Home Contact Downloads GRI Index UNGC Index Site Map Glossary corporate.ford.com Sustainability 2012/13 YEAR IN OUR BLUEPRINT FOR FINANCIAL CLIMATE CHANGE AND WATER VEHICLE SUPPLY CHAIN PEOPLE FORD AROUND REVIEW SUSTAINABILITY HEALTH THE ENVIRONMENT SAFETY THE WORLD CLIMATE CHANGE Doing our part to reduce climate change PRODUCTS AND TECHNOLOGIES Delivering vehicles and technologies that reduce our Climate and environmental impact Environment FACILITIES Reducing energy use, We have comprehensive emissions, water use and strategies for minimizing our waste across our operations environmental impacts. At Ford, we have been working for many years to minimize the We plan to reduce waste sent to landfill per vehicle by Climate Change and the environmental impacts of our vehicles and operations. Environment 40 percent For example, we are doing our part to prevent or reduce the potential for environmental, economic Design for Lifecycle Sustainability between 2011 and 2016 and social harm due to climate change. We have a science-based strategy to reduce greenhouse globally. Climate Change gas (GHG) emissions from our products and operations that focuses on doing our share to stabilize carbon dioxide (CO2 ) concentrations in the atmosphere. We are on track to meet the Greening Our Products central elements of our strategy: Each of our new vehicles is a leader, or among the leaders, in fuel Greening Our Operations economy, and we are reducing GHG emissions across our global product portfolio. We have also set a goal to reduce our facility CO2 emissions per vehicle by 30 percent by 2025 compared to a Data 2010 baseline, building on our reduction of 31 percent from 2000 to 2010. Voice: Mark Lee We are committed to reducing other elements of the environmental footprint of our vehicles and operations as well. For example, we continue to increase the use of sustainable materials in our vehicles. And, we reduced waste to landfill by 17 percent per vehicle from 2011 to 2012 and announced a new plan to reduce waste sent to landfill by 40 percent on a per-vehicle basis Electrifying between 2011 and 2016 globally. We are also continuing to reduce emissions of volatile organic Choices compounds from our operations through the use of innovative technologies. We’re continuing to expand our In this section we discuss our approach to the issue of climate change and the ways we are range of affordable, fuel-efficient working to reduce the environmental footprint of our products and operations. and advanced technology vehicles, including six electrified vehicle options and eight vehicles that get 40 mpg or better. Reducing Energy Use In 2012, we improved global energy efficiency by 6.4 percent against a 2011 year baseline normalized for weather and production levels. Home Contact Downloads GRI Index UNGC Index Site Map Glossary corporate.ford.com Sustainability 2012/13 YEAR IN OUR BLUEPRINT FOR FINANCIAL CLIMATE CHANGE AND WATER VEHICLE SUPPLY CHAIN PEOPLE FORD AROUND REVIEW SUSTAINABILITY HEALTH THE ENVIRONMENT SAFETY THE WORLD Climate Change and the Design for Lifecycle Sustainability Environment We use a lifecycle approach to assess and minimize the total adverse impacts Related links Design for Lifecycle of our vehicles from a sustainability perspective – from raw materials extraction Sustainability through manufacturing and use to end of life. This approach considers and This Report Quantifying Our Environmental works to minimize negative impacts upfront in product design decisions. Called Product Sustainability Index Impact Design for Sustainability (DfS), the approach is integrated and holistic, to Sustainable Materials Product Sustainability Index ensure that we achieve a balance between environmental, social and economic Greening Our Operations Greening Our Products Climate Change aspects in our product development process. Supply Chain Greening Our Products We are continuing to advance how we apply DfS principles. For example, we developed a Product Sustainability Index (PSI) tool, which has been used in our European product development Greening Our Operations operations since 2002. This tool helps us to assess and find opportunities to reduce the impacts of Data our products over their entire lifecycle – including environmental impacts such as global warming from greenhouse gas emissions, societal questions such as pedestrian protection and economic Voice: Mark Lee issues such as cost of ownership. The PSI is used by the engineering teams that are responsible for product development decisions. We use other lifecycle assessment approaches in research and sustainability departments to address general strategic questions that are not necessarily linked to individual vehicle development programs. We are working to improve the lifecycle