Ford, the Water Efficient Company
Last week, Detroit giant Ford Motor Company released its 2010 Sustainability Report. The report explains how Ford’s long-term sustainability strategy centers on climate change, water stewardship, and leveraging its supply chain to make a positive impact on people and the planet. Ford approaches sustainability as a business model that builds shared value aligned with the planet’s preservation and engaged employees. To that end, the company’s key performance indicators (KPIs) are concentrated in three main areas:
- Economy and Quality: Ford aims for customer satisfaction with all of its stakeholders from customers to dealers. Customer satisfaction increased to 82 percent in 2010 while the amount of complaints per 1000 vehicles declined. Dealers and retailers in the US and Europe also reported increased satisfaction with Ford. It is interesting to note that Ford ties customer satisfaction with its net income, $6.6 billion in 2010--a reversal from a $14.7 billion loss in 2008.
- Environment: Worldwide facility energy consumption decreased from 3561 kilowatt hours per vehicle in 2008 to 3,087 in 2010. Meanwhile its worldwide facility CO2 emissions per vehicle decreased over the same time period. But what’s the most impressive metric? Ford’s manufacturing facilities have saved approximately 10.5 billion gallons of water since 2000, a 62 percent reduction in water consumption.
- Society: Do happier employees make better cars? Ford makes the case. Since 2008 the company’s automobiles have experienced fewer recalls and a decrease in lost-time cases. A survey of its dealers revealed a more positive attitude towards the company from 2008 to 2010. Plus, its employees logged an increase in volunteer hours during 2010. Employee engagement pays dividends for Ford.