCES INEQUALITIES 11 SUSTAINABLE CITIES AND COMMUNITIES
reinforced by leadership, and driven by our purpose to help to build a better world.
Risk Factors
ESRS 2 SBM-3
Significant risk factors tied to our material sustainability extended droughts, and extreme temperatures. In to produce higher volumes of electric vehicles is making substantial investments, recruiting new talent,
topics and applicable to our business are outlined below. addition, in the event a weather-related event limits the dependent upon the availability of raw materials and and optimizing our business model, management
More information and detail on each of these risk factors ability of freight carriers to deliver components and other other components necessary for the production of system, and organization.
can be found in our annual 10-K filing. Information on materials from suppliers to us or logistics providers to batteries, e.g., lithium, cobalt, nickel, graphite, and Read More
how we are addressing these risks can be found transport our vehicles for an extended period of time, manganese, among others.
Read More
throughout this report. it may increase our costs and delay or otherwise impact In Human Capital Management and DEI on p.104
Read More
both our production operations and customers’ ability
Labor Issues
to receive our vehicles. In Human Rights on p.88
A work stoppage or other limitation on production
In the Form 10-K
Ford is addressing its impact on climate change aligned Safety Recalls could occur at Ford’s facilities, at a facility in its supply
Operational Risks with the United Nations Framework Convention on Our vehicles could be affected by defects that result chain, or at one of its logistics providers for any
Appealing and Secure Digital Services Climate Change (Paris Agreement) by working to reduce in recall campaigns, increased warranty costs, or delays number of reasons, including as a result of labor issues,
Failure to develop and deploy secure digital services our carbon footprint over time across our vehicles, in new model launches, and the time it takes to improve including shortages of available employees, disputes
that appeal to customers could have a negative impact operations, and supply chain. We have announced the quality of our vehicles and services could continue under existing collective bargaining agreements
on Ford’s business. A growing part of our business interim emissions targets approved by the Science Based to have an adverse effect on our business. Government with labor unions or in connection with negotiation
involves connectivity, digital and physical services, Targets initiative (SBTi) and made other statements about safety standards require manufacturers to remedy of new collective bargaining agreements, absenteeism,
and integrated software services, and we are devoting similar initiatives, e.g., our expected electric vehicle defects related to vehicle safety through safety recall public health issues (e.g., COVID), stay-at-home orders,
significant resources to develop this business. If we volumes in future years. Achievement of these initiatives campaigns, and a manufacturer is obligated to recall or in response to potential restructuring actions
fail to generate sufficient demand for our integrated will require significant investments and the implementation vehicles if it determines that the vehicles do not comply (e.g., plant closures).
software and digital services or if customers do not opt of new processes; however, there is no assurance that with a safety standard. We may also be obligated to
Ford’s ability to maintain a competitive cost structure
to activate the modems in our vehicles, which would the desired outcomes will be achieved. To the extent we remedy defects or potentially recall our vehicles due
could be affected by labor or other constraints.
hinder our ability to offer and sell such services, we may are unable to achieve these initiatives or our transition to to defective components provided to us by our suppliers,
The vast majority of the hourly employees in our
not grow revenue in line with the costs we are investing electrification is slower than expected, it may harm our arising from their quality issues or otherwise.
Read More
manufacturing operations in the United States and
or achieve profitability on our increasingly digitally- reputation or we may not otherwise receive the expected
Canada are represented by unions and covered by
connected products. return on the investment.
collective bargaining agreements. These agreements
Read More Read More In Product Safety and Quality on p.99
provide guaranteed wage and benefit levels throughout
Ford+ Execution the contract term and some degree of income security,
In Connected Vehicles and Digital Services on p.40 In Climate Change on p.45 Our long-term competitiveness depends on the subject to certain conditions. With the ratification of
Climate Change Raw Materials Access successful execution of Ford+, our plan for growth and our new contracts with the International Union, United
Ford’s production, as well as Ford’s suppliers’ production, To facilitate access to the raw materials and other value creation. Ford+ is focused on delivering distinctive Automobile, Aerospace and Agricultural Implement
and/or the ability to deliver products to consumers components necessary for the production of electric and increasingly electric products plus “Always-On” Workers of America (UAW) in the United States and
could be disrupted by adverse effects of climate change. vehicles, Ford has entered into and may, in the future, customer relationships and user experiences. Our Ford+ Unifor in Canada in 2023, we expect to have a significant
Given the worldwide scope of our supply chain and enter into multi-year commitments to raw material plan is designed to leverage our foundational strengths increase in labor costs through the life of the contracts,
operations, we and our suppliers face a risk of disruption and other suppliers that subject Ford to risks associated to build new capabilities — enriching customer and if we are unable to offset those costs, it could have
or operating inefficiencies that may increase costs due with lower future demand for such items as well as experiences and deepening loyalty. As we undertake a significant adverse effect on our business.
to the adverse physical effects of climate change, which costs that fluctuate and are difficult to accurately forecast. this transformation of our business, we must integrate
Further, these agreements may restrict our ability
are predicted to increase the frequency and severity We have announced plans to significantly increase our our strategic initiatives into a cohesive business model,
to close plants and divest businesses. Some of our
of weather and other natural events, e.g., wildfires, electric vehicle production volumes; however, our ability and balance competing priorities, or we will not be
competitors do not have such collective bargaining
successful. To facilitate this transformation, we are
Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices
123
Overview — Risk Factors — Supply Chain Management — Business Conduct — Data Protection, Privacy, and Cyber Security — Reporting Scope and Data Assurance
Risk Factors
— continued
ESRS 2 SBM-3
agreements and are not subject to the same constraints. perceived as an employer of choice, we may be unable and information systems, including in-vehicle systems preferences may change quickly, our new and existing
A substantial number of our employees in other to recruit the best talent. Further, if we lose existing and mobile devices, some of which are managed by products may not generate sales in sufficient quantities
regions are represented by unions or government employees with needed skills or we are unable to suppliers, to process, transmit, and store electronic and at costs low enough to be profitable and recoup
councils, and legislation or custom promoting retention develop existing employees, particularly with the information that is important to the operation of investment costs. Offering vehicles and services that
of manufacturing or other employment in the state, introduction of new technologies and our focus on our business, our vehicles, and the services we offer. customers want and value can mitigate the risks of
country, or region may constrain as a practical matter operational efficiency and quality, it could have a Despite devoting significant resources to our increasing price competition and declining demand,
our ability to sell or close manufacturing or other substantial adverse effect on our business. cybersecurity program, we are at risk for interruptions, but products and services that are perceived to be less
Read More
facilities or increase the cost of doing so. outages, and compromises of: (i) operational information desirable (whether in terms of price, quality, styling,
Read More
systems (including business, financial, accounting, safety, overall value, fuel efficiency, or other attributes)
In Human Capital Management and DEI on p.104 product development, consumer receivables, data can exacerbate these risks. For example, if we are unable
In Human Capital Management and DEI on p.104 processing, or manufacturing processes); (ii) facility to differentiate our products and services from those of
Reliance on Suppliers
security systems; and/or (iii) in-vehicle systems or mobile our competitors, develop innovative new products and
Talent Retention We are highly dependent on our suppliers to deliver
devices, whether caused by a ransomware or other services, or sufficiently tailor our products and services
Ford’s ability to attract, develop, grow, and reward components in accordance with Ford’s production
cybersecurity incident, security breach, or other reason to customers in other markets, there could be insufficient
talent is critical to its success and competitiveness. schedule and specifications, and a shortage of or inability
(e.g., a natural disaster, fire, acts of terrorism or war, demand for our products and services, which could have
Our success depends on our ability to continue to attract, to acquire key components or raw materials, such as
or an overburdened infrastructure system). an adverse impact on our financial condition or results
develop, grow, and reward talented and diverse lithium, cobalt, nickel, graphite, and manganese, can Read More
of operations.
employees with domain expertise in engineering, disrupt Ford’s production of vehicles. Our products Read More
software, technology (including digital capabilities contain components that we source globally from
In Data Protection, Privacy, and Cyber Security on p.132
and connectivity), integrated services, supply chain, suppliers who, in turn, source components from their
In Financial Highlights on p.9
marketing, and finance, among other areas. While we suppliers. If there is a shortage of a key component in Macroeconomic, Market, and Strategic Risks
In Products and Services on p.31
have been successful in attracting talent in recent years, our supply chain or a supplier is unable to deliver a Market Acceptance
as with any company, the ability to continue to attract component to us in accordance with our specifications, Ford’s new and existing products and digital, software, Geopolitics
talent is important, particularly in growth areas vital because of a production issue, limited availability of and physical services are subject to market acceptance With a global footprint and supply chain, Ford’s results
to our success such as software, electrification, and materials, shipping problems, restrictions on transactions and face significant competition from existing and new and operations could be adversely affected by economic
integrated services. Competition for such talent is with certain countries or companies, or other reason, and entrants in the automotive and digital and software or geopolitical developments, including protectionist
intense, which has led to an increase in compensation the component cannot be easily sourced from a different services industries, and its reputation may be harmed trade policies such as tariffs, or other events. Because
throughout a tight labor market, and, accordingly, may supplier, or we are unable to obtain a component on if it is unable to achieve the initiatives it has announced. of the interconnectedness of the global economy, the
increase costs for companies. a timely basis, the shortage may disrupt our operations Although we conduct extensive market research before challenges of a pandemic, a financial crisis, economic
or increase our costs of production. launching new or refreshed vehicles and introducing downturn or recession, natural disaster, war, geopolitical
In addition to attracting talent, we must also retain Read More
new services, many factors both within and outside our crises, or other significant events in one area of the world
the talent needed to deliver our business objectives.
control affect the success of new or existing products can have an immediate and material adverse impact on
While compensation considerations remain important,
In Supply Chain Management on p.125 and services in the marketplace, and we may not be able markets around the world.
current and potential employees are increasingly placing
a premium on various intangibles, such as working for Cybersecurity Risks to accurately predict or identify emerging trends or Changes in international trade policy can also have
companies with a clear purpose and strong brand Operational information systems, security systems, preferences or the success of new products or services a substantial adverse effect on our financial condition,
reputation, flexible work arrangements, and other vehicles, and services could be affected by cybersecurity in the market. results of operations, or our business in general. Steps
considerations, such as embracing sustainability and incidents, ransomware attacks, and other disruptions taken by governments to apply or consider applying
It takes years to design and develop a new vehicle
diversity, equity, and inclusion initiatives. If we are not and impact Ford and Ford Credit as well as our suppliers tariffs on automobiles, parts, and other products and
or change an existing vehicle. Because customers’
and dealers. We rely on information technology networks
Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices
124
Overview — Risk Factors — Supply Chain Management — Business Conduct — Data Protection, Privacy, and Cyber Security — Reporting Scope and Data Assurance
Risk Factors
— continued
ESRS 2 SBM-3
materials have the potential to disrupt existing supply associated with benefits pursuant to our pension and may permit civil actions even where our vehicles, Data Protection
chains, impose additional costs on our business, and OPEB plans requires that we estimate the present services, and financial products comply with federal Ford and Ford Credit could be affected by the continued
could lead to other countries attempting to retaliate by value of projected future payments to all participants. and/or other applicable law. development of more stringent privacy, data use, data
Read More
imposing tariffs, which would make our products more We use many assumptions in calculating these estimates, protection, and artificial intelligence laws and regulations
expensive for customers, and, in turn, could make our including assumptions related to discount rates, as well as consumers’ heightened expectations to
products less competitive. investment returns on designated plan assets, and In Product Safety and Quality on p.99 safeguard their personal information. We are subject to
Read More
demographic experience (e.g., mortality and retirement laws, rules, guidelines from privacy and other regulators,
Product Modifications
rates). We generally remeasure these estimates at each and regulations in the United States and other countries
Ford may need to substantially modify its product
In Business Conduct: Government Regulations, year end and recognize any gains or losses associated (such as the European Union’s and the U.K.’s General
plans and facilities to comply with safety, emissions,
Policy, and Engagement on p.131 with changes to our plan assets and liabilities in the Data Protection Regulations and the California Consumer
fuel economy, autonomous driving technology,
Financial Risks year incurred. To the extent actual results are less Privacy Act) relating to the collection, use, cross-border
environmental, and other regulations. The automotive
Government Incentives favorable than our assumptions, we may recognize data transfer, and security of personal information of
industry is subject to regulations worldwide that govern
The impact of government incentives on Ford’s business a remeasurement loss in our results, which could consumers, employees, or others, including laws that
product characteristics and that differ by global region,
could be significant, and Ford’s receipt of government be substantial. may require us to notify regulators and affected
Read More
country, and sometimes within national boundaries.
incentives could be subject to reduction, termination, individuals of a data security incident. Existing and newly
Regulators have enacted and are proposing standards
or clawback. We receive economic benefits from national, developed laws and regulations may contain broad
to address concerns regarding the environment
state, and local governments in various regions of the In Human Capital Management and DEI on p.104 definitions of personal information, are subject to change
(including concerns about global climate change and
world in the form of incentives designed to encourage and uncertain interpretations by courts and regulators,
Legal and Regulatory Risks air quality), vehicle safety, and energy independence,
manufacturers to establish, maintain, or increase and may be inconsistent from state to state or country
Litigation and the regulatory landscape can change on short notice.
investment, workforce, or production. These incentives to country.
