Asia & Oceania

20 ORT 13 l

Env nda A AN ironsia & O cea N m RE UALentanlia Regio P na

Ho

RE A ND ALI A N WH D FR ZIN ER A S EEDG T E P US O HE EO TA M O JO PL INA F Y E C B L MO AN E S BIL EN OC ITY JO IET YL Y IFE

Honda Asia & Oceania Regional Europe/Middle East/Africa

China Japan

Asia & Oceania

North America

ENVIRONMENTAL ANNUAL REPORT

2013

South America

asianhonda.com

Reducing and Reporting Environmental Impacts in 6 Regions Worldwide Dri ven by our philosophy of building products close to the customer, Honda has manufacturing operations in 6 regions worldwide. In fiscal 2013, we delivered 26 million products to customers around the world. Always conscious of the environmental impact of our operations, we are working hard to take environmental responsibility to ever-higher levels around the world. In 2010, we established a new set of CO2 emission reduction targets for our products, aiming by 2020 to provide “good products to customers with speed, affordability, and low CO 2 emissions.” As we seek to realize the Honda E n v i ro n m e n t a l a n d S a f e t y V i s i o n “ t o realize the joy and freedom of mobility and a sustainable society where people can enjoy life” based on these targets, we are accelerating global ef fort s t o a dd re ss climate change, energy issues, and other environmental challenges. And amidst increasing global pressure on companies to disclose their environmental impacts, we are actively working to disclose the environmental performance and initiatives of each region, the highlights of which are compiled yearly in regional environmental reports.

Automobiles

Motorcycles

Annual unit sales by region (FY2013), and regional environmental reports

Annual unit sales

248,000 336,000 1,122,000

Latest data as of March 31, 2013

Annual unit sales

Environmental report


596,000 1,298,000 Power products: included in figure for Asia & Oceania

Due out September 2013

Europe/Middle East/Africa

Annual unit sales

1,656,000 280,000 2,614,000

Due out October 2013

Asia & Oceania

543,000 11,962,000 1,886,000

Due out August 2013

Due out September 2013

North America

Annual unit sales



China Japan

Annual unit sales

Power products and other


716,000 218,000 308,000

South America

Due out June 2013

Annual unit sales

164,000 1,589,000 143,000


Due out August 2013

*Report covers from fiscal 2012 are shown for all regions except Japan and Asia & Oceania

Honda Environmental Network in The Asia & Oceania Region INDONESIA

P.T. Astra Honda Motor P.T. Honda Power Products Indonesia P.T. Honda Prospect Motor P.T. Honda Precision Parts Manufacturing P.T. Honda Access Indonesia Ltd.

AHJ HPPI HPM HPPM HAC-IN

Honda Car Philippines Inc. Honda Philippine Inc. Honda Parts Manufacturing Corp.

HCPI HPI HPMC

Honda Motorcycle & Scooter India (Private) Ltd. Honda Motor India (Private) Ltd. Honda R&D India (Private) Ltd. Honda Cars India Ltd. Honda Siel Power Product Ltd. Honda Access India (Private) Ltd.

HMSI HMI HRID HCIL HSPP HAC-ID

PAKISTAN

Atlas Honda Ltd. Honda Atlas Cars (Pakistan) Ltd. Honda Atlas Power Product (Private) Ltd.

AHL HACPL HAPPL

MALAYSIA

Honda Malaysia Sdn. Bhd. Boon Siew Honda Sdn. Bhd. HICOM-Honda Manufacturing Malaysia Sdn. Bhd. Honda Auto Parts Manufacturing Sdn. Bhd.

HMSB BSH HICOM MHAP

Bukit Batok Driving Center Ltd. Singapore Safty Driving Center Ltd.

BBDC SSDC

Vietnam Auto Parts Co., Ltd. Honda Vietnam Co., Ltd.

VAP HVN

Honda Taiwan Motor Co., Ltd. Honda Taiwan Co., Ltd. Honda Access Taiwan Co., Ltd.

HTW-M HTW HAC-TW

Honda Korea Co., Ltd.

HKO

Bangladesh Honda Ltd.

BHL

Honda Australia M.&P.E. Pty. Ltd. Honda Australia Pty. Ltd.

AUH-MPE AUH

Honda New Zealand Ltd.

HNZ

PHILIPPINES

INDIA

SINGAPORE VIETNAM

ASIA THAILAND

TAIWAN Asian Honda Motor Co., Ltd. A.P. Honda Co.,Ltd. Asian Parts Manufacturing Co., Ltd. Honda Automobile (Thailand) Co., Ltd. Honda Engineering Asian Co., Ltd. Honda R&D Asia Pacific Co., Ltd. Hodna R&D Southeast Asia Co., Ltd. Thai Honda Manufacturing Co., Ltd. Honda Leasing Thailand Co., Ltd. Honda Automobile Insurance Broker Co., Ltd. Honda Access Asia And Oceania Co., Ltd.

ASH APH APM HATC EG-AS HRAP HRST TH HLTC HAIB HAC-AO

KOREA BANGLADESH

OCEANIA AUSTRALIA NEW ZEALAND

Key indicators of Honda’s environmental performance CARBON DISCLOSURE PROJECT 2nd in Japan In the Carbon Disclosure Project’s (CDP) 2012 survey, Honda earned a higher disclosure score than in 2011 and was the second-highest scoring Japanese company in the Global 500*. We also placed in the Carbon Disclosure-Leadership Index (CDLI) for the second year running. *Global 500: The 500 largest companies (by market capitalization) that make up the FTSE Global Equity Index Series.

16th Nikkei Environmental Management Survey 9th place Honda ranked 9th out of 1,730 manufacturers examined in the 16th Environmental Management Survey by news publishing company Nikkei Inc. Newsweek Green Rankings 2012 TOP 250 Honda was chosen among the top 250 global companies in the 2012 Green Rankings by Newsweek. Buna-no-Mori Environmental Survey 2012 Rank A Honda earned the highest rank, rank A, in the 2012 Buna-no-Mori environmental survey by NKSJ Risk Management, Inc., and was also selected as a component of the Buna-no-Mori eco-friendly investment fund.

Environment-related external relations activities Honda is a member of the World Business Council for Sustainable Development (WBCSD), and a member of the WBCSD’s Urban Infrastructure Initiative (UII) Core Group. In May 2013, the UII presented a report outlining several proposals to help Kobe city achieve its sustainable development objectives. We took part in the dialogue with Kobe and in drawing up plans for sustainable mobility infrastructure. We also are participating in Vision 2050 activities and Sustainable Mobility Project 2.0.

Contents 01 Honda Environmental Network in the Asia & Oceania Region 03 Contents 05 Top Message

Direction

07 The Road to a Healthier Environment

The Road to a Healthier Environment

09 Honda Environment Statement / Honda Environmental Vision 11 Pursuing the Honda Environmental Vision 25 Biodiversity Initiatives: Honda Biodiversity Guidelines / Biodiversity initiatives in the Asia & Oceania Region 29 Progress in Meeting Environmental Targets

Global

43 Global Environmental Management

Global Initiatives

63 Environmental Initiatives in Product Development: Featured initiatives / Automobiles / Motorcycles and scooters / Power products

Asia & Oceania

91 Honda Environmental Strategy in the Asia & Oceania Region

Regional Initiatives

93 Environmental Management Systems in the Asia & Oceania Region 101 Product Development

Product recycling (3Rs)

Product development

115 Purchasing 119 Production

Sales and Service

Administration

Purchasing

129 Transportation 135 Sales and Service

Transportation

141 Product Recycling (Reduce, Reuse, Recycle) Production

145 Administration 147 Honda R&D Initiatives

Additional Information

151 Philanthropic Environmental Initiatives

About this Report WBCSD-UII A solutions landscape for Kobe

Honda also conducts various external relations activities in collaboration with policy makers in each region. We advise regional and national governing bodies on how to make mobility systems environmentally sustainable from a technological standpoint, partner with governments for conducting technology development projects, and serve on committees held by national government agencies. Public-Private Partnerships: E-KIZUNA Project (Saitama Prefecture, Japan), California Fuel Cell Partnership (California, U.S.), and others

What’s Inside

Environmental Information Disclosure

Editorial Policy for the Asia & Oceania Environmental Annual Report

This report covers Honda’s activities in the Asia & Oceania region - Thailand, Indonesia, Philippines, India, Pakistan, Bangladesh, Malaysia, Singapore, Vietnam, Taiwan, Korea, Australia and New Zealand — including company policies, the overall direction of Honda’s environmental initiatives, and a current assessment of the environmental impact of its operations — for the fiscal year that began April 1, 2012, and ended March 31, 2013 (FY2013). Note that the report also refers to activities in FY2013 as well as to previous ongoing initiatives.

Asia & Oceania Environmental Annual Report is published in order to present environmental corporate information including Global Honda’s policies and future direction with respect to the environment. The report focuses particularly on the results of the year’s initiatives in each management domain, and on progress made toward targets from the point of view of Honda’s corporate activities throughout its products’ life cycles.

In the Asia & Oceania region, Honda recognized that an involvement in efforts to combat various kinds of environmental problems was one of its most important management priorities. In 2000, Asian Honda Motor (ASH) first published the Asia & Oceania Environmental Annual Report for the region. The second edition was subsequently released in 2003. We published the report to inform the public about our environmental initiatives.

Electronic Format To reduce the environmental impact of Honda’s reporting, this report is published in electronic format only.

By disclosing a wide range of information, we hope to facilitate communication and feedback, thereby strengthening our environmental conservation initiatives going forward.

Honda has been implementing various environmental initiatives to reduce the environmental impacts in the region, along with the policy and legislation in each country which are now getting stronger. We released the 3rd edition of the report in 2012. We constantly launch the 4th edition this year, following further developments of environmental management in the Asia & Oceania region. We will continue to inform the public about these initiatives, and in particular about the progress we have made each year. Other details and information are regularly posted on our website (http://www.asianhonda.com).

p To ge sa es M

Top Message

FY2013: A Year of Achievement The Asia & Oceania Region posted spectacular business results in fiscal year 2013. Automobile sales volume surpassed our previous sales record in each country and set a new all – time record for the region. In Thailand, we introduced a number of new automobile models providing high fuel economy and low CO2 emissions with a broader line of products to meet a wide variety of customer segments. The new models launched in FY2013 included hybrid models. We also offered models powered by alternative fuels – City CNG, and E85 – compatible versions of Civic, CR – V and the all – new Accord. We began local production of hybrid vehicles in Thailand and Malaysia. Our region also has the highest sales record of motorcycles. Since we completely ceased production of 2 – stroke motorcycles throughout the region in 2003 and introduced 4 – stroke engines which significantly reduce pollution, we are continuously expanding the lineup of electronic fuel injection-equipped motorcycles in Indonesia and increasing fuel efficiency levels for new motorcycles models in Thailand, Vietnam and India. The Dream Yuga is one such highly durable motorcycle marketed in India, achieving high fuel economy of 72 km per liter.

“Pursuing Sustainable Growth and Environmental Performance”

Sharing the Position in Environmental Stewardship Asia & Oceania is expected to continue showing impressive growth, but environmental regulations in a number of counties will become increasingly strict. To assert leadership in this situation we need to expand local procurement and production, and find and develop new local suppliers. Supplier selection and development is the key to expanding local production and procurement in the Asia & Oceania Region. The key to future business is developing suppliers that share Honda’s commitment to the environment and will work mutually to reduce environmental impacts. Although awareness and activity vary between countries, we hope to expedite progress by actively promoting the sharing of best practices and bringing everyone to the same level.

Hiroshi Kobayashi

President & CEO, Asian Honda Motor Co., Ltd. Chairman, Honda Asia & Oceania Environmental Committee

Challenges: The Region of Divergence Asia & Oceania is a very broad region. Our area of operation spans from Pakistan to South Korea, and as far south as Australia and New Zealand. These countries have specific market needs as well as a wide divergence in environmental awareness. Within the characteristics of this region, Honda created a broad range of products and technologies that respond to the demands of local customers while complying with certain new and more stringent regulations. Facing this challenge, the automobile market in India and other emerging countries are growing quickly, which has been met with moves in these countries to introduce more progressive environmental regulations with respect to fuel economy and exhaust emissions. In line with Honda’s direction toward the year 2020, we are strengthening our commitment through the Honda Environmental and Safety Vision – striving to realize “the joy and freedom of mobility” and “a sustainable society where people can enjoy life.” At Honda, we pride ourselves in providing customers with high-quality products – that are more fuel – efficient and environmentally-responsible – designed to meet local desires and requirements.

05

Honda Asia & Oceania Regional

Honda’s Identity Toward 2020 As Honda recognizes that climate change and energy are the top concerns of global environment issues, we have expanded our efforts beyond our products through all aspects of our business operations from manufacturing to corporate activities. Moreover, we are committed to reducing our environmental footprint and improving the accuracy of a monitoring system in the effort to achieve further reductions. Striving to be a company the society wants to exist, we will work to accomplish this ultimate goal while growing our business by pursuing environmentally sustainable reforms.

06

Environmental Annual Report 2013

Honda’s approach to environmental initiatives

Honda global brand slogan

Directions for the 21st century

Striving to be a company that society wants to exist Expanding the joys

Creating the joys

1. Honda Environmental Statement

Ensuring the joys for the Next Generation

2. Honda Environmental and Safety Vision

Initiatives, Open-minded, Challenge, Co-evolution Society

株主 Shareholders 投資家 and investors

Safety

Direction The Road to a Healthier Environment

07

The Road to a Healthier Environment

09

Honda Environment Statement / Honda Environmental and Safety Vision

11

Pursuing the Honda Environmental and Safety Vision

25

Biodiversity Initiatives : Honda Biodiversity Guidelines

29

Progress in Meeting Environmental Targets

CSR Objectives

Quality お客様 Customers

Realizing the joy and freedom of mobility and a sustainable society where people can enjoy life

Honda global environmental symbol

地域 Local 社会 communities

3. Assessment of environmental issues

Operations Environment

Dealers 販売会社

(1) Based on our basic goal of reducing environmental impacts at every stage in the life cycle of our products, we (2) strive to realize the joy and freedom of mobility and a sustainable society where people can enjoy life. We (3) recognize climate change and energy issues as the greatest challenge to our business, resource problems as a major challenge, and biodiversity as a serious concern. We established (4) a future vision to achieve zero CO2 emissions, zero energy risk (through our energy management technologies), and zero waste to tackle these challenges, and announced and are now implementing concrete measures to do this (5) for our products and (6) in our business activities.

Suppliers お取引先

Greatest challenge Climate change and energy issues

Major challenge Resource problems

Associates 従業員

Fundamental Beliefs Company Management Principle policies

Honda Philosophy

Stakeholders

4. Honda’s vision for future operations

Zero CO2 emissions using original renewable energy

Honda Approach to CSR Propelled by the Honda Philosophy, we set our course on being a company that society wants to exist by sharing joys with people throughout the world.

5. Product-based initiatives

6. Operations-based initiatives Product recycling (3Rs)

Sales and Service


Product development

Administration

Transportation

07

Concern Biodiversity

Purchasing

Production

Di c re

Direction

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Honda Environment Statement


Honda Environmental and Safety Vision

Honda has endeavored to solve environmental problems since the 1960s. We introduced the Compound Vortex Controlled Combustion (CVCC) engine, becoming the world’s first automaker to comply with the 1970 U.S. Clean Air Act—a challenge thought by many at the time to be insurmountable. In 1992, we released the Honda Environment Statement to articulate the basic stance we had developed until that time to reduce environmental impacts at every stage in the life cycles of our products. Today, this Honda Environment Statement is the foundation upon which we carry out all of our environmental efforts.

We announced that our direction in the years leading up to 2020 would be to provide “good products to customers with speed, affordability, and low CO2 emissions.” We dream a society where everyone can safely and confidently go anywhere and the Honda Environmental and Safety Vision was set. The vision expresses our passionate desire to contribute to the sustainable growth of society and harmony between people so we can continue to deliver excitement through products and services that support personal mobility and a better life in general.


Honda Environmental and Safety Vision

As a responsible member of society whose task lies in the preservation of the global environment, the company will make every effort to contribute to human health and the preservation of the global environment in each phase of its corporate activity. Only in this way will we be able to count on a successful future not only for our company, but for the entire world. We should pursue our daily business interests under the following principles:


In working to achieve this vision, the following objectives shape our environmental initiatives around the world: • At each stage of a product’s life cycle (products, corporate activities), Honda aims to • Minimize the use of fossil fuel and resources newly recovered from the Earth • Minimize environmental impacts, including greenhouse gas emissions • Honda aims to reduce to zero greenhouse gas emissions from Honda products used for mobility and in people’s everyday lives

1. We will make efforts to recycle materials and conserve resources and energy at every stage of our products’ life cycle from research, design, production and sales, to services and disposal. 2. We will make every effort to minimize and find appropriate methods to dispose of waste and contaminants that are produced through the use of our products, and in every stage of the life cycle of these products. 3. As both a member of the company and of society, each associate will focus on the importance of making efforts to preserve human health and the global environment, and will do his or her part to ensure that the company as a whole acts responsibly.

We established “Blue Skies for Our Children” as a global environmental slogan expressing our commitment to do more to realize our environmental and safety vision. The graphic on the left symbolizes the global environmental slogan.

4. We will consider the influence that our corporate activities have on the local environment and society, and endeavor to improve the social standing of the company. Established and announced in June 1992

09


10


Direction

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Direction

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Pursuing the Honda Environmental and Safety Vision In working toward the Honda Environmental and Safety Vision for the future, we objectively assess current environmental problems, analyze the kinds of risks and opportunities they represent, and respond in various ways. Honda is promoting environmental initiatives in both business activities and product development, with the aim of eventually becoming a company with zero environmental impact.

• Environmental management system To organize and analyze in a timely manner the impacts of various environmental issues on our business, particularly climate change and energy, and to develop and execute specific measures for addressing them, we have constructed a comprehensive global management system (page 43). Based on this system, we have established our own CO2 emission reduction targets, considered to be the principal driver of climate change (page 29), and are carrying out various initiatives to realize the Honda Environmental and Safety Vision, such as stepping up efforts in each region across the globe to achieve these targets.

Honda’s current recognition and response to environmental issues

• Assessment of business activity risks and opportunities

• Current assessment of environmental issues

• Risks and opportunities relating to climate change and energy issues Honda’s response to the key challenges of climate change and energy issues does not just involve initiatives for envi-Honda’s current recognition and response to environmental issues Pursuing the Honda Environmental and Safety Vision In working toward the Honda Environmental and Safety Vision for the future, we objectively assess current environmental problems, analyze the kinds of risks and opportunities they represent, and respond in various ways. Honda is promoting environmental initiatives in both business activities and product development, with the aim of eventually becoming a company with zero environmental impact. ronmental conservation. While these environmental issues pose risks to our business continuity, they also present opportunities to create and expand new businesses. Honda considers it essential to engage in business activities and decide and execute specific measures, having sufficiently assessed these risks and opportunities. Accordingly, we have compiled all of the major opportunities and risks we currently expect from climate change and energy issues, and have been taking measures in response.

• Climate change and energy issues are our greatest challenges To continue doing business across the globe as a member of society and to make progress toward the Honda Environmental and Safety Vision, we must correctly assess the environmental issues that exist in the world today and the way in which Honda business activities relate to and influence them. Accordingly, Honda has organized various environmental issues and identified those that pose the greatest risk to our business and stakeholders. As a global corporation supplying mobility products, we see climate change and energy issues as the greatest challenges facing the company, followed by resource problems.

