Ford's 10th Annual Sustainability Report Details Progress on Blueprint for Sustainability

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The 2008/2009 reported entitled “Blueprint for Sustainability: Our Future Works” updates the company’s progress in key areas of climate change, fuel economy, mobility, vehicle safety and human rights.

The report reaffirms Ford’s strong commitment to its sustainability strategy to support positive social change and reduce the environmental impact of its products and facilities while ensuring economically viable for the long term.

“Our economic and environmental goals are aligned. In fact, we believe that the best way for us to be more profitable is to make our business and products more sustainable,” said Bill Ford, executive chairman, Ford Motor Company.

Included in the report are sections dealing with climate change that summarize the company’s progress toward its CO₂ reduction goal, its approach to climate change policy, vehicle and fuel and technologies to achieve improved fuel economy for Ford products, the company’s accelerated electrification strategy, human rights initiatives and how the One Ford plan is addressing the economic challenges facing the industry today.

“We recognize these issues are increasingly important to our stakeholders, including our customers, investors and business partners,” said Sue Cischke, Ford group vice president, Sustainability, Environment and Safety Engineering. “We want them to understand that we will continue to pursue our sustainability agenda despite very challenging economic conditions.”

In the interest of the environment as well as cost savings, Ford has elected not to do a traditional print version of the report. The full report is now available online at www.ford.com/go/sustainability.

Sustainable Progress
Significant progress highlighted by Ford in its 10^th annual report for 2008/2009:

• Company remains on track to reach its goal to reduce by 30 percent the carbon dioxide (CO₂) emissions of its new U.S. and European vehicles by 2020, compared to the 2006 model year.
• Accelerated development of battery electric vehicles (BEV) and plug-in hybrids (PHEVs), which will be introduced between 2010 and 2012.
• Introduction of the Ford Fiesta ECOnetic model with the lowest CO₂ emissions of any family car sold in Europe at 98g/km
• Launch of two new hybrids in North America: Ford Fusion Hybrid and Mercury Milan Hybrid, the most fuel-efficient midsize sedans in North America at 41 miles per gallon in city driving.
• Introduction of EcoBoost^TM engine technology which uses direct injection and turbo charging to deliver up to 20 percent better fuel economy, up to15 percent fewer CO2 emissions and superior driving performance compared to larger-displacement engines.

Additional Highlights

• Vehicle quality continues to improve, with Ford now on par with the best in the business.
• Improved the energy efficiency of its North American facilities by 4.5 percent in 2008, resulting in savings of approximately $16 million.
• Received the most Top Safety Picks from the U.S.-based Insurance Institute for Highway Safety of any automaker and introduced a range of safety innovations to its vehicles globally in 2008. In the most recent Euro NCAP assessments, the Ford Kuga, Fiesta, European Focus, Mondeo, S-MAX and Galaxy received best-in-class, five-star adult protection and four-star child protection ratings.
• Conducted human rights and working conditions training sessions in China and Mexico, in conjunction with the Automotive Industry Action Group and other automakers that reached nearly 1,000 Tier 1 suppliers and 7,700 Tier 2 suppliers and were cascaded to more than 66,000 individuals.
• Joined the United Nations Global Compact in April of 2008, reinforcing its commitment to human rights and other important responsibilities of global companies.

Sustainable Integrity
To ensure its Sustainability Report’s thoroughness and accuracy, Ford worked with a team from Ceres, a coalition of investors, environmental groups and other public interest organizations working with companies on sustainable business practices. The Ceres stakeholder team is an independent group of individuals drawn primarily from the Ceres coalition and represents a range of constituencies that have expertise in environmental, social and governance issues.

“Ford’s reporting has benefited greatly from open and honest dialogue with shareholders, environmental organizations and other key stakeholders regarding a variety of sustainability issues, including global climate change and good governance practices,” said Carol Lee Rawn, senior manager of the Transportation Program at Ceres, who led the Ceres stakeholder team that advised Ford on its Sustainability Report.

Ford first issued a Corporate Citizenship Report in 1999 to address the company’s initiatives regarding social, economic and environmental issues. As industry, business environment and social expectations continue to evolve, so does the report. In 2004, it was renamed the Sustainability Report to better reflect its emphasis on the business case for its approach to environmental and social issues. This year’s complete report can be found at www.ford.com/go/sustainability.