Ford and Ford Credit could experience unusual or These regulations vary, but generally require that over
may take various forms, including grants, loan subsidies, significant litigation, governmental investigations, time motor vehicles and engines emit less air pollution, Accordingly, complying with such laws and regulations
or tax abatements or credits. The impact of these or adverse publicity arising out of alleged defects in including greenhouse gas (GHG) emissions, oxides of may lead to a decline in consumer engagement or cause
incentives can be significant in a particular market during products, services, perceived environmental impacts, nitrogen, hydrocarbons, carbon monoxide, and us to incur substantial costs to modify our operations
a reporting period. A decrease in, expiration without or otherwise. We spend substantial resources to comply particulate matter, and there are associated increased or business practices. Moreover, regulatory actions
renewal of, or other cessation or clawback of government with governmental safety regulations, mobile and reporting requirements. seeking to impose significant financial penalties for
incentives for any of our operations, as a result of stationary source emissions regulations, consumer and non-compliance and/or legal actions (including pursuant
Similarly, we are making substantial investments in our
administrative decision or otherwise, could have a automotive financial regulations, and other standards, to laws providing for private rights of action by consumers)
facilities and revising our processes to not only comply
substantial adverse impact on our financial condition but we cannot ensure that employees or other individuals could be brought against us in the event of a data
with applicable regulations but also to make our
or results of operations. affiliated with us will not violate such laws or regulations. compromise, misuse of consumer information, or
Read More
operations more efficient and sustainable. As our
perceived or actual non-compliance with data protection,
Government investigations against Ford or Ford Credit suppliers make similar investments, any higher costs
privacy, or artificial intelligence requirements. The rapid
could result in fines, penalties, orders, or other may be passed on to us. In the United States, legal and
In Business Conduct: Government Regulations, evolution and increased adoption of artificial intelligence
Policy, and Engagement on p.131 resolutions that could have an adverse impact on our policy debates on environmental regulations are
technologies may intensify these risks.
financial condition, results of operations, or the operation continuing, with a primary trend toward reducing GHG Read More
Pension and Other Post-retirement Plans
of our business. Moreover, compliance with emissions and increasing vehicle electrification.
Economic and demographic experience for pension Read More
and OPEB plans (e.g., discount rates or investment governmental standards does not necessarily prevent
In Data Protection, Privacy, and Cyber Security on p.132
returns) could be worse than Ford has assumed. individual or class action lawsuits, which can entail
significant cost and risk. In certain circumstances, courts In Climate Change on p.45
The measurement of our obligations, costs, and liabilities
In Air, Water, and Soil Pollution on p.80
Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices
125
Overview — Risk Factors — Supply Chain Management — Business Conduct — Data Protection, Privacy, and Cyber Security — Reporting Scope and Data Assurance
Payment Terms
ESRS G1-6
Understanding terms of payment may be different for
our diverse supply base. We negotiate various alternative
methods for suppliers however, the standard method of
payment for all supplier liabilities is by Electronic Funds
Transfer. These methods are outlined in our Global Terms
& Conditions and further explained in both our Production
and Indirect Payment Schedule Supplier Guides.
Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices
126
Overview — Risk Factors — Supply Chain Management — Business Conduct — Data Protection, Privacy, and Cyber Security — Reporting Scope and Data Assurance
Business Conduct
Transparency, Business Ethics, and Integrity
Upholding the Highest Levels of Integrity Supplier Code of Conduct Compliance Training
UN Sustainable Development Goals ESRS 2 GOV-1, ESRS G1-3 Thousands of companies around the globe are involved ESRS G1-3
10 REDUCES INEQUALITIES 11 SUSTAINABLE CITIES AND COMMUNITIES
By providing appropriate training and communications in building Ford vehicles. As the focus on human rights Our robust and comprehensive compliance training
tools, our Compliance, Ethics, and Integrity Office ensures and climate change becomes sharper, it’s important that supports our high standards of ethical conduct.
that our people are equipped to comply with legal we hold our suppliers to the same high standards we Mandatory online training courses for all Ford salaried
obligations and policies that maintain the highest levels require of ourselves. In 2021, we launched our Supplier full-time, part-time, and agency workers, including
of integrity. Code of Conduct to formalize the standards we’ll work an annual Code of Conduct course, ensure our policies
with our suppliers to achieve. Our Supplier Code of are understood and reinforce their importance. We
Regular and Open Communication
Conduct applies not only to the company’s Tier 1 periodically refresh and review the courses to keep the
Our rigorous approach to ethics, Clear and open communication is a fundamental
suppliers, but cascades through the supply chain to content relevant and appropriate.
component of our corporate governance framework.
integrity, and transparency extends their suppliers as well. It is available in eight languages
Ford outperforms our industry as we work to maintain Reporting Violations
beyond compliance. It is the foundation and is accessible on our corporate website to suppliers,
open communication channels that include monthly ESRS G1-3
our employees, and the general public.
of our commitment to build a more reports on vehicle production, dealer inventory, and Our compliance program is designed to ensure that
sustainable, inclusive, and equitable retail sales. This in comparison to the quarterly reporting Our Supplier Code of Conduct mandates that our suppliers people can confidentially report known or potential
others in our industry conduct. maintain responsible business practices. Suppliers are violations of the law or of our policies. Team members
transportation future where every required to protect and respect human rights, protect the can report violations directly to Human Resources or
person is free to move and pursue We believe that it’s important that we meet our customers
environment, and responsibly source materials. The the Compliance, Ethics, and Integrity Office as well as
where they are — and in many cases that’s on social
their dreams. Supplier Code of Conduct also mandates that they the Office of the General Counsel. Violations can also
media. We use Ford Motor Company corporate accounts
conduct business free from bribery and corruption, be reported using the SpeakUp reporting website,
We lead with our values, and they permeate through and Chief Executive Officer’s social media accounts to
maintain effective privacy and cyber-security practices telephone hotlines, or email, some of which allow
all levels of our company. We strive to act with share information on a regular basis.
and comply with applicable trade and customs rules. for anonymous reporting. External stakeholders may
transparency, integrity, and honesty. It’s the foundation Read More
Adhering to Our Code of Conduct report by going to www.speakup.ford.com. A cross-
of the trust we build with our employees, our customers
ESRS G1-1 functional committee reviews allegations and oversees
and suppliers, our shareholders, and our communities.
Employee Code of Conduct In Human Rights on p.88 any investigations and subsequent corrective or
We are committed to complying with existing laws, It’s important that our employees understand what Anti-Bribery and Anti-Corruption disciplinary actions.
regulations, and policies. By providing clear policies, is expected of them when it comes to business ethics We maintain the highest ethical standards wherever For human rights and environmental issues involving
effective communication, and engaging training, we give and integrity. Equally important is that our customers, we operate. With operations around the world, it’s suppliers, Ford has an external site to report supplier
our employees the tools they need to do the right thing. suppliers, and other stakeholders understand our important that our facilities comply with a wide range grievances. The external site is available in five different
standards and hold us accountable to them. That’s how of national laws and governmental enforcement practices
As we look ahead, we are committed to maintaining languages and provides suppliers an opportunity to
we live up to our reputation as a global leader in with regard to bribery and corruption, regardless of
state-of-the-art corporate governance policies and report feedback. Employees of our suppliers can also
corporate ethics and social responsibility. where they are located. Bribery and corruption are
practices and continuing to ensure they are reflective provide feedback and file grievances directly via the
of current rules and regulations. Available in 12 languages, our Employee Code of Conduct forbidden, even in locations where they may be tolerated Responsible Business Alliance (RBA) Worker Voice app.
covers important topics including human rights, the or condoned. Read More
Business Conduct
Accountable and Inclusive Governance
Solid principles of accountable and Of our 14 Board members, four are women, one is
Black/African American, and one is Hispanic/Latino(a).
inclusive corporate governance are key Board of Directors Composition
Our Board includes 2 executive and 12 non-executive
to maintaining the trust of our investors, members. Nine of our directors are independent, and
Board Committees
our customers, and our people. our Audit Committee, Compensation, Talent and Culture
Committee, and Nominating and Governance Committee A C F N S
Accountable and Inclusive Governance
are fully independent.
Along with the people of Ford around the world, our
leadership is committed to serving all of our stakeholder For additional information on the unique qualifications
groups. Like generations of leaders before them, they and demographic backgrounds of our Board members, Compensation, Nominating Sustainability,
refer to the Director Skills and Diversity Matrix and Audit Finance
understand that by helping to create a world with fewer Talent and Culture and Governance Innovation and
director biographies included in our most recent committee committee
obstacles and limits, we help people to move forward Committee Committee Policy Committee
and upward. Proxy Statement.
0c. term strategy, risks, and global activities. The skill sets FN S
a,
a: Men 71.9%
include manufacturing, marketing, CEO leadership,
"'
·;:;
C: international experience, government experience, risk Women 28.0%
"'
C:
;:;: management, finance, and technology. Henry Ford Ill John c. May John s. Weinberg
,,
~
C:
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Governance Principles and Practices ®®
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Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices
128
Overview — Risk Factors — Supply Chain Management — Business Conduct — Data Protection, Privacy, and Cyber Security — Reporting Scope and Data Assurance
Corporate Governance Principles • Committee Charters. Each standing committee operates • Overboarding. We limit the number of outside public • Annual Audit Committee chair fee: $30,000
The Board has adopted a set of corporate governance under a written charter that has been approved by the company boards on which our directors and officers
• Annual Compensation, Talent and Culture Committee
principles, which may be found at our corporate website. Board and is reviewed annually. may serve.
chair fee: $25,000
These principles include: a limitation on the number
• Independent Directors Meet Regularly Without Board Role and Responsibilities
of boards on which a director may serve, qualifications • Annual other committee chair fees: $20,000
Management and Non-Independent Directors. ESRS 2 GOV-1
for directors (including a requirement that directors be
The Board continuously reviews the Company’s Approximately 68% of the Annual Board membership
prepared to resign from the Board in the event of any • Regular Board and Committee Self-Evaluation Process.
governance practices, assesses the regulatory and fee is paid in Restricted Stock Units (RSUs), and certain
significant change in their personal circumstances that The Board and each committee evaluates its
legislative environment, and adopts the governance directors choose to receive all or a portion of their fees,
could affect the discharge of their responsibilities), performance each year.
practices that best serve the interests of our in addition to the mandatory portion, in RSUs.
director orientation and continuing education, and a
• Mandatory Retirement Age and Term Limits. Fifteen- shareholders.
requirement that the Board and each of its committees Directors who are also Company employees are not
year term limits for new independent directors and
perform an annual self-evaluation. The Board is elected by and responsible to Ford’s separately compensated for their service on the Board.
mandatory retirement age of 72 provide regular
shareholders. Ford’s business is conducted by its
Our corporate governance principles, along with the opportunities for Board refreshment. Sustainability Governance
employees, managers, and officers, under the direction
charters of the Audit Committee; the Compensation, Talent ESRS 2 GOV-1, ESRS 2 GOV-2
• Mandatory Deferral of Compensation for Directors. of the Chief Executive Officer (CEO) and oversight of the
and Culture Committee; the Sustainability, Innovation and We employ a variety of governance systems and processes
In 2023, approximately 68% of annual director fees Board, to enhance the long-term value of the Company
Policy Committee; the Finance Committee; and the to manage different aspects of sustainability across our
were mandatorily deferred into Restricted Stock Units, for its shareholders.
