Ford Motor : CDP Water Report

April 22, 2024 at 02:58 am EDT

Ford Motor Company - Water Security 2023

W0. Introduction

W0.1

(W0.1) Give a general description of and introduction to your organization.

Ford Motor Company is a global automotive company based in Dearborn, Michigan with 48 plants and about 173,000 employees worldwide. Our core business includes designing, manufacturing, marketing, financing and servicing Ford trucks, utility vehicles, and cars - increasingly including electrified versions - and Lincoln luxury vehicles. The company provides financial services through Ford Motor Credit Company, LLC ("Ford Credit") which is wholly owned and fully consolidated. At the same time, Ford is pursuing leadership positions in electrification, self-driving, and connected vehicle services.

Contributing to a better world is a core value at Ford, and our commitment to sustainability is a key part of who we are as a company. Guided by our purpose to help build a better world where every person is free to move and pursue their dreams, our vision is to create a more dynamic and vibrant company that improves people's lives around the world while creating value for all stakeholders. Ford is committed to being fully carbon neutral worldwide across our vehicles, facilities and suppliers by no later than 2050, and recently announced we have implemented new science-based targets towards this ambition, in line with terms of the Paris Climate Agreement. The risks and opportunities associated with the changing climate are shaping the way we do business, from offering electrified versions of our popular models by investing more than $30 billion through 2025, to a global carbon reduction strategy focused on powering our facilities with 100% local, renewable and zero carbon energy. Ford is continuously rethinking the way we use energy at our manufacturing facilities and other sites to help address climate change. We're creating high-performing,high-quality vehicles in environmentally and socially responsible ways, and reducing the effects of our operations and supply chains through world-class facilities. By using renewable and recycled materials in our vehicles, we're reducing waste, using fewer natural resources and improving vehicle quality and performance. Beyond minimizing our impact on the environment, Ford is committed to creating a net positive contribution to society the environment. Through our work in advancing our planet we are contributing to the following UN SDGs - Good Health and Well-Being, Clean Water and Sanitation, Affordable and Clean Energy, Decent Work and Economic Growth, Industry, Innovation and Infrastructure, Sustainable Cities and Communities, Responsible Consumption and Production, and Climate Action.

Our environmental Aspirational Goals include achieving carbon neutrality globally no later than 2050, attaining zero air emissions from our vehicles and facilities, using 100% carbon-free electricity in all manufacturing plants globally by 2035, reaching true zero waste to landfill across our operations, eliminating single-use plastics from our operations by 2030, aspiring to use only recycled and renewable content in vehicle plastics, making zero water withdrawals for manufacturing processes, and aspiring to use freshwater for human consumption only. 2035 targets for our vehicles and manufacturing facilities have been approved by the Science Base Target Initiative.

For us, mobility is about human progress and making people's lives better in mature economies and major cities as well as helping solve problems in areas of the world that tend to be under-served by technology advances. We are reimagining what mobility will look like and foresee clean, smart vehicles communicating with each other, as well as the road infrastructure and public transit systems, orchestrated by open cloud-based platforms. We also promote safer behavior through a range of driver assist and semi- autonomous technologies. To help build a better world, we are doing our part to help meet the collective challenges the world faces across a range of sustainability issues and developing strategies to address them. We aim to earn trust, drive progress and make positive impacts. Ford has years of experience promoting supplier environmental disclosure through the CDP Supply Chain program Climate & Water questionnaires. We have also shared Ford facilities' best practices in reducing our environmental footprint with key suppliers through our Partnership for A Cleaner Environment (PACE) program which has transitioned to Manufacture 2030. In 2022, Ford communicated updated supplier environmental requirements via our new Supply Chain Code of Conduct, including the requirement to establish science-based GHG reduction targets and report Scope 1, 2, and 3 emissions upon request. Ford suppliers are required to minimize their impact on climate change by establishing science-based GHG reduction targets.

W0.2

(W0.2) State the start and end date of the year for which you are reporting data.

Reporting year

Start date	End date
January 1 2022	December 31 2022

W0.3

CDP

Page

of 42

(W0.3) Select the countries/areas in which you operate.

Argentina

Canada

China

Germany

India

Mexico

Romania

South Africa

Spain

Taiwan, China

Thailand

Turkey

United Kingdom of Great Britain and Northern Ireland

United States of America

Viet Nam

W0.4

(W0.4) Select the currency used for all financial information disclosed throughout your response.

USD

W0.5

(W0.5) Select the option that best describes the reporting boundary for companies, entities, or groups for which water impacts on your business are being reported.

Companies, entities or groups over which operational control is exercised

W0.6

(W0.6) Within this boundary, are there any geographies, facilities, water aspects, or other exclusions from your disclosure?

Yes

W0.6a

(W0.6a) Please report the exclusions.

Exclusion	Please explain

Commercial office	The use of water in office buildings is excluded because many Ford office buildings are leased and Ford does not have direct control over the water usage. Also, the amount of water used in
buildings and facilities	office buildings is minor (less than 2 megaliters per year) and represents 0.01% of total reported 2022 withdrawal compared to the amount of water used in manufacturing plants
not associated with	(withdrawals in the range of 15,400 megaliters per year). Commercial office buildings and facilities not associated with manufacturing are, however, encouraged to independently develop
manufacturing.	programs to monitor, track and reduce water usage.

