Ford’s suppliers are critical allies in helping us to achieve success in the marketplace and meet our sustainability goals. The basis of our work with suppliers is the Ford Code of Human Rights, Basic Working Conditions and Corporate Responsibility, which applies to our own operations as well as our $100 billion supply chain.
Read more about our approach to supply chain sustainability
To the extent conflict minerals (tin, tungsten, tantalum and gold) are contained in our products, it is Ford’s goal to use DRC conflict-free minerals while continuing to support responsible in-region mineral sourcing from the Democratic Republic of the Congo (DRC) and adjoining countries. Our suppliers are expected to conduct due diligence to understand the source of the conflict minerals used in Ford products, source responsibly, and not knowingly provide products containing minerals that contribute to conflict.
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Approximately 80% of our production Aligned Business Framework (ABF) suppliers have demonstrated that they have codes of conduct in place that are aligned with international standards. Approximately 45% of our ABF production suppliers have demonstrated that they have met all three Ford milestones.
We surveyed 145 suppliers in 2013 (up from 135 in 2012, 128 in 2011 and 35 in 2010) regarding greenhouse gas emissions, and achieved an 89% voluntary response rate.
We purchased $6.5 billion in goods and services from approximately 250 minority-owned suppliers and $1.8 billion in goods and services from more than 150 women-owned businesses, our fourth consecutive year of improvement.
Human rights and working conditions is a prime area of focus for our sustainability work with suppliers. Since 2003, we have conducted more than 900 third-party audits of existing and prospective Tier 1 suppliers in 21 countries on issues relating to ethics and human rights and working conditions.
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We promote long-term relationships with our suppliers and seek alignment with them on sustainability-related issues such as human rights, working conditions and environmental responsibility. We leverage our supply chain to make a positive impact in the markets in which we do business.
Supply Chain Sustainability Manager, Conflict Minerals Compliance, Ford Motor Company
“Not all mining from the Congo is contributing to conflict. There are many responsibly run operations whose workers depend on mining of these minerals to support their families. It is important that actions taken by Ford and our suppliers do not disadvantage responsible mining operations in the region.”
Ford’s physical logistics operations provide the safe and efficient transport of parts from our suppliers to our manufacturing plants and of finished vehicles from the end of our assembly lines to our dealerships. Although logistics accounts for a relatively small percentage of our vehicles’ total lifecycle emissions, we are working hard to maximize the efficiency of these operations to reduce their environmental impact.
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Ford launched its Supplier Diversity Development program in 1978 with the goals of supporting minority- and women-owned businesses, creating business opportunities for diverse suppliers to grow into profitable enterprises, and further strengthening the Ford supplier network to reflect the company’s workforce and customer base. Since that time, we have sourced more than $70 billion to minority-, women- and veteran-owned businesses.
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485,000 of our suppliers’ workers have been impacted by our supply chain sustainability training program since its inception in 2006.
6 the number of work groups Ford chairs or co-chairs at the Automotive Industry Action Group, or AIAG, a North American, member-based, nonprofit industry group specializing in supply chain issues.
© 2014 Ford Motor Company