Ford Integrated Sustainability and Financial Report — page 1

On The Road to Better

Helping

Build

a Better

World

2025

Integrated Sustainability

and Financial Report

sustainability.ford.com I shareholder.ford.com

Fundamentals

Sustainability at Ford

Products and Services

Environment

Social

Governance

Sustainability Statement

Data

Appendices

On The Road to Better

| Letter from Ford and Farley | Contents

Ford at a Glance

Our Leadership in Sustainability

Financial Highlights

On The Road

to Better

At Ford, our purpose has always

been bigger than building vehicles.

We are driven by a desire to build a

better world. A world in which every

person is free to move and pursue

their dreams.

We’ve been on this journey for

122 years. Today, our industry is

facing significant headwinds, but

with every challenge comes

opportunity. And while our business

evolves to meet the demands of

a changing world, there are some

things that will never change.

Like how we behave, and why. 

At Ford, we choose to do what

we believe is right. For our

employees, that means fostering

a respectful, safe, and inclusive

working environment and providing

opportunities to talented and

motivated people around the world.

For our products, it means constant

innovation, in what we build and how

we build it. For our communities, it

means continuing our longstanding

commitment to showing up in good

times and bad.

Better business. Better products.

Better communities. These are our

paths to building a better world.

In the following report, we share a

detailed view of the progress made

in the past year toward achieving our

environmental, social and governance

goals. Much has changed since our

last Integrated Report, but we have

never shied away from change.

It demands innovation, problem

solving, and hard work: everything

we do best.

We are better today than we

were yesterday. Tomorrow, we’ll be

better still. That’s the road we’re on.

The road to better.

Ford Integrated Sustainability and Financial Report 2025

Ford Integrated Sustainability and Financial Report — page 3

Fundamentals

Sustainability at Ford

Products and Services

Environment

Social

Governance

Sustainability Statement

Data

Appendices

On The Road to Better |

Letter from Ford and Farley

Contents

Ford at a Glance

Our Leadership in Sustainability

Financial Highlights

Letter from Bill Ford

and Jim Farley

Ford Integrated Sustainability and Financial Report 2025

“

Our industry is experiencing

change at a remarkable

rate and magnitude, and

Ford is seizing this

opportunity to lead and

help build a better world.

”

Bill Ford, Executive Chair

BILL FORD

JIM FARLEY

Throughout our 122-year history, Ford has been

repeatedly tested by new competition, economic and

political turmoil, shifting regulations, and disruptive

changes in technology.

We have not only survived but continued to thrive and

grow by evolving our strategy to meet the challenges

ahead, focusing on customers, and remaining true to

our bedrock commitment to build a better world where

every person is free to move and pursue their dreams.

We are taking on the challenges of today and tomorrow

with this same spirit of optimism, self-reliance, and

determination.

In 2024, we made significant progress even while

experiencing the bumps and unexpected turns that

come with charting a new path. We generated the

highest revenue in the history of our company, driven

by a product lineup that offers customers unprecedented

choice. Ford was the #1 gas, #2 electric, and #3 hybrid

vehicle brand in America for the second year in a row.

Ford Pro, our commercial division, had another strong

year and continues to lead the growth of our vibrant

software-and-services business. We also made progress

on our goal to deliver industry-leading quality while

becoming more cost-efficient.

In 2025, we will continue to develop our Ford+ plan to

combine our industrial strengths and iconic brands with new

capabilities, technologies, and services to give customers

more value and a constantly improving experience.

Last year, more customers chose an electrified Ford

vehicle than ever before. Total Ford electrified vehicle

sales (hybrid, plug-in hybrid and electric) hit a record this

year in the US — up 38% from 2023. Our hybrid lineup,

particularly trucks, is growing in popularity as customers

seek improved fuel economy and unique features like

Pro Power Onboard, which works as a mobile generator to

power worksites, camp sites, and even homes. We expect

to increase global sales of our electric vehicles this year,

led by new launches in Europe and initiatives like Ford

Power Promise, which offers free home-charger

installations in the United States, Canada, and Europe.

We’re also deep into the development of our future

electric vehicles, which we expect to be profitable,

affordable, and high-volume.

And at Ford, we believe it’s not just what we build but also

how we build. Across our global facilities, we are lessening

our environmental impact by conserving water, reducing

waste, recycling, and improving energy efficiency. Over the

past decade, Ford recycled an estimated 2 billion pounds of

aluminum during the manufacturing of our all-aluminum-

body F-series models — enough to build roughly 37,000

F‑series truck bodies each month. Moreover, by 2027, all of

our manufacturing in Michigan will be powered by 100%

carbon-free electricity, including wind- and solar-

generated power.

We believe lasting change requires working together.

That’s why Ford helped launch Transform: Auto,

partnering with competitors to leverage our collective

buying power and investing in renewable energy across

North American supply chains. Through our strategic

partnership with Manufacture 2030, we are providing

suppliers with the support and tools they need to

achieve their own carbon neutrality goals. By promoting

the highest standards for efficiency and innovation

across our supply chain, we can ensure we continue to

create best-in class products and services for our

customers and move closer to our aspiration to achieve

carbon neutrality in our vehicles, manufacturing facilities,

and supply chains globally by 2050.

As a family-led company, Ford continues to invest in

our employees. We are on track for approximately 90% of

our global employees to be working in new or renovated

workspaces by 2027. And we remain deeply committed

to fostering a respectful, safe, and inclusive working

environment and providing opportunities to talented

and motivated people around the world.

We also continue to show up for our communities in

good times and bad. Last year, we aided recovery efforts

in the southeastern United States after devastating

hurricanes and around the world in places like Valencia,

Spain, and Northern Thailand. The global disaster-relief

support we provided our partners through Ford

Philanthropy and through our generous network of

dealers — who contribute so much to their communities

year-round — was an example of Ford at its best.

We’re listening to and learning from our local stakeholders

to deliver initiatives that make a real difference in their

lives, like our Good Neighbor Plan in West Tennessee

and nature-conservation efforts near our manufacturing

facilities. The reopening of Michigan Central Station as a

hub for culture and innovation in Detroit, after Ford’s

extensive six-year restoration, is a powerful statement

of our commitment to the city we call home.

Ford sees our mission as bigger than the vehicles and

experiences we deliver. We’re driven by a passion for our

work and a desire to improve lives, strengthen communities,

and leave a better world for future generations. Doing

business honestly, protecting the environment, stepping

up for our neighbors, and championing American

manufacturing — that is what Ford represents to our

employees, customers, dealers, suppliers, and investors.

In the pages of this report, we hope you will see the story

of this great company, its extraordinary people, and the

progress we are making together along the Road to Better.

Bill Ford

Executive Chair

Jim Farley

President, and Chief Executive Officer

Ford Integrated Sustainability and Financial Report — page 4

Fundamentals

Sustainability at Ford

Products and Services

Environment

Social

Governance

Sustainability Statement

Data

Appendices

On The Road to Better | Letter from Ford and Farley |

Contents

Ford at a Glance

Our Leadership in Sustainability

Financial Highlights

About this report

Our purpose is to help build a better world where every person is free to

move and pursue their dreams. Building a strong, sustainable business

takes commitment, effort, and persistence. 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 26th annual sustainability report and fifth Integrated

Sustainability and Financial Report, and we are committed to maintaining

our leadership position in sustainability reporting. That’s why this year we

are including a Sustainability Statement within our Integrated Report in

accordance with the European Union Corporate Sustainability Reporting

Directive (CSRD) (

EU 2023/2772 of 31 July 2023

We also continue to align with existing best practice reporting

frameworks including, but not limited to, the IFRS Foundation

International Framework, Global Reporting Initiative (GRI) Standards,

Task Force on Climate-Related Financial Disclosures (TCFD), Sustainability

Accounting Standards Board (SASB), United Nations Guiding Principles

Reporting Framework (UNGPRF), and the United Nations Sustainable

Development Goals (UN SDGs).

This Integrated Report 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 welcome you to share with us your feedback and any comments you

may have at

sustaina@ford.com

→

Read More: In Human Rights on p.94

INCLUSION STRATEGY

We remain committed to a respectful, safe, and inclusive

workplace for everyone at Ford. The foundation of our

strategy is respect, empathy, and listening to each other.

This approach helps to ensure that voices are heard and

inclusion, which requires action and commitment, is

always top of mind. All of these principles are embedded

in Ford OS behaviors. We think of diversity in the

broadest sense — it’s about sharing our similarities

and respectfully discussing our differences.

→

Read More: In Human Capital Management and Diversity,

Equity, and Inclusion on p.112

Ford Integrated Sustainability and Financial Report 2025

Ford Integrated Sustainability and Financial Report — page 13

Fundamentals

Sustainability at Ford

Products and Services

Environment

Social

Governance

Sustainability Statement

Data

Appendices

Sustainability Aspirations | Sustainability Strategy |

Creating Sustainable Value

| Accelerating Progress | Stakeholder Engagement | Materiality Assessment | Human Rights Saliency Assessment

How We Create

Sustainable Value

OUR ENABLERS

HUMAN CAPITAL

●

168,569 employees

●

9,000+ dealerships

●

Approximately 1,600 Tier 1 suppliers

●

10 Employee Resource Groups

SOCIAL CAPITAL

●

Community Relations department focused

on engagement with manufacturing communities

●

Community engagement for 75+ years through

Ford Philanthropy, our philanthropic arm

●

Partnerships with nonprofits, community

organizations, and Ford dealers globally

●

Strategic partnerships with investors, industry bodies,

and partner companies

●

Blue Table Forum

●

STEM programs and electric vehicle training centers to develop

future workforce

FINANCIAL CAPITAL

●

Fully allocated $4.21 billion through two Green Bond

issuances under our Sustainable Financing Framework,

all proceeds went towards Clean Transportation

MANUFACTURED CAPITAL

●

41 manufacturing and assembly plants

●

Product Development Center

●

Modernizing electric vehicle production

INTELLECTUAL CAPITAL

●

1,737 global patents issued

●

250 patents issued in electric vehicle technology

●

Connectivity and Connected Services

●

FordPass network

●

Global Data Insight and Analytics

●

D-Ford human-centered design process

NATURAL CAPITAL

●

9,666,188.5 MWh of energy used for global operations

●

3,246,747 MWh of carbon-free electricity used at

manufacturing facilities

●

15.1 million cubic meters of water used globally

●

Multiple renewable materials used

Ford Integrated Sustainability and Financial Report 2025

OUR BUSINESS

Our

Business

Activities

DESIGN

We consider sustainability criteria

to reduce our vehicles’ impacts

RESPONSIBLE

SOURCING

We require suppliers to have

environmental and social

standards aligned with ours

LOGISTICS (INBOUND)

We encourage our logistics

providers to transport and deliver

materials and parts efficiently

MANUFACTURING

We invest in lean processes and

world-class factories to create

positive impact

LOGISTICS

(OUTBOUND)

We encourage our logistics

providers to transport finished

vehicles efficiently

SALES AND SERVICE

We are reimagining customer

experience by listening and

adapting to their needs

OUR VEHICLES IN USE

We are continuously improving

our vehicles’ environmental

impact, safety, and quality

MOBILITY

We are exploring new solutions

to support urban mobility

END OF VEHICLE LIFE

Over 85%

of our vehicle

materials are recyclable and

reusable

Our Purpose

To help build a better world, where every

person is free to move and pursue their dreams.

OUR IMPACT IN 2024

EMPLOYEES

●

Health and wellness programs for

employees and families

●

Competitive salaries and benefits

●

Employee training and development

●

Culture of caring and inclusion

CUSTOMERS

●

4.470M wholesale vehicles sold

globally

●

541,085 electric vehicles sold globally

●

Access to electric vehicle charging

networks

●

Remote Pickup & Delivery and Mobile

Service vans

●

Improved vehicle safety and driver

assist technologies

●

120 safety recalls and 6.6 million

passenger vehicle recalls globally

INVESTORS

●

Strong balance sheet

●

Financial flexibility to invest in Ford+

growth plan

●

Disciplined capital allocation

●

Focus on total shareholder return

●

More transparent reporting for

investors

SUPPLIERS

●

Sustainability practices shared with

suppliers through climate programs

that promote best practices

●

Sustainability metrics integrated into

sourcing decisions

●

Audits and value stream mapping of

high-risk raw material supply chains,

including cobalt, mica, nickel, lithium,

natural graphite, and aluminum, to

support responsible sourcing

●

Social responsibility audits performed

at highest risk suppliers as determined

by risk-based prioritization

COMMUNITIES AND SOCIETY

●

Invested $76.8 million in charitable

contributions

●

$2.4 billion invested in communities

globally since 1949

●

1.8 million employee volunteer hours

since 2005 through the Ford Volunteer

Corps

PLANET

●

356 million metric tons of greenhouse

gases (GHGs) emitted total (Scope 1, 2,

and 3)

●

49%

reduction in absolute global

operations GHG emissions

since 2017

●

16% reduction in total Scope 3 GHG

emissions since 2019

●

Used 15.1 million cubic meters of water,

achieving a 21.6% reduction from 2019

●

82 true zero waste to landfill sites

●

Sent 14.7 million kilograms of waste to

landfill and recycled 725.8 million

kilograms

●

Recycle millions of pounds of aluminum

per month

This model is aligned with the IFRS Foundation

International Framework

(January 2021) Item 2D: Process through which value is created, preserved or eroded.

Ford Integrated Sustainability and Financial Report — page 14

Fundamentals

Sustainability at Ford

Products and Services

Environment

Social

Governance

Sustainability Statement

Data

Appendices

Sustainability Aspirations | Sustainability Strategy | Creating Sustainable Value |

Accelerating Progress

| Stakeholder Engagement | Materiality Assessment | Human Rights Saliency Assessment

Accelerating Progress Towards our Aspirations

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.

SUSTAINABILITY ASPIRATIONS

TARGETS AND KEY PERFORMANCE

INDICATORS

PROGRESS

UN SUSTAINABLE

DEVELOPMENT GOALS

Climate

Change

Achieve carbon neutrality

no later than 2050

→

Read More: In Human Rights on p.94

→

HARASSMENT AND DISCRIMINATION

Sustainability Aspiration:

Support a respectful, safe, and inclusive workplace where

each person is valued.

Human Rights Salient Issue:

Everyone has the right to a workplace free from violence

and harassment, including any unwelcome behavior that

is humiliating, intimidating, or offensive, whether

intentional, isolated, or repeated. Employees also have

the right to equal employment opportunity and freedom

from discrimination based on characteristics such as race,

color, religion, sex (including gender identity, sexual

orientation, and pregnancy), national origin, age,

disability, or genetic information. This includes risks of

discrimination in employment policies, hiring, promotion,

compensation, benefits, and general treatment.

Specifically, risks exist regarding equal pay, opportunities,

and various forms of harassment, including power

harassment, sexual harassment, and bullying.

Actions in Place:

Ford is committed to supporting and sustaining a diverse

and inclusive workplace. As we move forward, our

intention is to harness the power of a talented and

diverse team to help fuel our transformation and 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 team members,

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 our policies,

our

Code of Conduct

, or the law. Ford will support and

protect anyone who raises a good-faith concern and strictly

prohibits retaliation against anyone for reporting a

suspected violation or for assisting with an investigation.

Read More: In Human Capital Management and Diversity,

Equity, and Inclusion on p.112

→

IMPACTS OF ELECTRIC VEHICLE TRANSITION

Sustainability Aspiration:

Achieve carbon neutrality no later than 2050.

Drive human progress by providing mobility and

accessibility for all.

Human Rights Salient Issue:

Ford’s transition to electric vehicles presents human

rights risks and opportunities across the value chain.

These include supply chain risks related to sourcing

materials from regions with conflict or poor human rights

records, workforce risks associated with job displacement

and the need for new skills, and end user risks related to

electric vehicle cost and charging infrastructure

accessibility.

Actions in Place:

Ford recognizes that urgent action is needed to address

climate change. As we continue to implement our electric

vehicle strategy and move toward carbon neutrality, we

are supporting a just transition for our employees, our

supply chain, and the communities in which we operate.

We recognize that new skills and learning approaches

are needed as the transition to electric vehicles disrupts

business models across industries and new value

streams emerge. Ford is committed to providing hourly

and salaried employees with the opportunity to upskill

and reskill with supportive training programs. We’re

committed to working closely with local communities

and stakeholders to protect the environment and to

create jobs in the green economy. Supporting a just

transition to a sustainable electric vehicle future takes

into account the people and communities that will be

impacted most by this pivotal change.

Read More: In Human Capital Management and Diversity,

Equity, and Inclusion on p.112

→

LOCAL COMMUNITIES AND INDIGENOUS PEOPLES

Human Rights Salient Issue:

Indigenous Peoples, with their distinct cultures and

political characteristics, hold equal rights to all others.

Operational and supply chain activities risk adversely

impacting local communities, potentially leading to land

rights disputes, forced evictions, gender-based violence,

and threats to their health, safety, and standard of living.

These activities may also infringe upon the rights of

Indigenous communities, including their right to self-

determination, free, prior, and informed consent, and the

preservation of their culture and sacred sites.

Actions in Place:

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 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.

As we directly source our electric vehicle battery

materials, we are aware of the risk mineral mining

may pose to Indigenous Peoples’ rights. Consequently,

our Responsible Materials Sourcing Policy reflects

our requirement that our raw material suppliers must

obtain Free, Prior, and Informed Consent of Indigenous

communities prior to initiating 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 Peoples’

rights and gain Free, Prior, and Informed Consent.

In Human Rights on p.94

→

Human Rights Saliency Assessment

— continued

Ford Integrated Sustainability and Financial Report 2025

Ford Integrated Sustainability and Financial Report — page 29

Fundamentals

Sustainability at Ford

Products and Services

Environment

Social

Governance

Sustainability Statement

Data

Appendices

Human Rights Saliency Assessment

OCCUPATIONAL HEALTH, SAFETY, AND WELLNESS

Sustainability Aspiration:

Work toward a future that is free from workplace injuries.

Human Rights Salient Issue:

Physical and mental health and safety of employees

and workers in the supply chain is one component of

an adequate work environment that satisfies global and

national legal standards. This requires mitigating risks

such as hazardous working conditions, lack of personal

protective equipment, and inadequate training on health

and safety procedures, all of which can lead to incidents,

injuries, and negative mental health impacts.

Actions in Place:

The health, safety, and wellness of our people continues

to be a priority for Ford. Many of our internal standards

go beyond applicable laws and regulations so that we

can meet our commitment to protecting the safety of our

workforce in all our locations.

In Employee Health and Safety on p.119

Read More: In Human Rights on p.94

→

PRODUCT SAFETY

Sustainability Aspiration:

Work toward a future that is free from vehicle crashes.

Human Rights Salient Issue:

Ford’s product safety and quality consider the end users’

physical safety as they use and operate Ford products.

There is a risk that road users’ health and safety is not

adequately ensured through product design. Active

safety measures can prevent or mitigate foreseeable

incidents while passive safety measures protect road

users when a crash is unavoidable.

Actions in Place:

We are dedicated to creating vehicles that achieve

the highest 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.

Read More: In Product Safety and Quality on p.106

→

Human Rights Saliency Assessment

— continued

Ford Integrated Sustainability and Financial Report 2025

Ford Integrated Sustainability and Financial Report — page 30

Fundamentals

Sustainability at Ford

Products and Services

Environment

Social

Governance

Sustainability Statement

Data

Appendices

Ford Integrated Sustainability and Financial Report 2025

Products

and Services

Products and Services Overview

Customer Focused Business Segments

Electric Vehicles, Batteries, and Charging Infrastructure

ICE and Hybrid Vehicles

Technology and Connected Services

Ford Integrated Sustainability and Financial Report — page 31

Fundamentals

Sustainability at Ford

Products and Services

Environment

Social

Governance

Sustainability Statement

Data

Appendices

Overview

| Customer Focused Business Segments | Electric Vehicles, Batteries, and Charging Infrastructure | ICE and Hybrid Vehicles | Technology and Connected Vehicles

Ford Integrated Sustainability and Financial Report 2025

Products and

Services

Overview

Today’s Ford vehicles provide more than transportation,

they offer connection: between us and our customers,

and between drivers and their passions. Through our

wide range of vehicles and our innovative suite of

software and services, we’re providing customers with

more choices and reducing carbon emissions over time.

BUILDING A PROFITABLE AND EFFICIENT ELECTRIC

VEHICLE BUSINESS

We are committed to making the transition to an electric

lifestyle — or commercial fleet — easy by delivering more

of what our customers want: performance, capability, and

productivity. By aligning manufacturing capacity and capital

allocation with customer demand, we are focused on

building a profitable electric vehicle business. In 2024, we:

●

Added the European electric Explorer and Capri to our

lineup of electrified icons: the Mustang Mach-E, the F-150

Lightning, and the E-Transit Van

●

Made charging easier and more accessible both at home

and on the road

●

Worked to bring the benefits of electric vehicles to even

more commercial customers with an accessible price point,

improved productivity, and lower cost of ownership

A DIVERSE PRODUCT PORTFOLIO

Internal combustion engine (ICE) and hybrid vehicles are

an important part of the Ford story. We are focused on

improving our ICE powertrains to achieve better fuel

economy while meeting emissions criteria. At the same

time, we’re broadening our hybrid powertrain offerings

to give customers even more choices.

CUSTOMERS COME FIRST AT FORD

Whether they’re driving an electric vehicle, a hybrid, an

ICE vehicle, or managing a fleet, our customers’ wants

and needs are central to our purpose. We continuously

strive to make driving easier and ownership more

enjoyable through our sharp focus on world-class quality

and cutting-edge technology.

Our Sustainability Aspirations

Climate Change:

Achieve carbon neutrality no later

than 2050

Access

: Drive human progress by providing mobility

and accessibility for all

UN Sustainable Development Goals

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

Ford Integrated Sustainability and Financial Report — page 32

Fundamentals

Sustainability at Ford

Products and Services

Environment

Social

Governance

Sustainability Statement

Data

Appendices

Overview |

Customer Focused Business Segments

| Electric Vehicles, Batteries, and Charging Infrastructure | ICE and Hybrid Vehicles | Technology and Connected Vehicles

Customer Focused

Business Segments

Overview

Aspirations

Climate

Access

Salient Issues

Electric

Vehicle

Transition

UN Sustainable Development Goals

Ford+ is our plan for growth and value

creation in an era of unprecedented change

for our company and our industry. It

enables us to thrive at the intersection of

great vehicles, iconic brands, innovative

software, and high-value services.

Three distinct but interconnected customer focused

business segments — Ford Blue, Ford Model e, and Ford

Pro — are central to unleashing the full potential of the

Ford+ plan. They allow Ford to offer broad choice to

customers across gas, hybrid, and electric vehicles as we

move toward carbon neutrality. The structure is paying

off with increased focus, accountability, disciplined

capital allocation, and the ability to attract talent. It also

gives us the speed and flexibility to adapt to the evolving

needs of our customers.

In addition, the Ford Integrated Services team is creating

and marketing software-enabled customer experiences

across our business segments — further accelerating our

Ford+ transformation and helping us capture new

revenue streams.

FORD BLUE

Ford Blue leverages the strength of ICE and Hybrid

vehicles and strong brands such as Mustang, Bronco,

F-150 and Raptor. Demand is growing for hybrids,

especially trucks. Our hybrid sales are outpacing the

industry; we outperform in trucks with #1 and #2 hybrid-

truck sales in the United States

. We will be introducing

a wave of new products in 2025: a brand-new Expedition

and Lincoln Navigator.

Read More: In Human Rights on p.94

Steel and Aluminum

The First Movers Coalition is a global initiative to

harness purchasing power and supply chains to

create early markets for innovative clean energy

technologies. More than 100 members comprise the

coalition that helps accelerate the adoption of emerging

climate technologies. Ford has pledged to purchase at

least 10% low-carbon aluminum and near-zero steel

by 2030

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 renewable

plastics in new vehicle designs for North America,

Europe, and Türkiye by 2025. Our target for China is 10%.

→

Read More: In Circular Economy and End of Life on p.80

Our

Supplier Code of Conduct

requires Ford suppliers to

use recycled and renewable materials where possible in

packaging. It also mandates that suppliers increase their

use of recycled content and improve the recyclability of

Ford products through material selection and product

design as approved by Ford.

Data 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 and

science in this unprecedented collaboration between

companies in the automotive industry.

As a digital ecosystem and collaborative network,

Catena-X was formed to create uniform standards for

data and information exchange across the automotive

value chain. This includes the calculation of product

carbon footprints and facilitating the exchange of

primary CO

data, a key to understanding embedded

emissions in vehicles and driving reductions.

Cofinity-X is enabling the largest collaborative and open

data network of partners in the automotive ecosystem

while striving to be compliant with Catena-X. In 2023 we

joined with Cofinity-X for the beta phase of testing and

selected partners for a product carbon footprint study

that will collect data up to Tier 4 suppliers. The project

was completed in 2024

→

Read More: In Human Rights on p.94

Ford Integrated Sustainability and Financial Report 2025

132

Ford Integrated Sustainability and Financial Report — page 133

Fundamentals

Sustainability at Ford

Products and Services

Environment

Social

Governance

Sustainability Statement

Data

Appendices

Overview

Supply Chain Management

Ethics and Integrity

Accountable and Inclusive Governance

Government Policy and Engagement

Data Protection, Privacy, and Cybersecurity

Reporting Scope

Transparency, Business Ethics, and Integrity

Overview

UN Sustainable Development Goals

10 REDUCED

INEQUALITIES

11 SUSTAINABLE CITIES

AND COMMUNITIES

We take a rigorous approach to ethics,

integrity, and transparency that extends

beyond compliance. It is fundamental

to our commitment to build a more

sustainable, inclusive, and equitable

transportation future where every person

is free to move and pursue their dreams.

Our values infuse all levels of our company. Acting with

transparency, integrity, and honesty is the basis of the

trust we build with our employees, our customers and

suppliers, our shareholders, and our communities.

Compliance with existing laws, regulations, and policies

underpins our business practice. Clear policies, effective

communication, and engaging training give our

employees the tools they need to do the right thing.

As we move forward, we remain committed to

maintaining state-of-the-art corporate governance

policies and practices and ensuring they are reflective

of current rules and regulations, including U.S.

Department of Justice expectations for corporate

compliance programs.

UPHOLDING THE HIGHEST LEVELS OF INTEGRITY

Our Compliance, Ethics, and Integrity Office provides

appropriate training and communications tools to ensure

that 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, and

retail sales. This is in contrast to the quarterly reporting

typical of others in the automotive industry.

Social media is an increasingly important component

of our outreach to our customers. We use Ford Motor

Company corporate accounts and the Chief Executive

Officer’s social media accounts to share information

and insights on a regular basis.

ADHERING TO OUR CODE OF CONDUCT

Employee Code of Conduct

When it comes to business ethics and integrity it’s

imperative that our employees understand what is

expected of them. It’s also important that our customers,

suppliers, and other stakeholders understand our

standards and hold us accountable to them. Our

reputation as a global leader in corporate ethics and

social responsibility depends on it.

Our Employee

Code of Conduct

covers important topics

including human rights, the environment, privacy, and

lawful business practices — as well as information on

how to report violations. It is available in 11 languages

on our corporate website.

We made minor updates to our Employee Code of

Conduct and Corporate Policies in 2024. This was a

regular refresh of the existing materials and none of

the underlying rules changed. However, we did remove

the Russian translation of the Corporate Policies and

Code of Conduct.

Supplier Code of Conduct

Thousands of companies around the globe make up our

supply chain. As the focus on human rights and climate

change becomes sharper, we are committed to holding

our suppliers to the same high standards we require of

ourselves. Our

Supplier Code of Conduct

, introduced in

2021, formalizes the standards we expect our suppliers

to achieve. Our Supplier Code of Conduct applies to the

company’s Tier 1 suppliers and cascades through the

supply chain to their suppliers. 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 requires our suppliers

to maintain responsible business practices. Suppliers

must protect and respect human rights, protect the

environment, and responsibly source materials. The

Supplier Code of Conduct also mandates that they

conduct business free from bribery and corruption,

maintain effective privacy and cybersecurity practices,

and comply with applicable trade and customs rules.

→

Read More: In Human Rights on p.94

Anti-Bribery and Anti-Corruption

We maintain the highest ethical standards wherever

we operate. As a global company, our facilities must

comply with a wide range of national laws and

governmental enforcement practices with regard to

bribery and corruption, no matter where they are located.

Bribery and corruption are forbidden, even in locations

where they may be tolerated or condoned.

COMPLIANCE TRAINING

Maintaining our high standard of ethical conduct

requires a robust and comprehensive training program.

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 the

content relevant and appropriate.

REPORTING VIOLATIONS

Our compliance program allows people to 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. The SpeakUp site is also available

to external stakeholders at www.speakup.ford.com.

Translated into 12 languages, the site features local

language hotlines, an enhanced anonymous reporting

system, and an improved intake form. When a violation is

reported, a cross-functional 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 supplier

grievances. Available in 19 languages, the external site

enables suppliers to report feedback. Employees of our

suppliers can also provide feedback and file grievances

directly via the Responsible Business Alliance (RBA)

Worker Voice app.

→

Read More: In Human Capital Management and Diversity,

Equity, and Inclusion

on p.115

→

Read More: On our website

Ford Integrated Sustainability and Financial Report 2025

143

Ford Integrated Sustainability and Financial Report — page 144

Fundamentals

Sustainability at Ford

Products and Services

Environment

Social

Governance

Sustainability Statement

Data

Appendices

Overview

Supply Chain Management

Ethics and Integrity

Accountable and Inclusive Governance

Government Policy and Engagement

Data Protection, Privacy, and Cybersecurity

Reporting Scope

Reporting Scope, Boundaries,

and Data Assurance

REPORTING SCOPE AND BOUNDARIES

Consistent with GRI guidance on boundary setting, the

data in this report covers all of Ford Motor Company’s

wholly and majority-owned operations globally, unless

otherwise noted, and spans 2024 operations and

vehicles. Boundaries for each material issue are noted

in our GRI Content Index.

The EU Corporate Sustainability Reporting Directive

(CSRD) requires disclosures against the European

Sustainability Reporting Standards (ESRS). We have

included a Sustainability Statement that includes all of

Ford’s 2024 CSRD compliant disclosures based on our

Double Materiality Assessment.

Where relevant, data measurement techniques, the bases

of 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

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 of

assurance, as outlined below and noted in the data

tables. 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 to

internal and third-party verification.

The consolidated financial statements in our 2024

Form

10-K

Report have been audited by our independent

registered public accounting firm.

The Sustainability Statement has been subject to limited

assurance by PricewaterhouseCoopers LLP, For more

information see the assurance conclusion on page 229.

Ford’s 2024 greenhouse gas inventory (including Scope 1,

Scope 2 and Scope 3 Categories 11 and 15) undergoes

third-party verification 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, GHG emissions for

some manufacturing operations are also third-party

verified, separately from this Sustainability Statement, in

accordance with the local emission trading scheme

regulatory requirements.

Ford Integrated Sustainability and Financial Report 2025

144

Ford Integrated Sustainability and Financial Report — page 145

Fundamentals

Sustainability at Ford

Products and Services

Environment

Social

Governance

Sustainability Statement

Data

Appendices

Sustainability

Statement

146

General Information

167

Environment

202

Social

222

ESRS Index

Ford Integrated Sustainability and Financial Report 2025

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Ford Integrated Sustainability and Financial Report — page 146

Fundamentals

Sustainability at Ford

Products and Services

Environment

Social

Governance

Sustainability Statement

Data

Appendices

General Information

Environment

Social

ESRS Index

Sustainability Statement

General Information

147

Sustainability Reporting Approach

148

Sustainability Governance

151

Sustainability Strategy and Business Model

153

Stakeholder Engagement

156

Double Materiality Assessment

159

Material Impacts, Risks, and Opportunities

162

Policies to Manage Impacts, Risks, and Opportunities

Ford Integrated Sustainability and Financial Report 2025

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Ford Integrated Sustainability and Financial Report — page 147

Fundamentals

Sustainability at Ford

Products and Services

Environment

Social

Governance

Sustainability Statement

Data

Appendices

General Information

Environment

Social

ESRS Index

Sustainability Reporting Approach

SUSTAINABILITY REPORTING APPROACH

The EU Corporate Sustainability Reporting Directive

(CSRD) requires disclosures against the European

Sustainability Reporting Standards (ESRS) for those

topics deemed material in a Double Materiality

Assessment (DMA). We have completed a DMA aligned

with the ESRS expectations and the material matters

identified have been used to determine the disclosure

requirements Ford Motor Company addresses in this

sustainability statement. The ESRS are not mandatory

in 2025 due to CSRD not being adopted into Luxembourg

law by December 31, 2024. Ford is continuing with ESRS

disclosures in this Sustainability Statement on a

voluntary basis.

We have included an ESRS Index on page 222 outlining

all disclosure requirements reported against in this

Sustainability Statement. The information included within

this Sustainability Statement stems from our material

impacts, risks, and opportunities as identified by the

double materiality assessment.

Reporting Boundaries

This is the first year Ford is reporting against the ESRS

and as such there are no changes from previous years

to report or comparative information from previous

years included.

This report has been prepared on a global consolidated

basis for Ford Motor Company and its consolidated

subsidiaries. The scope of consolidation for this

sustainability statement mirrors Ford’s 2024

Form 10-K

Report. No subsidiaries that are included in the annual

financial filing are exempt from this report.

