Honda Worldwide | Environment | Progress in Meeting Environmental Targets

In our effort to minimize CO2 emissions and all other environmental impacts stemming from our products, we created a detailed mid-term plan for product-related environmental initiatives through fiscal 2014. By following this plan we will not only raise the energy efficiency of our products but also make improvements across their life cycles by practicing sustainable design for improved 3R performance, reducing emissions from products, and carrying out stricter management of substances of concern used in our products.

Recognizing the significant impact that our business activities have on the environment, we likewise formulated a detailed mid-term plan for operations-related environmental initiatives, with the end goal of realizing the Honda Environmental Vision. By following this plan we will reduce product life-cycle CO2 emissions, reuse and recycle more resources, and strive to minimize water use, among other activities. Believing that these initiatives should cover all our business activities, including our supply chains, we will actively promote environmental management at our suppliers, focusing especially on greenhouse gas emissions.

Mid-term plans and results for product-related environmental initiatives

Milestones on the road to 2020		Mid-term plan for environmental initiatives (FY2012-2014)	FY2012 results
Climate change and energy	Achieve global targets for reducing average product CO2 emissions, with the end goal of steadily reducing product lifecycle emissions over the long term	Achieve best-in-industry fuel efficiencies and accelerate technology penetration: Motorcycles: Expand use of electronic fuel-injection system (PGM-FI) and low-friction engines, especially in commuter vehicles Automobiles: Phase in upgrades to engine and transmission lineups, starting in 2012 Power products: Expand application of new electronic self-tuning regulator (STR) governor developed for the iGX engine	Motorcycles: Developed next-generation engine for compact scooters with enhanced durability, quietness, and fuel efficiency (Sept. 2011) and deployed it in the Click 125i marketed in Thailand (Jan. 2012) Automobiles: Adopted next-generation technology advancements, Earth Dreams Technology, deployed for the first time in the N BOX mini-vehicle (Dec. 2011) Power products: Marketed the HSM1390i medium-sized hybrid snowblower, designed to achieve better practical fuel efficiency, less noise, and less exhaust gas, in Japan and Europe (Sept. 2011)
		Establish and deploy next-generation electromotive technologies: Motorcycles: Market electric motorcycles that meet local needs in developed (Japan: leased) and emerging (China) countries Automobiles: Launch multiple models (especially compact vehicles) equipped with IMA hybrid technology in Japan; currently developing mid-size and larger plug-in hybrid and battery electric vehicles, with plans to launch products in Japan and the U.S. and commence production in China in 2012. Power products: Improve electric lawnmowers and expand lineup through model additions, especially in Europe	Motorcycles: Marketed the Kushi electric bicycle to the Chinese market (Oct. 2011) Automobiles: Marketed IMA-equipped models to the Japanese market: Fit Shuttle Hybrid (June 2011), Freed Hybrid (Oct. 2011), and Freed Spike Hybrid (Oct. 2011) Power products: Marketed the Graspa (Japanese name) electric push mower in Japan and Europe (Feb. 2012)
	Market new products to reduce CO2 emissions from mobility and other products	Launch new thin-film solar cell modules with world’s highest module conversion efficiency and deploy technology globally Conduct demonstration testing of next-generation personal mobility systems in cities in Japan, the U.S., and China Through joint-implementation of the E-KIZUNA Project with Saitama City, conduct demonstration testing of the Honda Smart Home System (HSHS) with an aim to cut household CO2 emissions by 50% from 2000 levels by 2015	China: In Guangzhou, began demonstration testing of electric vehicles (Nov. 2011) Japan: In Saitama Prefecture, began demonstration testing of solar hydrogen station and the FCX Clarity fuel cell electric vehicle with ability to supply power to external appliances (Mar. 2012) Japan: In Saitama Prefecture, began demonstration testing of a house equipped with the Honda Smart Home System (Apr. 2012)
Material and water resources	Ramp up 3R efforts	Products: Continue to promote structural design with an emphasis on weight reduction, higher throughput yields, and easier recycling and maintenance, and sustainable design with an emphasis on easily recycled materials and use of recycled resins	Products: Focused on weight reduction, higher throughput yields, and easier recycling; promoted sustainable design with an emphasis on easily recycled materials and use of recycled resins
Substances of concern	Make exhaust emissions cleaner	Steadily reduce exhaust emissions to comply with tighter emission regulations in various countries	Made consistent efforts to reduce exhaust emissions to comply with tighter emissions regulations in various countries
Substances of concern	Manage substances of concern used in products more strictly	Promote management of substances used in products and find alternatives to substances of very high concern Operate global management systems for substances used in products to comply with applicable regulations in various countries	Continued to promote management of substances used in products and find alternatives to substances of very high concern Operated global management systems for substances used in products to comply with related regulations and reduce risk in various countries

