Materiality Matrix

Sustainability vision, governance and management

• Sustainability vision, governance and management

  Definition/Description	Includes governance structures, goals and indicators, business case, stakeholder engagement, reporting.
  Comments	Governance added to vision and management, reflecting growing investor and NGO interest in integrating sustainability into business processes.
  Trend (from previous analysis)	Same position
  More information	Letter from William Clay Ford, Jr. Letter from Alan Mulally Letter from Sue Cischke Sustainability Governance Sustainability Management Climate Change Governance Code of Basic Working Conditions How We Manage Vehicle Safety Environmental Management Sustaining Ford

Governance

• Ethical business practices

  Definition/Description	Concerns covered by codes of conduct, e.g., corruption and anti-competitive behavior.
  Comments	Among stakeholders, of most concern to investors.
  Trend (from previous analysis)	Same position
  More information	Ethical Business Practices Corporate Governance – Board of Directors Sustainability Governance

• Human rights strategy

  Definition/Description	Includes Ford’s policies and practices related to human rights.
  Comments	This issue has been newly categorized as a governance issue, reflecting its mainstreaming into Ford’s business.
  Trend (from previous analysis)	Lower level of concern to stakeholders
  More information	Human Rights in the Supply Chain: Ford’s Global Working Conditions Program

Public policy

• Global environmental regulation

  Definition/Description	Trend toward greater regulation and the cost of compliance.
  Comments	Continues to be of high importance to Ford.
  Trend (from previous analysis)	Same position
  More information	Climate Change Risks and Opportunities Climate Change Policy and Partnerships Public Policy Positions

Ford financial health

• Alignment of products with demand

  Definition/Description	Ford’s realignment of production capacity to lower levels of demand and the shift from trucks and SUVs to cars; supply-base rationalization; managing downsizing.
  Comments	Reduced in importance to stakeholders, still of highest concern to Ford.
  Trend (from previous analysis)	Lower level of concern to stakeholders
  More information	Sustaining Ford Delivering New Products

• Manufacturing efficiency

  Definition/Description	Includes reduced complexity of products, lean and flexible manufacturing, and flexible work rules.
  Comments	Key element of Ford’s ability to respond to changing markets; part of public discussion about aid to automakers.
  Trend (from previous analysis)	Same position
  More information	Investing in Operations Current Financial Health

• Quality

  Definition/Description	Product quality and customer service/customer relationship management.
  Comments	Lower concern to stakeholders may reflect Ford’s dramatically improved quality record.
  Trend (from previous analysis)	Lower level of concern to stakeholders
  More information	Economy: Progress Customer Satisfaction and Quality Economy Data: Product, Quality and Service

Ford future competitiveness

• Emerging markets products and services strategy

  Definition/Description	Ford’s approach to emerging markets: infrastructure development; human rights as an issue in growth markets; Ford’s impacts/contributions in emerging markets (other than products and services), including local sourcing, pollution, potential for partnerships.
  Comments	With projected growth in the Company’s Asia Pacific operations, would have increased in importance for the Company if it was not already at the highest level. Key drivers of the issue include congestion, shifting demographics, urbanization and social equity.
  Trend (from previous analysis)	Lower level of concern to stakeholders
  More information	Mobility Solutions Focus on Asia 2010 Sales and Highlights Case Study: Sustainable Growth in Asia

Water

• Water use

  Definition/Description	Includes impacts on water sources; water management, cost of water and discharges to water.
  Comments	Particular concern in areas of water scarcity; issue gaining a higher public profile.
  Trend (from previous analysis)	Same position
  More information	Water Water Use Environment Data: Water Use

Climate change

• Cleaner vehicle technology

  Definition/Description	Ford’s development of low-carbon technologies, including hybrids, electric vehicles, clean diesel, fuel cells; also emerging technologies like nanotechnology.
  Comments	Lower stakeholder interest, may reflect increased action from automakers in this area.
  Trend (from previous analysis)	Lower level of concern to stakeholders
  More information	Ford’s Sustainable Technologies and Alternative Fuels Plan Vehicle Delivering More Fuel-Efficient Vehicles Products

