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Year in Review

Ford’s Goals, Commitments and Status

This table summarizes Ford’s goals, commitments, targets and progress in our material issue areas and other important performance areas. Please see the data sections for our complete data reporting and data notes.

  • Key:
  • Achieved
  • On Track
  • In Process
  • Not on Track

Financial Health1

Goal/Commitment 2013 Progress Status
In 2012, we created a suite of new near-, mid- and long-term goals under our “Blueprint for Mobility.”

Continued to explore what transportation will look like in 2025 and beyond, and identified the types of technologies, business models and partnerships needed to get us there.

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  1. Our Financial Health goals have been re-aligned to correspond with our Mid-Decade Outlook, details of which can be found on Slide 14 of our 2013 Update and 2014 Outlook presentation dated December 18, 2013.

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  • Key:
  • Achieved
  • On Track
  • In Process
  • Not on Track

Climate Change and the Environment

Goal/Commitment 2013 Progress Status

Climate Change – Products

Do our share to stabilize carbon dioxide (CO2) concentrations in the atmosphere at 450 ppm, the level generally accepted as that which avoids the most serious effects of climate change.

Reduced fleet-average fuel economy from our U.S. car fleet by 2 percent and our U.S. truck fleet by 3 percent in 2013 compared with 2012.2

Reduced fleet-average CO2 emissions of European vehicles by 18 percent from the 2007 to 2013 calendar years.

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For each of our new or significantly refreshed vehicles, we will continue to offer a powertrain with leading fuel economy.

Followed through on this commitment with vehicles introduced in all our regions, and will continue to do so in future product launches.

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Climate Change – Manufacturing

Reduce global facility CO2 emissions per vehicle by 30 percent by 2025 compared to a 2010 baseline.

Reduced 2013 CO2 emissions by 9 percent per vehicle produced compared to 2012.

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Reduce facility energy use per vehicle globally by 25 percent between 2011 and 2016, adjusted for weather and production.

Reduced average energy consumed per vehicle produced by 4 percent compared to 2012.

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Environment – Products

Increase the use of recycled, renewable and lightweight materials.

Use soy foam seat cushions and backs on 100 percent of Ford vehicles manufactured in North America.

Use at least 25 percent recycled content in seat fabrics on all new and redesigned vehicles sold in North America.

Since 2011, all vehicles produced in North America have soy foam seating.

Since 2012, all new and redesigned vehicles launched in North America meet our goal to use at least 25 percent recycled content seat fabrics.

Continued to develop sustainable materials strategy requiring recycled plastics and textile materials for many applications globally. Continued to implement strategic principles for expanding the use of recycled and renewable materials that seek to reduce total lifecycle impacts.

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Increase the use of allergy-tested and air-quality-friendly interior materials.

Continued to implement specification for low-emissions and allergy-free materials, which is being migrated across product lines.

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Environment – Manufacturing

Reduce water use.

(See Water section of Goals Table.)

Reduce CO2 emissions.

(See Climate Change section of Goals Table.)

Reduce waste sent to landfill by 40 percent on a per-vehicle basis between 2011 and 2016 globally.

Reduced waste to landfill per vehicle produced by 14 percent compared to 2012.

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Maintain volatile organic compound (VOC) emissions from painting at North American assembly plants at 23 grams/square meter or less.

Achieved 2013 VOC emissions at North American assembly plants of 16.8 grams/square meter.

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  1. However, our combined U.S. corporate average fuel economy declined by 1.7 percent in 2013 due to increased customer demand for trucks over cars.

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  • Key:
  • Achieved
  • On Track
  • In Process
  • Not on Track

Water

Goal/Commitment 2013 Progress Status
Cut the amount of water used to make each vehicle by 30 percent globally by 2015, compared to 2009.

Achieved this goal two years ahead of schedule. We will be updating our global manufacturing water strategy in 2014 and setting a new long-term target. Our target for 2014 is a reduction of 2 percent per vehicle produced from 2013.

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  • Key:
  • Achieved
  • On Track
  • In Process
  • Not on Track

Vehicle Safety

Goal/Commitment 2013 Progress Status
Design and manufacture vehicles that achieve high levels of performance in real-world safety and in public domain crash-testing programs and that offer innovative safety and driver assist technologies.

For the 2014 model year, earned the highest possible Overall Vehicle Score of five stars in the New Car Assessment Program (NCAP) of the U.S. National Highway Traffic Safety Administration (NHSTA) for nine Ford Motor Company vehicles.

For the 2013 Insurance Institute for Highway Safety (IIHS) awards, earned Top Safety Picks for 13 Ford Motor Company vehicles. Three of the 13 also earned Top Safety Pick+ designations.

In the 2013 Euro NCAP assessments, earned a five-star safety rating for the Ford Tourneo Connect.

Expanded the availability of Lane-Keeping System, a driver assist feature, in North America. See the Safety and Driver Assist Technologies section for information on our other technologies.

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Meet or exceed all regulatory requirements for safety.

Continue to meet this goal every year. Ford’s internal Safety Design Guidelines and other internal standards go beyond stringent regulatory requirements. Ford often establishes internal standards on emerging issues long before public domain or regulatory standards are adopted.

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Provide information, educational programs and advanced technologies to assist in promoting safe driving practices.

Continued to invest in Ford Driving Skills for Life (DSFL), launching the program in Europe for the first time in 2013. In the U.S., Ford DSFL focuses on teen drivers through five signature programs. In 2013 the Ford DSFL U.S. National Tour reached out to more teens, parents and educators than ever before and included nearly 30 days of hands-on training. In our Asia Pacific markets, Ford DSFL is aimed at novice drivers of all ages. Approximately 14,000 drivers in this region were trained in 2013. On the technology side, MyKey, Ford’s innovative technology designed to help parents encourage their teenagers to drive more safely, is now in more than 6 million Ford and Lincoln vehicles on the road in the U.S. and is available on nearly all Ford Motor Company retail vehicles in North America.

