On The Road to Better

Helping Builda Better World
Integrated Sustainability
and Financial Report2024

sustainability.ford.com I shareholder.ford.com

Fundamentals —Sustainability at Ford —Products and Services —Environment —Social —Governance —Data —

Appendices

2
On The Road to Better —Contents —Letter from Ford and Farley —Ford at a Glance —Our Leadership in Sustainability —Financial Highlights

On The Road
to Better
Ford’s purpose has always been bigger
than building vehicles. We are driven
by a desire to build a better world.
One that is more equitable, inclusive,and sustainable. A world in which every
person is free to move and pursue
their dreams.
There is no easy formula for how toachieve these ambitious goals. It’s ajourney Ford has been on since ourfirst sustainability report 25 years
ago, requiring both courage and care,seeking to continually evolve whilehonoring what we have already built.
Today, we find ourselves at theintersection of Ford’s unrivaled legacy —and its unbridled potential. Only Fordcan claim this space. It’s where wechoose to compete, and where weknow we will win.

In our following Integrated Report, weshare the tremendous progress madein the past year. A lot has changed since
our last report, but Ford has never shiedaway from change. Change demands
innovation, problem-solving, and hard
work: everything we do best. And withchange comes opportunity.
We stand as excited for Ford’s future
as we are proud of its past. We are
optimistic. Energized. Ready forwhatever twists and turns await us
on The Road to Better.
Read More
In A Letter from Bill Ford and Jim Farley p.4

Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices
3
On The Road to Better —Contents —Letter from Ford and Farley —Ford at a Glance —Our Leadership in Sustainability —Financial Highlights

Contents

About this report
Our commitment to helping build a better world where every person
is free to move and pursue their dreams is our legacy — and our future.
Building a strong, sustainable business takes commitment, effort, andpersistence. By advancing groundbreaking technology, supporting
our people, our partners, and our customers, and protecting our planet,
we are ensuring that Ford Motor Company will be here for generations
to come.
This year marks our 25th annual sustainability report, and we arecommitted to maintaining our leadership position in sustainability
reporting. That’s why this year, we are beginning the transition to alignour Integrated Sustainability and Financial Report with the European
Union Corporate Sustainability Reporting Directive (CSRD) (EU 2023/2772
of 31 July 2023). Wherever applicable, we have noted where information islinked to CSRD required disclosures set out by the European Sustainability
Reporting Standards (ESRS). As part of this transition to CSRD, we haveintegrated our previously standalone Climate Change Report and Human
Rights Report into this report.
The report has been developed considering the findings of our double
materiality assessment and is structured in alignment with CSRD
expectations. It examines our business through four lenses: Products
and Services, Environment, Social, and Governance. Underlying the entire
report is our approach to sustainability, along with our sustainability
aspirations and achievements.
We're also shifting away from planned investments and expenditures
to focus on actual progress to date. This transition will take time, and thisreport represents one more step in our journey to a more technical reportthat uses data to describe progress toward our goals. We welcome you
to share with us your feedback and any comments you may have atsustaina@ford.com.

Fundamentals
02

04

07
09

Our Leadership in Sustainability
Financial Highlights

05

The Road to Better:
A Letter From Bill Ford and Jim Farley
Ford at a Glance

Sustainability at Ford
11

12
13
14
15

Our Materiality Assessment
Our Sustainability Strategy
Our Sustainability Aspirations
Accelerating Progress

21
22
26

How We Create Sustainable ValueOur Saliency Assessment
Our Stakeholders

Products and Services
30

31
32
34

Overview
Customer Focused Business Segments
Electric Vehicles, Batteries and Charging
Infrastructure38
40

ICE and Hybrid Vehicles
Connected Vehicles and Digital Services

Environment
43

44
45
76

Overview
Climate Change
Circular Economy and End-of-Life

80
82
85

Air, Water and Soil Pollution
Water Resources
Biodiversity and Ecosystem HealthSocial
86

87
88
99
104

Overview
Human Rights
Product Safety and Quality
Human Capital Management and Diversity,
Equity and Inclusion

110
113
116

Employee Health and Safety
Customer Experience and Responsible Marketing
Socioeconomic Contribution and Community
Engagement

Governance
120

121
122
125

Overview
Risk Factors
Supply Chain Management

126
132
133

Business Conduct
Data Protection, Privacy and Cyber Security
Reporting Scope, Boundaries and Data Assurance

Performance Data
134

135
135
137
145
148
149

Financial Highlights
Products and Services
Climate Change
Circular Economy and End of Life
Water Resource
Human Rights

157
158
164
165
166

Vehicle/Product Safety and Quality
Human Capital Management and Diversity
Employee Health and Safety
Socioeconomic Contribution and Community
Supply Chain Management

Appendices
167

167
170
177
188
189

Material Topics
CSRD Index
GRI Index
TCFD Index
SASB Index

191
195
206
207

UNGPRF Index
UN SDGs Index
Resources
Footnotes

Read More

On our website
In our Sustainable Finance Report

In the Reporting Frameworks(GRI, TCFD, SASB, UNGPRF, and UN SDGs)

ESRS 2 BP-2. This report includes forward-looking statements. Forward-looking statements are based on expectations, forecasts, and assumptions by Ford management and involve a number of risks, uncertainties, and other factors that could cause actual results
to differ materially from those stated. For a discussion of these risks, uncertainties, and other factors please see “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2023, as updated by subsequent Quarterly Reports on
Form 10-Q and Current Reports on Form 8-K. The Ford name, and all trademarks and logos displayed in this Report are owned or used under license by Ford. These trademarks include, but are not limited to, product brand names (for example, Ford, Lincoln,
Motorcraft®), vehicle model names (for example, Mustang, Explorer, F-150), slogans (for example, Built Ford Tough), and logos and emblems. The unauthorized use of any trademark displayed in this Report is strictly prohibited.

Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices
4
On The Road to Better —Contents —Letter from Ford and Farley —Ford at a Glance —Our Leadership in Sustainability —Financial Highlights

On The Road to Better
A letter from Bill Ford and Jim Farley

Our industry is experiencingchange at a remarkable rate andmagnitude, and Ford is seizing
this opportunity to lead andhelp build a better world.”

That kind of leadership has set us apart for more than
120 years. It is why we were the first in our industry,
25 years ago, to publish a sustainability report, which wasrecognized for its transparency. It is why we were among
the first in our industry to fully integrate our financial,environmental, social, and governance performance into
one consolidated report. And it’s why we reorganized
our auto business into three customer-focused segments
designed to evolve with a changing world.
This values-led approach continues to guide us on theroad to a more sustainable and equitable transportation
future. And it requires us to be nimble and responsive
as we deliver both what our customers want and what
the planet needs.

Bill Ford

Jim Farley

growth to increase. In addition to building the bestselling gas and electric trucks in the U.S., Ford also
produced the No. 1 and No. 2 best-selling hybrid trucks.
We expect our EV growth to continue this year with thelaunch of the all-new electric Explorer in Europe. And as
EV prices come down, improving access to reliable fast
charging is critical to help more customers confidently
choose an EV. We’re proud to have partnered with Tesla
to ensure Ford customers were the first of any non-Tesla
automaker to gain access to Tesla Superchargers acrossthe U.S. and Canada, and we’re giving customers theadapters they need to access the network for free.

It’s clear to everyone at Ford that electric and softwaredefined vehicles will play an increasingly important rolein our future. What’s also true is that building ourbusiness for this future isn’t going to be easy or quick.
We believe we will successfully navigate this transition
through two pursuits: by focusing on our customers,
and by making decisions that improve the lives of ouremployees and everyone who relies on Ford.

There’s also an interesting story about EV adoption whenit comes to our commercial and government customers.
These customers are increasingly going electric throughFord Pro, a nearly $60 billion, industry-leading businessthat is helping streamline their path to electrification. Our
customers are discovering that EVs get the job done andsave them money through lower total cost of ownership.
In 2024, Ford Pro’s commercial customers will have more
EVs to choose from to support their unique needs anduse cases, including an E-Transit with enhanced range.

Last year, our overall EV sales increased despite slowing
adoption across the industry. We have strong productlineups in all three categories of vehicles – EVs, internal
combustion engine vehicles, and hybrids. Hybrid salesrose 20% for the year. In 2024, we expect that percentage

Our support goes well beyond the products themselves.
We are creating an ecosystem of software-enabledcustomer experiences and services to make our vehicles
even more productive, while also improving theirenvironmental performance.

With these diverse offerings, we remain focused onbuilding a profitable and efficient EV business that canscale as demand grows. We’re gaining valuable customer
insights from our first-generation EVs. We know thetransition to EVs won’t be a straight line, but we can’t
lose sight of our goal: a healthy planet and business.
As always for Ford, we are focused on both what webuild and how we build. We’ve continued to pushourselves on environmental quality, which includes
conserving water, reducing waste, and transitioning ourcompany to carbon-free electricity. It’s what ourcustomers and our neighbors expect from Ford.
We have reduced the overall carbon footprint of ouroperations, including both manufacturing and nonmanufacturing, by 47% between 2017 and 2023.
The U.S Department of Energy acknowledged Ford forachieving deep and sustained energy and greenhousegas savings at 31 locations in the U.S., including all of
our manufacturing facilities. Ford announced that ourassembly plant in Cologne will be carbon neutral when
production of the all-electric Explorer starts later thisyear, and we continued construction of BlueOval Cityin Tennessee. The assembly plant there will use theequivalent of carbon-free electricity from the day it
opens. We also announced plans to build the country’s
first automaker-backed LFP battery plant, BlueOval
Battery Park in Michigan, while protecting 245 acresalong the Kalamazoo River.
Ford is leading our industry to secure raw materials
directly from mining companies aligned with oursustainability goals, to scrutinize our battery supply
chain and to acknowledge the rights of Indigenous
Peoples. Lead the Charge, a consortium of advocacy
organizations, ranked Ford No. 1 among global
automakers for our efforts to deliver an equitable
and sustainable supply chain.

Ford and our philanthropic arm, the Ford Fund, invested
more than $73.7 million in charitable contributions
toward its mission to partner with communities to help
move people forward across key areas of impact:essential services, education for the future of work,
entrepreneurship, and mobility. This year, we arecelebrating 75 years of the Ford Fund and its impact incommunities worldwide. Building on that commitment,
Ford also launched a dedicated community engagement
function to provide better lines of communication incommunities where we have a manufacturing presence.
Further, we strongly believe in rewarding our employees.
In 2023, we offered a record contract for our more than
57,000 UAW-represented employees and their families in
the U.S. The three-year agreement with Ford of Canada’s
Unifor-represented hourly employees provided
significant wage increases and bonuses, and a numberof major enhancements to support our future. For our
U.S. salaried employees, we introduced new familybuilding benefits that cater to every unique journey
to parenthood. They are designed to help alleviate thefinancial burden and provide support to make the processeasier to understand and navigate.
Our commitment to sustainability remains steadfast.
We will continue taking the long view, investing in ourpeople, our communities, and innovation on the road toa better and brighter future for everyone.
We invite you to explore this report for the details of
our plans and our progress.
Bill Ford
Executive Chair
Jim Farley
President and Chief Executive OfficerFundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — AppendicesCD
5

On The Road to Better — Contents — Letter from Ford and Farley — Ford at a Glance — Our Leadership in Sustainability — Financial Highlights

Ford at a Glance

#2
#2

in
in EV
EV salessales inin North
North America,
America,forfor thethe second
second year
year inin aa row
row

47%%
47

reduction
reduction in Scope
Scope 1 andand 2 global
globaloperations
operations greenhousegreenhouse gasgas (GHG)(GHG)
emissionsemissions since
since 2017. Science
Science Based
Based
TargetTarget initiative
initiative (SBTi)(SBTi) approved
approved
reduction
reduction target
target is 76%
76% byby 2035
2035

Read
ReadMore
More

Ford Integrated Sustainability and Financial Report 2024

InClimate
Climate Change
Change on
on p.59
p.59
In

6%

reduction in Scope
Scope 3 GHG
GHG emissions
emissions
reduction
per vehicle
vehicle kilometer since
since 2019.
2019.
SBTi
SBTi approved
approved reduction
reduction target
target is5
0 % by50%
by 20352035

Read
Read More
More
In
In Climate
Climate Change
Changeonon p.59
p.59

500,000
500, 000+
plugs onon the BlueOvalcharging
charging plugs
ChargeEuropeCharge Network in Europe
Read More
More
Read
In
and Charging
In ElectricElectric Vehicles, Batteries
Batteries andCharging
Infrastructure
Infrastructure
on p.34 on p.34

CDP A
both
statusstatus in bothCDP
CDP Climate
Climate and
and
Water
Water since
since 2019201986
zero waste to landfill
sites globally

Fundamentals —Sustainability at Ford —Products and Services —Environment —Social —Governance —Data —

Appendices

6
On The Road to Better —Contents —Letter from Ford and Farley —Ford at a Glance —Our Leadership in Sustainability —Ford at a Glance— continued

111,000+$2B

chargers on the BlueOval™ Charge Network
in North America, a 25% growth from 2022

invested to transform our historic plantin Niehl, Cologne to the Cologne Electric
Vehicle Center. Once fully operationalin 2024, the Cologne EV Center will be
independently certified as carbon-neutral

UpdatedRead
ReadMore
More

Ford Integrated Sustainability and Financial Report 2024

our We Are Committed to Protecting Human Rights
and the Environment policy to formally reflect
our commitment to respecting the United Nations
Declaration on the Rights of Indigenous Peoples(UNDRIP) in both our own business and supply chain
Read More
Read
More

In Human Rights on p.88

#1

overall score in Lead theCharge Coalition's annual
Leaderboard report$4.21BIn Climate Change on p.65

$73.7Min charitable contributions to strengthencommunities worldwide through theFord Motor Company Fundof net proceeds allocatedfrom Green Bonds since 2021
Read
Read More
More
In Socioeconomic Contribution andCommunity Engagement on p.116

Financial Highlights

Fundamentals

Sustainability at Ford

Products and Services

Environment

SocialGovernance

Data

Appendices

7
On The Road to Better

Contents

Letter from Ford and Farley

Ford at a Glance

Our Leadership in Sustainability

Financial Highlights

Our Leadership in Sustainability
As we enter our 25th year of sustainability reporting, we take pride in our longtrack record of aligning business practices with societal and environmental
imperatives and prioritizing the wellbeing of our employees and community members.

Published our first Corporate
Citizenship report, "Connectingwith Society"

Reopened our Ford Rouge Center with its
living roof, daylighting system, and waste
minimization

Marked 50 years of supporting
communities through ourphilanthropic arm, Ford Motor
Company Fund

Launched the Escape Hybrid, the world's
first hybrid SUV

Joined the United States
Climate Action Partnershipand UN Global Compact

Included human rights expectationsin Global Terms and Conditions with
suppliers, the first automaker to do soLaunched 2008 Ford Mustang
with the first soy foam based
seats and headrests

1999

2003

Established Ford
Driving Skills for Life
education program
Adopted the Code of
Human Rights/Basic
Working Conditions
for our company
and suppliers

2004

2005

Introduced SYNC®, a hands­
free connectivity system

2007

Received a score of 100 for the firsttime from Human Rights Campaign,
which also names Ford a Best Place
to Work for LGBT equality
Established Ford Volunteer Corps
to provide community service
opportunities for employees

2009

Implemented Partnership fora Cleaner Environment (PACE)
program with suppliers to reduce
our collective environmental
footprint

Launched the fullelectric Focus EV

Became a signatory to the UN
CEO Water Mandate
Announced a saving of morethan 10 billion gallons of water2011

Launched the EcoBoost
engine, which optimizes
power and efficiency
using turbocharging anddirect gasoline injection

2013

Opened Ford Resourceand Engagement
Center in Southwest
Detroit - the first of
five in Ford Fund's
global network ofcommunity centers

2014

Fundamentals

Sustainability at Ford

Products and Services

Environment

SocialGovernance

Data

Appendices

8
On The Road to Better

Developed the Transportation Mobility
Cloud with Ford-owned Autonomic

Developed the Ford Mobility
plan, advancing connectivity,
mobility, self-driving vehicles,
and big data
Began exploring self-driving
vehicle technology

Met our goal, set in 2010, to reduce
operational GFIG emissions per vehicle
produced by 30% (eight years early)
Celebrated 10 years of soybean-based
foam in more than 18.5 million vehicles
built in North America

Contents

Launched F-150 Lightning

Launched Mustang Mach-E

Launched Manufacture 2030 program
to work with suppliers to reduce ourcollective environmental footprint,
replacing PACE

Designed and Produced a new
powered air-purifying respirator andnew ventilators, in collaboration with
the UAW, produce face masks at Ford's
Van Dyke Transmission Plant for internal
Ford use and provide millions to local
healthcare workers and communities
Contributed over $1.13M to worldwide
COVID relief through employee
donation match; Direct $3M tocommunity organizations

Our Leadership in Sustainability

Financial Highlights

Launched E-Transit van

Announced reorganization ofbusiness into three business segments:
Ford Blue, Ford Model e and Ford Pro
Issued second $1.75B Green Bond andinaugural Sustainable Financing Report
Made the largest renewable energy
purchase from a utility in U.S. history

Signed UN Women's Empowerment
Principles

Launched the new, lightweight
all-aluminum F-150

Achieved 75% absolute reduction inwater use since 2000

2015

2018

2020

2019

Ford at a Glance

Set target to be carbon neutral no later
than 2050

Conducted first formal UN human rights
saliency assessment, the first automaker
to do so and link environment as ahuman rights issue

2016

Letter from Ford and Farley

Became a signatory to the UN
Sustainable Development Goals (SDGs)

Launched Sustainability
Aspirational Goals

Became the first OEM to join the
Responsible Business Alliance (RBA)

Achieved double A rating
for CDP Climate and Water

2021

2022

2023

Announced $11.4B planned investment
in BlueOval City and BlueOval SK
Battery Park

Started construction on BlueOval
Battery Park Michigan, BlueOval
City and BlueOval SK Battery Park

Launched Ford Pro

Committed to supporting aliving wage

Issued $2.5B inaugural Green Bond, thelargest non-financial corporate green
bond to dateIssued stand-alone Pluman Rights Report,a first for the U.5. automotive industry
Used 100% recycled ocean plastics toproduce automotive parts, the first
automaker to do so
Signed UN International Year for the
Elimination of Child Labour Action Pledge

Mapped and audited our EV
battery raw material supply chainsto include nickel, lithium, cobalt
and graphite
Created Community Relations
Department to focus on
engagement with manufacturingcommunities

Our purpose ofhelping to build abetter world is rooted
in our long history
and our commitment
to sustainability.
Together they position
us for continued
progress along
The Road to Better.

Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices
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On The Road to Better —Contents —Letter from Ford and Farley — Ford at a Glance —Our Leadership in Sustainability —Financial Highlights
ESRS 2 SBM-1

We delivered solid results in 2023,
reflecting positive momentum from the
Ford+ plan for growth and value creation.
Our global product lineup is popular with customers
and generated revenue of $176 billion in 2023, up 11%
for our second consecutive year of double-digit growth.
Adjusted EBIT for the year was $10.4 billion, driven by
the continued strength of Ford Pro and Ford Blue.
In our first full year of operating with three customercentered auto segments, the strategy is paying off withincreased focus, priority, accountability, and flexibility
to quickly adapt to the changing needs of customers.
Ford Pro more than doubled its EBIT year over year to$7.2 billion, demonstrating the earnings power of an
emerging growth company with high customer value,large competitive moats and progress creating recurring
revenue streams — including software and a greater
emphasis on services. Ford Blue grew revenue 8% year
over year and was profitable in every region around theworld in 2023. Both segments are benefiting fromongoing updates to Ford’s product portfolio. By the endof this year, 60% of Ford Blue’s gas and hybrid products
will have been recently refreshed, including theupcoming launch of a new F-150.
Ford Model e, our startup electric vehicle (EV) business,grew both wholesales and revenue in 2023, 20% and12%, respectively. The segment’s EBIT loss of $4.7 billion
reflected challenging market dynamics and strategic
investments in our next-generation electric vehicles.
We are building an EV business that is appealing tocustomers and profitable over the long term. To do that,
we’re reducing costs of our first-generation EVs that arein the market today and adjusting investments to matchdemand. Our goal is to ensure our next-generation
products will be profitable within the first 12 months
after they’re launched.

Ford is well positioned to manage the transition of our
products towards an electric future. In the meantime, ourstrategy and unique capability to offer customers morechoices demonstrated their potential in 2023. In North
America, we now sell gas, hybrid, and electric versionsof our flagship F-150 pickup truck, all at high volumes.
We had the number one internal combustion engine(ICE) vehicle (F-Series), hybrid (Maverick) and EV truck(F-150 Lightning) in the U.S. in 2023. Hybrid vehicles givecustomers exceptional value and Ford great opportunity
for growth. We sold about 280,000 hybrids globally lastyear, up nearly 20% year over year, and expect growth
to continue in 2024.
We are also pairing our popular retail and work vehicles
with digitally enabled customer experiences and valueadded services. We ended the year with 630,000 paid
software subscribers, the majority of whom are using
Ford Pro productivity tools like telematics and fleet
management solutions, with gross margins over 50%.
This is a cornerstone of Ford+ and a key differentiator
for our brand.
We recently formed Ford Integrated Services, tasked
with transforming customer experiences across our
three segments by developing and delivering high-value,
software-enabled services that help address some of ourcustomers’ greatest challenges. We are focused on theexperiences around buying, driving, securing, servicing,and charging a Ford vehicle to build a simple, transparent,
and always-on relationship with the customer.

2023 Financial Highlights

Revenue:

Adjusted EBIT margin2:$176.2B

5.9%(2022: $158.1B)(2022: 6.6%)

ESRS 2 SBM-1

Net income/(loss):

Adjusted free cash flow2:

$4.3B

$6.8B

(2022: $(2.0)B)(2022: $9.1B)

Adjusted EBIT2:

Adjusted earnings per share2:$10.4B$2.01(2022: $10.4B)(2022: $1.88)

Financial Highlights

Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices
10
On The Road to Better —Contents —Letter from Ford and Farley —Ford at a Glance —Our Leadership in Sustainability —Financial Highlights

Financial Highlights— continued
ESRS 2 SBM-1

Organizing our businessaround three distinct, customerfocused segments is a gamechanger for Ford. With Ford+,
we’re building a company thatthrives at the intersection of
hardware, software, and services,with higher growth, higher
margins, greater capitalefficiency, and less cyclicality.”
John Lawler, Ford Chief Financial Officer

Our underlying business is solid and getting stronger.
Profitability of our core business units — Ford Pro, Ford
Model e and Ford Blue — improved EBIT by $2 billion, or26%. Our free cash flow conversion rate was 65%, above
the top end of our target range. We are benefiting from
more disciplined capital allocation to our global footprint
and portfolio of products and services.
Raising quality and lowering costs across Ford are highpriorities in every part of our company. To do that, weare reimagining and restructuring our global industrial
system — product development, cycle planning, supply
chain, and manufacturing. Just months into the change,
we are already seeing quality improvements, including
in new-product launches. For example, against one
measure — product quality after a vehicle has been inservice for three months, which is correlated to longterm quality — Ford improved its performance 10% overthe course of the year. Quality now factors into 70% of
short-term incentive compensation to managers at Ford,
helping to make the world-class performance anddurability customers deserve everyone’s responsibility.
Ford’s operations outside North America continued theirremarkable turnaround in 2023, marking the second
straight profitable year and representing a significant
reversal from an EBIT loss of about $2 billion in 2020.
The improvement in these markets is the direct resultof taking actions to create asset-light approaches. Their
strength last year was accomplished with high-demandvehicles like the Everest SUV and Ranger midsize pickup.

Ford Credit remains a strategic asset, competitive
advantage, and strong performer for Ford, generating
EBT of $1.3 billion in 2023 as credit loss performance
normalizes, but remains below our historical average.
The business is retaining existing customers, winningnew ones, and increasing revenue streams with an
expanding range of digital services and products, likecredit pre-qualification for retail customers and Ford Pro
FinSimple and Insure for commercial customers.
Company-wide, Ford again generated robust adjusted
free cash flow of $6.8 billion in 2023. Our balance sheet
remains strong, with nearly $29 billion in cash and morethan $46 billion in liquidity at the end of year.

In November 2021, Ford issued its first green bondunder the framework, the largest such transaction by a
U.S. corporation at the time, raising $2.5 billion. This wasfollowed by a second Green Bond of $1.75 billion in
August 2022.
By June 30, 2023, $4.21 billion, the total of the net
proceeds of the two bonds, had been fully allocatedto the design, development, and manufacture of thecompany’s current EV lineup — the Mustang Mach-E,
F-150 Lightning, and E-Transit — and EVs to be unveiledin the future, as well as other development activities
that will benefit our entire EV portfolio.
Read More

As a result, we have considerable flexibility to makevital investments in Ford+, while also returning value toshareholders, targeting distributions of 40% to 50% ofadjusted free cash flow. Last year, we returned 50% of
our adjusted free cash flow to shareholders, at the highend of that range, through regular and special dividends.
At the same time, the underlying strength of the Ford+
plan and cash generation contributed to Ford’s credit
ratings returning to investment grade in 2023.
We are poised for another solid year in 2024, withadjusted EBIT expected to be between $10 billion to$12 billion, benefiting from about $2 billion in anticipatedcost savings in our industrial systems, and further
progress in establishing recurring revenue streams.
2023 Sustainable Financing Framework Update
Ford’s Sustainable Financing Framework — introduced
in 2021 and a first for the American auto industry —is supporting the financing of our clean transportation
projects and efforts to create positive social andenvironmental benefits as we move towards a carbon
neutral transportation future.

In the Sustainable Financing Report
In the Sustainable Financing Framework

Corporate Revolvers
Ford also has over $17 billion in revolving corporate credit
facilities, which include key sustainability metrics thatfurther align our financing actions with our commitment
to operate a safe, sustainable, and successful business —including our electric vehicle and carbon neutrality goals.
Our corporate and supplemental revolvers each havethree sustainability-linked key performance indicators(KPIs) that are tied to global manufacturing greenhousegas emissions, manufacturing renewable energy, andScope 3 passenger vehicle emissions in Europe.

Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices11
Materiality Assessment — Sustainability Strategy — Sustainability Aspirations — Accelerating Progress — Create Sustainable Value — Human Rights Saliency Assessment — Stakeholders

Sustainability
at Ford
In this section:
12 — Our Materiality Assessment
13 — Our Sustainability Strategy
14 — Our Sustainability Aspirations
15 — Accelerating Progress
21 — How We Create Sustainable Value
22 — Our Human Rights Saliency Assessment
26 — Our Stakeholders

Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices12
Materiality Assessment —Sustainability Strategy —Sustainability Aspirations —Accelerating Progress —Create Sustainable Value —Human Rights Saliency Assessment —Stakeholders

Our Materiality Assessment

We updated our sustainability materiality
methodology to further align withguidelines from the Corporate
Sustainability Reporting Directive.
The Global Reporting Initiative (GRI) requires anorganization to identify the most significant actual andpotential impacts on the economy, environment, andpeople. The Corporate Sustainability Reporting Directive(CSRD) requires companies to adopt the concept of
double materiality and report on two parameters: thetopics that may impact the financial performance ofthe company and the company’s own impact on society,the environment, and the economy.
Our materiality methodology was refreshed in 2024
to reflect these emerging guidelines and incorporate
elements of double materiality.
Our Materiality Process
ESRS 2 IRO-1

In preparation for CSRD compliance we chose torethink our methodology and refresh our materiality
to ensure we continue to focus on our most significant
sustainability impacts. Moving forward, we will conduct
assessments annually. This assessment covers Ford
Motor Company and all wholly owned subsidiaries.
We recognize that we are in a transition period as we
prepare for future CSRD reporting, and we expect that
our approach will evolve further in future.
This year’s approach allowed us to consider our
impacts on sustainability matters more objectively.
We leveraged extensive outputs gathered during our2023 assessment, which engaged internal and external
stakeholders, including industry associations and nongovernmental organizations (NGOs), and internal subject
matter experts.

In 2023, we sought to achieve a balanced andcomprehensive review of topics covering allenvironmental, social, and governance areas likely tobe relevant across Ford’s value chain. We began our
2024 assessment by reviewing and building upon thatlist of topics and their definitions.
Identified topics were supplemented with additional
desk-based research given the fast-changing landscapein which we operate. We considered key sustainability
trends, industry trends, a benchmark of our peers, andsustainability standards and frameworks, most notably
the European Sustainability Reporting Standards (ESRS)
which define the reporting requirements of the CSRD.

Some topics were separated to allow for a more focused
assessment, while other topics were streamlined andgrouped, where appropriate. For example:
ó Environmental Management has been split into its
constituent parts of biodiversity and ecosystems; air,water and soil pollution; and water resources.

Topics are aligned with CSRD andstated in alphabetical order
Higher Impact Topics
Climate Change
Human Rights

ó Human Rights and Supply Chain Management has been
split to allow the human rights and governance areasof supply chain to be assessed separately.

Supply Chain Managementó Corporate Governance and Risk Management has beengrouped with Transparency, Business Ethics, andIntegrity into the combined topic Business Conduct.

High Impact Topics

We also considered the risks and opportunities
associated with each topic, the interests and expectationsof stakeholders, as well as Ford’s organizational purpose,
strategies, and goals. Not only did this approach ensurecomprehensive coverage, but it also enabled us to adjust
several existing topics.

Given the inherent interdependencies between topics,
we have decided to move Electric Vehicles, a key pieceof our climate change strategy, under Climate Change
for the purpose of this report. Similarly, Accessible andAffordable Mobility Solutions has been redefined as partof climate justice.

Biodiversity and Ecosystems

To identify the significance of each identified topic,
we assessed the severity and likelihood of impacts
and the magnitude and likelihood of financial risks andopportunities. Results were then shared and discussedwith internal subject matter experts and adjusted asneeded. This resulted in a topic prioritization list that
was also calibrated with subject matter experts.

Environmental justice, including climate justice, and Just
Transition sit at the intersection of many material topics.
For the purpose of this report, climate justice is covered
under Climate Change and Just Transition is covered
under Human Capital Management.

Water Resources

This Integrated Sustainability and Financial Report
is structured to provide proof points on Ford’s impacts
on each of the material topics identified.
Our Material Topics
ESRS 2 SBM-3

It is important to note that our approach is evolving,
and that a like-for-like comparison is not possible withour 2023 materiality assessment.

Product Safety and Quality

Air, Water, and Soil Pollution

Circular Economy and End of Life
Connected Vehicles and Digital Services
Human Capital Management and Diversity, Equity,and Inclusion

Moderate Impact Topics
Business Conduct
Customer Experience and Responsible Marketing

Read More

In Climate Change on p.45

Data Protection, Privacy, and Cyber Security

In Human Capital Management and DEI on p.104

Employee Health and Safety

We have identified four topics as our highest priorities:
climate change (including energy use), human rights,
supply chain management, and product safety andquality. These topics are listed in alphabetical order,
not in order of importance.

Socioeconomic Contribution and Community
Engagement

Read More

About the full topic definitions and associated subtopics in Appendix 1

Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices13
Materiality Assessment —Sustainability Strategy — Sustainability Aspirations —Accelerating Progress — Create Sustainable Value —Human Rights Saliency Assessment —Stakeholders

Our Sustainability Strategy
ESRS 2 SBM-1

Our sustainability strategy is to makea positive impact on society and theenvironment.
Sustainability topics are entwined with our purpose:
To help build a better world where every person is free
to move and pursue their dreams. It’s at the heart ofeverything we do.
Our Strategies
We have developed these specific strategies to address
the collective challenges the world faces and achieve
our Sustainability Aspirations.
Read More

In Sustainability Aspirations on p.14

Climate Change Strategy

Ford Integrated Sustainability and Financial Report 2024

To achieve our carbon neutrality goal, we are focusing
on three areas that account for approximately 95% of ourcarbon dioxide emissions — our vehicles, our operations,and our supply chain. Addressing the largest emissions
source, our vehicle use from a well-to-wheel perspective,
Ford’s investment in electric vehicles is a core element ofour climate change strategy.
Read More

In Climate Change, Carbon Neutrality Overview on p.59

Energy Strategy
We are committed to sourcing 100% carbon-freeelectricity for our global manufacturing operations
by 2035 through a mix of wind, solar power, nuclear,geothermal, biomass, and hydro. We are using ourpurchasing power to invest in renewable electricity,
including in southeast Michigan.
Read More

In Climate Change — Achieving Carbon Neutrality on p.59

Sustainable Materials Strategy
Using recycled and renewable materials helps reduce
waste and lower need for new materials. We aspire touse only recycled or renewable content in vehicle plastics.
Our near-term target is to use 20% recycled or renewableplastics by 2025 in new vehicle designs for North America
and Europe, including Turkey, and 10% for China. Ford’s
closed loop recycling system maximizes aluminum
recycling, reduces the energy needed to create new primaryaluminum, and minimizes the need for raw materials.
Read Moredecision-making and our actions, and extends to our
suppliers and business partners, from the origin of the
raw materials used to make our products to the end oflife of these products. Guided by our We Are Committed
to Protecting Human Rights and the Environment policy,
our goal is to ensure that everything we do, or that
others do for us, meets or exceeds the minimum
regulatory requirements and strives to create a positive
impact on people and the planet.
Read MoreIn Human Rights on p.88

In Circular Economy and End of Life on p.76

People Strategy

Waste Strategy

Diverse representation, equity, and inclusion are thebedrock of our people strategy. We are committed tofinding, hiring, developing, and retaining great talentthat is inclusive of everyone in the communities that
we serve. We are committed to structural and systemic
equity at every stage of the employee journey. Every
employee is expected to support each other, to learn
about people different than themselves, and disrupt
bias in everyday behaviors and decisions. Ford supportsa just transition by preparing our workforce and local
communities for the transition to EVs.

We are focused on managing and minimizing the waste
we generate to reach true zero waste to landfill acrossour global operations. We aim to eliminate single-use
plastics from our operations by 2030.
Read Morein Circular Economy and End of Life on p.76

Water Strategy
Ford is committed to reducing water use, aspiring to use
freshwater only for human consumption and make zerowater withdrawals for manufacturing processes in orderto support freshwater availability in local communities.
To further decrease our water consumption, we continue
to integrate more water efficient processes andtechnologies in our manufacturing systems.
Read More

In Water Resources on p.82

Human Rights Strategy
Ford is committed to respecting human rights, including
the right to clean air and clean water, across our entire
business and value chain. This commitment guides our

Read More

The CSRD requires disclosures against the European
Sustainability Reporting Standards (ESRS). Throughout
the report you will see ESRS tags on some chaptersor sections, such as the “ESRS 2 BP-1” above, indicating
which disclosures we are addressing in that section.
All 2024 ESRS disclosures for Ford Motor Company
are contained within this Integrated Sustainability and
Financial Report. We are voluntarily phasing in these
disclosures in the 2024 report, not all ESRS required
disclosures are included at this time. We are working
towards full CSRD reporting compliance in our 2025
Integrated Sustainability and Financial Report.
Time horizons in this report are consistent with our
climate reporting and cover three time horizons: shortterm (<5 years), medium-term (5–10 years), and longterm (>10 years).
There are also disclosures in this report that stem fromother regulations and frameworks including, but notlimited to, the German Supply Chain Due Diligence Act,The Global Reporting Initiative (GRI), the Task Force on
Climate-Related Disclosures (TCFD), and the United
Nations Guiding Principles Reporting Framework(UNGPRF).
Read MoreIn Appendix 2 — CSRD Index on p.170

In Human Capital Management and Diversity,
Equity, and Inclusion on p.104

In Appendix 4— TCFD Index on p.188

Sustainability Reporting Strategy

In Appendix 6— UNGPRF Index on p.191

Basis for Preparation of Sustainability Statement
ESRS 2 BP-1, ESRS 2 BP-2

This Integrated Sustainability and Financial Reporthas been prepared in alignment with the EU Corporate
Sustainability Reporting Directive (CSRD) expectations
around the structure of our sustainability statement
on a global consolidated basis for Ford Motor Company
and its wholly owned subsidiaries.

Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices14
Materiality Assessment —Sustainability Strategy —Sustainability Aspirations —Accelerating Progress —Create Sustainable Value — Human Rights Saliency Assessment —Stakeholders

Our sustainability efforts drive our business today, and inform
our way forward as we transform our business for a new eraof electric and connected vehicles. Our aspirations set thepathway for our continued success, for generations to come.

Climate Change

Materials
Utilize only recycled or renewable
content in vehicle plastics

Achieve carbon
neutrality no later than 2050

!9

Waste
Reach true zero waste to landfill
across our operations
Eliminate single-use plastics from ouroperations by 2030

Air
Attain zero emissions from ourvehicles and facilities

N

Our
Sustainability
Aspirations

0

SafetyWork toward a future that is free fromvehicle crashes and workplace injuries

00O'-QvO

Human Rights
Source only raw materials that are
responsibly produced

EnergyDiversity, Equity, and Inclusion

Use 100 percent carbon-free electricity
in all manufacturing by 2035

Support a diverse, equitable, and inclusive
workplace where each person is valued

0

N

Water
Make zero water withdrawals for
manufacturing processes
Use freshwater only for humanconsumption

AccessDrive human progress by providing
mobility and accessibility for allFundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices15
Materiality Assessment —Sustainability Strategy —Sustainability Aspirations —Accelerating Progress — Create Sustainable Value —Human Rights Saliency Assessment — Stakeholders

Accelerating Progress
As we continue on our sustainability journey, we are committed to having a
positive impact on people and the planet. Below, we have summarized our progress.
ESRS 2 SBM-1

Progress

ClimateChangeVehiclesReduce Scope 3 greenhouse gas (GHG)
emissions from use of sold products by 50%
per vehicle kilometer by 2035 (Science Based
Target initiative (SBTi) target, 2019 baseline)• Achieved a 6% reduction in our Scope 3 GHG emissions per vehicle kilometer since 2019

Offer a comprehensive and flexible rangeof electric, hybrid, and internal combustion
vehicles• Ford was the number 2 EV brand and we had the number 1 EV truck (F-150 Lightning) in the U.S. in 20233• F-150 Lightning went global for the first time with entry into Norway• Introduced lithium iron phosphate (LFP) batteries on Mustang Mach-E• We had the number 1 internal combustion engine (ICE) vehicle (F-150) and hybrid (Maverick) in the U.S. in 2023
• EcoBoost engines are deployed across nearly 100% of the portfolio for improved fuel economy• In 2023, we sold 270,000 hybrids globally, up nearly 20% year over year

Offer lower-carbon alternative fuel options• All our diesel vehicles are compatible with low-level biodiesel blends• In Europe, our Transit, Transit Custom, Transit Courier, Transit Connect, and Ranger are compatible withrenewable paraffinic diesel fuels, renewable diesel, and e-diesel (blends typically from 33% to 100%)

Support customers on their way to carbon
neutrality• Ford Pro services help optimize customer fleets and offer EV charging (public, depot, and employee home)• Promote “eco-driving” through training, information, and in-vehicle technology

Operations
Reduce GHG emissions from 2017 baseline by:• 18% by 2023 in global manufacturing• 76% by 2035 in global operations, in linewith our SBTi 1.5C pathway• Achieved absolute GHG emission reductions, since 2017, of:– 49.0% in our global manufacturing– 47.0% in our global operations (manufacturing + non-manufacturing)

Suppliers
Work with suppliers to better understand andreduce our collective environmental footprint
through CDP and our best practice climate
program• We have seen significant improvements in CDP and Manufacture 2030 (M2030) supplier engagement in 2023
• Received GHG emissions data from 377 suppliers, 20% more than 2022, using CDP Supply Chain program’s
Climate Change Questionnaire• Tier 1 suppliers not only engaging on the M2030 platform, but some are also requiring their suppliers
to participate

Address highest emitting materials used in
our vehicles• Ford has pledged to purchase at least 10% low-carbon aluminum and near-zero steel by 2030
• We have signed non-binding memorandums of understanding with strategic steel suppliers and are working
on a multi-material partnership to supply Ford low-carbon aluminum, lithium, and copper

Achieve carbon neutrality
no later than 2050
Read More

Ford Integrated Sustainability and Financial Report 2024

In Climate Change — Achieving
Carbon Neutrality on p.59

DECENTAND
WORKAND
11 SUSTAINABLE
7 AFFORDABLE
8 ECONOMIC GROWTH
CITIES AND
CLEAN ENERGYCOMMUNITIES

12 RESPONSIBLE

CONSUMPTION
AND PRODUCTION

13 CLIMATEA C T IO N

IBIB

Goals

.f'> I!

Sustainability Aspirations

UN Sustainable
Development Goals

Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices16
Materiality Assessment —Sustainability Strategy —Sustainability Aspirations —Accelerating Progress —Create Sustainable Value —Human Rights Saliency Assessment —Stakeholders

Accelerating Progress— continued
ESRS 2 SBM-1

UN Sustainable
Development Goals

Sustainability Aspirations

Goals

Progress

EnergyAchieve 32% renewable electricity by 2023
and 100% carbon-free electricity by 2035

• In 2023 our global manufacturing operations used:– 50.8% Renewable electricity– 70.5% Carbon-free electricity• Currently our manufacturing facilities in Europe, Mexico, and Ohio have the equivalent of 100% carbon-freeelectricity sourcing• Ford Argentina manufacturing facilities achieved 80% renewable electricity• In 2023, Ford and our joint venture partners installed on-site solar panels at Sacramento HVC/HCC Regional
Distribution Daventry Parts Distribution Center, Ford Thailand Manufacturing, Auto Alliance Thailand, andmultiple Changan Ford plants

Expand our use of sustainable materials
focusing on plastics, battery recycling, andsustainable sourcing• More than 85%4 of our vehicle parts and materials are recycled and reused at their end of life
• Established an interim target of 20% renewable and recycled plastics by 2025 in new vehicle designs forNorth America, Europe, and Turkey, and 10% in China• Recover up to 20 million pounds of high-strength, military-grade, aluminum alloy per month through theclosed loop recycling system used to build F-series• Used nine industry- and world-first plant-based materials in our production vehicles since 2000

11 SUSTAINABLE
CITIES
12 RESPONSIBLE
CONSUMPTIONAND
AND COMMUNITIESPRODUCTION

Global reduction of waste generated frommanufacturing by 5% (absolute volume)(2022 baseline)• 86 zero waste to landfill (ZWTL) sites• 77% of manufacturing facilities are true ZWTL

11SU
STA
IN
A
BLEC
ITIESA
N
DC
O
M
M
U
N
ITIES

Global reduction of waste disposed frommanufacturing by 10% (absolute volume)(2022 baseline)• Ford facilities around the world sent approximately 16,300 metric tons of waste to landfill, 8% less than in 2022

Work with selected suppliers to reduce ourcollective environmental footprint• Increased number of suppliers participating in the M2030 climate program, helping suppliers establish
science-based targets, and measure, manage, and reduce climate emissions, water usage, and waste

Use 100 percent carbonfree electricity in all
manufacturing by 2035
Read More

In Climate Change — Achieving
Carbon Neutrality on p.59

Materials
Use only recycled or
renewable content invehicle plastics

SIBLECONSUMPTI MATE
O
A
NPD
RODU
CTION
13 CLI A C T IO N
7 AFFRODABLE
AND1R2ESPONCLEAN
ENERGY

Read More

Ford Integrated Sustainability and Financial Report 2024

In Circular Economy andEnd of Life on p.76

Waste
Reach true zero waste
to landfill across ouroperations
Eliminate single-use
plastics from ouroperations by 2030
Read More

In Circular Economy andEnd of Life on p.76

12 RESPONSIBLE
CONSUMPTION AND
PRODUCTION

Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices17
Materiality Assessment —Sustainability Strategy —Sustainability Aspirations — Accelerating Progress —Create Sustainable Value —Human Rights Saliency Assessment —Stakeholders

Accelerating Progress— continued
ESRS 2 SBM-1

Progress

Air emissions reductions beyond CO2• Working to reduce vehicle emissions of non-CO2 pollutants, in accordance with increasingly stringent
standards around the world

Water

Reduce absolute freshwater use by 15% by 2025
(2019 baseline)• 19.4% reduction in absolute freshwater use since 2019
• More than 199 billion gallons of water saved since 2000

Make zero water
withdrawals for
manufacturing processes

Continue to work toward using freshwater
sources only for human consumption• Use of offsite alternative water was 9% in water scarce areas

Use freshwater only forhuman consumption

Work with Ford suppliers to reduce ourcollective environmental footprint throughour best practice climate program• Increased number of suppliers participating in the Manufacture 2030 climate program, helping suppliers
establish science-based targets, and measure, manage, and reduce climate emissions, water usage, and waste

Engage with our supply chain to understandand reduce its water footprint• 323 of our suppliers, a 25% increase from 2022, responded to the CDP Water questionnaire

Air
Attain zero emissions
from our vehicles
and facilities

GOOD HEALTH
WELL-BEING
3 AND

11SU
STAIN
ABLECITIESAN
DCO
M
M
U
N
ITIES

.

Goals

D

Sustainability Aspirations

UN Sustainable
Development Goals

Read More

In Air, Water, and Soil Pollution
on p.80

Read More

Ford Integrated Sustainability and Financial Report 2024

In Water Resources on p.82

WATER
6 ANDCLEANSANITATIONSTAIN
ABLECITIESANDCO
M
M
U
NITIES
11SU

12 RESPONSIBLE
CONSUMPTION AND
P R O D U C TIO N

Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices18
Materiality Assessment —Sustainability Strategy —Sustainability Aspirations —Accelerating Progress —Create Sustainable Value —Human Rights Saliency Assessment —Stakeholders

Accelerating Progress— continued
ESRS 2 SBM-1

DECENT WORK AND
EC ONOMC GROWTH

Ford Integrated Sustainability and Financial Report 2024

Assess Tier 1 suppliers’ compliance with Ford’s
Supplier Code of Conduct requirements andexpectations• Strengthened our Supplier Code of Conduct to reflect changing regulations and emerging issues and help
protect workers, children, communities, the rights of Indigenous Peoples, and the environment in areas wheremines and processors operate• Conducted 46 on-site audits with the Responsible Business Alliance (RBA) to confirm compliance with our
Supplier Code of Conduct• Began conducting Responsible Supply Chain Initiative audits throughout our supply chain in addition to
Responsible Business Alliance audits• Conducted 1,298 total supplier audits since 2003 and 1,725 follow-up audits

Build capacity of raw material supply chainsto responsibly source/produce to third-party
standards• Conducted RSC Global and Initiative for Responsible Mining Assurance (IRMA) EV Battery Material supply chain
audits and supported suppliers to develop corrective action plans as needed• Expanded supply chain audits to include suppliers using graphite and mica
• Request IRMA or Responsible Minerals Initiative (RMI) third-party certification of materials• Trained 1,632 suppliers in due diligence related topics• Supported RCS Global Better Mining project in the Democratic Republic of the Congo (DRC) to build capacity
for artisanal and small-scale cobalt mining• Continued support for women’s empowerment project to advance financial literacy to ensure business andco-op success for artisanal cobalt miners in the DRC

Increase transparency, traceability, and due
diligence in our EV battery material supply
chainsiii

1
2
R E S P O N S IB L E
CONSUMPTION

8=• Integrated sustainability metrics into sourcing decisions• Held direct engagements to train 48 suppliers, and supported 160 country-specific webinars from Drive
Sustainability for suppliers

11SUSTAINABLECITIES ANDCOMMUNITIESll!§

10 REDUCEDINEQUALITIESHelp suppliers build their capacity to manage
supply chain sustainability issues

5 G E N D ER
E Q U A L IT Y

AFFORDABLE AND
8
6
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A
N
W
A
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Read MoreIn Human Rights on p.88

4Q
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IT
YE
D
U
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A
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r:::;

Source only raw materials
that are responsibly
produced

GOOD HEALTH
WELL-BEING
3 AND

-·

• Updated our We Are Committed to Protecting Human Rights and the Environment policy to formally commit
to the United Nations Declaration on the Rights of Indigenous Peoples (UNDRIP). Additional policies related
to supporting a living wage, not engaging in unlawful eviction, and the use of security forces with proper
supervision and due diligence were added in 2023
• Ranked first overall in Lead the Charge Coalition’s annual Leaderboard report, which evaluates leading
automakers on their efforts to eliminate emissions, environmental harms, and human rights violations fromtheir supply chains• Trained 406 Ford supply chain employees and 400 other employees in Supply Chain Sustainability topics

!iii

Human
RightsWe are committed to protecting human rights
and the environment=i;iProgress

=5::

Goals

a

Sustainability Aspirations

UN Sustainable
Development Goals

13CLIMATE ACTION

Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices19
Materiality Assessment — Sustainability Strategy — Sustainability Aspirations — Accelerating Progress — Create Sustainable Value — Human Rights Saliency Assessment — Stakeholders

Accelerating Progress— continued
ESRS 2 SBM-1

Sustainability Aspirations

Goals

Progress

SafetyProduct Safety and Quality
Design and manufacture vehicles that offer
innovative driver assist technologies• For the 2024 model year, Pre-Collision Assist with Automatic Emergency Braking (AEB) is offered standard on
98% of Ford and Lincoln cars, light duty trucks5 and SUVs
• BlueCruise offers new features and system updates that make hands-free highway driving even better• Consumer Reports named BlueCruise the best Level 2 Automated Driving System for the second year in a row

Play a leading role in vehicle safety and driverassist research and innovation• For the 2023 model year, multiple Ford and Lincoln nameplates were rated with 5-Star Overall Vehicle ratings
by New Car Assessment Programs (NCAP), including 10 in the U.S., 7 in Europe, 7 in China, and 5 in theInternational Markets Group (IMG)

Employee Health and safety
Fatalities target is always zero

• There was one employee fatality globally in 2023. Any loss of life or serious injury in the workplace is
unacceptable and deeply regretted. Robust corrective actions have been implemented to prevent
reoccurrence and reduce risk to our employees and contractors working on site

Zero serious injuries, attain industry competitive
lost time, and drive continuous improvement• Our global Lost-Time Case Rate (LTCR) was 0.40

Maintain or improve employee personal healthand wellbeing• Our global, holistic approach to employee support and care encompasses the physical, mental, financial,social, and professional wellbeing needs of our employees

Work toward a futurethat is free from vehicle
crashes and workplace
injuries

In Product Safety and Quality
on p.99

UN Sustainable
Development Goals

Fundamentals —Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices20
Materiality Assessment —Sustainability Strategy —Sustainability Aspirations —Accelerating Progress —Create Sustainable Value —Human Rights Saliency Assessment —Stakeholders

Accelerating Progress— continued
ESRS 2 SBM-1

Sustainability Aspirations

Goals

Progress

Diversity,
Equity,andInclusion

Embed Diversity, Equity and Inclusion (DEI)
across the enterprise• Focused on the long-term cross-functional work required to put the resources and systems in place toequitably support each employee’s career journey, and to grow and sustain an inclusive, global workplace

Create an environment of inclusion• 90% of participants in the 2023 Global Salaried Voice Survey responded that their People Leader treats
everyone on their team fairly and equitably, regardless of their differences; up from 86% in 2022
• 87% of Global Salaried Voice Survey participants feel they can be themselves at Ford, up from 82% in 2022

Support a diverse,
equitable, and inclusive
workplace where each
person is valued

Promote gender and racial equity while
reducing bias in all people and business
policies, processes, and systems• Published U.S. Gender and Race/Ethnicity Metrics and our annual EEO-1 report• Included in 2023 Bloomberg Gender-Equality Index, our fifth year in a row on the index

In Human Capital Management
and Diversity, Equity, andInclusion on p.104

Continue to purchase from small businesses
and businesses owned by veterans, minorities,
women, LGBTQ+ people, and people withdisabilities• In 2023 we purchased goods and services from minority-owned suppliers, women-owned businesses,
veteran-owned companies, and small businesses

AccessAdvance Ford L2 and L3 Advanced Driver
Assistance Systems (ADAS) systems• Maintained our focus on offering L2 and L3 driver assistance applications that can add convenience and help
make transportation even safer• We remain committed to using vehicles and technology to expand access and provide equitable opportunities
for people and communities to move forward

Drive human progress byproviding mobility andaccessibility for all

In Connected Vehicles andDigital Services on p.40

UN Sustainable
Development Goals

Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices21
Materiality Assessment —Sustainability Strategy —Sustainability Aspirations — Accelerating Progress —How We Create
Sustainable Value

Create Sustainable Value —Human Rights Saliency Assessment —Stakeholders

Our Purpose
To help build a better world, where every person
is free to move and pursue their dreams.

ESRS 2 SBM-1

Our Enablers

è

Our Businessè

Human Capital1• 174,000 employees• 8,000+ dealerships• 1,600+ Tier 1 suppliers• 10 Employee Resource Groups

Social Capital

Our Impact in 2023
Employees

Communities and Society• Health and wellbeing programs for
employees and families• Competitive salaries and benefits• Employee training and development• Culture of caring and inclusion• Invested $73.7 million in charitable
contributions• 2.3 invested in communities globally
since 1949
• 1.7 million employee volunteer hours since2005 through the Ford Volunteer Corps• Responsible mineral sourcing programprovides training to advance financial literacy
for women in the Democratic Republic of
the Congo

Customers• Community Relations department focused on engagement with
manufacturing communities• Community engagement for 70+ years through Ford Motor
Company Fund, our philanthropic arm• Partnerships with nonprofits, community organizations, and Forddealers in 40+ countries• Strategic partnerships with investors, industry bodies, and partnercompanies• Blue Table Forum• STEM programs and EV training centers to develop future
workforce• 4.413 million wholesale vehicles soldglobally• 130,905 EVs sold globally• Access to EV charging networks• Remote Pickup & Delivery and Mobile
Service vans
• Improved vehicle safety and driver assist
technologies• 109 safety recalls and 7.8 million passenger
vehicle recalls globally

Financial Capital

Investors• Fully allocated $4.21 billion through two Green Bond issuances
under our Sustainable Financing Framework, all proceeds went
towards Clean Transportation• Strong balance sheet• Financial flexibility to invest in Ford+
growth plan
• Disciplined capital allocation• Focus on total shareholder return• More transparent reporting for investors

Manufactured Capital• 41 manufacturing and assembly plants6• Product Development Center• Modernizing EV production

Intellectual Capital• 2,133 global patents issued• 379 patents issued in EV technology• Connectivity and connected services• FordPass network• Global Data Insight and Analytics• D-Ford human-centered design process

Natural Capital• 10.09 billion kWh of energy used
• 50.8% of electricity used at manufacturing facilities was
renewable, and 70.5% carbon-free• 15.6 million cubic meters of water used globally• 9 renewable materials used

Suppliers
1 Design
We consider sustainability criteria
to reduce our vehicles’ impacts

4 Manufacturing
We invest in lean processes andworld-class factories to create
positive impact

7 Our Vehicles in Use
We are continuously improving
our vehicles' environmental
impact, safety, and quality

2 Responsible Sourcing
We require suppliers to haveenvironmental and social standardsaligned with ours

5 Logistics (outbound)
We encourage our logistics
providers to transport finishedvehicles efficiently

8 Mobility
We are exploring new solutions to
support urban mobility

3 Logistics (inbound)
We encourage our logistics providers
to transport and deliver materials andparts efficiently

6 Sales and Service
We are reimagining customer
experience by listening andadapting to their needs

9 End of Vehicle Life
Over 85%4 of our vehicle parts andmaterials are recycled and reused• Training to build capacity to manage
supply chain sustainability issues• Integrated sustainability metrics into
sourcing decisions• Sustainability best practices shared with
suppliers through best practice climate
program• CO2e emission reduction targets collected
and assessed to develop joint roadmap
supporting carbon neutrality aspiration• Increased transparency into supply chainsto support responsible sourcing of raw
materials

Planet• 387 million metric tons of greenhouse gases(GHGs) emitted total (Preliminary 2023 Scope
1, 2, and 3)• 47% reduction in Scope 1 and 2 operations(manufacturing + non-manufacturing) GHG
emissions since 2017
• 19% reduction in total Scope 3 GHG emissions
since 2019
• Used 15.6 million cubic meters of water,
achieving a 19.4% reduction from 2019
• 86 true zero waste to landfill sites• Sent 16.3 million kilograms of waste tolandfill and recycled 938.8 million kilograms• Recycle millions of pounds of aluminum
per monthFundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices22
Materiality Assessment — Sustainability Strategy — Sustainability Aspirations — Accelerating Progress — Create Sustainable Value — Human Rights Saliency Assessment — Stakeholders

Our Human Rights
Saliency Assessment
Ford uses a saliency assessment to
identify and prioritize the company’s key
risks associated with human rights, andareas where we can make an impact.
The saliency assessment identifies potential high-risk
human rights areas within our operations and along ourvalue chain. Starting in 2023, in response to new due
diligence laws, such as the German Supply Chain Due
Diligence Act, we have changed how we conduct saliency
assessments and risk assessments. In addition to humanrights, we have expanded the scope of environmental
issues addressed in the saliency assessment. We plan
to review and update the salient issues and key risks
to the company annually. This saliency assessment isaligned with the United Nations Guiding Principles
Reporting Framework.
Saliency Assessment Process

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In early 2023, we worked with an outside consultant toreview and update our prior saliency assessment toensure the salient human rights and environment-related
issues were still valid. We then updated the definitions
based on recent trends and developments, as well as thescope of what the issues encompass.
Our saliency assessment includes four phases:
identification, prioritization, validation, and reporting.

a,a:For more information on past salient human rights
assessments and processes, you can view our previously
standalone 2022 Human Rights Report and 2023 Human
Rights Progress Report under “Previous Sustainability
and Financial Reports” on our sustainability website.
Read More
On our sustainability website

Determining Saliency

Identification

Prioritization

Validation

ReportingIdentify the full range of human rightsthat could potentially be negatively
impacted by Ford's activities or
through business relationships:

Prioritize potential negative impacts:

Engage with internal and external
stakeholders to:

Based on the validated list of salient
human rights issues, develop thisstand-alone Human Rights reportto explain:- Conduct desktop research- Involve all relevant functions- Engage with key stakeholders
to gain perspectives of thoseindividuals who may be
negatively impacted

Engagement mechanisms- Firstly based on their potential
severity:- How grave the impact would be- Explain key findings of the saliency
assessment- How widespread the impact
would be- Check whether any considerations
have been missed- How hard it would be to remedy- Validate the list of salient humanrights issues- Secondly based on their likelihood- What each issue is about- Why it is important- Who is impacted- How Ford is managing the issue- What is the progress made during
the year- Plot the impacts along Ford's value
chain to understand where theyoccur and Ford's degree of control
over them- What is our priority going forward- Pre-interview questionnaire- Survey for Ford employees and dealers- Interviews with internal and external
subject matter experts- Validation workshop with subject
matters experts

Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices23
Materiality Assessment — Sustainability Strategy — Sustainability Aspirations — Accelerating Progress — Create Sustainable Value — Human Rights Saliency Assessment — Stakeholders

Our Human Rights Saliency Assessment— continued

Saliency Assessment Results0(A

Our 2023 saliency assessment resulted in an updated listof human rights and environment-related salient topics,
as seen here. You can read more about each of these
topics and the work being done in this chapter andthroughout the report.

~

Most salient Human
Rights Issues~

forFord

Clean, Healthy and Sustainable Environment~0

Sustainability Aspiration:
Achieve carbon neutrality no later than 2050.
Attain zero emissions from our vehicles and facilities.

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Issues (listed alphabetically)

UN SDGs

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2 Fair and decent work0 Cl) G)
Forced Labor, child Labor
3 andhuman trafficking
V V
4 Harassment and discrimination E) G)
5 Health and safety
8 Cl) Q
6 Impacts of EV transitionCl) Q G)
7 Rights of Indigenous Peoples 8 Q G)Q '9

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greenhouse gas reduction targets, action plans, andtransparent reporting mechanisms.
Access to EVs can help provide health, economic, andmobility benefits, especially in communities that beara disproportionate burden from climate change andair pollution.
Efforts to further decrease our water consumption
continue at Ford plants around the world. We continue tointegrate more water-efficient processes and technologies.
Read More

Make zero water withdrawals for manufacturing
processes and use freshwater only for humanconsumption.

In Climate Change on p.45

Human Rights Salient Issue:
Human-driven climate change, biodiversity loss, and air
and water pollution impact current and future
generations’ enjoyment of a clean, healthy, andsustainable environment and have negative implications
for the enjoyment of all human rights.

Fair and Decent Work

2023 Update:
Climate change — which creates extreme weather eventsand causes natural disasters, rising sea levels, floods,
heatwaves, drought, water scarcity, and the spread of
disease — threatens the human rights of millions ofpeople around the world, including the right to life,
water and sanitation, food, health, housing, selfdetermination, culture, and development.
Our strategy to achieve carbon neutrality by 2050
addresses the three areas that together account for
approximately 95% of our carbon dioxide emissions:
our vehicles, our operations, and our supply chain.
Our Supplier Code of Conduct requires Ford suppliers(and their subcontractors) to establish science-based2023 Update:
Our We Are Committed to Protecting Human Rights andthe Environment policy mandates that we “Comply withapplicable laws regulating hours of work and support aliving wage by providing competitive compensation andbenefits that meet or exceed legal requirements.”
Read MoreIn Human Capital Management and Diversity,
Equity, and Inclusion on p.104

Forced Labor, Child Labor, and Human Trafficking
Sustainability Aspiration:
Source only raw materials that are responsibly produced.

In Air, Water, and Soil Pollution on p.80
In Water Resources on p.82

Sustainability Aspiration:
Support a diverse, equitable, and inclusive workplace
where each person is valued.
Human Rights Salient Issue:
Fair and decent work encompasses a wide range ofrights related to labor and working conditions. This
includes the right to just and favorable conditions ofwork; equal, fair, and living wages; the right to collective
bargaining and freedom of association; and reasonable
limitation of working hours. Equal opportunity andtreatment must be afforded to all workers without
distinction, exclusion, or preference made on the basisof race, color, sex, religion, political opinion, national
extraction, or social origin, or any other characteristic
protected by the applicable law.

Human Rights Salient Issue:
Forced labor practices include slavery, child labor, debt
bondage, and deceptive recruitment for labor or services.
It refers to circumstances where employees are exploitedand deprived of freedoms, or are pressured, tricked, or
threatened for financial gain by others. Human trafficking
is the recruitment, transportation, transfer, harboring,or receipt of people through force, violence, fraud, or
deception, with the aim of forcing them to work against
their will and exploiting them for profit.
2023 Update:
Forced Labor and Ethical Recruitment
We continue to work with our suppliers to ensure that
their policies align with the Ford Supplier Code of
Conduct, which expressly mandates that our suppliers“neither use nor condone forced or compulsory laborin any form and do not employ any form of abusive
disciplinary practices” and “follow ethical recruiting
practices.” We provide training to support suppliers in
updating their policies to align with the Supplier Codeof Conduct. Our focus is on helping all of our suppliers
meet our environmental, social, and governance (ESG)
commitments, build their capacity, and improve theirbusiness practices.

Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices24
Materiality Assessment —Sustainability Strategy —Sustainability Aspirations —Accelerating Progress —Create Sustainable Value — Human Rights Saliency Assessment —Stakeholders

Our Human Rights Saliency Assessment— continued

We are conducting additional risk assessments basedon due diligence regulations. Based on identified risks,
we are prioritizing our due diligence actions and taking
specific actions as required in our supply chain. Our
efforts include supply chain mapping, supply chain datatransparency, and supplier audits, which are critical toensure our compliance. For any concerns raised by third
parties, we are utilizing our due diligence process toinvestigate the issue and understand our corporate andsupplier involvement.
Child Labor
Our commitment to global good includes a pledge
to eliminate child labor and a promise not to employ
anyone under the age of 15 unless it is for a training
program that clearly benefits the worker.
We have reviewed our contracted recruiting firms toensure our hiring practices are aligned with our Global
Terms and Conditions and Supplier Code of Conduct.
We also have increased audits within Ford manufacturing
facilities to ensure compliance with our child labor andhuman rights policies and expectations.
Also, we continue to audit suppliers that have beenassessed as having the highest risk of human rights
violations. In 2023, audits did not reveal any instances ofchild, forced, or involuntary labor. We continue to evolve
our risk management system including continuous
evaluation of our high-risk considerations.
In 2023, a media outlet raised allegations regarding
potential child labor occurring in Ford’s supply chain.
We take these allegations seriously. Ford prohibits theuse of child labor in any form and requires our suppliers
to enforce similar policies. At the end of March 2023,
Ford completed a comprehensive audit of the suppliermentioned in the article, including a third-party review
by the Responsible Business Alliance, and no evidence ofchild labor was found at the supplier’s facility. That said,

we used the opportunity to identify and improve
weaknesses in the supplier’s policies and businesspractices, implementing electronic document verification
at every stage of the hiring process. Additionally, we areconducting ongoing supplier risk assessments and audits
beyond the supplier mentioned in the story. We havealso strengthened our Supplier Code of Conduct tomitigate increased risks related to labor shortages
coupled with high immigration.
Human Trafficking
As a global force in human rights, Ford is committed
to prohibiting forced labor in our business. To that
end, we are focusing our efforts on our own operations
and working with suppliers to aggressively monitor
and influence the behavior of our company, affiliates,and suppliers.
Our We Are Committed to Protecting Human Rights andthe Environment policy commits us to preventing forcedlabor and human trafficking, and our Global Modern
Slavery and Human Trafficking Transparency Statement
outlines steps we are taking to ensure that slavery andhuman trafficking are not occurring in our supply chainsor other parts of our business.
Through our membership in the Responsible Business
Alliance (RBA) we are assessing our operations andsupply chain. We have increased human rights risk
assessments in both our own operations and throughout
our supply chain.

Human Rights Salient Issue:
Everyone has the right to freedom from violence andharassment at work. Harassment covers a broad range of
unwelcomed behaviors that are humiliating, intimidating,or offensive in nature. Instances of harassment do notneed to be intentional and they can occur as a once-offor repeatedly over a period of time. Employees have theright to equal employment opportunity. Discrimination
occurs when an individual, or a group of people, istreated less favorably than another because of certain
characteristics, such as race, color, religion, sex (including
gender identity, sexual orientation, and pregnancy),
national origin, age, disability, or genetic information.
2023 Update:
Ford is committed to supporting and sustaining adiverse, equitable, and inclusive workplace. As we move
forward, our intention is to harness the power of atalented and diverse team to help fuel our transformationand further empower Ford to better serve the diverse
customers and communities where we live and work.
We respect the different cultures and beliefs of our teammembers, customers, and the communities we serve.
We are committed to speaking up and preventing
retaliation. We encourage our employees to speak up
if something doesn’t seem right or might violate ourpolicies, our Code of Conduct, or the law. Ford will
support and protect anyone who raises a good-faithconcern and strictly prohibits retaliation against anyone
for reporting a suspected violation or for assisting withan investigation.

Health and Safety
Sustainability Aspiration:Work toward a future that is free from vehicle crashes
and workplace injuries.
Human Rights Salient Issue:
Physical and mental health and safety of employees
and workers in the supply chain is one component ofan adequate work environment that satisfies global
and national legal standards. This includes the mitigationof occupational hazards to ensure that the likelihood ofharm to employees is greatly reduced. Health and safety
also includes Ford’s product safety and quality andconsiderations of the end users’ physical safety as they
use and operate Ford products. This is particularly
important with respect to emerging risks associatedwith electric vehicles.
2023 Update:
We are dedicated to creating vehicles that achieve thehighest levels of safety in a range of real-world
conditions and crash testing assessments. Our mission
is to make product quality one of the principal reasons
why customers buy Ford the first time — and every time.
The health, safety, and wellbeing of our people continues
to be a top priority for Ford. Many of our internal
standards go beyond applicable laws and regulations
so that we can meet our commitment to protecting thesafety of our workforce in all our locations.

In Product Safety and Quality on p.99
In Human Rights on p.88

Harassment and Discrimination
Sustainability Aspiration:
Support a diverse, equitable, and inclusive workplace
where each person is valued.

In Employee Health and Safety on p.110
In Human Capital Management and Diversity,
Equity, and Inclusion on p.104

Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices25
Materiality Assessment —Sustainability Strategy — Sustainability Aspirations —Accelerating Progress — Create Sustainable Value —Our Human Rights Saliency Assessment— continued

Rights of Indigenous Peoples
Human Rights Salient Issue:
Indigenous Peoples populated areas before the arrivalof others and often retain distinct cultural and politicalcharacteristics. Indigenous Peoples are equal to all otherpeoples and have the right to full enjoyment of all
human rights. This includes the right to self-determination
as well as maintenance, protection, and development of
manifestations of their culture, whether that be throughland, water, or sacred sites, and the principles of freeprior and informed consent. Indigenous Peoples continue
to suffer disproportionately from impacts of climatechange, environmental degradation, poverty, poor
access to education, and human rights violations. Over
50% of global mining projects sit on or near Indigenous
Peoples’ land.

Peoples’ rights and gain Free, Prior, and Informed
Consent.
Ford Australia operates on the lands of the Wurundjeri
Woi-wurrung people (near Melbourne), Wadawurrung
people (Geelong area), and several other indigenous
communities across the country.
Ford Australia developed a Land acknowledgement andpartnered with contemporary indigenous artist Brad
Turner in the creation of custom artwork to acknowledge
and pay respect to indigenous Ancestors and Elders. Ford
Australia acknowledges Aboriginal and Torres Strait
Islander people as the Traditional Owners of the land
where we proudly conduct our business.

In Human Rights on p.88

2023 Update:
Ford works to uphold the rights of Indigenous Peoples
throughout our value chain. We have updated our
We Are Committed to Protecting Human Rights and theEnvironment policy to formally reflect our commitment
to respecting the United Nations Declaration on the
Rights of Indigenous Peoples (UNDRIP) in both our own
business and supply chain.
As we directly source our EV battery material supply
chain, we are aware of the risk mineral mining may
pose to Indigenous Peoples’ rights. Consequently, our
Responsible Materials Sourcing Policy reflects ourrequirement that our raw material suppliers ensure Free,
Prior, and Informed Consent of indigenous communities
is pursued and obtained prior to projects or activities that
may affect their lands, resources, and rights.
In addition, we require that our raw material suppliers
obtain certification from the Initiative for Responsible
Mining Assurance or third-party certified equivalent,
which requires its members to respect Indigenous

Impacts of EV Transition
Sustainability Aspiration:
Achieve carbon neutrality no later than 2050.
Drive human progress by providing mobility andaccessibility for all.
Human Rights Salient Issue:
Ford’s transition from internal combustion engines toelectric vehicles creates specific risks and opportunities
for the progressive attainment of human rights. This
includes procedural rights risks, such as ensuring accessto information and meaningful participation in decisionmaking for workers, suppliers, and communities affectedby plant closures or other transition events.
2023 Update:
Ford recognizes that urgent action is needed to address
climate change. As we transition to EVs, we’re committed
to working closely with local communities andstakeholders to protect the environment and to create
jobs in the green economy. Supporting a just transition

to a sustainable EV future takes into account the people
and communities that will be impacted most by thispivotal change.

In Human Capital Management and Diversity,
Equity, and Inclusion on p.104

Emerging Salient Risk: Data Privacy and Use of AI
Emerging Salient Issue:
Privacy refers to the right to have personal informationand interactions protected from exposure to the public
and other unwarranted private entities. This issue isparticularly salient in the emerging global context ofcomplex artificial intelligence (AI) systems that rely on
the collection and usage of users’ personal data.
Concerns about the development of AI extend beyond
issues of privacy and data rights into freedom of choice,freedom of conscience, and the bias and discriminationthat may arise from input data or algorithms themselves.
2023 Update:
We have policies and procedures to address data
management and protect the privacy of our employees
and customers. We continue to adhere to the Automotive
Consumer Privacy Protection Principles developed by the
Alliance for Automotive Innovation. We are also a founding
member of the Information Sharing and Analysis Center,
which gathers, analyzes, and shares information tocombat cyber-related threats and weaknesses.

In Data Protection, Privacy, and Cyber Security on p.132

Human Rights Saliency Assessment —Stakeholders

Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices26
Materiality Assessment —Sustainability Strategy — Sustainability Aspirations —Accelerating Progress — Create Sustainable Value —Human Rights Saliency Assessment —Our Stakeholders
ESRS 2 SBM-2

Ford has a commitment to direct, open,transparent, and frequent engagementwith our stakeholders.
Throughout each year, management meets withinstitutional investors to discuss various matters,
including long-term strategy; financial and operating
performance; risk management; environmental, social,and governance (ESG) practices; and executive
compensation programs. We also engage with retailinvestors. These meetings are informative and, whereappropriate, we incorporate stakeholder suggestions into
our policy and strategic considerations, Proxy Statement,
and communications strategy.
Highlights from 2023 included:• Met with shareholders representing approximately
60% of our institutional equity investor base and fixedincome investors holding approximately 30% of ourunsecured debt outstanding, and with potential
holders of our equity and debt
• Participated in 18 conferences and 14 investor events,
including new financial reporting Teach In and CapitalMarkets Day• Hosted two non-deal roadshows, including one focusedon ESG• Held quarterly webcast earnings calls and postearnings sell-side calls• Completed a broad range of phone calls, emails, andother industry events

Blue Table ForumOur Value Chain

We established the Blue Table Forum in 2022. This
stakeholder advocacy program is focused on creating
and building a trusted community of organizational andinstitutional stakeholders from a diverse group of nongovernmental organizations (NGOs), nonprofits andacademic institutions. The goal is to initiate a dialogue
around critical issues faced and how we can work together
to build a carbon neutral transportation future. To date,
the program has engaged over 90 organizations and 175
influential thought-leaders with regional, national, andglobal representation and a diverse stakeholder networkof over 93 million including members, donors, volunteers,and partner organizations. Ford has also partnered withmembers of the Blue Table Forum to advocate for shared
policy positions on greenhouse gas emissions and fueleconomy standards, clean and low-carbon aluminum,
electric vehicle charging infrastructure, and more.

ESRS 2 SBM-1

Ford has an extensive value chain, including over 1,600
Tier 1 suppliers and even more Tier 2+ supplier upstream,
and over 8,000 dealers and countless customers andglobal communities downstream.

90+

Organizations
with regional, national, andglobal representation engaged
through Blue Table Forum(2022: 40+ Organizations)

175+

Influential
Thought Leadersacross NGOs, Nonprofits, and
Educational Institutions engaged
through Blue Table Forum(2022: 70+ Thought Leaders)

Stakeholders

Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices27
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Our Stakeholders— continued
ESRS 2 SBM-2

Key Stakeholders
Stakeholder

Importance

How we engage

Communities
Communities where we live and work and where we partner with businesses, schools,
nonprofit service organizations, and government organizations are critical to our future.
Through our Community Relations team, we focus on the communities in which we have
manufacturing facilities. We engage with these communities in multiple ways to manage
the impact Ford has on the community and understand the community sentiment.

Communities are the lifeblood of any society or culture.
By engaging with our communities, we can help people
in need, understand what our customers want, andstrengthen the bonds that make us a viable andrelevant business.

• Neighborhood Advisory Councils• Interactions with governments and regulators• Participation in and Sponsorship of Community Events• Membership associations• Dialogue with non-governmental organizations• Partnerships with community leaders, grassroots and nonprofit organizations, andlocal Ford dealers• Employee volunteerism, grantmaking, and philanthropic initiatives through theFord Fund• Government relations — supporting policy that benefits our communities

Customers
Our relationship with our customers is at the core of our company. We seek to engage ourcustomers in new and inclusive ways to get deeper knowledge of their wants and needs.
We want to go above and beyond to deliver products and services that customers can’t live
without and develop strong customer relationships that can last a lifetime. Together with
our dealers, we are creating a better purchase and ownership experience for our customers
to help build life-long trust and satisfaction. Customers engage with the company face-toface in our dealerships, over the phone, on our websites and social media, at our contact
centers, and inside our vehicles. And through our internal customer experiencemeasurement platform and market research, we listen and respond to customer feedback,increasing our understanding of their needs, concerns, and preferences, and providing
actionable insights to our dealers and touchpoint owners to drive enhanced experiences.

Without customers, Ford would not exist, so it’s vitalthat we do everything we can to nurture these
relationships and provide the products and services
they not only want and need, but can’t live without.

• Customer experience measurement platform• Market research• Loyalty and membership rewards programs• Dealer interactions• Ford service Pickup & Delivery and Mobile Service experiences• FordPass app• Ford.com website• Ford Owners magazine• Friends of Ford

Dealers
Dealers (sales and service people) are often the first Ford representatives that ourcustomers come in contact with. We rely on their expertise and dedication, actively
engaging and collaborating through Dealer Councils and roundtables, as well as thecreation of advertising and public service announcements. An important touchpoint for
us is the Dealer Attitude Survey, which provides us with useful information and insights.
To honor their excellence, we conduct our annual Salute to Dealers awards.

Dealers are an essential part of the Ford family because
they are the most direct link between our products andservices and our customers. Dealers are typically the
only connection customers have with Ford.

• Intranet communications• Brand sales and service representatives• Brand Dealer Councils• Dealer roundtables• Ford Guest Experience dealer training• President’s Circle• Salute to Dealers• Advertising and public service announcements• Dealer Attitude Survey

Through our philanthropic arm, Ford Fund, we’ve been giving back and building strong
communities for more than 70 years. Ford Fund co-creates and invests in partnerships andprograms across three impact areas: essential services, education for the future of work,and entrepreneurship. Working across the Ford network in the U.S. and around the world,
we provide access to resources and opportunities that build equity, help make people’s
lives better, and create opportunities for growth.

Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices28
Materiality Assessment —Sustainability Strategy —Sustainability Aspirations — Accelerating Progress —Create Sustainable Value —Human Rights Saliency Assessment —Stakeholders

Our Stakeholders— continued
ESRS 2 SBM-2

Stakeholder

Importance

How we engage

Employees
Employees are Ford’s number one asset. We can only operate successfully through their
hard work and dedication — from research scientists and truck drivers to productionengineers and accountants. To be in touch with our employees around the world, we use
every available tool and opportunity, including our intranet platform, social media sites,
facilities visits, and business meetings (online and in person), and executive Q&A sessions/
Town Halls with senior management. We strengthen employee relations by maintaining
an ongoing dialogue with union representatives and through joint labor-management
committees. And we gain valuable insights through employee surveys. The initiatives
implemented by our Global Diversity, Equity, and Inclusion (DEI) Office in collaboration
with our 10 Employee Resource Groups are also important catalysts for fostering a cultureof inclusion.

Ford employees run the organization at every level.
Their strength, commitment, and dedication, and theiremotional connection to the company, can’t be judged
only as assets with a monetary value. They are Ford’sheart and soul.

• Intranet site
• Monthly Town Halls with executive leadership• Integrated Sustainability and Financial Report• Social media applications• Union representatives• Joint labor–management committees• Webcasts, videos, blogs, and executive Q&A sessions with senior management• Listening sessions• Employee surveys• Global DEI office led Employee Resource Groups (ERGs)• Test drive and vehicle reveal events• Social Action Council

Investors, Analysts, and Shareholders
For our institutional and individual investors — our shareholders — to believe that Ford willcontinue to succeed financially, they tend to rely on the opinions and research done byfinancial analysts who study the company in great detail. To make sure we communicate
effectively with these financial stakeholders, we provide a broad range of materials,
including our Integrated Sustainability and Financial Report, Proxy Statements, our annual
report on Form 10-K (SEC filings), and quarterly earnings releases. These publisheddocuments provide vital information on the company that supplement our annual
shareholder meetings, investor conferences, and annual ESG roadshows.

Investors, analysts, and shareholders are instrumental
in providing capital to maintain and grow our business.
And since they are profit oriented, they insist that
capital is invested properly and funds are managed
accurately.

• Investment community forums• Quarterly earnings communications• Annual shareholders’ meeting• Integrated Sustainability and Financial Report• Investor website• Proxy Statement• SEC filings (e.g., 10-K, 10-Q, 8-K)
• Sustainable Financing Framework• Sustainable Financing Report• Ratings and rankings

Suppliers
Thousands of businesses, large and small, provide Ford with the materials, technologies,
and services that we need to produce market-leading, cost-effective vehicles. From engine
components to recycled fabric for car seats, we rely on suppliers from all over the world andmaintain stringent standards and rules to make sure our products are of the highest quality.
In addition to holding regular meetings with individual suppliers as required, we also share
best practices to help them with everything from improving workplace safety, treating
their employees fairly and without prejudice, and reducing their impact on the environment.
To strengthen these initiatives and relationships, we are also supporters and members andof a wide range of external supplier organizations, coalitions, and associations.

Suppliers play a huge role at every stage of the
product life cycle, from sourcing raw materials to
helping ramp up production, thereby making asignificant contribution to our value, growth, anddevelopment.

• Supplier Code of Conduct• Global Terms and Conditions• Top Supplier meetings• Manufacture 2030
• Supplier quality roundtables• Supplier training• Supplier Diversity Development Networking• External supplier organizations and partnerships• Third-party assurers including the Initiative for Responsible Mining, Responsible
Minerals Initiative, and Responsible Business Alliance• Drive Sustainability Self Assessment Questionnaires• Responsible Business Alliance Worker Voice Platform

Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices29
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Our Stakeholders— continued
ESRS 2 SBM-2

Ceres Stakeholder Engagement
As in recent years, a stakeholder team selected by Ceres
provided recommendations for our future reporting.
Representing a range of constituencies and expertise, themost recent Ceres stakeholder engagement convened on
January 31, 2024. Ford’s responses to a select number of
their recommendations are summarized below.
Ceres Recommendation:
Expand charging infrastructure by strengthening
strategic partnerships with utility companies andrelevant stakeholders.
Ford Response:
Collaboration plays an essential role as we work tostrengthen the charging infrastructure. That’s why we’ve
joined the U.S. Joint Office of Energy and Transportation
to launch the National Charging Experience Consortium(ChargeX Consortium), a new effort to rapidly develop
solutions to improve EV charging across the U.S.
This cross-industry group of automakers, charging
providers, utilities, and the Department of Energy (DOE)
national laboratories aims to drive innovation anduniversal enhancements around current and future
public charging infrastructure and the entire customer
experience.

In Electric Vehicles, Batteries and Charging Infrastructure
on p.34

Ceres Recommendation:
Explore and invest in opportunities for the second-life
applications and recycling of EV batteries and develop
the necessary infrastructure to support the circularityof battery usage.

Ford Response:
End of life vehicles are a crucial part of our supply chain,
and we are committed to increasing battery recycling.
To further these efforts, we support various battery
recycling companies, including with letters of support
for U.S. DOE grants.
We have also begun utilizing collection points to reduce
inefficiencies in shipping one-off, end of life batteries
across the country — this allows us to ship full-truck
loads reducing our environmental footprint. End of life
batteries are sent to recyclers who are dedicated torecovering the underlying raw materials with the intent
of reintroducing these materials into the broader battery
supply chain industry.

In Circular Economy and End of Life on p.76

Ceres Recommendation:
Establish and implement a policy on Indigenous Peoples’
Rights and Free, Prior, and Informed Consent (FPIC), in
accordance with the UN Declaration of the Rights ofIndigenous Peoples.
Ford Response:
Ford works to uphold the rights of Indigenous Peoples
throughout our value chain. We have updated our
We Are Committed to Protecting Human Rights and theEnvironment policy to formally reflect our commitment
to respecting the United Nations Declaration on the
Rights of Indigenous Peoples (UNDRIP) in both ourown business and supply chain.
Our Supplier Code of Conduct and Responsible Materials
Sourcing Policy reflect our requirement that our raw
material suppliers ensure Free, Prior, and Informed
Consent of indigenous communities is pursued andobtained prior to projects or activities that may affecttheir lands, resources, and rights.

In addition, we require that our raw material suppliers
obtain certification from the Initiative for Responsible
Mining Assurance or third-party certified equivalent, which
requires its members to respect Indigenous Peoples’
rights and gain Free, Prior, and Informed Consent.

In Human Rights on p.88

Ceres Recommendation:
Utilize Ford’s influence and resources to support andenhance small-scale mining operations, encouraging themto adopt and advance sustainable and responsible practices.
Ford Response:
Ford supports Better Mining, an on-the-ground program
to proactively identify risks and improve conditions innine artisanal and small-scale cobalt mine sites in the
Democratic Republic of the Congo. This program
contributes to building the capacity of legal artisanal andsmall-scale mining cooperatives and sector, supportingstate services to help achieve responsible practices in the
sector, and meet due diligence requirements. Capacity
building will also help mining communities meaningfully
participate in global supply chains.
In 2023, this effort led to tangible risk management
improvements, including the establishment of anaccessible grievance mechanism for the artisanal andsmall-scale mine sites being monitored, the preventionof incidents of child labor and work by individuals
without adequate personal protective equipment, as
well as the improvement of work and safety conditions
on mine sites.

In Human Rights on p.88

Ceres Recommendation:
Enhance battery safety measures in EVs to contain
isolated incidents and prevent escalation, while also
reinforcing overall vehicle design to ensure passenger
safety even in the event of component failures.
Ford Response:
Ensuring the safety and quality of EV batteries is crucial
to building trust in our fleet of electric vehicles. Every
Ford EV includes a battery quality operating system.
Quality checks and tight process controls are integrated
throughout the battery cell manufacturing and battery
pack screening during vehicle assembly. Once a vehicle
is built, Ford leverages cloud-based vehicle monitoringand detection and can communicate with connectedcustomers if a voltage anomaly is detected. Ford also
provides high voltage safety publications including a
Workshop Manual for vehicle technicians and an
Emergency Responders Guide for first responders.
Ford EVs are subjected to crash testing that far exceeds
the stringency of regulatory requirements. For example,
we conduct front, side, and rear impact crash tests at
5mph above the speeds required by safety regulations,which translates to increased impact energy and severity
as compared to what is required by law.
Ford has executed a number of battery safety projects
funded by the U.S. Department of Transportation
National Highway Traffic Safety Administration and the
U.S. Department of Energy to support governmental andindustry priorities in electrified vehicles. We are alsosponsoring and funding precompetitive battery safety
research projects related to EV and battery safety.

In Product Safety and Quality on p.99

Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices30
Overview — Business Segments — Electric Vehicles, Batteries, and Charging — ICE and Hybrid Vehicles — Connected Vehicles and Digital Services

Products
and Services
In this section:
31 — Products and Services Overview
32 — Customer Focused Business Segments
34 — Electric Vehicles, Batteries, andCharging Infrastructure
38 — ICE and Hybrid Vehicles
40 — Connected Vehicles and Digital Services

Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices31
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Products
and Services
Overview
We are on a journey to transform our company by building sustained,
always-on customer relationships through vehicles, software, andservices that are better for the planet, make life easier — and thatpeople won’t want to live without.

Our Sustainability Aspirations
Climate Change: Achieve carbon
neutrality no later than 2050
Access: Drive human progress byproviding mobility and accessibility for all

Building an Profitable and Efficient
EV BusinessElectric vehicles (EVs) will be an importantpart of our future. We are focused on
expanding our EV offerings, building a
profitable EV business and a flexible
industrial base for EVs that aligns capital
allocation with customer demand. We are:• Electrifying our icons, including Mustang
Mach-E, F-150 Lightning, and E-Transit
and adding the electric Explorer for Europe
to our first generation EV lineup in 2024
• Developing next-generation EVs witha step-function improvement in costcompetitiveness and profitability• Reimagining how our vehicles are built,
creating an all-new clean manufacturing
ecosystem• Expanding our charging network to remove
a key barrier to EV adoption

A Diverse Product Portfolio
We are continuously improving our internal
combustion engine (ICE) powertrains toachieve better fuel economy while meeting
increasingly stringent emissions criteria,
while also broadening our hybrid powertrain
offerings to give customers more options on
the path to carbon neutrality.
Customers Come First at Ford
Everything we’re doing is centered on whatcustomers want and need, showing them
the benefits of EVs, offering lower-emission
options, and introducing connected services
to enrich their lives. We’ve made acommitment to deliver world-class quality
and an effortless experience in every
segment in which we compete.

UN Sustainable Development Goals
We are contributing to the following UN
Sustainable Development Goals through actions
outlined in this chapter:

Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices32
Overview —Business Segments —Electric Vehicles, Batteries, and Charging —ICE and Hybrid Vehicles — Connected Vehicles and Digital Services

Customer Focused
Business Segments
ESRS 2 SBM-1

Aspirational Goals

ClimateAccessSalient Human Rights Issues

EV Transition

UN Sustainable Development Goals

Ford+ is our plan for growth and value
creation in an era of unprecedentedchange for our company and ourindustry. It enables us to thrive at theintersection of great vehicles, iconic
brands, innovative software, and highvalue services.
Central to unleashing the full potential of this plan was
standing up three distinct but interconnected customerfocused business segments in 2023 — Ford Blue, Ford
Model e, and Ford Pro. This allows Ford to offer broad
choice to customers across gas, hybrid, and electricvehicles as we move toward carbon neutrality. The
structure is already paying off with increased focus,
accountability, disciplined capital allocation, and theability to attract talent. It also gives us the speed andflexibility to adapt to the evolving needs of ourcustomers.
In 2023, we also established Ford Integrated Services, a
new team that will create and market software-enabledcustomer experiences across our business segments,
further accelerating our Ford+ transformation andhelping us capture new revenue streams.

In Human Capital Management and Diversity,
Equity, and Inclusion section on p.104

Ford Blue
Ford Blue leverages the strength of strong brands suchas Mustang, Bronco, and Raptor with durable pricing
power and will be introducing a wave of new products:
the new F-150, the Ranger, a brand-new Explorer andExpedition, and Lincoln Navigator and Aviator.
In Europe, we are bringing out new versions of Puma
and Kuga, our high-volume gas and hybrid SUVs. And theRanger pickup and our Everest SUV continue to gain
share in international markets. We believe Ford Blue will
be a strong and a growing business for years to come.

In ICE and Hybrid Vehicles on p.38

Ford Model e
EVs are here to stay, customer adoption is growing,
and their long-term upside is central to Ford+. We arecommitted to developing and delivering compelling,
software-defined EVs at scale — including trucks,
vans and SUVs in segments where we are strong, as
well as a new generation of smaller, more affordable
electric vehicles.
As we do so, we’re building on a strong EV foundation.
Our electric vehicle lineup continues to generate hugedemand as reflected in our status as number 2 in EV
sales in 20237 for the second year in a row. Sales volumesof the F-150 Lightning pickup and Mustang Mach-E SUV
both were up year over year with the Lightning the topselling electric pickup and the Mach-E the third mostpopular EV of any type in the U.S. for 2023.
Model e is also deep into development of the electricarchitecture and digital platform which will provide
the foundation for rapid innovation across all future
Ford vehicles.
Ford Pro
Ford Pro is a one stop shop for commercial businesses
with vehicles, software, charging, financing, and services
designed to meet the needs to small, medium, large, andgovernment fleets. Ford Pro helps accelerate productivity
for commercial and government customers by lowering
their total cost of ownership and reducing fleet
downtime with a leading lineup of specialized gas,hybrid, and EVs.

It’s a massive driver of our growth and profitability.
The network of thousands of local upfitters acrossEurope and North America, purpose-built design, and
BUILT FORD TOUGH work trucks and vans like Super
Duty, Ranger, and Transit, all, serviceable by Commercial
Vehicle Centers and Transit Centres, help customers
get the job done and stay on the road. In addition to
the E-Transit with enhanced range, we are preparing
to launch the new E-Transit Custom, E-Tourneo Custom,
Transit Connect plug-in hybrid (PHEV), and Tourneo
Connect PHEV in Europe.
When it comes to software and services, Ford Pro is
the tip of our always-on digital spear. Customers know
and trust our vehicles, and we’re building on this with
software-driven services that provide businesses withdata insights, vehicle access, control and functionality,
and charging and fleet management. This helps them
drive productivity and efficiency in their fleet operations.
Ford Pro is helping companies and governments aroundthe world accelerate their sustainability commitments
though electrification. For example, the United States
Postal Service announced in February 2023 that it willpurchase 9,250 E-Transit vans as it electrifies thecountry’s largest federal fleet.

In Connected Vehicles and Digital Services on p.40

Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices33
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ESRS 2 SBM-1

Building on Our Strengths in Europe
Ford is the number one commercial vehicle brand inEurope, leading the industry for the past nine years.
Ford in Europe is taking the next steps in thetransformation of our business in Europe, responding
to rapidly changing market conditions and a growing
field of electric vehicle competitors entering the market.
This transformation is designed to continue to deliveron our customers’ expectations of outstanding vehicle
design and quality and increasingly serve customers
with connected vehicle technology and services.
These actions will enable us to profitably compete witha new line-up of iconic passenger vehicles, while also
extending Ford Pro’s position as the best-selling brandin the commercial vehicle sector.
The new strategy aligns our product development
organization and administrative functions in Europe,with a smaller, more focused, and increasingly electric
product portfolio, creating a leaner, more competitive
cost structure for Ford in Europe.
To meet the evolving needs of commercial customers
around the globe, we have established a global
commercial vehicle Centre of Excellence in Dunton, UK,focused on helping businesses accelerate productivity
and sustainability with a range of world-class all-electricvehicles supported by Ford Pro’s ecosystem of softwareand services.
Our strategy to offer all-electric fleet vehicles in Europe
by 2035 is unchanged and bolstered by our commitment
to introduce new passenger and commercial EVs toEurope by 2024. We are embracing the incoming
technical standard for EVs (UN Regulations 100.3)
because it is consistent with our internal philosophy
to deliver safe, high-quality vehicles to customers
around the globe.

Ford in Europe will continue to invest in the design anddevelopment of electric passenger vehicles, meeting
consumer demand while at the same time targetingcarbon neutrality across its European facilities, logistics,
and key suppliers by 2035.
Ford in China
Our strategy to turn our business around in China is
gaining traction. The restructuring of our EV businessthere is nearly complete, and the internal combustion
engine business is now profitable. We are now expanding
China’s role to a profitable export hub. We’ve exported arecord number of vehicles from China to markets like
Mexico, South America, and Asia, and there is significant
opportunity ahead.
The China market is extremely competitive, but webelieve we can succeed by partnering where it makes
sense, and competing in very narrow segments where
we can clearly win, like commercial vehicles, off-roadvehicles, large SUVs, and Lincoln.

Number2
in EV sales in North America, for thesecond year in a row

Number1commercial vehicle brand in Europe

ICE and Hybrid Vehicles — Connected Vehicles and Digital Services

Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices34
Overview —Business Segments —Electric Vehicles, Batteries, and Charging — ICE and Hybrid Vehicles — Connected Vehicles and Digital Services

Electric Vehicles, Batteries,
and Charging Infrastructure
ESRS 2 SBM-1

Aspirational Goals

ClimateAccessSalient Human Rights Issues

We are focused on building a profitable
EV business that aligns manufacturing
capacity and capital allocation withcustomer demand.
2023 has been a year of challenges — and opportunities.
From the evolution of the EV market, to new global
competitors and technology disruptions, our businessis always subject to change. Ford will continue to adapt
to grow our EV business.
The Electric Era is HereEV Transition

UN Sustainable Development Goals

We are in the midst of implementing an ambitious,
comprehensive plan to make the transition to an electric
lifestyle — or commercial fleet — easy.

11 SUSTAINABLE CITIES AND COMMUNITIESWe started by electrifying our most iconic products —the Mustang, F-150, and Transit — which quickly helped
elevate Ford to the number 2 EV brand in the U.S. in 2022
and again in 20233. In addition to offering zero-emissions
versions of our most popular vehicles, we are harnessing
electrification to deliver more of what customers love
about them: performance, capability, and productivity.
• The electric Mustang Mach-E brings the 0-60 mph
thrills Mustang is famous for, in a sleek package
brimming with the latest technology and software.
• New for 2024, we are introducing the first rally-inspired
Mach-E — the Mustang Mach-E Rally. This machineboasts a tuned version of the Mustang Mach-E GT
powertrain, with a two-motor layout targeting at least
650 lb.-ft. of torque and 480 horsepower.8• The F-150 Lightning brings stunning innovation,technologies and capabilities to the F-Series, America’s
best-selling truck3, combined with the power, payload,
and towing capability that is the hallmark of all Built
Ford Tough trucks.

• The E-Transit — an electric version of America’s bestselling van3 — is smart and connected, and will arm
fleet owners with technology solutions like a highspeed in-vehicle data architecture and cloud-based
services to offer new ways to optimize fleet
performance. New for the 2024 model year, E-Transit
with enhanced range offers 26-32% increase in range
for work requiring longer distances and new use casessuch as refrigeration.
• The European electric Explorer offers an outstanding
digital experience with a fully loaded infotainment
system, 15-inch movable screen, wireless app
integration, and advanced driver assistance, coming
in 2024.
• The new E-Transit Custom is the EV successor toEurope’s best-selling van with uncompromised
capability, new customer experiences, and full Ford
Pro support.
• The E-Tourneo Custom, Transit Connect plug-in hybrid(PHEV) and Tourneo Connect PHEV further expand Ford
Pro’s commercial electric vehicle portfolio in 2024 andall are backed by Ford Pro’s connected services forunmatched productivity.
A key part of Ford’s goal to drive the adoption of electricvehicles is to target the large market for fully electriccommercial vans and trucks. Ford is planning to bring
the benefits of electric vehicles to these customers withan accessible price point, improved productivity, andlower cost of ownership.

Developing the Next Generation of EVs
The ultimate success of our EV transition will be driven
by our future generation products designed from theground up. As we develop these next-generation
products, we’re aiming to eliminate the compromisescustomers may face in choosing an EV. At the same time
we’re leveraging EVs’ inherent advantages to makeincredible products that customers are waiting for today.
Our next-generation vehicles will be cost-optimized
and guided by the learnings of our first-generation
vehicles that are currently available. Not only mustthese products be breakthrough in efficiency, but theymust also be packed with innovation.
To support this, two years ago, we established a small,talented team that is developing a smaller, more
affordable platform for future electric vehicles. This teamis creating flexibility for multiple silhouettes and form
factors for retail and commercial customers with anintense focus on cost competitiveness and efficiency.
Smaller EVs will play a role in our strategy. They are
attractive to scale for a larger number of customers
and show them all the benefits that EVs can provide —from lower operating and maintenance cost over the lifeof the vehicle, to zero carbon dioxide emissions.
The development of our next-generation EVs is
supported by a flexible industrial footprint; theredesigned Cologne Electric Vehicle Center openedin 2023, BlueOval City development is on track in
Tennessee, and we’re building the country’s first
automaker-backed and wholly owned and operated
lithium iron phosphate (LFP) battery plant, BlueOval
Battery Park, in Michigan.

Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices35
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Electric Vehicles, Batteries, and Charging Infrastructure— continued
ESRS 2 SBM-1

Batteries
New Markets and Models for the F-150 Lightning
The F-150 Lightning went global for the first timewith entry into Norway, the world’s most advanced
electric vehicle market, where 82% of new car sales
are electric.
In the U.S., a new F-150 Lightning model — F-150
Lightning Flash™ — is a tech-forward offering thatbrings together most of current customers’ favorite
features at a more compelling price point. The F-150
Lightning Flash expands on the XLT model line
by adding in-demand tech capabilities, including
an extended-range battery, which has a targeted
EPA-estimated range of 320 miles, available Ford
BlueCruise hands-free highway driving, and astandard 15.5-inch touchscreen for seamless
interactions and navigation. The F-150 Lightning
Flash customer values an EV powertrain andadvanced tech features paired with a more accessible
price point and the F-150’s proven ability to handle
anything, whether people, pets, or gear.

A Second Battery ChemistryAs part of our company’s commitment to making EVs
more affordable and accessible to customers, we are
introducing lithium iron phosphate (LFP) batteries
to some of our EV lineup. Durable LFP batteries, oursecond battery chemistry, tolerate more frequent andfaster charging while using fewer high-demand, highcost materials.
As we scale EV production, introducing lower-cost LFPbatteries at scale will help us contain or even further
reduce EV prices for customers, while allowing us to
produce more electric vehicles and offer more choices
to new EV customers.
LFP battery technology also helps reduce reliance on
critical minerals such as nickel and cobalt and is in linewith our work to create an EV supply chain that upholds
its commitments to sustainability and human rights.
BlueOval Battery Plant
In support of our commitment to this second battery
chemistry, we are building the country’s first automakerbacked and wholly owned and operated LFP battery
plant, called BlueOval Battery Park Michigan. We areright-sizing this project as we balance investment,
growth, and profitability.

Customers can also access chargers from Francis Energy,
Blink, and Red E across the U.S. and Canada withembedded charger routing and simple payment options
via FordPass or Ford Pro Intelligence. These threeproviders bring more than 10,000 new chargers to the
network, including more than 550 new DC fast chargers.
Ford EV customers have access to more than 15,000
Tesla Superchargers across the U.S. and Canada. Mustang
Mach-E, F-150 Lightning, and E-Transit customers will
be able to access the Superchargers via an adapter andsoftware integration along with activation and payment
via FordPass or Ford Pro Intelligence. In the future Ford
will produce next-generation electric vehicles with theNorth American Charging Standard (NACS) connector
built-in, eliminating the need for an adapter to access
Tesla Superchargers.
The BlueOval Charge Network provides one stored
payment account through the FordPass App, or Charge
Assist App (soon to be “Public Charge”) in the vehicle’s
touchscreen, eliminating the need for on-site credit
card use. Once owners have created an account andactivated Plug & Charge, Tesla Superchargers will support
Plug & Charge with Ford EVs. This means customers
simply have to plug in and charging will automaticallystart with charges managed through FordPass.

Creating a seamless and simple public charging
experience is key to accelerating EV adoption andproviding customers with range confidence.

In Europe, the BlueOval Charge Network provides
customers with access to over 500,000 plugs. Retailcustomers can find charging stations and pay forcharging using FordPass. Larger fleets can access Ford
Charge Assist via SYNC in Europe and North America.

Customers in North America have more options thanever before — and the number continues to grow.
Our BlueOval™ Charge Network in North America is
growing by 25%, bringing the new network total tomore than 111,000 chargers.9

Ford continues to strengthen its EV charging experience in
China. Ford Mustang Mach-E owners can access a networkof 660,000 public charging plugs from 20 charging
operators in China — including 470,000 fast-charging
plugs and public charging sources across 350 cities.

Charging Network

Home Charging
EV customers in North Carolina will have chance to savemoney, increase the use of renewable energy andsupport electric grid resiliency while charging at home,thanks to a new pilot program we’ve launched with Duke
Energy. The EV Complete Home Charging Plan pilot aims
to bring more certainty to the cost of EV home charging
by providing a low, fixed monthly rate for electricity
used in exchange for allowing Ford and Duke Energy tomanage charging times to best support the electric grid.
The pilot program will help support electric grid
resiliency by seamlessly managing selected customers’
home charging schedules when there is less strain
on the grid and when more renewable energy isreadily available.
In Europe, we’re partnering with industry innovators
to deliver new energy experiences that will enable
Ford customers to charge their EVs using energy
tariffs specifically designed to enhance the ownershipexperience. Developed to support Ford’s expanding EV
line-up, the opportunities will initially be available fromearly 2024 to drivers of Ford Mustang Mach-E, followedby the new all-electric Ford Explorer when it arrives laterin the year.
A newly developed Dynamic Charging feature isdesigned to enable Ford EVs to communicate with theenergy providers’ intelligent supply networks. As aresult, owners of compatible models will be able to plugin their vehicle, input their desired state-of-charge anddeparture time using a smartphone app and simply geton with their day — safe in the knowledge that theirbattery will be automatically charged using tariffs
designed to help maximize cost savings and the use ofrenewable energy.10

Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices36
Overview — Business Segments —Electric Vehicles, Batteries, and Charging —ICE and Hybrid Vehicles — Connected Vehicles and Digital Services

BUSINESS HIGHLIGHT

Energy Services:Ford’s Vehicle-to-Grid
Technology Can Help Make
the Grid More Resilient
Ford’s electric vehicles areunlocking new features andservices for our customers thatwere never possible. Electricvehicles can utilize the stored
energy in their batteries topower homes.
The first of these features,Intelligent Backup Power, wasintroduced in the F-150 Lightning.
This technology allows the vehicle’s
battery to power a home throughbidirectional power, turning theF-150 Lightning into an enormous
power source that can help powera home during an outage for 3 fulldays — up to 10 days with rationing.
Later this year Ford will
introduce Intelligent Power, whichgoes beyond using EVs as simply
backup power. This new capability
will allow Ford EVs, starting with
the F-150 Lightning, to help powerhomes during high-cost, peakenergy hours, while taking
advantage of low-cost, overnightrates to charge the vehicle.

This give-and-take of energy
between the EV and the home will
enable customers to charge theirvehicles with inexpensive energy,
then use that energy to power theirhomes during expensive peak hours,
potentially saving money whilestrengthening the grid. In fact, inthe near future Ford EV owners could
be able to actually earn money by
selling energy from their vehicles
back to the grid during peakusage times.
In this emerging energy services
space, customers win whencompanies collaborate. That’s why
we are partnering with utility
companies — as well as otherautomotive companies — to advanceenergy and grid services quickly andresponsibly, allowing EV owners tosave on energy costs while helping
to strengthen the grid.
While some have expressed concernthat electric vehicles will be a strain
on the power grid, we see EVs as
one of its greatest resources.

Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices37

Overview — Business Segments — Electric Vehicles, Batteries, and Charging — ICE and Hybrid Vehicles — Connected Vehicles and Digital Services

Electric Vehicles, Batteries, and Charging Infrastructure— continued
ESRS 2 SBM-1

Collaborating to Strengthen Charging Infrastructure
Collaboration plays an essential role as we work tostrengthen the charging infrastructure. That’s why we’ve
joined the U.S. Joint Office of Energy and Transportation
to launch the National Charging Experience Consortium(ChargeX Consortium), a new effort to rapidly develop
solutions to improve EV charging across the U.S.
This cross-industry group of automakers, charging
providers, utilities, and the Department of Energy
national laboratories aims to drive innovation anduniversal enhancements around current and future
public charging infrastructure and the entire customer
experience. The consortium will immediately focus on
payment processing, user interfaces, and vehicle-tocharger communication, as well as work towardcollaborative diagnostic data sharing to further support
solutions for all stakeholders.
Commercial Charging
Ford Pro is laser focused on delivering reliable charging
solutions that meet the needs and EV use cases of its
commercial customers including home, depot, andpublic charging with software to efficiently manage it.
To support this, Ford Pro has added new charging
hardware to its suite of end-to-end solutions to help
make it easier for commercial customers to transition
their fleets to electric. The new Series 2 AC Charging
Station 80 amp and expanded DC Fast Charger options
are designed for commercial vehicle use and packed
with new features. Coupled with Ford Pro’s charging
management software, Ford Pro provides a fully
integrated solution that simplifies EV charging for both
Ford and non-Ford electric vehicles.
Ford Pro Chargers work with Ford Pro’s smart
charging software to help ensure vehicles are charged
when customers need them. The integrated softwareand hardware solution helps fleet managers optimize
how, when, and where EVs are charged along withutility reimbursement reporting, important for homebased drivers.
Using Ford Pro Charging solutions can also allow
customers to charge more vehicles at a given time.
The software also tracks performance and provides fleet
managers with insights like kWh consumption, charge
speed and distance to empty, and helps optimize total
cost of ownership.
Businesses can also help lower their total cost ofownership through understanding the various incentives
available to them. To help ease confusion, Ford Pro hascompiled commercial incentives to make it easy to findavailable tax credits on EVs, charging equipment, andcharging installation costs at https://www.fordpro.com/
en-us/incentives/. We have also launched a program withprofessional services firm Ernst & Young LLP (EY US) to
help give customers no-cost information to learn about
IRA tax credits for which they may qualify.
Transforming our Industrial System to Expand
EV Production
We are taking a diverse strategic approach to transforming
our industrial system to expand EV production by
reimagining existing manufacturing sites like thosein Cologne, Germany.
Cologne EV Center Paves the Way to the Future
The opening of the Cologne Electric Vehicle Center inGermany represents a major step along our journey tocarbon neutrality and our electric future. This high-tech
production facility will build our new generation ofelectric passenger vehicles for millions of European
customers.
We have transformed our historic plant in Niehl,
Cologne — first founded in 1930 — as part of a $2 billion
investment which represents a major vote of confidence
in skilled German manufacturing jobs and the future ofautomotive production in Europe.

Designed to be highly efficient, the 125-hectare site isequipped with a brand-new production line, battery
assembly, and state-of-the-art tooling and automation.
Following the successes of Mustang Mach-E, E-Transit,
and F-150 Lightning, we unveiled our fourth EV globally,
the electric Explorer, which will be the first electricvehicle to be produced in Cologne, followed by a second
electric vehicle, a sports crossover.
At the core of the Cologne EV Center are digitaladvancements that connect machines, vehicles, andworkers. Implementing self-learning machines,
autonomous transport systems, and big data
management in real time are integral to continuously
improving the efficiency of the production processes,
assuring high quality. In addition, not only will new
cognitive and collaborative robots, and augmented
reality solutions support plant employees, but they will
also increase efficiencies and data exchange with otherplants enabling them to share experiences in real time.
Ford’s First Carbon neutral Assembly Plant
Once fully operational, the Cologne EV Center will
be independently certified as carbon neutral. This
independent certification will be audited and reconciledon a regular basis against purchasing high-quality carbon
offsets for any remaining emissions. As Ford’s firstcarbon neutral assembly plant to open globally, theCologne EV Center supports our commitment to reachcarbon neutrality across our entire European footprintof facilities, logistics, and direct suppliers by 2035.

Read More

In Climate Change on p.45

Ford Pro and Xcel Energy
Ford Pro and Xcel Energy, a national leader inclean energy, announced in December a uniquecollaboration to support the deployment of 30,000
EV charging ports in Xcel Energy service territories
across the U.S. by 2030. Most upfront costs will be
offset by Xcel for qualifying business fleet
customers11. Ford Pro will offer its suite of end-to-end
charging solutions to Xcel Energy business customers
as part of the effort.
The 30x30 collaboration is an innovative approach
between a vehicle manufacturer and utility provider
to streamline the process for businesses to acquire
EV charging and support. This novel approachprovides energy and utility companies a templatefor future collaboration, helping them meet the EV
charging infrastructure needs of businesses in theirservice areas.

North American EV Production
BlueOval City, our all-new mega-campus in West
Tennessee, is taking shape and preparing to build ournext-generation electric truck. This is an opportunity
to revolutionize America’s truck by combining a century
of know-how with world-class electric vehicle, software,and aerodynamics talent.

Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices38
Overview —Business Segments —Electric Vehicles, Batteries, and Charging — ICE and Hybrid Vehicles — Connected Vehicles and Digital Services

ICE and Hybrid Vehicles
ESRS 2 SBM-1

Aspirational Goals

AccessSalient Human Rights Issues

EV Transition

UN Sustainable Development Goals
11 SUSTAINABLE CITIES AND COMMUNITIESFord Blue is a vibrant global industrial
powerhouse with iconic vehicles anda runway for profitable growth.
Internal combustion engine (ICE) vehicles remain an
important part of the Ford story. ICE volumes will decline
as EV adoption increases, and we embrace that reality.
However, the pace of EV adoption will vary by segment
and geography with Europe and China transitioning
faster than the U.S., our biggest market. Consequently,
we expect strong U.S. ICE and hybrid sales well into thenext decade.
We are committed to continuously improving our
ICE powertrains to achieve better fuel economy while
meeting increasingly stringent emissions criteria.
Our proven EcoBoost engines are deployed acrossnearly 100% of the portfolio, and combine engine
downsizing, turbocharging, direct fuel injection, andtwin-independent variable cam timing to improve fueleconomy. For those who want the range assuranceof an ICE and lower emissions, we have Escape andLincoln Corsair plug-in hybrids, and F-150 and Maverick
full hybrids.
The U.S. EPA and Department of Energy website,www.fueleconomy.gov, shows that the 2023 Ford
Maverick hybrid front-wheel drive pickup could reduce
tailpipe emissions by 102 grams of CO2 per mile (1.5
metric tons12) and save drivers an estimated 143 gallons
of gasoline per year12 compared to the 2023 Maverick
ICE front-wheel drive pickup truck. Similarly, the 2023
Ford F-150 3.5L hybrid 4-wheel drive pickup could
reduce tailpipe emissions by 89 grams of CO2 per mile
(1.3 metric tons12) and save drivers an estimated 118
gallons of gasoline per year12 compared to the F-150 3.5L
ICE 4-wheel drive pickup truck.

We also have a wave of new products coming: the new
F-150, a brand-new Explorer and Expedition and Lincoln
Navigator and Aviator. In Europe, we’re bringing out
new versions of Puma and Kuga, our high-volume gas
and hybrid SUVs. And the Ranger pickup and Everest
SUV continue to gain share in international markets.
We have been producing hybrids for 20 years, and remaincommitted to building hybrids for the foreseeable future.
Hybrids will play an important role during the transition
to EV, particularly in markets where the EV infrastructure
is not mature. Consequently, we’re broadening our hybrid
powertrain offerings.
Diesel Engines
Modern diesel engines can offer reduced carbon dioxide
and nitrogen oxide emissions and fuel consumption
compared to their predecessors. In fact, they can achieve
20–30% better fuel economy than comparable gasoline
engines in specific markets and segments, such as
passenger vehicles, light commercial vehicles, andheavy-duty vehicles.
As we move toward electric vehicles, we continue to
optimize these benefits in our EcoBlue and Power Stroke
offerings to improve fuel economy and reduce emissions.

Advanced Transmissions and Drivelines
We continue to optimize our transmissions to improvefuel economy and emissions. Highly efficient eight-,
and ten-speed planetary transmissions have been
widely deployed across our vehicles and the volume
of hybrid electrified transmissions continues to increase.
Our transmission team has shifted focus to design anddevelop innovative power unit (electric drive unit)
technologies and features for electrified vehicles.

Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices39
Overview — Business Segments —BUSINESS HIGHLIGHT

Product Innovation:

How North America’s
Favorite Truck is a Model of
Sustainability Innovation
The Ford F-Series truck is
America’s best-selling pickup for
47 years. Whether our customers
use their truck for work or
recreation, every feature isengineered for a specific goal —to help make easy work out of
the hardest jobs while providing
exceptional comfort and style.
Ford has been on a decades-long
mission — and invested billions ofdollars — to make the F-Series moresustainable while also improving
its power and performance. No
tradeoffs necessary.
Here are 10 ways that the F-Series has
pushed the envelope on efficiency
and sustainability, while keeping its
title as America’s Favorite Truck.
1 — Sustainable
Manufacturing Practices
Ford’s Dearborn Truck Plant, where
many F-Series trucks are assembled,
is a model of sustainable
manufacturing. The facility isequipped with a green “living roof”
to reduce rainwater runoff. Closedloop aluminum recycling to help
reduce the time, cost, and energy
required to return it to the plant as
new material. And initiatives are inplace that have dramaticallyreduced waste going to landfills.

Electric Vehicles, Batteries, and Charging —ICE and Hybrid Vehicles —2 — EcoBoost Engine Technology
Our innovative 3.5-liter EcoBoost
engine combines turbocharging,direct injection, and a streamlined
design. With impressive overall
performance, Ecoboost provides themuscle of a bigger displacement
engine with fuel economy in mind.
3 — Ten-speed Transmissions
Ford was the first truck
manufacturer to offer — and thenstandardize — the use of ten-speed
automatic transmissions in full-size
pickups. The additional gears
allow the truck to operate theengine at peak efficiency, reducing
fuel consumption.
4 — Aluminum Body Construction
We changed the F-Series’ body fromsteel to military-grade aluminumalloys, reducing the truck’s weight.
This improved fuel efficiency andlowered emissions, while allowing
us to expand the payload andincrease towing capacity.
5 — Surprising Sustainable
Materials
We use many unexpected recycledmaterials in the F-Series: seat fabrics
made from recycled plastic bottles;
sound deadening made from denim
scraps; underbody covers madefrom used tires; and wiring
harnesses made in part from ricehusks, to name just a few.

Connected Vehicles and Digital Services

6 — Aerodynamic
Design Enhancements
Innovations in the F-Series
aerodynamics have helped reducedrag and improve fuel efficiency.
The F-Series was the first pickup to
use front-wheel air curtains, active
aerodynamics with active grilleshutters, and an active front air dam.
7 — Hybrid Powertrain
Ford’s PowerBoost full-hybrid
powertrain enhances fuel efficiency
with fewer tailpipe emissions
than a traditional internal
combustion vehicle.
8 — Pro Power Onboard
The Pro Power feature allows the
F-Series to provide electricity towork sites. Pro Power Onboard canreplace standalone generators.
9 — Advanced Telematics
Telematic systems help commercial
customers optimize delivery orservice call routes. The technology
can help teach drivers efficient
operating habits, which can help
reduce fuel use and emissions.
10 — Going Electric
The F-150 Lightning offers
customers the choice to go electricwith all of the features andcapability they’ve come to expectfrom F-Series.

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Overview —Business Segments —Electric Vehicles, Batteries, and Charging — ICE and Hybrid Vehicles — Connected Vehicles and Digital Services

Connected Vehicles and Digital Services
ESRS 2 SBM-1

Aspirational Goals

AccessSalient Human Rights Issues

We’re creating and offering services
that will make our customers’ live
better while delivering significant
ongoing value.
We are deep into the development of our future
software platforms which provide the foundation for
rapid innovation and a profitable new software andservices business, as we continuously improveexperiences for our customers.
Ford and Lincoln Digital Experience

EV Transition

UN Sustainable Development Goals
11 SUSTAINABLE CITIES AND COMMUNITIESAs our lives increasingly center around digital
ecosystems, consumers expect consistent access to themost important people, content, and services across theirdevices. We’ve introduced the Ford and Lincoln Digital
Experience to provide our customers with seamlessconnections when they hit the road.
The Ford and Lincoln Digital Experience represents
a step forward in our approach to the design anddevelopment of in-vehicle infotainment systems.
This all-new infotainment platform further improves
the connected vehicle experience. With Ford andLincoln Digital Experience, customers can access theirdigital lives, including their favorite apps and services
from Google and Amazon, through a new integrated
native experience, as well as with Apple CarPlay®
powered by iPhone, and Android Auto™ through othercompatible devices.13
Google Assistant serves as the default voice assistant.
Alexa Built-In is also available as an alternative for invehicle controls and can help with making calls, sending
texts, setting a meeting, or controlling connected homedevices.14 Integrated Google Maps offer real-time traffic,
road conditions, dynamic and eco-friendly routes, andpoints of interest.

Customers can stream music, audiobooks, and podcasts
using downloaded entertainment apps, as well asembedded SiriusXM with 360L,15 for a personalized
listening experience so they are always available inthe vehicle — regardless of whether a smartphone isconnected in the vehicle.

CarPlay and Apple Maps then calculates the vehicle’s
estimated state of charge when it reaches a destination.
Apple Maps will route drivers to a charging station if it
estimates that a charge is required. Apple Maps EV
Routing is currently available for certain Mustang Mach-E
owners.17 It is coming to the F-150 Lightning in 2024.

The Premium Connectivity plan enables even morecapability, such as downloading apps into the car, forvideo play, video conferencing, gaming, and eveninternet browsing — all while parked.

Mustang Mach-E and F-150 Lightning drivers who use
Google Maps through Android Auto will also gain accessto more sophisticated routing capability to help with the
charging needs of an electric vehicle, especially on roadtrips. Google Maps will be able to deliver routing
information for Ford EVs including battery on arrival
estimate, end of range Indicator, auto-suggested
charging stops, minimum recommended charge, andbattery on arrival estimate (next stop). The feature works
when a user connects their smart phone and activates
Android Auto in the vehicle and uses Google Maps fornavigation. EV Routing for Android Auto will be rolled
out via an OTA software update in 2024.

Ford and Lincoln Digital Experience will be introduced
in a variety of vehicles coming to market, beginning withthe 2024 Lincoln Nautilus and 2025 Lincoln Aviator, andthe 2025 Ford Explorer. SYNC 4 remains available insome of our vehicles.
The Ford and Lincoln Digital Experience is the fastest
infotainment system Ford and Lincoln has ever offered.
It is designed to enable more new apps and services
in the future thanks to over-the-air (OTA) software
update capability.16
Over-the-Air Software Updates
OTA software updates are a critical capability and areal differentiator for us. Ford vehicles are equippedwith advanced OTA update capability for quick andeasy wireless upgrades that can help enhance quality,
capability, and improve the ownership experience overtime while reducing dealer trips. Convenient, routine
software updates keep our customers’ vehicles
performing at their peak. We’ve delivered more than
25 million OTA updates, enabling us to make ourvehicles even better over time.
For example, Mustang Mach-E owners can now plan
long EV journeys via Apple CarPlay with the Apple MapsEV Routing feature17, which creates a route to a driver’s
preferred destination — including EV charging stations
along the way. Drivers simply enter trip details into

Ford Pro Software and Connected Data
With the software and connected data that Ford Pro offers,
we can help fleet managers and business owners solve
some of their biggest challenges like uptime, safety andsecurity, lower total cost of ownership, and increasingly,
environmental sustainability.
Technology is driving a paradigm shift and Ford Pro is
uniquely positioned to integrate new digital solutions
that build on our strong foundation of vehicle leadershipand our unmatched support network.
We currently have over 500,000 paid software business
subscriptions for solutions such as telematics andcharging and fleet management software. This
represents a 46% increase in 2023.
Our paid software attach rate in 2023 was 12% of ourconnected vehicle base, and we expect this to grow toa third of Ford Pro connected vehicles by 2026. This will

Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices41
Overview —Business Segments — Electric Vehicles, Batteries, and Charging —ICE and Hybrid Vehicles —Connected Vehicles and Digital Services

Connected Vehicles and Digital Services— continued
ESRS 2 SBM-1

add even more value for our customers through features
like intelligent predictive maintenance, advanced fleet
controls, as well as other safety and security capabilities.
Ford Pro software integrates with our physical service
network and combines data from vehicles, charging
hardware, and daily fleet activity into a digital interface
that a fleet manager or business owner can easily accessand integrate into their existing systems. Our software
offering allows us to provide tailored preventive repair
and diagnostics using vehicle history.18
We’ve created a curated system of Ford built applications
and third-party solutions that work together and caneven support fleets with multiple makes of vehicles.
Our customers are already realizing the benefits of ourFord Pro intelligence platform in productivity gains, fueloptimization, improvements in how they run and secure
their vehicles, and promotion of safe driving behaviors.
The effectiveness of our software and services is only
going to get better with the launch of Ford’s NextGen
digital architecture being developed by Model e.
Ford Pro’s key differentiator is our ability to integrate
the software, vehicles, and services into a cohesive
ecosystem. By reducing friction for our customers,
we can increase their loyalty, satisfaction, and retention.
This in turn will help us to attract new customers andcapture more of their spending as the economic value
we provide increases.

BlueCruise Hands-Free Highway Driving
19

BlueCruise enables hands-free highway driving
technology that can help make highway driving easier,and more enjoyable whether on a daily commute instop-and-go traffic or a road trip. BlueCruise allows Fordand Lincoln owners to drive hands-free while BlueCruise
steers, accelerate and brakes, and keeps the vehicle
centered in the lane. A driver-facing camera monitors eye
gaze and head position to ensure the driver is actively
monitoring the road. The latest versions of BlueCruise
also include features such as Lane Change Assist,allowing a driver to switch lanes hands-free with the tapof the turn signal when the path is clear, and In-Lane
Repositioning, which helps provide more space by subtly
shifting away from vehicles in adjacent lanes. BlueCruise
operates on 97% of controlled access highways in areas
called hands-free Blue Zones across U.S. and Canada.
In 2023, BlueCruise was recognized as Consumer Reports
top rated Active Driver Assistance system, two times ina row. BlueCruise received a 9/10 score in the categoriesof “capabilities and performance,” “keeping the driver
engaged,” and “clear when safe to use.”
Ford has evolved how it offers BlueCruise for customers,
giving customers flexibility and choice for how and when
they activate BlueCruise across new Mustang Mach-E,
F-150 Lightning, F-150, and Expedition vehicles.
Customers can choose to activate BlueCruise at vehicle
purchase, or on a monthly or annual basis because thehardware is installed from the factory.
In 2024, Ford will expand the availability of BlueCruise
onto more electric, hybrid, and gas-powered Fordand Lincoln vehicles, including the 2025 Ford Explorer
and Lincoln Aviator SUVs. When Aviator deliveries
begin this summer, all Lincoln U.S. models will haveavailable BlueCruise.

BlueCruise Expands to Europe
In 2023, Ford expanded the availability of BlueCruise
beyond the U.S. and Canada to customers in Europe
across three countries. BlueCruise received approval foruse on the motorway network in Great Britain, becoming
the first advanced driver assistance system that delivers
true hands-free driving at highway speeds in Europe.
Approval in Germany and then Spain quickly followed,
with Ford being the first automaker to receive approvalin Spain for hands-free highway driving. Now, customers
with BlueCruise-equipped Mustang Mach-E vehicles inapproved countries are able to use and enjoy hands-free
highway driving.
Value of BlueCruise for Ford and Lincoln Customers
Driving can be tiring, stressful, and physically draining.
BlueCruise can help Ford and Lincoln customers arrive
to their destination less fatigued, more energized, andgives them the ability to truly enjoy the ride and be
more engaged with passengers.

Everything we do is about the customer and we spent
a lot of time listening to customers who use BlueCruise
every day. One professional told us the worst part oftheir day was going to and from work, and now it is thebest part of their day because they are using BlueCruise— their commute has gone from monotonous toenjoyable. A teacher who has spent 25 years commuting
around an hour to work each way, can enjoy her coffee
and breakfast and arrive with more peace of mind.

BlueCruise by the Numbers in 2023
• 290,000 + BlueCruise-equipped vehicles on theroad globally across Ford and Lincoln• Customers have spent more than 2.3 million hours
using and enjoying BlueCruise (U.S. and Canada)• Customers have driven more than 156 million miles
hands-free using BlueCruise (U.S. and Canada)Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices42
Overview —Business Segments — Electric Vehicles, Batteries, and Charging —Connected Vehicles and Digital Services— continued
ESRS 2 SBM-1

Always Learning and Improving
We continue to invest in the development of BlueCruise
to improve the software. Our in-house Advanced Driver
Assistance System engineering team uses the powerof anonymous and aggregated large-scale data comingfrom BlueCruise-equipped vehicles, which customers
have agreed to share with us, to quickly drive better
performance and new feature development. With every
iteration of BlueCruise, we are focused on improving theamount of time customers can spend hands-free, as wellas adding new features and functionality.
In 2023, we released our latest version of software,
BlueCruise 1.3, which delivers our best hands-free
highway driving performance yet. In the third quarterof 2023, BlueCruise 1.3, started shipping from the factory
to customers on the Mustang Mach-E. We will continue
to improve the software and we will deliver new versions
as they become available for additional vehicles.
Other Feature Benefits
We’re applying connected vehicle data and artificial
intelligence (AI) to offer features that make living withand using our vehicles even easier. For example, AI is
helping make it easier to hitch a trailer. The all-new Ford
Pro Trailer Hitch Assist available exclusively for Ford FSeries uses sophisticated artificial intelligence, including
computer vision and machine learning, to automaticallyback up and align a truck’s hitch ball to a trailer coupler
with a button push.
Ford’s in-house team secured 60 patents whiledeveloping this industry-first technology, which
automatically controls the truck’s speed, steering, andbraking to make sure the trailer hitch ball is directly
under a conventional trailer coupler.
Pro Trailer Hitch Assist is the latest example of Ford
applying advanced technology to deliver smart solutions
that improve the productivity of customers.

E-SELF Trial in Cologne
Automated driving tech and AI could enhance
efficiency and safety at Ford plants. A trial is underway
to enable electric vehicles produced at the Ford
Cologne EV Center, in Germany, to drive off theassembly line with no one at the wheel.
Vehicles in the E-SELF trial not only drive themselves
off the assembly line, they also self‑drive to final
testing stations and self-charge before parking, readyfor delivery to customers.
The E-SELF project uses vehicle-to-infrastructurecommunication to control and monitor vehicles.
Sensors located around the plant can identify
hazards in the vehicle’s path, such as a person or
another car, and vehicles are slowed or brought toa halt as required.
Final testing alone can involve a dozen or more
trips between different locations before vehicles areparked and ready for collection and delivery by road,rail, and ferry. Using AI technology, those vehicles
would simply drive themselves and be charged andready to go. E-SELF works for all vehicles equippedwith an automatic transmission, electronic stability
control, an electric handbrake, and assisted steering;the only additional requirement is a smart
communication unit to enable the interaction with
the infrastructure.

ICE and Hybrid Vehicles —Connected Vehicles and Digital Services

Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices43
Overview — Climate Change — Circular Economy and End of Life — Air, Water, and Soil Pollution — Water Resources — Biodiversity and Ecosystems

Environment
In this section:
44 — Environment Overview
45 — Climate Change
45 — Carbon Neutrality Overview
53 — Impacts, Risks, and Opportunities
58 — Policies
59 — Achieving Carbon Neutrality
70 — Scenario / Resilience Analysis
76 — Circular Economy and End of Life80 — Air, Water, and Soil Pollution
82 — Water Resources
85 — Biodiversity and Ecosystems

Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices44
Overview —Climate Change —Circular Economy and End of Life —Air, Water, and Soil Pollution —Water Resources— Biodiversity and Ecosystems

Environment
Overview
Everyone should experience the benefits of clean air, clean water,
and clean transportation. While we are dedicated to making our
product portfolio company carbon neutral, our sustainability efforts
also extend to our manufacturing sites operations, supply chain,and the communities we serve. Alongside our global partners, we
continue to make measurable gains against tough environmental
targets. Our investments in greener sustainable manufacturing are
fueling the transition to carbon neutrality and achieving the positive
impact that is essential to our collective future.

Our Sustainability Aspirations
Climate Change: Achieve carbon
neutrality no later than 2050
Energy: Use 100 percent carbon-freeelectricity in all manufacturing by 2035

Materials: Utilize only recycled or
renewable content in vehicle plastics
Waste: Reach true zero waste to landfill
across our operations

A Science-Based Approach to Climate ChangeElectric Vehicles are our Future

Our aspiration to achieve carbon neutrality
globally no later than 2050 is in line with theParis Agreement and supported by sciencebased targets approved by the Science Based
Target initiative (SBTi). We are focusing on
approximately 95% of our greenhouse gases
emissions — our vehicles, operations, andsupply chain. Our energy management
strategy is the key enabler for achieving
greenhouse gas emissions reductions forour operations.

Electric vehicles are central to our carbon
neutrality strategy. Around the globe, we
are investing to advance our EV strategy
and create a sustainable manufacturingsystem for our vehicles and the batteries
that power them.
We Are Committed toEnvironmental Leadership
Our commitment to environmental
leadership and sustainability goes beyond
climate and also encompasses our strategies
for sourcing materials, water usage, air
pollution, and waste. Our holistic approachis essential to protecting our planet.

Eliminate single-use plastics from ouroperations by 2030

Air: Attain zero emissions from ourvehicles and facilities

Water: Make zero water withdrawals
for manufacturing processes
Use freshwater only for humanconsumption

UN Sustainable Development Goals
We are contributing to the following UN
Sustainable Development Goals through actions
outlined in this chapter:

Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices45
Overview — Climate Change — Circular Economy and End of Life — Air, Water, and Soil Pollution — Water Resources— Biodiversity and Ecosystems

Climate Change
Carbon Neutrality Overview

Climate change is among the biggest
challenges of our generation.

Aspirational Goals

Climate

The World Economic Forum’s 2023 Global Risks Report
identified failure to mitigate climate change as the most
severe risk on a global scale over the next 10 years.
Rising sea levels, more frequent droughts, severe storms,
and forest fires combined with environmental degradation
threaten food, water, health, and energy security.

EnergySalient Human Rights Issues

Environment

UN Sustainable Development Goals

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2022 Global CO2Emissions from Energy• Electricity & heat production: 44%• Road transport: 16%• Residential: 5%• Other transport: 5%
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2022 Ford CO2eEmissions• Vehicles - tailpipe: 56%

It is critical that all industries reduce greenhouse gas(GHG) emissions in line with science. This includes
making the necessary near-term progress along thejourney to carbon neutrality by 2050 as aligned with
the United Nations Framework Convention on Climate
Change (Paris Climate Agreement).

• Industry: 25%...

Ford’s emissions, along with those of other automakers,
are part of road transportation. Ford’s total Scope 1, 2,
and 3 emissions of approximately 373 million metrictons20 across the value chain in 2022 are equivalent toabout 1% of the total world energy-related CO2 emissions.

Climate Crisis and the Auto Industry
Road vehicles are a major contributor to GHG emissions.
According to the International Energy Agency (IEA)
World Energy Outlook, in 2022 the global transport
sector was responsible for 21% of total energy-related
CO2 emissions, with road vehicles emitting 16% of thetotal. Passenger cars produced about half of global roademissions in 2022.

• Vehicles - energy production: 29%• Suppliers: 11%

e Misc: 3%• Operations: 1%

Source: Ford 2023 CDP Report

Significant changes will be required to decarbonize
global energy and transport systems. We expect thesechanges will occur in different product segments andregions at different times. Our approach and our interim
targets reflect these differences.
Climate Change Reporting
Transparent corporate climate change reporting is apriority for us, and we are committed to following themost credible voluntary standards available. Based on
the Task Force on Climate-Related Financial Disclosures(TCFD), we have issued climate change scenario reports
since 2019. This year, our climate report has been
integrated into this Integrated Sustainability and
Financial Report as we begin to transition to EU
Corporate Sustainability Reporting Directive (CSRD)
reporting, which is consistent with and more granularthan the TCFD, and includes double materiality.
Read MoreIn the TCFD index on p.188

We are proud that in 2023 we received an A rating for
Climate from CDP for the fifth year in a row.
The Transition Plan — Climate Change Mitigation
ESRS E1-1, E1-3, E1-4

Ford’s Aspirations
Ford is proud to be one of the first U.S. automakers toalign with the international community to limit global
warming as part of the Paris Climate Agreement. Globally
we aim to reach carbon neutrality no later than 2050.
This timing is consistent with the timing outlined in EU
Regulation (EU) 2021/1119 (European Climate Law). We are,however, on an accelerated pathway in Europe aiming toachieve carbon neutrality by 2035. See European Carbon
Neutral 2035 Strategy on page 46.
To make progress toward carbon neutrality, including
reducing emissions in line with science, we are investingin our business now to transform our value chain by
reducing Scope 1, 2, and 3 emissions as defined by the
GHG Protocol. Currently, our global focus is on threeareas that account for approximately 95% of our CO2eemissions — our vehicles, operations, and supply chain.
Our Global SBTi Greenhouse Gas Targets
Our interim goals are backed by science-based targets
approved by the Science Based Target initiative (SBTi):• Reduce Scope 1 and 2 GHG emissions from ouroperations (manufacturing and non-manufacturing)by 76% by 2035 from a 2017 baseline• Reduce Scope 3 GHG emissions from the use ofsold products by 50% per vehicle km by 2035 froma 2019 baseline
Our Scope 1 and 2 operations target, including
manufacturing and non-manufacturing sites, is aligned
to SBTi’s 1.5°C path. Scope 2 emissions are market-based.

Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices46
Overview —Climate Change —Circular Economy and End of Life —Air, Water, and Soil Pollution —Water Resources— Biodiversity and Ecosystems

Climate Change — Carbon Neutrality Overview— continued

European Carbon Neutral 2035 Strategy
In Europe, we have an accelerated strategy withthe goal of being carbon neutral no later than 2035.
This means:• Ford is shifting our entire line-up of passenger
and commercial vehicles to 100% electric by 2035.
• Ford is targeting carbon neutral

Key Supporting Commitments
In 2020 Ford committed to the UN’s Business Ambition
Pledge for 1.5°C, which calls on companies to set
science-based targets aligned either with limiting global
temperature rise to 1.5°C above pre-industrial level ora 2050 net zero target date. This is reflected in our
2050 aspiration and our Scope 1 and 2 target. We haveevaluated SBTi’s proposed interim automotive sector
1.5°C pathway for vehicle use and are awaiting the final
version’s publication.

– EV and EV component manufacturing facilities– Tier 1 suppliers (Scope 1 and 2)– Logistics operations that transport parts to EU
production sites and vehicles to dealers
Our strategy is powered by an exciting lineup of EVs,
including an electric version of the popular Ford
Puma, the E-Transit, and the electric Explorer.
Not only is the European market seen as ready for an
accelerated Ford carbon neutrality strategy, but wealso view it as a potential blueprint for other regions.

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Our Scope 3 use of sold products (vehicles) target isconsistent with a well-below 2°C path; vehicle sector
pathways for a 1.5°C target setting have not yet been
finalized by the SBTi. Our Scope 3 target goes beyond
tailpipe emissions and includes vehicle emissions
from an energy-cycle (fuel and electricity) perspective(well-to-wheels). This includes energy production andconsumption during vehicle use.
These interim GHG reduction targets do not include
the use of offsets.

Ford is also committed to the New Deal for Europe
initiative to devise a comprehensive Sustainable Europe
2030 Strategy.
VehiclesIn 2021, Ford joined RouteZero, a global coalition, to sign
the ZEV Declaration, pledging to work towards making
sales of all new cars and vans zero-emissions by 2040
globally and no later than 2035 in leading markets.
RouteZero ran in the lead up to COP26 from 2020-2021,
and the work is now being continued under Accelerating
to Zero (A2Z) Coalition. SBTi’s proposed automotive OEMinterim 1.5°C pathway also includes a reference to A2Z.
We support the authority of California and other U.S.
states to protect people’s health and avoid the worst
impact of climate change by establishing and enforcing
air pollution standards and zero-emission vehicle
requirements for new vehicles within their states.
Operations
We’ve joined the U.S. Department of Energy’s (DOE)
Better Climate Challenge to reduce GHG emissions fromour U.S. manufacturing facilities 50% by 2030, relative
to a 2017 baseline. We have also joined the U.S. DOE’s
Better Plants Challenge to reduce energy intensity fromour U.S. manufacturing facilities by 10% by 2030, relative
to a 2020 baseline. Through these programs, DOE
provides technical assistance and opportunities to learn

about and share actionable best practices for carbon
reduction. We are proud to join this effort to meet theurgent call to mitigate the impacts of climate change.
Supply Chain
We are members of the First Movers Coalition toaccelerate the transition to low-carbon aluminum andnear-zero steel, addressing two key high-carbon
materials in the supply chain.
Alignment with Business and Financial Planning
Decarbonizing our business and providing sustainablemobility solutions is essential to realizing Ford’s overall
vision of building a better world. It is reflected in ouroverall strategy to transform our product and services
portfolio and in major investments to realize thetransformation. Nothing will be more influential thanour electrification strategy. Our overall decarbonization
approach is summarized below.
Read More
In Electric Vehicles, Batteries, and Charging infrastructure on p.34

Decarbonization Levers, Actions, and Investments
Emissions avoidance and reductions are Ford’s top
climate change priority. Understanding the potential
environmental and cost impacts of our vehicles andservices over their life cycle — from the acquisition of raw
materials, through vehicle production, distribution, anduse, to end-of-life disposal or recycling — aids this effort,
allowing the company to focus on key GHG sources.

geothermal, hydro, and bio energy sources. We are
actively investing, partnering, and collaborating in
carbon-free energy throughout our value chain.
Examples include renewable electricity for not only
our operations but also for public and home charging
infrastructure, supporting our supply base via
Manufacture 2030 and advocating for the transformationof the electric grid.
Read More
In Climate Change — Achieving Carbon Neutrality on p.59

The Carbon Neutrality Scenario graph shows what
the decarbonization path might look like as a resultof actions taken, including those discussed here.
The path will not be linear, and the relative shareof GHG emissions for each scope will shift over time.
As we sell more EVs and fewer internal combustion
engine vehicles, the total GHGs from vehicle use should
decrease significantly. However, in the near term, theGHGs from energy production will likely increase due
to more electricity use for EV battery production.

Carbon Neutrality Scenario• Scope 1 and 2
Operations• Scope 3 Misc

The graphic, Decarbonization Levers and Actions
Overview, on page 48 shows an overview of the key
decarbonization levers along with example actions for
our largest contributors — currently vehicle use andsupply chain emissions — and our operations.
It is important to note that the backbone of thetransformation to a carbon neutral business is carbonfree energy. This includes wind, solar, nuclear,• Scope 3 Supply
Chain

SBTi
Targets
Met• Scope 3 Vehicle
Energy Production
CarbonNeutrality
Globally

2019

2035

2050

• Scope 3 Vehicle
Tailpipe• Carbon Removals

Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices47
Overview —Climate Change —Circular Economy and End of Life —Air, Water, and Soil Pollution —Water Resources— Biodiversity and Ecosystems

Climate Change — Carbon Neutrality Overview— continued

Locked-in GHG are future emissions that will occur over
our products’ or facilities’ lifetimes due to choices wemake today. For example, most of the vehicles we sell
today will be on the road for over a decade. Therefore
in Scope 3, Category 11 (use of sold products) we report
the locked-in GHG emissions over a 150,000 mile lifetimein the year the vehicle is sold. This is also reflected in
our vehicle use SBTi target. Compared to vehicle use,
locked-in Scope 1 and Scope 2 GHG emissions from ouroperations are expected to be small.
By 2050, we may have some remaining hard-to-reduce
GHG emissions. We intend to neutralize these emissions
using carbon removals, i.e., natural or technical strategies
that remove CO2 from the atmosphere and provide
secure long-term storage.
An overview of some key investments that support
the implementation of our plan are provided in table
Transition Plan Key Investments. Ford has no
investments related to coal, oil, and gas-related
economic activities.
Ford plans to report globally on the EU Taxonomy
Regulation 2020/852 (Taxonomy Regulation) andassociated Delegated Acts in 2025. Ford has reported
on the EU Taxonomy Regulation for Ford Spain,
including France, Italy, and Mexico21 since 2021 as it issubject to the publication of non-financial information.22
Ford is not excluded from the EU Paris-aligned
Benchmarks in accordance with the exclusion criteriastated in Articles 12.1 (d) to (g) and 12.2 of Commission
Delegated Regulation (EU) 2020/1818 (Climate Benchmark
Standards Regulation).

Transition Plan Key Investments
Investment

Comment

Revenues/savings frominvestments in low carbon
alternatives• Energy efficiency projects estimated energy cost savings– Building lighting — $0.48M– Compressed air systems — $0.75M– Steam elimination — $1.2M– Process optimization — $0.48M

Investments made in global manufacturing locations toimprove energy and process efficiency while generating
savings sufficient to self-fund the capital investments

Expenditures (OpEx) for R&D

Year
2020
2021
2022
2023

Engineering, research, and development expenses primarily
consist of salaries, materials, and associated costs

Investments (CapEx) in our
low carbon future

Some of the EV investments we have underway include:

Expenses (in Billions)
$7.1
$7.6
$7.8
$8.9

• $4.21 billion allocated through two green bonds to fund cleantransportation projects, including the manufacture of current and future
EV products• $2 billion to convert Ford’s Cologne, Germany operations into a state-ofthe-art electric vehicle center, completed in 2023 and scheduled to begin
production in 2024
• £230 million in Halewood, U.K. Transmission Facility to build EV
components for Europe, completed in 2023
• $440 million in the Rouge Electric Vehicle Center where the F-150
Lightning is built

Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices48
Overview — Climate Change — Circular Economy and End of Life — Air, Water, and Soil Pollution — Water Resources— Biodiversity and Ecosystems

Climate Change — Carbon Neutrality Overview— continued

Decarbonization Levers and Actions Overview

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Supply Chain---85%---1%---11%• Vehicle Technology– Powertrains and vehicle design• Energy-efficiency & GHG Reductions• Supplier Engagement– Sourcing requirements– Decarbonization support

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• Carbon-free Energy• Energy Options– Low carbon fuels and carbon-free electricity• Low Carbon Materials– Batteries, steel, aluminum, and plastics• Supporting Customers– Product offerings, key EV adoption enablers,and eco-friendly driving support

Carbon Free Energy - Across the Value Chain

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• A portfolio of low carbon products– Battery electric vehicles- Electrification of iconic vehicles- Europe — 10 new EVs by 2024
- Next-generation EVs- Larger trucks, vans, SUVs, and a small, low-cost platform– Lower emissions ICE vehicles- Improved fuel efficiency & compatibility with alternative fuels- Traditional and plug-in hybrids– Hydrogen fuel cell
- Technology development for our medium- and heavy-duty vehicles• 100% carbon-free electricity for our global manufacturing by 2035
– GTE’s MIGreenPower program– Global onsite renewable projects• Require suppliers and their subcontractors to establish science-based
GHG reduction targets, action plans, and transparent reporting
mechanisms• Reduction or elimination of natural gas usage– Paint shop upgrades at Oakville & Ohio Assembly Plants– No natural gas use for building heat when Tennessee Electric
Vehicle Center (TEVC) begins operations• Manufacture 2030 — global Tier 1 supply chain initiative– Sharing decarbonization best practices, and providing training andaccess to green finance– Enabling site GHG emissions data collection• Campus transformation– Research & Engineering– Corktown• By 2030 purchase at least 10% low-carbon aluminum and near-zerosteel (First Movers Coalition)– Memorandums of understandings with 3 European steel suppliers• Addressing key EV adoption barriers– Expanding the BlueOval Charge Network– More affordable battery chemistries like LFP (Lithium Iron Phosphate)• Ford’s first carbon neutral vehicle assembly plant– Cologne Electric Vehicle Center with significant GHG reductions~

Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices49
Overview —Climate Change —Circular Economy and End of Life —Air, Water, and Soil Pollution —Water Resources— Biodiversity and Ecosystems

Climate Change — Carbon Neutrality Overview— continued

Performance Overview
We are on track to meet both of our SBTi 2035 interim
targets. Our current status for both targets are shown ingraphic GHG Emissions Reductions: Vehicles & Operations
to the right.

Governance

GHG Emissions Reductions:
Vehicles & Operations

100% GHG
Reduction

Our preliminary estimate for 2023 Scope 3 vehicle use
shows the average GHG intensity of the vehicles wesold in 2023 will be about 6% lower than for the vehicles
we sold in 2019 and, in absolute terms, emissions will
be reduced by about 21%. Compared to 2022, thepreliminary 2023 vehicle average GHG-intensity is about
the same, although absolute emissions from vehicle use
increased about 4% due to a 4% increase in sales.

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100% GHG
Reduction

2035 SBTi
Target 76%

For our Scope 1 and 2 operations target, we reduced
GHG emissions by 47% between 2017 and 2023 — we arealmost two-thirds of the way to our interim 2035 target.
Our absolute manufacturing GHG footprint, a subsetof the total Scope 1 and 2 emissions target, was reducedby 49% from 2017 to 2023.

...

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2035 SBTi
Target 50%

2023 Status

Increasing the percentage of carbon-free electricity
consumed in Ford’s global manufacturing plants, a key
enabler to decarbonizing our operations, is also on track.
This includes carbon-free electricity that was generated
on-site, as well as carbon-free electricity purchased in
the form of Energy Attribute Certificates or similarmarket mechanisms. The status in 2023 for our global
manufacturing operations was

Management’s Role
Our Vice President, Chief Sustainability, Environment, andSafety Officer and his team are responsible for delivering
our sustainability aspirational goals and strategies,
including achieving carbon neutrality no later than 2050.
The leaders of the Global Sustainability & ESG Meeting
approve our carbon neutrality strategy and monitor
progress on reducing GHGs by tracking metrics forour vehicles, supply chain, and operations.
The Global Sustainability and ESG group coordinates
Ford’s carbon neutrality strategy and activities, helps
integrate carbon neutrality in collaboration with otherfunctional areas and teams, and leads our climate
reporting and stakeholder engagement.
Board Oversight
Furthermore, the Sustainability, Innovation and
Policy Committee of the Board of Directors advises
management on developing and shaping theCompany’s strategies, policies, and practices in theareas of climate change, including GHG emissions
and energy consumption.
The Audit Committee assists the Board in overseeing
compliance and reporting risk, including reviewing
risks identified in the Ford Enterprise Risk Management
process, which includes climate-related risks.

• Carbon-free electricity — 70.5%2023 Status

Read More• Renewable electricity — 50.8%
Vehicle Use
Read More
On Ford’s Road To Carbon Neutrality on p.51

• 100% GHG Reduction

In Achieving Carbon Neutrality on p.59

• Remaining to 2035 Target

In Performance Data on p.135• Progress

Operations

In Business Conduct — Accountable andInclusive Governance on p.127

Remuneration
The individual performance factor that applies to both
our Performance Stock Units and Annual Performance
Bonus Plan is assessed based on the employee’s successin driving and aligning with our Ford+ plan and corporate
strategy, which could include efforts around climatechange and other environmental, social, andgovernance (ESG) areas depending on their role.
For example, our Vice President, Chief Sustainability,
Environment and Safety Officer’s yearly compensation
includes a bonus as percentage of salary, stock shares,
and a salary increase. These compensation incentive
amounts are variable according to individual
performance to objectives, many of which are directly
or indirectly tied to climate improvements or climatetransition plan delivery.
This includes meeting the key performance indicators(KPIs) related to renewable electricity, facility GHGs, andEuropean fleet CO2 targets that are tied to the financial
revolver line of credit. Additionally, Ford’s carbon
neutrality goal includes eliminating Scope 1, 2, and 3
emissions, so better performance in delivering GHG
emissions reductions may yield increased financial
compensation, thus creating an incentive to deliver
climate improvements.
Furthermore, as discussed in our 2024 Proxy Statement,
Ford’s Compensation, Talent and Culture Committeeof the Board approved, as a performance measure,
Global EV Retail Volume to Customers weighted at 20%
for our 2023 Annual Performance Bonus Plan Metrics.
The inclusion of Global EV Retail Volume to Customers as
a performance objective emphasizes Ford’s commitment
to transitioning our portfolio to electric vehicles andcreating environmental benefits in the transition to EVs
by addressing the largest source of our GHG emissions,vehicle use.
Collaboration
Avoiding the worst consequences of climate change
requires collaboration with multiple partners andorganizations in the public and private sectors to drive
timely progress. We are working together to address
challenges including barriers to electric vehicle adoption,

Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices50
Overview —Climate Change —Climate Change — Carbon Neutrality Overview— continued

government regulations, economic factors, and theavailability of carbon-free electricity and renewable fuels.
Our Blue Table Forum is a space for dialogue aroundhow we can work together with various stakeholders
from a diverse group of non-governmental organizations(NGOs), nonprofits, and academic institutions.
Ford partners with organizations like the Center for
Climate and Energy Solutions Business and Environmental
Leadership Council to help advance stronger GHG
emissions policy and infrastructure improvements toremove obstacles and build the market for EVs.
We support consumer EV incentives to accelerate
the transition by making electric vehicles even moreaccessible and affordable while supporting manufacturingjobs. We are also working with government partners tosecure the supply chains and develop the technologies weneed to produce EVs and batteries here in the U.S., also
ensuring the United States remains competitive globally.
Read More
In Government Regulations, Policy and Engagement on p.131
In the 2023 U.S. Political Engagement Report

Climate Justice

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Addressing climate change is more than decarbonizing
our business. It is also about the impact of the transition
to electric vehicles on our workforce and communities.

a:

Ford supports climate justice, and the growing
understanding that the impacts of climate change will
not be felt equally among all communities. We areworking to minimize negative impacts while striving tocreate positive impacts on people and the environment.
Our goal is to protect the communities in which we
operate from environmental and health hazards and toprovide equal access to the decision-making process that
supports a healthy environment in which to live, learn,
and work.

Ford’s global director of sustainability, Cynthia Williams
participated in TED Explores: A New Climate Vision. Fordis also one of the 13 founding members of the 2023 TED
Future forum, hosted at Michigan Central. The missionof the forum was “BRINGING PEOPLE TOGETHER: We
convene thought leaders from around the world to sharediverse perspectives, build community and foster new
collaborations that can lead to tangible progress.”
We are working to provide EVs by offering equitablefinancing, supporting greater EV charging access,developing new mobility solutions in urban and rural
areas, diversifying our supplier, dealer, and investor
network, and supporting small businesses andbusinesses owned by women, minorities, veterans,
and people with disabilities.
We also support and align with federal policy which
includes several provisions that aim to direct investments
into communities that are marginalized and generally
more adversely impacted by air pollution and climatechange. This might include, for example, tax incentives
for the installation of EV charging infrastructure in lowincome census tracts, or for clean energy projects thatmeet prevailing wage and apprenticeship requirements.

Circular Economy and End of Life —Air, Water, and Soil Pollution —Water Resources— Biodiversity and Ecosystems

Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices51
Overview — Climate Change — Circular Economy and End of Life — Air, Water, and Soil Pollution — Water Resources — Biodiversity and Ecosystems

Climate Change — Carbon Neutrality Overview— continued

Ford's Road
to Carbon
Neutralityf ) - • -1999_ _ _ _ _ _ __ _ __ _20_ _04_ _ _ _ _ _ _ __ _20_ _07_ _ _ _ _ _ _ __ _2_0_0_9_ _ _ _ _ _ _ _ _......
Published our first
Corporate Citizenshipreport, "Connectingwith Society"

Reopened our Ford Rouge
Center with its living roof (theworld's largest green roof at
the time), daylighting system
and waste minimization
Launched the Escape Hybrid,
the world's first hybrid SUV

Joined the United States
Climate Action Partnershipand UN Global Compact
Developed first science based corporate Co 2 strategy

Launched the EcoBoost
engine, which optimizes
power and efficiency using
tu rbocharging and direct
gasoline injection~---•-------------•-------------•-------------•--------------~
2018

2015

2014

2011

Met our goal to reduce operational
greenhouse gas (GHG) emissions
per vehicle produced by 30% eightyea rs early

Launched the lightweight
F-150, with all-aluminum body

Implemented Partnership fora Cleaner Environment (PACE)
program with suppliers to
reduce our collective
environmental footprint

Launched the fully electric
Focus electric vehicle (EV)______________________________________________________________...,,,.....
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2020

2021

Set aspiration to be carbon neutral no later than 2050
Launched all-electric Mustang Mach-E
Offered 155,000 charging stations in Europe on the FordPass
Charging Network, in partnership with NewMotion

Set 2035 SBTi targets for our operations and vehicles
Joined RouteZero (now A2Z) working toward 100% ZEVs fo r ca rs
and vans globally by 2040
Launched new Sustainable Financing Framework - the firsttransaction, a $2.5 billion green bond
Tied Corporate and Supplemental revolving and 364-day cred it
facilities to sustainability-linked KPls
Required suppliers to set carbon neutrality targets datest)-Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices52
Overview — Climate Change — Circular Economy and End of Life — Air, Water, and Soil Pollution — Water Resources — Biodiversity and Ecosystems

Climate Change — Carbon Neutrality Overview— continued~---•-----------------------------------------------•---------------------..
2022

2023

Launched all-electric F-150 Lightning and E-Transit
Issued a second Green Bond of $1 .75 billion,
published the first Susta inable Financing ReportEntered agreement for multiple Michigan locations
to purchase 100% renewable electricity

0

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Achieved 100% carbon -free electricity sourcing
for our manufacturing facilities in Europe, Mexicoand Ohio2026
Build batteries at Blueoval Battery Park
(Marshall, Ml)

Announced Ford in Europe 2035
carbon neutrality target dateAnnounced Ford Pro and Xcel Energy charging
infrastructure collaboration for fleets

Announced reorganizationof business into threebusiness segments: Ford Blue,
Ford Model e and Ford Pro

Announced Memorandum of Understanding
with RheinEnergie to expand solar panels at
our Cologne facilities

Joined the First Movers
Coalition (Steel and Aluminum)•-------------------------------•-------------------....,
2025

Build next generation electric truck
and battery packs with SK Innovation
at BlueOval City
Target 100% carbon-free electricity
and zero natural gas for building heat Tennessee Electric Vehicle Center

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2024

Target 100% carbon-free electricity all Michigan manufacturing facilities
Target 20% recycled and renewableplastics content for North American,
EU and Turkey programs and 10%
for China

Launch an all- new electric Explorer inEurope produced in Cologne - Ford's
first carbon neutral vehicle assembly plant
Target zero emissions capability
for full range of European Light
Commercial Vehicles-•--------------------------------•-----------------•-----------•-----------

.....