Nominating and Governance Committee, provide the business, as summarized throughout this report.
which strongly links the interests of the Board with
framework for the governance of Ford Motor Company. The Board of Directors has chosen to separate the roles
those of shareholders. The Sustainability, Innovation and Policy Committee
of CEO and Chair of the Board of Directors, which allows
Sound corporate governance practices and trust go reviews and advises on the Company’s pursuit of
• Separate Chair of the Board and CEO. The Board the CEO to focus on leading the organization to deliver
hand in hand. Ford’s adoption of the following practices innovative policies and technologies that promote
of Directors has chosen to separate the roles of CEO product excellence, while the Chair leads the Board in
has played a critical role as we strive to be trusted by all product safety, improve environmental, and social
and Chair of the Board of Directors. its pursuit to provide the Company with direction on
who rely on us to help build a better world: sustainability, and seek to enrich our customers’
Company-wide issues such as sustainability, mobility,
• Confidential Voting at Annual Meeting. experiences, increase shareholder value, and lead
• Annual Election of all Directors. and stakeholder relationships.
to a better world.
• Special Meetings. Shareholders have the right to call
• Majority Vote Standard. Each director must be elected The Board of Directors monitors the performance of
a special meeting. The Committee is responsible for assessing the
by a majority of votes cast. the CEO and other members of senior management to
Company’s progress on strategic economic, product
• Shareholders May Take Action by Written Consent. ensure that the long-term interests of the shareholders
• Independent Board. 64% of the directors are safety, environmental, and social issues, as well as
are being served.
independent. • Strong Codes of Ethics. Ford is committed to operating the degree to which sustainability principles have
its business with the highest level of integrity and has Director Remuneration been integrated into various skill teams. The Committee
• Lead Independent Director. Ensures management
adopted codes of ethics that apply to all directors and ESRS 2 GOV-3 reviews the Company’s Integrated Sustainability and
is adequately addressing the matters identified
senior financial personnel, and a Code of Conduct that Effective as of January 1, 2017, the Board of Directors Financial Report summary as well as any Company
by the Board.
applies to all employees. agreed that the following compensation will be paid initiatives related to sustainability and innovation.
• Independent Board Committees. Each of the to non-employee directors of the Company: It assesses annually the adequacy of the Sustainability,
• Hedging and Pledging Policies. Officers are prohibited
Audit Committee, Compensation, Talent and Innovation and Policy Committee Charter, and reports
from hedging their exposure to, and limited in • Annual Board membership fee: $315,000
Culture Committee, and Nominating and to the Board of Directors about these matters.
pledging, Ford common stock.
Governance Committee is comprised entirely • Annual Lead Independent Director fee: $50,000
of independent directors.
Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices
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Overview — Risk Factors — Supply Chain Management — Business Conduct — Data Protection, Privacy, and Cyber Security — Reporting Scope and Data Assurance
The Compensation, Talent and Culture Committee Risk Management and Internal Controls • Compliance Risk encompasses matters such as legal (for example, quality, supply chain, sales and service,
reviews and discusses key people-related business ESRS 2 GOV-5 and regulatory compliance (for example, Foreign financing and liquidity, product development and
strategies, including leadership succession planning, The oversight responsibility of the Board and its Corrupt Practices Act, environmental, Occupational engineering, labor, etc.).
culture, diversity and inclusion, and talent committees is supported by Company management Safety and Health Administration/safety, etc.).
• Strategic Risk encompasses somewhat broader and
development programs. and the risk management processes that are currently
• Reporting Risk covers Sarbanes-Oxley compliance, longer-term matters, including, but not limited to,
in place. Ford has extensive and effective risk
disclosure controls and procedures, and accounting technology development, environmental and social
management processes, relating specifically to
compliance. sustainability, capital allocation, management
compliance, reporting, operating, and strategic risks.
development, retention and compensation, competitive
These include: • Operating Risk addresses the myriad of matters related
developments, and geopolitical developments.
to the operation of a complex company such as Ford
We believe that key success factors in risk management
at Ford include a strong risk analysis tone set by the
Sustainability Governance Board and senior management, which is shown through
their commitment to effective top-down and bottom-up
communication (including communication between
Board of Directors management and the Board and committees), and active
Sustainability, Innovation and Policy Committee cross-functional participation among the Business
Segments and Skill Teams.
Executive Cabinet VP, Chief Sustainability, Environment and External Stakeholder Engagements We have institutionalized a regular Forecast, Controls
Ford Leadership Team & CEO Safety Officer, and Human Rights Officer Sustainability Partnerships and Risk Review, and Special Attention Review process
where the senior leadership of the Company reviews
the status of the business, the risks, and opportunities
Global Sustainability & ESG Meeting presented to the business (in the areas of compliance,
Monthly Executive Officer Review reporting, operating, and strategic risks), and develops
specific plans to address those risks and opportunities.
Strategic Priorities, Objectives & Performance The Enterprise Risk Management process adopted by
Integrating Sustainability into all our Operations the Company identifies the top critical enterprise risks
through engagement with senior management and the
Board of Directors. Once identified, each of the top risks
Automotive Safety Ford Fund Global Manufacturing Policy is validated and assigned an executive risk owner who
Communications Ford Land Human Resources Product Design & Development is responsible for overseeing risk assessment, developing
Diversity, Equity & Inclusion Ford Pro Investor Relations Quality mitigation plans, and providing regular updates.
Sustainability Environmental Quality General Counsel Marketing Research & Innovation The Enterprise Risk Management process also engages
Finance Global Data Insights Model e Supply Chain Business Segments and Skill Teams to determine which
Ford Blue & Analytics (GDI&A) People Matters Treasury of the enterprise risks are most relevant to their specific
Ford Credit objectives and identify any additional risks that can be
managed at a lower level in the organization.
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130
Overview — Risk Factors — Supply Chain Management — Business Conduct — Data Protection, Privacy, and Cyber Security — Reporting Scope and Data Assurance
All identified Enterprise Critical Risks are evaluated for their Management Processes
exposure to related geopolitical risk and climate change
Board Committees Sustainability, Innovation and Policy Committee
impacts. The Audit Committee and Board annually review
• Meets at least three times a year
the process to update the list of critical risks and monitor
• Primary responsibility for assessing the Company’s progress on strategic economic, product safety, and environmental and social issues, as
risk movement and emerging trends, and the Enterprise
well as the degree to which sustainability principles have been integrated into the various skill teams
Risk Management team also benchmarks the annual risk
• Reviews and advises on the Company’s pursuit of innovative policies and technologies that promote product safety, improve environmental
assessment with outside sources to ensure the Company’s
and social sustainability, and seek to enrich our customers’ experiences, increase shareholder value, and lead to a better world
assessment is up to date with external risk developments.
• Reviews the Integrated Sustainability and Financial Report Summary as well as any Company initiatives related to sustainability and innovation
The full Board of Directors has overall responsibility for Read the Charter of the Sustainability, Innovation and Policy Committee
the oversight of risk management at Ford and oversees Other Board committees: Audit; Compensation, Talent and Culture; Nominating and Governance; and Finance
operating risk management with reviews at each of its
Executive Management Vice President, Chief Sustainability, Environment and Safety Officer
regular Board meetings. The Board, the Sustainability,
• Primary responsibility for sustainability issues
Innovation and Policy Committee, the Compensation,
• Oversees the Sustainability and Vehicle Environmental Matters group, the Environmental Quality Office, the Vehicle Homologation and
Talent and Culture Committee, the Finance Committee,
Compliance group, and the Automotive Safety Office
and the Audit Committee all play a role in overseeing
• Leads a multi-disciplinary executive-level team that oversees actions in response to our sustainability strategies and integration and issues
operating and strategic risk management.
related to our We Are Committed to Protecting Human Rights and the Environment policy
The Audit Committee assists the Board of Directors in • Human Rights Policy Officer
overseeing compliance and reporting risk, cybersecurity risk, Other executive and group vice presidents across our functional areas also have responsibility for sustainability-related issues. These include
and the Enterprise Risk Management process itself. The our Chief People and Employee Experience Officer and our Chief Diversity Officer
Audit Committee receives regular updates on cybersecurity Function Areas Sustainability and Vehicle Environmental Matters
practices, as well as cybersecurity and information • Coordinates our Company-wide sustainability strategy and activities
technology risks from the Chief Information Security Officer. • Leads our sustainability reporting and stakeholder engagement
The Sustainability, Innovation and Policy Committee • Collaborates with other functional areas and skill teams to integrate sustainability throughout the Company
assists the Board of Directors in overseeing environmental
and social sustainability risks. The Compensation, Talent Oversight of Risk Management
and Culture Committee assists the Board of Directors in
Compliance and Reporting Operating and Strategic
overseeing risks related to compensation and people-
related business strategies, including leadership Ford Board Oversight Audit Committee Sustainability, Innovation and Policy Committee
succession and culture, diversity, and inclusion. Compensation, Talent and Culture Committee
Finance Committee
The Board and the appropriate committees also
Audit Committee
periodically review other policies related to personnel
matters, including those related to sexual harassment Ford Management Day to Day Compliance Reviews Business Segments and Skill Teams
and anti-retaliation policies related to whistleblowers. Sarbanes-Oxley Compliance Forecast, Controls, and Risk Review
Internal Controls Special Attention Review
The specific responsibilities of each committee are
Disclosure Committee Industrial Platform/Software, Product and Services, Strategy, Business Ops Review, and People Forums
set forth in their charters, which are available on our
corporate website.
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Business Conduct
Government Regulations, Policy, and Engagement
As a purpose-driven company, it’s Political Spending Process Lobbying Activities Trade Associations and Memberships
ESRS G1-5 ESRS G1-5
imperative that our advocacy is aligned Ford supports a broad range of trade associations
Ford does not contribute corporate funds directly to Our advocacy efforts are guided by our Chief Policy and coalitions to enhance our understanding of,
with our values. Engagement with political candidates, campaigns, or political organizations Officer. In the United States, we submit all lobbying and advocacy for, U.S. policy issues. These include:
governmental officials and agencies in the U.S.; nor does the company employ its resources to reports as required by the U.S. House of Representatives
• 5G Automotive Association
plays a key role in shaping the help elect candidates to public office, even when and the U.S. Senate. These reports are publicly available.
permitted by law. Ford does not take a position All PAC donations are documented through SEC • American Automotive Policy Council
regulations and legislation that govern • Alliance for Automotive Innovation
for partisan political purposes, that is, specifically for the regulations. Our day-to-day Government Affairs activities
our business now and into the future. purpose of advancing the interest of a political party or are not reported. However, we consistently meet with • Autonomous Vehicle Industry Association
candidate for public office. However, with the approval elected officials on the federal, state, and local levels • Center for Climate and Energy Solutions’ Business
We are committed to transparency about the principles
of the Office of the Chief Executive, contributions may and participate in trade organizations. Environmental Leadership Council
that govern our participation in the political process.
be made to support or oppose a state or local ballot • Climate Leadership Council
Ford participates in the political process to support Trade Associations and Memberships Focusing • Electric Drive Transportation Association
proposal if the issue is of significant interest or
policies on the local, state, national, and international on U.S. Policy Issues • National Association of Manufacturers
importance to Ford provided that such contributions
level that are economically, environmentally, and socially are permitted by law. To advance our voice on key issues, we collaborate with • U.S. Chamber of Commerce
sustainable for our company, our customers, and their a broad range of coalitions, industry groups, and trade
Ford’s Chief Government Affairs Officer has final Ford conducts internal reviews of associations’ lobbying
communities. We engage with the United States associations. We work with our partners to develop and
authority over contributions to Section 527 and 501(c)(4) positions, noting any discrepancies with our positions, and
Congress and the White House, as well as international promote sensible policies that benefit our company, our
organizations, 501(c)(6) association memberships, and our actions in response. The results of these reviews are
governments, on a wide range of policy issues, including industry, and society. These organizations often bring
other political spending permitted by company policy. shared with management. If an association’s position does
but not limited to: safety, emissions standards, vehicle diverse viewpoints to the debate, and sometimes their
Support for ballot initiative spending requires approval not align with our criteria, we respond appropriately, at
electrification and charging initiatives, autonomous and views are not shared by Ford. When necessary, we have
of the Chief Executive Officer. The employee-led Political times advocating for our position independently.
connected vehicle technologies, data access, taxes, trade, exercised our right to make our own position clear and
manufacturing, transportation, and labor. We advocate Contributions Committee of Ford’s political action at times have taken an alternative path. Policy Framework
for consistent policies at all levels to help us achieve our committee (Ford PAC) oversees PAC spending.
