Suppliers

ISO 14001 certification is expected of all "Q1," or preferred, production suppliers as well as nonproduction supplier facilities if the supplier has a manufacturing site or a nonmanufacturing site with significant environmental impacts that ships products to Ford.

We are continually improving our systems for influencing the integration of sustainability throughout our supply chain. We began this process by requiring all of our Q1 suppliers to obtain ISO 14001 certification for implementing and following an environmental management system in their facilities. In 2006, we attained our goal of having 100 percent of our Q1 production suppliers gain ISO 14001 certification for facilities supplying Ford. We also encourage our suppliers to extend the benefits of improved environmental performance by requiring their own suppliers to implement environmental management systems as well.

We work in cross-industry forums to encourage common approaches to the supply chain challenges of our industry. Since 2007, for example, we have been a member of the Suppliers Partnership for the Environment, an innovative partnership between automobile original equipment manufacturers, their suppliers and the U.S. Environmental Protection Agency. This partnership works to create new and innovative business-centered approaches to environmental protection and provides a forum for small, midsize and large automotive and vehicle suppliers to work together, learn from each other and share environmental best practices.

In 2006, we introduced our Aligned Business Framework (ABF), a strategy for working more closely with key suppliers to lower costs and improve quality. As part of this framework, ABF suppliers commit to managing and assuring proper working conditions and responsible environmental management in their facilities and in their supply chain.

Our work with ABF suppliers to date has focused on providing support and resources to help them align with Ford's Code of Basic Working Conditions and implement supporting processes, including responsible environmental management systems. Ford has committed to providing suppliers with a range of support and assistance based on our experiences in this area. During the fourth quarter of 2009, we held sustainability sessions in Dearborn, Michigan, and Cologne, Germany, which were attended by senior management from Ford and our ABF suppliers. Topics covered in these meetings included internal training development guidance, best practice sharing from suppliers on the topic of responsible working conditions, and environmental management in their own operations and their suppliers' operations.

We also held a workshop discussion on carbon measurement and management in the automotive value chain. In 2010 we will be conducting a pilot project with a select group of our suppliers that will involve the collection and reporting of greenhouse gas emissions data (see the Climate Change section for more information).