Industry and Cross-Industry Collaboration

We believe that collaborative action within our industry allows us to more effectively influence all levels of the automotive supply chain. We have taken an “open book” approach to our supply chain work, sharing best practices, challenges and opportunities with others in our industry. We primarily work through the Automotive Industry Action Group, or AIAG. The AIAG is a North American, member-based, nonprofit industry group specializing in supply chain issues. It supports industry efforts to establish a seamless, efficient and responsible supply chain. Member companies donate the time of individuals to work at the AIAG, which operates as a noncompetitive, open forum that is intended to develop recommendations and best practices for reducing complexity and ensuring alignment on common issues across the industry.

We work on supply chain sustainability issues through the AIAG’s Corporate Responsibility Committee. This committee currently focuses on five main issues: global working conditions, Conflict Minerals, greenhouse gases, chemicals management and reporting, and health care value. There are AIAG subcommittees for each of these issue areas and for other key issues. Ford staff chair three work groups: chemicals management and reporting, greenhouse gases, and environmental performance metrics. Ford has also historically contributed an “executive on loan” to the AIAG to support the industry’s work and share what we have learned from working on these issues within our own operations.

Focus Areas for Industry Cooperation

Work in partnership with the AIAG continues on several fronts. Member companies are:

• Exploring an industry response to raw materials sourcing and transparency challenges
• Providing common guidance and tools for responsible procurement
• Continuing to expand a factory-level supplier training program for a responsible supply chain
• Increasing supplier ownership of corporate responsibility issues through an expansion of engagement opportunities
• Developing resources and networks that will ensure the successful communication of responsible procurement expectations throughout the automotive supply chain

For all workstreams, the AIAG and the companies are actively reaching out to others in the automotive supply chain, including global automakers and heavy truck manufacturers, industry associations and major automotive suppliers, as well as participating in cross-sectoral initiatives. Broader participation will be needed to achieve the vision of an industry-wide approach to promoting supply chain sustainability.

For more about the corporate responsibility accomplishments and ongoing work of the industry through the AIAG, see their website.

In addition to our work through the AIAG, Ford is helping to address common issues of environmental and social responsibility in the automotive supply chain through active participation in several other industry and cross-industry associations and corresponding work groups, including:

• The UN Global Compact Advisory Group on Supply Chain Sustainability. This advisory group seeks to develop and promote tools and guidance for businesses on key issues and best practices in developing sustainable supply chains. Ford is one of approximately 20 stakeholders in this invitation-only group, and one of only two automotive companies. As part of this work we are one of the lead developers of an online portal of tools and resources designed to assist business practitioners in embedding sustainability in supply chains.

• CSR Europe Automotive Working Group on Supply Chain Sustainability. In 2013, Ford joined with seven other major automakers and CSR Europe, a leading European business network for corporate social responsibility, to create this working group. The primary goals of the group are to share experiences and information on sustainability issues in the automotive supply chain; develop and apply common tools; work together on common projects in order to improve sustainability in supply chains; and send a common message to supply chains concerning sustainability activities and requirements.