2030

2035

2040

2050

Meet our SBTi-approved emissions
targets - operations and vehicles

Work toward 100%zero -emissions carsand vans globally (A2Z)

CARBONNEUTRALITYGLOBALLYa:

Target 40-50% U.S. EV vehicle sales
Target reducing GHG emissions
from U.S. manufacturing facilities
by 50% (Better Climate Challenge,2017 baseline)

Purchase at least 10% near-zerocarbon steel and aluminum(First Movers Coalition)
Target elimination of single-use
plastics from our operations

Work toward 100% zero-emissions
cars and vans in leading markets (A2Z)
Target 100% carbon -free electricity
in all manufacturing
Target Ford in Europe 2035 carbon
neutrality

Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices53
Overview —Climate Change —Circular Economy and End of Life —Air, Water, and Soil Pollution —Climate Change
Impacts, Risks, and Opportunities
E1 SBM-3, E1 IRO-1

The Identification and Assessment Process
Climate Impacts
Ford is committed to achieving carbon neutrality acrossour vehicles, operations, and supply chain. We annuallyassess our entire value chain’s impact on climate change
by calculating emission scopes 1, 2, and 3 as defined by
the Greenhouse Gas Protocol. The status and future
emissions based on planned actions for our vehicles,
operations, and supply chain are evaluated relative toassociated science-based pathways and reviewed
regularly by management and the Sustainability,
Innovation and Policy Committee of the Board of
Directors. This allows us to identify potential concerns
early in the process, ensuring that we are on track tomeet our carbon neutrality commitments.
Read More
In Climate Change — Achieving Carbon Neutrality on p.59
In Performance Data on p.135

Risks and Opportunities
We divided climate-related risks into two categories:• Transition risks — those that arise from actions
associated with the transition to a low-carbon
economy, including the introduction of new climate
policies or low-carbon technologies• Physical risks — those that arise from the acute andchronic physical impacts of climate change
We identified and assessed climate-related risks andopportunities based on TCFD guidelines and wellestablished, state-of-the-art science scenarios.
The range provided by these scenarios identifies likely
risks and opportunities, as these definitive scenarios
cover a wide gamut of societal action, addressing
future uncertainties, whether that is related to policy,
macroeconomic, energy systems, or technologicaldevelopments.

Three scenarios were used. The IEA Net Zero Emissions
by 2050 Scenario (NZE) helps expose transition risks
while the IEA Stated Policies Scenario (STEPS) and theIntergovernmental Panel of Climate Change (IPCC)
Representative Concentration Pathway 8.5 (RCP8.5)
high emissions and temperature climate scenarios help
expose expected physical risks due to climate change.
The risks and opportunities were examined for theentire value chain along three time horizons: short-term(<5 years), medium-term (5–10 years), and long-term(>10 years).
Read More
In Climate Change — Scenario/Resilience Analysis on p.70

Our Climate-related Risks and Their Business Impact
Major risks for leading markets currently transitioning toelectric vehicles cover all three time horizons. In leading
markets, we expect technology, market, and workforce
risks to lessen in the long term as EV adoption becomes
more widespread. At the same time, resource availability
and regulatory risks may increase. Other markets willreach the EV inflection point later, extending the timehorizon for technology and market risks.
The table Major Climate-related Risks on page 54
provides an overview of the major risks identified in themost pertinent categories and is not a complete listing of
the risks we examine. Examples are provided in the table
Material Climate-related Risks: Examples on page 57.
Our Climate-related Opportunities for the Business
At Ford we also see opportunities across the threemeasured time horizons for addressing climate-related
issues. Similar to the identified risks, we expect thetiming of some major opportunities related to EV
adoption to occur sooner for leading markets whilelater in other markets.

The table Major Climate-related Opportunities on
page 56 provides an overview of the major opportunities
identified in the most pertinent categories but is not
a complete listing of our pursuits. Again examples areprovided, see table Material Climate-related
Opportunities: Examples on page 57.

Water Resources— Biodiversity and Ecosystems

Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices54
Overview —Climate Change —Circular Economy and End of Life —Air, Water, and Soil Pollution —Water Resources — Biodiversity and Ecosystems

Climate Change — Impacts, Risks, and Opportunities— continued
E1 SBM-3, E1 IRO-1

Major Climate-related Risks
Transition Risks
Regulation

Ford is subject to emissions, fuel economy, and other regulations that govern product characteristics, and these can differ locally, regionally, and nationally. New regulations are continuously being proposed to addressenvironmental concerns, and the regulatory landscape can change quickly. To comply, we may need to substantially modify product plans and facilities. Additionally, climate-oriented regulations and initiatives may
increase the cost of vehicles by more than the perceived consumer benefit, dampening our financial margins.

Technology

If cost-effective and timely hardware and software solutions are not available to meet our GHG reduction goals, we are subject to technology risk. As we make further GHG reductions, it becomes more challenging to makecost-effective improvements. Technology may not be available to make the improvements at the rate required, and the carbon neutral grid and charging infrastructure may not keep pace with vehicle electrification which
could negatively impact sales. New vehicle offerings may also present technological challenges that could be costly to implement and overcome. If we are unable to meet customer demand or quality expectations with our
products and technologies, there could be an adverse effect on our business.

Financial

There is a risk that our carbon neutrality plan would need to be accelerated which would require increased investments. Our Corporate and Supplemental and 364-day revolving credit facilities are tied to sustainabilitylinked KPIs such as reducing GHG emissions from our manufacturing plants and lowering Ford of Europe’s passenger vehicle tailpipe CO2 emissions. The applicable margin and facility fees may be adjusted if Ford fails toachieve the specified targets. Increased transitional costs without governmental funding and lower-cost technology breakthroughs are also risks.

Legal

Non-compliance with regulatory requirements can lead to fines or sales restrictions.

MarketMeeting our climate goals relies on wide market acceptance of EVs. There is a risk that our offerings do not meet sales volume expectations. Low market acceptance could be caused by low gas prices, changes required
to fueling (including charging) behavior, or by more product entries — from existing and new market participants — than are supported by demand. Excess supply could lead to decreased revenue and profitability.

Reputation

Reputation risk is tied to other risks such as meeting product emission targets or sales volumes for environmentally friendly vehicles. Our reputation can suffer if we do not reduce CO2 emissions in line with expected
progress for climate stabilization, or if our transition to electrification is slower than expected, either of which could result in lower sales.

Resource Scarcity As electrified products proliferate, there is a risk that scarcity of components or raw materials (such as those necessary for EV batteries) may disrupt our operations or increase our cost of goods sold, thereby slowing
EV adoption if alternative components, materials, or suppliers cannot be found in a timely manner. To facilitate our access to raw materials and other components necessary for the production of EVs, Ford has entered intoand may, in the future, enter into multi-year offtake agreements and other long-term contracts for the purchase of raw materials and other components, which, subject to certain conditions, obligate us to purchase set
amounts of materials or components. Accordingly, we are subject to the risks associated with lower future demand for such materials and components.
WorkforceWith the significant shift in capabilities needed to deliver the transition to electrification, there is a risk of lack of skilled workers and programs necessary to maintain or upskill our workforce. Our ability to attract andretain talented, diverse, and highly skilled employees is critical to our success and competitiveness.

Physical Risks
Acute:
Climate change can lead to increased extreme weather events such as storms, wildfires, or floods that can disrupt production or component supplies at our facilities, or within our supply chain. This may increase our costs
Extreme Weather and delay or otherwise impact both our production operations and customers’ ability to receive our vehicles.
Chronic:
Drought

Climate change can lead to longer-term conditions such as extended droughts. Droughts can affect our access to water for our operations, especially in water-scarce areas. This may increase our operating costs or require
investment to find alternative solutions.

Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices55
Overview —Climate Change —Circular Economy and End of Life —Air, Water, and Soil Pollution —Water Resources — Biodiversity and Ecosystems

Climate Change — Impacts, Risks, and Opportunities— continued
E1 SBM-3, E1 IRO-1

Material Climate-related Risks: Examples
Climate-related Risks

Description of Risk

Description of Response

Heavy precipitation (rain, hail, snow/ice)Ford’s production, as well as our suppliers’ production, and/or the ability for products to
be delivered to consumers could be disrupted by natural or man-made disasters, adverse
effects of climate change, or other factors. As one example, global climate change has thepotential to lead to increased extreme precipitation events that produce ice or flooding
which can disrupt production either directly or through interruptions to our supply chain.
In 2021 an acute weather event, Winter Storm Uri in the United States, caused significant
disruption to supplier facilities due to ice and subfreezing temperatures causingwidespread power outages. Over 500 different parts and dozens of Tier 1 suppliers
were impacted by raw material shortages. These suppliers provided parts for most of our
North American assembly plants including those in Kentucky, Michigan, Missouri, Canada,
and Mexico.

Purchasing operations engages in an organization-wide Supply Risk Management processthat focuses on strategic and tactical planning to minimize disruption for the Ford vehicle
and component assembly plants due to supply chain events, including acute climaterelated situations.

Risk Type: Acute PhysicalTime Horizon: Short-term
Magnitude of Impact: Medium
Primary Potential Financial Impact: Decreased
revenues due to reduced production capacity
Likelihood: About as likely as not

Ford has implemented an N-Tier Supply Mapping and Risk Sensing solution which provides
a consolidated reporting view of Ford’s multi-tier supplier network, supplier risk scores,
and daily risk events in the form of user interactive visuals. Beginning in 2022, we used
these tools to understand the potential business disruption exposure of daily risk events
including storms, tornadoes, and tsunamis. In addition, a predictive tool has beendeveloped by the Ford Global Data Insight & Analytics team. This system, named Supplier
Performance and Risk (SPR), allows us to monitor a host of predictive data inputs tomitigate potential supply disruptions.
When the platform identifies risks, the team notifies suppliers, who respond with theirstatus. The supplier status data are used to identify any disruptions and enable mitigation
actions within five days. Collaborative tools under deployment in 2024 will allow for
instant communication which will reduce the alert and response time to hours.

Changing customer behavior
Risk Type: Transition Risk — Market
Time Horizon: Medium-term
Magnitude of Impact: Medium
Primary Potential Financial Impact: Decreased
revenues due to reduced demand for products
and services
Likelihood: Likely

We have announced our intent to continue making multi-billion-dollar investments inelectrification and software services. Our plans include offering electrified versions ofmany of our vehicles, such as the F-150 Lightning and E-Transit. The automotive, software,and digital service businesses are very competitive and are undergoing rapid change.
Traditional competitors are expanding their offerings, and new types of competitors(particularly in our areas of strength, such as trucks, utilities, and commercial vehicles)
are entering the market. New competitors may possess superior technology and may
have business models that are more efficient and are not subject to the same level of fixed
costs as ours. These factors increase the importance of our ability to anticipate, develop
and deliver products and services that customers desire on a timely basis, in quantities
in line with demand and at costs low enough to be profitable. If the EV market does notdevelop at the rate we expect; if there is a negative perception of our EVs or about EVs
generally; or if consumers prefer our competitors’ vehicles or technologies, there could
be an adverse impact on our financial condition or results of operations.

Ford’s long-term competitiveness depends on the successful execution of the Ford+ planin order to more effectively compete in the marketplace and adapt to evolving customer
preference. Ford+ is focused on delivering distinctive and increasingly electric products
plus always-on customer relationships and user experiences. Our Ford+ plan is designed
to leverage our foundational strengths to build new capabilities — enriching customer
experiences and deepening loyalty. To facilitate this transformation, we are making
substantial investments, recruiting new talent, and optimizing our business model,
management system, and organization. In executing Ford+, we must anticipate, develop,
and deliver products and services with disciplined capital allocation.

Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices56
Overview —Climate Change —Circular Economy and End of Life —Air, Water, and Soil Pollution —Water Resources — Biodiversity and Ecosystems

Climate Change — Impacts, Risks, and Opportunities— continued
E1 SBM-3, E1 IRO-1

Major Climate-related Opportunities
Product

Developing a portfolio of EVs for the transition away from internal combustion engine (ICE) vehicles is an opportunity for Ford. Our portfolio includes all-electric, plug-in hybrid, hybrid, and fuel-efficient ICE vehicles(e.g., EcoBoost). This portfolio provides the company with the opportunity for growth and increased market share as the transition continues.

Financial

There is an opportunity to drive scale, diversify, and directly source parts (battery) of the supply chain, and support battery innovation to deliver cost efficiency and improved profitability.
Our Corporate and Supplemental and 364-day revolving credit facilities are tied to sustainability-linked KPIs. The applicable margin and facility fees may be adjusted if we achieve the specified targets.

Conserving
Resources

We see several opportunities to conserve resources such as battery materials and energy, as well as to improve business productivity. We are reducing energy consumption in operations through efficiency projects which
will lower our energy costs. Ford Pro helps commercial vehicle owners improve fleet efficiency and uptime.

Reputation

An increasing number of consumers think it’s important for companies to take action on climate change, and some are willing to pay more for products that are better for the environment. Meeting customer expectations
by delivering electrified products and solutions, an always-on relationship with customers and an ever-improving user experience will strengthen our reputation and improve our bottom line. We believe Ford is well
positioned to establish a “green” reputation with customers based on our electrification plans supplemented with improved customer experience and our broader sustainability efforts which include carbon neutral
manufacturing and circular economy actions.

Workforce

Electrification represents a revolution in the auto industry as it reshapes the future of work. We are mindful of the impacts on our employees, our supply chain, our communities, and our customers. We are addressing
and evolving our Just Transition strategy as we move toward carbon neutrality and electrification.

Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices57
Overview —Climate Change —Circular Economy and End of Life —Air, Water, and Soil Pollution —Water Resources — Biodiversity and Ecosystems

Climate Change — Impacts, Risks, and Opportunities— continued
E1 SBM-3, E1 IRO-1

Material Climate-related Opportunities: Examples
Climate-related Opportunities

Description of Opportunity

Description of Response

Shift in consumer preferences

Consumers are increasingly environmentally conscious. Additionally, policies such as
CO2-related taxation in Europe drive demand toward low-CO2 vehicles and incentivize theup-take of new, fuel-efficient vehicles. The European tax scheme has two waves: the firstfor vehicles emitting less than 50g CO2/km by 2025, and the second for zero-emission
vehicles by 2030. Tax incentives such as those within the U.S. Inflation Reduction Act are
another example.

• Ford has institutionalized our Enterprise Risk Management (ERM) process, which includes
an Environmental & Safety Compliance (E&SC) Business Plan Review and Special
Attention Review process. There, E&SC senior leadership review the status of thebusiness and the risks and opportunities presented to the business, and develop plansto address those risks and opportunities. If consumer demand shifts toward different
products, such as vehicles with higher fuel economy and advanced technology
powertrains, the E&SC review process is intended to cause us to increase output ofcorresponding products and technologies.

Opportunity Type: Products and services
Time Horizon: Medium-term
Magnitude of Impact: Medium
Primary Potential Financial Impact: Returns
on investment in low-emission technology
Likelihood: Virtually certain

We expect that Ford’s diverse global portfolio should be able to meet the demands andneeds created by such a shift — both in Europe and around the globe — and expects toperform well, providing opportunities for growth and increased market share.

• Our current and announced product offerings give us flexibility to meet changing
consumer demands. This includes a variety of lower CO2 emissions vehicles, including
efficient diesel and gasoline vehicles, vehicles with EcoBoost engines and hybrid, plug-in
hybrid, and battery electric vehicles.
• In 2023, our European portfolio included 15 electrified offerings from hybrid to EVs.
Globally, we began selling new EV models in 2021 with the Mustang Mach-E andfollowed by the F-150 Lightning and E-Transit in 2022.
• We are investing in the research and development of more efficient internal
combustion engines, hybrid technology, electric vehicles, batteries, lightweight andsustainable materials, and controls and software to create efficient vehicles that matchcustomer preferences.

Move to more efficient buildings
Opportunity Type: Resource efficiency
Time Horizon: Short-term
Magnitude of Impact: Low
Primary Potential Financial Impact: Reduced
indirect (operating) costs
Likelihood: Virtually certain

Setting goals to reduce GHG emissions through improved operational efficiencies has thebenefit of reducing energy expenses.
• Ford has established a global Carbon Reduction Strategy with a goal to reduce ourabsolute Scope 1 and 2 GHG emissions by 76% from all our operations (bothmanufacturing and non-manufacturing facilities) by 2035 measured from a 2017 baseline.
• To ensure Ford remains on track to this long-term objective, we set a five year
manufacturing-specific Carbon Reduction Strategy to reduce our absolute Scope 1 and 2
GHG emissions by 18% from all our manufacturing locations by 2023, measured from a2017 baseline. This strategy will be extended in 2024.

The Ford Energy Management Operating System (EMOS) is our global standardized process
for managing and driving energy efficiency at our facilities, including setting annual energy
targets for our global manufacturing locations. Improving operational efficiency of existing
manufacturing locations is a fundamental element of EMOS. In 2023 we updated andbetter integrated the ISO 50001 management systems approach into our EMOS throughparticipation in the U.S. Department of Energy’s 50001 Ready Program. We have 31 Readyrecognized sites in the U.S., including all of our U.S. manufacturing locations.
Recently implemented efficiency actions at various manufacturing locations in Michigan
are examples of Ford’s continued focus on improving operational efficiency — lighting
conversions, compressed air optimization, and steam elimination. Additional actions taken
to reduce carbon emissions from our operations include booth recirculation and abatement
consolidation project at a manufacturing plant in Ohio and a lighting project at Kansas City
Assembly Plant in 2023. The latter is projected to result in 3,894 metric tons of CO2e
reductions annually.

Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices58
Overview —Climate Change —Climate Change
Policies
ESRS E1-2

Corporate

Supply Chain

Our We Are Committed to Protecting Human Rights andthe Environment policy codifies our commitment topreserving the environment for present and future
generations. The policy summarizes the strategies,
processes, and expectations we have established, andhow we conduct due diligence for our business.

Our We Are Committed to Protecting Human Rights andthe Environment policy explicitly requires our suppliers,
and expects our partners and joint ventures (referred
to as “business partners” in this policy) to adopt andenforce similar policies and extend them to their own
supply chain. Aligned with this policy, our Supplier Codeof Conduct outlines our requirements and expectations
for our suppliers.

The policy covers directly or indirectly our transitional
and physical risks in our own business as well as in our
supply chain and partnerships. Included in the policy are
expectations related to climate mitigation, energy
efficiency, and renewable energy deployment. For
example, our policy states that we will “do our part tominimize impact on climate change aligned with theUnited Nations Framework Convention on Climate
Change (Paris Climate Agreement), striving towards
carbon neutrality,” through emission reduction actions,such as increasing energy efficiency and utilizing
renewable energy in manufacturing operations.
Furthermore, as stated in the policy, Ford is committed
to other third-party standards that go beyond climatechange, but include climate aspects. This includes
respecting the United Nations (UN) Guiding Principles
on Business and Human Rights, being a member of the
UN Global Compact, and supporting the UN Sustainable
Development Goals (SDGs).
Our Vice President, Chief Sustainability, Environment, andSafety Officer is responsible for interpreting andimplementing our We Are Committed to Protecting
Human Rights and the Environment policy. Our Chief
Executive Officer approves, and the Sustainability,
Innovation and Policy Committee of the Board of
Directors provides oversight of this policy. In addition,
our internal and external stakeholders review andprovide feedback.

Our Supplier Code of Conduct requires our suppliers
to establish science-based greenhouse gas reduction
targets, action plans, and transparent reporting
mechanisms aligned with the Paris Agreement tominimize their impact on climate change, including
carbon emissions, energy consumption, water use, andwaste. The Supplier Code of Conduct also requires that
our suppliers enforce a similar code of practice with
their subcontractors.

Circular Economy and End of Life —Air, Water, and Soil Pollution —Water Resources — Biodiversity and Ecosystems

Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices59
Overview —Climate Change —Circular Economy and End of Life —Air, Water, and Soil Pollution —Water Resources — Biodiversity and Ecosystems

Climate Change
Achieving Carbon Neutrality
ESRS E1-3, ESRS E1-4

Metrics Overview
In this section we provide an overview of our climaterelated metrics for our vehicles, our operations, and our
supply chain followed by details for each of the threefocus areas including targets, metric methodology,
decarbonization levers, key planned actions andinvestments, performance, and an outlook.
Our carbon neutrality related metrics help us to ensurethat we are decarbonizing our business in a timely
manner and managing climate risks and opportunities.
The metrics are aligned with Ford’s We Are Committed
to Protecting Human Rights and the Environment policy
and the Paris Climate Agreement.
Ford has established the following metrics:
Vehicles — Fleet Average• Voluntary– Scope 3 well-to-wheels (WTW) greenhouse gas (GHG)
emissions from the use of sold products (grams
CO2e / km, Science Based Target initiative (SBTi))• Regulatory– Fuel economy (miles per gallon) or fuel consumption(L/100km)– CO2 tailpipe emissions (grams per mile or km)
Operations — Voluntary• Manufacturing and non-manufacturing– Absolute Scope 1 and 2 (tCO2e, SBTi)• Manufacturing only
– Carbon-free electricity (%)
Together the two SBTi 2035 targets cover 69% of total
scope GHG emissions, do not include offsets, and arestrictly GHG reduction targets. Our decision to set SBTiendorsed science-based emission reduction targets waspartially informed by knowledgeable stakeholders suchas investors and non-governmental organizations (NGOs).

An overview of the two SBTi 2035 targets is given intable SBTi 2035 Targets Summary; details are discussed
below. We are on track to achieve both SBTi targets.

In Performance Data on p.135

Our vehicle metrics are affected by the shift in global
consumer preference away from smaller vehicles towardtrucks and SUVs. U.S. industry vehicle production datafrom the 2023 EPA Automotive Trends database shows
this shift from 53% cars in 2017 to 37% cars in 2022.
Our Ford portfolio is increasingly focused on the
products with the greatest reach and leverage, allowing
us to enhance the fuel efficiency of our light- andmedium duty truck lines, and offer full battery andhybrid electric versions of our flagship nameplates.
Data from the U.S. EPA Automotive Trends Report,
representing the largest share of vehicles in our global
fleet, show that the real-world CO2-intensity of Ford U.S.
light-duty vehicles has improved 21% for cars and 10%
for trucks between 2017 and 2022.
Metrics Governance
Our SBTi-approved GHG scope emissions metrics andcarbon-free electricity metric are reported biannuallyin the Global Sustainability & ESG Meeting (GSM) andannually to the Sustainability, Innovation and Policy
Committee of the Board of Directors.
The vehicle fuel economy/consumption and CO2 metrics
are reviewed two or more times per year at theCompliance Automotive Strategy Meeting.

SBTi 2035 Targets Summary
Scope 3 — Category 11 — Vehicle Use

Scope 1 and 2 — Total Operations(Manufacturing + Non-Manufacturing)

Reduction Target

50%

76%

Reduction Target Year

2035

2035

Base Year

2019

2017

Base Year Value

330 (g CO2e / km)

4.6 (M metric tons CO2e)2023 Status311.1 (g CO2e / km)

2.5 (M metric tons CO2e)

Pathway

well-below 2°C23

1.5°C

Methodology

SBTi sectoral decarbonization pathway
for Transport (v 1.1)

SBTi cross-sector absolute contraction

Scope Split

NA

S1 — 30%
S2 — 70%

Scope Coverage (%)

69% of total Scope 324
78% of Scope 3, category 11

100%

GHG Coverage

CO2, CH4, N2O

CO2, CH4, N2O

External Assurance

SBTi — 2021

SBTi — 2021

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Climate Change — Achieving Carbon Neutrality— continued
ESRS E1-3, ESRS E1-4

Vehicle Use — Scope 3
TargetFord’s SBTi approved intensity target for Scope 3 GHG
emissions from the use of sold products is to reduce
emissions 50% per vehicle km by 2035 from a 2019base year.

When setting our Scope 3, category 11 target, we used
an internal forecast of future sales activity as input to the
SBTi sectoral decarbonization tool. The tool adjusts theintensity target to account for growth such that absoluteemissions decrease.

Methodology
Our Scope 3 use of sold products (vehicles) target uses
the SBTi sectoral decarbonization pathway for Transport(v 1.1). This is a well-below 2°C path; as noted earlier, avehicle sector pathway for 1.5°C target setting has not
yet been finalized by SBTi.

Key factors to achieving the target include technology
solutions, government policies and regulations, customer
adoption of new technologies, and economic conditions.
Future technology solutions, such as electric vehicles,
and supportive policies and regulations can help achieve
the target. Customer preferences and economic
conditions may have either positive or negative GHG
emissions contributions.

This intensity target covers about 78% of the global fleet
emissions, focusing on the regulated vehicle fleets in
our key markets: the U.S., the EU, and China. This is asubset of the global inventory of absolute vehicle GHG
emissions that are calculated for 100% of the global fleet.
We use robust compliance data in regions where vehicle
fuel economy and CO2 are regulated. Emissions fromunregulated vehicle types and regions are calculatedwith average data from the regulated vehicle fleets.

When Ford established this target in 2021, the base yearof 2019 was chosen as a year with representative sales
volumes. 2020 was not chosen as a base year due to the
COVID pandemic and global microchip shortages
affecting sales volumes. The baseline value for setting
2035 targets were calculated following the GHG Protocol,and has been verified to a limited level of assurance.

The Scope 3 target goes beyond tailpipe emissions andincludes reducing vehicle emissions from an energy-cycle(fuel and electricity) perspective, well-to-wheels (WTW),
which includes both the production and consumption of
the energy used by the vehicles. The vehicle emissions
are calculated to represent on-road WTW emissions.
That is, the calculations convert regulatory laboratory
test tailpipe emission data to on-road emissions andadd the emissions associated with upstream energy
production such as extracting and refining oil andgenerating electricity. Lifetime is defined as 150,000
miles (241,000 km) for light duty vehicles and 185,000
miles (298,000 km) for heavy duty vehicles.

Decarbonization Levers, Actions, and Investments
Reducing GHG emissions associated with the use of
our vehicles, our largest GHG emissions source, is critical.
The use-phase CO2 emissions on a WTW basis depend
on vehicle design, the energy source, and how thevehicles are used by our customers. See overview intable, A Portfolio Approach to Decarbonizing Vehicles.
Ford is researching and developing technology andservices to address reductions in all three areas.
This includes collaboration with a range of partners,
including fuel and electricity producers, infrastructuredevelopers, and governments, particularly for well-totank (WTT) energy production emissions that are beyond
our direct control.

A Portfolio Approach to Decarbonizing Vehicles
Vehicle Design

Lower-carbon Energy Options

Support Customers• Electric vehicles• Fuel cell vehicles• Plug-in hybrid vehicles• Hybrid vehicles• Aerodynamic improvements• Weight reductions• Electricity• Hydrogen• Biofuels• Carbon neutral e-fuels• Compressed natural gas (CNG)• Liquefied petroleum gas (LPG)• Providing options for different
vehicles and fuels, and how thosevehicles will be maintained• Address key adoption enablers,e.g., affordability and EV charging
deployment with renewable energy• Promoting “eco-driving” throughtraining, information, and in-vehicle
technology

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Climate Change — Achieving Carbon Neutrality— continued
ESRS E1-3, ESRS E1-4

Long-term, we expect that carbon neutral cars andvans globally will be powered by some combinationof electricity, hydrogen, and hydrocarbon fuels fromsustainable sources, depending on infrastructure,technology development, policy, and customer
acceptance. (See graphic Future Carbon-neutral
Transportation Options.) The challenge, however, as
highlighted by the scenario analysis, is not only meetingthe need for a diverse set of environmentally friendly
technology solutions globally, but flexibly developing
and offering solutions that are responsive to thechanging needs of our consumers.
We will continue to improve fuel economy and reduce
GHG emissions across our global vehicle portfolio, while
rapidly scaling our EV production rate.
Vehicle Design
Our early EV actions have contributed to current GHG
reductions, as well as improvements in fuel economy in
our internal combustion engine (ICE) and hybrid vehicles.
These will continue to be key levers going forward as
we transform the portfolio.
Our efforts also include the development of hydrogenfuel cell technology for our medium- and heavy-duty
vehicles. In partnership with the U.S. Department ofEnergy (DOE) we will develop and demonstrate hydrogenfuel cell electric Class-5 Super Duty trucks through the
DOE SuperTruck 3 program. With this project, we intend
to show that fuel cell electric technology offers cost,
payload, towing, and refueling times that are approaching
those of conventional gasoline and diesel trucks.

In Electric Vehicles, Batteries and Charging Infrastructure on p.34
In ICE and Hybrid Advancements on p.38

Lower-carbon Energy Options
As the electric grid continues to shift to carbon‑freeenergy sources, CO2 emissions from electricity production
are expected to further decrease, creating even greater
CO2 emissions savings, particularly for EVs.

Future Carbon-neutral Transportation Options

According to Argonne National Laboratory’s GREET 2023
model, compared to conventional port fuel injection (PFI)
gasoline engine with 10% ethanol (E10) vehicles, EVs
reduce GHG emissions almost 60% when charged with
U.S. average grid electricity. (See EV Emission Savings on
page 63 to see how this translates to Ford products.)
When electricity is produced using carbon-free energy,
the in-use GHG reduction is up to 100% on a well-towheels basis.
The GREET model also shows possible GHG reductions
for alternative fuels, enabling our customers to reduce
their carbon footprint during the transition to electricvehicles. GHG emissions can be about 15% lower fordiesel and compressed natural gas (CNG) vehicles, 25%
lower for 20% biodiesel blend (B20) vehicles, and 30%
lower for 85% ethanol from corn (E85) vehicles.
GHG emission reductions of about 55% are possible
with hydrogen fuel cell vehicles using “grey” hydrogenproduced by steam methane reforming (SMR) of naturalgas. Using “blue” hydrogen (produced mainly by SMR
coupled with carbon capture and storage), or “green”
hydrogen (produced by electrolysis from carbon-freeelectricity), fuel cell vehicles can have 80-95% well-towheels GHG reduction. Green hydrogen could also be
used to synthesize synthetic fuels made from electricity
often called e-fuels. (See graphic Future Carbon neutral
Transportation Options.) While e-fuels are not yet
commercially available, they have the potential for 95%
GHG reductions over the entire life cycle compared to
ICE vehicles, according to FVV25.

EV: Electric vehicle; CCS: carbon capture and storage; FCEV: fuel cell electric vehicle; HEV: hybrid electric vehicle; ICEV: internal combustion engine vehicle;
PHEV: plug-in hybrid electric vehicle

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Climate Change — Achieving Carbon Neutrality— continued
ESRS E1-3, ESRS E1-4

We offer our customers many vehicles that are capableof using these reduced-GHG fuels. All our diesel vehicles
are compatible with low-level biodiesel blends including
B20 in the U.S., Thailand, and Malaysia; B7 in Europe;
B30 in Indonesia; and B15 in Brazil. Also in Europe, ourTransit, Transit Custom, Transit Courier, Transit Connect,
and Ranger are compatible with renewable paraffinic
diesel fuels such as HVO, renewable diesel, and e-diesel,and can be used at higher blends, typically from 33% to100%. See table, Vehicles Powered by Alternative Fuels.
Supporting Customers
We offer a comprehensive and flexible range of electricand efficient internal combustion vehicles, including
hybrids. To facilitate the transition, we are working
to make EVs more accessible to millions, addressing
barriers to entry such as charging and cost, andimproving the EV customer purchase experience.
To meet our commercial customers’ growing demand forvalue and productivity as well as sustainable products,
Ford Pro combines digital and physical services to help
optimize and maintain customer fleets while offering
public, depot, and employee home charging of EVs,
including the use of carbon-free energy. Our advanced
telematics systems contribute to fuel efficiency andreduced emissions by helping commercial customers
optimize delivery or service call routes, including to put
the right vehicle in the right place for the right job, andproviding in-vehicle training for drivers to develop more
efficient operating habits.

In Electric Vehicles, Batteries, andCharging Infrastructure on p.34

Vehicles Powered by Alternative Fuels
Conventional
Fuel

Alternative
Fuel(s)

Production Method
and Feedstocks

Typical Blend Levels
in Gasoline or Diesel(varies by region)

Vehicle Type

Ford Vehicle Models

Gasoline

Ethanol(low and highlevel blends)

Fermentation of corn starchor sugar cane (1st generation)or from non-food biomass(2nd generation)

10%, 15%, 28%, or up
to 85% in gasoline

Conventional sparkignited IC engine. Flexfuel vehicle (FFV)
adaptions for E85

Low-level blends compatible in conventional vehicles foreach region
E85 (U.S.): F-150, F-250, F-350, F-450 Super Duty, Police
Interceptor Utility, Transit, Transit Connect, Transit Cutaway/
Chassis Cab, E-350, E-450 Cutaway and Stripped Chassis
E85 FFV (France and Sweden): Kuga, Fiesta, Puma, Focus,
Transit Connect

DieselNot
applicableE-gasoline

Chemical synthesis using
CO2, electricity26, and waterNot yet available,
theoretically up to 100%in gasoline

Conventional sparkignited IC engine

Expected to be compatible in all conventional gasoline
vehiclesBiodiesel

Transesterification of plantoils (soy, canola, rapeseed,corn, palm) or animal fats

5%, 7%, 20% in
diesel fuelConventional
compression ignition
IC engine

B7 (Europe): All diesel models

Paraffinic
diesel(renewablediesel,E-diesel)Hydrotreating of plant oils or
animal fats. Chemical
synthesis using CO2 orbiomass, electricity26, andwater

33% to 100% in
diesel fuelConventional
compression ignition
IC engine

R33 (Europe): All diesel models

Compressed
Natural Gas(CNG, also
biomethane,e-methane)

Natural gas from fossil
resources. Anaerobic
digestion of biomass.
Chemical synthesis using
CO2, electricity26, and water

Not applicable

Spark-ignited IC engineswith CNG fuel system

Wide range of U.S. commercial vehicles with CNG/Propane
prep kits: F-250, F-350, F-450, F-550, F-600, F-650, F-750,
Transit Connect, E-Series Cutaway, F-59, F-53 RV Stripped
ChassisLiquefiedpetroleumgas (LPG)

Propane and butane fromfossil resources

Not applicable

Spark-ignited IC engineswith LPG fuel system

Compressedhydrogen (H2)

Steam reforming of methaneor electrolysis26 of water

Not applicable

Fuel cell vehicle or
spark-ignited IC engineswith H2 fuel system

B20 (U.S.): F-250, F-350, F-450, F-550, F-600, F-600, Super
Duty Pickups and Chassis Cabs; F-650 and F-750 Medium
Duty Chassis Cab

R100 (Europe): Transit, Transit Custom, Transit Courier,Transit Connect, Ranger

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Climate Change — Achieving Carbon Neutrality— continued
ESRS E1-3, ESRS E1-4

EV Emission Savings
Driving a Ford EV27,28 that is charged using U.S. gridaverage electricity29 can reduce GHG emissions by asmuch as 62% compared to driving a similar internal
combustion engine vehicle (ICEV)30,31. The savings include
GHG emissions emitted during both fuel production andat the tailpipe of the ICEV, together known as well-towheels emissions32, and the production of the electricity
used for charging the EV.

As the electric grid continues to shift to carbon-freeenergy sources, GHG emissions from electricity
production are expected to further decrease, creatingeven greater GHG emissions savings. The calculated
savings vary slightly each model year due to annualchanges in the EV efficiency, the fuel consumption of
the average internal combustion engine (ICE) vehicle,
and the carbon intensity of the electric grid.

What does this mean for the environment?
F-150 Lightning Platinum27,32d (ext. range)
Lifetime EV GHG
Savings vs. ICE
Vehicle (metric tons)

77

GHG savings areequivalent to8,664
gallons of gasoline
not used33

Lifetime Use Emissions32 (well-to-wheels per vehicle)
Mustang Mach-E RWD27,32d (base range)
Lifetime EV GHG
Savings vs. ICE
Vehicle (metric tons)

37

GHG savings areequivalent to4,163
gallons of gasoline
not used33

E-Transit28,32d (low roof)
Lifetime EV GHG
Savings vs. ICE
Vehicle (metric tons)

59

GHG savings areequivalent to

6,639
gallons of gasoline
not used33

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Climate Change — Achieving Carbon Neutrality— continued
ESRS E1-3, ESRS E1-4

Performance
We are on track to achieve our 50% reduction target for
Scope 3 vehicle use, as shown in graph, SBTi Scope 3 Useof Sold Products Target and Progress. Our preliminary
estimate for 2023 shows the average GHG intensity ofthe vehicles we sold in 2023 will be about 6% lower thanfor the vehicles we sold in 2019. The preliminary data for2023 indicate the fleet average CO2e-intensity is about
the same as in 2022.
And we estimate the absolute Scope 3 emissions fromthe use of sold products (vehicles) will be reduced byabout 21% since 2019.

OutlookEVs are the core of our decarbonization strategy.
Currently, the EV market is rapidly changing — demandhas been slower than expected and prices are coming
down towards parity with internal combustion engine(ICE) vehicles. We need to continue to adapt to remaincompetitive. That means offering high-quality,
differentiated products and services at a price point
customers are willing to pay. As we scale our EV businessto match demand, we can take advantage of increased
plant capacity, design and manufacturing efficiency
initiatives, and improving battery costs to help increase
the value proposition of our EVs and grow our market
share. We also expect EV technology to continue todevelop with decreasing associated costs and for thegrid to decarbonize, giving us confidence in achieving
our long-term GHG reduction targets.
Complementary to our EV strategy, we continue to offer
customers broad choice with lower emissions during
the transition to fully carbon neutral transportation. For
example, fuel efficient hybrids are growing in popularity,
particularly in markets where EV infrastructure is notmature. Ford has been selling hybrid vehicles for morethan two decades. In 2023, we sold nearly 280,000
hybrids globally, up nearly 20% year over year, andwe expect them to continue growing this year.

Operations — Scope 1 and 2
Target — GHG Reductions
Ford has set a science-based target, approved by SBTi,
to reduce Scope 1 and 2 GHG emissions by 76% by 2035,
relative to a 2017 baseline.
Methodology — GHG Reductions
This reduction target is based on the SBTi 1.5°C crosssector absolute contraction pathway of 4.2% annual,linear GHG reduction. Scope 1 emissions account for 30%
while Scope 2 represents 70% of the emissions in thebaseline year. Scope 2 emissions are market-based.
This target accounts for approximately 1% of Ford’s total
GHG emissions and covers 100% of the total Scope 1 and2 emissions. This means that target covers 100% of ouroperations (manufacturing and non-manufacturing) thatare defined in our Inventory Management Plan as being
within Ford’s operational control and includes many of
our global joint venture (JV) manufacturing facilities.
We ensure that our Scope 1 and 2 target is consistent
with our GHG inventory boundaries through our GHG
inventory and associated management plan, alignedwith the GHG Protocol and ISO 14064-3. The inventory
management plan clearly defines our operationalboundaries, emission sources, and associatedmethodologies, to ensure consistency from year to year.
For example, we have defined our organizationalboundaries using the operational control approach.
This approach was selected as we believe it yields
the most comprehensive and accurate accounting of
Ford’s global footprint, as the majority of Scope 1 and 2
GHG emissions are generated from manufacturing
facilities and offices which Ford owns and operates.
Each year, Ford reviews a comprehensive listing ofproperties, buildings, and spaces owned and leased
by Ford Motor Company for inclusion or removal fromthe GHG inventory.

This same process is used to ensure that data forthe baseline and subsequent years are representative.
The base year 2017 was chosen to be consistent withpreviously released CO2e reduction targets; it was also
seen as a representative production year. We did notuse 2020 as a baseline due to the COVID pandemic
and global microchip shortages resulting in lower
production volumes.
An annual third-party verification process validates ouremission inventory. Following verification, final metricstatus is shared internally with the Vice President, Chief
Sustainability, Environment, and Safety Officer as partof the Global Sustainability & ESG Meeting. This meetingis also used to review intermediate data mid-year.
Target — Carbon-free Electricity
Use 100 % carbon-free electricity in all manufacturing
facilities by 2035.
Methodology — Carbon-free Electricity
Procuring carbon-free electricity is one of Ford’s key
decarbonization objectives in achieving our sciencebased Scope 1 and 2 GHG reduction target. Progressis measured against the same base year of 2017.
This target covers all of the global manufacturing plants
where we have operational control. The same methodology
for the GHG reduction target is used to ensure that GHG
coverage for this target is consistent with our GHG
inventory boundaries and that the data for the baseline
and subsequent years are representative. This target also
goes through the same verification process as described
for the GHG reductions target.
Decarbonization Levers, Actions, and Investments
To achieve our operational emissions reduction goals
and realize our carbon neutral future, we are using energy
more efficiently, reducing GHG emissions from ouroperations and increasing our use of carbon-free energy.

Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices65
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Climate Change — Achieving Carbon Neutrality— continued
ESRS E1-3, ESRS E1-4

The expected relative contributions of the different levers
to reach our SBTi 2035 targets are shown in chart Key
Decarbonization Levers for 2035 SBTi Target — Scope 1
and 2. Past energy consumption and mix data; energy
intensity and GHG intensity based on net revenue; andgross Scopes 1 and 2 emissions are found in the
Performance Data section of this document.

In Performance Data on p.135

Energy Efficiency and GHG Reductions
Energy efficiency is a priority as we modernize existing
plants and design new ones. Our energy efficiency andconservation efforts over the past decade have focusedon improvements to lighting, compressed air, rotating
equipment (fans, pumps, and motors), heating systems,
and process system optimization.
Our Energy Management Operating System, launchedin 2013, delivers both energy efficiency projects andenergy conservation measures, with Plant Energy Teams
assigned at each plant to set priorities and implement
measures. For example, a significant lighting project at
Kansas City Assembly Plant in 2023 is projected to resultin 3,894 metric tons of CO2e reductions annually.
We also participated in the US Department of Energy’s
50001 Ready Program which helped us update andbetter integrate the ISO 50001 management systems
approach into our Energy Management Operating
System. As a result, we have 31 Ready-recognized sites in
the U.S., including all of our U.S. manufacturing locations.
Although only U.S. manufacturing sites are able to berecognized by the DOE under the Ready program, allof our manufacturing locations globally reap the benefitsof this program, as the approaches have been integrated
into our Energy Management Operating System.
Looking to the future, we are focused on driving energy
efficiency throughout the manufacturing process. In
particular, we are making significant investments in ourplants to reduce and eventually eliminate Scope 1 natural
gas emissions which present a significant challenge forour operations. For example, we are investing in a projectat Ohio Assembly Plant to reduce CO2 emissions associatedwith natural gas combustion in their paint shops.
With an investment of $2 billion, our Cologne plant iscurrently being transformed into the Cologne Electric
Vehicle Center. Major updates to the production facility,with new energy-efficient solutions, will save morethan 2,000 metric tons of CO2e and more than 2,600
megawatt hours (MWh) of electric energy per year.
In 2024, the Cologne Electric Vehicle Center will produce
the new Ford Explorer, our first European-built, allelectric passenger car. A second all-electric passenger
car will follow later in the year. (See box Achieving
Carbon Neutrality at Cologne EV Center for more details.)
We are also ensuring that our new offices are energy
efficient. In Dearborn, we are transforming the Researchand Engineering Center into a high-tech, efficient, andforward-thinking campus.

In ICE and Hybrid Vehicles on p.38

Achieving Carbon Neutrality at Cologne EV CenterTo achieve carbon neutrality, Ford will reduce theuse of energy and emissions in the Cologne plantby implementing new processes, machinery, andtechnologies. All electricity and natural gas required
to operate the facility is carbon neutral based on
being 100% certified renewable electricity andbiomethane.
The heat required to warm the facility and processes
is carbon neutral, as the local energy provider willoffset the corresponding emissions from theassembly plant on behalf of Ford. The heat is
generated by an external power plant and waste
incineration plant and provided through a dedicatedsteam network to Ford.
The local energy provider plans to reduce theiroperating emissions for this heat delivery byapproximately 60% in 2026 and then eliminate theseemissions completely by 2035. Once fully operational,
Ford’s Cologne EV Center will be independently
certified as carbon neutral. This independentcertification will be audited and reconciled on aregular basis against purchasing high-quality carbon
offsets for any remaining emissions.

Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices66
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Climate Change — Achieving Carbon Neutrality— continued
ESRS E1-3, ESRS E1-4

Carbon-free Energy
The use of carbon-free electricity is one of Ford’s key
decarbonization levers in achieving our science-based
Scope 1 and 2 GHG reduction target and 100% carbonfree electricity (Scope 2) for our global manufacturing
by 2035. Carbon-free electricity is defined as including
a mix of wind, solar, nuclear, geothermal, biomass, andhydro power.
This is primarily achieved through installation of on-site
renewables and through purchase of carbon-freeelectricity in the form of Energy Attribute Certificatesor similar market mechanisms. We have already madesignificant investments and we will continue to invest
and partner with utilities going forward to securecarbon-free electricity globally. See examples below,
Carbon-free Electricity in Michigan and Global On-site
Renewable Projects.
Our new Tennessee Electric Vehicle Center, when
operational at BlueOval City in 2025, will source 100%carbon-free electricity from the local utility guaranteed
through Energy Attribute Certificates. Furthermore, forthe first time in 120 years, a Ford assembly plant will use
recovered energy from the site’s utility infrastructure andgeothermal system to provide carbon-free heat for theassembly plant — saving about 300 million cubic feet of
natural gas typically needed each year to heat similarly
sized vehicle assembly plants. This equates to roughly
16,000 metric tons of CO2e savings annually.

Carbon-free Electricity in Michigan
Through an agreement with DTE Energy, Ford willsoon be able to attribute all our electricity supply
in Michigan to carbon-free sources, a major step
toward our goal of carbon neutrality. As part of theagreement, DTE will add 100 megawatts of new
solar energy capacity in Michigan for Ford by 2026,
and an additional 510 megawatts by the end of 2027.
The purchase is a strategic investment in Michigan
through DTE’s MIGreenPower program and is thelargest renewable energy purchase ever made in
the U.S. from a utility. According to data collectedby the Solar Energy Industries Association, once
installed, the arrays will increase the total amountof installed solar energy in Michigan by nearly 70%.

Performance
By securing a carbon-free and reliable energy supply
for many of our non-manufacturing and manufacturing
facilities, and making our facilities even more efficient,
we have achieved a 47.0% reduction in Scope 1 and 2
GHG emissions. We on track to achieve our 2035 76%
reduction target, being almost two-thirds of the way
there.

to reduce our global manufacturing Scope 1 and 2
GHG emissions by 18% by 2023 from a 2017 base year.
The status in 2023 of carbon-free electricity for our
global manufacturing operations was:
• Carbon-free electricity — 70.5%• Renewable electricity — 50.8%
Regionally, we have made significant progress toward
these objectives. We achieved the equivalent of 100%carbon-free electricity sourcing for our manufacturing
facilities in Europe, Mexico, and Ohio. We are also
on track to source 100% carbon-free electricity in
Michigan by 2026 through partnerships with local
utilities. (See box Carbon-free Electricity in Michigan.)
These achievements are at least 10 years ahead of ourglobal goal.

By 2026, every Ford vehicle manufactured inMichigan will be assembled with the equivalentof 100% carbon-free electricity, 9 years earlier thanFord’s global goal. By achieving 100% carbon-freeelectricity for all manufacturing locations in Michigan,
Ford will avoid close to 600,000 metric tons of CO2eannually. Ford’s purchase will also serve to improve
the local environment and add resiliency to the
local grid.

Outlook
Our primary decarbonization lever is carbon-freeelectricity. Early procurement of carbon-free electricity
has allowed us to significantly overachieve our objective
to reduce manufacturing Scope 1 and 2 GHG emissions
by 18% by 2023. Looking ahead, continuing to implement
energy efficiency measures and eliminating Scope 2
emissions from electricity by 2035 will enable us to meet
our SBTi Scope 1 and 2 GHG emission reduction target.

We also track other related metrics. In 2023, we reached
a 49.0% reduction in our absolute manufacturing GHG
footprint from 2017 levels, a subset of the total Scope 1
and 2 emissions target for all facilities (manufacturing
and non-manufacturing). This surpasses our commitment

Battery production for the electrification of our fleet will
significantly increase the amount of electricity required.
And while we are confident that we will be able toprocure 100% carbon-free electricity by 2035, there may
be some periods where demand outpaces supply associety also becomes increasingly electrified and thedemand for electricity grows. To avoid shortfalls, we willcontinue to invest in and partner with utilities to securesufficient carbon-free electricity globally.

Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices67
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Climate Change — Achieving Carbon Neutrality— continued
ESRS E1-3, ESRS E1-4

Global On-site Renewable Projects
On-site generated renewable energy
production was 115,739 MWh in 2023.

0.7MWpUnited States
Sacramento HVC/HCC Regional
Distribution Center

5.9
MWp

113
MWp

MWp

7.7
MWp

"
••••
•<1>
•••
••••

...

••
Key

•
•
--

Ford and their partners have installed
solar at 5 different plants.

3.8MWp

6.1 MWp

-.Wind

Thailand - Joint Venture
AutoAlliance Thailand

The installation, due to be completed
by mid-2024, will supply about 6%of the electricity needed for the Fordfacilities located in Merkenich including
its development center.

Ford and their partners increased
capacity of their rooftop solar
installation in 2023.

5MWp

7.7MWpSpain
Almussafes Vehicle
Manufacturing Facility

Thailand
Ford Thailand Manufacturing

Operational since 2022. The installation
is capable of producing the equivalent
power every year to run 2,300 averagehomes. This will be extended to 8.6 MWp
in the spring of 2024.

13.SMWp

UK

South Africa
Ford Silverton Assembly Plant,
Pretoria

Daventry Parts Distribution Cente

Installed in 2023 and is scheduled
to be operational in the first quarterof 2024 .

UK
Dagenham Engine Plant

Three wind turbines provide enoughclean energy to power the final
assembly building.

••Solar installation in the vehicle
parking yard covers a total areaof 59,000 square meters.

1MWp

Sourcing 35% of its electricity from solar
power through the installation of solar
photovoltaic carports for 3,600 vehicles.

5.9MWpSolar

China - Joint Ventures
Changan Ford facilities
in Chongqing and Jiangling Ford

Anticipated to cover 90% of the facility's
usage, the system came on line Aug 2023.

Germany
Merkenich, Cologne

0.7113MWp•---Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices68
Overview — Climate Change —Circular Economy and End of Life —Air, Water, and Soil Pollution —Water Resources— Biodiversity and Ecosystems

Climate Change — Achieving Carbon Neutrality— continued
ESRS E1-3, ESRS E1-4

Supply Chain — Scope 3 — Purchased Goods
and Servicesof carbon-free electricity, a key enabler to addressing
climate change.

Targets
Ford has established targets to achieve carbon neutrality
for our supply chain (Scope 3 emissions — purchased
goods and services).

All of our production suppliers were required to submit
carbon neutrality target dates by the end of 2022. We areusing this information to develop a joint roadmap withthem on our journey toward carbon neutrality. In 2023,
supplier carbon neutrality status was integrated into
production sourcing decisions.

• Europe — across Ford of Europe Tier 1 suppliers for
Scope 1 and 2 GHG emissions by 2035.
• Global — across all suppliers, for all scopes, no later
than 2050.
Decarbonization Levers, Actions, and Investments
Our supply chain is essential to reducing GHG emissions
and achieving our carbon neutrality goals. We arefocused on increasing supplier engagement across the
supply chain by leveraging the requirements of our
Supplier Code of Conduct and engaging in initiatives
such as Manufacture 2030. The latter builds on our
successful CDP Supply Chain reporting program to bettermeasure progress and help identify areas of concern. We
are also focusing on decarbonizing key materials andimproving data quality and availability.
Supplier Engagement — The Supplier Code of Conduct
We have outlined conduct guidelines for our suppliers
since 2003, and in 2021, established a formal Supplier
Code of Conduct that applies clear expectations related
to human rights, the environment, responsible material
sourcing, and lawful business practices for our supplier.
The document was refreshed in 2023 to include Ford in
Europe’s accelerated carbon neutrality aspiration.
The Supplier Code of Conduct requires Ford suppliers
to establish science-based GHG reduction targets, actionplans, and transparent reporting mechanisms aligned
to support carbon neutrality no later than 2050 globally(all scopes); and for Tier 1 sites shipping to Europe, carbon
neutrality by 2035 (Scope 1 and 2). We also require our
suppliers to increase energy efficiency and their use

Representative Electric Vehicle Material Supply
Chain Emissions (kg C0 2 e/vehicle)

Supplier Engagement — Climate Best Practice Program
Ford was among the first American automakers toinclude our global supply chain on the Manufacture2030 (M2030) platform. This climate best practiceprogram provides support for our suppliers withmeasurement, management, and reduction of carbon
emissions, water, and waste as we strive to reach carbon
neutrality globally.
Not only does this program provide support to our
suppliers in building an action plan toward carbon
neutrality, but it will also help Ford identify andprioritize key focus areas and those suppliers requiringextra support.
In 2023 we opened the voluntary platform up to all of ourTier 1 global supplier sites (over 4,600), including suppliers
who have yet to establish science-based targets.
Low-Carbon Materials
From a life cycle perspective for a strong EV portfolio, thehighest emitting materials are batteries, steel, aluminum,and plastics as shown in the chart to the right. Note that
this is only illustrative, the relative amounts will varydepending on the vehicles.

purchase at least 10% low-carbon aluminum and nearzero steel by 2030.34
Plastics
Recognizing the important role the circular economy
plays in reducing emissions embedded in our vehicles,
we have set a target to use 20% recycled and renewableplastics in new vehicle designs for North America,
Europe, and Turkey by 2025. Our target for China is 10%.
Read Morein Circular Economy and End of Life on p.76

Our Supplier Code of Conduct requires Ford suppliers to
use recycled and renewable materials where possible inpackaging. It also mandates that suppliers increase theiruse of recycled content and improve the recyclability ofFord products through material selection and productdesign as approved by Ford.
Batteries
In Europe, new regulations will require manufacturers
to report on their supply chain carbon footprint andextended producer responsibility for proper battery
recycling. In advance of the European Battery Regulation,
Ford is participating in EV battery pilots to supportcompliance with both of these requirements.
Read MoreIn Human Rights on p.96

Steel and Aluminum — First Movers Coalition
The First Movers Coalition is a global initiative toharness purchasing power and supply chains tocreate early markets for innovative clean energy
technologies. More than 90 companies comprise thecoalition to help accelerate the adoption of emerging
climate technologies. By 2030, these commitments will
represent an annual demand of $16 billion for emerging
climate technologies and 31 million tonnes (Mt) CO2ein annual emissions reductions. Ford has pledged toData Quality and Availability — Catena-X
In an effort to increase the transparency of our supply
chain, we have engaged with the Catena-X Automotive
Network, which was established to improve sustainability
and efficiency across the automotive supply chain
through continuous data exchange between partners.
Ford joins a wide range of partners from business andscience in this unprecedented collaboration between
companies in the automotive industry.
As a digital ecosystem and collaborative network,
Catena-X will create uniform standards for data andinformation exchange across the automotive value chain.
This includes the calculation of product carbon footprints
and facilitating the exchange of primary CO2 data, a key
to understanding embedded emissions in vehicles anddriving reductions. In 2023 we joined with Cofinity X
for the beta phase of testing and selected partners fora product carbon footprint study that will collect data
up to Tier 4 suppliers.

Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices69
Overview —Climate Change —Climate Change — Achieving Carbon Neutrality— continued
ESRS E1-3, ESRS E1-4

Performance
We have seen significant improvements in supplierengagement in 2023, particularly for CDP and
Manufacture 2030 (M2030) responses. For example, we
had a 20% increase in supplier CDP responses over 2022.
It is also encouraging to see a number of our large Tier 1
suppliers engaging on the M2030 platform and requiring
their suppliers to participate, which is an important stepin tackling our Tier 2 emissions.
Furthermore, integrating carbon neutrality into oursourcing decisions was a key step in changing how we
do business. This, along with our continued engagementwith suppliers to understand their commitment, will help
ensure future progress.
Helping us meet our commitment to the First Movers
Coalition and our carbon neutrality aspirations, Ford istaking steps to secure a supply of near-zero emissions
steel and low-carbon aluminum for future products. Fordhas signed non-binding memorandums of understanding(MoUs) with strategic aluminum and steel suppliers tosecure a supply of of near-zero emissions steel and lowcarbon aluminum and significantly improve the carbon
footprint of our supply chain, of which aluminum andsteel production is a key component. In 2023 we met
with these strategic suppliers to understand the required
transformation, including the significant increase indemand for carbon-free electricity and hydrogen.
In 2023 we also communicated with suppliers impacted
by the EU Carbon Border Adjustment Mechanism (CBAM)
and began collecting primary direct GHG emissions data
for CBAM impacted parts.

Outlook
Decarbonizing the supply chain is a complex taskof growing importance as we electrify our portfolio.
Increasing collaboration to cost-effectively reduce
the GHG emissions of our materials and parts while
improving data availability and quality are key enablers
going forward.
Increasing our use of renewable energy, including greenhydrogen, is the most important external factor in thetransition to low-carbon materials. Significant investmentin these and other technologies is critical — as isgovernmental funding and policy support to help
facilitate the transition.
GHG Removals and Mitigation Projects Financed
through Carbon Credits
ESRS E1-7

The GHG removals and GHG mitigation projects financed
through carbon credits mentioned here do not contributeto our GHG reduction targets. Any financed carbon
credits proposals are evaluated by the offsetting review
board, composed of a cross-functional team of experts,
based on strict criteria in terms of what is being offset
and how it is being offset. The proposals are approvedat the Global Sustainability & ESG Meeting. For example,
it is required that project GHG reductions should beon track for a science-based pathway, have an end dateto the usage of offsets and the amount must be below
Ford’s defined threshold. The offsets that are purchased
need to be third-party certified, highly additional,
permanent, and with no leakage.
No offsets were purchased in 2023 for use of making
carbon neutral claims. As previously noted, however,once fully operational, the Cologne EV Center will be
independently certified as carbon neutral. The detailsof the amount and the chosen financed carbon credit
projects will be disclosed in future reports.

Circular Economy and End of Life —Air, Water, and Soil Pollution —Water Resources— Biodiversity and Ecosystems

Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices70
Overview —Climate Change —Circular Economy and End of Life —Air, Water, and Soil Pollution —Water Resources— Biodiversity and Ecosystems

Climate Change
Scenario / Resilience Analysis
E1 SBM-3

Our Approach to Resilience Analysis

Introduction to the Scenarios

The scenario analysis informs the Company about how
to position itself appropriately on climate risks, related
opportunities, and the resilience of our strategy andbusiness operations. Each scenario requires a high-level
qualitative assessment of the potential impact of the
scenario and climate-related issues on Ford’s financial
performance (revenues and costs) and financial position(assets and liabilities).

We use the International Energy Agency’s (IEA) World
Energy Outlook (WEO) and Intergovernmental Panel on
Climate Change (IPCC) scenarios as authoritative sourcesaligned with state-of-the-art science for global energy
projections that are relevant to our global footprint.
WEO scenarios provide insight into energy supply anddemand with implications for climate targets and economic
development. Of the three WEO scenarios, we use theStated Policies Scenario (STEPS) and the Net Zero
Emissions by 2050 (NZE) Scenario shown in the table2035-2045 Scenario Comparison Overview. We also
include the IPCC Representative Concentration Pathway
8.5 (RCP8.5) high emissions and temperature scenario.
Like the WEO scenarios, RCP8.5 has underlying
projections of energy consumption and socio-economic
factors. These three scenarios cover conditions from highclimate ambition to status quo to significant climate
impacts, providing a useful range of circumstances tocover relevant risks and uncertainties in Ford’s value
chain.

A team of internal experts qualitatively evaluated our
corporate strategies assessing our resilience to eachscenario. The team reviewed the scenario assumptions,brainstormed scenario implications to industry and Ford,and considered whether our strategies and investments
are resilient to future business environments. The
resilience analysis was conducted for the entire value
chain with focus on our own operations and the supply
chain. All previously discussed climate-related impacts,
risks, and opportunities were considered in the analysis.
Our scenario analysis covers a 2035-2045 time horizon.
This is aligned with our current interim 2035 Science
Based Target initiative (SBTi) Targets. It is far enoughinto the future, as it will take time to decarbonize thetransportation system, yet still relevant for Ford’s
strategic planning processes. These scenarios are notpredictions of the future and do not represent forecasts.
The 2023 published analysis was refreshed at the
beginning of 2024, including adding a high emissions
and temperature scenario. The process of climate
scenario analysis is evolving, and we expect theapproaches and data quality to improve over time, which
will further contribute to our understanding of climate
risks and opportunities, and help strengthen our ability
to adapt to climate change. This will include, in the future,
the consideration of estimated anticipated financial
effects from material physical and transition risks.

The three scenarios:• The Net Zero Emissions by 2050 Scenario (NZE) shows
the global energy sector achieving net zero CO2emissions by 2050, with advanced economies reaching
NZE ahead of others.
• The Stated Policies Scenario (STEPS) is a pragmatic
exploration of the current policy landscape, mappingout a trajectory of policies that are in place or underdevelopment by governments around the world.
• The IPCC’s Representative Concentration Pathway 8.5(RCP8.5) considers a case with high energy demandand GHG emissions growth in the absence of climate
policies, leading to high temperature increase.

2035–2045 Scenario Comparison Overview
Net Zero Emissions by
2050 Scenario (NZE)

Stated Policies Scenario(STEPS)High Emissions/Temperature
Scenario (RCP8.5)

Temperature Increase(2040 est.)

1.5°C~1.8°C

2°C

PolicyGlobal policy implemented
to limit temperature rise to
1.5°C. CO2 pricing rises
rapidly in all regions

Today’s policies withno changes

No explicit climate policy

Deploys a wide portfolio ofclean energy technologies

Evolutionary growth

Modest progress, focusing on
unconventional fossil energy
development and food security

Energy Consumption (EJ) 632 to 528, -16.5%
2022 to 2040
(elec +29%)

632 to 692, +9.5%(elec: +18%)

650 to 1,000, +54%

Energy Mix

58% renewables & biomass

28% renewables & biomass

18% renewables & biomass

Energy Prices in 2030s

Oil averages $42/bbl

Oil averages $85/bbl

Fossil fuel prices double by
mid-century (vs 2005)

EVs in 2030s

Higher EV adoption acrossmarkets

Lower EV adoption inadvanced economies

Extremely limited EV adoption;
continued reliance on oil in thetransport sector

Environment

Less severe weather events

Increasing severe weather
eventsFrequent and severe weather
eventsEconomy3% average annual growth

3% growth slows due tohigh rebuilding costs

3% growth, but low per capita
income increase as population
growth is high. Little
convergence between highand low-income countries

Technology

Existing and planned
CO2 pricing

Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices71
Overview —Climate Change —Circular Economy and End of Life —Air, Water, and Soil Pollution —Climate Change — Scenario / Resilience Analysis— continued
E1 SBM-3

Common Assumptions for WEO Scenarios35
Many assumptions are common between the STEPS
and NZE scenarios as described by the WEO:
• The global economy is assumed to grow by ~3% peryear on average over the period to 2050, with large
variations by region and over time
• GDP per capita in emerging market and developing
economies continues to gradually move toward thelevels in advanced economies• The global population is assumed to rise from
7.8 billion people in 2021 to 8.5 billion in 2030 and
9.7 billion in 2050
• Improvements in health, diet,and living conditions have
gradually lifted life expectancy of the global population
by a decade over the past 40 years. Coupled withdeclining fertility rates, this translates into a rising
share of older people in the global population. An older
population uses more energy than the average
population at home, but less for transport• The share of the global population living in towns
and cities is expected to rise to almost 70% by 2050.
Urban development has implications for patterns ofenergy use• Technology costs are crucial in determining how
demand for energy services is met in each sector orcountry. The cost of energy technologies evolve overtime in the scenarios as a result of continued research,
improvements in manufacturing and learning-by-doing.
However, a continuous process of technology
improvement and learning is built into the modeling.
A reduction in clean technology costs is assumed,
albeit with variations depending on the level of policy
support and extent of deployment

The Net Zero Emissions by 2050 Scenario (NZE)36
This is a normative IEA scenario that shows a narrow but
theoretically achievable pathway for the global energy
sector to achieve net zero CO2 emissions by 2050, withadvanced economies reaching net zero emissions aheadof others. This scenario also meets key energy-related
United Nations Sustainable Development Goals, inparticular, by achieving universal access to energy by2030. This effort requires increased investment in clean
energy and infrastructure output, in both emerging
markets and developing economies. The scenario does
not rely on emissions reductions from outside the energy
sector to achieve its goals but assumes that non-energy
emissions will be reduced in the same proportion asenergy emissions. It is consistent with limiting the global
temperature rise to 1.5°C by 2100 without a temperature
overshoot (with a 50% probability).
The Stated Policies Scenario (STEPS)36
STEPS provides a more conservative benchmark for the
future because it does not assume that governments willreach all announced goals. The scenario is not designed
to achieve a particular outcome, and the rise in global
average temperatures associated with STEPS is around
2.4°C by 2100 (with a 50% probability). Instead, it takes
a more granular, sector-by-sector look at what has been
put in place to reach energy-related objectives, taking
into account not just existing policies and measures
but also those that are under development. The STEPS
explores where the energy system might go withouta major additional steer from policy makers.
High Emissions/Temperature Scenario (RCP8.5)37
The RCP8.5 scenario combines assumptions abouthigh population and relatively slow income growthwith modest rates of technological change and energy
intensity improvements. With no explicit climate policy,
the high energy demand is met primarily by fossil fuels.
International trade in energy and technology is limited.

There is a slow pace of innovation in non-fossil
technology, with only modest cost and performance
improvements. Technological progress is focused on
advanced fossil technologies, particularly coal, andunconventional oil sources after 2050. GHG emissions
more than double by 2050 due to increased fossil
energy use and growing agricultural production forthe large population.
The Results — Scenario Implications
The results of the resilience analysis are summarized
separately for each scenario in the tables below. Key
implications for industry and Ford are provided alongwith a short final assessment for Ford.

Water Resources— Biodiversity and Ecosystems

Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices72
Overview —Climate Change — Circular Economy and End of Life —Air, Water, and Soil Pollution — Water Resources— Biodiversity and Ecosystems

Climate Change — Scenario / Resilience Analysis— continued
E1 SBM-3

Net Zero Emissions by 2050 Scenario (NZE)
Scenario

Industry Implications• Policy: What-it-takes policies to achieve net zero. CO2 pricing in all regions• Significant carbon neutrality progress achieved as EVs become pervasive
and consumers are motivated to contribute toward climate solutions• Innovation allows for seamless coordination of private and public
transportation• Low cost of oil favorably positions highly efficient internal combustion
engine (ICE) vehicles in developing markets while pressure to sunset
them remains strong in most regions• Requires multiple mobility solutions for urban, suburban, and rural applications• Environment: Low climate change. Severe weather events increase• Social: More local and personal environmental activism• Economy: Global growth 3% per year. Economy is driven by new industries
providing green solutions and technologies• Energy prices: Oil demand drops by 30% by 2030 and prices $42 per barrel• Increased collaboration across sectors and within auto industry on
key challenges• Technology: Speed of scaling up innovation is rapid. Governments support
R&D and collaborate to reduce costs. EV sales robust• The electric grid decarbonizes quickly with supporting policy• Massive competition in green space with small, agile companies entering• Fast-paced shift in skills and jobs

Ford Implications• Rapid migration to EVs in developed countries while less-developed regionsthat struggle to switch to EVs have diverse, low-cost solutions and maintain
ICE options• Need to find alternative solutions for medium- and heavy-duty vehicles in
response to ICE phase-out plans• Fuel cell emphasis and technological advancement needed to retaincommercial truck leadership• Ford Pro solutions become a larger portion of the portfolio and mobility
services expand• Mix of public and private, first-mile and last-mile solutions• Intense competition causes niche focus by smaller players causing Ford
to buy up smaller innovative companies and incorporate them into theCompany’s technology portfolio or increase focus on “major” segments• Occasional disruptions from weather events such as storms, wildfires,or floods affect production at our facilities and must be managed• Cradle-to-grave focus on vehicles enables strong circular economy efforts• Rapidly changing technology requires workforce upskilling and reskilling

Ford Assessment: Technology opportunities and environmental needs align to deliver diverse solution sets addressing climate change during the transition to NZE. Swift action with agile product development processes is required dueto heightened competition from newcomers. Challenge in finding winners globally to achieve scale.

Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices73
Overview —Climate Change — Circular Economy and End of Life —Air, Water, and Soil Pollution — Water Resources— Biodiversity and Ecosystems

Climate Change — Scenario / Resilience Analysis— continued
E1 SBM-3

Stated Policies Scenario (STEPS)
Scenario

Industry Implications• Policy: Assumes only policies already announced• Mobility hampered by congestion, air pollution, and severe weather• The electric grid decarbonizes slowly with limited supporting policy• Environment: High climate change. Significant migration and rebuilding
from frequent natural disasters• Decreased demand for personal vehicles due to environmental impact
and urban congestion. Increased reliance on public transportation• Buy local initiatives/nationalism increase and undermine global brands• Social: Middle class constrained due to pressure on urban areas.
Urbanization is a key driver• Increased supply chain disruptions lead to more complexity to avoid
dependence on single suppliers or regions• Healthcare, safety, and education systems strained by climate events andsocial unrest• Economy: Global economy grows 3% per year but slows due to increasing
rebuilding costs• Increased social pressure on companies and governments to takeclimate action• Cost of living impacts and widening wealth gap• Energy prices: Oil demand rebounds, $82 per barrel

Ford Implications• Technology: Technologies get slowly cheaper. EV sales lower than
expected and primarily in advanced economies• Lower than expected EV demand requires pricing and policy support• Electric vehicles are required but are expensive. Low demand and lackof policy hinder their profitability• Increased emphasis on individual energy independence as electrical grid ages

• Smart mobility does not reach full potential as foreseen; autonomous vehicles
are a niche market• Vehicle solutions must be environmentally friendly (air quality and CO2)and simultaneously rugged enough to handle severe weather• Increased extreme weather events such as storms, wildfires, or floods disrupt
production at our facilities. Production delays and cost increases lower sales
and decrease profits• Electric vehicles can provide a temporary source of electricity during power
outages and extreme weather events• Supply chain redundancy needed to prevent weather-related supply chain
disruptions. Carbon neutrality and electrification commitments are challenged• Circular economy affects key sectors including battery manufacturing• Small vehicles, micro-mobility — such as e-bikes and e-scooters, andincreased car-sharing satisfy the market for environmentally friendly solutions
Ford Assessment: A challenging environment and economy make strategy development complex, but limited policy provides some support for climate-focused actions. Increasing extreme weather events are a clear threat making it easier togain multi-stakeholder support. Product, service, and supply chain diversification is critical to maintain resilience. Ford must accelerate work toward developing meaningful, market-driven policy solutions to address climate change with urgency.

Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices74
Overview —Climate Change — Circular Economy and End of Life —Air, Water, and Soil Pollution — Water Resources— Biodiversity and Ecosystems

Climate Change — Scenario / Resilience Analysis— continued
E1 SBM-3

High Emissions / Temperature Scenario (RCP8.5)
Scenario

Industry Implications• Policy: No climate policy• High cost of living leads to less disposable income and widening wealth gap• Environment: Highest climate change with severe weather impacts.
Poor air quality• Low disposable income leads to decreasing market for personal vehicles.
Growth of public transportation systems using fossil fuels• Social: Low per capita income, little growth. High disparity between lowand high-income countries• Emphasis on greater self-sufficiency of individual countries and regions
promotes the circular economy• Economy: Percent growth but low per capita income increase as population
growth is high. Little convergence between high- and low-income countries.

• Limited international trade in energy and technology; greater reliance on
domestically available resources• Energy prices: Oil demand rebounds, ~$82 per barrel• Technology: Technological progress is modest, focusing on unconventional
fossil energy development and food security• The aging fossil-based electric grid requires continual maintenance and repair
after severe weather events• Mobility severely hampered by congestion, air pollution due to continued useof fossil fuels for transport, and severe weather• Little redundancy in supply chain due to domestic focus; disruptions morecommon• Environmental concerns are locally strong, especially in high- and mediumincome regions; lower-income regions are focused on food security• Global population increase strains capacity of industrial production

Ford Implications• Lack of pricing and policy support minimizes the EV market• Limited EV production. Domestic manufacturing emphasis makes obtaining
battery materials for EVs difficult• Internal combustion engine vehicles (ICEVs) dominate the market in thisfossil fuel world. High cost of fuel increases demand for fuel efficient
vehicles, making hybrid electric vehicles (HEVs) the standard engine type

• Recurring extreme weather events, droughts, and flooding require planningfor relocation of assembly plants to less affected regions• Manufacturing becomes regional with local supply chains. Materials arelimited and costly requiring vehicle design changes• Regional circular economy grows with resource scarcity• Demand grows for commercial vehicles and public transport; personalvehicle sales decline• Without global supply chain redundancy, weather-related disruptions must
be managed. Supplier location vulnerability to physical climate risk is key
factor in supplier selection• Small, rugged vehicles with higher ground clearance are required to handle
severe weather and minimize operation cost

• Without supporting policies, carbon neutrality and electrificationcommitments are delayed/abandoned

Ford Assessment: Most difficult scenario in which to implement climate-based strategies due to societal disinterest. Business model maintains ICEV focus for decades with extremely limited or no EV production. Supply chain is fragile, local,
and subject to disruptions by frequent extreme weather events, requiring careful management. Circular economy is key to secure resources and reduce costs. Resilience requires major changes from current business plan, with emphasis on
smaller commercial vehicle HEV product offerings and locally-sourced raw and recycled materials, but does not achieve climate goals.

Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices75
Overview —Climate Change —Circular Economy and End of Life —Air, Water, and Soil Pollution —Water Resources— Biodiversity and Ecosystems

Climate Change — Scenario / Resilience Analysis— continued
E1 SBM-3

Resilience of Ford’s Strategy
Key Findings
Through our scenario development process, Ford leadersand subject matter experts identify risks, associatedchallenges, and opportunities as we work toward ourcarbon neutrality goal. We have identified the following
themes as critical to success: our EV strategy, public
policy, workforce, customer experience, finance, mobility
and AI, operations, suppliers, and reputation. Below are
examples of how these themes are exposed through thescenario analysis.
In the Net Zero Emissions by 2050 scenario, Ford is well
positioned to respond to the opportunities of our electricvehicle strategy. Risks in this scenario for Ford, andcompanies in most industries, include:• Rapid acceleration of diverse technology solutions that
require workforce upskilling and reskilling• Heightened competition from agile newcomers in the“green space”
Our strategic response includes introducing a newlearning strategy at Ford and investing in job training
and career readiness initiatives, such as our work to train
future employees on advanced batteries at BlueOval SK
Battery Park. We will continue to adapt our reskilling
process going forward to address our changing
vehicle portfolio.
Risks in the Stated Policies Scenario for Ford, andcompanies in most industries, include:• Higher costs for available technologies to reduce GHG
emissions leading to lower consumer acceptance• Engineering and financial resources required to
deploy new technologies, while maintaining existing
technologies across a range of products• Increased production stoppages at Ford or supplierfacilities due to climate-related natural disasters.
A significant disruption to our production schedule andlower volumes of more profitable products could havea substantial adverse effect on our financial condition
In the RCP8.5 high emissions and temperature scenario,
risks to Ford and society include:• Increased supply chain disruptions due to climaterelated severe weather and drought, which iscomplicated further by the shift from international
to regional supply chains• Decreased vehicle sales due to lower demand for
personal vehicles, EVs sales extremely limited
For both the STEPS and RCP8.5 scenarios there is highrisk that Ford, and companies in most industries, cannot
decarbonize the entire value chain to reach our climate
and energy aspirations.
The lack of a comprehensive, market-driven carbon
pricing solution reflects a major shortcoming of the
STEPS and RCP8.5 scenarios. Furthermore, without any
explicit climate policies, the RCP8.5 high emissions andtemperature scenario fails to set climate goals, let alone
meet them. Ford faces significant costs to adapt toclimate change in this scenario, including relocating
facility sites and changing product offerings.
Analysis of the three scenarios indicates that, while
consumer preferences and technology choices arechanging, there is uncertainty associated with the paceof uptake or the achievable market share of newtechnologies, such as EVs and autonomous vehicles.
While the NZE scenario suggests high uptake, thecompetition for market share is increased. In the STEPS
scenario, however, lower-than-expected EV demand or
increased weather events could result in increased costs
and decreased EV sales and revenue. The RCP8.5

scenario shows that without supporting policies, electricvehicle opportunities are extremely limited.
Many factors lead to this uncertainty in EV market
penetration. Urban environment trends are expected
to be a major determinant of consumer vehicle choicealong with policy, infrastructure updates, and realizing
affordable technologies. As a result, we expect carbon
neutrality to be reached in different product segments
and regions at different times. Passenger vehicles will
be carbon neutral before larger commercial vehicles,
and advanced economies with progressive policies will
be carbon neutral before the rest of the world.
In summary, a critical take-away from this future scenario
deep dive is a need for a diverse yet global set ofenvironmentally friendly technology solutions that are
responsive to the changing needs of our consumers.
Ability to Respond
We are committed to building a profitable, enduring EV
business for the long-term. This will help us address thelargest source of our GHG emissions and successfullycompete in a low-carbon economy. Our EV strategy is tobuild the greatest vehicles at the lowest cost and invest
in innovative, software-enabled customer experiencesthat our customers love and differentiate our brand.
Along this journey we anticipate that EV technology
will continue to advance and become more affordable,
while the grid will continue to decarbonize, bolstering
our confidence in achieving GHG reductions.
Our approach of offering a broad choice of lower
emission powertrains also provides us with resilienceduring the transition period to fully carbon neutraltransport. For example, hybrids will be a key productoffering during the transition to EVs, particularly inmarkets where the EV infrastructure is not mature.
We will partner when necessary to address key enablers,
leverage scale, and avoid capital destruction, such as

being the first automaker to open up Tesla’s Supercharger
network to our EV customers. Additionally, Ford Pro is an
integrated partner helping customers decarbonize theirfleets, not just with vehicles but also charging solutions
and productivity software.
Ford’s response to the various scenarios will requiredifferent solutions, but the building blocks are in place.
Our EV foundation will allow us to scale as the market
grows, and we will continue to address key enablers.
Our lower emissions internal combustion engine vehicles,
including traditional hybrids and alternative fuelcompatible vehicles, help decarbonize the businessin the transition or in the high temperature scenario.
Read More
In Products and Services on p.31

Our Sustainable Financing Framework was introduced
in 2021 to support the design, development, andmanufacture of our electric vehicles and create positivesocial and environmental benefits in the transition
to EVs.
The net proceeds from each sustainable financing isbeing used to fund or refinance, in whole or in part, newor existing green or social projects, assets, or activities
of Ford or Ford Credit. $4.21 billion has been allocatedas of February 2024.
The financing will continue to be allocated and invested
in four different areas:• Clean transportation• Clean manufacturing• Making lives better• Community revitalization
Read MoreIn the 2023 Sustainable Financing ReportFundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices76
Overview — Climate Change —Circular Economy and End of Life — Air, Water, and Soil Pollution —Water Resources— Biodiversity and Ecosystems

Circular Economy and End of Life

Salient Human Rights Issues

Using renewable and recycled materials
in our vehicles, enables us to reduce
waste, use fewer natural resources, andimprove vehicle quality and performance.
Circular Economy Policies

Materials

Waste

UN Sustainable Development Goals

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ESRS E5-1, ESRS E2-1

We have set a sustainability aspirational goal to only utilize
recycled or renewable content in our vehicle plastics.

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We have set a goal of using 20% recycled and renewableplastics in new vehicle designs for North America,
Europe, and Turkey starting in 2025. Our target for China
is 10%.
These targets reduce our dependence on virgin raw
material for plastic and promote the sourcing ofadditional renewable content in our plastic components.

As part of our commitment to protecting theenvironment, our We Are Committed to Protecting
Human Rights and the Environment policy calls on us to
use recycled and renewable materials, reduce substancesof concern, and improve recyclability of our products
through material selection and product design.

Our broader aspiration is to utilize only recycled or
renewable content in vehicle plastics. Ford has begun
the process of tracking the recycled and renewable
content in pilot programs and will continue work to
operationalize the process for future programs.

This policy extends beyond Ford’s operations, as we
explicitly require our suppliers and expect partners
and joint ventures to adopt and enforce similar policies
and extend them to their own supply chain.

ESRS E5-2

Our Approach: A Focus on Plastics

Through activities such as transforming recycled plastic
bottles into vehicle parts, we are helping to play a majorrole in improving or reducing the carbon footprint of
auto parts.

ESRS E5-2...

Metrics and Targets

Over 85%38 of vehicle parts and materials are recycled
and reused at their end of life. Understanding that themetallic portions of vehicles are already highly recycled,
we are focused on recycled and renewable content
in plastics.
By increasing the sustainability of plastics in our vehicles’
design, we can make a beneficial impact on theenvironment — and our business.
Waste products generated by other industries comprisemuch of our recycled and renewable content. We use
the ISO 14021 standard to account for this content. When
tracking our status for recycled content, we use the partinventory list associated with the high volume variant
available for each program.

What is a Typical Vehicle

Around 40,000 parts ...
using 1,000 materials ...
and 10,000 chemical
substances ...

Using Recycled Materials for Vehicle Parts
While not every polymer can easily use recycled material,
there is potential for recycling to reduce the carbon
footprint of some of our plastics by 70-90%.

Due to its light weight, recycled plastic is ideal for the
manufacture of underbody shields, engine under-shields,
and front and rear wheel arch liners that can help
improve vehicle aerodynamics. We also use postconsumer nylon and polypropylene carpeting for cylinder
head covers, fans and shrouds, and carbon canisters.

75%

17%

metals (alreadyhighly recycled)

plastics, elastomers,
textiles (area to improve)4%4%

liquids (already recycled
or reused)otherFundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices77
Overview —Climate Change —Circular Economy and End of Life —Air, Water, and Soil Pollution —Water Resources— Biodiversity and Ecosystems

Circular Economy and End of Life
— continued

New Frunk Design Reduces Complexity,
Weight, and Cost
Increasing the sustainability of plastics in vehicle
design can help to make a beneficial impact on theenvironment. The 2023 Mustang Mach-E frunk is aprime example.
The simplified frunk design in the Mustang Mach-E
drastically increased post-consumer recycled content.
Created from recycled packaging, including theapproximate equivalent of 115 post-consumer use
yogurt cups, the new frunk tub goes from six pieces
to one, reduces the weight by over 6.6 pounds, anddrastically cuts the part cost.
The innovative redesign of the frunk insert
garnered a sustainability award from the Societyof Plastics Engineers.

We are also deriving value from waste material,using recycled ocean plastics in the Bronco Sport.
This exemplifies our approach to the circular economy
as we seek to migrate these materials to other vehicles
and applications.
Using Renewable Materials for Vehicle Parts
Renewable, plant-based materials continue to play arole in our sustainability strategy. Ford is a leader in thisspace, having implemented nine plant-based materials
in current and past vehicle production. These robustmaterials enable lighter weight parts that can help
improve fuel economy, sequester carbon, and reduce
global warming impacts. They also require less energy
to manufacture. Our industry-first sustainable materials
include soy foam, wheat straw, rice hulls, tree-based
cellulose, and coffee chaff.
Soy-based foam, launched on the 2008 Mustang, hasbeen used in every Ford North American built vehicle
for seat cushions and backs for more than a decade,totaling over 23 million vehicles. Use of bio-based foams
have reduced greenhouse gas emissions by about 210
million pounds cumulatively, and continues to save an
average of 3.38 million pounds of petroleum annually
since 2014.
Our Advanced Polymer Technologies team continues
to pioneer the development of new sustainable plastic
materials and processes including using waste fromolive production to reinforce plastics, captured carbon
dioxide in foam formulation and low-carbon basalt fibers
for reinforcement.
Additional Strategies and Actions
ESRS E5-2

Converting CO2 to Polyurethane Foam
Ford was awarded a grant by the U.S. Departmentof Energy to conduct research on using CO2 as afeedstock to make more sustainable polyurethane foams.

The $2.5 million grant is one of 30 DOE projects to help
decarbonize the U.S. industrial sector, advance clean
manufacturing and improve America’s economic
competitiveness.
In the first year of the project, Ford and our partners
have successfully developed polyols derived from CO2,that show reduced embodied carbon compared to theirpetroleum-based counterparts as measured throughLife Cycle Assessment (LCA) and initial scalability.
CO2-based polyurethane foams were formulated to meet
manufacturability. The current work focuses on meeting
performance requirements for applications including
seating and noise, vibration, and harshness reduction.
Closing the Loop in Aluminum Recycling
We are the largest automotive aluminum recycler inthe world. Our work to close the loop in aluminum
recycling supports our policy to use recycled materials
and improve the recyclability of our products. Our closed
loop recycling system maximizes aluminum recycling
in our plants and minimizes the need for primary metal.
Working closely with our aluminum sheet suppliers, wehave created unique alloys that enable us to maximize
the reuse of aluminum within our own plants. Not only
does our system recover aluminum scrap during parts
stamping, but it also keeps the various aluminum alloys
separated so they can be recycled back into fresh alloyfor new vehicles. Making recycled aluminum only takes
around 5% of the energy needed to make new aluminum,
according to the Aluminum Association, and minimizes
the need for primary metal.
We currently recycle up to 20 million pounds of aluminum
each month at our Dearborn Stamping, Kentucky Truck
and Buffalo Stamping facilities. This represents
approximately 25% of our aluminum sheet coil purchases.

Remanufacturing Supports Sustainability Goals
Remanufacturing has been an important part of Ford’s
sustainability effort since it was introduced in response
to shortages of steel and iron during World War II. Since
then, Ford has remanufactured powertrain assemblies,
turbos, injectors, steering components, brake components,
electronic modules, starters, and alternators.
Remanufacturing turns a previously used, sold, or wornout part into a like-new or better-than-new condition
which can be warranted for performance level andquality. Remanufacturing saves considerable energy,
uses less raw material compared to a new unit,
substantially reduces CO2 emissions, and helps extend
the life cycle of the vehicle product line.
Reclaimed powertrain material supports Fordsustainability objectives. In 2023, we reclaimed 4,077
metric tons of steel and 3,058 metric tons of aluminumfrom transmission material. We also reclaimed 1,128
metric tons of cast iron, 534 metric tons of steel, and741 metric tons of aluminum from engine material.
Combined, Ford supplied 119,000 remanufactured
engines and transmissions in the U.S.
Battery Recycling
End of life vehicles are a crucial part of our supply chain,
and we are committed to increasing battery recycling.
To further these efforts we support various battery
recycling companies, including with letters of support
for U.S. Department of Energy grants.
We have also begun utilizing collection points to reduce
inefficiencies in shipping one-off, end of life batteries
across the country — this allows us to ship full-truck
loads reducing our environmental footprint.
End of life batteries are sent to recyclers who are
dedicated to recovering the underlying raw materials
with the intent of reintroducing these materials into thebroader battery supply chain.

Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices78
Overview —Climate Change —Circular Economy and End of Life — Air, Water, and Soil Pollution —Water Resources— Biodiversity and Ecosystems

Circular Economy and End of Life
— continued

In Europe, new regulations will require manufacturers
to report on their extended producer responsibility forproper battery recycling.

shall aim to reduce or replace carcinogenic, mutagenic,
reprotoxic or persistent, bio accumulative and toxic
substances in the products they supply to Ford.

Life Cycle Assessment (LCA) Research and Regulations

Expanded efforts will be made, over and above
the RSMS, to reduce certain substances of concern in
non-dimensional commodities used in manufacturing
operations, such as paints and related chemicals,
adhesives and sealers, hydrocarbon lubricants, etc.
In support of this Manufacturing Materials strategy,
which will soon be officially launched, we havedeveloped a targeted list for certain substances ofconcern, including substances of very high concern,for replacement, reduction, or reformulation. We haveengaged selected suppliers of high-volume commodities
and are working with them to review current use of
substances of concern and identify possible alternatives.

We continue to conduct LCA-based studies to evaluate
potential environmental implications of vehicle raw
materials, manufacturing, and use. Topics include
recycled polymers and composites, cradle-to-gate anduse phase impacts of lithium-ion batteries, and benefitsof EV battery circular economy.
In the EU, we are anticipating regulations related to LCAs.
• The EU Battery Regulation requires a Carbon Footprint
Declaration starting in 2025
• The EU CO2 Fleet Regulation requires the European
Commission to set out a common Union methodology
for the full life cycle CO2 emissions by 2025, withvoluntary reporting from 2026 onwards• UN Economic Commission for Europe’s Working Partyon Pollution and Energy, a subsidiary body of theWorld Forum for Harmonization of Vehicle Regulations,
has set up an informal working group on a harmonizedvehicle LCA methodology with adoption of final
recommendations expected by end of 2025
Substances of Concern and Substancesof Very High Concern

Waste Management Policies
ESRS E5-1

We have set the sustainability aspirational goals toeliminate single-use plastics across our global operations
by 2030 and reach true zero waste to landfill across ourglobal operations.
Our We Are Committed to Protecting Human Rights andthe Environment policy calls on us to divert waste fromlandfill to products and reduce single use plastic.
Our Approach to Waste Management

ESRS E2-2, ESRS E2-5

ESRS E5-2

Ford’s Restricted Substances Management Standard(RSMS) and associated Restricted Substances List (RSL)
restricts or excludes certain chemicals from parts,
materials, equipment, packaging, office supplies,
machinery, and/or tooling supplied to or manufactured
by Ford or intended for use in Ford products. The
Standard supplements, but does not supersede, theresponsibility of each supplier to comply with laws andregulations for the receiving Ford locations. Suppliers

Not only does reducing waste help reduce our impact
on the planet, but it also optimizes efficiency in our
resource-intensive industry. By reducing or recycling
generated waste, we can avoid the landfill, reducegreenhouse gas emissions, and generate an additional
supply of valuable resources.
In 2023, we launched the third phase of our global waste
management strategy, which will continue until 2027.
During this time, we will focus on reducing overall waste

generation by 5% and reducing waste disposed, or
removed from the value stream, by 10%. We will continue
to drive waste sent to landfill reductions globally andprogress toward our zero waste to landfill goal.
The third phase builds on the second phase of thestrategy, which focused on minimizing waste generated
from high-volume streams and managing the waste we
generate to avoid landfill disposal.
Our Supplier Code of Conduct requires suppliers
to maintain an ISO 14001-certified environmental
management system. Beyond that, we are also beginning
to receive various waste measurements such as total
hazardous waste from our suppliers.
Actions
To ensure that more of our facilities reach zero waste
to landfill status, we continue to implement a range of
waste reduction initiatives. Ongoing initiatives include
implementing new technologies and programs thatminimize waste and standardizing the tracking andsorting of waste to increase recycling and reuse.
Eliminating Single-use Plastics
We continue initiatives around the world toward ourgoal of eliminating single-use plastics. Global teams
are collaborating to reduce single-use plastics in partpackaging. Other regional efforts include returnablecontainers for take-away food in Cologne, Germany andphasing out single-use plastic utensils in all our facilities
in U.S. and Canada.
Reducing End of Life Impacts
We proactively review non-dimensional materials suchas lubricants and paints within our manufacturing
operations. Going beyond applicable regulations, weare developing a timeline to further reduce substancesof concern in our facilities, including those that are
carcinogenic or environmentally persistent.

Waste Management Metrics and Targets
ESRS E5-3

We have progressed toward targeting absolute
reductions in the waste strategy so that we can moreclearly define our impact to the environment andsurrounding communities.
Our most recent waste strategy targets are to reduce
absolute global waste generated by 5% and to reduce
global waste disposed by 10% based on a 2022 base year.
Tracking our Progress
ESRS E5-5

Ford facilities around the world sent approximately
16,300 metric tons of waste to landfill, 8% less than in
2022. Currently, we have 86 zero waste to landfill (ZWTL)
sites globally. The Sterling Axle Plant and Essex Engine
Plant became the latest sites to achieve ZWTL in 2023.
All Ford manufacturing plants in China operate with zerowaste to landfill. Waste generated in all factories is either
recycled or managed for thermal destruction with orwithout energy recovery instead of being sent to landfills
for final disposal. Our Blue Oval European facilities havealso all achieved zero waste to landfill status, using thesame strategies.
It’s essential that our plants have the resources needed
to collect and manage waste to help them meet our
global waste standard, a minimum set of requirements
for the manufacturing plants to successfully pursue ourwaste-related sustainability targets.

Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices79
Overview —Climate Change —Circular Economy and End of Life —Air, Water, and Soil Pollution —Water Resources— Biodiversity and Ecosystems

Sustainable Manufacturing:

How Ford’s Approach
to Manufacturing
Helps Quality andSustainability
In recent years, Ford has embraced“lean manufacturing,” an approachto production that focuses on
improving quality, maximizing
efficiency, and minimizing waste.
It’s a philosophy that naturallyaligns with our approach tosustainability, including ourefforts to conserve water,
reduce energy use, and recycle
and reuse materials.
By recycling materials we’reminimizing the amount of waste
sent to landfills and reducing
our need for raw materials, which
in turn helps reduce ourenvironmental impact.
The results of lean manufacturing
can be seen at Ford facilities aroundthe world: At Michigan’s Livonia
Transmission Plant, the plastic
straps that are used to hold downtransmissions in shipping are sent
back to the manufacturer to be
remolded and reused.

At the International Distribution
Operations plant in Mexico, we have
optimized water usage to the pointthat zero freshwater is used in the
production process at the Irapuato
Transmission Plant and the
Chihuahua Engine Plant. Freshwater
is only used for human consumption.
The Essex Engine Plant in Ontario,
Canada, recently realized its goalof sending zero waste to landfills,
helping all Ford’s Canadian sites
operate as zero-waste-to-landfill
facilities.

The Cologne Electric Vehicle Center
will be Ford’s first completelycarbon neutral production facility
when it begins producing the allelectric Explorer in 2024.
By adopting lean manufacturing
principles and practices, Ford is
improving efficiency, profitability,
and sustainability. It’s good for ourbusiness and good for the planet.

Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices80
Overview — Climate Change —Circular Economy and End of Life — Air, Water, and Soil Pollution — Water Resources— Biodiversity and Ecosystems

Air, Water, and Soil Pollution. Q~ D

Aspirational Goals

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ESRS E2-1

We have set a sustainability aspirational goal to attain
zero air emissions from our vehicles and facilities.
Our We Are Committed to Protecting Human Rights andthe Environment policy mandates that we work to reduce
emissions. Global emission standards have led to lower
vehicle emissions and improved air quality.
This policy also requires us to follow Ford procedures
to safeguard the environment when discontinuing
operations, decommissioning sites, or disposing of partsand components to protect from potential pollution of
our natural resources, including water and soil.
Our Approach
ESRS E2-2

We believe that clean air is a fundamental human right.

Ford Integrated Sustainability and Financial Report 2024

Water and soil pollution are issues that Ford takes
seriously and have determined them to be material
topics for the first time after updating our materiality
assessment to more closely align with the CSRD
double materiality process. These topics will be
reviewed carefully throughout the 2024 year in orderto report against them in more detail in our 2025
Integrated Report.
Vehicle Emissions
ESRS E2-2

Environment~ ~=Reducing emissions will reduce
air pollution, help protect people’s
health, and avoid the worst impactsof climate change.

Not only will our electric vehicle strategy reducegreenhouse gas (GHG) emissions, it can also help
improve local air quality. Access to EVs can help provide
health, economic, and mobility benefits, especially incommunities that bear a disproportionate burden fromclimate change and air and water pollution.
Internal combustion engine (ICE) vehicles emit air
pollutants, such as hydrocarbons, carbon monoxide,
nitrogen oxides, and particulate matter, which can affectair quality and can potentially impact human health.
In addition, brake particulates and electricity generationfor electric vehicles (EVs) can impact air quality.

An increasing number of countries and states haveannounced requirements for 100% zero-emission
vehicle (ZEV) sales.
We expect that all new vehicle sales in the EU will
be zero-emissions vehicles by 2035, per EU mandates.
Some European countries have regulations in placeor are working on regulations that will advance this date.
In California, the California Air Resources Board willrapidly scale down light-duty passenger car, truck,and SUV emissions starting with the 2026 model year
through 2035. By 2035 all new passenger cars, trucks,
and SUVs sold in California will have zero emissions(with some allowance for plug-in hybrid vehicles).
We support California’s actions to strengthen vehicle
emission standards and expect this landmark standard
to be adopted by other U.S. states.
Tracking our Progress
ESRS E2-4

We are proud to meet or exceed vehicle criteria
emissions standards as they are introduced (see Regional
Vehicle Emissions Standards table). For example, in the
United States for our 7.3L gasoline engine certification,
our previous 2023 model year nitrogen oxides (NOx)standard was 0.08 grams per brake horsepower-hour(g/bhp-hr) and dropped to 0.055 g/bhp-hr in 2023 for2024 model year testing, an improvement of 31%.

Plant Emission Reductions
ESRS E2-2

Ford reduces pollution from our manufacturing facilities
by using best available techniques as required byregulations. This includes re-evaluating technology andupgrading controls as necessary.
However, we go beyond simply meeting regulatory
requirements by developing and tracking of plant-specificvolatile organic compounds (VOC) targets. In order tosupport each Ford plant’s VOC reduction target, we use
a data-driven quality strategy dashboard which tracks
VOC emissions and identifies opportunities for reduction.
As part of best practices and strategic improvements,
plants have follow-ups based on their progress andreview VOC data as a team.
Targets
ESRS E2-3

Ford manufacturing plants around the globe are required
to meet specific air pollutant requirements as part of their
air permit. Beyond air permits, Ford develops annual
plant-specific VOC targets for global manufacturing
plants. The targets are developed based on each plant’s
prior year data. Ford considers changes in abatement,changes in paint usage, the launch of new products, andproduction and line speed when developing these targets.

Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices81
Overview —Climate Change —Circular Economy and End of Life —Air, Water, and Soil Pollution —Water Resources — Biodiversity and Ecosystems

Air, Water, and Soil Pollution— continued

Regional Vehicle Emissions Standards

Already Compliant
or Surpassing

United States

EuropeChina

Other Regions• EPA Tier 3 standards• Euro 6e real driving
emission (RDE)• National stage-6a (China 6a) LDV and HDVemissions standards nationwide• Argentina and Uruguay: Euro 5• Australia: Euro 5• Middle East: Standards based on Euro 2, Euro 3,
Euro 4, Euro 5, and Euro 6• National stage-6b (China 6b) LDV emissions
standards in five cities and provinces• Brazil: L7 PROCONVE L7 + OBDBr3 +RDE Monitoring• New Zealand: Euro 6b; U.S. Tier 3• Cambodia: Euro 4• Peru: Euro 4; U.S. Tier 2• Chile: Euro 6b or U.S. Tier 3 Bin 125• South Africa: Euro 2• Colombia: Euro 6b or U.S. Tier 3 Bin 125 (diesel),Euro 4 (Gasoline)• Taiwan: Euro 6.2; U.S. Tier 2 Bin 5• California’s LEV III
standards• Thailand: Euro 5b• Costa Rica: Euro 4; U.S. Tier 2
Being Phased In• California’s Advanced
Clean Cars II• Euro 7• National stage-6b (China 6b) LDV and HDVemissions standards nationwide• Australia: Euro 6d• Costa Rica: Euro 6.1 or U.S. Tier 3• Brazil: PROCONVE L8 Fleet Average Emissions +OBDBr3 + RDE Compliance• Colombia: Euro 6c or U.S. Tier 3 Bin 70 (diesel)• Cambodia: Euro 5• South Africa: Euro 5• Chile: Euro 6c or U.S. Tier 3 Bin 70• Thailand: Euro 6b• Peru: Euro 6b or U.S. Tier 3 Bin 125

Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices82

Overview —Climate Change —Circular Economy and End of Life —Air, Water, and Soil Pollution —Water Resources —Biodiversity and Ecosystems

Water Resources

Aspirational Goals

Water

Salient Human Rights Issues

Our We Are Committed to Protecting Human Rights andthe Environment policy calls on us to reduce freshwater
usage and support safe and accessible drinking waterin our manufacturing operations and communities.

Ford was one of the first companies
to publicly make water stewardshipa core sustainability priority, andthat commitment has never been
more important.
Water Policies
ESRS E3-1

We have set the sustainability aspirational goals to makezero water withdrawals for manufacturing processes anduse freshwater only for human consumption.
Environment

Our global manufacturing water strategy aims to continue
our position as a leader in making zero water withdrawals
for manufacturing processes in order to support
freshwater availability in local communities. All of ourmanufacturing sites are included in our water strategy.
We consider freshwater to include both surface waterand groundwater. This is aligned with, and extends
beyond, the Global Reporting Initiative definition of
freshwater as surface water.

At a minimum, all our manufacturing sites obtain water
discharge permits and perform some level of processwater treatment prior to discharge. In the absence ofa government-imposed discharge limit, we haveestablished a minimum treatment level for our processwater to meet prior to discharge. Additionally, the latest
iteration of our global manufacturing water strategy calls
on us to improve discharge quality with an emphasis on
direct dischargers.
All our manufacturing sites have emergency responseplans that include both methods to prevent releases, aswell as actions to take in the unlikely event of a releasein order to minimize any environmental impact.

UN Sustainable Development Goals

ll

Water Use at our Facilities

Freshwater

Tap water

Lake waterRiver Water

Groundwater

Reuse/
recycleAlternative
water

Wastewater(from anoffsite location)

Salt Water(oceans and seas)

Ford facility
Rainwater

Waste Water
Treatment
Plant

Fundamentals —Sustainability at Ford —Products and Services —Environment —Social —Governance —Data —

Appendices83

Overview —Climate Change —Circular Economy and End of Life —Air, Water, and Soil Pollution —Water Resources —Biodiversity and Ecosystems

Water Resources— continued

Our Approach
ESRS E3-2

By integrating more water efficient processes andtechnologies in our manufacturing systems we canfurther decrease our water consumption. We strive to
identify alternative water sources at all facilities, but
especially those that are located in water scarce regions.
We are committed to extraction policies and practices that
ensure our operations don’t restrict other users’ access towater. For example, we make efforts to utilize alternative
water sources, like rainwater and wastewater from otherorganizations, for our manufacturing processes.
Material Impacts, Risks, and Opportunities
E3 IRO-1

and Corporate Responsibility requires Ford to provide asafe and healthy work environment for all employees.
Investors are included because they are crucial to Ford’s
economic health since Ford is a publicly traded company.
Ford remains engaged with investors through various
forums and events to communicate our commitment toenvironmental sustainability (water, climate, waste) andto better understand their concerns.
Local communities are included because Our Code of
Human Rights, Basic Working Conditions, and Corporate

Responsibility requires Ford to work constructively
with local communities, including implementation ofsustainable water strategies.

Recognition
Ford has been recognized with an A rating in water
security by the Carbon Disclosure Project (CDP), a
leading global environmental non-profit with thelargest environmental database in the world, in a reporthighlighting current water risks and future water-related
financial opportunities for businesses. The reporthighlights our water saving innovations in our
manufacturing facilities around the world as real-world
business success stories. This was Ford’s ninth year ina row receiving the CDP Water A rating.

Lastly, suppliers are considered a key component ofour business, which is why Ford engages strategicallywith suppliers based on the level of risk determined by
a combination of factors including 1) water use intensity
based on commodities, 2) the geographical footprintof suppliers’ operations and 3) suppliers’ business
relationship with Ford.

Water Strategy Progression

We conduct an annual water-related risk assessment
to ensure our operations and value chain are actively
managing water stewardship and to ensure business
continuity.
To perform the extensive analysis of our direct
operations and value chain risk, we utilize a combinationof tools, water regulatory frameworks, and the status ofecosystems and habitats in order to fully evaluate risk,
identify water-stressed areas, and understand regional
ecosystem limits and demands.
Stakeholders Considered
As we implement our sustainable water strategy,
a variety of stakeholders are taken into account.
Customers are considered because their purchasedecisions significantly impact Ford Motor Company’s
financial health and they advocate that our vehicles
are manufactured sustainably.
Employees are considered because Ford has
acknowledged the human right to water and becamea signatory to the UN CEO Water Mandate in 2014.
Our Code of Human Rights, Basic Working Conditions

Efficiencies

Recycling/
Water Reuse

Alternative
Water Source

Freshwater for
Domestic Use Only

Reduction in
Alternative
Water Source

Elimination of Waterfor Manufacturing
Processes

vEvERSION 1

O Efficiency (external metric)
Recycle/Reuse (track)

Version 2

O Efficiency (external metric)
Metric: Incoming water (per unit)
Tracked: Recycle/reuse (absolute)

Recycle/Reuse (track)G) Alternative Water Source (metric)
Aspirational Goals:- Freshwater for Domestic use- Zero water for Manufacturing

Metric: Incoming freshwater (absolute)
Tracked: Recycle/reuse (absolute)= Aspirational Goal

O Efficiency (external metric)
Version 3

Recycle/Reuse (track)G) Alternative Water Source (metric)
Aspirational Goals:- Freshwater for Domestic use- Zero water for Manufacturing

G - Ecosystem Performance- Water Discharge Quality

Metric: Incoming freshwater (absolute)
Tracked: Recycle/reuse (absolutes)% freshwater (water stressed)
Ecosystem Performance
Water Discharge Quality

Clean Water for All(Positive Impact)

Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices84
Overview —Climate Change —Circular Economy and End of Life —Water Resources— continued

Actions and Resources

Metrics and Targets

ESRS E3-2

ESRS E3-3

Achieving Zero Freshwater for Manufacturing
In 2022, the Irapuato Transmission Plant was thesecond Ford facility to achieve the zero freshwater
for manufacturing goal, joining the Chihuahua Engine
facility. In 2023, our use of alternative water was 9%in the water scarce areas.

The third iteration of our 2025 Global Manufacturing
Water Strategy continues to target a 15% reduction
in absolute freshwater usage from a 2019 base year.

In addition to improving water quality discharges atour sites, we are applying freshwater reduction methods
at our sites that mimic the behavior and performanceof the local ecosystem.
Water Recycling
Our Louisville Assembly Plant was recognized by the EPA
in 2021 for its leadership and commitment to practices
that reduce, eliminate, or prevent pollution at its source,
specifically for a new water recycling initiative. Louisvilleis one of 12 Ford plants utilizing an End-Of-Pipe waterreuse system.
Clean Water for All
We have expanded our water focus to include thequality of water that leaves our site, prioritizing directdischarges to local streams and rivers. In order tosupport this effort, we have added a new aspirational
principle: Clean Water for All. Elements of this principle
include not taking a precious resource, putting waterback cleaner than we received it, and utilizing water
management solutions that are beneficial to both theecosystem and the community.
This new aspiration was the result of a study weconducted to explore how we could provide a positive
impact to the environment, as well as neighboring
communities. The study highlighted the importance of abalanced approach to water management to ensure thatthe appropriate amount of water is stored, evaporated,infiltrated, and released.

We prioritize sites located in water-stressed areas,
especially when seeking alternative sources of water.
These efforts will continue our leadership position inwater conservation worldwide, as well as demonstrate
how we can provide a positive environmental impact
on our surrounding communities.
Ecological thresholds have not been considered or
evaluated. Our targets are not based on legislation.
Tracking Our Performance
ESRS E3-4

In 2023, we reduced our use of our absolute freshwaterby 19.4% from a 2019 base year. While lower production
volumes played a role in that reduction, we still
improved our water use efficiency and made great
progress in implementing water reduction projects thatwill contribute to sustained water savings.
Since 2000, we have achieved a 75.5% reduction in
annual water use, accounting for 199 billion cumulative
gallons of water. Through integrating more water
efficient processes and technologies in our
manufacturing systems to further decrease our water
consumption, our water conservation actions are equal
to providing a year’s worth of water to 1.8 million homes.

19.4%
reduction in annual water usage from 2019base year

75.5%
reduction in annual water usage since 2000,
accounting for 199 billion gallons of water

Air, Water, and Soil Pollution —Water Resources —Biodiversity and Ecosystems

Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices85
Overview — Climate Change — Circular Economy and End of Life — Air, Water, and Soil Pollution — Water Resources— Biodiversity and Ecosystems

Biodiversity and Ecosystems

Salient Human Rights Issues

Environment

UN Sustainable Development Goals
12 RESPONSIBLE CONSUMPTION AND PRODUCTION

Ford Wildlife Foundation and Bronco Wild Fund

Biodiversity plays a crucial role inlimiting climate change. Ecosystems
and the biodiversity they containabsorb around half of greenhousegas emissions, according to the UN.
Yet, climate change is contributing
to biodiversity’s decline as it alters
ecosystems around the globe.

We are committed to developing solutions to preserve
biodiversity and restore ecosystems across our facilities
and the surrounding communities through programs likethe Ford Wildlife Foundation (FWF) and the Bronco Wild
Fund (BWF).
The FWF is making important contributions tobiodiversity, environmental conservation, and awarenessthrough its support of leading conservation organizations
across South Africa and in Mozambique.

Biodiversity at Ford

Ford’s Bronco Wild Fund is dedicated to building alegacy of access, preservation, and stewardship from theground up. Its mission is rooted in an unwavering andsubstantial pledge from Ford to protect natural resources
and the environment.

For the first time, Ford has identified biodiversity andecosystems as a standalone material topic due toincreasing global focus on our impact on ecosystems.
As we work to minimize our impact on the planet,
we can also provide positive benefits to the local
environment and neighboring communities.
A “Positive Performance” methodology measures theperformance of a local ecosystem to establish sciencebased aspirational targets. If we can operate our sites
to meet or exceed our local ecosystem performance,
we consider that to be positive.
Measurements of an ecosystem can include carbon
capture rates, water infiltration volume, biodiversity
support, soil generation, etc.
Biodiversity Preservation at Cologne EV Center
In 2023 Ford opened the Cologne Electric Vehicle (EV)Center, where the production of the European all-electric
Ford Explorer will start in 2024. The technologicalupgrade of the Ford Cologne EV Center in 2023 wasaccompanied by an ecological improvement of
biodiversity and the ecological balance of the existing
factory greenspace. The outdoor areas of many of ourcompany premises, including the Cologne EV Center,
offer potential for protecting biodiversity.

The installed measures in Cologne include new perennial
vegetation, changing ecologically poor grass areas towildflower meadows and insect hotels, as well as bat
and bird habitats.
Ecosystem Preservation in Michigan
We are building the country’s first automaker-backed
lithium iron phosphate battery plant, called BlueOval
Battery Park Michigan.
We have ensured that 245 acres on the southern portionof the site along the banks of the Kalamazoo River are
being placed into a conservation easement. This property
will be preserved for generations to come and protectedagainst future industrial development. The Ford Fund,
Ford’s charitable arm, has provided resources for Calhoun
County to engage with the community to explore how
the public can best access and utilize this space. Current
plans are that Calhoun County will own and manage theconservation easement.

The Bronco Wild Fund is teaming up with like-minded
collaborators to provide grants, scholarships,
contributions, and an extensive dealer network to keep
the great outdoors great. A portion of the profits fromevery Bronco sold goes directly to Bronco Wild Fundcollaborator initiatives.
Since the Bronco Wild Fund’s inception in 2020, Ford has
dedicated more than $6.4 million to the program tosupport the outdoors; an additional $4.7 million has beenmatched or unlocked by Bronco Wild Fund contributions.
In 2023, Ford dedicated more than $2.3 million in supportof 123 outdoor access, preservation, and stewardshipprojects in 40 states and the District of Columbia. Ford’s
investment unlocked over $1.3 million in additional funds.
Supply Chain Biodiversity
We expect our suppliers to preserve biodiversity as well.
Looking ahead, in Europe we are preparing for upcoming
EU regulations on deforestation and forest degradationfree supply chains.

Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices86
Overview — Human Rights — Product Safety and Quality — Human Capital and DEI — Employee Health and Safety — Customer Experience — Community Engagement

SocialIn this section:
87 — Social Overview
88 — Human Rights
99 — Product Safety and Quality
104 — Human Capital Management
and Diversity, Equity, and Inclusion
110 — Employee Health and Safety
113 — Customer Experience andResponsible Marketing
116 — Socioeconomic Contribution
and Community Engagement

Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices87
Overview —Human Rights —Product Safety and Quality — Human Capital and DEI —Employee Health and Safety —Customer Experience — Community Engagement

SocialOverview
Sustainability has always meant much more to us than minimizing
our carbon footprint. As we work toward a climate-resilient future,
we are committed to protecting human rights and advancing diversity,
equity, and inclusion in our workforce — and in the communities
we serve across the world. As we continue our work toward genderand racial equality and protecting the rights of all people, we rely
on frequent assessments and transparent communication to ensure
we remain on the right path.

We Are Focused on Protecting andRespecting Human Rights
We are committed to respecting humanrights within our company, across our value
chain, regions, and suppliers. We ensure thateverything we do — or that others do for us— is produced lawfully and with respect forhuman rights.
We Prioritize Health and Safety
The health, safety, and wellbeing of ouremployees, our customers, and ourcommunities is a top priority for Ford.
Our policies and our products are designed
to advance our safety culture.
We Are Dedicated to Creating a Cultureof inclusion
We treat our workforce fairly, humanely,
and with respect and dignity.

We understand that our differences anduniqueness help make us stronger and moreinnovative. Our culture of inclusion empowers
our people to transform our business.
We Support a Just Transition
We are helping to prepare our workforce andlocal communities for the transition to EVs.
We are committed to providing employeeswith the opportunity to upskill and reskill
with supportive training programs.
We Are Passionate About Partneringwith Communities
The Ford Motor Company Fund and Ford
Community Relations team partners with
community leaders and nonprofits to help
meet the unique needs of under-resourced
and underrepresented communities.

Our Sustainability Aspirations
Human Rights: Source only raw materials
that are responsibly produced
Safety: Work toward a future that is freefrom vehicle crashes and workplace injuries
Diversity, Equity, and Inclusion: Support
a diverse, equitable, and inclusive
workplace where each person is valued

UN Sustainable Development Goals
We are contributing to the following UN
Sustainable Development Goals through actions
outlined in this chapter:

ll

ll

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ll

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Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices88
Overview — Human Rights — Product Safety and Quality — Human Capital and DEI — Employee Health and Safety — Customer Experience — Community Engagement

Human Rights

Aspirational Goals

Human Rights

Salient Human Rights Issues

Environment

Fair work

Forced labor

EV Transition

Health/Safety

Our commitment to respecting humanrights is a company-wide endeavor thatguides our strategy and our actions.

Rights Progress Report under “Previous Sustainability
and Financial Reports” on our sustainability website.

We are committed to respecting human rights across
our company, our supply chain, and the regions inwhich we operate. We respect human rights in all our
activities and seek to address concerns that may arise
on a timely basis.

On our sustainability website

In 2023, we conducted our third formal salient humanrights assessment, which identified and prioritized thefollowing potential high-risk human rights areas within
our operations and along our supply chain. These arelisted in alphabetical order.

We are guided by our We Are Committed to Protecting
Human Rights and the Environment policy. Prohibiting
the use of child labor and forced or compulsory labor
are among its mandates.

Human Rights Policy Updates
We have updated our We Are Committed to Protecting
Human Rights and the Environment policy to formallyreflect our commitment to respecting the United Nations
Declaration on the Rights of Indigenous Peoples.

We aspire to ensure that everything we do — or that others
do for us — is consistent with local law and our own
commitment to human rights per our We Are Committed
to Protecting Human Rights and the Environment policy.
In situations where non-compliance is confirmed, we
provide remedy as quickly as possible. We require our
suppliers and expect our business partners to adopt andenforce similar policies.

We have also updated our previous alignment to the1998 International Labour Organization (ILO) declaration
on Fundamental Principles and Rights at Work to the2022 version. This updated version includes the
Occupational Safety and Health Convention (No. 155)
and Promotional Framework for Occupational Safety
and Health Convention (No. 187).

• Clean, healthy, and sustainable environment• Fair and decent work
Harassment/
Discrimination

Indigenous
Peoples• Forced labor, child labor, and human trafficking

UN Sustainable Development Goals

ll

ll

ll

ll

• Harassment and discriminationll• Health and safety• Impacts of EV transition• Rights of Indigenous Peoples

ll

ll

ll

ll

ll

Using these salient issues as a guide, we continue tostrengthen our policies on issues such as child labor,
forced labor, human trafficking, protecting the rights
of Indigenous People, addressing impacts of vehicle
electrification, ensuring a safe and fair workplace,and enabling efforts to achieve a cleaner planet.
Read More

Read MoreOur Human Rights Policy
ESRS S1-1, ESRS S2-1

We have set a sustainability aspirational goal to source
only raw materials that are responsibly produced.

As mandated by our We Are Committed to Protecting
Human Rights and the Environment policy, we follow all
Ford policies and comply with or exceed all applicablelaws and regulations, including all applicable due
diligence laws. We also strive to meet the spirit of theselaws and regulations. Cost alone does not drive ourbusiness decisions; we consider impacts on human rights
among other factors. We explicitly require our suppliersand expect partners and joint ventures to adopt andenforce similar policies and extend them to their own
supply chain.

In Our Saliency Assessment on p.22

For more information on past salient human rights
assessments and processes, you can view our previously
standalone 2022 Human Rights Report and 2023 Human

As part of our commitment to transparency, our
We Are Committed to Protecting Human Rights and theEnvironment policy is posted on our corporate website
along with our Code of Conduct.

Our Vice President, Chief Sustainability, Environment,
and Safety Officer is responsible for interpreting andimplementing our We Are Committed to Protecting
Human Rights and the Environment policy, managing
risk, and reviewing with, as appropriate, the Vice
President Global Manufacturing and Labor Affairs, Vice
President Global Commodity Purchasing, Chief People
and Employee Experience Officer, and the Chief Policy
Officer and General Counsel.

The policy now also states our adherence to the
Minamata Convention on Mercury, Stockholm Conventionof 23 May 2001 on Persistent Organic Pollutants, and theBasel Convention on the Control of Transboundary
Movements of Hazardous Wastes and their Disposal.
Additional policies related to supporting a living wage,
not engaging in unlawful eviction, and the use of security
forces with proper supervision and due diligence wereadded in 2023.
In alignment with due diligence laws such as the German
Supply Chain Due Diligence Act, we issued the Policy
Statement on Ford’s Human Rights Strategy, Policies andProcesses that further outlines our commitment to ourdue diligence efforts.

Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices89
Overview —Human Rights — Product Safety and Quality — Human Capital and DEI — Employee Health and Safety — Customer Experience — Community Engagement

Human Rights— continued

Human Rights Policy Commitments
We support the UN Sustainable Development Goals andare members of the UN Global Compact and incorporate
their Ten Principles in our operations. We have also
signed the UN CEO Water Mandate and an action pledge
for the UN’s “International Year for the Elimination ofChild Labor.” Aligned with the UN Guiding Principles
on Business and Human Rights, we are committed torespecting these widely accepted international humanrights frameworks and charters:• International Bill of Human Rights (The United Nations
Universal Declaration of Human Rights and its two
Covenants) 1948
• The International Labour Organization (ILO) Declaration
on Fundamental Principles and Rights at Work (2022)• The Organisation for Economic Co-operation andDevelopment (OECD) Guidelines for Multinational
Enterprises Revision 2011
• UN Women’s Empowerment Principles• United Nations Declaration on the Rights of Indigenous
Peoples (UNDRIP)
Our We Are Committed to Protecting Human Rights andthe Environment policy addresses key workplace issues
commonly associated with modern slavery including but
not limited to child labor, forced labor, human trafficking,living wage, Indigenous Peoples’ rights, and freedom of
association and collective bargaining. This policy applies
to all of Ford’s global operations and its subsidiaries.
Our Human Rights Strategy
Ford’s human rights strategy for our business andsuppliers is aligned with the United Nations (UN) Guiding
Principles on Business and Human Rights and focuses on:• Embedding human rights policies into the business• Implementing due diligence processes to identify,
prevent, mitigate, and account for human rights
impacts in our business and our supply chain• Providing remedial actions when needed• Communicating transparently with our stakeholders
about our processes and actions• Engaging constructively with suppliers, local
communities, governments, non-governmentalorganizations, and other stakeholders, including
Indigenous People• Seeking third-party assistance, as appropriate,
to assess compliance with our policy
Due Diligence in Our Own Business
ESRS S1-2

Our We Are Committed to Protecting Human Rights
and the Environment policy commits us to conducting
due diligence and providing grievance mechanisms
and remedy aligned with the UN Guiding Principles
for Business and Human Rights. We assess risk, engage
with various stakeholders, conduct training, andperform audits.
As part of our efforts to improve our due diligenceprocedures and transparency, a cross-functional teamcontinuously monitors how Ford addresses human rights
strategy, assesses risk, prioritizes actions, and complies
with new and upcoming due diligence laws.
When potential issues are identified by stakeholders,
non-governmental organizations (NGOs), media, or
supply chain partners, we take action to investigate
the issue and understand our corporate and supplierinvolvement. We adapt our due diligence approach toeach incident based on the type of inquiry. When a noncompliance occurs, we provide appropriate remedies andbring any violation to an end, including working with
suppliers to implement corrective actions.

Due diligence for our human rights risk
assessments at our facilities•

Conduct Initial SAQ
with Selected Facilities

0
Review Results andValidate Risk Assessment

0
Conduct Due Diligenceon Identified Medium& High Risk Areas

Corporate Human Rights Risk Assessment
In line with our corporate policy, Ford conducts humanrights risk assessments across our global manufacturing
facilities using the Responsible Business Alliance (RBA)
Online Self-Assessment Questionnaire (SAQ).
The RBA Facility SAQs highlight areas of potential humanrights, health and safety, and environment risks at thefacility level by identifying gaps in systems, policies, andpractices. They provide a consistent process to analyze
responses globally and across multiple facilities.
In 2023, 48 assessments were completed covering all
global manufacturing facilities including majority-owned
joint ventures. Updated assessment methodology,
including the addition of inherent geographical andindustry risk factors, resulted in a broader range of risk
scores and highlighted additional areas for improvements
in our facilities.
Corporate Grievance Mechanism
ESRS S1-3•

Audit if
Necessary

Ford employees can report grievances using the
Speakup.ford.com web-based platform or by reporting
concerns to their People Leader, HR, People Matters,or the Office of the General Counsel. An outline of theexternal grievance process is posted on our corporatewebsite.
Read More
In Grievance Mechanisms and Remedies on p.91

Recognition for Human Rights
We are proud of the external recognition we havereceived for our Human Rights and Supply Chain work.
We were recognized as a leader in Human Rights inthe auto industry by the World Benchmarking AllianceCorporate Human Rights Benchmark when the automotive
sector was last assessed in 2022.

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Overview —Human Rights — Product Safety and Quality — Human Capital and DEI — Employee Health and Safety — Customer Experience — Community Engagement

Human Rights— continued

Lead the Charge, which scores the world’s automakers
on their efforts to eliminate emissions, environmental
harms, and human rights violations from their supply
chains, ranked Ford first overall on their Leaderboard.
We also received the highest human rights scores in
the industry for the second year in a row, thanks to ourindustry-leading Responsible Materials Sourcing Policy
and due diligence policies.
Human Rights in Our Supply Chain
ESRS S2-2

With more than 1,600 Tier 1 production suppliers and
4,600 supplier sites providing vehicle parts composedof nearly 1,000 different materials, our supply chain isvast and complex. To support our commitment to usematerials in our vehicles that are safe and sourced
responsibly and protect human rights, it’s importantfor us to understand where the materials come from.
Ford uses our purchasing power to enable responsible
sourcing, including EV battery raw materials, and better
protect impacted communities and the environment.
We utilize a variety of tools, including our Supplier Codeof Conduct, to ensure that our commitment to respecting
human rights everywhere we operate cascades
throughout our supply chain.
We place a heavy focus on Supply Chain Transparency
to give us visibility into our supply chain and, whennecessary, launch an investigation to ensure suppliers
are meeting Ford’s environmental, social, andgovernance (ESG) expectations as outlined in our
Supplier Code of Conduct. We also partner with otherbusinesses across sectors to learn from each other andshare best practices.
We continue to work closely with our suppliers and withthird-party assurers such as the Initiative for Responsible
Mining Assurance (IRMA), Responsible Minerals Initiative(RMI), and Responsible Business Alliance (RBA), to

identify and immediately address human rights issues
in our supply chain.
We offer training resources to help our suppliers build
their capacity to manage supply chain issues, and wemeet with our top suppliers individually to discussspecific sustainability topics on an annual basis.
Our Supplier Code of Conduct
ESRS S2-1

Since 2003, we have set human rights and environmental
expectations and requirements for our suppliers andupdated them annually. In 2021, we established a formal
Supplier Code of Conduct that applies requirements andexpectations related to:• Human rights• The environment• Responsible material sourcing• Responsible and lawful business practices• Third-party sustainability audits
Our Supplier Code of Conduct addresses key human rights
and workplace issues commonly associated with modern
slavery, including but not limited to child labor, forcedlabor, human trafficking, fair and equal wages, andfreedom of association and collective bargaining rights.
Supplier Policy Commitments
Our Supplier Code of Conduct specifically addresses andprohibits trafficking of human beings, child labor, andforced labor. While we explicitly require suppliers tofollow all applicable Ford policies and to comply with orexceed all applicable current and impending laws andregulations, our Supplier Code of Conduct also aligns
with widely accepted international human rights
frameworks and charters. Suppliers are obligated toextend these requirements to their own supply chains.

The Supplier Code of Conduct is aligned with thefollowing international frameworks and charters
and industry guidance:

the environment while enhancing requirements formining and processing facilities.

• International Bill of Human Rights (The United Nations
Universal Declaration of Human Rights and its two
Covenants) 1948

2023 updates to the Supplier Code of Conduct include
bolstering compliance with Ford’s prohibition of the useof child labor in any form by adding age verification for
suppliers to protect against child labor.

• International Labour Organization (ILO) Declaration on
Fundamental Principles and Rights at Work (2022),
including ILO Convention No. 138 on Minimum Age andConvention No. 182 on the Worst Forms of Child Labour

Ford has also added language around support for aliving wage to our Supplier Code of Conduct to include
competitive compensation and benefits that meet or
exceed legal requirements.

• United Nations (UN) Guiding Principles on Businessand Human Rights (2011)

In addition, we have updated our Supplier Code of
Conduct to reflect the expectations we have of our
suppliers to respect the rights of Indigenous Peoples
in accordance with the United Nations Declaration on
the Rights of Indigenous Peoples.

• Organisation for Economic Co-operation andDevelopment (OECD) Guidelines for Multinational
Enterprises (2011 Edition)• OECD Guidance for Responsible Supply Chains ofMinerals from Conflict Affected and High-Risk Areas(2016 Edition)• UN Global Compact• UN Sustainable Development Goals• UN CEO Water Mandate• UN Women’s Empowerment Principles• UN Declaration on the Rights of Indigenous Peoples
Ford also engages in the RBA and the Automotive
Industry Action Group Smelter Engagement Teams toencourage smelters/refiners to become compliant via
conflict-free standard third-party audits.
Updates to Supplier Code of Conduct
In 2023, we further strengthened our Supplier Codeof Conduct to reflect changing regulations andemerging issues and help protect workers, children,communities, the rights of Indigenous Peoples, andWhen securing raw material, we require our suppliers
to pursue and obtain Free, Prior, and Informed Consent
of indigenous communities prior to projects or activities
that may affect their lands, resources, and rights.
2023 updates also add requirements for suppliers
shipping to Europe to achieve carbon neutrality for
Scope 1 and 2 emissions by 2035, ensuring measured
progress in meeting Ford’s ESG commitments.
The Supplier Code of Conduct now also states ouradherence to the Minamata Convention on Mercury,
Stockholm Convention of 23 May 2001 on Persistent
Organic Pollutants, and the Basel Convention on theControl of Transboundary Movements of Hazardous
Wastes and their Disposal.
To ensure responsible sourcing of critical raw minerals,
Ford requires suppliers to purchase from materials
processors that are certified through a third-party
responsible sourcing standard such as the Responsible
Minerals Initiative’s (RMI) Responsible Minerals Assurance
Process (RMAP). Raw material suppliers are required toFundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices91
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Human Rights— continued

source from mines seeking certification via a mining
assurance standard, such as the Standard for
Responsible Mining from the Initiative for Responsible
Mining Assurance (IRMA) or an agreed upon third-party
certified equivalent. These certifications are alignedwith OECD Supply Chain due diligence requirements.
In addition, suppliers must disclose sub-tier and raw
material supply chain actors and locations that provide
materials used in products supplied to Ford.

Sourcing for Sustainability

Ford will regularly update the Supplier Code of Conduct toreflect changes in regulations and stakeholder expectations.

• Carbon Neutrality Target — provide a target that isscience-based and meets either Ford’s European 2035
or global 2050 carbon neutrality goal

Our Responsible Materials Sourcing Policy
Our Responsible Materials Sourcing Policy covers conflictminerals, other minerals of concern, and environment,social and governance (ESG) risks in material supply
chains, as well as mineral due diligence applicable to the
supply chain. This policy was updated to align with theupdates made to our Supplier Code of Conduct, including
to reflect our commitment to the United Nations
Declaration on the Rights of Indigenous Peoples andensure Free, Prior, and Informed Consent when securing
raw materials
Global Framework Agreements
Our Supplier Code of Conduct states our commitment
to recognize and respect employees’ rights to freedomof association and collective bargaining. We require our
suppliers to:• Work with recognized employee representatives
to promote the interests of employees• Not discriminate or retaliate against any employees,
including those participating in a trade union• Provide opportunities for employees and external
stakeholders concerns to be heard, even where there
is no representation by unions

ESRS S2-4

We launched the integration of sustainability metrics
into supplier sourcing decisions in 2022. The first
metric launched, the Sustainability Self-Assessment
Questionnaire Rating, requests that suppliers complete
the Drive Sustainability Self-Assessment Questionnaire(SAQ) and share responses with Ford. In addition to the
SAQ Rating, the following metrics launched in 2023:• Sustainability Score — based on supplier compliancewith sustainability reporting requirements
If a supplier has an unacceptable sustainability finding,the decision to source must be reviewed at the Global
Commodity Director level and a corrective action plan
must be in place.
Drive Sustainability SAQ
Using the industry standard Drive Sustainability SAQ,
we analyze our suppliers’ policies to ensure they alignwith ours. Armed with this information, our sourcing
decisions now include results from the SAQ andsuppliers’ willingness to work with us on compliancethrough our sourcing process.
In 2023, we continued to focus on growing our supplier
SAQ completions and policy alignment with Ford’s
Supplier Code of Conduct across our global supply base.
We migrated from SAQ 4.0 to SAQ 5.0 in 2023, moving
to a more comprehensive SAQ.
Supply Chain Engagement
ESRS S2-2

Our efforts to ensure the protection of human rights
includes gaining input and perspective from supply chain
workers. Supplier engagement typically happens post-sourcing, after a grievance arises through our grievancemechanisms or in response to media reports or requests.
Third-party audits resulting in non-conformance can also
trigger engagement. In 2023, we piloted conducting
supply chain audits prior to initial sourcing.
Grievance Mechanisms and Remedies
ESRS S2-3

Per our Supplier Code of Conduct we require our
suppliers to:• Provide an operational-level grievance mechanism
accessible to all employees, suppliers, and the public• Transparently inform stakeholders on their grievancemechanism, including how to access and use• To bring the violation or adverse impact to an end;
provide appropriate remedies when non-complianceoccurs• Not retaliate against anyone who makes a good faithreport of a violation of policy or law• Report suspected wrongdoing and concerns —including concerns about product safety — to Ford at
SpeakUp@ford.com

is open and accessible for all stakeholders along Ford’s
supply chain. As noted earlier, an outline of the externalgrievance process is posted on our corporate website.
Corrective action process and closure audits ensure
remedy in alignment with third-party guidance fromorganizations such as RBA, RCS, and others.
The SAQs request that suppliers have an effective
grievance mechanism in place that seeks active feedback
after the grievance process is closed and remedied.
Worker Voice App
Supply chain workers can use the Responsible Business
Alliance (RBA) Worker Voice Platform to provide feedback,share grievances, and develop skills. The app’s grievancemechanism has been posted on our corporate website toincrease community members’ awareness of and accessto this tool.
Ford was one of the first RBA member companies tolaunch the new RBA Worker Voice Platform to our
suppliers. We also leverage the RBA’s Worker Voicegrievance mechanism to identify and work together
with other RBA members to ensure suppliers meet ourrequirements for human rights and environment issues.

Ford may ask for confirmation of compliance with therequirements of the Supplier Code of Conduct at any
point in its relationship with a supplier, including
before business is awarded. Any corrective action plans
required to demonstrate or rectify non-conformanceto the Supplier Code of Conduct will be according toa mutually agreed timeline and at no cost to Ford.

The Worker Voice app is available to all our direct
suppliers free of charge, and we actively encourage all
suppliers to participate in the platform. We have also
invited suppliers to training sessions covering theimportance of grievance mechanisms.

Ford will not tolerate any retaliation against its suppliers
for bona fide reports of unethical or unlawful conduct
by our employees or representatives. Suppliers may alsoutilize and transparently inform stakeholders of humanrights and environment-related issues through Ford’sExternal Grievances system. This grievance mechanism• More structured process flow

We have updated our external grievance mechanism
document information. The updates include:• Clearer explanation of process steps• Icon based instruction letter• Additional languages

Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices92
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Human Rights— continued

This document also outlines how issues are raised
and monitored, and describes the opportunity forcomplainants to raise their hands if they experience
any negative impact based on their grievance submitted.
Any retaliation resulting from a submitted complaint canbe reported through our grievance mechanism and will
be coordinated accordingly by a third party (RBA).
Supply Chain Due Diligence
ESRS S2-2

Ford works to identify and address potential humanrights violations and environmental risks within ourbusiness and supply chain.
The enactment of global legislation, including theGerman Supply Chain Due Diligence Act and other due
diligence legislation, have further enhanced our due
diligence efforts. Our efforts, including assessing risk,
supply chain mapping, third-party validation of supplier
policies, and supplier audits, are critical to ensure ourcompliance. We are also considering environmental risks
that may lead to human rights violations.

Read MoreIn our Policy Statement on Ford’s Human Rights Strategy,
Policies and Processes

Supplier Risk Assessment Updates
We have updated our annual supply chain risk
assessment to identify risks, take appropriate measures
to minimize them, and continue alignment withlegislative requirements. As we update our risk
assessments for our supply chain, we also update
the process for addressing and managing those risks.
As new issues arise, we will identify whether there are
any gaps in our processes and, if so, work to close
them immediately.

Enabled by the requirements of Germany’s Supply
Chain Due Diligence Act, we have strengthened our due
diligence processes to identify, prevent, and mitigate
risk at our suppliers.
Supplier Assessment Process
We are developing a risk assessment process to identify
and drive action on highest risk suppliers first. We first
perform an abstract analysis based on country risk,
industry risk, and dollars spent with each supplier site.
We also evaluate suppliers’ alignment with Ford’s
Supplier Code of Conduct utilizing the Drive Sustainability
Self-Assessment Questionnaire (SAQ). Once the SAQs
are received, we conduct a concrete risk analysis todetermine which suppliers will require an audit basedon severity and likelihood. Third-party audits are thenconducted on high-risk Tier 1 suppliers and EV battery
material sub-tier suppliers.
We identify material impacts on supply chain workers
through third-party audits, grievance mechanisms, or via
escalation to the buyers for the supplier. Our corrective
action process (CAP) monitors compliance and prevents
future risks. Closure audits take place after the corrective
audits are developed. Along with resolved grievances,
they measure the effectiveness of these actions.
Sustainability Responsibility Audits
We regularly conduct sustainability responsibility auditsof at-risk Tier 1 supplier sites. We use the Responsible
Business Alliance (RBA) Validated Assessment Program(VAP) as well as the Responsible Supply Chain Initiative(RSCI) Assessment. These audits evaluate suppliercompliance with both local law and Ford’s human rights
expectations as communicated in our Supplier Codeof Conduct.

Audit Program

Ford Supply Chain Application

PurposeType of Audit

Drive Sustainability Supplier
Assessment Questionnaire(SAQ)

All suppliers

Evaluate suppliers’ policy
coverage of environmental, social,and governance topics

Desktop

Responsible Business
Alliance Validated
Assessment Program(RBA VAP)

High-risk Tier 1 suppliers

Evaluate suppliers’ labor, ethics,
health and safety, environmental,
and management systems
practices

On-siteResponsible Business
Alliance Specialty Validated
Assessment Program(RBA SVAP)

Tier 1 suppliers withalleged labor issues

Evaluate specific list of allegations
that have been made against a
specific facility with high risk oflabor issues

On-siteResponsible Supply Chain
Initiative (RSCI)High-risk Tier 1 automotive
suppliers

Evaluate automotive suppliers
sustainability practices on social
compliance, occupational safety,
and environmental protection

On-siteResponsible Minerals
Assurance Process (RMAP)

Raw material processors

Evaluate processors’ companylevel management processes forresponsible mineral procurementaligned with Organisation for
Economic Co-operation andDevelopment (OECD) Mineral Due
Diligence Guidance. Leads to
responsible minerals certification

On-siteResponsible Minerals
Assurance Process(RMAP) + ESG

Raw material processors

RMAP audit plus evaluate
processors’ broader ESG
management systems

On-siteRCS Global

EV battery raw material
suppliers

Evaluate supplier alignment with
OECD Mineral Due Diligence
Guidance

On-siteInitiative for Responsible
Mining Assurance (IRMA)

EV battery raw material
suppliers

Evaluate mining companies’
environmental, social, andgovernance performance andmanagement systems. Leads to
ESG certification

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Human Rights— continued

Ford is a founding member of the Responsible Supply
Chain Initiative (RSCI) launched by the German
Automotive Industry Association VDA (Verband derAutomobilindustrie). The objective of the RSCI is todevelop a standardized assessment for evaluating thesustainability of companies in automotive supply chains,
including measures like working conditions, occupationalsafety, and environmental protection. In addition, it hasdeveloped an industry standard audit which is alignedwith the German Supply Chain Due Diligence Act
requirements as well as upcoming legislation such as
the EU Directive on corporate sustainability due diligence.
We piloted the RSCI audit in 2022 and expanded our use
with automotive suppliers in 2023.
Together, the RBA Validated Assessment Program and
RSCI audit represent a collaborative approach to auditingthat reduces the burden on suppliers from multiple
requests for sustainability audits. Third-party
sustainability audits let suppliers know whether theymeet their contractual obligations to Ford and our
expectations while highlighting areas for improvement.
Both the RBA VAP and RSCI assessments are conducted
through independent third-party audit firms that are
accredited by the RBA. Audits include worker interviews
and can be either announced or unannounced. Audits
can also include private in-person interviews with
employees at the site, as required by the Ford Supplier
Code of Conduct.
Audit results are used to identify and prioritize needed
improvements at the facility level. Each supplier who has anegative finding through the audit is expected to develop a
Corrective Action Plan detailing causes and provide planned
remediation actions to address identified areas of concern
and take measures to correct non-conformances. For more
serious priority non-conformances, we review and monitor
immediate containment plans and longer-term Corrective
Action Plans. Closure audits are scheduled to assess theresults of Corrective Action Plans, following a timeline
based on the priority of non-conformances reported.
In 2023, we conducted a total of 46 initial sustainability
responsibility audits of our high-risk Tier 1 suppliers
using RBA’s Validated Assessment Program (VAP) andusing RSCI’s protocol. We also conducted 35 RBA and
RSCI closure audits of our suppliers.
Remediation of Audit Findings
ESRS S2-3

We rely on cross-industry standard approaches and thirdparty corrective actions to respond to actual or potential
negative impacts on supply chain workers. Third-party
corrective actions and certifications from RBA and RSCI
are based on international standards and implemented
in collaboration with the non-compliant supplier. We also
leverage training developed with industry partners
through the Automotive Industry Action Group, Drive
Sustainability, RMI, and RBA.
We encourage our suppliers to use third-party ESG
certifications. Corrective action plans and sourcing holds
enforce remedial actions taken by suppliers and mitigate
risk in our supply chain.
Suppliers work with region leads based on the results ofan SAQ or an RBA Validated Audit. Corrective action plans
are put into place to remediate issues and mitigate any
gaps between supplier policy and Ford’s Supplier Codeof Conduct. After the corrective action is complete, aclosure audit ensures that the corrective actions havebeen effective.
When specific risks are identified in the supply chain,processes are in place to identify the suppliers andassign them training.

Supply Chain Sustainability Training
ESRS S2-2, ESRS S2-4

We invite suppliers located in countries and regions
where there may be elevated risk to attend training
to increase awareness of Ford’s requirements and legal
obligations, including those related to forced laborand child labor. We reached over 800 external suppliers
to provide training and education in 2023.
Our Ford supply chain teams are the first line ofinvestigation into our suppliers. To increase theirunderstanding of sustainability issues, we launchedtraining modules in 2022 directed toward all of Ford’s
global supply chain employees.
In 2023, 400 global supply chain staff received live
online training on our Supply Chain Sustainability
programs. We continue to reach our global supply chain
teams and provide education in commodity team training
sessions throughout the year.
Responsible Sourcing of Raw Materials
ESRS S2-4

Ford uses our purchasing power to not only fuel ourbusiness needs but also protect communities and theenvironment on which they depend. Our goal is tounderstand the origins of our raw materials and ensure
they are sourced responsibly, upholding our commitment
to human rights, compliance with international
standards, and minimizing environmental andcommunity impact.
It is imperative that we have sufficient raw materials toachieve our goals for electric vehicles. To do so, we areworking to identify and negotiate with raw material
suppliers to secure materials that meet our ESG
requirements. We have implemented processes andstructural changes to enable fast action.

We are working diligently to ensure we are ethicallyand responsibly sourcing and tracing the supply
chains and the raw materials that move through them.
We are making sourcing decisions that align with oursustainability standards and corporate sustainability
commitments.
Mineral Due Diligence
ESRS S2-2

Since 2013, in compliance with the U.S. Dodd Frank Act,section 1502, we have filed an annual Conflict Minerals
Disclosure report with the U.S. Securities and Exchange
Commission (SEC). The report describes our due diligenceprocess, as defined by the OECD Due Diligence Guidance
to ensure suppliers who provide us with components
containing tin, tungsten, tantalum, and gold (3TG)
understand the origins of such minerals, source them
responsibly, and not knowingly provide parts containing
minerals that contribute to conflict. Suppliers are
required to use smelters and refiners that have beenvalidated as conforming to an independent third-party
responsible mineral sourcing validation program.
We continue to enhance our Responsible Materials
Sourcing program by expanding the scope of our due
diligence to include additional industry-relevantmaterials and mineral provenance from Conflict Affected
and High Risk Areas beyond the Democratic Republic of
the Congo and adjoining countries. Ford has conducted
a formal due diligence process39 on cobalt since 2018;
mica due diligence since 2019, which was formalized in
2020; and launched formal due diligence on lithium andnickel in 2022.
We use data collected through Responsible Minerals
Initiative (RMI) reporting templates to engage processors
to undergo RMI’s Responsible Material Assurance Process(RMAP) and their new ESG assessment.

Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices94
Overview —Human Rights — Product Safety and Quality —Human Capital and DEI —Employee Health and Safety —Customer Experience — Community Engagement

Responsible Supply Chain:

How Ford is Driving
Sustainability Practices
for Batteries
Whether it’s building our firstcarbon neutral factory, saving
billions of gallons of fresh water,or using unexpected materials
like recycled denim and ricehusks in our trucks, we are driven
to improve our sustainability
over time.

120

But what about all the things in ourvehicles that others make for us?

Years of Ford’s commitment
to a responsible andsustainable supply chain

Today’s automobiles are incredibly
complex, and all of our vehicles
contain parts and materials sourced
from vendors all over the world.
So how can we be sure that ourvehicles truly live up to our own
standards?
That’s where supply chain mapping
and auditing comes in.
Ford’s commitment to a responsible
and sustainable supply chain isn’t
new — in fact, it’s been a part of thebusiness for more than 120 years.
EV components include minerals
with inherent risk due to theextraction processes and country
locations — and often are regulateddifferently from country to country.

We use supply chain mapping tounderstand where materials in ourvehicles comes from, and how
they’re sourced and produced.

responsible sourcing capacity anddrives continual improvements intransparency and responsibility
in our raw material supply chains.

Our goal is to ensure that our raw
materials are extracted in asustainable way, and that the people
doing the work are treated fairly.
This is no small task.

Tracing our supply chain can bea difficult maze to navigate, but
it’s how we can be sure that our
suppliers are living up to thestandards we set for ourselves.
If a supplier falls short, we workwith them to remedy their practices.
If the supplier continues to notmeet our responsible sourcing
standards, we have the right to finda new supplier who operates in amore sustainable and equitable way.

Since 2021, we have been mapping
and auditing our EV battery supply
chains with RCS Global Group to
understand the sources of thecobalt, nickel, lithium, graphite,and electrolytes used in our EVs.
This program strengthens our

The benefits of our supply chain
mapping extend beyond Ford.
As an industry leader, our bestpractices influence positive change
across the automotive category.
Likewise, we seek to learn from thework that other companies are doing.
There’s plenty of room on the roadto better. We welcome anyone whochooses to travel it with us.

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Human Rights— continued

Initiative for Responsible Mining Assurance
ESRS S2-4

We are proud to be the first U.S. automaker to join theInitiative for Responsible Mining Assurance (IRMA), whichworks to advance responsible mining practices throughthird-party verification and community engagement.
IRMA ensures a high level of community engagement,
including utilizing Free, Prior, and Informed Consent
where mines impact Indigenous Peoples’ land, resources,
and way of life. In order to claim an IRMA Achievement
Level, a mine site must meet 40 critical requirements
and have corrective action plans to indicate how they
will fully meet the requirements within a specific time
period. These critical requirements relate to the principleareas of business integrity, planning and managing
for positive legacies, social responsibility, andenvironmental responsibility.
We are also encouraging use of the IRMA self-assessment
tool for mining companies to proactively understandgaps to the IRMA standard. The tool also provides
guidance for implementation. Mining companies canshare the self-assessment results so key stakeholders
like Ford can better understand risks and areas of
improvement. The IRMA self-assessment can also serveas an important tool to discuss best practices on
responsible mining. Mining companies are also
encouraged to provide feedback to IRMA to help improveengagement and adoption of the mining standard.
Better Mining
ESRS S2-4

Ford supports Better Mining, an on-the-ground program
to proactively identify risks and improve conditions innine artisanal and small-scale (ASM) cobalt mine sites
in the Democratic Republic of the Congo (DRC).
This program contributes to building the capacity of legal
ASM cooperatives and sector, supporting state services tohelp achieve responsible practices in the sector and meetdue diligence requirements. Capacity building will also
help mining communities meaningfully participate inglobal supply chains.
In 2023, this effort led to tangible risk management
improvements, including the establishment of anaccessible grievance mechanism for the ASM sites
being monitored, the prevention of incidents of childlabor and work by individuals without adequate personal
protective equipment, as well as the improvement ofwork and safety conditions on mine sites.
Battery Mapping

Our collaboration with RCS Global is strengthening our
responsible sourcing capacity and driving continual
improvements in transparency and responsibility in our
raw material supply chains. We also provide our supplierswith the tools and training to support their continual
improvement. Suppliers who do not meet Ford standards
are required to demonstrate improvement under aCorrective Action Plan that is closely monitored by Ford.
Mapping Ford Battery Supply Chains to the Mine Site
SupplierType

Number of
Identified
Suppliers

Battery5

China, Poland, Korea, USA

Cathode5

China, Korea

Electrolyte

1

China

Manufacturer

9

China

Traders

41

China, Korea, Luxembourg,
Netherlands, Singapore,
Switzerland, United ArabEmirates

Refiner

34

Chile, China, DRC, Finland,
Korea, Sweden

Treatment
Unit

14

Australia, Chile, DRC,
Finland, Indonesia, Russia,
TurkeyLarge Scale
Mine (LSM)

18

ESRS S2-4

In 2021, we initiated supply chain mapping and auditing
with RCS Global Group to deliver a multi-commodity
responsible sourcing audit program to understand thesources of the cobalt, nickel, and lithium used in our EVs.
RCS Global Group, a recognized leader in data-driven ESG
performance and auditing, conducts independent audits
using OECD Due Diligence Management Systems down
to the mine site.
Since then, the scope of this project has expanded toinclude plug-in hybrid electric (PHEV) supply chains,graphite and electrolyte battery material audits. In 2023,
we piloted conducting supply chain audits prior to initialsourcing. To date, the project has conducted 43 supplieraudits along five select battery supply chains at all tiers
through to the mine site. These initial audits have led
to the identification and mapping of 151 suppliers andidentified mine sites in Australia, Chile, China, theDemocratic Republic of the Congo, Finland, Indonesia,
Russia, and Turkey. No critical risks, including child labor,
were identified during the audits.
In early 2023, the Supply Chain Sustainability teamunderwent a responsible sourcing audit of our nickel,
lithium, and cobalt OECD due diligence management
systems and will continue to work to close gaps identified.

Country of Operation

Australia, Chile, China,
DRC, Finland, Indonesia,
Russia, Turkey

Integrated TU
and LSM

13

Australia, Chile, DRC,
TurkeyOther40

11

China

Total

151

Addressing Child Labor Through Economic
Opportunities for WomenFord is addressing one of the root causes of childlabor through a program that provides economic
opportunities for women in the Democratic Republicof the Congo (DRC). The Ford Fund is working with
the Oil and Mines Governance Center (OMGC), to
implement a program that aims to break down
barriers that prevent women in the DRC fromequitably accessing opportunities that cobalt demand
provides. The project’s goal is to improve the working
conditions of these women, increase their incomes,
support the stability of their households, and reduce
the presence of children in mining.
Launched in 2021, the project is continuing toprogress by providing equipment, safety training,access to banking services, and additional financial
education for members of co-ops and other women.
The OMGC exceeded their training goal for 2023 bytraining and empowering 210 women to operate incompliance with OECD and CGE (Entreprise Générale
de Cobalt) standards regarding labor, corruption,and environmental protection. Additionally, more than
100 women received financial training, and 50 women
were assisted in opening banking facilities.
With the support of Ford Fund and OMGC, thewomen’s cooperatives also made significant progressin 2023 to legitimize their operations and secure theirlong-term rights to mine in this region.
Fund has extended our support into 2024. With thehelp of OMGC, women working in the Kapata, Tshipuku,
and Biwaya artisanal cobalt sites will continue tobenefit from training in entrepreneurship, financial
literacy, and new regulations for artisanal and smallscale mining.

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Human Rights— continued

Supply Chain Transparency
Supply chain transparency and human rights protection
go hand in hand. By improving our visibility into our
supply chain, we are enabling better business practices
and supply chain resiliency, starting from raw materials
and their responsible sourcing. Not only does this help
us identify and address human rights risks, it also
positions us to comply with due diligence legislation.
When potential supplier issues are identified anywherein our supply chain, we initiate an investigation todetermine whether the supplier is in the supply chain
providing parts to Ford. If confirmed, we then work with
our Tier 1 supplier to cascade our requirements andconfirm compliance with our Supplier Code of Conduct.
We are currently developing internal systems to conduct
these investigations proactively with suppliers in ourhighest risk categories.
To align with forced labor and due diligence legislation,
we have updated our Supplier Code of Conduct andcontractual obligations to require suppliers to share
sub-tier supply chain information upon request. We have
utilized these updates to conduct supply chain audits for
EV batteries, Value Stream Mapping, and traceability data.
A new online tool allows suppliers to input their value
stream mapping data and post documentation of evidence.
Battery Passport
Upon the passing of the EU Battery Regulation in 2023,
Ford began developing a strategy to comply with the
new requirements for our Battery Electric and Hybrid
vehicles. As part of this process, we consulted crossdepartmental and external stakeholders, identified andvetted IT solution vendors, and organized a task force
to ensure our company is prepared for the upcoming
reporting requirements for carbon footprint, durability
and state of health, due diligence, recycling, andelectronic exchange system.

CATENA-X Leverages Data to Increase Supply
Chain Transparency
Our involvement in the Catena-X Automotive Network
continues to evolve. Developed to support compliancewith the EU Battery Regulation, this initiative will
increase the transparency of our supply chain, enabling
us to improve sustainability and create efficiencies acrossthe automotive supply chain through continuous dataexchange between partners. Our involvement with
Catena-X will help the company improve sustainability,
ensure human rights standards are followed, and makesupply chains even more transparent.
In 2023, we joined the Cofinity-X Beta Phase project.
Cofinity-X is enabling the largest collaborative and open
data network of partners in the automotive ecosystemfor value creation and sustainability across our supply
chain while striving to be compliant with Catena-X.

As a member of the Responsible Business Alliance (RBA),
we engage in cross-industry dialogue and standard
setting on issues related to human rights in ouroperations and supply chain and responsible materials
sourcing. In addition to being the first OEM to join the
RBA in 2016, Ford has maintained membershipparticipation as members of the RBA Board of Directors,
including chair from 2020-2023.
Our membership in the Initiative for Responsible
Mining Assurance (IRMA) and promoting the use ofcomprehensive, third-party assessments of mining
practices helps us achieve our responsible sourcing
goals. When we became the first U.S. automaker tojoin IRMA in 2021, we strengthened our human rights
aspiration to responsibly source all raw materials usedwithin vehicles globally.

Adhering to Catena-X principles, Cofinity-X operates anopen dataspace of distributed, sovereign data sources.
This dataspace creates a trusted environment for all its
participants to enable the development and deploymentof value-generating and digital use cases, from and forits participants across the automotive supply chain.

Direct Sourcing of EV Battery Raw Materials
As we transition to electric vehicles, we are building
an EV supply chain that upholds our ESG commitments,
in alignment with our We Are Committed to Protecting
Human Rights and the Environment policy and ourSupplier Code of Conduct.
We recognize that some of the EV components include
minerals with inherent risk due to extraction processes
and country locations. Transparency and traceability are
the keys to a more sustainable and accountable mineral
supply chain. As we work to discover and audit ourcurrent supply chains, we are preparing for our future
along the entire EV battery supply chains (see graphic)
to obtain transparency and strong commitments tosustainability issues, throughout the sourcing process.