Honda’s general assessment of environmental issues from a global perspective

Climate change, energy issues

Stakeholder concerns

Biodiversity Waste Substances of concern

Air, water, and soil pollution Resource problems

Noise/ Vibration

Impact on Honda Business Activitiess

11


12


Direction

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Perceived opportunities

Honda’s assessment of opportunities and risks of climate change and energy from a global perspective

We see the increasing scarcity of resources stemming from the response to climate change and energy issues as another major challenge. In recognition of the risk of resources becoming depleted, more difficult to obtain, and more expensive to dispose of, we are developing alternative technologies, technologies to reduce, reuse, and recycle these resources, and we are also diversifying our supply chain. In fiscal 2013, we actively engaged in measures such as establishing a scheme for the closed-loop recycling of rare earths (see Note2) extracted from nickel metal hydride batteries for hybrid vehicles.

Changing consumer values Incentives to switch to (emphasis on environmental performance) products that use next-generation energy (e.g., electric/hybrid Energy diversification (e.g., deployment of smart community (see note) technologies) vehicles, solar power) Tighter regulation of product related GHG emissions Direct operational risks from rising sea levels and extreme weather events

• Risk management led by the World Environment and Safety Committee We clarify our understanding of such risks and opportunities relating to climate change and energy issues by analyzing them from three different perspectives: by product categories (motorcycles, automobiles, and power products), with a focus on our business and product development operations; by region, which is based on our unique regional management structure; and by function, such as production and sales. The Honda World Environmental and Safety Committee assesses these risks and opportunities from a global perspective, the findings of which are then used by our Regional Operations (regional environmental committees), Business Operations and Functional Operations in the formulation of various management policies and strategies, such as in formulating and updating our medium-term plans for environmental initiatives. We conduct this risk management process every six months and as needed.

Tighter regulation of operations-related GHG emissions Worsening resource problems Increasing reporting requirements for GHG emissions

Perceived risks

Triple Zero: Toward a zero-impact society • Measures based on risk and opportunity assessment To minimize the regulatory risk our products face as emitters of GHGs, we set forth CO2 emission reduction targets for our automobiles, motorcycles, and power products for 2020. Major initiatives to reduce CO2 emissions include the introduction of the new Earth Dreams Technology hybrid powertrains for automobiles, and the marketing of electric vehicles (page 73). In response to changes in consumer awareness and growing energy diversification needs, we are continuing demonstration testing of electric mobility products in Japan, the U.S., and China for the establishment of a future smart mobility society. We also are accelerating development projects, having completed the construction of a demonstration Honda Smart Home System house and a solar-powered hydrogen station (page 51) in 2012. We are working to reduce GHG emissions in each region and domain of our business in order to minimize regulatory risk relating to emissions from each business site. We compile the results of our efforts and make them known to the public once a year through this Environmental Annual Report.

• Giving shape to the Honda Environmental and Safety Vision Triple Zero: The ultimate zero-impact society In order to realize the Honda Environmental and Safety Vision—our vision for the future—we are engaging with climate change, energy and resource issues through our technology and business activities, with the aim of creating a zero-impact society. As a specific model for this, Honda has announced the Triple Zero concept. Zero CO2 emissions through renewable energy In response to climate change, our long-term goal is to deploy solar power and other renewable energy systems to bring well-to-wheel (see Note3) CO2 emissions down to zero. To get there, we will develop the technologies needed to reduce and eliminate emissions, while at the same time steadily reducing product life-cycle emissions and emissions from business activities through a range of initiatives including product fuel-efficiency improvements and increasing efficiency in product transportation.

Note: Smart communities: Communities that, through broad partnerships between governments and private entities in the fields of next-generation energy infrastructure, telecommunications, traffic systems, and various products and services, are engineered to be more efficient, self-sustaining, and dynamic.

Note2: Read more about the recycling of rare earths in Case17 of “Environmental Documentary Honda Face.” (http://world.honda.com/environment/face/2012/) Note3: Well-to-wheel: Typically, all steps from extracting petroleum resources to their use as fuel in a vehicle. It can also refer to the life cycles of non-petroleum energy resources, from generation to their final use in propelling a vehicle.

13


14


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Zero energy risk In response to energy issues, our long-term goal is to achieve zero energy risk by becoming energy self-sufficient through the use of solar-powered hydrogen stations, and by raising the efficiency of environmental management through innovations in energy management technologies. To get there, we will reduce energy risk by cutting energy use through product fuel efficiency improvements, and by diversifying energy sources through the deployment of hybrid and other electromotive technologies. Progress in this area will also lead to reduced risk for Honda’s business activities.

Honda Environmental Performance Standards (HEPS) and carbon reduction scenarios Scenarios for achieving zero CO2 emissions Reducing CO2 emissions in three stages To achieve zero CO2 emissions, one of the three objectives of Triple Zero, our aim is to eliminate the life-cycle emissions (emissions from all stages in the life of a product, from its manufacture using raw materials, to customer use, to disposal) of all Honda products, including through such strategies as renewable energy carbon offsets. However, given that many mobility products today still run on fossil fuel burned in an internal combustion engine, zero CO2 emissions is not something we can achieve overnight. That is why we have developed three scenarios to guide us through steady reductions, and ending with the complete elimination of CO2 emissions. These scenarios, which are to be pursued in parallel, are: 1) Reduce emissions through efficiency improvements of internal combustion engines, 2) Reduce emissions by introducing energy-diversification and environmentally innovative technologies, and 3) Eliminate emissions through the use and [comprehensive/ fully integrated management] of renewable energy (see figure below).

• Zero waste In response to resource problems, our aim is to completely close the loop for all resources and bring product life-cycle waste down to zero. We will do this by developing technologies to shift away from using precious resources, by developing and perfecting reduction, reuse, and recycling (3R) technologies, and by reducing water resource use. By reducing and eliminating the use of hazardous chemicals as well as waste, we will strive to eliminate all materials from our products and business activities that have an adverse effect on human health and the environment.

Triple Zero symbols

• Honda Environmental Performance Standards To move our products along these scenarios, in fiscal 2012 we established the Honda Environmental Performance Standards (HEPS), an independent product classification and certification system designed to shed light on how Honda products are contributing to achievement of the three scenarios outlined above. Under HEPS, products are grouped into three categories, each with its own requirements for certification. By making all new Honda products compliant with one of the three standards, we will make steady progress toward realizing zero CO2 emissions.

In this year’s report, technologies, products, and inititives that contribute to the realization of Triple Zero are marked with one of three Triple Zero symbols.

CO2 emission reduction/ elimination technology

15


Waste reduction/ elimination or 3R technology

CO2

E

W

Energy risk reduction/ elimination technology

16


Direction

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n tio Hi Efficient Products Products that emit less CO2 emissions because of improved internal combustion engine efficiency. This category includes products that incorporate technologies for improving fuel combustion and transmission efficiency and reducing friction between engine parts. Compliance is determined based on how well a product reduces or helps reduce CO2 emissions during use compared to preceding models.

Innovative Products Products that emit less CO2 because they use an environmentally innovative technology or alternative energy source. This category includes motorcycles that incorporate Honda’s patented Idle Stop System, automobiles that incorporate hybrid technologies or direct-injection engine technologies, and power products with a new electronic governor technology for regulating engine speed. Alternative energy technologies include motorcycles and automobiles that can run on ethanol, and power products that can run on gaseous fuels. Compliance is determined based on how well a product reduces or helps reduce CO2 emissions during use compared to preceding models.

Revolutionary Products Products that generate or use energy from renewable sources or help manage the generation and consumption of such energy, thereby contributing to the elimination of CO2 emissions. This category includes products that incorporate electromotive technologies or technologies for generating or using renewable energy (e.g., hydrogen fuel for automobiles, solar cells for power products).

Product-based scenarios for addressing climate change and energy issues

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• HEPS-compliant models released in FY2013 38 HEPS-compliant models released in FY2013 We reviewed products to see how many met the HEPS requirements. In fiscal 2013, 18 motorcycles models, 16 automobile models, and 4 power products—a total of 38 models—were HEPS-certified. Cumulatively, this brings the number of HEPS-compliant products to 66 motorcycle models, 83 automobiles models, and 42 power product models, or 191 models in total. By region, 67 models in Japan, 48 models in North America, 28 models in South America, 58 models in Europe and 26 models in China. In the Asia & Oceania region, Honda has introduced 63 models incorporating advanced energy technologies. Honda markets a variety of models which lower fuel consumption, are small and lightweight, and utilize alternative fuel as well as hybrid technology.

Global number of HEPS-compliant models Hi Efficient Products

Innovative Products Revolutionary Products

Motorcycles

Automobiles

Models 100

66

60

40

60

48

83

80

67 54

80

80

60

60 40

20

20

20

0

0

0

2010


2011

2012 (FY)

2010

2011

2012 (FY)

36

67

Motorcycle

63

58 48

40

42

38

Automobiles

100

Models 100

40

40

Power products Power products

Models 100

80

19

Number of HEPS-compliant models by region

28

26

20 0 2010

2012 (FY)

2011

20

Japan


North America

Europe

South America

Asia& Oceania

China

Direction

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Examples of HEPS-compliant models released in FY2013

Definition

Hi Efficient Products

Innovative Products

Revolutionary Products

Products with a more efficient internal combustion engine that emits less CO2

Products that use unconventional energy sources or innovative environmental technologies that emit less CO2

Products designed to reduce or eliminate CO2 emissions by harnessing renewable energies or facilitating total energy management

Motorcycles

Performance parameter

Environmental initiatives in our business activities Reducing the amount of CO2 emitted by our products is not all we are trying to do for the environment. Given our philosophy of reducing impacts across entire product life cycles, we were quick to start reducing the environmental impacts of our business activities themselves. Specifically, we divided our business activities into seven domains and have sought to reduce impacts by being aware of all the factors in each domain that place stress on the environment. In the Asia & Oceania region,We believe that steadily reducing environmental impactsfrom both our business activities and products will help us achieve the Honda Environmental and Safety Vision and also lead to recognition of Honda as a company society values.

CO2 emissions from product use

Super Cub C50

PCX150

Integra

MSX

CBR125R

Dio110

XRE300

CB300R

Integra

Kushi

The seven domains of Honda business activities

Compliant products (examples)

Automobiles

Wave Dash

Revo Techno

Scoopy i

SH150

N-ONE

Brio

Accord PHEV

CITY CNG

ILX

Crosstour

Civic Diesel

Fit twist Flex

Freed

CR-V

Jazz Hybrid


Fit EV

FCX Clarity

Sales and Service

Administration

Power products

GX690 engine

Purchasing

Civic Hybrid

Transportation GX390 engine

Product development

EU9i GP LPG generator

HSM1390 i hybrid snowblower

Solar modules

Graspa HRE330 electric lawnmower

MCHO1.0 household cogeneration unit

Salad CG FFV300 gaspowered tiller

Monpal ML200 scooter

Miimo 300 robotic lawnmower

EP2000GN

EM6000GN

Production

HR370

HEPS models in Asia & Oceania Region

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Direction

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24


Direction

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Biodiversity Initiatives

Biodiversity Initiatives • Our greatest contribution: reducing environmental impacts from products and operations Resource exploitation, runaway development, pollution, climate change —— these and many other impacts of human activities threaten biodiversity. As a manufacturer of personal mobility products, we see our business activities as being most closely associated with the growing environmental impacts resulting from emissions of greenhouse gases (GHGs) and various other pollutants. We believe that minimizing the environmental impacts that result from our business activities and products represents the greatest contribution we can make to protecting Earth’s myriad life forms. We created the Honda Biodiversity Guidelines to set priorities in this effort, focusing our energies on developing environmental technologies and reducing impacts in our business activities, alongside initiatives to operate in harmony with local communities.

Climate change and energy issues are not our only concerns. We also pay close attention to biodiversity as an issue relating to environmental conservation, because our business activities can have an impact on vital natural resources. Tree-planting and water-recycling initiatives at our plants in the 1960s, and our Community Forest program launched in 1976, demonstrate the deep roots of our commitment to environmental conservation and living in harmony with local communities. In 2011, we created the Honda Biodiversity Guidelines as part of the contributions we strive to make to global environmental conservation, a goal set forth in our Honda Environment Statement.

Honda Biodiversity Guidelines

1. Develop technologies to reduce impacts on the environment We will develop technologies to reduce the environmental impacts of personal mobility, since this represents the greatest contribution we can make. Technologies include fuel-efficient and next-generation vehicles, and technologies that harness alternative energies.

Basic Statement We recognize, under the Honda Environment Statement, that biodiversity conservation initiatives are an essential part of our commitment to the preservation of the global environment. We will continue to work toward harmony between this commitment and our activities.

2. Make business activities species-friendly We aim to make our business activities more sustainable in themselves, by releasing less environmental pollutants, including GHGs, waste, and substances of concern. 3. Work to protect nearby ecosystems We have already gained a wealth of knowledge about how to maintain and restore ecosystems through our Community Forest and Hello Woods initiatives. Working in collaboration with nearby communities, we will use this knowledge and experience to implement programs to protect local species and make our business activities friendlier to them.

Priority Activities 1.

Development of Environmental Technology We will contribute to the conservation of biodiversity by developing and disseminating technologies for fuel-efficient vehicles, next-generation cars, and energy-production and other technologies for the reduction of environmental impacts.

4. Communicate openly with the public We will endeavor to openly communicate with the public about the details and outcomes of activities we implement from the new perspectives offered by these biodiversity guidelines.

2. Initiatives Based on Corporate Activities We will work to reduce environmental impacts and ensure the effective use of resources through efficiency improvements. 3. Cooperation with Communities We will implement community-based activities in cooperation with stakeholders, using expertise accumulated by Honda through its initiatives to protect ecosystems, such as the Community Forests and Hello Woods initiatives. 4. Disclosure and Sharing of Information We will share information with society by disclosing the outcomes of our activities. Established in May 2011

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Biodiversity initiatives in the Asia & Oceania region Creating artificial salt licks and check dams In October 2012, the Honda Thailand Foundation, in collaboration with the Asian Elephant Foundation in Thailand, organized volunteer activities in creating artificial salt licks for elephants and other wildlife at the Salakpra wildlife sactuary, Kanchanaburi Province, Thailand. Honda associates gained valuable experience in making artificial salt licks by mixing a combination of salts and minerals in pits and burying it to create a more realistic salt lick with the salts and minerals leaching out from the pits during wet weather to form a salt deposit. In the ecosystem, elephants and animal wildlifes can obtain essential mineral nutrients at the salt licks in order to supplement their diets. Apart from this activity, Honda associates also actively initiated construction of check dams that help ensure regular water passage. The check dams slow the flow of water runoff resulting in better water retention and the creation of watershed areas. This can help to preserve water supplies for wildlife during dry seasons.

Participating in “Road to 2020” Reforestation Program In December 2012, the Honda Foundation Inc., in partnership with Haribon Foundation, entered its third year of support for a reforestation program in the Phillipines. The Honda Foundation represents the Honda group of companies Honda Cars Phillippines, Inc. (HCPI), Honda Phillippines Inc. (HPI), Honda Parts and Manufacturing Corporation (HPMC) and Honda Trading Philippines (HTP). This activitiy is a part of the “Road to 2020” project, an environmental conservation movement that aims to restore one million hectares of the Phillipines rainforest with native tree species by 2020. HFI has pledged to rehabilitate 20 hectares of denuded land with 50,000 trees by 2020. HFI completed the planting of native seedlings covering an area of 3 hectares at Caliraya watershed in the past year. In this year, more than 275 volunteers from HFI, including Honda dealers and suppliers, traveled to Tanauan, Real, Quezon Provinces to plant 7,500 seedlings of native tree species that are anticipated to help contain/lessen the flood surge from Quezon Province, where the two major tributaries upstream, the Kanan and the Kaliwa rivers, run into Laguna Lake. Thus the protection and restoration of watershed areas is important, as this will dictate the amount and quality of water that can be derived from the watershed. HFI has participated in this activity since 2010 resulting in nine hectares and 15,000 trees planted.

• Creating artificial salt

• “Road to 2020” Reforestation Program

• check dams

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Progress in Meeting Environmental Targets 2020 Product CO2 Emissions Reduction Targets Reducing CO2 emissions from our products is a necessary step in combating climate change and energy issues, the greatest challenges to our business. That is why we created the 2020 Product CO2 Emissions Reduction Targets, through which we seek to reduce the average amount of CO2 emitted per unit of automobiles, motorcycles, and power products by 30% from 2000 levels by 2020. We hope to achieve these targets by developing more efficient technologies and marketing more energy-efficient products.

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Current progress in achieving the targets Automobile fuel efficiency increased with the introduction of redesigned core models such as the CR-V and Accord. CO2 emissions declined substantially year-on-year thanks to the moderate recovery of the U.S. market and steady expansion of the Asian market, driving a large increase in sales. Motorcycle CO2 emissions saw another year-on-year decline, driven by increased sales from the introduction in Thailand of the Click 125i, a commuter vehicle with improved fuel efficiency, and increased sales of the fuelefficient PCX150 in Thailand, BeAT in Indonesia, and Activa in India. Sales of large engines, which have comparatively higher per-unit emissions, increased in North America. Meanwhile in Europe, sales of low-emission household cogeneration units and zero-emission robotic lawn mowers increased, contributing to a slight year-on-year decline in CO2 emissions for power products as a whole.

Progress in achieving the 2020 Product CO2 Emission Reduction Targets

Automobiles (g/km)

120 100

100

100 87.6

80

90.5

2020

target (30% reduction)

40 20

80

84.9 75.9

60

72.6

2020


40

100 89.0

86.5

85.3

60

2020


40

0

2000 FY2011 FY2012 FY2013 (baseline)

32

∼ ∼


0

(kg/h)

20 ∼ ∼

∼ ∼

2000 FY2011 FY2012 FY2013 (baseline)

31

100

20

0

Power products

(g/km)

100

80

84.8

60

Motorcycles

120

2000 FY2011 FY2012 FY2013 (baseline)


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Mid-term plans Formulating detailed plans for fiscal 2014 In our effort to minimize CO2 emissions and all other environmental impacts stemming from our products, we created a detailed mid-term plan for product-related environmental initiatives through fiscal 2014. By following this plan, we will not only increase the energy efficiency of our products but also make improvements across their life cycles by practicing sustainable design for improved 3R performance, reducing emissions from products, and carrying out stricter management of substances of concern used in our products.

Recognizing the significant impact that our business activities have on the environment, we likewise formulated a detailed mid-term plan for operations-related environmental initiatives, with the end goal of realizing the Honda Environmental and Safety Vision. By following this plan we will reduce product life-cycle CO2 emissions, reuse and recycle more resources, and strive to minimize water use, among other activities. Believing that these initiatives should cover all our business activities, including our supply chains, we will actively promote environmental management at our suppliers, focusing especially on greenhouse gas emissions.