W0.7

(W0.7) Does your organization have an ISIN code or another unique identifier (e.g., Ticker, CUSIP, etc.)?

Indicate whether you are able to provide a unique identifier for your organization.	Provide your unique identifier

Yes, an ISIN code	US3453708600

Yes, a Ticker symbol	F

W1. Current state

W1.1

CDP

Page

of 42

(W1.1) Rate the importance (current and future) of water quality and water quantity to the success of your business.

	Direct use	Indirect	Please explain

	importance	use
	rating	importance
		rating
Sufficient amounts of	Vital	Important	Direct use of freshwater is vital for operations because Ford uses water in many key manufacturing processes, including vehicle painting, cooling towers, and
good quality			machining of powertrain components as well as for employee use (WASH). Indirect freshwater use is also important to operations. Ford is a large purchaser of
freshwater available			materials, parts and components that use water in their manufacture such as aluminum, steel, rubber, and plastics. A lack of good quality freshwater can have an
for use			appreciable impact on our direct and indirect operations hence the rating of "vital for operations" and "important".
			Ford expects that sufficient amounts of good quality freshwater available for use will continue to be vital for direct use in the future, as our core manufacturing
			processes will be the same. We expect that our suppliers will continue to depend on access to water for operations and that water scarcity concerns will continue
			to emerge globally, due to the increased demand and variable supply.

Sufficient amounts of	Important	Important	Ford uses water in many key manufacturing processes, and direct use of recycled, brackish and/or produced water is currently important for Ford facilities in water
recycled, brackish			scarce regions to ensure enough water for all production needs without significantly reducing available freshwater. We expect it to continue to be important in the
and/or produced			future, and may become vital as water scarcity continues to increase globally. Ford has an ultimate goal of zero water withdrawal for its manufacturing processes,
water available for			and the availability of sufficient amounts of recycled water will help us achieve this goal.
use			In our manufacturing plant in Valencia, Spain the concentrate of a Reverse Osmosis (R/O) installation feeds another stage of R/O unit as raw water to improve the
			overall efficiency and to optimize the water balance.
			Indirect use of recycled water by our suppliers is important for continuity of supply, especially in water scare regions. Our suppliers report reuse of reverse osmosis
			reject water for painting operations and treated wastewater for irrigation. We expect water scarcity to increase in some regions in the future, which will keep the
			ranking as "important". Water recycling will reduce freshwater dependence.

W1.2

(W1.2) Across all your operations, what proportion of the following water aspects are regularly measured and monitored?

	% of	Frequency of	Method of measurement	Please explain
	sites/facilities/operations	measurement
Water withdrawals	100%	Monthly	Ford manufacturing facility obtains the data from water	Ford's standard practice is to measure and monitor incoming water at 100 percent of sites.
- total volumes			bills and enters it into a corporate database monthly.	Each Ford manufacturing facility obtains the data from water bills and enters it into a
				corporate database monthly. Water use is vital for manufacturing operations and
				community use, therefore it is important to track actual usage as a baseline for water goal
				setting.

Water withdrawals	100%	Monthly	Ford manufacturing facility obtains this data from water	Ford's standard practice is to measure and monitor incoming water at 100 percent of sites.
- volumes by			bills and enters it into a corporate database monthly.	Water sources include city, surface, well, and gray water (wastewater). It is important to
source				understand the source of the water withdrawal from a watershed impact perspective and as
				a baseline for goal setting. Each Ford manufacturing facility obtains this data from water bills
				and enters it into a corporate database monthly.
Entrained water		<>
associated with		Applicable>
your metals &
mining and/or coal
sector activities -
total volumes [only
metals and mining
and coal sectors]

Produced water		<>
associated with		Applicable>
your oil & gas
sector activities -
total volumes [only
oil and gas sector]
Water withdrawals	100%	Continuously	Monitoring is done by sampling and analysis, with TDS	Water used in production processes must meet strict quality standards and thererfore is
quality			(Total Dissolved Solids)and conductivity being	measured and monitored in all Ford facilities. The frequency of monitoring varies depending
			commonly monitored.	on the consistency of the water source, availability of pre-treatment at the plant and the
				criticality of the operation in which it is used. Monitoring frequency can range from daily to
				monthly to annually. Monitoring is done by sampling and analysis, with TDS (Total
				Dissolved Solids)and conductivity being commonly monitored.

