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Notes to GRI Index

2. Organizational Profile

Element Notes
2.7 More detailed information on our products and services is reported on in our annual financial reporting including our 10-K and Annual Report.
2.8 Information on our scale is reported on in our annual financial reporting including our 10-K and Annual Report.
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4. Governance, Commitments and Engagement

Governance

Element Notes
4.4 Information on contacting our Board of Directors can be found at www.ford.com/about-ford/company-information/corporate-governance/contact-information/contact-board-829p
4.6 Ford's Code of Business Conduct and Ethics for Members of the Board Of Directors can be found at www.ford.com/doc/directors_code_of_ethics.pdf
4.8 Ford's Code of Conduct Handbook is publicly available at www.ford.com/about-ford/company-information/corporate-governance/corporate-governance-policies/governance-policy-803p
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5. Management Approach and Performance Indicators

Economic

Economic Performance

Element Notes
EC1 Information related to operating costs is referenced as "automotive costs of goods sold" in the Company's Annual Report on Form 10-K. Information related to payments to providers of capital is referenced as "cash paid interest expenses" and "stockholder dividends" in the Company's Annual Report on Form 10-K. Ford considers employee compensation proprietary.
EC4 Our local or regional operations sometimes enter into agreements with governments to receive incentives such as reduced taxes or fees in return for commitments to job creation or other economic development activities. The nature and magnitude of these agreements are not tracked centrally. Detailed discussion of this indicator was omitted from the report because it failed the materiality test.
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Market Presence

Element Notes
EC6 Ford does not track this information, because local sourcing has not appeared as an important issue in our materiality analyses. However, we use local suppliers everywhere we operate, and in several localities in which we operate, suppliers set up operations nearby to support Ford operations. In addition, the local economic development model described is aligned with our Supplier Diversity Development initiatives. Attributes of our Supplier Diversity Development initiatives include: economic development rationale, local employment opportunities and workforce development, supplier development and a considerable financial history of purchases from minority- and women-owned companies. These initiatives operate exclusively in the United States and are driven in part by compliance with federal requirements. Globally, a mandated Black Economic Empowerment Program also drives supplier development and local employment for Ford in South Africa.
EC7 Ford doesn't track this information, because our analysis determined that the procedures used for local hiring and proportion of senior management hired from the local community is not a material issue based on our materiality analyses. However, Ford's recruiting initiatives are designed to be inclusive and hire from all segments of the diverse populations and communities in which we live and work. Opportunities for employment and advancement are available on a nondiscriminatory basis – without regard to race, color, religion, age, gender, sexual orientation, national origin, handicap or veteran status. We take affirmative action in accordance with the law to have minorities and women represented appropriately throughout the workforce and to provide qualified handicapped persons, disabled veterans and veterans of the Vietnam era opportunity for employment and advancement.
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Indirect Economic Impacts

Element Notes
EC9 Our established accounting methods allow us to track expenditures for items like environmental protection and controls, safety investments, etc., but do not include methods for estimating costs associated with indirect economic, environmental or social costs and benefits. For example, during the last five years, we took charges to our consolidated income for engineering, research and development we sponsored in the following amounts: $7.3 billion (2008), $7.5 billion (2007), $7.2 billion (2006), $8.0 billion (2005), $7.4 billion (2004). Engineering, research and development is focused on improving the performance (including fuel efficiency), safety and customer satisfaction of our products, and to develop new products.
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Environmental

Materials

Element Notes
EN1 In our materiality analysis, the use of sustainable materials appears as a significant issue, and we provide extensive coverage of that issue. However, accounting for total amount of every material used has not been identified as a material issue for internal or external stakeholders.
EN2 We report on our use of recycled materials and our efforts to increase recycled content in our vehicles. However, accounting for the exact percentage of recycled materials used in all of our vehicles has not been identified as a material issue for internal or external stakeholders.
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Biodiversity

Element Notes
EN11 We believe that protecting biodiversity is an important issue, and we report on our efforts to increase and protect wildlife habitat. However, the location and size of land owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas is not material based on our materiality analysis.
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Emissions, Effluents and Waste