Climate Change Our Policy framework was created to advance Ford’s
business, environmental, and employment objectives. The Nominating and Governance Committee of Ford’s business objectives while vindicating the company’s
Avoiding the worst consequences of climate change
We encourage all employees to become engaged in Board of Directors has responsibility for evaluating, requires collaboration with multiple partners and values. The framework leverages the entire policy team,
their communities and participate in the political process monitoring, and making recommendations to the full organizations in the public and private sectors to drive comprised of Environmental and Safety Compliance,
as private individuals. We respect the right of each Board with respect to all corporate governance policies timely progress. We are working together to address Government Affairs, the Office of General Counsel,
employee to use personal time as they choose and to and procedures, including governance of political challenges including barriers to electric vehicle adoption, Privacy, and Security.
decide the extent and direction of their political activities. engagement. The Committee annually reviews government regulations, economic factors, and the This structure empowers the teams to function as one,
contributions and membership decisions made by the availability of carbon-free electricity and renewable fuels. contributing the expertise of their respective professional
It’s important that our management team keeps Company in the following areas: disciplines, unified throughout the policy organization.
informed on governmental matters affecting Ford’s Through active participation, we can encourage groups
• Local, state, federal, and international memberships Ford’s ambitious Ford Policy Agenda, which sets forth
interests. Where appropriate, they are expected to help to shift towards our progressive climate change strategy,
representing affiliations with key coalitions and industry detailed policy missions to defend and advance Ford
formulate and present company positions on relevant shape policy, and drive the industry to change.
associations supporting the Company’s policy agenda. Motor Company’s interests, reflects this integration.
public issues. They also are expected to contribute to
fulfilling Ford’s responsibilities as a corporate citizen, • Corporate contributions to philanthropic and policy- Read More
including participation in constructive governmental related organizations supported by the Company. In the 2023 U.S. Political Engagement Report
activities on behalf of the company.
Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices
132
Overview — Risk Factors — Supply Chain Management — Business Conduct — Data Protection, Privacy, and Cyber Security — Reporting Scope and Data Assurance
Strengthening Our Global Data Privacy and About our data privacy practices on our website
Protection Initiatives
ESRS S4-4
We continue to adhere to the Automotive Consumer
Privacy Protection Principles developed by the Alliance
for Automotive Innovation.
Reporting Scope and Boundaries The consolidated financial statements in our Form 10-K
Consistent with GRI guidance on boundary setting, the have been audited by our independent registered public
data in this report covers all of Ford Motor Company’s accounting firm.
wholly and majority-owned operations globally, unless Ford’s 2023 greenhouse gas inventory (including Scope 1,
otherwise noted, and spans 2023 operations and 2 and 3) is third-party verified by an organization with a
vehicles. Boundaries for each material issue are noted Certification of Accreditation to ISO 14065:2013 by the
in our GRI Content Index. ANSI National Accreditation Board and will become
The CSRD requires disclosures against the European available at a later date. In addition, some manufacturing
Sustainability Reporting Standards (ESRS). Throughout operations, as required by regulation, are also third-party
the report you will see ESRS tags on some chapters or verified following the respective regulatory
sections, indicating which disclosures we are addressing requirements, such as EU-ETS. Find out more about EU-
in that section. We are voluntarily phasing in these ETS in our CDP Climate Response, section 11.1.
disclosures in the 2024 report, not all ESRS required Ford reports facility carbon dioxide equivalent (CO2e)
disclosures are included at this time. We are working emissions to national emissions registries or other
towards full CSRD reporting compliance in our 2025 authorities, including in the U.S., Canada, Mexico, South
Integrated Sustainability and Financial Report. Africa, China, Germany, Spain, and the U.K.
Where relevant, data measurement techniques, the bases Various environmental data is reported to regulatory
of calculations, and changes in the basis for reporting or authorities. Ford’s facility environmental data is managed
reclassifications of previously reported data are included using our Global Emissions Manager database and an
as footnotes. internally developed strategies management tool, which
For this report, we have followed the International <IR> provides a globally consistent approach to measurement
Framework of the International Integrated Reporting and monitoring. The kind of assurance used for each data
Council (IIRC) to provide a cohesive and comprehensive set is noted in the data charts.
approach to our corporate reporting. However, we remain
flexible and open to new approaches as the dynamic
reporting environment continues to evolve.
Data Assurance
Data in this report is subject to various forms of
assurance, as outlined below and noted in the data
tables. This report has been reviewed by Ford’s top
senior executives, as well as the Sustainability,
Innovation and Policy Committee and the Audit
Committee of the Board of Directors.
Performance
Data
In this section:
135 — Financial Highlights
135 — Products and Services
137 — Climate Change
145 — Circular Economy and End of Life
148 — Water Resource
149 — Human Rights
157 — Vehicle/Product Safety and Quality
158 — Human Capital Management
and Diversity, Equity, and Inclusion
164 — Employee Health and Safety
165 — Socioeconomic Contribution
and Community
166 — Supply Chain Management
Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices
135
Financial — Products and Services — Climate — Circular Economy — Water — Human Rights — Product Safety — Human Capital — Employee Health and Safety — Community — Supply Chain Management
Performance Data
Performance Data is organized by Products & Services, Environmental, Social, and Governance topics
Ford is beginning the transition to align our Integrated Sustainability and Financial Report with the European Union Corporate Sustainability Reporting Directive (CSRD) (EU 2023/2772 of 31 July 2023).
Refer to CSRD metric column and Appendix 1 for more information
Financial Highlights
Footnote CSRD Metric 2021 2022 2023
Financial Performance Methodology and Assumptions
Revenue ESRS 2 SBM-1 $ 136.3B $ 158.1B $ 176.2B Company adjusted EBIT, EBIT margin, free cash flow and earnings per
Net income/(loss) attributable to Ford Motor Company $ 17.9B $ (2.0)B $ 4.3B share — see Form 10-K, pages 75-78 for definitions and reconciliations
Company adjusted earnings before interest and taxes (EBIT) $ 10.0B $ 10.4B $ 10.4B to GAAP (U.S. Generally Accepted Accounting Principles).
Company adjusted earnings before interest and taxes (EBIT) margin 7.3% 6.6% 5.9%
Spanish Taxonomy — In accordance with the Annex I of the Commission
Company adjusted free cash flow $ 4.6B $ 9.1B $ 6.8B
Delegated Regulation (EU) 2021/2178 of July 6, we understand that
Adjusted earnings per share $ 1.59 $ 1.88 $ 2.01
Ford Spain is exempt from the calculation of the numerator of the
Income taxes paid/refunded $ 568M $ 801M $ 1,027M
operating expenses.
Taxonomy
Footnote CSRD Metric 2021 2022 2023
Spanish Taxonomy Key Performance Indicators
Turnover eligibility 1 73% 76% Available
July 2024
CapEx eligibility 1 100% 90% Available
July 2024
OpEx eligibility N/A N/A N/A
Turnover aligned 1 N/A 0% Available
July 2024
CapEx aligned 1 N/A 0% Available
July 2024
OpEx aligned N/A N/A N/A
Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices
136
Financial — Products and Services — Climate — Circular Economy — Water — Human Rights — Product Safety — Human Capital — Employee Health and Safety — Community — Supply Chain Management
Performance Data
— continued
Footnotes
1. In U.S. terms, Retail includes sales to private customers through
retail sales channels. In some markets/regions, this may be referred
to as Registrations
Performance Data
— continued
Climate Change
2035 Science Based Target initiative (SBTi) Greenhouse Gas (GHG) Reduction Targets Reference Information
Footnote CSRD Metric Value Methodology and Assumptions
Target — Scope 1 and Scope 2 GHG Emissions — Operations 1 E1-4 Read more about the methodology in Climate Change — Achieving Carbon
Target Year reduction from base year (percent) 76% Neutrality starting on page 59.
Base Year 2017
Greenhouse Gases (GHG) covered in Scope 1, 2, and 3 targets include CO2,
Base Year Value (metric tons of CO2e) 2 4,644,894
CH4, and N2O.
Target Year 2035
Target Year Value (metric tons of CO2e) 1,114,775
Share of Scope 1 emissions covered in base year (percent) 30%
Share of Scope 2 emissions covered in base year (percent) 70% Footnotes
1. Market-based value
Target — Scope 3 (Category 11) GHG Intensity — Vehicle Use E1-4
Target Year reduction of Scope 3, Category 11 from base year (percent) 2. Value includes all of Scope 1 and Scope 2 emissions
50%
Base Year 2019 3. The Scope 3 target covers vehicle use in the U.S., EU and U.K., and
Base Year Value (gCO2e/km) 330 China, representing the main regions where we operate
Target Year 2035
Target Year Value (gCO2e/km) 165
Target Coverage of Total Scope 3 emissions, base year (percent) 69%
Target Coverage of Scope 3, Category 11 emissions, base year (percent) 3 78%
Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices
138
Financial — Products and Services — Climate — Circular Economy — Water — Human Rights — Product Safety — Human Capital — Employee Health and Safety — Community — Supply Chain Management
Performance Data
— continued Methodology and Assumptions
Scope 1 and 2 calculations include all operations (manufacturing +
non-manufacturing).
Ford’s Scope 2 calculations use the EPA eGRID and International Energy
Agency (IEA) grid average emission factors and mixes, in line with the GHG
Climate Change — continued Protocol Scope 2 Guidance. As these emission factor sources treat biomass
for electricity generation as a zero emissions source, Ford also treats
Value Chain Greenhouse Gas (GHG) Emissions
biomass as a carbon-free electricity source in its calculations.
Footnote CSRD Metric 2021 2022 2023
Scope 1 GHG Emissions 1 E1-6 Read more about the methodology in Climate Change — Achieving Carbon
Neutrality starting on page 59; Further details on methodology,
Gross Scope 1 GHG emissions (metric tons CO2e) 1,069,907 1,197,739 1,108,815
assumptions and emission factors for all scopes can be found in our 2023
Percentage of Scope 1 GHG emissions from regulated emission trading schemes 2 — 13% 14%
CDP submission.
Scope 2 GHG Emissions (metric tons of CO2e) 1 E1-6 Scope 3 category 11 methodology includes vehicle emissions from an
Gross location-based GHG emissions — 2,557,258 2,389,387 energy-cycle (fuel and electricity) perspective, well-to-wheels (WTW),
Gross market-based GHG emissions 2,000,128 1,565,270 1,355,152 which includes both the production and consumption of the energy used
by the vehicles. Lifetime is defined as 150,000 miles (241,000 km) for light
Significant Scope 3 GHG Emissions (metric tons CO2e) 3 E1-6 duty vehicles and 185,000 miles (298,000 km) for heavy duty vehicles.
Total gross indirect Scope 3 GHG emissions 342,825,043 370,223,095 384,119,775 Read more on page 45 and 60.
