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INDEX

Honda ENVIRONMENTAL ANNUAL REPORT 2014

Japan

J01 INDEX
J02 About the Honda Environmental Annual Report (Japan Report)

Top Message
J03 Message from the Japan Environmental Committee Chairman Setting a shining example for the world to follow

Special
J04 Honda Green Conference 2013

Direction I NDEX J06

J07 Tackling Environmental Issues in Japan


Assessment of environmental issues and current recognition of their importance / Assessment of risks and opportunities relating
to environmental issues / Honda Environmental Performance Standards (HEPS) / FY2012‒FY2014: Mid-term plans for
operations-related environmental initiatives / FY2015‒FY2017: New mid-term plans for environmental initiatives

Products I NDEX J11

J12 Next-Generation Technology J15 Motorcycles


Testing the MC-β micro EV on public roads Dunk 50-cc scooter / Pursuing quieter operation / Environmental data in Japan
Testing next-generation personal mobility
solutions
Development and testing of the fuel cell
J16 Automobiles
electric vehicle New VTEC Turbo / N-WGN and N-WGN Custom / Environmental data in Japan

J18 Power Products


HSL2511: snow blower with FI technology

Management I NDEX J19

J20 Environmental management in Japan


Environmental management organization / Environmental auditing / Environmental compliance and pollution prevention /
Environmental education / Environmental accounting

J25 Environmental Impact in Japan

J26 The Eight Domains of Honda Business Activities

J27 Product Development J44 Sales and Service


Discussion / Environmental initiatives Discussion / Environmental initiatives

J30 Purchasing J48 Product Recycling (3Rs)


Discussion / Environmental initiatives Discussion / Environmental initiatives

J34 Production J53 Administration


Discussion / Environmental initiatives Discussion / Environmental initiatives

J40 Transportation J57 IT


Discussion / Environmental initiatives Discussion / Environmental initiatives

J60 Philanthropic Environmental Initiatives


Beach clean-up efforts / Watershed conservation / Environmental education / Cleanup campaigns / HondaWoods

J63 Facilities in Japan that disclose environmental data


J64 Promoting environmental communication
J65 GRI Guideline Index
J67 Publication data: Editorial concept, Design concept / Domain coordinators / Environmental Annual Report production staff /
About the Honda global environmental slogan and symbol / Contact information

Reporting period: Fiscal year (FY) 2014 (April 1, 2013 - March 31, 2014). Note: The report also refers to activities in FY2015, as well as to previous ongoing initiatives. Publication of last year's report:
June, 2013. Organizational scope: This report covers the entire Honda Group, including Honda Motor Co., Ltd. and its 127 consolidated subsidiaries and affiliates (95 consolidated subsidiaries, 32
equity-method affiliates). All reported data covers the entire Honda Group unless otherwise noted. Detailed information about the main companies covered by this report can be found in the
financial statements issued in June 2014. (The number of companies covered in this report changed throughout the course of fiscal 2014 due to company mergers and other developments.) This
report features detailed information on environmental initiatives in Japan by major consolidated group companies (listed below), with a special focus on initiatives by Honda Motor Co., Ltd. /
Honda R&D Co., Ltd. / Honda Engineering Co., Ltd. / Honda Access Corporation Guideline used: G3 Guidelines, Global Reporting Initiative / G4 Guidelines, Global Reporting Initiative /
Environmental Reporting Guidelines (2012), Ministry of the Environment, Japan
Note: Guidelines and methods used to calculate specific categories of data are noted individually in the report.
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Direction Products Management 8 domains Honda ENVIRONMENTAL ANNUAL REPORT 2014

Japan INDEX >

About the Honda Environmental Annual Report (Japan Report)

Honda conducts business in North America, South America, Europe, Asia & Oceania, China, and Japan. For report-
ing on the environmental activities across our global organization, we've broken down our annual environmental
report into one global report and six regional reports.
Japan Report conveys our stance on environmental issues in Japan, our vision for a better future, and the results of
efforts to make our products and business activities more environmentally responsible.

Environmental Annual Report and Other Honda Environmental Annual Report


Environmental Disclosure Channels
Honda recognized early on that finding and implementing solu-
tions to environmental problems was one of the highest priorities 環境年次

for its business. We published our first Honda Environmental


レポート

Annual Report in 1998, informing the public on our environmen-


tal initiatives every year ever since. This year's report is the 17th
edition.
Global Report (PDF) Japan Report (PDF) website
Product-related content is focused on individual products and
The Honda Environmental Annual Report is intended mainly for our
technologies that were announced or released during the report- shareholders and other investors. By disclosing environmental information
in a transparent manner, we aim to fulfill our corporate social responsibili-
ing year. Business activities are reported from a life-cycle perspec-
ty and build trust and a positive reputation among more stakeholders.
tive, with emphasis given to yearly results and progress made
toward meeting environmental targets in each domain of our Environmental Documentary―Honda Face

operations. Environmental Documentary—Honda


Face is an online magazine for a more
Environmental Documentary―Honda Face presents our environ-
general audience, introducing Honda's
mental initiatives in a style and format that is easy for the general environmental initiatives, with a spotlight
on the passionate associates who work
public to understand. For updates, please visit the Environment behind the scenes.
section of the Honda Worldwide website:
Japanese http://www.honda.co.jp/environment/ Japanese http://www.honda.co.jp/environment/face/
English http://world.honda.com/environment/ English http://world.honda.com/environment/face/

Honda Corporate Reporting Map http://www.honda.co.jp/csr/library/ (in Japanese)

Financial Information
Honda's myriad efforts to be a company society wants
to exist are reported in five major categories: Investor
Relations, Corporate Social Responsibility, Safety, ●Investor Relations online
●Annual reports (PDF)
Philanthropy, and Environment. By engaging our
●Report on corporate
stakeholders in clear, active communication, we hope Financial governance (PDF)
information for ●Financial results/forecasts (PDF)
to increase their understanding and appreciation of
shareholders and
who we are and what we do. A s always , we look investors
forward to hearing from you about how we can be a
better company.
●CSR online
●Honda CSR report (PDF)

Major social
responsibility
initiatives

Environment Safety
Efforts to improve
Environmental product safety
policies, through R&D and
performance, and education
future targets Philanthropy
Our philosophy
and endeavors in
●Safety online
community
engagement ●Report on driving safety
promotion activities
(print/PDF)

●Philanthropy online
Non-Financial Information

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Direction Products Management 8 domains Honda ENVIRONMENTAL ANNUAL REPORT 2014

Japan INDEX >

Top Message Message from the Japan Environmental Committee Chairman

Setting a shining example for the world to follow

A look back at the last three years


The Japan Environmental Committee's agenda for the three-year mid-term ending in fiscal 2014 was to become an
environmental frontrunner by practicing forward-looking environmental management. By sharing concrete objec-
tives across all domains and divisions of Japan Operations and taking effective action together, we met all of our
numerical targets for reducing environmental impacts 1 during this mid-term.
One key initiative during this period was the launch of the Yorii Automobile Plant, a state-of-the-art eco-conscious
production facility that cuts per-unit CO 2 emissions 30% compared to conventional plants. 2 For products, we
launched the N series of mini-vehicles, the Accord Hybrid series, and the Fit series, all fitted with Earth Dreams
Technology 3 powertrains, as well as motorcycle and power product models boasting high environmental perfor-
mance. While this past mid-term was characterized by some immense challenges, including the 2011 earthquake
and tsunami, our ability to hit our mid-term environmental targets and also meet customers' growing preference
for environmentally sustainable products was a major stride forward in becoming an environmental frontrunner.

Japan as Honda's global leader of environmental management


As the first step toward global operational reform in our new mid-term, we launched a new headquarters for Japan
Operations in April 2014. This reorganization helped to more clearly delineate the respective roles of our global
and domestic businesses and put us in a position to accelerate operations and boost competitiveness. Our mission
from here is to execute operations that are ideal for Japan while remaining at the forefront of innovation and
leading other regional operations worldwide. We want to create the conditions that will allow Japan to provide the
first answers and set precedents for addressing a wide variety of environmental challenges. We also need to step up
efforts to reduce impacts in all product life-cycle stages. Fulfilling these responsibilities in environmental manage-
ment, among other fields, will help maximize Honda's overall strength and lead to a more valuable global brand.
We will continue to take on new challenges, gaining in knowledge and experience that will fuel our leadership
within global Honda. This aspiration will drive our environmental management forward one step at a time, until
Japan, the birthplace of Honda, is a shining example of the company society wants Honda to be.

Sho Minekawa
Honda Japan Environmental Committee Chairman

1. See pages J08 to J10 for more information.


2. Relative to Saitama Factory's Sayama Automobile Plant
3. "Earth Dreams Technology" represents next-generation powertrain technologies that greatly enhance both driving performance
and fuel economy, building on advancements in environmental performance to pursue the joy of driving unique to Honda.
  

Photo: Yorii Automobile Plant rooftop, Saitama Factory


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Direction Products Management 8 domains Honda ENVIRONMENTAL ANNUAL REPORT 2014

Japan INDEX >


Special

Honda Green Conference 2013

The Honda Green Conference is Honda's triennial event for sharing, awarding, and disseminating the greatest achievements
in environmental stewardship across all domains of Honda Group operations. At Honda Green Conference 2013, eight
environmental initiatives from seven domains1 were presented.

● Conference background ● Honda Green Conference: the great sharing event

To reduce its ecological footprint, Honda sets and pursues Honda Green Confer-

targets in each domain of its operations, a broad range of e n c e 2013 w a s h e l d

activities that includes product development, production, on December 4, 2013,

and transportation. at Twin Ring Motegi

The Honda Green Conference was launched in 1999 to speedway's Hotel Twin

share and spread these initiatives with the rest of the Ring in Tochigi, Japan.

Honda Group. Annual The event drew more

conferences are held than 200 people work-

in each domain, with Leafel, Honda's environmental mascot, ing in environmental


welcomes attendees
t h e m o s t s u cce s s f u l fields at Honda subsid-

projects chosen for iaries as well as at af-

presenting at a group- filiated companies and


Annual production domain conference wide conference every suppliers across Japan.
(September 23, 2013)
three years. Some of As the size of this event

the presentations also are given by Honda affiliated com- suggests, the confer-

panies and suppliers. The Honda Green Conference is thus ence is widely recog-

a grand culmination of environmental initiatives planned nized across Honda's

for each mid-term, held with the purpose of sharing the value chain as a place
The audience listens to a presentation
most successful initiatives across all domains. to gather ideas for driv-
ing environmental improvements in a variety of workplaces.

1. Honda operations were categorized into a total of seven domains until fiscal 2014: Product Development, Purchasing, Production, Transportation, Sales
and Service, Product Recycling (3Rs), and Administration. This changed to eight domains with the addition of IT from fiscal 2015 onward.

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Direction Products Management 8 domains Honda ENVIRONMENTAL ANNUAL REPORT 2014

Japan
Special Honda Green Conference 2013 INDEX >

● Eight projects from seven domains presented the new methods adopted for its gear machining processes.
E i g h t p r o j e c t s we r e c h o -
sen from Honda's seven ● Projects awarded at individual domain conferences also displayed
operational domains to be In a conference hall separate
presented at the 2013 con- from the auditorium, 27
ference. Unlike the domain award-winning projects from
conferences, where present- the domain conferences were
With a limit of 10 minutes, presenters
ers and the audience work in displayed on panels. Project
find clever ways to say more with less
similar fields, most people leaders provided explanations
in the audience at the group conference have a different of their activities between the
President Ito listens attentively to a
background. Before the presentations, a manager provides project explanation main presentations and the
an overview of each domain, including the results of recent award ceremony.
initiatives and future goals. From there, the presenters
share their projects, taking care to explain them in a way ● Honda Green Conference going global
that people without expert knowledge on the topic can un- Honda has decided to move
derstand. These considerations coincide with the mission of its next Honda Green Con-
the conference, which is to disseminate best practices to as ference to the global stage.
many other workplaces as possible. Exemplary environmental
The eight projects ranged widely in content, from the de- initiatives will be gathered
sign and construction of a major facility, to smart behavior- from across the world to
al changes that yielded significant improvements without share and disseminate them
Coordinators from each country attended
costing a yen. Such breadth ensured that the conference the 2013 conference in preparation for to promote environmental
the global conference planned for 2016
was useful for various workplaces across Japan, thereby fa- conservation on a global
cilitating the spread and adoption of similar projects. scale.

● Best Presentation Award


During the award ceremony, all eight projects were recog-
nized for their achievements.
In his summary evaluation,
The day after the conference,
P r e s i d e n t Ta k a n o b u I t o
stressed the importance of participants enjoy eco-tours at Hello Woods
working for environmental A wa l k t h ro u g h t h e fo re s t a n d va r i o u s o t h e r
progress "not only for prod- nature-based activities reawakened in conference
ucts but in manufacturing
The presenters joined President Ito for participants their love of all living things and an
a group photo processes and day-to-day op-
awareness of their responsibility to protect them.
erations."
At t e n d e e s a l s o c a s t t h e i r
votes for the Best Presenta-
tion Award. In FY2014, this
award went to the Hamamat-
su Factory, which used video,
diagrams, and other media
Hamamatsu Factory's Kazumi Oda to offer a clear description of
won the Best Presentation Award

Initiatives presented at Honda Green Conference 2013


■ Award for Climate Innovation ■ Award for Energy Innovation
Product development: Automobile R&D Center (Tochigi), Honda R&D Co., Ltd. Purchasing: Ueta Plant, Musashi Seimitsu Industry Co., Ltd.
Complying with regulations requiring introduction of a new low-impact Developing effective strategies for reducing electricity use from real-time monitoring data
automotive coolant and development of a coolant collection and refill device
■ Award for Energy Innovation
■ Award for Climate Innovation Production: Casting Module 2, Engine Plant, Suzuka Factory
Transportation: Honda Logistics Service Co., Ltd. Cutting CO2 emissions by preheating the mold
Reducing CO2 emissions from motorcycle transportation in Japan
■ Award for Resource Innovation Best Presentation Award
■ Award for Energy Innovation Production: Engineering Group, Gear Machining Department, Hamamatsu
Administration: Twin Ring Motegi, Mobilityland Corporation Factory
Reducing fixed energy use and the environmental impact of big race events Environmental improvements to chamfering and shaving machines

■ Award for Energy Innovation ■ Award for Resource Innovation


Sales and service: Honda Body Service Okayama Co., Ltd. Product recycling (3Rs): Spare Parts Supply Division, Customer Service
Optimizing electricity use: flattening the power demand curve through Operations, Honda Motor Co., Ltd.
demand monitoring Thorough recycling of hybrid car batteries

*To learn more about these presentations, see Environmental Topics (in Japanese) (http://www.honda.co.jp/environment/topics/topics25.html).
*Names of companies and organizations are as of the date the conference was held.

J05
Honda ENVIRONMENTAL ANNUAL REPORT 2014

JapanINDEX >

Direction
Honda drives improvements in environmental performance in Japan
based on a global strategy for reducing environmental impacts and
in accordance with local environmental laws and issues.

J07 Tackling Environmental Issues in Japan


  
J07 Assessment of environmental issues and current recognition of their importance

  
J07 Assessment of risks and opportunities relating to environmental issues

  
J08 Honda Environmental Performance Standards (HEPS)

  
J08 FY2012‒FY2014: Mid-term plans for operations-related environmental initiatives

  
J10 FY2015‒FY2017: New mid-term plans for environmental initiatives

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Direction Products Management 8 domains Honda ENVIRONMENTAL ANNUAL REPORT 2014

Japan INDEX >

Tackling Environmental Issues in Japan


We objectively assess current environmental issues in Japan, analyze the risks and opportunities they present for
our business activities, and take steps to respond. To fulfill our role of leading Honda's global operations, we are ad-
vancing environmental initiatives both through our business activities and in product development with the aim of
ultimately becoming a company with zero environmental impact.

Assessment of environmental issues and current recognition of their importance

● Environmental issues in Japan responsibility as a product developer and manufacturer.


To guide our efforts to realize the Honda Environmental 〈 Air, water, and soil pollution 〉
and Safety Vision, we evaluated environmental issues and Air, water, and soil safety also is increasing in Japan as a re-
identified those that are most important to us, first from a sult of the many laws that have been enacted in these areas.
global perspective. Our analysis found climate change issue We will continue to treat emissions in accordance with local
and energy issue to be the greatest environmental chal- laws, while also striving to fulfill our social responsibility to
lenges we face, followed by Resource issue (see page G20 minimize pollution.
of the Global Report for more information).
Honda's general assessment of environmental issues in Japan
Additionally, by examining the physical and market charac-
teristics of Japan, we identified the following environmental Climate change issue
Biodiversity Energy issue
issues as unique to this region.
Substances of
Stakeholder concerns concern

〈 Substances of concern 〉
Resource issue
Waste
The broadening scope of PRTR1-listed substances is one sign
Soil pollution,
of heightening stakeholder concern about the dangers of Noise/
Air and water quality
Vibration
chemical substances. Since many Honda's R&D centers are lo-
cated in Japan, the management and reduction or elimination
of chemical substances strongly impact business activities in
this region, especially when considered in the context of our Impact on Honda business activities

Assessment of risks and opportunities relating to environmental issues

● Risks and opportunities relating to climate change issue tion). The risk from these sources is great in Japan, given
and energy issue the many laws and regulations here that govern corporate
Having identified climate change issue and energy issue activity. We are advancing management of our operations
as our greatest challenges, we then set priorities for re- to respond adequately to this risk.
sponding to them based on full recognition of the risks and In response to the Energy Conservation Act, for example,
opportunities they represent for our business. We identified all domains are working together to reduce energy use and
three sources of risk and opportunity requiring special at- smooth out their energy demand profiles, while reporting on
tention: changing consumer values, energy diversification, these efforts to the public once a year through this environ-
and tightening regulation of product-related GHG emis- mental report. Meanwhile, each business site reports on its
sions (see page G20 of the Global Report for more informa- response to GHG regulations issued by local governments.

Specific examples of risks and opportunities identified in Japan


Changing consumer values
Incentives to switch to
products that use next-gen-
(emphasis on environmental Regulations Targeting Greenhouse Gas Emissions2
performance)
eration energy Energy Conservation Act
Energy diversification
(e.g., electric/hybrid vehicles, Applies to:
(e.g., deployment of smart-
Perceived opportunities

solar power)
community technologies) • Energy used for business activities in Japan
Tighter regulation of GHG • Energy used by businesses that ship cargo in large volumes
emissions from products Act on Promotion of Global Warming Countermeasures
Applies to:
Tighter regulation
of GHG emissions • Greenhouse gas emissions from business activities in Japan
Direct operational risks from operations Saitama Prefectural Ordinance to Promote Global Warming
from rising sea levels and
Countermeasures
extreme weather events Increasing reporting Applies to:
requirements for GHG
emissions
• Greenhouse gas emissions from all business sites in Saitama
prefecture

Perceived risks

1. A PRTR (Pollutant Release and Transfer Register) is a national or regional database of information on the environmental release and off-site transfer
of potentially hazardous chemical substances from industrial and other facilities.
2. Major laws and regulations that apply to Honda
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Japan
Tackling Environmental Issues in Japan INDEX >

Honda Environmental Performance Standards (HEPS)

Examples of HEPS-compliant models in Japan in FY2014

Hi Efficient Products Innovative Products Revolutionary Products

Compliant
products Accord PHEV
N-WGN Dunk
Fit EV
(examples)
Includes products devel- HSL2511 Graspa HRE330
oped in 2010 or earlier snow blower electric lawnmower
Vezel Zoomer-X Grom with FI

●Tackling environmental issues through products  Number of HEPS-compliant models in Japan


■ Hi Efficient Products ■ Innovative Products ■ Revolutionary Products 
We established the Honda Environmental Performance
Motorcycles Automobiles Power products
Standard (HEPS) in fiscal 2012 as a guide to achieving zero Models Models Models
35 35 35
CO2 emissions, and are making steady progress in fulfilling 30 27 30 30 27 28 28
25
this standard for all products. 25
20
25 21 25
20 20 17 19 20
Nine models―seven motorcycles and two automobiles―re- 15 14 15 15 15
10
10 10 10
leased in fiscal 2014 earned HEPS certification. This brings 5 5 5

the number of HEPS-compliant products to 27 motorcycles, 0


2011 2012 2013 2014 (FY)
0
2011 2012 2013 2014 (FY)
0
2011 2012 2013 2014 (FY)

21 automobiles, and 28 power products, for a total of 76 *The FY2011 figure was determined by applying HEPS to products re-
leased before the standards were adopted.
models.
*See the Honda website for other HEPS-compliant models.

FY2012–FY2014: Mid-term plans for operations-related environmental initiatives

●Tackling environmental issues through operations ●Results of initiatives in the FY2012-FY2014 Mid-term
Honda renews its business and sales-related plans every Fiscal 2014 was the final year of the mid-term that began in
three years, a period designated as one mid-term, and ex- fiscal 2012, wrapping up plans for environmental initiatives
ecutes concrete initiatives to achieve the targets for the set at the start of the term.
period. We take the same approach with our environmental In Japan, we worked toward specific numerical targets out-
activities in Japan, setting new plans and actions to reduce lined in the plans. Because of concrete actions taken to re-
impacts from our business activities at the start of every duce environmental impacts in all domains, we succeeded
mid-term. in meeting or exceeding all of these targets.