sustainability of our products and operations across our value chain. Among our product sustainability efforts, we are increasing our use of sustainable materials and eliminating undesirable materials such as heavy metals and substances that are known to be common allergens. We are also working to reduce greenhouse gases and other emissions from our facilities and vehicles by developing cleaner and more energy-efficient production processes, improving the efficiency of our packaging and transportation logistics and introducing cleaner and more fuel-efficient vehicles. Downstream in our value chain, we are working with drivers to educate them on ways to increase fuel economy and reduce vehicle emissions – for example, through our EcoMode and Smart Gauge® with EcoGuide driver interface technologies and our eco-driving program. Upstream, we are working with our suppliers to increase the sustainability of our products throughout the supply chain. Home Contact Downloads GRI Index UNGC Index Site Map Glossary corporate.ford.com Sustainability 2012/13 YEAR IN OUR BLUEPRINT FOR FINANCIAL CLIMATE CHANGE AND WATER VEHICLE SUPPLY CHAIN PEOPLE FORD AROUND REVIEW SUSTAINABILITY HEALTH THE ENVIRONMENT SAFETY THE WORLD Climate Change and the Quantifying Our Environmental Impact Environment The first step in improving the lifecycle performance of our products is to Related links Design for Lifecycle understand the environmental aspects of our products and the potential Sustainability 1 environmental impacts associated with them. We use lifecycle assessment to This Report Quantifying Our understand the impacts of our vehicles. Lifecycle assessment tracks emissions Electrification: A Closer Look Environmental Impact generated and materials and energy consumed for a product system over its Product Sustainability Index Product Sustainability Index entire lifecycle, from cradle to grave, including raw material acquisition, material Vehicle Websites Climate Change production, product manufacture, product use, product maintenance and disposal at end of life. For vehicles, this includes the environmental burdens Focus Electric Greening Our Products C-MAX Energi associated with mining ores, making materials (e.g., steel, aluminum, brass, Fusion Energi Greening Our Operations copper, plastics, etc.), fabricating them into parts, assembling the parts into a Fusion Hybrid Data vehicle, operating the vehicle over its entire lifetime, producing fuel for the C-MAX Hybrid Lincoln MKZ Hybrid Voice: Mark Lee vehicle, maintaining the vehicle and finally dismantling the vehicle at the end of its life, recycling and reusing materials as possible and disposing of materials as necessary. Lifecycle assessment is an essential tool for thinking about the environmental impacts of complex systems. Estimates of vehicles’ total lifecycle impacts vary depending upon the specifics of the vehicle analyzed and the vehicle’s powertrain and fuel type. For example, assessments of the Ford Fiesta, Focus and Mondeo – conducted using our Product Sustainability Index (PSI) tool – found significant differences in lifecycle carbon dioxide (CO2 ) emissions between the three vehicle models and between different engine and fuel types within a vehicle model. In all cases the “vehicle use” phase produces the largest portion of lifecycle CO2 emissions (for example, 77 percent of the total for the Focus diesel and 83 percent for the Mondeo gasoline). Vehicles with better fuel economy do reduce the use phase’s contribution to lifecycle CO2 emissions; however, the use phase remains the dominant phase for most environmental impacts. See the table below for comparisons of lifecycle CO2 emissions across these three vehicles. Lifecycle CO2 Emissions Comparison across Vehicle Models, Engines and Fuel Types Vehicle Model Engine Fuel Type Lifecycle CO2 emissions 2011 Ford Fiesta 1.25 L Gasoline 30 metric tons * 2011 Ford Fiesta 1.6 L Diesel 21 metric tons 2011 Ford Focus 1.6 L Gasoline 32 metric tons 2011 Ford Focus 1.6 L Diesel 27 metric tons 2011 Ford Kuga 2.0 L Diesel 36 metric tons 2011 Ford Mondeo 2.0 L Gasoline 42 metric tons 2011 Ford Mondeo 2.0 L Diesel 37 metric tons * 1 metric ton = 1,000 kg = 0.98 U.K. tons = 1.1 U.S. tons The PSI results also show that these vehicles made progress on multiple aspects of sustainability compared to the previous models. For more information on the PSI, please see the PSI section. Assessing the Lifecycle Emissions of Electrified Vehicles Assessing vehicles’ lifecycle energy consumption and greenhouse gas emissions is becoming a more complicated task as we add alternative fuels and powertrains into our vehicle lineup. For conventional gasoline- and diesel-powered vehicles, most of the energy is consumed and most of the lifecycle CO2 emissions