Honda proactively employs advanced environmental and safety technologies, reflecting its commitment not only to comply with regulations but also to pass on the "joy of mobility" to future generations.

Environmental Initiatives

From the earliest days of the company, Honda has worked assiduously to address the environmental challenges of each era. As the environmental preservation movement gained momentum, and particularly in the 1990s when global concerns about the environment were accelerating, Honda stepped up its implementation of environmental structures and systems. In 1992, we established the "Honda Environment Statement," which clarifies our position on environmental conservation, and we have increased our environmental activities since that time.
Based on this statement, in 1999 Honda announced for fiscal 2006, the year ended in March 2006, targets for the improvement of cleaner exhaust gas and higher fuel economy. During the fiscal year, we continued working toward these objectives, and as of March 2006, we had achieved all of our targets on schedule.
Seeking to address the global warming issue, Honda is the first automaker in the world to announce for fiscal 2011, the year ending in March 2011, global CO2 reduction targets for its products and production activities.
In the future as well, Honda will continue to provide our customers with products that employ advanced environmental technologies, share joy with our customers, consider our own impact on the global environment and make every effort to address these challenges. Through our contact with more than 20 million customers worldwide, we are determined to take on an even greater level of responsibility for the global environment.

 Working to Achieve Fiscal 2011 Global CO2 Reduction Targets for Its Products and Production Activties

Honda's goal is to become a company that manufactures products that produce the lowest level of CO2 emissions at plants that also create the lowest CO2 emissions. We have established new targets to reduce CO2 emissions from our products and production activities worldwide.

Honda's Advanced Environmental Initiatives Overseas

Honda's mission is to operate manufacturing facilities throughout the world that place as little burden on the environment as possible as they manufacture products with superior environmental performance. Following is a look at the environmental performance of automobiles in our major regions. Through our unique technologies, Honda introduces products that demonstrate environmental performance that exceeds the regulations established in each region for the reduction of emissions and improvement of fuel efficiency. We are willing to contribute to the achievement of a sustainable mobility society by meeting people's mobility needs while minimizing the environmental impacts caused by our products. In the product domain, we are implementing measures based on the following three approaches. 1. Further improvements in the reduction of emissions from internal combustion engines and improvement of fuel efficiency 2. Evolution of hybrid vehicles 3. Promotion of alternative fuel-powered vehicles

1. Further Improvements in the Reduction of Emissions from Internal Combustion Engines and Improvement of Fuel Efficiency
North America (the United States) In the United States, Honda always provides the market with low emission vehicles that perform more highly than required by emissions regulations. We have introduced the first gasoline-powered low emission vehicles (LEVs), ultra low emission vehicles (ULEVs) and super ultra low emission vehicles (SULEVs) in the market. At present, nearly all Honda and Acura branded vehicles meet or exceed the Tier2 BIN5*1 exhaust gas standard (NOx: 0.07 g/mile). *1: Tier2 BIN5 This standard for exhaust emissions was established in the United States by the Environmental Protection Agency based on the U.S. Clean Air Act and went into effect in 2004. Regulation value of NOx for emission category BIN5: 0.07g/mile

Europe In Europe, since the introduction of the 2001 Civic (with some local variations) Honda has ensured that all models meet the Euro4*2 emission standard when they undergo full model changes. By introducing fuel-efficient, hybrid and diesel models, we are steadily reducing CO2 emissions. This is the case for diesel vehicles in particular. Since the Accord equipped with a Honda-developed 2.2L diesel engine went on sale in December 2003, we equipped the CR-V and the FR-V with this engine. In January 2006, we also began offering the new Civic with this engine. We also released the CR-V equipped with a diesel particulate filter (DPF)*3 to achieve higher fuel efficiency and cleaner exhaust.		*2: Euro3/Euro4 Emission regulations implemented in Europe from 2005. Although China and many Asian countries have introduced European regulations, at present they only comply with Euro3 standards. Euro4 is a stringent level that Thailand is considering adopting from 2008. *3: Diesel particulate filter (DPF) This ceramic filter attracts and strains out black smoke and other particulate matter from the exhaust of diesel vehicles, cleaning their emissions.

 Asia
In Thailand, Honda's locally produced Jazz has already achieved the Euro4 emission standard to be implemented in the future. Since the introduction of the Jazz, all models introduced in Thailand have achieved the Euro4 emission standard. In addition, Honda has already achieved the Euro3*2 emission standard implemented in Beijing, China, for all models sold in the market since December 2005.