Battery Cell/Pack
Production

Raw Material
Processing

Through Cofinity-X, we have identified the application
partner and have identified five partners for a Product
Carbon Footprint (PCF) study. These actions act as thefoundational steps that will launch our ability to collectdata within the implemented technical environment
along our supply chain up to Tier-N.
Supply Chain Partnerships
Mounting requirements and transparency around supply
chain are providing opportunities to work across industries
to increase supply chain transparency and support humanrights. We partner with other businesses, organizations,and coalitions that have the same standards andcommitments to a sustainable future as we do.

MiningCell Component
Production

EV Production

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Human Rights— continued

Many global EV battery material suppliers are locatedin high-risk countries and countries with developing
economies that could include vulnerable populations.
Our focus on human rights and the environment gives
us the opportunity to raise the standards in thecommunities in which our suppliers operate and ensure
our purchasing power can create a positive impact
throughout the battery supply chain.
We are working with directly contracted suppliers
towards diversifying our supply chain. This will allow
us to have a stronger impact as we secure minerals for
our EVs more directly and gain transparency into our
EV battery raw material supply chains. Working directlywith suppliers heightens our ability to have a positive
contribution on impacted mining communities. Contracts
securing raw material will require suppliers to engage
with communities, including respecting Indigenous
Peoples’ rights, conducting due diligence, and monitoring
during all phases of the sourcing process.
We are working with suppliers to implement ESG
management systems to strengthen performance andassess for risks that are monitored and remedied asnecessary in our partnerships, investments, and the
supply chain.
We are also working to align suppliers’ ESG performance,
programs, and practices with international third-party
standards and best practices as well as Ford policies,
including our Supplier Code of Conduct.
Meeting ESG Standards
We established a new ESG EV Battery Material
Management team that focuses on managing ESG
requirements in our EV Battery material supply chain
down to the raw materials. Prior to any contracts, we areconducting due diligence with SAQs, risk assessments
based on location and materials, and reviewing
company-specific ESG performance. When risk issues

are identified, we are adding mitigating actions into our
supply contracts.
We are requiring suppliers source raw mined materials
from suppliers committing to and/or certified by theInitiative for Responsible Mining Assurance (IRMA)or third-party certified equivalent. We also request
processing facilities to apply similar independent or
third-party standards from RMI that include ESG audits
and demonstrate their actions toward responsible
sourcing. As a way to address additional risks beyond
the most severe human rights issues outlined in theOECD Mineral Due Diligence guidance, we aim to assess
our mineral processors and mines to build robust ESG
management systems. Finally, as we work toward
compliance with various current and upcoming global
due diligence laws, we require supply chain transparency
down to the mine.
Indigenous Peoples’ Rights and Raw Materials
Aligned with our policies, when securing raw materials,
suppliers will respect the rights of Indigenous Peoples
in accordance with the United Nations Declaration on
the Rights of Indigenous Peoples (UNDRIP) and ensure
Free, Prior, and Informed Consent (FPIC) of indigenous
communities is pursued and obtained prior to projects oractivities that may affect their lands, resources, or rights.
UNDRIP “emphasizes the rights of Indigenous Peoples
to live in dignity, to maintain and strengthen their own
institutions, cultures and traditions and to pursue theirself-determined development, in keeping with their own
needs and aspirations.”
FPIC allows Indigenous Peoples “to give or withhold
consent to a project that may affect them or theirterritories. Once they have given their consent, they can
withdraw it at any stage. Furthermore, FPIC enables themto negotiate the conditions under which the project will
be designed, implemented, monitored and evaluated.”

IRMA has developed 40 critical requirements, including
one focusing on the rights of Indigenous Peoples. Thisrequires new mine sites to obtain FPIC of Indigenous
Peoples and existing mines to have obtained FPIC or
demonstrate operations that support positive relationships
with affected Indigenous Peoples, including providing
remedies for past impacts on Indigenous Peoples’ rights
and interests. Our requirement for mining suppliers toseek IRMA certification or third-party certified equivalent,
furthers our commitment to respect Indigenous Peoples’
rights. IRMA states that because of the requirement that
FPIC be free from external manipulation, coercion, andintimidation, an FPIC process cannot be undertaken insituations where indigenous or tribal peoples are living
in voluntary isolation.

We are working towards including specific ESG terms
in the agreements that align with Ford’s Supplier Codeof Conduct, including Ford audit rights and independent
third-party audits.

In 2023, we secured future materials from one mine sitethat is IRMA certified.

We are also engaging with our partners and suppliers
to confirm alignment and actions that comply with our
Supplier Code of Conduct, and we are reviewing their
ESG management systems to gain insight into their
management and risk assessment processes. We arebuilding a tool to help manage ESG requirements andadherence to the Supplier Code of Conduct throughout
the life of the contract.

Responsible Direct Sourcing
Ford has sourced the majority of the lithium and nickel
needed to reach our EV capacity targets.
We’ve announced lithium agreements with global
suppliers, Albemarle, SQM, and Nemaska. While these
global suppliers give our plan stability, we’re also directly
sourcing from US-based development projects, including
an agreement with Ioneer.
A three party collaboration will advance more sustainable
nickel production in Southwest Sulawesi, Indonesia andhelp make electric vehicle batteries more affordable.
The collaboration will deliver materials essential for the
auto industry’s shift to EVs and enhance Indonesia’s EV
manufacturing industry while upholding our commitment
to responsibly source materials.
Our investment into nickel also provides cobalt as aby-product which diversifies our sources of cobalt
beyond the Democratic Republic of the Congo.

EV Battery Material Due Diligence
ESRS S2-2

Once procurement negotiations are completed, theESG EV Battery Material Management Team is continuing
to conduct risk assessments of our future raw material
suppliers to understand areas of highest risk. We areworking with suppliers and partners to understandtransparency into raw material suppliers and requesting
due diligence data from identified suppliers to supportalignment with Ford’s ESG expectations.

We will continue to conduct due diligence on these
suppliers, which could include on-site Ford assessments,
where we will work with suppliers to prepare for thirdparty audits. This allows us to monitor for preparedness
and oversight in between third-party audits. Due
diligence activities could also include third-party audits
like IRMA or RMI and review of corrective action plan
implementation.
Diversifying and directly sourcing various parts of the
supply chain allows us to ensure sources have stronger
ESG throughout the supply chain. Even in cases where
we are not directly sourcing, we will have transparency
to know our supply chains and complete due diligencein advance and throughout the source of supply.

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Overview —Human Rights — Product Safety and Quality —Human Rights— continued

Raw Material Sourcing: Lithium in Australia
In 2023, we announced several lithium agreements tosecure our EV growth, diversify our supply chain, andensure we are doing our part to create equitable andsustainable mineral supply chains. As part of thissourcing, we implemented a more robust ESG due
diligence system focused on sourcing raw materials at
the mine. Our due diligence focuses on potential
company, country, and project ESG risks and is used to
inform and establish the ESG requirements in the supply
agreements.
One supply agreement secured lithium from Albemarle’s
Kemerton refinery, and sources mined inputs from theTalison Lithium managed Greenbushes mine (Australia,
49% owned by Albemarle). We completed risk
assessments that considered Albemarle’s public policies,
history of risk mitigation and performance, and country
level risks. Contracts were written to consider
appropriate ESG requirements to protect human rights,
working conditions and the environment, all of whichwere already reflected in Albemarle’s Code of Conductand other policies and inherent in its Core Values.
To address lithium mining risks, we included mitigating
actions in the agreement. Albemarle reaffirmed its
commitments such as maintaining an ESG management
system, complying with policies aligned with the Ford’s
We Are Committed to Protecting Human Rights and theEnvironment policy and Supplier Code of Conduct, andconducting an independent Initiative for Responsible
Mining Assurance (IRMA) audit verification at the minesite source for the lithium products. Shortly after theagreement with Ford was announced, Albemarle became
the first lithium producer to complete an independent
audit and have its audit report published by IRMA.

Additionally, the agreement includes other commitmentsthat are already being carried out by Albemarle, such as
robust community engagement, including with
Indigenous Peoples, that allows for input as well as
information sharing on environmental impacts. Ford also
recognizes the Greenbushes mine’s commitments toenhancing water conservation, decarbonization throughfurther clean energy agreements, and promoting waste
recycling and recovery practices.
As part of our commitment to ongoing due diligence and
ESG Management, Ford’s ESG EV Battery Material
Management team will continue to review performance,and collaborate directly with Albemarle, including an
onsite assessment. We aim to ensure ESG managementin mineral supply chains and are commited to engaging
with material suppliers, including working together toimprove industry practices and expand our learnings to
sub-tier suppliers throughout our mineral supply chains.
Our approach to addressing ESG risks proactively, and inagreement with our suppliers, helps us meet ouraspiration to source only raw materials that are
responsibly produced. We understand that ESG due
diligence, management, and oversight is required
regardless of where minerals are sourced, and we willcontinue to work with our suppliers to improve andimplement best practices that protect people,
communities, and our planet.

Human Capital and DEI —Employee Health and Safety —Customer Experience —Community Engagement

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Product Safety and Quality

Aspirational Goals

SafetySalient Human Rights Issues

For more than 100 years, we haveearned trust by designing andmanufacturing safe, quality products
to meet the needs of people aroundthe world. Our customers rely on ourattention to quality and the strengthof our brand depends on it.
Product Safety and Quality Policies
ESRS S4-1

Health/Safety

UN Sustainable Development Goals

We have set the sustainability aspirational goal toreduce vehicle crashes and workplace injuries.
Corporate policies and dedicated personnel reinforce
our commitment to safety in our products and services
and help ensure our products meet or exceed applicablelaws and regulations. Our policies support a strategy tohelp ensure we design and develop safe vehicles andservices for all users. Per our Code of Conduct, we
actively evaluate quality and aim to deliver continuous
improvement in the safe design of our products
and services.
As our Code of Conduct notes, we:• Design and manufacture safety into our products
and services, seeking to continuously advance safety
in the transportation operating system• Implement and follow disciplined systems tomeasure performance, enhance consistency,
and manage feedback• Take quality concerns seriously, whether from inside oroutside the company, and address them appropriately
Safety Governance Process
To deliver our corporate strategy, we have established across-functional governance process to review upcoming
regulatory rule making, third-party evaluations andratings, competitive benchmarking, and new technology.
These processes also ensure robust program execution.
Designing for Safety
Ford has developed state-of-the-art analytical tools,
methods, and computer simulations to complement
our engineering analyses and full suite of crash testing,at the component, sub-systems, and full vehicle systemlevels. By maximizing the benefits of Computer Aided
Engineering tools, we can help achieve cost-efficient,weight-efficient, and high safety performance design.
We develop these tools and conduct crash and othervehicle attribute evaluation tests at our sophisticatedsites in the U.S. and Europe, including the Virtual Test
Track Experiment simulator at the Research andInnovation Center in Dearborn, Michigan.

• Provide products and services that meet or exceed
regulatory requirements

Ford does not use animals for testing nor do we ask
or fund others to do that for us. We will continue to beleaders in creating, developing, and validating alternative
methods to proving and providing product safety.

• Promote safe and responsible consumer practices

Managing Our Relationship with Customers• Take seriously any safety concerns or productcomplaints, and address them appropriately• Prioritize quality in our products and services,seeking continuous improvement

ESRS S4-2, ESRS S4-3

Ensuring customer satisfaction is an important part ofour safety efforts. We take a user-centered approach tocustomer satisfaction by actively innovating, reviewing
customer feedback, and conducting competitive
benchmarking to deliver products and customer

experiences that contribute to a better world. We arealso expanding the use of connected vehicle data toidentify potential emerging issues as well as to help
us understand what customers may be experiencing.
Managing material impacts, risks, and opportunities
related to our customers is central to earning ourcustomers’ trust. We use internal and externalmeasurements of quality and brand promotion to help
us assess our performance and determine where
improvements are needed.
Externally, we use industry benchmarking data tomeasure our quality success and give us the greatest
credibility with external stakeholders and audiences.
Warranty repairs are a key metric to measure initialquality. We also include measures of customer
excitement to assess product quality.
To mitigate or remediate negative impacts on consumers,
we created a Field Service Action (FSA) Implementation
Team that optimizes FSA execution and takes care ofcustomers involved in FSAs more efficiently. This enhanced
coordination with cross-functional teams has improved
timing for production and service parts availability socustomer vehicles can be updated quickly when an FSA
is required.
Machine learning tools are used and continue to berefined for expedited review of field reports to accelerate
the detection of potential issues in the field. We utilize
Machine Learning and Artificial Intelligence, such as
Large Language Models, to search and categorize fieldreports, swiftly identifying potential issues from extensive
unstructured data without relying on predefined
keywords. Leveraging natural language processing,
we can identify similar issues regardless of how they aredescribed. By deploying AI for automated categorizationand pattern discovery, we aim to enhance efficiency,
visibility, and ultimately field safety.

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Product Safety and Quality— continued

To ensure that our actions are effective and deliver theintended outcomes for consumers, we have developed
an integrated data management system that tracks
investigations all the way through recall remedy
implementation. In 2023, we further enhanced system
functionality, with new data reports for early-stage
investigations and integration of our problem reporting
system and quality discipline analysis tools.
We can generate custom reports and metrics within
the tool to help track our progress on all fronts. And,customers can view the status of any recalls on theirvehicles via the Ford website. Recall completion rates
are tracked and reported to the National Highway Traffic
Safety Administration (NHTSA) and other agencies.
Our product development process helps us avoid
causing material negative impacts on consumers.
The process includes internal validation for requirements
to ensure our products meet or exceed applicable laws
and regulations.
Tracking our Performance
ESRS S4-3

In addition to meeting or exceeding applicable laws andregulations, we establish targets to achieve the desired
performance in third-party ratings testing. The timing
is based on program cycle and publication of third-party
testing protocols.
We measure the time to issue resolution with a “shotclock,” leveraging Quality Early Detection and using
Connected Vehicle Data to identify potential issues
quickly. For example, updating vehicle software via
over- the-air update technology (OTA) allows for fasterissue resolution without requiring a customer to bring
their vehicle to a dealership for repair. With customer
consent, Ford can address safety, environmental, andquality issues OTA when the fix involves addressinga software issue and can be performed OTA.

For repairs that cannot be completed OTA, Ford has
expanded Mobile Repair and Pick Up and Delivery
options to make vehicle service and recall repairseasier and more convenient for customers to complete.
Key Safety Metrics
Ford vehicles continue to achieve high marks andrecognition in regulatory and New Car Assessment
Programs (NCAP) crash testing assessments. The varying
protocols and evaluation criteria of NCAPs and their fastpaced continuous updates to those criteria makes it
increasingly difficult to achieve top ratings across all
regions; however, many of our vehicles receive the top
5-star safety ratings globally. We continue to placeconsiderable emphasis on our performance in theseassessments.
2023 Vehicle Safety Highlights
United States: U.S. NCAP (NHTSA)• For the 2023 model year, Ford Mustang, Escape,Edge, Expedition, Explorer, F-150, F-150 Lightning,
Bronco Sport, and Lincoln Corsair, Aviator, andNautilus nameplates were rated with 5-star overallvehicle scores.
United States: Insurance Institute forHighway Safety (IIHS)• For the 2023 model year, Ford Explorer and Lincoln
Nautilus received
Awards.
• The Mustang Mach-E, Ford Explorer, and Lincoln
Aviator earned overall “good” ratings after successfullycompleting updated front moderate overlap crashtesting.
• Mustang Mach-E achieved “good” ratings in every
crashworthiness and crash avoidance safety categorytested by IIHS, making it the top scoring electric
midsize SUV of all tested through March 2023.

Europe: Euro NCAP
• No vehicles received a star rating in 2023.
• Programs with valid published 5-star rating (andavailable in Europe during 2023): Ford Mustang MachE, Fiesta, Focus, Kuga, Explorer, Tourneo Connect, andRanger. These vehicles represent 64% of nameplates
in EU market in 2023.
China: China NCAP
• Ford had two China NCAP 5-Star rated vehicles in 2023:
Ford Equator Sport and Lincoln Zephyr. These vehicles
join existing nameplates Edge, Everest, Explorer, Focus,
and Mondeo with valid published 5-sar ratings andavailable in China during 2023.
China: C-IASI (China Insurance Automotive Safety Index)• Ford Mondeo and Mach-E were awarded C-IASI Good
Rating for all safety assessments in 2023. These join
the nameplates Focus, Escape, and Mach-E which areavailable in market and have previously achieved the
C-IASI Good Rating.
Australia & New Zealand ANCAP• Mustang Mach-E Select and Premium models offeredin Australia were awarded 5-Star ratings in 2023.
These vehicles join existing nameplates Puma, Escape,Everest, Ranger with valid published 5-sar ratings andavailable in market in 2023.
Euro NCAP Commercial Van Rating• Ford received van ratings for Transit (Gold) and Transit
Courier (Platinum). The Courier rating is the only
Platinum rating awarded this year and also the highest
ever score achieved.
UK What Van Safety Award• The Transit Custom and Transit Courier received firstand second place respectively.

Safety Features
U.S. Automatic Emergency Braking (AEB) Commitment
Ford’s Automatic Emergency Brake (AEB) Pre-Collision
Assist feature5 scans the road ahead and can alert drivers
to potential collisions with vehicles or pedestrians
directly in the driver’s path41. If the driver’s response is
not sufficient, AEB will increase brake-assist sensitivity toprovide full responsiveness when the driver does brake.
If an impact becomes imminent and the driver does nottake corrective action, brakes can apply automatically.
Ford committed to equip at least 95% of all new lightduty vehicles (under 8,500 pounds) with AEB in the U.S.
market by September 2023. Ford met that commitment
two years early and continues to improve. For 2024
model year, Pre-Collision Assist with AEB is offered as
standard on 98% of Ford and Lincoln cars, light duty
trucks5, and SUVs.
Ford is continuing our AEB commitment for vehicles
in the 8,501 to 10,000-pound range, which requires
95% AEB fitment by September of 2026. 78.03% of Fordvehicles in this weight class have AEB standard as ofAugust 31, 2023. Ford will also be selling AEB equipped
vehicles in Canada at similar levels.
Combating Heatstroke in Vehicles
Since 1998, at least 969 children have died from
Pediatric Vehicular Heatstroke in the United States42,
including cases where children were forgotten in thevehicle, knowingly left, gained access on their own,
or were trapped.
Ford’s Rear Occupant Alert System gives an “in-vehicle”
audible and visual warning that alerts the driver tocheck the back seat of the vehicle for occupants after
the vehicle is turned off. Some vehicles are also capableof sounding the exterior horn as a part of the warning
escalation. When the ignition is on and a rear door is
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Product Safety and Quality— continued

the opening and closing of the rear doors, the system
infers the potential presence of occupants in the rearseat and triggers the alert when the vehicle is turned off.
In 2019, Ford committed to equip at least 95% ofpassenger vehicles with rear doors and rear seating
positions (under 10,000 pounds) in the U.S. with a rearseat potential occupant reminder system by September 1,
2024. Ford met that commitment a year early, as the Rear
Occupant Alert System was standard on 98.4% of theapplicable United States vehicles when Ford reported
its annual update to the National Highway Traffic Safety
Administration (NHTSA) in October 2023.
Ford initiated research and advanced engineering
projects to help develop interior cabin radar sensing
to potentially detect the presence of occupants.
We will continue to enhance warning notifications for
future models and research technologies that can detect
in-cabin occupant presence. These features will help
address scenarios beyond those defined by the 2019
Voluntary Agreement and should enhance effectivenessin minimizing and potentially avoiding pediatric vehicular
heatstroke cases.
Digital Rearview Mirror Gives Better User Experience
Ford Pro™ continues to use technology to givecommercial customers a better user experience while
helping improve productivity with an available new
Digital Rearview Mirror available on 2023 Ford Transit®
and E-Transit vans. The Digital Rearview Mirror features
a high-definition monitor that displays a panoramic viewof the area behind the van, allowing drivers to spot
cyclists, pedestrians, and other vehicles, even when abulkhead, cargo, passengers, or windowless rear doors
are in the way.
Exit Warning Keeps Pedestrians and Cyclists Safe
Exiting a vehicle onto a busy street or sidewalk exposes
cars, pedestrians, and cyclists approaching from behindto the risk of an unexpected open door. A new driverassistance feature called Exit Warning, is now available
on all models of the all-new 2024 Ford Mustang to help
share the road and protect vulnerable road users like
cyclists, scooter riders, and pedestrians.

top rated Active Driver Assistance system, for the second
year in a row.

Available Exit Warning is designed to alert the vehicle’s
occupants with audible and visual alerts via Ford SYNC,
on the Mustang’s instrument cluster and side mirror
if rear approaching traffic, cyclists, or pedestrians aredetected. Available Exit Warning uses the vehicle’s rearcorner BLIS® (Blind Spot Information System) radar
sensors when parallel parked to help detect othervehicles, cyclists, and pedestrians moving towards thevehicle’s sides from behind and warn occupants before
they open the door to exit the vehicle.

Reverse Brake Assist
Reverse Brake Assist can help reduce or avoid a collision
when backing up by automatically applying the brakes
when the system detects an object in the vehicle’s path.
Reverse Brake Assist utilizes sensors on the rear bumperand the rearview camera to detect objects and help
reduce or avoid a collision. The system is active whenthe vehicle is in Reverse and traveling at a speed above
1 mile per hour (mph) but below 7 mph. A message
and warning indicator will appear when the system
automatically applies the brakes.

Advancements Made in Active Safety Technologies
and Co-Pilot 360 Technology
We continue to make advancements in our Active Safety
Technologies and Co-Pilot 360 to help keep drivers incommand from the driveway to the highway. From blindspot detection to parking assistance to hauling cargo,
Co-Pilot 360 gives drivers a clear view of the road ahead
and the path behind them.

Trailer Reverse Guidance
Available Trailer Reverse Guidance enhances visibility
with cameras in the sideview mirrors and visual guides
in the center dash screen to give extra assistance when
you are backing up a trailer. Drivers get a clear view ofwhere the trailer’s going while Trailer Reverse Guidancecoaches them along the way.

New BlueCruise Features
Our in-house team is constantly improving BlueCruise —adding features and enhancing its hands-free Advanced
Driver Assist Systems (ADAS) with experiences that offer
a more human-like driving feel.

Pro Trailer Backup Assist™
This available feature makes backing up a trailer aseasy as turning a knob — simply rotate in the direction
you want the trailer to go and Pro Trailer Backup Assist
responds accordingly.

BlueCruise Version 1.3 rolled out in late 2023. The latest
version of our cutting-edge driver assist technology adds
lane change support and other refinements that keep
drivers in hands-free mode on average five times longer
than version 1.0.

Pro Trailer Hitch AssistTM
Available Pro Trailer Hitch Assist helps drivers hookup trailers more easily by automatically controlling thesteering wheel, throttle, and braking to align the hitchball and trailer coupler. The user needs to confirm thetrailer coupler height is ½ to 3 inches above the hitchball during the feature use. The driver holds down the

BlueCruise continues to receive external recognition.
In 2023, BlueCruise was recognized as Consumer Reports

In Connected Vehicles and Digital Services on p.40

pro trailer button and once the two are aligned, the truck
stops and the driver lowers the trailer onto the tow ball.
Smart Hitch
Available Smart Hitch is designed to help drivers easilyload trailers and practice safe towing. Smart Hitch
helps the customer distribute trailer weight correctly
by measuring the tongue weight of a trailer being
connected. Smart Hitch calculates the trailer’s
appropriate tongue weight after it is set up on thecenter touch screen and provides guidance on weight
distribution or hitch overloading on the screen or on
the FordPass App. The truck will indicate if the current
hitch weight is too high or low, and can even guideowners through properly tensioning a weightredistributing hitch.
Keeping Occupants Safe
Precompetitive Partnerships
To enhance the safety of vehicle occupants, maintaincompetitiveness and leadership, and support ouraspiration to be the most trusted company, Fordcollaborates globally with other automotive
manufacturers, suppliers, policy makers, associations,research institutions, and universities.
For example, Ford is a member of the U.S. Council
for Automotive Research (USCAR). We work under the
USCAR Safety Technical Leadership Council (TLC) to
identify safety challenges, technical issues, and vehicle
accident safety research needs. We are currently
conducting precompetitive vehicle safety research on
the effects that new and emerging vehicle technologies
and safety requirements will have on vehicle safety.
We are also working under the USCAR safety TLC
umbrella on precompetitive projects on next-generation
Anthropomorphic Test Devices, or crash dummies, toassess and validate their repeatability, reproducibility,
durability, and ease of use to help shape future
regulations and help NHTSA develop meaningful

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Product Safety and Quality— continued

protocols that lead to real world safety enhancement inmotor vehicle accident outcome.
As a member of the Alliance for Automotive Innovation,
we are working with other automotive manufacturers on
generating responses to regulatory agencies such as the
National Highway Traffic Safety Administration (NHTSA)
and Insurance Institute for Highway Safety (IIHS) andprecompetitive research on Large Truck Safety andbiomechanics for Head Injury criteria.
Other collaborations include the European Automobile
Manufacturers Association, the Society of Automotive
Engineers, the International Organization forStandardization (ISO), the Global Human Body
Modeling Consortium, and the Canadian Vehicle
Manufacturers’ Association.
Ford has funded and executed precompetitive safety
research projects with universities such as Universityof Michigan Dearborn, University of Michigan
Transportation Research Institute, Michigan State
University, Wayne State University, and Tsinghua
University in China. We often publish the research resultsin peer-reviewed journals and scientific publications.
We have been a member of the Driver Alcohol Detection
System for Safety (DADSS) program, since it wasestablished. This cooperative research partnershipis developing an alcohol detection technology that
passively detects driver impairment and prevents the
car from moving. Ford provided an active lead in boththe technical and policy working groups developing
the alcohol sensing technology. Ford collaborated withDADDS on implementing passive breath sensors in two
Mach-E vehicles in Connecticut for fleet evaluation.
We also partner with Ford Motor Company Fund, thecompany’s philanthropic arm, on their work to promoteaffordable, reliable, and safe mobility for thoseexperiencing transportation insecurity.

When it comes to safety, these efforts by Ford Fund
include philanthropic grantmaking to a variety oforganizations that prioritize safety for vulnerable road
users in low-income communities, as well as the longrunning Driving Skills For Life program.
Now in its 21st year with global activations spanning theUnited States, Europe, and IMG regions, this program
invites newly licensed and permitted teenage drivers togo through various hands-on training exercises to ensurethat teen drivers, as well as the pedestrians, cyclists, andtransit users who they interact with on the roads, canall have a right to a safe mobility journey. In the UnitedStates, Ford Fund partners with the Governors Highway
Safety Association to bring these Driving Skills For Life
events to 10 Ford communities.
In December 2023, Ford Fund announced a $5 million
investment in mobility solutions focused on addressing
transportation insecurity in Ford’s hometown
communities located in Southeastern Michigan,Louisville, Kansas City, Chicago, Ohio, West Tennessee,and Buffalo. With its Safety in Mobility work, Ford Fundworks so that every person is free to move and pursue
their dreams through affordable, reliable, and safe
transportation.
Post-Crash Response
In addition to helping occupants call for assistance afteran accident, our 911 Assist can give first responders
potentially life-saving information, quickly and efficiently.
Available through SYNC and our new Ford and Lincoln
Digital Experience infotainment system, 911 Assist sharesa GPS location with the operator and relays data on impact
velocity, crash type, safety belt use, and airbag deployment,
helping emergency services respond appropriately.
The majority of our vehicles also carry the SOS PostCrash Alert System, which alerts passers-by and first
responders to a vehicle’s location. In addition, e-Call,a modem-based system, is being introduced in a numberof countries across the globe.
EV Battery Health and Safety
Ensuring the safety and quality of EV batteries is crucial
to building trust in our fleet of electric vehicles. Every
Ford EV includes a battery quality operating system.
Quality checks and tight process controls are integrated
throughout the battery cell manufacturing and battery
pack screening during vehicle assembly. Once a vehicle
is built, Ford leverages cloud-based vehicle monitoringand detection and can communicate with connectedcustomers if a voltage anomaly is detected. Ford also
provides high voltage safety publications including
a Workshop Manual for vehicle technicians and an
Emergency Responders Guide for first responders.

Ford EVs are subjected to crash testing that far exceeds
the stringency of regulatory requirements. For example,
we conduct front, side, and rear impact crash tests at
5 mph above the speeds required by safety regulations,which translates to increased impact energy and severity
as compared to what is required by law.
We also conduct crash tests beyond what is required byregulations and consumer testing, enhancing robustness,and furthering the high level of safety of our EVs.
We are the only company in the world that certifies
our EV and internal combustion engine police interceptor
vehicles at 75 mph speed with 50% offset rear impact
crash tests — the most stringent rear impact test thatexceeds legal requirements. This internal commitment
helps the battery and structural design in EV police
interceptors successfully survive.

Safety Research Partnerships
EV safety research

Evaluating the safety performance of lithium-ion batteries with Sandia National Laboratories
and the National Renewable Energy Laboratory. Effort includes developing mechanical,
thermal, and electromechanical multi-physics modeling capabilities to help predict lithiumion battery performance and damage when subjected to an impact.

Technical challenges
of self-driving
vehiclesIn addition to the American Center for Mobility, Ford is a member of the Autonomous Vehicle
Industry Association and is working toward a world where safe and trusted autonomousvehicles increase road safety and improve mobility opportunities for all.

Vehicle-to-Vehicle(V2V) safety
communication
systems

Ford is a member of the 5G Automotive Association to advance connected technology for
automotive applications. Ford is also a member of the Leadership Circle for Mcity to shape
all aspects of the future of mobility.

Cybersecurity

Ford is a member of the AutoISAC an industry-driven community to share and analyze
intelligence about emerging cybersecurity risks to the vehicle, and to collectively enhancevehicle cybersecurity capabilities.

Driver distraction
and Advanced
Driver Assistancetechnologies

Ford is a board member of the Automotive Coalition for Traffic Safety and is funding researchon developing a passive blood alcohol content detection system to reduce drunk driving.
In 2023 Ford joined the Partnership for analytics, research, and traffic safety, which is a data
sharing partnership that serves as a source for real-world data driven traffic safety information.

Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices103
Overview —Human Rights —Product Safety and Quality —Human Capital and DEI —Employee Health and Safety —Product Safety and Quality— continued

Ford has executed a number of battery safety projects
funded by the U.S. Department of Transportation
National Highway Traffic Safety Administration (NHTSA)
and the U.S. Department of Energy to support
governmental and industry priorities in electrified
vehicles. We are also sponsoring and funding
precompetitive battery safety research projects related
to EV and battery safety such as Lithium-ion Multiphysics
Modeling, Post Crash HV/LV (high voltage and low
voltage) Components, and Connectors and Intrusion
Effects on HV (high voltage) Batteries.
Monitoring Product Quality and Brand Advocacy
Our mission is to make product quality one of theprincipal reasons why customers buy Ford the firsttime — and every time.
We use several metrics including, warranty repairs,
customer advocacy, and customer excitement tounderstand how consumers perceive the quality
experience from our products.
Our Quality Net Promoter Score (QNPS) metric, whichmeasures the ownership experience at three, 12, and36 months in service, helps us understand and improve
our consumers’ quality perceptions and advocacy overtheir ownership cycle. QNPS has provided a comprehensive
and holistic view of quality by capturing both customers’“likes” (e.g., “Things Gone Right”) and items customers“like least” about our products. We enhanced our process
in 2023 by conducting QNPS continuously, talking toour customers monthly throughout the year. We havemigrated from QNPS to Corporate Net Promoter Score(CNPS) for 2024 given the rich insights we are learning
regarding the services we offer our customers in addition
to product insights.

Ford Motor Company realized improvements at threemonths of ownership in our 2023 QNPS metrics. QNPS
provides timely and actionable insights that align withvarious industry performance indicators of quality,
such as the annual studies conducted by J.D. Power.

Improving our Quality Processes with Data
and Technology

We leverage external, industry benchmarking data
to understand the relative strength of our quality
performance and our improvement opportunities.
This also provides us the credibility with external
stakeholders and audiences. All Ford plants areaccredited to ISO 9001:2015.

Increasing our use of advanced data analytics andmachine learning will help us detect potential issues
across our vehicle portfolio earlier — even before
delivering the vehicle to the customer. Our Early Quality
Issue Suite draws on multiple data sources, fromconnected vehicles to customer service calls, toaccelerate the investigative process. This tool minimizes
time from detection to correction by combining thisinformation with automatic anomaly detection and root
cause analysis.

Industry — 2023 Quality Achievements• Initial Quality Study (IQS): In the J.D. Power IQS results,
which ranks automotive Original Equipment
Manufacturers (OEMS) and their brands based on
problems per 100 (PP100). Ford Motor Company’s (FMC)
rank position was 23rd among OEMs in the Industry.
Additionally, the Ford brand rank was 15th among“Mass Market” brands. The Lincoln brand ranks 12th
among “Premium” brands. FMC received an award for
the Ford Ranger (Midsize Pickup) along with four models
ranking within the “Top 3” of their segments: Ranger
and Maverick (Midsize Pickup), Bronco Sport (Small
SUV), and Lincoln Nautilus (Midsize Premium SUV).43• J.D. Power Automotive Performance, Execution andLayout Study (APEAL): Ford Motor Company ranks 10thamong OEMS. Ford Brand ranked 10th in “Mass Market”
brands, scoring one point higher than the segment
average; Lincoln Brand ranked seventh in “Premium”
brands, scoring two points higher than the segment
average. FMC had four models ranking within the“Top 3” of their segments: Mach-E (Compact SUV),
Bronco Sport (Small SUV), Maverick (Midsize Pickup),
and Nautilus (Midsize Premium SUV).44

We are leveraging data analytics and data management
to improve vehicle quality, customer safety, andcustomer satisfaction.

We continue to improve our integrated data
management system for tracking investigations all theway through recall implementation. We are expanding
the numbers of parts and subsystems that we canprecisely trace to vehicle-specific builds when an issue
arises. This avoids issuing wider recalls targeting a date
range of vehicle identification numbers, which generally
involve broad vehicle populations that may not all beaffected. By precisely identifying recall populations we
can limit the number of customers who areinconvenienced and optimize the number of remedy
parts needed.

Customer Experience — Community Engagement

Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices104
Overview — Human Rights — Product Safety and Quality — Human Capital and DEI — Employee Health and Safety — Customer Experience — Community Engagement

Human Capital Management andDiversity, Equity, and Inclusion
ESRS S1-4

Aspirational Goals

Diversity,
Equity andInclusion

Salient Human Rights Issues

Fair work

Harassment/
Discrimination

UN Sustainable Development Goals

A new culture is taking root at Ford.
One that demands focus, collaboration,and excellence. One that pulls together
our entire team around the globe toachieve our purpose of helping to build
a better world where every person isfree to move and pursue their dreams.
Our talented and passionate teams are embracing thefuture, and the challenges and opportunities it will bring,
without losing sight of our legacy of serving the world
with integrity and competence. We are committed togiving them the tools they need to succeed.

A link to our internal We Are Committed to Speaking Up
and Eliminating Retaliation policy is included in the
Code of Conduct. The Code of Conduct also lists all thechannels available for employees to report any type ofconcern. Employees can file reports in person, via email,online, or via toll-free hotline, and may reportanonymously if desired.
We commit to not tolerating harassment or
discrimination of any form, supporting diversity,
providing a healthy and safe working environment,
protecting consumer and employee data privacy,
and prohibiting bribery. These policies are describedin more detail in our Code of Conduct.
Supporting a Just Transition

Human Capital Management and Diversity,
Equity, and inclusion (DEI) Policies
ESRS S1-1

We have set the sustainability aspirational goal tosupport a diverse, equitable, and inclusive workplace
where each person is valued.
Ford’s Code of Conduct includes our 17 Corporate
Policies which outline the company’s commitment toand expectations for employees. Employees are expected
to operate in alignment with the Code of Conduct at
all times.
We treat our workforce fairly, humanely, and with respectand dignity. We recognize and respect employees’ rights
to freedom of association and collective bargaining andwork with recognized employee representatives toconsider the interests of employees at all times.
We do not discriminate or retaliate against any
employees, including those participating in a tradeunion. Even where there is no representation by unions,
we provide opportunities for employee and external
stakeholder concerns to be heard.

While the shift to electric vehicles is critical to Fordachieving our business and sustainability goals, thetransition comes with challenges that we cannot ignore.
As we transition to EVs, labor and employment markets
will continue to require new skills, new ideas, and new
habits of mind. Building this future requires changing
and reshaping virtually all aspects of the way we haveoperated for more than a century. Consequently, we arereorganizing some functions throughout our business.
We will live up to our duty to care for and support thoseaffected, providing not only benefits but significant help
to find new career opportunities.
As we continue to implement our EV strategy and movetoward carbon neutrality, we are supporting a justtransition for our employees, our supply chain, and thecommunities in which we operate. We recognize thatnew skills and learning approaches are needed as thetransition to EVs disrupts business models acrossindustries and new value streams emerge. Ford supportsa just transition by preparing our workforce and local
communities for the transition to EVs.

Workforce and Talent Development
Ford is committed to providing hourly and salaried
employees with the opportunity to upskill and reskill
with supportive training programs both internally andwith the help of community partners. We are dedicatedto the principles of lifelong learning, embracing a
growth mindset and career development. Engineers
who previously developed state-of-the-art internal
combustion engines (ICE) and emissions systems are
now applying those same modeling and experimental
testing skill sets to design industry-leading EV battery
safety systems, optimize fuel cell system components,
and improve eMachine manufacturing processes.
Community Access to Quality Jobs
As we build an electric future at our plants, we areproviding opportunities to skill and connect community
members with manufacturing careers. BlueOval City in
Stanton, Tennessee will be one of our mosttechnologically-advanced manufacturing campuses todate, and will create thousands of jobs.
Engaging with Labor Unions
ESRS S1-2, ESRS S1-8

Ford has a longstanding history of working with unions,and we remain committed to the agreed collective
bargaining process. In Europe, Ford has a long standing
European Works Council that allows for meaningfulexchange at the regional level. Working conditions andterms of employment are influenced by collective
bargaining agreements, where applicable, at the country
level and based on the employee type (salary, hourly,
management).
In 2023, Ford engaged in collective bargaining around theglobe with our respective union counterparts. We reached
new labor agreements in our European, IMG, and Americas
regions addressing wage increases and other provisions
supporting the employee experience.

Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices105
Overview —Human Rights —Product Safety and Quality —Human Capital and DEI —Employee Health and Safety —Customer Experience —Community Engagement

Human Capital Management and Diversity, Equity, and Inclusion— continued
ESRS S1-4

Employee Engagement
ESRS S1-2

Employee engagement is a catalyst for our success.
We leverage a multi-channel open dialogue to keep
our employees informed, engaged and vested in
the company’s success. Our regular cadence ofcommunications provides opportunities to frequently
share information and business updates. It includes
global Town Halls, our intranet and websites, corporate
publications and reports, social media, webcasts, andexecutive Q&A sessions with senior management, labormanagement committee meetings, as well as Employee
Resource Group initiatives led by the Global DEI Office.
Social Action Council
We launched our Social Action Council in 2022 topromote and support positive change. A cross-functionalteam of Ford leaders, the Social Action Council assesses
the impacts of social issues on Ford’s business andstakeholders and presents engagement recommendations
to the company’s executive leaders and Board of
Directors based on Ford’s purpose, business, andcapacity to make an impact.
Employee Feedback
S1 SBM-2, ESRS S1-2

Understanding our employees’ concerns is essential.
We seek feedback from our employees via our annual
engagement survey and always-on shorter pulse
surveys. Results are shared with senior leadership.
Moderated discussions with senior leadership on the
feedback received and potential actions to take thendrives action planning and goals.
Other opportunities to share feedback include directinteraction with communication coordinates and leaders.

Continuous Feedback Via Always-On Survey
Measuring employee sentiment via an always-on survey
ensures leadership understands the general pulse of
employees and can respond in a timely fashion to issues
and concerns. Results of all of our employee surveys arepresented to senior leaders in dashboard formats that
support better and faster data-informed decisions.
Employee Sentiment Survey
In 2023, we revamped the content of our annual
sentiment survey of global salaried employees to include
new metrics. Eleven key metrics that can be trended
from 2022 showed an increase in favorability. We also
added a U.S./Canada Non-Salaried Voice Survey in 2023.
The annual salaried engagement survey is sent toemployees via an email which explains the data
governance process. To ensure individual employee
confidentiality, no results for any group of less than
five is shown. Our privacy policy and confidentiality
disclosures are shared with all employees.
Key Metric Results from Global Salaried Voice Survey
At Ford, we are creating an inclusive environment. The
following metrics reflect sentiment around these efforts:• 88% of survey participants say that at Ford, people feel
respected regardless of their differences; up from 86%
in 2022• 87% feel like they belong and can be themselves atFord, up from 82% in 2022
• 90% say their People Leader treats everyone on theirteam fairly and equitably, regardless of theirdifferences• 84% feel safe to express concerns about problems andtough issues

Our employees indicated that they feel a sense ofsatisfaction with their jobs, feel valued, and feel supported
in taking care of their wellbeing. The following metrics
reflect sentiment around our efforts to support employees:• 74% feel valued as an employee of Ford; up from 69%
in 2022• 85% are satisfied with their job• 91% say their People Leader supports their efforts
to balance their work and personal life
Equal Pay for Equal WorkOur 2023 Global Salaried Gender Pay Ratio is 98.7%.
This ratio is defined as the ratio of average femalesalaries to average male salaries adjusting for region, pay
grade, salary plan, education, and experience worldwide.
Our U.S. Salaried Minority Pay Ratio is 101.5%. This ratio
is defined as the weighted average ratio of averageminority salaries to average non-minority salaries among
employees in the same skill team and pay grade.
Although our analysis shows no indications of systematic
pay bias, we monitor our entire compensation structure
to ensure that all employees are paid appropriately.

ESRS S1-16

Employee Benefits

We are committed to equal pay for equal work.
This commitment applies to all forms of pay, includingbase salary, incentives, bonuses, and other formsof compensation.

We are committed to meeting our employees’ needs
while balancing the needs of the business. At Ford,the purpose of work defines where that work is done.
We take a consistent approach to flexible work patterns
and arrangements globally. We maintain a hybrid work
model for our non-place-dependent workforce and havedeveloped guidelines and tools to support those whochoose this path.

Our We Are Committed to Protecting Human Rights andthe Environment policy mandates that we “Comply withapplicable laws regulating hours of work and support aliving wage by providing competitive compensation andbenefits that meet or exceed legal requirements.”
Our Total Rewards office assessed our global
remuneration policies and practices to confirm alignment
with the Wages & Benefits guidance set forth by the
Responsible Business Alliance (RBA) and the Automotive
Industry Action Group. The assessment considered
competitive wages, benefits, and overtime compensation.
Our evaluation confirmed that all Ford employees
globally receive wages and benefits which, at minimum,
respect minimum wages, overtime compensation,
medical leave, and government-mandated benefits,
and are adequate to cover basic needs, as well as enablea decent standard of living.

Job sharing programs and mechanisms are available
for those who want to work reduced hours. Employees
in North America, Europe, and India who are interested
in job sharing can create a profile on our JobShare
Connect app, search for matches and reach out topotential partners.
Family Benefits
In 2023 we introduced new family-building benefits thatcater to every unique journey to parenthood for our U.S.
salaried employees. The new benefits offer reproductive
assistance/fertility treatments, surrogacy reimbursement,
and include an expansion of the current adoption
reimbursement benefit. They are designed to help
alleviate the financial burden and provide support tomake the process easier to understand and navigate.

Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices106
Overview —Human Rights —Product Safety and Quality —Human Capital and DEI —Employee Health and Safety —Customer Experience — Community Engagement

Human Capital Management and Diversity, Equity, and Inclusion— continued
ESRS S1-4

Employee Learning and Development
ESRS S1-13

Learning plays a pivotal role in unlocking the potentialof Ford’s employees. All Ford employees have access torobust learning opportunities in our learning experience
platform, enabling them to take ownership of theirprofessional development. And we’re committed tomodernizing learning to meet employees where they
are, providing experiences for Ford colleagues working
remotely, hybrid, and in-office.
Work is underway to reimagine the way Ford colleagues
learn, including new just-in-time delivery platforms
that can provide colleagues with the learning they need,right when they need it. And we’ll launch new People
Leadership development experiences — grounding ourleaders in solid management and leadership principles
and techniques.
Grievance Mechanisms and Remediation
ESRS S1-3

We are committed to speaking up and preventing
retaliation. We encourage our employees to speak up
if something doesn’t seem right or might violate ourpolicies, our Code of Conduct, or the law. Speaking up
about good-faith concerns honors our commitment
to integrity, fairness, and continuous improvement.
If there are violations of the Code of Conduct, our policies,or the law, Ford wants to know in order to address thesituation and continue to improve our business.

Grievance Mechanisms: What Happens After You Make a Report?

1

2

3

You makea credible
report.

Your report islogged in thesystem.

Your report isrouted to theappropriate
internal
resource.

You may choose to reportanonymously, where applicablelaws allow, but it helps theinvestigation if you provide
your name and/or contact
information.

4

5

6

7

We develop an
investigation
plan.

The
investigation
proceeds.

The allegations
are verified orfound to bewithout merit.

The appropriate
action is taken.

Compliance Office

People Matters

Office of the General Counsel

Corporate Security

Others as Appropriate

Ford has a process in place to review and respond toreports as appropriate. We keep information related
to reports confidential, sharing it only as needed tocarry out an investigation by designated individuals.

It's yourresponsibility toparticipate fully in
an investigation if
you are asked.

It may not beapparent to youthat aninvestigation isproceeding.

Determine if any process orprogram enhancements areneeded.
Determine if policies orprocedures need alteration.
Determine if discipline is needed.
Other actions as appropriate.

For confidentiality reasons, we may or
may not be able to make you aware of
the outcome of an investigation or any
actions taken.
We do not tolerate retaliation in any form against someone who makes
a good faith report or participates in an investigation.

Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices107
Overview —Human Rights —Product Safety and Quality —Human Capital and DEI —Employee Health and Safety —Customer Experience — Community Engagement

Human Capital Management and Diversity, Equity, and Inclusion— continued
ESRS S1-4

Ford will support and protect anyone who raises a goodfaith concern in connection with a potential violation of
the Code of Conduct, company policies, or the law. Fordstrictly prohibits retaliation against anyone for reportingin good faith a suspected violation or for assisting withan investigation.
The online platform, SpeakUp.ford.com, is a confidential
and secure channel to report concerns related to
Corporate Policies, the Code of Conduct, the law, orother compliance and ethics matters. The SpeakUp site
is managed by a third-party vendor. Employees may
also report concerns to their People Leader, HR, People
Matters, or the Office of the General Counsel (OGC).
Both the Code of Conduct and the We Are Committed to
Speaking up and Eliminating Retaliation policy include an
explanation of the process after a report is filed. The OGC
uses a third-party vendor to track SpeakUp complaints.
Once a report has been filed, the report is logged into
the system and then routed to the appropriate internal
resource. When warranted, an investigation plan isdeveloped and the investigation proceeds. The allegations
are then verified or found to be without merit. The processconcludes with the appropriate action being taken.
There are specific channels for handling employeerelated matters including work-related issues relating
to compensation, discrimination, harassment, employee
benefit concerns, the Code of Conduct, and company
policies. All Corporate Policies and the Code of Conduct
include a section emphasizing the importance of
speaking up and a reference to the Policy.
We send a People Matters Post-Investigation Survey torandomly selected known complainants so that we canreceive their feedback. We use this employee feedback
to determine if processes and/or programs require
enhancement; if policies or procedures need alteration;or if any other actions are needed as appropriate.

To mitigate material risks and pursue material
opportunities, we provide Integrity Training to the salaried
workforce. We also include relevant questions in the
Integrity Training survey and in our Employee Voice survey.
Global Diversity, Equity, and Inclusion (DEI)
Ford is committed to supporting and sustaining adiverse, equitable, and inclusive workplace. As we move
forward, our intention is to harness the power of ourtalented team to help fuel our transformation and further
empower Ford to better serve the diverse customers andcommunities where we live and work.

Employee Resource Groups
Employee Resource Groups (ERGs) are voluntary,
employee-led global organizations that operate as partof the Global DEI Office. ERGs connect individuals, andallies, who share common affinities, interests, andexperiences and serve as a place for employee learning,collaboration, and development.
In 2023, we transformed how our global ERGs operate
in order to increase efficiency, better support employees,
and to further advance the Ford+ plan. All 10 global
ERGs are aligned to promote and support diversity andinclusion by focusing on three strategic areas:

Women in Ford’s Workforce
Global Salaried Employees by Gender
Women

28.0%

Men

71.9%

Women on our Board of Directors

28.6%

Women in Top Management

25.6%

Women in Professional Level

27.9%

Women in Hourly/Production Positions

21.1%

Our Global DEI Vision
We respect the different cultures and beliefs of our teammembers, customers, and the communities we serve.
Our journey is ongoing and our commitment unwavering
as we nurture an equitable workplace where each person
is valued, empowered to do their best work, and inspired
to move freely and pursue their dreams.
As the company transforms, so have our plans toadvance global DEI. We are focused on the long-termcross-functional work required to put the resources andsystems in place to equitably support each employee’s
career journey, and to grow and sustain an inclusive,
global workplace.

• People — Offer a network for employees sharing anaffinity to connect, collaborate, and access resources
for personal and professional development.
• Community — Promote the company’s commitment
to philanthropy and to building a better world.
• Business — To act as brand advocates and support
the Ford+ plan.
Equal Employment Opportunity
Our EEO-1 report provides a snapshot of our U.S.
demographics as of year-end 2023, based on
occupational categories prescribed by the federal
government that aggregate jobs with widely varying
skill requirements. Approximately 95% of all Ford Motor
Company hourly and salaried positions fall into justfour of the 10 categories. The usefulness of this data
for measuring diversity success, and for making directcomparisons to other companies or other industries withdifferent job structures, is therefore extremely limited.
To address these shortcomings, Ford has developed
a more robust supplemental report that disaggregates
technical jobs in fields such as engineering andinformation technology, which pose recruiting
challenges that are very distinct from non-technical roles.

The supplemental report also provides more nuanced
breakdowns of diversity at various managerial levels.
We are committed to equal pay for equal work.
Employee compensation in each market should be fairand equitable, irrespective of gender, race, or similar
personal characteristics. Equal pay for equal work applies
to all forms of pay, including base salary, incentives,
bonuses, and other forms of compensation.

In the EEO-1 report and the Supplemental Report

DEI in Dealerships
Ford customers are very diverse; they represent
different backgrounds, cultures, perspectives, and needs.
To better serve our diverse customer base and to ensure
equal opportunity and inclusion, we remain committed
to evolving our network by making dealer diversity
a top priority.
In 2023, we added 23 new ethnic minority dealers in
the U.S., and we have dedicated candidate identification
coordinators to cultivate and maintain a robust pipeline.
We also maintain strong relationships with minority
dealer associations.
Our efforts also include offering Ford dealerships
resources to support their own DEI efforts. We encourage
Ford dealers to participate in the Ford Guest Experience
Immersion. FGE includes learning opportunities to help
dealers better connect with customers, build culturalcompetency, and to integrate diversity, equity, andinclusion concepts into their workplace.
As we move forward, Ford remains committed tooperating in ways that best serve the diverse customers
and communities where we live and work.

Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices108
Overview —Human Rights —Product Safety and Quality —The Evolution of Work:How Ford’s Next-Gen EVs
Help Create Jobs
Over a century ago, Ford
revolutionized personaltransportation with the Model T.
To meet demand, we hired andtrained scores of workers to fill
new jobs in the burgeoning
automotive industry. People cameto Michigan in droves, seeking
new skills and a better life.
Today, a similar transition ishappening with electric vehicles.
And like the Model T, we will rely ona highly skilled workforce to produce
them. Which is why we are investingin our workforce and recruiting newhires with areas of expertise wehaven’t needed until now. The
result has been the preservationof countless jobs — and thecreation of many more.
Today, thousands of Ford employees
assemble electric vehicles and EV
components at plants across the
U.S. and around the world. The
Cologne Electric Vehicle Centerin Germany will be Ford’s firstcompletely carbon-neutral
production facility when it begins
producing the all-electric Explorer
in 2024. EVs and their components
will also be assembled in Canada,
Mexico, and China.

More jobs are coming soon, withconstruction underway at new
facilities. BlueOval City in Stanton,
Tennessee will be one of our mosttechnologically-advanced
manufacturing campuses to date.
The Tennessee Electric Vehicle
Center at BlueOval City will create
thousands of jobs assembling
Ford’s next-generation electrictruck, from bumper to batteries.
Many of these employees will workwith the latest manufacturing
technologies, and our workforce
development efforts are focusedon training for these roles. We
collaborate with higher education
institutions to provide training on
advanced EV and battery
manufacturing, and we also support
K-12 schools and universities
seeking to expand STEM-related
curricula and infrastructure.
Ford’s electric vehicles are creating
high-quality jobs for thousands ofpeople around the world. And justas the Model T offered workers abetter quality of life, the EV
revolution is offering exciting new
career opportunities for today’s
workforce — and for generations
yet to come.

Human Capital and DEI —Employee Health and Safety —Customer Experience —Community Engagement

Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices109
Overview —Human Rights —Product Safety and Quality —Human Capital Management and Diversity, Equity, and Inclusion— continued
ESRS S1-4

Supplier Diversity and Inclusion

Supplier Diversity and Inclusion 2023 recognitions include:

Ford’s commitment to engaging minority businesses
dates back to 1968 when it initiated an inner-city supplierdevelopment program. This evolved into the official
Minority Business Development Program in 1978,
pioneering diversity in the U.S.

• WEConnect International, Top Corporations —Platinum Level

Today, Ford’s Supplier Diversity and Inclusion initiativeencompasses more than minority and women owned
businesses and has expanded to U.S. small businesses,
Veteran-owned businesses, enterprises led byindividuals with disabilities, and LGBTQ+ entrepreneurs.
The program also embraces global women-owned
businesses and Canadian Indigenous-owned enterprises.

• National Minority Supplier Development Council,
Corporation of the YearIn addition to fostering diversity within its Tier 1 supply
base, Ford advocates for diverse suppliers in its supply
chain procurement with the Tier 2 WIN — Widening
Inclusion Network initiatives. This expansion not only
diversifies sourcing options but also bolsters supply
chain resilience by promoting competition among
vendors, driving improved service and pricing.
Furthermore, Ford has supported strategic alliances andjoint ventures among diverse suppliers, enhancing theircapabilities and fostering growth. These collaborations
empower diverse businesses to enhance capacity,
acquire new skills, and fortify the supply chain locallyand regionally.
As an industry leader for over 40 years, Ford’s Supplier
Diversity and Inclusion program has consistently earned
recognition as a benchmark by esteemed certifying
organizations and advocacy partners in the U.S.,
underscoring our unwavering dedication to advancing
diversity and inclusion in procurement.

• Women’s Business Enterprise National Council,
Top 10 Global Champions in Supplier Diversity• Hispanic Association on Corporate Responsibility,
Procurement/Supplier Diversity 5 Star Rating
Capital Markets Diversity and Inclusion
Growing and developing a diverse banking group is
consistent with our commitment to supplier diversity
and inclusion. To further support this effort, Ford
partners with minority owned firms across several capital
market areas. During the 2023 fiscal year, this included
debt issuance underwriting, fixed income trading, cash
deposits, and supporting Ford’s corporate revolver.
In addition, Ford offers opportunities to help minorityowned banks expand hiring, internship programs, andtraining opportunities. These offerings can further enablebanks to broaden their capabilities and better serve thecommunities they support.

Human Capital and DEI —Employee Health and Safety —Customer Experience — Community Engagement

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Employee Health and Safety

Aspirational Goals

The health and safety of our employees
continues to be a top priority for Ford.
Promoting health and safety is acollective effort, and everyone at Ford
plays an essential role.

SafetySalient Human Rights Issues

Many of our internal standards go beyond applicablelaws and regulations to meet our commitment toprotecting the safety of our workforce in all our locations.
Health and Safety Policies
ESRS S1-1

Health/Safety

UN Sustainable Development Goals

We have set the sustainability aspirational goal to work
towards a future that is free from vehicle crashes andworkplace injuries.
Our commitment to employee health and safety isstated in our corporate Code of Conduct and internal
Workplace Health and Safety policy, We Are
Committed to a Safe and Healthy Working Environment.
Our We Are Committed to Protecting Human Rights andthe Environment policy also states that Ford commits toproviding a healthy and safe working environment.
According to our Code of Conduct, our operations andteam members are expected to:• Participate in all required safety training• Understand and follow our policies, processes,
and requirements• Plan and test responses to potential emergency
situations that may arise in our operations throughbusiness continuity planning• Work together to develop health and safety objectives
and adequate plans to continuously improve healthand safety at our locations• Speak up immediately if they see unsafe behavior
or hazardous conditions

Safety Performance
ESRS S1-2, ESRS S1-14

Any loss of life or serious injury in the workplace is
unacceptable and deeply regretted. Unfortunately,
there was one employee fatality globally in 2023.
Robust corrective actions have been implemented toprevent re-occurrence and reduce risk to our employees
and contractors working on site. We continue toencourage accurate and detailed reporting of safetyissues to reduce risk and improve workplace safety.
Our safety culture is based on our Health and Safety
Commitment, “Our most valuable asset is our people.
There can be no compromise.” It applies to all
employees, contractors, and visitors performing workat our locations globally.
Safety performance is managed by Senior Leadership
through Plant Operation Reviews, Manufacturing Safety
Councils, and Safety Process Review Board meetings.
Unions representing production workers, skilled trades,
and engineers play a crucial role in improving health andsafety for our employees and workplaces. We arecommitted to supporting these unions and collective
bargaining to ensure the health and safety of our union
represented employees and locations.
Designated members of management interact withlocal, national, and global union representatives to foster
the open communications and collaboration needed towork through contractual requirements. We partner with
our labor unions globally in supporting our health andsafety initiatives and continue to address issues as theyarise together.
Safe Conditions at New and Existing Facilities
ESRS S1-4

We rely on robust standards and procedures, along withdedicated resources in our manufacturing engineering
teams, to assure safe conditions and a safe workplaceat every Ford facility. Our engineered systems aredesigned and installed to provide safe operations forour employees.
As we build new plants and update existing facilities,
safety for high-risk construction contractors working
on Ford projects continues to be a priority. In 2023, we
held focus group and benchmarking discussions with
our key construction prime contractors to share bestpractices associated with pre-apprentice trades andthe abnormally higher injury rates within that group.
The outcome of the sessions included better alignment
on how those persons working in that space can bebetter protected, as well as updated language within
our own construction safety standards.
Safety Operating System
ESRS S1-4

As stated in our Workplace Health and Safety policy,
Ford is committed to fostering a safe and healthy
working environment in each of our locations worldwide.
The global Safety Operating System (SOS) allows forcomprehensive self-assessments of our corporate safety
standards in both our manufacturing and, beginning in
2024, non-manufacturing locations.
The SOS helps ensure the work environment within ourfacilities is safe for our employees and meets or exceeds
all regulatory and company requirements.
This internal tool validates each facility’s capability
and adherence to meet our safety requirements.
The SOS is designed to prevent and reduce incidents
by implementing different elements such as incident
investigation and analysis, training, risk assessment,
and emergency preparedness.
In 2023 we took another step in our journey tomodernize our safety and ergonomic processes globally.
A dashboard created by our Global Data Insight andAnalytics (GDIA) team provides global, regional,Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices111
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Employee Health and Safety— continued

manufacturing director, and plant specific selfassessment results. This tool, which is integrated with
the SOS, has simplified data review by allowing us toquickly identify issues by location, region, or globallyto ensure allocation of resources. Our GDIA partners
will continue to work with us and improve our SOS
dashboard to ensure the necessary data is mined fromthe new application globally, regionally, locally, by
question, etc.
Safe Observation Index
A leading indicator tool, the Safe Observation Index (SOI),
allows for the evaluation of tasks and physical conditionsin the workplace by team members. Corporate Safety
collaborated with our IT partners and operations todevelop the SOI mobile application, which allows ourteams to be more efficient and enable real-time data
entry with no redundant work.
The SOI mobile app will be launched globally in 2024 to
all manufacturing and non-manufacturing facilities andwill include the necessary translations by region for thequestion sets. It was a Key Performance Indicator (KPI) for
the Americas in 2023 and will be a global KPI in 2024.
In addition, we are partnering with GDIA to extract the
SOI data globally, regionally, and locally into a dashboard
for quick and easy review of factors including SOI
completion and areas of concern. This new feature will
improve overall reporting and eliminate the current
process of counting and maintaining Excel documents.
Reporting Tools
ESRS S1-4

We continue to utilize the Global Event Reporting Tool,
which enables us to quickly notify locations of significant
events which may affect their operations. Together with
the Corrective Action Issuance process, it provides aforum for Ford to communicate significant incidents
when they occur, and then proactively provide

instruction and guidance to our facilities throughImmediate and Permanent Corrective Actions. These
corrective actions require facilities to make changes
and improvements and implement controls to prevent
recurrence of these significant incidents.
Safety Training
ESRS S1-4

Safety training plays an essential role in our efforts
to achieve a future that is free from workplace injuries.
Our safety training programs are best in class in theautomotive industry. A safety training matrix lists all
safety topics, the frequency for each training course,
the personnel that are required to complete training,
and who manages the training and training format.
We conducted regular communications and promotions
on key safety issues to promote occupational health andsafety. We also shared safety best practices via multiindustry groups, within and outside the automotive
sector, and collaborated to address common issues.
Human-centered Design for Health,
Safety, and Wellness
ESRS S1-4

Human-centered design can transform the auto
industry’s approach to manufacturing. By focusing on
environmental stewardship and social equity, we canplay a leading role. We aim to address the occupational
demands specific to manufacturing and improve theworking conditions and health of our essential workers
through the following five priorities:
Health Equity
Everyone has a fair and just opportunity to be as healthy
as possible.
Learning and Growth
Encourage exploration and development of soft skills
and lifelong learning.

Engagement and Choice
Empower choice of how to work, rest, and play whenpossible and appropriate.
Culture and Understanding
Advocate work-life integration and understandingof individual differences.
Environmental Impact
Align our operations to our organizational values.
For example, the Corporate Ergonomics team completed
several rounds of lab and production-based Hand-Arm
Vibration testing of Electronic Pulse (E-Pulse) tools in
response to a rapidly growing interest from production
teams. E-Pulse tools can accurately reach nominal
torques without generating the torque reaction forces(tool kick) of traditional DC tooling. However, whenpotentially hazardous hand-arm vibration exposures
were identified during testing, the cross-functional teamresponded by creating data-driven guidelines for safe
implementation before unstandardized deployments
created unnecessary ergonomic risk to our operators.
Safety in Battery Manufacturing
ESRS S1-4

Safety is a top priority as we continue to produce EVs
at new sites and existing locations. The Battery Electric
Safety Core Team shares knowledge with engineering,product development and manufacturing locations.
This team reviews training requirements, emergency
response procedures, best practices, and internal andexternal incidents to better understand and prepare
our workforce.
Our Medical and Industrial Hygiene and Toxicology
teams support new processes globally and review
new materials for manufacturing battery electric vehicles.
This will help ensure that we anticipate, identify, analyze,
and measure potential occupational exposures andmonitor our employees as needed.

Prioritizing Safety at Ford Thailand Manufacturing
Ford has received global recognition for its safety
efforts. Ford Thailand Manufacturing (FTM) andAutoAlliance Thailand (AAT) were honored at anational level for their outstanding commitment toprioritizing safety, occupational health, and workplaceenvironment in their business model for 2023.
FTM and AAT earned the Excellent Award for Safety,
Occupational Health, and Work Environment,
demonstrating the dedication of FTM’s employees
and business partners to upholding high safety
standards in the workplace.
Their collective efforts have led to exceptional
operational performance and safety statistics, withno major accidents reported over the past decade.
This was the tenth and seventh years respectively
that FTM and AAT earned this honor.

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Employee Health and Safety— continued

We have updated safety measures at BlueOval City in
Tennessee and Ion Park Michigan. Emergency Response
Plans were updated to include the use of fire blankets
for thermal runaway events associated with battery
electric vehicles. In addition, we initiated a Process
Safety Management program for chemicals used at the
Kentucky and Tennessee battery manufacturing facilities
and safe start-up at research activities at the Ford Ion
Park facility.
Proactive Approach to Emergency Response
ESRS S1-4

Quick and strategic responses to emergency situations
and natural disasters require comprehensive planning,which in turn requires testing and drills. With this inmind, we collaborated with multiple jurisdictions onan active assailant exercise at the Kentucky Truck Plant
in June 2023.
In Dearborn, 20 Emergency Response Teams (ERT) fromacross the company met for a two-day competition in
May 2023. ERT members are volunteers who are thefirst to respond to an emergency on-site at the plant.
The team members undergo many hours of training anduse their skills to assist in an emergency until first
responders arrive.
Employee and Leadership Support
ESRS S1-4

Our global, holistic approach to employee support andcare encompasses the physical, mental, and financial
wellbeing needs of our employees. Foundational to ouremployee care philosophy is providing a broad array ofbenefits and helping employees understand how to
optimize those benefits to meet their individual needs
and goals. We are committed to creating an environment
where employees and People Leaders care for andsupport each other as we deliver Ford+.

Ford provides benefits to help employees optimize theirpersonal wellbeing. Examples include:• Ford partners with Lyra to provide U.S. salaried
employees and their eligible family members withan enhanced mental health benefit. This includes
expanded access to evidence-based therapy andcoaching, as well as additional tools and resources.
As a result, 88% of those who participated in therapy
or coaching reported they improved or recovered.
• In partnership with the UAW, we continued theCampaign of Hope in our manufacturing plants,
with the goal of reducing the stigma associatedwith seeking help for addiction and mental health.
In addition, this campaign directed employees to the
behavioral health benefits provided by the company.
• The Ford Global Mindfulness Club offers weekly
mindfulness and meditation sessions in nine countries
and six different languages, as well as an annual
Mindfulness Week.
• Ford partners with meQuilibrium to provide U.S.
salaried employees and their eligible family memberswith a personal resilience building and stressmanagement program as part of their benefits.
• Ford partners with Edelman Financial Engines toprovide U.S. employees (and retirees) with financial
wellbeing benefits including financial counseling,
comprehensive digital planning tools, expert led
webinars, and more. In addition, Ford partners with
Tuition.io to provide U.S. salaried active employees an
educational financial wellbeing platform designed tohelp strategize and optimize student loan debt
repayment.

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Customer Experienceand Responsible Marketing

UN Sustainable Development Goals
DECENT WORK AND

8 ECONOMIC GROWTH

Every day, Ford employees and dealers
listen to customers and dream, design,
test, and manufacture vehicles andservices to meet their needs. The goal
is not to simply meet expectations,but to go above and beyond to deliverproducts and services that customers
can’t live without.
Policies Related to Customers
ESRS S4-1

Our commitment to customer engagement is written into
our corporate Code of Conduct which states, “We seek toengage our customers in new and inclusive ways to get
deeper knowledge of their wants and needs.”
Engaging With Our Customers
ESRS S4-2

Ford provides multiple channels for customers to engage
with the company directly. Customers engage with thecompany in our dealerships, on our websites and social
media, at our contact centers, and inside our vehicles.
We invite them to provide their sentiment on touchpoint
satisfaction and their likelihood to advocate for the brandas they proceed along the customer experience journey.
Our internal customer experience measurement platform
provides actionable insights to our dealers andtouchpoint owners to drive enhanced experiences.
Managing Our Relationship with Customers
ESRS S4-4

We have increased our commitment to enhancing theownership experience. Ford customers in the U.S. now
can enjoy complimentary Pickup & Delivery as well as
expanded mobile services from participating dealers.
With Pickup & Delivery, the customer’s preferred Forddealer will come to their home or place of business, pickup their vehicle and return it when the repair has been
completed. This adds convenience and choice to theservice experience while minimizing downtime. For light
repairs and routine maintenance, a Mobile Service vancan be dispatched with a trained technician to perform
service at an eligible location of the customer’s choice.
The Mobile Service van fleet and mobile repair orderbusiness continues to grow at a rapid pace as we haveadded over 2,300 mobile service units in 2023 — a 278%
increase over 2022. This was driven in part by strong
growth in our mobile repair orders, which are up 280%
for 2023. With over 3,100 launched Mobile Service units,
Ford has the largest Mobile Service fleet in the U.S.
Globally, the number of Ford Pro Mobile service vans
deployed doubled between 2022 and 2023.
Our remote services continue to be popular withcustomers. We delivered over 2.0 million remoteexperiences in 2023, an increase of 335% over 2022.
And customers are responding positively. The Net
Promoter Score (NPS) on mobile service repair orderoutperforms overall service scores by over 12 percentage
points. To help manage the increased demand, we
expanded our Mobile Service program to include Escape
SUVs, allowing customers at its smaller-volume dealersmore convenient options for vehicle service.
Loyalty and Membership Rewards
Our FordPass Rewards loyalty program lets U.S.
customers earn and redeem Points for things like
service, accessories, Connected Services, and vehicle
purchases. The FordPass Rewards member base in the
U.S. continues to grow with 2 million+ new members
in 2023, bringing the current member count to over
13 million. Program expansion has unlocked many new
ways to earn and redeem Points throughout the Ford
ecosystem, including at accessories.ford.com, for selectConnected Services, SiriusXM subscriptions and at events
such as the Bronco Off-Roadeo.

Raising Concerns via Global Contact Centers
ESRS S4-3

Approximately 3,000 agents in our Global Contact
Center are dedicated to helping our customers anddealers with any questions or concerns related to Ford or
Lincoln products and services. We offer a variety of ways
to engage with the Global Contact Center, capturing all
inbound and outbound contacts via phone, chat, SMS,Apple Business Chat, email, postal mail, and our website.
In addition, we actively engage in selected social media
forums and directly engage with customers who flagissues and concerns on key social media platforms.
Our focus on customer experience and product safety
and quality is showing results. We use internal metrics
to help monitor inquiries raised and how they are
addressed or resolved. For example, cases which cannot
be solved during the initial contact with the Global
Contact Center and are open for more than 24 hours areclassified as Concern Cases. The quality of resolution ofthese cases is known as the Concern Net Promoter Scores(NPS). In 2023, Concern NPS improved from +7 to +26.
During the same time period, Customer Experience
increased from 60% to 73% and Concern Resolution
grew from 74% to 81%.
A Proactive Customer Support initiative in 2023
contributed to customer experience improvements.
The Global Contact Centers proactively reached out toover 612,000 customers in 2023, representing over 10%of the total annual inbound contact volume. This is incontrast to 329,000 proactive contacts in 2022. We havealso put more emphasis on customer self-help, morethan doubling the monthly self-help interactions to over4 million with a task success in 2023 of 61%, starting at
49% in January 2023 and ending the year at 71% task
success in December 2023.

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Customer Experience and Responsible Marketing— continued

Customer Feedback and Process to Remediate
Negative Impacts
ESRS S4-4

All Contact Centers in all regions (excluding China)
have been moved to One CX, our new experiencemeasurement platform. Covering all contact channels,
and using globally consistent surveys, the new platform
serves as the consolidated resource for customer
feedback. Consistency in surveying and reporting
contributed to the strong customer experience (CX)
Metrics improvements in 2023 thanks to global bestpractice sharing.
The Global Contact Centers actively use survey
feedback via a process called “closed loop.” Team leads,
supervisors, and managers analyze customer feedback,focusing on any customer rating below “excellent.” They
reopen cases if required, provide feedback to customers,
and review improvement opportunities with agents.
To complement the CX Surveys, we are launching a
new AI-driven Call Analytics tool which will provide key
insights into the customer/agent interactions, helping
to provide very specific customer feedback to ProductDevelopment and Quality. Not only will this tool deliver
self-help and knowledge-base gaps for the team toaddress, but it will also provide deeper insight into agent
behavior, driving agent training opportunities.
We are in the process of building a completely newcase management system for our agents to capture all
relevant customer, vehicle and service details, and notes
related to a particular case. The new system, which weare piloting in Houston, TX, is called CX-Hub andintegrates all systems an agent needs into one system.
Consequently, the agent can access all the required
information and systems to solve a customer problem
within the CX-Hub. Not only does the system allow theagent to serve multiple contact channels at the sametime, but the agent has the ability to switch thecommunications channel during an interaction with acustomer. For example, a customer that has initiatedcontact via chat can be seamlessly moved to a phone
conversation without the agent having to stop theinteraction and open a new case. This omnichannel
capability, coupled with a high degree of automation,
will streamline the process and allow agents to focus
on the customer.
Inflation Reduction Act
In 2023, all three of our electric vehicles, as well as ourplug-in hybrids, were eligible for Inflation Reduction Act
federal tax credits of up to $7,500. In order to qualify forthe consumer incentive, among other requirements, thevehicle MSRP be at or below $80,000, and the purchaser
must meet certain income limits. Every one of our EVs
and plug-in hybrids was assembled in North America,
meeting a requirement for the consumer tax incentive.
Going forward, Ford will continue to maximize eligibility
for federal tax credits for our customers.
Commercial customers of Ford E-Transit™, F-150®
Lightning™ and other Ford commercial EVs — as well
as Ford Pro Charging™ equipment — may qualify for IRA
tax credits of up to $7,500 per electric vehicle purchased.
Ford Pro is working to help give electric vehicle
customers no-cost information to learn about IRA tax
credits for which they may qualify.
We also anticipate that the EU Green Deal will havea positive impact for our customers and the green
electrification of mobility in the covered regions.
We expect European mandates for more EV charging
infrastructure will support European customers inmigrating to fully electric vehicles.
Dealer Engagement and Improvements
With over 8,000 Ford dealers around the world, we
have the largest physical support network of any brandbroadly distributed across North America and Europe.

We are in the process of accelerating the transformationof our dealers into a competitive differentiator for thecompany’s businesses across Ford Blue, Ford Model e,
Ford Pro, and Lincoln. With that in mind, in 2023, we
named Elena Ford as chief dealer engagement officer.
Ford and dealers around the globe will collaborate toincrease the consistency and efficiency of our global
dealer council’s governance, improve retail facilities,
modernize training and development, become morediverse, further raise community engagement, andamplify best practices.
Starting in 2024, our dealers will begin to select an areaof focus. Some will invest in EVs and become Model e
dealers. Others will specialize with Ford Blue or Ford Pro.
Some dealerships will go “all-in” across Ford Blue, Ford
Pro, and Ford Model e.
In an effort to improve our buying experience, beginningin 2024, Model e customers will have flexible purchase
options, both online and in the dealership, withtransparent pricing that they don’t have to haggle over,and remote vehicle delivery, as well as later pickup.
These better experiences make customers more likely
to build a relationship and choose the same dealer again.
We want each of our Model e dealers to be a trusted
partner for new EV customers who want to see and learn
about these new great products.
Dealer Training
The Ford Guest Experience is an integrated approach to
Dealer Training, Culture, Immersion, and Implementationthat drives Guest Centric change. Since the US program
launch in 2022, 1,200 Global Dealers have been to in-person
Immersion events, with an additional 1,330 targeted in
2024. Additional FGE activities have also occurred in nonimmersion form, making the Ford Guest Experience a
flexible, yet integral foundation for a positive Guest
Experience around the Globe.

The Ford Guest Experience is a way of doing businessto ensure we meet and exceed dealer and guest needs
both today and in the future. It’s designed to address
key drivers of sales and service satisfaction, and tobuild loyalty, trust, and amazing relationships with ourguests. At its core, FGE is a dealer “mindset” shift froma transactional to a guest relationship. By treating
guests like family and creating memorable experiences,
guests are able to do business with dealers on theirterms, throughout their entire ownership cycle.
Ford Guest Experience topics vary depending on thelocation of the training, but broadly focuses on thehuman elements of both Sales and Service: Respecting
the guests’ time and supporting the feeling that Ford“has their back” throughout the ownership experience.
This is delivered by initiatives around the globe suchas Mobile Service, Pick Up & Delivery, Connected Vehicle
data, Diversity, Equity & Inclusion, Talent Management,
Electrification, and more. The training helps exemplify
the need to make experiences fit the unique needs of theguest so that they will never forget how our experience
made them feel. It is Ford and the dealer’s task to deliver“wow” moments at each interaction.
Dealers involved in the program are encouraged to usean action plan that outlines different commitments theywant to make in their store to drive effective and longterm change. When they complete a task, they areencouraged to make another goal in order to continue
their Guest growth process.
Reimagining the Customer Journey in Europe
We are taking customer experiences in Europe to newlevels, integrating processes from discovery to servicing
for seamless simplicity, starting with electric vehicles.
In May 2023, we unveiled a new vision to makediscovering, testing, buying, and owning Ford products
not only simpler, but also more satisfying — startingwith Ford electric vehicles.

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In partnership with our retail partners across Europe,
we are entirely reimagining the customer journey to
EV ownership, with online access and touchpoints
available every step of the way. The new approach
introduces online showrooms and virtual test drives
for exploring products and services. Transparent pricing
means no surprises. And customers will be able topersonalize their vehicle handover, access charging,
and arrange pickup and delivery for servicing witha few clicks on their smartphone.

We are committed to ensuring that our marketing,product offerings, and services meet the needs ofour diverse current and future customers. We do not
specifically target vulnerable consumers and users.
Our marketing is aimed at those intending to purchasevehicles, with demographics and needs differing
depending on which product and/or service we areadvertising. While mass market advertising will reacha broad population group, ad placements are basedon our target demographics and needs.

