Disclosure of total GHG emissionsGlobal

■Honda GHG emissions in FY2013

As a responsible company operating in the mobility industry, Honda believes in the importance of calculating and disclosing greenhouse gas (GHG) emissions in order to drive progress in initiatives to reduce global emissions.
As the first milestone in this endeavor, in August 2012 Honda became the world’s first mobility company to disclose estimates of all GHG emissions from its entire value chain in conformity with the Greenhouse Gas Protocol (GHG Protocol)1, currently the world’s most widely used GHG emissions accounting standard. Honda released estimates of not only emissions from our own business activities (scope 1 and 2), but also all upstream and downstream activities (scope 3), from the procurement of raw materials, to the transportation and customer use of Honda products, and finally to the treatment of end-of-life products2.
Now we are taking steps to get a more accurate reading of the emissions that come from our entire value chain. We are doing this by expanding the boundaries of data collection3 and improving the accuracy of calculation methods used for categories that account for the largest percentage of scope 3 emissions (other indirect emissions).
As a result, the latest calculations show that GHG emissions from Honda business activities in fiscal 2013 were 4,950,000 t-CO2e, and total value chain emissions, which also includes other indirect emissions, were 275,910,000 t- CO2e.
We hope to leverage these improvements in data measurement and management to devise more effective emission reduction strategies.

  1. Published by the World Business Council for Sustainable Development and the World Resources Institute
  2. Read more about Honda's GHG emissions disclosure efforts in CASE 19 of "Environmental Documentary Honda Face." (http://world.honda.com/environment/face/)
  3. Additional emissions captured by expanding the scope of data collection in fiscal 2013 accounted for approximately 7% of total emissions

● GHG emissions from the entire Honda value chain

● Breakdown and changes in Honda GHG emissions

■ Promoting lifecycle assessment (LCA)

We have been developing our own methods to reduce the environmental impacts of our business activities and across product life cycles, from production through disposal.
In March 2002, we built the Honda Life-Cycle Assessment (LCA) Data System, a system for measuring CO2 emissions from all business activities, and since then have been making focused efforts to meet reduction targets set for each domain - production, purchasing, sales and services, administration, transportation, and so forth.
In fiscal 2007, we began operating a new, model-specific LCA system for calculating the life-cycle emissions of a single vehicle, from the procurement of raw materials through disposal. The LCA data of each product model obtained through this system is being used to develop more effective strategies for reducing life-cycle emissions.

LCA results for major automobile models released in FY2013 (Japan)

LCA results for major motorcycle models released in FY2013 (Japan)

・ Honda's model-specific LCA system assumes a product lifetime driving distance of 100,000 km for automobiles and 50,000 for motorcycles. These figures are different from those assumed for scope 3, category 11 emissions under the GHG Protocol.

■Reducing GHG emissions from use of sold products

Scope 3, category 11 emissions, emissions from use of products sold to our customers, accounted for more than 80% of emissions that took place across our value chain.
This means that determining how to reduce GHG emissions from the use of Honda products poses the greatest challenge to reducing total emissions.
The biggest step in reducing emissions from product use is improving fuel efficiency. We set a 2020 target to reduce global average product CO2 emissions by 30% from 2000 levels, based on which we will strive to improve product fuel efficiencies year after year.
During this time, however, we still expect our scope 3, category 11 emissions to continue growing. Production growth, which follows global economic growth, particularly in Asia, is occurring at a faster rate than improvements in fuel efficiency, so the net effect will be an increase in GHG emissions.

Emissions from Honda operations: Conceptual projection

But still, at some point we need to turn this growth curve downward. Honda’s vision is to reach a point where total emissions from product use are declining even as production is expanding.
To achieve that turnaround, we set our own standards called the Honda Environmental Performance Standards (HEPS). The goal is eventually to reduce environmental impacts to zero, an initiative we call Triple Zero. Along with HEPS we developed scenarios that represent the steps we plan to take in reducing GHG emissions by complying with the standards, including improving product fuel efficiency and increasing use of renewable energy.

● Scope 1: Direct GHG emissions from business activities, as defined by the GHG Protocol (examples: combustion of fuel oil at a manufacturing plant, emissions from work vehicles and company cars). The scope 1 figures presented in this report include all GHGs emitted directly by Honda Motor Co. and its consolidated subsidiaries and affiliated companies worldwide.

● Protocol 2: Indirect GHG emissions from a company’s use of energy, as defined by the GHG Protocol (examples: electrical energy used by a manufacturing plant or office). The scope 2 figures presented in this report include all GHGs emitted directly by Honda Motor Co.
and its consolidated subsidiaries and affiliated companies worldwide.

● Scope 3: Other indirect GHG emissions not included in scope 1 and scope 2, as defined by the GHG Protocol. Scope 3 is systematically broken down into 15 categories (examples: category 11 includes emissions arising from the use of sold products; category 12 includes emissions arising from the end-of-life treatment of sold products).

● The category 11 figures presented in this report represent the cumulative amount of greenhouse gases that will have been emitted by products sold by Honda in fiscal 2013 (automobiles, motorcycles, power products) as a result of their use by customers from the time they received those products until they dispose of them in the future. The “scope 3, other categories” figures presented in this report are the sum of emissions from categories 1, 2, 3, 4, 5, 6, 7, 9, 10, 12, and 15. As per the GHG Protocol, Honda excludes categories 8, 13, and 14 from its calculations, as these categories are either not part of Honda business activities or emissions from these categories are accounted for in other categories.

● The thinking behind scope 3, category 11 (emissions from product use)

Scope 3, category 11 accounts for more than 80% of all CO2 emissions that occur in Honda’s value chain. The reason category 11 is so large is because it includes not only the CO2 that Honda products sold in fiscal 2013 emitted in fiscal 2013, but also the CO2 those products will emit in the future. In other words, when a customer in Japan purchases a Honda vehicle, we expect that customer to drive the vehicle 10,000 km a year for 15 years1. Scope 3, category 11 is where we calculate all the CO2 that will be emitted during that time.
Scope 3 includes future emissions because it is based on an accounting method that counts emissions not when they occur but when the business activities that will result in those emissions occur. The 26 million automobiles, motorcycles, and power products that Honda sold to customers around the world in fiscal 2013 will continue emitting CO2 as they are used and until they are disposed of at some point in the future. Scope 3 says that these emissions are the result of Honda having sold its products in fiscal 2013.

1. Annual distance traveled, product lifetime in years: Based on the WBCSD's SMP Model developed by the International Energy Agency

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