Water discharges	100%	Monthly	Process water discharge volumes are monitored by a	Ford's standard practice is to measure and monitor process water discharge at 100 percent
- total volumes			combination of continuous flow meters and batch	of sites. Process water discharge can be measured or calculated. Discharge data provides
			volume determinators. Each Ford manufacturing facility	a key data point to calculate consumption. Process water discharge volumes are monitored
			then enters this data monthly into a corporate	by a combination of continuous flow meters and batch volume determinators. Each Ford
			database.	manufacturing facility then enters this data monthly into a corporate database. Discharge
				data provides a key data point to calculate consumption. Sanitary is only able to be
				measured at sites that have sanitary meters.
Water discharges	100%	Monthly	Ford manufacturing facility enters this data monthly into	Ford's standard practice is to measure and monitor process water discharge at 100 percent
- volumes by			a corporate database.	of sites. Tracking destination provides data regarding how watersheds may be affected.
destination				Process water discharge can be measured or calculated. Discharge data provides a key
				data point to calculate consumption. Process water discharge volumes are monitored by a
				combination of continuous flow meters and batch volume determinators. Each Ford
				manufacturing facility enters this data monthly into a corporate database. Sanitary is only
				able to be measured at sites that have sanitary meters.

Water discharges	100%	Monthly	Process water discharge volumes are monitored by a	Ford's standard practice is to measure and monitor process water discharge at 100 percent
- volumes by			combination of continuous flow meters and batch	of sites. Process water discharge can be measured or calculated. Discharge data provides
treatment method			volume determinators. Each Ford manufacturing facility	a key data point to calculate consumption. Process water discharge volumes are monitored
			enters this data monthly into a corporate database.	by a combination of continuous flow meters and batch volume determinators. Each Ford
				manufacturing facility enters this data monthly into a corporate database. Sanitary is only
				able to be measured at sites that have sanitary meters.
Water discharge	100%	Yearly	Commonly measured parameters are TDS (Total	Ford's discharges are subject to many regulatory requirements, therefore we measure and
quality - by			Dissolved Solids) and zinc and methods are lab	monitor standard effluent parameters and report to the appropriate regulatory agencies as
standard effluent			analysis or in-line measurement.	required. Frequency of monitoring and parameters monitored vary by facility depending on
parameters				discharge permits, ranging from batch to weekly to annual to continuous. Commonly
				measured parameters are TDS (Total Dissolved Solids) and zinc and methods are lab
				analysis or in-line measurement.

CDP

Page

of 42

	% of	Frequency of	Method of measurement	Please explain

	sites/facilities/operations	measurement
Water discharge	Not relevant	<>		The majority of Ford's water discharge (over 97%) goes to an additional facility for
quality -		Applicable>		treatment, and thus the final emissions released to the environment are unknown. For the
emissions to water				Ford sites that have direct discharge to surface waters (<0.4% of global discharges), our
(nitrates,				emissions are measured in concentrations and we do not convert to loading as it is not
phosphates,				regulated in this manner. Additionally, the wastewater from direct dischargers is biologically
pesticides, and/or				treated for nutrients and other priority pollutants. We do not anticipate that this metric will
other priority				be relevant in the future due to the low volumes and our discharge permits are
substances)				concentration-based limits.
Water discharge	Not relevant	<>		Ford's water discharges are generally an ambient temperature, so this is not a relevant
quality -		Applicable>		metric for Ford. We expect Ford's discharges to be at ambient temperature in the future,
temperature				therefore we do not expect this metric to be relevant in the future.

Water	76-99	Continuously	Consumption data is obtained from water assessments	Ford does not separately calculate consumption at each facility on an ongoing basis. This
consumption -			performed at select Ford facilities.	decision is continually reassessed via the water assessments performed each year.
total volume				Consumption data is obtained from water assessments performed at select Ford facilities.
				As of 2022, a third party has conducted water assessments at Ford facilities. These
				assessments indicate that consumption associated with water incorporated into the product
				are not material.
Water	100%	Continuously	We monitor 100% of the facilities that have end of pipe	We monitor 100% of the facilities that have end of pipe wastewater recycling at least
recycled/reused			wastewater recycling at least monthly using meters.	monthly using meters. There are also many other recycle and reuse projects at our
				facilities. Examples include cooling tower cycles of concentration, paint pit water reuse,
				reverse osmosis reject water reuse, and cooling tower blowdown reuse. Monitoring of these
				types of recycling and reuse varies in frequency.

The provision of	100%	Continuously	At existing facilities, human rights assessments are	Ford has acknowledged the human right to water and in 2014, became a signatory to the
fully-functioning,			performed, and these include checking on the	UN CEO Water Mandate. Our Code of Human Rights, Basic Working Conditions, and
safely managed			provision of WASH services to all workers. Human	Corporate Responsibility requires Ford to provide a safe and healthy work environment for
WASH services to			rights assessments are completed on four facilities per	all employees at 100% of our sites. At existing facilities, human rights assessments are
all workers			year. For new facilities, the method of ensuring that	performed, and these include checking on the provision of WASH services to all workers.
			fully-functioning, safely managed WASH services are	Human rights assessments are completed on four facilities per year. For new facilities, the
			provided to all workers is inclusion of this requirement in	method of ensuring that fully-functioning, safely managed WASH services are provided to
			facility building specifications. Therefore, when new	all workers is inclusion of this requirement in facility building specifications. Therefore, when
			facilities are built, WASH services are provided to all	new facilities are built, WASH services are provided to all workers.
			workers.

W1.2b

(W1.2b) What are the total volumes of water withdrawn, discharged, and consumed across all your operations, how do they compare to the previous reporting year, and how are they forecasted to change?