By making it easier for greater numbers of customers
to go electric, our new customer experience will support
our commitments to achieving carbon neutrality for our
European operations, logistics, and direct suppliers by
2035, and building a more sustainable, inclusive, andequitable transportation future.

We make a conscious effort to work with a diverse groupof creative professionals to develop and produce ourcontent across multiple channels. In addition to engaging
content creators from underrepresented groups, we
strive to offer training and mentorship through themarketing process.

We are also tackling the single most frustrating factor
for car-buyers according to the New Car Buyers Survey —uncertainty about when their new car will arrive. Clear
communication, online visibility of the order status,
and the ability to book delivery slots online will
help customers plan ahead and put time back on
their calendars.

We follow industry standards for responsible marketing
practices including customer privacy, email contact rules,
etc., and always assure that all of our marketing work
is routinely monitored and reviewed for legality andcompliance. We strive to apply best practices insustainability as we produce our marketing assets.

The new Ford customer experience is designed tocontinue making life easier for owners even after
purchase. Ongoing support includes access to one ofEurope’s largest charging networks, with more than
500,000 chargers, at-home charging solutions, as well as
pick-up and delivery for servicing that can be scheduled
online, with ultra-convenient fast-track options.
Responsible Marketing
S4 SBM-3

Representing the diversity and perspective of ourcustomer base in our marketing materials is important
to us.

Employee Health and Safety —Customer Experience — Community Engagement

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Socioeconomic Contribution andCommunity Engagement

UN Sustainable Development Goals

Communities where we live and work,
and where we partner with businesses,
schools, nonprofit service organizations,and government organizations are
critical to our future.
The Ford FundESRS S3-4

As the philanthropic arm of Ford, the mission of the Ford
Motor Company Fund is to partner with communities tohelp move people forward and upward. We partner with
communities where Ford has roots — spanning morethan 40 countries around the globe — working on the
ground with nonprofits to co-create and invest in
solutions that meet unique community needs.
In 2023, Ford and Ford Fund invested more than
$73.7 million in philanthropic contributions to help
strengthen communities and build a better world.
Since 1949, we have invested more than $2.3 billion
in community-focused initiatives around the globe.
Our partnerships and programming are focused on
the following areas:ó Essential Services: Expanding access to food,transportation, disaster relief, and other criticalservices that allow communities to thriveó Education for the future of work: Building pathways
to education for careers in mobility, technology, andthe tradesó Entrepreneurship: Connecting aspiring entrepreneurs
with capital, mentorship, and training to diversify thepipeline of new founders and expand opportunities
for business ownershipó Mobility: Investing in solutions that use transportationand technology to connect people with the resourcesand opportunities they need to move forward

Across our work, we empower Ford employees to give backto the communities where they live and work. Employee
volunteers help fuel our mission by bringing their unique
skills and heart for service to volunteering with ourcommunity partners. In 2023, employees filled more than
7,000 volunteer opportunities and spent over 55,000 hours
volunteering in community service projects throughout theyear. During Global Caring Month in September, employees
planned and participated in more than 100 volunteer
projects in 31 countries, addressing issues they care about
and making a difference in their local communities.
Charitable Contributions Made by Ford and Ford Fund
Total contributions$73.7M

Total given to disaster relief$1.8M

Volunteer hours in reporting year

>55,000

Disaster Relief
As the rate of floods, tornadoes, hurricanes, andwildfires continues to increase, Ford and The Ford
Fund, are expanding their partnership with Team
Rubicon — a veteran-led humanitarian organizationthat operates in nearly every county in the UnitedStates. According to studies, 90% of U.S. counties
experienced a federal climate disaster between
2011-2021.46
Team Rubicon Powered by Ford is a new $5.8 million
disaster relief initiative that includes the donationof a fleet of 17 vehicles, a $2.5 million philanthropic
investment and a commitment to deploying
employee volunteers — all of which greatly expands
Team Rubicon’s ability to provide no-cost services
to vulnerable communities in the wake of a disaster.

Expanding Access to Food
More than 34 million Americans, including 9 million
children experience food insecurity in the U.S. today.
During September’s Hunger Action Month, Ford Fundannounced partnerships with local food banks, DoorDash
and Feeding America to help individuals and families
facing hunger access the food they need through mobile
delivery. By investing in mobility solutions, Ford Fundand its partners are helping bridge the gap between
access to transportation and food.

Through the expanded partnership, Ford volunteers
joined Team Rubicon relief projects in Detroit,
Houston, and Florida last year. And in August, after
Hurricane Idalia damaged thousands of homes andbusinesses in Florida, Team Rubicon was on the
ground for more than three months. During the
deployment, a team of Ford employees joined Team
Rubicon’s “Greyshirt volunteers,” supporting theirefforts to remove debris, clear trees, and help
residents get back on their feet.

Working with local food banks in Detroit, Louisville,
Memphis, and West Tennessee, Ford Fund is broadening
access to meals using home delivery in collaboration
with DoorDash’s Project DASH. Door Dash will deliver
fresh food and produce from participating food banks
to transportation-limited people and families.

Ford’s disaster relief efforts extend far beyond the
U.S. For example, when a devastating earthquake
struck Turkey in March 2023, Ford Fund joined forces
with Ford Otosan to mobilize hundreds of employee
volunteers. Ford Fund also coordinated relief efforts
that included vehicle donations, emergency searchand-rescue operations, financial contributions, andin-kind donations that provided critically needed
supplies and essentials.

Ford Fund also committed $1.25 million in grants to
Feeding America food banks in Ford’s home-basecommunities. The grants will enable food banks in
upstate New York, Illinois, Ohio, Southeast Michigan,Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices117
Overview —Human Rights — Product Safety and Quality — Human Capital and DEI —Employee Health and Safety —Customer Experience — Community Engagement

Socioeconomic Contribution and Community Engagement— continued

Missouri, Kentucky, Tennessee, Texas, and South Florida
to create and scale innovative mobility solutions that
address food insecurities, such as access to fresh foodin areas where it is otherwise unavailable.
Education and Workforce Development
Around the world, Ford Fund partnerships andprogramming expand access to scholarships, technicaltraining, and career readiness programs that prepare
the next generation of leaders for careers in automotive
and tech.
In South America, the Ford Enter IT training andcertification program is helping remove barriers to
education while addressing the growing demand for IT
professionals. The program launched in Brazil in 2022
and expanded to Argentina, Chile, Columbia, and Peru
in 2023.
In the U.S., a new $1 million Ford Auto Tech Scholarshipprogram backed by Ford Fund and Ford dealers is
helping address the increasing demand for highly skilledautomotive technicians across the industry and reducing
barriers for students pursuing careers in automotive
service and technology. The program is open to current
and future students enrolled in post-secondary auto
or auto and diesel technician training programs in the
Greater Atlanta, Chicago, Dallas, and Phoenix areas.
The program’s focus on STEM skills fuels upward
professional and economic mobility as the industry
moves toward electrification.
In honor of Ford South Africa’s centennial, Ford Fund ispartnering with Ford South Africa to transform shipping
containers into 100 math and science labs for primaryschools across the country. In addition, 100 scholarships
will be awarded to provide young adults from underresourced communities with opportunities for STEMrelated careers and apprenticeship programs within
automotive and advanced manufacturing industries.

Bridging the Transportation Gap
Through a $5 million investment and partnerships
with over a dozen nonprofit organizations, Ford Fund is
helping bridge the gap between transportation-limited
communities and access to resources and services
including healthcare and fresh food. Some of ourpartners include United Way of Southeastern Michigan’s“Ride United” program and Foenix — Mobility Rising,a nonprofit focused on removing transportation barriersin under-resourced communities. Our partnership with
Vision to Learn provides vision screening and eye carefor students in Northeast Ohio. While a partnershipwith Wayne Health provides pharmacy support throughmobile prescriptions and refills for Detroit residents.
Building Community in BlueOval City
In response to meetings with nonprofit leaders andcommunity organizations in the counties surrounding
BlueOval City in Tennessee, Ford Fund launched acapital grants program in the fall of 2022 to help
strengthen civic spaces and services in the region.
Local municipalities and organizations were encouraged
to apply and propose improvements based on theirunique expertise and understanding of community needs.
After reviewing more than 200 applications, 17organizations were selected to receive a total of nearly$1.2 million in 2023. Grantees were selected from all six
counties surrounding the worksite and their proposals
address a range of civic needs — from public safety,
beautification, education, and workforce development
to essential services such as fresh food delivery tounderserved communities.
Creating Opportunities on a Global ScaleESRS S3-4

Around the globe, Ford continues to make a differencein the communities where our employees and partners
work and live. For example, Ford Thailand collaborated
with Thai-Austrian (Sattahip) Technical College in an

apprenticeship program called “Building for Thailand’s
Future” to develop the skills and technical capabilityof mechanic and mechatronics workforce in Thailand.
Scholarship winners receive academic training inclassroom as well as on-the-job training and knowledge
sharing from manufacturing experts and Forddealerships. Over the past six years, Ford has granted
118 scholarships with a total value of over THB 5,984,000.
FBS India actively promotes inclusion as a part of its core
Corporate Social Responsibility (CSR) objectives andengages with diverse community groups through various
initiatives. The Right Wheelchair Project provided nearly
120 people with disabilities with customized wheelchairsin 2023. And Project Mobility offered almost 500 prothesis
to underserved people with spinal cord injuries. FBS India’s
Happy School project supported 280 intellectually disabledchildren and slow learners in six schools through a series
of interventions that include creating individual educationplans for the children, capacity building of parents andteachers, and deployment of special educators.
The Middle East team conducted CSR initiatives in 2023,
ranging from celebrating Emirati Women’s Day tosocializing with the elderly and children with special
needs and helping them in their daily routines, to hosting
Henry Ford Entrepreneurship Academy sessions at Dubai
Women’s College. Our Middle East team has also
contributed to buy and pack toys, books, and off-theshelf medicines to children who are battling cancer at
Children’s Cancer Center-Lebanon.
Ford Vietnam launched a project to provide job
opportunities for young woman in the highland regions
and reduce early marriage in these areas. Specifically,
the project’s fashion teachers, students, and designers
will teach young H’Mong women how to use traditional
materials and local traditional crafts to create highapplicable and high-value products that can be
introduced into practical life.

Ford New Zealand supported recovery efforts withfunding and vehicle donations and loans when Cyclone
Gabrielle struck New Zealand in 2023.
Ford South Korea continued its partnership with the Ford
Fund to support conservation and environmental grants
to local individual and groups that have an idea forprotecting the environment.
Ford Philippines partnered with its Ford dealer network,
Motolite Ramcar Battery and Philippine Business forSocial Progress (PBSP) to advocate for the proper
disposal and legitimate recycling of used lead acidbatteries (ULABs). Motolite donates to PBSP an amountfor every battery collected from each dealer group andthe fund will be used for the rehabilitation of watersheds.
The fund, which is augmented by a $25,000 grant from
Ford Fund, will be used for the rehabilitation of the
Marikina and Buhisan watersheds. Another $25,000 grant
is in the pipeline to support the program in 2023-2024.

Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices118
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Tech for a Cause:

Computers forKids Making a
Difference

Feng Zhu, Oakville environmental
control, helps coordinate the rushof employees as they fill boxes
full of cables, printers, monitors,
tablets, and old computers. They
begin to separate the collections
taken in the nearby parking lot of
the Oakville Assembly plant inWindsor, Ontario, for Earth Day,
for a charitable organization
called “Computers for Kids.”
Their event lasted two days.

Left: Laptops

collected at
Oakville Assembly
Plant, 2023

“The amount we got in those
two days is remarkable, so many
computers and laptops. It’s great,”said Zhu.

The organization’s mission is torecycle former e-waste usedpersonally and in the plant, andturn it into workable computers andprograms to serve underprivilegedchildren in the communities where
the plants preside. At the Essex
Engine Plant and Windsor Engine
Plant, stationary bins are at theplant’s entrances all year.

Computers For Kids, which began
in 2004, is a registered charity
serving Windsor and Essex Counties
in Ontario and is associated withseveral Ford plants, including
Oakville, Essex Engine Plant, andWindsor Engine Plant (Annex).
Ford began working with thecharity about 15 years ago.

“If it’s cell phones or laptops ortablets, they see how current it is,
and if it’s current enough to warrant
being issued or repaired, they havepeople right on site that do therepairs to them, and they makeany repairs they need,” said Chris
Hodare, Ford environment andUnifor representative.

Ford partners with this charity
because it further practices zerowaste to landfill goals andchampions a sustainability firstmindset, while supporting the
local community. Computers
for Kids targets several issues:
e-waste contains environmental
contaminants such as lead,
cadmium, beryllium, and brominatedflame retardants. These are often
thrown into landfills, where they
seep into the groundwater. They
also contain valuable materials,
including copper, steel, plastics,
and other minerals that can berecycled back to charity.
“With anything they can’t makerepairs to, they strip them down

for the precious metals inside andthen use that also to support the
program,” said Hodare. According
to Computers for Kids, if a computeris not repairable, they still get 66%of their funding from precious
metals that are recycled back into
the project used to fund summer
and after-school programs.
Local 200 retirees from any of theplants and high school students
working towards their 40 hours
of community service can volunteer
at the charity too.
So far, the program has recycled
over 2000 computers and provided
more than 40 summer and afterschool programs for children.

Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices119
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Socioeconomic Contribution and Community Engagement— continued

Community Engagement Policies
S3 SBM-3, ESRS S3-1

Our human rights policy commitments extend to affected
communities. We do not engage in unlawful eviction or
taking of land, forests, and waters securing the livelihoodof human beings. We strive to minimize negative
impacts, on both human beings and the environment,
while striving for positive impact. In support of this goal,
we have instituted to a variety of initiatives to mimic
ecosystem performance, eliminate waste, and divert
waste from landfill to products, reduce fresh water
usage, reduce single-use plastic, and support safe
and accessible drinking water in our manufacturing
operations and communities.

In Environment on p.44

Supporting worthy community institutions, programs,
and endeavours is woven into the fabric of our culture.
We take pride in our role as an active and valuable
member of the communities in which we operate.
Not only do we encourage our people to be involvedin community initiatives and contribute to worthy
charitable, educational, and civic causes, but Ford
supports nonprofit organizations focused on education,community development, social services, safe/smart
mobility, and civic/cultural initiatives. We follow the
global approval process, as well as any local
requirements set up by operations for contributions
or other support provided by Ford.

In The Ford Fund on p.116

We integrate due diligence findings in our businessplanning and decision making, considering theenvironment, human rights, public health, indigenous
populations, and the communities where we operate.
We engage constructively with suppliers, local

communities, governments, non-governmentalorganizations, and other stakeholders, including
Indigenous Peoples.
We strive to prevent and mitigate human rights andenvironmental impacts. To accomplish these goals,
we provide appropriate remedies if non-complianceoccurs and bring any violation to an end.
We report suspected violations of our We Are Committed
to Protecting Human Rights and the Environment policy.
Ford takes reports seriously. Reporting inappropriate
behavior helps us maintain a positive culture andcompliance with the law and allows us to educate andcounsel. Information on how to report grievances ispresented in our Code of Conduct which is available
on our corporate website. External stakeholders mayreport by emailing SpeakUp@ford.com. Violations of
our We Are Committed to Protecting Human Rights andthe Environment policy may lead to disciplinary action
up to and including termination.
In addition, regular interactions with community
stakeholders and elected officials in our manufacturingcommunities also provide opportunities to learn of any
impacts. We review any impacts received through thesechannels with cross-functional experts to determine
what mitigation steps are required.
Engaging with Communities
ESRS S3-2

In addition to the Ford Fund activities outlined earlier
in this chapter, Ford is an active member of thecommunities in which we do business. We engage
with the community through business organization
memberships, regular interactions with government
officials at all levels of government that represent thefacility, as well as presence at community events andphilanthropic endeavors.

Ford tracks community sentiment through various forms
including: social media posts; surveys; listening sessions;media articles; and discussions with government andcommunity leaders on what they are hearing.
Community members reach out to Ford throughcontact with our plant leadership as well as throughour dealers and government officials. In addition,
residents can contact Ford directly through our corporatewebsite or through our on the ground representatives
in the community.
When Ford has a change in its manufacturing footprintthat may impact residents, it will host listening sessions
and provide updates on our website.
Managing impacts in our communities
ESRS S3-3

There have been limited incidents in communities
that Ford has remedied by working in partnershipwith government agencies and the community.
Ford has a 120+ year history of operating safely incommunities across the world. There is no evidence
that these communities are at a greater risk of harm.
We meet or exceed all air emissions regulations for our
manufacturing facilities and received an A score rating
for water security from CDP.
If a material impact is identified, Ford works closely withthe community and government officials and agencies todetermine the appropriate remedy. The remedy usuallyconsists of a combination of mitigating any negative
impacts and compensating those affected throughvarious channels.
We take resident concerns very seriously as Ford
prides ourself on being a good neighbor as one of ourcompany’s core values. Ford will continue to listen andrespond and work in good faith toward an acceptableoutcome for all stakeholders involved.

Various processes are used to manage impacts
depending on their scope and scale. If it is a perceived
or potential negative impact, Ford will proactively
engage with the community through resident town
halls, listening sessions with government andcommunity leaders, civic groups, educators, nonprofits,environmental groups, etc., depending on the potential
issue. These sessions allow Ford to provide additional
information to address any questions or concerns.
In addition, obtaining community feedback on concerns
allows Ford to assess what mitigation steps, if any,
are needed.
Tracking our Performance
Our targets include improved community sentiment,
ensuring community investment is made in all
manufacturing locations and supporting ongoingengagement by hosting regular town halls andresponding to resident concerns.

Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices120
Overview — Risk Factors — Supply Chain Management — Business Conduct — Data Protection, Privacy, and Cyber Security — Reporting Scope and Data Assurance

GovernanceIn this section:
121 — Governance Overview
122 — Risk Factors
125 — Supply Chain Management
126 — Business Conduct
126 — Transparency, Business Ethics,
and Integrity
127 — Accountable and Inclusive
Governance
131 — Government Regulations,
Policy, and Engagement
132 — Data Protection, Privacy, andCyber Security
133 — Reporting Scope, Boundaries,
and Data AssuranceFundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices121
Overview —Risk Factors —Supply Chain Management —Business Conduct —Data Protection, Privacy, and Cyber Security —Reporting Scope and Data Assurance

Governance
Overview
Our corporate officers and Board of Directors are dedicated to serving the interestsof our shareholders and creating long-term value. Guided by our purpose, history,
and business strategy, our officers and directors provide expert oversight and guidance
to ensure we are well-positioned to respond to the changing global businessenvironment. Our culture of compliance and ethics is formalized in company policies,
reinforced by leadership, and driven by our purpose to help to build a better world.

Governance PracticeData Protection, Privacy, and Security

Our corporate governance framework:• Data privacy, safety, and security play a key role
as we develop innovative products and deliver
stellar services• Ensures our business manages risk and operates
in a transparent and accountable way• Enables us to monitor the changing global businessenvironment to inform and adjust our strategies
as needed• Creates accountability for setting, tracking, andreporting progress against our goals, objectives,
revenue, and sustainability targets• Helps ensure we implement sustainability-related
risk assessments, planning, strategy implementation,and performance reviews consistently acrossthe organization

Supply Chain Management• We are cultivating and maintaining ethical andmutually beneficial supplier relationships rooted
in trust and transparency

UN Sustainable Development Goals
We are contributing to the following UN
Sustainable Development Goals through actions
outlined in this chapter:
8 DECENT WORK AND ECONOMIC GROWTH

10 REDUCES INEQUALITIES

11 SUSTAINABLE CITIES AND COMMUNITIESFundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices122
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Risk Factors
ESRS 2 SBM-3

Significant risk factors tied to our material sustainability
topics and applicable to our business are outlined below.
More information and detail on each of these risk factors
can be found in our annual 10-K filing. Information on
how we are addressing these risks can be foundthroughout this report.
Read MoreIn the Form 10-K

Operational Risks
Appealing and Secure Digital Services
Failure to develop and deploy secure digital services
that appeal to customers could have a negative impact
on Ford’s business. A growing part of our businessinvolves connectivity, digital and physical services,
and integrated software services, and we are devoting
significant resources to develop this business. If wefail to generate sufficient demand for our integrated
software and digital services or if customers do not opt
to activate the modems in our vehicles, which would
hinder our ability to offer and sell such services, we may
not grow revenue in line with the costs we are investingor achieve profitability on our increasingly digitallyconnected products.
Read Moreextended droughts, and extreme temperatures. In
addition, in the event a weather-related event limits theability of freight carriers to deliver components and othermaterials from suppliers to us or logistics providers totransport our vehicles for an extended period of time,
it may increase our costs and delay or otherwise impact
both our production operations and customers’ ability
to receive our vehicles.

to produce higher volumes of electric vehicles isdependent upon the availability of raw materials andother components necessary for the production ofbatteries, e.g., lithium, cobalt, nickel, graphite, andmanganese, among others.

Ford is addressing its impact on climate change alignedwith the United Nations Framework Convention on
Climate Change (Paris Agreement) by working to reduce
our carbon footprint over time across our vehicles,
operations, and supply chain. We have announced
interim emissions targets approved by the Science Based
Targets initiative (SBTi) and made other statements aboutsimilar initiatives, e.g., our expected electric vehicle
volumes in future years. Achievement of these initiatives
will require significant investments and the implementationof new processes; however, there is no assurance thatthe desired outcomes will be achieved. To the extent weare unable to achieve these initiatives or our transition toelectrification is slower than expected, it may harm our
reputation or we may not otherwise receive the expected
return on the investment.

Safety Recalls
Our vehicles could be affected by defects that result
in recall campaigns, increased warranty costs, or delays
in new model launches, and the time it takes to improve
the quality of our vehicles and services could continue
to have an adverse effect on our business. Government
safety standards require manufacturers to remedy
defects related to vehicle safety through safety recall
campaigns, and a manufacturer is obligated to recall
vehicles if it determines that the vehicles do not comply
with a safety standard. We may also be obligated to
remedy defects or potentially recall our vehicles due
to defective components provided to us by our suppliers,
arising from their quality issues or otherwise.

Read MoreIn Connected Vehicles and Digital Services on p.40

In Climate Change on p.45

Climate Change
Ford’s production, as well as Ford’s suppliers’ production,
and/or the ability to deliver products to consumers
could be disrupted by adverse effects of climate change.
Given the worldwide scope of our supply chain andoperations, we and our suppliers face a risk of disruption
or operating inefficiencies that may increase costs dueto the adverse physical effects of climate change, which
are predicted to increase the frequency and severityof weather and other natural events, e.g., wildfires,

Raw Materials Access
To facilitate access to the raw materials and othercomponents necessary for the production of electricvehicles, Ford has entered into and may, in the future,enter into multi-year commitments to raw material
and other suppliers that subject Ford to risks associatedwith lower future demand for such items as well as
costs that fluctuate and are difficult to accurately forecast.
We have announced plans to significantly increase ourelectric vehicle production volumes; however, our ability

Read MoreIn Human Rights on p.88

Read More

In Product Safety and Quality on p.99

Ford+ Execution
Our long-term competitiveness depends on the
successful execution of Ford+, our plan for growth andvalue creation. Ford+ is focused on delivering distinctive
and increasingly electric products plus “Always-On”
customer relationships and user experiences. Our Ford+
plan is designed to leverage our foundational strengths
to build new capabilities — enriching customer
experiences and deepening loyalty. As we undertake
this transformation of our business, we must integrate
our strategic initiatives into a cohesive business model,
and balance competing priorities, or we will not be
successful. To facilitate this transformation, we aremaking substantial investments, recruiting new talent,and optimizing our business model, management
system, and organization.
Read MoreIn Human Capital Management and DEI on p.104

Labor Issues
A work stoppage or other limitation on production
could occur at Ford’s facilities, at a facility in its supply
chain, or at one of its logistics providers for any
number of reasons, including as a result of labor issues,
including shortages of available employees, disputes
under existing collective bargaining agreementswith labor unions or in connection with negotiationof new collective bargaining agreements, absenteeism,
public health issues (e.g., COVID), stay-at-home orders,or in response to potential restructuring actions(e.g., plant closures).
Ford’s ability to maintain a competitive cost structure
could be affected by labor or other constraints.
The vast majority of the hourly employees in our
manufacturing operations in the United States andCanada are represented by unions and covered bycollective bargaining agreements. These agreements
provide guaranteed wage and benefit levels throughout
the contract term and some degree of income security,
subject to certain conditions. With the ratification of
our new contracts with the International Union, United
Automobile, Aerospace and Agricultural Implement
Workers of America (UAW) in the United States andUnifor in Canada in 2023, we expect to have a significant
increase in labor costs through the life of the contracts,
and if we are unable to offset those costs, it could havea significant adverse effect on our business.
Further, these agreements may restrict our ability
to close plants and divest businesses. Some of ourcompetitors do not have such collective bargaining

Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices123
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Risk Factors— continued
ESRS 2 SBM-3

agreements and are not subject to the same constraints.
A substantial number of our employees in otherregions are represented by unions or government
councils, and legislation or custom promoting retentionof manufacturing or other employment in the state,country, or region may constrain as a practical matterour ability to sell or close manufacturing or otherfacilities or increase the cost of doing so.

perceived as an employer of choice, we may be unable
to recruit the best talent. Further, if we lose existing
employees with needed skills or we are unable todevelop existing employees, particularly with theintroduction of new technologies and our focus on
operational efficiency and quality, it could have asubstantial adverse effect on our business.
Read More

Read MoreIn Human Capital Management and DEI on p.104
In Human Capital Management and DEI on p.104

Talent Retention
Ford’s ability to attract, develop, grow, and reward
talent is critical to its success and competitiveness.
Our success depends on our ability to continue to attract,develop, grow, and reward talented and diverse
employees with domain expertise in engineering,
software, technology (including digital capabilities
and connectivity), integrated services, supply chain,marketing, and finance, among other areas. While wehave been successful in attracting talent in recent years,
as with any company, the ability to continue to attract
talent is important, particularly in growth areas vitalto our success such as software, electrification, andintegrated services. Competition for such talent isintense, which has led to an increase in compensation
throughout a tight labor market, and, accordingly, may
increase costs for companies.
In addition to attracting talent, we must also retain
the talent needed to deliver our business objectives.
While compensation considerations remain important,current and potential employees are increasingly placinga premium on various intangibles, such as working forcompanies with a clear purpose and strong brandreputation, flexible work arrangements, and otherconsiderations, such as embracing sustainability anddiversity, equity, and inclusion initiatives. If we are not

Reliance on Suppliers
We are highly dependent on our suppliers to delivercomponents in accordance with Ford’s production
schedule and specifications, and a shortage of or inability
to acquire key components or raw materials, such aslithium, cobalt, nickel, graphite, and manganese, candisrupt Ford’s production of vehicles. Our products
contain components that we source globally fromsuppliers who, in turn, source components from their
suppliers. If there is a shortage of a key component inour supply chain or a supplier is unable to deliver acomponent to us in accordance with our specifications,because of a production issue, limited availability ofmaterials, shipping problems, restrictions on transactions
with certain countries or companies, or other reason, andthe component cannot be easily sourced from a different
supplier, or we are unable to obtain a component on
a timely basis, the shortage may disrupt our operations
or increase our costs of production.
Read More

In Supply Chain Management on p.125

Cybersecurity Risks
Operational information systems, security systems,
vehicles, and services could be affected by cybersecurity
incidents, ransomware attacks, and other disruptions
and impact Ford and Ford Credit as well as our suppliersand dealers. We rely on information technology networks

and information systems, including in-vehicle systems
and mobile devices, some of which are managed bysuppliers, to process, transmit, and store electronic
information that is important to the operation of
our business, our vehicles, and the services we offer.
Despite devoting significant resources to ourcybersecurity program, we are at risk for interruptions,outages, and compromises of: (i) operational information
systems (including business, financial, accounting,product development, consumer receivables, dataprocessing, or manufacturing processes); (ii) facility
security systems; and/or (iii) in-vehicle systems or mobile
devices, whether caused by a ransomware or othercybersecurity incident, security breach, or other reason(e.g., a natural disaster, fire, acts of terrorism or war,or an overburdened infrastructure system).
Read More

preferences may change quickly, our new and existingproducts may not generate sales in sufficient quantities
and at costs low enough to be profitable and recoup
investment costs. Offering vehicles and services that
customers want and value can mitigate the risks ofincreasing price competition and declining demand,
but products and services that are perceived to be lessdesirable (whether in terms of price, quality, styling,safety, overall value, fuel efficiency, or other attributes)
can exacerbate these risks. For example, if we are unable
to differentiate our products and services from those of
our competitors, develop innovative new products andservices, or sufficiently tailor our products and services
to customers in other markets, there could be insufficientdemand for our products and services, which could havean adverse impact on our financial condition or resultsof operations.
Read More

In Data Protection, Privacy, and Cyber Security on p.132

Macroeconomic, Market, and Strategic Risks
Market Acceptance
Ford’s new and existing products and digital, software,and physical services are subject to market acceptanceand face significant competition from existing and newentrants in the automotive and digital and software
services industries, and its reputation may be harmed
if it is unable to achieve the initiatives it has announced.
Although we conduct extensive market research before
launching new or refreshed vehicles and introducing
new services, many factors both within and outside ourcontrol affect the success of new or existing products
and services in the marketplace, and we may not be able
to accurately predict or identify emerging trends orpreferences or the success of new products or services
in the market.
It takes years to design and develop a new vehicle
or change an existing vehicle. Because customers’

In Financial Highlights on p.9
In Products and Services on p.31

Geopolitics
With a global footprint and supply chain, Ford’s results
and operations could be adversely affected by economic
or geopolitical developments, including protectionist
trade policies such as tariffs, or other events. Becauseof the interconnectedness of the global economy, thechallenges of a pandemic, a financial crisis, economic
downturn or recession, natural disaster, war, geopoliticalcrises, or other significant events in one area of the world
can have an immediate and material adverse impact onmarkets around the world.
Changes in international trade policy can also havea substantial adverse effect on our financial condition,
results of operations, or our business in general. Steps
taken by governments to apply or consider applying
tariffs on automobiles, parts, and other products andFundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices124
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Risk Factors— continued
ESRS 2 SBM-3materials have the potential to disrupt existing supply
chains, impose additional costs on our business, andcould lead to other countries attempting to retaliate byimposing tariffs, which would make our products more
expensive for customers, and, in turn, could make our
products less competitive.
Read MoreIn Business Conduct: Government Regulations,
Policy, and Engagement on p.131

Financial Risks
Government Incentives
The impact of government incentives on Ford’s businesscould be significant, and Ford’s receipt of government
incentives could be subject to reduction, termination,or clawback. We receive economic benefits from national,
state, and local governments in various regions of theworld in the form of incentives designed to encourage
manufacturers to establish, maintain, or increase
investment, workforce, or production. These incentives
may take various forms, including grants, loan subsidies,or tax abatements or credits. The impact of theseincentives can be significant in a particular market during
a reporting period. A decrease in, expiration without
renewal of, or other cessation or clawback of government
incentives for any of our operations, as a result of
administrative decision or otherwise, could have asubstantial adverse impact on our financial condition
or results of operations.

associated with benefits pursuant to our pension and
OPEB plans requires that we estimate the present
value of projected future payments to all participants.
We use many assumptions in calculating these estimates,
including assumptions related to discount rates,
investment returns on designated plan assets, anddemographic experience (e.g., mortality and retirement
rates). We generally remeasure these estimates at eachyear end and recognize any gains or losses associatedwith changes to our plan assets and liabilities in theyear incurred. To the extent actual results are lessfavorable than our assumptions, we may recognize
a remeasurement loss in our results, which could
be substantial.
Read MoreIn Human Capital Management and DEI on p.104

Legal and Regulatory Risks
Litigation
Ford and Ford Credit could experience unusual orsignificant litigation, governmental investigations,or adverse publicity arising out of alleged defects in
products, services, perceived environmental impacts,
or otherwise. We spend substantial resources to comply
with governmental safety regulations, mobile andstationary source emissions regulations, consumer andautomotive financial regulations, and other standards,
but we cannot ensure that employees or other individuals
affiliated with us will not violate such laws or regulations.

Read MoreIn Business Conduct: Government Regulations,
Policy, and Engagement on p.131

Pension and Other Post-retirement Plans
Economic and demographic experience for pension
and OPEB plans (e.g., discount rates or investment
returns) could be worse than Ford has assumed.
The measurement of our obligations, costs, and liabilities

Government investigations against Ford or Ford Credit
could result in fines, penalties, orders, or other
resolutions that could have an adverse impact on our
financial condition, results of operations, or the operationof our business. Moreover, compliance withgovernmental standards does not necessarily prevent
individual or class action lawsuits, which can entail
significant cost and risk. In certain circumstances, courts

may permit civil actions even where our vehicles,
services, and financial products comply with federal
and/or other applicable law.
Read More

In Product Safety and Quality on p.99

Product Modifications
Ford may need to substantially modify its productplans and facilities to comply with safety, emissions,fuel economy, autonomous driving technology,
environmental, and other regulations. The automotive
industry is subject to regulations worldwide that govern
product characteristics and that differ by global region,
country, and sometimes within national boundaries.
Regulators have enacted and are proposing standards
to address concerns regarding the environment(including concerns about global climate change andair quality), vehicle safety, and energy independence,and the regulatory landscape can change on short notice.
These regulations vary, but generally require that overtime motor vehicles and engines emit less air pollution,
including greenhouse gas (GHG) emissions, oxides ofnitrogen, hydrocarbons, carbon monoxide, andparticulate matter, and there are associated increased
reporting requirements.
Similarly, we are making substantial investments in ourfacilities and revising our processes to not only comply
with applicable regulations but also to make ouroperations more efficient and sustainable. As our
suppliers make similar investments, any higher costs
may be passed on to us. In the United States, legal andpolicy debates on environmental regulations arecontinuing, with a primary trend toward reducing GHG
emissions and increasing vehicle electrification.

Data Protection
Ford and Ford Credit could be affected by the continued
development of more stringent privacy, data use, dataprotection, and artificial intelligence laws and regulations
as well as consumers’ heightened expectations tosafeguard their personal information. We are subject tolaws, rules, guidelines from privacy and other regulators,
and regulations in the United States and other countries(such as the European Union’s and the U.K.’s General
Data Protection Regulations and the California Consumer
Privacy Act) relating to the collection, use, cross-borderdata transfer, and security of personal information of
consumers, employees, or others, including laws that
may require us to notify regulators and affectedindividuals of a data security incident. Existing and newly
developed laws and regulations may contain broad
definitions of personal information, are subject to change
and uncertain interpretations by courts and regulators,
and may be inconsistent from state to state or country
to country.
Accordingly, complying with such laws and regulations
may lead to a decline in consumer engagement or cause
us to incur substantial costs to modify our operations
or business practices. Moreover, regulatory actions
seeking to impose significant financial penalties for
non-compliance and/or legal actions (including pursuant
to laws providing for private rights of action by consumers)
could be brought against us in the event of a datacompromise, misuse of consumer information, or
perceived or actual non-compliance with data protection,
privacy, or artificial intelligence requirements. The rapid
evolution and increased adoption of artificial intelligence
technologies may intensify these risks.
Read More

Read More

In Data Protection, Privacy, and Cyber Security on p.132
In Climate Change on p.45
In Air, Water, and Soil Pollution on p.80

Fundamentals— Sustainability at Ford

— Products and Services— Environment— Social— Governance— Data— Appendices125

Overview— Risk Factors— Supply Chain Management— Business Conduct— Data Protection, Privacy, and Cyber Security

Supply Chain Management

UN Sustainable Development Goals
8 DECENT WORK AND ECONOMIC GROWTH

Our sourcing decisions align with oursustainability standards and corporate
sustainability commitments.
Management of Relationships with Suppliers
ESRS G1-2

Ford values its relationships with suppliers. In 2024,
we are launching a new supplier relationship model —Engage — with the goal of cultivating and maintaining
mutually beneficial supplier relationships rooted inoperational excellence, transparency, and trust that
unlocks value for Ford and our suppliers. This includes
working diligently to ensure we are ethically sourcing
and tracking the value chains and the raw materials thatmove through them. The Supplier Scorecard, launchedin 2023, serves as a tool to provide ongoing transparency
and evaluation of supplier performance acrosscompliance, quality, delivery, and cost metrics.
Payment Policy
ESRS G1-2

Ford’s Global Terms & Conditions identify how wework with suppliers to initiate payments for goods andservices. Ford’s payment policy is outlined in both our
Production and Indirect Payment Schedule Supplier
Guides. Payments are processed automatically according
to the Purchase Order payment terms and upon evidenceof approved Purchase Order, invoice, and receipt ofgoods and/or service date and may be subject to audit.
Payment Terms
ESRS G1-6

Understanding terms of payment may be different forour diverse supply base. We negotiate various alternative
methods for suppliers however, the standard method of
payment for all supplier liabilities is by Electronic Funds
Transfer. These methods are outlined in our Global Terms& Conditions and further explained in both our Production
and Indirect Payment Schedule Supplier Guides.

Supply Chain Risk
Continuous monitoring of our supply base is essential toeffectively and quickly respond to ongoing geographicaland geopolitical risks and support our suppliers’
contingency plans. The Supplier Performance and Risk
dashboard, established in 2023, offers real-time visibility
into our suppliers’ financial health, quality, and delivery
performance, enabling proactive management of value
chain impacts. These tools and processes drive resiliency
in our supply chain.
Supplier ComplianceIn our sourcing strategy, supplier selection is contingent
upon adherence to our Supplier Code of Conduct andsustainability goals encompassing social andenvironmental responsibility. Through collaborative
efforts, we engage suppliers to ensure alignment
with these goals. Utilizing the industry-standard
Self-Assessment Questionnaire (SAQ), we assess
suppliers’ policies for compliance. Our sourcing decisions
and ongoing performance evaluations are informed bythese assessments, emphasizing the importance of
suppliers’ commitment to compliance throughout oursourcing process.
Read MoreIn Human Rights on p.88

— Reporting Scope and Data AssuranceFundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices126

Overview — Risk Factors — Supply Chain Management — Business Conduct — Data Protection, Privacy, and Cyber Security — Reporting Scope and Data Assurance

Business Conduct
Transparency, Business Ethics, and Integrity

Upholding the Highest Levels of Integrity
UN Sustainable Development Goals
10 REDUCES INEQUALITIES

11 SUSTAINABLE CITIES AND COMMUNITIESOur rigorous approach to ethics,
integrity, and transparency extends
beyond compliance. It is the foundationof our commitment to build a moresustainable, inclusive, and equitabletransportation future where every
person is free to move and pursue
their dreams.
We lead with our values, and they permeate throughall levels of our company. We strive to act withtransparency, integrity, and honesty. It’s the foundationof the trust we build with our employees, our customers
and suppliers, our shareholders, and our communities.
We are committed to complying with existing laws,
regulations, and policies. By providing clear policies,
effective communication, and engaging training, we giveour employees the tools they need to do the right thing.
As we look ahead, we are committed to maintaining
state-of-the-art corporate governance policies andpractices and continuing to ensure they are reflectiveof current rules and regulations.

ESRS 2 GOV-1, ESRS G1-3

By providing appropriate training and communications
tools, our Compliance, Ethics, and Integrity Office ensuresthat our people are equipped to comply with legal
obligations and policies that maintain the highest levels
of integrity.
Regular and Open Communication
Clear and open communication is a fundamental
component of our corporate governance framework.
Ford outperforms our industry as we work to maintain
open communication channels that include monthly
reports on vehicle production, dealer inventory, andretail sales. This in comparison to the quarterly reporting
others in our industry conduct.
We believe that it’s important that we meet our customers
where they are — and in many cases that’s on social
media. We use Ford Motor Company corporate accounts
and Chief Executive Officer’s social media accounts toshare information on a regular basis.
Adhering to Our Code of Conduct

Supplier Code of Conduct
Thousands of companies around the globe are involvedin building Ford vehicles. As the focus on human rights
and climate change becomes sharper, it’s important that
we hold our suppliers to the same high standards werequire of ourselves. In 2021, we launched our Supplier
Code of Conduct to formalize the standards we’ll workwith our suppliers to achieve. Our Supplier Code of
Conduct applies not only to the company’s Tier 1
suppliers, but cascades through the supply chain to
their suppliers as well. It is available in eight languages
and is accessible on our corporate website to suppliers,
our employees, and the general public.
Our Supplier Code of Conduct mandates that our suppliers
maintain responsible business practices. Suppliers are
required to protect and respect human rights, protect theenvironment, and responsibly source materials. The
Supplier Code of Conduct also mandates that they
conduct business free from bribery and corruption,
maintain effective privacy and cyber-security practices
and comply with applicable trade and customs rules.
Read MoreESRS G1-1

Employee Code of Conduct
It’s important that our employees understand whatis expected of them when it comes to business ethics
and integrity. Equally important is that our customers,
suppliers, and other stakeholders understand ourstandards and hold us accountable to them. That’s how
we live up to our reputation as a global leader in
corporate ethics and social responsibility.
Available in 12 languages, our Employee Code of Conduct
covers important topics including human rights, theenvironment, privacy and lawful business practices —as well as information on how to report violations.

In Human Rights on p.88

Anti-Bribery and Anti-Corruption
We maintain the highest ethical standards wherever
we operate. With operations around the world, it’s
important that our facilities comply with a wide rangeof national laws and governmental enforcement practices
with regard to bribery and corruption, regardless of
where they are located. Bribery and corruption are
forbidden, even in locations where they may be tolerated
or condoned.

Compliance Training
ESRS G1-3

Our robust and comprehensive compliance training
supports our high standards of ethical conduct.
Mandatory online training courses for all Ford salaried
full-time, part-time, and agency workers, including
an annual Code of Conduct course, ensure our policies
are understood and reinforce their importance. We
periodically refresh and review the courses to keep thecontent relevant and appropriate.
Reporting Violations
ESRS G1-3

Our compliance program is designed to ensure thatpeople can confidentially report known or potential
violations of the law or of our policies. Team members
can report violations directly to Human Resources or
the Compliance, Ethics, and Integrity Office as well as
the Office of the General Counsel. Violations can also
be reported using the SpeakUp reporting website,
telephone hotlines, or email, some of which allow
for anonymous reporting. External stakeholders mayreport by going to www.speakup.ford.com. A crossfunctional committee reviews allegations and oversees
any investigations and subsequent corrective or
disciplinary actions.
For human rights and environmental issues involving
suppliers, Ford has an external site to report suppliergrievances. The external site is available in five different
languages and provides suppliers an opportunity toreport feedback. Employees of our suppliers can also
provide feedback and file grievances directly via the
Responsible Business Alliance (RBA) Worker Voice app.
Read More

About grievance mechanisms and remedy in Human CapitalManagement and Diversity, Equity, and Inclusion on p.106
About our Worker Voice app in Human Rights on p.91

Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices127
Overview —Risk Factors —Supply Chain Management —Business Conduct —Data Protection, Privacy, and Cyber Security — Reporting Scope and Data Assurance

Business Conduct
Accountable and Inclusive Governance

Solid principles of accountable andinclusive corporate governance are key
to maintaining the trust of our investors,
our customers, and our people.
Accountable and Inclusive Governance
Along with the people of Ford around the world, ourleadership is committed to serving all of our stakeholder
groups. Like generations of leaders before them, they
understand that by helping to create a world with fewer
obstacles and limits, we help people to move forward
and upward.
Our long history of operating under sound corporate
governance practices is a critical element as we aim to betrusted by all who rely on us to help build a better world.
The processes and systems in place serve as a framework
as we manage our business, drive performance, create
value — and deliver on our sustainability strategy.
Board of Directors Composition
ESRS 2 GOV-1

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Diversity of skills, experience, and demographic
background strengthen our competitive advantage
and reflect our employees and the customers we serve.
Collectively, our Board possesses a broad set of skills
and experience that is relevant to our business, longterm strategy, risks, and global activities. The skill sets
include manufacturing, marketing, CEO leadership,
international experience, government experience, risk
management, finance, and technology.

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In addition, all of our Board members have backgrounds
in sustainability and related matters. Their experience
with environmental and climate change, talent andculture, and social responsibility initiatives enables
us to address key shareholder concerns regarding
sustainability and corporate responsibility. The Board’s
gender diversity is comparable to our overall company.

Of our 14 Board members, four are women, one isBlack/African American, and one is Hispanic/Latino(a).
Our Board includes 2 executive and 12 non-executive
members. Nine of our directors are independent, and
our Audit Committee, Compensation, Talent and Culture
Committee, and Nominating and Governance Committee
are fully independent.
For additional information on the unique qualifications
and demographic backgrounds of our Board members,
refer to the Director Skills and Diversity Matrix anddirector biographies included in our most recent
Proxy Statement.

Board of Directors Composition
Board Committees
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Demographics

Board Members

Board of Directors

Chair

Men

71.4%

Kimberly A. Casiano

William W. Helman IV

Lynn Vojvodich Radakovich

Women

28.6%

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Alexandra Ford English

Jon M. Huntsman, Jr.

John L. Thornton

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James D. Farley, Jr.

William E. Kennard

John B. Veihmeyer

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Men

78.0%

Women

22.0%

Underrepresented minorities

17.1%

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John s. Weinberg

Governance Principles and Practices

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Solid principles of corporate governance are key tomaintaining our investors’ and our stakeholders’ trustin our company’s direction, relationships, and goals.
Our corporate governance practices promote theeffective functioning of our Board, its committees,
and the Company.

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Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices128
Overview —Risk Factors —Supply Chain Management —Business Conduct —Data Protection, Privacy, and Cyber Security —Reporting Scope and Data Assurance

Business Conduct — Accountable and Inclusive Governance— continued

Corporate Governance Principles
The Board has adopted a set of corporate governanceprinciples, which may be found at our corporate website.
These principles include: a limitation on the numberof boards on which a director may serve, qualifications
for directors (including a requirement that directors be
prepared to resign from the Board in the event of any
significant change in their personal circumstances that
could affect the discharge of their responsibilities),
director orientation and continuing education, and arequirement that the Board and each of its committees
perform an annual self-evaluation.
Our corporate governance principles, along with thecharters of the Audit Committee; the Compensation, Talent
and Culture Committee; the Sustainability, Innovation and
Policy Committee; the Finance Committee; and theNominating and Governance Committee, provide theframework for the governance of Ford Motor Company.
Sound corporate governance practices and trust go
hand in hand. Ford’s adoption of the following practices
has played a critical role as we strive to be trusted by all
who rely on us to help build a better world:• Annual Election of all Directors.
• Majority Vote Standard. Each director must be electedby a majority of votes cast.
• Independent Board. 64% of the directors are
independent.
• Lead Independent Director. Ensures management
is adequately addressing the matters identified
by the Board.
• Independent Board Committees. Each of the
Audit Committee, Compensation, Talent andCulture Committee, and Nominating andGovernance Committee is comprised entirelyof independent directors.

• Committee Charters. Each standing committee operates
under a written charter that has been approved by the
Board and is reviewed annually.

• Overboarding. We limit the number of outside publiccompany boards on which our directors and officers
may serve.

• Independent Directors Meet Regularly Without
Management and Non-Independent Directors.

Board Role and Responsibilities• Regular Board and Committee Self-Evaluation Process.
The Board and each committee evaluates its
performance each year.

The Board continuously reviews the Company’s
governance practices, assesses the regulatory andlegislative environment, and adopts the governancepractices that best serve the interests of ourshareholders.

• Mandatory Retirement Age and Term Limits. Fifteenyear term limits for new independent directors andmandatory retirement age of 72 provide regular
opportunities for Board refreshment.
• Mandatory Deferral of Compensation for Directors.
In 2023, approximately 68% of annual director fees
were mandatorily deferred into Restricted Stock Units,
which strongly links the interests of the Board withthose of shareholders.
• Separate Chair of the Board and CEO. The Boardof Directors has chosen to separate the roles of CEO
and Chair of the Board of Directors.
• Confidential Voting at Annual Meeting.
• Special Meetings. Shareholders have the right to calla special meeting.
• Shareholders May Take Action by Written Consent.
• Strong Codes of Ethics. Ford is committed to operating
its business with the highest level of integrity and has
adopted codes of ethics that apply to all directors andsenior financial personnel, and a Code of Conduct thatapplies to all employees.
• Hedging and Pledging Policies. Officers are prohibitedfrom hedging their exposure to, and limited inpledging, Ford common stock.

ESRS 2 GOV-1

The Board is elected by and responsible to Ford’s
shareholders. Ford’s business is conducted by its
employees, managers, and officers, under the directionof the Chief Executive Officer (CEO) and oversight of theBoard, to enhance the long-term value of the Company
for its shareholders.
The Board of Directors has chosen to separate the rolesof CEO and Chair of the Board of Directors, which allows
the CEO to focus on leading the organization to deliverproduct excellence, while the Chair leads the Board inits pursuit to provide the Company with direction on
Company-wide issues such as sustainability, mobility,
and stakeholder relationships.
The Board of Directors monitors the performance of
the CEO and other members of senior management toensure that the long-term interests of the shareholders
are being served.
Director Remuneration
ESRS 2 GOV-3

Effective as of January 1, 2017, the Board of Directors
agreed that the following compensation will be paid
to non-employee directors of the Company:• Annual Board membership fee: $315,000• Annual Lead Independent Director fee: $50,000• Annual Audit Committee chair fee: $30,000• Annual Compensation, Talent and Culture Committee
chair fee: $25,000• Annual other committee chair fees: $20,000
Approximately 68% of the Annual Board membershipfee is paid in Restricted Stock Units (RSUs), and certain
directors choose to receive all or a portion of their fees,in addition to the mandatory portion, in RSUs.
Directors who are also Company employees are notseparately compensated for their service on the Board.
Sustainability Governance
ESRS 2 GOV-1, ESRS 2 GOV-2

We employ a variety of governance systems and processes
to manage different aspects of sustainability across ourbusiness, as summarized throughout this report.
The Sustainability, Innovation and Policy Committee
reviews and advises on the Company’s pursuit ofinnovative policies and technologies that promote
product safety, improve environmental, and social
sustainability, and seek to enrich our customers’
experiences, increase shareholder value, and leadto a better world.
The Committee is responsible for assessing theCompany’s progress on strategic economic, productsafety, environmental, and social issues, as well as
the degree to which sustainability principles havebeen integrated into various skill teams. The Committee
reviews the Company’s Integrated Sustainability and
Financial Report summary as well as any Company
initiatives related to sustainability and innovation.
It assesses annually the adequacy of the Sustainability,
Innovation and Policy Committee Charter, and reports
to the Board of Directors about these matters.

Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices129
Overview —Risk Factors —Supply Chain Management —Business Conduct —Data Protection, Privacy, and Cyber Security — Reporting Scope and Data Assurance

Business Conduct — Accountable and Inclusive Governance— continued

The Compensation, Talent and Culture Committee
reviews and discusses key people-related businessstrategies, including leadership succession planning,
culture, diversity and inclusion, and talentdevelopment programs.

Risk Management and Internal Controls
ESRS 2 GOV-5

The oversight responsibility of the Board and its
committees is supported by Company management
and the risk management processes that are currently
in place. Ford has extensive and effective risk
management processes, relating specifically tocompliance, reporting, operating, and strategic risks.
These include:• Compliance Risk encompasses matters such as legal
and regulatory compliance (for example, Foreign
Corrupt Practices Act, environmental, Occupational
Safety and Health Administration/safety, etc.).
• Reporting Risk covers Sarbanes-Oxley compliance,
disclosure controls and procedures, and accounting
compliance.
• Operating Risk addresses the myriad of matters related
to the operation of a complex company such as Ford

Board of Directors
Sustainability, Innovation and Policy Committee

VP, Chief Sustainability, Environment and
Safety Officer, and Human Rights Officer

External Stakeholder Engagements
Sustainability Partnerships

Global Sustainability & ESG Meeting
Monthly Executive Officer Review

Strategic Priorities, Objectives & Performance
Integrating Sustainability into all our Operations

Sustainability

Automotive Safety

Ford Fund

Global Manufacturing

PolicyCommunications

Ford Land

Human Resources

Product Design & Development

Diversity, Equity & Inclusion

Ford Pro

Investor Relations

Quality

Environmental Quality

General Counsel

MarketingResearch & Innovation

Finance

Global Data Insights& Analytics (GDI&A)

Model eSupply Chain

People Matters

Treasury

Ford Blue
Ford Credit• Strategic Risk encompasses somewhat broader andlonger-term matters, including, but not limited to,technology development, environmental and social
sustainability, capital allocation, management
development, retention and compensation, competitive
developments, and geopolitical developments.
We believe that key success factors in risk management
at Ford include a strong risk analysis tone set by the
Board and senior management, which is shown throughtheir commitment to effective top-down and bottom-up
communication (including communication between
management and the Board and committees), and active
cross-functional participation among the Business
Segments and Skill Teams.

Sustainability Governance

Executive Cabinet
Ford Leadership Team & CEO(for example, quality, supply chain, sales and service,financing and liquidity, product development andengineering, labor, etc.).

We have institutionalized a regular Forecast, Controls
and Risk Review, and Special Attention Review process
where the senior leadership of the Company reviews
the status of the business, the risks, and opportunities
presented to the business (in the areas of compliance,
reporting, operating, and strategic risks), and develops
specific plans to address those risks and opportunities.
The Enterprise Risk Management process adopted by
the Company identifies the top critical enterprise risks
through engagement with senior management and theBoard of Directors. Once identified, each of the top risks
is validated and assigned an executive risk owner who
is responsible for overseeing risk assessment, developing
mitigation plans, and providing regular updates.
The Enterprise Risk Management process also engages
Business Segments and Skill Teams to determine whichof the enterprise risks are most relevant to their specificobjectives and identify any additional risks that can be
managed at a lower level in the organization.

Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices130
Overview —Risk Factors —Supply Chain Management —Business Conduct —Data Protection, Privacy, and Cyber Security — Reporting Scope and Data Assurance

Business Conduct — Accountable and Inclusive Governance— continued

All identified Enterprise Critical Risks are evaluated for their
exposure to related geopolitical risk and climate change
impacts. The Audit Committee and Board annually review
the process to update the list of critical risks and monitor
risk movement and emerging trends, and the Enterprise
Risk Management team also benchmarks the annual risk
assessment with outside sources to ensure the Company’s
assessment is up to date with external risk developments.
The full Board of Directors has overall responsibility forthe oversight of risk management at Ford and oversees
operating risk management with reviews at each of its
regular Board meetings. The Board, the Sustainability,
Innovation and Policy Committee, the Compensation,
Talent and Culture Committee, the Finance Committee,
and the Audit Committee all play a role in overseeing
operating and strategic risk management.
The Audit Committee assists the Board of Directors inoverseeing compliance and reporting risk, cybersecurity risk,
and the Enterprise Risk Management process itself. The
Audit Committee receives regular updates on cybersecurity
practices, as well as cybersecurity and information
technology risks from the Chief Information Security Officer.
The Sustainability, Innovation and Policy Committee
assists the Board of Directors in overseeing environmental
and social sustainability risks. The Compensation, Talent
and Culture Committee assists the Board of Directors inoverseeing risks related to compensation and peoplerelated business strategies, including leadership
succession and culture, diversity, and inclusion.
The Board and the appropriate committees also
periodically review other policies related to personnel
matters, including those related to sexual harassment
and anti-retaliation policies related to whistleblowers.
The specific responsibilities of each committee areset forth in their charters, which are available on our
corporate website.

Management Processes
Board Committees

Sustainability, Innovation and Policy Committee• Meets at least three times a year
• Primary responsibility for assessing the Company’s progress on strategic economic, product safety, and environmental and social issues, aswell as the degree to which sustainability principles have been integrated into the various skill teams• Reviews and advises on the Company’s pursuit of innovative policies and technologies that promote product safety, improve environmental
and social sustainability, and seek to enrich our customers’ experiences, increase shareholder value, and lead to a better world• Reviews the Integrated Sustainability and Financial Report Summary as well as any Company initiatives related to sustainability and innovation
Read the Charter of the Sustainability, Innovation and Policy Committee
Other Board committees: Audit; Compensation, Talent and Culture; Nominating and Governance; and Finance

Executive Management

Vice President, Chief Sustainability, Environment and Safety Officer• Primary responsibility for sustainability issues• Oversees the Sustainability and Vehicle Environmental Matters group, the Environmental Quality Office, the Vehicle Homologation andCompliance group, and the Automotive Safety Office• Leads a multi-disciplinary executive-level team that oversees actions in response to our sustainability strategies and integration and issues
related to our We Are Committed to Protecting Human Rights and the Environment policy• Human Rights Policy Officer
Other executive and group vice presidents across our functional areas also have responsibility for sustainability-related issues. These include
our Chief People and Employee Experience Officer and our Chief Diversity Officer

Function Areas

Sustainability and Vehicle Environmental Matters• Coordinates our Company-wide sustainability strategy and activities• Leads our sustainability reporting and stakeholder engagement• Collaborates with other functional areas and skill teams to integrate sustainability throughout the Company

Oversight of Risk Management
Compliance and Reporting

Operating and Strategic

Ford Board Oversight

Audit Committee

Sustainability, Innovation and Policy Committee
Compensation, Talent and Culture Committee
Finance Committee
Audit Committee

Ford Management Day to Day

Compliance Reviews
Sarbanes-Oxley ComplianceInternal Controls
Disclosure Committee

Business Segments and Skill Teams
Forecast, Controls, and Risk Review
Special Attention Review
Industrial Platform/Software, Product and Services, Strategy, Business Ops Review, and People Forums

Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices131
Overview —Risk Factors —Supply Chain Management —Business Conduct —Data Protection, Privacy, and Cyber Security — Reporting Scope and Data Assurance

Business Conduct
Government Regulations, Policy, and Engagement

As a purpose-driven company, it’s
imperative that our advocacy is alignedwith our values. Engagement withgovernmental officials and agencies
plays a key role in shaping theregulations and legislation that govern
our business now and into the future.
We are committed to transparency about the principles
that govern our participation in the political process.
Ford participates in the political process to support
policies on the local, state, national, and international
level that are economically, environmentally, and sociallysustainable for our company, our customers, and theircommunities. We engage with the United States
Congress and the White House, as well as international
governments, on a wide range of policy issues, including
but not limited to: safety, emissions standards, vehicle
electrification and charging initiatives, autonomous andconnected vehicle technologies, data access, taxes, trade,manufacturing, transportation, and labor. We advocate
for consistent policies at all levels to help us achieve ourbusiness, environmental, and employment objectives.
We encourage all employees to become engaged intheir communities and participate in the political process
as private individuals. We respect the right of each
employee to use personal time as they choose and to
decide the extent and direction of their political activities.
It’s important that our management team keeps
informed on governmental matters affecting Ford’sinterests. Where appropriate, they are expected to help
formulate and present company positions on relevantpublic issues. They also are expected to contribute tofulfilling Ford’s responsibilities as a corporate citizen,
including participation in constructive governmental
activities on behalf of the company.

Political Spending Process

Lobbying Activities

Trade Associations and Memberships

ESRS G1-5

ESRS G1-5

Ford does not contribute corporate funds directly topolitical candidates, campaigns, or political organizationsin the U.S.; nor does the company employ its resources tohelp elect candidates to public office, even whenpermitted by law. Ford does not take a position
for partisan political purposes, that is, specifically for the
purpose of advancing the interest of a political party or
candidate for public office. However, with the approvalof the Office of the Chief Executive, contributions may
be made to support or oppose a state or local ballot
proposal if the issue is of significant interest or
importance to Ford provided that such contributions
are permitted by law.

Our advocacy efforts are guided by our Chief Policy
Officer. In the United States, we submit all lobbying
reports as required by the U.S. House of Representatives
and the U.S. Senate. These reports are publicly available.
All PAC donations are documented through SEC
regulations. Our day-to-day Government Affairs activities
are not reported. However, we consistently meet withelected officials on the federal, state, and local levels
and participate in trade organizations.

Ford supports a broad range of trade associations
and coalitions to enhance our understanding of,and advocacy for, U.S. policy issues. These include:

Ford’s Chief Government Affairs Officer has final
authority over contributions to Section 527 and 501(c)(4)organizations, 501(c)(6) association memberships, andother political spending permitted by company policy.
Support for ballot initiative spending requires approvalof the Chief Executive Officer. The employee-led PoliticalContributions Committee of Ford’s political action
committee (Ford PAC) oversees PAC spending.
The Nominating and Governance Committee of Ford’s
Board of Directors has responsibility for evaluating,monitoring, and making recommendations to the full
Board with respect to all corporate governance policies
and procedures, including governance of politicalengagement. The Committee annually reviews
contributions and membership decisions made by theCompany in the following areas:• Local, state, federal, and international memberships
representing affiliations with key coalitions and industry
associations supporting the Company’s policy agenda.
• Corporate contributions to philanthropic and policyrelated organizations supported by the Company.

Trade Associations and Memberships Focusing
on U.S. Policy Issues
To advance our voice on key issues, we collaborate witha broad range of coalitions, industry groups, and tradeassociations. We work with our partners to develop andpromote sensible policies that benefit our company, ourindustry, and society. These organizations often bringdiverse viewpoints to the debate, and sometimes theirviews are not shared by Ford. When necessary, we haveexercised our right to make our own position clear andat times have taken an alternative path.
Climate Change
Avoiding the worst consequences of climate change
requires collaboration with multiple partners andorganizations in the public and private sectors to drive
timely progress. We are working together to address
challenges including barriers to electric vehicle adoption,
government regulations, economic factors, and theavailability of carbon-free electricity and renewable fuels.
Through active participation, we can encourage groups
to shift towards our progressive climate change strategy,
shape policy, and drive the industry to change.

• 5G Automotive Association• American Automotive Policy Council• Alliance for Automotive Innovation• Autonomous Vehicle Industry Association• Center for Climate and Energy Solutions’ Business
Environmental Leadership Council• Climate Leadership Council• Electric Drive Transportation Association• National Association of Manufacturers• U.S. Chamber of Commerce
Ford conducts internal reviews of associations’ lobbying
positions, noting any discrepancies with our positions, andour actions in response. The results of these reviews areshared with management. If an association’s position does
not align with our criteria, we respond appropriately, attimes advocating for our position independently.
Policy Framework
Our Policy framework was created to advance Ford’sbusiness objectives while vindicating the company’svalues. The framework leverages the entire policy team,comprised of Environmental and Safety Compliance,
Government Affairs, the Office of General Counsel,
Privacy, and Security.
This structure empowers the teams to function as one,
contributing the expertise of their respective professional
disciplines, unified throughout the policy organization.
Ford’s ambitious Ford Policy Agenda, which sets forthdetailed policy missions to defend and advance Ford
Motor Company’s interests, reflects this integration.
Read MoreIn the 2023 U.S. Political Engagement ReportFundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices132
Overview — Risk Factors — Supply Chain Management — Business Conduct — Data Protection, Privacy, and Cyber Security — Reporting Scope and Data Assurance

Data Protection, Privacy,
and Cyber Security

UN Sustainable Development Goals

We take our customers’ trust in
Ford seriously as we work to deliver
innovative products and a stellar
experience. Our commitment toinnovation extends beyond products
and services to include data protection,
privacy, and cybersecurity.
Data Privacy and Protection Policies
We have policies and procedures to address data
management and to protect the privacy of ouremployees and customers.
Data privacy is a key component of our software-driven
businesses. Data privacy, which focuses on personal
information and how it is collected, stored, used,managed, and shared continues to be important toour customers, our employees, and our business.
Strengthening Our Global Data Privacy andProtection Initiatives
ESRS S4-4

We continue to adhere to the Automotive Consumer
Privacy Protection Principles developed by the Alliance
for Automotive Innovation.
We are a founding member of the Information Sharing
and Analysis Center, which gathers, analyzes, andshares information to combat cyber-related threats
and weaknesses. We are also a founding memberof the Board of the Automotive Information Sharing
and Analysis Center. Our current seat on that board
ensures that we preserve relationships that help toprotect ourselves against both enterprise and in-vehicle
security risks.

Cyber Threats
ESRS S4-4

The scope and severity of risks presented by cyberthreats continue to evolve. We take cyber threats
very seriously. While no organization can eliminate
cybersecurity risk entirely, we devote significant
resources to our security program. We employ amulti-layered cybersecurity risk management programthat is designed to protect our information systems andassets and protect against, and mitigate, the effects of,cybersecurity incidents.
Our cybersecurity risk management program issupervised by our Chief Information Security Officer
who provides regular updates to the Audit Committee.
As part of its oversight responsibilities, the Audit
Committee receives updates related to cybersecurity
practices, cyber risks, and risk management processes.
Read More

About our data privacy practices on our website

Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices133
Overview —Risk Factors —Supply Chain Management —Reporting Scope, Boundaries,
and Data Assurance
Reporting Scope and Boundaries
Consistent with GRI guidance on boundary setting, thedata in this report covers all of Ford Motor Company’s
wholly and majority-owned operations globally, unlessotherwise noted, and spans 2023 operations andvehicles. Boundaries for each material issue are notedin our GRI Content Index.
The CSRD requires disclosures against the European
Sustainability Reporting Standards (ESRS). Throughout
the report you will see ESRS tags on some chapters or
sections, indicating which disclosures we are addressingin that section. We are voluntarily phasing in these
disclosures in the 2024 report, not all ESRS required
disclosures are included at this time. We are working
towards full CSRD reporting compliance in our 2025
Integrated Sustainability and Financial Report.
Where relevant, data measurement techniques, the basesof calculations, and changes in the basis for reporting or
reclassifications of previously reported data are included
as footnotes.
For this report, we have followed the International <IR>
Framework of the International Integrated Reporting
Council (IIRC) to provide a cohesive and comprehensive
approach to our corporate reporting. However, we remain
flexible and open to new approaches as the dynamic
reporting environment continues to evolve.
Data Assurance
Data in this report is subject to various forms ofassurance, as outlined below and noted in the datatables. This report has been reviewed by Ford’s top
senior executives, as well as the Sustainability,
Innovation and Policy Committee and the Audit
Committee of the Board of Directors.
Some of the data in our reports has been subject tointernal and third-party verification.

The consolidated financial statements in our Form 10-K
have been audited by our independent registered public
accounting firm.
Ford’s 2023 greenhouse gas inventory (including Scope 1,
2 and 3) is third-party verified by an organization with a
Certification of Accreditation to ISO 14065:2013 by the
ANSI National Accreditation Board and will become
available at a later date. In addition, some manufacturing
operations, as required by regulation, are also third-party
verified following the respective regulatory
requirements, such as EU-ETS. Find out more about EUETS in our CDP Climate Response, section 11.1.
Ford reports facility carbon dioxide equivalent (CO2e)emissions to national emissions registries or otherauthorities, including in the U.S., Canada, Mexico, South
Africa, China, Germany, Spain, and the U.K.
Various environmental data is reported to regulatory
authorities. Ford’s facility environmental data is managed
using our Global Emissions Manager database and aninternally developed strategies management tool, which
provides a globally consistent approach to measurement
and monitoring. The kind of assurance used for each data
set is noted in the data charts.

Business Conduct —Data Protection, Privacy, and Cyber Security — Reporting Scope and Data AssuranceFundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices134
Financial — Products and Services — Climate — Circular Economy — Water — Human Rights — Product Safety — Human Capital — Employee Health and Safety — Community — Supply Chain Management

Performance
Data
In this section:
135 — Financial Highlights
135 — Products and Services
137 — Climate Change
145 — Circular Economy and End of Life
148 — Water Resource
149 — Human Rights
157 — Vehicle/Product Safety and Quality
158 — Human Capital Management
and Diversity, Equity, and Inclusion
164 — Employee Health and Safety
165 — Socioeconomic Contribution
and Community
166 — Supply Chain Management

Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices
135
Financial —Products and Services —Climate —Circular Economy —Water —

Human Rights —Product Safety —Human Capital —Employee Health and Safety —Community — Supply Chain Management

Performance Data
Performance Data is organized by Products & Services, Environmental, Social, and Governance topics
Ford is beginning the transition to align our Integrated Sustainability and Financial Report with the European Union Corporate Sustainability Reporting Directive (CSRD) (EU 2023/2772 of 31 July 2023).
Refer to CSRD metric column and Appendix 1 for more information

Financial Highlights
Footnote

CSRD Metric

2021

2022

2023
Methodology and Assumptions

Financial Performance
Revenue
Net income/(loss) attributable to Ford Motor Company
Company adjusted earnings before interest and taxes (EBIT)
Company adjusted earnings before interest and taxes (EBIT) margin
Company adjusted free cash flow
Adjusted earnings per share
Income taxes paid/refunded

ESRS 2 SBM-1 $
$
$
$
$
$

136.3B
17.9B
10.0B
7.3%
4.6B
1.59
568M

$
$
$
$
$
$

158.1B(2.0)B
10.4B
6.6%
9.1B
1.88
801M

$
$
$
$
$
$

176.2B
4.3B
10.4B
5.9%
6.8B
2.01
1,027M

Products and Services

Spanish Taxonomy — In accordance with the Annex I of the Commission
Delegated Regulation (EU) 2021/2178 of July 6, we understand that
Ford Spain is exempt from the calculation of the numerator of theoperating expenses.

Footnotes
1.

Product Innovation
Footnote

CSRD Metric

Patents
Global utility patents issued
U.S. utility patents issued to Ford and subsidiaries
Patents in Electric Vehicle (EV) technology

2021

2022

2023

3,286
1,669
—

2,883
1,327
456

2,133
1,287
379

2021

2022

2023
Available
July 2024
Available
July 2024
N/A
Available
July 2024
Available
July 2024
N/A

Taxonomy
Footnote

CSRD Metric

Spanish Taxonomy Key Performance Indicators
Turnover eligibility

1

73%

76%

CapEx eligibility

1

100%

90%

OpEx eligibility
Turnover aligned

1

N/A
N/A

N/A
0%

CapEx aligned

1

N/A

0%

N/A

N/A

OpEx aligned

Company adjusted EBIT, EBIT margin, free cash flow and earnings per
share — see Form 10-K, pages 75-78 for definitions and reconciliations
to GAAP (U.S. Generally Accepted Accounting Principles).

For Spanish EU Taxonomy report click here:
https://www.ford.es/experiencia-ford/portal-de-transparencia

Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices
136
Financial —Products and Services —Climate —Circular Economy — Water —Human Rights — Product Safety —Human Capital —Employee Health and Safety —Community — Supply Chain Management

Performance Data
— continued

Products and Services
Vehicle Sales
Footnote
Vehicles Sold Globally
Wholesales (Primarily Sales to Dealerships)
Retail (Primarily Sales by Dealers)
Vehicles Manufactured
Electric and Hybrid Vehicles Sold Globally (retail)Zero Emission Vehicle (ZEV)
Hybrid Emission Vehicle (HEV)
Plug-In Hybrid Vehicle (PHEV)
Total

1

2021

2022

2023

3.942M
4.200M
3.922M

4.231M
4.000M
4.250M

4.413M
4.185M
4.419M

55,692
126,663
64,460246,815

108,567
156,397
80,063345,027

130,905
204,664
71,766407,335

2021

2022

2023

—
—
—
—

—
—
—
—

156,000,000 +290,000 +2,300,000 +97%

1Footnote
BlueCruise
Miles driven hands free (number)
BlueCruise equipped vehicles (number)
Customer hours driven hands free (number)Controlled access highways (percent)

CSRD Metric

2

3

CSRD Metric

Methodology and Assumptions
Wholesale unit volumes include sales of medium and heavy trucks.
Wholesale unit volumes also include all Ford and Lincoln badged units(whether produced by Ford or by an unconsolidated affiliate) that are soldto dealerships or others, units manufactured by Ford that are sold toother manufacturers, units distributed by Ford for other manufacturers,
local brand units produced by our unconsolidated Chinese joint venture
Jiangling Motors Corporation, Ltd. (“JMC”) that are sold to dealerships orothers, and from the second quarter of 2021, Ford badged vehicles
produced in Taiwan by Lio Ho Group. Vehicles sold to daily rental car
companies that are subject to a guaranteed repurchase option (i.e., rental
repurchase), as well as other sales of finished vehicles for which therecognition of revenue is deferred (e.g., consignments), also are included
in wholesale unit volumes. Revenue from certain vehicles in wholesale
unit volumes (specifically, Ford badged vehicles produced and distributedby our unconsolidated affiliates, as well as JMC brand vehicles) are notincluded in our revenue.

Footnotes
1.

In U.S. terms, Retail includes sales to private customers throughretail sales channels. In some markets/regions, this may be referred
to as Registrations

2. Highway miles driven are based on North American roads
3. A controlled-access highway is a type of highway that has been
designed for high-speed vehicular traffic with all traffic flow regulated(ingress and egress)

Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices137
Financial — Products and Services —Climate —Circular Economy —Water —

Human Rights —Product Safety —Human Capital — Employee Health and Safety — Community —Supply Chain Management

Performance Data
— continued

Climate Change
2035 Science Based Target initiative (SBTi) Greenhouse Gas (GHG) Reduction Targets Reference Information
Target — Scope 1 and Scope 2 GHG Emissions — Operations
Target Year reduction from base year (percent)Base Year
Base Year Value (metric tons of CO2e)Target Year
Target Year Value (metric tons of CO2e)
Share of Scope 1 emissions covered in base year (percent)Share of Scope 2 emissions covered in base year (percent)Target — Scope 3 (Category 11) GHG Intensity — Vehicle Use
Target Year reduction of Scope 3, Category 11 from base year (percent)Base Year
Base Year Value (gCO2e/km)
Target Year
Target Year Value (gCO2e/km)
Target Coverage of Total Scope 3 emissions, base year (percent)Target Coverage of Scope 3, Category 11 emissions, base year (percent)Footnote
1

CSRD Metric
E1-4

Value
76%
2017
4,644,894
2035
1,114,775
30%
70%

2

Read more about the methodology in Climate Change — Achieving Carbon
Neutrality starting on page 59.
Greenhouse Gases (GHG) covered in Scope 1, 2, and 3 targets include CO2,
CH4, and N2O.

Footnotes
1.

E1-4

3

Methodology and Assumptions

50%
2019
330
2035
165
69%
78%

Market-based value

2. Value includes all of Scope 1 and Scope 2 emissions
3. The Scope 3 target covers vehicle use in the U.S., EU and U.K., andChina, representing the main regions where we operateFundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices138
Financial — Products and Services —Climate —Circular Economy —Water —

Human Rights —Product Safety —Human Capital — Employee Health and Safety — Community —Supply Chain Management

Performance Data
— continued

Methodology and Assumptions
Scope 1 and 2 calculations include all operations (manufacturing +non-manufacturing).
Ford’s Scope 2 calculations use the EPA eGRID and International Energy
Agency (IEA) grid average emission factors and mixes, in line with the GHG
Protocol Scope 2 Guidance. As these emission factor sources treat biomass
for electricity generation as a zero emissions source, Ford also treats
biomass as a carbon-free electricity source in its calculations.

Climate Change — continued
Value Chain Greenhouse Gas (GHG) Emissions
Scope 1 GHG Emissions
Gross Scope 1 GHG emissions (metric tons CO2e)
Percentage of Scope 1 GHG emissions from regulated emission trading schemes

Footnote
1
2

Scope 2 GHG Emissions (metric tons of CO2e)
Gross location-based GHG emissions
Gross market-based GHG emissions

1

Significant Scope 3 GHG Emissions (metric tons CO2e)
Total gross indirect Scope 3 GHG emissions
Category 1 — Purchased goods and services — supplier emissions
Category 11 — Use of sold products — vehicle use (WTW)
Scope 3 Miscellaneous
Category 2 — Capital goods
Category 3 — Fuel and energy-related activities (not included in Scope 1 or 2)
Category 4 — Upstream transportation and distribution
Category 5 — Waste generated in operations
Category 6 — Business travel
Category 7 — Employee commuting
Category 8 — Upstream leased assets
Category 9 — Downstream transportation
Category 10 — Processing of sold products
Category 12 — End-of-life treatment of sold products
Category 13 — Downstream leased assets
Category 14 — Franchises
Category 15 — Investments

3

Total GHG Emissions (metric tons of CO2e)
Total location-based GHG emissions
Total market-based GHG emissions

CSRD Metric
E1-6

2022

2023

1,069,907—

1,197,739
13%

1,108,815
14%

E1-6
—
2,000,128

2,557,258
1,565,270

2,389,387
1,355,152

342,825,043
45,957,880
289,146,167
7,720,996
2,283,630
620,502
1,481,396
5,515
11,482484,506———
876,165—
1,957,800—

370,223,095
40,523,517
319,568,185
10,131,393
3,692,787
749,237
1,936,637
6,634
26,712564,852———
1,178,242—
1,976,291—

384,119,775
43,018,074
332,412,213
8,689,489
2,250,884
749,237
1,936,637
6,634
26,712564,852———
1,178,242—
1,976,291——
345,895,078

373,978,091
372,986,104

387,617,977
386,583,742

E1-6

8
4

5
6
7
7
7
1, 3

2021

E1-6

Read more about the methodology in Climate Change — Achieving Carbon
Neutrality starting on page 59; Further details on methodology,
assumptions and emission factors for all scopes can be found in our 2023
CDP submission.
Scope 3 category 11 methodology includes vehicle emissions from anenergy-cycle (fuel and electricity) perspective, well-to-wheels (WTW),
which includes both the production and consumption of the energy usedby the vehicles. Lifetime is defined as 150,000 miles (241,000 km) for light
duty vehicles and 185,000 miles (298,000 km) for heavy duty vehicles.
Read more on page 45 and 60.

Footnotes
1.