Time horizons in this report are consistent with those

specified in ESRS 1 and those considered in our DMA,

unless otherwise indicated. The three time horizons are

short term (up to 1 year), medium term (up to 5 years),

and long term (5+ years).

Ford is not involved in activities related to fossil fuel,

chemical production, controversial weapons, or the

cultivation and production of tobacco. For this reason

ESRS disclosure requirements related to these industries

are not included in this Sustainability Statement.

Proprietary Information

Some disclosures were omitted from this statement due

to the risk to Ford’s business in disclosing intellectual

property proprietary to the company. This includes:

•

Future capital or operational expenditures by specific

product, project, or technology

•

Targets and metrics for E1 Risk 1: Meeting stringent

emissions and emerging regulatory standards may

require substantial investments

•

Targets and metrics for E1 Risk 2: Failing to comply with

emissions regulations and meet zero emission vehicle

(ZEV) thresholds may result in purchasing credits from

competitors, curtailing vehicle sales, or paying fines

•

Targets for Entity Specific Risk 10, addressed in E1:

Over-investment in electrification and uptake not

occurring at the same scale presents a financial risk

•

Targets for S4 Risk 8 and 9: Ford may incur significant

costs due to product recalls, and poor product quality

could damage Ford’s reputation

•

Actions for Entity Specific Opportunity 1: Connected

vehicles generate significant amounts of data, which

can enhance customer experiences and optimize

vehicle performance

Value Chain

Our DMA and sustainability statement consider Ford’s

own business activities as well as the impacts and

activities from our upstream and downstream value

chain. For information on our value chain, see page 152.

As per the transitional provisions outlined in the ESRS,

certain details regarding our value chain have been

excluded when reliable data was not accessible during

the reporting period. These details are addressed where

relevant within the individual sections of this Statement.

KEY ESTIMATES

We review our use of estimates at least annually and

adjust as necessary. Any modifications to estimates are

accounted for in the reporting period in which they are

revised. For more details on the estimates, judgments,

and assumptions used, refer to the metrics and data

tables within each section of this Statement.

Forward Looking Statements

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 see “Item 1A. Risk

Factors” in Ford’s 2024 Form 10-K Report, as updated by

subsequent Quarterly Reports on Form 10-Q and Current

Reports on Form 8-K, which includes other risk factors

outside the disclosure requirements of the ESRS. This

Sustainability Statement includes all material impacts,

risks, and opportunities identified pursuant to the ESRS.

External assurance

This Sustainability Statement has been subject to limited

assurance by PricewaterhouseCoopers LLP, For more

information see the assurance conclusion on page 229.

REFERENCES USED

References to “business partners” throughout this

Statement and Ford policies referenced refers to partners

and joint ventures of Ford Motor Company. References to

“customers” throughout this statement relate to actual

and potential end users of Ford products and services.

Incorporation by Reference

Throughout the Sustainability Statement we have

referenced Ford’s 2024 Form 10-K Report for some

information. The following disclosures reference this

report:

•

ESRS 2 Revenue

•

EU Taxonomy Eligible Economic Activities and

Minimum Safeguards

•

E1 Transition Plan Investments

Ford Integrated Sustainability and Financial Report 2025

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Ford Integrated Sustainability and Financial Report — page 148

Fundamentals

Sustainability at Ford

Products and Services

Environment

Social

Governance

Sustainability Statement

Data

Appendices

General Information

Environment

Social

ESRS Index

Sustainability Governance

CORPORATE GOVERNANCE

Role of the Administrative, Management, and

Supervisory Bodies

In 2024, Ford expanded its Board of Directors to 15

members with the election of Adriana Cisneros, CEO

of Cisneros Group, as a director. Cisneros serves on the

Board’s Nominating and Governance and Sustainability,

Innovation and Policy Committees.

Our Board includes two executive and 13 non-executive

members. 10 of our directors are independent (about

67%), and our Audit Committee, Compensation, Talent

and Culture Committee, and Nominating and Governance

Committee are fully independent.

The Nominating and Governance Committee considers

numerous qualifications when considering candidates for

the Board. Collectively, our Board possesses a broad set

of skills and experience that is relevant to our business,

long-term strategy, risks, and global activities. The skill

sets include manufacturing, marketing, CEO leadership,

international experience, government experience, risk

management, finance, and technology.

In addition, all of our Board members have experience

in various areas of sustainability and corporate

responsibility. Their experience with environmental

issues and climate change, talent and culture, and social

responsibility initiatives enables us to address key

shareholder concerns regarding sustainability and

corporate responsibility.

Composition of the Board of Directors

Footnote

ESRS Metric

2024

Composition by Gender (percent)

GOV - 1

Men

66.7

Women

33.3

Composition by Gender (number)

GOV - 1

Men

Women

Total

Composition by Underrepresented Minorities

GOV - 1

Underrepresented Minorities (percent)

20.0

Underrepresented Minorities (number)

Executive and Non-Executive Members of Administrative, Management,

and Supervisory Bodies

GOV - 1

Non-Executive members (Men)

Non-Executive members (Women)

Executive members (Men)

Executive members (Women)

Independent Members of Administrative, Management, and Supervisory

Bodies

GOV - 1

Independent members (number)

Non-Independent members (number)

Percentage of Independent members

67 %

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). Demographic and biographical

information is self-reported by Directors upon

onboarding.

Footnotes

For 2024, the Underrepresented Minorities

data includes 2 Hispanic/Latino(a) people

and 1 African American

Non-executive members are considered non-

employee directors

Executive members are considered employee

directors

Ford Integrated Sustainability and Financial Report 2025

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Fundamentals

Sustainability at Ford

Products and Services

Environment

Social

Governance

Sustainability Statement

Data

Appendices

General Information

Environment

Social

ESRS Index

BOARD ROLE AND RESPONSIBILITIES

The Board reviews the Company’s governance practices,

assesses the regulatory and legislative environment,

and adopts the governance practices that best serve

the interests of our shareholders.

The Board is elected by and responsible to Ford’s

shareholders. Ford’s business is conducted by its

employees, managers, and officers, under the direction

of the Chief Executive Officer (CEO) and oversight of the

Board, to enhance the long-term value of the Company

for its shareholders.

The Board of Directors monitors the performance of

the CEO and other members of senior management.

Oversight of Sustainability Impacts, Risks, and

Opportunities

We employ a variety of governance systems and

processes to manage different aspects of sustainability

across our business.

This Sustainability Statement and the broader Integrated

Sustainability and Financial Report has been reviewed

by Ford senior executives, as well as the Sustainability,

Innovation, and Policy Committee and the Audit

Committee of the Board.

The Vice President, Chief Sustainability, Environment and

Safety Officer, called “Chief Sustainability Officer” (CSO)

has primary responsibility for sustainability matters at

the Company. The CSO leads a multi-disciplinary,

executive-level team that oversees actions and targets

in response to our sustainability strategies. as well as

integration and issues related to our

We Are Committed

to Protecting Human Rights and the Environment policy

They also act as the Human Rights Policy Officer for Ford.

The CSO oversees the development of the Integrated

Sustainability and Financial Report and Sustainability

Statement, including process controls, the DMA process,

and resulting material impacts, risks, and opportunities.

They provide updates to the Audit Committee and the

Sustainability, Innovation and Policy Committee of the

Board on reporting progress at least once annually and

follow up as required.

The accompanying limited assurance attestation

performed by PricewaterhouseCoopers LLP has been

reviewed by the Audit Committee of the Board of Directors.

RISK MANAGEMENT AND INTERNAL CONTROLS

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 risk management processes relating

specifically to compliance, 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, etc.)

•

Reporting Risk covers Sarbanes-Oxley compliance,

compliance with U.S. SEC and New York Stock

Exchange (NYSE) rules and regulations, disclosure

controls and procedures, and accounting compliance

•

Operating Risk addresses the numerous matters

related to the operation of a complex company such

as Ford (for example, quality, supply chain, sales and

service, financing and liquidity, product development

and engineering, labor, etc.)

•

Strategic Risk encompasses somewhat broader and

longer-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 through

their commitment to effective top-down and bottom-up

communication (including communication between

senior management and the Board and Committees), and

active cross-functional participation among the Business

Segments and Skill Teams.

We have institutionalized a Forecast, Controls and Risk

Review, and Special Attention Review process where the

senior management 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 the

Board of Directors. Once identified, the top risks are

validated and assigned risk owners who are responsible

to oversee risk assessment, develop and implement

mitigation plans, and provide updates. The Enterprise

Risk Management process also engages Business

Segments and Skill Teams to determine which of the

enterprise risks are most relevant to their specific

objectives and identify any additional risks that may

materially affect the enterprise.

The Audit Committee annually reviews 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 assessment and

approach is up to date with external risk developments

and best practices.

In 2024 the Enterprise Risk Management process occurred

independently from the DMA process done in alignment

with ESRS requirements. The results of the Enterprise

Risk Management process fed into the identification of

potential impacts, risks, and opportunities for consideration

in the DMA, the Enterprise Risk Management team was

included as internal stakeholders in the DMA process.

Board Oversight of Risk

The full Board of Directors has overall responsibility for

the oversight of risk management at Ford and oversees

operating risk management with reviews at each of its

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 in

overseeing compliance and reporting risk, cybersecurity risk,

and the Enterprise Risk Management process itself.

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 in overseeing risks related to

compensation and people-related business strategies,

including leadership succession and culture, diversity,

and inclusion.

The Board and the appropriate committees also review

other policies related to personnel matters, including

those related to sexual harassment and anti-retaliation

policies related to whistleblowers.

Sustainability Governance

— continued

Ford Integrated Sustainability and Financial Report 2025

149

Ford Integrated Sustainability and Financial Report — page 150

Fundamentals

Sustainability at Ford

Products and Services

Environment

Social

Governance

Sustainability Statement

Data

Appendices

General Information

Environment

Social

ESRS Index

The specific responsibilities of each committee are

set forth in their charters, which are available on our

corporate website

Internal Control Process

The Integrated Sustainability and Financial Report and

Sustainability Statement are both subject to internal

control over non-financial reporting.

The Ford internal control process focuses on the

development of accurate and consistent data-collection

processes for both financial and non-financial data.

SUSTAINABILITY-RELATED

PERFORMANCE INCENTIVES

Board members’ remuneration is not assessed against

sustainability or climate-related performance metrics,

targets (including GHG reduction targets), or impacts.

However, six percent of the remuneration for the

Sustainability, Innovation and Policy Committee Chair is

linked to chairing the board body charged with the

oversight of the Company’s development of

sustainability-related policy considerations. Principle

functions of the Sustainability, Innovation and Policy

Committee of the Board include:

•

Discuss and advise management regarding

development of strategies, policies, and practices to

address public sentiment and shape public policy in

the areas of energy consumption, climate change,

emissions, waste disposal, and water use

•

Discuss and advise management on sustainability

strategies that enhance shareholder value and social

wellbeing, including human rights, working conditions,

and responsible sourcing

•

Review global mobility trends to support accessible

personal mobility worldwide

The Board of Directors makes decisions relating to non-

employee director compensation. Any proposed changes

are reviewed and recommended to the Board by the

Nominating and Governance Committee. Directors who

are also Company employees are not separately

compensated for their service on the Board.

STATEMENT ON DUE DILIGENCE

Information on Ford’s due diligence processes are

listed throughout this report. See the table below

for a mapping for this information.

Core elements of due

diligence at Ford

Section in the Sustainability

Statement

Embedding due

diligence in

governance, strategy,

and business model

Oversight of Sustainability

Impacts, Risks and

Opportunities p.149

Sustainability Related

Performance Incentives p.150

Double Materiality

Assessment p.156-158

Engaging affected

stakeholders

Stakeholder Engagement

p.153-155

Identifying and

assessing negative

impacts on people and

the environment

Double Materiality

Assessment p.156-158

Taking action to

address negative

impacts on people and

the environment

Environment p.197-199

Social p.204, 207-212, 215-218

Tracking the

effectiveness of

these efforts

Environment p.197-199

Social p.204, 207-212, 215-218

2025

l Rep

ncia

ina

ilit

ina

ust

Int

150

Sustainability Governance

— continued

Ford Integrated Sustainability and Financial Report — page 151

Fundamentals

Sustainability at Ford

Products and Services

Environment

Social

Governance

Sustainability Statement

Data

Appendices

General Information

Environment

Social

ESRS Index

Sustainability Strategy

and Business Model

Our sustainability strategy is to

make a positive impact on society

and the environment.

Sustainability topics are entwined with our purpose:

To help build a better world where every person is

free to move and pursue their dreams.

OUR BUSINESS

Ford’s vehicle business is divided into three distinct

but interconnected segments — Ford Blue, Ford Model e,

and Ford Pro.

Additionally, the Ford Integrated Services team is

creating and marketing software-enabled customer

experiences across our business segments. The Company

also provides financial services through Ford Motor

Credit Company LLC (“Ford Credit”).

Ford Blue

Ford Blue primarily includes the sale of Ford and Lincoln

ICE and hybrid vehicles, service parts, accessories, and

digital services for retail customers, together with the

associated costs of development, manufacture, and

distribution of the vehicles, parts, accessories, and

services. This segment focuses on developing Ford and

Lincoln ICE and hybrid vehicles. Additionally, this segment

provides hardware engineering and manufacturing

capabilities to Ford Model e and manufactures vehicles

on behalf of Ford Pro and, in certain cases, Ford Model e.

Ford Blue also includes:

•

All sales for markets not presently in scope for Ford

Model e or Ford Pro (as further described below)

•

In markets outside of the United States and Canada,

sales to commercial, government, and rental customers

of ICE and hybrid vehicles not considered core to

Ford Pro

•

Sales of electric vehicles by our unconsolidated

affiliates in China

•

All sales of vehicles manufactured and sold to other

Original Equipment Manufacturers (OEMs)

Ford Model e

Ford Model e primarily includes the sale of our electric

vehicles, service parts, accessories, and digital services

for retail customers, together with the associated costs

of development, manufacture, and distribution of the

vehicles, parts, accessories, and services. This segment

focuses on developing electric vehicle and digital vehicle

technologies, as well as software development.

Additionally, Ford Model e provides software and

connected vehicle technologies on behalf of the

enterprise, and manufactures certain electric vehicles,

including for Ford Pro. Ford Model e operates in North

America, Europe, and China. Ford Model e also includes

electric vehicle and related sales not considered core to

Ford Pro to commercial, government, and rental

customers in Europe, China, and Mexico.

Ford Pro

Ford Pro primarily includes the sale of Ford and Lincoln

vehicles, service parts, accessories, and services for

commercial, government, and rental customers. Included

in this segment are sales of core Ford Pro vehicles, such

as Super Duty and the Transit range of vans in North

America and Europe and sales of Ranger in Europe. In the

United States and Canada, Ford Pro also includes vehicle

sales to commercial, government, and rental customers.

This segment focuses on selling ICE, hybrid, and electric

vehicles, and providing digital and physical services to

optimize and maintain fleets, including telematics and

electric vehicle charging solutions. This segment reflects

external sales of vehicles produced by Ford Blue and

Ford Model e and the costs (including intersegment

markup) associated with acquiring vehicles for sale and

providing services.

Ford Pro operates in North America and Europe.

Revenue

See Note 4 Revenue and Note 25 Segment Information

both in the “Notes to the Financial Statements” of Ford’s

2024

Form 10-K

Report.

BUSINESS MODEL

Our Enablers

Key enablers to Ford’s business include:

•

Human Capital — Our employees, dealers, and

suppliers

•

Social Capital — Our community relations and

engagement, partnerships, and training centers

•

Financial Capital — Our sustainable financing

•

Manufactured Capital — Our manufacturing facilities

and development centers

•

Intellectual Capital — Our services, data, design

process, and research and development

•

Natural Capital — Our energy, water, and material usage

Our Impact

Ford’s business has the potential to impact employees,

customers, investors, suppliers, communities, and

the planet.

Our sustainability strategies and the actions outlined

throughout this statement address our material potential

and actual impacts as well as potential risks and

opportunities.

OUR SUSTAINABILITY STRATEGIES

We have developed these strategies to work towards

achieving our Sustainability Aspirations and address our

material impacts, risks and opportunities as defined in

our Double Materiality Assessment.

Climate Change Strategy

To achieve our carbon neutrality aspiration, we are

focusing on three areas of our business that account for

approximately 95% of our carbon dioxide emissions —

our vehicles, our operations, and our supply chain. Ford’s

investment in electric vehicles is a core element of our

climate change strategy, addressing our largest

emissions source, vehicle use.

Energy Strategy

We are committed to sourcing 100% carbon-free electricity

for our global manufacturing operations by 2035 through

a mix of renewable and, in some cases, nuclear sources

We are using our purchasing power to invest in renewable

electricity, including in southeast Michigan.

Sustainable Materials Strategy

Using recycled and renewable materials helps reduce

waste and lower need for new materials. We aspire

to use only recycled or renewable content in vehicle

plastics. Our strategy is to use 20% recycled and

renewable content in our vehicle plastics for new vehicle

designs for North America, Europe, and Türkiye starting

in 2025, and 10% in China, also starting in 2025.

Water Strategy

Ford aspires to make zero water withdrawals for

manufacturing processes in order to support freshwater

availability in local communities.

Ford Integrated Sustainability and Financial Report 2025

151

Ford Integrated Sustainability and Financial Report — page 152

Fundamentals

Sustainability at Ford

Products and Services

Environment

Social

Governance

Sustainability Statement

Data

Appendices

General Information

Environment

Social

ESRS Index

Human Rights Strategy

Ford is committed to respecting human rights, including

the right to clean air and clean water, across our business

and value chain. This commitment guides our decision-

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-of-life of these

products. Our goal is to ensure that everything we do,

or that others do for us, meets or exceeds the minimum

regulatory requirements.

Inclusion Strategy

We remain committed to a respectful, safe, and inclusive

workplace for everyone at Ford. The foundation of our

strategy is respect, empathy, and listening to each other.

This approach helps to ensure that voices are heard

and inclusion, which requires action and commitment,

is always top of mind. All of these principles are

embedded in Ford OS behaviors. We think of diversity

in the broadest sense — it’s about sharing our similarities

and respectfully discussing our differences.

OUR VALUE CHAIN

Ford has an extensive value chain, including close to

1,600 Tier 1 suppliers and even more Tier 2+ suppliers

upstream, and over 8,000 dealers and countless

customers and global communities downstream. Tier 1

suppliers are production suppliers that have a direct

contractual agreement with Ford, while Tier 2+ suppliers

do not have a direct contract with Ford.

Our Workforce

Footnote

2024

Employment Data

United States

87,000

Rest of World

78,000

Company Excluding Ford Credit

165,000

Ford Credit

6,000

Total company

171,000

Methodology and Assumptions

The approximate number of individuals employed by us and entities that we consolidated as of

December 31 (in thousands)

Footnotes

Workforce data is reported as Full-Time Equivalent (FTE) and includes consolidated joint ventures

in Ford’s 2024

Form 10-K

Report

VALUE CHAIN MAP

SUPPLY

CHAIN

Mining and

Processors

Fabricating

Parts

FORD

Vehicle

Assembly

Packing &

Transport

DEALERS

AND

CUSTOMERS

Vehicle Use

& Maintenance

END-OF-LIFE

Waste

Management

Sustainability Strategy and Business Model

— continued

Ford Integrated Sustainability and Financial Report 2025

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Ford Integrated Sustainability and Financial Report — page 153

Fundamentals

Sustainability at Ford

Products and Services

Environment

Social

Governance

Sustainability Statement

Data

Appendices

General Information

Environment

Social

ESRS Index

Stakeholder Engagement

Ford is committed to direct, open,

transparent, and frequent engagement

with our stakeholders.

Throughout each year, management meets with

institutional 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. These meetings are informative

and, where appropriate, we incorporate stakeholder

suggestions into our policy and strategic considerations,

Proxy Statement

, and communications strategy. As needed,

stakeholder feedback and insights are also shared with

executive leadership and discussed with the Sustainability,

Innovation, and Policy Committee, who is responsible for

advising on strategies in the sustainability space.

BLUE TABLE FORUM

We established the Blue Table Forum in 2022. This

stakeholder advocacy program is focused on creating

and building a trusted community of organizational and

institutional stakeholders from a diverse group of non-

governmental organizations (NGOs), nonprofits, and

academic 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.

Ford has also partnered with members of the Blue Table

Forum to advocate for shared policy positions on GHG

emissions and fuel economy standards, clean and low-

carbon aluminum, electric vehicle charging infrastructure,

and more.

Key Stakeholders

Stakeholder

Importance

How we engage

Communities

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 understand

the community sentiment.

Through our philanthropic arm, Ford Philanthropy, we’ve been giving back and helping

build strong communities for more than 75 years. Ford Philanthropy partners with

nonprofits in communities around the world where Ford has roots, co-creating and investing

in local programs that build equity and expand access to essential services and education

for the future of work. Whether we’re connecting people with fresh food through innovative

mobility solutions, helping communities rebuild after disasters, or training students for jobs

as auto technicians, we harness Ford’s scale, resources, and expertise to amplify our impact.

By engaging with our communities, we can help people

in need and understand what our customers and

neighbors want.

•

Neighborhood Advisory Councils

•

Interactions with governments and regulators

•

Membership associations

•

Dialogue with NGOs

•

Government relations — supporting policy that benefits our communities

•

Partnerships with community leaders, grassroots and nonprofit organizations,

and local Ford dealers

•

Employee volunteerism, grantmaking, and philanthropic initiatives through

Ford Philanthropy

•

Participation in and sponsorship of community events

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Ford Integrated Sustainability and Financial Report — page 154

Stakeholder

Importance

How we engage

Customers

We work with our dealers to create a better purchase and ownership experience for our

customers that helps build trust and satisfaction.

Customers engage with the company face-to-face in our dealerships, over the phone, on

our websites and social media, at our contact centers, and inside our vehicles. We use our

internal customer experience measurement platform and market research to listen and

respond to customer feedback. This increases our understanding of their needs, concerns,

and preferences, and provides insights to our dealers and touchpoint owners.

Without customers, Ford would not exist. It’s vital that

we do everything we can to nurture these relationships

and provide the products and services they want, need,

and 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 our

customers come in contact with. We rely on their expertise and dedication, engaging

and collaborating through Dealer Councils and roundtables, as well as the creation of

advertising and public service announcements. The Dealer Attitude Survey provides us

with useful information and insights. Our annual Salute to Dealers awards recognizes

dealer excellence.

Dealers are a direct link between our products and

services and our customers. An essential part of Ford,

dealers may be the only connection customers have

with the Company.

•

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

Employees

To maintain contact with our employees around the world, we use tools and opportunities

including our intranet platform, social media sites, facilities visits, 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 Office in collaboration with our Employee Resource Groups (ERGs) also

help foster a culture of inclusion.

Ford employees run the organization at every level.

We rely on their strength, commitment, and dedication

to the company.

•

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

•

ERGs

•

Test drive and vehicle reveal events

•

Ford Volunteer Corps

Fundamentals

Sustainability at Ford

Products and Services

Environment

Social

Governance

Sustainability Statement

Data

Appendices

General Information

Environment

Social

ESRS Index

154

Stakeholder Engagement

— continued

Ford Integrated Sustainability and Financial Report 2025

Ford Integrated Sustainability and Financial Report — page 155

Stakeholder

Importance

How we engage

Shareholders and Sell-side Analysts

We value transparent and timely communications and ongoing engagement with our

institutional and individual investors — our shareholders. To believe that Ford will continue

to succeed financially, shareholders also tend to rely on the opinions and research done by

sell-side analysts who study the company in great detail. To make sure we communicate

effectively with all our 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 filing), and quarterly earnings releases. These published

documents, available on our shareholder website, provide vital information on the company

that supplement our annual shareholder meetings, investor conferences, investor day

events, and annual ESG roadshow as well as regular calls, meetings, and emails.

Shareholders, including institutional investors, and

the financial analysts who influence them, are

instrumental in providing capital to maintain and grow

our business. And since they are profit oriented, they

insist that capital is invested efficiently and funds are

managed properly.

•

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 needed to produce vehicles. We rely on suppliers and their workers from all

over the world and maintain stringent standards and rules to make sure our products are

of the highest quality. In addition to holding 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. We also share best practices related to ethical recruitment, and the avoidance

of forced and child labor. To strengthen these initiatives and relationships, we are also

supporters and members of a wide range of external supplier organizations, coalitions,

and associations.

Suppliers play a critical role throughout the product life

cycle, from sourcing raw materials to helping ramp up

production, thereby making a significant contribution

to our value, growth, and development.

•

Supplier Code of Conduct

•

Global Terms and Conditions

•

Supplier Engagement webinars with leadership team

•

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 Assurance,

Responsible Minerals Initiative, and Responsible Business Alliance

•

Drive Sustainability, Sustainability Assessment Questionnaires

•

Responsible Business Alliance Worker Voice Platform

Fundamentals

Sustainability at Ford

Products and Services

Environment

Social

Governance

Sustainability Statement

Data

Appendices

General Information

Environment

Social

ESRS Index

Stakeholder Engagement

— continued

Ford Integrated Sustainability and Financial Report 2025

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Ford Integrated Sustainability and Financial Report — page 156

Fundamentals

Sustainability at Ford

Products and Services

Environment

Social

Governance

Sustainability Statement

Data

Appendices

General Information

Environment

Social

ESRS Index

Double Materiality Assessment

We have performed a Double Materiality

Assessment in accordance with the European

Sustainability Reporting Standards.

INTRODUCTION TO THE DOUBLE

MATERIALITY ASSESSMENT

We have conducted a DMA to determine the material

matters to be reported on in this Sustainability

Statement, aligned with CSRD and related ESRS

disclosure requirements.

This was Ford’s first year completing a full Double

Materiality Assessment, and as such the results cannot

be compared to materiality assessments completed in

prior years using other methodologies.

Double materiality consists of two dimensions:

Impact materiality

: Identifies material issues from

the perspective of the impact Ford has or could have

on the environment and society.

Financial materiality

: Identifies risks and opportunities

that materially influence or may be expected to materiality

influence Ford’s financial position and performance.

Our methodology assessed the significance of potential

material topics at an impact, risk, and opportunity (IRO)

level, scoring each IRO individually to inform the overall

topic-level score. An ESG topic can be material from an

impact materiality perspective, a financial materiality

perspective, or both.

Ford Process

Phase

Evaluating Ford’s

business context

Phase

Identification of

potentially significant

topics and IROs

Phase

Assessment of IROs

and prioritization of

material topics

Phase

Validation

of results

FORD PROCESS

1. Evaluating Ford’s Business Context

This assessment reviewed sustainability topics in the

context of Ford’s own activities, business relationships,

and key activities along the value chain. We defined our

upstream and downstream value chain for consideration

throughout the assessment. See Our Value Chain on

page 152 for more information.

We also mapped our key stakeholder groups by

considering the stakeholders potentially affected along

our value chain and the users of our sustainability

statements.

2. Identification of Potentially Significant IROs

We created a long list of sustainability matters and

related IROs, comparing these with the full list of ESRS

topics, sub-topics, and sub-sub topics for completeness.

Some IROs are entity-specific and not aligned with

specific ESRS topics.

Consistent with ESRS requirements, we focused on areas

within our operations and value chain where IROs were

deemed likely to arise based on the nature of our

activities, business relationships, geographies, and other

relevant factors.

When identifying IROs related to business conduct

matters, we considered our global transactions with

suppliers, regulators, and employees, with additional

focus around activities related to anti-corruption laws,

political engagements, conflict minerals, supplier

relationships, and protection of whistleblowers.

The identification of IROs was performed through desk

research, using internal documentation, external reports

and frameworks, as well as stakeholder insights and

expert judgement.

Stakeholder Engagement

We engaged with internal and external stakeholders

and Ford subject matter experts to support us in both

identifying relevant IROs and determining impact and

financial materiality. Internal subject matter experts were

engaged through topic-specific focus groups. A global

survey was also available to Ford employees to

understand their perspectives as an affected stakeholder.

External stakeholders, including key suppliers, non-

governmental organizations, investors, and Ford dealers,

were engaged through online surveys.

While we did not directly consult with all affected

stakeholder groups (most notably local communities),

we considered proxy insights from expert advocacy

organizations and our community engagement

colleagues. Their ongoing engagement with Ford

communities provides insight into the interests and

views of these stakeholders.

Similarly, we did not screen all individual site locations

for potential or actual impacts, but relied on the

expertise of Ford employees and subject matter experts

that engage with global site locations on environmental

and social issues.

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Ford Integrated Sustainability and Financial Report — page 157

Fundamentals

Sustainability at Ford

Products and Services

Environment

Social

Governance

Sustainability Statement

Data

Appendices

General Information

Environment

Social

ESRS Index

3. Assess Impacts, Risks, and Opportunities

To determine materiality, each IRO was assessed and

scored using a defined and consistent methodology.

Potential IROs were scored according to three time

horizons: short-term (covering the reporting year),

medium-term (up to five years), and long-term (more

than five years).

The assessment incorporated the inherent design and

attributes of our operations, including existing actions,

when evaluating the materiality of impacts, risks, and

opportunities.

Impacts

: We scored the severity of impacts using three

parameters:

•

Scale assesses the impact’s extent on the environment

or people

•

Scope evaluates the impact’s reach, such as the

percentage of sites or employees affected

•

Irremediable character assesses the difficulty of

reversing the damage, considering factors such as cost

and time

For negative actual impacts, each of the three

dimensions were scored and weighted equally for

severity. Positive actual impacts were scored by scale and

scope. For potential impacts, an additional parameter of

likelihood was also scored.

Whenever a potential negative human rights impact

was identified, we carefully considered the ESRS

guidance for the severity of the impact to take

precedence over its likelihood. For impacts scoring as

material or close to the materiality threshold, we

followed ESRS guidance and prioritized severity over

likelihood to inform the final score.

Financial Risks and Opportunities

: Potential risks and

opportunities were assessed and scored using the below

parameters:

•

Magnitude of financial effects, including qualitative

items beyond those recognized in financial statements,

such as operational, human capital, reputation, and

market position, that could affect our business.

•

Likelihood of the occurrence

The outcomes of the IRO assessment were consolidated

into topic clusters, forming Ford’s DMA and determining

the material topics to form the basis of our ESRS

disclosure.

Determination of Material Topics

Ford defined a materiality threshold for the purpose of

prioritizing material IROs from those that are non-

material. IROs that exceeded this threshold for one of the

two materiality perspectives were considered material.

In consultation with Ford’s global sustainability, risk,

finance, and internal control colleagues, the threshold

was set at “significant” and above. The thresholds set

as part of the DMA are not static, and may be subject to

periodic review and adjustment.

4. Validation

To validate the outcome of DMA, we engaged with key

internal subject matter experts, asking them to validate

our identified material IROs. They reviewed our approach

and assessed the scoring associated with both impact

and financial materiality.

RESULTS REVIEW

All IROs, their scoring, and the rationale for the scoring

was reviewed with subject matter experts at the

Company. The final list of material IROs was reviewed by

the CSO and Chief Accounting Officer before being

shared with the Audit Committee and Sustainability,

Innovation and Policy Committee of the Board.

The results of this assessment will be reviewed and

updated as needed in the 2025 calendar year for

reporting in 2026.

MATERIAL TOPICS

Our material topics are presented in the visual on the

following page, while the material IROs are presented

in tables found on pages 159-161.

Actions Against Material Topics

After material IROs are identified the subject matter

experts are responsible to socialize these within their

organization and determine how to address the IRO with

new or existing policies, actions, and targets. If updates

to existing strategies or processes are required the

responsible subject matter expert is responsible to work

with their team to develop these.

For further detail on each material topic and IRO,

see the topic-specific sections throughout this

Sustainability Statement.

A resilience analysis was conducted only on climate-

related impacts, risks and opportunities. Results of this

analysis can be found within the E1 disclosures.

There have been no changes to Ford’s overall strategy

or business model as a result of the 2024 DMA.

INVESTMENT IN MATERIAL TOPICS

These topics were deemed material in our DMA and

scored significant because they involved multiple

regions, sources of capital and/or had long term effects

(more than five years).

Ford regularly reports engineering, research, and

development cost, which was reported at $8.0 billion in

2024. This cost is included in operating expenditure and

can be found in Note 2 Summary of Significant

Accounting Policies in the “Notes to the Financial

Statements” of Ford’s 2024

Form 10-K

Report. Ford also

regularly reports capital spending, which was $8.7 billion

in 2024, and is detailed in Note 25 Segment Information

in the “Notes to the Financial Statements” of Ford’s 2024

Form 10-K Report.

This reflects a continued commitment to our plan, which

is underpinned by resources of over $28 billion in cash

and nearly $47 billion in total liquidity at the end of 2024,

as disclosed in Item 7. Management’s Discussion and

Analysis of Financial Condition and Results of Operations

– Liquidity and Capital Resources of Ford’s 2024 Form 10-

K Report.

Since the auto industry is highly competitive, we cannot

provide a comprehensive planned spending by specific

product, project, or technology. However, we did disclose

in Note 25 Segment Information in the “Notes to the

Financial Statements” of our 2024 Form 10-K Report that

our 2024 capital spending on electric vehicles was $4.7

billion, up $0.9 billion vs prior year.

Beyond this investment, there are no measurable current

financial effects related to our material topics.

