Letter from Sue Cischke

My position – Group Vice President of Sustainability, Environment and Safety Engineering – is unique in the auto industry.

What does it mean? Symbolically, it shows that sustainability is a key part of our business strategy moving forward. As a practical matter, it means I participate in decision making at the highest levels of the company and coordinate our global response to sustainability challenges.

We define sustainability as a business model that creates value consistent with the long-term preservation and enhancement of environmental, social, and financial capital. In other words, meeting the needs of the present without compromising the future.

My responsibility is to develop and implement Ford's sustainability strategy, including defining goals and targets to help us manage our key sustainability impacts and opportunities. During 2007, most of our strategy focus was on the CO2 emissions of our products.

There are two key enablers of our sustainability work at Ford: integration and collaboration.

INTEGRATION

Integration means the process of building accountability for sustainability into our governance and management structures, policies and key business processes.

At the management level, I report to our CEO, Alan Mulally, and have responsibility for several key functions, including sustainable business strategies, vehicle environmental engineering, manufacturing environmental quality and vehicle safety. In addition, I work to ensure that sustainability issues are managed systematically throughout the company.

This year our focus was to develop a product CO2 plan across our business. We have made significant progress and are committing to a 30 percent reduction by 2020 for new vehicles in the U.S. and European Union.

COLLABORATION

Effective responses to sustainability challenges require action by all sectors of society – business, government and consumers. We have forged partnerships with a variety of organizations to leverage our own efforts.

In 2007, for example, we joined the United States Climate Action Partnership, a multi-stakeholder group that is committed to advocating market-based mechanisms to achieve significant greenhouse gas emissions reductions in the United States.

In several cities around the world, we're developing networks of organizations to explore and implement innovative mobility solutions to meet the needs of congested urban areas. These kinds of solutions can only succeed with the cooperation of many parties, including government agencies, entrepreneurs and nongovernmental organizations.

We have established an exciting partnership with Southern California Edison that is providing both companies with insight into how plug-in hybrids can work as part of an electric supply system, their possible benefits to consumers and technological and cost hurdles.

We are working with BP to explore the respective roles of vehicles and fuels in cutting greenhouse gas emissions and to evaluate how advanced lubricants can contribute to fuel economy gains.

In this report, you'll find other examples of how alliances are helping us move our sustainability agenda forward across our functions – from vehicle safety to procurement, logistics and research and development.

MAKING AND MEASURING PROGRESS

In 2008 and beyond, we will continue to develop our sustainability strategy. We are pleased with the progress we have made, we know we cannot do it alone, and it will be an exciting ride.

Sue Cischke
Group Vice President, Sustainability, Environment and Safety Engineering