To Manufacture Products with the Highest Environmental Performance at Manufacturing Plants with the Lowest Environmental Impact

In Publishing the Honda Environmental Annual Report 2006

Honda’s Response to Environmental Problems

Vehicles support social systems and provide mobility and comfort to people around the world. As such, the use of vehicles has widely expanded. As a result, however, vehicles have introduced new environmental challenges, including air and noise pollution, creation of waste, and the disposal of products at the end of their life cycle.
Honda has long been involved in environmental conservation activities. In 1992, we created the Honda Environment Statement, which identified environmental conservation as one of our important corporate themes and clarified Honda’s view on the subject. Subsequently, in 1999, we set a time frame and numerical targets to lower the exhaust emissions and improve the fuel economy of our products. Since that time, we have reported annually on our progress toward these goals, ultimately reaching our targets in fiscal 2005.

To Lead the World in the Prevention of Global Warming by Enhancing Measures

Since the 1990s, global warming has become an issue of increasing social concern. As a company that provides mobility, Honda needs to urgently address this issue as its top priority, adopting a global viewpoint to implement measures against global warming, which goes beyond regional boundaries.
As a company that conducts business throughout the world, Honda is well aware of its responsibility to contribute to the prevention of global warming, and it aims to be a company that leads the world in solving this problem.

Future Challenges

Honda strives to become a company that manufactures products with the highest environmental performance at manufacturing plants with the lowest environmental impact. We will continue our endeavors to attain this goal.
To this end, we have established new voluntary CO2 reduction targets for 2010 that build on the targets set and achieved in the 1999 to 2005 time frame. Based on these targets, we will continue to strive to reduce CO2 emissions on a global scale.
Specifically, we will target a 10 percent reduction in product CO2 emissions in each of our product categories by 2010, compared with 2000 levels. We will also target a 10 percent reduction in CO2 emissions from automobile manufacturing and a 20 percent reduction for motorcycle and power equipment manufacturing.
Further, Honda will pursue higher efficiency in internal-combustion engines, which are today’s mainstream engine technology and as such represent the greatest near-term opportunity for reducing our environmental impact on a global scale.
In addition, we will not hesitate to take on the following challenges.

• To develop a new hybrid vehicle that has higher fuel economy at a significantly reduced cost
• To develop a new clean diesel engine and to commercialize this high-efficiency technology within three years
• To adopt electronically controlled fuel injection systems (PGM-FI) for most of Honda’s worldwide motorcycle fleet by the end of 2010
• To accelerate the development of Honda fuel cell vehicle technology as the ultimate vehicle that does not emit CO2
• To mass-produce a solar energy system in order to provide technology that generates energy without emitting CO2

Honda wishes to remain an environmentally advanced company and will aggressively implement the measures described above as a leading company in the field of mobility.

In Publishing the Honda Environmental Annual Report 2006

This annual report summarizes our activities each fiscal year and is published to keep the public informed of our efforts.
In this report, as in the last annual report, we have included a section that introduces our next-generation technologies, and worked to make this new report more understandable for readers.
Once you have read this report, we would greatly appreciate your frank comments in order to help us continue to improve our efforts in the future.