	Volume	Comparison with	Primary reason for	Five-	Primary reason	Please explain

	(megaliters/year)	previous	comparison with previous	year	for forecast
		reporting year	reporting year	forecast
Total	15100	About the same	Increase/decrease in	About	Investment in	Water usage is proportionate to our production. Although Ford forecasts production to increase,
withdrawals			business activity	the	water-smart	we anticipate that water withdrawal will remain about the same due to offsets in reduction
				same	technology/process	technology and efficiencies.

Total	7434	About the same	Increase/decrease in	About	Investment in	Water usage is proportionate to our production. Although Ford forecasts production to increase,
discharges			business activity	the	water-smart	we anticipate that water withdrawal will remain about the same due to offsets in reduction
				same	technology/process	technology and efficiencies.
Total	7666	About the same	Increase/decrease in	About	Investment in	Water usage is proportionate to our production. Although Ford forecasts production to increase,
consumption			business activity	the	water-smart	we anticipate that water withdrawal will remain about the same due to offsets in reduction
				same	technology/process	technology and efficiencies.

W1.2d

(W1.2d) Indicate whether water is withdrawn from areas with water stress, provide the proportion, how it compares with the previous reporting year, and how it is forecasted to change.

	Withdrawals	%	Comparison	Primary reason	Five-	Primary reason	Identification	Please explain

	are from	withdrawn	with	for comparison	year	for forecast	tool
	areas with	from	previous	with previous	forecast
	water stress	areas with	reporting	reporting year
		water	year
		stress
Row	Yes	11-25	About the	Increase/decrease	Lower	Investment in	WRI	Ford uses the WRI Aqueduct tool and its default values and thresholds to evaluate all of Ford's
1			same	in business		water-smart	Aqueduct	global facilities across North America, South America, Europe, Asia, and South Africa for baseline
				activity		technology/process		water stress and overall water risk. Using the various outputs of the WRI tool, sites with "High" or
								"Extremely High" outputs for baseline water stress were defined as an area with water stress, then
								internal company knowledge was used to confirm the area was truly a water stressed area. Based
								on this process, we determined that eleven (11) of Ford's manufacturing sites are in water stressed
								areas. The number of water stressed sites remains unchanged from when the tool was previously
								utilized in 2018 as well as a 2022 comparison to the Aqueduct Water Risk Atlas. Year-to-year
								changes of less than 5% were considered "about the same". The water stressed facilities include
								plants in India, Mexico, Turkey, South Africa and Spain.

W1.2h

CDP

Page

of 42

(W1.2h) Provide total water withdrawal data by source.

	Relevance	Volume	Comparison	Primary reason for	Please explain

		(megaliters/year)	with previous	comparison with
			reporting year	previous reporting year
Fresh surface water, including	Relevant	149	Higher	Increase/decrease in	Vehicle production increased approximately 13% from 2021 to 2022, which is primarily responsible
rainwater, water from wetlands,				business activity	for the increase in water withdrawals despite water withdrawal reduction programs. Ford considers
rivers, and lakes					an increase of 5% to 15% to be "higher".

Brackish surface water/Seawater	Not		<>		Ford withdrew 15,100 megaliters from fresh surface water, groundwater or third party sources in
	relevant		Applicable>		2022, and did not withdraw from brackish surface water or seawater, therefore this source is not
					relevant.
Groundwater - renewable	Relevant	1173	Much higher	Increase/decrease in	Vehicle production increased approximately 13% from 2021 to 2022, which is primarily responsible
				business activity	for the increase in water withdrawals despite water withdrawal reduction program. Ford considers an
					increase greater than 15% to be "much higher".

Groundwater - non-renewable	Relevant	1731	Higher	Increase/decrease in	Vehicle production increased approximately 13% from 2021 to 2022, which is primarily responsible
				business activity	for the increase in water withdrawals despite water withdrawal reduction program. Ford considers an
					increase of 5% to 15% to be "higher".
Produced/Entrained water	Not		<>		Ford withdrew 15,100 megaliters from fresh surface water, groundwater or third party sources in
	relevant		Applicable>		2022, and did not withdraw from produced/entrained water, therefore this source is not relevant.

Third party sources	Relevant	12047	Higher	Increase/decrease in	Vehicle production increased approximately 13% from 2021 to 2022, which is primarily responsible
				business activity	for the increase in water withdrawals despite water withdrawal reduction program. Ford considers an
					increase of 5% to 15% to be "higher".

W1.2i

(W1.2i) Provide total water discharge data by destination.

	Relevance	Volume	Comparison	Primary reason for	Please explain

		(megaliters/year)	with previous	comparison with
			reporting year	previous reporting year
Fresh surface	Relevant	27	Lower	Facility closure	Closure of two facilities in India led to a decrease in fresh surface water discharges. Ford considers a change of 5% to
water					15% to be "lower".

Brackish	Not				Ford discharged 7,434 megaliters to fresh surface water, groundwater or third-party destinations in 2022, and did not
surface	relevant				discharge to brackish surface water or seawater, therefore this destination is not relevant.
water/seawater
Groundwater	Relevant	199	Much higher	Increase/decrease in	Ford sites where discharges occur to groundwater are primarily for irrigation purposes (reuse). Ford considers a
				business activity	change of 15% or more to be "much higher". Production activities at these sites increased significantly from 2021 to
					2022, leading to an increase in groundwater discharges.

