In 2010, Honda announced its direction for the decade leading up to 2020: to provide "good products to customers with speed, affordability, and low CO2 emissions."
The Honda Environmental and Safety Vision - to realize "the joy and freedom of mobility and a sustainable society where people can enjoy life" - was established based on this direction.
Providing the joy and freedom of mobility has been Honda's aim in the development of personal mobility products since the company's founding. The joy of mobility is not just t he pleasure of driving your own car or motorcycle.
It's also the excitement of making discoveries and realizing dreams through the freedom mobility provides.
Realizing a sustainable society where people can enjoy life, on the other hand, will require us to focus corporate resources on addressing climate change and energy issues as top priorities.
To realize the two components of our Environmental and Safety Vision, we will lead the industry in offering outstanding environmental and safety performance with products and technologies that proudly bear Honda's identity.
To thrive in an ever-changing global economy and market, Honda must transition to a new global organizational structure that, in every region (the six regions into which Honda has organized its worldwide operations), consistently rolls out competitive products that target local needs before other companies.
Specifically, we need to finish the work of assembling an organization that is globally optimized for producing the best products for all of our customers. This includes building development capacities for responding quickly to market needs, enacting product design and procurement structure reform, and further improving production efficiency, all while adapting these organizations and facilities to national and local industrial infrastructure in rapidly growing economies in developing nations as well as in mature economies.
The same goes for environmental management. Honda puts climate change and energy at the top of the list of global environmental issues that it needs to address. To respond to the environmental laws, standards, and challenges unique to each country and region, we believe reducing environmental impacts based on firm regional autonomy is the most appropriate business organization for Honda.
Last year, we announced estimates of all greenhouse gas (GHG) emissions that resulted from Honda business activities in fiscal 2012. These figures, calculated in accordance with the Greenhouse Gas Protocol, the most widely used GHG accounting and reporting standard worldwide, included data on Scope 3 (which includes emissions from use of sold products), making Honda the first automaker in the world to release emissions data covering its entire value chain.
In fiscal 2012, Honda emitted the equivalent of 225 million tons of CO2e. Of that, 196 million tons - or 87% - came from the use of Honda products sold in that year (which includes GHGs emitted across their lifespans now and into the future). Clearly, improving the fuel efficiency of products must be our core strategy for reducing CO2 emissions, but we think that taking all available actions to reduce emissions - regardless of the size of their impact - is the responsible approach to take as a corporate citizen.
Until last year, Honda's focus in this area was on doing research to understand the size of our environmental footprint. The next stage will include monitoring and managing GHG emissions across our value chain and devising and implementing specific strategies to reduce them, such as expanding hybrid options to our entire lineup and commencing operation of the environmentally advanced Yorii Plant. Expanding this approach beyond CO2 emissions to include all types of environmental pollutants, improving monitoring accuracy, and realizing further reductions, will be our environmental management policy for the years ahead.