Double Materiality Assessment

— continued

Ford Integrated Sustainability and Financial Report 2025

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Ford Integrated Sustainability and Financial Report — page 158

Fundamentals

Sustainability at Ford

Products and Services

Environment

Social

Governance

Sustainability Statement

Data

Appendices

General Information

Environment

Social

ESRS Index

NON-MATERIAL TOPICS

Two topics were deemed to be not material during

this assessment: Biodiversity and Ecosystems and

Business Conduct.

A lack of known or historical issues led to low scope

and magnitude scores for impacts and risks related

to Biodiversity and Ecosystems, resulting in no

material scores.

Ford has limited manufacturing sites located near

biodiversity-sensitive areas as shown in our 2024

biodiversity risk assessment utilizing the World Wildlife

Fund (WWF) online tool. Our initial review of these sites

does not indicate that Ford’s activities deteriorate natural

habitats, disturb protected species, or require biodiversity

mitigation measures to be implemented.

Ford’s strong existing Code of Conduct, global policies,

governance principles, and the underlying activities

and controls that embed these into our business led

to low likelihood scores for identified impacts and risks

related to Business Conduct, ultimately resulting in

no material scores.

Both topics, as well as many sub-topics deemed

not material, remain important to Ford and related

information can be found voluntarily reported in the

main Integrated Sustainability and Financial Report.

Impact Materiality

Financial Materiality

Reporting

threshold

Critical

Significant

Important

Significant

Critical

Topic / Sub-Topic

Climate Change (E1)

Personal Safety — Consumers

and End Users (S4)

Vehicle/Product Development

(ES*)

Child & Forced Labor —

Workers in the Value Chain (S2)

Pollution (E2)

Water and Marine Resources (E3)

Resource Use and Circular

Economy (E5)

Secure Employment —

Own Workforce (S1)

Working Conditions & Labor Rights

— Workers in the Value Chain (S2)

Affected Communities (S3)

Working Conditions & Labor

Rights — Own Workforce (S1)

Diversity — Own Workforce (S1)

Biodiversity and

Ecosystems (E4)

Business Conduct (G1)

*Entity-specific topic for Ford

Double Materiality Assessment

— continued

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Ford Integrated Sustainability and Financial Report — page 159

Fundamentals

Sustainability at Ford

Products and Services

Environment

Social

Governance

Sustainability Statement

Data

Appendices

General Information

Environment

Social

ESRS Index

Material Impacts, Risks,

and Opportunities

Impacts

(Ordered by ESRS topic and Sustainability Statement order of appearance)

Key

Upstream

Own Operations

Downstream

Short-term

Medium-term

Long-term

Serial #

Material impact

ESRS

Topic

Sub-topic

Positive/

Negative

Actual/

Potential

Value

Chain

Affected

Stakeholders

Time

Horizon

I-1

The combustion of fossil fuels in ICE vehicles produces GHGs contributing to

Ford’s Scope 3 emissions

Climate Change

Climate change

mitigation

Negative

Actual

All

I-2

Raw material extraction, processing, and assembly are energy intensive

processes contributing to Ford’s Scope 3 emissions

Climate Change

Energy

Negative

Actual

All

I-3

The use of energy at Ford’s consolidated manufacturing and non-

manufacturing facilities contribute to Ford’s Scope 1 and 2 emissions along

with Scope 3 category 15 for unconsolidated investee manufacturing facilities

Climate Change

Energy

Negative

Actual

All

I-4

Inbound and outbound transportation and logistics contribute to Ford’s

Scope 1 and 3 emissions

Climate Change

Climate change

mitigation

Negative

Actual

All

I-5

Internal combustion engine (ICE) vehicles emit hydrocarbons, carbon

monoxide, nitrogen oxides, volatile organic compounds (VOCs), and

particulate matter during combustion affecting air quality

Pollution

Pollution of air

Negative

Actual

All

I-6

Waste from mining may pollute local water resources

Pollution

Pollution of water

Negative

Actual

Nature; Local

communities;

Indigenous

communities

I-7

Critical minerals mining requires significant water use which may impact

limited freshwater supplies

Water and Marine

Resources

Water

Negative

Actual

Local communities;

Indigenous

communities

I-8

Heavy reliance on a range of natural resources may contribute to resource

depletion and associated impacts

Resource Use and

Circular Economy

Resource inflows,

including resource

use

Negative

Actual

Nature

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Ford Integrated Sustainability and Financial Report — page 160

Serial #

Material impact

ESRS

Topic

Sub-topic

Positive/

Negative

Actual/

Potential

Value

Chain

Affected

Stakeholders

Time

Horizon

I-9

The transition to electrified vehicles will require different skills and

qualifications in our workforce

Own Workforce

Working

conditions

Negative

Potential

Employees

I-10

Mined materials are associated with higher risks of child labor

Workers in the

Value Chain

Other work-related

rights

Negative

Actual

Workers in the

supply chain

I-11

Suppliers may be complicit of exploitative and forced labor

Workers in the

Value Chain

Other work-related

rights

Negative

Actual

Workers in the

supply chain

I-12

Employees within the value chain in hazardous working conditions may

be at risk of injury and even death without proper protection or mitigation

Workers in the

Value Chain

Working

conditions

Negative

Potential

Workers in the

supply chain

All

I-13

Activities such as mining and smelting negatively impact biodiversity,

ecosystem health, and local communities

Affected

Communities

Communities’

economic, social,

and cultural rights

Negative

Actual

Local communities

Fundamentals

Sustainability at Ford

Products and Services

Environment

Social

Governance

Sustainability Statement

Data

Appendices

General Information

Environment

Social

ESRS Index

Material Impacts, Risks, and Opportunities

— continued

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Fundamentals

Sustainability at Ford

Products and Services

Environment

Social

Governance

Sustainability Statement

Data

Appendices

General Information

Environment

Social

ESRS Index

Risks

(Ordered by ESRS topic and Sustainability Statement order of appearance)

Serial #

Material Risk

ESRS

Topic

Sub-topic

Value Chain

Time

Horizon

R-1

Meeting stringent emissions and emerging regulatory standards may require substantial investments

Climate Change

Climate change

mitigation

All

R-2

Failing to comply with emissions regulations and meet ZEV thresholds may result in purchasing credits from competitors,

curtailing vehicle sales, or paying fines.

Climate Change

Climate change

mitigation

All

R-3

Heightened occurrences of extreme weather events can disrupt Ford’s direct operations

Climate Change

Climate change

adaptation

All

R-4

Heightened occurrences of extreme weather events can disrupt Ford’s supply chain

Climate Change

Climate change

adaptation

All

R-5

Worker/union partner dissatisfaction and conflicts could potentially result in higher costs, less operational flexibility and

operational disruption

Own Workforce

Working

conditions

All

R-6

As the legal environment continues to evolve, Diversity, Equity, and Inclusion efforts in the U.S. are under public scrutiny

Own Workforce

Equal treatment

and opportunities

for all

R-7

Non-compliance with regulations prohibiting forced labor could result in immediate product withdrawal and disposal,

substantial financial costs, and a loss of sales

Workers in the

Value Chain

Other work-related

rights

All

R-8

Ford may incur significant costs due to product recalls

Consumers and

End Users

Personal safety

R-9

Poor product quality could damage Ford’s reputation

Consumers and

End-Users

Personal safety

R-10

Over-investment in electrification and uptake not occurring at the same scale presents a financial risk

Entity Specific

(reporting in E1)

Opportunities

Serial #

Material Opportunity

ESRS

Topic

Sub-topic

Value Chain

Time

Horizon

O-1

Connected vehicles generate significant amounts of data, which can enhance customer experiences and optimize

vehicle performance

Entity Specific

Climate change

mitigation

All

Material Impacts, Risks, and Opportunities

— continued

2025

l Rep

ncia

ina

ilit

ina

ust

Int

161

Ford Integrated Sustainability and Financial Report — page 162

Fundamentals

Sustainability at Ford

Products and Services

Environment

Social

Governance

Sustainability Statement

Data

Appendices

General Information

Environment

Social

ESRS Index

Policies to Manage Impacts,

Risks, and Opportunities

Policies to Manage Material Impacts, Risks, and Opportunities

Policy and Description

Related Impacts, Risks,

and Opportunities

Scope

Senior Level Accountable for

Implementation and Process

for Monitoring

Third-party Standards Included

in Policy

Stakeholder

Consideration

Code of Conduct

The

Code of Conduct

helps show what our

values look like in action. It provides high-level

guidance, including in areas that can carry

ethical and legal risk.

Impacts

: All material

impacts

Risks

: All material risks

Opportunities

: All material

opportunities

From the Code:

“Everyone at Ford is accountable for

following the Code — including colleagues,

contractors, People Leaders, senior

management, and the Board of Directors.

We also want to work with businesses and

people that hold themselves to similar

standards and share similar values.”

Chief Compliance Officer

Ford’s Code of Conduct and

Corporate Policies are reviewed at

least every other year to ensure

the content is updated to reflect

regulatory and/or business

environment changes.

From the Code:

“As the Ford Team we do our part to

minimize the impact on climate change

aligned with the United Nations

Framework Convention on Climate

Change (Paris Agreement), striving towards

carbon neutrality”

The Code of Conduct is

publicly available at

corporate.ford.com

We are Committed to Protecting Human

Rights and the Environment

This policy outlines the commitment of Ford

Motor Company to uphold human rights and

environmental standards throughout the life

cycle of its products and services. Its objective

is to foster responsible business practices

that enhance community wellbeing and

environmental sustainability while adhering

to international human rights standards.

Impacts

: Climate Change

(I-1, I-2, I-3, I-4), Pollution

(I-5, I-6), Water (I-7),

Resource Use and Circular

Economy (I-8), Affected

Communities (I-13)

Risks

: Climate Change (R-1,

R-2), Own Workforce (R-5)

Opportunities

: N/A

From the policy:

“This policy applies to all personnel who

work at Ford. This includes all regular,

part-time, supplemental, and temporary

employees, agency resources, on-site

Purchased Service resources, and

independent contractors while they are

performing services for Ford. This policy

also applies to hourly workers to the extent

allowed, authorized, or agreed to in the

applicable collective bargaining agreement.”

“We explicitly require our suppliers and

expect partners and joint ventures (referred

to as ‘business partners’ in this policy) to

adopt and enforce similar policies and

extend them to their own supply chain.”

Organizational Leader of

Environmental and Safety

Compliance

Ford’s Corporate Policies are

reviewed at least every other year

to ensure the content is updated

to reflect regulatory and/or

business environment changes.

Our Chief Executive Officer

approves, and the Sustainability,

Innovation and Policy Committee

of the Board of Directors provides

oversight of this policy.

•

United Nations (UN) Guiding Principles

on Business and Human Rights

•

UN Global Compact

•

UN Sustainable Development Goals

•

UN Framework Convention on Climate

Change (Paris Climate Agreement)

•

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 and Development (OECD)

Guidelines for Multinational Enterprises

Revision 2011

•

UN Women’s Empowerment Principles

•

UN Declaration on the Rights of

Indigenous Peoples (UNDRIP)

Our internal and external

stakeholders review and

provide feedback.

We provide supplier

trainings and notify

suppliers when the policy

is updated.

This policy is publicly

available at

sustainability.ford.com

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Ford Integrated Sustainability and Financial Report — page 163

Policy and Description

Related Impacts, Risks,

and Opportunities

Scope

Senior Level Accountable for

Implementation and Process

for Monitoring

Third-party Standards Included

in Policy

Stakeholder

Consideration

We are Committed to the Goal

of Equal Opportunity

This policy defines Ford’s commitment to equal

opportunity, non-discrimination, and provision

of reporting channels for employees to report

any suspected violations.

Impacts

: N/A

Risks

: Own Workforce (R-6)

Opportunity

: N/A

From the policy:

“This policy applies to all personnel who

work at Ford. This includes all regular,

part-time, supplemental, and temporary

employees, agency resources, on-site

Purchase Service resources, and

independent contractors while they are

performing services for Ford. This policy

also applies to hourly workers to the

extent allowed, authorized, or agreed

to in the applicable collective bargaining

agreement.”

Additionally, Ford’s subsidiaries are

expected to adopt this policy or similar

compliance policies that align with Ford’s

principles and values.

Organizational Leader

of Human Resources

Ford’s Corporate Policies are

reviewed at least every other year

to ensure the content is updated

to reflect regulatory and/or

business environment changes.

Not applicable

This is an internal

Ford policy.

We are Committed to Speaking Up

and Eliminating Retaliation

This internal policy defines the process on

how to report potential or suspected violations

of the

Code of Conduct

, company policies,

or the law.

Impacts

: N/A

Risks

: N/A

Opportunity

: N/A

This policy is included in S1:

Own Workforce disclosures

not related to any specific

IRO.

From the policy:

“This policy applies to all personnel who

work at Ford. This includes all regular,

part-time, supplemental, and temporary

employees, agency resources, on-site

Purchase Service resources, and

independent contractors while they are

performing services for Ford. This policy

also applies to hourly workers to the

extent allowed, authorized, or agreed to

in the applicable collective bargaining

agreement.”

Additionally, Ford’s subsidiaries are

expected to adopt this policy or similar

compliance policies that align with Ford’s

principles and values.

Organizational Leader

of Compliance

Ford’s Corporate Policies are

reviewed at least every other year

to ensure the content is updated

to reflect regulatory and/or

business environment changes.

Not applicable

This is an internal

Ford policy.

Fundamentals

Sustainability at Ford

Products and Services

Environment

Social

Governance

Sustainability Statement

Data

Appendices

General Information

Environment

Social

ESRS Index

Policies to Manage Material Impacts,

Risks, and Opportunities

— continued

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Ford Integrated Sustainability and Financial Report — page 164

Policy and Description

Related Impacts, Risks,

and Opportunities

Scope

Senior Level Accountable for

Implementation and Process

for Monitoring

Third-party Standards Included

in Policy

Stakeholder

Consideration

Global Heat Stress Program

This internally available policy is designed

to protect employee health during periods of

elevated temperatures. This program utilizes

engineering controls like fans and ventilation,

administrative measures such as hydration and

adjusted work schedules, and personal

protective equipment.

Impacts

: N/A

Risks

: Climate Change (R-3)

Opportunity

: N/A

This standard applies to activities in all

Ford facilities where risk of heat illness

exists because of environmental

conditions, hot processes, and/or employee

metabolic heat load.

Global Occupational Health

Services Director

This policy is assessed every three

years to determine the need for

change.

The program leverages external guidance,

referencing the ACGIH’s Threshold Limit

Value (TLV) for Heat Stress and adhering

to relevant local regulations.

This is an internal

Ford policy.

Emergency Response Plans

This internally available policies address

responses to severe weather events and other

emergencies to support business continuity at

our facilities.

Impacts

: N/A

Risks

: Climate Change (R-3)

Opportunity

: N/A

These requirements apply to all Company

owned and leased facilities including

subsidiaries of Ford Motor Company.

Where NFPA, Local, State or Federal or

National codes are more stringent than

these standards, or other Company

standards referenced here, the more

stringent requirements shall be followed.

Ford Corporate Fire Protection

Engineering, Corporate Security

and Fire

This policy is monitored through

several methods, including needs

assessments every three years,

or whenever there is a change in

process at the site, or when the

community response agency has

a change in operational response.

Furthermore, immediately after

any incident, training, or drill a

post incident analysis form shall

be completed.

Ford’s emergency response plans

reference several National Fire Protection

Association (NFPA) standards, specifically:

•

NFPA 472 (“Standard for Competence of

Responders to Hazardous Materials/

Weapons of Mass Destruction Incidents”)

•

NFPA 600 (“Industrial Fire Brigades”)

•

NFPA 601 (“Security Services in Fire

Loss Prevention”)

•

NFPA 1001 (“Standard for Fire Fighter

Professional Qualifications”)

•

NFPA 1403 (“Live Fire Training

Evolutions”)

•

NFPA 1600 (“Standard on Disaster/

Emergency Management and Business

Continuity Programs”)

•

NFPA 1620 (“Pre-Incident Planning”)

•

OSHA 1910 Subpart E (“Exit Routes and

Emergency Planning”)

Our policies emphasize

partnerships with local fire

departments and other

responding agencies,

including joint training

and pre-incident planning.

This is an internal

Ford policy.

Fundamentals

Sustainability at Ford

Products and Services

Environment

Social

Governance

Sustainability Statement

Data

Appendices

General Information

Environment

Social

ESRS Index

Policies to Manage Material Impacts,

Risks, and Opportunities

— continued

Ford Integrated Sustainability and Financial Report 2025

164

Ford Integrated Sustainability and Financial Report — page 165

Policy and Description

Related Impacts, Risks,

and Opportunities

Scope

Senior Level Accountable for

Implementation and Process

for Monitoring

Third-party Standards Included

in Policy

Stakeholder

Consideration

Supplier Code of Conduct

Ford’s

Supplier Code of Conduct

(“Supplier

Code”) outlines Ford’s requirements and

expectations for supplier relationships in areas

related to human rights, the environment,

responsible materials sourcing, responsible and

lawful business practices, and the associated

implementation of these principles.

Impacts

: Climate Change

(I-2), Pollution (I-6), Water

Resources (I-7), Resource

Use and Circular Economy

(I-8), Workers in the Value

Chain (I-10, I-11, I-12), and

Affected Communities (I-13)

Risks

: Climate Change (R-4),

and Workers in the Value

Chain (R-7)

Opportunity

: N/A

From the Supplier Code:

“This Code applies to each member of

Ford’s supplier community. While we

explicitly require suppliers to follow all

applicable Ford policies and to comply

with or exceed all applicable current and

impending laws and regulations, our

Code also aligns with widely accepted

international human rights frameworks and

charters. Suppliers are obligated to extend

these requirements to their own suppliers

and supply chains.”

Chief Supply Chain Officer

Our Supplier Code of Conduct is

reviewed annually and updated

as needed to reflect changes in

regulatory requirements and

stakeholder expectations.

•

International Bill of Human Rights

(The United Nations Universal

Declaration of Human Rights and

its two Covenants) 1948

•

ILO Declaration on Fundamental

Principles and Rights at Work (1998),

including ILO Convention No. 138 on

Minimum Age and Convention No. 182

on the Worst Forms of Child Labour

•

United Nations (UN) Guiding Principles

on Business and Human Rights (2011)

•

OECD Guidelines for Multinational

Enterprises (2011 Edition)

•

OECD Guidance for Responsible Supply

Chains of Minerals 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

•

Automotive Industry Guiding

Principles (2022)

We incorporate external

principles to align our

Supplier Code of Conduct

with cross-industry and

international best practices.

We provide supplier

trainings and notify

suppliers when the Supplier

Code is updated.

This Supplier Code is

publicly available at

sustainability.ford.com

Policy Statement on Ford’s Human Rights

Strategy, Policies, and Processes

This policy statement summarizes the

strategies, processes, and expectations that

Ford has established and communicates and

addresses human rights and environment-

related risks in our own business area as well

as our supply chain, in line with the German

Supply Chain Due Diligence Act (SCDDA).

Impacts

: Workers in the

Value Chain (I-11, I-12)

Risks

: Workers in the

Value Chain (R-7)

Opportunity

: N/A

We explicitly require our suppliers and

expect our business partners to adopt and

enforce similar policies and extend them

to their supply chains

Chief Sustainability Officer

Global Sustainability owns and

maintains this document. A

review of this statement will be

conducted on an annual and ad-

hoc basis; updates will be made

as necessary. Final review and

approval will be conducted by

the German Board of Directors.

From the policy:

“We respect human rights in accordance

with the United Nations (UN) Guiding

Principles on Business and Human Rights.”

We provide supplier

trainings and notify

suppliers any time the

policy is updated.

This policy is publicly

available at

sustainability.ford.com

Fundamentals

Sustainability at Ford

Products and Services

Environment

Social

Governance

Sustainability Statement

Data

Appendices

General Information

Environment

Social

ESRS Index

Policies to Manage Material Impacts,

Risks, and Opportunities

— continued

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Ford Integrated Sustainability and Financial Report — page 166

Policy and Description

Related Impacts, Risks,

and Opportunities

Scope

Senior Level Accountable for

Implementation and Process

for Monitoring

Third-party Standards Included

in Policy

Stakeholder

Consideration

Responsible Materials Sourcing Policy

This policy outlines Ford’s aspiration to

source only raw materials that are

responsibly produced.

Impacts

: Affected

Communities (I-13)

Risks

: N/A

Opportunity

: N/A

From the policy:

“Ford is committed to proactively removing

minerals in our products and supply chain

should any be identified to be contributing

to conflict. Suppliers are required to fully

support and cooperate with Ford’s efforts

to secure full transparency and traceability

of their raw material supply chains and

must engage sub-tier suppliers in their

efforts to demonstrate transparency and

appropriate due diligence in accordance

with Ford’s

Supplier Code of Conduct

and

this policy.”

Chief Supply Chain Officer

This policy is reviewed annually,

and updated to reflect evolving

issues in responsible material

sourcing.

This policy reflects the guidance provided

in Organization for Economic Co-operation

and Development (“OECD”) Due Diligence

Guidance for Responsible Supply Chains of

Minerals from CAHRAs (“OECD Guidance”)

and the related supplements for 3TG.

External benchmarking

results are taken into

consideration for this policy

(such as Lead the Charge).

We provide supplier

trainings and notify

suppliers any time the

policy is updated.

This policy is publicly

available at

sustainability.ford.com

Fundamentals

Sustainability at Ford

Products and Services

Environment

Social

Governance

Sustainability Statement

Data

Appendices

General Information

Environment

Social

ESRS Index

Policies to Manage Material Impacts,

Risks, and Opportunities

— continued

Ford Integrated Sustainability and Financial Report 2025

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Ford Integrated Sustainability and Financial Report — page 167

Fundamentals

Sustainability at Ford

Products and Services

Environment

Social

Governance

Sustainability Statement

Data

Appendices

General Information

Environment

Social

ESRS Index

Sustainability Statement

Environment

168

EU Taxonomy

174

E1: Climate Change

197

E2: Pollution

199

E3: Water and Marine Resources

200

E5: Resource Use and Circular Economy

Ford Integrated Sustainability and Financial Report 2025

167

Ford Integrated Sustainability and Financial Report — page 168

Fundamentals

Sustainability at Ford

Products and Services

Environment

Social

Governance

Sustainability Statement

Data

Appendices

General Information

Environment

Social

ESRS Index

EU Taxonomy

INTRODUCTION OF EU TAXONOMY

The European Union (EU) has recognized the role of

investments in achieving sustainability objectives. The EU

has also aspired to reach carbon neutrality globally no

later than 2050 with timing outlined in EU Regulation

(EU) 2021/1119 (European Climate Law). The EU passed

regulations (Regulation (EU) 2020/852 and others

collectively referred to as the “Delegated Acts”) requiring

companies, which meet certain characteristics, to report

under the EU Taxonomy. EU Taxonomy is a system that

classifies economic activities that may be environmentally

sustainable. In doing so, EU Taxonomy encourages

allocation of capital towards the transition to a low-

carbon economy that enables meeting the EU’s climate

and energy targets.

Under the EU Taxonomy, companies must report Key

Performance Indicators (KPIs) relating to revenue, capital

expenditure, and operating expenditure that contribute

to these activities. In EU Taxonomy, an economic activity

takes place when resources such as capital goods, labor,

manufacturing techniques, or intermediary products are

combined to produce specific goods or services. EU

Taxonomy disclosures intend to provide external

stakeholders with greater visibility to how the Company

makes substantial contributions to one or more of the six

EU environmental objectives, which are listed below and

frame presentation of data:

•

Climate Change Mitigation (CCM)

•

Climate Change Adaptation (CCA)

•

Sustainable Use and Protection of Water and Marine

Resources (WTR)

•

Transition to a Circular Economy (CE)

•

Pollution Prevention and Control (PPC)

•

Protection and Restoration of Biodiversity and

Ecosystems (BIO)

These six objectives are further described in the

Delegated Acts.

An activity is considered sustainable and aligned with EU

Taxonomy when it contributes substantially to one or

several of the six objectives, without causing significant

harm to the others, and at the same time meets certain

defined minimum safeguards.

Ford has reported on a subset of EU Taxonomy KPIs,

including revenue and capital expenditure, for its Spanish

operations since 2021. A report of EU Taxonomy on a

global basis for Ford Motor Company will help us provide

information that more closely parallels how our financial

information has been reported for years.

ELIGIBLE ECONOMIC ACTIVITIES

An economic activity is considered eligible when it is

listed in the Delegated Acts and has the potential to be

considered aligned, as also described in the Delegated

Acts. Ford uses an outputs-based approach in the

identification of its economic activities. This approach

captures both primary activities, such as designing,

manufacturing, distributing and leasing vehicles, and

auxiliary activities, such as property, plant and equipment

additions, under economic activities most closely related

to Ford’s motor vehicle revenue generating activity (the

outputs). This approach is consistent with Ford’s financial

reporting and how business performance is evaluated.

All of Ford’s businesses were considered in the analysis

and these are reflected in the linkage of the denominator

of the KPI to specific items in Ford’s financial statements,

which are prepared according to U.S. GAAP. For

additional information, please see the “Notes to the

Financial Statements” of Ford’s 2024

Form 10-K

Report.

Ford develops and delivers trucks, sport utility vehicles,

commercial vans and cars, and Lincoln luxury vehicles,

along with Connected Services. The Company offers

freedom of choice through three customer-centered

business segments: Ford Blue, engineering gas-powered

and hybrid vehicles; Ford Model e, inventing and

manufacturing electric vehicles along with embedded

software for customers; and Ford Pro, providing

commercial customers with vehicles and services tailored

to their needs. Additionally, the Company provides

automotive financing and leasing services through Ford

Motor Credit Company LLC (“Ford Credit”).

After careful analysis, Ford has determined that under

the EU Taxonomy its primary economic activities are:

•

Climate Change Mitigation 3.3 (CCM 3.3), Manufacture

of low-carbon technologies for transport, in connection

with the production of automobiles

•

Climate Change Mitigation 6.5 (CCM 6.5), Transport by

motorbikes, passenger cars, and light commercial

vehicles, in connection with leasing of cars, SUVs, vans,

and light trucks

Vehicle design, manufacture, and distribution, including

financing as a critical enabler to the production of Ford

and Lincoln branded vehicles, are covered under CCM 3.3,

which is an enabling activity, along with sales of vehicle

parts, primarily sold to dealers, distributors, and retailers,

and subscription services.

The leasing of Ford and Lincoln branded vehicles is

included under CCM 6.5, which is a transitional activity.

We considered leasing as a separate activity from design,

manufacturing, and distribution because leasing includes

revenue occurring after the vehicle wholesale but where the

Company still retains ownership of the underlying vehicle.

Revenue, capital expenditure, and operating expenditure

for each activity were determined as follows:

Revenue

The denominator for revenue is the same as the reported

Total Revenues shown in our consolidated income

statements. It represents “net” revenue derived from the

sale of products and the provision of services after

deducting sales rebates and value added tax and other

taxes directly linked to revenue. The revenue in the

denominator primarily represents the sale of new and

used vehicles, related financing and leasing revenue, and

parts, accessories, and services listed in Note 4 Revenue

in the “Notes to the Financial Statements” of Ford’s 2024

Form 10-K Report.

The revenue eligibility numerator consists of a subset of

revenue derived from products or services, including

intangibles, associated with economic activities that

potentially could be taxonomy aligned. Revenue from

component sales to unconsolidated subsidiaries and

extended service contracts, which are not tied to vehicle

revenue and for which there are no corresponding

economic activities under the EU taxonomy, are not

included in the eligibility numerator.

Capital Expenditure

The denominator for capital expenditure primarily

consists of additions to property, plant and equipment

and right-of-use assets from leases during the financial

year under review, which can be found in Note 25

Segment Information and Note 17 Lease Commitments,

respectively, both in the “Notes to the Financial

Statements” of Ford’s 2024 Form 10-K Report. The

eligibility numerator includes capital expenditure related

to vehicle design, manufacturing, and distribution.

Therefore, all these costs align with CCM 3.3.

Operating Expenditure

The denominator primarily includes the following

categories of expense, which are a subset of Total Cost

that is reported in our consolidated income statements:

•

Non-capitalized costs for engineering, research, and

development, expenses that are reported in Note 2

Summary of Significant Accounting Policies and make

up over 70% of the denominator;

Ford Integrated Sustainability and Financial Report 2025

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Ford Integrated Sustainability and Financial Report — page 169

•

Direct costs relating to the day-to-day servicing of

assets, such as maintenance and repair; and

•

New vehicle launch costs that are not capitalized.

Fundamentals

Sustainability at Ford

Products and Services

Environment

Social

Governance

Sustainability Statement

Data

Appendices

General Information

Environment

Social

ESRS Index

The categories of cost included in Operating Expense all

support the design, manufacturing, and sales of vehicles.

Therefore, all these costs align with CCM 3.3 and thus

are included in the eligibility numerator.

Ford has determined the eligibility KPIs for each of the

listed activities. Consistent with the identification of

economic activities, the eligible revenue, capital

expenditure, and operating expenditure are calculated

using amounts found in or derived from our financial

statements.

There are no identifiable values for the Environmental

Objective “Climate Change Adaptation” that can be

meaningfully separated from the Environmental

Objective “Climate Change Mitigation”. Consequently, the

KPIs for economic activities CCM 3.3 and CCM 6.5 are

disclosed under the Environmental Objective “Climate

Change Mitigation” to avoid double-counting of revenue,

capital expenditure, and operating expenditure when

determining the KPI in the eligibility numerator across

multiple economic activities.

The present definitions in the EU Taxonomy and

Delegated Acts are broad and require companies to

interpret how to apply them to their business activities.

We have applied judgment, interpretations, and

assumptions based on present information. Future

changes in the Delegated Acts may affect judgments

and therefore may affect our future reporting.

Economic Activities

Code(s)

Enabling or

Transitional

Description

Environmental Objectives

Taxonomy Aligned/Eligible for

Reporting Period

Manufacture of low-

carbon technologies for

transport

CCM 3.3, CCA 3.3 Enabling

The design, production, and distribution of

automobiles, excluding:

•

The supply of components for production

to third parties

•

Extended service contracts

“Climate change mitigation“

“Climate change adaptation“

Taxonomy Eligibility

Transport by motorbikes,

passenger cars, and light

commercial vehicles

CCM 6.5, CCA 6.5 Transitional

The leasing of automobiles

“Climate change mitigation“

“Climate change adaptation“

Taxonomy Eligibility

SUBSTANTIAL CONTRIBUTION

An electric vehicle meets the substantial current tailpipe

emission limit value of 0g CO

/km per vehicle.

Consequently, the design, manufacture, and distribution

of electric vehicles makes a substantial contribution to

the CCM environmental objective for activities CCM 3.3

(Manufacture of low-carbon technologies for transport)

and CCM 6.5 (Transport by motorbikes, passenger cars,

and light commercial vehicles). The vehicles we sold in

2024 that meet this standard include Mustang Mach-E,

F-150 Lightning, E‑Transit and in European markets the

Explorer, Capri, E‑Transit Custom, E-Tourneo Custom,

E-Transit Courier and E-Tourneo Courier.

Ford also makes hybrid vehicles that support lower-

carbon emissions. Under the EU Taxonomy, only a

subset that are Plug-In-Hybrid Electric Vehicles (PHEV)

generating less than 50g CO

/km per vehicle under the

Worldwide Harmonized Light Vehicles Test Procedure

may be candidates for substantial contribution.

Moreover, the EU Taxonomy does not allow these

vehicles to be included after 2025. Given these

limitations, Ford has determined that only electric

vehicles are candidates for substantial contribution.

TECHNICAL SCREENING CRITERIA —

DO NO SIGNIFICANT HARM

Ford is investigating the specific screening criteria

of the “Do No Significant Harm” (DNSH) requirements

to identify any gaps and ensure proper evidence for

eventual alignment.

MINIMUM SAFEGUARDS

Ford is investigating the specific screening criteria

of the ‘minimum safeguards’ related to human rights,

corruption, science and technology, taxation, and fair

competition. We have long-established policies and

procedures, such as Ford’s

Code of Conduct

Supplier

Code of Conduct

We Are Committed to Protecting

Human Rights and the Environment policy

, and

Policy

Statement on Ford’s Human Rights Strategy

, Policies and

Processes that explain our commitments to these topics.

While our electric vehicle design, manufacturing, and

distribution activity makes a substantial contribution

toward the objective of Climate Change Mitigation, we

cannot yet meet all the requirements to demonstrate

DNSH and Minimum Safeguards. Consequently, Ford is

reporting 0% alignment for its electric vehicle revenue,

capital expenditure, and operating expenditure KPIs.

However, we believe our greater level of transparency

on electric vehicles, including the reporting of our electric

vehicle capital spending, detailed in Note 25 Segment

Information in the “Notes to the Financial Statements”

of Ford’s 2024

Form 10-K

Report, and revenue

generation, primarily through Model e, continues to make

significant steps toward a sustainable future.

As we work through the Technical Screening Criteria,

we believe the work we are doing with electric vehicles

will enable us to report alignment scores in the future.

DISCLOSURES ON NUCLEAR AND FOSSIL GAS

RELATED ACTIVITIES

The additional economic activities specified in Delegated

Regulation (EU) 2022/1214 of 9 March 2022 (regarding

nuclear energy and gaseous fossil fuels) are not relevant

to Ford. Accordingly, specific reporting tables for these

activities are not included.

