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Climate change initiatives such as carbon dioxide (CO2) inventory reporting, emissions trading, and carbon offsets projects are receiving increased public and corporate attention worldwide. Through early, voluntary actions, Ford Motor Company's manufacturing operations have gained first-hand experience with these emerging policy tools and our global, centralized approach has supported our participation in facility CO2 initiatives in a more cost-effective and operationally-efficient manner. Ford's early action has also developed internal expertise which enables us to share our lessons learned with others beginning to investigate climate change initiatives.

Establishing manufacturing environmental leadership while maintaining overall cost competitiveness is a difficult challenge facing the auto industry. In many cases, environmental initiatives are thought to increase cost and/or restrict manufacturing flexibility. The Commodity Management Supplier Program for Total Waste Management (TWM) implemented globally throughout Ford Motor Company facilities aligns environmental, manufacturing, and corporate citizenship objectives by encouraging supplier-driven continuous process improvement. By creating appropriate TWM contractor waste minimization incentives and utilizing contractor core-business knowledge, the desired effects of reducing total costs while institutionalizing and advancing pollution prevention successes are ultimately realized.