Third-party	Relevant	7208	About the same	Increase/decrease in	Vehicle production increased approximately 13% from 2021 to 2022. However, our water discharge to third-party
destinations				business activity	destinations remained about the same due in part to our recycling and reduction efforts. Ford considers a change of
					0% to 5% to be "about the same".

W1.2j

CDP

Page

of 42

(W1.2j) Within your direct operations, indicate the highest level(s) to which you treat your discharge.

	Relevance	Volume	Comparison of	Primary reason	% of your	Please explain

	of treatment	(megaliters/year)	treated volume	for comparison	sites/facilities/operations
	level to		with previous	with previous	this volume applies to
	discharge		reporting year	reporting year
Tertiary	Not relevant					Ford Motor Company does not utilize tertiary treatment (as defined by CDP) for any of our
treatment						discharges.
						Ford discharged 7,260 megaliters to fresh surface water, groundwater or third party
						destinations. In 2022, Ford did not conduct tertiary treatment as we would only consider using
						it in the event that our biological system was unable to meet discharge permit limits /
						parameters (e.g. phosphates, nitrogen, etc.). Therefore this level of treatment is not relevant.

Secondary	Relevant	1802.4	Lower	Facility closure	21-30	Ford Motor Company defines secondary treatment as biologically treated wastewater.
treatment						We provide this level of treatment to comply with local regulations, however in the absence of
						local regulations around wastewater discharge quality, Ford has internal minimum treatment
						standards to comply with (there are currently no Ford facilities that operate in an area without
						local regulations).
						We provide secondary treatment anytime a manufacturing facility discharges directly to the
						environment, if needed to meet discharge requirements to a municipality, or to facilitate onsite
						reuse of treated wastewater. Secondary treatment was lower than 2021 volumes, as two
						facilities were retooling or closed down, resulting in a decrease in water needs.
						In the near term, this volume is expected to increase due to both increased vehicle production,
						the lessening of the global microchip shortage and our goal to increase onsite reuse and
						recycling of treated wastewater.
						Ford considers a year-to-year change between 5% and 15% as "higher"/"lower".
Primary	Not relevant					Ford Motor Company does not utilize primary treatment (as defined by CDP) for any of our
treatment only						discharges. All discharge waters at Ford that receive primary treatment subsequently receive
						secondary treatment.
						We provide secondary treatment anytime a manufacturing facility discharges directly to the
						environment, if needed to meet discharge requirements to a municipality, or to facilitate onsite
						reuse of treated wastewater,
						In the near term, this volume is expected to remain the same at 0 as all primary water
						subsequently receives secondary treatment.

Discharge to	Not relevant					Ford Motor Company does not discharge untreated water to the environment (as defined by
the natural						CDP).
environment						Ford discharged 7,260 megaliters to fresh surface water, groundwater or third party
without						destinations in 2022 and we do not discharge any untreated wastewater to the environment.
treatment
Discharge to a	Not relevant					Ford Motor Company does not discharge process wastewater to a third party without
third party						treatment.
without						Ford discharged 7,260 megaliters to fresh surface water, groundwater or third party
treatment						destinations in 2022 and we do not discharge any wastewater to third party without treatment.

Other	Relevant	5458.38	Higher	Increase/decrease	71-80	Ford Motor Company defines other treatment as some form of pre-treatment (chemical-
				in business		physical, oil separation, solids removal, etc.) of process wastewater prior to discharge to a
				activity		municipality for further treatment.
						We provide pre-treatment (other) for all process wastewater.
						In the near term, this volume is expected to increase due to increased vehicle production and
						the lessen effect of the global microchip shortage, however our ultimate goal is to reduce this
						volume and reuse wastewater onsite. Ford considers a year-to-year change between 5% and
						15% as "higher"/"lower".

W1.3

(W1.3) Provide a figure for your organization's total water withdrawal efficiency.

	Revenue	Total water withdrawal volume	Total water withdrawal	Anticipated forward trend

		(megaliters)	efficiency
Row	1581000	15118.24	10457.566489221	We anticipate that the water withdrawal efficiency value will decrease, as our efficiency improves with increased production
1	00			which we anticipate will occur.

W1.4

(W1.4) Do any of your products contain substances classified as hazardous by a regulatory authority?

Row 1

Products contain hazardous substances	Comment
Yes

W1.4a

(W1.4a) What percentage of your company's revenue is associated with products containing substances classified as hazardous by a regulatory authority?

Regulatory classification of hazardous	% of revenue associated with products containing	Please explain

substances	substances in this list
List of substances (Canadian	More than 80%	As an automobile manufacturer, our vehicles utilize gasoline, diesel, windshield wiper fluid, and/or a battery
Environmental Protection Act)		which are considered hazardous substances.

CDP

Page

of 42

W1.5

(W1.5) Do you engage with your value chain on water-related issues?

	Engagement	Primary reason for no engagement	Please explain

Suppliers	Yes

Other value chain partners (e.g., customers)	Yes

W1.5a

(W1.5a) Do you assess your suppliers according to their impact on water security?