Mid-term plans and results for product-related environmental initiatives Milestones on the road to 2020

Climate change and energy

Material and water resources

Substances of concern

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Mid-term plans for product-related environmental initiatives (FY2012 – FY2014)

1

Achieve best-in-industry fuel efficiency and accelerate technology penetration: Motorcycles: Expand use of electronic fuel-injection system (PGM-FI) and low-friction engines, especially in commuter vehicles Automobiles: Phase in upgrades to engine and transmission lineups, starting in 2012 Power products: Expand application of new electronic self-tuning regulator (STR) governor, developed for the iGX engine

2

Establish and deploy next-generation electromotive technologies: Motorcycles: Market electric motorcycles that meet local needs in developed (Japan: leased) and emerging (China) countries Automobiles: Launch multiple models (especially compact vehicles equipped with IMA hybrid technology in Japan; currently developing mid-size and larger plug-in hybrid and battery electric vehicles, with plans to launch products in Japan and the U.S. and commence production in China in 2012. Power products: Improve electric lawnmowers and expand lineup through model additions, especially in Europe

Market new products to reduce CO2 emissions from mobility and other products

3

• Launch new thin-film solar cell modules with world’s highest module conversion efficiency and deploy technology globally • Conduct demonstration testing of next-generation personal mobility systems in cities in Japan, the U.S., and China • Through joint-implementation of the E-KIZUNA Project with Saitama City, conduct demonstration testing of the Honda Smart Home System (HSHS) with an aim to cut household CO2 emissions by 50% from 2000 levels by 2015

Ramp up 3R efforts

4

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

Reduce exhaust emissions

5

Steadily reduce exhaust emissions to comply with tighter emission regulations in various countries

Manage substances of concern used in products more strictly

6

• Promote management of substances used in products and find alternatives to substances of very high concern • Operate global management systems for substances used in products to comply with applicable regulations in various countries

Achieve global targets for reducing average product CO2 emissions, with the end goal of steadily reducing product life-cycle emissions over the long term

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Results of fiscal 2013 initiatives Motorcycles: Automobiles: Power products:

Launched the PCX150, a next-generation compact scooter equipped with an engine with enhanced durability, quietness, and fuel efficiency (June 2012) Launched the Super Cub 50 equipped with a high-efficiency engine that employs extensive low-friction technologies (May 2012) Launched an Accord for the North American market equipped with a newly developed engine and CVT that realizes top-class fuel efficiency (September 2012) Launched a Civic for the European market equipped with a diesel engine incorporating extensive efficiency improvements and weight-reduction technologies (December 2012) Launched a Civic for the South American market that employs the FFV technology Flex One, eliminating the need for a secondary fuel tank (February 2013) Launched new gas-powered products to support energy diversification: the EU9i GP propane gas-powered portable generator (August 2012); and the Salad CG FFV300 tiller, which runs on butane gas canisters (March 2013)

2

Motorcycles: Automobiles: Power products:

Continued leasing the EV-neo electric scooter Continued sales of the Kushi, an electric bicycle for the Chinese market Launched the Accord PHEV (North America, January 2013) and Accord Hybrid (Japan, June 2013) equipped with Sports Hybrid i-MMD Began leasing the Fit EV in Japan (August 2012) and the U.S. (July 2012) Launched Miimo, a robotic lawn mower equipped with a lithium-ion battery, in the European market (April 2013)

3

• Japan: In Saitama Prefecture, began demonstration testing of a house equipped with the Honda Smart Home System (April 2012) • Continued demonstration projects using next-generation personal mobility systems in cities in Japan, the U.S., and China

4

• Reduced the weight of parts in automobiles by employing tailored blanks and technologies for joining dissimilar metals such as steel and aluminum • Built a system for extracting rare earths from used nickel metal hydride batteries from hybrid vehicles and recycling them as material for new nickel metal hydride batteries

5

Made consistent efforts to reduce exhaust emissions to comply with tighter emissions regulations in various countries

6

• Continued to promote the management of substances used in products and find alternatives to substances of very high concern • Continued to operate global management systems for substances used in products, to comply with applicable regulations in various countries and reduce risk

1


Material and water resources Substances of concern

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Mid-term plans and results for operations-related environmental initiatives Milestones on the road to 2020




37

1

Global operations: Reduce CO2 emissions per unit of production by 5% by FY2014 (baseline: FY2009)1

2

Purchasing domain: • Promote measurement and reduction of suppliers’ GHG emissions under the revised Green Purchasing Guidelines

3

Production domain: • Install cutting-edge environmental technologies at Yorii Plant (production scheduled to begin in 2013) and make preparations to deploy the technologies globally • Set benchmarks for energy use and set higher efficiency standards

4

Transportation domain: • Increase transportation efficiency in each region by implementing modal shifts, deploying more fuel-efficient trucks, etc.

5

Sales and services, administration, product development domains: • Promote energy conservation by encouraging eco-etiquette and more efficient use of facilities

6

Production domain: • Strengthen resource-use-reduction initiatives 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)

7

End-of-life product recycling: • Make steady efforts to comply with end-of-life vehicle recycling laws in various countries

Minimize water use

8

Production domain: Reduce use according to conditions in each region, for example by conserving water and using recycled water in production processes

Reduce VOC2 emissions from production processes

9

Production domain: Develop VOC-emissions-reduction technologies for coating processes and expand application to overseas facilities and motorcycle coating processes

10

Corporate initiatives: • Educate suppliers on the destructive impacts of hazardous substances and water use on ecosystems Collaboration with local communities: • Conduct biodiversity surveys at business sites in Japan • Develop policies, guidelines, and practical know-how at each business site • Assess possibilities of introducing biodiversity initiatives at overseas business sites

11

Strengthen independent, voluntary promotional frameworks in each region, and strengthen global collaboration

12

Expand Honda Environmental Annual Report into a global report, and increase disclosure of environmental data in each region

Strengthen initiatives that span entire product life cycles

Ramp up 3R efforts

Biodiversity

Local conser vation initiatives in accordance with the Honda Biodiversity Guidelines

Environmental management

Strengthen global/regional promotional frameworks and increase disclosure of environmental data


Mid-term plans for product-related environmental initiatives (FY2012 – FY2014)

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Results of fiscal 2013 initiatives


1

Reduced average per-unit CO2 emissions by 7% in FY2013 (baseline : FY2009)

2

Promoted measurement of GHG emissions from suppliers in a broader range of activities covering product life cycles Asia/Oceania: Deployed the Energy Conservation Caravan to visit suppliers and monitor energy consumption

3

Used energy use monitoring of each production process to make the production system more efficient Asia/Oceania: Made progress in switching from diesel generators to natural gas cogeneration systems

4

Transportation modal shifts in each region South America: Began shifting to coastal routes and actively avoiding trucking for the transportation of motorcycles

5

• Promoted energy conservation through eco-awareness and etiquette-raising activities and improvements in equipment use • Installed high-efficiency devices (LED lighting, compressors, HVAC systems, IPM motors) North America: Increased the number of participants in the Green Dealer program launched the previous year and enhanced program development

6


• Implemented measures to improve throughput yields in the design stage • Increased use of stamping press scrap steel South America: Promoted sand mold recycling in the storage process

7

Continued efforts to comply with the automobile recycling regulations of each country

8

Promoted use of recycled water and water-conservation activities in each region Asia/Oceania: Introduced rainwater storage systems


9

• Started using low-VOC coatings in coating processes • Used low-VOC coatings for prototype models in product development North America: Introduced new processing equipment to reduce VOC emissions in the bumper coating process

Biodiversity

10

Conducted biodiversity surveys at business sites in Japan


11

Convened Regional Environmental Committees and trained environmental officers in all regions

12

Issued a fiscal 2013 regional environmental report in each region (North America, South America, Europe, Asia & Oceania, China, and Japan)

Note 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. Note 2: VOC (Volatile Organic Compounds): Organic chemical substances that cause photochemical smog and are commonly used in the solvents of paints and thinners.

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Global Global Initiatives

Always conscious of the environmental impact of its manufacturing operations, Honda is working hard to take environmental responsibility to ever higher levels around the world through operating management systems in six regions worldwide.

43

Global Environmental Management Global Product Development :

41


42

63

Honda R&D’s top 4 discussion

67

Next-Generation Technology

73

Automobiles

79

Motorcycles

87

Power products


Global

Gl

Global

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Global Environmental Management

Global Environmental Management Honda has created an institutional framework to put into practice the environmental principles articulated in the Honda Environment Statement, and has expanded it to the global level. We are actively working to build environmental management systems at all business sites and obtain ISO 14001 certification at certain sites.

Environmental management promotion structure Organizational structure In December 1991, Honda created what is now the Japan Environmental Committee and assigned it a central role in governing the environmental affairs of the company. This structure has been expanded into a global environmental management system with regional environmental committees in North America, South America, Europe, Asia & Oceania, and China. In March 1995, the World Environment and Safety Committee was established to manage environmental as well as safety initiatives (see note), through which Honda aims to create a motorized society that is safe for all people. The World Environment and Safety Committee discusses, determines, and reviews annual plans for implementing environmental conservation activities at the global level based on mid-term business plans, and has created an environmental management system that integrates activities on the global level with those on the factory floor. The company’s president an CEO currently chairs the committee, a reflection of Honda’ s recognition that environmental issues, especially climate change and energy, are critical to Honda’s business operations. The World Environment and Safety Committee develops mid-term policies and plans for global environmental initiatives based on mid-term policies and management plans determined by the Management Council. Individual divisions prepare detailed plans for each region and business area, and then finalize the overall plans after discussion and approval by the regional environmental committees. The regional environmental committees discuss and evaluate annual achievements under the plans and, based on the results, create new targets and plans with the objective of achieving mid-term policies and plans. The progress of environmental initiatives by Honda Group companies, as well as themes affecting multiple domains around the world, are reported to the World Environment and Safety Committee and then factored into the next year’s annual plans and the next mid-term business plans and policies. Honda follows the Plan-Do-Check-Act cycle to promote continuous improvement in environmental performance in each region: Japan, North America, South America, Europe, Asia & Oceania, and China. One hallmark of this system is that planning and implementation are not simply delegated to specialized staff, but that all associates are expected to be involved. The basic thinking is that all associates should be actively tackling environmental issues as a part of their daily work.

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The PDCA cycle of eco-conservation activities

P

A World Environ me Safety Commit nt and tee Mid-term environmental policies/plans

44


Regional environmental committees Detailed plans/actions

C

Divisions

D

Global

Gl


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Honda’s organizational structure for environmental affairs

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46


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Gl


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Regulatory compliance In accordance with the Honda Environment Statement, Honda introduces environmental management systems at all business sites and in each division, promotes continuous efforts to improve environmental performance, and strives to comply with voluntary environmental standards that are more stringent than national and regional regulations. We revised the Honda Conduct Guidelines in April 2013 (formulated 2010) and are implementing it throughout the Honda Group in Japan and worldwide. The document calls on Honda associates to comply with laws and regulations, company rules, and social norms and, for the purposes of environmental conservation, to strive to reduce environmental impacts in one’s work by conserving and recycling resources and energy in accordance with environmental laws and regulations, company policies, and internal standards. We have appointed corporate directors to serve as Compliance Officers, and work systematically to enhance compliance and risk management under the supervision of directors in charge of each part of the organization.

ISO 14001-certification status worldwide (as of March 31, 2013)

Europe 19 companies

Honda Conduct Guideline http://world.honda.com/conductguideline/

Japan 42 companies

North America 28 companies

China 25 companies

Emergency protocols In anticipation of accidents and emergencies that could cause environmental pollution, each factory and division has clearly-defined procedures for preventing pollution.

Asia & Oceania 45 companies

Environmental management at Honda business sites Along with development of environmental management systems at the group-wide level, we have been introducing such systems at each business site in order to continuously improve their environmental performance and to control environmental pollutants. We have been working actively to acquire ISO 14001, an international certification for environmental management, particularly at our production facilities. After acquiring certification at each of our five major production facilities in Japan, we combined their certification for integrated operation of their management systems. Going forward, we plan to promote acquisition and expand our integrated system to environinclude environmental management of the Saitama Factory’s Yorii Plant, newly completed in March 2013. We also combined the certification registration for Honda head office buildings and district buildings in fiscal 2012. We will continue developing our environmental management systems and seeking ISO 14001 certification (or in Europe, EMAS). We will continue working to ensure that business sites with certified environmental management systems remain certified, and also continue to apply the PDCA cycle at each site for continuous improvement in reducing the environmental impact of our operations.

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South America 10 companies

Note: Includes facilities of Honda Motor Co., Ltd. and its major consolidated subsidiaries and affiliated companies.

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Disclosure of total GHG emissions GHG emissions from the entire Honda value chain

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.

FY2012

FY2013

Scope 1*

direct emissions from Honda business activities

1,240,000 t-CO2e

1,410,000 t-CO2e

Scope 2*

indirect emissions from energy use

2,960,000 t-CO2e

3,540,000 t-CO2e

Scope 3*

other indirect emissions

220,860,000 t-CO2e

270,960,000 t-CO2e

225,060,000 t-CO2e

275,910,000 t-CO2e

All emissions from Honda business activities (scopes 1, 2)

4,200,000 t-CO2e

4,950,000 t-CO2e

Emissions from use of sold products (scope 3, category 11*)

195,880,000 t-CO2e

225,950,000 t-CO2e

Emissions from entire value chain (total of scope 1, 2, and 3) Other totals:

Breakdown and changes in Honda GHG emissions

Scope 3 other categories

0.5％ Scope 2 1.3％

Scope 1

16.3%

〈GHG emissions〉

275,910,000 t-CO2e

225,060,000 t-CO2e 200,000,000 t-CO2e

Scope 3, category 11

FY2013 275,910,000 t-CO2e

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 461 consolidated subsidiaries and affiliated companies worldwide.

Scope 2 Scope 1

Scope 3, category 11

81.9%

Scope 3, other categories

FY2012

FY2013

Scope 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 461 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).

*See notes on page 45 for detailed descriptions of scope 1, scope 2, scope 3, and category 11 of scope 3.

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 2012 (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, 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.

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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)

■ Raw materials ■ Production ■ Use ■ Sales/service ■ Disposal ■ Transportation

(%) 120 100

Baseline 100

■ Raw materials ■ Production ■ Use ■ Sales/service ■ Disposal ■ Transportation

(%) 120

122

100

82

80

60

40

40

20

20

2006 Civic

Stepwgn

CR-Z

70

80

67

60

0

Baseline 100

0

N-ONE

44

2005 CB400SF

Integra

PCX150

32

Super Cub 50

* 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.

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Reducing GHG emissions from use of soldproducts 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. 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.

〈Total GHG emissions〉

From growth to decline

Continue reduction efforts to reach zero FY2012

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FY2013

FY2014

FY2015

FY20××

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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 years*1. 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.

Product life cycle

FY2013 April 1, 2012 - March31, 2013

Raw material extraction Raw material transport

Greenhouse gas emissions occur in every stage of a product’s life cycle, from the extraction of raw materials to the end-of-life treatment (recycling, disposal) of the product. Scope 3, category 11 (product use) emissions in fiscal 2013 are all GHG emissions that will result from the use of Honda products sold in fiscal 2013 until their end-of-life treatment sometime in the future.

Scope 3, Category 1 Scope 3, Category 4 Scope 1 and 2

Production Sales

Scope 3, Category 9

Scope 3, Category 11

Product used by customer (Japan: 10,000 km/yr × 15 years)

Scope 3, Category 12 End-of-life treatment

2012

2013

2014

2015

*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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Expanding environmental accounting worldwide Honda discloses information on the emissions treatment, waste disposal, environmental management, remediation and prevention as well as the overall environmental efficiency of our business in order to advance environmental management on a practical level and realize our environmental vision. These data serve not only as an indicator of corporate value for external stakeholders but also as a reference for making administrative management decisions regarding environmental initiatives. As a result, for fiscal 2013 we are disclosing the environmental conservation expenditures that were recorded in Japan in the format suggested by the GRI Guidelines*2, which is the same format used last year to disclose automobile R&D expenditures in North America. These changes have been made in an effort to improve the accuracy of data collected from our operating sites worldwide and to determine an appropriate method for disclosing sustainability information from our global operations.


Environmental conservation expenditures in Japan Investments (million yen)

Expenditures (million yen)

2,285

2,352

Waste disposal

254

1,102


564

6,301

0

4

16,456

186,513

19,559

196,272

Emissions treatment

Remediation Prevention Total

*2. International guidelines issued by the Global Reporting Initiative (GRI) to promote concrete action for environmental, social, and economic progress. At the end of this report is an index specifying the pages in this report where the general standard disclosures and environmental performance indicators required by the guidelines can be found

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Global

20130

1,410 15,000 10,000

5,000

20,000

25,000

Global Environmental Impact

Atmospheric pollutants

Energy consumption (FY)

Direct energy consumption

2010

20,700

2011

20,900

(TJ)

Indirect 2011 emissions

19,400

2012 2013

2012

22,900

(FY)

2010 2010 Indirect energy 2011 Direct energy 2011 consumption consumption 2012 2012

19,700 20,700 21,700 20,900

0

5,000

10,000

15,000

20,000

5,000

1,240 10,000

25,000

2010 2010 2011 2011

1,310

2012 2012 2013 2013

1,240

2012

Wastewater volume*

25,000

Wastewater volume* Waste landfilled

3,540

500 1,000 1,500 2,000 2,500 3,000 3,500 4,000

3,000 (t)

2,960

265 605

SOx


2012

SOx(FY)

3,540

500 1,000 1,500 2,000 2,500 3,000 3,500 4,000

233

233

3,540

233

500 1,000 1,500 2,000 2,500 3,000 3,500 4,000

572 200

400

600

800

1,000

(t)

200

400

600

800

China

1,000

34,300

2011

23,200

(1,000 m3)

(FY)

2012 2010

20,900 33,800

2011 2013

21,10034,400

2012 0

5,000

10,000

15,000

20,000

30,100 40,000 34,300

(1,000 m3)

(FY) 2011 2010 2012 2011 2013 2012

(1,000 t) 23,200 38 20,900 32 21,100

26

2013 0

5,000

0

10

00

30010

10,000

15,000 20

20,000 31 30

40,000 40

Companies covered: Nearly all consolidated subsidiaries and(FY) affiliated companies of the Honda Group 1,150 (1,000 t) 2010 *Disclosure of wastewater volume begun in fiscal 2011. 38 2010 1,280 2011 Total 32 2011 Wastewaste 1,210 generated 2012 26 landfilled 2012 2013 31 1,370 2013

572 NOx subsidiaries and affiliated companies Companies covered:Nearly all consolidated of the Honda Group Notes: • Greenhouse gas emissions were calculated while referring mainly to the WRI and (t) 200 265400 600 800 1,000 SOx 0Gas Protocol WBCSD’s 2004 “The Greenhouse (Revised Edition).” 2011 605 • Calculations based mainlyNO onxemissions from stationary sources.

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2,960

605

SOx 0 NOx

(t)

3,000

265

2013

2,960

2011

0

2011 SOx 2012 NOx 2013

2013

2,770

2012 SOx 2013 NOx

2,770

3,000

1,410

2010

500 1,000 1,500 2,000 2,500 3,000 3,500 4,000

Water use, wastewater volume

2,770 (1,000 t-CO2 equivalent)

1,330

3,540

1,410

2010

0

Water use

0

Indirect emissions 2011

20,000

0

2,960

265 SOx 2011 Companies covered: Nearly all consolidated of the Honda Group 605 NOx subsidiaries and affiliated companies Notes: Calculations based on fuel consumption. (1,000 m3) (FY) 33,800 2010 233 SO x 2012 34,400 2011 572 NO x Water use Japan N. America S. America Europe Asia/Oceania 30,100 2012

1,410

(FY)

Direct Indirect emissions emissions

15,000

2012 2013 2013

1,240

3,000 (1,000 t-CO 2 equivalent)

1,330

0

2010 19,700 Companies covered:Nearly all consolidated subsidiaries and affiliated companies of 21,700 the Honda Group Indirect energy 2011 Notes: • Purchased electricity has been (FY)converted to joules using the international standard 3.6 GJ/MWh. consumption 2012 20,300 1,310 • Calculations based mainly2010 on energy consumed by stationary sources. (1,000 t-CO2 equivalent) 22,300 • A terajoule (TJ) is a unit of2013 energy, “tera” meaning 1,330 1012. 2011

Direct 20120 emissions Greenhouse gas emissions 2013

1,310

(TJ)

20,300 19,400 22,300 22,900

2013 2013

2010 2011 2011 2012

al ob

2,770

2010 (FY)

Indirect emissions Direct emissions

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Total waste

2010 2011

600

20

900

301,200

1,500 40

1,150 1,280

Global

volume*

2012

20,900

2013

21,100 5,000

10,000

15,000

20,000

40,000

Waste generated, landfilled (FY)

(1,000 t)

38

2010

Waste landfilled

32

2011 26

2012

31

2013 0

10

20

30

40

1,150

2010

Total waste generated

al ob

0

Gl


1,280

2011

1,210

2012 2013

1,370 0

300

600

900

1,200

1,500

Companies covered: Nearly all consolidated subsidiaries and affiliated companies of the Honda Group Notes: • Landfilled amounts for waste outside Japan also include other waste treatment methods • Figures for Japan indicate amounts actually brought to landfills.

