Progress in Meeting Environmental Targets

Mid-term plans for environmental initiatives (FY2015-FY2017)

● Plans for the new mid-term

At the start of the new mid-term which begins in fiscal 2015, we drew up a new set of plans to guide the reduction of environmental impacts from our products and business activities over the next three years.
Product-related initiatives during this period will be aimed at minimizing all forms of impacts arising from products, and will include enhancing energy efficiency, improving our systems to reduce, reuse and recycle waste, reducing exhaust emissions, and carrying out stricter management of substances of concern.
Operations-related initiatives will include intensifying efforts to reduce product life-cycle CO2 emissions, minimizing water use, and actively promoting environmental management across the supply chain.

● Mid-term plans for product-related environmental initiatives (FY2015-FY2017)

Milestones on the road to 2020 Mid-term plans for product-related environmental initiatives (FY2015-FY2017)
Climate change and energy Achieve global targets for reducing average product CO2 emissions, with the end goal of steadily reducing product life-cycle emissions over the long term Achieve best-in-industry fuel efficiency and accelerate technology penetration:
Motorcycles ・Expand use of programmed fuel-injection system (PGM-FI)
 and low-friction engines, especially in commuter vehicles
Automobiles ・Continue deployment of Earth Dreams Technology started
 in the previous 3-year mid-term
・Continue global release of 2.0-liter, 1.5-liter, and 1.0-liter
 turbocharged direct-injection engines providing
 class-leading power output and environmental performance
Power Products ・Accelerate use of compact engines and advance energy diversification
Establish and deploy next-generation electromotive technologies
Motorcycles ・Market electric motorcycles that meet local needs in
 developed (Japan: loaned) and emerging (China) countries
Automobiles ・Expand lineup of models equipped with i-MMD, i-DCD
 hybrid systems
・Introduce in Acura models the SPORT HYBRID SH-AWD, a
 three-motor hybrid system with seven-speed DCT with built
 in motor for the front wheels, and independent motors for
 the left and right rear wheels
・Release a production FCEV model in Japan in 2015, and
 the U.S. and Europe thereafter, to advance the
 popularization of FCEVs
Power Products ・Improve robotic lawnmowers and expand lineup of electrically
 driven products
Market new products to eliminate CO2 emissions from mobility and daily living ・Using demonstration test houses in japan, verify the operation and
 practicality of technologies developed to realize zero-carbon mobility
 and living by 2020, in collaboration with entities in other business
・Work with local governments in japan to carry out demonstration
 testing of the MC-β micro EV with the aim of developing nextgeneration
 vehicles that minimize environmental impacts while spreading the joy
 and freedom of mobility, and to offer community development solutions
 that are suitable for each location
Resource efficiency Ramp up 3R efforts Products: Continue to promote structural design with an emphasis on
 weight reduction, higher throughput yields, easier recycling, and
 maintenance; and sustainable design with an emphasis on easily
 recycled materials and use of recycled resins
Maintain an automobile shredder residue (ASR) recycling rate of more
 than 70%, and improve the motorcycle recycling rate to more
 than 95% by year-end 2015
Reduce exhaust emissions Make steady progress in reducing exhaust emissions to comply with
 tighter emission regulations in various countries
Substances of concern More strictly manage substances of concern used in products ・Continue to promote management of substances used in products and
 employ alternatives to substances of very high concern
・Continue to operate global management systems for substances
 used in products to comply with applicable regulations in various
 countries and reduce risk

● Mid-term plans for operations-related environmental initiatives (FY2015-FY2017)

Milestones on the road to 2020 Mid-term plans for operations-related environmental initiatives (FY2015-FY2017)
Climate change and energy Strengthen initiatives that span entire product life cycles Global operations: Reduce CO2 emissions per unit of production by 10% by FY2017 (baseline: FY2009)1
Purchasing domain:
・Promote measurement and reduction of supply chain GHG emissions in each
 region based on the Green Purchasing Guidelines
Production domain:
・Disseminate advanced environmental technologies developed at the Yorii
 Automobile Plant in Japan, which began operations in 2013, to other
 production sites worldwide
・Set benchmarks for energy use and set higher efficiency standards
Production domain:install renewable energy systems
・South America: 27-MW wind power system
・China: Megawatt-scale photovoltaic system
・Japan: Megawatt-scale photovoltaic system at new test course in Sakura,
 Tochigi Prefecture
Transportation domain:
・Increase transportation efficiency in each region by implementing
 modal shifts, improving truck fuel efficiency, etc.
・Spread packaging specifications without exterior containers worldwide
Sales and service, administration, product development domains:
・Promote energy conservation by encouraging eco-etiquette and using facilities
 more efficiently
Material and water resources Ramp up 3R efforts Production domain: ・Intensify efforts to reduce resource use, e.g., 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)
End-of-life product recycling: Make steady efforts to comply with end-of-life vehicle recycling laws in various countries
Minimize water use Production domain:
Reduce water use according to conditions in each region, for example by conserving water and using recycled water in production processes
Substances of concern Reduce VOC2 emissions from production processes Production domain:
・Develop VOC emissions-reduction technologies for coating processes and expand
 application to overseas production sites and motorcycle to coating processes
・Spread Honda Smart Ecological Paint introduced at the Yorii Automobile Plant
 in Japan to other new production site worldwide
Biodiversity Local conservation initiatives in accordance with the Honda Biodiversity Guidelines Corporate initiatives: ・Address hazardous substances and water use that lead to ecological degradation
・Educate suppliers and other business partners
Collaboration with local communities:
・Hondawoods3 activities
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
Advance sustainability reporting of environmental, social, and legal compliance

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.
2.VOC (Volatile Organic Compounds): Organic chemical substances that cause photochemical smog and are commonly used in the solvents of paints and thinners.
3. See page J62 of Japan Report to learn more about HondaWoods.

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