2023 Scope 1 and 2 data are preliminary and will be third-party
verified at a later date

2. 2023 Scope 1 emissions for Emission Trading Schemes (ETS) are
estimated and will be third-party verified according to the local
requirements at a later date. Regulated emission schemes included inthis calculation are EU ETS, Ontario Emissions Performance Standards(EPS), and UK ETS
3. Preliminary estimates of 2023 Scope 3 GHG emissions. Final data will
be available in July 2024 and reported to CDP. Scope 3 emissions for2022 and 2021 were reported and updated in the 2023 CDP report
4. Miscellaneous Scope 3 emissions categories include upstream anddownstream transportation and distribution, business travel, capital
goods, franchises, etc
5. Included in Scope 1 GHG Emissions calculation
6. Included in Scope 3 GHG Emissions category 4
7.

Emissions are not relevant. See CDP report for further details

8. Category 11 values are calculated using well-to-wheels (WTW)
methodology and include light duty (LDV) and heavy duty (HDV). Read
more on page 60. 2021 and 2022 values have been updated to include
all regions and fleetsFundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices139
Financial — Products and Services —Climate —Circular Economy —Water —

Human Rights —Product Safety —Human Capital — Employee Health and Safety — Community —Supply Chain Management

Performance Data
— continued

Climate Change — continued
Vehicle Fuel Economy and CO2 Emissions
Ford U.S. Corporate Average Fuel Economy (mpg)
Cars (domestic and import)
TrucksLight duty fleet (combined car and truck)
Ford U.S. CO2 Tailpipe Emissions per Vehicle (g/mi)
Light duty fleet (combined car and truck) average CO2 emissions
Europe CO2 Tailpipe Emissions (g/km)
Ford Europe CO2 Tailpipe Emissions per Passenger Vehicle

Footnote CSRD Metric
1

1

2022

2023

39.7
29.1
30.2

42.9
29.6
30.7

71.4
29.2
31.3

298

292

289

118.01113.71

202.16199.35

123.64211.70—113.35200.69———Available
July 2024
Available
July 2024
112.65194.35
Available
July 2024
Available
July 2024

Methodology and Assumptions
Ford U.S. Corporate Average Fuel Economy for Truck and combined
Car and Truck fleets include 0.5 miles per gallon (mpg) flex fuel vehicle(FFV) credits.
Ford U.S. CO2 Tailpipe Emissions per vehicle includes FFV credits.
Ford U.S. Car (domestic and import), Truck, and combined Car and Truck(mpg and CO2) fleets do not include A/C, Off-Cycle credits, or Advanced
Technology multipliers.

2

Ford Europe CO2 Tailpipe Emissions per Light Commercial Vehicle
Ford Switzerland CO2 Tailpipe Emissions per Passenger Vehicle
Ford Switzerland CO2 Tailpipe Emissions per Light Commercial Vehicle
Ford United Kingdom CO2 Tailpipe Emissions per Passenger Vehicle

2021

3
3

Ford United Kingdom CO2 Tailpipe Emissions per Light Commercial Vehicle

Ford China Corporate Average Fuel Consumption (L/100km)
Ford (China) Import
Jiangling Motors Corporation (JMC)
Changan Ford Automobile Corporation (CAF)

4

Ford China Corporate Average Tailpipe Emissions (g CO2/km)
Ford (China) Import
Jiangling Motors Corporation (JMC)
Changan Ford Automobile Corporation (CAF)

4

Global Fleet Efficiency
Well-to-wheels intensity (LDV and HDV) (gCO2e/km)
Well-to-wheels intensity (LDV) (gCO2e/km)
Well-to-wheels intensity (HDV) (gCO2e/km)
Percent reduction in well-to-wheels gCO2e/km intensity (LDV and HDV) since 2019 (SBTi)
Percent reduction/(increase) in well-to-wheels gCO2e/km intensity (LDV only) since 2019
Percent reduction/(increase) in well-to-wheels gCO2e/km intensity (HDV only) since 2019

1
5
6
7
5

10.68
9.21
7.14

1
1

1
1

E1-4

11.11
8.83
7.09

11.95
8.46
7.77

253.12
218.28169.22263.31209.27168.03283.26200.63184.13

303
254
630
8%
5%
(2)%

311
250
607
6%
6%
1%

311
251
589
6%
6%
4%

Read more about the methodology in Climate Change — Achieving Carbon
Neutrality starting on page 59; Further details on methodology,
assumptions and emission factors can be found in our 2023 CDP
submission.

Footnotes
1.

2022 and 2021 data have been updated to reflect final values.
Previous reporting based on preliminary data. 2023 data are preliminary

2. From 2021 onwards the new European Worldwide Harmonized Light
Vehicles Test Procedure (WLTP) standard is applied replacing the New
European Driving Cycle (NEDC) standard applied prior 2021
3. Swiss ministry (BFE) provisional CO2 Performance data. 2023 values
reflect compliance status with 100 percent (%) Fleet (WLTP)
4. The China import and domestic (involving our joint ventures) fuelconsumption values are reported separately
5. Global fleet efficiency intensity and reductions (our SBTi target)
include both light duty (LDV) and heavy duty (HDV) vehicles in the
U.S., EU and U.K., and China, representing the main regions where we
operate6. LDV includes cars and light trucks in U.S., M1 and N1 vehicles in EU and
U.K., and M1 vehicles in China
7.

HDV includes Class 2b-3 vehicles and light heavy duty and medium
heavy duty vehicles in U.S.

Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices140
Financial — Products and Services —Climate —Circular Economy —Water —

Human Rights —Product Safety —Human Capital — Employee Health and Safety — Community —Supply Chain Management

Performance Data
— continued

Climate Change — continued
Additional Scope 1 and Scope 2 Greenhouse Gas (GHG) Emissions Data
Worldwide Operations (Manufacturing and Non-Manufacturing) GHG
Emissions (million metric tons CO2e)
Scope 1 (Direct)
Scope 2 (Indirect)
Total
Worldwide Manufacturing Facility GHG Emissions (million metric tons CO2e)
Scope 1 (Direct)
Scope 2 (Indirect)
Total

Footnote
1, 2

CSRD Metric
E1-6

3

2021

2022

2023

Scope 1 and 2 GHG Emissions Intensity calculations include all operations(manufacturing + non-manufacturing).
1.07
2.00
3.07

1.20
1.57
2.76

1.11
1.36
2.46

0.90
1.61
2.51

0.97
1.27
2.25

0.95
1.08
2.03

2021
—

2022
40.5%

2023
47.0%

—

43.5%

49.0%

—

22.3%

19.4%

1, 2
3

Absolute GHG Emissions Reductions
Footnote
Worldwide operations (manufacturing + non-manufacturing) Scope 1 and 2
GHG emission reductions since 2017 (percent) (SBTi)
Manufacturing facility operations Scope 1 and 2 GHG emission reductions since2017 (percent)Total Scope 3 GHG emission reductions since 2019 (percent)

CSRD Metric4

Read more about the methodology in Climate Change — Achieving
Carbon Neutrality starting on page 59; Further details on methodology,
assumptions and emission factors for all scopes can be found in our2023 CDP submission.

1.

2023 data are preliminary and will be third-party verified at a later date

2. 2022 values have been updated to the final third-party verified
numbers
3. Market-based value

Footnote
1, 4, 5

CSRD Metric
E1-6

2021

2022

2023

—
—
—
—
—

—
—
—
—
—

2,199,875
2,194,005
176.2
0.0
176.2

2021

2022

2023

—
—

—
—

0
0

$
$
$

Biogenic Emissions of CO2
Biogenic Emissions of CO2 (metric tons of CO2e)
From combustion or bio-degradation of biomass not included in Scope 1
From combustion or bio-degradation of biomass not included in Scope 2

Ford’s Scope 2 calculations use the EPA eGRID and International Energy
Agency (IEA) grid average emission factors and mixes, in line with the
GHG Protocol Scope 2 Guidance. As these emission factor sources treat
biomass for electricity generation as a zero emissions source, Ford also
treats biomass as a carbon-free electricity source in its calculations.

Footnotes

GHG Emissions Intensity
Total GHG Emissions Intensity
Total location-based GHG emissions per net revenue (tons of CO2e/billion USD)
Total market-based GHG emissions per net revenue (tons of CO2e/billion USD)
Net revenue used to calculate GHG intensity (billion USD)
Net revenue (other) (billion USD)
Total net revenue (in financial statements) (billion USD)

Methodology and Assumptions

Footnote
1

CSRD Metric
E1-6

4. Preliminary estimate of 2023 Scope 3 GHG emissions. Final data will
be available in July 2024 and reported to CDP
5. Net revenue from Form 10-K, page 77

Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices141
Financial — Products and Services —Climate —Circular Economy —Water —

Human Rights —Product Safety —Human Capital — Employee Health and Safety — Community —Supply Chain Management

Performance Data
— continued

Climate Change — continued
Operational Energy Use
Energy Consumption and Mix
Total fossil energy consumption (megawatt hours)
Share of fossil sources in total energy consumption (percent)
Fuel consumption from coal and coal products (megawatt hours)
Fuel consumption from crude oil and petroleum products (megawatt hours)
Fuel consumption from natural gas (megawatt hours)
Fuel consumption from other fossil sources (megawatt hours)
Consumption of purchased/acquired electricity, heat, steam, cooling from fossil sources (megawatt hours)
Consumption from nuclear sources (megawatt hours)
Share of consumption from nuclear sources in total energy consumption (percent)Total renewable energy consumption (megawatt hours)
Share of renewable sources in total energy consumption (percent)
Fuel consumption from renewable sources, including biomass (also comprising industrial and municipal
waste of biologic origin, biogas, renewable hydrogen, etc.) (megawatt hours)
Consumption of purchased/acquired electricity, heat, steam, cooling from renewable sources(megawatt hours)
The consumption of self-generated non-fuel renewable energy (megawatt hours)
Total energy consumption (megawatt hours)

Footnote
1

CSRD Metric
E1-5

2023
8,180,451
69%
45,431
107,394
5,893,701
0%2,133,926
1,014,191
9%
2,689,818
23%
02,596,556
93,263
11,884,460

Energy Generation
Non-renewable energy (megawatt hours)
Renewable energy (megawatt hours)

1

Energy Intensity
Total Net Revenue (billion USD)
Net revenue from activities in high climate impact sectors used to calculate energy intensity (billion USD)
Net revenue (other) (billion USD)
Total Energy Consumption in high climate impact sectors (megawatt hours)
Energy Intensity (total energy consumption per net revenue) associated with activities in high climate impact
sectors (megawatt hours/billion USD)

1, 3
2

E1-5
158,820
115,739
E1-5
$
$
$

176.2
176.2
0.0
11,884,460
67,449

Methodology and Assumptions
Operational Energy Use is calculated in Ford’s GHG inventory. Read more
about methodologies and assumptions in Climate Change — Achieving
Carbon Neutrality starting on page 64.
Calculations include all operations (manufacturing + non-manufacturing).

Footnotes
1.

2023 data is preliminary and will be third-party verified at a later date

2. Net revenue from Form 10-K, page 77
3. Ford assumes that all energy consumption from our operations is
associated with High Climate Impact Sectors, including Sections C.29,
C.30, C.33, G, H, L.64.2, and L.64.9 12 of Annex I to Regulation (EC) No
1893/2006 of the European Parliament and of the Council (as definedin Commission Delegated Regulation (EU) 2022/1288)

Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices142
Financial — Products and Services —Climate —Circular Economy —Water —

Human Rights —Product Safety —Human Capital — Employee Health and Safety — Community —Supply Chain Management

Performance Data
— continued

Climate Change — continued
Operational Energy Use (continued)
Worldwide Manufacturing Facility Energy Consumption(million megawatt hours)
Direct (Scope 1)
Indirect (Scope 2)
Total
Amount of Manufacturing Renewable/Carbon-free Electricity
Total Renewable Electricity (million megawatt hours)
Total Carbon-free Electricity (million megawatt hours)
Percent Renewable Electricity
Percent Carbon-free Electricity

Footnote
1, 2

CSRD Metric

2021

2022

2023

5.02
4.82
9.84

5.31
4.97
10.29

5.17
4.91
10.09

1.42
—
32.4%
—

2.03
—
44.8%
64.6%

2.29
3.18
50.8%
70.5%

Methodology and Assumptions
Operational Energy Use is calculated in Ford’s GHG inventory. Read more
about methodologies and assumptions in Climate Change — Achieving
Carbon Neutrality starting on page 64.
Calculations only include global manufacturing facilities.

1, 2Footnotes
1.

2023 data is preliminary and will be third-party verified at a later date

2. 2022 and 2021 values have been updated to the final third-party
verified numbers

Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices143
Financial — Products and Services —Climate —Circular Economy —Water —

Human Rights —Product Safety —Human Capital — Employee Health and Safety — Community —Supply Chain Management

Performance Data
— continued

Climate Change — continued
Scope 2 Greenhouse Gas (GHG) Contractual Instruments
Footnote
Energy Attribute Certificates (EACs)
Guarantees of Origin
Unbundled (total megawatt hours)
Unbundled (percent of total electricity)
Bundled (total megawatt hours)
Bundled (percent of total electricity)
International Renewable Energy Certificates (iRECs)
Unbundled (total megawatt hours)
Unbundled (percent of total electricity)
Bundled (total megawatt hours)
Bundled (percent of total electricity)
Renewable Energy Certificates (RECs)
Bundled (total megawatt hours)
Bundled (percent of total electricity)
Utility Renewable and Nuclear Portfolio
Bundled (total megawatt hours)
Bundled (percent of total electricity)
Emission Free Energy Certificates (EFECs)
Bundled (total megawatt hours)
Bundled (percent of total electricity)
Total Electricity Consumption Covered by
Bundled EACs (percent)Unbundled EACs (percent)Total (bundled and unbundled) EACs (percent)Total market-based emissions avoided due to EACs (metrics tons CO2e)
Percent of total Scope 2 (location-based) emissions avoided due to EACs in the Scope 2 (market-based) method
Percent of total Scope 2 (market-based) emissions avoided due to EACs in the Scope 2 (market-based) method

CSRD Metric
E1-6

2023

1
509,146
9.4%
144,293
2.7%

Methodology and Assumptions
Greenhouse Gas (GHG) contractual instrument values are calculated inFord’s GHG inventory. Read more about methodologies and assumptionsin Climate Change — Achieving Carbon Neutrality starting on page 64.
Calculations include all operations (manufacturing + non-manufacturing).

1378,200
7.0%
344,0966.4%
1464,9648.6%
1230,5694.3%
1425,223
7.9%
1
29.8%
16.4%
46.3%
1,034,235
43.3%
0.0%

Footnotes
1.

2023 values are preliminary and will be third-party verified at alater dateFundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices144
Financial — Products and Services —Climate —Circular Economy —Water —

Human Rights —Product Safety —Human Capital — Employee Health and Safety — Community —Supply Chain Management

Performance Data
— continued

Climate Change — continued
Releases (Volatile Organic Compounds (VOC) Emissions and Other)Footnote
VOCs released by assembly facilities (grams per meter squared)
Ford U.S. Toxics Release Inventory (TRI) releases (million pounds)
Ford U.S. Toxics Release Inventory (TRI) releases per vehicle (pounds per
vehicle)Ford Canada National Pollutant Release Inventory (NPRI) releases (metric tons)
Ford Canada National Pollutant Release Inventory (NPRI) releases per vehicle(metric tons per vehicle)

CSRD Metric

1
1

2021
22.6
2.4
1.4

2022
20.8
2.3
1.4

2023
20.0
2.4
1.3

1
1

239
0.0016196
0.0019217
0.0017

Methodology and Assumptions
U.S. Average Oxides of Nitrogen (NOx) and Non-Methane Organic Gases(NMOG) emissions are calculated as described by EPA Regulation(40 CFR 86.1811-17).

Footnotes
1.

Non-CO2 Tailpipe Emissions
Footnote

CSRD Metric

2021

2022

2023
Available
July 2024
Available
July 2024

Ford U.S. Average NOx and NMOG Emissions (g/mile)
Passenger cars

20.05700.0500All light duty

30.06000.05202023 data shows 2022 calendar year result

2. Passenger car fleet average Federal Test Procedure (FTP) NMOG + NOx
Emissions from Tier 3 reports
3. LDT2, LDT3, LDT4, and Medium Duty Passenger Vehicle (MDPV) fleet
average Federal Test Procedure (FTP) NMOG + NOx emissions fromTier 3 reporting data (LDT = Light Duty Truck)Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices145
Financial — Products and Services —Climate — Circular Economy — Water —Human Rights — Product Safety —Human Capital — Employee Health and Safety — Community — Supply Chain Management

Performance Data
— continued

Circular Economy and End of Life
Waste
Footnote
Regional Waste to Landfill (million kilograms)
North America
South America
EuropeChina
International Markets Group (IMG)
Total

CSRD Metric
E5-5

2021

2022

2023

12.3
0.0
1.3
0.0
2.7
16.3

15.0
0.0
1.0
0.0
2.3
18.3

14.9
0.0
0.2
0.0
1.2
16.3

4.3

4.4

3.8

8.1
1.8
18.8
3.2
4.4

7.5
0.7
20.4
3.4
5.2

9.1
1.1
19.9
3.0
4.7

9.6

8.9

8.7

0.7
9.7
0.0
7.3
4.6
0.0
2.2
5.1
7.1
36.8

0.8
9.9
0.0
5.7
2.7
0.0
2.1
6.1
9.8
37.2

0.8
11.2
0.0
3.8
3.2
0.0
0.6
5.3
12.8
37.7

Waste to Landfill per Vehicle (kilograms)

Regional Hazardous Waste Generation (million kilograms)
North America
South America
EuropeChina
International Markets Group (IMG)

E5-5

Hazardous Waste Generation per Vehicle (kilograms)

Hazardous Waste by Disposal Method (million kilograms)
Reuse
Recycling
Composting
Recovery, including energy reduction
Incineration (mass burn)
Deep well injection
Landfill
On-site storage
Other (yard waste, etc.)
Total

E5-5

Methodology and Assumptions

Footnotes

Fundamentals —Sustainability at Ford—

Products and Services—

Environment—

Social— Governance— Data — Appendices146
Financial —Products and Services —Climate —Circular Economy —Water —

Human Rights —Product Safety — Human Capital —Employee Health and Safety —Performance Data
— continued

Circular Economy and End of Life — continued
Waste (continued)
Footnote
Non-Hazardous Waste by Disposal Method (million kilograms)
Reuse
Recycling
Composting
Recovery, including energy reduction
Incineration (mass burn)
Deep well injection
Landfill
On-site storage
Other (yard waste, etc.)
Total
Total Waste by Type and Disposal Method (million kilograms)
Reuse
Recycling
Composting
Recovery, including energy reduction
Incineration (mass burn)
Deep well injection
Landfill
On-site storage
Other (yard waste, etc.,)
Total

CSRD Metric
E5-5

2022

2023

9.6
752.9
3.1
23.3
5.9
0.0
14.1
4.8
10.4
824.3

5.9
1,038.9
3.6
23.9
3.4
0.0
16.3
5.6
23.2
1,120.8

6.4
927.6
4.2
17.5
3.1
0.0
15.7
6.5
23.9
1,004.9

10.3
762.7
3.1
30.7
10.5
0.0
16.3
10.0
17.6
861.1

6.7
1,048.9
3.6
29.7
6.1
0.0
18.4
11.7
33.0
1,158.0

7.2
938.8
4.2
21.3
6.3
0.0
16.3
11.8
36.6
1,043.0

430,621
15,561
137,156
11,43929,870624,647

575,406
6,078
259,254
31,95746,019918,714465,7206,280
269,690
7,311
50,572
799,573

0.86
90%

1.13
91%

1.04
91%

E5-5

Scrap Metals (metric tons)
North America
South America
EuropeChina
International Markets Group (IMG)
GlobalTotal Waste and Percent Recycled and Reused
Total waste (million metric tons)
Percent Recycled and Reused

2021

E5-5

Methodology and Assumptions

Footnotes

Community — Supply Chain Management

Fundamentals —Sustainability at Ford—

Products and Services—

Environment—

Social— Governance— Data —Appendices147
Financial —Products and Services —Climate — Circular Economy —Water —

Human Rights —Product Safety —Human Capital —Employee Health and Safety —Performance Data
— continued

Circular Economy and End of Life — continued
Waste (continued)
Footnote

CSRD Metric

Zero Waste to Landfill (ZWTL)ZWTL sites globally
Percentage of manufacturing facilities that are true ZWTL

2021

2022

2023

89
74%

84
74%

86
77%

Methodology and Assumptions

Footnotes

Waste Reductions (absolute)
Reduction/(increase) in waste sent to landfill since previous year (percent)Waste Diverted from/Directed to Disposal
Hazardous Waste Diverted from Disposal (Total)
Non-Hazardous Waste Diverted from Disposal (Total)
Hazardous Waste Directed to Disposal (Total)
Non-Hazardous Waste Directed to Disposal (Total)

E5-5

Other Waste
Non Recycled Waste (percent)
Non Recycled Waste (Total)
Amount of Radioactive Waste (Total)

E5-5

—

(4.4)%

8.0%

—
—
—
—

16,464,897
1,991,117,472
20,747,540
48,696,587

15,784,947
1,755,286,051
21,895,012
49,154,479

—
—
—

—
—
—

9%
96,587,333
0Community — Supply Chain Management

Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices148
Financial —Products and Services —Climate — Circular Economy —Water —

Human Rights —Product Safety —Human Capital —Employee Health and Safety —Community — Supply Chain Management

Performance Data
— continued

Water Resources
Water
Footnote

CSRD Metric

2021

2022

2023

Methodology and Assumptions
Ford views the terms Reuse and Recycle as equal.

Water Usage
Global Water Use per Vehicle Produced (cubic meters)

3.75

3.51

3.48

Global Water Use by Source (million cubic meters)
City water
Surface water
Well water
Total

11.7
0.1
2.4
14.2

12.1
0.1
2.9
15.1

12.3
0.1
3.2
15.6

E3-4

Ford views the terms Consumption and Usage interchangeably.

Footnotes
1.

3.3 million cubic meters of freshwater

2. Ford does not store water of any significant amount
Total Water Consumption and Intensity (million cubic meters)
Total Water Consumption in Areas at Water Risk
Total Water Recycled
Total Water Reused
Total Water Stored
Changes in Water Storage
Regional Water Use (million cubic meters)
North America
South America
EuropeChina
International Markets Group (IMG)
Water used at manufacturing sites

E3-4
1

2
2

—
—
—
—
—

—
—
—
—
—

3.3
0.6
0.6
—
—

8.2
0.2
2.8
1.8
1.3
—

8.6
0.3
3.3
1.7
1.2
—

8.7
0.2
3.7
1.6
1.3
15.6

0.97

0.89

0.61

7.1

7.3

7.6

—
—
—
—
—
—

21.7%
(6.8)%
76.2%
186.3
8%
6%

19.4%
(2.9)%
75.5%
199.0
9%
4%

E3-4

Reuse From On-Site Wastewater Treatment Plant (million cubic meters)

Process Wastewater Discharge (million cubic meters)

Freshwater Reduction
Reduction in absolute freshwater use (percent from 2019)
Reduction/(increase) in absolute freshwater use (percent from previous year)
Reduction in annual freshwater consumption since 2000
Water saved since 2000 (billion gallons)
Amount of water use from an alternative water source in water scarce areas
Water reused (percentage)Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices149
Financial —Products and Services —Climate — Circular Economy —Water —

Human Rights — Product Safety —Human Capital — Employee Health and Safety —Community — Supply Chain Management

Performance Data
— continued

Human Rights
Corporate Human Rights Risk Assessments
Human Rights Risk Assessments conducted (number)
Human Rights Risk Assessments conducted (percent)
Human Rights Risk Assessments conducted since 2004

Footnote
1, 2, 42
2, 3, 4

CSRD MetricFootnote

CSRD Metric

2022
26
50%
99

2023
48
100%
147

2022

2023

258
31%
313
19%

323
25%
377
20%

2022

2023

844
2,647

406
400

979
60
133
258
102
18%

1,632
48
133
160
58
13%

Supply Chain CDP Response Summary
Supplier Participation in CDP Questionnaires
Suppliers that responded to CDP Water Security (number)
Increase in supplier response to CDP Water Security from previous reporting year (percent)
Suppliers that responded to CDP Climate Change (number)
Increase in supplier CDP Climate Change responses from previous reporting year (percent)Sustainability Training
Footnote
Supply Chain Sustainability Training (number)
Ford Purchasing Employees Trained
Other Ford Employees Trained
Supplier Training
Suppliers Trained (number)
Direct engagements with Suppliers (number)
Ford led live webinars on responsible 3TG, cobalt, and mica due diligence (number)Live webinars on country-level topics by Drive Sustainability (Ford support) (number)
RMI eLearning training participation (number of suppliers)
RMI eLearning training participation (percent of invited suppliers)

5
6
7

CSRD Metric

Methodology and Assumptions
To support our internal due diligence activities, we continue to rely on
Self-Assessment Questionnaires from the Responsible Business Alliance(RBA) to assess human rights risk in a quantitative process. The facility
assessments identify potential gaps in systems, policies, and practices
related to labor, health and safety, environment, and ethics in addition
to human rights. Assessments are conducted at Ford fully owned andmajority owned joint venture manufacturing facilities. Facility responses
are reviewed for accuracy by Global Sustainability, Labor Affairs, Officeof General Counsel (OGC), People Matters, Environmental Quality Office(EQO), and Health and Safety.
Starting in 2023, the assessments became a key component of Ford’s
updated risk management system compliant with the German Supply
Chain Due Diligence Act.

Footnotes
1.

One assessment may encompass multiple facilities based on factors
such as shared management and proximity

2. Assessments are carried out at all of Ford’s global manufacturing
facilities, including majority-owned joint ventures
3. The cumulative counts since 2004 include Ford and RBA assessments
4. The 2022 reported numbers in the 2023 Human Rights Progress
Report and Integrated Sustainability and Financial Report on
cumulative assessments conducted were found to be in error. The
reported count of 35 Human Rights Assessments (2022) and 109
Human Rights Assessments since 2004 have been updated to thecorrect figure of 26 and 99 based on the outlined assumptions
respectively
5. Includes all RBA Academy Supplier training
6. Ford administered training to suppliers
7.

Includes all supplier training, both live in person and in webinar form

Fundamentals —Sustainability at Ford —Products and Services —Environment—

Social —Governance — Data —Appendices150
Financial —Products and Services —Climate — Circular Economy —Water —

Human Rights — Product Safety —Human Capital — Employee Health and Safety —Community — Supply Chain Management

Performance Data
— continued

Human Rights — continued
Supply Chain Management — Human Rights Assessments
Total
42%

Percentage of total supply base audited to date (since 2003)
Footnote
Initial Audit Assessments — (Cumulative since 2003) (number)
North America
South America
Europe
China
IMG
Total

Follow Up Audit Assessments — (Cumulative since 2003) (number)
North America
South America
Europe
China
IMG
Total

RBA Supplier On-Site Audit Results
Audited sites that required a follow-up audit (percent)Follow-up audits that have completed final closure audit (percent)Sites audited that submitted a CAP approved by a third party (percent)
Average score improvement among audited sites (percent)
Supplier relationships ended as a result of audit findings (number)
Supplier sourcing put on hold as a result of audit findings (number)

CSRD Metric

CSRD Metric

Total
225
374
192
460
474
1,725

1
Footnote

Total
180
242
144
379
353
1,298

1
Footnote

Responsible Business Alliance (RBA) Supplier On-Site Audit Summary
Suppliers audited in reporting year (number)
Sites audited in reporting year (number)
Percentage of total supply base audited this year

CSRD Metric

2022

2023

2

25
25
0.60%

46
47
1.47%

3
4

84%
5%
76%
67%
0
0

65%
15%
61%
73%
0
0

Methodology and Assumptions
Ford is the assumed to be the third party for the Responsible Business
Alliance (RBA) On-Site Audit Results.
RBA Supplier On-Site Audit Score Improvement percent (%) = (Average
Closure Score — Average Initial Score) / Average Initial Score.

Footnotes
1.

Totals include audits performed by Ford, RBA and RSCI since 2003

2. In 2023, supplier audits include both Responsible Business Alliance(RBA) Validated Audit Procedure (VAP) and Responsible Supply Chain
Initiative (RSCI)
3. Percent of suppliers that have priority non-conformances in a year
4. Percent of sites that completed multiple closure audits in a given year

Fundamentals —Sustainability at Ford —Products and Services —Environment—

Social —Governance — Data —Appendices151
Financial —Products and Services —Climate — Circular Economy —Water —

Human Rights — Product Safety —Human Capital — Employee Health and Safety —Community — Supply Chain Management

Performance Data
— continued

Human Rights — continued
Supply Chain Management — Human Rights Assessments (continued)
Footnote
RBA Supplier On-Site Audit Scores — Initial and Closures (Average)
Initial Audit Score (average)
Closure Audit Score (average)
Percent of suppliers audited that had non-conformance

CSRD Metric

2021
107
189
—

2022
104
174
100%

2023
79
137
100%

RBA Supplier On-Site Audit Findings — category non-conformances found in initial audits conducted (non-conformance type percent of total)
Management Systems
29%
28%
Labor
28%
38%
Health and Safety28%
27%
Environment
11%6%
Ethics
3%
1%

40%
28%
18%
7%
3%

RBA Supplier On-Site Audit Findings — category non-conformances found in initial audits conducted (percent of non-conformance category)Management System
Supplier Responsibility
24%
30%
Risk Assessment and Risk Management
11%
9%Communication
6%
6%
Company Commitment
1%
2%
Documentation and Records
6%
1%
Audits & Assessments
15%
15%Management Accountability and Responsibility
15%
17%
Improvement Objectives
8%
8%
Legal and Customer Requirements
7%5%
Training
3%
4%
Worker Feedback and Participation
4%
2%
Corrective Action Process
2%
1%

20%
19%
13%
8%
4%
2%
1%
1%
1%
1%
0%
0%

Methodology and Assumptions
In 2023, supplier audits include both Responsible Business Alliance(RBA) Validated Audit Procedure (VAP) and Responsible Supply Chain
Initiative (RSCI).

Footnotes

Fundamentals —Sustainability at Ford—

Products and Services—

Environment—

Social —Governance— Data —Appendices152
Financial —Products and Services —Climate — Circular Economy —Water — Human Rights —Product Safety —Human Capital —Employee Health and Safety — Community — Supply Chain Management

Performance Data
— continued

Human Rights — continued
Supply Chain Management — Human Rights Assessments (continued)
Footnote

CSRD Metric

2021

2022

2023

Labor
Working hours
Wages and Benefits
Freely Chosen Employment Policies and Management Systems
Non-Discrimination
Freedom of Association
Child Labor Avoidance Policies and Management Systems
Humane Treatment
Presence of Forced Labor
Prevalence of Child Labor

86%
16%
21%
14%
4%
9%
0%
0%
0%

38%
16%
25%
11%
6%
3%
1%
0%
0%

36%
22%
15%
6%
3%
3%
3%
0%
0%

Health and Safety
Emergency Preparedness
Occupational Safety
Occupational Injury and Illness
Food, Sanitation and Housing
Industrial Hygiene
Machine Safeguarding
Physically Demanding Work
Health and Safety Communication

37%
26%
15%
11%
5%
3%
2%
2%

44%
22%
16%
11%
3%
2%
1%
1%

50%
28%
15%
9%
9%
8%
5%
3%

Environment
Hazardous Substances
Air Emissions
Materials Restrictions
Energy Consumption and Greenhouse Gas Emissions
Water Management
Solid Waste
Pollution Prevention and Resource Reduction
Environmental Permits and Reporting

30%
14%
5%
16%
12%
9%
2%
12%

59%
9%
5%
18%
0%
0%
5%
4%

65%
19%
19%
14%
8%
10%
0%
0%

Methodology and Assumptions
In 2023, supplier audits include both Responsible Business Alliance(RBA) Validated Audit Procedure (VAP) and Responsible Supply Chain
Initiative (RSCI).

Footnotes

Fundamentals —Sustainability at Ford—

Products and Services—

Environment—

Social —Governance— Data —Appendices153
Financial —Products and Services —Climate — Circular Economy —Water — Human Rights —Product Safety —Human Capital —Employee Health and Safety — Community — Supply Chain Management

Performance Data
— continued

Human Rights — continued
Supply Chain Management — Human Rights Assessments (continued)
Footnote

CSRD Metric

2021

2022

2023

EthicsNo Improper Advantage
Disclosure of Information
Privacy
Protection of Identity and Non-Retaliation
Intellectual Property
Fair Business, Advertising, and Competition

15%
23%
8%
0%
23%
15%

67%
0%
33%
0%
0%
0%

25%
25%
17%
17%
8%
8%

Responsible Sourcing of Minerals

8%

0%

8%

Supplier Policy Gaps Identified in SAQ (percent)
Supply Chain Management
Environment
Working Conditions & Human Rights
Responsible Sourcing of Raw Materials
Business Ethics
Health & Safety
Company Management

In 2023, supplier audits include both Responsible Business Alliance(RBA) Validated Audit Procedure (VAP) and Responsible Supply Chain
Initiative (RSCI).
In 2023, the Drive Sustainability Self-Assessment Questionnaire (SAQ)(version 4.0 to 5.0) scope expanded increasing the number of gaps
identified.

Footnotes

Supply Chain — Drive Sustainability Self-Assessment Questionnaire (SAQ) Results
Footnote
1

Methodology and Assumptions

CSRD Metric

2021

2022

2023

37%
21%
5%
1%
22%
12%
2%

49%
15%
6%
1%
17%
10%
1%

40%
27%
11%
9%
5%
3%
5%

1.

Gap type as percent of totalFundamentals —Sustainability at Ford—

Products and Services—

Environment—

Social —Governance— Data —Appendices154
Financial —Products and Services —Climate — Circular Economy —Water — Human Rights —Product Safety —Human Capital —Employee Health and Safety — Community — Supply Chain Management

Performance Data
— continued

Human Rights — continued
Supply Chain — Drive Sustainability Self-Assessment Questionnaire (SAQ) Results (continued)
SAQ Findings — Supplier policy/practice gap identified (percent)Access to water and sanitation
Air quality
Child labor
Climate change — Greenhouse Gas (GHG) Emissions Reporting
Climate change — Energy Efficiency
Climate change — renewable energy
Equal and fair wages
Forced labor and ethical recruitment
Harassment and discrimination
Health and Safety — Management System
Health and Safety — Employee Training
Health and Safety — Formal Policy
Health and Safety — Other

Footnote
1

CSRD Metric

2021

2022

2023

12%
15%
5%
N/A
N/A
N/A
6%
6%
4%
9%
5%
4%
16%

10%
13%
5%
7%
6%
7%
4%
8%
4%
10%
4%
3%
8%

47%
19%
8%
51%
17%
25%
10%
24%
27%
10%
5%
7%
13%

2021

2022

2023

Supplier Due Diligence and Reporting Response Rate (percent)
Cobalt due diligence
Mica due diligence
Conflict mineral reporting

—
—
—

100%
100%
100%

100%
100%
100%

Reported Smelter Conformance Rates by Mineral (number)
Tin
Tungsten
TantalumGold
Cobalt
Mica

—
—
—
—
—
—

64
39
34
109
42
3

70
35
34
95
45
4

2

Supply Chain — Responsible Materials Sourcing
Footnote

CSRD Metric

Methodology and Assumptions
In 2023, the Drive Sustainability Sustainability Self-Assessment
Questionnaire (SAQ) (version 4.0 to 5.0) scope expanded increasing
the number of gaps identified.

Footnotes
1.

Percent of suppliers indicated

2. Forced labor and ethical recruitment includes human trafficking, which
was reported separately in previous reports

Fundamentals —Sustainability at Ford—

Products and Services—

Environment—

Social —Governance— Data —Appendices155
Financial —Products and Services —Climate — Circular Economy —Water — Human Rights —Product Safety —Human Capital —Employee Health and Safety — Community — Supply Chain Management

Performance Data
— continued

Human Rights — continued
Supply Chain — Responsible Materials Sourcing (continued)
Footnote
Reported Smelter Conformance Rates by Mineral (percent)Tin
Tungsten
TantalumGold
CobaltMica

CSRD Metric

2021

2022

2023

—
—
—
—
—
—

78%
77%
94%
62%
61%
19%

81%
66%
94%
54%
59%
17%

Map of Ford’s Battery Material Supply Chains to the Mine Site
Supplier Type
Battery
CathodeElectrolyte
Manufacturer
Traders
Refiner
Treatment Unit (TU)
Large Scale Mine (LSM)
Integrated TU/LSM
Other
Total

Footnote

1

CSRD Metric

Number of
Identified
Suppliers
5
5
1
9
41
34
14
18
13
11
151

Country of Operation
China, Poland, Korea, USA
China, Korea
China
China
China, Korea, Luxembourg, Netherlands, Singapore, Switzerland, United Arab Emirates
Chile, China, Democratic Republic of the Congo (DRC), Finland, Korea, Sweden
Australia, Chile, DRC, Finland, Indonesia, Russia, Turkey
China, DRC, Finland, Indonesia, Russia, Turkey
Australia, Chile, DRC, Turkey
China

Methodology and Assumptions

Footnotes
1.

“Other” includes unidentified types of recyclers and suppliersFundamentals —Sustainability at Ford —Products and Services —Environment—

Social —Governance — Data —Appendices156
Financial —Products and Services —Climate — Circular Economy —Water —

Human Rights — Product Safety —Human Capital — Employee Health and Safety —Community — Supply Chain Management

Performance Data
— continued

Human Rights — continued
Supply Chain — RCS Global Audit Results of OECD Due Diligence management systems
Total battery material suppliers identified (number)
Identified battery material suppliers audited (percent)
EV Battery Supply chain audits conducted in reporting year (number)
Results from EV Battery Supply Chain audits (non-conformance type percent of total)
Management System
Risk Assessment
Risk Mitigation
Public Reporting
Third party AuditsFootnote
1
2

CSRD Metric

2022
120
25%
11

2023
151
24%
15

3

Methodology and Assumptions

Footnotes
35%
23%
23%
9%
10%

46%
31%
10%
10%
4%

1.

Number of suppliers identified in supply chain as of December 31,
accounting for both newly identified and removed suppliers

2. Percent of suppliers audited out of total identified suppliers asof December 31
3. As defined by OECD Due Diligence Guidance for responsible supply
chains of minerals from Conflict-Affected and High Risk Countries

Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices
157
Financial —Products and Services —Climate — Circular Economy —Water —

Human Rights — Product Safety —Human Capital —Employee Health and Safety —Community — Supply Chain Management

Performance Data
— continued

Product Safety and Quality
Vehicle Safety
Footnote
Ford & Lincoln Nameplates With 5-star Overall Rating (number)
U.S. NCAP
Euro NCAP
China NCAP
Australia ANCAP
Available Ford and Lincoln Nameplates With 5-star Overall Rating (percent)U.S. NCAP
Euro NCAP
China NCAP
Australia ANCAP
Safety Recalls
Number of safety recalls (Global)
Number of passenger vehicle recalls Global (million)
Number of safety recalls (U.S.)
Number of U.S. passenger vehicle recalls (million)

1

CSRD Metric

2021
12
10
2
—

2022
10
8
1
—

2023
10
7
7
5

Methodology and Assumptions
In addition to meeting or exceeding applicable laws and regulations, weestablish rating targets to achieve the desired performance in third-party
New Car Assessment Programs (NCAP) testing.

Footnotes

2

71%
83%
67%
—

—
—
53
5.4

56%
57%
81%
—

114
11.2
72
8.7

56%
64%
37%
71%

109
7.8
54
6.9

1.

For 2022 CY and earlier reports, we reported only nameplates thatwere awarded 5-star awards that calendar year. In 2023, we reported
the number of nameplates that have a valid 5-star rating to beconsistent with reporting for other regions

2. For 2022 CY and earlier report, we only included the nameplates thatwere rated for China NCAP to determine percentage. In 2023, weupdated the calculation to be based on all nameplates in the market
to be consistent with reporting for other regions

Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices158
Financial —Products and Services —Climate — Circular Economy —Water —

Human Rights — Product Safety —Human Capital — Employee Health and Safety —Community —Supply Chain Management

Performance Data
— continued

Human Capital Management and Diversity, Equity, and Inclusion
Workforce Profile
Footnote
Global Workforce by Region (percent)
United States
MexicoCanadaSouth America
EuropeChina
International Markets Group (IMG)111

Footnote
Total Workforce by Hourly and Salaried
HourlySalaried
Total company

CSRD Metric2
Footnote

Total Workforce by Hourly and Salaried, by Region (number) (2023)
United States
MexicoCanadaSouth America
EuropeChina
International Markets Group (IMG)
Total company

CSRD Metric

1
1
1

2

CSRD Metric

2021

2022

2023

49%
7%
4%
3%
21%
2%
14%

50%
7%
4%
3%
20%
2%
13%

51%
9%
4%
3%
19%
2%
13%

2021

2022

2023

105,000
70,000175,000

103,000
68,000171,000

104,000
69,000174,000

HourlySalaried

Total

59,00010,0005,000
3,000
19,0000
9,000
104,000

30,000
5,000
2,000
2,000
14,0003,000
13,00069,00089,00015,0007,000
5,000
32,0003,000
22,000174,000

Methodology and Assumptions
In 2023, Human Capital Management data has been consolidated into
a new analytics platform which improves the scalability and accuracyof employee related metrics. Ford’s 2021 and 2022 data shown has been
updated to use data from this new platform.
Global Workforce by Region = Regional Headcount / Total Headcount.
Hourly and Salaried Workforce data headcount rounded to thenearest thousand.
Global Workforce values include all Ford business units.

Footnotes
1.

North America is now disaggregated to reflect North Americancountries (United States, Mexico, and Canada)

2. Effective in 2023, Salaried Workforce data is reported as Headcount(number of heads) and does not include consolidated joint venture
employees in this report for all periods presented, while it is reported
as Full-Time Equivalent (FTE) and includes consolidated joint venturesin the Form 10-K

Fundamentals —Sustainability at Ford —Products and Services —Environment—

Social—Governance — Data —Appendices

159
Financial —Products and Services —Climate — Circular Economy —Water —

Human Rights — Product Safety —Human Capital — Employee Health and Safety —Community —Supply Chain Management

Performance Data
— continued

Human Capital Management and Diversity, Equity, and Inclusion — continued
Diversity
Global Salaried Employees by Gender (number)
Women
Men
Global Salaried Employees by Gender (percent)
Women
Men

Footnote
1

CSRD Metric

2021

2022

2023

19,00051,00019,00049,00019,00050,000

27.3%
72.6%

27.9%
72.1%

28.0%
71.9%

2021

2022

2023

1

Methodology and Assumptions
In 2023, Human Capital Management data has been consolidated into
a new analytics platform which improves the scalability and accuracyof employee related metrics. Ford’s 2021 and 2022 data shown has been
updated to use data from this new platform.
Hourly and Salaried Workforce data headcount is rounded to thenearest thousand.
Women Percentage Metrics = Number of women in a group / the total
known gender employees in the same group.

U.S. Diversity Data
Footnote
U.S. Diversity Performance Data (percent)Total Underrepresented Minority Group Personnel
Black/African American
Asian
Hispanic/Latino(a)Other Underrepresented Minorities
White
Total Underrepresented Minorities (Excluding White)
Salaried Underrepresented Minority Group Personnel
Black/African American
Asian
Hispanic/Latino(a)Other Underrepresented Minorities
White
Total Underrepresented Minorities (Excluding White)
Hourly Underrepresented Minority Group Personnel
Black/African American
Asian
Hispanic/Latino(a)Other Underrepresented Minorities
White
Total Underrepresented Minorities (Excluding White)

CSRD MetricFootnotes

2
3

2
3

2
3

22.4%
6.0%
4.2%
2.2%
64.9%
34.8%

23.6%
5.9%
4.3%
2.5%
63.1%
36.3%

23.8%
6.0%
4.3%
2.7%
61.9%
36.8%

8.4%
15.7%
4.1%
2.1%
69.2%
30.3%

8.5%
16.6%
4.3%
2.3%
67.1%
31.7%

8.6%
16.5%
4.3%
2.7%
65.4%
32.1%

30.3%
0.5%
4.3%
2.4%
62.4%
37.6%

31.3%
0.6%
4.3%
2.6%
61.0%
38.7%

31.5%
0.6%
4.3%
2.7%
60.1%
39.1%

1.

There are a small number of employees with Unknown, Non-Binary,or Non-Specific gender, thus Women and Men do not add up to
100 percent (%)

2. Other U.S. Underrepresented Minorities include Native Hawaiian or
Other Pacific Islander, American Indian or Alaska Native, and Two orMore Races
3. ”U.S. Underrepresented Minority” is defined as Black/Africa American,
Asian, Hispanic/Latino(a), Native Hawaiian or Other Pacific Islander,
American Indian or Alaska Native, and Two or More Races. There area small number of employees with Unknown and Not Disclosed
ethnicity, thus Underrepresented Minority and White do not add up
to 100 percent (%)

Fundamentals —Sustainability at Ford —Products and Services —Environment —Social —Governance — Data —Appendices160
Financial —Products and Services —Climate —Circular Economy —Water —

Human Rights —Product Safety —Human Capital —Employee Health and Safety —Community —Supply Chain Management

Performance Data
— continued

Human Capital Management and Diversity, Equity, and Inclusion — continued
U.S. Diversity Data (continued)
Footnote
U.S. Women Salaried and Hourly Employees (number)
Salaried
HourlyOverall
U.S. Women Salaried and Hourly Employees (percent)Salaried
HourlyOverall

1

CSRD Metric

2021

2022

2023

9,000
13,00021,0008,000
14,00022,0008,000
14,00023,000

27.5%
23.4%
24.9%

27.8%
24.1%
25.4%

27.6%
24.4%
25.5%

Methodology and Assumptions
Hourly and Salaried Workforce data headcount is rounded to thenearest thousand.
Overall Hourly and Salary data is rounded from exact headcount values.

Footnotes
1.

2023 total was greater than 22,500 and was rounded up to 23,000

Fundamentals —Sustainability at Ford—

Products and Services —Environment—

Social —Governance— Data —Appendices161
Financial —Products and Services —Climate — Circular Economy —Water —

Human Rights — Product Safety —Human Capital — Employee Health and Safety —Community —Supply Chain Management

Performance Data
— continued

Human Capital Management and Diversity, Equity, and Inclusion — continued
Women in Management
Women in Top Management by Region (percent)
United States
MexicoCanadaSouth America
EuropeChina
International Markets Group (IMG)
Total

Women in Professional Level by Region (percent)
United States
MexicoCanadaSouth America
EuropeChina
International Markets Group (IMG)
Total

Women in Hourly/Production by Region (percent)
United States
MexicoCanadaSouth America
EuropeChina
International Markets Group (IMG)
Total

Footnote1444Footnote2444Footnote
3
4
4
4

5

CSRD Metric

CSRD Metric

CSRD Metric

2021

2022

2023

Methodology and Assumptions
In 2023, Human Capital Management data has been consolidated into a new
analytics platform which improves the scalability and accuracy of employee
related metrics. Ford’s 2021 and 2022 data shown has been updated to use
data from this new platform.

26.9%
25.0%
22.2%
15.2%
14.5%
27.3%
13.6%
23.1%

29.0%
28.6%
15.6%
13.3%
16.2%
26.6%
15.8%
24.8%

29.0%
18.2%
12.1%
11.8%
18.7%
31.0%
16.7%
25.6%

2021

2022

2023

27.5%
28.5%
31.9%
27.3%
22.1%
42.4%
26.9%
27.2%

27.8%
29.1%
30.6%
28.5%
22.4%
42.6%
28.1%
27.8%

27.6%
29.6%
29.7%
29.3%
22.7%
43.6%
29.6%
27.9%

Footnotes

2021

2022

2023

5. China does not have employees that are classified as hourly

23.4%
22.0%
14.4%
7.3%
10.5%
0.0%
15.2%
19.0%

24.1%
21.6%
14.8%
8.4%
10.6%
0.0%
20.1%
20.0%

24.4%
25.1%
15.5%
7.9%
11.0%
0.0%
22.4%
21.1%

Women Percentage Metrics = Number of women in a group / the total known
gender employees in the same group.
Women Workforce by Region = Regional Headcount / Total Headcount of
only women.
Regional Workforce values include all Ford business units.

1.

“Top Management” refers to salaried employees (Women) who are seniordirector level or above

2. “Professional Level” refers to salaried employees (Women) who are not
top management
3. “Hourly/Production” refers to hourly employees (Women)
4. North America is now disaggregated to reflect North American countries(United States, Mexico, and Canada)Fundamentals —Sustainability at Ford —Products and Services —Environment—

Social—Governance — Data —Appendices162
Financial —Products and Services —Climate — Circular Economy —Water —

Human Rights — Product Safety —Human Capital — Employee Health and Safety —Community —Supply Chain Management

Performance Data
— continued

Human Capital Management and Diversity, Equity, and Inclusion — continued
Employee Engagement
Footnote
Voluntary Quit Rate by Major Markets (salaried employees) (percent)
United States
CanadaMexicoBrazilGermany
United Kingdom
China
India
Thailand

CSRD Metric

2021

2022

2023

Voluntary Quit Rate = Resignation Count / Average Headcount.
7.0%
4.5%
6.7%
4.9%
0.4%
3.4%
10.3%
10.1%
2.4%

5.7%
6.6%
7.5%
7.7%
0.5%
3.5%
10.6%
18.8%
3.5%

3.6%
3.6%
3.9%
7.5%
0.4%
2.0%
9.2%
11.6%
1.7%

2021

2022

2023

—
—
—

—
—
—

312:1
98.7%
101.5%

2021

2022

2023

$

7.46 $

8.01

From veteran-owned business$0.13 $

0.15

From women-owned businesses$

1.15 $

1.79

From small businesses$

5.00 $

4.10

Total sourced in goods and services with diverse‑owned businesses in last year$

9.70 $

10.78

Total sourced in goods and services with diverse‑owned businesses to date$

170.00 $180.00Total purchase from diverse Tier 2 suppliers$

3.00 $

4.48

Available
July 2024
Available
July 2024
Available
July 2024
Available
July 2024
Available
July 2024
Available
July 2024
Available
July 2024

1
1

Remuneration
Remuneration
Annual total remuneration ratio
Global Gender Pay Ratio
U.S. Salaried Minority Pay Ratio

Footnote

CSRD Metric

2

S1-16
S1-16

Footnote
3

CSRD MetricSupplier Diversity
Total Purchases in the U.S. ($ Billion)
From minority-owned businesses

Methodology and Assumptions

Footnotes
1.

Previous Integrated Reports only reported the Quit Rate of Top
Management in Europe. This year it includes all Salaried employees

2. The SEC-Section 953(b) under the Dodd-Frank Act requires publiccompanies to disclose the “pay ratio” between its CEO’s annual total
remuneration and the median annual total remuneration of all
employees representing including at least 95 percent (%) of the
population in the calculation
3. Ford is enhancing tools and processes related to supply base spend
data. 2023 values will be available July 2024

Fundamentals —Sustainability at Ford —Products and Services —Environment—

Social—Governance — Data —Appendices163
Financial —Products and Services —Climate — Circular Economy —Water —

Human Rights — Product Safety —Human Capital — Employee Health and Safety —Community —Supply Chain Management

Performance Data
— continued

Human Capital Management and Diversity, Equity, and Inclusion — continued
Diversity
Footnote
Board of Directors Composition and Diversity (percent)
Men
Women
Underrepresented Minorities
Board of Directors — Demographic Data (number)
Men
Women
Underrepresented Minorities
Total
Executive and Non-Executive Members of Administrative, Management,
and Supervisory Bodies
Non-Executive members (Men)
Non-Executive members (Women)
Executive members (Men)
Executive members (Women)

CSRD Metric
GOV - 1

1

2021

2022

2023

73.3%
26.7%
13.3%

71.4%
28.6%
14.3%

71.4%
28.6%
14.3%

11
4
2
15

10
4
2
14

10
4
2
14

Methodology and Assumptions
Ford interprets the CSRD requirement GOV-1 for administrative,
management, and supervisory bodies as the Board and the Committees(Audit, Compensation, Finance, Nominating and Sustainability).

Footnotes
1.

For 2021, 2022, and 2023, the Underrepresented Minorities data
includes 1 Puerto Rican and 1 African American

2. Non-executive members are considered non-employee directors
3. Executive members are considered employee directors

GOV - 1
2
2
3
3

—
—
—
—

—
—
—
—

8
4
2
0

Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices164
Financial —Products and Services —Climate — Circular Economy —Water —

Human Rights — Product Safety —Human Capital — Employee Health and Safety —Community — Supply Chain Management

Performance Data
— continued

Employee Health and Safety
Employee Health and Safety
Footnote

CSRD Metric

Global Lost-Time Case Rate
Ford Motor Company
Lost-Time Case Rate by Region
North America
South America
EuropeChina
International Markets Group (IMG)
Global Fatalities
Number of fatalities as a result of work-related injuries and work-related illhealth of other workers working on Ford sites

1
2

S1-14
S1-14

2021

2022

2023

Methodology and Assumptions
Lost-Time Case Rate = per 100 employees (cases with one or more days
away from work per 200,000 hours).

0.35

0.39

0.40

0.59
—
0.24
0.02
0.12
3
—

0.68
—
0.34
0.01
0.02
2
—

0.67
0.32
0.29
0.01
0.05
1
3

Percentage of confirmed harassment allegations by region
North America
South America
EuropeChina
International Markets Group (IMG)
Total

1.

In 2021, we experienced three fatalities within our operations and in
2022 experience two fatalities, both in our joint venture operations.
Each loss of life is unacceptable. Consequently, cross-functional teams
worked extensively to identify and implement controls to prevent
recurrence of fatal hazards

2. 3 contractor fatalities in China, Europe, and North America

Confirmed Harassment Allegations
Number of confirmed harassment allegations
North America
South America
EuropeChina
International Markets Group (IMG)
Total

Footnotes

Footnote
3
4

CSRD Metric

2021

2022

2023

92
0
3
1
18
114

55
1
10
0
12
78

15
2
3
1
1
22

5

6

0.25%
0.00%
0.39%
0.03%
0.14%
0.20%

0.16%
0.05%
1.15%
0.00%
0.11%
0.15%

0.04%
0.08%
0.02%
0.03%
0.01%
0.03%

3. Confirmed harassment allegations (when the respondent is a salaried
employee) that involve: sex- or race-related, hostile, demeaning or
belittling behavior, whether it is physical, verbal, or both
4. In 2023, not all Manufacturing salaried cases were uploaded into
the Case Management System, which is impacting the U.S. number.
The expectation is that by the end of 2025, People Matters will havea new Case Management System which will allow the team to havea single source for investigation case data
5. Refers to confirmed harassment allegations as a percentage of thetotal population by region
6. For 2023, the Company Headcount source changed due to an internal
HR system update. As a result, this impacted the percentage of theconfirmed harassment metrics

Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices165
Financial —Products and Services —Climate — Circular Economy —Water —

Human Rights — Product Safety —Human Capital — Employee Health and Safety —Performance Data
— continued

Socioeconomic Contribution and Community Engagement
Community Engagement
Footnote
Charitable Contributions
Total Contributions (million USD)
Total given to disaster relief efforts (million USD)
Volunteer Hours — Total in reporting year
Volunteer Hours — Total since 2005 (million)
Contributions — Total since 1949 (billion USD)

CSRD Metric

2022
$
$

$

64.3 $
2.3 $
50,000+
1.7
2.2 $

2023
73.7
1.8
55,000+
1.7
2.3

Methodology and Assumptions

Footnotes

Community — Supply Chain Management

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166
Financial — Products and Services —Climate —Circular Economy —Water —

Human Rights —Product Safety —Human Capital —Employee Health and Safety —Community — Supply Chain Management

Performance Data
— continued

Supply Chain Management
Supply Chain Overview
Footnote
Supply Chain Size
Suppliers globally — Tier 1 (Production)
Countries that Ford has supplier production (number)
Supplier sites (Production)
Supplier parts manufactured (Production)
Supplier commodities sourced (Production)
Supplier companies (Non-Production)
Supplier commodities (Non-Production)
Suppliers (Production) with SBTi targets (percent)
Suppliers accredited to ISO 14001 — Tier 1 (Production)

CSRD Metric2022
1,600 +
62
4,500 +
190,000 +531
24,000 +
—
—
—

2023
1,600 +
60
5,000 +
170,000 +547
24,000 +
700
4%
85%

Methodology and Assumptions
Suppliers noted as Production provide parts, components, and systems
for vehicle manufacturing.
Suppliers noted as Non-Production provide all purchased goods orservices that are not related to vehicle manufacturing.

Footnotes

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Material Topics —CSRD Index —GRI Index —TCFD Index — SASB Index —UNGPRF Index —UN SDGs Index —Resources — Footnotes

Material Topics

Material Topics and Definitions
Topics are listed in alphabetical order within each category, not in order of priority.
Products and Services
Topic
Connected Vehicles and Digital Services

Environment
Topic
Air, Water, and Soil Pollution

Biodiversity and Ecosystems
Circular Economy and End of Life

Climate Change

Water Resource

Subtopics• Connectivity• Responsible Innovation and Intellectual Property (IP)Definition
Accelerating innovation in Ford’s connected and autonomous vehicle businesses and embracing technology, data andsoftware in new ways, all whilst considering and further understanding the ethical challenges associated withadvancing this market.

Subtopics• Pollution of air• Pollution of water and soil
• Microplastics• Substances of concern (inc. PMPs, VOCs, Ozone
Depleting Substances)• Land use change• Degradation of ecosystems• Recycled and renewable materials (resource inflows)• Material recovery and recycling (resource outflows)• Waste and end of life impacts

Definition
Minimizing emissions of substances of concern, including non-greenhouse gas emissions and microparticles throughFord’s direct operations, downstream supply chain, or through the use of our products, that impact on air, soil andwater quality, atmospheric conditions, and/or human health.

• Greenhouse Gas (GHG) Emissions (operations, supply
chain, and products)• Climate change impacts and resilience• Fuel economy innovations• Energy use and conservation• Electric Vehicles, Batteries, and Charging
Infrastructure• Water consumption• Water withdrawals• Water discharges

Minimizing environmental impacts through Ford’s direct operations and upstream and downstream of its value chain,including developing solutions to preserve biodiversity and restore ecosystems.
Directing innovation towards developing sustainable materials for use in vehicles, including renewable and recycledmaterials, sustainable chemicals, and a reduction in substances of concern. Product, process, and material innovations
should support the circular economy. Ensuring the appropriate management, recycling and disposal of Ford’s
operational waste and effluents produced both in manufacturing and on corporate premises.
Assessing and responding to the impact of climate-related risks and pursuing carbon neutrality through reducing CO2eemissions from upstream and downstream activities, including Ford’s direct and indirect operations and logistics,
optimizing energy use through increasing access to affordable, reliable, and sustainable energy, and using alternativeand lower carbon fuels. Ford’s electric vehicle strategy is key to achieving climate change goals.

Minimizing environmental impacts through Ford’s direct operations upstream and downstream of its value chain,including ensuring efficient water use, management, treatment and discharge, and developing solutions to preserve
biodiversity and restore ecosystems.

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Material Topics — CSRD Index —GRI Index —TCFD Index —SASB Index —UNGPRF Index —UN SDGs Index —Resources — Footnotes

Material Topics— continued

Topics are listed in alphabetical order within each category, not in order of priority.
SocialTopic
Customer Experience and Responsible Marketing

Employee Health and Safety

Human Capital Management and Diversity, Equity,and Inclusion

Human Rights

Product Safety and Quality

Socioeconomic Contribution and Community
Engagement

Subtopics• Responsible marketing and sales• Customer satisfaction• Access to quality information• Health and safety• Mental wellbeing and work-life balance• Employee engagement and satisfaction• Equal treatment and opportunities for all• Job stability and security• Freedom of association and collective bargaining• Talent attraction, growth, and development• Working conditions and labor rights• Human trafficking, child labor, and forced labor• Supply chain transparency• Responsible material sourcing• Community rights (including Indigenous People)• Product health and safety• Product quality• Volunteering and corporate philanthropy• Disaster relief• STEM education and youth development• Engagement with communities local to Ford
operations

Definition
Maintaining customer satisfaction and loyalty through the quality of Ford’s customer service and experience, frominteractions with dealers and vehicle purchase through vehicle ownership, maintenance, and updates. Committing to
responsible and ethical advertisements, communications, and sales strategies.
Ensuring the physical safety, mental health, and wellness of Ford’s employees is promoted, ensured, and maintained.

Supporting the transition to a low-carbon future through promoting job creation, job retention, technical and career
readiness, and training and development. This includes promoting diversity in all its forms, supporting the active
integration and fair treatment of all employees, upholding the legal rights and fundamental principles that regulate
labor relations between workers and employers, and ensuring the physical safety and mental health and wellness of
employees.
We are committed to respecting human rights everywhere we operate and throughout our entire value chain. At all
times respecting human rights and good labor relations throughout our value chain — from protecting the livelihoodsof local and indigenous communities, to developing a responsible and transparent supply chain.

Designing and manufacturing vehicles that meet or exceed all applicable laws and regulations and do not represent
harm or hazards to consumers. They will offer state-of-the-art passive and active safety features, as well as driverassist technology to prevent or mitigate accidents.
Leveraging Ford’s scale to help address societal challenges at a local level and strengthening local communities
through targeted investment, positive engagement, volunteering, corporate philanthropy, and by partnering forsustainable development.

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Material Topics —CSRD Index —GRI Index —TCFD Index — SASB Index —UNGPRF Index —UN SDGs Index — Resources — Footnotes

Material Topics— continued

Topics are listed in alphabetical order within each category, not in order of priority.
Governance
Topic
Business Conduct

Data Protection, Privacy, and Cyber Security

Supply Chain Management

Subtopics• Anti-corruption and anti-bribery• Responsible tax• Corporate culture• Political engagement• Protection against retaliation• Data Protection Management• Customer Privacy• Cybersecurity• Artificial Intelligence (AI) Ethics• Supply chain resilience• Supplier management

Definition
Ensuring transparent and accountable corporate governance practices, with appropriate structures in place to combat
corruption, bribery, and conflicts of interest and manage corporate risk while embedding ethical business practices.
Integrity is promoted throughout operations, empowering employees to take responsibility for their own actions.
This is accompanied by regular, transparent reporting.
Responsibility of Ford to use employee and customer data, and artificial intelligence tools, responsibly. Data scienceand analytics enables a better understanding of consumer behavior and should be harnessed to help maintain user
privacy and improve digital and physical asset security.
Ensuring supply continuity, capacity building, and improved performance, including business conduct, social,environmental, and governance actions. To achieve this, potential supply chain risks must be understood withmeasures taken to mitigate them.

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Material Topics — CSRD Index —GRI Index —TCFD Index —SASB Index —UNGPRF Index —UN SDGs Index — Resources —Footnotes

CSRD Index
ESRS 2 IRO-2

In 2024, Ford is beginning the transition to align our Integrated Sustainability and Financial Report with the Corporate Sustainability Reporting Directive (CSRD) (EU 2023/2772 of 31 July 2023). Additional disclosures will be included in the 2025
Integrated Sustainability and Financial Report for full CSRD compliance. Below are those disclosures included in this 2024 report.
CSRD Disclosure
ESRS 2: General Disclosures
BP-1 — General basis for preparation of the sustainability statementBP-2 — Disclosures in Relation to Specific Circumstances
GOV-1 — The role of the administrative, management and supervisory bodies

GOV-2 — Information provided to and sustainability matters addressed by the undertaking’s administrative,
management, and supervisory bodies
GOV-3 — Integrated of sustainability-related performance in incentive schemes
GOV-4 — Statement on due diligenceGOV-5 — Risk management and internal controls over sustainability reporting
SBM-1 — Strategy, business model, and value chain

SBM-2 — Interests and views of stakeholders
SBM-3 — Material impacts, risks and opportunities and their interaction with strategy and business modelIRO-1 — Description of the processes to identify and assess material impacts, risks, and opportunities
IRO-2 — Disclosure requirements in ESRS covered by the undertaking’s sustainability statement

Location (section, page reference) and notes
Sustainability Reporting Strategy, page 13
Contents, page 3
Sustainability Reporting Strategy, page 13
Upholding the Highest Levels of Integrity, page 126
Board of Directors Composition, page 127
Board Role and Responsibilities, page 128
Sustainability Governance, page 128
Performance Data Tables — Board of Directors Composition and Diversity (percent), page 163
Performance Data Tables — Executive and Non-Executive Members of Administrative, Management and Supervisory
Bodies, page 163
Sustainability Governance, page 128
Carbon Neutrality Overview — Governance, page 49
Director Remuneration, page 128
To be reported in future years
Risk Management and Internal Controls, page 129
Financial Highlights, pages 9-10
Our Sustainability Strategy, page 13
Accelerating Progress, pages 15-20
How We Create Sustainable Value, page 21
Our Value Chain, page 26
Customer Focused Business Segments, pages 32-33
Electric Vehicles, Batteries, and Charging Infrastructure, pages 34-35 and 37
ICE and Hybrid Vehicles, page 38
Connected Vehicles and Digital Services, pages 40-42
Performance Data Tables — Financial Performance — Revenue, page 135
Our Stakeholders, pages 26-29
Our Material Topics, page 12
Risk Factors, pages 122-124
Our Materiality Process, page 12
CSRD Index, pages 170-175

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171
Material Topics — CSRD Index —GRI Index —TCFD Index —SASB Index —UNGPRF Index —UN SDGs Index — Resources — Footnotes

CSRD Index— continued
ESRS 2 IRO-2

CSRD Disclosure
ESRS E1: Climate Change
E1-1 — Transition plan for climate change mitigation
E1 SBM-3 — Material impacts, risks and opportunities and their interaction with strategy and business model

E1 IRO-1 — Description of the processes to identify and assess material climate-related impacts, risks, and opportunities
E1-2 — Policies related to climate change mitigation and adaptation
E1-3 — Actions and resources in relation to climate change policies

E1-4 — Targets related to climate change mitigation and adaptation

E1-5 — Energy consumption and mix

E1-6 — Gross Scopes 1, 2, 3 and Total GHG emissions

E1-7 — GHG removals and GHG mitigation projects financed through carbon credits
E1-8 — Internal carbon pricing
E1-9 — Anticipated financial effects from material physical and transition risks and potential climate-related opportunities

Location (section, page reference) and notes
The Transition Plan — Climate Change Mitigation, pages 45-49
Our Material Topics, page 12
Climate Change
Impacts, Risks, and Opportunities, page 53-57
Scenario / Resilience Analysis, pages 70-75
Our Materiality Process, page 12
Climate Change — Impacts, Risks, and Opportunities, pages 53-57
Climate Change — Policies, page 58
Climate Change
The Transition Plan — Climate Change Mitigation, pages 45-49
Achieving Carbon Neutrality, pages 59-69
Climate Change
The Transition Plan — Climate Change Mitigation, pages 45-49
Achieving Carbon Neutrality, pages 59-69
Performance Data Tables
Target — Scope 1 and Scope 2 GHG Emissions — Operations, page 137
Target — Scope 3 (Category 11) GHG Intensity) — Vehicle Use, page 137
Global Fleet Efficiency — Percent reduction in well-to-wheels gCO2e/km intensity since 2019 (SBTi), page 139
Performance Data Tables
Energy Consumption and Mix, page 141
Energy Generation, page 141
Energy Intensity, page 141
Performance Data Tables
Scope 1 GHG Emissions, page 138
Scope 2 GHG Emissions (metric tons of CO2e), page 138
Significant Scope 3 GHG Emissions (metric tons of CO2e), page 138
Total GHG Emissions (metric tons of CO2e), page 138
Worldwide Operations (Manufacturing and Non-Manufacturing) GHG Emissions (million metric tons CO2e), page 140
Total GHG Emissions Intensity, page 140
Biogenic Emissions of CO2 (metric tons of CO2e), page 140
Energy Attribute Certificates (EACs), page 143
GHG Removals and GHG Mitigation Projects Financed through Carbon Credits, page 69
To be reported in future years
To be reported in future years

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172
Material Topics — CSRD Index —GRI Index —TCFD Index —SASB Index —UNGPRF Index —CSRD Index— continued
ESRS 2 IRO-2

CSRD Disclosure
ESRS E2: Pollution
E2 IRO-1 — Description of the processes to identify and assess material pollution-related impacts, risks, and opportunities
E2-1 — Policies related to pollution
E2-2 — Actions and resources related to pollution

E2-3 — Targets related to pollution
E2-4 — Pollution of air, water, and soil
E2-5 — Substances of concern and substances of very high concern
E2-6 — Anticipated financial effects from pollution-related impacts, risks, and opportunities
ESRS E3: Water and Marine Resources
E3 IRO-1 — Description of the processes to identify and assess material water and marine resources-related impacts,
risks, and opportunities
E3-1 — Policies related to water and marine resources
E3-2 — Actions and resources related to water and marine resources

E3-3 — Targets related to water and marine resources
E3-4 — Water consumption

E3-5 — Anticipated financial effects from water and marine resources-related impacts, risks, and opportunities
ESRS E4: Biodiversity and Ecosystems
E4-1 — Transition plan and consideration of biodiversity and ecosystems in strategy and business model
E4 SBM-3 — Material impacts, risks and opportunities and their interaction with strategy and business model
E4 IRO-1 — Description of the processes to identify and assess material biodiversity and ecosystem-related impacts,
risks, dependencies, and opportunities
E4-2 — Policies related to biodiversity and ecosystems
E4-3 — Actions and resources related to biodiversity and ecosystems
E4-4 — Targets related to biodiversity and ecosystems
E4-5 — Impact metrics related to biodiversity and ecosystems change

Location (section, page reference) and notes
Our Materiality Process, page 12
Circular Economy Policies, page 76
Air, Water, and Soil Pollution Policies, page 80
Substances of Concern and Substances of Very High Concern, page 78
Air, Water, and Soil Pollution — Our Approach, page 80
Vehicle Emissions, page 80
Plant Emissions Reductions, page 80
Plant Emissions Reductions — Targets, page 80
Vehicle Emissions — Tracking our Progress, page 80
Substances of Concern and Substances of Very High Concern, page 78
To be reported in future years

Our Materiality Process, page 12
Water Resources — Material Impacts, Risks and Opportunities, page 83
Water Policies, page 82
Water Resources
Our Approach, page 83
Actions and Resources, page 84
Water Resources — Metrics and Targets, page 84
Water Resources — Tracking Our Performance, page 84
Performance Data
Global Water Use by Source (million cubic meters) — Total, page 148
Total Water Consumption and Intensity (million cubic meters), page 148
Regional Water Use (million cubic meters), page 148
To be reported in future years

To be reported in future years
Our Material Topics, page 12
Our Materiality Process, page 12
To be reported in future years
To be reported in future years
To be reported in future years
To be reported in future years

UN SDGs Index —Resources — Footnotes

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Material Topics —CSRD Index —GRI Index —TCFD Index —SASB Index —UNGPRF Index —UN SDGs Index —Resources — Footnotes

CSRD Index— continued
ESRS 2 IRO-2

CSRD Disclosure
E4-6 — Anticipated financial effects from biodiversity and ecosystem-related risks and opportunities
ESRS E5: Resource Use and Circular Economy
E5 IRO-1 — Description of the processes to identify and assess material resource use and circular economy-related
impacts, risks, and opportunities
E5-1 — Policies related to resource use and circular economy
E5-2 — Actions and resources related to resource use and circular economy

E5-3 — Targets related to resource use and circular economy
E5-4 — Resource inflows
E5-5 — Resource outflows

E5-6 — Anticipated financial effects from resource use and circular economy-related impacts, risks, and opportunities
ESRS S1: Own Workforce
S1 SBM-2 — Interests and views of stakeholders
S1 SBM-3 — Material impacts, risks and opportunities and their interaction with strategy and business modelS1-1 — Policies related to own workforce

Location (section, page reference) and notes
To be reported in future years

Our Materiality Process, page 12
Circular Economy Policies, page 76
Waste Management Policies, page 78
Our Approach: A Focus on Plastics, page 76
Using Recycled Materials for Vehicle Parts, page 76
Additional Strategies and Actions, page 77
Our Approach to Waste Management, page 78
Our Approach: A Focus on Plastics — Metrics and Targets, page 76
Waste Management Metrics and Targets, page 78
To be reported in future years
Waste Management Metrics and Targets — Tracking our Progress, page 78
Performance Data
Regional Waste to Landfill (million kilograms), page 145
Regional Hazardous Waste Generation (million kilograms), page 145
Hazardous Waste by Disposal Method (million kilograms), page 145
Non-Hazardous Waste by Disposal Method (million kilograms), page 146
Total Waste by Type and Disposal Method (million kilograms), page 146
Total Waste and Percent Recycled and Reused — Total waste (million metric tons), page 146
Waste Diverted from/Directed to Disposal, page 147
Other Waste, page 147
To be reported in future years

Our Stakeholders, pages 27-30
Employee Feedback, page 105
Our Material Topics, page 12
Our Human Rights Policy, page 88
Human Capital Management and Diversity, Equity, and Inclusion (DEI) Policies, page 104
Health and Safety Policies, page 110

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174
Material Topics —CSRD Index —GRI Index —TCFD Index —SASB Index —UNGPRF Index —UN SDGs Index —Resources — Footnotes

CSRD Index— continued
ESRS 2 IRO-2

CSRD Disclosure
S1-2 — Processes for engaging with own workers and workers’ representatives about impacts

S1-3 — Processes to remediate negative impacts and channels for own workers to raise concerns
S1-4 — Taking action on material impacts on own workforce, and approaches to mitigating material risks and pursuingmaterial opportunities related to own workforce, and effectiveness of those actions

S1-5 — Targets related to managing material negative impacts, advancing positive impacts, and managing material risks
and opportunities
S1-6 — Characteristics of the undertaking’s employees
S1-7 — Characteristics of non-employee workers in the undertaking’s own workforce
S1-8 — Collective bargaining coverage and social dialogue
S1-9 — Diversity metrics
S1-10 — Adequate wages
S1-11 — Social protection
S1-12 — Persons with disabilities
S1-13 — Training and skills development metrics
S1-14 — Health and safety metrics

S1-15 — Work-life balance metrics
S1-16 — Compensation metrics (pay gap and total compensation)

S1-17 — Incidents, complaints and severe human rights impacts

Location (section, page reference) and notes
Due Diligence in Our Own Business, page 89
Engaging with Labor Unions, page 104
Employee Engagement, page 105
Employee Feedback, page 105
Safety Performance, page 110
Corporate Grievance Mechanism, page 89
Grievance Mechanisms and Remediation, page 106
Human Capital Management and Diversity, Equity, and Inclusion, page 104-107 and 109
Safety Conditions at New and Existing Facilities, page 110
Safety Operating System, page 110
Reporting Tools, page 111
Safety Training, page 111
Human-centered Design for Health, Safety and Wellness, page 111
Safety in Battery Manufacturing, page 111
Proactive Approach to Emergency Response, page 112
Employee Leadership and Support, page 112
To be reported in future years
To be reported in future years
To be reported in future years
Engaging with Labor Unions, page 104
To be reported in future years
To be reported in future years
To be reported in future years
To be reported in future years
Employee Learning and Development, page 106
Safety Performance, page 110
Performance Data
Lost-Time Case Rate by Region — Global Fatalities, page 164
Lost-Time Case Rate by Region — Number of fatalities as a result of work-related injuries and work-related illhealth of other workers working on Ford sites, page 164
To be reported in future years
Equal Pay for Equal Work, page 105
Performance Data
Remuneration — Annual Total Remuneration Ratio, page 162
Remuneration — Global Gender Pay Ratio, page 162
To be reported in future years

Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices
175
Material Topics — CSRD Index — GRI Index —TCFD Index — SASB Index —CSRD Index— continued
ESRS 2 IRO-2

CSRD Disclosure
ESRS S2: Workers in the Value Chain
S2 SBM-2 — Interests and views of stakeholders
S2 SBM-3 — Material impacts, risks and opportunities and their interaction with strategy and business modelS2-1 — Policies related to value chain workers
S2-2 — Processes for engaging with value chain workers about impacts

S2-3 — Processes to remediate negative impacts and channels for value chain workers to raise concerns
S2-4 — Taking action on material impacts on value chain workers, and approaches to managing material risks andpursuing material opportunities related to value chain workers, and effectiveness of those action

S2-5 — Targets related to managing material negative impacts, advancing positive impacts, and managing material risks
and opportunities
ESRS S3: Affected Communities
S3 SBM-2 — Interests and views of stakeholders
S3 SBM-3 — Material impacts, risks and opportunities and their interaction with strategy and business modelS3-1 — Policies related to affected communities
S3-2 — Processes for engaging with affected communities about impacts
S3-3 — Processes to remediate negative impacts and channels for affected communities to raise concerns
S3-4 — Taking action on material impacts on affected communities, and approaches to managing material risks andpursuing material opportunities related to affected communities, and effectiveness of those actions
S3-5 — Targets related to managing material negative impacts, advancing positive impacts, and managing material risks
and opportunities
ESRS S4: Consumers and End-Users
S4 SBM-2 — Interests and views of stakeholders

Location (section, page reference) and notes
Our Stakeholders, pages 27-30
Our Material Topics, page 12
Our Human Rights Policy, page 88
Our Supplier Code of Conduct, page 90
Human Rights in Our Supply Chain, page 90
Supply Chain Engagement, page 91
Supply Chain Due Diligence, page 92
Supply Chain Sustainability Training, page 93
Mineral Due Diligence, page 93
EV Battery Material Due Diligence, page 97
Grievance Mechanisms and Remedies, page 91
Remediation of Audit Findings, page 93
Sourcing for Sustainability, page 91
Supply Chain Sustainability Training, page 93
Responsible Sourcing of Raw Materials, page 93
Initiative for Responsible Mining Assurance, page 95
Better Mining, page 95
Battery Mapping, page 95
To be reported in future years

Our Stakeholders, pages 27-30
Our Material Topics, page 12
Community Engagement Policies, page 119
Community Engagement Policies, page 119
Engaging with Communities, page 119
Managing Impacts in our Communities, page 119
The Ford Fund, pages 116-117
Creating Opportunities on a Global Scale, page 117
To be reported in future years

Our Stakeholders, pages 27-30

UNGPRF Index —UN SDGs Index — Resources — Footnotes

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Material Topics —CSRD Index —GRI Index —TCFD Index —SASB Index —UNGPRF Index —UN SDGs Index —Resources — Footnotes

CSRD Index— continued
ESRS 2 IRO-2

CSRD Disclosure
S4 SBM-3 — Material impacts, risks and opportunities and their interaction with strategy and business modelS4-1 — Policies related to consumers and end-users
S4-2 — Processes for engaging with consumers and end-users about impacts
S4-3 — Processes to remediate negative impacts and channels for consumers and end-users to raise concerns

S4-4 — Taking action on material impacts on consumers and end-users, and approaches to managing material risks andpursuing material opportunities related to consumers and end-users, and effectiveness of those actions

S4-5 — Targets related to managing material negative impacts, advancing positive impacts, and managing material risks
and opportunities
ESRS G1: Business Conduct
G1 GOV-1 — The role of the administrative, management and supervisory bodies

G1 IRO-1 — Description of the processes to identify and assess material impacts, risks, and opportunities
G1-1 — Corporate culture and Business conduct policies and corporate culture
G1-2 — Management of relationships with suppliersG1-3 — Prevention and detection of corruption and bribery

G1-4 — Confirmed incidents of corruption or bribery
G1-5 — Political influence and lobbying activities
G1-6 — Payment practices

Location (section, page reference) and notes
Our Material Topics, page 12
Responsible Marketing, page 115
Product Safety and Quality Policies, page 99
Policies Related to Customers, page 113
Managing our Relationship with Customers, page 99
Engaging With Our Customers, page 113
Managing our Relationship with Customers, page 99
Product Safety and Quality — Tracking our Performance, page 100
Raising Concerns via Global Contact Centers, page 113
Managing our Relationship with Customers, page 113
Customer Feedback and Process to Remediate Negative Impacts, page 113
Strengthening Our Global Data Privacy and Protection Initiatives, page 132
Cyber Threats, page 132
To be reported in future years

Upholding the Highest Levels of Integrity, page 126
Board of Directors Composition, page 127
Board Role and Responsibilities, page 128
Sustainability Governance, page 128
Performance Data Tables — Board of Directors Composition and Diversity (percent), page 163
Performance Data Tables — Executive and Non-Executive Members of Administrative, Management and Supervisory
Bodies, page 163
Our Materiality Process, page 12
Adhering to Our Code of Conduct, page 126
Management of Relationships with Suppliers, page 125
Payment Policy, page 125
Upholding the Highest Levels of Integrity, page 126
Compliance Training, page 126
Reporting Violations, page 126
To be reported in future years
Political Spending Process, page 131
Lobbying Activities, page 131
Payment Terms, page 125

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Material Topics —CSRD Index —GRI Index —TCFD Index —SASB Index —UNGPRF Index —UN SDGs Index —Resources —Footnotes

GRI Index
GRI
Index— continued

This report is in accordance with the Global Reporting Initiative (GRI) Standards. To locate the topics and standards contained within the guidelines, and our responses to these standards, use the index below. For a detailed explanation of thestandards, visit the GRI website.
GRI Standard
GRI Disclosure
GRI 2: General Disclosures 2021
The organization and its reporting practices
2-1
Organizational details

2-2
2-3

Entities included in the organization’s sustainability
reporting
Reporting period, frequency and contact point

2-4
Restatements of information
2-5
External assurance
Activities and workers
2-6
Activities, value chain and other business relationships

2-7

Employees

2-8
Governance
2-9

Workers who are not employees

2-10
2-11

Nomination and selection of the highest governance body
Chair of the highest governance body

2-12

Role of the highest governance body in overseeing themanagement of impacts
Delegation of responsibility for managing impacts

2-13

2-14

Governance structure and composition

Role of the highest governance body in sustainability
reportingLocation and Notes

Form 10-K — Item 1. Business, pages 1-7
Contact us
Worldwide Locations
Reporting Scope, Boundaries, and Data Assurance, page 133
Form 10-K — Item 1. Business, pages 1-7
This annual Integrated Sustainability and Financial Report covers calendar year 2023.
Publication date: April 22, 2024
Contact: sustaina@ford.com
Performance Data, pages 135-166
Reporting Scope, Boundaries, and Data Assurance, page 133
Sector: Automotive
How We Create Sustainable Value, page 21
Our Stakeholders, page 26
No significant changes from previous reporting year reported
Performance Data — Human Capital Management and Diversity, Equity and Inclusion, pages 158-160
No significant fluctuations recorded in reporting period
Information not available
Accountable and Inclusive Governance, pages 127-130
Proxy Statement 2024
Proxy Statement 2024
Board Role and Responsibilities, page 128
Proxy Statement 2024
Sustainability Governance, page 128
Board Role and Responsibilities, page 128
Sustainability Governance, page 128
Risk Management and Internal Controls, pages 129-130
Management Processes, page 130
Management Processes, page 130
Reporting Scope, Boundaries, and Data Assurance, page 133

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Material Topics — CSRD Index —GRI Index —TCFD Index —SASB Index —GRI Index— continued

GRI Standard
2-15

GRI Disclosure
Conflicts of interest

2-16

Communication of critical concerns

2-17Collective knowledge of the highest governance body

2-18

Evaluation of the performance of the highest governance
body
2-19
Remuneration policies
2-20
Process to determine remuneration
2-21
Annual total compensation ratio
Strategy, policies and practices
2-22Statement on sustainable development strategy
2-23
Policy commitments

2-24

Embedding policy commitments

2-25

Processes to remediate negative impacts

2-26

Mechanisms for seeking advice and raising concerns

2-27
2-28

Compliance with laws and regulations
Membership associations

Stakeholder engagement
2-29
Approach to stakeholder engagement
2-30
Collective bargaining agreements
GRI 3: Material Topics 2021
3-1
Process to determine material topics
3-2
List of material topics

Location and Notes
Code of Business Conduct and Ethics for Members of the Board of Directors, pages 1-2
Proxy Statement 2024
Proxy Statement 2024
Total number and nature of critical concerns communicated are considered confidential.
Charter of the Sustainability and Innovation Committee of the Board of Directors
Proxy Statement 2024
Corporate Governance Principles, page 7
Proxy Statement 2024
Proxy Statement 2024
Proxy Statement 2024
Letter From Bill Ford and Jim Farley, page 4
We Are Committed to Protecting Human Rights and the Environment policy
Code of Conduct
Supplier Code of Conduct
Transparency, Business Ethics, and Integrity, page 126
Code of Conduct
Supplier Code of Conduct
Our Sustainability Strategy, page 13
Management Processes, page 130
Grievance Mechanisms and Remedies, pages 91-92
Grievance Mechanisms and Remediation, pages 106-107
Reporting Violations, page 126
Grievance Mechanisms and Remedies, pages 91-92
Grievance Mechanisms and Remediation, pages 106-107
Reporting Violations, page 126
External Grievance Channel
Form 10-K — Item 3. Legal Proceedings, pages 34-36
Trade Associations and Memberships Focusing on U.S. Policy Issues, page 131
2023 U.S. Political Engagement Report
Our Stakeholders, pages 26-29
68% of our global workforce is covered by collective bargaining agreements.
Our Materiality Assessment, page 12
Our Materiality Assessment, page 12

UNGPRF Index —UN SDGs Index —Resources —Footnotes

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Material Topics —CSRD Index —GRI Index —TCFD Index —SASB Index —UNGPRF Index —UN SDGs Index —GRI Index— continued

GRI Standard
GRI Disclosure
3-3Management of material topics
Material Topics
GRI 200 Economic: Standard Series
GRI 201: Economic Performance 2016
3-3
Management of material topics

Location and Notes
The management of each of our material topics is included in 3-3 of the topic disclosures within this GRI Index.