Element Notes
EN21 Significant discharges to water by type are not currently tracked at the corporate level. The Company is collecting baseline data on discharges to municipal wastewater treatment plants, and this data will be reported as soon as practical. In addition, the large majority of wastewater discharges are treated before discharge. However, detailed discussion of this indicator is not included in this report because it is not a material issue based on our materiality analysis.
EN22 This is an area in which Ford is increasing its tracking and reporting. We currently report on waste by type categorized into hazardous and non-hazardous. We also report on waste disposal to landfill. With our new GEM database, we are now tracking waste disposal methods beyond landfill (i.e., recycling, reuse, compost, incineration, other.) With this new data tracking tool, we will be able to more report fully on this metric in the next few years.
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Products and Services

Element Notes
EN27 In the United States, approximately 85 percent of vehicle materials are recycled, and in Europe it is higher because of take-back legislation. In other countries, the amount of materials reused is likely as high or higher. Based on our materiality analysis, reclamation of product packaging is not material for Ford.
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Overall

Element Notes
EN30 Our established accounting methods allow us to track expenditures for items like environmental protection and controls, but do not include methods for estimating costs associated with indirect economic, environmental or social costs and benefits. For example, during the last five years, we took charges to our consolidated income for engineering, research and development we sponsored in the following amounts: $7.3 billion (2008), $7.5 billion (2007), $7.2 billion (2006), $8.0 billion (2005), $7.4 billion (2004). Engineering, research and development is focused on improving the performance (including fuel efficiency) of our products, and to develop new products.
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Social: Labor Practices and Decent Work

Employment

Element Notes
LA1 Ford reports on the number of employees covered by collective bargaining agreements. The remaining elements of the indicator are not a material issue for Ford.
LA2 We do not report on turnover because the information is considered proprietary.
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Labor/Management Relations

Element Notes
LA4 Substantially all of the hourly employees in our Automotive operations in the United States are represented by unions and covered by collective bargaining agreements. Most hourly employees and many nonmanagement salaried employees of our subsidiaries outside the United States are also represented by unions. Approximately 208,000 Ford Motor Company employees belong to unions worldwide.
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Occupational Health and Safety

Element Notes
LA6 Approximately 75 percent of the Company's workforce globally are covered by the health and safety committees. This includes the entire manufacturing workforce and some staff organizations.
LA7 Does not include subcontracted workers.
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Training and Education

Element Notes
LA10 While Ford offers its employees a wide array of educational and training opportunities, the Company does not currently track the information needed to report on this indicator. We have reported on training related to several material issues; however, compiling average hours for all training is not considered material.
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Diversity and Opportunity

Element Notes
LA13 We do not report diversity data outside of the United States because diversity categories vary regionally. In addition, this data has not been identified as a material issue by our analyses.
LA14 We do not report on the ratio of basic salary of men to women because the information is considered proprietary.
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Social: Human Rights

Non-Discrimination

Element Notes
HR4 Ford does not report on the number of incidents of discrimination and actions taken because the information is considered proprietary.
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Social: Society

Anti-Competitive Behavior

Element Notes
SO7 Legal actions are described in the Company's Annual Report on the Form 10-K.
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Compliance

Element Notes
SO8 Additional information on fines for non-compliance with laws and regulations can be found in the Company's Annual Report on the Form 10-K.
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Social: Product Responsibility

Customer Health and Safety

Element Notes
PR2 Information on all legal procedings and incidents of non-compliance can be found in the Company's Annual Report on the Form 10-K.
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Products and Service Labeling

Element Notes
PR3 Ford's vehicles are subject to numerous labeling requirements that vary by country, region and state. We maintain compliance through our normal product requirement compliance systems. We report on the sourcing of components of our products on vehicle stickers. We report on safe use of the product or service in vehicle manuals. In Europe, we use an Eco-label that goes beyond legal requirements and also inform customers in the driver's manual about the impact of air conditioning on real-world fuel economy. Eco-labels also discuss substances that might produce an environmental or social impact. Ford of Europe also reports on disposal of products. In the United States, Ford makes vehicle dismantling guides available.
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Marketing Communications

Element Notes
PR7 Information on all legal procedings and incidents of non-compliance can be found in the Company's Annual Report on the Form 10-K.
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Compliance

Element Notes
PR9 Information on all legal procedings and incidents of non-compliance can be found in the Company's Annual Report on the Form 10-K. Detailed discussion of this indicator was omitted from the report because it is not considered material.
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