Row 1

Assessment of supplier impact

Yes, we assess the impact of our suppliers

Considered in assessment

Basin status (e.g., water stress or access to WASH services)

Supplier dependence on water

Supplier impacts on water availability

Supplier impacts on water quality

Number of suppliers identified as having a substantive impact

466

of total suppliers identified as having a substantive impact
1-25

Please explain

Ford has 11,500 direct and indirect suppliers, and we engage with a select group of key suppliers through the CDP Supply Chain Water questionnaire. These suppliers were selected for engagement as they are considered "substantive" to Ford's business. For the supply chain, Ford defines a supplier's impact as "substantive" if they supply greater than 0.1% of production spend and/or have a significant business relationship with Ford. In 2022, Ford expanded the CDP request to reach 466 suppliers representing 2.2% of our overall spend. The information that suppliers provide through the CDP Supply Chain Water questionnaire enables Ford to further analyze the impacts of our supply chain and prioritize further engagement to drive water stewardship and reductions.

W1.5b

(W1.5b) Do your suppliers have to meet water-related requirements as part of your organization's purchasing process?

	Suppliers have to meet specific water-related requirements
Row 1	Yes, water-related requirements are included in our supplier contracts

Comment

W1.5c

CDP

Page

of 42

(W1.5c) Provide details of the water-related requirements that suppliers have to meet as part of your organization's purchasing process, and the compliance measures in place.

Water-related requirement

Engaging with their suppliers on water security actions

of suppliers with a substantive impact required to comply with this water-related requirement
76-99
of suppliers with a substantive impact in compliance with this water-related requirement

1-25

Mechanisms for monitoring compliance with this water-related requirement

Grievance mechanism/Whistleblowing hotline

Response to supplier non-compliance with this water-related requirement

Retain and engage

Comment

Water-related requirement

Providing fully-functioning, safely managed WASH services to all workers

of suppliers with a substantive impact required to comply with this water-related requirement
76-99
of suppliers with a substantive impact in compliance with this water-related requirement

1-25

Mechanisms for monitoring compliance with this water-related requirement

Grievance mechanism/Whistleblowing hotline

Response to supplier non-compliance with this water-related requirement

Retain and engage

Comment

Water-related requirement

Reducing total water withdrawal volumes

of suppliers with a substantive impact required to comply with this water-related requirement
76-99
of suppliers with a substantive impact in compliance with this water-related requirement

1-25

Mechanisms for monitoring compliance with this water-related requirement

Grievance mechanism/Whistleblowing hotline

Response to supplier non-compliance with this water-related requirement

Retain and engage

Comment

Water-related requirement

Reducing water demands in water stressed basins

of suppliers with a substantive impact required to comply with this water-related requirement
76-99
of suppliers with a substantive impact in compliance with this water-related requirement

1-25

Mechanisms for monitoring compliance with this water-related requirement

Grievance mechanism/Whistleblowing hotline

Response to supplier non-compliance with this water-related requirement

Retain and engage

Comment

Water-related requirement

Reporting against a sustainability index with water-related factors (e.g., DJSI, CDP Water Security questionnaire, etc.)

of suppliers with a substantive impact required to comply with this water-related requirement
76-99
of suppliers with a substantive impact in compliance with this water-related requirement

51-75

Mechanisms for monitoring compliance with this water-related requirement

Grievance mechanism/Whistleblowing hotline

Response to supplier non-compliance with this water-related requirement

Retain and engage

Comment

CDP

Page

of 42

W1.5d

(W1.5d) Provide details of any other water-related supplier engagement activity.

Type of engagement

Information collection

Details of engagement

Collect water management information at least annually from suppliers

Collect information on water-related risks at least annually from suppliers

Collect water quantity information at least annually from suppliers (e.g., withdrawal and discharge volumes)

of suppliers by number 1-25
of suppliers with a substantive impact
76-99

Rationale for your engagement

As a global organization with 11,500 Tier 1 direct and indirect suppliers , Ford utilizes the CDP Supply Chain questionnaire as a mechanism to collect water security data from suppliers that are identified as having a substantive impact on our business and we use this disclosure platform as an opportunity to educate and provide guidance to suppliers to support their internal water stewardship strategy and disclosure. Ford provides a Frequently Asked Questions document which provides resources to support water evaluations and industry-wide water tools, as well as a CDP Improvement Guide which walks suppliers through the questionnaire and provides guidance on key actions to support strategic growth. In 2022, Ford engaged with 466 suppliers that were identified as substantive to Ford's business, and 258 responded, representing a 55% submittal rate.

The data that Ford obtains through the CDP Supply Chain questionnaire undergoes careful analysis and is a key component of our strategic engagement with suppliers and helps to inform our supply chain sustainability strategy.