●FY2012–FY2014: Targets and results of operations-related initiatives

Milestones on the road to 2020 Targets and results

Honda Motor Co. and major group companies1: Reduce CO2 emissions per unit of
Target
revenue by 5% by FY2014 (baseline: FY2001)

Result Target achieved Reduced CO2 emissions per unit of revenue by 5%

Measures taken to achieve target ■CO2 emissions from operations


Strengthen (per unit of revenue)
(%)
・Installed state-of-the-art environmental technology at the Yorii Automobile
Climate initiatives that Plant, which started operations in 2013 100
100 95
change and span entire ・Monitored energy use for each process and revised production systems for 80 91 94 95
energy product life higher efficiency FY2014
achieved

60 target
・Expanded Honda Green Action (power conservation, cool-biz, warm-biz) to
Target

cycles (5% reduction)


the entire group 40
・Installed high-efficiency devices (LED lighting, compressors, HVAC sys- 20
tems, IPM motors)
0
・Promoted measurement of GHG gas emissions from suppliers in a broader

2001 2011 2012 2013 2014 (FY)※


range of activities covering product life cycles (baseline)
・Installed solar power generation systems at operating sites

1. Honda R&D Co., Ltd., Honda Engineering Co., Ltd., and Honda Access Corporation

J08

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Direction Products Management 8 domains Honda ENVIRONMENTAL ANNUAL REPORT 2014

Japan
Tackling Environmental Issues in Japan INDEX >

●FY2012–FY2014: Targets and results of operations-related initiatives

Milestones on the road to 2020 Targets and results

Transportation (as a high-volume shipper): Reduce CO2 emissions per ton kilometer of
Target
cargo shipped by 10% by FY2014 (baseline: FY2007)

Result Target achieved Reduced CO2 emissions per ton kilometer of cargo shipped by 25%

Strengthen Measures taken to achieve target ■CO2 emissions from transportation


(%) ((per
(%)ton-kilometer)
Climate initiatives that ・Collaborated with suppliers to improve parts logistics efficiency at
100 100 100
change and span entire 100 91 95 94 95
80 the Yorii Automobile Plant 80
energy product life 2013年度
86 82
79 FY2014

achieved
60 ・Increased transportation efficiency by implementing modal shifts 60 75
target

Target
cycles 目標値

achieved
40 ・Improved truck(5%低減)
fuel efficiency 40
(10% reduction)

Target
20 20

0 0



2000 2010 2011 2012 2013(年度) 2007 2011 2012 2013 2014 (FY)
(基準年) (baseline)

Milestones on the road to 2020 Targets and results

Honda Motor Co. and major group companies1: Reduce waste per unit of revenue by
Targets 5% by FY2014 (baseline: FY2001)
Maintain zero landfill waste performance at Honda Motor Co. and consolidated manufacturing subsidiaries2
(%) (%)
Target achieved100Reduced waste per unit of revenue by 11%
100
93 94 96 維持 97
Results 80Achieved
85 zero waste-to-landfill target at80
all consolidated
87 87 88 92 2015
business 年度
sites
Target achieved 82 目標値

achieved
60in Japan (127/127 companies) 60 (95%以上)

Target
achieved
Material
Ramp up 3R ■Waste from operations
Target
and water Measures taken to achieve target40 40■Landfill waste from operations
(%) (per unit of revenue)
(%)
resources efforts ・Increased use of stamping press scrap 20 metal 20
100 100
100
91 95 94 95 ・Reduced packaging by expanding applica-0 100
92 0
80 80 89 Achieved zero
FY2014 con-2010 2011 201284201386
tion of interior and exterior returnable2009 (年度)
FY2014
2009 2010 2011 2012 2013(年度)
waste-to-landfill
achieved

achieved
60 60
target tainers target target at all
Target

consolidated Target
(5% reduction) (5% reduction)
40 (%) (%) ・Developed process for extracting rare earth 40 (%) (%)
business sites in
20 100
(%) 100 metals from nickel-metal hydride batteries
(%) 20 100 100
Japan (127/127
100 100 91100 95
91 9495processed
・Properly 9594 95 nickel-metal 100
hydride
100 100
92 92
0 80 80
100 100 0 80 80
84
companies)
8684 86 89 89


2001 2011 2012 2013 2014 (FY) 6080 60 batteries through FY2014 FY2014
our own collection
80system 2001 2011 2012 2013 2014 (FY) 60 FY2014 FY2014
Target achieved

achieved

achieved

achieved
target target 60 target target
Target

Target

(baseline) 77 2013年度 (baseline)

Target

Target
74
60 68 68(5% reduction)
目標値 (5% reduction) 60 65 (5% reduction)
(5% reduction)
40 40 40 40
58
(5%低減)
50 2013年度
achieved

40 40
Milestones on the road 20
to 2020
20 Targets and
44results
目標値 20 20
achieved

20 20 (30%低減)
Target

0 0 (%) 0 0





02001 2011
20012012
2011
2013
20122014
2013(FY)
2014 (FY)※
Maintain at least a0 70% ASR3 recycling rate for end-of-life
100 2001 2011
automobiles 20012012
20112013
20122014
2013(FY)
2014 (FY)



Targets
(baseline)(baseline)
2000 2010 2011 2012 2013(年度) 2000 2010 2011 2012 2013(年度) 100 (baseline)
91 95 (baseline)
94 95
80
(基準年) (基準年)
Increase effective recycling rate for motorcycles to
60 95% by FY2016
FY2014
achieved

target
Target

(%) (%) (5% reduction)


40
100 Target achieved Increased ASR recycling rate for end-of-life automobiles to 96.0%
100
20
Results 93.3 94.2 96.0 Maintain 96.5 FY2016
80 85.0 80 86.5 86.9 87.7 92.3
81.6 Target achieved 0 fortarget
Increased effective recycling rate motorcycles to 96.5%


achieved

(at least 95%)


Material 60 60 2001 2011 2012 2013 2014 (FY)※
Target
achieved

Ramp up 3R Measures taken to achieve target ■ASR recycling rate


(baseline)
■Motorcycle recycling rate
Target

and water 40 (%) (%) 40 (%) (%)


efforts
resources ・20
Maintained effective recycling
100 100 20 100 100
93.3 94.2 94.2Maintain
93.396.0 96.0 Maintain 96.5 FY2016
96.5 FY2016
rates
0 for end-of-use products 80 80
81.6 85.0
0
81.6 85.0
80 80 86.9
86.5 86.992.3
86.5 87.7 87.7 92.3 target target
2010 2011 2012 2013 2014 (FY) 60 2010 2011 2012 2013 2014 (FY) 60
achieved

achieved

(at least 95%)


(at least 95%)
60 60
Target

Target
achieved

achieved
Target

Target

40 40 40 40

20 20 20 20
(%) (%)
100 100 0 0 0 0 (%)
100 100 2010 2011
20102012
2011
2013
20122014
2013(FY)
2014 (FY) 2010 2011
20102012
2011
2013
20122014
2013(FY)
2014 (FY)
100
80 80
93.3 9
74 77 FY2014 80 85.0
60 68 68 target 60 65 81.6
58 FY2014 60
achieved

(5% reduction)
40 Milestones on the road (%)to 2020(%) 40 50
44 (%) (%)
target
Targets and results
Target

40
achieved

20 100 100 20 100


(30% reduction) 100
Target

100 100 Honda Motor Co. 100 and major group companies: Reduce water
100 use per unit of revenue
0 Targets
80 80 80 80 20
0
byFY2014
5% by FY2014 (baseline: FY2001)


2001 2011 2012 2013 2014 (FY) 60 74 77742001 772011 FY2014


2012 2013 2014 (FY) 0
(baseline)
60 68
(baseline) 6868 target
68 target 60 60 65 65
58 58 2010 2011 2012 20
Result Target achieved40 Reduced water50
use 44
per
50 unit
FY2014ofFY2014
revenue by 32%
achieved

achieved

(5% reduction)
(5% reduction)
40 40 40 44
target target
Target

Target

achieved

achieved

20 20 20 20 (30% reduction)
(30% reduction)
Target

Target

Measures taken to achieve target ■Water used in operations(per unit of revenue)


0 0 0 0 (%) (%)
Material




Minimize 2001 2011 ・Used


2001 2012
2011recycled
2013
20122014 water
2013(FY) and rainwater
2014 (FY) 2001 2011 200120122011
2013
20122014
2013(FY)
2014 (FY)
100 100
and water (baseline)(baseline) (baseline)(baseline) 100 100
water use ・Promoted water conservation activities 80 80
resources
74 77 FY2014
60 68 68 target 60 65
58
achieved

(5% reduction)
40 40 5
Target

20 20

0 0


2001 2011 2012 2013 2014 (FY) 2001 2011 2012 20


(baseline) (baseline)

*Historical figures have been adjusted to reflect a change in the scope of data.

1. Honda R&D Co., Ltd., Honda Engineering Co., Ltd., and Honda Access Corporation
2. All consolidated business sites in Japan
3. ASR: Automobile Shredder Residue J09
(baseline) (baseline)

Direction Products Management 8 domains Honda ENVIRONMENTAL ANNUAL REPORT 2014

Japan
Tackling Environmental Issues in Japan INDEX >

(%) (%)
100 100
93.3 94.2 96.0 Maintain
●FY2012–FY2014: Targets and results of operations-related initiatives 80 85.0 80 86.5 86.9
81.6
60 60
Milestones on the road to 2020 Targets and results

achieved
Target
40 40
Reduce VOC emissions per unit of coated automobile body surface area by 30% by
Target 20 20
FY2014 (baseline: FY2001)
0 0
2010automobile
Reduced VOC emissions per unit of coated 2011 2012 2013 2014surface
body (FY) 2010 2011
Result Target achieved
area by 56%
■VOC emissions from production
Reduce VOC1 (per unit of coated automobile body surface area)
Environ- Measures taken to achieve target
(%) (%)
emissions 100 100
mental ・Adopted at the Yorii Automobile
100 Plant the 3-coat/2-bake wa- 100
from produc- 80 80
pollutants ter-based Honda Smart Ecological74Paint
tion processes 77 technology, which
FY2014
60 68 68 target 60 65
eliminates the middle coat from the standard 4-coat/3-bake
(5% reduction) au- 58 FY2014

achieved
40 40 50
44 target
to-body painting process

Target

achieved
20 20 (30% reduction)

Target
・Introduced low-VOC coatings to coating processes
0 0




2001 2011 2012 2013 2014 (FY) 2001 2011 2012 2013 2014 (FY)
(baseline) (baseline)

FY2015–FY2017: New mid-term plans for environmental initiatives

● Formulating plans for the next three years ing this by implementing the Green Purchasing Guidelines
For many years, Honda has recognized and made consistent we issued in 2011.
efforts to reduce the adverse impacts its business activities In the new mid-term plans that begin in fiscal 2015, we
have on the environment. once again set targets to reduce environmental impacts in
In 1997 we launched the Green Factory project, which be- all domains—targets that will bring us closer to our 2020
came integrated into our organization with the creation goals and, in the long run, to realizing the Honda Envi-
of the Green Factory Promotion Center in 2004 (now the ronmental and Safety Vision. These targets will drive us to
Green Factory Promotion Block), and expanded worldwide reduce the amount of CO2 emitted by our production activi-
through support from Japan to other plants for minimizing ties and by major group companies and, to demonstrate our
environmental pollutants. global leadership in Japan, to pursue environmental stew-
A key task going forward will be to ramp up environmental ardship in the use of resources and the release of waste and
management across our supply chain. We are currently do- emissions other than CO2.

FY2015–FY2017: New mid-term plans for operations-related initiatives


Milestones on the road to 2020 Initiatives planned

Honda Motor Co. and major group companies2: Reduce CO2 emissions per unit of revenue
by 7% by FY2017 (baseline: FY2001)
Climate Strengthen initiatives
change and that span entire product
Transportation: reduce CO2 emissions (as a high-volume shipper under the Energy Conservation Act)
energy life cycles
・Revise transportation routes and modes of transportation
・Improve transportation efficiency by picking up products from suppliers and switching to more efficient
routes

Honda Motor Co. and major group companies: Reduce waste per unit of revenue by 11% by
FY2017 (baseline: FY2001)
Ramp up 3R efforts
Material
Maintain zero landfill waste performance at Honda Motor Co. and consolidated manufacturing
and water
resources subsidiaries3

Honda Motor Co. and major group companies: Reduce water use per unit of revenue by 32% by
Minimize water use
FY2017 (baseline: 2001)

Reduce VOC emis-


Substances
sions from production Production: Reduce VOC emissions from product coating
of concern
processes

1. VOC (Volatile Organic Compounds): Organic chemical substances that cause photochemical smog and are common in paint and thinner solvents
2. Honda R&D Co., Ltd., Honda Engineering Co., Ltd., and Honda Access Corporation
3. All consolidated business sites in Japan
J10
Honda ENVIRONMENTAL ANNUAL REPORT 2014

Japan
INDEX >

Products
In Japan, its home country, Honda is developing and testing new technologies and
new forms of mobility that lead the world in environmental performance.

J12 Next-Generation Technology


  
J12 Testing the MC-β micro EV on public roads

  
J12 Testing next-generation personal mobility solutions

  
J14 Development and testing of the fuel cell electric vehicle

J15 Motorcycles
  
J15 Dunk 50-cc scooter

  
J15 Pursuing quieter operation

  
J15 Environmental data in Japan

J16 Automobiles
  
J16 New VTEC Turbo

  
J16 N-WGN and N-WGN Custom

  
J17 Environmental data in Japan

J18 Power Products


  
J18 HSL2511: snow blower with FI technology

Triple Zero symbols CO2 emission Waste


reduction/ reduction/
In this report, specific measures, activities, products, elimination elimination
and technologies that contribute to realization of the technology or 3R technology
Triple Zero concept are indicated with one or more of Energy risk
three Triple Zero symbols. reduction/
elimination
For more information about the Triple Zero concept, see page G22 of the Global Report. technology

J11
Direction Products Management 8 domains Honda ENVIRONMENTAL ANNUAL REPORT 2014

Japan INDEX >

Next-Generation Technology
Honda is testing emerging technologies in real-world settings across Japan to develop the next generation of mobility products.

Testing the MC-β micro EV on public roads in Kumamoto, Saitama, and Miyako-jima

Test scenes from Miyakojima City in Okinawa

● MC-β micro-sized short-distance commuter ● Real-world testing launched


In November 2013, we unveiled the MC-β (pronounced "em- MLIT has created a certification program for micro-sized
cee-beta"), a new micro-sized EV developed in consideration vehicles—a technology that could provide substantial CO2
of the L7 vehicle category1 in Europe and the new vehicle emissions reductions compared to ordinary passenger
category for micro-sized mobility products that is currently cars—as part of its deliberations toward establishing a new
being discussed under the initiative of the Ministry of Land, vehicle category. Making use of this program, we've begun
Infrastructure, Transport and Tourism (MLIT) in Japan. real-world testing of the MC-β in collaboration with Kuma-
Equipped with an electric motor with a rated output of 6 moto Prefecture, Saitama City, and Miyakojima City. The
kW and max output of 11 kW, the MC-β can move at a max tests are aimed at determining which applications and needs
speed above 70 km/h (43 mph). Its lithium-ion battery can are best fit to micro-sized vehicles when viewed as a means
be fully charged in less than three hours (200 V) and pro- to resolving issues related to community development and
vides MC-β with a cruising distance of more than 80 km (50 transportation.
miles). This mobility device is being developed primarily for
short-range applications such as commuting and shopping.

Testing next-generation personal mobility solutions since 2010


To realize our Environmental and Safety Vision—to realize the moto Prefecture, Saitama Prefecture, Saitama City, and other
joy and freedom of mobility and a sustainable society where government organizations. These tests have been aimed at
people can enjoy life—we believe it's essential to develop and identifying and overcoming barriers to the full-scale public
widely deploy infrastructure that makes organic connections adoption of plug-in hybrid and electric vehicles (PHEVs, EVs),
between electric personal mobility devices and alternative en- as well as exploring the potential of next-generation personal
ergy generation technologies. mobility systems in real-world traffic environments, including
As the first step to achieving this, in December 2010 we began their effectiveness in reducing CO2 emissions.
a set of demonstration projects in collaboration with Kuma-

Demonstration 2011 2012 2013 2014


test projects Step 1: Set routes, collect data Step 2: Fleet vehicle use, consumer education

1 EV Kumamoto 4 EVs Kumamoto ・Survey on consumer receptiveness to EVs/PHEVs ●


Kumamoto ・Educate consumers on electric vehicles
Aso Aso ・Car sharing program Final reporting
Pref. 2 PHEVs Amakusa 4 PHEVs Amakusa ・Tourism applications in Minamiaso

・Survey on consumer receptiveness to EVs/PHEVs


1 EV Kumagaya 4 EVs ・Educate consumers on electric vehicles ●
Saitama Kumagaya
Chichibu ・"Rail & ride" application in Chichibu Final reporting
Pref. Chichibu ・Development of cruising range support system
2 PHEVs Saitama 4 PHEVs ・"Park & ride" parking lot with solar-powered charging stations

・Survey on consumer receptiveness to EVs/PHEVs


1 EV ●
・Educate consumers on electric vehicles
Saitama City Saitama ・Owner-to-institution car sharing Final reporting
1 PHEV ・Unlimited mileage rental service

1. For EVs, maximum mass of 400 kg excluding the battery and maximum power output of 15 kW

J12
Direction Products Management 8 domains Honda ENVIRONMENTAL ANNUAL REPORT 2014

Japan
Next-Generation Technology INDEX >

● Development of cruising range support system


To help EV users get their mind off cruising range and battery
life in order to have a carefree drive, we investigated the poten-
tial of a system that calculates the amount of power needed to
reach a preset destination and notifies the user when there is
an insufficient supply, thereby preventing unexpected battery
depletion. We developed a system based on the route selected
in Internavi that uses various data such as outside temperature
and road gradient to precisely predict the amount of power
PHEV test vehicle ( Japan specs) based on the U.S. Accord
that will be consumed by air conditioning and driving. In
● Testing as government fleet vehicles Saitama Prefecture, we tested this system to compare estimat-
Considering that governmental organizations may be more ed versus actual power consumption from real driving.
receptive to EVs since they typically use their fleet vehicles
within a limited radius and can guarantee a charging space,
we loaned several EVs and PHEVs to Kumamoto Prefecture,
Saitama Prefecture, and Saitama City for use as government
vehicles. Based on vehicle usage data, we were able to verify
the receptiveness of these organizations toward EVs as well as
the frequency of EV use in a real-world environment based on
PHEV usage data.

EV test vehicle ( Japan specifications) based on the Fit EV


● Owner-to-institution car sharing
In this demonstration test program in Saitama City, individ- ● "Park & ride" parking lot with solar-powered charging stations
ual owners of EVs and PHEVs lent their commuter vehicles We installed solar-powered charging stations at the Kagoha-
to a company or government organization to use as fleet ra train station in Kumagaya, Saitama Prefecture, to test their
vehicles during work hours. The program was designed to potential as a distributed energy source as well as the suit-
verify whether the rental income and lower running costs ability of EVs and PHEVs in a park & ride system, a method
from such a car sharing program would allow owners to re- of relatively short-distance commuting in which commuters
coup the increase in initial cost of an EV or PHEV relative to park their cars at the closest station and transfer to public
a gasoline vehicle, and determine the cost benefits for both transport for the remainder of their commute. In 2013 we
parties. added power storage systems to these charging stations to
improve their power supply capability.
● Unlimited mileage rental service
In another test project combining EVs and a rental car service ● Tourism applications in Minamiaso
in Saitama City, participants were provided with an EV for daily In Minamiaso, Kumamoto Prefecture, we loaned zero-emis-
activities, and were allowed the option of using a gasoline rental sion, energy-efficient EVs to tourists for one day free of charge
vehicle when they wanted to drive more than the EV cruising to determine how receptive they were to using them to tour
range. The project was based on the hypothesis that the cruising the countryside. Tourists are allowed to use the vehicles at the
distance expected of EVs could be shortened, and was designed to Minamiaso Village Tourist Association free of charge and pro-
calculate the cruising range demanded from the EVs. vided a map of recommended routes for sightseeing.

● "Rail & ride" application in Chichibu ● Joint venture launched to promote charging infrastructure
In Chichibu, Saitama Prefecture, EVs and PHEVs were used as On May 26, 2014, Honda and three other Japanese au-

part of a "rail & ride" system where visitors who arrived by train tomakers jointly established a new company, Nippon
Charge Service, LLC, to promote the installation of char-
switched to an EV or PHEV, vehicles that provide the quiet, high-
gers for electric-powered vehicles (PHVs, PHEVs, EVs)
torque driving presumably suitable for Chichibu's many mountain
and to help build a charging network that offers more
roads. The test verified the suitability of EVs and PHEVs on hilly
convenience to drivers in Japan. In the current favorable
terrain, their value and user receptiveness in a rail & ride sightsee-
environment of government subsidies for charger in-
ing system, and environmental impact reduction benefits.
stallation, we are actively seeking installers through this
new company. By building a user-friendly infrastructure,
we will strive to maximize the potential of electric vehi-
cles and promote broader public adoption.

J13
Direction Products Management 8 domains Honda ENVIRONMENTAL ANNUAL REPORT 2014

Japan
Next-Generation Technology INDEX >

Development and testing of the FCX Clarity fuel cell electric vehicle

● Solar hydrogen station development delivered a FCX Clarity equipped with a max output 9-kW1
external power supply system that can power an ordinary
Japanese home for six days to Kitakyushu City, which is us-
ing it to supply electricity to Kitakyushu Eco-House at the
Kitakyushu Environment Museum. The vehicle is being test-
ed as a new way to even out the power demand curve and
reduce peak demand.

● FCX Clarity as a source of power to public facility


In February 2014, we also started testing the FCX Clarity as
an emergency power source for public facilities. The vehicle
FCX Clarity FCEV and solar hydrogen station installed at is supplying backup power to a 10-kW storage device at the
the Saitama Prefectural Office
Kitakyushu Museum of Natural History & Human History.
Viewing fuel cells as the ultimate clean-energy solution, we Also being tested are its practicality as a mobile electric gen-
have been proactively developing the fuel cell electric vehicle erator in emergencies, and its benefits as a vehicle-to-load
(FCEV) as part of our long-standing commitment to finding (V2L) power source for schools and other public facilities
alternatives to fossil fuels, reducing emissions, and minimizing that serve as evacuation centers during disasters.
impacts on the global climate.
In 2012, as part of a joint project with Saitama Prefecture on
next-generation electric personal mobility, we delivered a FCX
Clarity FCEV and installed a solar-powered hydrogen station FCX Clarity supplying power
to the Kitakyushu Museum
on the premises of the Prefectural Office to verify its ease-of- of Natural History & Human
use as a government fleet vehicle, as well as the role it can play History

in reducing CO2 emissions and moving Japan toward a low-car-


bon economy. ● FCX Clarity with external power supply capability delivered
to local governments
● FCX Clarity as a source of household power Since February 2014, we also have been delivering FCX Clar-
  ity models equipped with external power supply capabilities
to Saitama City, Kanagawa Prefecture, and Osaka Prefecture.
In addition to having the vehicles used as government fleet
vehicles, we also are collecting various data on the effec-
tiveness and ease-of-use of FCEVs as power generation and
supply systems through verification of their power supply
 
Opening ceremony of the FCX Clarity supplying power to capabilities in emergencies and through their use at public
demonstration project Kitakyushu Eco-House
events.
In April 2013, we started testing the FCX Clarity in a vehi- We plan to use these data to determine the best uses for
cle-to-home (V2H) power supply application in Kitakyushu, FCEVs and to advance research and development aimed at
Fukuoka Prefecture, as a collaborative demonstration proj- their mass production and commercialization.
ect in the city's Kitakyushu Smart Community Project. We

Volunteer testing of walking assist devices begun


A walking assist device
by itself (left) Leveraging our research in robotics—a pursuit exemplified by ASIMO, the
and worn (below)
world's most advanced humanoid robot—we are developing wearable walking
assist devices to help people enjoy the freedom and joy of walking on their own
two feet.
So far, we've conducted joint research with medical and research institutions
and private companies, and gathered feedback from doctors, researchers, and
others who recognize a certain effectiveness and suitability of these devices for
use in walking rehabilitation. In May 2013, we loaned 100 of these devices to
hospitals providing walking therapy to have them tested by volunteer patients.
We will gather input from health practitioners and use the findings to make
these products more effective and easier to use.

1. Honda internal measurement

J14
[g/(kW-h)] 495
Direction Products Management 8500domains Honda ENVIRONMENTAL ANNUAL REPORT 2014
415
400
Japan
300
汎用
INDEX >

Motorcycles 200

100
Honda raised the bar with the release of its first new 50-cc scooter in Japan in 12 years.
0
新型 iGX390 従来型 GX390

Setting
[g/(kW-h)]
a new standard with the release of the [g/(kW-h)]
new
11 Dunk 50-cc■scooter
GX/iGX390 ■ 現行GX390

495
500 10
415 ● eSP engine debuts in 50 cc-class model
400 9

HC+NOx
In February 2014, we released the Dunk, our first new 50 cc-
汎用
EPA PhaseⅢ
8
300 規制値
class scooter in 12 years.
7

エミッション↓
200 The Dunk is based on a "premium sneakers" concept that
6
100 seeks to provide riders with the joy of an elegant ride that
5
350 400 450 500 [g/(kW-h)]
0
also is easy to use. The model offers a new standard in scoot-
←低燃費
EPA モード燃費
新型 iGX390 従来型 GX390 Dunk, the first er riding that adds an extra level of fun to daily activities for
50 cc-class
Honda scooter a wide demographic, but especially for young adults.
(dB)
105
in 12 years
■ GX/iGX390 ■ 現行GX390
[g/(kW-h)]
11
To give it the power
102 and environmental
103 performance befitting

10
a new standard scooter, we equipped the Dunk with a newly
100

9
developed eSP engine featuring extensive low-friction technolo-
HC+NOx

8
EPA PhaseⅢ gies—a first for a 50 cc-class scooter. This resulted in impressive
規制値 95

7 fuel

efficiency performance of 56.4 km/liter (when tested using
エミッション↓

Newly developed eSP,


6 a water-cooled, the
0
Worldwide-harmonized Motorcycle Test Cycle),1 up 10%
four-stroke overhead 新型 HSM1390ik1
5 cam, single-cylinder
from existing bikes in the従来型 HSM1390i
equivalent class, while also boosting
350 400 450 500 [g/(kW-h)]
←低燃費
EPA モード燃費
50-cc engine output by 18% and torque by 11%, compared to bikes in the
same class.
(dB) グラスパ
105 53
Pursuing quieter
102 operation
103
同等クラス
ガソリン
● Noise 100
100 reduction technologies エンジン芝刈機

Motorcycles generate noise and vibration in many ways.


CO2 排出指数→
We have
95 worked to reduce noise by analyzing these sources Engine

using~state-of-the-art technologies. As a result, our products Exhaust

meet all applicable noise regulations in Japan.


0
新型 HSM1390ik1 従来型 HSM1390i

■ Sources of noise from a motorcycle and noise reduction


strategies by source

Engine
グラスパ
: Use more rigid materials
53

Exhaust
同等クラス: Increase volume, use multi-chamber structures
ガソリン
I n エンジン芝刈機
t a k e : Increase volume, use more rigid materials
100 for 140
outer casings (%)
Air intake
Transmission : Quiet drive chain, driveCO 2 排出指数→
sprocket damper
Transmission
O t h e r : Sound-dampening rubber 120
Other

100
二輪
Environmental data in Japan

0

2001 2010 2011 2012 2013 2014 (FY)


■ Average motorcycle fuel efficiency in Japan ■ Average HC and NOx emissions from motorcycles in Japan
(FY2001=100%) (FY2001=100%)
(%)
140 100
(%)

80

120 60

二輪
40
19.4
100
20



0

2001 2010 2011 2012 2013 2014 (FY)


0

2001 2010 2011 2012 2013 2014 (FY)


As of FY2011, all new models sold in Japan complied with the 2006 and
We’ve introduced numerous fuel-efficient models to meet our target of 2007 emission regulations,2 with average HC and NOx emissions from
reducing CO2 emissions by 30% by 2020 compared to FY2001. So far we’ve these vehicles dropping to less than 1/5 of FY2001 levels. This performance
(%)
achieved a 19% increase in average fuel efficiency over FY2001 levels. was maintained in FY2014 as well.
100

1. Fuel 80
efficiency value measured using the WMTC test cycle, an international standard stipulating the method for testing exhaust gas under conditions
that better reflect real-world vehicle driving patterns, such as startup, acceleration, and stopping.
エンジン熱効率の
2. 200660standards for type 1 scooters and mini-bikes, 2007 standards for type 2 scooters and small motorcycles
CVT
高い領域 J15
40 運転領域
トルク →

19.4
20
ク 特集
Direction Products Management 8 domains Honda ENVIRONMENTAL ANNUAL REPORT 2014

Japan INDEX >

Automobiles
We're developing world-leading environmental technologies and automobiles tailored to the needs of
customers in the markets they serve.