Category 1 — Purchased goods and services — supplier emissions 45,957,880 40,523,517 43,018,074
Category 11 — Use of sold products — vehicle use (WTW) 8 289,146,167 319,568,185 332,412,213
Scope 3 Miscellaneous 4 7,720,996 10,131,393 8,689,489
Footnotes
Category 2 — Capital goods 2,283,630 3,692,787 2,250,884
Category 3 — Fuel and energy-related activities (not included in Scope 1 or 2) 620,502 749,237 749,237 1. 2023 Scope 1 and 2 data are preliminary and will be third-party
Category 4 — Upstream transportation and distribution 1,481,396 1,936,637 1,936,637 verified at a later date
Category 5 — Waste generated in operations 5,515 6,634 6,634 2. 2023 Scope 1 emissions for Emission Trading Schemes (ETS) are
Category 6 — Business travel 11,482 26,712 26,712 estimated and will be third-party verified according to the local
Category 7 — Employee commuting 484,506 564,852 564,852 requirements at a later date. Regulated emission schemes included in
Category 8 — Upstream leased assets 5 — — — this calculation are EU ETS, Ontario Emissions Performance Standards
Category 9 — Downstream transportation 6 — — — (EPS), and UK ETS
Category 10 — Processing of sold products 7 — — — 3. Preliminary estimates of 2023 Scope 3 GHG emissions. Final data will
Category 12 — End-of-life treatment of sold products 876,165 1,178,242 1,178,242 be available in July 2024 and reported to CDP. Scope 3 emissions for
Category 13 — Downstream leased assets 7 — — — 2022 and 2021 were reported and updated in the 2023 CDP report
Category 14 — Franchises 1,957,800 1,976,291 1,976,291
4. Miscellaneous Scope 3 emissions categories include upstream and
Category 15 — Investments 7 — — — downstream transportation and distribution, business travel, capital
goods, franchises, etc
Total GHG Emissions (metric tons of CO2e) 1, 3 E1-6
5. Included in Scope 1 GHG Emissions calculation
Total location-based GHG emissions — 373,978,091 387,617,977
345,895,078 372,986,104 386,583,742 6. Included in Scope 3 GHG Emissions category 4
Total market-based GHG emissions
7. Emissions are not relevant. See CDP report for further details
8. Category 11 values are calculated using well-to-wheels (WTW)
methodology and include light duty (LDV) and heavy duty (HDV). Read
more on page 60. 2021 and 2022 values have been updated to include
all regions and fleets
Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices
139
Financial — Products and Services — Climate — Circular Economy — Water — Human Rights — Product Safety — Human Capital — Employee Health and Safety — Community — Supply Chain Management
Performance Data
— continued
Ford China Corporate Average Tailpipe Emissions (g CO2/km) 4 4. The China import and domestic (involving our joint ventures) fuel
Ford (China) Import 253.12 263.31 283.26 consumption values are reported separately
Jiangling Motors Corporation (JMC) 1 218.28 209.27 200.63 5. Global fleet efficiency intensity and reductions (our SBTi target)
Changan Ford Automobile Corporation (CAF) 1 169.22 168.03 184.13 include both light duty (LDV) and heavy duty (HDV) vehicles in the
U.S., EU and U.K., and China, representing the main regions where we
Global Fleet Efficiency 1 operate
Well-to-wheels intensity (LDV and HDV) (gCO2e/km) 5 303 311 311 6. LDV includes cars and light trucks in U.S., M1 and N1 vehicles in EU and
Well-to-wheels intensity (LDV) (gCO2e/km) 6 254 250 251 U.K., and M1 vehicles in China
Well-to-wheels intensity (HDV) (gCO2e/km) 7 630 607 589
7. HDV includes Class 2b-3 vehicles and light heavy duty and medium
Percent reduction in well-to-wheels gCO2e/km intensity (LDV and HDV) since 2019 (SBTi) 5 E1-4 8% 6% 6%
heavy duty vehicles in U.S.
Percent reduction/(increase) in well-to-wheels gCO2e/km intensity (LDV only) since 2019 5% 6% 6%
Percent reduction/(increase) in well-to-wheels gCO2e/km intensity (HDV only) since 2019 (2)% 1% 4%
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Water Resources
Water
Footnote CSRD Metric 2021 2022 2023 Methodology and Assumptions
Water Usage Ford views the terms Reuse and Recycle as equal.
Global Water Use per Vehicle Produced (cubic meters) 3.75 3.51 3.48
Ford views the terms Consumption and Usage interchangeably.
Global Water Use by Source (million cubic meters)
City water 11.7 12.1 12.3
Surface water 0.1 0.1 0.1 Footnotes
Well water 2.4 2.9 3.2
1. 3.3 million cubic meters of freshwater
Total E3-4 14.2 15.1 15.6
2. Ford does not store water of any significant amount
Total Water Consumption and Intensity (million cubic meters) E3-4
Total Water Consumption in Areas at Water Risk 1 — — 3.3
Total Water Recycled — — 0.6
Total Water Reused — — 0.6
Total Water Stored 2 — — —
Changes in Water Storage 2 — — —
Freshwater Reduction
Reduction in absolute freshwater use (percent from 2019) — 21.7% 19.4%
Reduction/(increase) in absolute freshwater use (percent from previous year) — (6.8)% (2.9)%
Reduction in annual freshwater consumption since 2000 — 76.2% 75.5%
Water saved since 2000 (billion gallons) — 186.3 199.0
Amount of water use from an alternative water source in water scarce areas — 8% 9%
Water reused (percentage) — 6% 4%
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Human Rights
Corporate Human Rights Risk Assessments
Footnote CSRD Metric 2022 2023 Methodology and Assumptions
Human Rights Risk Assessments conducted (number) 1, 2, 4 26 48 To support our internal due diligence activities, we continue to rely on
Human Rights Risk Assessments conducted (percent) 2 50% 100% Self-Assessment Questionnaires from the Responsible Business Alliance
Human Rights Risk Assessments conducted since 2004 2, 3, 4 99 147 (RBA) to assess human rights risk in a quantitative process. The facility
assessments identify potential gaps in systems, policies, and practices
Supply Chain CDP Response Summary related to labor, health and safety, environment, and ethics in addition
to human rights. Assessments are conducted at Ford fully owned and
Footnote CSRD Metric 2022 2023
majority owned joint venture manufacturing facilities. Facility responses
Supplier Participation in CDP Questionnaires
are reviewed for accuracy by Global Sustainability, Labor Affairs, Office
Suppliers that responded to CDP Water Security (number) 258 323
of General Counsel (OGC), People Matters, Environmental Quality Office
Increase in supplier response to CDP Water Security from previous reporting year (percent) 31% 25%
(EQO), and Health and Safety.
Suppliers that responded to CDP Climate Change (number) 313 377
Increase in supplier CDP Climate Change responses from previous reporting year (percent) 19% 20% Starting in 2023, the assessments became a key component of Ford’s
updated risk management system compliant with the German Supply
Sustainability Training Chain Due Diligence Act.
Footnote CSRD Metric 2022 2023
Supply Chain Sustainability Training (number)
Ford Purchasing Employees Trained 844 406
Footnotes
Other Ford Employees Trained 2,647 400
1. One assessment may encompass multiple facilities based on factors
such as shared management and proximity
Supplier Training
Suppliers Trained (number) 5 979 1,632 2. Assessments are carried out at all of Ford’s global manufacturing
Direct engagements with Suppliers (number) 6 60 48 facilities, including majority-owned joint ventures
Ford led live webinars on responsible 3TG, cobalt, and mica due diligence (number) 133 133 3. The cumulative counts since 2004 include Ford and RBA assessments
Live webinars on country-level topics by Drive Sustainability (Ford support) (number) 7 258 160 4. The 2022 reported numbers in the 2023 Human Rights Progress
RMI eLearning training participation (number of suppliers) 102 58 Report and Integrated Sustainability and Financial Report on
RMI eLearning training participation (percent of invited suppliers) 18% 13% cumulative assessments conducted were found to be in error. The
reported count of 35 Human Rights Assessments (2022) and 109
Human Rights Assessments since 2004 have been updated to the
correct figure of 26 and 99 based on the outlined assumptions
respectively
5. Includes all RBA Academy Supplier training
6. Ford administered training to suppliers
7. Includes all supplier training, both live in person and in webinar form
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RBA Supplier On-Site Audit Findings — category non-conformances found in initial audits conducted (non-conformance type percent of total)
Management Systems 29% 28% 40% Footnotes
Labor 28% 38% 28%
Health and Safety 28% 27% 18%
Environment 11% 6% 7%
Ethics 3% 1% 3%
RBA Supplier On-Site Audit Findings — category non-conformances found in initial audits conducted (percent of non-conformance category)
Management System
Supplier Responsibility 24% 30% 20%
Risk Assessment and Risk Management 11% 9% 19%
Communication 6% 6% 13%
Company Commitment 1% 2% 8%
Documentation and Records 6% 1% 4%
Audits & Assessments 15% 15% 2%
Management Accountability and Responsibility 15% 17% 1%
Improvement Objectives 8% 8% 1%
Legal and Customer Requirements 7% 5% 1%
Training 3% 4% 1%
Worker Feedback and Participation 4% 2% 0%
Corrective Action Process 2% 1% 0%
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Environment
Hazardous Substances 30% 59% 65%
Air Emissions 14% 9% 19%
Materials Restrictions 5% 5% 19%
Energy Consumption and Greenhouse Gas Emissions 16% 18% 14%
Water Management 12% 0% 8%
Solid Waste 9% 0% 10%
Pollution Prevention and Resource Reduction 2% 5% 0%
Environmental Permits and Reporting 12% 4% 0%
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Footnote CSRD Metric 2021 2022 2023 1. Gap type as percent of total
Supplier Policy Gaps Identified in SAQ (percent) 1
Supply Chain Management 37% 49% 40%
Environment 21% 15% 27%
Working Conditions & Human Rights 5% 6% 11%
Responsible Sourcing of Raw Materials 1% 1% 9%
Business Ethics 22% 17% 5%
Health & Safety 12% 10% 3%
Company Management 2% 1% 5%
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Results from EV Battery Supply Chain audits (non-conformance type percent of total) 3 Footnotes
Management System 35% 46% 1. Number of suppliers identified in supply chain as of December 31,
Risk Assessment 23% 31% accounting for both newly identified and removed suppliers
Risk Mitigation 23% 10%
2. Percent of suppliers audited out of total identified suppliers as
Public Reporting 9% 10%
of December 31
Third party Audits 10% 4%
3. As defined by OECD Due Diligence Guidance for responsible supply
chains of minerals from Conflict-Affected and High Risk Countries
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Available Ford and Lincoln Nameplates With 5-star Overall Rating (percent) Footnotes
U.S. NCAP 71% 56% 56% 1. For 2022 CY and earlier reports, we reported only nameplates that
Euro NCAP 83% 57% 64% were awarded 5-star awards that calendar year. In 2023, we reported
China NCAP 2 67% 81% 37% the number of nameplates that have a valid 5-star rating to be
Australia ANCAP — — 71% consistent with reporting for other regions
2. For 2022 CY and earlier report, we only included the nameplates that
Safety Recalls were rated for China NCAP to determine percentage. In 2023, we
Number of safety recalls (Global) — 114 109 updated the calculation to be based on all nameplates in the market
Number of passenger vehicle recalls Global (million) — 11.2 7.8 to be consistent with reporting for other regions
Number of safety recalls (U.S.) 53 72 54
Number of U.S. passenger vehicle recalls (million) 5.4 8.7 6.9
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Supplier Diversity
Footnote CSRD Metric 2021 2022 2023
Total Purchases in the U.S. ($ Billion) 3
From minority-owned businesses $ 7.46 $ 8.01 Available
July 2024
From veteran-owned business $ 0.13 $ 0.15 Available
July 2024
From women-owned businesses $ 1.15 $ 1.79 Available
July 2024
From small businesses $ 5.00 $ 4.10 Available
July 2024
Total sourced in goods and services with diverse‑owned businesses in last year $ 9.70 $ 10.78 Available
July 2024
Total sourced in goods and services with diverse‑owned businesses to date $ 170.00 $ 180.00 Available
July 2024
Total purchase from diverse Tier 2 suppliers $ 3.00 $ 4.48 Available
July 2024
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Percentage of confirmed harassment allegations by region 5 6. For 2023, the Company Headcount source changed due to an internal
North America 0.25% 0.16% 0.04% HR system update. As a result, this impacted the percentage of the
South America confirmed harassment metrics
0.00% 0.05% 0.08%
Europe 0.39% 1.15% 0.02%
China 0.03% 0.00% 0.03%
International Markets Group (IMG) 0.14% 0.11% 0.01%
Total 6 0.20% 0.15% 0.03%
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Material Topics
Environment
Topic Subtopics Definition
Air, Water, and Soil Pollution • Pollution of air Minimizing emissions of substances of concern, including non-greenhouse gas emissions and microparticles through
• Pollution of water and soil Ford’s direct operations, downstream supply chain, or through the use of our products, that impact on air, soil and
• Microplastics water quality, atmospheric conditions, and/or human health.
• Substances of concern (inc. PMPs, VOCs, Ozone
Depleting Substances)
Biodiversity and Ecosystems • Land use change Minimizing environmental impacts through Ford’s direct operations and upstream and downstream of its value chain,
• Degradation of ecosystems including developing solutions to preserve biodiversity and restore ecosystems.
Circular Economy and End of Life • Recycled and renewable materials (resource inflows) Directing innovation towards developing sustainable materials for use in vehicles, including renewable and recycled
• Material recovery and recycling (resource outflows) materials, sustainable chemicals, and a reduction in substances of concern. Product, process, and material innovations
• Waste and end of life impacts should support the circular economy. Ensuring the appropriate management, recycling and disposal of Ford’s
operational waste and effluents produced both in manufacturing and on corporate premises.
