Materiality Matrix
High Impact, Medium Concern
20 material issues have been identified at this level
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 |
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 |
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 |
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 |
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 |
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 |
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 |
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 |
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 |
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 |
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 |
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 |
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 |
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 |
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 |
Lifecycle assessment
| Definition/Description | Includes the need for defensible lifecycle assessment processes. |
|---|---|
| Comments | Issue added when we last updated our materiality analysis for the 2010–11 report. 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 |
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 |
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 |
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 |
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 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 to stakeholders |
| More information |