New VTEC Turbo line of turbocharged direct-injection engines

2.0-liter four-cylinder 1.5-liter four-cylinder


direct-injection gaso- direct-injection gaso-
line turbo engine line turbo engine

1.0-liter three-cylinder
direct-injection gaso-
line turbo engine

This engine makes the most of our proprietary VTEC system, a


high-output turbocharger, direct injection, and a high-performance This next-generation compact engine features a newly designed framework and VTEC
cooling system to realize high power output and high responsiveness. variable valve timing system with radically reduced friction, combined with direct-in-
It delivers a maximum power output of more than 205 kW and a high jection technology and a high-response turbocharger with a low moment of inertia.
environmental performance compliant with EURO 6 European emis- These technologies offer a superior combination of fuel economy and power output
sions regulations, which will become effective in September 2014. with high torque, exceeding conventional naturally aspirated engines.

● Class-leading power and environmental performance bocharger and highly fluidized combustion to reduce engine
Honda has developed VTEC Turbo, a new series of direct-injec- displacement. Rigorous friction reductions also contribute to
tion gasoline turbo engines in our Earth Dreams Technology 1
class-leading power and environmental performance. Sized in
series. three classes—2.0, 1.5, and 1.0 liters—the engines increasing-
These engines, adapted for compact and medium-sized cars, ly will be deployed worldwide, with each engine selected to
take advantage of our proprietary VTEC system and the in- match the vehicle it powers as well as local customer needs.
creased output provided by direct-injection, a high-output tur-

N-WGN and N-WGN Custom extend popularity of the N series

● Twin injection system


For the first time in a mini-vehicle, the N-WGN employs a
twin injection system, a system that uses two fuel injectors per
cylinder instead of one. This system mixes fuel and air more
evenly, resulting in improved drivability and fuel economy.

N-WGN

● Raising the bar on the "basic" mini-vehicle


In November 2013, we released the N-WGN and N-WGN Cus-
tom, the fourth installment in our popular N series of mini-ve-
Twin injection system atomizes fuel more completely and distributes the
hicles.
air-fuel mixture more evenly
The N-WGN, developed with the aim of setting a new standard
for the "basic" mini-vehicle, offers better comfort, safety, fuel ● Sodium-filled exhaust valves help suppress knocking
economy, design, and driving performance than ever before. A The N-WGN engine employs sodium-filled exhaust valves—for
comfortable interior and great features such as Vehicle Stabili- the first time in a Honda passenger vehicle. These valves dissi-
ty Assist (VSA), which helps prevent the loss of vehicle control, pate heat more efficient-
come standard on all types, while a newly developed engine ly than conventional
and CVT provide smooth, stress-free driving and high fuel valves, lowering the sur-
economy of 29.2 km/liter (JC08 test cycle).2 The adoption of rounding temperature
a lightweight yet rigid body and dedicated suspension system and suppressing engine
facilitate stable driving performance and quiet operation. knocking.

1. A next-generation powertrain series 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 the
joy of driving unique to Honda.
2. Testing of the N-WGN G, N-WGN G A Package, N-WGN Custom G, and N-WGN Custom G A Package (FWD vehicles) by the Japan's Ministry of Land,
Infrastructure, Transport and Tourism
J16
5
2011 2012 2013 2014 (FY) Reference value
(型式数)
■  971 ~ 1,080kg ■ 1,531 ~ 1,650kg 70
Vehicle weight class:
Direction ■ Products1,081 ~ 1,195kg ■Management
1,651 ~ 1,760kg 8 domains
(km/ℓ) Honda ENVIRONMENTAL ANNUAL REPORT 2014
■ 1,196 ~ 1,310kg ■ 1,761 ~ 1,870kg 60
30

Japan
54 53
■  741 ~ 855kg ■ 1,311 ~ 1,420kg ■ 1,871 ~ 1,990kg
50 8 7 28.54
■ 856 ~ 970kg ■ 1,421 ~ 1,530kg ■ 1,991 ~ 2,100kg 44
42 26.95 0
18 17 6
40 6 0
Automobiles 25 15 INDEX >
30 11 24.03 0
170
14 9 3 1
24.00 0
20 6 0
9 7 2 0
160 2 2
21.72 021.0
10 7 2 8 0 20.8
20 2 9 11 20.5
5 6 0
140 0
Environmental data in Japan
18.38 18.7
2008 2009 2010 201117.612012 (FY)

四輪
17.2
120 ■ 平成22年度燃費基準適合 ■ 平成22年度燃費基準+25%適合 15.8
15 ■ 平成22年度燃費基準+5%適合 ■ 平成27年度燃費基準適合
14.06 14.4
100
■ Overall ■ Eco-Assist ■ 平成22年度燃費基準+10%適合 ■ 平成27年度燃費基準+10%適合
13.66 13.2

~ ■ 平成22年度燃費基準+15%適合 13.49
■ 平成27年度燃費基準+20%適合
(%) 12.2
0 ~ 99.2 ■ 平成22年度燃費基準+20%適合 11.1
100
2001 2010 2011 2012
99.0 2013 2014 (FY) 10 10.2
97.2 97.3 98.3 9.4
80 8.44
Average automobile fuel efficiency1 in Japan (FY2001=100)
89.9 Average fuel efficiency of vehicles that comply
7.80 with
60
(型式数) 50.8 75.1 the FY2015 standards, classified by weight
170 5
70 2011 2012 2013 2014 (FY) Reference value
30.0 (km/ℓ)
40
60
160 23.1 30
54 53 ■  971 ~ 1,080kg ■ 1,531 ~ 1,650kg
8 Vehicle weight class: 28.54
50
20 7 44 ■ 1,081 ~ 1,195kg ■ 1,651 ~ 1,760kg
1.7
140 42 0 ■ 1,196 ~ 1,310kg ■ 1,761 ~ 1,870kg
26.95
18 17 6
40 6 0 ■  741 ~ 855kg ■ 1,311 ~ 1,420kg ■ 1,871 ~ 1,990kg

四輪
0 15 25
120
30 2010 2011 2012 11
2013 0
2014 (FY) ■ 856 ~ 970kg ■ 1,421 ~ 1,530kg ■ 1,991 ~ 2,100kg
24.03
14 9 3 1 0 24.00
20 6 0
100 9 7 2 0
~ 7 2 2 0 21.72 21.0
10
~ 2 8 0 20.8
2 9 11 20 20.5
0 5 6 0

0 ■NOx
■HC 2001 2010 2011 2012 2013 2014 (FY) (FY) 18.38 18.7
2008 2009 2010 2011 2012 17.61
(%) 100 17.2
1. Data since 2011
100 ■ 平成22年度燃費基準適合
based on JC08 test cycle, data up
■ 平成22年度燃費基準+25%適合
to 2010
15.8
based■on 10-15 test cycle.
平成22年度燃費基準+5%適合 ■ 平成27年度燃費基準適合 15

~ 14.06 14.4
(型式数)■ 平成22年度燃費基準+10%適合 ■ 平成27年度燃費基準+10%適合 13.66 13.2
30
70 ■ 平成22年度燃費基準+15%適合 ■ 平成27年度燃費基準+20%適合 13.49
12.2
■ 平成22年度燃費基準+20%適合 11.1
60 ■ 10
Overall ■ Eco-Assist
54 53 20.6 10.2
20 9.4
50 8 7 (%)
44 99.2
8.44
42 0 15.3 100 7.80
18 17 6
40 6 0 97.3 98.3 99.0
10 97.2
15
30 11 0 805 89.9
14 9 3 1 0 2011 2012 2013 2014 (FY) Reference value
(km/ℓ)
20
0 6 0
2 0 50.8 75.1

30 9 7 60
2001
7 2010 2011 2012
2 2013
2 2014
0 (FY) ■  971 ~ 1,080kg ■ 1,531 ~ 1,650kg
10 2 8 0 Vehicle weight class:
2 11 28.54
5 9 6 0 40 30.0■ 1,081 ~ 1,195kg ■ 1,651 ~ 1,760kg
0 26.95 23.1 ■ 1,196 ~ 1,310kg ■ 1,761 ~ 1,870kg
2008 2009 2010 2011 2012 (FY) ■  741 ~ 855kg ■ 1,311 ~ 1,420kg ■ 1,871 ~ 1,990kg
25 20
■ 856 ~ 970kg ■
24.03 1,421 ~ 1,530kg ■ 1,991 ~ 2,100kg
■ 平成22年度燃費基準適合 ■ 平成22年度燃費基準+25%適合 1.7
24.00
■ 平成22年度燃費基準+5%適合 ■ 平成27年度燃費基準適合
0
■ 平成22年度燃費基準+10%適合 ■ 平成27年度燃費基準+10%適合
21.72 21.0 2010 2011 2012 2013 2014 (FY)
■ 平成22年度燃費基準+15%適合 ■ 平成27年度燃費基準+20%適合
20.8
20
Sales■results for low-emission vehicles
平成22年度燃費基準+20%適合 20.5 HC and NOx emissions from Honda vehicles in Japan2
18.38 18.7
17.61 (FY2001=100)
17.2
■ ★★★Ultra-low emission vehicles (50% cleaner than required by regulation)
15.8
■ ★★★★Super-ultra-low emission vehicles (75% cleaner than required by regulation) ■ HC ■NOx
15
(Units) 14.06 14.4 (%) 100
13.66 1,814 13.2
800,000 13.49 100
(km/ℓ) 803,67212.2
11.1 ~
700,000
30 5,317
10 35,819 10.2 ■ Overall ■ Eco-Assist
673,805 9.4 30
600,000 16,431 11,784 28.54 (%)
594,059 8.44 99.2
500,000 542,747 549,394 7.80
26.95 100
99.0 20.6
20 97.2 97.3 98.3
25
400,000
5 24.03 80 89.9 15.3
300,0002011 2012 2013 2014 24.00
(FY) Reference value
10
60 50.8 75.1
200,000 21.72 21.0
■  971 ~ 1,080kg
■ 1,531 ~ 1,650kg
20.8
Vehicle weight class:
20
100,000
■ 1,651 ~ 1,760kg
■ 1,081 ~ 1,195kg 20.5
0
40 30.0

■ 1,196 ~ 1,310kg ■ 1,761 ~ 1,870kg


18.38 18.7 23.1
2001 2010 2011 2012 2013 2014 (FY)
■  741
0 ~ 855kg ■ 1,311 ~ 1,420kg ■ 1,871 ~ 1,990kg
17.61
17.2 20
■ 8562010
~ 970kg2011
■ 1,4212012
~ 1,530kg2013
■ 1,9912014 (FY)
~ 2,100kg
15.8 1.7
15 2. Excluding emissions from light and heavy-duty trucks.
14.06 14.4 0
In fiscal 2014, 95% of all Honda passenger
13.66 cars
13.2 2010 2011 2012 2013 2014 (FY)
13.49 In fiscal 2014, we reduced HC emissions by
sold, or 805,486 vehicles, met low-emission certi-
12.2
11.1
84.7% and NOx emissions by 79.4% from fiscal
fication
10 criteria. 10.2
9.4
8.44 2001 levels.
7.80 ■ HC ■NOx
(%) 100
■ ★★★Ultra-low emission vehicles (50% cleaner than required by regulation)
5 100
Percentage
2011 of vehicles
2012 with eco-driving
2013 2014 support systems
(FY) Reference value In addition to fuel economy meters that help driv-
■ ★★★★Super-ultra-low emission vehicles (75% cleaner than required by regulation)

(Units)
■ Overall ■ Eco-Assist ers apply fuel-efficient driving techniques 1,814
and other
■  971 ~ 1,080kg ■ 1,531 ~ 1,650kg 800,000
30
Vehicle weight class:
(%) ■ 1,081 ~ 1,195kg ■ 1,651
99.2~ 1,760kg eco-driving support systems, we have been803,672 installing
100 700,000 5,317
■ 1,196 ~ 1,310kg ■ 1,761 ~ 1,870kg 35,819Drive Assist (Eco Assist)3 system 20.6
■  74197.2
~ 855kg 97.3■ 98.3
1,311 99.0
~ 1,420kg ■ 1,871 ~ 1,990kg our 600,000
Ecological
20 673,805 in a
16,431 11,784
■ 856 ~ 970kg ■ 594,059
80 1,421 ~ 1,530kg ■ 1,991
89.9~ 2,100kg growing
500,000
number of vehicles.
542,747
This
549,394
system is designed
15.3

60 50.8 75.1 to effectively


10
400,000
help drivers improve their fuel efficien-
cy by providing real-time feedback on the impact to
300,000
40 30.0 0

23.1 fuel-efficiency
200,000 2001
of 2010
their driving techniques,
2011 2012 2013 while also
2014 (FY)
20 optimally
100,000
controlling HVAC and other systems.
1.7
In fiscal02014, eco-driving support systems were in-
0
2010 2011 2012 2013 2014 (FY) 2010 of Honda
stalled in 99.2% 2011 passenger
2012 2013 2014
cars sold in Japan,
(FY)

with 89.9% of vehicles featuring an Eco Assist system.


■ Overall ■ Eco-Assist
(%)
99.2
100
■HC ■NOx
3. The Eco Assist
97.2 system
97.3works 98.3
in multiple ways. In "Econ" mode, priority is given to fuel economy, and the vehicle automatically controls the engine,
99.0
(%) 100 ■ ★★★Ultra-low emission vehicles (50% cleaner the
than background
required by regulation)
motor,
80 CVT, and HVAC system to effectively improve fuel efficiency. It also includes a coaching function, which changes color of the
100 89.9 ■ ★★★★Super-ultra-low
speedometer according to acceleration and braking efficiency, and a teaching function that shows theemission
driver'svehicles (75% cleaner
eco-driving than required by regulation)
score.
~ 50.8 (Units)
60 75.1
1,814
30 800,000
803,672
40 30.0 700,000
23.1 5,317
20.6 35,819
20 600,000 673,805
20 16,431 11,784
594,059
1.7 15.3 542,747 549,394
500,000
10
0
2010 2011 2012 2013 2014 (FY)
400,000 J17
300,000
0

2001 2010 2011 2012 2013 2014 (FY) 200,000


Direction Products Management 8 domains Honda ENVIRONMENTAL ANNUAL REPORT 2014

Japan INDEX >

Power Products
Honda develops power equipment based on the philosophy that less stress on users also can mean less stress on the environment.

HSL2511: the world's first snow blower with FI technology

● World's first auger assist function


In November 2013, we released the HSL2511, the first snow
blower in the world1 to incorporate fuel injection (FI) tech-
nology.
This two-stage snow blower employs the Honda Smart Au-
ger System, which has three auger settings (auger assist,
auger lift, and auger reset) that make heavy snow-throw-
ing work simple and easy. The world-first2 auger assist
function,3 which can be turned on and off with the flip of
a switch, makes simple work of snow-clearing jobs that
require more advanced techniques, such as clearing high
banks of snow in a step-wise fashion. The model's new
four-stroke V-twin engine, which includes a Honda-orig-
inal electronic governor for regulating engine speed and
electronic fuel injection (a first in the world1 for a gasoline HSL2511 two-stage snow blower (front)

engine-powered snow blower), delivers high fuel economy


and exceptional ease of operation and starting.

● Simple operation, powerful results


The adoption of a Honda-exclusive STR Governor and
powerful new V-twin engine provide class-leading2 snow
clearing performance of 140 tons per hour. Two operating
modes provide different engine output characteristics de-
HSL2511 two-stage snow blower HSL2511 control panel
pending on the situation: Standard mode uses powerful
(back)
torque to achieve quick and easy snow removal, while Dis-
tance mode uses high speed, high output to throw snow
Engine torque comparison between Distance and Standard modes
higher and farther—in fact, as far as 26 meters, the farthest 18
in its class.2 The HSL2511 also includes a teaching function, 16
which features a speed guide monitor to help the operator 14
Engine torque (N·m)

12 Distance mode
adjust the driving speed and obtain the highest work effi-
10
ciency in each mode. Standard mode
8
At Honda, we develop snow blowers based on the philoso-
6
phy that easier, more efficient operation not only reduces Decreased engine speed from heavy load
4
stress for users but also reduces energy use through shorter 2
work times, thus shrinking our impact on the global envi- 0
1500 2000 2500 3000 3500 4000 4500
ronment.
engine speed(rpm)
*The engine is designed to provide much higher torque when
● Pursuing reliability, comfort, and ease of use the engine slows down, making operation easy
The inclusion of FI eliminates the need for choke operation,
providing smooth starts even in frigid temperatures, as well Can throw snow faster and farther
High

as high fuel economy. This also made the carburetor obso-


Electronic
lete, along with the associated need for altitude correction governor
and after-use maintenance.
Engine

Conventional
governor
● Environmental performance
A new GX690H V-twin engine (displacement 688 cm3) not
only delivers better practical fuel efficiency4 but also less
Low

noise5 and fewer emissions.


Low 3850rpm High
engine speed

1. For petrol engine snow blower (Honda internal data, as of July 31, 2013)
2. Honda internal data, as of July 31, 2013
3. J-type only
4. Approximately 15% better compared to the previous model in the same class, despite 20 cm3 larger engine displacement
5. When operated in Standard mode J18
Honda ENVIRONMENTAL ANNUAL REPORT 2014

JapanINDEX >

Management
To reduce environmental impacts across the life cycles of its products, Honda sets and
executes policies and targets in each of eight domains of its operations.

J20 Environmental Management in Japan


  
J20 Environmental management organization  

  
J21 Environmental auditing

  
J21 Environmental compliance and pollution prevention

  
J22 Environmental education

  
J24 Environmental accounting

J25 Environmental Impact in Japan

J26 The Eight Domains


  of Honda Business Activities

J27 Product Development


   
   Discussion : Executive Officer × Operating Manager × Associate / Environmental initiatives
J30 Purchasing
   
   Discussion : Executive Officer × Operating Manager × Associate / Environmental initiatives
J34 Production
   
   Discussion : Executive Officer × Operating Manager × Associate / Environmental initiatives

J40 Transportation
   
   Discussion : Executive Officer × Operating Manager × Associate / Environmental initiatives
J44 Sales and Service
   
   Discussion : Executive Officer × Operating Manager × Associate / Environmental initiatives
J48 Product Recycling (3Rs)
   
   Discussion : Executive Officer × Operating Manager × Associate / Environmental initiatives
J53 Administration
   
   Discussion : Executive Officer × Operating Manager × Associate / Environmental initiatives
J57 IT
   
   Discussion : Executive Officer × Operating Manager × Associate / Environmental initiatives

J60 Philanthropic Environmental Initiatives


  Beach
J60 clean-up efforts

  
J60 Watershed conservation

  
J60 Environmental education

  
J62 Cleanup campaigns

  
J62 HondaWoods

J19
Direction Products Management 8 domains Honda ENVIRONMENTAL ANNUAL REPORT 2014

Japan INDEX >

Environmental Management in Japan


Since launching the Japan Environmental Committee in 1991, Honda has been developing and expanding its
institutional framework to put into practice the environmental principles articulated in the Honda Environment
Statement. We also have strengthened our environmental auditing and pollution prevention systems, provided
associates with training, and practiced other principles of an environmentally responsible organization.

Environmental management organization

In December 1991, we established the Japan Environmental review progress in meeting targets set by each division. The
Committee to ensure that environmental initiatives in Ja- committee proposes measures to address cross-divisional
pan are executed to the highest standards and to maintain challenges and strives to maintain and achieve continuous
our leadership in the field. The committee holds meetings improvements in environmental performance in Japan.
in each division to promote environmental impact reduc- Each division sets its own targets based on the mid-term
tions, product and parts recycling, and other improvements plans for environmental initiatives decided by the commit-
at facilities used by each division, in transportation, and tee, and then follows the PDCA cycle to reduce environ-
at group companies. Executive officers and administrators mental impacts, including those at associated facilities and
from production, purchasing, sales, service and parts, ad- group companies, and improve environment-related proj-
ministration, and IT, as well as from Honda R&D, all take ects and measures.
part in committee activities. Since fiscal 2006, the committee has worked to bolster
The Japan Environmental Committee's role is to propose initiatives at financially consolidated group companies in
mid-term environmental policies and targets based on Japan.
analysis of social trends related to the environment and to

Organizational structure for implementing environmental initiatives in Japan


Facilities and companies covered

Production Divisions
Production sites
Environmental Administrators
Production Planning Division
Quality Assurance Division
Honda Engineering Co., Ltd
Green Factory Promotion Block Transportation group companies

Purchasing Divisions Parts-manufacturing group


Honda Green Network Meeting companies

Business sites of Honda R&D


Japan Co., Ltd.
R&D Divisions
Environmental
Environmental Committee R&D group companies
Committee

Honda Access Corporation


Sales Divisions
Honda Motorcycle Japan Co., Ltd.
Environmental Committee
Automobile, motorcycle,
Secretariat
power product dealers
Environmental Promotion Center Sales-related group companies
Environment &
Safety Planning
Office Parts distribution warehouses
Service and Parts Divisions
Service parts shipping
Environmental Committee

Headquarters/
Administration Divisions
other office facilities
Environmental Committee
Group companies

IT Divisions IT division of each business site

As of June 2014

J20
Direction Products Management 8 domains Honda ENVIRONMENTAL ANNUAL REPORT 2014

Japan
Environmental Management in Japan INDEX >

Environmental auditing

The following is a summary of environmental management We will continue to capitalize on management practices
activities in production, the part of our operations with a geared toward ongoing improvement, including applying
large environmental footprint relative to other operations. the PDCA cycle to legal compliance and environmental
Environmental initiatives at production facilities in Japan measures and coordinating environmental policies by oper-
follow mid-term plans created by the Environmental Ad- ating all production facilities under a single environmental
ministrators Committee and environmental management management system.
programs based on annual targets. The ISO 14001 man- This environmental management system also is subject to
agement systems used at our factories in Japan (Saitama, internal auditing, including auditing within individual fac-
Tochigi, Hamamatsu, Suzuka, and Kumamoto) received tories and reciprocal auditing between factories. External
certification in fiscal 1998 and were integrated into a single audits are carried out by certification bodies.
system in fiscal 2011. The system was expanded to include In fiscal 2014, we took immediate steps to remedy 11 issues
the Saitama Factory's engine plant, completed in fiscal identified by external audits. We also continued to expand
2012, and will soon include the Saitama Factory's Yorii our internal audit capabilities by training 132 additional
Automobile Plant, which started production in July 2013. internal audit staff. 

Environmental management structure Environmental Administrators


Independent certification body
at factories

Assesses implementation of the environmental management system


Integrated environmental
management system

Environmental Administrators Mid-term environmental plans and


Committee annual targets

Environmental promotion
administrators
ISO Secretariat

Factories Factories

Implementation Implementation
Reciprocal
audits
Internal audits, Internal audits,
improvement improvement
Assesses legal compliance and
progress toward meeting targets

Revision, improvement

Environmental compliance and pollution prevention

Product recalls
Emergency protocol 
When a product is discovered to have an unforeseen or po-
tential environmental impact, Honda takes appropriate and Emergency Off
Head of
or accident hours
timely market-based action, including product recalls, in facility
Site
Site
check
operation
check
accordance with related laws and regulations. There were no
Person who Safety &
Contact
environment-related product recalls in fiscal 2014. Environmental Report discovered Disaster
Prevention
problem Center
Emergency protocol Administrator
Contact

Each factory and division has clearly defined pollution Issue


Facility
Contact
instructions
Emergency
prevention and mitigation procedures in preparation Management
Division
contact tree

for potential accidents or emergencies that could cause Request action


Relevant
environmental pollution. Emergency drills and training Contact internal/
external
Contractor
events are held regularly in Japan to further increase organizations

emergency preparedness.

