Progress

During 2008, Ford strengthened its sustainability governance through establishment of a sustainability committee of the Board of Directors. At the executive level, Sue Cischke, Group Vice President, Sustainability, Environment and Safety Engineering, is responsible for developing and implementing sustainability strategy, supported by the Sustainable Business strategies group. Ms. Cischke reports directly to Ford's CEO and participates in the regular Business Plan and Special Attention Review meetings of Ford's most senior executives, helping to keep sustainability at the top of the agenda. Progress on key sustainability indicators is reviewed regularly by top executives. Executive compensation is affected by the Company's performance in a range of areas, including sustainability.

This system of governance and management, together with the structures, processes and management systems discussed in this section, integrates sustainability strategy into Ford's business in an unprecedented way.

During 2008, top executives reviewed several key sustainability issues, including Ford's product fuel economy and CO2 strategy, acceleration of the blueprint for sustainability (including the electrification strategy) and approach to sustainable mobility.

Our Board and top management also have access to some of the preeminent thought leaders in sustainability through the Transformation Advisory Council established by Bill Ford. The Council includes Paul Hawken, environmentalist, entrepreneur and author; Amory Lovins, renowned expert on energy efficiency and resource use; and Peter Senge, leader in the field of organizational development and system dynamics. These individuals came together with Ford experts twice during 2008 to help shape our thinking about future technologies and global trends. Their unique blend of skill and perspective helps Ford be the leader in sustainability and develop ideas to solve the challenge of energy independence and the threat of climate change. This year, for example, Paul Hawken helped us look at new approaches to electric mobility that improve efficiencies and reduce cost to the customer. Amory Lovins and his colleagues from Colorado advised us on how to build greener, more energy-efficient dealerships. And, Peter Senge assisted us in taking a systems thinking approach to operational and cultural issues.

This section of the report discusses Ford's overall and sustainability governance and its management of key sustainability issues.