Financial Highlights, pages 9-10
How We Create Sustainable Value, page 21
201-1
Direct economic value generated and distributed
Form 10-K — Ford Motor Company and Subsidiaries Financial Statements, pages 105-179
201-2
Financial implications and other risks and opportunities
Climate Change — Impacts, Risks, and Opportunities, pages 53-57
due to climate change
Risk Factors, pages 122-124
Form 10-K — Operational Risks, pages 20-21; Macroeconomic, Market, and Strategic Risks, page 23; Legal and Regulatory Risks, page 28
201-3
Defined benefit plan obligations and other retirement plans Form 10-K — Retirement Benefits pages 150-157
201-4
Financial assistance received from government
Form 10-K — Financial Risks, page 30; Government Incentives, page 123
GRI 202: Market Presence 2016
3-3
Management of material topics
Fair and Decent Work, page 23
Equal Pay for Equal Work, page 105
202-1
Ratios of standard entry level wage by gender compared
Fair and Decent Work, page 23
to local minimum wage
Equal Pay for Equal Work, page 105
202-2
Proportion of senior management hired from the local
Information not available
community
GRI 203: Indirect Economic Impacts 2016
3-3
Management of material topics
Socioeconomic Contribution and Community Engagement, pages 116-119
203-1
Infrastructure investments and services supported
How We Create Sustainable Value, page 21
BlueOval Battery Plant, page 35
Collaborating to Strengthen Charging Infrastructure, page 37
Transforming our Industrial System to Expand EV Production, page 37
Carbon-free Energy, page 66
Ecosystem Preservation at Cologne EV Center, page 85
Ecosystem Preservation in Michigan, page 85
Socioeconomic Contribution and Community Engagement, pages 116-119
203-2
Significant indirect economic impacts
How We Create Sustainable Value, page 21
Impacts of EV Transition, page 25
Socioeconomic Contribution and Community Engagement, pages 116-119
United Nations Sustainable Development Goals Index, pages 195-204

Resources —Footnotes

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Material Topics —CSRD Index —GRI Index —TCFD Index —SASB Index —UNGPRF Index —UN SDGs Index —Resources —Footnotes

GRI Index— continued

GRI Standard
GRI Disclosure
GRI 204: Procurement Practices 2016
3-3
Management of material topics

204-1
Proportion of spending on local suppliers
GRI 205: Anti-corruption 2016
3-3
Management of material topics

205-1

Operations assessed for risks related to corruption

205-2

Communication and training about anti- corruption
policies and procedures

205-3
Confirmed incidents of corruption and actions taken
GRI 206: Anti-competitive Behavior 2016
3-3
Management of material topics

Location and Notes
We Are Committed to Protecting Human Rights and the Environment policy
Supplier Code of Conduct
Responsible Material Sourcing Policy
Human Rights in our Supply Chain, page 90
Supplier Diversity and Inclusion, page 109
Supply Chain Management, page 125
This information is considered confidential.
Anti-Bribery and Anti-Corruption, page 126
Ford Code of Conduct
Supplier Code of Conduct
We assess 100% of our operations for risks related to corruption. We consider operations that require contact with government officials to pose the most significant
risk of corruption through bribery (obtaining necessary permits, handling cross-border logistics, making fleet sales to government entities, etc.).
Compliance Training, page 126
Ford’s anti-corruption policy must be adhered to by all Ford salaried and agency personnel around the globe. In addition, all Ford salaried and agency personnel,
globally, are required to complete online Anti-Bribery Awareness training.
This information is considered confidential.

206-1

Anti-Bribery and Anti-Corruption, page 126
Ford Code of Conduct
Form 10-K — Legal Proceedings, pages 28-40

207-1
207-2
207-3

Form 10-K — Note 7: Income Taxes, page 129
Charter of the Finance Committee of the Board of Directors, page 3
Form 10-K — Note 7: Income Taxes, page 129
Charter of the Finance Committee of the Board of Directors, page 3This information is considered confidential.

Legal actions for anti-competitive behavior, anti-trust,and monopoly practices
GRI 207: Tax 2019
3-3
Management of material topics
Approach to Tax
Tax governance, control and risk management
Stakeholder engagement and management of concerns
related to tax
207-4
Country-by-country reporting
GRI 300 Environmental Standards Series
GRI 301: Materials 2016
3-3
Management of material topics

301-1
301-2

Materials used by weight or volume
Recycled input materials used

Form 10-K — Note 7: Income Taxes, page 129. Country-level details are considered confidential.

We Are Committed to Protecting Human Rights and the Environment policy
Sustainable Materials Strategy, page 13
Circular Economy and End-of-Life, pages 76-78
We monitor materials used and recycled materials per model. However, we are not able to report the total materials used, as the model series mix is confidential.
This information is considered confidential.

Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices181
Material Topics —CSRD Index —GRI Index —TCFD Index —GRI Index— continued

GRI Standard
301-3

GRI Disclosure
Reclaimed products and their packaging materials

GRI 302: Energy 2016
3-3
Management of material topics

302-1

Energy consumption within the organization

302-2

Energy consumption outside of the organization

302-3
302-4
302-5

Energy intensity
Reduction of energy consumption
Reductions in energy requirements of products andservices
GRI 303: Water and Effluents 2018
3-3
Management of material topics

303-1

Interactions with water as a shared source

303-2
303-3

Management of water discharge-related impacts
Water withdrawal

303-4
303-5

Water discharge
Water consumption

GRI 304: Biodiversity 2016
3-3
Management of material topics
304-1
Operational sites owned, leased, managed in, or adjacentto, protected areas and areas of high biodiversity value
outside protected areas
304-2
Significant impacts of activities, products, and services
on biodiversity
304-3
Habitats protected or restored

Location and Notes
Remanufacturing Supports Sustainability Goals, page 77
Our Approach to Waste Management, page 78
Waste Management Metrics and Targets, page 78
We Are Committed to Protecting Human Rights and the Environment policy
Energy Strategy, page 13
The Transition Plan — Climate Change Mitigation, pages 45-49
Decarbonization Levers and Actions Overview, page 48
Operations — Scope 1 and 2, pages 64-67
Performance Data — Value Chain Greenhouse Gas (GHG) Emissions, page 138
Performance Data — Operational Energy Use, pages 141-142
CDP Climate Change Response
Vehicle Use — Scope 3, pages 60-64
Supply Chain — Scope 3 — Purchased Goods and Services, pages 68-69
Performance Data — Operational Energy use and CO2 Emissions, pages 141-142
Performance Data — Operational Energy use and CO2 Emissions, pages 141-142
Vehicle Use — Scope 3, pages 60-64
Supply Chain — Scope 3 — Purchased Goods and Services, pages 68-69
We Are Committed to Protecting Human Rights and the Environment policy
Water Strategy, page 13
Water Resources, pages 82-84
Water Resources, pages 82-84
CDP Water Security Response
CDP Water Security Response (item W1.2b)
Performance Data — Water, page 148
CDP Water Security Response (item W1.2b)
CDP Water Security Response (item W1.2b)
Performance Data — Water, page 148
CDP Water Security Response (items W1.2 and W1.2b)
Biodiversity and Ecosystems, page 85
Information not available.

Biodiversity and Ecosystems, page 85
Information not available.

SASB Index —UNGPRF Index —UN SDGs Index —Resources —Footnotes

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Material Topics —CSRD Index —GRI Index —TCFD Index —SASB Index —UNGPRF Index —GRI Index— continued

GRI Standard
304-4

GRI Disclosure
IUCN Red List species and national conservation list
species with habitats in areas affected by operations
GRI 305: Emissions 2016
3-3
Management of material topics

305-1

Direct (Scope 1) GHG emissions

305-2

Energy indirect (Scope 2) GHG emissions

305-3

Other indirect (Scope 3) GHG emissions

305-4

GHG emissions intensity

305-5
305-6
305-7

Reduction of GHG emissions
Emissions of ozone-depleting substances (ODS)
Nitrogen oxides (NOX), sulfur oxides (SOX), and othersignificant air emissions
GRI 306:Waste 2020
3-3
Management of material topics

306-1
Waste generation and significant waste- related impacts
306-2Management of significant waste-related impacts
306-3
Waste generated
306-4
Waste diverted from disposal
306-5
Waste directed to disposal
GRI 308: Supplier Environmental Assessment 2016
3-3
Management of material topics
308-1
308-2

New suppliers that were screened using environmental
criteria
Negative environmental impacts in the supply chain
and actions taken

Location and Notes
Information not available.

We Are Committed to Protecting Human Rights and the Environment policy
Climate Change, pages 45-60
Air, Water, and Soil Pollution, pages 80-81
Performance Data — Scope 1 GHG Emissions, page 138
CDP Climate Change Response — C5, emissions methodology. C6.1, scope 1 emissions.
Performance Data — Scope 2 GHG Emissions, page 138
CDP Climate Change Response — C5, emissions methodology. C6.3, scope 2 emissions.
Performance Data — Significant Scope 3 GHG Emissions, page 138
CDP Climate Change Response (item C6.5)
Performance Data — GHG Emissions Intensity, page 140
CDP Climate Change Response (items C5, C6, C6.10, C7 and C-TO7.8)
Performance Data — Absolute GHG Emissions Reductions, page 140
Performance Data — Releases (Volatile Organic Compounds (VOC) Emissions and Other), page 144
Performance Data — Non-CO2 Tailpipe Emissions, page 144

We Are Committed to Protecting Human Rights and the Environment policy
Waste Management Policies, page 78
Our Approach to Waste Management, page 78
Waste Management Metrics and Targets, page 78
Our Approach to Waste Management, page 78
Our Approach to Waste Management, page 78
Performance Data — Waste, pages 145-146
Waste Diverted from/Directed to Disposal, page 147
Waste Diverted from/Directed to Disposal, page 147
We Are Committed to Protecting Human Rights and the Environment policy
Supplier Code of Conduct
Sourcing for Sustainability, page 91
Sourcing for Sustainability, page 91
Performance Data — Supply Chain Management — Human Rights Assessments (continued) — Environment, page 152
CDP Water Security Response
CDP Climate Change Response

UN SDGs Index — Resources — Footnotes

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Material Topics — CSRD Index — GRI Index —TCFD Index —SASB Index —UNGPRF Index —UN SDGs Index —Resources — Footnotes

GRI Index— continued

GRI Standard
GRI Disclosure
GRI 400 Social Standards Series
GRI 401: Employment 2016
3-3
Management of material topics
401-1
401-2

New employee hires and employee turnover
Benefits provided to full-time employees that are notprovided to temporary or part- time employees

401-3
Parental leave
GRI 402: Labor/Management Relations 2016
3-3
Management of material topics

402-1
Minimum notice periods regarding operational changes
GRI 403: Occupational Health and Safety 2018
3-3
Management of material topics

403-1
403-2
403-3
403-4
403-5
403-6

Occupational health and safety management system
Hazard identification, risk assessment and incident
investigation
Occupational health services
Worker participation, consultation, and communication
on occupational health and safety
Worker training on occupational health and safety
Promotion of worker health

Location and Notes

People Strategy, page 13
Human Capital Management and Diversity, Equity, and Inclusion, pages 104-109
Performance Data — Voluntary Quit Rate by Major Markets, page 162
Employee Benefits, page 105
Ford offers comprehensive benefit packages that are competitive in the countries where we do business. Depending on location and country-specific practices, thepackages may include pension plans, medical plans, life and accident insurance, disability protection and paid vacations and holidays.
Information not readily available
We Are Committed to Protecting Human Rights and the Environment policy
Ford Code of Conduct
Supplier Code of Conduct
Engaging with Labor Unions, page 104
Ford fully complies with applicable national and/or local legal requirements for minimum notice periods regarding significant operational changes.
We Are Committed to Protecting Human Rights and the Environment policy
Ford Code of Conduct
Supplier Code of Conduct
Employee Health and Safety, pages 110-112
Safety Operating System, page 110
Safe Observation Index, page 110
Reporting Tools, page 110
Human-centered Design for Health, Safety, and Wellness, page 111
Safety Performance, page 110
Human-centered Design for Health, Safety, and Wellness, page 111
Safety Training, page 111
For non-occupational services, consultation is provided for employees who seek advice, but the employee is referred to their personal medical doctor for thetreatment of non-occupational conditions (unless temporary care is required to relieve an emergency condition). Ford medical staff do not treat non-occupational
medical conditions except in an emergency.
Salaried employees have access to programs offered through the Ford Benefits Department, including Castlight – a personalized program focused on healthpromotion.
Employees in most manufacturing locations, both hourly and salaried, have access to employee support services programs that include weight management, freecounseling referrals, and on-site or near-site fitness facilities. In addition, those employees have access to Quarterly Wellness Programs that include bloodpressure evaluations, lipid profile, and glucose monitoring where available.

Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices184
Material Topics — CSRD Index — GRI Index —TCFD Index —SASB Index —UNGPRF Index —UN SDGs Index —Resources — Footnotes

GRI Index— continued

GRI Standard
403-7

GRI Disclosure
Prevention and mitigation of occupational health andsafety impacts directly linked by business relationships

403-8

Workers covered by an occupational health and safety
management system

403-9Work-related injuries

403-10Work-related ill health

GRI 404: Training and Education 2016
3-3
Management of material topics

404-1
404-2

Average hours of training per year per employee
Programs for upgrading employee skills and transition
assistance programs
404-3
Percentage of employees receiving regular performanceand career development reviews
GRI 405: Diversity and Equal Opportunity 2016
3-3
Management of material topics

405-1
405-2

Diversity of governance bodies and employees
Ratio of basic salary and remuneration of women to men

Location and Notes
Employee Health and Safety, pages 110-112
Supply Chain Due Diligence, pages 92-93
Ford’s internal hazard identification, risk assessment and incident investigation processes are ongoing and required at all times. Requirements pertain tocontractors and all personnel on Ford majority-owned facilities, including Pre-Task Analyses (PTAs) identifying work hazards and mitigation, in case of occurrence.
All PTAs are monitored by Ford. Contractors are instructed to report any job hazards to their supervisor and Ford representative. When employees are on-site at
non-majority- owned facilities and joint ventures, they are required to adhere to the facilities’ requirements.
U.S. locations are governed by OSHA and the requirements established in the Code of Federal Regulations (Standards – 29 CFR), General Industry (Part 1910) andConstruction (Part 1926). Additionally, ISO standards and select nationally recognized standards organizations such as the NFPA, ANSI and ASME form part of ourcompliance requirements.
Internally, we have a structure of health and safety standards that align requirements established from OSHA, other applicable global regulations and applicableindustry standards. The structure of the Safety Operating System (SOS) is based on these requirements.
The scope of the SOS is Ford’s majority-owned facilities. Joint ventures are encouraged to adopt Ford standards.
Performance Data — Employee Health and Safety, page 164
Data for occupational global injury breakdown is omitted as this information is considered confidential.
Performance Data — Employee Health and Safety, page 164
Data for work-related ill health breakdown is omitted as this information is considered confidential.
Supply Chain Sustainability Training, page 93
Workforce and Talent Development, page 104
Employee Learning and Development, page 106
Information not available
Supporting a Just Transition, page 104
All full-time, regular, salaried employees are subject to the performance review process. Performance reviews for hourly employees depend on their collective
agreement.
We Are Committed to Protecting Human Rights and the Environment policy
Ford Code of Conduct
Supplier Code of Conduct
Global Diversity, Equity and Inclusion, page 107
Performance Data — Human Capital Management and Diversity, Equity, and Inclusion, pages 158-161
Equal Pay for Equal Work, page 105
Performance Data — Remuneration, page 162

Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices185
Material Topics —CSRD Index —GRI Index —TCFD Index —SASB Index —GRI Index— continued

GRI Standard
GRI Disclosure
GRI 406: Non-discrimination 2016
3-3
Management of material topics

406-1
Incidents of discrimination and corrective actions taken
GRI 407: Freedom of Association and Collective Bargaining 2016
3-3
Management of material topics

407-1

Operations and suppliers in which the right to freedomof association and collective bargaining may be at risk

GRI 408: Child Labor 2016
3-3
Management of material topics

408-1

Operations and suppliers at significant risk for incidents
of child labor

GRI 409: Forced or Compulsory Labor 2016
3-3
Management of material topics

Location and Notes
We Are Committed to Protecting Human Rights and the Environment policy
Ford Code of Conduct
Supplier Code of Conduct
Harassment and Discrimination, page 24
Human Capital Management and Diversity, Equity, and Inclusion (DEI) Policies, page 104
Performance Data — Confirmed Harassment Allegations, page 164
We Are Committed to Protecting Human Rights and the Environment policy
Ford Code of Conduct
Supplier Code of Conduct
Fair and Decent Work, page 23
Human Rights Policy Commitments, page 89
Global Framework Commitments, page 91
Human Capital Management and Diversity, Equity, and Inclusion (DEI) Policies, page 104
We Are Committed to Protecting Human Rights and the Environment policy
Ford Code of Conduct
Supplier Code of Conduct
Responsible Material Sourcing Policy
Forced Labor, Child Labor, and Human Trafficking, pages 23-24
Forced Labor, Child Labor, and Human Trafficking, pages 23-24
Human Rights Policy Commitments, page 89
Addressing Child Labor Through Economic Opportunities for Women, page 95
Performance Data
Supply Chain Management — Human Rights Risk Assessments, page 150
Drive Sustainability Self-Assessment Questionnaire (SAQ) Results (continued), page 153
We Are Committed to Protecting Human Rights and the Environment policy
Ford Code of Conduct
Supplier Code of Conduct
Responsible Material Sourcing Policy
Forced Labor, Child Labor, and Human Trafficking, pages 23-24

UNGPRF Index —UN SDGs Index —Resources — Footnotes

Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices186
Material Topics — CSRD Index — GRI Index —TCFD Index —SASB Index —GRI Index— continued

GRI Standard
409-1

GRI Disclosure
Operations and suppliers at significant risk for incidents
of forced or compulsory labor

GRI 413: Local Communities 2016
3-3
Management of material topics

413-1

Operations with local community engagement, impact
assessments, and development programs
413-2
Operations with significant actual and potential negative
impacts on local communities
GRI 414: Supplier Social Assessment 2016
3-3
Management of material topics

414-1
414-2

New suppliers that were screened using social criteria
Negative social impacts in the supply chain andactions taken
GRI 415: Public Policy 2016
3-3
Management of material topics
415-1

Political contributions

GRI 416: Customer Health and Safety 2016
3-3
Management of material topics
416-1
416-2

Assessment of the health and safety impacts of productand service categories
Incidents of non-compliance concerning the healthand safety impacts of products and services

Location and Notes
Forced Labor, Child Labor and Human Trafficking, pages 23-24
Human Rights, page 88-89
Our Supplier Code of Conduct, page 90
Supply Chain Sustainability Training, page 93
Performance Data
Supply Chain Management, Human Rights Risk Assessments, page 150
Drive Sustainability Self-Assessment Questionnaire (SAQ) Results (continued), page 153
We Are Committed to Protecting Human Rights and the Environment policy
Ford Code of Conduct
Supplier Code of Conduct
Socioeconomic Contribution and Community Engagement , pages 116-119
Socioeconomic Contribution and Community Engagement , pages 116-119
The Ford Fund
Form 10-K — Item 3. Legal Proceedings, pages 34-36

We Are Committed to Protecting Human Rights and the Environment policy
Ford Code of Conduct
Supplier Code of Conduct
Human Rights, pages 90-97
Performance Data — Supply Chain Management Human Rights Assessments, page 150
Performance Data — Supply Chain Management Human Rights Assessments, pages 150-154

Ford Code of Conduct
Government Regulations, Policy and Engagement, page 131
Political Spending Process, page 131
2023 U.S. Political Engagement Report
Ford Code of Conduct
Product Safety and Quality, pages 99-103
Product Safety and Quality, pages 99-103
Performance Data — Vehicle Safety, page 157

UNGPRF Index —UN SDGs Index —Resources — Footnotes

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Material Topics —CSRD Index —GRI Index —TCFD Index —SASB Index —UNGPRF Index —UN SDGs Index — Resources — Footnotes

GRI Index— continued

GRI Standard
GRI Disclosure
GRI 417: Marketing and Labeling 2016
3-3
Management of material topics
417-1

Requirements for product and service informationand labeling

417-2

Incidents of non-compliance concerning product andservice information and labeling
417-3
Incidents of non-compliance concerning marketing
communications
GRI 418: Customer Privacy 2016
3-3
Management of material topics
418-1

Substantiated complaints concerning breaches ofcustomer privacy and losses of customer data
Connected Vehicles and Digital Services
3-3Management of material topics\

Location and Notes
Ford Code of Conduct
Responsible Marketing, page 115
Ford Motor Company follows all federal and state requirements applicable to the manufacturer for product certification and service information and labeling of ourvehicles. Ford Motor Company follows all federal and state guidelines regarding marketing and advertising communications and abides by the Ford MarketingStandards Manual.
This information is considered confidential.
This information is considered confidential.

Ford Code of Conduct
Data Protection, Privacy and Cyber Security, page 132
This information is considered confidential.

Connected Vehicles and Digital Services, pages 40-42

Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices188
Material Topics —CSRD Index —GRI Index — TCFD Index —SASB Index —UNGPRF Index —UN SDGs Index —Resources —Footnotes

TCFD Index

The table below identifies the actions taken by Ford in response to the 11 recommended disclosures of the Task Force on Climate-Related Financial Disclosures (TCFD).
TCFD recommended disclosure
GOVERNANCE: Disclose the organization’s governance around climate-related risks and opportunities.
a. Describe the board’s oversight of climate-related risks and opportunities.
b. Describe management’s role in assessing and managing climate-related risks and opportunities.

Location (section, page reference)
Climate Change — Governance, page 49
Accountable and Inclusive Governance, pages 127-130
Climate Change — Governance, page 49
Accountable and Inclusive Governance, pages 127-130

STRATEGY: Disclose the actual and potential impacts of climate-related risks and opportunities on the organization’s business, strategy, and financial planning where such information is material.
a. Describe the climate-related risks and opportunities the organization has identified over the short, medium, and long term.
Climate Change — Impacts, Risks, and Opportunities, pages 53-57
Risk Management and Internal Controls, pages 129-130
b. Describe the impact of climate-related risks and opportunities on the organization’s businesses, strategy, and financial planning.
The Transition Plan — Climate Change Mitigation, pages 45-52
Achieving Carbon Neutrality, pages 59-69
Products and Services — pages 30-42
c. Describe the resilience of the organization’s strategy, taking into consideration different climate-related scenarios, including a 2°C
Scenario / Resilience Analysis, pages 70-75
or lower scenario.
RISK MANAGEMENT: Disclose how the organization identifies, assesses, and manages climate-related risks.
a. Describe the organization’s processes for identifying and assessing climate-related risks.
b. Describe the organization’s processes for managing climate-related risks.
c. Describe how processes for identifying, assessing, and managing climate-related risks are integrated into the organization’s overallrisk management.

Climate Change — Impacts, Risks, and Opportunities, page 54
Accountable and Inclusive Governance, pages 127-130
Climate Change — Governance, page 49
Accountable and Inclusive Governance, pages 127-130
Climate Change — Governance, page 49
Accountable and Inclusive Governance, pages 127-130

METRICS AND TARGETS: Disclose the metrics and targets used to assess and manage relevant climate-related risks and opportunities where such information is material.
a. Disclose the metrics used by the organization to assess climate-related risks and opportunities in line with its strategy and risk
The Transition Plan — Climate Change Mitigation, pages 45-49
management process.
Achieving Carbon Neutrality, pages 59-69
b. Disclose Scope 1, Scope 2, and if appropriate, Scope 3 greenhouse gas (GHG) emissions and the related risks.
Performance Data Tables — Value Chain GHG Emissions, page 138
c. Describe the targets used by the organization to manage climate-related risks and opportunities and performance against targets.
The Transition Plan — Climate Change Mitigation, pages 45-49
Achieving Carbon Neutrality, pages 59-69
Performance Data Tables — 2035 Science Based Target initiative (SBTi) Greenhouse Gas (GHG) Reduction
Targets Reference Information, page 137

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Material Topics — CSRD Index — GRI Index — TCFD Index — SASB Index — UNGPRF Index — UN SDGs Index — Resources — Footnotes

SASB Index
SASB
Index
— continued

The Sustainability Accounting Standards Board (SASB) connects businesses and investors to the financial impacts of sustainability. Our Integrated Sustainability and Financial Report 2024 marks the sixth time that Ford has reported against the
Automobiles Sustainability Accounting Standard under the SASB framework.
SASB Standard – Automobiles (TR-AU)
Topic
Accounting Metric
Product Safety
Percentage of vehicle models ratedby NCAP programs with an overall
5-star safety rating, by region
Number of safety-related defectcomplaints, percentage investigatedNumber of vehicles recalled
Labor Practices
Percentage of active workforce
covered under collective bargaining
agreements(1) Number of work stoppages and(2) total days idle
Fuel Economy &Use-Phase Emissions

Sales-weighted average passenger
fleet fuel economy, by region
Number of (1) zero-emission vehicles(ZEV), (2) hybrid vehicles and (3) plugin hybrid vehicles soldDiscussion of strategy for managing
fleet fuel economy, and emissions
risks and opportunities

Category
Quantitative

Unit of Measure
Percentage (%)

Code
TR-AU-250a.1

Response
Performance Data — Available Ford and Lincoln Nameplates With 5-star Overall Rating (percent), page 157

Quantitative

TR-AU-250a.2

Quantitative
Quantitative

Number,percentage (%)
Number
Percentage (%)

Performance Data — Safety Recalls, page 157
Ford reviews 100% of NHTSA Vehicle Owner Questionnaire (VOQ) Complains filed on Ford vehicles
Performance Data — Safety Recalls, page 157
Ford works with about 44 unions globally, representing approximately 68% of their global workforce covered bycollective bargaining agreements.

Quantitative

Number, days idle

TR-AU-310a.2

QuantitativeMpg, L/km,
gCO2/km, km/L
Number

TR-AU-410a.1

Ford experienced work stoppages in 2023 at select facilities in the United States from September 15th through October 25th
during union contract negotiations.
Employees on strike or who were placed on a strike-related layoff totaled approximately 19,600. Total idled days was 41.
Performance Data — Vehicle Fuel Economy and CO2 Emissions, page 139

TR-AU-410a.2

Performance Data — Electric and Hybrid Vehicles Sold Globally (retail), page 136

Not applicable

TR-AU-410a.3

Electric Vehicles, Batteries, and Charging Infrastructure, pages 34-37
Ice and Hybrid Vehicles, page 38
Carbon Neutrality Overview, pages 45-52
Achieving Carbon Neutrality, pages 59-69

Quantitative

Discussion andAnalysis

TR-AU-250a.3
TR-AU-310a.1

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SASB Standard – Automobiles (TR-AU)
Topic
Accounting Metric
Materials Sourcing
Description of the managementof risks associated with the use ofcritical materials
Materials Efficiency
Total amount of waste from& Recycling
manufacturing, percentage recycled
Weight of end-of-life material
recovered, percentage recycled
Average recyclability of vehicles soldActivity metric
Number of vehicles manufactured
Number of vehicles soldCategory
Discussion andAnalysis

Unit of Measure
Not applicable

Code
TR-AU-440a.1

Quantitative

Metric tons (t),percentage (%)
Metric tons (t),percentage (%)
Percentage (%) by
sales-weighted
metric tons (t)TR-AU-440b.1

Response
Circular Economy and End of Life, pages 76-79
Responsible Sourcing of Raw Materials, page 93
Human Rights, pages 95-98
Performance Data — Total Waste and Percent Recycled and Reused, page 146

TR-AU-440b.2

Performance Data — Total Waste by Type and Disposal Method (million kilograms), page 146

TR-AU-440b.3

Our Approach: A Focus on Plastics, page 76

Unit of Measure
NumberNumberCode
TR-AU-000.A
TR-AU-000.B

Response
Performance Data — Vehicles Sold Globally, page 136
Performance Data — Vehicles Sold Globally, page 136

Quantitative
Quantitative

Category
Quantitative
Quantitative

Resources —Footnotes

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UNGPRF Index

The United Nations Guiding Principles Reporting Framework is a comprehensive guide for companies to report on human rights issues in line with their responsibility to respect human rights. This responsibility is outlined in the UN Guiding
Principles on Business and Human Rights, the global standard in this field.
UNGPRF Questions
Part A: Governance of respect for human rights
Policy commitment
A1 What does the company say publicly about its commitment to respect human rights?

A1.1 How has the public commitment been developed?
A1.2 Whose human rights does the public commitment address?

A1.3 How is the public commitment disseminated?
Embedding respect for human rights
A2 How does the company demonstrate the importance it attaches to the implementation of its human rights commitment?

A2.1 How is day-to-day responsibility for human rights performance organized within the company, and why?

A2.2 What kinds of human rights issues are discussed by senior management and by the Board, and why?

A2.3 How are employees and contract workers made aware of the ways in which respect for human rights should inform theirdecisions and actions?

Location (section, page reference) and notes

We Are Committed to Protecting Human Rights and the Environment policy
Ford Code of Conduct
Supplier Code of Conduct
Our Human Rights Policy, pages 88-89
Our Human Rights Strategy, page 89
Our Human Rights Policy, pages 88-89
Our Human Rights Strategy, page 89
We Are Committed to Protecting Human Rights and the Environment policy
Ford Code of Conduct
Supplier Code of Conduct
Our Human Rights Policy, pages 88-89
Our Human Rights Policy, pages 88-89
Our Human Rights Saliency Assessment, pages 22-25
Our Stakeholders, pages 26-29
Our Human Rights Policy, pages 88-89
Our Human Rights Strategy, page 89
Due Diligence in Our Own Business, page 89
Human Rights in Our Supply Chain, page 90
Accountable and Inclusive Governance, pages 127-130
Policy Statement on Ford’s Human Rights Strategy, Policies and Processes
Our Human Rights Policy, pages 88-89
Accountable and Inclusive Governance, pages 127-130
Our Human Rights Saliency Assessment, pages 22-25
Our Human Rights Policy, page 88
Our Supplier Code of Conduct, pages 90-91
Accountable and Inclusive Governance, pages 127-130
We Are Committed to Protecting Human Rights and the Environment policy
Ford Code of Conduct
Supplier Code of Conduct
Our Human Rights Saliency Assessment, pages 22-25
Our Stakeholders, pages 26-29
Our Human Rights Policy, pages 88-89
Supply Chain Sustainability Training, page 93
Employee Code of Conduct, page 126

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UNGPRF Questions
A2.4 How does the company make clear in its business relationships the importance it places on respect for human rights?

A2.5 What lessons has the company learned during the reporting period about achieving respect for human rights, and what haschanged as a result?

Part B: Defining a focus of reporting
Statement of salient issues
B1 State the salient human rights issues associated with the company’s activities and business relationships during the reporting period.
Determination of salient issues
B2 Describe how the salient human rights issues were determined, including any input from stakeholders.
Choice of focal geographies (if any)
B3 If reporting on the salient human rights issues focuses on particular geographies, explain how that choice was made.
Additional severe impacts (if any)
B4 Identify any severe impacts on human rights that occurred or were still being addressed during the reporting period, but whichfall outside of the salient human rights issues, and explain how they have been addressed.

Location (section, page reference) and notes
We Are Committed to Protecting Human Rights and the Environment policy
Supplier Code of Conduct
Our Human Rights Saliency Assessment, pages 22-25
Our Stakeholders, pages 26-29
Human Rights in Our Supply Chain, page 90
Our Supplier Code of Conduct, pages 90-91
Sourcing for Sustainability, page 91
Supply Chain Due Diligence, pages 92-93
Direct Sourcing of EV Battery Raw Materials, pages 96-97
Supplier Code of Conduct, page 126
Our Human Rights Saliency Assessment, pages 22-25
Our Human Rights Policy, pages 88-89
Our Human Rights Strategy, page 89
Due Diligence in Our Own Business, page 89
Sourcing for Sustainability, page 91
Supply Chain Due Diligence, pages 92-93
Responsible Sourcing of Raw Materials, page 93
Direct Sourcing of EV Battery Raw Materials, pages 96-97

Our Human Rights Saliency Assessment, pages 22-25
Our Human Rights Saliency Assessment, pages 22-25
Our Human Rights Saliency Assessment, pages 22-25
Our Human Rights Saliency Assessment, pages 22-25
Emerging Salient Risk: Data Privacy and Use of AI, page 25

Resources — Footnotes

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UNGPRF Index— continued

UNGPRF Questions
Part C: Management of salient human rights issues
Specific policies
C1 Does the company have any specific policies that address its salient human rights issues and, if so, what are they?

C1.1 How does the company make clear the relevance and significance of such policies to those who need to implement them?

Stakeholder engagement
C2 What is the company’s approach to engagement with stakeholders in relation to each salient human rights issue?
C2.1 How does the company identify which stakeholders to engage with in relation to each salient issue, and when and how to do so?
C2.2 During the reporting period, which stakeholders has the company engaged with regarding each salient issue, and why?
C2.3 During the reporting period, how have the views of stakeholders influenced the company’s understanding of each salient issue
and/or its approach to addressing it?
Assessing impacts
C3 How does the company identify any changes in the nature of each salient human rights issue over time?
C3.1 During the reporting period, were there any notable trends or patterns in impacts related to a salient issue and, if so, what werethey?
C3.2 During the reporting period, did any severe impacts occur that were related to a salient issue and, if so, what were they?

Location (section, page reference) and notes

We Are Committed to Protecting Human Rights and the Environment policy
Ford Code of Conduct
Supplier Code of Conduct
Policy Statement on Ford’s Human Rights Strategy, Policies and Processes
Our Human Rights Policy, pages 88-89
Our Human Rights Strategy, page 89
Our Human Rights Policy, pages 88-89
Our Human Rights Strategy, page 89
Accountable and Inclusive Governance, pages 127-130
Our Human Rights Saliency Assessment, pages 22-25
Our Stakeholders, pages 26-29
Our Human Rights Saliency Assessment, pages 22-25
Our Stakeholders, pages 26-29
Our Human Rights Saliency Assessment, pages 22-25
Our Stakeholders, pages 26-29
Our Human Rights Saliency Assessment, pages 22-25
Our Stakeholders, pages 26-29
Our Human Rights Saliency Assessment, pages 22-25
Our Human Rights Saliency Assessment, pages 22-25
Emerging Salient Risk: Data Privacy and Use of AI, page 25
Refer to ‘2023 Update’ under each salient issue in the Our Human Rights Saliency Assessment section
Our Human Rights Saliency Assessment, pages 22-25
Refer to ‘2023 Update’ under each salient issue in the Our Human Rights Saliency Assessment section

Integrating findings and taking action
C4 How does the company integrate its findings about each salient human rights issue into its decision-making processes and actions? Policy Statement on Ford’s Human Rights Strategy, Policies and Processes
Our Human Rights Saliency Assessment, pages 22-25
Our Human Rights Policy, pages 88-89
Our Supplier Code of Conduct, pages 90-91
Accountable and Inclusive Governance, pages 127-130
C4.1 How are those parts of the company whose decisions and actions can affect the management of salient issues involved in finding Policy Statement on Ford’s Human Rights Strategy, Policies and Processes
and implementing solutions?
Our Human Rights Saliency Assessment, pages 22-25
Our Human Rights Policy, pages 88-89
Our Supplier Code of Conduct, pages 90-91
Accountable and Inclusive Governance, pages 127-130

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UNGPRF Index— continued

UNGPRF Questions
C4.2 When tensions arise between the prevention or mitigation of impacts related to a salient issue and other business objectives,
how are these tensions addressed?

C4.3 During the reporting period, what action has the company taken to prevent or mitigate potential impacts related to each salientissue?
Tracking performance
C5 How does the company know if its efforts to address each salient human rights issue are effective in practice?
C5.1 What specific examples from the reporting period illustrate whether each salient issue is being managed effectively?
Remediation
C6 How does the company enable effective remedy if people are harmed by its actions or decisions in relation to the salient
human rights issues?

C6.1 Through what means can the company receive complaints or concerns related to each salient issue?

C6.2 How does the company know if people feel able and empowered to raise complaints or concerns?

C6.3 How does the company process complaints and assess the effectiveness of outcomes?

C6.4 During the reporting period, what were the trends and patterns in complaints or concerns and their outcomes regarding eachsalient issue, and what lessons has the company learned?
C6.5 During the reporting period, did the company provide or enable remedy for any actual impacts related to a salient issue and,if so, what are typical or significant examples?

Location (section, page reference) and notes
Our Human Rights Policy, pages 88-89
Our Human Rights Strategy, page 89
Our Supplier Code of Conduct, pages 90-91
Accountable and Inclusive Governance, pages 127-130
Our Human Rights Saliency Assessment, pages 22-25
Refer to ‘2023 Update’ under each salient issue in the Our Human Rights Saliency Assessment section
Due Diligence in Our Own Business, page 89
Supply Chain Due Diligence, pages 92-93
Our Human Rights Saliency Assessment, pages 22-25
Refer to ‘2023 Update’ under each salient issue in the Our Human Rights Saliency Assessment section
Corporate Grievance Mechanism, page 89
Due Diligence in Our Own Business, page 89
Grievance Mechanisms and Remedies, pages 91-92
Supply Chain Due Diligence, pages 92-93
Grievance Mechanisms and Remediation, pages 106-107
Corporate Grievance Mechanism, page 89
Due Diligence in Our Own Business, page 89
Grievance Mechanisms and Remedies, pages 91-92
Supply Chain Due Diligence, pages 92-93
Grievance Mechanisms and Remediation, pages 106-107
Corporate Grievance Mechanism, page 89
Due Diligence in Our Own Business, page 89
Grievance Mechanisms and Remedies, pages 91-92
Supply Chain Due Diligence, pages 92-93
Grievance Mechanisms and Remediation, pages 106-107
Accountable and Inclusive Governance, pages 127-130
Corporate Grievance Mechanism, page 89
Due Diligence in Our Own Business, page 89
Grievance Mechanisms and Remedies, pages 91-92
Supply Chain Due Diligence, pages 92-93
Grievance Mechanisms and Remediation, pages 106-107
Our Human Rights Saliency Assessment, pages 22-25
Refer to ‘2023 Update’ under each salient issue in the Our Human Rights Saliency Assessment section
Our Human Rights Saliency Assessment, pages 22-25
Refer to ‘2023 Update’ under each salient issue in the Our Human Rights Saliency Assessment section

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UN SDGs Index

Contributing to the United Nations Sustainable Development Goals (UN SDGs)
In 2015, the Member States of the United Nations adopted the 2030 Agenda for Sustainable Development. At the core of this agenda are 17 Sustainable Development Goals(SDGs) – and the 169 targets that support them are intended to end poverty, protect the planet and ensure prosperity for all.

Find Out

More about the UN SDGs
3 GOOD HEALTH AND WELL-BEING

4 QUALITY EDUCATION

5 GENDER EQUALITY

6 CLEAN WATER AND SANITATION

7 AFFORDABLE AND CLEAN ENERGY

Our Priorities
Since 2016, Ford Motor Company has been a signatory to the UN SDGs and we remain committed to contributing to progress toward them. We have identified 10 SDGs where we canmake the greatest impact. Achieving them by 2030 will require multi-stakeholder collaboration at a local, national and international level, so we call on our stakeholders and partners
to join us as we strive to meet these ambitions. Within Ford, regular discussions involving our global sustainability team, various skill teams and the Sustainability, Innovation, and Policy
Committee of the Board of Directors help to examine our performance through the lens of the SDGs. The following pages include examples of how we are contributing to the SDGs andwhere further information on these efforts can be found.

8 DECENT WORK AND ECONOMIC GROWTH

10 REDUCED INEQUALITIES

11 SUSTAINABLE CITIES AND COMMUNITIES

12 RESPONSIBLE CONSUMPTION AND PRODUCTION

13 CLIMATE ACTION

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3 GOOD HEALTH AND WELL-BEING

SDG 3: Good Health and Well-Being
Ensure healthy lives and promote well-being for all at all age

Why is this a priority for Ford?
We aspire to attain zero-emissions from our vehicles
and facilities to help improve air quality, and work
towards a future that is free from vehicle crashes andworkplace injuries. A clean, healthy, and sustainable
environment; health and safety; and rights ofIndigenous Peoples are salient human rights issues
for Ford. Ford cares about customer safety, and vehicle
safety will always be one of our highest priorities.
We understand that for our own employees andcommunity members to reach their full potential, we
must support their physical, mental and emotional
health and wellbeing and maintain the highest levelsof safety throughout the value chain.

Ford’s material topics• Air, Water, and Soil Pollution• Employee Health and Safety• Human Rights• Product Safety and Quality

Read MoreIn Appendix 1 of Integrated Sustainability and Financial Report 2024 for definitions of material topics

Most relevant SDG targets
3.6: By 2020, halve the number of global deaths and injuries
from road traffic accidents

Examples of Ford’s impact
Accelerating Progress (Air, Water), page 17

3.9: By 2030, substantially reduce the number of deaths andillnesses from hazardous chemicals and air, water and soil
pollution and contamination

Carbon Neutrality Overview, pages 45-52

Accelerating Progress (Safety), page 19

Air, Water, and Soil Pollution, pages 80-81
Water Resources, pages 82-84
Product Safety and Quality, pages 99-103
Employee Health and Safety, pages 110-112
Performance Data — Non-CO2 Tailpipe Emissions, page 144
Performance Data — Water Resources, page 148
Performance Data — Vehicle Safety, page 157
Performance Data — Employee Health and Safety, page 164

Footnotes

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UN SDGs Index— continued

4 QUALITY EDUCATION

SDG 4: Quality Education
Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all

Why is this a priority for Ford?
Ford’s material topics
Through continual, agile learning, we can support our • Human Rights
employees, suppliers, dealers and communities to keep • Socioeconomic Contribution andpace with a rapidly evolving world. Education andCommunity Engagement
training opportunities give people the best chance offulfilling their potential, support capacity building in
our supply chain and prepare the next generationof designers, engineers and technicians for thechallenges and changes in technology that lie ahead.

Most relevant SDG targets
4.3: By 2030, ensure equal access for all women and men toaffordable and quality technical, vocational and tertiary education,
including university
4.4: By 2030, substantially increase the number of youth andadults who have relevant skills, including technical and vocational
skills, for employment, decent jobs and entrepreneurship
4.7: By 2030, ensure that all learners acquire the knowledge andskills needed to promote sustainable development, including,among others, through education for sustainable development
and sustainable lifestyles, human rights, gender equality,
promotion of a culture of peace and non-violence, global
citizenship and appreciation of cultural diversity and of culture’s
contribution to sustainable development
4.b: By 2020, substantially expand globally the number ofscholarships available to developing countries, in particular least
developed countries, small island developing States and Africancountries, for enrollment in higher education, including vocational
training and information and communications technology,
technical, engineering and scientific programmes, in developed
countries and other developing countries

Read MoreIn Appendix 1 of Integrated Sustainability and Financial Report 2024 for definitions of material topics

Examples of Ford’s impact
Accelerating Progress (Human Rights), page 18
Supporting a Just Transition, page 104
Socioeconomic Contribution and Community Engagement, pages 116-119
Performance Data — Community Engagement, page 165

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UN SDGs Index— continued

5 GENDER EQUALITY

SDG 5: Gender Equality
Achieve gender equality and empower all women and girls

Why is this a priority for Ford?
Ford’s material topics
We aspire to support a diverse, equitable, and inclusive • Human Capital Management andworkplace where each person is valued. Fair andDiversity, Equity and Inclusion
decent work; forced labor, child labor, and human• Human Rights
trafficking; and harassment and discrimination are
salient human rights issues for Ford. Supporting andsustaining a diverse, equitable and inclusive workplace
includes ensuring women are equally represented at
all levels of our business and supporting initiatives
that empower women and girls. The strongest
businesses promote diversity, equity and inclusion.

Read MoreIn Appendix 1 of Integrated Sustainability and Financial Report 2024 for definitions of material topics

Most relevant SDG targets
5.1: End all forms of discrimination against all women andgirls everywhere
5.5: Ensure women’s full and effective participation and equal
opportunities for leadership at all levels of decision-making
in political, economic and public life
5.b: Enhance the use of enabling technology, in particular
information and communications technology, to promote theempowerment of women

Examples of Ford’s impact
Accelerating Progress (Human rights), page 18
Accelerating Progress (DEI), page 20
Human Capital Management and Diversity, Equity and Inclusion,
pages 104-109
Performance Data — Human Capital Management and Diversity, Equity,and Inclusion, pages 158-163

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6 CLEAN WATER AND SANITATION

SDG 6: Clean Water and Sanitation
Ensure availability and sustainable management of water and sanitation for all

Why is this a priority for Ford?
Water is critical to our manufacturing operations, so
we manufacturing processes and use freshwater
only for human consumption. A clean, healthy andsustainable environment, which includes access tosafe drinking water and adequate sanitation, is asalient human rights issue for Ford. We work with our
supply chain, especially in water-stressed locations, toreduce water consumption.

Ford’s material topics• Air, Water, and Soil Pollution• Human Rights• Water Resources

Most relevant SDG targets
6.3: By 2030, improve water quality by reducing pollution,
eliminating dumping and minimizing release of hazardous
chemicals and materials, halving the proportion of untreatedwastewater and substantially increasing recycling and safe reuse
globally
6.4: By 2030, substantially increase water-use efficiency acrossall sectors and ensure sustainable withdrawals and supply offreshwater to address water scarcity and substantially reduce
the number of people suffering from water scarcity
6.5: By 2030, implement integrated water resources management
at all levels, including through transboundary cooperation as
appropriate
6.6: By 2020, protect and restore water-related ecosystems,
including mountains, forests, wetlands, rivers, aquifers and lakes
6.b: Support and strengthen the participation of local communities
in improving water and sanitation management

Read MoreIn Appendix 1 of Integrated Sustainability and Financial Report 2024 for definitions of material topics

Examples of Ford’s impact
Accelerating Progress (Water), page 17
Air, Water, and Soil Pollution, page 80
Water Resources, pages 82-84
Performance Data — Water Resources, page 148

Resources —Footnotes

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7 AFFORDABLE AND CLEAN ENERGY

SDG 7: Affordable and Clean Energy
Ensure access to affordable, reliable, sustainable and modern energy for all

Why is this a priority for Ford?
We aspire to use 100 percent carbon-free electricity
in all manufacturing by 2035 through a mix of wind,solar power, nuclear, geothermal, biomass, and hydro.
A clean, healthy and sustainable environment, which
includes climate change and energy use, is a salient
human rights issue for Ford. As part of ourcommitment to address climate change, we recognize
the need to maximize energy efficiency in ouroperations. This will be key to achieving carbon
neutrality no later than 2050.

Ford’s material topics• Climate Change• Human Rights

Read MoreIn Appendix 1 of Integrated Sustainability and Financial Report 2024 for definitions of material topics

Most relevant SDG targets
7.2: By 2030, increase substantially the share of renewableenergy in the global energy mix
7.3: By 2030, double the global rate of improvement in energy
efficiency

Examples of Ford’s impact
Accelerating Progress (Energy), page 16
Carbon Neutrality Overview, pages 45-52
Climate Change Policies, page 58
Achieving Carbon Neutrality, pages 59-69
Performance Data — Operational Energy Use, pages 141-142

Footnotes

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UN SDGs Index— continued

8 DECENT WORK AND
ECONOMIC GROWTH

SDG 8: Decent Work and Economic Growth
Promote sustained, inclusive and sustainable economic growth, full and productive employment, and decent work for all

Why is this a priority for Ford?
We aspire to source only raw materials that are
responsibly produced. Fair and decent work; forcedlabor, child labor, and human trafficking; health andsafety; and impacts of EV transition are salient humanrights issues for Ford. With thousands of employees,
and many more in our supply chain, we strive toensure all our activities comply with local laws andour own commitments. We respect the different
cultures and beliefs of our team members, customers,
and the communities we serve.

Ford’s material topics• Climate Change

Most relevant SDG targets
8.2: Achieve higher levels of economic productivity through• Customer Experience and Responsible diversification, technological upgrading and innovation, including
through a focus on high-value added and labour-intensive sectors
Marketing• Employee Health and Safety• Human Capital Management andDiversity, Equity, and Inclusion• Human Rights• Supply Chain Management

8.5: By 2030, achieve full and productive employment and decent
work for all women and men, including for young people andpersons with disabilities, and equal pay for work of equal value
8.7: Take immediate and effective measures to eradicate forced
labour, end modern slavery and human trafficking and secure
the prohibition and elimination of the worst forms of child labour,
including recruitment and use of child soldiers, and by 2025 end
child labour in all its forms
8.8: Protect labour rights and promote safe and secure working
environments for all workers, including migrant workers, inparticular women migrants, and those in precarious employment

Examples of Ford’s impact
Accelerating Progress (Climate Change), page 15
Accelerating Progress (Human Rights), page 18
Accelerating Progress (Safety), page 19
Accelerating Progress (DEI), page 20
Products and Services, pages 31-42
Human Rights, pages 88-98
Human Capital Management and Diversity, Equity and Inclusion,
pages 104-109
Employee Health and Safety, pages 110-112
Socioeconomic Contribution and Community Engagement, pages 116-119
Supply Chain Management, page 125
Performance Data — Human Rights, pages 149-156
Performance Data — Remuneration, page 162
Performance Data — Supplier Diversity, page 162
Performance Data — Community Engagement, page 165

Read MoreIn Appendix 1 of Integrated Sustainability and Financial Report 2024 for definitions of material topics

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10 REDUCEDINEQUALITIESSDG 10: Reduced Inequalities
Reduce inequality within and among countries

Why is this a priority for Ford?
Ford’s material topics
We aspire to support a diverse, equitable, and inclusive • Business Conduct
workplace where each person is valued. Fair and• Human Capital Management anddecent work; harassment and discrimination; and theDiversity, Equity, and Inclusion
rights of Indigenous Peoples are salient human rights• Human Rights
issues for Ford. We respect the different cultures andbeliefs of our team members, customers, and thecommunities we serve.

Most relevant SDG targets
10.3: Ensure equal opportunity and reduce inequalities ofoutcome, including by eliminating discriminatory laws, policies
and practices and promoting appropriate legislation, policies
and action in this regard
10.4: Adopt policies, especially fiscal, wage and social protection
policies, and progressively achieve greater equality

Examples of Ford’s impact
Accelerating Progress (Human Rights), page 18
Accelerating Progress (DEI), page 20
Human Capital Management and Diversity, Equity and Inclusion,
pages 104-109
Transparency, Business Ethics and Integrity, page 126
Accountable and Inclusive Governance, pages 127-130
Performance Data — Remuneration, page 162

Read MoreIn Appendix 1 of Integrated Sustainability and Financial Report 2024 for definitions of material topics

Footnotes

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11 SUSTAINABLE CITIESAND COMMUNITIESSDG 11: Sustainable Cities and Communities
Make cities and human settlements inclusive, safe, resilient and sustainable

Why is this a priority for Ford?
We aspire to drive human progress by providing
mobility and accessibility for all. A clean, healthy, andsustainable environment; health and safety; impactsof EV transition; and the rights of Indigenous Peoples
are salient human rights issues for Ford. This will
require innovative new technologies and services
that will help address a host of challenges fromcongestion to poor air quality.

Ford’s material topics• Business Conduct• Climate Change• Connected Vehicles and Digital
Services• Data Protection, Privacy, and Cyber
Security• Employee Health and Safety• Human Rights• Product Safety and Quality

Most relevant SDG targets
11.2: By 2030, provide access to safe, affordable, accessible andsustainable transport systems for all, improving road safety,
notably by expanding public transport, with special attention
to the needs of those in vulnerable situations, women, children,
persons with disabilities and older persons

Examples of Ford’s impact
Accelerating Progress (Access), page 20

11.6: By 2030, reduce the adverse per capita environmental impactof cities, including by paying special attention to air quality andmunicipal and other waste management

Our Approach to Waste Management, page 78

Products and Services, pages 31-42
Carbon Neutrality Overview, pages 45-52
Achieving Carbon Neutrality, pages 59-69

Air, Water, and Soil Pollution, pages 80-81
Product Safety and Quality, pages 99-103
Data Protection, Privacy, and Cyber Security, page 132
Performance Data — Non-CO2 Tailpipe Emissions, page 144
Performance Data — Waste, pages 145-147
Performance Data — Vehicle Safety, page 157

Read MoreIn Appendix 1 of Integrated Sustainability and Financial Report 2024 for definitions of material topics

Footnotes

Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices204
Material Topics —CSRD Index —GRI Index —TCFD Index —SASB Index — UNGPRF Index — UN SDGs Index — Resources —UN SDGs Index— continued

12 RESPONSIBLE CONSUMPTION
AND PRODUCTION

SDG 12: Responsible Consumption and Production
Ensure sustainable consumption and production patterns

Why is this a priority for Ford?
We aspire to eliminate single-use plastics from ouroperations by 2030, reach true zero waste to landfill
across our operations and utilize only recycled or
renewable content in vehicle plastics. A clean,healthy, and sustainable environment and rights ofIndigenous Peoples are salient human rights issues
for Ford. Manufacturing vehicles requires the useof natural resources, some of which have a limited
or finite supply.

Ford’s material topics• Biodiversity and Ecosystems• Circular Economy and End of Life• Climate Change• Human Rights

Most relevant SDG targets
12.2: By 2030, achieve the sustainable management and efficientuse of natural resources

Examples of Ford’s impact
Accelerating Progress (Materials, Waste), page 16

12.4: By 2020, achieve the environmentally sound management ofchemicals and all wastes throughout their life cycle, in accordancewith agreed international frameworks, and significantly reduce
their release to air, water and soil in order to minimize theiradverse impacts on human health and the environment

Circular Economy and End of Life, pages 76-79

12.5: By 2030, substantially reduce waste generation throughprevention, reduction, recycling and reuse

Supply Chain Management, page 125

12.6: Encourage companies, especially large and transnational
companies, to adopt sustainable practices and to integratesustainability information into their reporting cycle

Performance Data — Waste, pages 145-147

12.7: Promote public procurement practices that are sustainable,in accordance with national policies and priorities

Read MoreIn Appendix 1 of Integrated Sustainability and Financial Report 2024 for definitions of material topics

Accelerating Progress (Air, Water), page 17

Air, Water, and Soil Pollution, pages 80-81
Biodiversity and Ecosystems, page 85
Human Rights, pages 88-98

Performance Data — Non-CO2 Tailpipe Emissions, page 144Footnotes

Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices205
Material Topics —CSRD Index —GRI Index —TCFD Index —SASB Index — UNGPRF Index —UN SDGs Index —Resources —Footnotes

UN SDGs Index— continued

SDG 13: Climate Action
Action to combat climate change and its impacts

Why is this a priority for Ford?
Ford’s material topics
We aspire to achieve carbon neutrality globally no• Climate Change
later than 2050 and in Europe by 2035. A clean,• Human Rights
healthy and sustainable environment and the impactsof an EV transitions are salient human rights issues forFord. Climate change is a global challenge that affects
us all. Emissions from our operations and the use of
our vehicles contribute to climate change, negatively
impacting people and communities.

In Appendix 1 of Integrated Sustainability and Financial Report 2024 for definitions of material topics

Most relevant SDG targets
13.2: Integrate climate change measures into national policies,
strategies and planning

Examples of Ford’s impact
Financial Highlights — Sustainable Financing Framework Update, page 10

13.3: Improve education, awareness-raising and human andinstitutional capacity on climate change mitigation, adaptation,

Climate Change, pages 45-75

impact reduction and early warning
13.a: Implement the commitment undertaken by developedcountry parties to the United Nations Framework Convention on
Climate Change to a goal of mobilizing jointly $100 billion annuallyby 2020 from all sources to address the needs of developing
countries in the context of meaningful mitigation actions andtransparency on implementation and fully operationalize theGreen Climate Fund through its capitalization as soon as possible

Accelerating Progress (Climate Change), page 15

Government Regulations, Policy and Engagement, page 131
Performance Data — Climate Change, pages 137-144

Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices206
Material Topics —Resource List

Ford Sustainability Reporting

Other Documents and Resources

Previous Year’s Reports

Automotive Industry Guiding Principles to Enhance
Sustainability Performance in the Supply Chain

Sustainable Financing Report 2023
Sustainable Financing Framework
CDP Climate
CDP Water

Board of Directors Code of Ethics and Charters
Global Modern Slavery Statement
Ford Code of Conduct
The Ford Fund
Ford Pro Inflation Reduction Act website
Ford Production Purchasing Global Terms and Conditions
Ford’s Responsible Materials Sourcing Policy
Ford Supplemental Diversity Report
Form 10-K
Political Engagement Report 2023
Proxy Statement 2024
Supplier Code of Conduct
U.S. EEO-1 Report
We Are Committed to Protecting Human Rights and theEnvironment policy

CSRD Index —GRI Index —TCFD Index —SASB Index — UNGPRF Index — UN SDGs Index — Resources —Footnotes

Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices207
Material Topics —CSRD Index —GRI Index —TCFD Index —SASB Index — UNGPRF Index — UN SDGs Index — Resources —Footnotes

Footnotes and Disclaimers

1.

Effective in 2023, Salaried Workforce data is reported
as Headcount (number of heads) and does notinclude consolidated joint venture employees in thisreport for all periods presented, while it is reported
as Full-Time Equivalent (FTE) and includes
consolidated joint ventures in the Ford 10-K.

2. See Form 10-K, pages 75-78 for definitions andreconciliations to GAAP (U.S. Generally Accepted
Accounting Principles).
3. Based on 2023 CY industry-reported total sales.
4. For North America and the EU.
5. Light duty (vehicles under 10,000 pounds). Available asoption on Super Duty XL which is a light duty vehicle.
6. Additional plants that support our Automotive segment
are operated by unconsolidated joint ventures of which
we are a partner. See 10-K for more information.
7.

Based on 2023 CY industry-reported total sales.

8. Calculated via peak performance of the electricmotors at peak battery power. Your results may vary.
9. Based on original equipment manufacturers (OEM)/
automotive manufacturers that sell all electric vehicles
and have active charging networks. Department ofEnergy data as of January 15, 2024 used. Numbers
subject to change. FordPass,® compatible with selectsmartphone platforms, is available via download.
Message and data rates may apply.
10. Octopus Energy blog — Where does our 100% green
electricity come from?
11. Xcel Energy’s EVSI programs, availability of the EVSI
programs and the costs covered by the EVSIPrograms are subject to the Xcel Energy customer
and EVSI project qualifying for, and enrolling in, an
Xcel Energy EVSI program approved for that location.
Not all programs are available in all of Xcel Energy’s

service locations, and not all Xcel Energy customers
or projects will qualify. Xcel Energy EVSI program
terms and conditions will apply.
12. Based on 45% highway, 55% city driving, and 15,000
annual miles.
13. Don’t drive while distracted or while using handheld
devices. Use voice-operated systems when possible.
Some features may be locked out while the vehicle
is in gear. Eligible 2024 model year vehicles receive
complimentary access to three years of Alexa Built-in
and one year of Lincoln Premium Connectivity
Connected Service plan which begins on the New
Warranty start date. Cellular networks may limit
functionality and prevent operation of connectedfeatures. Android Auto™ and Apple CarPlay®:
Requires phone with active data service andcompatible software. In-Vehicle Digital Experience
does not control third-party products while in use.
Third parties are solely responsible for theirrespective functionality.
14. Eligible 2024 model year vehicles receive three yearsof complimentary access to Alexa Builtin Connected
Service plan which begins on the New Vehicle
Warranty start date. Access to Alexa Built-in requires
an Amazon account, Lincoln Connect, activatedthrough the Lincoln Way App (see Lincoln Way Terms
for details). Some Alexa Built-in features require
Lincoln Premium Connectivity Connected Service planor Wi‑Fi network. One-year complimentary service of
Lincoln Premium Connectivity begins on the New
Vehicle Warranty start date. Connected Service andfeatures depend on compatible AT&T network
availability. Evolving technology/cellular networks/
vehicle capability may limit functionality and prevent
operation of connected features.

15. SiriusXM trial subscription will stop at the end of thetrial period. Trial is non-transferable. If you do not wish
to enjoy your trial, cancel by calling the number below.
Service subject to the SiriusXM Customer Agreement
and Privacy Policy; visit www.siriusxm.com for full terms
and how to cancel which includes online methods orcalling 1-866-635-2349. Services, content, and featuresare subject to device capabilities, location availability, or
active data connection. Fees, content, and features are
subject to change. Available in the 48 contiguous UnitedStates, D.C., and Puerto Rico (with coverage limits andcapable receiver). Visit listenercare.siriusxm.com formost current service area information. Radio features,content, and display may vary by vehicle. Some features
may not be available while driving.
16. Lincoln Connect, the Lincoln Way App, andcomplimentary Connected Service are required forremote features, including over-the-air updates (seeLincoln Way Terms for details). Lincoln Way App isavailable via a download; message and data rates may
apply. Connected Service and features depend oncompatible AT&T network availability. Evolving
technology/cellular networks/vehicle capability may
limit functionality and prevent operation of connectedfeatures. Connected Service excludes Wi‑Fi hotspot.
17. This feature is currently only available for Mustang
Mach-E owners that meet the following criteria:
2022 Model Year (MY) and newer 2021 MY with thefollowing SYNC®** software versions (see Checking
Your SYNC 4A Software Version): 21281_PRODUCT.244,
22028_PRODUCT.358, 22034_PRODUCT.364 A
minimum iOS version of 15.4.
18. Data not available with plugin devices from thirdparty providers.
19. Available Feature. BlueCruise requires a Connected
Service plan, FordPass® App, or Lincoln Way® App,and modem activation. Equipped vehicles come witheither a 90-day trial or a 2-year, 3-year, or 4-year
BlueCruise Connected Service plan, after whichpurchase is required. See ford.com/bluecruise or your
Lincoln retailer for more details. BlueCruise driverassist features are supplemental and do not replace
safe driving or driver’s attention, judgment and needto control the vehicle. Only remove hands in a HandsFree Blue Zone. Always watch the road and be
prepared to resume control. See Owner’s Manual for
details and limitations.
20. The overall increase in our absolute greenhouse gas(GHG) emissions from our preliminary results
reported in our Integrated Report in 2022 wasprimarily due to a change in methodology where we
increased the emissions scope to include the rest ofworld, unregulated regions and fleets.
21. The participation of Ford España, S.L. in Ford Mexico
Holdings LLC has been reduced from 100% that it had
until October 31, 2022 to 6.11% since November 1,
2022, with the other new shareholder of Ford Mexico
Holdings LLC, the U.S. company Ford International
Capital LLC, holding 93.89% of its shares.
22. According to Articles 19a or 29a of Directive 2013/34/EU,
as transposed in Spain by Article 49, paragraphs 1, 5, 6,
7 and 8 of the Spanish Commercial Code, as well as by
Article 262.5 of the Spanish Capital Companies Act.
23. Automotive sectoral pathway for 1.5°C is currently
not available.
24. The Scope 3 target covers vehicle use in the U.S.,
EU and UK, and China, representing the main regions
where we operate.
25. FVV Fuel Study IV: Future Fuels
26. Lower-carbon electricity sources are needed forsustainable e-fuels.

Fundamentals — Sustainability at Ford — Products and Services — Environment — Social — Governance — Data — Appendices208
Material Topics —CSRD Index —GRI Index —TCFD Index —SASB Index — UNGPRF Index — UN SDGs Index — Resources —Footnotes

Footnotes and Disclaimers— continued

27. The 2023 model year F-150 Lightning Platinum(ext. range) and Mustang Mach-E RWD (base range)city and highway kWh/100 mile were obtained
from fueleconomy.gov/ and weighted 43% city, 57%
highway to get real-world combined kWh/100 mile,
following the 2022 U.S. EPA Automotive Trends
Report methodology (epa.gov/automotive-trends):
F-150 Lightning Platinum (ext. range) 51.2 kWh/100
miles and Mustang Mach-E RWD (base range) 33.2
kWh/100 miles.
28. The estimated city and highway kWh/100 miles for ETransit (130-inch wheelbase, low roof) were analyticallyderived using models based on EPA test procedures
and calculations for lightduty electric vehicles set forthin 40 CFR Part 600, with inputs reflecting E-Transit
attributes including Average Loaded Vehicle Weight
Engineering Test Weight (ALVW ETW). Applying the
EPA Automotive Trends Report real-world weightingsof 43% city and 57% highway, gives combined realworld 62.3 kWh/100 miles. Estimates are illustrative
only and not representative of all drivers or
circumstances. Actual mileage will vary based on
external environment (including ambient temperature),
driving behaviors, payload, vehicle use, vehicle,
charging habits, lithium- ion battery age and state ofhealth, vehicle upfits and alterations, and other factors.
29. The U.S. average grid emissions are 416g CO2e/kWh,which includes emissions from electricity generation,
upstream emissions for fuel feedstock production, andtransmission losses. Ref. 2022 U.S. EPA Automotive
Trends report (epa.gov/automotive-trends).
30. The comparable internal combustion engine vehicle(ICEV) MPG are the preliminary 2022 model year
segment-average real-world values for Car SUV (262g
CO2/mile) and pickup (442g CO2/mile), from the 2022
U.S. EPA Automotive Trends report (epa.gov/
automotive-trends).

31. Estimated city and highway MPG for ICEV Transit(130-inch wheelbase, low roof) were analyticallyderived using models based on EPA test procedures
and calculations for light-duty gasoline-powered
vehicles set forth in 40 CFR Part 600, with inputs
reflecting 2021 3.5L PFDI gasoline-powered Transit
attributes including Average Loaded Vehicle Weight
Engineering Test Weight (ALVW ETW). Applying the
EPA Trends Report real-world weightings of 43% cityand 57% highway, gives combined real-world 17.0
MPG (523g CO2/mile). Estimates are illustrative only
and not representative of all drivers or circumstances.
Actual mileage will vary based on external
environment (including ambient temperature), driving
behaviors, payload, vehicle use, vehicle, charging
habits, lithium-ion battery age and state of health,vehicle upfits and alterations, and other factors.
32. Lifetime carbon dioxide (CO2) emissions are calculated
on a well-to-wheels basis, including CO2 from the
ICEV tailpipe, ICEV fuel production, and EV electricity
production.
32a.Tailpipe (tank-to-wheels) CO2 emissions arecalculated from MPG by dividing 0.008887
metric tons CO2/gallon gasoline (EPA Automotive
Trends Report) by the vehicle MPG andmultiplying by the lifetime miles.
32b.Fuel production CO2 emissions (well-to-tank) arecalculated by multiplying the tailpipe CO2 by
0.25, following the 2022 U.S. EPA Automotive
Trends Report methodology (epa.gov/
automotive-trends).
32c. Electricity production CO2 emissions are calculated
by multiplying the EV kWh/100 miles by theelectric grid CO2-intensity 0.000416 metric tons
CO2e/kWh and multiplying by the lifetime miles.

32d. Lifetime miles for F-150 Lightning/Pickup(225,865) and Mustang Mach-E/Car SUV (195,264)
are defined in 40 CFR 86.1865 12(k)(4) and for ETransit/Transit useful life (150,000) in 49 CFR
535.5 (a)(10)(ii).
33. The CO2 savings from EVs are converted to an
equivalent gallons of gasoline not used based on the
EPA Greenhouse Gas Equivalencies Calculator, whichapplies the factor 0.008887 metric tons CO2 pergallon of gasoline consumed. (epa.gov/energy/
greenhouse-gas-equivalenciescalculator).
34. https://www3.weforum.org/docs/
WEF_First_Movers_Coalition_Impact_Brief_2024.pdf
35. Excerpts from “International Energy Agency | World
Energy Outlook 2022 & 2023”, Chapter 2.
36. International Energy Agency | World Energy Outlook
2023, pp. 91-92, 295.
37. Riahi, K., Rao, S., Krey, V. et al. RCP 8.5—A scenario ofcomparatively high greenhouse gas emissions.
Climatic Change 109, 33 (2011). https://doi.org/10.1007/
s10584-011-0149-y

42. https://www.noheatstroke.org/
43. Per 2023 J.D. Power 2023 Initial Quality Study (IQS)(dated 6/20/23, released 6/22/23) a. Models in IQS“Top 3”: https://www.jdpower.com/business/pressreleases/2023-us-automotive-performance-executionand-layout-apeal-study
44. Per 2023 J.D. Power 2023 U.S. Automotive
Performance, Execution And Layout (APEAL) Study(dated 7/18/23, released 7/20/23) https://www.jdpower.com/business/press-releases/2023-usautomotive-performance-execution-and-layoutapeal-study
45. Based on U.S. 2023 Q3 YTD data. Ford Mobile Service
is offered by participating dealers and may be limited
based on availability, distance, or other dealer-specified
criteria. Does not include parts or repair charges.
46. Rebuild by Design “Atlas of Disaster”
www.rebuildbydesign.org/atlas-of-disaster

Google, Android, Google Play, Google Maps and othermarks are trademarks of Google LLC. Data rates may apply.

38. According to the EU End-of-Life Vehicle Directive. For
North America and the EU.

Amazon, Alexa and all related marks are trademarksof Amazon.com, Inc. or its affiliates.

39. Formal due diligence can be defined as in accordancewith OECD due diligence for responsible supply
chains of minerals from CAHRAs.

Apple, Apple CarPlay, iPhone and Siri are trademarksof Apple Inc., registered in the U.S. and other countries.

40. Other includes recyclers and suppliers type unidentified.
41. Driver-assist features are supplemental and do not
replace the driver’s attention, judgment and need tocontrol the vehicle. Pre-Collision Assist with
Automatic Emergency Braking detects pedestrians,
but not in all conditions, and can help avoid or reducea collision. It does not replace safe driving. See
Owner’s Manual for details and limitations.

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