EU Taxonomy

— continued

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169

Ford Integrated Sustainability and Financial Report — page 170

Fundamentals

Sustainability at Ford

Products and Services

Environment

Social

Governance

Sustainability Statement

Data

Appendices

General Information

Environment

Social

ESRS Index

2024 FINANCIAL RESULTS

Our business segment structure provides transparency

over the performance and progress of spending, revenue,

and profitability of our electric vehicles that make a

substantial contribution toward the environmental

objective of Climate Change Mitigation (CCM).

For example, in 2024, our total electric vehicle capital

spending was $4.7 billion, up approximately $0.9 billion

over 2023 reflecting a third consecutive year of growth.

The majority of our electric vehicles are manufactured

and sold by our Model e business segment that operates

in North America, Europe, and China. Model e saw

revenue of $3.9 billion in 2024, which was down from

the prior year driven primarily by lower net pricing

and lower wholesales, which were due to competitive

market conditions.

Electric vehicles are also sold through Ford Pro, which

includes those sold to commercial, government, and

rental customers in North America, and Transit electric

vehicles in Europe. Model e also includes electric

vehicles and related sales not considered core to Ford

Pro to commercial, government, and rental customers in

Europe, China, and Mexico. Electric vehicles sold outside

of regions where Model e and Pro operate are reflected

in Ford Blue revenue.

We also reported $8.0 billion for engineering, research,

and development expenses in 2024, and a portion of that

relates to electrification based on either specific product

lines for direct costs or volume for indirect cost.

Outlook for 2025

Although we continue to invest in our electric vehicle

strategy, we have observed lower than anticipated

industrywide electric vehicle adoption rates and near-

term pricing pressures, which has led us, and may in

the future lead us, to adjust our investing, spending,

production, and/or product or future technology launches

to better match the pace of electric vehicle adoption.

While continued industry pricing pressure remains, we

plan to increase our global volume of electric vehicles,

driven by the full-year impact of European launches.

We have increased investment in our battery facilities

and next-generation products. We’re diligently working

on our next generation of mass-market electric vehicles

that we believe will have a positive impact on our

business. In 2025, we plan to continue Ford’s Power

Promise to improve access to charging and further

increase adoption of our electric vehicles.

EU Taxonomy

— continued

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Ford Integrated Sustainability and Financial Report — page 171

Fundamentals

Sustainability at Ford

Products and Services

Environment

Social

Governance

Sustainability Statement

Data

Appendices

General Information

Environment

Social

ESRS Index

Taxonomy Eligible and Aligned Revenues for Ford

2024

Substantial contribution criteria

Does Not Significantly Harm (DNSH) Criteria

Economic Activities

Codes

Revenues

Proportion of Revenues

Climate Change Mitigation

Climate Change Adaption

Water

Pollution

Circular Economy

Biodiversity and Ecosystems

Climate Change Mitigation

Climate Change Adaption

Water

Pollution

Circular Economy

Biodiversity and Ecosystems

Minimum Safeguard

Proportion of Taxonomy Aligned

(A.1) or Eligible (A.2) revenue, 2023

Enabling Activity

Transitional Activity

$ million

Y/N; N/EL

Y/N

A. TAXONOMY ELIGIBLE ACTIVITIES

A.1. Environmentally sustainable activities (Taxonomy-aligned)

Manufacture of low-carbon technologies for transport

CCM 3.3

N/EL

N/A

Transport by motorbikes, passenger cars, and light commercial vehicles

CCM 6.5

N/EL

N/A

Revenue of environmentally sustainable activities (Taxonomy-aligned)

N/EL

N/A

A.2. Taxonomy-eligible but not environmentally sustainable activities

(not Taxonomy-aligned activities)

Manufacture of low-carbon technologies for transport

CCM 3.3

176,064

95%

Transport by motorbikes, passenger cars, and light commercial vehicles

CCM 6.5

4,565

Revenue of Taxonomy-eligible but not environmentally sustainable activities

(not Taxonomy-aligned activities)

180,628

98%

A. Revenue of Taxonomy-eligible activities (A.1+A.2)

180,628

98%

B. TAXONOMY NON-ELIGIBLE ACTIVITIES

Revenue of Taxonomy non-eligible activities

4,364

Total (A + B)

184,992

100%

Notes: N/A - Not Available; N/EL - Not Eligible; 1 - Totals may not sum due to rounding

EU Taxonomy

— continued

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Ford Integrated Sustainability and Financial Report — page 172

Fundamentals

Sustainability at Ford

Products and Services

Environment

Social

Governance

Sustainability Statement

Data

Appendices

General Information

Environment

Social

ESRS Index

Taxonomy Eligible and Aligned Capital Expenditures for Ford

2024

Substantial Contribution Criteria

Does Not Significantly Harm (DNSH) Criteria

Economic Activities

Codes

Capital Expenditure

Proportion of Capital Expenditure

Climate Change Mitigation

Climate change Adaption

Water

Pollution

Circular Economy

Biodiversity and Ecosystems

Climate Change Mitigation

Climate change Adaption

Water

Pollution

Circular Economy

Biodiversity and Ecosystems

Minimum Safeguard

Proportion of Taxonomy Aligned

(A.1) or Eligible (A.2) Capital

Expenditure, 2023

Enabling Activity

Transitional Activity

$ million

Y/N; N/EL

Y/N

A1. Environmentally sustainable activities (Taxonomy-aligned)

Manufacture of low-carbon technologies for transport

CCM 3.3

N/EL

N/A

Capital Expenditure of environmentally sustainable activities (Taxonomy-aligned) A.1

N/EL

N/A

A2. Taxonomy-eligible but not environmentally sustainable activities

(not Taxonomy-aligned activities)

Manufacture of low-carbon technologies for transport

CCM 3.3

9,192

96%

Capital Expenditure of Taxonomy-eligible but not environmentally sustainable activities

(not Taxonomy-aligned activities)

9,192

96%

A. Capital Expenditure of Taxonomy-eligible activities (A.1+A.2)

9,192

96%

B. Capital Expenditure of Taxonomy non-eligible activities (B)

354

Total (A + B)

9,546

100%

Notes: N/A - Not Available; N/EL - Not Eligible

EU Taxonomy

— continued

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Ford Integrated Sustainability and Financial Report — page 173

Fundamentals

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Products and Services

Environment

Social

Governance

Sustainability Statement

Data

Appendices

General Information

Environment

Social

ESRS Index

Taxonomy Eligible and Aligned Operating Expenditures for Ford

2024

Substantial contribution criteria

Does Not Significantly Harm (DNSH) Criteria

Economic Activities

Codes

Operating Expenditure

Proportion of Operating

Expenditure

Climate Change Mitigation

Climate Change Adaption

Water

Pollution

Circular Economy

Biodiversity and Ecosystems

Climate Change Mitigation

Climate Change Adaption

Water

Pollution

Circular Economy

Biodiversity and Ecosystems

Minimum Safeguard

Proportion of Taxonomy Aligned

(A.1) or Eligible (A.2) Operating

Expenditure, 2023

Enabling Activity

Transitional Activity

$ million

Y/N; N/EL

Y/N

A1. Environmentally sustainable activities (Taxonomy-aligned)

Manufacture of low-carbon technologies for transport

CCM 3.3

N/EL

N/A

Operating Expenditure of environmentally sustainable activities (Taxonomy-aligned) (A.1)

N/EL

N/A

A2. Taxonomy-eligible but not environmentally sustainable activities

(not Taxonomy-aligned activities)

Manufacture of low-carbon technologies for transport

CCM 3.3

10,954

100%

Operating Expenditure of Taxonomy-eligible but not environmentally sustainable activities

(not Taxonomy-aligned activities)

10,954

100%

A. Operating Expenditure of Taxonomy-eligible activities (A.1+A.2)

10,954

100%

B. Operating Expenditure of Taxonomy non-eligible activities

Total (A + B)

10,954

100%

Notes: N/A - Not Available; N/EL - Not Eligible

EU Taxonomy

— continued

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Ford Integrated Sustainability and Financial Report — page 174

Fundamentals

Sustainability at Ford

Products and Services

Environment

Social

Governance

Sustainability Statement

Data

Appendices

General Information

Environment

Social

ESRS Index

E1: Climate Change

INTEGRATION OF SUSTAINABILITY-RELATED

PERFORMANCE IN INCENTIVE SCHEMES

Remuneration

See “Sustainability-related Performance Incentives”

on page 150.

TRANSITION PLAN FOR CLIMATE CHANGE

MITIGATION

Our aim to reach carbon neutrality globally no later than

2050 is consistent with the Paris Agreement and the

timing outlined in EU Regulation (EU) 2021/1119 (European

Climate Law).

Our Global Greenhouse Gas Reduction Targets

Our global greenhouse gas reduction targets include our

previously reported SBTi accredited 2035 targets, their

corresponding absolute reference targets for 2030 as

required by ESRS, our global manufacturing target, and

our new publicly disclosed supply chain target:

•

Reduce vehicle use GHG emissions from sold products

– 2035 SBTi target: 50% per vehicle km vs. 2019

– 2030 reference target: 28% vs. 2019

•

Reduce global operations GHG emissions

– 2035 SBTi target: 76% vs. 2017

– 2030 reference target: 55% vs. 2017

•

Reduce global manufacturing GHG emissions

– 2028 target: 46% vs. 2017.

•

Reduce supply chain GHG emissions

– 2030 target: 25% vs. 2023

These targets are summarized in the table Targets

Summary — Greenhouse Gas Emissions Reductions on

page 176. These GHG reduction targets do not include

the use of offsets.

The clarifications below for vehicle use and operations

targets apply both to the 2035 SBTi target and their

corresponding 2030 reference target where applicable.

Our vehicle use target is on a well-below 2°C path,

reflecting the current softening of the electric vehicle

market and expected short-term challenges. A 1.5°C

pathway would entail a 46% reduction in absolute tons

GHG at 2030.

The vehicle use target goes beyond tailpipe emissions

and includes vehicle emissions from an energy-cycle (fuel

and electricity) perspective (well-to-wheels (WTW)). This

includes energy production and consumption during

vehicle use.

Our global operations target includes Scope 1 and 2 GHG

emissions from our consolidated manufacturing and non-

manufacturing facilities along with our unconsolidated

investee manufacturing facilities, and is aligned to a 1.5°C

path. Scope 2 emissions are calculated using a market-

based approach. Our supporting global manufacturing

target follows the same methodology with the exception

of limiting the scoping to global manufacturing facilities.

Our supply chain target is 25% reduction over seven

years, which is 3.6% per year linearly and aligned to a

well-below 2°C pathway. A 1.5°C pathway would entail a

42% reduction in absolute tons GHG at 2030. The scope

is global and covers supply chain emissions related to

vehicle production and centrally controlled non-

production. Certain service components procured from

non-Ford suppliers and vehicle components sourced

through other OEMs have been excluded from this

estimate.

Achieving our targets will depend on external factors

such as policies, infrastructure development, and market

readiness.

Decarbonization Levers and Actions

The graphic, Decarbonization Levers and Actions

Overview on page 177 shows an overview of our

decarbonization levers to achieve our targets along with

example actions for our current focus of addressing the

largest contributors — currently vehicle use and supply

chain emissions — and our operations.

It is important to note that the backbone of the

transformation to a carbon neutral business is carbon-

free energy. We are actively investing, partnering, and

collaborating in carbon-free energy throughout our value

chain. For electricity, our current focus includes

renewable and, in some cases, nuclear sources

Examples of our actions include investment in carbon-

free electricity for our operations; public and home

charging infrastructure; supporting our supply base via

best practice programs (M2030) and renewable electricity

procurement support (Transform: Auto); and advocating

for the transformation of the electric grid.

Locked-in GHG Emissions

Locked-in GHG emissions are future emissions that will

occur over our products’ or facilities’ lifetimes due to

choices we make 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 lifetime in the year the vehicle is sold. This

is also reflected in our vehicle use 2035 SBTi target. As

these emissions are included in our targets and planning,

we do not expect them to jeopardize achieving our

vehicle use 2035 target and 2030 reference target.

Compared to vehicle use, locked-in Scope 1 and Scope 2

GHG emissions from our operations are expected to be

small, and are not anticipated to jeopardize the

achievement of Ford’s 2035 target or 2030 reference

target to reduce our global operations GHG emissions.

Locked-in GHG emissions from Ford’s operations include

assets at our facilities that generate Scope 1 emissions

such as equipment used for building heat and process

heating. Replacement of Scope 1 assets would help with

target achievement, but is not required in the near term,

as our key decarbonization levers are related to

improving energy efficiency and sourcing carbon-free

electricity. Locked-in Scope 2 GHG emissions are

considered to be negligible since Scope 2 GHG emissions

are contract-based and, therefore, able to be adjusted.

However, to continue progressing our commitments to

reduce GHG emissions from our operations and to reach

our long-term aspiration of carbon neutrality no later

than 2050, Ford will need to address locked-in Scope 1

GHG emissions. Ford is developing a plan for how we

might address GHG and energy-intensive assets, with a

specific focus on increasing system-wide efficiency and

reducing natural gas consumption.

Alignment with Strategy and Financial Planning

Decarbonizing our business and providing sustainable

mobility solutions is essential to realizing Ford’s overall

vision of building a better world. It is reflected in our

overall strategy to transform our product and services

portfolio and in our investments to realize the

transformation.

Transition Plan Approval

The Sustainability, Innovation and Policy Committee of

the Board of Directors oversees the climate transition

plan.

Ford Integrated Sustainability and Financial Report 2025

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Ford Integrated Sustainability and Financial Report — page 175

Fundamentals

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Products and Services

Environment

Social

Governance

Sustainability Statement

Data

Appendices

General Information

Environment

Social

ESRS Index

E1: Climate Change

— continued

Ford Integrated Sustainability and Financial Report 2025

175

Transition Plan Investments

Our business segment structure provides transparency

over the performance and progress of spending, revenue,

and profitability of our electric vehicles, our most

important decarbonization lever to mitigate GHG

emissions. For example in 2024, our total electric vehicle

capital spending was $4.7 billion, up approximately

$0.9 billion over 2023 reflecting a third consecutive year

of growth. The eligible capital expenditure KPI reflects

continuing investments in our low-carbon future,

primarily in Model e. These include investments in our

manufacturing sites to make battery electric vehicles

such as Tennessee Electric Vehicle Center, Cologne

Electric Vehicle Center, Halewood, BlueOval Battery Park

Michigan, and others.

While we do not show taxonomy alignment this year,

we anticipate future alignment to increase as we work

through the Technical Screening Criteria and related

reporting requirements. Currently, the capital

expenditure for electric vehicles reflects 54% of the total

capital expenditure reported for 2024. Our eligible

operating expenditure is heavily driven by our

engineering and research and development, which in

2024 totaled $8.0 billion. Similar to the past several

years, it includes spending related to new technologies

such as low-carbon propulsion and electrification

We continue developing the supply chain for electric

vehicles. An example is our electric vehicle battery JV,

with BOSK. From inception through January 2025, we

have contributed $2.4 billion (net of returns of capital)

to BOSK.

As we continue to invest in our electric vehicle strategy,

we have observed lower-than-anticipated industry wide

electric vehicle adoption rates and near-term pricing

pressures, which have led us, and may in the future lead

us, to adjust our investments, spending, production, and/

or product or future technology launches to better match

the pace of electric vehicle adoption.

While ongoing industry pricing pressure remains, we

plan to increase our global volume of electric vehicles,

driven by the full-year impact of European launches. We

have also increased investment in our battery facilities

and next-generation products.

As outlined in Note 18 Debt and Commitments in the

“Notes to the Financial Statements” of Ford’s 2024

Form

10-K

Report, Ford’s corporate, supplemental, and 364-day

credit agreements include certain sustainability-linked

Key Performance Indicators (KPIs), pursuant to which the

applicable margin and facility fees may be adjusted if

Ford achieves, or fails to achieve, the specified KPIs

related to global manufacturing facility GHG emissions,

carbon-free electricity consumption, and Ford Europe CO

tailpipe emissions. Prior to 2024, the specified KPIs

related to global manufacturing facility greenhouse gas

emissions, renewable electricity consumption, and Ford

Europe CO

tailpipe emissions.

Coal, Oil and Gas-related Economic Activities

Ford has no investments related to coal, oil, and gas-

related economic activities.

Internal Carbon Pricing

While carbon has systematically or selectively been

priced in the past, currently Ford does not systematically

apply any internal carbon pricing schemes; we are re-

evaluating options for the future.

EU Paris-aligned Benchmarks

Ford is not excluded from the EU Paris-aligned

Benchmarks in accordance with the exclusion criteria

stated in Articles 12.1 (d) to (g) and 12.2 of Commission

Delegated Regulation (EU) 2020/1818 (Climate Benchmark

Standards Regulation).

Implementation Progress

Our current status for global GHG reduction targets are

shown in graphic GHG Emissions Reductions: Vehicles,

Operations & Supply Chain to the right.

The average GHG intensity of the vehicles we sold in

2024 is approximately 2% lower than for the vehicles we

sold in 2019. While this progress is lower than initially

planned, from an absolute perspective, our data shows a

higher reduction than initially expected with a 25%

reduction compared to our base year.

By securing a carbon-free electricity supply and making

our facilities even more efficient, we have achieved a 49%

reduction in emissions. Our progress is on track, being

close to two-thirds of the way to our 2035 76% reduction

target. Contributing to this progress, we achieved a

reduction of 51% in our global manufacturing GHG

emissions, in line with expected progress.

Increasing the percentage of carbon-free electricity

consumed in Ford’s global manufacturing plants, a key

enabler to decarbonizing our operations, is 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 similar market

mechanisms. The status in 2024 for our global

manufacturing plants was 71.5% carbon-free electricity.

For our supply chain in 2024 we achieved 1.4% reduction.

This is below our desired 3.6% linear annual reduction for

our pathway. We do, however, expect that progress will

take time and not be linear as technologies come online

and the grid decarbonizes.

GHG Emissions Reductions:

Vehicles, Operations & Supply Chain

•

Vehicle Use

Intensity

Progress — 2024 Status - 2024 Status 25%

2035 SBTi

Target

50%

100%

GHG

Reduction

Vehicle Use

Absolute

Progress — 2

024 Status - 2024 Status 25%

Remaining to 2030 Target - 20230 Reference Target 28%

100%

GHG

Reduction

Operations

Absolute

Progress — 2

024 Status - 2024 Status 49%

Remaining to 2030 Target - 2030 Reference Target 55%

2035

Target

76%

100%

GHG

Reduction -

Supply Chain

Absolute

Progress — 2024 Status - . 2024 Status 1.4%

2030

Target

25%

100%

GHG

Reduction -

100% GHG Reduction

Remaining to 2035 Target

Remaining to 2030 Target

Progress — 2024 Status

Ford Integrated Sustainability and Financial Report — page 176

Fundamentals

Sustainability at Ford

Products and Services

Environment

Social

Governance

Sustainability Statement

Data

Appendices

General Information

Environment

Social

ESRS Index

Targets Summary — Greenhouse Gas Emissions Reductions

Vehicle Use

2035 SBTi Intensity

Vehicle Use

2030 Absolute Reference

Global Operations

iii

2035 SBTi Absolute

Global Operations

iii

2030 Absolute Reference

Global Manufacturing

iii

2028 Absolute

Supply Chain

2030 Absolute

Reduction Target

50%

28%

76%

55%

46%

25%

Reduction Target Year

2035

2030

2035

2030

2028

2030

Pathway

well-below 2°C

1.5°C

well-below 2°C

1.5°C Reference Value

N/A

46%

N/A

42%

Base Year

2019

2017

2023

Base Year Emissions

330 (g CO

e / km)

331 (M metric tons CO

4.64 (M metric tons CO

3.98 (M metric tons CO

43.8 (M metric tons CO

2024 Status — Emissions

322 (g CO

e / km)

248 (M metric tons CO

2.38 (M metric tons CO

1.94 (M metric tons CO

43.2 (M metric tons CO

2024 Status — % Reduction

25%

49%

51%

1.4%

Methodology

SBTi sectoral decarbonization

pathway for Transport (v 1.1)

SBTi cross-sector absolute

contraction

SBTi cross-sector absolute

contraction

SBTi cross-sector absolute

contraction

SBTi cross-sector absolute

contraction

SBTi cross-sector absolute

contraction

Target Scope Split

N/A

S1 — 78%

S2 — 7%

S3 — 15%

S1 — 50%

S2 — 36%

S3 — 14%

S1 — 45%

S2 — 39%

S3 — 17%

N/A

GHG Coverage

, CH

, N

, CH

, N

, CH

, N

, CH

, N

, CH

, N

, CH

, N

Impacts Addressed

The contribution of each emission scope at the target year.

ii.

2024 vehicle emissions include tailpipe (tank-to-wheels) CH

and N

O and GHGs from air conditioner refrigerant leakage. Prior year emissions, including the 2019 base year, exclude these GHGs. Including the other GHGs in 2019 increases emissions by less than our

5% threshold for restatement. If the 2024 emissions use the same 2019 base year emissions assumptions, i.e., tailpipe (tank-to-wheels) CH

and N

O and GHGs from air conditioner refrigerant leakage are excluded, the resulting percent reduction in g CO

e/km is 3%

for 2024. Note that CH

and N

O emissions from well-to-tank fuel production are included in all years.

iii. Operations includes consolidated manufacturing and non-manufacturing facilities (Scope 1 and 2 emissions) and unconsolidated investee manufacturing facilities (Scope 1 and 2 emissions from Scope 3 category 15). Manufacturing is the same scope, but excludes

consolidated non-manufacturing facilities. Scope 2 emissions are market based.

iv. The supply chain target scope is global and covers emissions related to vehicle production and centrally controlled non-production. Certain service components procured from non-Ford suppliers and vehicle components sourced through other OEMs have been

excluded from this estimate.

E1: Climate Change

— continued

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Ford Integrated Sustainability and Financial Report — page 177

Fundamentals

Sustainability at Ford

Products and Services

Environment

Social

Governance

Sustainability Statement

Data

Appendices

General Information

Environment

Social

ESRS Index

Decarbonization Levers and Actions Overview

Key Decarbonization Levers

Vehicle use

~85

•

Vehicle Technology

– Powertrains and vehicle design

•

Energy Options

– Low-carbon fuels and carbon-free electricity

•

Supporting Customers

– Product offerings, key electric vehicle adoption

enablers, and eco-friendly driving support

Operations

•

Energy-efficiency and Conservation

•

Carbon-free Energy

Supply Chain

~10

•

Supplier Engagement

– Sourcing requirements for carbon neutrality targets

– Decarbonization support

•

Low-carbon Materials

– Batteries, steel, aluminum, and plastics

Carbon Free Energy

Across the Value Chain

Key Actions

•

A portfolio of low-carbon products

•

Battery electric vehicles

–

Electrification of iconic vehicles

–

Europe — Electrification of passenger and commercial vehicles

–

Next-generation electric vehicles

–

Larger trucks, vans, SUVs, and a small, low-cost platform

•

Lower emissions ICE vehicles

–

Improved fuel efficiency and compatibility with alternative fuels

–

Traditional and plug-in hybrids

•

Hydrogen fuel cell

–

Technology development for our medium- and heavy-duty vehicles

•

Addressing key electric vehicle adoption barriers

•

Expanding the BlueOval Charge Network

•

More affordable battery chemistries like LFP (Lithium Iron Phosphate)

E1: Climate Change

— continued

Ford Integrated Sustainability and Financial Report 2025

177

•

100% carbon-free electricity for our global manufacturing by 2035

– DTE’s MIGreenPower program for our facilities in Michigan

– Expanded solar installations, such as at the Valencia plant

•

Global onsite renewable projects

– New solar installations at the Dunton Campus, Ford Thailand

Manufacturing, Ford Lio Ho plant and Changan Ford Powertrain

Manufacturing Base along with extended capacity at Merkenich

Technical Center

•

Reduction or elimination of natural gas usage

– Paint shop upgrades at Oakville and Ohio Assembly Plants and

Cologne Electric Vehicle Center

– No natural gas use for building heat when Tennessee Electric

Vehicle Center (TEVC) begins operations

•

Campus transformation

– 100% carbon-free electricity by 2027 — Dearborn Hub and Michigan

Central District

•

Require direct production suppliers to establish science-based

GHG reduction targets, action plans, and transparent reporting

mechanisms; targets are reinforced via our sourcing process. Our

direct production suppliers are also required to cascade these

requirements to their subcontractors

•

Transform: Auto renewable electricity program — North America

– Support suppliers by providing training and tools to explore and

procure renewable electricity options

•

Manufacture 2030 (M2030) — global Tier 1 supply chain initiative

– Sharing decarbonization best practices, and providing training and

access to green finance

– Enabling site GHG emissions data collection

•

Purchase low-carbon aluminum and near-zero steel

(First Movers Coalition)

– MOUs with five European steel suppliers signaling the need

for low-carbon steel

Ford Integrated Sustainability and Financial Report — page 178

Fundamentals

Sustainability at Ford

Products and Services

Environment

Social

Governance

Sustainability Statement

Data

Appendices

General Information

Environment

Social

ESRS Index

IMPACTS, RISKS, AND OPPORTUNITIES

IDENTIFICATION AND ASSESSMENT PROCESS

Additional climate-specific details on the IROs

identification and assessment process are provided

below, complementing our overall Double Materiality

Assessment (DMA) and scenario and resilience analysis

disclosures.

See additional details in section Double Materiality

Assessment on page 156 and in Scenario and Resilience

Analysis Process on page 187.

Climate Impacts

We annually assess our entire value chain’s impact on

climate change by calculating corporate Scopes 1, 2, and

3 and total emissions as defined by the Greenhouse Gas

Protocol. The current status and future emissions based

on planned actions for our vehicles, operations, and

supply chain are evaluated relative to associated science-

based pathways and reviewed at least bi-annually by

management and annually by the Sustainability,

Innovation and Policy Committee of the Board of

Directors.

Climate Risks and Opportunities

Introduction

Climate-related risks are divided 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 and

chronic physical impacts of climate change

We identified and assessed climate-related risks and

opportunities along our upstream and downstream value

chain based on TCFD guidelines and well-established,

state-of-the-art science scenarios.

Three scenarios were analyzed to identify transition and

physical risks: The IEA Net Zero Emissions (NZE) by 2050

Scenario, the IEA Stated Policies Scenario (STEPS), and the

Intergovernmental Panel of Climate Change (IPCC)

Representative Concentration Pathway 8.5 (RCP8.5). NZE

helps expose transition risks, and while physical risks are

covered by all scenarios, the RCP8.5 scenario represents

the most severe physical risks in terms of timing and

magnitude. See Scenario and Resilience Analysis Process

on page 187 for more details on the scenarios.

The range provided by these scenarios identifies likely

risks and opportunities, as they cover a wide gamut of

societal action, addressing future uncertainties related to

policy, macroeconomic, energy systems, or technological

developments. These scenarios are also compatible with

the financial statement summaries on key climate risks

including GHG and fuel economy regulations, carbon

neutrality commitments, and disruptions to our

operations and our supply chain.

We evaluated the exposure and sensitivity of assets and

business activities to identified hazards and transition

events over short- (<5 years), medium- (5-10 years), and

long-term (>10 years) horizons as defined for our scenario

analysis. The climate-related time horizons are consistent

with our current interim 2035 SBTi Targets, Ford asset

lifespans, strategic planning, and capital allocation. They

differ from the time horizons identified for non-climate

related IROs identified in our DMA.

Transition Risks

In context of the scenario analysis and DMA, we

identified transition events and screened exposure of our

assets and business activities to these events over said

time horizons. We assessed the extent to which our

assets and business activities may be exposed and are

sensitive to the identified transition events. The double

materiality analysis considered the likelihood, magnitude,

and duration of the transition events.

Climate risks are summarized in the table Material

Climate-related Risks on page 179. The material risks are

also provided in the Risks table in section Material

Impacts, Risks, and Opportunities on page 161.

Also see the EU Taxonomy section for statements and

details on our sustainable economic activities (as defined

by EU Taxonomy) on page 168 and the results of the

Resilience Analysis on page 189 for activities requiring

significant efforts to be compatible with a transition to

a climate-neutral economy.

Physical Risk — Our Own Operations

Ford has conducted a detailed assessment of climate-

related physical risks across its operations. Assets for

70 Ford sites in 16 countries were screened for climate

hazard exposure across short-, medium-, and long-term

time horizons. Hazards related to temperature, wind and

water, and solid mass were assessed.

The assessment utilized climate modeling datasets,

hazard models, and location-specific data to analyze

risks, considering the likelihood, magnitude, and duration

of potential hazards, and in alignment with state-of-the-

art science at the time of the analysis. Asset location data

was overlaid with hazard maps for three climate

scenarios from Intergovernmental Panel of Climate

Change (IPCC) — RCP 2.6, RCP 4.5, and high-emission

scenario RCP 8.5 — to identify and assess climate-related

hazards.

In conducting a risk assessment on climate-related

physical hazards, Ford has identified acute and chronic

climate-related risks over the short-, medium-, and long-

term time horizons.

Physical Risk — Our Supply Chain

Our supply chain risk assessment focuses on water-

related risks, an important climate-related risk, for Tier 1

suppliers based on geospatial coordinates.

E1: Climate Change

— continued

Ford Integrated Sustainability and Financial Report 2025

178

Ford Integrated Sustainability and Financial Report — page 179

Fundamentals

Sustainability at Ford

Products and Services

Environment

Social

Governance

Sustainability Statement

Data

Appendices

General Information

Environment

Social

ESRS Index

MATERIAL IMPACTS, RISKS, AND OPPORTUNITIES RELATED TO CLIMATE CHANGE

Material Climate-related Risks

Transition Risks

Regulation, Policy, and Legal

R-2

•

Failing to comply with emissions regulations and meet ZEV thresholds may result in purchasing credits from competitors, curtailing vehicle sales, or paying fines

Technology

R-1

•

Meeting stringent emissions and emerging regulatory standards may require substantial investments

Market

R-10

•

Over investment in electrification and uptake not occurring at the same scale presents a financial risk

Physical Risks

Acute: Extreme Weather

R-3

•

Heightened occurrences of extreme weather events can disrupt Ford’s direct operations

R-4

•

Heightened occurrences of extreme weather events can disrupt Ford’s supply chain

The above transition risks for leading markets currently

transitioning to electric vehicles cover all three time

horizons. In leading markets, we expect these risks to

lessen over time as electric vehicle adoption becomes

more widespread. Other markets will reach the electric

vehicle inflection point later, extending the time horizon

for technology and market risks.

Policies, actions, and targets for each of the above

climate-related risks and our climate impacts are

discussed below. This includes details on target

methodology, decarbonization levers and investments,

stakeholder involvement, governance, performance, and

an outlook.

Other climate-related environmental and human rights

areas that are addressed in our

We Are Committed to

Protecting Human Rights and the Environment policy

and not addressed in this section can be found in the

respective sections of the sustainability statement.

Scope of Climate-related Ford Actions

Unless specified otherwise, the associated actions/

decarbonization levers are all global in scope with

completion time horizons consistent with achieving

the targets.

Impact I-1

The combustion of fossil fuels in ICE vehicles produces

GHGs contributing to Ford’s Scope 3 emissions.

Policies

Our We Are Committed to Protecting Human Rights and

the Environment policy states that “we:

•

Do our part to minimize impact on climate change

aligned with the United Nations Framework Convention

on Climate Change (Paris Climate Agreement), striving

towards carbon neutrality

•

Minimize vehicle criteria and greenhouse gas emissions

and increase energy efficiency, recognizing that life

cycle performance is a function of vehicle technology,

energy sources, and operating environment

•

Consider environmental performance throughout the

life of a vehicle and address in-service concerns in a

timely, customer-driven manner.”

For more information on the policy see the table “Policies

to Manage Material Impacts, Risks, and Opportunities”

on page 162.

Actions

The decarbonization levers and associated actions

to reach our 2030 reference target support the

implementation of the We Are Committed to Protecting

Human Rights and the Environment policy. See

Decarbonization Levers and Actions Overview on page

177 and Decarbonization Levers and Investments for this

impact on page 180.

Targets

Ford has set a science-based intensity target, approved

by SBTi, to reduce vehicle use emissions 50% per vehicle

km by 2035, relative to a 2019 base year.

Our absolute 2030 reference target is a 28% reduction

relative to the same 2019 base year.

This target supports the implementation of the We Are

Committed to Protecting Human Rights and the

Environment policy.

Methodology

Because the 2030 reference target is based on the 2035

target, the methodology discussion applies to both

targets unless noted otherwise.

Our 2035 vehicle target is aligned with a well-below 2°C

pathway and was set using the SBTi Sectoral

Decarbonization Tool for Transport (v 1.1). The 2030

reference target was defined using the SBTi cross-sector

absolute contraction approach along the same pathway.

Our 2030 absolute reference target on a 1.5°C pathway

would be a 46% reduction from the same base year.

The base year of 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 calculation considered the GHG Protocol.

When setting our vehicle target, we used an internal

forecast of future sales activity as input to the SBTi tool.

The tool adjusts the intensity target to account for

growth such that absolute emissions decrease.

