Environment

This section reports on the environmental impacts of our operations, including those from our products, our manufacturing processes and our facilities and properties. For a high-level view of impacts throughout our value chain, please see Our Value Chain and Its Impacts.

Assessing Materiality

The materiality analysis used to plan this report identified eight environment-related issues as among the most material:

• Low-carbon strategy
• Vehicle greenhouse gas (GHG) emissions
• Fuel economy
• Cleaner technologies
• Public policy: GHG/fuel economy regulation
• Vehicle electrification
• Water strategy
• Supply chain environmental sustainability

The analysis also revealed a global theme of increasing expectations regarding, and regulation of, a range of environmental issues associated with our products and manufacturing facilities. These issues include energy and water use (due to rising costs and concerns about long-term availability); tailpipe emissions and end-of-life management (due to increasing regulation); and product materials use (due to opportunities to improve the sustainability of vehicles and cut costs through “cradle-to-cradle” solutions).

Some of these topics are covered in this section, while others are covered in the Climate Change section, the Water section and the Supply Chain section.

Precautionary Principle

The precautionary principle is the idea that if the consequences of an action are unknown, but are judged to have some potential for major or irreversible negative consequences, then it is better to avoid that action. We do not formally apply the precautionary principle to decision making across all of our activities. However, it has influenced our thinking. For example, in addressing climate change as a business issue, we have employed this principle. In addition, we assess and manage environmental, safety, supply chain, operational and other risks as described throughout this report.