Environmental data for manufacturing, by region (FY2013)

Notes: • Historical figures have been adjusted to reflect an increase in the number of companies covered and more detailed analysis of the data. • The data of companies added to Honda’s consolidation during the reporting year and companies that have been excluded from the consolidation due to a merger, liquidation, or other change, are not included. • Totals with more than three digits have been rounded to three significant digits.

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Global Product Development Nonaka: For automobiles, we began leasing in Japan the all-electric Fit EV which, as a zero-emission vehicle, provides the greatest environmental benefit. In North America, we released the Accord Plug-In, which comes with the most advanced powertrain in our Earth Dreams Technology line. Compared to other vehicles in its class, the Accord Plug-In is certainly the most efficient car in the world; even its internal combustion engine is top-of-the-line. In Japan, we released the N BOX+ and N-ONE mini-vehicles, which offer exceptional environmental performance and set the stage for a long line of Earth Dreams Technology products that will make appearances in the coming years.

Honda R & D’s top 4 disscusion Balancing customer satisfaction and the global environment Honda R&D’s top 4 discuss the past and future of product development Yoshiharu Yamamoto, President, CEO and Director, Honda R&D Co., Ltd. Toshihiko Nonaka, Executive Vice President and Director in charge of Automobile R&D Center, Honda R&D Co., Ltd. Tetsuo Suzuki, Senior Managing Officer and Director in charge of Motorcycle R&D Center, Honda R&D Co., Ltd. Takao Nishida, Operating Officer and Director in charge of Power Product R&D Center, Honda R&D Co., Ltd.

• Nishida: For power products, we launched in Europe an environmentally responsible robotic lawnmower called Miimo. It doesn’t use gasoline so it emits zero CO2, and it cuts grass into really fine pieces that act as fertilizer, so there’s no waste. And, of course, it mows the lawn by itself, creating time that the owner can put toward recreation and other things. • Yamamoto: As you’ve all noted, we made steady progress last year in reaching our goal of creating products that offer outstanding environmental performance in all regions of the world. Now let’s talk about products that are scheduled for release in fiscal 2014. There’s not a lot we can say yet, but tell us in your own words what our customers can look forward to most in the coming year.

Honda R&D conducts visionary research and development aimed at creating products that always meet or exceed customer expectations. By being organizationally separate from Honda Motor Co., the company provides engineers with an environment where they can focus on their work and freely explore ways to create new value. The top four members of Honda R&D management were gathered and asked to discuss the results of fiscal 2013 and share their individual dreams for the future.

• Suzuki: This year we’re planning to introduce new environmentally responsible engines to smaller motorcycle models to achieve our goal of having the most fuel-efficient products in each commuter category, a segment that sells around 15 million units globally. We will release mid-size models featuring a new 500-cc two-cylinder engine. These bikes will be fun to ride, of course, but they’ll also be very fuel-efficient.

FY2013 highlights and the most anticipated products of FY2014

• Nonaka: I think the automobile our customers can look forward to most this year is the new Fit, a hybrid with a one-motor Earth Dreams Technology hybrid system that will be sold in most of the world. We completely revamped the engine and transmission, so it has amazing environmental and driving performance. It can aim at the most fuel-efficient vehicle in its class in the world.

• Yamamoto: Before we talk about the future course of product development, let’s first review what happened in fiscal 2013, focusing on any products or technologies whose achievements you would like to emphasize. Suzuki: For motorcycles, we added new mid-size models equipped with the super-efficient 700-cc engine released in 2011. We also expanded our lineup of small commuter scooters powered by the next-generation 125-cc eSP engine. Both engines contribute to major reductions in CO2 emissions while offering fuel savings that make life easier for our customers. •

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• Nishida: In power products, we will release new large electric generators and snowblowers in developed regions such as Europe and Japan. We will introduce PGM-FI electronic fuel-injection systems to power products other than outboard engines for the first time, and also work on improving output and environmental performance. We’ve marketed a large number of agricultural products in developing countries, so we’ll be working on improving the basic performance of these products. For example, a water pump for rice paddies we recently developed incorporates a new high-efficiency pumping technology that increases fuel efficiency by 20%. This technology will certainly have a positive impact on farming in developing countries, so keep an eye out for its release.

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Global strategies for promoting a low-carbon economy Yamamoto: Honda set a target to reach 39 million units in global sales by the end of 2016, which means we need to reduce CO2 emissions while also growing sales. What approach or perspective are engineers taking as they set out to solve this extremely challenging problem?

What kind of future does R&D management envision? • Yamamoto: Before closing, please tell us what kind of product you dream of creating as a product developer.

Tetsuo Suzuki, Director in charge of Motorcycle R&D Center

• Suzuki: The environment is important of course, but it’s just one aspect. I don’t agree with the practice of watering down the fun of riding a motorcycle to make it more eco-friendly. Having fun is one of the key things motorcycles are for. So I’d like to develop a product that represents the highest level of achievement in both enjoyment and environmental performance, one that makes a strong statement as a whole. That’s what I dream of as someone who works with motorcycles.

Suzuki: For motorcycles, we’re planning to more than double sales in developing countries by 2020. Because gasoline costs account for a large share of user income in these countries, high fuel economy is a major selling point in itself. The biggest challenge is figuring out how to make fuel-efficient product swithout raising costs. We’ve gone back to the drawing board and are in the process of thoroughly revising technologies. • Nonaka: For automobiles, we’re constantly working to make engines and transmissions more efficient, exteriors more aerodynamic, and vehicles lighter. We’re developing weight-reduction technologies to drop not just 5 or 10 kg but a full 100 kg and take a big step forward in fuel efficiency. We’re also expanding our Earth Dreams Technology hybrid lineup. People should get excited about the NSX, a next-generation supercar that will run like a real sportscar while being powered by a three-motor hybrid system that also has impressive environmental performance. Another goal that’s farther down the road is downsizing. Honda is in fact the industry leader in technologies that reduce the size of the car without changing the interior space. And after that we’ll develop smaller, supercharged engines. These are some of the ways we hope to keep CO2 emissions from increasing as sales grow. Nishida: The average household in Japan consumes 30% of its energy for mobility, 30% for electricity, and the remaining 40% for heating and cooling. Based on this, we are conducting research to increase the fuel efficiency of internal combustion engines and our home cogeneration unit, diversifying fuels, and deploying fuel cell technologies. When testing the Honda Smart Home System, we’re striving for efficient energy management by looking at how electricity is stored and used. Our power products business has much to contribute to energy use in daily living, so we feel a sense of responsibility and purpose in helping to achieve maximum efficiency in the life-cycle of energy as it goes from generation to storage to use.

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Nonaka: To Honda, the ultimate eco-car is the fuel cell vehicle (FCEV), which runs on electricity generated by the chemical reaction between hydrogen and oxygen. However, FCEVs are more expensive than EVs and aren’t affordable enough yet to attract buyers. The other problem is refueling infrastructure. If we lived in a world where people could make and store hydrogen at home, Honda could produce compact FCEVs and sporty FCEVs and all kinds of other FCEVs; we could even have FCEV racing. I’m really determined to continue research and get FCEVs-in all forms-to our customers. Toshihiko Nonaka, Director in charge of Automobile R&D Center

• Nishida: I want to make products that are environmentally friendly, of course, but I also want to make products that benefit the environment by being used. Honda power products help people raise crops, keep a healthy lawn, travel over the water. I dream of users stopping work for a moment to wipe the sweat off, and glancing up at a deep blue sky. It’s meaningful experiences like that that I want to share with customers around the world. It’s what inspires my work in product development. • Yamamoto: Thank you for sharing. Your comments reminded me once again that Honda is a company of individuals, each with their own dreams about what motorcycles and automobiles and power products can become. One of my dreams, if I may, is to push internal combustion engines to the very limit of what’s possible. The internal combustion engine has evolved continuously in the 100 years since it was developed, steadily approaching its theoretical limit. I want Honda to be the company to reach that limit-in other words, to develop the best internal combustion engine that humans are capable of conceiving. Another dream is to build a mobility society that doesn’t get its energy by drilling into the earth but rather from solar and other renewable forms of energy. Developing fun, inspiring products in that context, I believe, is what will lead us to realizing the joy and freedom of mobility and a sustainable society where people can enjoy life.

Takao Nishida, Director in charge of Power Products R&D Center

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Next-Generation Technology

Our vision of next-generation electric personal mobility and energy generation

Developing technologies and products that will get us to Triple Zero

Honda Electric Mobility Synergy Comprehensive management of the supply and demand of energy used for personal mobility and daily living is essential to achieving our mission to realize “the joy and freedom of mobility and a sustainable society where people can enjoy life.” To make this happen, we need to expand and strengthen our introduction of next-generation personal mobility products—particularly electric products—and lowcarbon energy generation systems, and develop advanced information and communication technologies to link them together. Seeing the integration of home and mobility products—a concept we have named “Honda Electric Mobility Synergy”—as the way of the future, we are conducting research and development to create and improve the devices that will make up such networks.

Honda is developing next-generation technologies that will pave the way to new and exciting integration between electric personal mobility products and low-carbon energy generation systems— a development scheme concept called “Honda Electric Mobility Synergy.”

Next-generation solar hydrogen station

Solar-powered charging station

Honda Smart Home System Since April 2012, we have been conducting experiments using a demonstration test home, in Saitama City, equipped with the Honda Smart Home System (HSHS), the core technology in Honda Electric Mobility Synergy. Based on the results of these experiments, our goal is to market products that contribute to a 50% reduction in CO2 emissions from personal mobility and home living and, at some point in the not-so-distant future, develop new and more efficient technologies, such as renewable fuels, that will bring these emissions down to zero.

Energy generation Home battery unit

CIGS thin-film solar panels

Next-generation personal mobility Household gas-engine cogeneration unit

Walking assist

Communication Honda Electric Mobility Synergy

• HSHS devices at the demonstration test home in Saitama (Smart e Mix Manager, gas-engine cogeneration unit, home battery unit)

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•

Fleet of demonstration-version personal mobility devices (from left: plug-in hybrid vehicle, EV-neo scooter, electric vehicle, Monpal ML200 4-wheel scooter)

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Next-generation personal mobility Within Electric Mobility Synergy, Honda is also developing mobility devices based on new concepts that are radically different from ordinary automobiles and motorcycles. These devices will be the next generation of electric personal mobility products that enrich people’s lives. Micro Commuter Prototype The Micro Commuter Prototype ß1 is a micro-sized short-distance electric vehicle currently under development. Working with local governments, we plan to begin real-world testing2 of this vehicle in the fall of 2013 to verify its potential in car-sharing applications and for providing short-distance mobility assistance to senior citizens. Our goal is to create a next-generation mobility device that helps Honda share the fun and joy of mobility with more people while placing minimum impact on the environment, and to market the device to local governments as a useful tool for community development programs.

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• Micro Commuter Prototype, announced in November 2012

• Micro Commuter Prototype ß

• UNI-CUB at the office

• Testing walking assist devices in various settings: for physical rehabilitation at Yufuin Kohseinenkin Hospital (left), for in-home use (right)

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UNI-CUB The UNI-CUB is a personal mobility device that offers complete freedom of movement and is operated simply by shifting one’s weight in the desired direction. The compact device fits comfortably between the legs, freeing the hands for other tasks. Designed to achieve integration with the human body for natural, intuitive movement, the UNI-CUB has been undergoing demonstration testing since June 2012 at the National Museum of Emerging Science and Innovation in Tokyo, with plans for initial use in shopping malls, museums, and other public spaces. Walking assistance Honda is developing wearable walking assist devices to help people continue to enjoy the freedom and joy of walking on their own two feet. Making full use of our research in robotics, represented by ASIMO, the world’s most advanced humanoid robot, we are developing a device that helps the user lift his or her legs as they move forward and backward while walking, as well as a device that supports bodyweight to reduce the load on the user’s legs. We are actively pursuing practical application of these devices by verifying their potential use in rehabilitation medicine and elderly care, and by collaborating with homebuilders to verify the in-home use of robot technologies.

HF120 TURBOFAN ENGINE FOR LIGHT BUSINESS JETS

The HF120 turbofan engine for light business jets The HF120 turbofan engine for light business jets, which is currently under development in collaboration with General Electric based on design technologies developed by Honda, is in the last stage of testing for certification from the U.S. Federal Aviation Administration and European Aviation Safety Agency.

TOWARD AN AGE OF PERSONAL MOBILITY IN THE SKY

The engine is 10% more fuel efficient and requires less maintenance than existing engines in the same class, and it achieves significantly lower emissions and quieter operation than required by regulation. The HF120 will power the HondaJet, the first production model of which entered production last year, and is highly anticipated by other aircraft manufacturers as well as a next-generation engine with exceptional environmental performance. 1. A mobility device developed for marketing in Japan’s “micro” vehicle class, the introduction of which is being considered by the Japan Ministry of Land, Infrastructure, Transport and Tourism, and in the EU’s L7 category (heavy quadricycles; for EVs, maximum mass of 400 kg excluding the battery and maximum power output of 15 kW) 2. As of June 2013, Memorandums of Understanding (MOUs) have been signed with Kumamoto Prefecture and Miyakojima City in Okinawa

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Automobiles

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Global Product Development Developing technologies and products that will get us to Triple Zero Accord PHEV launched in North America in January 2013

Honda is actively engaged in the development of hybrid and other advanced environmental technologies that will satisfy the growing global demand for more eco-friendly cars while delivering a fun driving experience unique to Honda.

Global Enhancing and expanding hybrid technologies Intelligent Multi-Mode Drive, the world’s most efficient hybrid system In January 2013, Honda expanded the Accord lineup, one of the topselling in North America, with the addition of the Accord PHEV. Its release introduced new value to the mid-size sedan class and marked the first adoption of a two-motor plug-in hybrid system in a Honda vehicle. The biggest highlight of this model is that it employs Sport Hybrid Intelligent Multi-Mode Drive (i-MMD), a new Earth Dreams Technology1 hybrid system. i-MMD, which is composed of a newly developed 2-liter straight four-cylinder Atkinson cycle engine, a high-efficiency two-motor electric CVT, and a high-capacity 6-kWh lithium-ion battery, was specifically designed to provide maximum carbon-reducing satisfaction and fun-to-drive performance in a mid-size vehicle. The Accord Plug-In realizes a world-leading fuel economy of 115 MPGe3 in all-electric mode, and offers a significantly farther EV driving range with its plug-in charging capability. Plug-in and hybrid versions of the new Accord will go on sale in Japan in June 2013.

2.0-liter DOHC i-VTEC Atkinson cycle engine featured in the sport Hybrid i-MMD Plug-in system

Sport Hybrid i-MMD Plug-in lithium-ion battery (cut-away model)

Battery charger

Global hybrid vehicle sales top 1 million Cumulative global sales of Honda hybrid vehicles surpassed 1 million units as of September 30, 2012—12 years and 11 months after the first-generation Insight was launched in Japan in 1999. 1. “Earth Dreams Technology” is a next-generation powertrain technologies that greatly enhances both driving performance and fuel economy, building on advancements in environmental performance for internal combustion engines, transmission efficiency, and electromotive technologies to pursue a joy of driving unique to Honda. 2. Honda internal research 3. Miles per gallon of gasoline equivalent: A measure of the fuel economy of an electric vehicle by converting the amount of electrical energy it uses per distance traveled to an equivalent amount of energy derived from gasoline.

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Two-motor electric CVT featured in the sport Hybrid i-MMD Plug-in system

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Jazz Hybrid ( Japan: Fit Hybrid) Ciimo Brio Amaze

Lineup additions and localized development expansion in China Ciimo, the first model developed by Dongfeng Honda In April 2012, Dongfeng Honda Automobile Co., Ltd. (Dongfeng Honda), a Honda automobile production and sales joint venture in China, announced and released for sale its first independently developed model, the Ciimo. The model was developed using the platform of the eighth-generation Civic by the Dongfeng Honda R&D Center. It features a 1.8-liter i-VTEC engine and realizes an impressive fuel economy of 6.9L/100km (China test cycle).

Eco-car production and sales expanded in Asia Jazz Hybrid production begun in Thailand and Malaysia Honda began local production and sales of the Jazz Hybrid (Japan: Fit Hybrid) in Thailand in July and in Malaysia in November 2012. The Jazz Hybrid, a compact hybrid vehicle offering exceptional ride comfort and fuel economy, has sold more than 200,000 units worldwide (as of March 31, 2013). Honda will strengthen production systems in countries where the model is sold in order to deliver hybrid vehicles with speed, affordability, and low CO2 emissions to customers in Asia, where demand for eco-friendly vehicles is expected to increase significantly in the years ahead.

Hybrid lineup enhancements, including the ILX luxury sedan In July 2012, we announced in China the CR-Z, a hybrid sports car popular around the world. And at the Guangzhou Motor Show, which began in November, we announced plans to expand our lineup of hybrid vehicles and displayed the Insight, Fit Hybrid, and ILX, the firstever Acura-brand luxury compact sedan powered by a hybrid system. We have also started preparations to begin hybrid production in China within the next three years.

All-new Brio Amaze sedan released in Thailand In November 2012, Honda released in Thailand the Brio Amaze, an all-new compact sedan based on the Brio five-door hatchback and compliant with Thailand’s eco-car certification standards and the Euro 4 emission standard. In April 2013, we also introduced the Amaze, a model equipped with a model-exclusive 1.5-liter i-DTEC diesel engine, and began sales in India and Thailand.

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ILX premieres in China at the 2012 Guangzhou Motor Show

Insight

Fit Hybrid

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Civic equipped with the new 1.6-L i-DTEC diesel engine

SPORT HYBRID SH-AWD AND THE NEXT

Roll out of Earth Dreams Technology powertrains Civic upgraded to new 1.6-L i-DTEC diesel engine In January 2013, Honda added a new Civic model to its European line featuring a new 1.6-liter i-DTEC diesel engine. This small diesel engine, the first Earth Dreams Technology component to be released in Europe, is the lightest in its class4 and achieves a CO2 emissions performance of 94 g/km5. i-DCD, a light and compact one-motor hybrid system Sport Hybrid Intelligent Dual Clutch Drive (i-DCD), a newly developed one-motor hybrid system planned to go into Honda’s next subcompact model, combines a newly developed 1.5-liter straight fourcylinder Atkinson cycle engine, a seven-speed DCT6 with a built-in high-output motor, and a lithium-ion battery, and achieves at least a 30% efficiency improvement over conventional hybrid systems. Sport Hybrid SH-AWD and the next NSX Sport Hybrid Super Handling All Wheel Dri ve (SH-AWD), Honda’s first three-motor hybrid system, pairs a 3.5-liter direct-injected V6 engine with a seven-speed DCT with a built-in motor that controls torque to the left and right wheels independently. The system, which simultaneously delivers the acceleration performance of a V8 engine and the fuel economy of a straight four-cylinder engine, will figure as a central component in the next NSX sports car. 4. Honda internal research (as of September 30, 2012) 5. Honda internal research (with 16-inch tires). Equivalent to 3.6 L/100 kM of fuel. 6. Dual Clutch Transmission

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NSX Concept (Honda specifications) exhibited at the Geneva Motor Show in March 2013

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Motorcycles


In fiscal 2013, Honda strengthened its motorcycle lineup by expanding the application of two next-generation engines introduced the previous year, launched a new mid-size engine, and improved and expanded existing technologies to boost environmental performance worldwide.

Naked-style CTX700N

Global Expanding application of next-generation global 700-cc engine New CTX cruiser series announced In February 2013, we announced at the International Motorcycle Show in Chicago, Illinois, U.S., the CTX700N and CTX700, the first two models in the new CTX series, based on the development concept “Comfort Technology eXperience.” CTX is a series of mid-size bikes developed in pursuit of technologies that provide superior comfort by all measures and give the rider more riding comfort, convenience, and excitement. The engine in this series is a next-generation water-cooled fourstroke straight two-cylinder 700-cc engine, the same adopted in the NC700S, NC700X, and Integra models released in 2011. This environmentally responsible engine incorporates automobile fuel technologies for a 40% fuel efficiency improvement over conventional engines in the same class, while displaying powerful torque characteristics at low and medium rpm. By expanding the lineup of models that use this engine, we will seek to raise the environmental performance of our mid-size bikes worldwide. The CTX700N and CTX700, produced at Kumamoto Factory in Japan, went on sale in the U.S. in February and April 2013, respectively, and are slated for a Japan release in summer 2013.