J21
Direction Products Management 8 domains Honda ENVIRONMENTAL ANNUAL REPORT 2014

Japan
Environmental Management in Japan INDEX >

Legal compliance Preventing air and water pollution


There were no violations of environmental laws or regula- Our efforts to prevent air and water pollution include regu-
tions in fiscal 2014. larly measuring and monitoring pollutant amounts in line
In management of daily operations, we received two com- with voluntary standards that are more stringent than regu-
plaints/requests related to noise at production sites. We have latory limits for plant effluent and exhaust gas from combus-
once again asked suppliers and other relevant parties to fully tion systems.
address these complaints/requests.
Other issues
Compliance with Japan's PCB Special Measures Law Our Green Factory initiative is one way we are maintaining mu-
In fiscal 2014, we disposed of 173 high-pressure capaci- tually supportive and trusting relationships with the communi-
tors containing PCBs in compliance with the PCB Special ties around our production facilities. Recent activities included
Measures Law. We will continue properly disposing of the more frequent soil and groundwater monitoring through the
remaining 588 units of transformers, capacitors, and other observation wells at factory sites.
devices containing PCB oil, annually reporting storage infor-
For details, please see
mation to the proper authorities, and managing devices to
http://www.honda.co.jp/environment/report/japan/data/
prevent leaks and accidents. (in Japanese)

Environmental education

● Providing systematic environmental education acquire basic knowledge about the natural environment,
Honda provides a systematic environmental education pro- the circumstances surrounding the mobility industry, and
gram for associates to ensure they understand the magni- Honda's environmental initiatives. For new associates who
tude of the mobility industry's environmental responsibility undergo hands-on training at factories following their initial
and to direct their attention toward ways they can help pro- training, factory managers brief associates on environmental
tect the environment in their individual duties. policies and initiatives unique to their workplace to foster an
We take a two-pronged approach to education: classroom understanding of the environmental requirements of manu-
training for new hires, associates who have been promoted, facturing processes. The same training is provided to mid-ca-
and associates working in hazardous environments; and reer workers. Associates also receive training whenever they
practical training to raise the environmental awareness of as- transfer to a different workplace.
sociates in their daily work. Learning is enhanced in an envi- New managers are given an understanding of the level of
ronment where all associates have access to comprehensive environmental awareness and knowledge that is expected of
information through our internal web portal and the Honda them and a review of the direction Honda is taking in its en-
website. vironmental programs. Regular classes and training sessions
also are held for associates who work in hazardous environ-
Classroom training Practical training ments and for internal environmental auditors.
Career

Training for managers Honda Green Action


Honda Green Conference

●Practical training
Eco-etiquette activities

Environmental e-learning

Awareness-raising tools

Training for internal Practical training is offered on a continual basis and is geared
environmental auditors
Training for associates who work toward raising environmental awareness with applications in
in hazardous environments
General training day-to-day operations and sharing environmental best prac-
tices that cannot be covered by classroom training alone.
Training for Training for
new hires mid-career   
workers
〈 Honda Green Action〉
・Eco-etiquette activities 
Information
Internal web portal  Honda website To implement environmental initiatives effectively, our associ-
ates need to be sensitive to environmental issues and act within
their power to effect change. In 2009, Honda Motor Co., Ltd.
● Classroom training launched an initiative to spur individual action, called Honda
All of our business sites, subsidiaries, and affiliated com- Green Action, and expanded the initiative to the rest of the Hon-
panies plan and implement environmental educational da Group in 2010.
programs based on their respective environmental manage-
ment systems. During their initial training, new associates

J22
Direction Products Management 8 domains Honda ENVIRONMENTAL ANNUAL REPORT 2014

Japan
Environmental Management in Japan INDEX >

・Environmental e-learning and waste sorting.


We supplement classroom education about our environ- Motivated by these tools, associates take individual action to
mental management systems with self-supervised train- reduce environmental impacts in their daily activities.
ing that includes the Honda Environmental Certification
e-learning program. The program features quiz-type tuto-
rials designed to deepen general knowledge about envi-
ronmental issues, global developments, and topics we are PC accessories (top)
"Save energy" sticker
addressing with the Honda Green Action initiative. This (bottom left)
training, which is open to associates of all positions and "Save water" sticker
(bottom right)
levels of expertise, is helping to raise environmental aware-
ness across the organization by being easily accessible via 〈 Honda Green Conference 〉
the company intranet and website. Honda Green Conferences have been held since 1999 to
The first two courses, released in fiscal 2013 and 2014, cov- share and disseminate best practices for reducing the envi-
er Honda's top-priority topics of climate change issue and ronmental impact of the Honda Group in Japan and to en-
energy issue. We plan to release a new course every year to courage such practices to take root throughout the organi-
continue promoting environmental activities and raising zation. Each business domain holds an annual conference
the environmental awareness of all associates. and the Honda Group holds a general conference every
three years to highlight and share outstanding initiatives.
The Honda Green Conference 2013 held in December high-
lighted eight initiatives selected from the annual conferences
conducted between fiscal years 2012 and 2014. (Read more
about Honda Green Conference 2013 on page J04.)

Honda Environmental Certification Honda Environmental Certification


Exam: Climate change issue Exam: Energy issue

・Awareness-raising tools
In Honda Green Action, various tools are created to bring
associates' attention to the many things they can do on their
own to protect the environment.
During Environment Month held every year in June, Hon-
da distributes awareness posters and stickers promoting
energy conservation. In fiscal 2013, computer accessories
and a screen saver urging associates to save energy and not
to overcharge their laptops also were distributed. Sticker
Honda Green Conference 2013 held at Hotel Twin Ring on December 4, 2013
themes also were expanded to include water conservation

Leafel takes the stage, online and in real life


Leafel, Honda's environmental mascot, is doing everything it can to Leafel's Forest
http://www.honda.co.jp/leafel/
help a wider audience understand Honda's environmental initiatives. (in Japanese)

Leafel's dedicated website, "Leafel's Forest" (in Japanese only), fea-


tures various content such as "Leafel's Story" and "Leafel's Secrets"
and also includes announcements on events in Japan where it plans
to make an appearance. Leafel also is the star on Honda e-PRESS,
Honda's official Facebook page for environmental topics.
Honda's official Facebook: Honda e-PRESS (in Japanese)
https://www.facebook.com/honda.epress

J23
■ 生産 ■ 非生産
(年度) (単位:万t-CO2換算)
Direction Products Management 8 domains 2009
Honda ENVIRONMENTAL
47 ANNUAL REPORT 2014

直接排出量 2010 48
Japan
Environmental Management in Japan INDEX >

2011 44

Environmental accounting
2009 92

In addition to tallying the costs associated with environmental activities indicators of our corporate value but are also used as a reference for mak-
間接排出量 2010 84
and investments, Honda also discloses information on the material, ing administrative decisions regarding environmental innovation. Going
economic, and customer benefits of these activities and investments, as forward, we will continue working to improve the accuracy of these data,
2011 84
well as the overall environmental efficiency of our business. These data, including those reported by consolidated subsidiaries and affiliated compa-
which are made available to our external stakeholders, not only serve as nies in Japan.
0 20 40 60 80 100

● Cost of environmental conservation activities and investments in fiscal 2014


FY2014 FY2013■ 生産 ■ 非生産
(年度) (単位:千㎥)
Investments Expenditures Investments Expenditures
Category Major activities and investments 2009
(million yen) (million yen) (million yen)
11,800
(million yen)

Pollution
prevention costs
● Air, water, and soil pollution prevention 使用量 1,177
2010 1,903 59 1,795
12,780
Business
Global environmental ● Global warming mitigation, ozone depletion prevention, and other   
area conservation costs   conservation activities 3,097
2011
515 2,226 557
11,940
costs
Recycling costs ● Waste processing, treatment, reduction, elimination, and recycling 2,279 1,280 254 1,102
2010 7,710
● Collection, recycling, resale, and proper disposal of products        
Upstream/downstream costs   manufactured and sold 排水量 4 45 527 528
● Industry organization and other membership fees
2011 7,870
● Installation, operation, and acquisition of certification for environmental
  management systems
0 3,000 6,000 9,000 12,000 15,000
● Environmental impact monitoring and measurement
Management costs ● Management and training of associates and organizations responsible for 43 2,424 35 5,579
  environmental conservation
  (expenses for environment-related communications activities)
■ 生産 ■ 非生産
Research and development ● Research, development, planning, and design for impact reductions  (年度)
  (単位:t)

costs
  across product life cycles 10,235
発生量 215,188 16,456 421,800186,513
  (R&D costs for advanced eco-cars, including EVs and PHVs)
2009 有価物 330,800
● Environmental improvement measures, including ecosystem protection, 社外直接埋立量 重量ベースで総発生量の0.01%以下
  cleanups, green space development, and natural landscape conservation
Local conservation costs ● Local conservation and communication activities 0 239 2 194
発生量 440,500
  (beach cleanups and watershed conservation activities)
2010 有価物 342,800
Environmental damage costs ● Remediation of polluted soil 0 4 0 4
社外直接埋立量 重量ベースで総発生量の0.01%以下

合計 16,835 221,597 19,559 196,272


発生量 453,200
・Companies covered: Honda Motor Co., Ltd., Honda R&D Co., Ltd., Honda Engineering Co., Ltd., and Honda
2011 有価物
Access Corporation ・Accounting period: April 1, 2013,
348,000
to March 31, 2014 ・Some figures are estimated values. ・Guidelines, guidebooks, and other environmental accounting publications by Japan's Ministry of the En-
vironment were used as references. ・Figures were calculated on a cash-flow basis with depreciation社外直接埋立量
and amortization expenses excluded.
重量ベースで総発生量の0.01%以下

0 100,000 200,000 300,000 400,000 500,000 600,000 700,000

● Material benefits 〈 Customer benefits 〉


In fiscal 2014, the higher average fuel efficiency of our products
FY2014 FY2013 Difference brought our automobile customers in Japan approximately 42.4
■ 生産
(年度)
billion yen in savings, resulting in a cumulative customer savings
(単位:t)
Energy use TJ 13,400 13,300 100
VOC 4,970
from fuel-efficiency gains of 256 billion yen since fiscal 2001.
Water use 1,000㎥ 4,990 4,790 200 2009
■ Method usedPRTR to calculate customer benefits 1,650
CO2 emissions t-CO2 709,200 656,800 52,400 Change in average fuel efficiency4 each fiscal year × average distance traveled5
× average gasoline price in each fiscal year6 × number of vehicles owned7
CO2 emissions from 4. Based on theVOC10 -15 test cycle 4,300
transportation t-CO2 65,200 64,400 800 5. Ave ra ge d i s t a n ce t rave l e d p e r ye a r a cco rd i n g t o t h e m o t o r ve h i c l e
2010
(as a high-volume shipper) transportation
PRTR statistics complied by Japan's
1,600 Ministry of Land, Infrastructure
and Transport (=10,000 km)
Total waste generated t 194,300 198,000 -3,700 6. Source: Oil Information Center, the Institute of Energy Economics, Japan
7. Cumulative total,
VOCtaking into account new vehicle sales and average 4,150vehicle history

ASR1 recycling rate % 96.0 94.2 2 2011


〈 Environmental
PRTR
efficiency 〉 1,350
VOC2 emissions t 2,580 2,660 -80 We use the following formula to define and measure the
environmental efficiency of our business activities and promote
PRTR3 emissions t 800 820 -20 0 1,000 2,000 3,000 4,000 5,000

continuous improvement in environmental management.


Environmental efficiency in fiscal 2014 was 45% higher than it
was in FY2001.
● Economic benefits
Environmental efficiency = Business size (net sales) ÷ Environmental impact (CO2 emissions)
〈Effect on revenue and expenses 〉
160
145
150 141
140
FY2014 FY2013 126
130 117 119
Income from sale of valuable waste materials 3.8 bil 2.4 bil 120
110 100

Installed technologies 0.1 bil 0.2 bil 100


Cost reductions 90
from saved
Behavioral changes, 80

energy
etc. 0.05 bil 0.1 bil 2000 2009 2010 2011 2012 2013 (FY)

Total 3.9 bil 2.7 bil

1. ASR: Automobile Shredder Residue


2. VOC (Volatile Organic Compounds): Organic chemical substances that cause photochemical (年度)
smog and are common in paint and thinner solvents
3. A PRTR (Pollutant Release and Transfer Register) is a national or regional database of information
2010 on 排水量
the environmental release and off-site transfer
7,710
of potentially hazardous chemical substances from industrial and other facilities.
J24
2011 排水量 7,870
Indirect energy 0 2,000 4,000 6,000 8,000
2012 7,120 2011 7,840
consumption Indirect energy
2013 7,270 2012 7,120
consumption
Direction
2014
Products Management
7,640
8 domains 2013
(FY)
■ Production ■
Honda ENVIRONMENTAL ANNUAL Non-production
REPORT
7,270 2014
(1,000 t-CO2e)

0 2,000 4,000 6,000 8,000

Direct energy
2010
2014
2011
0 2,000
470

480
4,000 6,000
Japan 7,640

INDEX >
8,000

Environmental Impact in Japan


2012 440
emissions
■ Production ■ Non-production
(FY) 2013 430
(1,000 t-CO2e)
■ Production ■ Non-production
2010 470 (FY)
2014 440 (1,000 t-CO2e)
Through our Green
2011 Factory initiative,
480we strive to make our production facilities in 2010
Japan the pride of the470
communities
Direct energy
in which
emissions
they2012
operate. We are working
440 to conserve energy, cut waste, and reduce environmental
2011
2010 impacts 480
in other areas 920
Direct energy
2013 430 2012
2011 440
as well by promoting green logistics, green dealers, and green offices. emissions
Indirect energy
840

2014 440 2013


2012 430 840
*Totals with more than three digits have been rounded to three significant digits. emissions
2014
2013 440 1,050

2010 920
2014 1,150
2011 840 2010 920
Indirect energy 0 200 400 600 800 1,000 1,200
2012 840 2011 840
■emissions
Energy consumption ■Indirect
Water energyuse, wastewater volume
2013 1,050
■ Production ■ Non-production emissions
2012 840 Non-production
■ Production ■
(FY) (TJ) (1,000 m3)
2014 (FY)
2013 1,050
2010 7,160 1,150
2010 11,800
2011 7,180 2014 1,150
0 200 400 600 800 1,000 1,200
Direct energy
2011 12,800
2012 7,110 0 200 400 600 800 1,000 1,200
consumption
■ Production ■ Non-production
Water use 2012 11,900
2013 6,950
(1,000 m3)
■ Production ■ Non-production 2013
(FY) ■ Production ■11,300
Non-production
(FY)
2014
2010
7,040 (TJ)
11,800 (1,000 m3)
2010 7,160 (FY)
2014 11,800
2011 12,800 2010 11,800
2011 7,180
2010 7,640 2011 7,700
Direct
Water energy
use 2012 11,900 2011 12,800
2012 7,110
consumption 2011 7,840 Wastewater 7,900
2013 11,300 Water use 2012 11,900
Indirect energy 2013 6,950
2012 7,120 volume
consumption 2014
2013 8,000 11,300
11,800
2014 7,040
2013 7,270
2014 8,300 11,800
2011
2014 7,700 7,640
2010 7,640
0 3,000 6,000 9,000 12,000 15,000
Wastewater 2012 7,900 2011 7,700

volume
2011 0 2,000 4,000 6,000 8,0007,840
Companies
Wastewatercovered:
2012 All consolidated subsidiaries and affiliated companies of the
7,900
Indirect energy 2013 8,000
Companies covered:
2012 All consolidated subsidiaries and affiliated companies 7,120of Honda Group in Japan
volume ■ 8,000
Production ■ Non-production
consumption
the Honda Group 2013
2014in Japan 8,300 *Disclosure of wastewater volume began in fiscal 2011.
(FY) (1,000 t)
2013 7,270
■ Production ■ Non-production
*Purchased electricity
(FY) has been converted to joules using the international(1,000
standard *Wastewater volume data are partially based on estimates.
3.6 GJ/MWh.
t-CO2e) 2014
Generated 8,300
422
2014
2010 0 3,000 6,000
470 9,000 12,000 7,640
15,000 2010
*Calculations are based mainly on energy consumed by stationary sources. Sold for reuse 331
*A terajoule (TJ) is a unit of energy, "tera" meaning
2011 4801012. Landfilled 0 Less than3,000 6,000
0.01% by weight 9,000 12,000 15,000
0 2,000 4,000 6,000 8,000
Direct energy
2012 440 ■ Production ■ Non-production Generated 440
■ Greenhouse gas emissions
emissions
(FY)
2013 430
(1,000 t) ■2011
Waste
Sold for reuse ■ Production ■ Non-production
343
Generated 422
■ Production ■ Non-production (FY) Landfilled Less than 0.01% by weight (1,000 t)
2010 (FY) (1,000 t-CO2e)
Sold for 2014
reuse 440 331 Generated 422
2010
Landfilled Less than 0.01% by weight
470 2010 Generated 453
Sold for reuse 331
2012
2011 480 Sold for reuse
Landfilled Less than 0.01% by weight 348
2010
Generated
Direct energy 440 920
Landfilled Less than 0.01% by weight
2011
Sold for 2012
440
emissions reuse 343 Generated 440
2011 840
Landfilled
Indirect energy 2013
Less than 0.01% by weight
430 2011 Generated
Sold for reuse 343 459
emissions
2012 840
2013 Landfilled Less than 0.01% by weight
Sold for reuse 337
2014
Generated 440 453
2012 2013 1,050 Landfilled Less than 0.01% by weight
Sold for reuse 348 Generated 453
Landfilled
2014 Less than 0.01% by weight 1,150 2012
2010 920 Sold for reuse
Generated 348 458
Landfilled Less than 0.01% by weight
2011 0
Generated 200 400 600 459840 1,000
800 1,200 2014
2013
Indirect energy Sold for reuse 347
Sold for reuse 337 Generated 459
2012
emissions Landfilled
840
Less than 0.01% by weight ■ Production ■ Non-production 2013 Landfilled Less than 0.01% by weight
Sold for reuse 337
2013
(FY)
1,050
(1,000 m3)
Landfilled 0 Less than
100 0.01%200
by weight
300 400 500 600 700
Generated
2010 458 11,800
2014 1,150
2014 Generated 458
2011 12,800
Sold for reuse 0 200 400 347
600 800 1,000 1,200 2014
Water use 2012 Less than 0.01% by weight
Landfilled
11,900
Sold for reuse
Companies covered: All consolidated subsidiaries and affiliated companies of the 347
2013
Honda Group in Japan ■ Production ■11,300
Non-production
Landfilled Less than 0.01% by weight
0 100 200 300 400 500 600 700 m3)
(1,000
(FY)greenhouse gas calculation methods, see the MOE/METI (2013)
*For information about
2014 11,800
0 100 200 300 400 500 600 700
"Greenhouse Gas2010
Emissions Calculation and Reporting Manual, ver.3.4"11,800
and WRI/ ■ Production
WBCSD (2004) "The Greenhouse Gas Protocol (Revised Edition)." (FY) (t)
2011
2011
*CO2 emissions from purchased electricity are calculated7,700 12,800
for each utility based on the Companies covered: Nearly all consolidated subsidiaries and affiliated compa-
VOC1 4,970
latest emission factors. nies
2010 of the Honda Group in Japan
Water use
Wastewater 2012
2012 7,900 11,900 PRTR2 1,650
*Calculations are based mainly on emissions from stationary sources.
volume 2013 11,300 VOC 3,920
2013 8,000
■ Other waste and emissions ■ Production
2011
PRTR 1,600
2014 11,800
(FY) 2014 8,300 (t)
VOC 4,150
■ Production
VOC1 4,970 2012
2010 2011 7,700 (FY) PRTR 1,350 (t)
0 3,000 6,000 9,000 12,000 15,000
PRTR 2 1,650 VOC1 4,970
2010 VOC 3,560
2012
WastewaterVOC 7,900 3,920 2013 PRTR2 1,650
2011
volume PRTR 1,280
PRTR 2013 1,600 ■ 8,000
Production ■ Non-production VOC 3,920
2011 VOC 3,180
(FY) VOC (1,000 t) 2014 PRTR 1,600
4,150
2012 2014
Generated
8,300 PRTR 1,200
PRTR 1,350 422
2010 VOC 4,150
Sold for reuse 331 2012 0 1,000 2,000 3,000 4,000 5,000
VOC 0 3,000 6,000 9,000 3,560
12,000 15,000 PRTR 1,350
2013 Landfilled Less than 0.01% by weight
PRTR 1,280 VOC 3,560
Generated 440 2013
VOC 3,180 PRTR 1,280
2011
2014 Sold for reuse ■ Production ■ Non-production
PRTR 1,200 343
(FY) Landfilled
(1,000 t) VOC 3,180
Less than 0.01% by weight 2014
Generated 160 PRTR 1,200
0 1,000 2,000 3,000422 4,000 5,000
2010 150
Generated
Sold for reuse 331 453
2012 Landfilled
Companies LessMotor
than 0.01% by weight 140 0
125
1,000 2,000 3,000
126
4,000 5,000
Sold covered:
for reuseHonda Co., Ltd. and nearly all production-related
348
Landfilled
consolidated subsidiariesLess
andthan
affiliated companies
0.01% by weight 130 117 119
Generated 440 120
2011
Sold for reuse 343 110 100
1. VOC Generated 459
160 (Volatile Organic Compounds): Organic chemical substances that cause photochemical smog and are common in paint and thinner solvents
2013 Landfilled Less than 0.01% by weight 100
2. A150
PRTR Sold
(Pollutant Release and Transfer Register)
for reuse 337 is a national or regional database of information on the environmental release and off-site transfer of poten-
160
90
tially
140
hazardous chemical
Landfilled Less substances
than 0.01% by from
weightindustrial and other facilities.
Generated 125 126453 150
80

2012
130 117 119 2000 2008 2009 2010 2011(年度) J25
Sold for reuse 348 140 125 126
120 Generated
Landfilled Less than 0.01% by weight 458
130 117 119
2014
110 100
120
100 Sold for reuse 347
Direction Products Management 8 domains Honda ENVIRONMENTAL ANNUAL REPORT 2014

Japan INDEX >

The Eight Domains of


Honda Business Activities
To facilitate progress in reducing the environmental impacts of our business activities,
Honda divides these activities into eight domains, one for each stage in the life cycles of
our products̶from development through end-of-life.
Annual and mid-term policies and targets for environmental initiatives are set for each domain.

For more information about environmental targets and results in each domain,
see page D16 of Honda Environmental Annual Report 2014: Data Index.

Major initiatives in the eight domains Promote "green purchasing"


 
・Energy and resource conservation at suppliers1
・Zero waste and emissions initiatives at suppliers

Promote "green factories"


Promote
  "green laboratories"  
・Energy and resource conservation
・Energy and
resource conservation ・Zero waste and emissions initiatives
・Zero waste and
emissions initiatives
・Carbon Smart
Deveropment
Project

  Promote "Green
  Promote
  ICT" "green offices"
・Energy conservation ・Reduce CO2 emissions
・Reduce waste generation
・Reduce water use

 
3R initiatives in product development
3R initiatives for parts
  Promote "green logistics"
3R initiatives for end-of-life products
・Increase transportation efficiency
・Use less packaging

  Promote "green dealers"


・CO2 emissions reductions at sales companies

Triple Zero symbols CO2 emission Waste


reduction/ reduction/
In this report, specific measures, activities, products, elimination elimination
and technologies that contribute to realization of the technology or 3R technology
Triple Zero concept are indicated with one or more of Energy risk
three Triple Zero symbols. reduction/
elimination
For more information about the Triple Zero concept, see page G22 of the Global Report. technology

1. Suppliers: All direct suppliers of consolidated group companies.

J26
Direction Products Management 8 domains Honda ENVIRONMENTAL ANNUAL REPORT 2014

Japan INDEX >

Recognizing that reducing CO 2 emissions from


product use is critical to the preservation of the

Product
global environment, Honda is aggressively pursuing
development of fuel-efficient products. That is why
we also are working to reduce the carbon footprint

Development
of the development processes themselves, with in-
spiration taken from the motto "low-carbon devel-
opment of low-carbon products." We are working to
reduce various other environmental impacts from
these processes as well.

Discussion Executive Officer × Operating Manager × Associate

Setting a high bar to cut emissions even as we


scale up development.

Kazuhito Aizawa Toshiyuki Kurihara Shinya Ogawa


Chief Engineer, Director of Development and Innovation, General Manager,
Automobile R&D Center, Honda R&D Co., Ltd. Automobile R&D Center, Honda R&D Co., Ltd. Administration Office, Honda R&D Co., Ltd.

Systems now in place to make real progress on low-carbon development


In the product development domain, what are Honda's long-term or constant environmental goals?
What efforts were made in fiscal 2014 in pursuit of these goals?

Kurihara: Our highest environmental priority in product development is to develop and offer to customers products that
have the lowest possible environmental impacts. By this I mean cars with excellent fuel efficiency and low CO2 emissions.
The second priority is to ensure that our development operations themselves have low environmental impacts. We use
the motto "low-carbon development of low-carbon products" to articulate these two aims. In recent years, we have fo-
cused on modifying the work environment, facilities, and structures to support low-carbon development. In fiscal 2014,
we expanded the scope of activities at the Tochigi R&D Center1 beyond the original Carbon-Smart Development Project 2
to a committee structure that covers the entire Center. With this change, we have finally laid the groundwork for imple-
menting measures that reduce environmental impacts on a significant scale.

