Honda Environmental Annual Report 2006 Top
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Promotion of Green Purchasing

Honda has established green purchasing guidelines and, in cooperation with suppliers, been increasing the ratio of environmentally friendly materials to all parts procured.

Annual Targets and Results

Main targets for fiscal 2005 in Japan

• To replace specified chemical substances with alternative materials in accordance with Honda’s chemical substance guidelines




• To reduce suppliers’ CO2 emissions

• To reduce suppliers’ landfill waste
• To promote the acquisition of ISO 14001 certification by all suppliers

Main achievements in fiscal 2005 in Japan
• Completed the replacement of lead and lead compounds with alternative materials in valve sheets designated by Honda; completed the replacement of cadmium and cadmium compounds; also completed the replacement of hexavalent chromium except that used in rustproof black/green chromate coating.
• Reduced carbon intensity by 6.6%* (compared with fiscal 2000)
• Reduced landfill waste by 96%* (compared with fiscal 2000)
• Certification acquired by 396 companies (96% of suppliers)
* Affiliated companies only (subsidiary companies and associated companies based on the Securities and Exchange Law)

Green Purchasing Guidelines

In 2001, Honda set green purchasing guidelines to aggressively promote the procurement of materials and parts which have a reduced environmental impact (see the framework of Honda’s green purchasing guidelines below). We share green purchasing targets and items with our suppliers and will work to achieve those targets by fiscal 2010.

Management of Chemical Substances

Honda has committed itself to reducing the use of the four heavy metals believed to have adverse effects on the environment (lead, mercury, hexavalent chromium, and cadmium) in all of its automobile, motorcycle, and power-equipment models manufactured in Japan by the end of fiscal 2005. For power equipment, we reduced the use of lead, mercury, and cadmium and are now implementing measures to reduce the use of hexavalent chromium by the end of fiscal 2006.
In fiscal 2005, we replaced lead and lead compounds contained in valve sheets with other materials in accordance with guidelines on the use of chemical substances, and also discontinued the use of cadmium and cadmium compounds. Except for that used in the rustproof black/green chromate coating process, we replaced hexavalent chromium with other materials. For power equipment, we will reduce the use of hexavalent chromium by the end of December 2006.

Reduction in environmental impact caused by suppliers in manufacturing parts

In fiscal 2005, making full use of the Honda LCA System, we made efforts to reduce CO2 emissions and landfill waste. As a result, CO2 emissions from suppliers were reduced by 6.6 percent on an energy consumption per unit basis compared with fiscal 2000. Also, landfill waste from suppliers decreased 96 percent compared with fiscal 2000. These reductions were made possible by cooperation between Honda and its suppliers. In fiscal 2006, we will continue to promote the management of chemical substances and reduction in the use of substances that cause environmental impact based on our green purchasing guidelines.

Promoting the acquisition of ISO 14001 certification by Honda suppliers

In fiscal 2005, Honda worked toward its target of having all of its domestic suppliers acquire ISO14001 certification. This resulted in the certification of 396 companies, which accounts for 96 percent of all Honda’s domestic suppliers.

• Framework of Honda’s Green Purchasing Guidelines
* Honda’s guidelines on chemical substances: The guidelines show the schedule for reducing, abolishing the use of, or replacing chemical substances of concern, including those regulated in Europe (lead, mercury, hexavalent chromium, cadmium) and those voluntarily regulated by Honda.

Efforts in Relation to the Purchase of Spare Parts

Recycling of used molds

Because most molds are made of steel, used molds are recycled. CO2 emissions from iron made with recycled steels are about 25 percent of those from iron made using iron ore. Therefore, the recycling of used molds should be actively promoted. However, many molds are stored for a long time after mass production use, because these old molds are still used for manufacturing various repair parts, and it is difficult to determine when to dispose of the mold. Since fiscal 2002, Honda has provided its suppliers with information on repair parts and the criteria for disposing of molds to help them recycle old molds on a regular basis. In fiscal 2005, Honda and our suppliers continuously cooperated to actively promote the recycling of used molds.
• Achievements in Fiscal 2005
Number of molds disposed of: 37,700
Equivalent weight: 5,190 tons
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