CTX700 with cowling

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New two-cylinder 500-cc engine produced in Thailand First genuine mid-size sport bikes produced in ASEAN At EICMA 2012, held in November 2012 in Milan, Italy, we announced the CBR500R, CB500F, and CB500X, three new sport bikes with a newly developed water-cooled straight two-cylinder 500-cc engine. This series, launched as three distinct models to fit a variety of lifestyles while still incorporating the latest design trends, is the first set of genuine mid-size sport bikes to be produced in the ASEAN region, and was developed to target entry-level and downsizing users in developed countries and users in developing countries who are switching to a larger bike. The engine, with its reshaped ports and valves and other improvements, offers easy handling at low to midrange speeds as well as sporty performance at high speeds. Due to various friction-reducing enhancements, it also realizes class-leading fuel economy 1 and exceptionally quiet operation. The inclusion of a PGM-FI electronic fuel injection system, HECS3 exhaust system combining a three-way catalytic converter and O2 sensor2, and an air induction system results in super clean exhaust. The CBR500R, CB500F, and CB500X, produced in Thailand, went on sale in Thailand, Europe, and the U.S. in December 2012. Sales of a smaller, 400-cc model, produced at Kumamoto Factory and designed for the Japanese market, also began in Japan. 1. Honda internal research 2. Device that detects oxygen in exhaust gas to monitor the state of fuel combustion in the engine.

CBR500R with full cowling

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Crossover-concept CB500X

Naked-style CB500F

NEWLY DEVELOPED WATER-COOLED STRAIGHT TWO-CYLINDER 500-CC ENGINE FEATURED IN THE FIRST GENUINE MID-SIZE SPORT BIKES BUILT IN ASEAN

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Improving global environmental performance Lineup of eSP scooters expanded Announced in 2011 and introduced to markets in such models as the Click 125i, Vario Techno 125, and PCX, the eSP next-generation global scooter engine, boasting 25% better fuel economy compared to conventional engines in the same class3, has been expanded to a growing line of models. In Vietnam the SH was released in June 2012, the Air Blade in December, and the Lead in April 2013. Sales of the SH were also begun in Europe in September 2012, and in Thailand in April 2013. The Lead is scheduled to go on sale this summer in Japan as well. By continuing to apply this engine in other scooters produced around the world, we plan to increase the number of environmentally advanced scooters on a global basis. PGM-FI models expanded in Indonesia Last year we pledged to install our fuel-saving PGM-FI electronic fuelinjection system in all motorcycles produced in Indonesia by 2013 year-end. PGM-FI is a technology that electronically optimizes the amount of fuel injected into each cylinder, thereby allowing the bike to emit cleaner exhaust emissions while operating at maximum power and fuel performance. This “all-FI declaration” anticipated Indonesia’s new emission standards for two-wheeled vehicles. To meet this goal, we released in September 2012 the BeAT-FI and in December the CBR150R. The FI adoption rate was 52% as of 2012 year end.

SH

CBR150R Air Blade

BeAT-FI Lead

3. Honda internal data

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Flexible-fuel motorcycles lineup expanded in Brazil In Brazil, we expanded our lineup of flexible-fuel motorcycles, machines that, by being able to run on a mixture of gasoline and environmentally responsible bioethanol, reduce CO2 emissions and fuel costs at the same time. Adding to our existing lineup of the CG150 Titan, CG150 Fan, Biz, and NXR150 Bros, we released the larger capacity CB300R and XRE300.

XRE300

CB300R

New technical center completed in India In January 2013, after finishing the installation of Honda’s first wind tunnel test chamber in India, we began full operation of a new motorcycle technical center housing the research and development, production (engineering), purchasing, and quality divisions of our motorcycle business. The center, built on the property of Honda Motorcycle and Scooter India (Private) Ltd.’s (HMSI) Manesar Plant, is now the workplace of some 200 associates gathered from HMSI and Honda R&D (India) Private Ltd. The facility was designed to promote collaboration and higher work efficiency, putting Honda in the best position to deliver good products to our Indian customers with speed, affordability, and low CO2 emissions.

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The new technical center at HMSI’s Manesar Plant houses Honda’s first advanced wind tunnel test chamber for research and development in India

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Global

Gl


al ob

Power products


Besides personal mobility products, Honda also develops generators, tillers, outboard engines, lawn mowers, and other power equipment that enrich people’s lives. We strive to improve the environmental performance of these products in order to help drive the transition to a low-carbon global economy.

Global Miimo robotic lawn mower

Sound power level

Sales in Europe begun in April 2013 Miimo, a robotic lawn mower developed for households in Europe, moves by itself in a random pattern over a pre-designated area until the entire lawn is cut. Powered by a rechargeable lithium-ion battery, Miimo automatically mows the lawn on the owner’s preselected day and time, cutting the grass into a fine mulch that acts as a natural fertilizer and eliminates the need to bag and dispose of clippings. With Miimo, owners can keep their lawn looking beautiful without wasting time and energy on mowing. Miimo detects when its battery is running low and automatically returns to its charging station when it needs to recharge. Batterypowered motor propulsion and optimized blade speed made possible through the application of a blade disk with fan significantly reduces noise. It emits a sound power level far lower—32 dB(A) lower—than the conventional gasoline lawn mower, less than the sound of tree leaves rustling in the wind. The high-performance lithium-ion battery is lighter and has a larger energy capacity than lead and nickel–metal hydride batteries, and since it degrades less over many hours of use, it has a longer replacement cycle and so is better for the environment. Miimo not only emits zero CO2, CO, HC, and NOx during operation, but also has dramatically lower life-cycle CO2 emissions, roughly 75% lower than that of a gasoline lawn mower of the same class1. Miimo robotic lawn mower

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1. Compared to the HRG415 based on the same lawn size. Electricity CO2 emission factor (410 g/kWh) is based on the IEA’s “Energy Balance of OECD Countries 2010 Edition.”

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dB(A)

100 100 90 90 80 80 70 70 60 60 50 50 40 40 30 30 20 20 10 10 0 0

Gasoline lawn mower Gasoline lawn mower

Miimo Miimo

CO2 emission reduction benefit (Honda estimates) dB(A)

(%) (%) 100 100 90 90 80 80 70 70 60 60 50 50 40 40 30 30 20 20 10 10 0 0

Gasoline lawn mower Gasoline lawn mower

Miimo Miimo

Global

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Asia & Oceania Regional Initiatives

With the aim of reducing CO2 emissions across all product lines and product life cycles, Honda will continue to implement CO2 reduction and energy efficiency initiatives at all levels of our operations in the Asia & Oceania Region.

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90

91

Honda Environmental Strategy in the Asia & Oceania Region

93

Environmental Management Systems in the Asia & Oceania Region

95

Environmental Impact in the Asia & Oceania Region

99

The Seven Domains of Honda Business Activities


Asia & Oceania

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Asia & Oceania Regional Initiatives Honda’s Environmental Strategy in the Asia & Oceania Region

Honda’s Environmental Strategy in the Asia & Oceania Region Honda Roles in Asia & Oceania Region and the Reduction of Environmental Impacts

Current Assessment of Environmental Issues in the Asia & Oceania

Asian Honda Motor Co., Ltd. (ASH) was established in Thailand in October 1964, as a motorcycle distributor and, in 1996, assumed the role of Honda ASEAN Regional Headquarters. Due to the Asia & Oceania region’s fast growth and diverse markets, and the Honda focus on localizing its operations to be closer to its customers, ASH in 2004 was appointed as the Asia & Oceania Regional Headquarters, with responsibility for coordinating Honda activities in thirteen countries and supporting Honda operations in several additional countries within the region.

In the Asia & Oceania Region, Honda works to identify the impact of its business activities and products on the global environment from a life-cycle perspective and organized them within the context of Honda’s global environmental management. Similar to the Honda’s global perspective, Honda Asia & Oceania has recognized climate change and energy issues as top priorities, followed by environmental pollution, waste and resource problems, respectively. Honda in the Asia & Oceania Region tackles its mission in the area of climate change and energy issues. We have established our internal voluntary CO2 emission reduction targets and carried out multiple initiatives in every domain of our operations.

In the Asia & Oceania region, Honda conducts production in eight countries. Honda delivered about 14 million products to its customers in the region in FY2013. Consumer demand for mobility in the region is expected to continue to grow.

Many countries in the Asia & Oceania Region have revised and updated their environmental regulations regarding the release of pollution. For instance, Taiwan has revised its Water Pollution Control Regulations for continuous online monitoring. In Thailand, the 2012 regulation indicated Rules and Monitoring Procedures to control volatile organic carbon (VOC) leaks from processing equipment in industrial environments. Recently, there is a requirement to submit monitoring reports of VOC leakage twice a year. Further, Thailand is now proposing a draft of soil and groundwater standard for Cabinet approval.

In 2011, Honda adopted as its Environmental Vision “Realizing the Joy and Freedom of Mobility” and “a Sustainable Society where People Can Enjoy Life.” Under this vision, the company is focused on reducing its environmental impact and accelerating its global efforts to find solutions for climate change and energy issues.

Direction of Future Initiatives in Asia & Oceania

In response to local regulations in environmental pollution that became more stringent, Honda Asia & Oceania has organized and complied all of the environmental regulations in certain countries (see Environmental Compliance and Pollution Prevention, page 94).

Based on the Honda Environmental Vision, we are working to minimize all environmental impacts, with a particular focus on CO2 emissions and energy consumption. With the aim of reducing CO2 emissions across all product lines and product life cycles, we will continue to implement CO2 reduction and energy efficiency initiatives at all levels of our operations in the Asia & Oceania region. As part of our effort to realize the Honda Environmental Vision, we have identified environmental impacts from Honda business operations in the region, including from the supply chain. In 2011, we adopted the Honda Green Purchasing Guidelines formulated by Honda Motor Co., Ltd. We are actively applying environmental management methods to our supply chains in the region. Under our three-year, mid-term business plan, we are gathering CO2 emissions data from our business operations, including production and corporate activities. We have established internal voluntary targets to reduce CO2 emissions. The scope of these targets has been expanded to all Honda operations and its main group companies in the region. By intensifying our efforts, we propose to improve our capability to gather data on water usage, waste and VOC emissions, and to set targets for reduction in the future.

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Asia & Oceania Regional Initiatives Environmental Management systems in the Asia & Oceania Region

Environmental Management systems in the Asia & Oceania Region Honda’s Regional operations are given broad authority to fulfill their operational business responsibilities, which include planning and acting in accordance with Honda’s environmental vision to minimize the environmental impact of their local business activities. This includes efforts to reduce harmful emissions, to improve efficiency, and to minimize waste generation. Further, Honda strives to mitigate environmental damage and to ensure compliance with all applicable environmental laws and regulations, and to initiate product updates, warranty extensions, and recalls when necessary.

Environmental Compliance and Pollution Prevention

Environmental Management Promotion System

Emergency Protocols

Compliance with Laws and Regulations Regulatory compliance is fundamental to the production and in-use performance of Honda products, and to the continuance of Honda’s operations in Asia & Oceania. All Honda companies have systems in place to ensure that their activities comply with all applicable legal requirements.

In anticipation of potential accidents or emergencies that could cause environmental pollution, each factory and department has clearly defined procedures for the prevention or mitigation of pollution. Emergency drills and training events are held regularly in Honda’s facilities to increase emergency preparedness. This approach allowed us to prevent environmental contamination resulting from the natural disaster.

Asia & Oceania Environmental Committee The Asia & Oceania Environmental Committee has established environmental secretariat in each functional operation. Based on the mid-term management plan, the secretariat in each function reports its performance and future plan to reflect business activity responding to global climate change and energy issues. Through the conference, members of Asia & Oceania Environmental Committee — Thailand, Indonesia, Philippines, India, Pakistan, Bangladesh, Malaysia, Singapore, Vietnam, Taiwan, Korea, Australia and New Zealand - discuss and share initiatives including feedback.

Environmental Management at Honda facilities

Honda facilities were implemented with environmental management systems to continuously improve their ability to the environment and mitigate environmental impact. Honda is committed to achieve and maintain third-party ISO 14001 certification for environmental management at Honda manufacturing facilities as well as office operations throughout the region. 45 facilities of the Honda companies in Asia & Oceania region acquired ISO 14001 certification. Honda will continue working to acquire ISO 14001 and applying the PDCA cycle in order to reduce the environmental impact in all operations.

The committee proposes measures to respond to interdepartmental issues. Individual departments and operations review its PDCA cycle. Group companies and transportation review environmental operations and policies. It is charged with promoting ways to minimize the environmental impact of every aspect of Honda’s operations in the region.

Organizational Structure

Secretariat (Presidential OfficeEnvironment & Safety Planning)

Parts Manufacturing Group Companies

Production Operations

Factories Completed vehicles/service parts sets, Manufacturing, Transportation Group Companies

Business Operations

Automobile, Motorcycle, Power Products business management operations

Customer Service Operations

Automobile, Motorcycle, Power Product dealers Parts distribution warehouses, Service parts shipping

Business Support Operations

Headquarters, other office facilities, Group companies

R&D

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Purchasing Operations

Asia & Oceania Environmental Committee

ISO 14001 Certification

Environmental Audit

Honda facilities complied with ISO 14001 certifications regularly subject to internal auditing in order to assess environmental management system in place and compliance with relevant environmental regulatory requirements. Additionally, external audits are also carried out by inspection and registrations to achieve continual improvement in the standard of environmental management.

R&D Group Companies As of June 2013

94


Asia & Oceania

2010

2,952

Asia & Oceania Regional Initiatives Environmental Impact in the Asia & Oceania Region

3,608 3,058

2013

3,804 0


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Indirect energy 2 011 consumption 2012

1,000

2,000

3,000

4,000

5,000

6,000

Companies consolidated and affiliated companies We strive to make our production facilities in the Asia & Oceania the pride of the communities in which they operate. We are also working tocovered: conserveAll energy, minimizesubsidiaries waste, and reduce environmental impacts in other areas. Note: 1. Historical figures have been adjusted to reflect an increase in the number of companies covered and more detailed analysis of the data. 2. Totals with more than three digits have been rounded to three significant digits.

of the Honda Group in Asia & Oceania Region

● ● ●

2 Greenhouse gas emissions 3 Water use, wastewater volume

1 Energy consumption (FY)

(FY)

(TJ)

2010 Direct energy consumption

2011

Direct emissions

4,741

2012

3,664

1,000

2,000

3,000

2010

4,000

5,000

Indirect emissions

3,058

1,000

2,000

3,000

4,000

5,000

●

95

200

2011 2012

Wastewater volume 200

Waste landfilled

253 363 0

200

2013 400

600

2011

502

2,000

4,000

6,000

8,000

10,000

12,000

(1,0003 m)

603 521

2012

9,577

800

7,227 4,577

2013

668 5,759

400

600

800 5,000

6,000

(FY)

314


6,431

7,000

8,000

Emissions Calculation and Reporting Manual, ver.3.4” and WRI/WBCSD (2004) “The Greenhouse Gas Protocol (Revised Edition).” ● CO2 emissions from purchased electricity are calculated for each utility based on the latest emission factors. ● Calculations based mainly on emissions from stationary sources.

333

2013

2012

Companies covered: All consolidated subsidiaries and affiliated companies Companies covered: All consolidated subsidiaries and affiliated companies of of the Honda Group in Asia & Oceania Region the Honda Group in Asia & Oceania Region ● For information about greenhouse gas calculation methods, see the METI (2004) “Greenhouse Gas

(1,000t-CO2 equivalent)

2012

10,211

4 Waste generated, landfilled

(FY)

2011

2011

(FY)

2 Greenhouse gas emissions

Direct emissions

10,848

0

Purchased electricity has been converted to joules using the international standard 3.6 GJ/MWh. Calculations based mainly on energy consumed by stationary sources. A tera-joule (TJ) is a unit of energy, “ tera ” meaning 1012.

2010

2010

0

0

6,000

(1,000m3)

(FY)

363

2013

Companies covered: All consolidated subsidiaries and affiliated companies of the Honda Group in Asia & Oceania Region ●

Water use253

2010

3,804 0

314

2012

6,000

3,608

2013

2011

0

2,952

Indirect energy 2 011 consumption 2012

333

2013

5,274 0


2010

4,940

2013

●

Purchased electricity has been converted to joules using the international standard 3.6 GJ/MWh. Calculations based mainly on energy consumed by stationary sources. A tera-joule (TJ) is a unit of energy, “ tera ” meaning 1012.

400

600

800

96


(1,000t)

2010

2

2011

2

2012

4

2013

4

Asia & Oceania

2010

2,952 3,608


2012

Wastewater volume

3,058

2013

3,804 0

1,000

2,000

3,000

4,000

5,000

2011

7,227

2012

4,577

2013

6,000

5,759 0

ed: All consolidated subsidiaries and affiliated companies up in Asia & Oceania Region

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2 011

(1,0003 m)

(FY)

5,000

6,000

7,000

8,000

Companies covered: All consolidated subsidiaries and affiliated companies of the Honda Group in Asia & Oceania Region

city has been converted to joules using the international standard 3.6 GJ/MWh. d mainly on energy consumed by stationary sources. a unit of energy, “ tera ” meaning 1012.

4 Waste generated, landfilled

house gas emissions Water use, wastewater volume 3 (FY)


2010

314

2012

253

Water use

2013 200

2010

10,848

2011

10,211

2012

363 0

2,000

4,000

6,000

8,000

10,000

603

2012

Wastewater volume

2013 0

200

400

2011 521 2012 2013 600

Total waste generated

4,577 5,759

800 0

2

2012

4

2013

4

5,000

6,000

7,000

2

4

6

8,000

180

2011

199

2012

139

2013

209 0

d: All consolidated subsidiaries and affiliated companies p in Asia & Oceania Region Companies covered: All consolidated subsidiaries and affiliated companies of the Hondasee Group in Asia & “Greenhouse Oceania Region out greenhouse gas calculation methods, the METI (2004) Gas

8

(1,000t)

2010

7,227 668

2011

(FY)

(1,0003 m)

(FY)

2011

2

0 12,000

(1,000t)

2010

9,577

800 0

502

Waste landfilled

6,431

2013 600

400

2010

(1,000m3)

(FY)

333

2011

(FY)

100

200

300

400

Companies covered: All consolidated subsidiaries and affiliated companies of the Honda Group in Asia & Oceania Region

n and Reporting Manual, ver.3.4” and WRI/WBCSD (2004) “The Greenhouse Gas Protocol (Revised Edition).” m purchased electricity are calculated for each utility based on the latest emission factors. mainly on emissions from stationary sources.

4 Waste generated, landfilled (FY)

Waste landfilled

97


(1,000t)

2010

2

2011

2

2012

4

2013

4 0

2

4

6

8

98


Asia & Oceania

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The Seven Domains of Honda Business Activities Honda is promoting its green initiatives with the goal of creating production facilities that are the pride of the communities in which we operate. We are also promoting energy-conservation and waste-reduction initiatives to minimize the impacts in virtually every aspect of our business. Honda divides its business activities into seven domains – from product development through end-of-life. Each domain sets its own mid-term policies and internal voluntary targets for environmental initiatives.


Sales and Service

Administration

Transportation

99


Product development

Purchasing

Production

100


Asia & Oceania

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Product Development

Product Development The largest impact of Honda products on the environment comes from the byproducts of fuel combustion during customer use, primarily CO2 and smog-forming exhaust emissions from the combustion of fossil fuels. The reduction of environmental impact begins with the development of Honda products that are designed to use fuel more efficiently with cleaner exhaust emissions. To minimize CO2 emissions, Honda is pursuing further advances in fuel efficiency and other practical applications of alternative energy as the core of its commitment to reduce the environmental impact of its products.