1. Officially, the Automobile R&D Center (Tochigi) of Honda R&D Co., Ltd. It is engaged in automobile product development.
2. Learn more in Case 15 of "Environmental Documentary—Honda Face."
(http://world.honda.com/environment/face/)
J27
Direction Products Management 8 domains Honda ENVIRONMENTAL ANNUAL REPORT 2014

Japan INDEX >


Product Development

Ogawa: In the Facility Administration Department of the Operations Office, we are


focused on the energy conservation and efficiency of our offices and test facilities.
Looking back over the past three years, we have challenged ourselves to make big
reductions in electricity consumption and CO2 emissions ahead of the Revised En-
ergy Conservation Act, which took effect in April 2014, by installing cogeneration
and large-scale solar equipment and power storage systems, and by cutting peak
electricity consumption during summer and winter. A major achievement in fiscal
2014 was the completion of a project to obtain measurement data on actual elec-
tricity, gasoline, and utility gas consumption at about 5,000 locations onsite; this
formed part of a larger energy visualization effort conducted in tandem with the
Carbon-Smart Development Project. With the systems now in place, we can see, at
a glance, where and how we are consuming energy. And we have already initiated a
number of actions based on this new input, such as reducing standby electricity con-
sumption on days when the Center is closed.
Toshiyuki Kurihara
Director of Development and Innovation,
Aizawa: Engineers naturally want numerical measures of what we are doing; once we see Automobile R&D Center, Honda R&D Co., Ltd.
data, wasted energy enters our realm of responsibility. In that sense, making things more
visible has had a big impact on raising the awareness of individual associates here. In fiscal 2014, as members of the low-carbon proj-
ect, we reviewed the operating methods of the facilities and promoted greater efficiency.
The fact that we were able to meet our CO2 emissions reduction targets for the entire R&D
Center for fiscal 2014 is a major achievement.

Shifting to low-carbon development


without slowing down
What will be your policy or course of action at the start of the new mid-term that begins
in fiscal 2015? How will front-line associates execute this?

Kurihara: From fiscal 2015 onward, energy consumption at the Tochigi R&D Cen-
ter is expected to increase as we develop more models for the global market and
as we become increasingly involved in development associated with F1 racing. But
Honda's mission as a mobility company requires that we set a high bar for reducing
total CO2 emissions. With energy monitoring systems in place and the transition to a
committee structure complete, we now have a solid foundation on which to build. If
we can continue executing our plans, I really think we can achieve our goal.
Shinya Ogawa
General Manager,
Administration Office, Honda R&D Co., Ltd.
Ogawa: Besides actually implementing these measures to reduce CO2 emissions,
another task of ours is to consider measures to execute in the next mid-term. There
is no end to environmental improvement; it continues on indefinitely. If we are look-
ing at only today, we will miss out on actions we can take in the future. This means
looking three to five years ahead to identify solutions and make plans to bring our
development operations ever closer to being carbon free. Fiscal 2015 will be a cru-
cial year in this process.

Aizawa: Ultimately, it is on the frontlines that ideas arise that pave the way to the future. Be-
cause energy monitoring has finally given us the big picture on energy use, I have received a
number of ideas about how to change things to reduce energy consumption at the wind tun-
nel testing facility where I work. The key is to establish a work environment where people can
articulate their ideas, share them using graphic tools, and incorporate them into further plan-
ning. It is also important to cut impacts through our actions as individuals. That is my role, as I
have been involved in low-carbon development here since the time it was just a project.

Kurihara: Cutting waste and unnecessary processes onsite, while further advancing low-carbon
Kazuhito Aizawa
Chief Engineer, development without slowing the pace―this is the ultimate direction we need to take and Honda's
Automobile R&D Center, Honda R&D Co., Ltd. social responsibility as a manufacturer of mobility products. I myself will actively communicate
As a member of the Carbon-Smart Develop-
this through committee activities and other opportunities so everyone on the frontlines can un-
ment Project, revised and improved efficien-
cy of facility operation methods derstand. Together, I hope we can become an environmental leader in product development.

J28
1,500 1,848 1,657 75
75
1,848 75
1,500 1,657 1,384 75
1,500 1,657 75
1,000 50
1,384
1,384
Direction Products Management 8 domains Honda
1,000
1,000
ENVIRONMENTAL ANNUAL REPORT 2014
50
50

Japan
500 25
500 25
500 25
0 0
2009 2010 2011 INDEX
(年度)>
Product Development 0
0
2009
2009
2010
2010
2011
2011
0
0
(年度)
(年度)

Environmental initiatives at Honda R&D ■ Total


CO CO2 emissions ■ Per-unit CO2 emissions
2 emissions
(1,000 t-COCO
■ Total 2) 2 emissions ■ Per-unit CO2 emissions (%)
■ Total CO2 emissions ■ Per-unit CO2 emissions 本田技
300t-CO2)
(1,000 120
(%)
(1,000 t-CO100
2) 104 100 (%)
300 120 本田技
● Energy and resource conservation 250
300 100 104 100 100
120 本田技
100 104 100 81 77
250 78 100
Honda R&D Co., Ltd. endeavored to conserve energy in fiscal 2014 as it 200
250
78
81 77 80
100
81 77
200 78 80
pursued its goal of reducing per-unit CO2 emissions by 6% from fiscal 150
200
150 152
60
80
150 125 139 144 60
2001; it achieved a 23% reduction. 100
150 113 150
150
152
152 139 144
40
60
100 125 139 144 40
113 125
Also, along with the significant upgrades that have continued since fiscal 50
100 113 20
40
50 20
0 020
2013, we have proactively introduced more efficient equipment, such as 50


~ ~
0
2001 2010 2011 2012 2013 2014 (FY)
0

~~
0 0
LED lighting, upgraded heat source equipment, refurbished motors for


2001 2010 2011 2012 2013 2014 (FY)
2001 2010 2011 2012 2013 2014 (FY)
air conditioners, and upgraded room air conditioners. *0.378 t-CO2/MWh was used as a fixed CO2 emissions factor
for electricity across all years
In fiscal 2014, to meet Hokkaido Electric's strict 6% power-saving reduc-
Water use
tion target for the winter season compared to fiscal 2011, the Takasu ■ Total water use Per-unit water use
■ Total 3water
(1,000 use Per-unit water use
Proving Ground adjusted the operation of air conditioning equipment to ■ Totalmwater
)
use Per-unit water use (%)
1,500
(1,000 m3) 150
(%)
(1,000 m3) (%)
reduce peak demand. 1,500
1,500
150
150
1,200 120
100
Honda R&D also worked to cut per-unit water use by 20% from fiscal 1,200 120
1,200 100 77 120
900 100 75 76 74 73 90
2001; ultimately, it achieved a 27% reduction. Specific strategies includ- 1,180
77
900 75 76 74 73 90
900
600 1,180 75 77 76 74 73 90
60
ed taking steps to reduce water consumption in dishwashers, reducing 1,180 1,120 1,220 1,260 1,320 1,410
600 1,120 1,220 1,260 60
600 1,320 1,410 60
water consumption by changing the operation of water filter equipment, 300 1,120 1,220 1,260 1,320 1,410 30
300 30
and the proactive use of spring water at the Motorcycle R&D Center. 300
0 030


~ ~
0 2001 2010 2011 2012 2013 2014 (FY)
0

~~
0 0


2001 2010 2011 2012 2013 2014 (FY)
2001 2010 2011 2012 2013 2014 (FY)
● Zero waste and emissions
Honda R&D's target for waste generation in fiscal 2014 was a 27% re- Waste generation
duction from fiscal 2001. By ramping up waste separation efforts and ■ Total waste generation Per-unit waste generation

converting more waste into salable material, it achieved a 38% reduction. ■ Total waste generation Per-unit waste generation
■(t)Total waste generation Per-unit waste generation (%)
15,000
(t) 150
(%)
Municipal waste was reduced by 7% due to waste reduction achieved by (t)
15,000
(%)
150
15,000
12,000 150
120
reviewing the sludge removal standards for septic tanks, and by the use 100
12,000 120
12,000 100 76 82 76 120
of a rag supply service. 9,000 100
10,800 69 62
90
9,000 76 82 76 90
9,000 76 82 76 90
The Automobile R&D Center in Wako has been promoting reductions 6,000 10,800
10,800 10,400
11,900
11,600
69
69 62
62
60
11,900 11,300 11,000
6,000 10,400 60
in chemical emissions by continuously switching to low-VOC1 paint for 6,000
3,000 10,400
11,900 11,600
11,600 11,300
60
30
11,300 11,000
11,000
prototype vehicles. Moreover, all sites select paint thinners that contain 3,000
3,000
0
30
030

~ ~

2001 2010 2011 2012 2013 2014 (FY)


lower levels of hazardous chemicals. 0 0
~~

0 0

2001 2010 2011 2012 2013 2014 (FY)


2001 2010 2011 2012 2013 2014 (FY)

● Carbon-Smart Development Project


Tochigi R&D Center
Honda R&D, which researches and develops automobiles, motorcycles, Carbon-Smart
■ Development
CO2 排出量 ■ CO 2 排出量原単位指数
Project
and power products, is Honda's key product development organization. ■ CO2 排出量 ■ CO2 排出量原単位指数
Low-carbon
(t-CO
■ CO2) 100
development
2 排出量 ■ of low-carbon products
CO2 排出量原単位指数 (%)
25,000 87.4 100 ホンダ
The Automobile R&D Center (Tochigi) has been implementing the Car- (t-CO2) 100
(t-CO2) 100 82.6 81.0
(%)
(%)
25,000 87.4 100 ホンダ
25,000 87.4 100 ホンダ
bon-Smart Development Project since 2010, under the slogan "low-car-
2 20,000 Reduce
21,989
82.6
development
82.6 energy use
81.0
81.0
80
20,000 19,547 80
Streamline
21,989 development testing18,495
bon development of low-carbon products." 20,000
15,000 21,989 19,547 not
(Efficiency/rationalization 44.0
80
60
19,547 18,495
15,000New 14,015
equipment the primary target) 18,495
Turn off power 60
In fiscal 2014, we used the approximately 5,000 smart meters already in- 15,000 Ongoing
10,000 14,015
Save power 44.0
44.0
Ongoing
60
40
14,015
efficiency improvement 10,478
stalled at the Tochigi R&D Center to graph parameters such as electricity 10,000
10,000
5,000
Energy storage Leverage rationalization
10,478
40
40
20
Solar Equipment Power down 10,478
Cogeneration
consumption and CO2 emissions from the use of testing equipment and 5,000
5,000 Waste heat
energy infrastructure
20
0 020

~ ~

other types of equipment, and we now monitor the status of electricity 0


2000 Strengthen
2008 education/training
2009 2010 2011(年度)
0
~~

0 Create Tochigi R&D Center 0


2000 2008 2009 2010 2011(年度)


consumption for almost all equipment. This information is displayed via 2000 2008 and philosophy
slogan 2009 2010 2011(年度)

the in-house Social Networking Service (SNS). We have created a system


that allows the many engineers at the Tochigi R&D Center to suggest
■ 水資源使用量  ■ 水資源使用量原単位指数
ways to further reduce energy consumption on an ongoing basis, year ■ ㎥)
( 水資源使用量  ■ 水資源使用量原単位指数 (%)
■ 水資源使用量  ■ 水資源使用量原単位指数
after year. We refer to this as an "awareness-raising tool," and plan to fur- 120,000
( ㎥)
( ㎥) 131.8
160
(%)
(%)
120,000 160
ther strengthen communication among engineers in order to promote 120,000
90,000
131.8
131.8
160
120
99.5 100
activities to cut carbon emissions. 90,000
90,000 99.5 100 120
120
79,864 99.5 100 72.9
60,000 80
79,864 61,285 72.9
60,000 79,864 57,629 72.9 80
60,000 61,285 41,449 80
30,000 61,285 57,629 40
57,629
41,449
30,000 41,449 40
30,000 40
Screenshots
0 of awareness-raising tools 0
0
2008 2009 2010 2011 (年度)
0
0 0
2008 2009 2010 2011 (年度)
2008 2009 2010 2011 (年度)
1. Volatile Organic Compounds: Organic substances that cause photochemical smog and are commonly used in the solvents of paints and thinners.
2. Read more about the Carbon-Smart Development Project in CASE 15 of "Environmental Documentary Honda Face."
(http://world.honda.com/environment/face/)

■ 廃棄物等発生量 ■ 廃棄物等リサイクル率 J29


■ t廃棄物等発生量 ■
( 廃棄物等発生量 ■
) 廃棄物等リサイクル率
99.3 99.9 100 100 (%)
■ 廃棄物等リサイクル率
93.1
2,500
(t) 99.9 100 100 100
(%)
99.3 100 100
Direction Products Management 8 domains Honda ENVIRONMENTAL ANNUAL REPORT 2014

Japan INDEX >

Honda purchases a vast number of product parts


from suppliers. Their cooperation, therefore, is
essential to reducing environmental impacts at
every stage in our products' life cycles. We created

Purchasing the Global Environmental Vision for Purchasing to


unify efforts toward this single objective. We are
joining our worldwide network of materials and
parts suppliers in a concerted and engaged effort
to reduce the overall environmental impact of our
operations.

Discussion Executive Officer × Operating Manager × Associate

Working with suppliers to eliminate


all supply chain CO2 emissions

Jun Doi Naoto Matsui Hiroshi Saito


Assistant Manager, Chief Operating Officer for Purchasing Operations General Manager,
Purchasing Global Operations Planning Office Purchasing Global Operations Planning Office

Suppliers play a key role in monitoring CO2 emissions throughout our supply chain.

In the purchasing domain, what are Honda's long-term or constant environmental goals?
What efforts were made in fiscal 2014 in pursuit of these goals?

Matsui: Honda products incorporate an extraordinarily large number of parts from suppliers. One Honda automobile, for
example, uses more than 20,000 parts purchased from specialized vendors. The point here is that these suppliers' manufac-
turing facilities are located all around the world, and each facility emits carbon dioxide. In the purchasing domain, our aim is
to reduce CO2 emissions from the supply chain to the absolute minimum. The manufacturing operations of Honda and of our
suppliers have been a welcome presence in communities around the world, and we believe continuously improving our envi-
ronmental performance is essential to maintaining favorable relations in the future.
We created the Global Environmental Vision for Purchasing to "globally carry out corporate activities that are mutually harmo-
nious with and beneficial to local communities in order to continue exceeding customer expectations in terms of quality, cost,
delivery, development, and the environment (QCDDE)." We are sharing these guidelines with our suppliers and working with
them to realize this vision.

J30
Direction Products Management 8 domains Honda ENVIRONMENTAL ANNUAL REPORT 2014

Japan INDEX >


Purchasing

Saito: In fiscal 2014, we fulfilled our plan to widen the scope of CO2 monitoring to all
suppliers worldwide. We have several hundred direct suppliers in Japan alone, and
our global supply chain when extended upstream to include the original raw material
suppliers comprises an enormous number of companies. Asking suppliers to also
monitor carbon emissions in their upstream procurement chains enables compre-
hensive emissions management over the entire supply chain. Monitoring may sound
simple, but it's actually a huge collaborative effort with suppliers around the world.

Doi: In fact, suppliers play a crucial role in managing and ultimately reducing CO2
emissions from our value chain. That is why it is so important for us to share our
thinking and objectives with them. To communicate our intentions clearly, we hold
meetings with their directors and workers and visit their facilities. I have realized from
our talks that they actually have a very strong awareness. I am the one to initiate the
meetings, yet I often come away feeling stimulated and having learned something
Naoto Matsui
new. Chief Operating Officer for Purchasing Operations

Aiming for zero CO2 emissions at every manufacturing site


What initiatives will the purchasing domain implement in the new mid-term that begins
in fiscal 2015? What objectives do you have beyond that period?

Saito: Our initiatives in fiscal 2015 will have two objectives. One is to reduce CO2
emissions by ensuring that Honda purchasing operations and its suppliers in all re-
gions share the same vision and are using monitoring data. The other is to promote
the spread and adoption of suppliers' best practices. Each region has its own environ-
mental regulations and programs. Europe, for example, is steadily introducing regu-
latory, standardization, and evaluation systems, and the advanced management these
systems enable is encouraging local suppliers to carry out some very progressive ac-
tivities. We're trying to learn as much as we can from their work and share it with our
global supplier network to set a higher standard across the board.
Hiroshi Saito
General Manager,
Purchasing Global Operations Planning Office Doi: The first objective of CO2 reduction means we have to make huge amounts
of environmental data—and the results of analysis using such data—available to
all Honda purchasing staff and suppliers. The new data management system we
launched at the start of fiscal 2015 will make this possible. For the second objective,
to promote the spread and adoption of effective measures, an inter-regional envi-
ronmental committee for purchasing was created in fiscal 2014. This committee will
provide purchasing staff in each region with the opportunity to share suppliers' best
environmental management methods and CO2 reduction measures with other re-
gions, allowing staff and their suppliers in all regions to improve the effectiveness of
their environmental activities.

Matsui: Honda's ultimate aim is to work with its suppliers in building a supply chain
with virtually zero CO2 emissions. The first priority is to get all companies in our
supply chain to actively work on reducing the carbon intensity of their business ac-
tivities so that local communities accept and support their operations. Honda has
an obligation to provide products that are beneficial for customers and are environ-
mentally responsible; customers will not enjoy a product that is missing either of
Jun Doi
Assistant Manager, those elements. We want to reduce CO2 emissions at every company that makes one
Purchasing Global Operations Planning Office
or more of the thousands of parts that go into our products. That's our mission.
In charge of constructing the environmental
data management system and coordinating
the meetings of the inter-regional environ-
mental committee for purchasing
J31
Direction Products Management 8 domains Honda ENVIRONMENTAL ANNUAL REPORT 2014

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Purchasing

■ Environmental management in the purchasing domain Global Environmental Vision for Purchasing

● Global Environmental Vision for Purchasing Honda Enviromental and Safety Vision
Realize the joy and freedom of mobility and
The Honda Global Environmental Vision for Purchasing succinctly expresses a sustainable society where people can enjoy life
our desire to reduce the environmental impacts of our suppliers worldwide
and to globally conduct our operations in ways that are harmonious with and Goal Globally conduct business in ways that are harmonious
with and beneficial to local communities to continue
exceeding customer expectations on QCDDE.
beneficial to local communities as we source parts for our motorcycles, auto-
Slogan
mobiles, and power products from a growing global supply network. "Green Excellence around the World"
for Exciting and Thrilling Products
We have translated this aim into an operating policy called Green Purchas-
ing Guidelines, and a three-step action plan called Grand Environmental Policy Honda Green Purchasing Guidelines
Design for Purchasing, both of which we share and implement with our Reduce product life cycle greenhouse gas emissions

suppliers.
Action Grand Environmental Design
Leverage PDCA to realize a low-carbon global supply chain
● Honda Green Purchasing Guidelines
The Honda Green Purchasing Guidelines express our intention to strength-
en business relationships with suppliers that support our aim to reduce
Revised Green Purchasing Guidelines (as of January 2011)
greenhouse gas emissions and other environmental impacts through the
sourcing of low-impact materials and parts from low-impact activities. The ● Promote purchasing of
environmentally responsible products
addition of "environment" (E) to the list of metrics used to evaluate suppli-
Policies ● Add an environment category to
ers—quality (Q), cost (C), delivery (D), and development (D)—will guide supplier evaluations (quality, cost,
delivery, development)
us in this endeavor.

Management
Build environmental management
● Grand Environmental Design for Purchasing
systems for products and in every
Honda has established a Grand Environmental Design for the realization of domain of our business activities

this low-carbon global supply chain, and is promoting initiatives through


the following three steps: Control Operations
Manage environmental impacts in every
items domain
1. Communicate Honda's environmental policies
(e.g., GHG emissions)
2. Make preparations to manage greenhouse gas emissions reduction
3. Reduce greenhouse gas emissions Propose products that improve fuel efficiency
Products

Control substances of concern


● Policy information meetings for suppliers
Applies to: All suppliers worldwide
Honda holds information meetings to help suppliers understand the Honda
Green Purchasing Guidelines and gain their support in implementing the
guidelines.
Environmental policy information meeting for suppliers
In fiscal 2014, we hosted four information meetings in Japan to present our
greenhouse gas emissions reduction policy, mid-term objectives, and man-
agement methods. The meetings were attended by environmental manag-
ers and others responsible for implementing environmental measures at
our supplier companies.

●Inter-regional Environmental Purchasing Committee


We established an inter-regional environmental committee for purchasing
in February 2013 to strengthen collaboration between regions as we global-
ly accelerate low-carbon initiatives. The committee holds meetings for pur-
Inter-regional environmental purchasing committee meeting
chasing managers to share information, and discuss and coordinate actions.
By sharing best practices across regions, we will strive to raise the bar on all
purchasing activities worldwide.

J32
Direction Products Management 8 domains Honda ENVIRONMENTAL ANNUAL REPORT 2014

Japan INDEX >


Purchasing

● Honda Green Network Meeting and industry-specific working groups Industry-specific working group event
In fiscal 2010, Honda began hosting Honda Green Network Meetings
to serve as a forum for sharing environmental initiatives with suppliers.
These events are held for suppliers that have similar production process-
es and/or use similar equipment, in order to facilitate the sharing of spe-
cific technical solutions. In fiscal 2014, discussions and facility tours were
conducted at ten locations. Suppliers are actively applying new insights
to the reduction of greenhouse gas emissions.

● Honda Green Conference


The triennial Honda Green Conference provides a contact point for Honda
and its suppliers to strengthen environmental activities and to share and
expand successes across all organizations.
In fiscal 2014, 54 environmental topics from 43 companies were shared.
Musashi Seimitsu Industry Co., Ltd. received an Award for Energy Inno-
vation for its presentation "Big reduction in power consumption achieved
through energy efficiency monitoring."1

● Presentation of the Environmental Award for suppliers Worksite tour (top), Group discussion (bottom)

We honor suppliers that demonstrate outstanding performance in four


List of Supplier Environmental Award recipients
categories—development, cost, quality, and parts. The Environmental
F-Tech Inc., Dunlop Goodyear Tires Ltd., Pioneer Corporation,
Award, created in fiscal 2012, shows our appreciation and respect to sup- FY2012
Shindengen Electric Manufacturing Co., Ltd., Yachiyo Industry Co., Ltd.

pliers that have implemented measures in accordance with the Honda F-Tech Inc., Keihin Corporation, NOK Corporation,
FY2013
Green Purchasing Guidelines and have shown exceptional progress in (%) Showa Corporation, The Yokohama Rubber Co., Ltd.
100
reducing environmental impacts in the upstream part of our value chain. 100
FY2014
Bestex Kyoei Co., Ltd., Keihin Corporation, Tachi-S Co.,
Ltd., Tanaka Seimitsu Kogyo Co., Ltd., Toyo Denso Co., Ltd.
80 88
The award has been presented to 15 companies in the three years since 83 84 80
(%)
(Alphabetical
76 order)
60
its inception in fiscal 2012. Raising supplier awareness about environ- 100
Per-unit CO2 emissions
100
mental impact reduction further helps promote the extension of environ- (%)
40
80
100 88
83 84 80
mental efforts across product life cycles. 20
60
100 76
80 88
83 84 80
0

40 76
60 2001 2010 2011 2012 2013 2014 (FY)

■ Energy and resource conservation at suppliers 2 20


40

0
20

2001 2010 2011 2012 2013 2014 (FY)


● CO2 emissions and water use 0

2001 2010 2011 2012 2013 2014 (FY)


We try in various ways to help suppliers reduce CO2 emissions and water
(%) *Supplier scope changed in fiscal 2012
use in every area of their business activities. Efforts to reduce CO2 emis- *0.378 t-CO2/MWh was used as a fixed CO2 emissions factor for
120
electricity across all years
sions are aimed at reducing energy use and vary widely in content, in- 100
108
Per-unit100
water use 101 99
cluding not only those related to production equipment, such as improv- 80
(%)
95 92
120
ing the combustion efficiency of aluminum melting furnaces, but also 60
(%)
100
120 108
modifying the specifications of the materials or parts themselves, such 40
100 101 99
80
100
95 92
20 108
as developing a plating material that can be processed at room tempera- 100 101 99
60
80
0 95 92
ture. Per-unit CO2 emissions in fiscal 2014 fell by 24% from the base year 2009 2010 2011 2012 2013 2014 (FY)
40
60
of fiscal 2001, while per-unit water use declined by 8% from fiscal 2009. 20
40

0
20
2009 2010 2011 2012 2013 2014 (FY)
0
■ Zero waste and emissions initiatives at suppliers 2009 2010 *Supplier
2011 scope
2012 changed
2013 in2014
fiscal 2012
(FY)

Per-unit waste generation


(%)
● Waste generation 100
100 97 96
Ongoing efforts to increase material throughput yields reduced per- 80 90
81
77
unit waste generation by the suppliers within our monitoring scope by (%)
60
100
23% from fiscal 2009 to fiscal 2014. Suppliers also maintained their zero (%)
40 100 97 96
100
80 90
waste-to-landfill performance. 100 97 96 81
20
80 90 77
60
81
77
0
60
40 2009 2010 2011 2012 2013 2014 (FY)
40 *Supplier scope changed in fiscal 2012
20

1. See page J04 to learn more. 20


0
Initiatives presented at the 2013 conference are described in detail in the December 24, 2013, article of Environmental TOPICS.
2009 2010 2011 2012 2013 2014 (FY)
http://www.honda.co.jp/environment/topics/topics25.html (in Japanese) 0
2009 2010 2011 2012 2013 2014 (FY)
2. All direct suppliers of consolidated group companies. J33
Direction Products Management 8 domains Honda ENVIRONMENTAL ANNUAL REPORT 2014

Japan INDEX >

As a manufacturer, Honda combines energy and


materials through various processes and trans-
forms them into products. We strive to minimize
impacts on the global environment in all areas of

Production
these activities. We also are committed to improv-
ing the quality of local environments in collabo-
ration with the communities in which we operate.
To realize the Honda Environmental and Safety Vi-
sion, we take the Triple Zero approach to manufac-
turing low-impact products at low-impact factories
that our neighbors can be proud of.