Climate Change • Greenhouse Gas (GHG) Emissions (operations, supply Assessing and responding to the impact of climate-related risks and pursuing carbon neutrality through reducing CO2e
chain, and products) emissions from upstream and downstream activities, including Ford’s direct and indirect operations and logistics,
• Climate change impacts and resilience optimizing energy use through increasing access to affordable, reliable, and sustainable energy, and using alternative
• Fuel economy innovations and lower carbon fuels. Ford’s electric vehicle strategy is key to achieving climate change goals.
• Energy use and conservation
• Electric Vehicles, Batteries, and Charging
Infrastructure
Water Resource • Water consumption Minimizing environmental impacts through Ford’s direct operations upstream and downstream of its value chain,
• Water withdrawals including ensuring efficient water use, management, treatment and discharge, and developing solutions to preserve
• Water discharges biodiversity and restore ecosystems.
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Material Topics — CSRD Index — GRI Index — TCFD Index — SASB Index — UNGPRF Index — UN SDGs Index — Resources — Footnotes
Material Topics
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Topics are listed in alphabetical order within each category, not in order of priority.
Social
Topic Subtopics Definition
Customer Experience and Responsible Marketing • Responsible marketing and sales Maintaining customer satisfaction and loyalty through the quality of Ford’s customer service and experience, from
• Customer satisfaction interactions with dealers and vehicle purchase through vehicle ownership, maintenance, and updates. Committing to
• Access to quality information responsible and ethical advertisements, communications, and sales strategies.
Employee Health and Safety • Health and safety Ensuring the physical safety, mental health, and wellness of Ford’s employees is promoted, ensured, and maintained.
• Mental wellbeing and work-life balance
• Employee engagement and satisfaction
Human Capital Management and Diversity, Equity, • Equal treatment and opportunities for all Supporting the transition to a low-carbon future through promoting job creation, job retention, technical and career
and Inclusion • Job stability and security readiness, and training and development. This includes promoting diversity in all its forms, supporting the active
• Freedom of association and collective bargaining integration and fair treatment of all employees, upholding the legal rights and fundamental principles that regulate
• Talent attraction, growth, and development labor relations between workers and employers, and ensuring the physical safety and mental health and wellness of
employees.
Human Rights • Working conditions and labor rights We are committed to respecting human rights everywhere we operate and throughout our entire value chain. At all
• Human trafficking, child labor, and forced labor times respecting human rights and good labor relations throughout our value chain — from protecting the livelihoods
• Supply chain transparency of local and indigenous communities, to developing a responsible and transparent supply chain.
• Responsible material sourcing
• Community rights (including Indigenous People)
Product Safety and Quality • Product health and safety Designing and manufacturing vehicles that meet or exceed all applicable laws and regulations and do not represent
• Product quality harm or hazards to consumers. They will offer state-of-the-art passive and active safety features, as well as driver
assist technology to prevent or mitigate accidents.
Socioeconomic Contribution and Community • Volunteering and corporate philanthropy Leveraging Ford’s scale to help address societal challenges at a local level and strengthening local communities
Engagement • Disaster relief through targeted investment, positive engagement, volunteering, corporate philanthropy, and by partnering for
• STEM education and youth development sustainable development.
• Engagement with communities local to Ford
operations
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Material Topics
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Topics are listed in alphabetical order within each category, not in order of priority.
Governance
Topic Subtopics Definition
Business Conduct • Anti-corruption and anti-bribery Ensuring transparent and accountable corporate governance practices, with appropriate structures in place to combat
• Responsible tax corruption, bribery, and conflicts of interest and manage corporate risk while embedding ethical business practices.
• Corporate culture Integrity is promoted throughout operations, empowering employees to take responsibility for their own actions.
• Political engagement This is accompanied by regular, transparent reporting.
• Protection against retaliation
Data Protection, Privacy, and Cyber Security • Data Protection Management Responsibility of Ford to use employee and customer data, and artificial intelligence tools, responsibly. Data science
• Customer Privacy and analytics enables a better understanding of consumer behavior and should be harnessed to help maintain user
• Cybersecurity privacy and improve digital and physical asset security.
• Artificial Intelligence (AI) Ethics
Supply Chain Management • Supply chain resilience Ensuring supply continuity, capacity building, and improved performance, including business conduct, social,
• Supplier management environmental, and governance actions. To achieve this, potential supply chain risks must be understood with
measures taken to mitigate them.
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Material Topics — CSRD Index — GRI Index — TCFD Index — SASB Index — UNGPRF Index — UN SDGs Index — Resources — Footnotes
CSRD Index
ESRS 2 IRO-2
In 2024, Ford is beginning the transition to align our Integrated Sustainability and Financial Report with the Corporate Sustainability Reporting Directive (CSRD) (EU 2023/2772 of 31 July 2023). Additional disclosures will be included in the 2025
Integrated Sustainability and Financial Report for full CSRD compliance. Below are those disclosures included in this 2024 report.
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GRI Index
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This report is in accordance with the Global Reporting Initiative (GRI) Standards. To locate the topics and standards contained within the guidelines, and our responses to these standards, use the index below. For a detailed explanation of the
standards, visit the GRI website.
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TCFD Index
The table below identifies the actions taken by Ford in response to the 11 recommended disclosures of the Task Force on Climate-Related Financial Disclosures (TCFD).
STRATEGY: Disclose the actual and potential impacts of climate-related risks and opportunities on the organization’s business, strategy, and financial planning where such information is material.
a. Describe the climate-related risks and opportunities the organization has identified over the short, medium, and long term. Climate Change — Impacts, Risks, and Opportunities, pages 53-57
Risk Management and Internal Controls, pages 129-130
b. Describe the impact of climate-related risks and opportunities on the organization’s businesses, strategy, and financial planning. The Transition Plan — Climate Change Mitigation, pages 45-52
Achieving Carbon Neutrality, pages 59-69
Products and Services — pages 30-42
c. Describe the resilience of the organization’s strategy, taking into consideration different climate-related scenarios, including a 2°C Scenario / Resilience Analysis, pages 70-75
or lower scenario.
RISK MANAGEMENT: Disclose how the organization identifies, assesses, and manages climate-related risks.
a. Describe the organization’s processes for identifying and assessing climate-related risks. Climate Change — Impacts, Risks, and Opportunities, page 54
Accountable and Inclusive Governance, pages 127-130
b. Describe the organization’s processes for managing climate-related risks. Climate Change — Governance, page 49
Accountable and Inclusive Governance, pages 127-130
c. Describe how processes for identifying, assessing, and managing climate-related risks are integrated into the organization’s overall Climate Change — Governance, page 49
risk management. Accountable and Inclusive Governance, pages 127-130
METRICS AND TARGETS: Disclose the metrics and targets used to assess and manage relevant climate-related risks and opportunities where such information is material.
a. Disclose the metrics used by the organization to assess climate-related risks and opportunities in line with its strategy and risk The Transition Plan — Climate Change Mitigation, pages 45-49
management process. Achieving Carbon Neutrality, pages 59-69
b. Disclose Scope 1, Scope 2, and if appropriate, Scope 3 greenhouse gas (GHG) emissions and the related risks. Performance Data Tables — Value Chain GHG Emissions, page 138
c. Describe the targets used by the organization to manage climate-related risks and opportunities and performance against targets. The Transition Plan — Climate Change Mitigation, pages 45-49
Achieving Carbon Neutrality, pages 59-69
Performance Data Tables — 2035 Science Based Target initiative (SBTi) Greenhouse Gas (GHG) Reduction
Targets Reference Information, page 137
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Material Topics — CSRD Index — GRI Index — TCFD Index — SASB Index — UNGPRF Index — UN SDGs Index — Resources — Footnotes
SASB
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Index
The Sustainability Accounting Standards Board (SASB) connects businesses and investors to the financial impacts of sustainability. Our Integrated Sustainability and Financial Report 2024 marks the sixth time that Ford has reported against the
Automobiles Sustainability Accounting Standard under the SASB framework.
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UNGPRF Index
The United Nations Guiding Principles Reporting Framework is a comprehensive guide for companies to report on human rights issues in line with their responsibility to respect human rights. This responsibility is outlined in the UN Guiding
Principles on Business and Human Rights, the global standard in this field.
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UN SDGs Index
Contributing to the United Nations Sustainable Development Goals (UN SDGs) Find Out
(SDGs) – and the 169 targets that support them are intended to end poverty, protect the planet and ensure prosperity for all.
Our Priorities
Since 2016, Ford Motor Company has been a signatory to the UN SDGs and we remain committed to contributing to progress toward them. We have identified 10 SDGs where we can 8 DECENT WORK AND ECONOMIC GROWTH
10 REDUCED INEQUALITIES 11 SUSTAINABLE CITIES AND COMMUNITIES 12 RESPONSIBLE CONSUMPTION AND PRODUCTION 13 CLIMATE ACTION
make the greatest impact. Achieving them by 2030 will require multi-stakeholder collaboration at a local, national and international level, so we call on our stakeholders and partners
to join us as we strive to meet these ambitions. Within Ford, regular discussions involving our global sustainability team, various skill teams and the Sustainability, Innovation, and Policy
Committee of the Board of Directors help to examine our performance through the lens of the SDGs. The following pages include examples of how we are contributing to the SDGs and
where further information on these efforts can be found.
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Why is this a priority for Ford? Ford’s material topics Most relevant SDG targets Examples of Ford’s impact
We aspire to attain zero-emissions from our vehicles • Air, Water, and Soil Pollution 3.6: By 2020, halve the number of global deaths and injuries Accelerating Progress (Air, Water), page 17
and facilities to help improve air quality, and work • Employee Health and Safety from road traffic accidents Accelerating Progress (Safety), page 19
towards a future that is free from vehicle crashes and 3.9: By 2030, substantially reduce the number of deaths and
• Human Rights Carbon Neutrality Overview, pages 45-52
workplace injuries. A clean, healthy, and sustainable illnesses from hazardous chemicals and air, water and soil
environment; health and safety; and rights of • Product Safety and Quality Air, Water, and Soil Pollution, pages 80-81
pollution and contamination
Indigenous Peoples are salient human rights issues Water Resources, pages 82-84
for Ford. Ford cares about customer safety, and vehicle Product Safety and Quality, pages 99-103
safety will always be one of our highest priorities.
Employee Health and Safety, pages 110-112
We understand that for our own employees and
community members to reach their full potential, we Performance Data — Non-CO2 Tailpipe Emissions, page 144
must support their physical, mental and emotional Performance Data — Water Resources, page 148
health and wellbeing and maintain the highest levels Performance Data — Vehicle Safety, page 157
of safety throughout the value chain.
Performance Data — Employee Health and Safety, page 164
Read More
In Appendix 1 of Integrated Sustainability and Financial Report 2024 for definitions of material topics
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Material Topics — CSRD Index — GRI Index — TCFD Index — SASB Index — UNGPRF Index — UN SDGs Index — Resources — Footnotes
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4 QUALITY EDUCATION
Why is this a priority for Ford? Ford’s material topics Most relevant SDG targets Examples of Ford’s impact
Through continual, agile learning, we can support our • Human Rights 4.3: By 2030, ensure equal access for all women and men to Accelerating Progress (Human Rights), page 18
employees, suppliers, dealers and communities to keep • Socioeconomic Contribution and affordable and quality technical, vocational and tertiary education, Supporting a Just Transition, page 104
pace with a rapidly evolving world. Education and Community Engagement including university
Socioeconomic Contribution and Community Engagement, pages 116-119
training opportunities give people the best chance of 4.4: By 2030, substantially increase the number of youth and
fulfilling their potential, support capacity building in Performance Data — Community Engagement, page 165
adults who have relevant skills, including technical and vocational
our supply chain and prepare the next generation skills, for employment, decent jobs and entrepreneurship
of designers, engineers and technicians for the
4.7: By 2030, ensure that all learners acquire the knowledge and
challenges and changes in technology that lie ahead.
skills needed to promote sustainable development, including,
among others, through education for sustainable development
and sustainable lifestyles, human rights, gender equality,
promotion of a culture of peace and non-violence, global
citizenship and appreciation of cultural diversity and of culture’s
contribution to sustainable development
4.b: By 2020, substantially expand globally the number of
scholarships available to developing countries, in particular least
developed countries, small island developing States and African
countries, for enrollment in higher education, including vocational
training and information and communications technology,
technical, engineering and scientific programmes, in developed
countries and other developing countries
Read More
In Appendix 1 of Integrated Sustainability and Financial Report 2024 for definitions of material topics
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Material Topics — CSRD Index — GRI Index — TCFD Index — SASB Index — UNGPRF Index — UN SDGs Index — Resources — Footnotes
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5 GENDER EQUALITY
Why is this a priority for Ford? Ford’s material topics Most relevant SDG targets Examples of Ford’s impact
We aspire to support a diverse, equitable, and inclusive • Human Capital Management and 5.1: End all forms of discrimination against all women and Accelerating Progress (Human rights), page 18
workplace where each person is valued. Fair and Diversity, Equity and Inclusion girls everywhere Accelerating Progress (DEI), page 20
decent work; forced labor, child labor, and human • Human Rights 5.5: Ensure women’s full and effective participation and equal Human Capital Management and Diversity, Equity and Inclusion,
trafficking; and harassment and discrimination are opportunities for leadership at all levels of decision-making pages 104-109
salient human rights issues for Ford. Supporting and in political, economic and public life
sustaining a diverse, equitable and inclusive workplace Performance Data — Human Capital Management and Diversity, Equity,
5.b: Enhance the use of enabling technology, in particular and Inclusion, pages 158-163
includes ensuring women are equally represented at
information and communications technology, to promote the
all levels of our business and supporting initiatives
empowerment of women
that empower women and girls. The strongest
businesses promote diversity, equity and inclusion.