Factors to achieving the target include technology

solutions, policy support, customer adoption of new

technologies, and economic conditions. Future

technology solutions, such as electric vehicles, and

supportive policies and regulations are important to

achieve the target. Customer preferences and economic

conditions may have either positive or negative GHG

E1: Climate Change

— continued

Ford Integrated Sustainability and Financial Report 2025

179

Ford Integrated Sustainability and Financial Report — page 180

emissions contributions. Since achieving the absolute

target is dependent on vehicle volumes, as our volumes

fluctuate we may also see fluctuations in our future

emissions.

Fundamentals

Sustainability at Ford

Products and Services

Environment

Social

Governance

Sustainability Statement

Data

Appendices

General Information

Environment

Social

ESRS Index

This vehicle target diverges from the GHG inventory as

reported in E1-6 in that we cover approximately 76% of

our global vehicle use emissions, focusing on the

regulated vehicle fleets in our key markets: the U.S., the

EU and U.K., and China. This is a subset of the global

inventory of absolute vehicle GHG emissions that are

calculated for our total global fleet.

The vehicle target is for on-road well-to-wheels (WTW)

GHG emissions reductions. WTW includes both the

production and consumption of the energy used by the

vehicles. On-road means regulatory laboratory test

tailpipe emission data are converted to on-road

emissions.

Decarbonization Levers and Investments

The use-phase CO

emissions on a WTW basis depend

on vehicle design, the energy source, and how the

vehicles are used by our customers. The expected

contributions from these levers to achieve the 2030

reference target and achieved GHG reductions to date are

shown in Decarbonization Levers — Vehicle Use.

Our decarbonization levers reflect the technical

opportunities for the transition of our vehicle portfolio

via design and more efficient powertrains, as well as the

use of lower-carbon energy sources. As previously noted,

volume fluctuations can affect the progress. Risks were

evaluated in our climate scenario analysis, including a

1.5°C path, which consider policy, technology, and

societal developments, and expected market penetration

of electric vehicles. See Scenario and Resilience Analysis

starting on page 187 for more details.

Implementation of the decarbonization levers and

associated actions is part of Ford’s financial planning

process. For more information see Investment in Material

Topics on page 157 and Transition Plan Investments on

page 175.

Target Stakeholder Involvement

Our decision to set SBTi-approved science-based

emission reduction targets was informed in part by

knowledgeable stakeholders such as investors and NGOs.

Target Governance

Our climate-related targets, including this target, are

reported biannually in the Global Sustainability & ESG

Meeting (GSM) and annually to the Sustainability,

Innovation and Policy Committee of the Board of

Directors.

Target Performance

The average GHG intensity of the vehicles we sold in

2024 is approximately 2% lower than for the vehicles we

sold in 2019, see graph, Target and Progress — Vehicle

Use — Intensity. While this progress is lower than initially

planned, from an absolute perspective, our data shows a

higher reduction than initially expected with a 25%

reduction compared to our base year. See graph Target

and Progress — Vehicle Use — Absolute.

▲

Percent of Base Year Emissions (%)

▼

WTW g CO

e/km

•

E1: Climate Change

— continued

Ford Integrated Sustainability and Financial Report 2025

180

100

200

300

400

Decarbonization Levers — Vehicle Use

Base

Year

2019

100%

Achieved

Progress

Through

2024

-25%

Powertrains

and Vehicle

Design/

Supporting

Customers

-20%

Energy

Options

-4%

Ref.

Target

2030

-28%

Target and Progress — Vehicle Use — Intensity

2019

2024

-2%

2035

-50%

Actu

arget

Ford Integrated Sustainability and Financial Report — page 181

Fundamentals

Sustainability at Ford

Products and Services

Environment

Social

Governance

Sustainability Statement

Data

Appendices

General Information

Environment

Social

ESRS Index

Target and Progress — Vehicle Use — Absolute

Million Metric tons CO

•

2019

2024

-25%

-28%

Actual

030 Reference Target

100

200

300

400

2030

•

Target Outlook

Electric vehicles are the core of our decarbonization

strategy. We are committed to achieving growth and

scale in electric vehicles but will modulate volume based

on customer demand. We’re adapting to industry pricing

pressures, adding hybrids, and addressing adoption

barriers by offering more charging solutions to

customers. We’re lowering our capex guidance,

improving profitability through battery resourcing, and

focusing on our next-generation electric vehicles which

will be cost optimized.

Complementary to our electric vehicle strategy, we

continue to offer customers broad choices with lower

emissions during the transition to fully carbon neutral

transportation. For example, fuel-efficient hybrids are

growing in popularity, particularly in markets where

electric vehicle infrastructure is not mature. Ford has

been selling hybrid vehicles for more than two decades.

Total Ford electrified vehicle sales (hybrid, plug-in hybrid

and electric) hit a record 285,291 this year in the US — up

38% from 2023.

Impact I-2

Raw material extraction, processing, and assembly are

energy intensive processes contributing to Ford’s Scope 3

emissions.

Policies

This supply chain impact is addressed by our

We Are

Committed to Protecting Human Rights and the

Environment policy

that states “we:

•

Do our part to minimize impact on climate change

aligned with the United Nations Framework Convention

on Climate Change (Paris Climate Agreement), striving

towards carbon neutrality.”

All Ford operations are covered by this policy and we

require our suppliers and expect partners and joint

ventures to adopt and enforce similar policies and extend

them to their own supply chain.

Furthermore, Ford’s

Supplier Code of Conduct

outlines

Ford’s requirements and expectations for supplier

relationships, including the same requirement to

minimize their impact on climate change and strive

towards carbon neutrality.

For more information on these policies see the table

Policies to Manage Material Impacts, Risks and

Opportunities on page 162.

Actions

The decarbonization levers and associated actions to

reach our 2030 target support the implementation of the

We Are Committed to Protecting Human Rights and the

Environment policy and Ford’s Supplier Code of Conduct.

See Decarbonization Levers and Actions Overview on

page 177 and Decarbonization Levers and Investments for

this impact on this page.

Targets

Ford has set a science-based target to reduce global

supply chain emissions 25% by 2030, relative to a 2023

baseline.

This target supports the implementation of the We Are

Committed to Protecting Human Rights and the

Environment policy.

Methodology

This reduction target is based on an absolute contraction

pathway of 3.6% linear annual GHG reduction and

aligned to a well-below 2°C pathway. A 1.5°C pathway

would entail a 42% reduction in absolute tons GHG at

2030.

The base year 2023 was chosen to be consistent with

ESRS guidelines, i.e., within the last three years; it was

also seen as a representative production year post-COVID

pandemic.

When projecting future emissions in 2030, Ford future

business projections were taken into consideration. This

includes changes in sales volumes, shifts in customer

preferences and demand, regulatory factors, and new

technologies.

Factors to achieving the targets include decarbonizing

the grid, technology solutions, policy support, and

economic conditions. Importantly, as the portfolio shifts

to electric vehicles and the grid decarbonizes, we are

working on a plan to address higher emissions for

batteries due to their energy-intensive production.

This global target includes 100% of our reported Scope 3

category 1 emissions as reported in E1-6, covering supply

chain emissions related to vehicle production and

centrally controlled non-production. These emissions are

calculated on a spend basis using suppliers’ CDP-

reported emissions and supplemented with U.S.

Environmentally-Extended Input-Output (USEEIO)

emission factors applied at a commodity level. It is

important to note, however, that data quality and

methodologies are evolving. As our understanding of

emissions improves over time we may see an increase or

decrease in emissions.

Decarbonization Levers and Investments

Decarbonization Levers — Supply Chain on page 182

shows achieved GHG reductions to date and expected

contributions from the levers to achieve the target. Note

that in the graphic, low-carbon materials are also

accounted for in the expected supplier engagement

reductions.

We are increasing supplier engagement across the

supply chain by leveraging the requirements of our

Supplier Code of Conduct and engaging in initiatives

such as Ford’s best practice climate programs with

Manufacture 2030 (global) and the new Transform: Auto

renewable electricity program (North America). We are

also working on decarbonizing key components and

materials such as batteries, steel, and aluminum.

E1: Climate Change

— continued

Ford Integrated Sustainability and Financial Report 2025

181

Ford Integrated Sustainability and Financial Report — page 182

Fundamentals

Sustainability at Ford

Products and Services

Environment

Social

Governance

Sustainability Statement

Data

Appendices

General Information

Environment

Social

ESRS Index

Our decarbonization levers are based on known key

emitters and technical opportunities to reduce those

emissions. Risks were evaluated in our climate scenario

analysis, including a 1.5°C path, which considers policy,

technology, and societal developments, and expected

market penetration of electric vehicles. See Scenario and

Resilience Analysis Process starting on page 187 for more

details.

Implementation of the decarbonization levers and

associated actions is part of Ford’s financial planning

process. For more information see Investment in Material

Topics on page 157 and Transition Plan Investments on

page 175.

Target Stakeholder Involvement

Expected supplier ambitions, including GHG reductions,

were a factor in evaluating our supply chain target

feasibility.

Target Governance

Our climate-related targets, including this target, are

reported biannually in the GSM and annually to the

Sustainability, Innovation and Policy Committee of the

Board of Directors.

Target Performance

In 2024 we achieved 1.4% reduction. This is below our

desired 3.6% linear annual reduction for our pathway. We

do, however, expect that progress will take time and not

be linear as technologies come online and the grid

decarbonizes.

We have seen improvements in supplier engagement in

2024, particularly for M2030 responses. 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 step in

tackling our Tier 2 emissions.

Integrating carbon neutrality into our sourcing decisions

was a key step in changing how we do business. This,

along with our continued engagement with suppliers to

understand their commitments, is important to help

support future progress.

Ford has signed non-binding memorandums of

understanding (MOUs) with strategic steel suppliers,

signaling the need for near-zero emissions steel. In 2024

we signed two new MOUs in Europe for a total of five

and met with strategic suppliers to understand the

transformation, including the significant increase in

demand for carbon-free electricity and hydrogen.

We are also making progress on improving data

availability and quality with initiatives such as Catena-X.

For the first time in 2024, OEMs, Tier-1, and Tier-2

suppliers exchanged product carbon footprint (PCF)

primary data across tiers — while using the IT solution of

their choice. The implementation of this Catena-X PCF

use case increases CO

e data accuracy at a part level.

Decarbonization Levers — Supply Chain

▲

Percent of Base Year Emissions (%)

▼

Million Metric tons CO

•

E1: Climate Change

— continued

2025

l Repo

ncia

ina

ilit

ina

ust

Int

182

Base

Year

2023

100%

Achieved

Progress

Through

2024

-1.4%

Low-

Carbon

Materials

-1.6%

Supplier

Engagement

— Decarbon-

ization

support

-4.0%

Supplier

Engagement

— Carbon

Neutrality

Targets

-18%

Target

2030

-25%

Target Outlook

Decarbonizing the supply chain is a complex task

of growing importance as we electrify our portfolio.

Increasing collaboration and policy support is important

to cost-effectively reduce the GHG emissions of our

materials and parts.

A prime example is steel where there are technological,

economic, infrastructural, policy, and supply chain

challenges that need to be addressed to accelerate the

adoption of near-zero steel in order to meet our 2030

First Movers Coalition pledge.

We are continuing to explore opportunities for steel and

other low-carbon materials.

Target and Progress — Supply Chain

2023

2024

-1.4%

2030

-25%

Actual

Target

Impact I-3

The use of energy at Ford’s consolidated manufacturing

and non-manufacturing facilities contribute to Ford’s

Scope 1 and 2 emissions along with Scope 3 category 15

for unconsolidated investee manufacturing facilities.

Policies

This operations impact is addressed by our

We Are

Committed to Protecting Human Rights and the

Environment policy,

which states that “we:

•

Do our part to minimize impact on climate change

aligned with the United Nations Framework Convention

on Climate Change (Paris Climate Agreement), striving

towards carbon neutrality

Ford Integrated Sustainability and Financial Report — page 183

•

Reduce emissions, increase energy efficiency, and

utilize renewable energy in our manufacturing

operations.

Fundamentals

Sustainability at Ford

Products and Services

Environment

Social

Governance

Sustainability Statement

Data

Appendices

General Information

Environment

Social

ESRS Index

For more information on the policy see the table Policies

to Manage Material Impacts, Risks and Opportunities on

page 162.

Actions

The decarbonization levers and associated actions to

reach our 2030 reference target support the

implementation of the

We Are Committed to Protecting

Human Rights and the Environment policy

. See

Decarbonization Levers and Actions Overview on page

177 and Decarbonization Levers and Investments for this

impact on page 184.

Target — Global Operations GHG Reductions

Ford has set a science-based target, approved by SBTi,

to reduce global operations emissions by 76% by 2035,

relative to a 2017 baseline. This includes our consolidated

manufacturing and non-manufacturing facilities and

unconsolidated investee manufacturing facilities.

Our 2030 global operations reference target is a 55%

reduction relative to the same 2017 base year.

This target supports the implementation of the We Are

Committed to Protecting Human Rights and the

Environment policy.

Methodology

This methodology discussion applies both to our 2035

SBTi target and the 2030 reference target since our 2030

reference target is interpolated along the 2035 target

pathway.

This reduction target is based on the SBTi 1.5°C cross-

sector absolute contraction pathway of 4.2% linear

annual GHG reduction.

The base year 2017 was chosen to be consistent with

previously released CO

e reduction targets; it was also

seen as a representative production year.

In setting GHG emission reduction targets, Ford

considered known impacts to future emissions, such as

production plans, projects, and changes in contracts.

Ford also considered how other external factors, such as

changes to grid energy mix or changes to regulations,

will impact our global GHG emissions footprint and

emission reductions. Achieving the target is primarily

reliant on use of carbon-free electricity and

implementation of energy efficiency and conservation

actions at our global manufacturing plants.

It is estimated that Scope 1 will account for 78%, Scope 2

7%, and Scope 3 category 15 (unconsolidated investee

manufacturing facilities) 15% of the emissions in the

target year 2035. Similarly for our 2030 reference target,

it is estimated that Scope 1 will account for 50%, Scope 2

36%, and Scope 3 category 15 (unconsolidated investee

manufacturing facilities) 14% of the emissions in the

target year. These estimates are based on current year

emissions and known decarbonization levers.

This target is consistent with our GHG inventory as

reported in E1-6 and defined in our Inventory

Management Plan. It covers 100% of the total Scope 1 and

2 emissions and 100% of unconsolidated investee Scope 1

and 2 emissions included in Scope 3 category 15

emissions. Scope 2 emissions are calculated using a

market-based approach.

The same methodologies defined in our Inventory

Management Plan were also used to ensure that data for

the baseline and subsequent years are representative.

The Inventory Management Plan, which considers the

GHG Protocol and ISO 14064-1, clearly defines our

organizational boundaries, emission sources, and

associated methodologies, for consistency from year to

year. Each year, Ford reviews a full listing of current

properties, buildings, and spaces owned and leased

by Ford Motor Company for inclusion or removal from

the GHG inventory. See additional detail as to emissions

calculated methodologies in Gross Scopes 1, 2, 3 and

Total GHG Emissions section, Methodology and

Assumptions notes.

Target — Global Manufacturing GHG Reductions

Supporting our overall operations target, Ford has set an

absolute science-based target to reduce our global

manufacturing emissions by 46% by 2028, relative to a

2017 baseline.

This target supports the implementation of the We Are

Committed to Protecting Human Rights and the

Environment policy.

Ford also has voluntary external agreements related to

this target. This includes:

•

U.S. DOE Better Climate Challenge to reduce our U.S.

absolute manufacturing emissions by 50% by 2030,

relative to a 2017 baseline

•

U.S. DOE’s Better Plants Challenge to reduce energy

intensity from our U.S. manufacturing facilities by 10%

by 2030, relative to a 2020 baseline

Methodology

With the exception of limiting the scoping to global

manufacturing facilities, the same methodology as

previously discussed for our global operations target is

applied here, including the GHG inventory approach.

Limiting the boundaries to just manufacturing sites

translates into 84% of the Scope 1, 75% of Scope 2 and

100% of unconsolidated investees’ Scope 1 and 2

emissions included in Scope 3 category 15 emissions.

This target does follow the same SBTi 1.5°C cross-sector

absolute contraction pathway of 4.2% linear annual GHG

reduction as the SBTi verified global operations target.

Targets — Manufacturing Carbon-free Electricity

In pursuit of our aspirations to use 100% carbon-free

electricity in all manufacturing facilities globally by 2035,

we have established a target to reach 77% by 2028.

This target supports the implementation of the We Are

Committed to Protecting Human Rights and the

Environment policy.

Methodology

Procuring carbon-free electricity is one of Ford’s key

decarbonization objectives in achieving our science-

based operations GHG reduction target. Carbon-free

electricity includes renewable and, in some cases, nuclear

sources

In setting the target, Ford considered known impacts to

future emissions, such as production plans, projects, and

changes in contracts. Ford also considers how other

external factors, such as changes to grid energy mix or

changes to regulations, will impact our future carbon-

free electricity target. The target ambition in terms of

level and timing considered national, EU or international

climate policy goals.

This absolute global target includes consolidated and

unconsolidated investee manufacturing facilities.

Global carbon-free electricity is the ratio of carbon-free

electricity consumption and the total electricity

consumption at our global plants. Energy consumption

for Ford’s consolidated facilities is obtained from invoices

and other source documents or estimated using facility

square footage if utility invoices are unavailable. Total

carbon-free electricity is calculated based on the market-

based approach. We first apply on-site renewable

consumption and consumption related to carbon-free

E1: Climate Change

— continued

Ford Integrated Sustainability and Financial Report 2025

183

Ford Integrated Sustainability and Financial Report — page 184

▼

electricity procurement. For other sites, we follow the

location-based approach, with grid mixes based on U.S.

EPA eGRID for U.S. facilities and IEA grid mixes for

remaining global facilities. Ford’s calculated carbon-free

electricity mix can include renewable sources such as

wind, solar, geothermal, hydro, and biomass, along with

nuclear. Ford considers biomass for electricity to be a

zero emissions source in its calculations under the

location-based approach, consistent with the GHG

Protocol guidance for using U.S. EPA eGRID and IEA

average emission factors.

Fundamentals

Sustainability at Ford

Products and Services

Environment

Social

Governance

Sustainability Statement

Data

Appendices

General Information

Environment

Social

ESRS Index

The same inventory management plan and associated

GHG inventory approach as previously discussed in

Methodology — GHG Reductions — Global Operations is

applied here. See Table Target — Carbon Free Electricity

for additional details.

Decarbonization Levers and Investments

The expected relative contributions of the different

decarbonization levers to reach our 2030 reference target

are shown in chart Decarbonization Levers — Operations.

Our decarbonization levers are based on known key

emitters and technical opportunities to reduce those

emissions. Risks were evaluated in our climate scenario

analysis, including a 1.5°C path, which considers policy,

technology, and societal developments, and expected

market penetration of electric vehicles. See Scenario and

Resilience Analysis starting on page 187 for more details.

Implementation of the decarbonization levers and

associated actions is part of Ford’s financial planning

process. For more information see Investment in Material

Topics on page 157 and Transition Plan Investments on

page 175.

Decarbonization Levers — Operations

▲

Percent of Base Year Emissions (%)

Base

Year

2017

100%

Achieved

Progress

Through

2024

-49%

Energy

Efficiency &

Conservation

-4%

Use of

Carbon-

Free

Electricity

-29%

Ref.

Target

2030

-55%

Target Stakeholder Involvement

Our decision to set SBTi-approved science-based

emission reduction targets was informed in part by

knowledgeable stakeholders such as investors and

NGOs. Our other targets were set to support achieving

our SBTi target for operations.

Target Governance

Our climate-related targets, including our GHG reduction

targets and carbon-free electricity target, are reported

biannually in the GSM and annually to the Sustainability,

Innovation and Policy Committee of the Board of

Directors.

Target Performance

By securing a carbon-free electricity supply and making

our facilities even more efficient, we have achieved a 49%

reduction in emissions. Our progress is on track, being

close to two-thirds of the way to our 2035 76% reduction

target. Contributing to this progress, we achieved a

reduction of 51% in our global manufacturing GHG

emissions, in line with expected progress.

The table below summarizes the 2028 carbon-free

electricity target for our global manufacturing operations,

including status in 2024:

Million Metric tons CO

•

E1: Climate Change

— continued

Ford Integrated Sustainability and Financial Report 2025

184

Target — Carbon-free Electricity

ESRS Metric

Percentage in Target Year

MDRT 80b

77%

Target Year

MDRT 80e

2028

Percentage in Base Year

MDRT 80d

N/A

Base Year

MDRT 80d

N/A

Status in current year (%)

MDRT 80j

71.5%

Regionally, we have made progress with all of our

purchased grid electricity for manufacturing facilities in

Europe, Mexico, and Ohio using carbon free sources. Ford

and our partners have also implemented several on-site

renewable projects this year, including installing a solar

carport at Ford Thailand Manufacturing and roof panels

at the Ford Lio Ho plant and the Changan Ford

Powertrain Manufacturing Base. In Europe, a ground

mounted system was installed at the Dunton Campus

and capacity was extended at our Merkenich Technical

Center and Valencia plant

Target and Progress — Operations

2017

2024

-49%

2030

-55%

2035

-76%

Reference

Actual

2030

Target

Target Outlook

Looking ahead to 2035, continuing to implement energy

efficiency measures and eliminating Scope 2 emissions

from grid electricity, our primary decarbonization levers,

will enable us to meet our SBTi operations GHG emission

reduction target and our global manufacturing GHG

emission reduction target.

Ford Integrated Sustainability and Financial Report — page 185

Fundamentals

Sustainability at Ford

Products and Services

Environment

Social

Governance

Sustainability Statement

Data

Appendices

General Information

Environment

Social

ESRS Index

E1: Climate Change

— continued

Ford Integrated Sustainability and Financial Report 2025

185

Battery production for the electrification of our fleet will

significantly increase the amount of electricity required.

And while we still expect to be able to procure 77%

carbon-free electricity by 2028, there may be some

periods going forward where demand outpaces supply

as society also becomes increasingly electrified and the

demand for carbon-free electricity grows. To avoid

shortfalls, we will continue to invest in and partner with

utilities to secure sufficient carbon-free electricity

globally.

Impact I-4

Inbound and outbound transportation and logistics

contribute to Ford’s Scope 1 and 3 emissions.

Policies

Our

We Are Committed to Protecting Human Rights and

the Environment policy

states that we will “do our part to

minimize impact on climate change aligned with the

United Nations Framework Convention on Climate

Change (Paris Climate Agreement), striving towards

carbon neutrality.”

For more information on the policy see the table Policies

to Manage Material Impacts, Risks and Opportunities

on page 162.

Actions

Ongoing actions that will reduce logistics GHG emissions

include:

•

Bio-LNG (Liquefied Natural Gas) vessels that move

vehicles from Ford Otosan in Türkiye to Ford of Europe

and U.K. destinations

•

Road trial in Europe with HVO (Hydrotreated Vegetable

Oil), replacing diesel fuel, e.g, carrier moving

components to our assembly plants

•

Ongoing logistics network and packaging density

optimization globally

These actions support the implementation of the We Are

Committed to Protecting Human Rights and the

Environment policy.

Implementation of these and similar actions is considered

in Ford’s financial planning process. See Investment in

Material Topics on page 157.

Targets

Ford does not currently have quantitative targets related

to inbound and outbound transportation and logistics.

However, the status of our associated GHG emissions is

updated annually as part of our corporate GHG emissions

inventory process and reported externally in this report

and in our CDP response. Currently, there is no defined

level of ambition to measure progress.

We will continue to investigate the use of targets for our

logistics Scope 1 and 3 emissions as we collaborate with

our partners toward improved emissions data quality,

more cost-effective technologies and supporting

governmental policies.

Risk R-1 (Transition)

Meeting stringent emissions and emerging regulatory

standards may require substantial investments.

Policies

Our We Are Committed to Protecting Human Rights and

the Environment policy states “Regarding human rights

and the environment, we follow all Ford policies and

comply with or exceed all applicable laws and

regulations, including all applicable due diligence laws.”

Ford has no policies directly related to investments

resulting from regulatory standards.

For more information on the policy see the table Policies

to Manage Material Impacts, Risks and Opportunities

on page 162.

Actions

As we progress the transformation of our business,

through our Ford+ plan, we are integrating our strategic

initiatives into a cohesive business model, and balancing

competing priorities. To facilitate this transformation,

we are making investments, recruiting new talent, and

adjusting our business model, management system,

and organization.

Our strategy involves providing customers freedom of

choice to select the powertrain that best suits their needs

and maintaining manufacturing flexibility at Ford. We

refine our product cycle plan multiple times a year,

including improving the fuel economy of our internal

combustion vehicles and offering more propulsion choices,

such as hybrid and electrified vehicles, that generate lower

GHG emissions. Accordingly, maintaining discipline in our

capital allocation continues to be important, as a strong

core business and a balance sheet that provides the

flexibility to invest in these opportunities are critical to the

success of our Ford+ plan.

Implementation of these and similar actions is

considered in Ford’s financial planning process. See

Investment in Material Topics on page 157.

Targets

The Company manages this risk, however, our approach,

including targets and the process to track the

effectiveness of policies and actions, is proprietary to the

company and is not disclosed for competitive reasons.

Risk R-2 (Transition)

Failing to comply with emissions regulations and meet

ZEV thresholds may result in purchasing credits from

competitors, curtailing vehicle sales, or paying fines.

Policies

Our We Are Committed to Protecting Human Rights and

the Environment policy states “Regarding human rights

and the environment, we follow all Ford policies and

comply with or exceed all applicable laws and

regulations, including all applicable due diligence laws.”

For more information on the policy see the table Policies

to Manage Material Impacts, Risks and Opportunities

on page 162.

Actions

Ford has traditionally complied with emissions

requirements with a product-led strategy — meaning that

the vehicles we produce meet the fleet-based

requirements without the use of purchased emissions

credit. As emission standards become stricter, compliance

may only be possible through increased sales of electric

vehicles, and this presents incremental risk that can be

managed in part through using purchased emissions credit.

In the fourth quarter of 2024, we entered into

agreements for the purchase of about $500 million of

regulatory compliance credits, and for full year 2024,

we entered into agreements for the purchase of about

$4.3 billion of such credits. As of December 31, 2024, our

outstanding purchase obligations under our compliance

credit purchase agreements totaled about $4.2 billion.

During 2024, we recorded about $200 million of expense

for our estimated utilization of regulatory compliance

credits related to current compliance period volumes

(e.g., model year, calendar year), which was allocated

to Ford Blue and Ford Pro results.

Ford Integrated Sustainability and Financial Report — page 186

Fundamentals

Sustainability at Ford

Products and Services

Environment

Social

Governance

Sustainability Statement

Data

Appendices

General Information

Environment

Social

ESRS Index

Targets

The Company manages this risk, addressing regional

differences, via a complex fleet assessment and target

setting approach. However, our approach, including

targets and the process to track the effectiveness of

policies and actions, is proprietary to the company and

is not disclosed for competitive reasons.

Risk R-3 (Physical)

Heightened occurrences of extreme weather events can

disrupt Ford’s direct operations.

Policies

Climate adaptation policies such as our Global Heat

Stress Program and Emergency Response Plans address

this risk. Our Global Heat Stress Program is designed

to protect employee health during periods of elevated

temperatures while our Emergency Response Plans

address responses to severe weather events and

other emergencies to ensure business continuity at

our facilities.

For more information on these policies see the table

Policies to Manage Material Impacts, Risks and

Opportunities on page 162.

Actions

Ford works to protect facilities and employees while

ensuring business continuity through reaction based

actions outlined in our Global Heat Stress Program and

Emergency Response Plans. These actions are tailored

to each site based on expected hazards.

Some of the potential weather-related events for Ford

are water-related hazards, particularly water stress and

flooding, and heat-related events. Actions to reduce

water withdrawal, particularly in regions that are water-

stressed, support climate change adaptation along with

actions from our positive performance strategy that

aims not only to minimize our environmental footprint,

but also to enhance our positive contributions to local

ecosystems. Some examples of climate change

adaptation actions resulting from a detailed physical risk

site assessment of the Valencia plant include:

•

Temperature related hazard mitigation facility

upgrades involve the integration of passive and active

processes designed to regulate in-site temperature.

These solutions improve performance and efficiency to

benefit site resilience to heat waves and temperature

increases.

•

Water related hazard mitigation facility upgrades focus

on identifying and implementing water saving

measures. By improving our monitoring and detection

of potential losses, our facilities are more resilient to

water stress and drought.

•

To help prevent flooding by slowing water flow and

increasing infiltration, as well as mitigating high heat

impacts and increasing biodiversity, the plant is

implementing an ecological upgrade of open areas.

These actions are ongoing in their implementation;

progress is assessed on an annual basis.

Implementation of these and similar actions is considered

in Ford’s financial planning process. See Investment in

Material Topics on page 157.

Targets

Ford does not currently have quantitative metrics or

targets related to this risk; our current focus is on climate

change mitigation through our decarbonization efforts.

We do, however, have policies in place that help us

address the impacts of climate related hazards, and we

conduct annual assessments of implemented adaptation

measures to evaluate their overall impact and

effectiveness. Currently, there are no defined levels

of ambition.

As we continue to improve our understanding of the

potential effects of climate change on our operations,

we will be investigating adaptation targets.

Risk R-4 (Physical)

Heightened occurrences of extreme weather events can

disrupt Ford’s supply chain.

Policies

This supply chain risk is addressed by Ford’s

Supplier

Code of Conduct

, which requires suppliers to

operationalize and document compliance through the

establishment of an appropriate risk management

system, including a risk analysis process. We also expect

suppliers to strive for positive impacts by improving

environmental performance by setting targets and

monitoring environmental performance indicators.

Ford requires our suppliers “to maintain an

environmental management system certified to ISO 14001

through an accredited third-party registrar.”

For more information on the policy see the table Policies

to Manage Material Impacts, Risks and Opportunities

on page 162.

Actions

Ford strongly encourages suppliers to participate in our

best practice climate program with M2030, which

facilitates sharing of best practices for reductions in

energy and water use, carbon dioxide and air emissions,

and waste generation.

For more information on supply chain actions, see GHG

emissions impact I-2 on page 181 and water use impact

I-6 on page 198.

Implementation of these and similar actions is

considered in Ford’s financial planning process.

See Investment in Material Topics on page 157.

Targets

Ford does not currently have quantitative metrics or

targets related to this risk; our current focus with our

suppliers is on climate change mitigation through our

decarbonization efforts.

We do, however, require suppliers to have policies in

place that help them address the impacts of climate

related hazards and require select Tier 1 suppliers to

report prior year energy use, emissions, and water use

and related management practices upon request,

through CDP Supply Chain Questionnaires and through

our best practice climate program with M2030. Currently,

there is no defined level of ambition.

As we continue to improve our understanding of the

potential effects of climate change on our own and

supplier operations, we will be investigating adaptation

targets.

Risk R-10 (Transition, Entity Specific)

Over-investment in electrification and uptake not

occurring at the same scale presents a financial risk.

Policies

Ford does not currently have policies related to this risk.

Although we continue to invest in our electric vehicle

strategy, we have observed lower-than-anticipated

industrywide electric vehicle adoption rates and near-

term pricing pressures, which has led us, and may in

the future lead us, to adjust our investments, spending,

production, and/or product or future technology launches

to better match the pace of electric vehicle adoption.

Actions

Ford is committed to scaling a profitable electric vehicle

business, and we are taking the following actions to

mitigate the financial risks of fluctuations in electric

vehicle demand:

E1: Climate Change

— continued

Ford Integrated Sustainability and Financial Report 2025

186

Ford Integrated Sustainability and Financial Report — page 187

Fundamentals

Sustainability at Ford

Products and Services

Environment

Social

Governance

Sustainability Statement

Data

Appendices

General Information

Environment

Social

ESRS Index

E1: Climate Change

•

Ford modifies its product plans and facilities to comply

with customer demand, economic conditions, and

regulations (safety, emissions, fuel economy,

autonomous driving technology, environmental, and

others). The automotive industry is subject to regulations

worldwide that govern product characteristics and that

differ by global region, country, and sometimes within

national boundaries. We refine our product cycle plan

to improve the fuel economy of our internal combustion

vehicles and to offer more propulsion choices, such as

hybrid and electrified vehicles.

•

In 2024, we announced additional actions to deliver a

profitable, capital-efficient, and growing electric vehicle

business and add even more propulsion choices for

customers that generate lower CO

emissions.

•

Our plan includes adjusting the company’s North

America vehicle roadmap to offer a range of

electrification options designed to speed customer

adoption — including lower prices and longer ranges.

In its fully electric portfolio, Ford will continue to

introduce new digitally advanced commercial vans and

trucks, along with other future lower cost vehicles.

•

Ford also realigned its U.S. battery sourcing plan to

reduce costs, maximize capacity utilization, and support

current and future electric vehicle production.

Implementation of these and similar actions is considered

in Ford’s financial planning process. See Investment in

Material Topics on page 157.

Targets

While the Company manages this risk, our approach,

including targets and the process to track the

effectiveness of policies and actions, is proprietary to the

company and is not disclosed for competitive reasons.

— continued

Ford Integrated Sustainability and Financial Report 2025

187

SCENARIO AND RESILIENCE ANALYSIS

Scenario and Resilience Analysis Process

The scenario analysis not only informs the Company on

relevant climate-related risks and opportunities, but it is

also used to assess the resiliency of our strategy and

business operations.