Discussion Executive Officer × Operating Manager × Associate

New Yorii Automobile Plant drives global lead-


ership in environmentally responsible production

Yuji Ito Takashi Yamamoto Takehiro Kono


Staff Engineer, Head of Automobile Production Plant Manager,
Saitama Planning and Administration Office, Yorii Automobile Plant, Saitama Factory
Production Supervisory Unit

It all starts on the factory floor

In the production domain, what are Honda's long-term or constant environmental goals?
What efforts were made in fiscal 2014 in pursuit of these goals?

Yamamoto: Honda is essentially a manufacturer, so you could say that production operations are the very foundation of
Honda's business. Right from the time Honda was established we have been aiming to manufacture better products more
efficiently and to use the shortest possible processes. With the heightened importance of environmental issues, Honda has
been reducing environmental impacts in all stages, from procuring materials to delivering products to customers, to final dis-
posal. We're aware that production is the starting point of this chain of events, so we were the first to initiate efforts to reduce
environmental impacts. We've challenged ourselves to practice the basic concept of manufacturing low-impact products at
low-impact factories.

J34
Direction Products Management 8 domains Honda ENVIRONMENTAL ANNUAL REPORT 2014

Japan
INDEX >
Production

Kono: Our production associates are taking this kind of thinking to heart. Each per-
son brings to his or her process a strong awareness that we are always looking for
ways to maximize efficiency and create products with the least amount of energy.
The only problem was that we faced limits to how much we could reduce environ-
mental impacts using conventional methods. Our breakthrough came with the
launch of the Yorii Automobile Plant in fiscal 2014. This plant has technologies and
equipment unlike anything we have had before. Launching this next-generation fac-
tory without any setbacks was one of our top achievements in fiscal 2014. It will re-
duce CO2 emissions per vehicle produced by 30% compared to conventional factories.

Ito: I am in charge of the coating processes at the Yorii Automobile Plant, and was
involved right from the planning stage. Associate who work in coating have an espe-
cially strong environmental awareness because of the unique characteristics of these
processes, and since this was going to be a new factory we wanted it to be dramat-
ically more efficient and more eco-friendly than existing factories. We took on the
challenge of creating new coating technologies with shorter processes, switching Takashi Yamamoto
Head of Automobile Production
from the conventional 4-coat/3-bake coating process to a 3-coat/2-bake process.1 At
the planning stage, there was no guarantees that we could achieve this goal. But the
R&D Center had already succeeded in developing new materials for these new coat-
ing technologies, so when the new plant opened in 2013, we were able to make the
coating technology and equipment a reality, just as planned.

Innovative, eco-conscious manufacturing technology


from Japan to the world
What will be your policy or course of action at the start of the new mid-term that begins
in fiscal 2015? How will front-line associates execute this?

Yamamoto: Production operations have a major role to play in Honda's aim to trans-
form itself into a truly globalized company. Environmental impacts should not in-
crease in proportion with production volume; whatever we do, we want our factories
to have lower energy consumption and environmental impacts than before. To do
this, we need to spread new technologies and know-how from the Yorii Automobile
Plant to other plants worldwide as quickly as possible. Becoming a global environ-
mental front-runner by doing so is our new mid-term goal.
Takehiro Kono
Plant Manager,
Yorii Automobile Plant, Saitama Factory
Kono: The rollout of technologies overseas has already started. Support staff from
the Yorii Automobile Plant have been visiting our factory in Mexico, and technology
from Yorii is also being introduced in Brazil and China. But because less than a year
has elapsed since the Yorii Automobile Plant started running, we are still gaining op-
erational experience with these technologies. In the next mid-term period, we need
to learn more, make production even more efficient, and roll it out to our factories
globally.

Ito: Energy is closely linked to product quality on the production line. Poor coat
quality in coating processes will always result in extra energy waste. So the attempt
to ensure consistent product quality by its nature helps us manufacture more effi-
ciently and minimize energy use. Daytime temperature variations at the Yorii Auto-
mobile Plant make it a challenging environment for coating, but I'm hoping to create
standards that can be used worldwide, after building up experience with achieving
consistency in coating under these kinds of conditions.

Yamamoto: Society's expectations of manufacturing becoming more environmentally


responsible are not limited to just CO2 emissions and energy but also extend to such
Yuji Ito things as reducing emissions of volatile organic compounds and using water more effi-
Staff Engineer,
Saitama Planning and Administration Office,
ciently. In response, Honda needs to pick up the pace of its own transformation. To do
Production Supervisory Unit this, everyone involved in production needs to approach each day with the awareness
Involved in introducing shorter, more efficient that what we do now shapes who we will be five or six years in the future. All of this
coating technologies at the Yorii Automobile Plant
connects to the further evolution and globalization of our manufacturing expertise.
1. For example, a 4-coat/3-bake process uses four coats of paint and three drying steps. Therefore, a 3-coat/2-bake process saves one paint coat and
one curing step. We refer to this as Honda Smart Ecological Paint. For more information, see page G15 of the Global Report, entitled "Environmental
Frontrunner Yorii Automobile Plant Starts Production!"
J35
Direction Products Management 8 domains Honda ENVIRONMENTAL ANNUAL REPORT 2014

Japan INDEX >


Production

●Flow of energy and materials through production in Japan in FY2014

Input Output

facilities: 466 t
Heat recovered from group
Production related business activities
Energy: 9,193 TJ GHG emissions: 408,000 t-CO2
Solar generated: 1,437 MWh ・CO2 emissions from energy and non-energy sources: 406,000 t-CO2
・Non-CO2 GHG emissions: 2,000 t-CO2
Material inputs:
Release and transfer of chemical substances:
Purchased steel, aluminum,
・Released to atmosphere: 793 t ・Released to hydrosphere: 2 t
and other metals: 275,000 t
・Transferred off-site: 45 t
PRTR1-listed substances: 3,271 t
Waste
Water: 3,351,000 m3 ・Total waste generated: 171,300 t ・Waste landfilled: 0 t

See below for CO 2 emission factors Wastewater:1,796,000 m3

■ Energy and resource conservation CO2 emissions from automobile and motorcycle
production
● Major energy conservation (GHG emission reduction) initiatives
■ Total emissions ■ Emissions per automobile produced
In fiscal 2014, production operations generated 408,000 t-CO2, an in- ■ Emissions per motorcycle produced
138
crease of 7.9% from the previous fiscal year, which was partially due to a (1,000 t-CO2) 105 100 (%)
100



500 93
nationwide rise in emission factors. 100
94

400 90
〈 Production changes 〉 82 91
88
We began operations at the Yorii Automobile Plant in July 2013, starting up effi- 300 350 80
290
270
cient production that realizes a 30% reduction in CO2 emissions per automobile 200 240 240 70

compared to existing plants. We also consolidated motorcycle production at the 100 60


■ Total emissions ■ Emissions per automobile produced ~
Kumamoto Factory, where we mainly produce large bikes.

■ Emissions
0 per motorcycle produced 0



138
We broadened the scope of our energy management activities and increased (1,000 t-CO2) 2009 2011 2012 2013 2014 (FY)
105 100 (%)
Note: Includes only production of finished vehicles
100



500
monitoring at multiple factories during the year. Steps taken to improve 93 94
100
production efficiency included designating members at each factory to in- The 90
400following CO2 emissions factors were used for FY2014:
82 91
spect energy use, especially in the energy-intensive coating and machining ●Tokyo
300 350Kerosene
EPCO: 0.1%
0.406 t-CO 2/MWh ●Chubu 88EPCO: 0.373 t-CO2/
Gasoline and diesel 0.8% 80
MWh ●Kyushu 2901.1%
Propane
EPCO: 0.599 t-CO2/MWh ●Utility 270 gas (13A
operations. These efforts helped us identify ways to cut emissions by 400 46200
240 240
70
MJ): 2.296 t-CO2/1,000 m3 ●Utility gas (13A 45 MJ): 2.244
t-CO2 annually. t-CO2/1,000 m3 ●Kerosene: 2.489 t-CO2/kl ●Diesel: 2.585
100 Utility 60
t-CO2/kl ●Gasoline: 2.322 t-CO2/kl ●Propane: 2.999 t-CO2/t
〈 Site-based CO2 emission reduction initiatives 〉 gas

0 33.1% Purchased 0

Each business site monitors energy use and works to improve the efficiency 2009 2011 2012 2013
electricity
2014 (FY)

of production facilities by reducing energy loss, while also refining their 64.9%

operating and management methods. Factories are also working to improve Energy use by source (based on CO2 equivalence)

the production setup of their facilities by managing energy use based on the Kerosene 0.1%
Gasoline and diesel 0.8%
Propane 1.1%
amount of heat, which isn't affected by CO2 emissions factors.
CO2 emissions reduction initiatives in fiscal 2014 Utility
■Introduced innovative production processes (dry paint booths, coating system without middle coat, etc.) gas
■Expanded measures to reduce production energy loss ■ Municipal water ■33.1%
IndustrialPurchased
water ■ Well water 
Shared information within our factory network to promote the spread and adoption of measures to reduce energy loss electricity
■ Rainwater ■ Per-unit water use
Coating: Assessed the heat balance of drying ovens and corrected the gap with the theoretical value to reduce LNG usage 64.9%
(1,000m3) 125 (%)
Machining: Meticulously examined each machine to locate and rectify sources of loss, and assessed effective measures 8,000 125
■Advanced energy monitoring 100 100 94
Segmented energy usage (electricity, gas, air, steam, water) by facility characteristics 6,400 89 83 100
Upgraded energy management systems to find new areas to improve 5,273
4,800 27 75
■Full recovery and use of exhaust heat
Recovered high-temperature exhaust heat for use as an HVAC heat source (broadened scope of exhaust heat recovery) 3,298 3,315 3,103 3,233 3,351
3,200 3,097 50
■Sharing of environmental impact reduction initiatives (Honda Green Conference2) ●Power generation
61 58
at production
49 plants46
46
1,263 1,145
1,413 1,385 1,305
Production operations from each business site presented 15 initiatives at the domain confer- Power
1,600 generation equipment at our
1,472 1,370
production
1,570
25
■ Municipal 1,272Industrial
water ■ 1,316 water ■
1,229 Well water 
ence. Initiatives were adopted at other sites, and best practices were presented at the general facilities
677 in Japan
■ Rainwater ■ 551
Per-unit
produced
555
water use
82,700555
520
MWh of 590
elec-
conference. 0 0

tricity
2001in fiscal 2014,2011
2010 with 81,200
2012 MWh
2013 generated
2014 (FY)
(1,000m ) 125
3
(%)
by electric generators and 1,437 MWh by solar pho-
〈 Per-unit CO2 emissions 〉 8,000 125
tovoltaic systems.100
The100increased use of generators
94
Per-vehicle CO2 emissions decreased by 9% for automobiles from the fis- helped us reduce the overall89peak electricity
6,400 83 use 100
of our5,273
production産業廃棄物等発生量原単位指数
facilities in Japan by 7.3% from
cal 2011 base year. It increased by 38% for motorcycles due to an overall ■ 廃棄物等総発生量 ■
4,800 27 75
(千t)fiscal143
2011. We will continue using on-site gener-(%)
decline in motorcycle production and a focus on producing large bikes. ation3,097
250.0 3,298 3,315 3,233 3,351
equipment to further lower our peak power 50
3,103 150
3,200 46
61 58 49 46
We will continue to promote the spread of best practices and aim to im- 200.0
consumption.1,413 1,385 1,305 1,263 1,145
120
1,600 102 100 96 25
1,472 1,370 1,570
plement higher standards at all factories to further improve production 1,272 1,316 1,229
150.0 677 551 555 520 555 79
590 90
0 0
efficiency.

2001 2010 2011 2012 2013 2014 (FY)


100.0 60
87
1. A PRTR (Pollutant Release and Transfer Register) is a national or regional database of information on the environmental release and off-site transfer of
potentially hazardous chemical substances from industrial and other facilities. 50.0 30
2. See page J04 to learn more about the Honda Green Conference.
196 153 157 155 161 000
Initiatives presented at the 2013 conference are described in detail in the December 24, 2013, article of Environmental
0 TOPICS.
■ 廃棄物等総発生量 ■ 産業廃棄物等発生量原単位指数 0 J36

http://www.honda.co.jp/environment/topics/topics25.html (in Japanese) (千t) 2000 2009 2010 2011 2012 2013 (年度)
(%)
143
250.0 150
Utility
gas
Direction Products Management 8 domains 33.1%
Honda ENVIRONMENTAL Purchased
ANNUAL REPORT 2014
electricity
64.9%
Japan INDEX >
Production

● Major water (resource) use reduction initiatives Water use


A total of 3,351,000 m3 of water was used for production in fiscal 2014, a ■ Municipal water ■ Industrial water ■ Well water 
■ Rainwater ■ Per-unit water use
17% reduction from fiscal 2011.
(1,000m3) 125 (%)
Production efficiency improved and water use declined at our production 8,000 125
100 100
operations as well as other facilities largely due to the ingenuity of our ■ CO2 排出量 ■ 四輪車生産1台当たりの
89
CO2 94
排出量原単位指数
6,400 83 100
■ 二輪車生産1台当たりの CO2 排出量原単位指数
associates. For example, associates at the Suzuka Factory developed a 5,273
138
4,800 2) 27
(万t-CO 105 100 75
(%)
new technology to analyze and control the volume of mold release agent 100


50 3,31593 3,103 943,233 3,351
3,097 3,298
3,200 100 46 50
used in the aluminum casting process, leading to substantial savings in 40
61 58 49 46
1,263 1,145 90
1,413 1,385 1,305
1,600 82 25
both energy and water. 1,472 1,272 1,316 1,370
1,229 88 1,570
87
30 35 80
677 55129 555 520 555 590
0 0



27
20 2001 2010 201124 2012 242013 2014 (FY)
70

10 60

0 0


<Water use reduction measures> ● Two mist 2008
nozzle types
■ 廃棄物等総発生量 ■ 産業廃棄物等発生量原単位指数
2010 2011 2012 2013 (年度)
(千t) (%)
143
Mold release agent used in aluminum casting cut by more than 50% 250.0 150

The aluminum casting process involves pouring molten aluminum into a 200.0 102 100 120
96
mold where it hardens to the shape of the part being cast. Prior to pour- 灯油 0.1%
150.0 ガソリン・軽油 0.8%
79 90
LPG 1.1%
ing, a release agent is sprayed on the mold to make extracting the hard-
100.0 60
87
ened part easier and also to facilitate cooling. The spray also is essential
50.0 都市ガス Narrow-angle 30
to producing parts without molding flaws. However, the temperature Wide-angle mist
nozzle: 196 33.1%157mist購入電力
153 155
nozzle: 161 000
wide-area 0 0



of a mold is not necessarily uniform throughout, so adjusting the spray uni-
2000 2009 2010
pinpoint
64.9%
2011 2012 2013 (年度)
form application application
volume solely to the hottest section leads to excess use of the agent on capability

lower-temperature sections. Using both wide- and narrow-angle nozzles improves mold
Honda's technological advances are creating the need for increasingly temperature control and prevents excessive use of release agent.

intricate parts, making mold temperature control an important area (g/m2)


● Newly
60 developed mist spray system
of innovation. The Casting Module 1 facility at the Suzuka Factory has 53.8
Existing manifold New valve
achieved pinpoint temperature control with a technology that analyzes 33.5 -integrated round manifold
Agent inlet
40
31.0 雨水活用
■ 上水 ■ 工業用水 ■ 井戸水 ■
a cast part's heat distribution and uses both wide- and narrow-angle mist 27.3
24.7
■ 水使用量原単位指数 22.2
nozzles to spray release agent matched to each section's temperature

Agent inlet
20 3)
(千m 125 (%)

gradation. Mist nozzles are notorious for clogged holes and inconsistent 8,000 125
100 100 94
spray volumes, but Honda and Honda Engineering Co., Ltd. overcame 6,400
0
89 83 100

5,273
2001 2010 2011 2012 2013 2014 (FY)
these problems by developing a patented valve-integrated manifold. 4,800 27 75

These developments reduced the volume of release agent used in the Su- Release agent flow rate 3,298 Valves
3,200 3,097 3,315inside the manifold
3,103
are
3,233 3,351
50
varies depending on 61 collectively
58 controlled.
49 46 Equal46
zuka Factory's aluminum casting process by 60% and likewise decreased the distance 1,385 between
between 1,413 distances
1,263 1,145
1,305 the inlet and
1,600 each nozzle enable a consistent 25
1,472
the amount of water used to dilute the agent. the inlet and nozzles. 1,272 1,316 1,229 1,370 1,570
0
677 551 spray rate. 520
555 555 590
0

■ Total2000
emissions ■
2009Per-unit
2010 emissions
2011 2012 2013 (年度)
(t) (%)
4,000 240
Waste generation
233

■ Zero waste and emissions 3,000


■ Total waste generation ■ Per-unit industrial waste generation 180
(1,000 t) 2,731 (%)
● Reducing waste 50.0
2,000
143
114 100 150
120
89 83 78
Honda actively practices the 3Rs (reduce, reuse, and recycle) to reduce
40.0 1,429
102 100 120
1,000 96 60
waste generated by its production activities. Production generated 972 864 811 815
30.0 795
79 90
87
171,000 tons of waste in fiscal 2014, of which 21,800 tons was industrial 0 0

20.0 2002 2010 2011 2012 2013 2014 (FY)


60
waste. This represents a 21% reduction in per-unit industrial waste from
fiscal 2011. The majority of the waste from our production activities is 10.0 30

41.3 22.9 22.6 20.8 22.5 21.8


scrap metal, which is a recyclable resource, while industrial waste from 0 0

2001 2010 2011 2012 2013 2014 (FY)


our processing activities includes oil and plastic.
( 千t)
Developing new manufacturing technology and improving product Fiscal 2014 Waste generation (including valuable resources)
yield and quality are two key elements in our constant drive to reduce Scrap metals 147.1

industrial waste. One such measure was the introduction of a new gear Waste oil 7.3
(g/m )
2

Sludge
60 5.8
cutting method at the Transmission Factory's Hamamatsu Plant. The new 53.8
Waste foundry sand 3.4
technology improves production efficiency and vastly reduces waste.1
Coating waste 33.5 1.2
40
31.0
Other 27.3 6.5
24.7 22.2
Total 171.3
20

1. Read more about the story behind Honda's new, eco-friendly gear cutting method in Case 35 of "Environmental Documentary—Honda Face."
(http://world.honda.com/environment/face)
0

2000 2009 2010 2011 2012 2013 (年度)


J37
33.1%
100 100 Purchased 94
6,400 89
electricity 83 100
5,273 64.9%
4,800 27 75
Direction Products Management 8 domains Honda ENVIRONMENTAL ANNUAL REPORT 2014
3,233 3,351

Japan
3,097 3,298 3,315 3,103
3,200 46 50
61 58 49 46
1,413 1,385 1,305 1,263 1,145
1,600 25
1,472 1,272 1,316 1,229 1,370 INDEX >
1,570
Production 0
677 551 555 520 555 590
0



2001 2010 2011 2012 2013 2014 (FY)

■ Municipal water ■ Industrial water ■ Well water 


■ Rainwater ■ Per-unit water use
■ 廃棄物等総発生量 ■ 産業廃棄物等発生量原単位指数
<Waste reduction initiatives> 125
(1,000m3)
(千t)
(%)
(%)
8,000 143 125
Reducing sludge at wastewater treatment plants 250.0
100 100 94
150

6,400 89 83 100
The creation of sludge is an inherent part of the wastewater treatment process. The Transmission
200.0
5,273 102Factory's
100 Hamamatsu
96
Plant 120
27
has adapted a unique method for reducing sludge weight: After extracting water, the sludge is transferred to special carts
4,800
150.0 79 for 90
75

3,298 3,103 3,315 3,233 3,351


additional water removal then loaded into specially designed steel drums for transport
3,200 to the disposal
3,097
61
contractor.
58
To
46
make
46 the 50
100.0 49
87 60
1,263 1,145
1,385
sludge even lighter, a wastewater treatment facility manager created a special net to extract more1,413
1,600
water more1,305
quickly. This idea 25
50.0 1,472 1,272 1,316 1,229 1,370 1,570 30
made it possible to load the sludge directly into the steel drums, which had the double effect
677 of shortening
551 555
the water
520 555
extraction
590
0 196 153 157 155 161 000 0

~~
0 0
time and reducing 7,500 kilograms of sludge annually. 2001 2010 2011 2012 2013 2014 (FY)


2000 2009 2010 2011 2012 2013 (年度)

● Reducing use of chemicals VOC emissions per unit of coated automobile


■ 廃棄物等総発生量 ■ 産業廃棄物等発生量原単位指数
body surface area
〈 VOC emissions 〉
1
(千t) (%)
143
(g/m 2)
250.0 150
A major source of VOC emissions from production is the solvents in paints 60

and coatings used in our coating facilities. In fiscal 2014, average per-unit 200.0 53.8 102 100 96
120

VOC emissions from the automobile coating process was 22.2 g/m , a 29%
2 2
150.0
40 33.5 79 90
31.0
reduction from fiscal 2011, which was achieved largely through the installa- 100.0
27.3
24.7 22.2 60
87
tion and operation of a cutting-edge coating technology at the Saitama Fac- 20
50.0 30
tory's Yorii Automobile Plant. 196 153 157 155 161 000
0 0
Compared to the previous coating technology, the Yorii Automobile Plant's new

~ ~
0 2000 2009 2010 2011 2012 2013 (年度)


coating materials (electrodeposition, base, solvents) and processing techniques 2001 2010 2011 2012 2013 2014 (FY)

have cut the Saitama Factory's VOC emissions per coated surface area by 46%.
We will continue efforts to reduce VOC emissions by improving recovery rates
for cleaning thinners, reducing inefficiencies and loss as much as possible, (g/m2)
60
and installing more efficient robotic systems. 53.8
■ Total emissions ■ Per-unit emissions
(t) (%)
40
4,000 33.5 240
31.0
<Chemical substance reduction – 1> 233 27.3
24.7 22.2
Reducing VOCs from the coating process 3,000
20
180
2,731
Optimizing the cleaning of coating robots: When paint colors are changed, thinner is2,000
used to clean114
out the
100inside of the painting 120
89 83 78
robots. Honda had been using a set amount of thinner for each cleaning, but testing0at the Suzuka Factory revealed that some

1,429
1,000 2001 2010 2011 2012 2013 2014 (FY)
colors could be effectively cleaned with less thinner. New cleaning methods were implemented using
972 the
864
amount of 60
minimum815
811 795
thinner necessary, resulting in an estimated reduction of 72 tons—equivalent to 320 steel
0
drums—of thinner used per year. 0

2002 2010 2011 2012 2013 2014 (FY)

〈 Release and transfer of PRTR3 substances 〉 Emissions of PRTR-listed substances


■ Total emissions ■ Per-unit emissions
Production released 795 tons of PRTR-listed substances to the atmo-
(t) (%)
sphere and hydrosphere in fiscal 2014, an 8% absolute decrease and 22% 4,000 240
233
per-unit decrease from fiscal 2011. The new Yorii Automobile Plant's low-
3,000 180
er solvent usage and improved processing accuracy were the chief con- 2,731
tributors to these reductions, which included a 27-ton reduction in PRTR 2,000 114 100
89 83 120
78
substances from coating materials. We will continue to actively accumu- 1,429
1,000 60
late and monitor chemical substance control data to continue reducing 972 864 811 815 795
the environmental impact of our production processes. 0 0

2002 2010 2011 2012 2013 2014 (FY)

<Chemical substance reduction – 2>


PRTR-listed substance reduced by using waste gasoline from exhaust gas testing vehicles
Gasoline remaining in the fuel tanks of finished automobiles used for exhaust gas testing
cannot be used for subsequent tests, so we had previously disposed of the gas. However,
finding a better way to handle the gas has been a major priority in recent years because
the waste gas was the source of nearly all PRTR substances monitored by the Quality
Assurance Division, which conducts the tests. After verifying the amount and quality of
gasoline required for use at our business sites, it was determined that the waste gasoline
could be effectively used for on-site vehicles at the neighboring plant. Reusing the waste
gas produced savings equivalent to full gas tanks for some 350 Fit vehicles, as well as
lowering PRTR substance emissions from the reduction in purchased gas.