Read More
In Appendix 1 of Integrated Sustainability and Financial Report 2024 for definitions of material topics
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— continued
Why is this a priority for Ford? Ford’s material topics Most relevant SDG targets Examples of Ford’s impact
Water is critical to our manufacturing operations, so • Air, Water, and Soil Pollution 6.3: By 2030, improve water quality by reducing pollution, Accelerating Progress (Water), page 17
we manufacturing processes and use freshwater • Human Rights eliminating dumping and minimizing release of hazardous Air, Water, and Soil Pollution, page 80
only for human consumption. A clean, healthy and chemicals and materials, halving the proportion of untreated
• Water Resources Water Resources, pages 82-84
sustainable environment, which includes access to wastewater and substantially increasing recycling and safe reuse
safe drinking water and adequate sanitation, is a globally Performance Data — Water Resources, page 148
salient human rights issue for Ford. We work with our 6.4: By 2030, substantially increase water-use efficiency across
supply chain, especially in water-stressed locations, to all sectors and ensure sustainable withdrawals and supply of
reduce water consumption. freshwater to address water scarcity and substantially reduce
the number of people suffering from water scarcity
6.5: By 2030, implement integrated water resources management
at all levels, including through transboundary cooperation as
appropriate
6.6: By 2020, protect and restore water-related ecosystems,
including mountains, forests, wetlands, rivers, aquifers and lakes
6.b: Support and strengthen the participation of local communities
in improving water and sanitation management
Read More
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200
Material Topics — CSRD Index — GRI Index — TCFD Index — SASB Index — UNGPRF Index — UN SDGs Index — Resources — Footnotes
UN SDGs Index
— continued
Why is this a priority for Ford? Ford’s material topics Most relevant SDG targets Examples of Ford’s impact
We aspire to use 100 percent carbon-free electricity • Climate Change 7.2: By 2030, increase substantially the share of renewable Accelerating Progress (Energy), page 16
in all manufacturing by 2035 through a mix of wind, • Human Rights energy in the global energy mix Carbon Neutrality Overview, pages 45-52
solar power, nuclear, geothermal, biomass, and hydro. 7.3: By 2030, double the global rate of improvement in energy Climate Change Policies, page 58
A clean, healthy and sustainable environment, which efficiency
includes climate change and energy use, is a salient Achieving Carbon Neutrality, pages 59-69
human rights issue for Ford. As part of our Performance Data — Operational Energy Use, pages 141-142
commitment to address climate change, we recognize
the need to maximize energy efficiency in our
operations. This will be key to achieving carbon
neutrality no later than 2050.
Read More
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UN SDGs Index
— continued
Why is this a priority for Ford? Ford’s material topics Most relevant SDG targets Examples of Ford’s impact
We aspire to source only raw materials that are • Climate Change 8.2: Achieve higher levels of economic productivity through Accelerating Progress (Climate Change), page 15
responsibly produced. Fair and decent work; forced • Customer Experience and Responsible diversification, technological upgrading and innovation, including Accelerating Progress (Human Rights), page 18
labor, child labor, and human trafficking; health and Marketing through a focus on high-value added and labour-intensive sectors
Accelerating Progress (Safety), page 19
safety; and impacts of EV transition are salient human 8.5: By 2030, achieve full and productive employment and decent
• Employee Health and Safety Accelerating Progress (DEI), page 20
rights issues for Ford. With thousands of employees, work for all women and men, including for young people and
and many more in our supply chain, we strive to • Human Capital Management and Products and Services, pages 31-42
persons with disabilities, and equal pay for work of equal value
ensure all our activities comply with local laws and Diversity, Equity, and Inclusion
8.7: Take immediate and effective measures to eradicate forced Human Rights, pages 88-98
our own commitments. We respect the different • Human Rights
labour, end modern slavery and human trafficking and secure Human Capital Management and Diversity, Equity and Inclusion,
cultures and beliefs of our team members, customers, • Supply Chain Management the prohibition and elimination of the worst forms of child labour, pages 104-109
and the communities we serve.
including recruitment and use of child soldiers, and by 2025 end Employee Health and Safety, pages 110-112
child labour in all its forms
Socioeconomic Contribution and Community Engagement, pages 116-119
8.8: Protect labour rights and promote safe and secure working
Supply Chain Management, page 125
environments for all workers, including migrant workers, in
particular women migrants, and those in precarious employment Performance Data — Human Rights, pages 149-156
Performance Data — Remuneration, page 162
Performance Data — Supplier Diversity, page 162
Performance Data — Community Engagement, page 165
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UN SDGs Index
— continued
10 REDUCED
INEQUALITIES
Why is this a priority for Ford? Ford’s material topics Most relevant SDG targets Examples of Ford’s impact
We aspire to support a diverse, equitable, and inclusive • Business Conduct 10.3: Ensure equal opportunity and reduce inequalities of Accelerating Progress (Human Rights), page 18
workplace where each person is valued. Fair and • Human Capital Management and outcome, including by eliminating discriminatory laws, policies Accelerating Progress (DEI), page 20
decent work; harassment and discrimination; and the Diversity, Equity, and Inclusion and practices and promoting appropriate legislation, policies
Human Capital Management and Diversity, Equity and Inclusion,
rights of Indigenous Peoples are salient human rights and action in this regard
• Human Rights pages 104-109
issues for Ford. We respect the different cultures and 10.4: Adopt policies, especially fiscal, wage and social protection
beliefs of our team members, customers, and the Transparency, Business Ethics and Integrity, page 126
policies, and progressively achieve greater equality
communities we serve. Accountable and Inclusive Governance, pages 127-130
Performance Data — Remuneration, page 162
Read More
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Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices
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Material Topics — CSRD Index — GRI Index — TCFD Index — SASB Index — UNGPRF Index — UN SDGs Index — Resources — Footnotes
UN SDGs Index
— continued
11 SUSTAINABLE CITIES
AND COMMUNITIES
Why is this a priority for Ford? Ford’s material topics Most relevant SDG targets Examples of Ford’s impact
We aspire to drive human progress by providing • Business Conduct 11.2: By 2030, provide access to safe, affordable, accessible and Accelerating Progress (Access), page 20
mobility and accessibility for all. A clean, healthy, and • Climate Change sustainable transport systems for all, improving road safety, Products and Services, pages 31-42
sustainable environment; health and safety; impacts notably by expanding public transport, with special attention
• Connected Vehicles and Digital Carbon Neutrality Overview, pages 45-52
of EV transition; and the rights of Indigenous Peoples to the needs of those in vulnerable situations, women, children,
Services Achieving Carbon Neutrality, pages 59-69
are salient human rights issues for Ford. This will persons with disabilities and older persons
require innovative new technologies and services • Data Protection, Privacy, and Cyber Our Approach to Waste Management, page 78
11.6: By 2030, reduce the adverse per capita environmental impact
that will help address a host of challenges from Security
of cities, including by paying special attention to air quality and Air, Water, and Soil Pollution, pages 80-81
congestion to poor air quality. • Employee Health and Safety municipal and other waste management Product Safety and Quality, pages 99-103
• Human Rights
Data Protection, Privacy, and Cyber Security, page 132
• Product Safety and Quality
Performance Data — Non-CO2 Tailpipe Emissions, page 144
Performance Data — Waste, pages 145-147
Performance Data — Vehicle Safety, page 157
Read More
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Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices
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Material Topics — CSRD Index — GRI Index — TCFD Index — SASB Index — UNGPRF Index — UN SDGs Index — Resources — Footnotes
UN SDGs Index
— continued
12 RESPONSIBLE CONSUMPTION
AND PRODUCTION
Why is this a priority for Ford? Ford’s material topics Most relevant SDG targets Examples of Ford’s impact
We aspire to eliminate single-use plastics from our • Biodiversity and Ecosystems 12.2: By 2030, achieve the sustainable management and efficient Accelerating Progress (Materials, Waste), page 16
operations by 2030, reach true zero waste to landfill • Circular Economy and End of Life use of natural resources Accelerating Progress (Air, Water), page 17
across our operations and utilize only recycled or 12.4: By 2020, achieve the environmentally sound management of
• Climate Change Circular Economy and End of Life, pages 76-79
renewable content in vehicle plastics. A clean, chemicals and all wastes throughout their life cycle, in accordance
healthy, and sustainable environment and rights of • Human Rights Air, Water, and Soil Pollution, pages 80-81
with agreed international frameworks, and significantly reduce
Indigenous Peoples are salient human rights issues their release to air, water and soil in order to minimize their Biodiversity and Ecosystems, page 85
for Ford. Manufacturing vehicles requires the use adverse impacts on human health and the environment Human Rights, pages 88-98
of natural resources, some of which have a limited
12.5: By 2030, substantially reduce waste generation through Supply Chain Management, page 125
or finite supply.
prevention, reduction, recycling and reuse Performance Data — Non-CO2 Tailpipe Emissions, page 144
12.6: Encourage companies, especially large and transnational Performance Data — Waste, pages 145-147
companies, to adopt sustainable practices and to integrate
sustainability information into their reporting cycle
12.7: Promote public procurement practices that are sustainable,
in accordance with national policies and priorities
Read More
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Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices
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Material Topics — CSRD Index — GRI Index — TCFD Index — SASB Index — UNGPRF Index — UN SDGs Index — Resources — Footnotes
UN SDGs Index
— continued
Why is this a priority for Ford? Ford’s material topics Most relevant SDG targets Examples of Ford’s impact
We aspire to achieve carbon neutrality globally no • Climate Change 13.2: Integrate climate change measures into national policies, Financial Highlights — Sustainable Financing Framework Update, page 10
later than 2050 and in Europe by 2035. A clean, • Human Rights strategies and planning Accelerating Progress (Climate Change), page 15
healthy and sustainable environment and the impacts 13.3: Improve education, awareness-raising and human and Climate Change, pages 45-75
of an EV transitions are salient human rights issues for institutional capacity on climate change mitigation, adaptation,
Ford. Climate change is a global challenge that affects Government Regulations, Policy and Engagement, page 131
impact reduction and early warning
us all. Emissions from our operations and the use of Performance Data — Climate Change, pages 137-144
our vehicles contribute to climate change, negatively 13.a: Implement the commitment undertaken by developed-
impacting people and communities. country parties to the United Nations Framework Convention on
Climate Change to a goal of mobilizing jointly $100 billion annually
by 2020 from all sources to address the needs of developing
countries in the context of meaningful mitigation actions and
transparency on implementation and fully operationalize the
Green Climate Fund through its capitalization as soon as possible
In Appendix 1 of Integrated Sustainability and Financial Report 2024 for definitions of material topics
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Material Topics — CSRD Index — GRI Index — TCFD Index — SASB Index — UNGPRF Index — UN SDGs Index — Resources — Footnotes
Resource List
Form 10-K
1. Effective in 2023, Salaried Workforce data is reported service locations, and not all Xcel Energy customers 15. SiriusXM trial subscription will stop at the end of the and modem activation. Equipped vehicles come with
as Headcount (number of heads) and does not or projects will qualify. Xcel Energy EVSI program trial period. Trial is non-transferable. If you do not wish either a 90-day trial or a 2-year, 3-year, or 4-year
include consolidated joint venture employees in this terms and conditions will apply. to enjoy your trial, cancel by calling the number below. BlueCruise Connected Service plan, after which
report for all periods presented, while it is reported Service subject to the SiriusXM Customer Agreement purchase is required. See ford.com/bluecruise or your
12. Based on 45% highway, 55% city driving, and 15,000
as Full-Time Equivalent (FTE) and includes and Privacy Policy; visit www.siriusxm.com for full terms Lincoln retailer for more details. BlueCruise driver-
annual miles.
consolidated joint ventures in the Ford 10-K. and how to cancel which includes online methods or assist features are supplemental and do not replace
2. See Form 10-K, pages 75-78 for definitions and 13. Don’t drive while distracted or while using handheld calling 1-866-635-2349. Services, content, and features safe driving or driver’s attention, judgment and need
reconciliations to GAAP (U.S. Generally Accepted devices. Use voice-operated systems when possible. are subject to device capabilities, location availability, or to control the vehicle. Only remove hands in a Hands-
Accounting Principles). Some features may be locked out while the vehicle active data connection. Fees, content, and features are Free Blue Zone. Always watch the road and be
is in gear. Eligible 2024 model year vehicles receive subject to change. Available in the 48 contiguous United prepared to resume control. See Owner’s Manual for
3. Based on 2023 CY industry-reported total sales. complimentary access to three years of Alexa Built-in States, D.C., and Puerto Rico (with coverage limits and details and limitations.