Mid-term plans and results for operations-related environmental initiatives

Milestones on the road to 2020		Mid-term plan for environmental initiatives (FY2012-2014)	FY2012 results
Climate change and energy	Strengthen initiatives that span entire product life cycles	Global operations: Reduce CO2 emissions per unit of production by 5% by FY2014 (baseline: FY2009)1	Reduced by 3% in FY2012 (baseline: FY2009)
		Purchasing domain: Promote measurement and reduction of suppliers’ GHG emissions under the revised Green Purchasing Guidelines	Promoted measurement of GHG emissions from suppliers in a broader range of activities covering product life cycles
		Production domain: Install cutting-edge environmental technologies at Yorii Factory (production scheduled to begin in 2013) and make preparations to deploy technologies globally Set benchmarks for energy use and set higher efficiency standards	Measured and graphed energy use for each process and revised production systems for higher efficiency Europe: Used solar power and installed natural gas-powered cogeneration system North America: Increased energy efficiency by replacing painting equipment and installed power generation system using water down-flow in air compressor
		Transportation domain: Increase transportation efficiency in each region by implementing modal shifts, deploying more fuel-efficient trucks, etc.	Promoted modal shifts, truck fuel-efficiency improvements, and other measures according to conditions in each region South America: Introduced nine cargo ships specially designed to carry motorcycles with twice the carrying capacity of existing ships Asia/Oceania: Reduced travelling distance by taking a milk-run approach
		Sales and services, administration, product development domains: Promote energy conservation by encouraging eco-etiquette and more efficient use of facilities	Promoted energy conservation activities by encouraging eco-etiquette and more efficient use of facilities Installed high-efficiency devices (LED lighting, compressors, HVAC systems, IPM motors)
Material and water Resources	Ramp up 3R efforts	Production domain: Strengthen resource use reduction initiatives by increasing throughput yields to reduce by-products Collaborate with suppliers to increase use of metal scraps Maintain zero landfill waste performance (Japan and Europe)	Explored ways to increase throughput yield in design phase Increased use of stamping press scrap steel Asia/Oceania: Began worm-composting green waste
	Ramp up 3R efforts	End-of-life product recycling: Make steady efforts to comply with end-of-life vehicle recycling laws in various countries	Made steady efforts to comply with end-of-life vehicle recycling laws in various countries
	Minimize water use	Production domain: Reduce use according to conditions in each region, for example by conserving water and using recycled water in production processes	Promoted water conservation and recycling activities in each region
Substances of concern	Reduce VOC2 emissions from production processes	Production domain: Develop VOC emissions reduction technologies for coating processes, and expand application to overseas facilities and motorcycle coating processes	Started using low-VOC coatings in coating processes Used low-VOC coatings for prototype models in product development
Biodiversity	Local conservation initiatives in accordance with the Honda Biodiversity Guidelines	Corporate initiatives: Educate suppliers on the destructive impacts of hazardous substances and water use on ecosystems Collaboration with local communities: Conduct biodiversity surveys at business sites in Japan Develop policies, guidelines, and practical know-how at each business site Assess possibilities of introducing biodiversity initiatives at overseas business sites	Conducted biodiversity surveys at business sites in Japan
Environmental management	Strengthen global/regional promotional frameworks and increase disclosure of environmental data	Strengthen independent, voluntary promotional frameworks in each region, and strengthen global collaboration	Strengthened global collaboration by holding Regional Environmental Committee meetings
Environmental management		Expand Honda Environmental Annual Report into a global report, and increase disclosure of environmental data in each region	Published FY2012 environmental reports in China and North America

Note 1:: A single per-unit-of-production value was calculated by weighting the average reduction percentages for motorcycles, automobiles, and power products with the CO2 emissions associated with their respective life cycles.
Note 2:: VOC (Volatile Organic Compounds) : Organic chemical substances that cause photochemical smog and are commonly used in the solvents of paints and thinners.