1. Volatile Organic Compounds: Organic substances that cause photochemical smog and are commonly used in the solvents of paints and thinners.
2. Calculated using a formula agreed upon by members of the Japan Automobile Manufacturers Association. Inc. ( JAMA).
3. A PRTR (Pollutant Release and Transfer Register) is a national or regional database of information on the environmental release and off-site transfer of
potentially hazardous chemical substances from industrial and other facilities. J38
15
■ 廃棄物等発生量 ■ 廃棄物等発生量原単位指数
15.8 60
15.0 15.2
( t 10
) 100 12.5 (%)
40
11.3
15,000 100
Direction Products Management 8 domains Honda
5 ENVIRONMENTAL
76 ANNUAL REPORT 2014
20
■ 廃棄物等発生量 ■ 廃棄物等発生量原単位指数

Japan
12,000 64 80
0 0



(t) 100 59 62 (%)
2000
10,765 2008
12,781 2009 2010 2011 (年度)
15,000
9,000 100
60
76 10,997 INDEX >
11,206
Production 12,000
6,000
10,443
62 64 80
40
59
10,765 12,781
9,000
3,000 60
20
10,997 11,206
10,443
■ 水資源使用量 ■ 水資源使用量原単位指数
6,000 40
0 0



( 千㎥)2000
100 2008 2009 2010 2011(年度)
(%)
Honda Engineering Co., Ltd. 3,000
2,000 20
100
77
0 0



1,500 2000 2008 2009 2010
62 65 (年度)
2011 75
● Energy and resource conservation 57
CO2 emissions 1,412
1,217 1,257
Honda Engineering achieved a 40% reduction in per-unit CO2 emissions in ■1,000 1,183
Total CO 2 emissions ■ Per-unit
1,116CO2 emissions 50

fiscal 2014 from fiscal 2001, far exceeding its 15% target, through a variety of (t-CO2) 100 (%)
25,000
500 100
25 ホンダ
energy conservation efforts. 83 81
■ Total CO2 emissions ■ Per-unit CO2 emissions
20,000 80
Energy conservation measures adopted to achieve this target included the in- 0 0



(t-CO2) 100 19,500 60 60 (%)
2000 2008 18,500
2009 2010 2011(年度)
stallation of additional solar panels, the suspension of power to certain waste- 25,000
15,000 100
60 ホンダ
83 81 44
14,000 13,800 14,200
water treatment equipment, energy saved with an ozone treatment system, 20,000
10,000 80
40
19,500 10,500 60 60
and the use of specific settings for each HVAC system. 18,500
15,000
5,000 60
20
44
Aside from hardware, the company also conducted an energy conservation 14,000 13,800 14,200
■ 廃棄物等発生量 ■ 廃棄物等発生量原単位指数
10,000 40
0 0



poster campaign, distributed a computer desktop wallpaper with text remind- ( t ) 2001
100
10,500
2010 2011 2012 2013 2014 (FY)
(%)
5,000 20
ing associates to save energy, organized energy conservation patrols, and 15,000
*0.378 t-CO2/MWh was used as a fixed CO2 emissions factor
100
76
implemented demand suppression controls to ensure ongoing environmental for electricity
0
12,000 across all years 0
80



64
2001 2010 2011 592012 62
2013 2014 (FY)
awareness. The company also held a Honda Engineering Green Conference and 10,765 12,781
9,000 60
displayed posters for the Honda Green Conference for the entire Honda Group ■ Total water use  ■ Per-unit 10,997
water use 11,206
10,443
6,000 40
as an awareness-raising activity. Honda Engineering is currently exploring ( ㎥) (%)
Water
120,000 use
3,000
160
20
options for introducing alternative energy technologies. It sent environmental
■ Total water use  ■ Per-unit water use
representatives from each department to study examples of energy monitoring 90,000
0 100 120
0



( ㎥) 100 (%)
2000 2008 2009 2010
82 2011(年度)
and conservation at the electrical appliance facility of another company in or- 120,000
73 69
160
60,000 80
der to gather information about new trends in technology. 61,300
57,600
90,000 100 100 47,400 120
41,400
As a resource conservation measure, the company is promoting the effective 30,000 82 39,700 40
73 69
use of water resources. Honda Engineering achieved a 31% reduction in per- 60,000
61,300
80
■ Total CO 2 emissions ■ Per-unit CO 2 emissions
57,600
0 0
unit water use in fiscal 2014 from fiscal 2011, exceeding its 22% target. 41,400 47,400
2010
(t-CO2) 100 2011 2012 2013 2014 (FY)
(%)
30,000 39,700 40
25,000 100 ホンダ
In fiscal 2014, the company established measures and made daily efforts to 83 81
reduce the volume of municipal (potable) water purchases. It achieved a re- 0
20,000 080
2010 2011
19,500 2012 2013 60 2014
60 (FY)
duction through installing more flow restrictors in faucet heads and individual 15,000
18,500
60
44
water regulation valves in kitchens. ■ Total waste
14,000 generation ■ Per-unit waste13,800
generation
14,200
10,000 102 100 40
(t) 100 10,500
The company also is making progress in water recycling. It completed a sew-
2,000 100
5,000 20
age recycling system in 2007, and installed an advanced RO membrane2-based ■ Total wasterecycling
generation ■ Per-unit waste generation
Rainwater
1,800 1,880 process
75
80
1,840
wastewater treatment system in 2008, allowing on-site sewage and industrial 0 1,800
100 102 100
1,790 0

(t)
2001 2010 2011 2012 2013 2014 (FY)
2,000 100
wastewater that was previously treated and discharged to be processed and re- 1,600 60

1,880 75
used. Introducing this system has enabled all municipal water used on site to
3 1,800
1,400 1,840 80
40
1,800
Sewage 1,790
1,340
be reused as industrial water. 1,600
1,200
Oil treatment Industrial 60
20
separator facilities water tank
In previous years, high summer temperatures increased demand for industrial water, ■


Total water use  ■ Per-unit water use
1,4000 40
0
which could not be met by recycled water alone and required supplementation ( ㎥)Collect
2010 2011 1,340Store water
Remove 2012 2013 Reuse (FY)
2014 in
(%)
rainwater
1,200
120,000 impurities in tank equipment
20
160
through the use of municipal (potable) water. In fiscal 2014, the company ef- ~ Rainwater is drawn from the
fectively utilized rainwater to reduce water needs during this season. Rain that 0
90,000
reservoir and used when
120
0
2010
100 2011
100 2012 2013
there is 2014
insufficient (FY)
sewage
falls on roads on-site and on the roof of the disaster prevention center is now stored or industrial
82 wastewater for
73recycling 69
60,000 80
in an industrial water tank with recycled water. The rainwater from this tank is sent 61,300
57,600
Rainfall on the disaster41,400 47,400
prevention
to wastewater treatment facilities, where impurities are removed and it is turned into
30,000
center roof is sent to reservoir 39,700 40
recycled water. Through this initiative, the company achieved zero supplementation
of municipal water throughout the year, contributing to a further reduction in the 0 0
2010 2011 2012 2013 2014 (FY)
amount of municipal water purchases.

● Zero waste and emissions Waste generation


Honda Engineering met its target to reduce per-unit waste generation by 3% ■ Total waste generation ■ Per-unit waste generation

in fiscal 2014 from fiscal 2011. Although the company implemented measures (t) 100 102 100
2,000 100
to reduce oil-bearing industrial waste liquids as well as waste oil from water-
1,880 75
soluble and oil-based cutting fluids using concentration equipment, generation 1,800
1,800
1,840
1,790
80

of these waste liquids increased because the amount of liquid that needed 1,600 60

to be processed within a given timeframe was more than originally planned,


1,400 40
requiring some liquids to be processed off-site. 1,340
1,200 20
Currently, the company is stepping up efforts to sell waste as a resource. The focus ~
0 0
is on scrap metal and paper, but waste oils and resins also are being targeted. These 2010 2011 2012 2013 2014 (FY)
materials are separated and then disposed of by sale. As a result, the company
achieved a 100% recycling rate, with 49% being sold for cost recovery.
1. See page J04 to learn more about the Honda Green Conference. Initiatives presented at the 2013 conference are described in detail in the December 24,
2013, article of Environmental TOPICS. http://www.honda.co.jp/environment/topics/topics25.html (in Japanese)
2. Reverse osmosis membrane: a membrane that allows only water to pass through, thereby removing ions, salts, and other impurities
3. Read more about environmental impact reduction efforts in the purchasing domain in Case 28 of "Environmental Documentary—Honda Face." J39
(http://world.honda.com/environment/face)
Direction Products Management 8 domains Honda ENVIRONMENTAL ANNUAL REPORT 2014

Japan INDEX >

Honda makes continuous efforts to improve the effi-


ciency of transportation in its operations by promot-
ing modal shifts to ship and rail and by increasing
consolidated shipping with other companies. We also

Transportation
are developing environmental management systems
jointly with transportation companies and promoting
"green logistics" from various approaches, including
reducing the amount of packaging materials we use
by simplifying packaging, changing packaging ma-
terials and specifications, and increasing the use of
returnable containers.

Discussion Executive officer × Operating manager × Associate

Aiming to be an environmental frontrunner


in all areas of the supply chain

Masahiro Sekiya Ko Katayama Hiroyuki Yoshihara


Products Logistics Division, Head of Supply Chain Management Supervisory Unit General Manager,
Supply Chain Management Supervisory Unit Supply Chain Management Planning Office,
Supply Chain Management Supervisory Unit

A year of testing and validating measures for global application


In the transportation domain, what are Honda's long-term or constant environmental goals?
What efforts were made in fiscal 2014 in pursuit of these goals?

● Katayama: The Supply Chain Management Supervisory Unit, a new organization launched just last year, holds as its
core mission to "become an environmental frontrunner in transportation in all areas of the supply chain." Social interest in
environmental responsibility has spread to the transportation domain in recent years, so even associates who are involved
in the daily movement of goods have a strong awareness of the connection between their work and the environment. For
the transportation domain, fiscal 2014 was a year of testing and validating measures we hope to expand globally in line
with Honda's corporate agenda of becoming a truly global company. We tested—and got promising results from—a variety
of measures, including those aimed at increasing load factors, a measure of how efficiently containers are loaded; and
implementing modal shifts from truck to rail or marine transport.

J40
Direction Products Management 8 domains Honda ENVIRONMENTAL ANNUAL REPORT 2014

Japan INDEX >


Transportation

Yoshihara: Other long-term objectives include improving transport efficiency and


using less packaging. Objectives like these aren't reached overnight; they require a
long period of patient, consistent effort before we start to see some results. We can-
not expect immediate game-changing results from any of the tests we did in fiscal
2014, but they do set the foundation for future progress. I must say, though, the rail
transport trial for finished automobiles offered some very positive results.

Sekiya: Our division manages the transport of finished vehicles, which has always
claimed the largest share of CO2 emissions from the transportation domain. Given
our understanding of group-level policies and the universal mission of cutting envi-
ronmental impacts, we knew we had to devise some practical solutions. So as part
of our modal shift initiative, we tried switching to rail transport for the shipment of
mini-vehicles produced by the Suzuka Factory from Kyoto to Niigata. The results
were compelling.
Ko Katayama
Head of Supply Chain Management Supervisory
Unit

All solutions worth sharing are born


from an honest look at daily operations

What will be your policy or course of action at the start of the new mid-term that begins
in fiscal 2015? How will front-line associates execute this?

Katayama: There's no change to our mission of becoming an environmental frontrun-


ner. That said, we hope to increasingly implement the measures we've been testing on
a global scale. However, conditions vary widely around the world, so not all measures
can be applied to other regions without modification. We need to dig deeper about
finding solutions, which is going to be a big challenge.

Yoshihara: It's equally important that we keep making steady reductions in environ-
mental impact according to our long-term vision. For example, we have a target to
Hiroyuki Yoshihara
General Manager, reduce CO2 emissions by 1% each year, but the launch of the Yorii Automobile Plant
Supply Chain Management Planning Office,
Supply Chain Management Supervisory Unit in 2013 has increased production volumes and trucking distances; a 1% across-the-
board cut will be tough given these circumstances, but we want to push forward and
hit our target anyway.

Sekiya: Based on such guidance from our leaders, as a manager in charge of opera-
tions I want to put more ideas into action and start generating tangible results. One
plan we have to reduce trucking distance and CO2 emissions is to ship products to
the Tohoku area by way of Hachinohe Port, not just Sendai Port. There are cost and
delivery hurdles to overcome, but I want to implement this plan soon.

Katayama: Such a high level of awareness among our operating staff is reassuring. The
next three-year mid-term will be about realizing our vision to be a truly globalized
company. We want to be the company that each region needs and wants to exist, and
to do that we need to implement reform based on what associates "on the ground" ob-
serve in their daily operations. If they can take an honest look at what's happening in
their work, identify the problems, and turn those problems into solutions, we'll have
something valuable we can share with the world. Let's aim to be an environmental
frontrunner as one team, involving associates at all levels of the organization.
Masahiro Sekiya
Products Logistics Division,
Supply Chain Management Supervisory Unit
Experimented with rail transport of finished
automobiles in FY2014

J41
Direction Products Management 8 domains Honda ENVIRONMENTAL ANNUAL REPORT 2014

Japan INDEX >


Transportation

CO2 emissions from transportation


■ Increase transportation efficiency ■ Automobiles ■ Motorcycles ■ Power products ■ Service parts
■ Component parts sets1 ■ Between factories ■ Other ■ Parts picked up by Honda
In fiscal 2014, CO2 emissions from the transportation of automobiles,
Per-unit CO2 emissions from transportation
motorcycles, power products, and service parts in Japan totaled 99,228 ■ Finished vehicles plus component parts sets ■ Total of all shipments

t-CO2. Japan's revised Energy Conservation Act, which took effect in April (t-CO2) (g-CO2/t-km)
100,000
2006, requires companies that ship 30 million ton-kilometers (weight of
shipments in tons multiplied by distance shipped in kilometers) of cargo or
more a year to make efforts to reduce energy consumption in transportation. 32,760
80,000 160
To fulfill our responsibilities as a high-volume shipper under this regulation, 491

we are working to improve efficiency in the transportation of finished 5,424 524 548
572
3,587 469
4,325 3,776 4,472
vehicles and equipment, service parts, and parts shipped between factories, 60,000 4,093 3,540 4,477 4,311 120
3,828
and have also started to introduce a new approach for parts delivery. 115
109
20,609 111
19,738 106 103 17,277
87 18,440 18,180
82 76
● Picking up parts from suppliers 79 79
40,000 2,377 80
Many of the parts that make up Honda products are sourced from suppliers. 3,356 1,637 1,661 1,346 471
3,541
3,293 3,792 3,607
The conventional method of gathering these parts has been to have each
supplier ship its parts to Honda production facilities. In fiscal 2014 we 20,000 40
36,605 31,448 30,373 32,454 35,824
started to introduce a new logistics approach in which Honda trucks travel
to suppliers to pick up the parts. This method gives us more control in
transportation and has also allowed us to improve transport efficiency. 0 0
2010 2011 2012 2013 2014 (FY)

● Initiatives for transport of finished automobiles *The latest CO2 emissions factor based on Japan's Energy Conservation
Act was used for calculations each year

We continue to drive improvements in average fuel efficiency by Modal shift expansion Rail transport introduction
encouraging partner companies that transport finished automobiles to
practice eco-driving and to switch to new types of trailers. In fiscal 2014, ■ CO2 排出量 ■ CO2Hachinohe
排出量原単位指数
Hachinohe
Port
Niigata
Niigata Station
Station
(t-CO2) 42,200 Port
we expanded the utilization rate of coastal shipping2 to 69% as a result 40,000
(%)
100
100
of increased domestic production, contributing to a further reduction in
30,000 Ground transport Suzuka
Suzuka Factory 75
Factory
Ground transport
CO2 emissions. We also tried new transportation methods using rail in Kyoto
Kyoto Station
Station Truck
Truck transport
transport
20,600 19,700 Kyoto Station freight terminal
addition to existing transportation modes (marine/ground).
Kyoto Station freight terminal
20,000 Marine
Marine transport
transport 18,400 18,200 50
17,300
Rail
Rail transport
transport
Sendai
Sendai PortPort
49 Niigata Station freight terminal
47 Suzuka
Suzuka Niigata Station freight terminal

● Initiatives for transport of finished motorcycles 10,000 44 Factory


Factory 43
Truck transport
Truck 25
42 transport
Niigata sales company
Niigata sales company

In the transportation of finished motorcycles, we have been working


0 Hachinohe Port helped
Adding Tested rail for movement 0 of

2000 2009 2010 2011 2012 2013 (年度)


with our logistics partners to reorganize shipping zones and change shorten trucking distance and finished vehicles from Kyoto to
reduce CO2 emissions Niigata
shipment frequency according to market conditions. The result has
been a major improvement in the loading efficiency of each truck and Transport routes covered by CO2 emissions calculations

a reduction in total distance traveled. Since November 2008, we have ■ Finished automobiles
■ CO2 排出量 ■ CO2 排出量原単位指数
reduced CO2 emissions from truck transport by using the Tokyo and Kobe (t-CO2)
10,000 Export/import port (%)
100
ports instead of the Nagoya port for imported motorcycles from China, 100
Factory

bringing shipments closer to major markets in the Kanto and Kansai 7,500
80
75
Product management center Sales company
73
regions. In July 2013 we expanded this method to include motorcycles
5,000 55 52 50
5,080 51
from Thailand and Vietnam, which shortened trucking distance further, 4,130
Dispatch
port
Receiving
port Commercial product
3,730 management center
External
leading to a major reduction in CO2 emissions. 2,500 warehouse 2,790 2,670 2,590
25

■ Finished motorcycles
● Initiatives for the transport of service parts 0 0

2000 2009 2010 2011 2012 2013 (年度)


In fiscal 2014, we cut annual CO2 emissions from the transport of service Export/
import port
Rail terminal

Rail terminal

parts by two percentage points. We did this by revising transport routes


Factory

and enhancing the loading efficiency of returnable containers, which had Distribution Sales
Distribution center
center company
the effect of reducing the number of truck shipments. For example, while (%)
100 Transit terminal
we previously shipped bumpers fabricated in-house (in Saitama) to the 100
External
Suzuka Distribution Center by way of Tokorozawa, in September 2013 warehouse Port Port
75

we stopped making the transfer at Tokorozawa and switched to a direct ■ Power products
50
46 48 47
50
route. We also reduced the transport distance by consolidating Honda's 30

remote warehouses and revising drop-off routes from the Suzuka


25 Factory Dealer
Warehouse

Distribution Center to these warehouses. 0 Contract


OEM (年度)

factory
2000 2009 2010 2011 2012 2013
terminal

terminal

In fiscal 2015, we will aim to make further improvements in transport


Rail

Rail

Import port Export port


efficiency by revamping distribution between East and West Japan.

1. Sets of parts exported for final assembly in the product's target market
2. Freighters that carry cargo in Japanese coastal waters

■ 包装資材使用量 ■ 包装資材使用量原単位指数
(t) (%)
J42
40,000 100
100

75
19,738
3,293 106
79 103
79 3,541
17,277 3,541
17,277
100,000 87 3,792
18,440 3,607
40,000 82
2,377 18,180 76 76 80
3,356 79 79 471 471
40,000 1,637
2,377 1,661 1,346 80
3,293 3,541 3,541
3,356 3,792 3,607 471 471
1,637 1,661 1,346
Direction Products Management 8 domains 20,000
Honda ENVIRONMENTAL
36,605 3,293 30,373
31,448
3,541
ANNUAL
3,607
3,792 32,454
3,541
35,824REPORT
40
35,824 2014

80,000
20,000
20,000
36,605
491
36,605
31,448
31,448
30,373
30,373
32,760
32,454
32,454
Japan
35,824
35,824
35,824
160
40
40
35,824INDEX >
5,424 548 572
Transportation 0
2009
3,587
524
2010 469
2011 2012 2013
3,238 2013
0
572
3,238 (年度)
4,325 3,776
60,000 4,093 3,540 4,477 4,311 4,311 120
0 0
3,828
0 2009
115 2010 2011 2012 2013 2013 (年度)
0
20,609 111 109 109
2009 2010 2011
106 2012
103 2013
17,277
2013
17,277 (年度)
87 19,738
82 18,440 18,180 76 76
● Conserving energy at warehouses CO2 emissions from transportation
79 79 of service parts
40,000 2,377 80
At the Suzuka Distribution Center, we reduced total CO2 emissions by ■ Total CO3,356
2 emissions ■ Per-unit
1,637 emissions 471
1,661 CO21,346 3,541
471
3,541
(t-CO2) 42,200 3,293 3,792 3,607
one percentage point by instructing workers to use shelf and aisle light- 40,000
(%)
100
■ Total CO2 emissions ■ Per-unit CO2 emissions
100
ing only when necessary. One project planned for fiscal 2015 is to reduce (t-CO
20,000
2)
■ Total 42,200
CO2 emissions ■ Per-unit CO2 emissions
(%)
40
40,000
2) 36,605 30,373 32,454 35,824 35,824 100
30,000
(t-CO 42,200 31,448 75
annual CO2 emissions by 7% by consolidating all of the receipt/delivery 40,000 100 (%)
100
100 20,600 19,700
and storage capabilities of the Kameyama Distribution Center for motor- 30,000
20,000 18,400 18,200
17,300
75
50
30,000 75
cycle parts and accessories at the Suzuka Distribution Center, planned to 0
49
20,600 19,700
47
18,400
0
20,000
10,000 44 18,200
43 50
25
2009 2010
20,600 2011
19,700 2012 2013 2013
41 (年度)
17,300
take place in September 2014. 20,000
49
18,400 18,200
17,300
50
47
10,000
0 44 43 41 25
0
49



2001 2010 47
2011 2012 2013 2014 (FY)
10,000 44 43 41 25
■Use less packaging *Marine
0 transport excluded as per the revised 0

~ ~
2001 2010 2011 2012 2013 2014 (FY)
0 0
1
● Initiatives for packaging of component parts sets 2001
■ Total CO 2010 2011 2012 2013
2 emissions ■ Per-unit CO2 emissions
2014 (FY)

(t-CO2) 42,200
In fiscal 2014, we took steps to reduce packaging weight and expand 40,000
(%)
100
2 emissions
■ Total CO100 ■ Per-unit CO2 emissions
the application of exterior and interior returnable packaging. To reduce CO2 2emissions
(t-CO ) from warehouses
(%)
30,000
10,000 75
100
packaging weight, we increased the use of lightweight corrugated liner- ■ Total CO2 emissions ■ Per-unit CO2 emissions
100
(t-CO2) 20,600
■ Total CO2 emissions ■ Per-unit
19,700CO2 emissions
board and used thinner polyethylene sheets for wrapping parts. 10,000
20,000
7,500
(t-CO 2)
18,400 18,200
17,300
(%)
100
50
75
80 (%)
10,000 100 73 100
49
100 47
7,500
10,000
5,000 44
55 43 41 75
25
50
5,080 80 52 51
7,500 73 75
170g/m2 ⇒ 150g/m2 4,130
80 3,730
Introduced lighter corrugated 5,000
2,5000 73 55 50
0
25


5,080 2,790 52
2,670 51
2,610
2001 2010 2011 2012 2013 2014 (FY)
linerboard without sacrificing 5,000 4,130 55 52 51 50
5,080 3,730
strength 2,500
0 4,130 25
0
2,790 2,670


3,730 2,610
2001 2010 2011 2012 2013 2014 (FY)
2,500 2,790 2,670 25
2,610
0 0

~ ~
2001 2010 2011 2012 2013 2014 (FY)
0 0
2001
*Historical figures2010
have 2011 adjusted
been 2012 to2013
reflect 2014
changes in
(FY)
120g/m2 ⇒ 90g/m2 ■ Total CO2 emissions ■ Per-unit CO2 emissions
Introduced lighter corrugating medium data2)
(t-CO collection.
(%)
10,000 100
without sacrificing strength
(%) 100
100
100
7,500 75
80
Packaging
(%) use per unit of
73
component parts set
100
We also expanded the use of exterior returnable containers at certain (%)
75
100
5,000100 55 52 51 50
5,080
100 50 48
locations in North America and expanded the use of interior returnable 50
75
4,130 46
3,730
47
2,500 2,790 2,670 30 25
2,610
containers in various locations across North America, South America, 75 50
46 48 47
25
50
50
Asia, and China. We also started supplying, on a trial basis, certain parts 0 46 48 47 30 0

50 2001 2010 2011 2012 2013 2014 (FY)


0
25 30

without exterior returnable containers to automobile production centers 2001 2010 2011 2012 2013 2014 (FY)
25
in Europe. 0
~ ~

2001 2010 2011 2012 2013 2014 (FY)


0

2001 2010 2011 2012 2013 2014 (FY)

(%)
100
100

Reduction in packaging
■ Total packaging material use material
■ Per-unitused for component
packaging material use
parts
( t75
) sets2 (%)
40,000 100
■ Total packaging50
material use 48 packaging
100 Type 46 ■ Per-unit
of material 47 material use
Reduction
( t50
) (%)
■ Total packaging material use ■ Per-unit packaging material use
30
40,000
30,000
(t) Steel 305 t 100
75
100 (%)
25
40,000 73 100

30,000
20,000
Corrugated
100 paperboard
63 213t 75
50
59
0 19,200 53

30,000 73 47 75
New interior returnable containers 2001 2010by replacing
2011 2012 2013 2014 with
(FY)
2. Made possible14,100
73 63 disposable packaging
without need for an exterior container 20,000
10,000 12,000 59
11,400 10,100
50
25
returnable packaging.
19,200 63 53 9,000
20,000 59 47 50
19,200 14,100 53
10,000
0 12,000 47 25
0
11,400 10,100
● Initiatives for packaging of service parts 10,000 2009 14,100
2010 2011
12,000
2012
11,400
2013
10,100
9,000
2014 (FY)
25
9,000
In fiscal 2014, we reduced corrugated paperboard use by approximately 0
Packaging material
0
2009 2010used for service
2011 2012 parts
2013 2014 (FY)
0 0
10,000 tons compared to fiscal 2009 levels, by applying the improved 2009 2010 2011 2012 2013 2014 (FY)
■ Total packaging material use ■ Per-unit packaging material use
packaging method, we had developed in fiscal 2013 for bumpers, a part (t)
40,000
(%)
100

with high demand. With the new method, we switched from wrapping 100

30,000 75
the bumpers in laminated foam sheets and packing them in paper-
73
board to wrapping them only in Miracloth sheets and storing them in 20,000
63
59 50
19,200 53
returnable containers. In fiscal 2015, we will continue efforts to reduce 14,100
47

10,000 12,000 11,400 10,100 25


packaging use by advancing initiatives to develop simpler packaging for 9,000

large sheet-metal parts and recycle exterior containers used for smaller 0 0
2009 2010 2011 2012 2013 2014 (FY)
sheet-metal parts.