Impact of the engagement and measures of success

For CDP, Ford tracks the overall supplier participation rate, as Ford looks to engage with as many substantive suppliers as possible. We view CDP as an opportunity to engage and ensure our suppliers are actively managing their water impacts. As Ford increased the overall supplier request for CDP Water Security in 2022, we saw a slight regression in the overall participation rate compared to years past; however, we were able to engage and obtain more information from suppliers than ever before through this program. Overall, Ford received 258 supplier submissions, which was a 31% increase in submittals based on the number of supplier submissions. Our goal is to achieve an 80% submittal rate among our suppliers, or engage them through other data collection mechanisms, like M2030.

In 2022, several CDP suppliers identified that Ford's engagement had driven them to collaborate on water projects. In particular, a few suppliers mentioned Ford's climate and water targets and their desire to align their corporate strategy to feed into customer targets and ambitions, as well as some information regarding a new product that could reduce water impacts.

Comment

Type of engagement

Innovation & collaboration

Details of engagement

Encourage/incentivize innovation to reduce water impacts in products and services

Educate suppliers about water stewardship and collaboration

of suppliers by number
26-50
of suppliers with a substantive impact
51-75

Rationale for your engagement

In 2022, Ford transitioned from our internal supply chain sustainability program, the Partnership for A Cleaner Environment (PACE) to working with our suppliers at scale on best practices for water through our environmental program with Manufacture 2030 (M2030). We engaged with 10 suppliers in 2022 on our PACE program and water savings were identified. In November 2022, we invited 3000 Tier 1 Direct suppliers in over 66 countries to join the strongly recommended Ford campaign with M2030 to engage our suppliers with measuring, managing, and reducing emissions, waste and water. The M2030 platform also provides supplier education webinars on Exploring water risk, Wastewater Treatment Technology, Effluent Treatment and Water Reuse. 2022 was a transitional year to M2030 and we expect the engagement to increase as the campaign beds in.

Impact of the engagement and measures of success

Ford was able to bring 45 best practices and training to a wider audience than we could ever achieve previously with internal best practice program PACE. As part of the M2030 program we will be tracking water savings as a result of implemented and forecasted water savings. As M2030 was launched in the end of 2022, we are still waiting to have a full year of data in order to track water savings. However, Ford will be monitoring these numbers closely and working to encourage suppliers to implement reduction measures and drive further progress with their water strategies. Additionally, it will provide data to identify hot spots for future action.

Comment

W1.5e

CDP

Page

of 42

(W1.5e) Provide details of any water-related engagement activity with customers or other value chain partners.

Type of stakeholder

Other, please specify (Employees/communities)

Type of engagement

Education / information sharing

Details of engagement

Educate and work with stakeholders on understanding and measuring exposure to water-related risks

Rationale for your engagement

Ford prioritizes engagement with its employees and the communities where its operations are located. By engaging with employees, we are able to deeply embed Ford's water conservation strategy with each employee's daily tasks. By engaging with local communities where we have operations, we are able to demonstrate our commitment to the human right to water and the provision of WASH services to all. Ford engages with its employees and local communities through the Ford Fund, the philanthropic arm of Ford, and programs like the Ford Volunteer Corps and the Bill Ford Better World Challenge, just to name a few. The Bill Ford Better World Challenge is a global grant program that supports employee-led efforts to address issues surrounding mobility, food and shelter, and access to water, sanitation and hygiene in their local communities. One recent project, the Watergen program in drought-stricken South Africa used special equipment hitched to a Ford Ranger to capture moisture from the air. It was able to provide clean and safe drinking water for 2,700 community members in the Eastern Cape.

Impact of the engagement and measures of success

In 2022, 5,400 Ford employees spent over 50,000 hours volunteering in community service projects throughout the year. Ford measures our success based increases in the number of employees involved and the number of projects.

W2. Business impacts

W2.1

(W2.1) Has your organization experienced any detrimental water-related impacts?

W2.2

(W2.2) In the reporting year, was your organization subject to any fines, enforcement orders, and/or other penalties for water-related regulatory violations?

	Water-related	Fines, enforcement orders,	Comment

	regulatory violations	and/or other penalties
Row	No		All Ford facilities report out on any water related regulatory violations at least monthly during Business Process Reviews. These reviews are
1			consolidated to a regional and global level on a monthly basis as well.

W3. Procedures

W3.1

(W3.1) Does your organization identify and classify potential water pollutants associated with its activities that could have a detrimental impact on water ecosystems or human health?

	Identification	How potential water pollutants are identified and classified	Please

	and		explain
	classification
	of potential
	water
	pollutants
Row	Yes, we	Ford has various methods to identify and classify pollutants that may have a detrimental impact on the local ecosystem or human health, depending on whether the water is	<>
1	identify and	discharged directly, or indirectly, to the environment. These pollutants are commonly found in Ford's wastewaters prior to treatment, and typically included in permits. In either case,	Applica
	classify our	Ford always utilizes Federal/local regulations as a primary method, and if there is an absence of regulations Ford has an internal guideline that describes minimum treatment levels	ble>
	potential water	(eg. pH discharge to surface must be between 6-9, Chemical Oxygen Demand discharged to irrigation must be below a concentration of 150 mg/L ) for wastewater of major
	pollutants	pollutants prior to discharge.
		Ford has an aspirational goal as part of its Global Manufacturing Water Strategy to improve water discharge quality with an initial emphasis around direct discharges through
		monitoring and source reduction, especially around nutrient loading. Ford believes excess nutrients can reduce physical habitat quality, increase nuisance plant/algae growth, and
		increase algal toxin production. Sites that discharge directly to the environment utilize an internal list of nutrients (eg. nitrogen compounds, phosphorous) that they compare their
		incoming material chemistry against to target reductions of these materials. Pollutants of concern (eg. nutrients) are analyzed at least annually. Success is having lower
		concentrations and/or lower incoming material volumes.