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Play a leadership role in vehicle safety and driver assist research and innovation.

In December 2013, unveiled a Ford Fusion Hybrid automated research vehicle that will enable us to further test current and future sensing systems and driver assist technologies.

Continued to collaborate with other automotive companies on precompetitive safety projects to enhance the safety of the driving experience and develop future technologies, such as through the U.S. Council for Automotive Research.

And, continued to collaborate with university partners on a wide range of research projects, including research into advanced safety technologies. In 2013, awarded 28 new University Research Program grants to 19 universities around the globe.

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Play a leadership role in research and development relating to “connected vehicles.”

Continued to participate in several multi-stakeholder research projects relating to connected vehicles, including the Crash Avoidance Metrics Partnership and the Vehicle Infrastructure Integration Consortium in the U.S., and DRIVE C2X, Safe Intelligent Mobility – Test Field Germany, and interactIVe in Europe.

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  • Key:
  • Achieved
  • On Track
  • In Process
  • Not on Track

Supply Chain

Goal/Commitment 2013 Progress Status
Encourage key production suppliers to: introduce codes of conduct aligned with international standards and Ford’s Code of Human Rights, Basic Working Conditions and Corporate Responsibility; develop robust management and compliance systems to support their codes; and extend these expectations to their own suppliers.

Approximately 80 percent of our Production Aligned Business Framework (ABF) suppliers have demonstrated that they have codes of conduct in place that are aligned with international standards.

Approximately 45 percent of our ABF production suppliers have demonstrated that they have met all three Ford milestones – that is, they have aligned codes of conduct in place supported by robust management systems governing their own operations and their supply chain.

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Help suppliers build their capacity to manage supply chain sustainability issues through factory-level and management training on working conditions, human rights, ethical business practices and environmental responsibility; require participating suppliers to cascade training information to their own employees and suppliers.

In 2013, trained more than 230 Ford suppliers in Brazil, Mexico, Turkey, Romania, and South Africa.3 The global total of Ford suppliers trained since program inception is nearly 2,1004.

By having training cascaded by participating suppliers, have impacted more than 2,900 supplier representatives, nearly 25,000 supplier managers, more than 485,000 individual workers, and more than 100,000 sub-tier supplier companies since the program’s inception.

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Assess Tier 1 suppliers for compliance with local laws and Ford’s supply chain sustainability expectations.

Since 2003, have conducted more than 900 third-party audits of existing and prospective Tier 1 suppliers in 21 countries.

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Work collaboratively across the industry to facilitate development of an industry-wide approach to key supply chain sustainability issues, including working conditions, human rights and raw materials sustainability.

We are an active member of the AIAG, the auto industry’s primary organization for supply chain issues. We chair six AIAG committees: Corporate Responsibility Steering Committee, Working Conditions Oversight, Chemicals Management and Reporting, Greenhouse Gases, Environmental Sustainability Advisory group and Healthcare Value Task Force. We are active members of several organizations seeking to find effective solutions to the issue of conflict minerals including the Public Private Alliance for Responsible Minerals Trade and the Conflict Free Sourcing Initiative. We are a founding member of the UN Global Compact Advisory Group on Supply Chain Sustainability. Also, we helped found the CSR Europe Automotive Working Group on Supply Chain Sustainability in 2011.

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Better understand the carbon footprint of Ford’s supply chain to inform the development of a broad-based carbon management approach for our supply chain.

Surveyed 145 suppliers in 2013 (up from 135 in 2012, 128 in 2011 and 35 in 2010) regarding greenhouse gas emissions, and achieved an 89 percent voluntary response rate.

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Source at least 10 percent of U.S. purchases from minority- and women-owned businesses annually.

Purchased $6.5 billion in goods and services from approximately 250 minority-owned suppliers and $1.8 billion in goods and services from more than 150 women-owned businesses, our fourth-consecutive year of improvement.

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  1. Trainings in Brazil, Mexico, Turkey and South Africa were joint industry trainings coordinated through AIAG. Trainings in Romania were held in conjunction with CSR Europe.
  2. This figure includes suppliers trained in Ford-led and joint industry trainings.

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  • Key:
  • Achieved
  • On Track
  • In Process
  • Not on Track

Health and Safety

Goal/Commitment 2013 Progress Status

Safety

Fatalities target is always zero.

In 2013, for the third time in Ford’s history, did not have an employee work-related fatality during the calendar year. Tragically, we experienced three fatalities among contractors – one in Chicago, one in India and one in Russia.

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Serious injuries target is zero; overall goal is to attain industry competitive lost-time and DART levels and drive continuous improvement; specific targets are set by business units yearly for five years into the future.

Our safety record improved compared to 2012. A major safety indicator – the lost-time case rate – was at 0.44, a nearly 14 percent improvement from the 2012 rate of 0.51. We experienced 131 serious injuries among our direct and joint venture employees, compared to 139 the previous year.

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Health

Maintain or improve employee personal health status through participation in health risk appraisal and health promotion programs.

Had active personal health promotion programs in place in most regions. Deployed common global metrics and developed plans to implement them in remaining countries. Employee participation in health-risk appraisals is a core component of U.S. health benefit program. In 2013, more than 80 percent of salaried employees and retirees met the objectives of this program and increased their awareness of personal health improvement opportunities.

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