Ford's European operations have been leading our efforts to incorporate the principles of designing for sustainability and the use of a life-cycle management approach. In 2006, Ford of Europe introduced the Product Sustainability Index, or PSI, a tool that incorporates a life-cycle analysis of the environmental, social and economic aspects of its vehicles from the earliest stages of their development.

Ford's PSI tracks eight product attributes identified as key sustainability elements of a vehicle. These are: life-cycle global warming potential (mainly carbon dioxide emissions), life-cycle air-quality potential (other air emissions), the use of sustainable materials (recycled and renewable materials), vehicle interior air quality (including TÜV allergy certification), exterior noise impact (drive-by noise), safety (for occupants and pedestrians), mobility capability (seat and luggage capacity relative to vehicle size) and life-cycle ownership costs (full costs for the customer over the first three years).

This index was launched in the development of the 2006 S-MAX and Galaxy, was used to develop the 2007 Mondeo and will be used on all future products developed by Ford of Europe. As a result of using the PSI assessment system, both the 2006 S-MAX and Galaxy show improved environmental, social and economic performance when compared to the previous models. For instance, more recycled and renewable materials have been used, life-cycle air emissions have been significantly reduced, life-cycle cost of ownership has been reduced and safety performance has been improved. Similarly, by using the PSI tool, the 2007 Ford Mondeo showed significant improvements over the previous model in life-cycle global warming impacts, life-cycle air-quality impacts, use of restricted substances, use of sustainable materials and safety.

The PSI assessment system has been reviewed and certified by outside experts. An external study of the PSI was conducted by independent experts in the area of life-cycle science and sustainability and found to be a design and analysis step that provides a full sustainability assessment and meets the requirements of ISO 14040, the international Life-Cycle Assessment standard. The 2006 S-MAX and Galaxy vehicles were certified by the International Organization for Standardization (ISO) for life-cycle assessment improvements. In addition, these vehicles followed the 2005 Ford Focus and C-MAX in receiving the TÜV Rhineland's allergy-free interior certification. For a company to receive this award, TÜV experts must certify that the car's interior materials were selected to reduce the risk of allergic reaction to the lowest possible level. Ford is the only manufacturer to offer vehicles that have received this certification.