Ford Releases First Greenhouse Gas Emissions Report for its Philippines Operations

In 2006, Ford became the first automaker to join the Philippines Greenhouse Gas Accounting and Reporting Program, or PhilGARP. As a member of PhilGARP, we are calculating and reporting on our greenhouse gas (GHG) emissions from the years 2000 to 2006, with annual update reports each year. Our first GHG report was presented to PhilGARP in August 2007.

We are tracking and calculating our GHG emissions based on actual use of electricity and liquefied petroleum gas (LPG). We are calculating GHG emissions using the Corporate GHG Accounting and Reporting Guide, which was developed by the World Resources Institute and the World Business Council for Sustainable Development. Our GHG inventory for the 2006 report includes data from Ford Motor Company Philippines, Inc., and Ford Group Philippines. Future reports will also include the Ford Philippines Machining Company and Ford Philippines Component Manufacturing Company, which began operations in 2007.

Based on these calculations, we reported that Ford in the Philippines has reduced its overall GHG emissions by 20 percent in 2006 compared to the baseline years of 2002 to 2005. Specifically, in 2006, Ford in the Philippines reduced its indirect emissions (electricity consumption) by 24 percent and decreased its direct emissions (LPG usage) by 9 percent compared to the baseline average. We are continuing to work to reduce the emissions intensity of our production processes, which is calculated by dividing absolute emissions by the number of production units (i.e., vehicles built). Emissions intensity decreased by 3 percent from the baseline to 2006.

Initiatives taken to reduce emissions included:

• Reduction of light bulbs in process areas, offices and other unused areas
• Turning off lights and office equipment when not in use
• Use of compliant air conditioner refrigerant gas to increase energy efficiency and reduce impact on ozone
• Use of lower working pressure of compressors during off-peak times, like weekends, and repair of air leaks to increase compressor efficiency
• Installation of timing device for automatic switching of high bay lights
• Turning off air conditioning units at offices 45 minutes before the end of working hours
• Delayed start of paint ovens and early shutoff to maximize oven efficiency

By participating in PhilGARP and tracking and reporting our GHG emissions, Ford is raising internal and external awareness of those emissions. At the local level, reporting supports the government's and program's goal of addressing voluntary GHG actions. From a global standpoint, Ford in the Philippines' participation is consistent with Ford's global efforts to address and report GHGs in other countries, such as Australia, Canada, Mexico, the U.S. and EU. In addition, the tracking and reporting of GHG emissions will help us identify and initiate further GHG mitigation projects.