4. For North America and the EU. and one year of Lincoln Premium Connectivity capable receiver). Visit listenercare.siriusxm.com for
20. The overall increase in our absolute greenhouse gas
Connected Service plan which begins on the New most current service area information. Radio features,
5. Light duty (vehicles under 10,000 pounds). Available as (GHG) emissions from our preliminary results
Warranty start date. Cellular networks may limit content, and display may vary by vehicle. Some features
option on Super Duty XL which is a light duty vehicle. reported in our Integrated Report in 2022 was
functionality and prevent operation of connected may not be available while driving.
primarily due to a change in methodology where we
6. Additional plants that support our Automotive segment features. Android Auto™ and Apple CarPlay®:
16. Lincoln Connect, the Lincoln Way App, and increased the emissions scope to include the rest of
are operated by unconsolidated joint ventures of which Requires phone with active data service and
complimentary Connected Service are required for world, unregulated regions and fleets.
we are a partner. See 10-K for more information. compatible software. In-Vehicle Digital Experience
remote features, including over-the-air updates (see
does not control third-party products while in use. 21. The participation of Ford España, S.L. in Ford Mexico
7. Based on 2023 CY industry-reported total sales. Lincoln Way Terms for details). Lincoln Way App is
Third parties are solely responsible for their Holdings LLC has been reduced from 100% that it had
available via a download; message and data rates may
8. Calculated via peak performance of the electric respective functionality. until October 31, 2022 to 6.11% since November 1,
apply. Connected Service and features depend on
motors at peak battery power. Your results may vary. 2022, with the other new shareholder of Ford Mexico
14. Eligible 2024 model year vehicles receive three years compatible AT&T network availability. Evolving
Holdings LLC, the U.S. company Ford International
9. Based on original equipment manufacturers (OEM)/ of complimentary access to Alexa Builtin Connected technology/cellular networks/vehicle capability may
Capital LLC, holding 93.89% of its shares.
automotive manufacturers that sell all electric vehicles Service plan which begins on the New Vehicle limit functionality and prevent operation of connected
and have active charging networks. Department of Warranty start date. Access to Alexa Built-in requires features. Connected Service excludes Wi‑Fi hotspot. 22. According to Articles 19a or 29a of Directive 2013/34/EU,
Energy data as of January 15, 2024 used. Numbers an Amazon account, Lincoln Connect, activated as transposed in Spain by Article 49, paragraphs 1, 5, 6,
17. This feature is currently only available for Mustang
subject to change. FordPass,® compatible with select through the Lincoln Way App (see Lincoln Way Terms 7 and 8 of the Spanish Commercial Code, as well as by
Mach-E owners that meet the following criteria:
smartphone platforms, is available via download. for details). Some Alexa Built-in features require Article 262.5 of the Spanish Capital Companies Act.
2022 Model Year (MY) and newer 2021 MY with the
Message and data rates may apply. Lincoln Premium Connectivity Connected Service plan
following SYNC®** software versions (see Checking 23. Automotive sectoral pathway for 1.5°C is currently
or Wi‑Fi network. One-year complimentary service of
10. Octopus Energy blog — Where does our 100% green Your SYNC 4A Software Version): 21281_PRODUCT.244, not available.
Lincoln Premium Connectivity begins on the New
electricity come from? 22028_PRODUCT.358, 22034_PRODUCT.364 A
Vehicle Warranty start date. Connected Service and 24. The Scope 3 target covers vehicle use in the U.S.,
minimum iOS version of 15.4.
11. Xcel Energy’s EVSI programs, availability of the EVSI features depend on compatible AT&T network EU and UK, and China, representing the main regions
programs and the costs covered by the EVSI availability. Evolving technology/cellular networks/ 18. Data not available with plugin devices from third- where we operate.
Programs are subject to the Xcel Energy customer vehicle capability may limit functionality and prevent party providers.
25. FVV Fuel Study IV: Future Fuels
and EVSI project qualifying for, and enrolling in, an operation of connected features.
19. Available Feature. BlueCruise requires a Connected
Xcel Energy EVSI program approved for that location. 26. Lower-carbon electricity sources are needed for
Service plan, FordPass® App, or Lincoln Way® App,
Not all programs are available in all of Xcel Energy’s sustainable e-fuels.
Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices
208
Material Topics — CSRD Index — GRI Index — TCFD Index — SASB Index — UNGPRF Index — UN SDGs Index — Resources — Footnotes
27. The 2023 model year F-150 Lightning Platinum 31. Estimated city and highway MPG for ICEV Transit 32d. Lifetime miles for F-150 Lightning/Pickup 42. https://www.noheatstroke.org/
(ext. range) and Mustang Mach-E RWD (base range) (130-inch wheelbase, low roof) were analytically (225,865) and Mustang Mach-E/Car SUV (195,264)
43. Per 2023 J.D. Power 2023 Initial Quality Study (IQS)
city and highway kWh/100 mile were obtained derived using models based on EPA test procedures are defined in 40 CFR 86.1865 12(k)(4) and for E-
(dated 6/20/23, released 6/22/23) a. Models in IQS
from fueleconomy.gov/ and weighted 43% city, 57% and calculations for light-duty gasoline-powered Transit/Transit useful life (150,000) in 49 CFR
“Top 3”: https://www.jdpower.com/business/press-
highway to get real-world combined kWh/100 mile, vehicles set forth in 40 CFR Part 600, with inputs 535.5 (a)(10)(ii).
releases/2023-us-automotive-performance-execution-
following the 2022 U.S. EPA Automotive Trends reflecting 2021 3.5L PFDI gasoline-powered Transit
33. The CO2 savings from EVs are converted to an and-layout-apeal-study
Report methodology (epa.gov/automotive-trends): attributes including Average Loaded Vehicle Weight
equivalent gallons of gasoline not used based on the
F-150 Lightning Platinum (ext. range) 51.2 kWh/100 Engineering Test Weight (ALVW ETW). Applying the 44. Per 2023 J.D. Power 2023 U.S. Automotive
EPA Greenhouse Gas Equivalencies Calculator, which
miles and Mustang Mach-E RWD (base range) 33.2 EPA Trends Report real-world weightings of 43% city Performance, Execution And Layout (APEAL) Study
applies the factor 0.008887 metric tons CO2 per
kWh/100 miles. and 57% highway, gives combined real-world 17.0 (dated 7/18/23, released 7/20/23) https://
gallon of gasoline consumed. (epa.gov/energy/
MPG (523g CO2/mile). Estimates are illustrative only www.jdpower.com/business/press-releases/2023-us-
28. The estimated city and highway kWh/100 miles for E- greenhouse-gas-equivalenciescalculator).
and not representative of all drivers or circumstances. automotive-performance-execution-and-layout-
Transit (130-inch wheelbase, low roof) were analytically
Actual mileage will vary based on external 34. https://www3.weforum.org/docs/ apeal-study
derived using models based on EPA test procedures
environment (including ambient temperature), driving WEF_First_Movers_Coalition_Impact_Brief_2024.pdf
and calculations for lightduty electric vehicles set forth 45. Based on U.S. 2023 Q3 YTD data. Ford Mobile Service
behaviors, payload, vehicle use, vehicle, charging
in 40 CFR Part 600, with inputs reflecting E-Transit 35. Excerpts from “International Energy Agency | World is offered by participating dealers and may be limited
habits, lithium-ion battery age and state of health,
attributes including Average Loaded Vehicle Weight Energy Outlook 2022 & 2023”, Chapter 2. based on availability, distance, or other dealer-specified
vehicle upfits and alterations, and other factors.
Engineering Test Weight (ALVW ETW). Applying the criteria. Does not include parts or repair charges.
36. International Energy Agency | World Energy Outlook
EPA Automotive Trends Report real-world weightings 32. Lifetime carbon dioxide (CO2) emissions are calculated
2023, pp. 91-92, 295. 46. Rebuild by Design “Atlas of Disaster”
of 43% city and 57% highway, gives combined real- on a well-to-wheels basis, including CO2 from the
www.rebuildbydesign.org/atlas-of-disaster
world 62.3 kWh/100 miles. Estimates are illustrative ICEV tailpipe, ICEV fuel production, and EV electricity 37. Riahi, K., Rao, S., Krey, V. et al. RCP 8.5—A scenario of
only and not representative of all drivers or production. comparatively high greenhouse gas emissions.
circumstances. Actual mileage will vary based on Climatic Change 109, 33 (2011). https://doi.org/10.1007/ Google, Android, Google Play, Google Maps and other
32a.Tailpipe (tank-to-wheels) CO2 emissions are
external environment (including ambient temperature), s10584-011-0149-y marks are trademarks of Google LLC. Data rates may apply.
calculated from MPG by dividing 0.008887
driving behaviors, payload, vehicle use, vehicle,
metric tons CO2/gallon gasoline (EPA Automotive 38. According to the EU End-of-Life Vehicle Directive. For Amazon, Alexa and all related marks are trademarks
charging habits, lithium- ion battery age and state of
Trends Report) by the vehicle MPG and North America and the EU. of Amazon.com, Inc. or its affiliates.
health, vehicle upfits and alterations, and other factors.
multiplying by the lifetime miles.
39. Formal due diligence can be defined as in accordance Apple, Apple CarPlay, iPhone and Siri are trademarks
29. The U.S. average grid emissions are 416g CO2e/kWh,
32b.Fuel production CO2 emissions (well-to-tank) are with OECD due diligence for responsible supply of Apple Inc., registered in the U.S. and other countries.
which includes emissions from electricity generation,
calculated by multiplying the tailpipe CO2 by chains of minerals from CAHRAs.
upstream emissions for fuel feedstock production, and
0.25, following the 2022 U.S. EPA Automotive
transmission losses. Ref. 2022 U.S. EPA Automotive 40. Other includes recyclers and suppliers type unidentified.
Trends Report methodology (epa.gov/
Trends report (epa.gov/automotive-trends).
automotive-trends). 41. Driver-assist features are supplemental and do not
30. The comparable internal combustion engine vehicle replace the driver’s attention, judgment and need to
32c. Electricity production CO2 emissions are calculated
(ICEV) MPG are the preliminary 2022 model year control the vehicle. Pre-Collision Assist with
by multiplying the EV kWh/100 miles by the
segment-average real-world values for Car SUV (262g Automatic Emergency Braking detects pedestrians,
electric grid CO2-intensity 0.000416 metric tons
CO2/mile) and pickup (442g CO2/mile), from the 2022 but not in all conditions, and can help avoid or reduce
CO2e/kWh and multiplying by the lifetime miles.
U.S. EPA Automotive Trends report (epa.gov/ a collision. It does not replace safe driving. See
automotive-trends). Owner’s Manual for details and limitations.
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