Materiality Matrix

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14 material issues have been identified at this level

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Climate Change

Definition/Description	Ford’s strategy to reduce carbon emissions from products and operations; goals and targets; use of renewable energy and offsets.
Comments	Strongly related to other material issues; of increasing interest to government and investors.
Trend (from previous analysis)	Already at the highest level
More information	Climate Change Our Strategy: Blueprint for Sustainability Environment Delivering New Products Electrification: A Closer Look Facilities

Vehicle GHG emissions

Definition/Description	Ford’s product actions to meet its CO₂ target.
Comments	Increasingly driven by regulatory requirements as well as Ford’s voluntary product CO₂ goal; of increasing interest to government and investors.
Trend (from previous analysis)	Already at the highest level
More information	Climate Change Vehicle Environment Progress and Goals Environment Data: Fuel Economy and CO₂ Emissions

Fuel economy

Definition/Description	Increasingly global issue, but particular focus on Ford's U.S. fleet.
Comments	Increasingly driven by regulatory requirements as well as Ford’s voluntary product CO₂ goal; of increasing interest to government and investors.
Trend (from previous analysis)	Already at the highest level
More information	Environment Progress and Goals Delivering More Fuel-Efficient Vehicles Greenhouse Gas Emissions Overview Climate Change Risks and Opportunities Our Strategy: Blueprint for Sustainability Improving Fuel Economy Environment Data: Fuel Economy and CO₂ Emissions

Electrification strategy

Definition/Description	Ford’s strategy to deliver electric vehicles to the marketplace and work with partners to address infrastructure and utility interface issues.
Comments	Reflects growing interest in alternatives to fossil fuels and domestic energy and the challenges of transitioning from traditionally fueled vehicles to plug-in vehicles.
Trend (from previous analysis)	Already at the highest level
More information	Migration to Alternative Fuels and Powertrains Electrification: A Closer Look Public Policy Positions: Electrification

Definition/Description	Regulation of vehicle emissions globally, state-by-state regulation in U.S.; increasing stringency and inconsistency of regulation; challenges left by lack of U.S. federal climate legislation.
Comments	With passage of new CAFE requirements in U.S. and new EU requirements in Europe, focus is increasingly on economy-wide policy approaches.
Trend (from previous analysis)	Already at the highest level
More information	U.S. Climate Change Policy U.S. Greenhouse Gas and Fuel Economy Regulation European Climate Change Policy Climate Change Risks and Opportunities Emissions Trading Policy Greenhouse Gas Emissions Overview Public Policy Positions

Water strategy

Definition/Description	Includes growing recognition of water as a key sustainability issue, including water scarcity and risks, need for water risk assessments, and understanding of linkages between water and carbon.
Comments	New material issue this year, reflecting higher profile of this issue for Ford and stakeholders.
Trend (from previous analysis)	NEW
More information	Water Perspectives on Sustainability: Monica Ellis Water Use

Product competitiveness

Definition/Description	Ford’s strategy related to products and sales, including product mix, market share, and meeting customer demands, including for more fuel-efficient products.
Comments	A top concern for Ford and stakeholders. Reorganized and renamed since last materiality analysis.
Trend (from previous analysis)	Already at the highest level
More information	Product Competitiveness Delivering New Products

Risk and cost management

Definition/Description	Broad concerns about Ford’s financial performance, with a focus on costs and cost-related risks.
Comments	A top concern for Ford and stakeholders. Reorganized slightly and renamed since last materiality analysis. Includes health care legacy costs, labor costs, energy security and access to capital, formerly top-right issues on their own in the previous analysis.
Trend (from previous analysis)	Already at the highest level, though some of the specific issues have shifted up or down in importance.
More information	Sustaining Ford Economy Health as a Strategic Advantage Public Policy Restructuring Our Business Financing Our Plan and Improving Our Balance Sheet

Sustainable mobility

Definition/Description	Ford’s approach to increasing challenges of urban mobility, congestion, urbanization and mega-cities, as well as rural mobility and economic opportunity.
Comments	Reorganized – formerly under a stand-alone mobility category; now an element of Ford’s future competitiveness strategy.
Trend (from previous analysis)	Already at the highest level
More information	Mobility Solutions

Definition/Description	Active and passive safety; pedestrian safety; customer interest in and demand for safe vehicles; increasing regulation generally with focus on active safety; challenge of evolving in-vehicle technology.
Comments	Developed and emerging market issues differ.
Trend (from previous analysis)	Ford increasingly emphasizing market opportunity for safer products
More information	Vehicle Safety Public Policy Positions: Vehicle Safety Perspectives on Sustainability: Scott Belcher

Supplier relationships

Definition/Description	Includes importance of Ford’s financial variability to suppliers and vice versa, and importance of strong relationships as well as established policies and performance commitments.
Comments	Increased importance in this analysis, especially to Ford and suppliers.
Trend (from previous analysis)	Increased in importance to Ford and stakeholders
More information	Supplier Relationships

Definition/Description	Includes need to address carbon and water issues in supply chain relationships.
Comments	Largely a new issue from last analysis, reorganized and of higher importance to Ford and stakeholders.
Trend (from previous analysis)	NEW
More information	Supply Chain Environmental Sustainability Environmental Management: Suppliers

Sustainable raw materials

Definition/Description	Includes issues around conflict minerals, rare earth metals and other strategic materials, and overall impacts of raw material extraction on the environment, communities, geopolitics and Ford’s costs.
Comments	New issue this year reflecting increased prominence of these concerns.
Trend (from previous analysis)	NEW
More information	Sustainable Raw Materials Sustainable Materials Product Sustainability Index

Definition/Description	Issues covered by Ford’s working conditions code; need for industry cooperation.
Comments	Issues have been reorganized in this analysis under umbrella of supply chain sustainability. High interest to communities, suppliers and NGOs.
Trend (from previous analysis)	Already at the highest level
More information	Human Rights in the Supply Chain: Ford’s Global Working Conditions Program Perspectives on Sustainability: Sister Patricia Daly