A team of internal experts qualitatively evaluated our

corporate strategies, including our carbon neutrality

strategy with associated mitigation actions and

investments, assessing our resilience to each scenario.

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). 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 results

presented below were finalized in March of 2025 and are

an update to the 2024 published analysis.

The resilience analysis was conducted for the entire

value chain, focusing on our own operations, vehicles,

the supply chain, and logistics. All previously discussed

material climate-related physical and transition risks

were considered in the analysis with no exclusions.

Each climate scenario was assessed for three time

horizons:

•

Short Term:

2025-2030

(0-5 years)

•

Medium Term:

2030-2035

(5-10 years)

•

Long Term:

2035+

(10+ years)

This approach is aligned with our current interim 2035

SBTi targets. It extends far enough into the future, as it

will take time to decarbonize the transportation system,

while still being relevant for Ford’s strategic planning

processes.

Note that these scenarios are not predictions of the

future and do not represent forecasts.

The results of the climate scenarios used here are

compatible with climate-related risks included in Item 1A.

Risk Factors of Ford’s 2024

Form 10-K

Report.

Introduction to the Scenarios

We use the International Energy Agency’s (IEA) World

Energy Outlook (WEO) and IPCC scenarios as

authoritative sources aligned with science and global

energy projections that are relevant to our global

footprint. WEO scenarios provide insight into energy

supply and demand with implications for climate targets

and economic development. Of the three WEO scenarios,

we use the Stated Policies Scenario (STEPS) and the Net

Zero Emissions by 2050 (NZE) Scenario shown in the

table Scenario Comparison Overview on the following

page. 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 high climate ambition to status quo to

significant climate impacts, providing a useful range of

circumstances to cover relevant risks and uncertainties in

Ford’s value chain.

The three scenarios:

•

The NZE Scenario shows the global energy sector

achieving net zero CO

emissions by 2050, with

advanced economies reaching NZE ahead of others.

•

STEPS is a pragmatic exploration of the current policy

landscape, mapping out a trajectory of policies that are

in place or under development by global governments.

•

The IPCC’s RCP8.5 considers a case with high energy

demand and GHG emissions growth in the absence of

climate policies, leading to high temperature increase.

Common Assumptions for WEO Scenarios

Many assumptions are common between the STEPS

and NZE scenarios as described by the WEO:

•

The global economy is assumed to grow by ~3% per

year 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 the

levels in advanced economies

•

The global population is assumed to rise from 8 billion

people in 2023 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 since the 1980s. Coupled with

declining fertility rates, this translates into a rising

share of older people in the global population. An older

population uses more energy at home than the average

population, 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 of

energy use

•

Technology costs are crucial in determining how

demand for energy services is met in each sector or

country. The cost of energy technologies evolves over

time 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

Ford Integrated Sustainability and Financial Report — page 188

Fundamentals

Sustainability at Ford

Products and Services

Environment

Social

Governance

Sustainability Statement

Data

Appendices

General Information

Environment

Social

ESRS Index

E1: Climate Change

— continued

Ford Integrated Sustainability and Financial Report 2025

188

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

Policy

Global policy implemented

to limit temperature rise to

1.5°C. CO

pricing rises

rapidly in all regions

Today’s policies with

no changes

Existing and planned

pricing

No explicit climate policy

Technology

A wide portfolio of clean-

energy technologies with

new technologies playing an

important role

Evolutionary development

of existing technologies

Modest progress, focusing on

unconventional fossil energy

development and food security

Energy Supply (EJ)

2023 to 2040

632 to 538, -16.5%

(electricity supply: +29%)

632 to 692, +9.5%

(electricity supply: +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)

Electric Vehicles in

2030s

Higher electric vehicle

adoption across markets

Lower electric vehicle

adoption in advanced

economies

Extremely limited electric

vehicle adoption; continued

reliance on oil in the transport

sector

Environment

Less severe weather events Increasing severe weather

events

Frequent and severe weather

events

Economy

3% average annual growth

3% growth slows due to

high rebuilding costs with

increased weather related

events

3% growth, but low per capita

income increase as population

growth is high. Highest

rebuilding costs with increased

weather related events

The Net Zero Emissions (NZE) by 2050 Scenario

This is a normative IEA scenario that shows a narrow but

theoretically achievable pathway for the global energy

sector to achieve net zero CO

emissions by 2050, with

advanced economies reaching net zero emissions ahead

of others. This scenario also meets key energy-related

UN SDGs in particular, by achieving universal access to

energy by 2030. 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 as energy 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)

STEPS provides a more conservative benchmark for the

future because it does not assume that governments will

reach 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. STEPS

explores where the energy system might go without

a major additional steer from policy makers.

High Emissions/Temperature Scenario (RCP8.5)

The RCP8.5 scenario combines assumptions about

high population and relatively slow income growth

with 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, and

unconventional oil sources after 2050. GHG emissions

more than double by 2050 due to increased fossil

energy use and growing agricultural production for

the large population. Global average temperatures

associated with RCP8.5 increase about 5°C by 2100.

The Results — Scenario Implications

The scenario analysis assessments are summarized

below for some of the most significant dynamics and

associated implications on industry and Ford.

Net Zero Emissions by 2050 (NZE)

Zero-emission vehicles (ZEVs — electric vehicles and fuel

cell electric vehicles (FCEVs)) scale in this scenario as

technology develops and scales to reach long-term

climate goals that minimize the effect of climate change.

Efforts are underpinned by strong policy for grid

decarbonization and the circular economy while cross-

sector collaboration addresses common challenges

throughout the value chain.

With strong policy, ZEVs scale, technology advances, and

costs reduce. Affordable vehicles and charging solutions

for homes and businesses are essential to scaling. A

focus on fuel cells for medium- and heavy-duty vehicles

is required to maintain leadership in these segments.

Such an environment would allow Ford to rapidly scale

its ZEV business, including FordPro services, meeting

high ambition climate goals.

The transition does, however, present challenges,

particularly in the short-term with heightened

competition from newcomers in the ZEV space while

complying with stringent emissions legislation. In the

interim, while ZEVs scale, wide-spread deployment of

electrified vehicles (HEVs, PHEVs and extended-range

Ford Integrated Sustainability and Financial Report — page 189

electric vehicles (EREVs) is expected, stressing

investments. Furthermore, costs need to be managed as

materials decarbonize and infrastructure develops. For

example, as the grid decarbonizes, near-term demand is

expected to out-pace supply but then balance out in the

long-term with universal access to affordable, clean

energy.

Fundamentals

Sustainability at Ford

Products and Services

Environment

Social

Governance

Sustainability Statement

Data

Appendices

General Information

Environment

Social

ESRS Index

Swift action with agile product development processes

is required along with a rapid acceleration of workforce

upskilling and reskilling. Climate-related disruptions at

our own and our suppliers’ facilities need to be managed,

but pose less financial risk compared to the STEPS and

RCP8.5 scenarios.

Stated Policies (STEPS)

With limited regional decarbonization policy support

in advanced economies and lacking support in the rest of

the world, effort is required to continue to develop

meaningful, market-driven policy solutions to address

climate change.

A challenging environment and economy make strategy

development complex and costly as new technologies

are deployed while maintaining existing technologies

across a range of products. With limited scaling of ZEVs,

higher costs result, leading to lower consumer

acceptance. With reduced overall global volumes there

would also be risk in regions with strong ZEV policies.

ICE vehicles continue to dominate in regions without

electric vehicle policy support, but high fuel efficiency is

required — HEV offerings expand with PHEVs and EREVs

also supporting decarbonization.

Moderate workforce upskilling requirements are

regionally based on ZEV market penetration, and plateau

in the long-term. A higher cost of living and widening

wealth gap creates additional stress on the workforce.

Increasing extreme weather events are a clear threat,

disrupting production at Ford and supplier facilities.

Severe weather-related events could also limit the ability

of freight and logistics carriers to deliver components

and materials from suppliers to us or finished vehicles

from our plants to dealers for an extended period of

time. This may increase our costs and delay or otherwise

impact both our production operations and customers’

ability to receive our vehicles.

Chronic climate-related risks are likely to increase

resource scarcity, creating a competitive advantage for

those engaged in the circular economy.

High Emissions/Temperature (RCP8.5)

This is the most difficult scenario in which to implement

climate-based strategies due to societal disinterest.

Without any explicit climate policies, the RCP8.5 high

emissions and temperature scenario fails to set climate

goals, let alone meet them.

The Ford business model would need to maintain ICEV

focus for decades due to insufficient policy support

globally. High cost of fuel still drives demand for fuel-

efficient vehicles, promoting alternative fuels propulsion

systems and other technology exploration.

On the operations side of the business, the workforce

evolves minimally with the application of unconventional

fossil fuels in ICEV compared to major changes required

for ZEVs in the other scenarios. Furthermore, the

workforce sees significant stress with the highest cost of

living and largest wealth gap.

Significantly higher costs are required to adapt to climate

change in this scenario. Resilience demands major

changes from the current business plan and may require

planning for relocation of assembly plants to less

affected regions. Similarly, the supply chain is

increasingly fragile and vulnerable to disruptions caused

by frequent extreme weather events. As a result,

premium freight costs are also likely to increase to

address operations and supply chain disruptions.

Likewise, our standard logistics network experiences

increased weather-related disruptions.

The circular economy is critical to secure resources as

chronic climate-related risks significantly increase

resource scarcity.

Scenario Analysis Summary

These scenarios expose the challenges and complexity

of decarbonizing the entire automotive value chain. The

path forward will be influenced by key factors such as

policy, ZEV and carbon-free grid infrastructure, low-

carbon technology, and market dynamics. There is

significant uncertainty as to how these factors will

develop over time, and they are also likely to differ

across product segments and regions.

We expect that passenger vehicles will be carbon neutral

before larger commercial vehicles due to technical

challenges decarbonizing the latter. However, a key

concern in general is the pace of uptake and the

achievable ZEV market share. Where there is a lack of a

comprehensive, market-driven carbon-pricing solutions,

such as in the case of the STEPS and RCP8.5 scenarios,

lower-than-expected ZEV demand could result in

increased costs and decreased ZEV sales and revenue.

Under such conditions there is high risk that Ford, and

companies in most industries, would not be able to

decarbonize the entire value chain to achieve climate and

energy aspirations. Consequently, it is anticipated that

carbon neutrality will be reached first in advanced

economies with supporting policies before the rest of the

world. Having strong ZEV policy support across advanced

economies is also key to capitalizing on global scale and

being competitive, particularly with ZEV-only OEMs in

regions with policy support.

With the uncertainty as to how the market will develop,

a critical take-away from this future scenario analysis is

a need for a diverse yet global set of environmentally

friendly technology solutions that are responsive to the

changing needs of our customers.

Furthermore, as the temperature rises over time and

climate-related disruptions increase, we will need to

ensure resilience with appropriate adaptation measures

in our own operations, supply chain, and our logistics.

A significant disruption to our production would lower

volumes and have a substantial adverse effect on our

financial condition.

Overall there are a number of internal and external

factors that are critical to success as we work toward

carbon neutrality: our product portfolio including our ZEV

strategy, operations, supply chain, logistics, public policy,

infrastructure development, and workforce.

The Results — Resilience of Ford’s Strategy

Ability to Respond

The scenario analysis highlights that significant effort is

required to transform our product portfolio, supply chain,

operations, logistics, and workforce to realize the

transition to a climate-neutral economy. A complete

transformation of the value chain, however, will take

decades, going beyond the time horizons of this

assessment. Our ability to respond is outlined below.

We cannot be certain that any expectation, forecast, or

assumption made in preparing these forward-looking

statements will prove accurate, or that any projection

will be realized. It is to be expected that there may be

differences between projected and actual results. Our

forward-looking statements speak only as of the date of

their initial issuance, and we do not undertake any

obligation to update or revise publicly any forward-

looking statement, whether as a result of new

information, future events, or otherwise.

Products and Electric Vehicle Adoption Enablers

We are committed to building a profitable, enduring

electric vehicle business for the long term. This will help

E1: Climate Change

— continued

Ford Integrated Sustainability and Financial Report 2025

189

Ford Integrated Sustainability and Financial Report — page 190

us address the largest source of our GHG emissions and

successfully compete in a low-carbon economy. To reach

this goal, we are currently focused on building a

profitable electric vehicle business that aligns investment

and manufacturing capacity with customer demand. This

includes:

Fundamentals

Sustainability at Ford

Products and Services

Environment

Social

Governance

Sustainability Statement

Data

Appendices

General Information

Environment

Social

ESRS Index

E1: Climate Change

— continued

Ford Integrated Sustainability and Financial Report 2025

190

•

Scaling and reducing costs of electric vehicles in

market today (as of the end of 2024)

•

Mustang Mach-E, F-150 Lightning, E-Transit, and in

Europe the newly launched Explorer, Capri, E-Transit

Custom, and E-Tourneo Custom

•

Next-gen electric vehicles take a system-level approach

•

Ford’s next-generation electric vehicle platform takes

a system-level approach to designing, sourcing, and

manufacturing with outcomes aimed at changing

customer expectations. Ford’s Advanced Electric

Vehicle Development team is questioning previous

assumptions rather than using an evolutionary

approach that builds upon existing designs

•

Increasing demand by removing barriers to adoption

•

Our U.S. customers have access to Tesla’s

Supercharger network and complimentary home

charging and installation for new buyers or leases

•

Helping fleets electrify

•

Ford Pro’s end-to-end solutions including electric

vehicles, charging, and software will help facilitate

businesses of all sizes to decarbonize, meet emerging

regulations, improve productivity, and lower total

cost of ownership

•

Remaking our battery footprint

•

This includes shifting our battery mix to LFP (Lithium

Iron Phosphate) and accelerating U.S. manufacturing

and creating an electric vehicle supply chain that

upholds Ford’s ESG values

Along this journey we anticipate that electric vehicle

technology will continue to advance and become more

affordable, while the grid will continue to decarbonize,

bolstering our confidence in achieving GHG reductions.

During the transition period to fully carbon neutral

transport, our approach of offering a broad choice of

lower emission powertrains also provides us with

resilience. For example, hybrids will be a key product

offering during the transition to electric vehicles,

particularly in markets where the electric vehicle

infrastructure is not mature.

We will partner when necessary to address key enablers,

leverage scale, and avoid capital destruction. For

example, Ford Pro is an integrated partner helping

customers decarbonize their fleets, not just with vehicles

but also charging solutions and productivity software.

Additionally, Ford electric vehicle customers have access

to more than 20,000 Tesla Superchargers across the U.S.

and Canada through the BlueOval Charge Network.

Ford’s response to the various scenarios will require

different solutions, but the building blocks are in place as

discussed above. Our electric vehicle foundation will

allow us to scale as the market grows, and we will

continue to address key enablers. Our lower-emission

ICEVs, including traditional hybrids and alternative fuel-

compatible vehicles, help decarbonize the business

in the transition or in the high temperature scenario.

Supply Chain

Decarbonizing the supply chain is a complex task

of growing importance as we electrify our portfolio. We

have put a number of enablers in place to reach our

near-term decarbonization target and long-term goals.

Collaboration with our suppliers, governments, and other

stakeholders is essential in the transition.

Integrating supplier carbon neutrality status into

production sourcing decisions, requiring our suppliers to

increase energy efficiency and their use of carbon-free

electricity, and supporting suppliers with best practices

along the carbon neutrality journey are key enablers to

decarbonize the supply chain and meet climate targets.

We have increased attention and engagement with high

emitting suppliers, including batteries, steel, and

aluminum. Future green tech needs to be scalable,

reliable, and affordable to end customers. Having the

right policy support in place will likely be important to

facilitate these developments.

Operations

Ford also recognizes the need to ensure resiliency of our

operations, by redeploying, upgrading, or

decommissioning existing GHG and energy-intensive

assets. In the short term, Ford is evaluating opportunities

to replace or upgrade energy and GHG-intensive assets

as part of our budgeting process. For example, Ford is

planning paint shop upgrades at Oakville and Ohio

Assembly Plants that will result in a reduction in natural

gas-related Scope 1 GHG emissions from process

equipment. In the medium term, Ford will continue to

use our life cycle planning and budgeting processes to

replace or upgrade energy and GHG-intensive assets. To

progress toward our goal of achieving carbon neutrality

no later than 2050, Ford is also developing a long-term

plan for how we might best address GHG and energy-

intensive assets, with a specific focus on reducing

emissions from our production processes.

Implementation of this plan is expected to extend into

the long term.

Logistics

Investment is also required to decarbonize our logistics

network. Technology is in development to address these

hard-to-abate emissions with current solutions being

cost intensive. In the transition to affordable low-carbon

technology, Ford is working on projects such as the

examples listed below:

•

Bio-LNG vessels that move vehicles from Ford Otosan

in Türkiye to Ford of Europe and U.K. destinations

•

Road trial in Europe with HVO (Hydrotreated Vegetable

Oil), replacing diesel fuel, e.g., carrier moving

components to our assembly plants

•

Ongoing logistics network and packaging density

optimization globally

Also important to success here is policy support to help

facilitate the transition.

Workforce

We will continue to adapt our reskilling process to

address our changing vehicle portfolio. This includes our

commitment to the principles of lifelong learning,

embracing a growth mindset for career development,

and investing in job training and career readiness

initiatives, such as our work to train future employees on

advanced batteries at Tennessee Electric Vehicle Center

and BlueOval SK Battery Park.

Securing Finances

Ford’s Sustainable Financing Framework, introduced

in 2021, is supporting the financing of our clean

transportation projects and efforts to create positive

social and environmental benefits as we move towards a

carbon neutral transportation future.

By June 30, 2023, $4.21 billion, the total of the net

proceeds of the two bonds, had been fully allocated

to the design, development, and manufacture of the

company’s electric vehicle lineup as well as other

development activities that will benefit our entire electric

vehicle portfolio.

Ford Integrated Sustainability and Financial Report — page 191

Fundamentals

Sustainability at Ford

Products and Services

Environment

Social

Governance

Sustainability Statement

Data

Appendices

General Information

Environment

Social

ESRS Index

E1: Climate Change

— continued

Ford Integrated Sustainability and Financial Report 2025

191

Energy Consumption and Mix

Footnote

ESRS Metric

2024

Energy Consumption and Mix

E1-5 AR 34

Total fossil energy consumption (megawatt hours)

E1-5 37a

6,544,477

Share of fossil sources in total energy consumption (percent)

68 %

Fuel consumption from coal and coal products (megawatt hours)

E1-5 38a

38,550

Fuel consumption from crude oil and petroleum products (megawatt hours)

E1-5 38b

71,031

Fuel consumption from natural gas (megawatt hours)

E1-5 38c

4,632,615

Fuel consumption from other fossil sources (megawatt hours)

E1-5 38d

Consumption of purchased/acquired electricity, heat, steam, cooling from fossil sources (megawatt hours)

E1-5 38e

1,802,282

Consumption from nuclear sources (megawatt hours)

E1-5 37b

1,055,338

Share of consumption from nuclear sources in total energy consumption (percent)

10.9 %

Total renewable energy consumption (megawatt hours)

E1-5 37

2,066,374

Share of renewable sources in total energy consumption (percent)

21 %

Fuel consumption from renewable sources, including biomass (also comprising industrial and municipal

waste of biologic origin, biogas, renewable hydrogen, etc.) (megawatt hours)

E1-5 37c

Consumption of purchased/acquired electricity, heat, steam, cooling from renewable sources

(megawatt hours)

E1-5 37c

2,023,634

The consumption of self-generated non-fuel renewable energy (megawatt hours)

E1-5 37c

42,739

Total energy consumption (megawatt hours)

E1-5 37

9,666,189

Footnote

ESRS Metric

2024

Energy Generation

The generation of non-renewable energy (megawatt hours)

E1-5 39

127,043

The generation of renewable energy (megawatt hours)

E1-5 39

42,739

Footnote

ESRS Metric

2024

Energy Intensity

Energy Intensity (total energy consumption per net revenue) associated with activities in high climate impact

sectors (megawatt hours/billion USD)

E1-5 40

52,252

Total Energy Consumption in high climate impact sectors (megawatt hours)

E1-5 41

9,666,189

Net revenue from activities in high climate impact sectors used to calculate energy intensity (billion USD)

E1-5 43 AR 38 $

185.0 B

Net revenue (other) (billion USD)

E1-5 43 AR 38 $

0.0

Total Net Revenue (billion USD)

E1-5 43 AR 38 $

185.0 B

Methodology and Assumptions

Ford’s energy data is tracked in Ford’s GHG inventory based on Ford’s Inventory

Management Plan, which considers the GHG Protocol and ISO 14064-1. In 2024,

energy consumption and mix are reported for the consolidated accounting group

only and include manufacturing and non-manufacturing facilities. Energy

consumption for Ford’s consolidated facilities is obtained from invoices and other

source documents or estimated if utility invoices are unavailable by applying an

average area-based energy intensity factor based on facility square footage,

building type and climate zone. Energy mix is obtained from various sources –

invoices; source documents for on-site renewable installations, renewable

procurement such as invoices or Energy Attribute Certificates, and on-site non-

renewable generation via combined heat and power facilities; and U.S. EPA eGRID

and International Energy Agency (IEA) grid mixes for grid electricity. Ford’s current

renewable energy mix is calculated based on on-site renewable generation,

renewable energy procurement, and U.S. EPA eGRID and International Energy

Agency (IEA) grid mixes for sites without on-site renewables or renewable energy

procurement.

The generation of renewable energy is calculated based on source documents for

our on-site renewable installations. The generation of non-renewable energy is

calculated based on source documents for our combined heat and power facilities.

Ford is not reporting Ford’s energy consumption of our unconsolidated investee

manufacturing facilities in this table.

Energy intensity is based on the “Total energy consumption” reported in the

Energy Consumption and Mix table and the net revenue reported in Ford’s 2024

Form 10-K

Report. There is no net revenue excluded from this calculation, since

Ford assumes that all energy consumption from Ford’s 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 defined in Commission Delegated Regulation

(EU) 2022/1288).

Footnotes

Net revenue is reported in Ford’s 2024

Form 10-K

Report, page 108.

Intensity calculation reflects actual net revenue versus rounded value shown

Values have been rounded. Totals may not sum due to rounding

Ford Integrated Sustainability and Financial Report — page 192

Fundamentals

Sustainability at Ford

Products and Services

Environment

Social

Governance

Sustainability Statement

Data

Appendices

General Information

Environment

Social

ESRS Index

E1: Climate Change

— continued

Ford Integrated Sustainability and Financial Report 2025

192

Gross Scopes 1, 2, 3, and Total GHG Emissions

Footnote

ESRS Metric

2024

Global Scope 1 GHG Emissions (metric tons CO

Gross Scope 1 GHG emissions

E1-6 44a & 48a

870,091

Consolidated accounting group

E1-6 50a

870,091

Unconsolidated, where Ford has operational control

E1-6 50b

Percentage of Scope 1 GHG emissions from regulated emission trading schemes

1, 3

E1-6 48b

12 %

Scope 1 GHG Emissions — Disaggregated by Activity

Consolidated Manufacturing Plants

E1-6 AR 41

730,630

Consolidated Non-Manufacturing Facilities

E1-6 AR 41

139,461

Footnote

ESRS Metric

2024

Global Scope 2 GHG Emissions (metric tons CO

4, 5

Gross location-based GHG emissions

E1-6 49a

2,076,700

Consolidated accounting group

E1-6 50a

2,076,700

Unconsolidated, where Ford has operational control

E1-6 50b

Gross market-based GHG emissions

E1-6 49b

1,183,244

Consolidated accounting group

E1-6 50a

1,183,244

Unconsolidated, where Ford has operational control

E1-6 50b

Scope 2 GHG Emissions — Disaggregated by Activity

Gross location-based GHG emissions

Consolidated Manufacturing Plants

E1-6 AR 41

1,622,549

Consolidated Non-Manufacturing Facilities

E1-6 AR 41

454,151

Gross market-based GHG emissions

Consolidated Manufacturing Plants

E1-6 AR 41

890,346

Consolidated Non-Manufacturing Facilities

E1-6 AR 41

292,897

Methodology and Assumptions

Refer to page 194 for details.

Footnotes

Data is preliminary, pending local regulatory reporting.

Ford uses U.S. EPA emission factors for all Scope 1 fuel combustion sources.

Percentage of Scope 1 GHG emissions from regulated emission trading

schemes (ETS) is calculated by dividing the gross Scope 1 GHG emissions from

regulated ETS by Ford’s gross Scope 1 emissions. The calculation

methodologies for each ETS program are based on the regional regulatory

requirements. In 2024, Ford does not have operational control of any

unconsolidated investee facilities subject to ETS. Therefore this metric is for

Ford’s consolidated facilities only. In 2024, Ford was subject to the European

Union ETS, United Kingdom ETS, and Ontario Emission Performance

Standard (EPS). ETS Scope 1 GHG emissions are third-party verified in

accordance with local requirements, separately from this Sustainability

Statement.

Ford uses U.S. EPA eGRID and International Energy Agency (IEA) grid average

emission factors for Scope 2 grid electricity location-based calculations. U.S.

EPA eGRID is used for U.S. facilities, while IEA grid average emission factors

are used for the rest of world. It should be noted that since U.S. EPA eGRID

and IEA treat biomass for electricity as a zero emissions source, Ford considers

biomass for electricity to be a zero emissions source in its calculations under

the location-based approach, consistent with the GHG Protocol guidance for

using U.S. EPA eGRID and IEA average emission factors. Under the Scope 2

market-based approach, Ford uses an emission factor of zero for carbon-free

electricity sources, based on contractual documents such as Energy Attribute

Certificates. For sites where Energy Attribute Certificates are not used, the

location-based approach is used to calculate market-based emissions. Ford

used an electricity emission factor as a proxy for purchased steam at Ford’s

Rouge complex.

Values have been rounded. Totals may not sum due to rounding.

Ford Integrated Sustainability and Financial Report — page 193

Fundamentals

Sustainability at Ford

Products and Services

Environment

Social

Governance

Sustainability Statement

Data

Appendices

General Information

Environment

Social

ESRS Index

E1: Climate Change

— continued

Ford Integrated Sustainability and Financial Report 2025

193

Footnote

ESRS Metric

2024

Significant Scope 3 GHG Emissions (metric tons CO

1, 2, 4

Total gross indirect Scope 3 GHG emissions

E1-6 44c

354,140,000

Category 1 — Purchased goods and services — supply chain emissions

E1-6 51

43,167,000

Category 4 — Upstream transportation and distribution

E1-6 51

2,873,000

Category 11 — Use of sold products — vehicle use (WTW)

E1-6 51

292,127,000

Category 15 — Investments

E1-6 51

15,972,000

Scope 1 and 2 (market-based) Emissions from Unconsolidated Investee Facilities

322,000

Scope 3 Vehicle Use Emissions from Vehicles Sold by Unconsolidated Investees

15,650,000

Footnote

ESRS Metric

2024

Total Global Scope 1, 2, and 3 GHG Emissions (metric tons CO

4, 5

Total Scope 1, 2, and 3 GHG emissions — location-based

E1-6 52a

357,087,000

Total Scope 1, 2, and 3 GHG emissions — market-based

E1-6 52a

356,193,000

Methodology and Assumptions

Refer to the next page for Scope 3 methodology details.

Footnotes

Scope 3 categories have been designated as significant based on magnitude

of the GHG emissions; if the category is associated with a material impact, risk

or opportunity; or if the emissions are included in our GHG reduction targets.

According to these criteria, four of 15 categories are significant and reported

while the remaining 11 categories are not significant.

Primary data obtained from suppliers or value chain partners has been used to

calculate 7% of significant scope 3 GHG emissions (E1-6 AR 46g).

Includes Scope 1, Scope 2 (market-based) and Scope 3 vehicle use emissions

from unconsolidated investees where Ford does not have operational control.

These emissions were reported in Scope 1, Scope 2 and Scope 3, Category 11 in

prior years.

All values have been rounded to nearest thousand for simplicity. Totals may

not sum due to rounding.

Only includes significant Scope 3 categories

This category includes supply chain emissions related to vehicle production

and centrally controlled non-production. Emissions are calculated using spend

obtained from Ford’s internal records. Emission factors are based on suppliers’

CDP-reported Scope 1, Scope 2, and Scope 3 categories 1, 4, and 5 emissions

for suppliers with third-party validated data, which are apportioned to Ford

using the ratio of Ford spend to supplier revenue. For suppliers without

validated data, Ford applies US Environmentally-Extended Input-Output

(USEEIO) emission factors adjusted for inflation and electricity decarbonization

since 2012, at a commodity level to Ford spend. Certain service components

procured from non-Ford suppliers and vehicle components sourced through

other OEMs have been deemed immaterial and excluded from this estimate.

Ford Integrated Sustainability and Financial Report — page 194

Fundamentals

Sustainability at Ford

Products and Services

Environment

Social

Governance

Sustainability Statement

Data

Appendices

General Information

Environment

Social

ESRS Index

E1: Climate Change

— continued

Ford Integrated Sustainability and Financial Report 2025

194

Methodology and Assumptions

Ford’s Inventory Management Plan (IMP), which considers the GHG Protocol and ISO 14064-1, defines our organizational

boundaries, emission sources, and associated methodologies. All data are global, and our operations include both

manufacturing and non-manufacturing, per organizational boundaries as defined by ESRS unless otherwise specified. The GHG

metrics are calculated by multiplying activity data by CO

, CH

, and N

O emission factors and applying Global Warming

Potentials to convert to CO

equivalent emissions.

Scope 1 and Scope 2:

Energy consumption for Ford’s facilities is obtained from utility invoices and other source documents or

estimated if utility invoices are unavailable by applying an average area-based energy intensity factor, based on facility square

footage, building type and climate zone. Data shown in this table is for our global operations (manufacturing and non-

manufacturing) per organizational boundaries as defined by ESRS unless otherwise specified.

Ford’s targets, including Ford’s SBTi Scope 1 and 2 target, include certain unconsolidated investee manufacturing facilities,

which manufacture Ford-badged products. These are included in Ford’s operations targets, covering Scope 1 and 2 emission

sources, as Ford sees investees as key partners in delivering Ford’s carbon neutrality goals for its operations. In 2024, Ford is

reporting emissions for unconsolidated investee manufacturing facilities as a disaggregation under Scope 3, Category 15, to

allow for comparison against Ford’s 2035 SBTi target and 2030 reference target for operations.

Scope 3 — Significant GHG Emissions

Category 1 Purchased Goods and Services — Supplier Emissions

: This category includes supply chain emissions related to

vehicle production and centrally controlled non-production. Emissions are calculated using spend obtained from Ford’s internal

records. Emission factors are based on suppliers’ CDP-reported Scope 1, Scope 2, and Scope 3 categories 1, 4, and 5 emissions for

suppliers with third-party validated data, which are apportioned to Ford using the ratio of Ford spend to supplier revenue. For

suppliers without validated data, Ford applies US Environmentally-Extended Input-Output (USEEIO) emission factors adjusted

for inflation and electricity decarbonization since 2012, at a commodity level to Ford spend. Certain service components

procured from non-Ford suppliers and vehicle components sourced through other OEMs have been deemed immaterial and

excluded from this estimate.

Category 4 Upstream Transportation and Distribution

: Fuel-based calculations are made for some road transport where fuel

efficiency estimates are applied. All other freight modes are distance-based. Emissions are calculated by geographical region

and by freight mode using custom internal tools and the GHGP Transport Tool v 2.6 and v 2.7. Emission factors are from GHGP

and the Global Logistics Emissions Council (GLEC), which in turn reference EPA, UK Defra, and GREET factors, and include CO

O, and CH

. We include an additional 10% contingency factor to account for other elements including premium freight.

Category 11 Use of sold products — vehicle use (WTW)

: The emissions include all vehicles sold by Ford Motor Company and

its consolidated subsidiaries. (In prior years, emissions from vehicles sold by Ford’s unconsolidated investees were included but

are now reported in Category 15, Investments.) Ford uses compliance data in regions where vehicle fuel economy and CO

are

regulated. Emissions from unregulated vehicle types and regions are calculated with average data from the regulated vehicle

types and regions. Emissions are reported as well-to-wheels, which includes GHGs from both production and consumption of

the energy used by the vehicles, and as on-road, which converts regulatory laboratory test tailpipe emission data to on-road

emissions. Emission factors for energy production are sourced from the Argonne National Lab GREET model and the EU Joint

Research Center/EUCAR/CONCAWE (JEC) WTW Study v5 for fuels and the IEA World Energy Outlook for 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. In 2024,

tailpipe emissions of CH

and N

O were added to the Scope 3 vehicle emissions inventory. GHGs from mobile air conditioning

refrigerant leakage are also included. Biogenic CO

emissions from combustion of biofuel are reported separately.

Category 15 Investments:

This category includes the Scope 1, Scope 2 and Scope 3 (Category 11) GHG emissions from

unconsolidated investees where Ford does not have operational control. Scope 1 and Scope 2 emissions are calculated using

the methods described above. Scope 3 GHG emissions from vehicles sold by Ford’s unconsolidated investees are calculated

following the same methods as Category 11 but are scaled by Ford’s share of equity investment in the investee that sells

the vehicles.