New FY2013 Products and Technologies

• Continuously Variable Transmission (CVT) A Continuously Variable Transmission (CVT) can be adopted in a variety of engine models for mini, compact and mid-size vehicle classes. Honda uses reinforced belts to enable wider gear ratios allowing for continual optimization of hydraulic pressure to the pulley under a variety of driving conditions. In addition, a new coordinated control system “G-design Shift” is employed to enable more precise and immediate response, contributing to improved fuel economy.

Automobile

Flexible-fuel Models Accord In FY 2013, Honda’s Asia & Oceania began leasing its all-new Honda Accord, the ninth generation of Honda’s popular luxury passenger model, offering outstanding performance and greater fuel efficiency with E85 compatibility (in Thailand). Environmental Performance Fuel Economy: The new Honda Accord is the first model in the region powered by Honda’s breakthrough Earth Dreams Technology-based engine.

TM

Driving Assist System for Eco-driving: ECO ASSIST System, the Ecological Drive Assist, is a fuel economy information system designed to help the driver develop and maintain a more fuel-efficient driving style. The system monitors driving styles and provides feedback encouraging the driver make adjustments to optimize fuel-saving performance during driving. • ECO Coaching • ECON Mode Exhaust Emissions: Featuring Earth Dreams Technology, the new Accord meets stringent Euro 4 emissions standards.

Earth Dreams Technology: Earth Dreams Technology is a nextgeneration set of technological advancements that enhance the engine to greatly improve both driving performance and fuel efficiency, delivering more horsepower and torque while reducing emissions. • A high-efficiency gasoline engine delivering performance and fuel economy By enhancing Honda’s original VTEC (Variable Valve Timing and Lift Electronic Control System) technology to thoroughly improve thermal efficiency and minimize friction, Honda developed a new engine series employing a new structure for higher expandability. The 2.4-liter engine is applied to the new Accord, achieving 9.2 km/liter driven by E85 in UN ECE R101 mode (as measured in Thailand).

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• ECO Coaching

102


• ECON Mode

Asia & Oceania

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Product Development Automobile

Civic An all-new, completely redesigned Honda Civic was released, expressing a refined, sporty design packed with smart technology including i-MID (Intelligent Multi-Information Display). Safety systems and TM ECO ASSIST System offer a fun driving experience and fuel-efficient eco driving. The new Civic is also compatible with E85 fuel for the Thailand market.

CRV Honda launched an all-new CR-V that delivers a bold and advanced design concept. The newgeneration 2012 Honda CR-V is fully equipped with smart driving technologies and provides greater TM fuel efficiency with the ECO ASSIST system and ECON mode. Models distributed in Thailand are compatible with E85 fuel.

Environmental Performance Fuel Economy: The new Honda Civic is equipped with SOHC i-VTEC engine that delivers fuel economy of 11 km/liter in 1.8-liter engine with E85 in UN ECE R101 mode (as measured in Thailand). TM Driving Assist System for Eco-driving: The new Civic features the ECO ASSIST System, enhancing the driver’s ability to maintain a fuel-efficient driving style. • ECO Coaching • ECON Mode • Real Time Fuel Consumption Meter

Environmental Performance Fuel Economy: The all-new Honda CR-V is a five-seat automobile powered by either a 2.0-liter SOHC i-VTEC engine that generates a maximum of 155 horsepower; or a 2.4 liter DOHC i-VTEC that generates a maximum of 170 horsepower. Both types come equipped with a five-speed automatic transmission and a choice of two-wheel or four-wheel drive that delivers fuel economy of 8.5 km/liter in 2.0-liter engine with E85 in UN ECE R101 mode (as measured in Thailand). TM Driving Assist System for Eco-driving: Featuring the ECO ASSIST System to enhance the driver’s ability to maintain a fuel-efficient driving style. • ECO Coaching • ECON Mode • Real Time Fuel Consumption Meter

Exhaust Emissions: The new Honda Civic meets stringent Euro 4 emissions standards.

Exhaust Emissions: The all-new Honda CR-V meets stringent Euro 4 emission standards.

• ECO Coaching and ECON Mode

• Real Time Fuel Consumption Meter • ECO Coaching

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104


• ECON Mode

• Real Time Fuel Consumption Meter Asia & Oceania

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Product Development Automobile • City CNG

Alternative-fuel Models (CNG) City CNG In line with Honda’s global efforts to reduce CO2 emissions by 30% (from year 2000 levels) across all product lines by 2020, Honda Automobile (Thailand) Co., Ltd. in August 2012 announced its first City CNG that supports both E20 fuel and CNG fuel solutions. Honda has developed a CNG system in the Honda City, one of its best-selling models to meet the lifestyles and demands of Thai consumers who are looking for a vehicle with high performance and fuel-efficiency with alternative energy. The new Honda City CNG is completely built at Honda’s factory and also equipped with electronic fuel injection and a unique suspension design. Environmental Performance Fuel Economy: The Honda City CNG is powered by a 1.5-liter i-VTEC engine. The new Honda City CNG offers the unrivaled value of two energy systems, both gasoline E20 and CNG, reducing CO2 emissions and pollutants released into the air. The fuel can be easily changed using a switch. A lighted meter displays the use status and gas level. The engine ECU precisely controls the mixture of fuels and manages gas cut-off in case of emergencies. Other key features include high-quality electronic fuel injection, a high-pressure gas pipe that is made of durable stainless steel, a gas pressure reduction system that regulates gas pressure in conformity with the driving situation, and a 65-liter gas tank with a solid barrier to separate the gas tank area from the trunk in order to maintain a clean and clear storage room in the trunk. The City CNG features precise control of the air-fuel mixture and a close-coupled catalytic converter beneath the exhaust manifold.

Honda IMA Hybrid Models (Hybrid System) Jazz Hybrid The Honda Jazz Hybrid was introduced as the first Honda model in the sub-compact market segment. The Jazz Hybrid features a parallel hybrid system that works in tandem with the i-VTEC engine to power the vehicle. The hybrid system is simple and lightweight, providing enhanced driving performance and fuel efficiency. The i-VTEC engine provides primary power and works together with the electric motor. Environmental Performance Fuel Economy: The Honda Jazz Hybrid is equipped with a 1.3-liter i-VTEC engine and IMA electric motor. The engine is the primary source of motive power, with supplementary energy supplied by the electric motor for enhanced acceleration performance. The fuel economy is 21.3 km/liter (4.7 liters/100 km) in UN ECE R101 mode (as measured in Thailand). TM

Driving Assist System for Eco-driving: The new Honda Jazz Hybrid comes with intelligent ECO ASSIST , a technology designed to help the driver maintain a more fuel-efficient driving style. Its display and coaching system encourages optimum fuel-saving performance for all driving styles Exhaust Emissions: Featuring IMA hybrid Technology, emissions from the Jazz Hybrid meet stringent Euro 4 emission standards.

Exhaust Emissions: The Honda City CNG meets stringent Euro 4 emissions standards. • Ambient Meter, Eco Bar and ECON Button

• Lighted Gas Meter

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Asia & Oceania

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Product Development Automobile

Hi-efficiency Models Brio Amaze In November 2012, Honda unveiled an all-new 1.2 liter sedan called the “Brio Amaze” designed exclusively for Asia and announced that Thailand would be the first country to launch the model. The Brio Amaze satisfies the needs of customers in the entry-car market. Environmental Performance Fuel Economy: The Brio Amaze is powered by a 1.2 liter, 4-cylinder, SOHC i-VTEC engine with efficient fuel economy 20 km/liter (5 liters/100 km). Driving Assist System for Eco-driving: Featuring an ECO indicator to support a more fuel-efficient driving style. • ECO Indicator Exhaust Emissions: With its excellent environmental performance, the Brio Amaze qualifies as an eco-car in Thailand that consumes less than 5 liters/100 km of fuel, emits CO2 emissions of less than 120 grams/1 km, satisfies passenger car standards (UN ECE Reg. 94 or Reg 95), and has a minimum emissions standard of Euro 4 or higher. Featured with precise control of the air-fuel mixture and a close-coupled catalytic converter, the Brio Amaze meets stringent Euro 4 emissions standards.

Brio Amaze

• ECO Indicator

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Asia & Oceania

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Product Development Motorcycle

Motorcycle Dream Yuga The Honda Dream was the first Honda motorcycle, introduced in Japan in 1949. The Dream series has continued through a series of models offered in markets globally for more than 60 years. Now the same legendary Honda Dream series has been introduced to India to satisfy customers’ needs. As a true mass-market motorcycle, the Dream Yuga is offered at a very affordable price and is equipped with a 110cc engine producing 8.5 BHP at 7,500 RPM. Featuring a long seat, full gear lever, and full chain case, the Dream Yuga is suitable for many types of riders. The Dream Yuga delivers style and fuel economy to fulfill the practical needs and emotional desires of Honda customers. The Dream Yuga is also a highly durable motorcycle. It comes with tubeless tire/tuff up tube options, viscous air filter, and maintenance-free battery. The combination of all these features significantly increases the durability of the motorcycle. The Dream Yuga is comfortable to ride on both good and poor road surfaces. This superb comfort is provided by its lightweight strong frame, longer suspension stroke and comfortable riding posture.

Environmental Performance The Dream Yuga’s engine is equipped with several cutting-edge technologies that contribute to its fuel economy of 72 km per liter. An advanced air inductor and catalytic converter contribute to the bike’s environmentally responsible performance and low emissions.

Dream Yuga

Click125i Idling Stop The Honda Click 125i comes with an automatic transmission and a new engine with an idling Stop System. This model aims to tap into the market for teenage drivers who prefer modern technology and comfort, including good performance and affordability. The Click125i realized a centralized mass along with a much simpler layout for the cooling system by integrating the radiator into the engine. In addition, an electronically controlled alternating current generator/ starter (ACG) serves as a starter motor that also generates electricity, eliminating the conventional starter motor and gears for a more lightweight and compact design. This liquid-cooled, 4-stroke, single-cylinder engine (eSP/Enhanced Smart Power) for the next-generation of Honda 125cc scooters incorporates an electronically controlled ACG starter that delivers a quiet start and an advanced idle stop function. Further, it offers a suite of safety technologies including a Combi Brake system; a Side Stand Switch, which automatically switches off the engine when parked; and a Lock Brake Lever System to prevent vehicle movement when parked on a slope.

Environmental Performance Idling Stop system: Idling Stop system has been developed to reduce exhaust emissions and fuel consumption while the scooter is stopped, such as at a traffic signal or in a traffic jam. When the scooter is stopped for longer than three seconds, the system will automatically stop the engine. When the rider activates the throttle, the engine is instantly restarted. Improving Fuel Efficiency and Reducing Exhaust Emissions: For the fuel supply system, which must accommodate an environmentally responsible global standard engine, PGM-FI (Programmed Fuel Injection system) is incorporated. PGM-FI optimizes combustion under a wide range of riding conditions, enabling the Click 125i to meet Euro III emissions standards while delivering powerful riding performance. It provides maximum fuel economy of 55.8 km per liter in ECE R40 mode.

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Product Development Motorcycle

LEAD 125

LEAD 125 The new Honda LEAD 125 scooter comes with the latest features and is equipped with a liquid-cooled 125 cc, single cylinder engine (eSP/Enhanced Smart Power) that incorporates low-friction technology. The LEAD 125 also adopts an advanced idling stop system and Programmed Fuel Injection system (PGM-FI), delivering stable engine performance and contributing to high fuel efficiency. As a global model, the LEAD 125 is produced in Vietnam and exported to Japan. This makes Vietnam the third Asian country to provide global production and export, following Thailand and India.

Environmental Performance Idling Stop system: The LEAD 125’s idling stop system further improves fuel economy. The engine is stopped when the scooter stopped. The engine is instantly restarted when the rider activates the throttle. Improving Fuel Efficiency and Reducing Exhaust Emissions: The new Honda LEAD 125 meets Euro III emissions standards and delivers a maximum fuel economy of 55 km/liter in ECE R40 mode.

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Product Development Power Products

Power Products New GX Mid-range engine The current market demands low carbon-emissions products, and Honda seeks to fulfill that need by introducing the new Mid-GX engines series (GX120, GX160, GX200). The new Mid-GX engines are redesigned and now share the same design features as the Large-GX engine lineup. The Mid-GX marketability is greatly improved with reduced noise, easier handling and lower maintenance requirements. These features have been enhanced while keeping the same installation compatibility as the current Mid-GX engine series. The new Mid-GX will provide satisfaction to Honda customers and final users for a wide range of applications.

Environmental Performance Improving Fuel Consumption and Reducing Exhaust Emissions: The new GX160 was developed to reduce pollutants from exhaust emissions. The GX160 utilizes a redesigned piston shape and piston ring, and a modified carburetor setting to improve fuel consumption. Further, by retarding ignition timing, combustion temperature and combustion pressure are reduced, resulting in lower CO2 emissions and NOX emissions. Noise: The new internal construction of the GX160 allows for smoother flow of exhaust emissions through the muffler outlet. The rigidity of the muffler wall has been increased by adding reinforcing ribs to the exterior of the muffler in order to reduce radiated sound from the muffler. In addition, engine vibration is also decreased by reducing piston weight. Finally, by modifying the internal structure of the muffler, exhaust noise and vibration are further minimized.

EP1000 Generator The new EP1000 generator is developed to suit the requirements of residential and commercial segments. This 1kVA portable generator is designed to supply power for homes and small businesses for long-duration power shortages. The EP1000 is equipped with 4-stroke technology that eliminates the need to mix fuel with oil during refueling. With its compact design and lightweight, the new EP1000 is also a reliable and affordable power products for users.

Environmental Performance Improving Fuel Consumption and Reducing Exhaust Emissions: The new EP1000 Generator is redesigned to enable superior fuel economy while further reducing exhaust emissions. The new EP1000 is constructed with a pent roof combustion chamber to improve airflow and fuel atomization within the cylinder. A vertical vortex is generated inside the combustion chamber enabling the uniform spread of the fuel to achieve high combustion efficiency. As a result, exhaust emissions (CO2 and NOx) from the new EP1000 can be reduced by 50% compared to the previous model. Noise: The Aluminum Pushrods in the new EP1000 reduce overall exhaust noise. By incorporating a low-resistance helical gear system, noise is further suppressed. Additionally, washers are added to mitigate noise from the movement of the engine’s rocker arms.

EP1000

Realizing the joy and freedom of mobility and a sustainable society where people can enjoy life Mid-GX engines

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Purchasing

Purchasing Throughout FY2013, more than 350 suppliers in eight countries supplied the Honda Asia & Oceania Region operations. Honda is initially working to strengthen environmentally responsible purchasing through the Honda Green Purchasing Guidelines. The Guidelines were formulated focusing on energy use, substances of concern, packaging waste, and CO2 emissions. Honda encourages suppliers to adopt measures to reduce environmental impact for Honda products.

Overview of a product life cycle

Honda Purchasing Roadmap Following the Honda Green Purchasing Guidelines, Honda issued a roadmap for the purchasing function to take measures in the reduction of Honda’s environmental footprint. To provide environmentally responsible products to Honda customers worldwide, we developed an environmental program, introducing the “E” Environment factor into the procurement process (QCDD+E). Working in partnership with our suppliers, Honda is aiming to realize a global low-carbon society.

Customer product use

Honda business activities Supplier business activities

Energy consumption, resource use

Energy consumption, resource use

Gasoline consumption Customer enjoyment (driving)

Transportation

Products Sales

Production Management

Recycling

Purchasing

Transportation Production

Products (parts, materials)

R&D

Sales Management Recycling

Purchasing R&D

Greenhouse gas emissions

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Supplier Data Collection and Data Accuracy Improvement, 2-way supplier meeting Special Topics – “Supplier Initiatives - CO2 Caravan” In its approach to Green Purchasing Guidelines, Asian Honda Motor Co., Ltd. (ASH) is continuing to capture CO2 emissions data in the Honda Asia & Oceania supply chain. The data was reported from more than 350 suppliers during this fiscal year, including Tier-1 and Tier-2 suppliers and parts logistics providers. As Honda aims to achieve top environmental performance, the company regularly communicates to all of its suppliers Honda’s expectations for leadership from its suppliers to promote CO2-reduction activity. To strengthen environmental initiatives in Honda’s supply chain, the company’s measures to reduce CO2 emissions and minimize Honda’s environmental footprint are conveyed to suppliers in an annual supplier conference. In the preparation steps prior to starting CO2 emissions reduction management in 2014, the Honda Asia & Oceania is focusing on more accurate and complete capturing of data. In FY2013, ASH held a purchasing operational meeting with 17 production bases within the region, explaining methods for calculating actual emissions. Following this implementation, the purchasing function at each base, working in partnership with its suppliers, organized supplier meetings to recognize and share its goals. This is to ensure that the practical implementation of CO2 emissions management will be carried out during the next mid-term business plan.

Besides the improvement of CO2 emissions data collection in the supply chain in the Region, the purchasing groups of Honda Automobile Thailand (HATC-M) and Thai Honda Manufacturing (TH) in Thailand cooperated with their in-house production teams, who are experts in facility and machine management, visiting suppliers as a part of the CO2 visualization caravan. This program was developed to investigate energy consumption at suppliers’ production facilities and to assist them in reducing CO2 emissions and increasing energy efficiency, in accordance with the Honda Green Purchasing Guidelines. In August 2012, Honda led a trial program in Thailand in which three local suppliers were selected voluntarily to join in this program. The working group from HATC-M and TH visited the suppliers’ production facilities to examine inefficient processes and advise them on continuous improvement methods. With respect to energy usage and product yield, electricity consumption is measured in relation to production volume to optimize production planning to be more efficient and to minimize CO2 emissions and energy losses. In visiting with suppliers, HATC-M and TH work teams shared know-how concerning CO2 visualization. As Honda, we belief in The Three Realities Principle, and the first step is “going to the actual place”, and we like to expand this believe to our business partners. We encourage suppliers to adopt measures to reduce their environmental impact and promote self-managed PDCA verification in reducing CO2 emissions at all levels of their business operations. Moving forward, HATC-M and TH working groups will continue the CO2 visualization caravan, expanding to other local suppliers in Thailand. In parallel, this activity will be implemented to engage more suppliers in other countries in the region – India, Indonesia, Pakistan, Malaysia, Vietnam, Philippines and Taiwan.

• The Kick-off Meeting of CO2 Visualization Caravan at TH

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Production

Production Performance Data in Production Process Automobile Production1 • Energy Consumption GJ 3,000,000

1,000,000 0

2012* 2013

t-CO2 300,000

(FY)

GJ 150,000

total consumption 3,466,436 4,628,682

4,000,000

0

100,000

50,000 2012

2013

0

(FY)

(FY)

t-CO2 600,000

• Water Usage m3 4,000,000 3,000,000

10,000 5,000

2012

2013

0

(FY)

m3 8,000,000 6,000,000

150,000

1,000,000

2,000,000

50,000

• Waste Generation ton 60,000

2012

2013

0

(FY)

• Waste Generation total waste generation 77,285 75,420

80,000

0

ton 80,000 60,000

1,500

20,000

20,000

500


0

2012

(FY)

2013

total waste generation 1,193 1,170

2,000 1,000

(FY)

2013

ton

total waste generation 56,520 64,538

40,000

2012* 2013

2012

• Waste Generation

40,000 0

(FY)

total usage 90,000 106,487

200,000 100,000

(FY)

2013

m3

total usage 3,345,000 4,304,600

4,000,000

2012* 2013

2012

• Water Usage

2,000,000 0

(FY)

total emission 11,640 11,857

15,000

• Water Usage total usage 1,440,513 3,207,514

2013

t-CO2

total emission 389,265 412,503

400,000

0

2012

• CO2 emissions

200,000 2012* 2013

total consumption 121,471 112,884

100,000

• CO2 emissions total emission 153,864 272,974

200,000

119

GJ 6,000,000

• Energy Consumption

2,000,000

• CO2 emissions

0

Power Products Production3

• Energy Consumption total consumption 1,276,854 2,209,873

2,000,000

Motorcycle Production2

0

(FY)

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Note: 1- Companies covered: Automobile Manufacturing Group companies in Asia & Oceania Region – HATC, HPM, HMSB, HCPI, HVN, HTW, HCIL, HACPL, HPPM, HPMC, MHAP, APM 2- Companies covered: Motorcycle Manufacturing Group companies in Asia & Oceania Region – AHL, HICOM, HMSI, HVN, TH, VAP, AHJ, BHS, HPI 3- Companies covered: Power Products manufacturing Group companies in Asia & Oceania Region – HSPP and TH (Note: Data of water usage and waste generation at TH reporting in Motorcycle Production *- 2012 data affected by Thai floods

2012

2013

(FY)


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Production

Energy Conservation Initiatives Energy Improvement through Technology Indonesia – PT Astra Honda Motor, Inc. (AHJ) adopted a Green Plant design concept for construction of the new 3A Plant. The design concept was primarily based on the reduction of electricity consumption. Regarding this concept, AHJ introduced “Smart Exhaust Ducting,” which was implemented using modified equipment such as an independent blower for each exhaust fan, motor inverter technology, programmable logic control, and exhaust grills with adjustable size and position, all aimed at reducing energy consumption in the operation of the single motor blower (125 kW) for exhaust muffler ducting (100A). Under ideal conditions, AHJ expects to reduce energy consumption by more than 80%.

