Honda has created an institutional framework to put into practice the environmental principles articulated in the Honda Environment Statement, and has expanded it to the global level. We are building environmental management systems and working aggressively to obtain ISO 14001 certification at all business sites. We are also working to reduce CO2 emissions using the Honda LCA Data System, designed to quantify the environmental impacts of our activities, from production through disposal.
In December 1991, Honda created what is now the Japan Environmental Committee as a body to play a key role in environmental matters of the company. This structure has expanded into a global environmental management system with regional environmental committees in North America, South America, Europe, Asia/Oceania, and China. Combined with the safety issue (see note), through which Honda aims to create a motorized society that is safe for all people. In March 1995, the World Environment and Safety Committee was established to discuss, decide on, and review annual plans for implementing environmental conservation activities at the global level, based on medium-term management plans. The committee created an environmental management system that connects the global level to the local level and factory floor. The company’s president and CEO currently chairs the committee, a reflection of Honda’s recognition that environmental issues, especially climate change and energy, are critical and impact Honda’s business operations.
The World Environment and Safety Committee develops mid-term policies and plans for global environmental initiatives based on mid-term policies and management plans determined by the Management Council. Individual divisions prepare detailed plans for each region and business area, and then finalize the overall plans after discussion and approval by the regional environmental committees.
The regional environmental committees discuss and evaluate annual achievements under the plans and then, based on the results, create new targets and plans with the objective of achieving mid-term policies and plans. The progress of environmental initiatives by Honda Group companies, as well as themes affecting multiple domains around the world, are reported to the World Environment and Safety Committee and then factored into the next year’s annual plans and the next mid-term business management plans and policies.Honda follows the Plan-Do-Check-Act cycle to promote continuous improvement in environmental performance in each region: Japan, North America, South America, Europe, Asia/Oceania, and China.
One hallmark of this system is that planning and implementation are not simply delegated to specialized staff, but that all associates are expected to be involved. The basic thinking is that all associates should be actively tackling environmental issues as a part of their daily work.
Compliance with laws and regulations
In accordance with the Honda Environment Statement, Honda introduces environmental management systems at all business sites and in each division, promotes continuous efforts to improve environmental performance, and strives to comply with voluntary environmental standards that are more stringent than national and regional regulations.
We established the Honda Conduct Guideline In April 2003 and are implementing it throughout the Honda Group in Japan and worldwide. Compliance in the document is defined as compliance with laws, company rules, and social norms, while environmental conservation is defined as the proper processing of waste and pollutants, efficient use of natural resources and recycling, and legally required measurements, recording and reporting. We have appointed corporate directors to serve as Compliance Officers, and work systematically to enhance compliance and risk management under the supervision of directors in charge of each part of the organization.
In anticipation of accidents and emergencies that could cause environmental pollution, each factory and division has clearly-defined procedures for preventing pollution.
Along with development of environmental management systems at the group-wide level, we have been introducing such systems at each business site in order to continuously improve their environmental performance and to control environmental pollutants. We have been working actively to acquire ISO 14001, an international certification for environmental management, particularly at our production facilities.
All of our production facilities in Japan acquired certification by fiscal 1998, and in 2011 we integrated certification for five production factories into one. We also combined the certification registration for Honda head office buildings and Honda district buildings into one in 2011.
We will continue developing our environmental management systems and seeking ISO 14001 certification (or in Europe, EMAS).
We will continue working to ensure that business sites with certified environmental management systems remain certified, and also continue to apply the PDCA cycle at each site for continuous improvement in reducing the environmental impact of our operations.
At present, 168 Honda subsidiaries and affiliated companies worldwide are ISO 14001-certified.
In March 2002, Honda established the Honda LCA Data System in Japan. This data system tracks the environmental impacts of products across their life cycles, from manufacturing to disposal. Using these estimates, we are working to steadily reduce our environmental impact. One key parameter we are monitoring is CO2 emissions in all domains of our business activities, and based on quantitative estimates, we are implementing effective initiatives to meet CO2 emissions reduction targets for production, purchasing, sales and service, administration, transportation, and other domains.
In fiscal 2007, we introduced a new model-specific LCA system to represent the volume of CO2 emissions associated with the life cycle of a single vehicle, from the procurement of raw materials to disposal. The graphs on the right show calculations for major automobile and motorcycle models introduced in fiscal 2012. The results confirm the importance of the consumption stage (fuel economy) in reducing CO2 emissions. Using this system, we can more accurately assess the quantity of CO2 emissions from fuel consumption and all other aspects of a vehicle’s life cycle, guiding further efforts to reduce emissions.
To date, Honda has applied environmental accounting to a portion of its activities in Japan (Honda R&D Co., Honda Engineering Co., and unconsolidated components of Honda Motor Co.). In the future, we plan to expand our environmental initiatives globally and move closer to realizing the Honda Environmental Vision by increasing the scope of our environmental accounting to cover the following items in Honda Environmental Annual Report 2013.
1. Japanese business sites: Increase disclosure of management of consolidated activities
2. Regional business sites: Disclose major production and R&D activities
Even prior to the next edition, we hereby report the environmental costs calculated for the current fiscal year for our North American automobile R&D activities.
Overseas R&D sites: Honda R&D Americas Inc.
Environmental cost: 13.35 billion yen (mainly R&D costs)
Honda is diligent about measuring and reducing the greenhouse gas (GHG) emissions that stem from its global business activities. This includes not only direct emissions and indirect emissions from consumed energy, but also emissions that take place across our value chain, including emissions outside our own business activities (e.g., extraction, procurement, and transport of raw materials, use and end-of-life disposal of sold products), or what is defined by the Greenhouse Gas Protocol1 as scope 3.
In 2011, the GHG Protocol, one of the world’s most widely-used GHG calculation standards, added scope 3 to two existing categories of corporate emissions: scope 1 (direct emissions) and scope 2 (indirect emissions from energy use). After the addition of scope 3, we quickly set about measuring and calculating our GHG emissions in scope 3, particularly category 11 of scope 3, emissions from use of sold products, which represents the largest component of CO2 emissions for an automaker and thus the greatest opportunity to reduce our environmental impact. We had these calculations independently verified and were the first automaker in the world2 to disclose our scope 3 emissions after the official publication of the Scope 3 Standard.
Honda's GHG emissions in the period from April 1, 2011, to March 31, 2012, verified by Bureau Veritas Japan Co., Ltd.
Emissions from the business activities of Honda Motor Co., Ltd. and its 461 consolidated subsidiaries and affiliated companies in Japan and overseas
Scope 1: 1,240,000 t-CO2 equivalent
Scope 2: 2,960,000 t-CO2 equivalent
Emissions from use of automobiles, motorcycles, and power products sold by Honda
Scope 3: 195,880,000 t-CO2 equivalent3
*Also refer to page 88, and the following webpage.
(in Japanese only)