Supply Chain

To achieve its sustainability goals – from cutting the greenhouse gas emissions of its products and operations to protecting human rights – Ford needs the active support and participation of its suppliers. Within Ford's Purchasing Department, a Supply Chain Sustainability Group develops and implements strategy for engaging with suppliers on sustainability issues. The group also helps build capacity within the purchasing function to address sustainability issues through routine business processes.

For example, during 2008, the Supply Chain Sustainability Group piloted four enhanced training sessions for Ford purchasing personnel and quality engineers. More than 130 people received the training, which focused on implementing Ford's working conditions requirements. During 2009, Ford seeks to expand this training approach across the Global Purchasing organization.

Since 2005, Ford has been taking steps to rationalize and streamline our supply base through a strategic supplier strategy called the Aligned Business Framework (ABF). The strategy is designed to create a sustainable business model to increase mutual profitability, improve quality and drive innovation. What it means in practice is that we are working more closely and collaboratively with a smaller number of global strategic suppliers. Ford has approved a total of 65 ABF suppliers, 10 of which are owned by minorities or women.

We are working closely with our ABF suppliers to align our respective approaches to providing sound working conditions, as described in the Human Rights section. We are also working with ABF suppliers to address environmental issues such as the use of sustainable materials.

Currently, 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.

In 2006, we attained our goal of having 100 percent of our Q1 production suppliers gain ISO 14001 environmental management system certification for facilities supplying Ford. We also encourage our suppliers to extend the benefits of improved environmental performance by implementing similar requirements for environmental management systems in their own supply base.