W3.1a

CDP

Page

of 42

Attachments

Original Link
Original Document
Permalink

Disclaimer

Ford Motor Company published this content on 22 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 22 April 2024 06:57:06 UTC.

Market Closed - Nyse Other stock markets 04:00:59 2024-05-03 pm EDT			After market 05:16:57 pm
12.43 ^USD	-0.48%		12.42	-0.08%

06:16pm	US Electric Vehicle Companies Shares Mixed Friday After White House Extends Tax Credits for Another 2 Years	MT
05:41pm	Treasury, IRS Give Automakers Extension on EV Battery Compliance	MT

US Electric Vehicle Companies Shares Mixed Friday After White House Extends Tax Credits for Another 2 Years	12:16pm	MT
Treasury, IRS Give Automakers Extension on EV Battery Compliance	11:41am	MT
Citigroup Adjusts Price Target on Ford Motor to $18 From $16	May. 02	MT
Ford: US sales down 2.4% in April	May. 02	CF
Ford's Total Vehicle Sales Fall 2.4% Year Over Year in April	May. 02	MT
Ford Motor's Total US Vehicle Sales Fall 2.4% Year Over Year in April	May. 02	MT
BorgWarner raises full-year 2024 adjusted profit outlook	May. 02	RE
Blue Bird Extends Exclusive Clean School Bus Collaboration with Ford Component Sales and ROUSH Cleantech to 2030	May. 01	CI
Ford recalls 242,669 US vehicles, NHTSA says	May. 01	RE
Musk disbands Tesla EV charging team, leaving customers in the dark	Apr. 30	RE
Factbox-More automakers plug into Tesla's EV charging network	Apr. 30	RE
Top Midday Stories: Shares of Eli Lilly, HSBC Get Post-Earnings Bump; BBVA Exploring Merger With Sabadell; FTC Disputes 300 'Junk' Patent Listings	Apr. 30	MT
Biden Administration to Require New Safety Features on Cars, Light Trucks by 2029	Apr. 30	MT
Canada risks losing investment to Mexico as labor productivity skids	Apr. 30	RE
UAW deal with Daimler Truck boosts energy ahead of Mercedes vote in Alabama	Apr. 29	RE
Top Midday Stories: BBVA, ON Semiconductor Report Earnings; Tesla Strikes Deal with Baidu; Paramount Chief Executive Expected to be Fired by Monday; Blackstone to Acquire Hipgnosis; Ford Under NHTSA Investigation	Apr. 29	MT
Ford Motor's BlueCruise Technology Faces Preliminary US Auto Regulator Investigation	Apr. 29	MT
Ford Motor's BlueCruise Technology Faces Preliminary US Auto Regulator Investigation	Apr. 29	MT
Nomura Adjusts Ford Motor Price Target to $13 From $12.30	Apr. 29	MT
NHTSA Receives Notice of Two Incidents Involving Ford's Driver-Assistance System	Apr. 29	DJ
US auto regulator opens preliminary evaluation into Ford's Mustang Mach-E vehicles	Apr. 29	RE
NHTSA - Opens Preliminary Evaluation On Est. 130,050 Vehicles On 2021-2024 Ford Mustang Mach-E Vehicles	Apr. 29	RE
SK Innovation Q2 profit tops forecast, battery unit eyes EV demand recovery	Apr. 28	RE
SK Innovation expects solid refining margin to continue in Q2	Apr. 28	RE
BlueOval SK, LLC announced that it has received $712 million in funding from SK Battery America, Inc., Ford Motor Company	Apr. 28	CI

	1st Jan change	Capi.
FORD MOTOR COMPANY	+1.97%	49.86B
TOYOTA MOTOR CORPORATION	+38.24%	314B
BMW AG	+1.71%	68.77B
VOLKSWAGEN AG	+3.31%	66.93B
HONDA MOTOR CO., LTD.	+21.62%	55.9B
GENERAL MOTORS COMPANY	+24.89%	50.94B
TATA MOTORS LIMITED	+29.85%	45.16B
HYUNDAI MOTOR COMPANY	+18.43%	39.53B
MAHINDRA & MAHINDRA LIMITED	+26.81%	29.16B
GREAT WALL MOTOR COMPANY LIMITED	+17.75%	25.93B

Ford Motor Company

Equities

F

US3453708600

Auto & Truck Manufacturers

Ford Motor : CDP Water Report

Latest news about Ford Motor Company

Chart Ford Motor Company

Company Profile

Income Statement Evolution

Analysis / Opinion

Ratings for Ford Motor Company

Analysts' Consensus

EPS Revisions

Quarterly earnings - Rate of surprise

Sector Other Auto & Truck Manufacturers