• Smart Exhaust Ducting at AHJ lectro-ser vo press technolog y was introduced at the AHJ plant to improve energy efficiency in the press bearing. The 3kW servo press is powered by a 220V motor equipped with a mechanical break, which is active only during the stamping process. In addition, it incorporates a rotary load cell and servo controller that can control press speed, stroke and pressure. Under optimal conditions, the energy requirements of the press are reduced by more than 90% compared to conventional hydraulic presses.

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India – Honda Motorcycle & Scooter India (Private) Ltd. (HMSI) replaced four 1-megawatt diesel generators with more efficient liquid natural gas (LNG) units. The LNG-powered generators are equipped with cleaner-burning gas engines with modern exhaust controls. CO2 emissions have been reduced 48% compared to the previous system. Furthermore, LNG is widely supplied in several operations, including the paint shop, die casting areas and cafeterias. Through this effort, HMSI has further reduced CO2 emissions by 36%. HMSI also installed waste heat recovery boilers on its diesel generators. The waste heat from exhaust gas is utilized to generate steam for painting processes. This implementation can reduce diesel fuel consumption in the diesel-fired boilers by 95%, cutting CO2 emissions by 80%. • Waste Heat Recovery Boiler at HMSI Honda Cars India Ltd. (HCIL) implemented various energy conservation activities, including the installation of variable frequency drives (VFD) in the painting line to optimize drive speed, and installation of a compressed air management system (CAMS) for supplying constant air pressure. Through HCIL’s efforts, electricity consumption was reduced, resulting in an annual CO2 emissions reduction of 477 metric tons. Thailand - Asian Parts Manufacturing Co., Ltd. (APM) undertook several initiatives for energy conservation, including the installation of invertors for air compressors and an electro-deposit (ED) motor pump. By installing invertors, the energy requirements of the air compressor and ED motor pump were reduced, resulting in annual CO2 reductions of 143 metric tons and 65.5 metric tons, respectively. APM also installed a cooling pad for its air-cooled chillers to maximize energy savings. The evaporative cooling pad lowers the air temperature and allows air flowing to the chiller to begin the cooling process. The cooling pad has improved energy efficiency by 19% and reduced CO2 emissions by 88 metric tons per year. Thai Honda (TH) installed nine water-cooled units for its chillers. This improves energy efficiency in the chillers by spraying a fine fog of water into the air stream. The air temperature is lowered by about 5-10°C before entering the condenser. TH has reduced energy consumption 26% and CO2 emissions by approximately 544 metric tons annually.

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Production

• Co-generation System at HATC


Pakistan – Atlas Honda Ltd. (AHL) installed an integrated energy metering system to monitor energy consumption precisely for individual lines and facilities.

High-efficiency Lighting Technology Pakistan – Atlas Honda Ltd. (AHL) replaced inductive ballast fluorescent fixtures with more efficient electronic ballast fixtures. This change reduced the wattage of the fluorescent fixtures to 115 kW. CO2 emissions were reduced by 1.06 kg per unit of vehicle production. Honda Atlas Cars (Pakistan) Ltd. (HACPL) installed LED lights to conserve energy at its facility. Electricity consumption was reduced by more than 80% compared to mercury lamps, reducing CO2 emissions by 23 metric tons per year.

Watt 40 35 30 25 20 15 10 5 0

• Mini Air Compressor at HATC

Members of the Facility department at the HATC plant installed a pressure regulator in order to optimize the compressed air supply to various areas of the production line. As compressed air demand on the production line fluctuates, the pressure regulator automatically adjusts the flow of air to match the load. The resulting energy savings of approximately 194,040 kWh per year reduces annual CO2 emissions by 125 metric tons. Moreover, HATC installed a miniature air compressor to supply the production line during holidays when minimal loads are required. The mini air compressor consumes less energy compared to a conventional unit. Using the mini air compressor can reduce energy use by approximately 503,000 kWh per year, reducing CO2 emissions by 323 metric tons annually.

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Taiwan – The Honda Taiwan Motor (HTW) plant continued to reduce energy usage by installing a high efficiency, low-loss air compressor in its facility. This change reduced the electricity requirements by 12.6 %, resulting in an annual CO2 savings of approximately 195 metric tons.

Energy Consumption

-50%

Conventional Lamp

Conventional Lamp LED Lamp

Honda Automobile (Thailand) Co., Ltd. (HATC) investigated energy use in its plant operations and determined that about 50% of the energy consumed in the plant is from the painting process. HATC sought to reduce energy consumption in its painting operations by introducing a co-generation system. By utilizing waste heat from exhaust gas fed to a water chiller system as a power supply, CO2 emissions were reduced by 2,242 metric tons per year. Additionally, in the painting system, the body pre-treatment process uses hot water to rinse oil and grease off the body, while the electro-deposit (ED) process requires cold water to cool down the temperature of the body. HATC installed a heat exchanger to transfer energy between the pretreatment and the ED processes. By exchanging hot and cold temperatures, the energy consumption in the painting system has been improved.

LED Lamp

• LED Lights at AHJ Indonesia – LED lights were installed in the new 3A plant of PT Astra Honda Motor, Inc. (AHJ), reducing electricity consumption by 50% compared to conventional lamps. In Malaysia – HICOM replaced lights with more efficient LED technology in the production area. LED lights also improve brightness during nighttime operation. Also, the office area air-conditioning and lighting controls were labeled to allow for independent operation.

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Production

Energy Improvement through Smarter Management Pakistan – Honda Atlas Cars (Pakistan) Ltd. (HACPL) conducted a burner tune-up to improve the system’s combustion efficiency. The tune-up was carried out with a gas analyzer to save kerosene consumption. Through this activity, HACPL reduced energy consumption, cutting CO2 emissions by 43 metric tons per year. Atlas Honda Ltd. (AHL) improved forklift operational efficiency by optimizing routing and reducing operating time by 650 hours per year. Philippines – Honda Cars Philippines, Inc. (HCPI) implemented several energy efficiency programs through demand-side management. Thirty-five metric tons of CO2 emissions were cut by conducting a compressed air leak audit, shutting-off vending machines in non-production day, and analyzing a daily utilities, and repairing leaks on firefighting lines. Indonesia – In 2011, P.T. Honda Prospect Motor (HPM) initiated an Energy Saving Competition. This program is carried out with the aim of reducing CO2 emissions from its operations and also raising awareness and encouraging associates to participate in energy saving. HPM associates from all departments formed teams and developed environmental initiatives to reduce their environmental impact in various ways – CO2 emissions reduction, innovative idea, advanced technology, environment, safety and quality – with the winner receiving an award. HPM ran the program for its second consecutive year in 2012. The project that won the Energy Saving Competition 2012 was entitled “Reduce Air Consumption on Journal Measuring Digital Engine Gauge.” This initiative is aimed at reducing losses of air supply and improving the efficiency of air usage in the journal measuring operation. Through this initiative, the plant’s energy requirement was reduced by 10,707 kWh, saving 9.5 metric tons of CO2 per year.

Special Topics – “The Implementation of Phosphate Low Temperature in Painting Operations” at HPM P.T. Honda Prospect Motor (HPM) implemented a program to reduce CO2 emissions and painting sludge from its painting line. HPM modified its paint pretreatment process with the use of new paint material known as “Phosphate Low Temperature.” Through this change, the painting operations can operate at a lower temperature resulting in energy savings and reducing CO2 emissions by about 500 metric tons per year. Moreover, the Phosphate Low Temperature initiative has minimized painting sludge by optimizing material usage. This implementation is also applied at Honda Automobile (Thailand) Co., Ltd (HATC) and Honda Taiwan (HTW) factories in cooperation with Honda R&D Asia Pacific Co., Ltd (HRAP). The Phosphate Low Temperature technique will be further implemented in other Honda’s factories in the Asia & Oceania region. Pretreatment process

Liquid type

Low Temperature

• Phosphate Low Temperature in Painting Operations at HPM Taiwan - Honda Taiwan Motor (HTW) implemented a process to modify the operating time in the steam process. The operating time was reduced one hour, with startup delayed by 30 minutes and shutoff advanced by 30 minutes. As a result, energy use has been reduced by more than 15%, saving 191 metric tons of CO2 per year.

• Energy Saving Competition at HPM

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Production

Alternative Energy Sources Special Topics – “Cross-wave Technology” at HMSI Malaysia – Boon Siew Honda SDN BHD (BSH) installed 32 square meters of Honda Soltec solar photovoltaic modules on the rooftop of its car shelter. Delivering more stable energy output, the Honda Soltec CIGS (Copper, Indium, Gallium, Selenium) thin-film solar cells were developed with a thickness of just 2-3 microns. The BSH solar array produces 5,000 kWh of renewable energy per year, reducing the plant’s reliance on grid power and offsetting CO2 emissions from grid electricity production by 3.5 metric tons annually.

India - As groundwater levels decrease, rainwater becomes a more important water source. HMSI conducted a hydro-geological feasibility study to harvest and store rain water on-site. Rainwater can be harvested from rooftops, paved and unpaved areas including storm water drains. Honda Motorcycle & Scooter India (Private) Ltd. (HMSI) subsequently introduced “Cross-wave technology,” a high-efficiency rainwater harvesting and groundwater recharging system at its Manesar plant, where 80% of available rainwater is collected. The rainwater harvesting system has a capacity of 1,370 cubic meters per hour.

Cross-wave Technology

Water Consumption Thailand - Honda Automobile (Thailand) Co., Ltd. (HATC) achieved zero discharge of wastewater. All treated wastewater from the production line is recycled for use in tree and landscape irrigation. Recently, HATC installed another water treatment plant system to recycle treated wastewater fed to the cooling system. Indonesia - PT Astra Honda Motor, Inc. (AHJ) continuously strives to reduce resource consumption for its production processes. During the company’s plant expansion, the wastewater treatment facility implemented a new UF-RO wastewater treatment system. Using the UF-RO system, wastewater was recycled for chemical mixing in the internal wastewater treatment process itself and it was also supplied to the Painting line for use in the rinsing process. By implementing UF-RO technology, AHJ has significantly reduced city water consumption by 1,764 cubic meters per year to preserve water resources. Pakistan - Atlas Honda Ltd (AHL) minimizes its water consumption by using recycled water from the R/O system in lavatory faucets. City water use was reduced by 72 cubic meters daily through this implementation. In addition, AHJ recycled its treated waste water for garden and landscape irrigation. A total of 37,800 cubic meters of treated wastewater was prevented from being discharged outside of the facility. • Cross-wave Technology at HMSI

Waste Reduction

• R/O system at AH

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• Treated waste water recycling for garden and landscape irrigation at AHL

Thailand - Honda Automobile (Thailand) Co., Ltd. (HATC) is working with its suppliers to reduce the use of plastic packing for shipment of automobile parts, including steering wheels, sun visors, floor mats and seats. HATC has already implemented a program to reduce plastic packing for shift lever assemblies and floor mats, resulting in a reduction of plastic use by 49.25 grams per unit of production.

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Transportation

Transportation The Honda Asia & Oceania Region has begun initiatives to improve its efficiency in the transportation domain. As part of its efforts to reduce CO2 emissions and energy consumption, Honda is working to reduce the amount of packaging material used to ship parts, and promoting the use of returnable containers. Honda is developing environmental management systems jointly with its partners and implementing other environmentally responsible logistics measures.

CURRENT

HPM

Improvement of Transportation Efficiency Initiatives in the transportation of Parts

Since the inception of the “milk run” program in FY2012, P.T. Honda Prospect Motor (HPM) has worked to improve efficiency in supplier transportation. About 72 suppliers deliver parts by truck to the HPM warehouse daily. Shipments vary in size, and some trucks do not deliver with optimal load capacity. Inefficiency in the supply chain was resulting in higher fuel consumption and CO2 emissions. Through the milk run program, HPM can maximize the volume of parts on each transport and avoid an unstable condition in delivery performance – early or delayed delivery. HPM aims to fully implement this program to its all of its suppliers by 2016. Supptier A Supptier B Supptier C

Initiatives in the transportation of Service Parts The Honda Asia & Oceania Region strives to improve its operational efficiency and achieve CO2 emissions reductions in the distribution of service parts. Multiple initiatives for effective logistics were carried out, including reducing the amount of miles traveled by trucks, reengineering delivery routes, and optimizing the frequency of deliveries, and maximizing the volume of parts on each truck. In addition, The Honda Asia & Oceania Region has amended the supplier transportation network. Direct shipments from supplier to dealers were performed to reduce transportation distance and warehouse workloads.

Normal route Order

Parts Center

Delivery Supplier

W/H operation (Receive Shelf) W/H operation (Pick - Pack - Ship)

Delivery Order

Dealer

Direct shipment route Supplier

Dealer Order

Parts Center

Order

Delivery

CURRENT

MILK RUN

HPM

HPM

Supptier A Supptier A

Supptier B

Supptier C

Supptier C Supptier B

Milk Run Delivery

MILK RUN


HPM

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Transportation

Initiative in the transportation of Service Parts by Domestic Airfreight Avoiding delays in receiving service parts on daily orders delivered by standard ground trucks, domestic airfreight - an overnight freight service - is also provided to deliver service parts to dealers in Australia which are located far away from the central warehouse in Melbourne. In August 2012, Honda Australia initiated a new domestic airfreight policy in order to improve its operational efficiency and achieve CO2 emissions reductions. The domestic airfreight policy is refined to exclude large items being dispatched through air freight. Honda Australia reviewed and improved its IT system by adding “Flag” on the large items and parts code for “Road” transport. The warehouse consigning process has revised for low cubic volume of a consignment as standard air shipping. The large cubic volume of the consignment is considered as an exception for air freight. The domestic airfreight is restricted to genuine emergency only. Through this policy, the number of consignments and volumes were minimized resulting in reduction of shipment quantity and cubic weight as well as the corresponding efficiencies in air freight expenses and CO2 emissions.

5 days

2 days 3 days 2 days 5 days

Transit day (Road-equivalent)

• The overnight air freight service is required to deliver to Queensland, Western Australia, Tasmania and Northern Territory in Australia

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Transportation

Initiatives in Service Parts Warehouses The new service parts warehouse of Asian Honda Motor – the Asian Parts Center (APC) – is designed with energy-saving concepts, including an enhanced ventilation system and natural lighting. A hybrid ventilation system incorporates natural and mechanical forced-air systems. The outside cool air is drawn in by a mechanical system while also entering through ventilation outlets in the wall. Air from the ground floor is forced to upper floors by the mechanical system. The warm air then rises and is exhausted through a rooftop fan. The air is circulated inside the warehouse, providing high-quality indoor air and a comfortable working environment. Additionally, skylight technology was deployed on the rooftop of the warehouse. Natural daylight from overhead skylights further reduces electricity consumption.

Realizing the joy and freedom of mobility and a sustainable society where people can enjoy life • Skyligth Technology

• Ventilation outlets

• Hybrid Ventilation System

Resource and Waste Reduction Packaging Reduction The Honda Asia & Oceania Region increased the use of returnable containers in shipments of service parts within the region. Returnable crates were introduced with the aim of reducing packaging and wrapping materials. Furthermore, using returnable containers can provide for improved parts handling as well as space utilization, resulting in better protection of the product and improved product quality.

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Sales and Service

Sales and Service The Honda Asia & Oceania Region proactively encourages service centers and dealers to implement environmental management systems through Green Dealer initiatives reducing environmental impact.

Green Dealer Program Automobile Dealer Initiatives During the past year, Honda Automobile (Thailand) Co, Ltd. (HATC) began refreshing ISO 14001 implementation within its dealer network by providing training sessions. The training sessions are designed to review environmental management systems and at the same time introduce energy management systems in accordance with ISO 50001 requirements. The training sessions consist of management strategies, associated regulatory compliance, and actual practice at dealer working areas.

Honda Motorcycle & Scooter India (Private) Ltd. (HMSI) continuously strives to promote environmentally responsible practices to its dealers in India. As part of its Green Dealer program, HMSI provided a training course consisting of an introduction to the Green Dealer program, a review of Green Dealer activities, the effectiveness of being a green dealer, as well as the process of evaluation and certification. The training was given to 353 of the 650 Honda motorcycle dealers in 2012. To be qualified as a green dealer, HMSI took several measures to evaluate its dealers, requiring numerous items including the installation of an effluent treatment plant (ETP) for wastewater treatment, the installation of exhaust fans and a chimney to enhance air circulation in working areas, the improvement of compressor and generator areas with proper soundproofing, waste collection and segregation, and the promotion of green dealer activities. After the evaluation, HMSI presents a Green Dealer certification to the dealer. By the end of 2012, a total of 50 dealers met these green dealer requirements and achieved certification.

Reducing CO2 Emissions and Resource Consumption

Motorcycle Dealer Initiatives I m p l e m e n t e d i n 2 0 0 7 , A . P. H o n d a C o. , L t d . (APH), in collaboration with the Pollution Control Department in Thailand, engaged Honda motorcycle dealers to participate in the Green Dealer program. This program was developed by the Ministry of Natural Resources and Environment to promote environmentally responsible dealerships. The repair and maintenance services conducted at dealer sites causes environmental impacts. In response to government policy, APH cooperated and encouraged its motorcycle distribution centers nationwide to recognize the importance of sustainable environment management in accordance with the Honda commitment to minimize its environmental footprint throughout all business activities. As a part of the Green Dealer program, the wide-ranging environmental efforts – conserving natural resources, reducing air and water pollution, saving energy and sorting waste – were implemented at dealerships. Starting in 2007, 70 Honda motorcycle dealers were certified as green dealers as evaluated by the Pollution Control Department. APH pursues a strategy of having all dealers earn green dealer certification. As of 2012, a total of 427 dealers have already been awarded this status.

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As part of the Green Dealer program, multiple initiatives were recognized in the reduction of CO2 emissions, as follows: D3 Motors, a Honda car dealer in Korea, installed LED Honda signage and LED lighting in the showroom and office areas. The dealer introduced energy-efficient LED lighting in order to reduce energy consumption and CO2 emissions. Through this initiative, Honda Korea (HKO) awarded a Green Dealer certification to D3 Motors. HKO anticipated promoting this effort to other dealers as a part of the Green Dealer program.