2. Evolution of Hybrid Vehicles
In November 1999, Honda released the Insight, the first hybrid vehicle equipped with the Honda integrated motor assist (IMA) system, achieving the world's highest fuel economy among mass-produced gasoline-powered vehicles. In December 2001, we introduced the Civic Hybrid, and in December 2004 we began sales in North America of the Accord Hybrid, adopting Honda's Variable Cylinder Management system for its V6 engine. Further, in November 2005, we began sales of an all-new Civic Hybrid, equipped with the new 3-Stage i-VTEC + IMA Honda Hybrid System. In the future, Honda is developing a new dedicated hybrid vehicle suitable for family use in major automobile markets in the world. With this new dedicated hybrid vehicle, Honda will achieve further advancement of fuel efficient technologies and a reduction in cost. We plan to contribute to the reduction of CO2 emissions by delivering hybrid vehicles that are priced affordably enough to be adopted by more customers throughout the world.

3. Promotion of Alternative Fuel-Powered Vehicles
 North America (the United States)
In order to promote use of vehicles powered by alternative fuels, Honda leased 19 FCX fuel cell vehicles in North America (a total of 30 leases of the FCX in Japan and the United States). One of the vehicles was leased to the world's first private owner of a fuel cell vehicle. In Torrance, California, we are converting natural gas to hydrogen to power fuel cell vehicles. We are in the process of testing hydrogen fueling stations, such as the Home Energy Station, which provides hydrogen to generate heat and electric power in homes. We are trying to expand sales of the Civic GX, our natural gas-powered vehicle by promoting it together with the introduction of an affordable home refueling appliance for natural gas-powered vehicles. Honda is thus playing a leading role in the promotion of alternative fuel-powered vehicles.

 Other Regions (Brazil)
In Brazil, where ethanol produced from sugar cane is used as fuel, since the mid-1980s Honda has offered motorcycles and automobiles that run on a combination of ethanol and gasoline. The percentage of ethanol used in fuels in Brazil is increasing, with a 100% ethanol fuel, called E100, now available. To meet this challenge, Honda is developing a flex-fuel vehicle that operates on any gasoline-ethanol mixture. This vehicle is expected to go on sale in 2006.

Safety Initiatives

As a manufacturer of mobility products, Honda is committed to making products that provide high levels of safety, not only for drivers and passengers but also for pedestrians. At the same time, we engage in activities that promote safe driving and actively work to solve issues related to traffic systems. We will continue to promote "Hand Delivery of Safety," our key phrase for safety promotion activities to create greater harmony between people and vehicles to establish a safer and more comfortable mobility society.

Safety Technologies

Honda will develop safety technologies for accident prediction and prevention, technologies to reduce injuries to passengers and pedestrians from car accidents, and technologies for enhancing compatibility, while expanding our lineup of products incorporating such technologies. Honda has developed the world's first production motorcycle airbag system. The new system, which can help lessen the severity of injuries caused by frontal collisions, is to be made available on the new GoldWing motorcycle scheduled for release in mid-2006 in the United States. Honda has developed Honda ASV-3, Advanced Safety Vehicle equipped to exchange positional information with other vehicles using Inter-Vehicle Communication technology. This was a central objective of the five-year (April 2001-March 2006) ASV (Advanced Safety Vehicle)-3 Project*4 led by the Ministry of Land, Infrastructure and Transport. Additionally, Honda ASV-3 vehicles feature several new advanced safety technologies developed by Honda, including a system that uses cameras and millimeter wave radar to provide drivers with information on approaching vehicles and obstacles on the road; a system that offers driver support through steering and brake assist; and an emergency response system designed to aid in rescue efforts in the event of an accident. Honda plans to conduct further research and development of technologies deployed in the ASV-3 research vehicles with a view to implementing them in mass production vehicles. *4: ASV (Advanced Safety Vehicle)-3 Project The third phase of a project that Japan's Ministry of Land, Infrastructure and Transport began in 1991 to promote the development of advanced safety vehicles, which manufacturers of automobiles and motorcycles join voluntarily

 Promoting Safer Driving
Honda intends to enhance its contribution to traffic safety in mobility societies, including Asian countries. Honda also intends to remain active in a variety of traffic safety programs, including advanced driving and motorcycle training provided by local dealerships.
Driving and riding safety promotions modeled on Honda's activities in Japan were operated by 26 corporations in 20 countries. These promotions are modified to reflect the various driving and riding conditions and licensing systems of each country. In 2005, Russia began this promotion.
For motorcycles, in Turkey we have completed a new motorcycle training course and provided training for police, companies and individual riders. A Honda motorcycle dealership in Pakistan employs riding advisors, who conduct one-day schools and provide safety advice. In these ways, we are working to expand our Asia-focused safety activities.
For automobiles, we have introduced in Russia the framework of the Rainbow Dealer System practiced by Honda car dealerships in Japan, and in April 2006, we began training Safety Coordinators who will provide safety advice to customers at Honda dealerships. In such ways, we propagate Honda's philosophy to Russian drivers. As the number of automobiles in China continues to increase, Guangzhou Honda, our affiliate, has begun educating its employees as role models for safe driving.
By listening closely to opinions from our customers and broader society, Honda is seeking to extend its safety developments further in the future.