Ford Integrated Sustainability and Financial Report — page 195

Fundamentals

Sustainability at Ford

Products and Services

Environment

Social

Governance

Sustainability Statement

Data

Appendices

General Information

Environment

Social

ESRS Index

Footnote

ESRS Metric

2024

Total GHG Emissions Intensity

Total location-based GHG emissions per net revenue (tons of CO

e/billion USD)

E1-6 53/54

1,930,282

Total market-based GHG emissions per net revenue (tons of CO

e/billion USD)

E1-6 53/54

1,925,452

Net revenue used to calculate GHG intensity (billion USD)

E1-6 55

185.0 B

Net revenue (other) (billion USD)

E1-6 55

0.0

Total net revenue (in financial statements) (billion USD)

E1-6 55

185.0 B

Footnote

ESRS Metric

2024

Biogenic Emissions of CO

(metric tons of CO

From combustion or bio-degradation of biomass not included in Scope 1

E1-6 AR 43c

From combustion or bio-degradation of biomass not included in Scope 2

E1-6 AR 45e

From combustion or bio-degradation of biomass not included in Scope 3

E1-6 AR 46j

16,515,636

E1: Climate Change

— continued

Ford Integrated Sustainability and Financial Report 2025

195

Methodology and Assumptions

Total GHG Emissions Intensity:

In 2024, Ford is reporting emissions for

unconsolidated investee manufacturing facilities as a disaggregation under Scope 3,

Category 15 instead of Scope 1 and 2. Prior year data has not been recalculated

with this disaggregation and is therefore not shown. The total GHG emissions

intensity calculation is a ratio of the total reported Scope 1, 2, and 3 GHG Emissions

and the Net Revenue reported in Ford’s 2024

Form 10-K

Report. Net revenue used

to calculate GHG intensity is equal to total net revenue from Ford’s 2024 Form 10-

K Report.

Biogenic Emissions of Scope 1 and 2 CO

In 2024, Biogenic Emissions of CO

are

reported for the consolidated accounting group only. Ford is not reporting our

unconsolidated investee manufacturing facilities’ biogenic emissions. Ford’s Scope

2 calculations use the U.S. EPA eGRID and International Energy Agency (IEA) grid

average emission factors and mixes, in line with the GHG Protocol Scope 2

Guidance. These location-based emission factor sources treat biomass for

electricity generation as a zero emissions source, consistent with the GHG Protocol

guidance for using U.S. EPA eGRID and IEA average emission factors.

Biogenic Emissions of Scope 3 CO

Scope 3 biogenic CO

emissions are from

combustion of bioethanol, biodiesel and renewable diesel during vehicle use that

are reported separately from Scope 3 categories 11 and 15. Biogenic emissions are

calculated over the lifetime of vehicles sold in 2024 (150,000 miles, assumed) and

assume regional prevailing biofuel blend shares in gasoline and diesel fuel is

constant over the lifetime. Biofuel blend shares are collected from governmental

fuel and bioenergy databases and reports including U.S. Energy Information

Administration, USDA Global Agricultural Information Network, and UK

Department for Transport.

Footnotes

Net revenue from Ford’s 2024

Form 10-K

Report, page 108.

Intensity calculation reflects actual net revenue versus rounded value shown.

Ford Integrated Sustainability and Financial Report — page 196

Fundamentals

Sustainability at Ford

Products and Services

Environment

Social

Governance

Sustainability Statement

Data

Appendices

General Information

Environment

Social

ESRS Index

Footnote

ESRS Metric

2024

Energy Attribute Certificates (EACs)

E1-6 AR45

Guarantees of Origin

Unbundled (total megawatt hours)

499,812

Unbundled (percent of total electricity)

10.8 %

International Renewable Energy Certificates (iRECs)

Unbundled (total megawatt hours)

309,691

Unbundled (percent of total electricity)

6.7 %

Renewable Energy Certificates (RECs)

Unbundled (total Megawatt hours)

Unbundled (percent of total electricity)

0 %

Bundled (total megawatt hours)

340

Bundled (percent of total electricity)

0 %

Utility Renewable and Nuclear Portfolio

Bundled (total megawatt hours)

267,262

Bundled (percent of total electricity)

5.8 %

Emission Free Energy Certificates (EFECs)

Unbundled (total megawatt hours)

455,542

Unbundled (percent of total electricity)

9.9 %

Purchase Power Agreement (PPA)

Bundled (total megawatt hours)

479,293

Bundled (percent of total electricity)

10.4 %

Retail Green Electricity

Bundled (total megawatt hours)

96,460

Bundled (percent of total electricity)

2.1 %

Footnote

ESRS Metric

2024

Total Electricity Consumption Covered by

Bundled EACs (percent)

E1-6 49b

18.3 %

Unbundled EACs (percent)

E1-6 49b

27.4 %

Total (bundled and unbundled) EACs (percent)

E1-6 AR 45d

45.7 %

E1: Climate Change

— continued

Ford Integrated Sustainability and Financial Report 2025

196

Methodology and Assumptions

Ford’s energy attribute certificate data is tracked in Ford’s GHG inventory based

on the Inventory Management Plan, which considers the GHG Protocol and

ISO 14064-1. Metrics calculations are based on documentation provided by our

Energy Attribute Certificate suppliers and utility providers. Bundled Energy

Attribute Certificates refer to energy attribute certificates that are bundled as part

of our utility contracts.

In 2024, use of energy attribute certificates is reported for the consolidated

accounting group only, including both manufacturing and non-manufacturing

facilities. Ford is not reporting energy consumption of our unconsolidated investee

manufacturing facilities in this table.

Footnotes

Footnotes are not applicable to this page

Ford Integrated Sustainability and Financial Report — page 197

Fundamentals

Sustainability at Ford

197

Products and Services

Environment

Social

Governance

Sustainability Statement

Data

Appendices

General Information

Environment

Social

ESRS Index

E2: Pollution

MATERIAL IMPACTS, RISKS, AND OPPORTUNITIES

RELATED TO POLLUTION

Impact I-5

ICE vehicles emit hydrocarbons, carbon monoxide,

nitrogen oxides, volatile organic compounds (VOCs) and

particulate matter during combustion affecting air quality.

Policies

Our

We Are Committed to Protecting Human Rights and

the Environment policy

states that “to protect the

environment, we:

•

Minimize vehicle criteria and greenhouse gas emissions

and increase energy efficiency, recognizing that life cycle

performance is a function of vehicle technology, energy

sources, and operating environment.”

For more information on this policy, see the table Policies

to Manage Material Impacts, Risks and Opportunities on

page 162.

Actions

Actions Ford is taking to manage this impact include:

•

Transition to Electric Vehicles:

The transition to

electric vehicles is expected to reduce greenhouse gas

emissions and criteria pollutants from vehicles, leading

to improved air quality.

The long-term outlook for air pollution considers the

global shift towards electric vehicles, acknowledging

the impact’s severity will decrease as ICE vehicles are

phased out.

•

Improving ICE Vehicle Efficiency and Emissions:

We manage emissions from ICE vehicles through

improvement in after-treatment technologies and

recommending cleaner fuel options where feasible,

including broadening hybrid powertrain offerings.

This is expected to reduce air pollution from ICE

vehicles during the electric vehicle transition.

Scope of Ford Actions

These actions directly support our policy objective to

minimize vehicle criteria and GHG emissions.

The actions are global in scope, impacting vehicle design

and product planning, and are aligned with regional

regulations. These actions are ongoing and affect all

identified time horizons.

Implementation of these actions is considered in Ford’s

financial planning process. For more information see

Investment in Material Topics on page 157.

Targets

Ford meets or exceeds all emissions standards globally,

therefore we do not have additional internal targets.

We track non-CO

air pollutants in accordance with local

regulatory requirements.

The automotive industry is subject to regulations

worldwide that govern product characteristics and

differ by region, country, and sometimes within national

boundaries. Regulators have enacted and are proposing

standards to address concerns regarding the

environment (including concerns about air quality).

These regulations vary, but generally require that over

time motor vehicles and engines emit less air pollution,

including oxides of nitrogen, hydrocarbons, carbon

monoxide, and particulate matter, and there are

associated increased reporting requirements.

Levels for each regulated pollutant are aligned with the

respective standard (see Regional Vehicle Emissions

Standards table).

Ford Integrated Sustainability and Financial Report 2025

Regional Vehicle Emissions Standards

United

States

Europe

China

Other Regions

Already

Compliant or

Surpassing

•

EPA Tier 3

standards

•

California’s

LEV III

standards

•

Euro 6e real

driving

emission

(RDE)

•

National

stage-6a (China

6a) LDV and

HDV emissions

standards

nationwide

•

National

stage-6b

(China 6b) LDV

emissions

standards in

five cities and

provinces

•

Argentina and

Uruguay:

Euro 5

•

Australia:

Euro 5

•

Brazil:

L7 PROCONVE L7

+ OBDBr3 +RDE

Monitoring

•

Cambodia:

Euro 4

•

Chile:

Euro 6b or

U.S. Tier 3 Bin 125

•

Colombia:

Euro 6b or

U.S. Tier 3 Bin 125

(diesel), Euro 4 (Gasoline)

•

Costa Rica:

Euro 4;

U.S. Tier 2

•

Middle East:

Standards based

on Euro 2, Euro 3,

Euro 4, Euro 5, and

Euro 6

•

New Zealand:

Euro

6b; U.S. Tier 3

•

Peru:

Euro 4;

U.S. Tier 2

•

South Africa:

Euro 2

•

Taiwan:

Euro 6.2;

U.S. Tier 2 Bin 5

•

Thailand:

Euro 5b

Being

Phased In

•

California’s

Advanced

Clean Cars II

•

Euro 7

•

National

stage-6b

(China 6b) LDV

and HDV

emissions

standards

nationwide

•

Australia:

Euro 6d

•

Brazil:

PROCONVE L8

Fleet Average Emissions

+ OBDBr3 + RDE

Compliance

•

Cambodia:

Euro 5

•

Chile:

Euro 6c or

U.S. Tier 3 Bin 70

•

Costa Rica:

Euro 6.1

or U.S. Tier 3

•

Colombia:

Euro 6c or

U.S. Tier 3 Bin 70

(diesel)

•

Peru:

Euro 6b or U.S.

Tier 3 Bin 125

•

South Africa:

Euro 5

•

Thailand:

Euro 6b

Ford Integrated Sustainability and Financial Report — page 198

Fundamentals

Sustainability at Ford

Products and Services

Environment

Social

Governance

Sustainability Statement

Data

Appendices

General Information

Environment

Social

ESRS Index

Impact I-6

Waste from mining may pollute local water resources.

Policies

Our

We Are Committed to Protecting Human Rights and

the Environment policy

includes direction to Ford and

our suppliers to protect the environment by supporting

safe and accessible drinking water in our manufacturing

operations and communities.

The

Supplier Code of Conduct

also requires our suppliers,

including raw material and mining suppliers, to support

access to clean and safe drinking water in local

communities and “avoid incidents and emergency

situations by taking proactive measures and be prepared

for emergencies in order to limit the impact on people

and the environment.”

For more information on these policies, see the table

Policies to Manage Material Impacts, Risks and

Opportunities on page 162.

Actions

Actions Ford is taking to support waste management

in our supply chain include:

•

Promoting Responsible Water Use: Ford promotes

closed loop water systems and responsible tailings

management, integrating water pollution into supply

chain due diligence.

•

Supplier Training: Training programs educate suppliers

on responsible water management, waste reduction,

and environmental impact mitigation, incorporating

best practices and international standards.

•

Data-Driven Improvement: Ford requires ISO 14001-

certified environmental management systems and is

expanding data collection on hazardous waste for more

precise measurement and targeted improvements in

the supply chain.

198

•

Collaboration on Sustainability: We are increasing the

number of suppliers participating in our best practice

program with M2030. M2030 supports suppliers in

establishing science-based targets and measuring,

managing, and reducing water use and waste. M2030

participants are expected to improve environmental

performance by setting targets, monitoring

environmental performance indicators, and driving

continuous improvement.

Scope of Ford Actions

These efforts support our policy objectives and supplier

expectations outlined in the We Are Committed to

Protecting Human Rights and the Environment policy

and Supplier Code of Conduct.

These actions encompass Ford’s global upstream value

chain, including suppliers involved in the mining and

processing of raw materials. Ford collaborates with

upstream suppliers to improve waste management

and prevent water pollution, minimizing mining waste.

The geographic scope is global, with specific

requirements tailored to local regulations. Affected

stakeholder groups include Ford, our suppliers, and local

communities near mining sites.

Promoting responsible water use, driving data-driven

improvements and encouraging collaboration on

sustainability are ongoing processes that could affect

all identified time horizons. Supplier training is

implemented annually.

Implementation of these actions is considered in Ford’s

financial planning process. For more information see

Investment in Material Topics on page 157.

Targets

Ford has policies related to waste management and

supporting clean water in our Supplier Code of Conduct.

We have not set targets related this impact because we

have a complex global supply chain and Ford’s direct

control over supplier’s actions and targets is limited.

However, we assess the effectiveness of environmental

policies and actions within our supply chain, including

water usage and waste management, through various

means such as ongoing due diligence, site assessments,

and the use of M2030 to support suppliers in their water

usage and waste reduction efforts. Currently, there is no

defined level of ambition related to these processes.

E2: Pollution

— continued

Ford Integrated Sustainability and Financial Report 2025

Ford Integrated Sustainability and Financial Report — page 199

Fundamentals

Sustainability at Ford

Products and Services

Environment

Social

Governance

Sustainability Statement

Data

Appendices

General Information

Environment

Social

ESRS Index

E3: Water and Marine Resources

MATERIAL IMPACTS, RISKS, AND OPPORTUNITIES

RELATED TO WATER AND MARINE RESOURCES

Impact I-7

Critical minerals mining requires significant water use

which may impact limited freshwater supplies

Policies

Our

We Are Committed to Protecting Human Rights and

the Environment policy

states that “to protect the

environment, we:

•

Mimic ecosystem performance, eliminate waste, divert

waste from landfill to products, reduce freshwater

usage, reduce single use plastic, and support safe and

accessible drinking water in our manufacturing

operations and communities.”

All Ford operations are covered by this policy and we

require our suppliers and expect partners and joint

ventures to adopt and enforce similar policies and extend

them to their own supply chain.

Our

Supplier Code of Conduct

outlines our due diligence

and assurance requirements for suppliers, including

mining suppliers and mineral processors. The Supplier

Code of Conduct states “we require our suppliers to:

ó In alignment with the United Nations CEO Water

Mandate, reduce freshwater usage in their operations

and support access to clean and safe drinking water

in local communities.”

For more information on these policies, see the table

Policies to Manage Material Impacts, Risks and

Opportunities on page 162.

Actions

Actions Ford is taking to support minimal freshwater

usage in our supply chain include:

•

Supplier Requirements:

Ford incorporates contractual

requirements for suppliers to maintain ESG

management systems aligned with Ford’s policies.

Raw material suppliers must undergo an IRMA or third-

party equivalent audit covering environmental aspects,

including water usage and management.

•

Due Diligence:

Ford conducts due diligence

assessments of potential suppliers, evaluating their

ESG credentials and reviewing their public policies,

risk mitigation history, and relevant country-level risks

to mitigate the impact of water usage. Water risk

assessments are integrated into the supply chain due

diligence process, identifying and addressing potential

water-related challenges. Ford’s due diligence efforts,

as required by law, include onsite assessments.

•

Supplier Assessments:

Ford assesses supplier’s

environmental policies through a Drive Sustainability

(DS) Sustainability Assessment Questionnaire (SAQ),

including demonstrating the existence of an

environmental policy that addresses water quality

and consumption management.

Scope of Ford Actions

These actions directly support our policy objectives

and supplier expectations of reducing freshwater usage

and supporting access to clean drinking water in local

communities.

The scope includes activities related to water usage in

the supply chain, including raw material extraction and

processing. Our focus is global, with particular attention

to water-stressed regions. Affected stakeholder groups

include Ford, our suppliers, local communities near

mining sites, and regulatory bodies.

These actions are ongoing and could affect all identified

time horizons.

Implementation of these actions is considered in Ford’s

financial planning process. For more information see

Investment in Material Topics on page 157.

Targets

Ford has policies related to water management in our

Supplier Code of Conduct. We have not set targets

related this impact because we have a complex global

supply chain and Ford’s direct control over supplier’s

actions and targets is limited.

However, we are monitoring water stewardship policies

and actions in our value chain through various means

such as site assessments, and the use of our DS SAQ to

assess supplier environmental policies (including water

quality and consumption management). We also use

M2030 to support suppliers in their water usage and

waste reduction efforts. Currently, there is no defined

level of ambition related to these processes.

199

Ford Integrated Sustainability and Financial Report 2025

Ford Integrated Sustainability and Financial Report — page 200

Fundamentals

Sustainability at Ford

Products and Services

Environment

Social

Governance

Sustainability Statement

Data

Appendices

General Information

Environment

Social

ESRS Index

E5: Resource Use and Circular Economy

MATERIAL IMPACTS, RISKS, AND

OPPORTUNITIES RELATED TO RESOURCE

USE AND CIRCULAR ECONOMY

Impact I-8

Heavy reliance on a range of natural resources may

contribute to resource depletion and associated impacts

Policies

Our

We Are Committed to Protecting Human Rights and

the Environment policy

states that “to protect the

environment, we:

•

Use recycled and renewable materials, reduce

substances of concern, and improve recyclability of our

products through material selection and product design.”

All Ford operations are covered by this policy and 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.

The

Supplier Code of Conduct

mandates adherence to

environmental and social standards, including requiring

suppliers to:

•

“Use recycled and renewable materials where possible

in packaging.

•

Improve recyclability of Ford products through material

selection and product design as approved by Ford.

•

Work to eliminate single use plastics throughout the

manufacturing process.”

For more information on these policies, see the table

Policies to Manage Material Impacts, Risks, and

Opportunities on page 162.

Actions

200

Incorporating renewable and recycled materials in our

vehicles allows us to reduce waste, conserve natural

resources, and potentially improve vehicle quality and

performance. Actions Ford is taking to manage our

reliance on natural resources include:

•

Use of Renewable Materials in Vehicles: Ford has used

various renewable plant-based materials in its products

including wheat straw, rice hulls, and coffee chaff.

These were chosen for their suitability as reinforcement

materials, their ability to offset the use of virgin

materials, and because they mostly originate as waste

streams from other industries. Current efforts focus on

increasing the content and use of scalable sustainable

materials, including cellulose, and castor oil.

•

Recycled and Renewable Plastics: Recognizing the high

metal recycling rate in vehicles, our primary focus is

increasing the use of recycled and renewable content

in plastics. To support this, Ford is requiring new

vehicle designs in North America, Europe and Türkiye

to use 20% recycled and renewable content in vehicle

plastics starting in 2025, and in China 10%.

This has been integrated into company deliverables

and procedures for new programs. To track the

recycled and renewable plastic content in vehicles, a

database tool has been modified to allow engineers to

specify the amount of recycled and renewable plastics

used, by weight, in each component of a vehicle.

•

Closed Loop Aluminum Recycling: Aluminum recycling

in Ford plants reduces the need for primary metal. In

collaboration with aluminum sheet suppliers, we have

developed unique alloys that enable us to increase the

reuse of aluminum within our own plants. In addition

to recovering aluminum scrap during parts stamping,

our system separates the various aluminum alloys so

they can be recycled back into fresh alloy for new

vehicles. Making recycled aluminum takes around 5%

of the energy needed to make new aluminum,

according to the Aluminum Association, and reduces

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.

•

Recycling and Remanufacturing Vehicle Parts: Ford

collaborates with parts recyclers and remanufacturers

to enable the use of recycled and remanufactured parts

in vehicle repairs, reducing the need for new materials.

Ford works with dealers and remanufacturing experts

to collect, evaluate and certify used parts for repair and

reuse, offering them as alternatives to new components.

Ford also invests in recycling infrastructure research to

expand its recycling capabilities.

Scope of Ford Actions

These actions support the requirements to protect the

environment by using recycled and renewable materials

and improving recyclability outlined in Ford’s We Are

Committed to Protecting Human Rights and the

Environment policy and Supplier Code of Conduct.

The actions being taken to reduce reliance on natural

resources involve upstream (sourcing, materials),

Ford (manufacturing, product design, research and

development), and downstream (end-of-life

management) aspects of the value chain.

Resource depletion driven by automotive material

demands is a global consideration, impacting resource

extraction locations, manufacturing hubs, and consumer

markets worldwide. Multiple stakeholders are affected,

including suppliers, employees, customers, communities,

investors, and government/regulatory bodies.

These actions are ongoing and could affect all identified

time horizons.

Implementation of these actions is considered in Ford’s

financial planning process. For more information see

Investment in Material Topics on page 157.

Targets

Ford did not have 2024 targets related to this impact.

However, starting in 2025, Ford is requiring new vehicle

designs in North America, Europe and Türkiye to use 20%

recycled and renewable content in vehicle plastics, and

in China 10%.

Effectiveness of actions being taken to reduce reliance

on natural resources are tracked within each

responsible organization.

Ford Integrated Sustainability and Financial Report 2025

Ford Integrated Sustainability and Financial Report — page 201

Fundamentals

Sustainability at Ford

Products and Services

Environment

Social

Governance

Sustainability Statement

Data

Appendices

General Information

Environment

Social

ESRS Index

RESOURCE INFLOWS

Steel and Aluminum

Ford Motor Company sources steel and aluminum in the

form of sheet coils, lineal extrusions, ingots, and billets

directly from raw material suppliers for use in stamping,

hydroforming, casting, and forging processes essential

for producing automotive parts. Recognizing the

environmental impact associated with these resource

inflows, we are committed to a circular and sustainable

economy through innovations in integrated

computational materials engineering (ICME), advanced

manufacturing techniques, and advanced product design

and optimization.

Our strategies include reducing material consumption

by optimizing part design and manufacturing processes,

increasing the use of recycled content by collaborating

with suppliers, extending product end-of-life through

design for durability, repairability, and recyclability, and

developing closed loop systems to recover and reuse

end-of-life vehicle materials. These research efforts are

informed by Life Cycle Assessments (LCAs) that guide our

material development and process improvements.

We engage with our suppliers to promote sustainable

sourcing practices and are implementing initiatives to

improve the traceability of our raw materials. By

prioritizing these strategies, we aim to reduce the

environmental impact associated with our resource

inflows and contribute to a more circular and sustainable

automotive industry.

Plastics

Ford Motor Company sources plastic and elastomeric

automotive parts from suppliers. While most polymeric

materials used for the manufacture of such parts are

sourced from petroleum feedstocks, our commitment

to a circular and sustainable economy drives innovation

to reduce these resource inflows. We require our plastic

parts and materials suppliers to reduce environmental

impact from virgin plastics and petroleum feedstocks

where possible. Our strategies for reducing

environmental impact include incorporating recovered,

recycled, and renewable feedstocks to displace

petroleum derived feedstock for polymeric materials;

reducing material usage through optimization of part

design; and reducing manufacturing emissions through

novel process technologies.

E5: Resource Use and Circular Economy

— continued

Ford Integrated Sustainability and Financial Report 2025

201

Ford Integrated Sustainability and Financial Report — page 202

Fundamentals

Sustainability at Ford

Products and Services

Environment

Social

Governance

Sustainability Statement

Data

Appendices

General Information

Environment

Social

ESRS Index

Ford Integrated Sustainability and Financial Report 2025

Sustainability Statement

Social

202

203

S1: Own Workforce

207

S2: Workers in the Value Chain

215

S3: Affected Communities

219

S4: Consumers and End Users

221

Entity Specific

Ford Integrated Sustainability and Financial Report — page 203

Fundamentals

Sustainability at Ford

Products and Services

Environment

Social

Governance

Sustainability Statement

Data

Appendices

General Information

Environment

Social

ESRS Index

S1: Own Workforce

203

Ford Integrated Sustainability and Financial Report 2025

OUR WORKFORCE

The types of employees in Ford’s workforce subject to

material impacts and subject to Ford’s policies include

all regular, part-time, supplemental, and temporary

employees. Non-employee resources such as agency

resources, on-site purchased service resources, and

independent contractors are also subject to material

impacts and Ford policies while they are performing

services for Ford.

The material negative impacts related to own workforce

are systemic in locations where Ford operates. The

material impacts and risks identified relate to Ford’s

own workforce globally.

Ford conducts an annual risk assessment of our global

operations using the Responsible Business Alliance (RBA)

Risk Landscape. In 2024 we identified 51 manufacturing

and warehouse facilities within Ford’s operations that

have a heightened potential risk for forced labor and

child labor based on the RBA Product Risk Landscape.

We have measures in place that are evaluated and

updated to mitigate risks of forced labor or child labor.

The effectiveness of actions and initiatives to deliver

outcomes for our workforce are tracked through reviews

of progress towards objectives that can occur as often as

weekly and culminate in year-end performance reviews.

MATERIAL IMPACTS, RISKS, AND OPPORTUNITIES

RELATED TO OWN WORKFORCE

Impact I-9

The transition to electrified vehicles will require different

skills and qualifications in our workforce.

Policies

Ford does not currently have policies related to this

impact as lower-than-anticipated industrywide electric

vehicle adoption rates and near-term pricing pressures

have led us, and may in the future lead us, to adjust our

investments, spending, production, and/or product or

future technology launches to better match the pace

of electric vehicle adoption.

Ford’s ability to attract, develop, grow, support, and

reward talent remains critical to our success and

competitiveness.

Actions

Talent attraction at Ford is evolving with the

transformation of our business.

•

We are sourcing and attracting candidates from

multiple industries and regions of the world.

•

We continue to recruit talent from traditional

industries, such as manufacturing and consulting,

and have been successful in attracting talent from

non-traditional industries, specifically the technology

industry. This is important as we build our expertise

in growth areas such as software, electrification, and

integrated services.

•

Ford provides select opportunities to employees

based on business needs to reskill and/or upskill with

programs designed to prepare them for evolving job

requirements and technological advancements

•

Ford’s Learning & Development and Workforce

Development teams continue to partner with schools

and organizations to increase awareness of job

opportunities and potential employment pathways

These actions allow Ford to mitigate potential negative

impacts related to the transition of our workforce where

appropriate.

Scope of Ford Actions

Actions listed involve Ford’s global workforce and

manufacturing footprint. Affected stakeholders include

current employees as well as community members who

may be eligible for these opportunities. The time horizon

will depend on Ford’s vehicle production plans.

Implementation of these actions is part of Ford’s annual

capital spending. For more information see Investment in

Material Topics on page 157.

Targets

Market conditions are dynamic and Ford must have a

variety of skilled workers to remain flexible, therefore we

have not set targets related to having certain skillsets in

our workforce. Ford does not currently have a process to

track the effectiveness of actions related to this impact.

Ford plans to continue providing opportunities to

connect community members with manufacturing

careers. We refine our product cycle plan to provide

customers freedom to select the powertrain that best

suits their needs and maintain manufacturing flexibility

to meet shifting customer demand.

Risk R-5

Worker/union partner dissatisfaction and conflicts could

potentially result in higher costs, less operational

flexibility and operational disruption.

Policies

Our

We Are Committed to Protecting Human Rights and

the Environment policy

states that “to protect and

respect human rights:

•

We recognize and respect employees’ rights to

freedom of association and collective bargaining.

We will work with recognized employee representatives

to promote the interests of employees. We do not

discriminate or retaliate against any employees,

including those participating in a trade union. Even

where there is no representation by unions, we provide

opportunities for employee and external stakeholder

concerns to be heard

•

Comply with applicable laws regulating hours of work

and support a living wage by providing compensation

and benefits that meet or exceed legal requirements”

For more information on this policy, see the table Policies

to Manage Material Impacts, Risks and Opportunities on

page 162.

Actions

Actions Ford is taking to mitigate this risk include:

•

Ford engages in collective bargaining around the globe

with our respective union counterparts

•

In Europe, Ford has a longstanding European Works

Council. Working conditions and terms of employment

are influenced by collective bargaining agreements,

where applicable, at the country level and based on the

employee type (salary, hourly, management)

•

In 2024, full-time hourly United Auto Workers (UAW)

represented employees in the U.S. received a general

wage increase in accordance with the 2023 UAW-Ford

Collective Bargaining Agreement

Scope of Ford Actions

Ford engages in collective bargaining across its

global operations.

Implementation of this action is considered in Ford’s

financial planning process. For more information see

Investment in Material Topics on page 157.

Ford Integrated Sustainability and Financial Report — page 204

Fundamentals

Sustainability at Ford

Products and Services

Environment

Social

Governance

Sustainability Statement

Data

Appendices

General Information

Environment

Social

ESRS Index

Metrics and Targets

Ford has engagement processes in place to evaluate

worker sentiment and channels for employees to voice

concerns, therefore we have not set targets related to

this risk. We also do not have a process to track the

effectiveness of our collective bargaining related policies.

However, we do track the amount of our workforce that

is covered by collective bargaining agreements.

Collective Bargaining and Social Dialogue

Collective Bargaining

Coverage

Social

Dialogue

Coverage

Rate

EEA

Employees

Non-EEA

Employees

EEA Workplace

Representation

0-19%

Hungary

20-39%

40-59%

60-79%

80-100%

Germany,

Spain

Germany, Spain

[footnotes]: (for countries with >50 employees representing >10% of total employees

In 2024, 93% of Ford employees in the EEA were covered

by collective bargaining agreements.

Ford’s collective bargaining metrics in EEA markets include

salary, hourly, full time and part time employees including

Ford Credit (regardless of status — active or on leave).

Primarily, tariff and compensation agreements substantiate

collective bargaining agreements in Germany. In Spain,

works council and committees are used to agree worker

statutes.

Risk R-6

As the legal environment continues to evolve,

Diversity, Equity, and Inclusion efforts in the U.S.

are under public scrutiny.

Policies

Per Ford’s

Code of Conduct

, “we strive to provide an

inclusive work environment in which different ideas,

perspectives, and beliefs are respected. Violations of

the company’s equal opportunity policies may result

in discipline, up to and including termination.”

Ford’s We Are Committed to the Goal of Equal

Opportunity policy regarding hiring and other aspects of

the employment relationship requires that opportunities

be available “on a non-discriminatory basis, without

regard to race, color, religion, age, gender, sexual

orientation, gender identity, national origin, disability,

veteran status, genetic information, pregnancy, or any

other characteristic protected by state or local law.”

For more information on these policies, see the table

Policies to Manage Material Impacts, Risks and

Opportunities on page 162.

Actions

We know that leveraging diverse teams is not only the

right thing to do, but also smart business, and that

requires us to create and protect a culture in which all

team members can do their best work.

Ford is working to build a culture of inclusion and respect

for all employees. Events like Respect Activations in our

U.S. plants enable leaders and employees to discuss what

respect means to them and why it is important to Ford.

We plan to continue leveraging events and initiatives to

create a respectful, safe, and inclusive workplace.

Scope of Ford Actions

This action supports Ford’s Code of Conduct and We Are

Committed to the Goal of Equal Opportunity policy.

Actions taken at our U.S. plants involve employees at

those manufacturing facilities and are ongoing, covering

multiple time horizons.

Targets

Ford does not currently have quantitative targets related

to this risk because the legal environment and

stakeholder expectations around Diversity, Equity, and

Inclusion are continuing to evolve. Ford continues to

monitor these expectations.

POLICIES RELATED TO OWN WORKFORCE

Respecting the Rights of Our Workforce

Our

We Are Committed to Protecting Human Rights and

the Environment policy

states that we recognize and

respect employees’ rights to freedom of association and

collective bargaining. We work with recognized

employee representatives to promote the interests of

employees. We do not discriminate or retaliate against

employees, including those participating in a trade union.

Where there is no representation by unions, we provide

opportunities for employee and external stakeholder

concerns to be heard.

The We Are Committed to Protecting Human Rights and

the Environment policy also states that we commit to

opposing harassment or discrimination of any form,

support diversity and women’s rights, provide a healthy

and safe working environment, protect consumer and

employee data privacy, and prohibit bribery, even in

countries where it may be tolerated or condoned.

Ford monitors compliance with these commitments

through manufacturing site assessments to determine

whether our practices align with our stated policies and

ethical standards. Employees have access to grievance

mechanisms and feedback channels to report violations.

Additionally, we provide training and awareness

programs to educate employees on our corporate

policies and Code of Conduct.

Assessing Human Rights Risks Within Our Workforce

Consistent with the UN Guiding Principles on Business

and Human Rights, we have due diligence processes to

prevent and mitigate human rights and environmental

impacts. We identify and assess actual or potential risks

and impacts through our formal Human Rights &

Environment Saliency Assessment which includes

consultation with relevant stakeholders.

Enabling Remedy for Human Rights Impacts

To enable remedy for human rights impacts, our We Are

Committed to Protecting Human Rights and the

Environment policy requires that we:

•

“Provide operational-level grievance mechanisms

through our reporting mechanisms which are

accessible to our employees, suppliers, and the public

•

Provide appropriate remedies when non-compliance

occurs and bring any violation to an end

•

Do not retaliate against good faith reports of violation

of policy or law, per our Code of Conduct.”

For more information on this policy, see the table Policies

to Manage Material Impacts, Risks and Opportunities on

page 162.

Policy Alignment with International Frameworks

Our We Are Committed to Protecting Human Rights and

the Environment policy is aligned with multiple

International Frameworks, including the UN Guiding

Principles on Business and Human Rights (UNGPBHR),

the OECD Guidelines For Multinational Enterprises on

Responsible Business Conduct, and the ILO Declaration

on Fundamental Principles and Rights at Work. See the

table Policies to Manage Material Impacts, Risks and

Opportunities on page 162 for more information.