Operations

• Operational environmental management

  Definition/Description	High-level environmental operational concerns, including environmental management, environmental compliance.
  Comments	Environmental compliance a concern to communities. Increased importance to Ford reflects management focus on achieving environmental targets.
  Trend (from previous analysis)	Increased in importance to Ford
  More information	Environmental Management Operations Greenhouse Gas Emissions Overview

• GHG emissions – operations

  Definition/Description	Includes cost of controlling GHG emissions.
  Comments	Less of a concern than GHG emissions from vehicles, but rated high for Ford and NGOs/stakeholders.
  Trend (from previous analysis)	Same position
  More information	Greenhouse Gas Emissions Overview Environment Progress and Goals Our Strategy: Blueprint for Sustainability Environment Data: Operational Energy Use and CO2 Emissions

• Other operational environmental issues

  Definition/Description	Includes spills, nuisances (noise), and pre- and post-production logistics.
  Trend (from previous analysis)	Increased in importance to Ford and stakeholders
  More information	Operations

Product

• Tailpipe emissions

  Definition/Description	Air-quality impacts of vehicle emissions other than GHGs; trend toward greater regulation.
  Comments	High concern to customers/NGOs/stakeholders; impact on Ford due to increased and inconsistent regulation.
  Trend (from previous analysis)	Same position
  More information	Non-CO2 Tailpipe Emissions Environment Progress and Goals Ford’s Sustainable Technologies and Alternative Fuels Plan Environment Data: Tailpipe Emissions

• Environmentally preferred materials

  Definition/Description	Cradle-to-cradle approach; use of renewable, recycled, recyclable materials.
  Comments	Formerly “sustainable materials.”
  Trend (from previous analysis)	Same position
  More information	Sustainable Materials

• Lifecycle assessment

  Definition/Description	Includes the need for defensible lifecycle assessment processes.
  Comments	New issue this year. Reflects growing interest in lifecycle assessment among consumers and other stakeholders, with a particular focus on GHG emissions and water.
  Trend (from previous analysis)	NEW
  More information	Design for Lifecycle Sustainability End of Life Water Lifecycle Vehicle CO2 Emissions

Workplace

• Workplace health and safety

  Definition/Description	Health and safety management systems; ergonomics.
  Comments	Emerging issue is managing health and safety impacts of downsizing.
  Trend (from previous analysis)	Same position
  More information	Workplace Health and Safety Human Rights Working Conditions in Ford Plants Society Data: Workplace Safety

• Employee morale and teamwork

  Definition/Description	Includes issues of employee satisfaction, development, recruitment and retention as well as increasing employee interest in sustainability.
  Comments	New sub-issues were added in this category including employee interest in working for a sustainable company and the need to engage employees in sustainability issues.
  Trend (from previous analysis)	Increased in importance to stakeholders
  More information	Supporting a Great Place to Work Fostering a Capable and Effective Workforce

• Employees/labor practices/decent work

  Definition/Description	Ford’s employment practices, including wages, wage ratios, benefits, permanent v. temporary positions; training and education; turnover; impact of aging workforce.
  Comments	High concern to communities and investors.
  Trend (from previous analysis)	Increased in importance to Ford
  More information	Employees Human Rights in the Supply Chain: Ford’s Global Working Conditions Program Restructuring Our Business

Community engagement

• Community engagement

  Definition/Description	License to operate, NGO relationships and specific community concerns like breast cancer, obesity, compliance.
  Comments	Increasing concern to Ford, lower concern to to communities and NGOs in this analysis. However, community interest in specific issues of engagement like water increased in this analysis.
  Trend (from previous analysis)	Increased in importance to Ford Lower level of concern for stakeholders
  More information	Communities