Honda-The Power of Dreams
Honda Issues Third-Annual North American Environmental Report

TORRANCE, Calif., U.S.A., October 4, 2007– Honda released its third annual report on the company’s environmental performance in North America, with a special emphasis on global warming and energy sustainability as two of the most critical environmental challenges Honda is seeking to address through its many product, manufacturing and facilities initiatives. 

The 2007 North American Environmental Report primarily covers the company’s operations during the period April 1, 2006 to March 31, 2007 (FY 2007).  The report looks at the environmental performance of the company’s automobile, power sports and power equipment products, its 14 major manufacturing plants in North America, and the corporate activities of 15 Honda group companies in the region. 

“We are pleased to provide our many customers and stakeholders with this report on Honda’s ongoing efforts to reduce the environmental footprint of its operations in the North American region,” said Tetsuo Iwamura, chief operating officer of Honda’s North American Regional Operation. “As Honda’s largest region for automobile sales and production, North America plays an important role in contributing to our company’s global initiative to advance its environmental performance.”

The 2007 North American Environmental Report is available for viewing and download at the company’s corporate Web site at www.honda.com, and its media web site at www.hondanews.com.

Following are highlights of the 2007 report:
Honda and Acura Automobiles
The company maintained its position as America’s most fuel-efficient car company with an industry-leading U.S. corporate average fuel economy (CAFE) for model year 2006 Honda and Acura cars and light trucks of 29.1 miles per gallon.  The company is seeking to increase its CAFE by five percent over 2005 levels by model year 2010.
Every model year 2007 Honda and Acura automobile designed and assembled in North America has achieved 90 percent or greater design recyclability1.
Honda expanded sales of its ultra-clean, natural gas-powered Civic GX and the Phill™ home refueling appliance to additional Honda dealers in California and 20 dealers in New York. 
The company has committed to the introduction of new, more efficient gasoline, gas-electric hybrid, and clean diesel powertrain technologies over the next several years.
100 percent of model year 2007 Honda and Acura automobiles sold in the U.S. met or exceeded both California’s and the U.S. EPA’s stringent Tier 2 Bin 5 exhaust emissions standards, without the use of fleet averaging.

1 Vehicle recyclability calculated using Honda’s own internal methods, based on the Japan Automobile Manufacturers’ Association (JAMA) standard.


Power Sports Products
The company has applied cleaner, quieter and more efficient 4-stroke engine technology to the breadth of its North American power sports product lineup and is expanding the use of programmable fuel injection (PGM-FI) for further improvements in emissions and fuel efficiency.

Power Equipment and Marine Products
The company has applied 4-stroke engine technology to its complete North American power equipment line, and in the U.S. is applying the more stringent California emissions standards to products sold in all 50 states.

North American Manufacturing (“Green Factory”)
Thirteen of the 14 major North American manufacturing plants operating during FY2007 were third-party certified to the ISO 14001:2004 environmental management standard.
CO2 emissions from automobile manufacturing2 increased about 37 percent to 1.07 million metric tons from an FY2001 baseline of 0.78 million metric tons, due in large part to increased production activity.
CO2 emissions intensity, as measured by average CO2 emissions per automobile produced, increased slightly from the FY2001 baseline of 709 kg to 711 kg in FY2007, but fell significantly  from a seven-year high of 761 kg in FY2005, as the company moved to increase the utilization of its production capacity in the region. 
Total energy used for each automobile produced fell 4.5 percent to 6.6 gigajoules from an FY2001 baseline of 6.9 gigajoules, due to ongoing efforts aimed at improving energy efficiency, as well as more efficient utilization of production capacity.
Emissions of volatile organic compounds from auto body painting (accounting for roughly 60 percent of all manufacturing-related VOC emissions) continued their decline from a seven-year high of 28.7 grams/meter2 (g/m2) in FY2001 to 15.6 g/m2 in FY 2007.
Auto-specific chemical releases, reported to the TRI and NPRI inventories for U.S. and Canada manufacturing facilities, declined 45 percent on a per-auto basis from FY2000 levels. Total chemical release fell 27 percent in the same time period.
Water consumed for each automobile produced in North America fell 7.6 percent to 730 gallons in FY2007 from 790 gallons in FY2006, but was up slightly from the FY2001 baseline of 700 gallons.  
Waste to landfills per automobile produced fell 66 percent to 5.9 kilograms in FY2007 from a seven-year high of 17.4 kg in FY2001, as four Honda plants achieved zero waste to landfills.
As a result of Honda’s “Green Purchasing” program, 80 percent of Honda’s more than 600 North American OEM suppliers are now third-party certified to the ISO 14001 environmental management standard.

2 CO2 emissions from electricity and natural gas consumed in the manufacturing process.


Minimization of Waste and Toxic Substances

Two Honda facilities in North America attained Leadership in Energy and Environmental Design (LEED) Gold certification from the U.S. Green Building Council: Honda R&D Americas’ central plant in Raymond, Ohio; and, American Honda’s Northwest Regional Facility in Gresham, Oregon.  The company is working to achieve Gold certification for two new buildings in FY2008: the Acura Design Studio, in Torrance, California; and, the Midwest Consolidation Center in Troy, Ohio.
Honda is engagedin projects to further reduce the end-of-life impact of its products, including hybrid battery recycling.  The company is also researching ways to reduce automobile shredder residue (ASR); improve the recycling of catalytic converters; and, methods for end-of-life treatment of plastic fuel tanks.
Efforts to reduce or eliminate use of substances of concern were continued in FY2007, including reductions in the use of lead in circuit boards, the phase out of octa- and penta-polybrominated diphenyl ethers (PBDEs), and the reduction in the number of interior and exterior parts made with PVC.

Additional information on Honda’s environmental performance outside of North America can be found in Honda Motor Company’s Environmental Report, published annually since 1999, with a focus on Honda’s activities in Japan – available at world.honda.com.  Also, an environmental report covering Honda’s Asia/Oceania Region, has been published by Honda in Thailand, since 2000.  In 2006, a newly compiled Corporate Social Responsibility Report covers environmental efforts in that region together with various aspects of a responsible corporate citizen.

Honda in North America
Honda began operations in North America in 1959, with the establishment of American Honda Motor Co., Inc., Honda’s first overseas subsidiary.  Honda now employs more than 35,000 associates in North America and operates 14 major manufacturing plants producing automobiles, motorcycles, all-terrain vehicles, personal watercraft, engines, transmissions and other components.  Many of these products are designed and developed at Honda’s U.S. R&D centers in Ohio, Los Angeles and North Carolina.  Honda annually purchases more than $16 billion in parts and materials from suppliers in North America.