We commit to upholding labor rights and promoting

safe and fair working conditions aligned with the ILO

Declaration on Fundamental Principles and Rights at

S1: Own Workforce

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Environment

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ESRS Index

Work. The OECD Guidelines inform our approach to

corporate responsibility, guiding ethical business conduct

and transparency. Our policy’s adherence to the UN

Women’s Empowerment Principles underscores our

commitment to gender equality and empowering women

in the workplace. Lastly, we respect UNDRIP and are

committed to upholding the rights of Indigenous

Peoples, seeking their Free, Prior, and Informed Consent

(FPIC) for activities affecting their lands and resources.

By integrating these frameworks into our policies, we

work to protect human rights and the environment, and

provide an approach to addressing potential human

rights impacts in our business activities.

Policy on Human Trafficking, Forced Labor,

and Child Labor

Our

We Are Committed to Protecting Human Rights and

the Environment policy

states that we:

•

“Prohibit the use of child labor in any form. We will not

employ anyone below the age of 15, unless as part of a

government-authorized job training or apprenticeship

program that clearly benefits the participants

•

Prohibit the use of forced labor, compulsory labor and

slavery in any form and do not tolerate any forms of

abusive disciplinary practices

•

Prohibit the use or support of human trafficking

•

Follow ethical recruiting practices, including but not

limited to prohibiting the use of misleading or

fraudulent practices while offering employment, the

use of recruitment fees paid by employees, and the

confiscating, destroying, concealing, and/or denying

of access to employee identity documents.”

For more information on this policy, see the table Policies

to Manage Material Impacts, Risks and Opportunities on

page 162.

Equal Opportunity Policy

Per Ford’s

Code of Conduct

, we strive to provide an

inclusive work environment in which different ideas,

perspectives, and beliefs are respected. The Code of

Conduct includes our We Are Committed to the Goal

of Equal Opportunity policy which requires that there

be no discrimination because of race, color, religion,

age, gender, sexual orientation, gender identity, national

origin, disability, veteran status, genetic information, or

pregnancy, and other factors that may be covered by

local law.

For more information on this policy, see the table Policies

to Manage Material Impacts, Risks and Opportunities on

page 162.

PROCESSES FOR ENGAGING WITH OWN

WORKFORCE

Direct Engagement with Employees

Ford’s global salaried employees participate in an annual

employee Voice survey through our internal survey

platform. In 2024 we began piloting a Voice survey for

non-salaried employees that will be cascaded globally

to eligible non-salaried employees in 2025.

Ford also has a monthly DASH survey that gathers

feedback from global salaried employees using

convenience sampling. An anonymous version of the

survey is available to U.S. non-salaried employees. The

DASH survey is part of Ford’s effort to expand employee

listening capabilities aimed at improving the overall

employee experience. Expansion to global non-salaried

employees is planned for 2025.

Leadership Responsibility

The Chief People and Employee Experience Officer has

operational responsibility for ensuring that employee

engagement occurs and that the results inform decisions

and actions in support of, and aligned with, the Ford

Operating System behaviors and strategic objectives.

Employee Engagement in Sustainability

As part of Ford’s 2024 DMA, global salaried employees

were invited to respond to a survey to indicate what

sustainability topics Ford should prioritize.

Global Framework Agreements

Ford has a Global Framework Agreement (GFA) with

Industrial Global Union that reiterates our commitments

to human rights with our global labor community. In our

GFA, Ford acknowledges the rights of its employees to

raise concerns. Any employee who, acting individually

or jointly with other workers, considers that they have

grounds for concern has the right to raise such concern

without suffering retaliation, and to have such concern

examined pursuant to an appropriate procedure.

This information is communicated to our workforce.

As part of Ford’s U.S. collective bargaining agreement

with the UAW, covered U.S. hourly workers have access

to a grievance procedure. Once filed, the grievance

proceeds through a multi-stage process, which may

culminate in a hearing and decision by a neutral

arbitrator. In addition, the 2023 UAW-Ford collective

bargaining agreement contains language reaffirming

Ford’s commitment to fair and equal treatment of all

employees. Employees are able to raise concerns related

to harassment, discrimination, or retaliation directly with

the company to investigate.

Assessing Employee Engagement Results

The effectiveness of the annual Voice survey is assessed

by measuring the participation rate. Results of the survey

are shared with senior leadership, who are expected

to share the results in discussion with their team, listen

to their team’s feedback, and develop actions based on

the results. Additionally, action plans reflect elements of

Ford’s Operating System behaviors in alignment with the

company’s strategic objectives.

Engaging with Employee Perspectives

To gain insight into the perspectives of employee groups,

results from the Voice survey can be cut by skill team,

tenure, country/region, working arrangement, and salary

grade. Additionally, the Voice team assesses survey

responses and escalates relevant findings to the People

Matters department, to allow the concerns and

perspectives of these groups to be considered and

addressed appropriately.

GRIEVANCE MECHANISMS AND REMEDIATION

Channels for Employees to Raise Concerns

The online platform, SpeakUp.ford.com, can be used by

anyone to report concerns involving Ford or Ford

employees’ compliance with Corporate Policies, Code of

Conduct, the law, or other 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 Ford’s Code of Conduct and our

internal We Are Committed to Speaking Up and

Eliminating Retaliation policy include an explanation

of the process after a report is filed.

Additional internal channels are in place for employees

to report specific concerns related to workplace security,

safety of our products and services, and legal or ethics

related issues.

S1: Own Workforce

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Providing Remedy for Negative Impacts

206

Ford has a process in place to review and respond to

reports. Ford’s We Are Committed to Speaking Up and

Eliminating Retaliation policy requires information

related to reports to be kept confidential and shared only

as needed to carry out an investigation by designated

individuals. The policy also prohibits retaliation against

anyone who raises a good-faith concern in connection

with a potential violation of the

Code of Conduct

company policies, or the law.

There are specific channels for handling employee-

related 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 We Are Committed

to Speaking Up and Eliminating Retaliation policy.

Addressing Issues Raised

Once a report has been filed, the report is logged into

our internal grievance tracking system and then routed

to the appropriate internal resource. When warranted,

an investigation plan is developed and the investigation

proceeds. The allegations are then verified or found to

be without merit. The process concludes with the

appropriate action being taken.

The investigation proc

ess enables nec

essary information

to be gathered and assessed and confirms issues are

properly resolved. We may evaluate if any process or

program enhancements are needed, or if policies or

procedures need alteration.

Supporting the Availability of Reporting Channels

Ford supports the availability of grievance channels

for employees by communicating their accessibility.

This includes annual Code of Conduct training sessions

that feature a section on “speaking up and preventing

retaliation,” internal communications such as “What to

Watch” emails, and employee surveys like the Voice and

Quick Voice surveys, which also invite employees to

report specific concerns using the SpeakUp platform.

Collecting Feedback

To assess whether employees are aware of processes

that allow them to raise their concerns and have them

addressed, the annual Voice survey includes a question

that asks employees whether Ford provides multiple

ways and outlets for them to share feedback about

their experience as an employee. To assess whether

employees trust these processes, the annual Voice

survey also asks whether employees believe that the

results from the survey will be used to make decisions

or changes at Ford.

Policies Against Retaliation

Ford’s We Are Committed to Speaking Up and

Eliminating Retaliation policy prohibits retaliation.

No one at Ford is permitted to take adverse action

against another person for reporting a suspected

violation in good faith or for assisting with an

investigation. Violations of this policy may lead to

disciplinary action up to and including termination.

S1: Own Workforce

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Data

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General Information

Environment

Social

ESRS Index

WORKERS IN THE VALUE CHAIN

For the purposes of these disclosures, workers in the

value chain are defined as workers in Ford’s supply chain,

including Tier 1 and Tier 2+ suppliers.

The material negative impacts related to workers in the

value chain are systemic in contexts where Ford or our

suppliers or business partners operate. The material

impacts and risks identified relate to Ford’s supply chain

globally.

MATERIAL IMPACTS, RISKS, AND OPPORTUNITIES

RELATED TO WORKERS IN THE VALUE CHAIN

Impact I-10

Mined materials are associated with higher risks of

child labor.

Impact I-11

Suppliers may be complicit of exploitative and

forced labor.

Policies Related to Child Labor

Per our

Supplier Code of Conduct

, we require our

suppliers to:

•

“Meet the minimum working age in any region where

they operate while prohibiting employment of anyone

below the age of 15, even if permitted under local law.

Government-authorized job training or apprenticeship

programs that clearly benefit the participants are the

only exceptions to this requirement

•

Responsibly manage student workers by performing

rigorous due diligence on educational partners, keeping

appropriate student work records, and protecting

student workers’ rights

•

Prohibit workers under the age of 18 from performing

work that could jeopardize their health or safety,

including night shifts, overtime, or hazardous work

in compliance with ILO Worst Forms of Child Labour

Convention (No. 182)

•

Implement an appropriate mechanism to verify that

the age of workers complies with the ILO Minimum Age

Convention (No. 138), and provide substantiation of this

verification mechanism upon request

•

Ensure that all recruitment efforts for workers,

including recruitment performed by third-party

contractors, include mechanisms to verify that the age

of potential applicants complies with the ILO Minimum

Age Convention (No. 138)

•

Cease employment of the child/children and take

reasonable measures to enroll the child/children in a

remediation/education program if child labor is

discovered in its own facilities or in their supply chain.

•

Enable appropriate measures to minimize risks,

including risks related to the direct or indirect financing

of armed conflict, serious violations of human rights

such as child labor, forced labor and slavery, unethical

business conduct, or environmental damage.”

For more information on these policies, see the policy

table on page 162.

Policies related to Forced Labor

Per our Supplier Code of Conduct, we strictly prohibit

our suppliers from both using and supporting human

trafficking. We require our suppliers to:

•

“Confirm that work is conducted on a voluntary basis.

Employees should be free to terminate employment

without penalty by giving reasonable notice per their

contract, if any, and in accordance with applicable laws

•

Prohibit the use of bonded, indentured or exploitive

prison labor

•

Not engage in activities intended to restrict worker

freedom of movement

•

Not allow physically or psychologically cruel, inhuman

or degrading treatment.”

We require our suppliers to not use nor condone forced

labor, compulsory labor, or slavery in any form and to

not employ any form of abusive disciplinary practices.

Our suppliers must follow ethical recruiting practices.

We prohibit our suppliers from:

•

“Misleading or defrauding potential workers about the

nature of the work

•

Asking employees to pay recruitment fees or pay off a

loan by working for an agreed-upon or unclear period

of time for little or no salary, with the work performed

greatly exceeding the worth of the initial loan

•

Confiscating, destroying, concealing, and/or denying

access to employee passports and other government-

issued identity documents.”

For more information on these policies, see the table

Policies to Manage Material Impacts, Risks and

Opportunities on page 162.

Actions for Preventing Child and Forced Labor

Actions Ford is taking to manage these impacts include:

•

Risk assessments: We aim to identify relevant human

rights and environment-related risks at suppliers, in

particular those covered by supply chain due diligence

obligations, including the German Supply Chain Due

Diligence Act. When we identify human rights and

environment-related risks, we engage with the buyer

and supplier to create a corrective action plan with the

supplier and implement sufficient risk management

measures.

•

Requirements for suppliers and their sub-tiers: We

make risk-based use of contractual mechanisms such

as third-party audits and on-site assessments to

monitor our suppliers. To align with forced labor and

supply chain due diligence legislation, in 2023 we

updated our Supplier Code of Conduct and supplier

contractual obligations to require suppliers to share

sub-tier supply chain information upon request. We

have utilized these updates to conduct supply chain

audits for electric vehicle batteries, Value Stream

Mapping, and traceability data. We are expanding our

supply chain mapping capabilities by migrating them

into a third-party supply chain platform designed to

integrate data across multiple Ford supply chain

activities. This system enables us to conduct supply

chain investigations when issues are identified and to

confirm sub-tier suppliers and collect evidence of these

connections within our highest risk categories.

•

Post-sourcing risk assessments: Ford has a tailored risk

management system in place to handle human rights

and environment-related risks and uses due diligence

processes to identify and prevent human rights risks,

including child labor and forced labor risks, along our

supply chain.

We have developed a risk assessment process to

identify and drive action on our highest risk Tier 1

suppliers first. We first perform an inherent analysis

based on country risk, industry risk, and dollars spent

with each supplier site. From this we develop a list of

potential inherently high-risk suppliers.

We also evaluate suppliers’ alignment with Ford’s

Supplier Code of Conduct utilizing the Drive

Sustainability (DS) Sustainability Assessment

Questionnaire (SAQ). The third-party validated DS

SAQ asks suppliers for evidence of a formal policy,

management system, and training covering human

rights and working conditions. If a supplier does not

have measures in place to prevent forced labor and

child labor, they are prioritized for an audit and must

implement corrective actions for any gaps.

S2: Workers in the Value Chain

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Environment

Social

ESRS Index

Once the DS SAQs are received, we conduct a risk

analysis to determine which suppliers will require an

audit based on severity and likelihood. Third-party on-

site audits are then conducted on potential high-risk

Tier 1 suppliers in accordance with the Validated

Assessment Program or Responsible Supply Chain

Initiative Protocol. Following an audit, suppliers submit

corrective action processes to strengthen any areas

where non-conformances were found. We identify

material impacts on supply chain workers through third-

party audits and grievance mechanisms.

•

Corrective actions: When potential child labor or forced

labor issues are identified in our supply chain, we

initiate an investigation to determine whether the

supplier is providing parts to Ford. In case of

substantiated knowledge of violations of human rights,

Ford will implement appropriate preventive measures

and take appropriate remedial actions to immediately

end or mitigate such violations. This may include

working with our Tier 1 supplier to conduct an RBA

audit to identify what, if any, child labor or forced labor

flags are present and work with the audited supplier

to correct critical non-compliances and remediate any

identified issues. Our corrective action process (CAP)

monitors compliance and prevents future risks.

Closure audits take place after the corrective actions

are developed and measure the effectiveness of

these actions.

•

Required reporting: Per our

Policy Statement on

Ford’s Human Rights Strategy, Policies and Processes

“Adherence to our

Supplier Code of Conduct

requires

that suppliers report and remediate any non-

compliance and, when issues are identified,

transparently report their remediation progress.

Ford maintains an open dialogue with suppliers and

business partners to find a common solution to end

or mitigate the violation. To accomplish these goals,

we conduct a preliminary assessment of the violation

and its impact, mitigate and contain the violation and

its negative impacts in the short-term, and provide

appropriate remedies when non-compliance occurs

and bring any violation to an end.”

•

Mapping mica and cobalt supply chains: Mica and

cobalt have a higher association with child labor risks

in the upstream supply chain. In 2021, we initiated

electric vehicle battery material supply chain audits

with RCS Global Group to determine our sub-tier

suppliers for cobalt, lithium, and nickel to the mine

to determine risks at the supplier level. In 2024, we

expanded our supply chain auditing and mapping to

include mica. Ford also joined the Responsible Mica

Initiative in 2024, a global coalition for action to help

eliminate unacceptable working conditions and

eradicate child labor by 2030.

•

OECD due diligence: In compliance with the U.S. Dodd

Frank Act, section 1502, we have filed an annual

Conflict Minerals Disclosure report with the U.S. SEC

since 2013. The report describes our due diligence

process, as defined by the OECD Due Diligence

Guidance for Responsible Supply Chains of Minerals

from Conflict-Affected and High-Risk Areas, to confirm

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 been validated as

conforming to an independent third-party responsible

mineral sourcing validation program.

We have expanded our Responsible Materials Sourcing

program and the scope of our due diligence to include

additional industry-relevant materials and mineral

provenance from Conflict Affected and High-Risk Areas

beyond the Democratic Republic of the Congo (DRC)

and adjoining countries. Ford has conducted a formal

due diligence process on cobalt since 2018; mica due

diligence since 2019, which was formalized in 2020;

and formalized lithium and nickel due diligence

since 2022.

•

Participating in industry leadership: We utilize data

collected through Responsible Minerals Initiative (RMI)

reporting templates to engage processors of mined

materials to undergo RMI’s Responsible Material

Assurance Process (RMAP) and their ESG assessment,

which identify and address risks of child labor and

forced labor. We are also active members of multiple

RMI working groups, including the RMI Smelter

Engagement Team, the Mineral Reporting Templates

Team, the Gold Team, and the Emerging Minerals

Team. We also co-chair the Automotive Industry Action

Group (AIAG) Smelter Engagement Team and the

Corporate Responsibility Steering Team, and are

members of the Responsible Materials Work Group.

Our participation in both RMI and AIAG allows us to

extend our capabilities to reach more eligible smelters

to participate in third-party responsible sourcing audits.

Additional Actions for Preventing Child Labor in Mining

In addition, Ford is taking the following actions to

manage the potential impact of child labor:

•

Supporting Economic Opportunities for Women: Ford

is addressing one of the root causes of child labor

through a program that provides economic

opportunities for women in the Democratic Republic

of the Congo (DRC). Ford’s supply chain team, in

partnership with Ford Philanthropy, provides funding

for the Oil and Mines Governance Center (OMGC) to

implement a program that aims to break down barriers

that prevent women in the DRC from equitably

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.

•

Better Mining Project: Ford supports Better Mining

of Cobalt in the DRC, an on-the-ground program to

identify risks and implement corrective actions and

training at designated artisanal and small-scale (ASM)

mine sites. Better Mining aims for the contracted

volume of mica to be traceable to the specific mines

and sourced with demonstrable risk management in

place. In 2024, this effort led to tangible risk

management improvements, including expansion

of the recently established grievance mechanism for

the ASM site monitoring, the prevention of 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.

Scope of Ford’s Actions

These actions support Ford’s zero-tolerance policy for

child labor and forced labor in our supply chain outlined

in our Policy Statement on Ford’s Human Rights Strategy,

Policies and Processes.

The actions encompass Ford’s global upstream supply

chain, including sub-tiers related to mining and the

processing of raw materials. The geographic scope

is global, with specific requirements tailored to local

regulations. Affected stakeholder groups include Ford,

its suppliers, and local communities near mining sites.

These actions are ongoing and could affect all identified

time horizons.

Implementation of these actions is considered in Ford’s

financial planning process. For more information see

Investment in Material Topics on page 157.

S2: Workers in the Value Chain

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Environment

Social

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Sustainability Statement

Data

Appendices

General Information

Environment

Social

ESRS Index

Targets

Ford has policies and procedures in place to detect

violations of human rights and react appropriately. Ford

applies a zero-tolerance policy regarding violations of

human rights. We have not set targets related to this

impact because we have a complex global supply chain

and Ford’s direct control over supplier’s actions is limited.

Nonetheless, we aim to eliminate child labor and forced

labor in our supply chains through increased supply

chain transparency and engagement throughout the

supply chain. We track the effectiveness of our

requirements of suppliers, including our zero tolerance

for child labor and forced labor, through our audit

process outlined above.

Impact I-12

Employees within the value chain in hazardous working

conditions may be at risk of injury and even death

without proper mitigation.

Policies

Per our

Supplier Code of Conduct

, our suppliers are

required to provide a safe and healthy work

environment. We require our suppliers to:

•

”Provide a working environment that meets or exceeds

prevailing industry standards and local, regional, and

national safety, occupational health and fire safety

regulations

•

Perform regular risk assessments and put in place

corrective and preventative measures to minimize

workplace hazards including, but not limited to

mechanical, electrical, chemical, fire, and physical

hazards

•

Provide regular health and safety training to workers

•

Provide required rest breaks to prevent excessive

physical and mental fatigue

•

Provide Personal Protective Equipment (PPE) at no cost

to workers

•

Implement an effective fire safety management system

and emergency plan at every supplier worksite that

safeguards employees and others by providing an

appropriate number of clearly marked and

unobstructed emergency exits and evacuation routes

and providing first aid material and medical assistance/

procedures to workers

•

Provide workers with clean toilet facilities, potable

water, and sanitary eating facilities

•

Keep worker dormitories clean and safe, with

appropriate emergency exits and reasonable entry and

exit privileges

•

Encourage workers to openly raise health and safety

concerns and provide safeguards against retaliation.”

In addition, Ford expects its suppliers to maintain a

health and safety management system to limit worker

exposure to hazards and promote continuous

improvement of working conditions and occupational

health and safety.

For more information on this policy, see the table Policies

to Manage Material Impacts, Risks and Opportunities on

page 162.

Actions

Actions Ford is taking to protect workers in the supply

chain:

•

Assess Supplier Health and Safety Risks: We have

developed a risk assessment process to identify and

drive action on highest-risk suppliers first. We first

perform an inherent analysis based on country risk,

industry risk, and dollars spent with each supplier site.

From this we develop a list of potential inherently

high-risk suppliers that may be prioritized for an audit.

We evaluate suppliers’ alignment with Ford’s Supplier

Code of Conduct utilizing the DS SAQ. Having a health

and safety policy in place is a critical requirement in the

DS SAQ and includes requirements such as personal

protective equipment, machine safety, and incident and

accident management. If a supplier’s health and safety

management system does not meet the DS SAQ

requirements, the supplier is prioritized for an audit.

•

Audit Supplier Health and Safety Performance: Once

the DS SAQs are received, we conduct further risk

analysis to determine which suppliers will require an

audit based on severity and likelihood. Third-party

audits are then conducted on high-risk Tier 1 suppliers

and electric vehicle 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 CAP

monitors compliance and prevents future risks. Closure

audits take place after the corrective actions are

implemented. Along with resolved grievances, closure

audits measure the effectiveness of these actions.

Scope of Ford’s Actions

These actions support Ford’s policies around health and

safety in our value chain to minimize risk of injury and

even death, as outlined in our Supplier Code of Conduct.

The actions encompass Ford’s global upstream supply

chain, including sub-tiers. The geographic scope is

global, with specific requirements tailored to local

regulations. Affected stakeholder groups include Ford,

its suppliers, and local communities near supplier sites.

These actions are ongoing and could affect all identified

time horizons.

Implementation of these actions is considered in Ford’s

financial planning process. For more information see

Investment in Material Topics on page 157.

Targets

Ford has policies related to working conditions in our

Supplier Code of Conduct, and Ford has policies and

procedures in place to detect violations of human

rights and react appropriately. We have not set targets

related to this impact because we have a complex global

supply chain and Ford’s direct control over supplier’s

actions is limited.

Nonetheless, we aim to minimize risk of injury and death

in our supply chains through increased supply chain

transparency and engagement throughout the supply

chain. We track the effectiveness of our requirements of

suppliers, including health and safety concerns, through

our risk assessment and audit processes outlined above.

Risk R-7

Non-compliance with regulations prohibiting forced labor

could result in immediate product withdrawal and

disposal, substantial financial costs, and a loss of sales

Policies

Ford is committed to prohibiting forced labor in our

business. We continue to work with our suppliers to

confirm their policies align with the Ford Supplier Code of

Conduct, which expressly mandates that our suppliers

“neither use nor condone forced or compulsory labor in 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 Code of Conduct.

Our focus is on helping our suppliers meet our ESG

commitments, build their capacity, and improve their

business practices.

For more information on this policy, see the table Policies

to Manage Material Impacts, Risks and Opportunities on

page 162.

S2: Workers in the Value Chain

— continued

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Social

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Sustainability Statement

Data

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General Information

Environment

Social

ESRS Index

Actions

Actions Ford is taking to manage this risk include:

•

Due Diligence and Risk Assessments: Regulations

prohibiting forced labor can include sub-tier suppliers.

To address this risk, in 2023 we updated our

Supplier

Code of Conduct

and contractual obligations to require

suppliers to share sub-tier supply chain information

upon request. We conduct Tier 1 supplier RBA and

RSCI audits, sub-tier supply chain audits for high-risk

materials, Value Stream Mapping of high-risk supply

chains, and we screen the results using our Restricted

Party Screening process. We expanded our supply

chain mapping capabilities by migrating into a third-

party supply chain platform designed to integrate data

across multiple Ford supply chain activities.

For any concerns raised by third parties, we utilize our

due diligence process to investigate the issue and

understand our corporate and supplier involvement.

When potential supplier issues are identified anywhere

in our supply chain, we initiate an investigation to

confirm whether the supplier is providing parts to Ford.

If confirmed, we will follow our due diligence

procedures by working with our Tier 1 supplier to

conduct an RBA audit to identify any critical non-

conformances and work with the auditee to correct

these issues, if needed. Ford will seek alternate sources

of supply if a supplier fails to comply with the Supplier

Code of Conduct. We can also follow UN Guiding

Principle 19 and elect to continue to work within a

business relationship if we have the leverage to impact

their compliance with our ESG requirements.

•

Industry Leadership: We collaborated in the

development of the AIAG Forced Labor Due Diligence

Program, in partnership with five other North American

automakers. The group worked together throughout

2024 to develop an aligned industry approach for

conducting and reporting forced labor due diligence

activities. AIAG negotiated agreements with world-class

supply chain technology providers and created an

online marketplace for common reporting tools and

resources. Participating OEMs agreed to incorporate

these elements into their own supplier due diligence

practices. This approach facilitates standardized

reporting data, a common reporting template, and

innovative technology for the supply base at a reduced

cost. The program also includes supplier training and

education to support suppliers in conducting their own

forced labor due diligence while streamlining reporting

in the automotive supply chain.

Scope of Ford’s Actions

These actions support Ford’s zero-tolerance policies

around forced labor in our value chain outlined in the

Policy Statement on Ford’s Human Rights Strategy,

Policies and Processes

The actions encompass Ford’s global upstream supply

chain, including sub-tiers of suppliers. The geographic

scope is global, with specific requirements tailored to

local regulations. Affected stakeholder groups include

Ford, its suppliers, and local communities near

supplier sites.

These actions are ongoing and could affect all identified

time horizons.

Implementation of these actions is considered in Ford’s

financial planning process. For more information see

Investment in Material Topics on page 157.

Targets

Ford has policies and procedures in place to detect

violations of human rights and react appropriately. Ford

applies a zero-tolerance policy regarding violations of

human rights. We have not set targets related to this

impact because we have a complex global supply chain

and Ford’s direct control over supplier’s actions is limited.

Nonetheless, we aim to eliminate forced labor in our

supply chains through increased supply chain

transparency and engagement throughout the supply

chain. We track the effectiveness of our requirements of

suppliers, including our zero tolerance for forced labor,

through our due diligence and risk assessment process

outlined above.

POLICIES RELATED TO VALUE CHAIN WORKERS

Respecting Human Rights Throughout the Value Chain

Our Supplier Code of Conduct addresses key human

rights and workplace issues commonly associated with

respecting human rights and protecting the labor rights

of workers. Ford’s Supplier Code of Conduct prioritizes

human rights throughout our supply chain, prohibiting

trafficking of human beings, child labor and forced labor,

mandating safe working conditions, and emphasizing

due diligence to prevent and mitigate human rights risks.

Compliance is monitored through a multi-pronged

approach including risk management systems, third-

party audits and assessments, accessible grievance

mechanisms, and adherence to all applicable laws and

regulations, aligning with international standards like the

UN Guiding Principles on Business and Human Rights

and the ILO Declaration on Fundamental Principles and

Rights at Work.

In raw material sourcing, the Code requires suppliers

to conduct due diligence aligned with the OECD Due

Diligence Guidance for Responsible Supply Chains of

Minerals from Conflict-Affected and High-Risk Areas,

and requires suppliers to utilize third-party certifications.

Ford requires transparency and traceability throughout

the supply chain (to prevent exploitative labor practices

and promote a responsible and ethical business

environment).

In 2024 instances of non-respect, or violations of these

guidelines involving workers in our value chain have

been reported and are resolved, escalated, or being

investigated, none have been classified as severe human

rights issues.

Engaging with Value Chain Workers

Ford’s Supplier Code of Conduct requires our suppliers to

“Enable Ford to assess compliance with this Code and

that requirements are met by completing questionnaires

and/or participating in on-site assessments or audits

conducted by an independent third party.”

We evaluate suppliers’ alignment with Ford’s Supplier

Code of Conduct utilizing the DS SAQ. Once the DS SAQs

are received, we utilize the DS SAQ to conduct a further

risk analysis on specific supplier sites to determine which

suppliers will require an audit based on severity and

likelihood. The audit process is outlined under Actions for

Preventing Child and Forced Labor on page 207.

Remediating Human Rights Impacts

Our Supplier Code of Conduct requires our suppliers:

•

”Provide an operational-level grievance mechanism

accessible to all employees, suppliers, and the public

•

Transparently inform stakeholders on their grievance

mechanism, including how to access and use

•

To bring the violation or adverse impact to an end;

provide appropriate remedies when non-compliance

occurs

•

Not retaliate against anyone who makes a good faith

report of a violation of policy or law

•

Report suspected wrongdoing and concerns, including

concerns about product safety, to Ford at

SpeakUp@ford.com.

Ford may ask for confirmation of compliance with the

requirements of the Supplier Code of Conduct at any

point in its relationship with a supplier, including before

business is awarded.

S2: Workers in the Value Chain

— continued

Ford Integrated Sustainability and Financial Report 2025

210

Ford Integrated Sustainability and Financial Report — page 211

Fundamentals

Sustainability at Ford

Products and Services

Environment

Social

Governance

Sustainability Statement

Data

Appendices

General Information

Environment

Social

ESRS Index

Ford takes the following measures to provide and enable

remedy for human rights impacts. This is applicable to

our suppliers as stated in our

Policy Statement on Ford’s

Human Rights, Strategy, Policies and Processes

We maintain a strict zero-tolerance policy for human

rights violations. This approach underscores our

commitment to upholding ethical standards through

our operations and supply chains and sets a firm

foundation for remediation as needed.

2. Upon identification or suspicion of a human rights

violation (through a grievance, media, NGO inquiry,

etc.), we initiate a prompt investigation to determine

the facts and extent of any wrongdoing and address

reported issues.

3. Our remediation process is structured to address and

resolve violations. Key elements include:

a. Cessation of Harmful Activities: We work to

immediately cease any activities that contribute

to the human rights violation.

b. Collaboration: We engage suppliers and other

parties involved in the violation also take steps

to cease their contributions.

c. Appropriate Remedies: We suggest remedies to

address the harm caused by the violation. These

remedies are tailored to specific circumstances

and may include compensation, restitution, or

other forms of support.

d. Process Improvement: We review and improve

our internal processes, and feedback from the

complainant to help prevent similar violations

from occurring in the future. This continuous

improvement element demonstrates a

commitment to strengthening our human rights

management systems.

4. We offer multiple avenues for reporting and seeking

remedy through accessible grievance mechanisms:

a. Internal Reporting (SpeakUp): Ford’s internal

SpeakUp system allows employees to

confidentially report suspected violations.

b. Supply Chain Reporting (RBA Worker Voice,

External Grievances): Ford enables its suppliers

to utilize the RBA Worker Voice platform and

Ford’s own external grievances system, giving

value chain workers direct access to reporting

and redress mechanisms.

5. We leverage external expertise to bolster remediation

efforts, particularly in complex or sensitive cases.

The RBA provides support in grievance handling

and remediation, especially when dealing with issues

of retaliation.

Alignment with International Frameworks

The

Supplier Code of Conduct

is aligned with multiple

International Frameworks, including the UN Guiding

Principles on Business and Human Rights (UNGPs) by

operationalizing its three pillars: ”protect,” ”respect,”

and ”remedy.” This is achieved through several means,

including requiring suppliers to prohibit child and forced

labor, ensure safe working conditions and promote

responsible sourcing.

The code’s provisions reflect a structured approach to

integrating human rights into Ford’s supply chain that

is aligned with UNGPs. For example:

•

Remediation: Emphasizes the need for suppliers to

report and remediate any non-compliance and

transparently report their remediation progress

•

Monitoring and Reporting: Requires suppliers to

operationalize and document compliance, share supply

chain information upon request, and demonstrate

appropriate internal controls

•

Stakeholder Engagement: Encourages suppliers to

engage with relevant stakeholders and impacted

groups, including through grievance mechanisms

•

Grievance Mechanisms: Mandates that suppliers

provide grievance mechanisms accessible to all

employees, suppliers, and the public

•

Respect for Indigenous Peoples: Requires suppliers

to respect the rights of Indigenous Peoples and obtain

FPIC for projects affecting their lands and resources

•

Transparency and Accountability: Requires suppliers

to provide timely and accurate information to

stakeholders on ESG matters, be transparent in their

operations, report non-compliance, and allow Ford to

assess compliance through audits and documentation

We track performance through our external grievance

mechanism.

PROCESS FOR ENGAGING WITH VALUE

CHAIN WORKERS

Direct Engagement with Value Chain Workers

Value chain workers can engage with Ford through

direct contact using Ford’s grievance mechanism, through

credible proxies during a third-party audit, or through

the third-party Worker Voice grievance mechanism.

Direct engagement with value chain workers additionally

occurs during the course of audits at our high-risk

suppliers. A critical component of the sustainability

audit is the completion of direct interviews with workers.

Translators are provided and employers are not able

to be in the interviews so employees are free to speak.

Engagement through audits occurs on an annual basis.

Because we cannot audit all of our suppliers each year,

a subset is chosen of the most high-risk suppliers.

These suppliers are assigned a risk level through a risk

analysis process that is aligned with the requirements

of the German Supply Chain Due Diligence Act (GSCDDA).

Medium-risk suppliers are assigned optional training

to review best practices via the online learning academy

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