• D3 Motors in Korea switched the outside signage to LED

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Sales and Service

Honda car dealers throughout Indonesia are striving to achieve Green Dealer status. Dealers are taking measures to reduce their environmental footprint and engaging in their business sustainability. Multiple efforts are recognized as a part of the Green Dealer program that included conserving water resources, reducing electricity consumption in a daily basis. By taking these measures, dealers can reduce CO2 emissions by optimizing electricity usage to enhance energy efficiency in their operation. Additionally, energy conservation and water signs were posted at a light switch and a water faucet to promote conservation program and to encourage theirs staff to save electricity and water consumption. In parallel with its Green Dealer program, HMSI initiated an energy consumption monitoring system at its certified dealerships. In this regard, HMSI also provided energy consumption guidelines, reporting the use of electricity and fuels, including diesel, LPG, kerosene and gasoline. A total of 11 certified dealers voluntarily participated in the monitoring report. HMSI is continuing to extend this initiative to other dealers.

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Reducing the Use of Substances of Concern As a part of its Green Dealer program, P.T. Honda Prospect Motor (HPM) continued to advocate for all dealers to improve their operations to be environmentally responsible businesses. In 2011, HPM introduced the use of water-based paint for vehicle body repair work performed at Honda car dealers. Additionally, this approach can reduce Volatile Organic Compounds (VOCs), providing a healthier working environment for associates as well as giving vehicles a high-quality finish. A total of 45 dealers in Indonesia provides vehicle body repair and paint services. Currently, 40 dealers use water-based paint in their facility. By the end of 2013, HPM anticipates the complete phase-out of solvent-based paint at all dealers equipped with a paint facility. Presently, all Honda car dealers in Thailand and Taiwan have accomplished the phase out of solvent-based paint.

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Sales and Service

Special Topics – “Taking Another Step Forward with Energy Management Initiatives” Since the completion of green and clean dealer activities organized by Honda Automobile (Thailand) Co.,Ltd. (HATC), all Honda car dealers in Thailand achieved “Gold” certification, attaining certification requirements in all categories – earning ISO 14001, introducing water-based paint, and conducting social environmental contributions to their community. HATC has worked continuously to expand its effort to improve energy-efficiency at its dealerships. In parallel with ISO 14001 implementation, HATC has provided training session to dealers, refreshing ISO 14001 and also introducing energy management systems. Strategies for reducing energy consumption are recommended to dealers during the session. HATC aims to deliver the training to all dealers by the end of 11th mid-term. In 2012, 25 dealers had obtained the training and were qualified to achieve ISO 50001 certification.

Bangkhen Honda Car, a Honda car dealer in Bangkok, Thailand, is the first Honda dealer in the region to earn ISO 50001 certification. The dealer has independently implemented various energy-efficiency initiatives in its daily operation in order to reduce energy consumption – installing sensor-activated lighting, installing individual meters to monitor energy usage in air-conditioning system, and installing a timer-controlled lighting system that supplies electricity during working hours only. After receiving the training, Bangkhen Honda Car is striving to become third-party certified for its energy management system. An audit was conducted by EQA Evaluation (Thailand) Co., Ltd., a third-party evaluator. Through the dealers’ effort, the ISO 50001 certification was issued to Bangkhen Honda Car in January 2013. HATC will continue to encourage more dealers to adopt this effort to reduce the environmental impact of dealer operations.

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Product Recycling

Product Recycling (Reduce, Reuse, Recycle) Major initiatives in product recycling (3Rs)

Development

Feedback to development Disposal

Reuse

Recycle Use

3R pre-assessment system

The Material Cycle

Production

Use

Disposal

Design for reduction

Reduce Development

Production

Design for reusability, recyclability

Recycled/reused parts Byproduct recycling (see note)

IMA battery recycling

Bumper recycling

Reduction of environmental impact substances

Compliance with the ELV Recycling Law Voluntary motorcycle recycling

Voluntary Initiatives to recycled motorcycles In the Asia & Oceania region, Honda was proactive in implementing reuse and recycling efforts for products and service parts at the end of their useful life, with the aim of increasing the quantity of recycled and remanufactured parts and materials. These efforts included service parts recovered by Honda dealers during service repair.

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With the aim of maximizing the use of resources, reducing waste and maintaining a high level of product quality in the motorcycle market, A.P. Honda Co., Ltd. (APH) initiated a program to purchase used Honda motorcycles in thedomestic market and to remarket the units by repairing and recycling useable parts and also by repainting bodies. The motorcycles were sold under warranty as certified used products. APH also shared its rebuilding know-how with sales companies, who themselves are establishing similar systems to procure, rebuild and sell used motorcycles. APH has continuously conducted this project since 1998

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Product Recycling

Initiatives to comply with the ELV Recycling Law Honda Taiwan (HTW) has participated in the voluntary End-of-Life Vehicle (ELV) program organized by the Taiwan Transportation Vehicle Manufacturers Association (TTVMA) since 2007. The recoverable components of vehicles, their re-use method, and the material recycling process, including treatment of hazardous substances, are considered in both the product design and manufacturing of Honda products, which have reached a more-than-80% level of recyclability and 85% level of energy recoverability. In addition, guidelines for the proper dismantling of products are provided to dismantlers through the TTVMA. As required by the recycling regulation for vehicles in Korea, Honda Korea (HKO) has provided data concerning its conformity with hazardous material control and recyclability control requirements through authority website of the electrical and electronic equipment and vehicle ECO-Assurance system-called (EcoAS).

Environmental Community Activities In 2012 A.P. Honda Co., Ltd. (APH) launched a used motorcycle tire collection program as part of its environmental community activities. The used tires are collected and have been reused to build a barrage (sea wall) to protect against shoreline erosion. In a partnership with Honda Motorcycle Logistics (Thailand) Co., Ltd., APH setup truck routes to collect the used tires from its dealers. Since the program’s inception, in April 2012, more than 7,500 used tires have been collected and supplied to municipal communities in the Thakham District, Chachoengsao Province in Thailand. Apart from this program, in May 2012 APH associates volunteered at a community event to build a seawall made with used tires.

• APH collected used tires and suppiled to municipal communities

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• APH hold a community event to build a seawall made with used motorcycle tires

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Administration

Administration Honda is focused on environmental conservation measures in the management of its office facilities. These measures are designed to help lead customers, suppliers and associates to strengthen their own environmental conservation measures. In addition, to minimize the environmental footprint of administrative activities, Honda is implementing environmental management systems, such as reducing waste and improving energy efficiency.

Energy Conservation Honda Korea Co., Ltd. launched an energy conservation program to promote energy saving in the office area. The program was created to reduce energy consumption and CO2 emissions. A variety of activities includes turning lights off at lunch time, shutting off personal computers during lunch and after work, and extending the period for wearing smart casual attire from three months (July-August) to four (July-September). Honda Leasing Thailand Co., Ltd. (HLTC) has endeavored to reduce fuel consumption and CO2 emissions associated with its operations. HLTC recently deployed 21 natural gas-powered Honda City CNG to replace gasoline-powered company cars. By using compressed natural gas (CNG), this implementation can help HLTC to emit less CO2 and improve the efficient operation of its transportation. Moreover, HLTC is also striving to increase the number of CNG-powered vehicles.

Waste Reduction Striving to increase the level of waste separation in recycling initiatives, A.P. Honda Co., Ltd. (APH) launched a campaign to collect beverage containers. This campaign is carried out with the aim to raise associates awareness and promote carton recycling. In partnership with private recycling companies, Thai BCG and Fiber Pattana, carton containers are collected in individual waste bins and sent to recycling plants. Throughout FY2013, APH delivered 48.6 kilogram of carton boxes to Fiber Pattana.

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Honda R&D Initiatives

Honda R&D Initiatives Energy Conservation Honda R&D Asia Pacific Co., Ltd. (HRAP) continually seeks out means of improving energy efficiency and reducing the environmental footprint of its administrative operations. Last year, HRAP became the first R&D center in the region to earn ISO 14001 certification. In efforts to increase its commitment and contribution to environmental conservation, HRAP established an Energy Conservation Committee to promote energy saving in accordance with Thai government regulation. HRAP submitted a report of annual energy usage to the Ministry of Energy in Thailand. Various initiatives that HRAP implemented to reduce energy consumption within its facilities included installing a cooling pad for air conditioners, setting timers to shut-off air conditioners, replacing fluorescent lighting from T8 lamps with more energy-efficient T5 lamps, and turning off lights during lunch breaks. HRAP achieved energy savings of 164 Mwh, reducing energy consumption by approximately 7% compared to the previous fiscal year. Energy Conservation Committee Internal Auditor

Energy conservation Committee

(Komson) Lead auditor

Personnel responsible for energy

Sahaphol

Tavitod

Regulation

Palangkorn

Pornthip

Kanaphot (Chair man)

Committee -Chair man -PRE -Representative

-Coordinate between committee Team -Create energy saving program -Energy record -Summary energy report

Auditor -At lease two persons -Independent from committee

Admin B1,2

Admin B0,3,6,utility

Anyapa

Paisit

-Energy assessment -Document -Support activities for energy conservation

- Energy assessment -Representative of common area (PR all information) -Support activities for energy conservation

Sekkei B5,B23 Suriya

Korakot

- Energy assessment -Representative of sekkei -(PR all information) -Support activities for energy conservation

Qualification: 1.Must pass training auditor from ministry 2.Experience in auditor 3.Good knowledge in energy conservation regulation

Material B7

Test vehicle B8

Siriporn

Pongpat

- Energy assessment -Representative of Material (PR all information) -Support activities for energy conservation

-Create audit schedule -Create audit check list -Audit job and document of committee to comply with regulation

- Energy assessment -Representative of test vehicle test (PR all information) -Support activities for energy conservation

Styling Design B9

Tullaya

- Energy assessment -Representative of Styling -(PR all information) -Support activities for energy conservation

• Set up committee

• Implement energy saving project • Pre Assessment

• Set Policy

• PR energy conservation • Evaluate energy

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Waste Reduction In addition to ISO 14001 implementation, HRAP become a leader in the implementation of an effective waste treatment system. HRAP maximized its capability for in-house waste separation, recently achieving 100% in solid waste sorting. HRAP also increased the use of its treated wastewater as water for landscaping irrigation, with more than 90% of the treated wastewater having been recycled, resulting in a reduction of potable water use of approximately 2,000 cubic meters per month. During the past year, Honda R&D South East Asia Co., Ltd. (HRST) achieved almost zero waste water discharged from its facility. HRST used the treated wastewater to irrigate plants on its premises.

• Treated wastewater recycling for landscaping irrigation at HRAP

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ic op al hr nt s n t e i ve ila nm iat Ph viro Init En

Philanthropic Environmental Initiatives

Philanthropic Environmental Initiatives River Clean Up Honda Taiwan Co., Ltd. (HTW) continually organizes water resource conservation initiatives. In partnership with the Department of Environmental Protection Bureau of the city of Taipei, HTW associates and volunteers from the Southeast University of Science and Technology and Soochow University joined in this event, on September 8, 2012, at Taipei’s Wai Shuang Xi riverside. Moreover, HTW augmented the number of volunteers to more than a thousand, with Honda customers and associates from Honda dealers. The activities include water quality testing and analysis, collecting garbage and waste, and identifying aquatic microorganisms in the rivers. HTW conducts this project at multiple locations to raise public awareness concerning water resource conservation. In this year’s effort, 23 rivers were selected nationwide.

Tree Planting For the fourth consecutive year as part of the “TreeFund” program, in cooperation with the Auckland Regional Council, Honda New Zealand Limited (HNZ) held its annual Tree Planting Day at Duder Regional Park, located on Auckland’s south eastern coast. Forty participants, including HNZ associates and customers, worked together to plant 2,000 native trees. During this activity, a mix of native species, including kanuka and manuka (tea tree), cabbage tree and flax, were planted on a steep hillside to prevent erosion and to reestablish bush coverage. In August, in partnership with Hawke’s Bay Regional Council, HNZ also planted 700 new native trees in Pakowhai Country Park. Founded in 2004, the Honda “TreeFund” is a program that funds the planting of 13 native trees for every new car sold in New Zealand. This program has resulted in the planting of almost 500,000 native trees. Passionate about restoring biodiversity, HNZ developed the “TreeFund” as an opportunity for customers to become engaged in the greening of their local communities and to encourage the planting of native flora. Honda Korea (HKO) engaged in Baekdudaegan ecosystem preservation activities to raise public environmental awareness in the Baekdudaegan mountain range. The Baekdudaegan chain of mountains, which runs most of the length of the Korean Peninsula, is one of the greatest natural resources and sources of biodiversity in the region and serves as home to various endangered wildlife. HKO conducted an environmental monitoring event titled “Baekdudaegan Preservation Together with Honda Korea” on May 17-18, 2012. HKO aimed to investigate the geographical features and vegetation, and the causes and effects of forest deterioration in the target areas. Furthermore, HKO donated money to the climate change protection funds and also has continually participated in numerous environmental activities, including collaboration with “Forest for Life – an environmental group”, to promote a LOVE GREEN campaign called “Little move for the Earth” Honda Philippines, Inc. (HPI) engaged in numerous green initiatives with the aim of achieving its commitment to the Honda environmental slogan to leave “Blue Skies for Our Children.” HPI believes that these initiatives will benefit all people, especially future generations. In this regard, HPI conducted a tree planting and seed harvesting activity on Earth Day, April 22, 2012. HPI’s president and general manager joined other HPI’s associates participating in this event. A total of 50 seedlings and 15 acacia knife seeds were planted. In addition, 36 associates planted a total of 75 Indian trees in celebrating the month of World Environment.

• River clean up by Honda Taiwan Co., Ltd. (HTW)

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Honda Cars India Limited (HCIL) contributed to various environmental conservation activities within its facility. On the occasion of World Environment Day on June 5, 2012, HCIL conducted a tree planting program named “CO2 sink & enhance asethetic beauty.” All HCIL associates participated in the program, planting 1,425 trees on company property. HCIL aims to conduct this program anually in order to promote associate awareness and action in the area of environmental conservation. In parallel with the tree planting program, HCIL created several environmentally themed competitions including a poster and slogan competition, and an energy, waste and water saving idea contest. The winners from each competition received awards and congratulations from HCIL senior manager Prerna Diwas.

Environmental Education The Honda School Environment Project was initiated by Honda Group companies in Thailand (Honda) in cooperation with ten state agencies: the Foundation of the Sirindhorn International Environment Park; the Office of the Royal Development Projects Board (RDPB); the Office of the Basic Education Commission; Ministries of Education, Natural Resources and Environment; Energy; Agriculture and Cooperatives; and Interior; the Thailand Environmental Institute; and King Mongkut’s University of Technology, Thonburi. Founded in 1991, the project was designed for primary and secondary schools in Thailand to support energy efficiency and environmental management initiatives in accordance with the “Follow the King’s Path” approach. Honda encourages participating schools to leverage His Majesty the King’s energy and environmental protection concepts, including water, waste and energy management, in a holistic, tangible and sustainable manner to meet Honda environmental standards.

• Tree planting “CO2 sink & enhance asethetic beauty.” program at Honda Cars India Limited (HCIL)


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Honda Green Camp Honda Automobile (Thailand) Ltd. continued its environmental commitment under the Honda School Environment project by organizing the “Honda Green Camp” to promote knowledge about the management of the integrated environmental learning process for 49 schools nationwide, comprising 31 primary schools and 18 secondary schools, presenting them with funding for further enhancing their potential to be model schools in honor of His Majesty the King. The Honda Green Camp is designed to enhance the environmental experience among the camp members via a wide range of informative and entertaining activities. Participants apply the knowledge they acquire to develop ideal environmental management solutions that address other areas of environmental impact in a systematic manner to benefit their schools. Highlights of the camp activity include the exploration of sea turtle conservation, beach detector, My Area, Hooks & Ladders game (a fun lesson that boosts sustainable development) along with construction of a habitat for marine life, and water management.

After the camp, all participating schools will develop their own initiatives for in-school environmental protection that are in accordance with the defined environmental standards, after which they submit their entries to the judging committee. The qualified schools that meet the environmental standards will be announced in December 2013. After that, the project committee will hold field trips to select the winning schools, which are the recipients of two grand prizes of His Majesty the King’s Cups - one for the primary school level and one for the secondary level. Follow the forthcoming initiatives of the project at www.hondagreenschool.com.

The three-day Honda Green Camp took place at the Air and Coastal Defense Command, Sattahip Naval Base, the Royal Thai Navy, in Chon Buri, to provide experience sharing among schools. The schools are each encouraged to select and share with others only the best of their own environmental initiatives that promote sustainable development. There were also activities to enhance knowledge about the management of the environmental learning process in the camp. One of the highlights in the Honda Green Camp is the conservation and rehabilitation of aquatic resources. One project provides teachers and school children with the opportunity to build a house for fish and marine life to help conserve the area and restore the ecosystem. The houses are made from local materials such as coconut leaves that are tied to pontoons for buoyancy. The houses are anchored to the sea floor using sand bags so that they form a column with one end at the bottom of the sea and the other end floating on the surface. These structures then serve as a tool to conserve fish and other types of marine life. Teachers and students are joined by Naval personnel to deploy the houses that they make together. The volunteers exchange the knowledge they gained in order to extend the environmental activities to be developed in their schools later.

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• Honda Green Camp at Sattahip Naval Base Chonburi, Thailand

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Environmental Annual Report Production Staff

Company Overview

Products

Company name:

Asian Honda Motor Co., Ltd.

Head office:

14 Sarasin Building, Surasak Road, Silom, Bangrak, Bangkok 10500 Thailand

Established:

October 12, 1964

Yutaka Sanada, Tatsuaki Itai, Jiratit Manklasiri Akihiro Aizawa, Kenta Yamaji, Pattama Thienlikit

President & CEO:

Hiroshi Kobayashi

Capital:

442.7 Million Baht

Tomio Toyama, Sakawduen Getsuwan Hisayoshi Ueno, Pongkun Thantananukorn

Number of Associates: Consolidated: 443 (as of March 2013)

Automobiles: Motorcycles: Power Products: Purchasing Automobiles: Motorcycles and Power Products: Production Automobiles: Motorcycles and Power Products: Customer Services Spear Parts Logistics and Warehouse: Sales and Services:

Masayuki Kobayashi, Kyozo Futa Koichi Sugioka Kotaro Hagiwara

Toshihito Tezuka Takamasa Fujisaki, Piya Pongkanjana, Kanchana Parinyapornkun

Administration Non-manufacturing and sales office: Sachimi Takata Philanthropic and CSR office: Rachnida Sangthongtong, Trithipnipa Suwannakrue R&D

Automobiles: Motorcycles and Power Products:

Legal and Intellectual Property Certificate and Product Regulations

Masahito Kamada, Komson Keawchai, Sahaphol Suthum Kazuhiko Shibui, Shuji Yamazawa, Rerkaroon Sa-nguanwong Katsutoshi Yamazaki, Pongpitch Yangyuen Shinya Azuma, Phongsak Dilokphatthrawut, Nat Martchaipoom

Public Relations

Hideto Maehara, Suchada Tongtharn

Business:

Import/Export company

Please direct inquiries to: Asian Honda Motor Co., Ltd. Presidential Office – Environment and Safety Planning Tel.: 66-2236-0256 Fax: 66-2635-1041 Asian Honda Motor Website: www.asianhonda.com This report can be found on the Honda Worldwide Website: www.world.honda.com/environment/report/ All rights reserved. All trademarks, trade names and logos referenced herein belong to their respective companies. The text, images and graphics contained herein are either owned by Asian Honda Motor Co., Ltd., or used under license. No part of this report may be reproduced without the written permission of Asian Honda Motor Co., Ltd. Although descriptions in this report are believed to be correct, complete accuracy cannot be guaranteed. ©2013 Asian Honda Motor Co., Ltd.

Production company Thang Sa-duak (Thai) Co., Ltd. www.tsdthai.com

Publisher Presidential Office – Environment and Safety Planning

Director Isao Ito

Editor Minoru Makuta Arisara Thongsri

Asian Honda Motor Co., Ltd. 14 Sarasin Bldg., Surasak Rd., Silom, Bangrak, Bangkok 10500, Thailand Tel. : 66-2236-0256 2013.08

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