1. Sets of parts exported for final assembly in the product's target market

J43
Direction Products Management 8 domains Honda ENVIRONMENTAL ANNUAL REPORT 2014

Japan INDEX >

To promote environmental conservation in sales and


services, Honda provides its sales companies with

Sales and continuous support for implementing Green Deal-


er initiatives. By taking concrete steps to meet the

Service
needs of today, our goal is to cultivate dealerships
that demonstrate environmental leadership, bringing
enhanced value to the customers and communities
they serve.

Discussion Executive Officer × Operating Manager × Associate

Taking dealer initiatives to the next level in


environmental leadership

Shigenori Kaneko Sho Minekawa Tomokazu Abe


President, Chief Operating Officer, General Manager,
Honda Cars Tokyo-Chuo, INC. Regional Operations (Japan) Environmental Promotion Center,
Regional Operation Planning Office (Japan)

Leadership customers can see

In the sales and service domain, what are Honda's long-term or constant environmental goals?
What efforts were made in fiscal 2014 in pursuit of these goals?

Minekawa: In the sales and service domain, we have always endeavored to support all our dealers—automobiles, motorcy-
cles, and power products alike—to become environmental leaders. Customers' preference for environmentally sustainable
products has risen dramatically in recent years, and the environmental performance of our dealerships has become another
important determinant of purchasing decisions. That is why we not only need to further cut impacts at dealers but also clearly
signal to customers that we are a company that is doing this important work, and that our dealerships are also on board. In
that sense, installing solar panels at dealerships sends a clear message to customers, while also providing substantial benefits.

J44
Direction Products Management 8 domains Honda ENVIRONMENTAL ANNUAL REPORT 2014

Japan
INDEX >
Sales and Service

Abe: The convenient thing about solar panels is that you can display real-time pow-
er generation information on a monitor inside the dealership. We have actually done
just that: by the end of fiscal 2014 we finished installing solar panels at 162 outlets
nationwide,1 greatly exceeding our target of 100 outlets. We received a very enthusi-
astic response from dealers wanting to have the panels installed. Dealers must have
begun to grasp the importance of communicating environmental efforts to custom-
ers, and the effectiveness of solar panels as a tool for doing that. It is another way
this initiative is paying us back.

Kaneko: At Honda Cars Tokyo-Chuo, we have installed solar panels at 13 locations,


and they are certainly grabbing people's attention. Our associates, who interact with
customers on a daily basis, are most sensitive to these changes in awareness, and
their own awareness has grown remarkably as a result. For example, a good number
of associates have voluntarily switched to commuting by bicycle. I think that is a sign
Sho Minekawa
that they are not taking action for the environment based on my instruction, but on Chief Operating Officer,
their own initiative. Regional Operations (Japan)

Pursuing operational efficiency leads to


reduced environmental impact
What will be your policy or course of action at the start of the new mid-term that begins
in fiscal 2015? How will front-line associates execute this?

Minekawa: This mid-term, Honda launched a new headquarters for Japan Opera-
tions and is hoping to grow these operations one size larger, so to speak. In sales and
service, this means expanding our sales network and boosting sales volumes. Envi-
ronmentally speaking, it means increasing the number of green dealers by introduc-
ing the next generation of energy-saving solutions to new and existing outlets.

Abe: One practical way to do that is to get more information to our dealers so they
can improve their methods. Through our environmental officers—associates who
Tomokazu Abe
General Manager, oversee comprehensive environmental management at dealers—we will actively
Environmental Promotion Center,
Regional Operation Planning Office (Japan)
share best practices related to carbon emissions, water resources, and waste, espe-
cially measures presented at the Honda Green Conference. 2 Doing this should en-
able each dealer to refine its initiatives and execute them more effectively.

Kaneko: At Honda Cars Tokyo-Chuo, we have announced an environmental decla-


ration that commits us to reducing CO2 emissions by 3% year over year. It is by no
means an easy target, but our associates are very aware of the environment as I said
before, and by pooling ideas I think we can cut enough waste to meet it.

Minekawa: With Honda aiming for truly globalized operations, I actually think the
sales and service division has enormous potential even though it is more rooted in
the local situation and culture than other domains. The advanced sales know-how
and environmental solutions we develop at dealers in Japan will someday serve as
a global model. That is why I think our sales and service staff should approach their
work with the self-confidence and awareness that they are truly working at the glob-
al forefront of their fields. I think it will be their persistent efforts that carry Honda's
sales and service domain to the next level.

Shigenori Kaneko
President,
Honda Cars Tokyo-Chuo, INC.

1. As of March 31, 2014


2. See page J04 to learn more about Honda Green Conference.
Initiatives presented at the 2013 conference are described in detail in the December 24, 2013, article of Environmental TOPICS.
http://www.honda.co.jp/environment/topics/topics25.html (in Japanese) J45
Direction Products Management 8 domains Honda ENVIRONMENTAL ANNUAL REPORT 2014

Japan INDEX >


Sales and Services

■ CO2 emissions reductions at sales companies CO2 emissions from sales companies
■ Total CO2 emissions  Per-unit CO2 emissions
Honda dealers monitor their CO2 emissions on a per-unit basis. Although ■ Motorcycle ■ Automobile ■ Power Product
total emissions rose in fiscal 2014 due to increased sales activities and (t-co2)
80,000 120
the opening of new automobile sales outlets, all motorcycle, automobile,
106 100
and power product sales companies managed to keep their per-unit CO2 101
60,000 100
99
emissions below fiscal 2011 levels. 91 90
87 84
Motorcycle, automobile, and power product dealerships are implement- 40,000
87 83
83 82 83 80
ing Honda Green Action Programs to promote environmental action on
1

~ ~

69,000 69,800 62,900 66,300 67,700
an individual level. Associates share with customers the eco-driving tech- 0 0
2010 2011 2012 2013 2014 (FY)
niques and other forms of eco-etiquette they practice themselves, while
*0.378 t-CO2/MWh was used as a fixed CO2 emissions factor
workplace efforts to reduce CO2 emissions are awarded at a triennial do- for electricity across all years
main conference2 to promote the spread and adoption of best practices. *Historical figures have been adjusted to reflect a change in
the scope of data.

● Initiatives by motorcycle sales companies


Initiatives by motorcycle sales companies
The Japanese motorcycle wholesaler Honda Motorcycle Japan Co., Ltd. (5
outlets) and seven consolidated motorcycle sales companies (55 outlets)
made efforts to maintain environmental awareness through continued
participation in the Environmental Etiquette program3 and through quar-
terly self-assessments conducted at their respective outlets. In addition,
an environmental slogan component was added to the environmental
poster design contest started in fiscal 2012 and was conducted with con-
solidated motorcycle sales companies to raise awareness among staff.
The 20 motorcycle sales outlets that introduced power demand systems
during the previous year worked to conserve energy by raising awareness
and calling on staff to save electricity. The companies are also reducing Switched to LED lighting at dealerships

their environmental impact by installing LED lighting at new outlets,


among other actions. Initiatives by automobile sales companies

● Initiatives by automobile sales companies


All dealers participate every year in the Environmental Etiquette pro-
gram, and realize further reductions in CO2 emissions through staff edu-
cation. Awareness was raised further in fiscal 2014 through the soliciting
of poster designs and slogans on the areas for improvement identified in
the environmental etiquette survey, and through the display of outstand-
2013 Environmental Etiquette Poster Contest: Winning Designs
ing submissions on company walls. To further reduce CO2 emissions
from automobile sales companies in Japan, we set a target to install one
megawatt of photovoltaic generation capacity distributed across 100 2013 Environmental Slogan Contest: Winning Slogans

dealers nationwide. By the end of fiscal 2014, we completed the instal- 5 areas for improvement in the
Winning slogans
Environmental Etiquette survey
lation of 1.8 MW at 162 dealers (1.3 MW at 119 dealers in the previous
1. Close laptop screen Stepping out?
fiscal year), exceeding our initial target. when away from your desk Close the laptop and use an i-Pad.
A history of power generation performance at Honda dealers is available
2. Switch off mobile-phone
on the Honda website (in Japanese).4 Turn it off. Every time—Let's cut
chargers when away from
your desk for long periods CO2 emissions steadily

● Initiatives by power product sales companies 3. Use a handkerchief or a Save resources: Carry your own
towel after washing hands hand towel everywhere.
Two consolidated power product sales companies are working to re-
4. Turn off desktop
duce CO2 emissions at their eight outlets through further efforts to raise devices when
Done for the day? Turn off the lights
for a restful evening.
awareness among staff and continued participation in the Environmen- leaving work

tal Etiquette program. Also, exemplary environmental practices in the 5. Thermostat settings A small change for a bright future
service department of individual outlets are shared on an ongoing basis
among 180 preferred authorized dealers (206 outlets) and 116 service
network dealers (131 outlets) to show them ways that they can improve
environmental performance.

1. For more information, see page J22 "Environmental Education." 2. An initiative to encourage energy conservation through simple day-to-day actions,
3. See page J04 to learn more about Honda Green Conference. Initiatives presented at the 2013 conference are described in detail in the December 24,
2013, article of Environmental TOPICS. http://www.honda.co.jp/environment/topics/topics25.html (in Japanese)
4. http://www.honda.co.jp/solar-power/ (in Japanese) J46
1,230 1,250
1,000 50
1,020 1,010 1,010

Direction Products Management 8 domains 500


Honda ENVIRONMENTAL ANNUAL REPORT 2014
25

0
Japan 0



2001 2010 2011 2012 2013 2014 (FY)
INDEX >
Sales and Services

■ Total waste generation  Per-unit waste generation


Honda Access Corporation CO2 emissions
( tTotal
■ ) 100
CO 2 emissions  Per-unit CO2 emissions ホン
■ 500
Total
(t-CO CO2 emissions 
2) 100
Per-unit CO2 emissions 100
(%) ホン
■ Total CO2 emissions  Per-unit CO2 emissions ホン
2,000
(t-CO 2) 100 100
(%)
■ Energy conservation 400
(t-CO2) 100
2,000
430 69
62 64 64 67 80
(%)
100
2,000 72 72 100
300
1,500 1,620 60
75
72 72
Honda Access Corporation1 set a target for fiscal 2014 to reduce per- 1,500 1,620 72 72
59 59
261
59
328
75
1,500
200 1,620 1,250 59 59 59 75
40
1,230
219 59 59 59
unit CO2 emissions by 20% from the fiscal 2001 base year. It exceeded 1,000
1,230
195
1,250
202
1,020 1,010 1,010
50
1,000
100 1,230 1,250 50
20
1,000 1,020 1,010 1,010
target achieving a 41% reduction. The company took several steps to 500 1,020 1,010 1,010
50
25
0 0



500 25
accomplish its objective including installing a 27 kW solar panel system 500 2001 2010 2011 2012 2013 2014 (FY)
25
0 0

~ ~

and reducing energy used for lighting by redesigning its office lighting 0 2001 2010 2011 2012 2013 2014 (FY) 0

~~
0 2001 2010 2011 2012 2013 2014 (FY) 0


2001 2010 2011 2012 2013 2014 (FY)
systems and making judicious use of fluorescent lights. Centralized air
*0.378 t-CO2/MWh was used as a fixed CO2 emissions factor
conditioning systems also were installed to save energy through effective for electricity across all years

temperature control and operation scheduling based on individual office ■ Total water use  Per-unit water
use conditions. ■(㎥)
Total CO100
Waste 2 emissions 
■ Totalgeneration
Per-unit CO2 emissions
waste generation  Per-unit 97waste 99
generation ホン
20,000) 93 100
(t-CO
■ Total
2 waste 88
100 generation  88Per-unit waste generation (%)
( tTotal
■ ) 100 generation  Per-unit waste generation
waste
2,000 100
( 500
t) 100 100
15,000
(t)
500
16,200
100 75
100
72 72
■ Use resources efficiently 500
1,500
400 430
1,620 69
13,500 13,100
62 64 13,000
13,000
59 59 67
59
64 12,800
100
80
75
400
10,000 430 69 67 80
50
400
300 430 69
1,230 62
1,250 64 64 80
60
64 64 67
The company reduced the amount of waste generated per unit in fiscal 1,000
300
62
1,020 1,010 1,010328 50
60
5,000
300 261 328 25
60
200 40
2014 to 33% less than the fiscal 2001 level, beating its target of a 25% 500
200
219
195 202 261 328
40
25
219 261
200
100 219 195 202 40
20
reduction. The volume of corrugated paperboard waste was lowered by 0
100 2009
195
2010
202
2011 2012 2013
0
2014 (FY)
20
0
100 0
20


~~
0
repurposing shipping boxes as containers for multiple small products. 0

~ ~
2001 2010 2011 2012 2013 2014 (FY)
0 2001 2010 2011 2012 2013 2014 (FY)
0

~~
0 2001 2010 2011 2012 2013 2014 0
(FY)


Packaging methods for delivery items also were reexamined and simpli- 2001 2010 2011 2012 2013 2014 (FY)

fied, resulting in waste reduction.


In fiscal 2014, the company also met its objective to reduce water use per ■ Total packaging material use  Per-unit packaging material use
Water use
unit by 5% from fiscal 2009 levels, achieving a 7% reduction through a (t)
■ Total
100
95
waste generation  Per-unit waste generation
■ Total
1,000 water use  Per-unit water
89 100
concerted effort by all associates to conserve water. ■
( tTotal
■(㎥)
) water
100
Total 100 use  Per-unit water
988 use  Per-unit water97
water 99
500 866 70 93 100
20,000
(㎥) 100 88 88 799 97 99 100
750
(㎥) 100 93 75
20,000 88 88 97 99 59 100
400
20,000 430 69 93 80
100
88 88 64 74664 67
15,000 16,200 62 75
■ Improve transportation efficiency 500
15,000
300
15,000
16,200 743
16,200 13,500 13,100 13,000 13,000 12,800328
50
75
60
75
10,000 13,500 13,100 13,000 13,000
261 12,800 50
200 13,500 40
The company reduced per-unit CO2 emissions from transportation in 10,000
250
10,000
219 13,100 13,000
195 202 13,000 12,800 50
25
50
5,000
100 25
20
fiscal 2014 to 46% less than the fiscal 2010 levels, far surpassing its 4% 5,000 25
0
5,000 0
25
reduction target. The main factor contributing to the reduction was the 0 2010 2011 2012 2013 2014 0
(FY)

0 0
2001
2009 2010
2010 2011 2012
2011 2012 2013
2013 2014
2014 (FY)
(FY)
0 0
leveling of the cargo volume for each week, which raised the loading 0 2009
2009
2010
2010
2011 2012 2013
2011 2012 2013
2014
2014
0
(FY)
(FY)
ratio per vehicle by 8% and lowered the number of deliveries by 5% from
the previous fiscal year. CO2 emissions from transportation
■ Total CO2 emissions  Per-unit CO2 emissions
■ Total packaging material use  Per-unit packaging material use
■ Total
(t-CO 2) water
100use  Per-unit water
■ Total packaging material
89 use  Per-unit packaging material
use
■2,000
( 100
t ) packaging
Total 100 material 100
(㎥) 95 use  Per-unit97 packaging material
use
■ Reduce the volume of packaging materials (t)
1,000
20,000 100
1,850 88
95 88 89
75
99
93 100
(t) 100 89
1,000
1,500 95
1,660 100
75
1,000 988 89 61 1,560 100
The company reduced the volume and weight of packaging materials 15,000
750 988
16,200 866
1,380
799
70
54 75
75
988 866 70 59
799 70
used in fiscal 2014, partly owing to the introduction of smaller and light- 1,000
750
750
866
13,500 13,100 1,460
13,000 12,800
79913,000 746 59
50
75
75
10,000 59 50
500 746 50
er versions of strong-selling products. One specific step to reduce card- 500
500
746 743 25
50
500 743 50
5,000 743 25
board volume was the redesign of corrugated paperboard boxes used for 250 25
0 0
250 2010 2011 2012 2013 2014 (FY)25
trays and mats, which have a high number of unit deliveries, by making 0
250 0
25
2009 2010 2011 2012 2013 2014 (FY)
*CO2 emission factors based on Japan's Revised Energy 0
0
larger see-through sections. 0 2010 2011 2012 2013 2014 0(FY)
Conservation
0 Act 0
2010 2011 2012 2013 2014 (FY)
2010 2011 2012 2013 2014 (FY)

Packaging material used


■ CO2 排出量 ■ CO2 排出量原単位指数
■ Total2)
(万t-CO packaging material use  Per-unit packaging material(%)
use
30 120 本田
■(Total
t ) CO 2 emissions 
100 Per-unit CO2 emissions
100 95 104 100
■ Total
(t-CO 2)
CO2 emissions  Per-unit
89 CO 2 emissions
■1,000
Total
25 CO100 90
2 emissions  Per-unit CO2 emissions 100
100
2,000
(t-CO 2) 100 89 81 100
(t-CO2) 988
100 78
2,000
20 89
866 70 100
80
2,000
750 1,850 89 75
799 100
75
1,500 1,850 1,660 75 61 59 75
15 1,560 60
1,850 15.8 75 746
1,500
1,500 1,660 1,38015.2 61
1,660 15.0 1,560
54 75
75
See-through packaging for luggage trays 500
10
61 1,560
12.5 54 13.9 50
40
1,000 11.3 1,380 1,460 743 50
Redesigned box specifications vastly reduced packaging material 1,380 54
1,000 1,460 50
volume and lowered the use of corrugated paperboard by 30% 5
1,000 1,460 20
50
250
500 25
500
0 25
0

500 2000 2008 2009 2010 2011 25


2012 (年度)
0 0
0 2010
2010 2011
2011 2012
2012 2013
2013 2014
2014 (FY)
(FY)
0
0 2010 2011 2012 2013 0
2014 (FY)
2010 2011 2012 2013 2014 (FY)
1. Honda Access Corporation comprises the Niiza head office, Tochigi R&D Center, and Hidaka Office (three offices). The Tochigi R&D Center's
environmental performance results are included with those of the Automobile R&D Center (Tochigi), Honda R&D Co., Ltd. and therefore are not
included in the Honda Access Corporation figures. The environmental figures reported here represent the Niiza head office and水資源使用量原単位指数
■ 水資源使用量 ■ the Hidaka Office, the
company's distribution center. ( 千㎥) (%) J47

■ CO 2 排出量 ■ CO2 排出量原単位指数
Total CO2 emissions  Per-unit CO2 emissions
■1,500
CO22排出量 ■ CO2 排出量原単位指数 150
(万t-CO ) (%)
■ CO
(t-CO 2 排出量 ■
2) 100 CO2 排出量原単位指数 本田
(万t-CO
30 2) (%)
120
2,000 2)
(万t-CO 89 104 100
(%)
1,200
30 100 100 120
120 本田
Direction Products Management 8 domains Honda ENVIRONMENTAL ANNUAL REPORT 2014

Japan INDEX >

Even before the introduction of Japan's Law on the Re-


cycling of End-of-Life Vehicles (the ELV Recycling Law)
in 2005, Honda was putting the 3Rs (reduce, reuse, and

Product
recycle) into practice for product materials. We were the
first Japanese automaker to sell recycled parts and to

Recycling (3Rs)
collect and recycle parts such as oil filters and bumpers,
activities we have continued to this day. We are now de-
veloping equipment for efficiently and safely disassem-
bling used parts and products to support proper disposal
and material recycling, and actively working to build
networks to promote reuse and recycling.

Discussion Executive Officer × Operating Manager × Associate

Moving Japan to the global forefront of


recycling innovation

Shu Takiguchi Sho Minekawa Wataru Karo


Spare Parts Division Chief Operating Officer, General Manager,
Regional Operations (Japan) Spare Parts Division

Recent achievements in battery recycling

In the product recycling (3Rs) domain, what are Honda's long-term or constant environmental goals?
What efforts were made in fiscal 2014 in pursuit of these goals?

Minekawa: Our basic objective when working with the flow of materials, parts, products, waste, and so forth in the 3Rs
domain is this: Let's think more about how we can close the loop and create cyclical systems that generate zero waste. Us-
ing resources effectively and recycling them for reuse is going to become increasingly important worldwide. Our product
recycling operations in Japan need to continue to test new ideas, accumulate knowledge, and develop best practices that
we can share with the world. This is true of all domains, but the 3Rs domain in Japan has a particularly important role to
play in leading Honda's global operations.

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Product Recycling (3Rs)

Karo: We started showing that leadership in fiscal 2014, when we developed a


scheme to recycle used nickel-metal hydride (NiMH) batteries from hybrid cars, with
technical support from Japan Metals & Chemicals Co., Ltd. The previous year we had
created a system, based on our own recycling technologies, to extract rare earths
from used batteries and reuse them; our work in fiscal 2014 took that a step farther
and resulted in a system to reuse peripheral components as well as rare earths. In
other words, we now have a system to recycle everything in NiMH batteries that can
possibly be reused. I think this has been our greatest accomplishment so far in the
3Rs domain.

Takiguchi: I got involved in that project because I asked to be part of creating such
a system. Being a member of the team allowed me to use my prior experience in
engineering after-sales parts in the creation of a parts-to-parts recycling scheme for
NiMH batteries; I also learned a lot along the way. I'm proud to have been able to
Sho Minekawa
contribute to something so significant in Honda's recycling operations. Chief Operating Officer,
Regional Operations (Japan)

Taking on new challenges with pioneering


determination
What will be your policy or course of action at the start of the new mid-term that begins
in fiscal 2015? How will front-line associates execute this?

Minekawa: Now that we've completed the recycling scheme for NiMH batteries,
our next big project is lithium-ion (Li-ion) batteries. The number of hybrid vehicles
equipped with Li-ion batteries is growing rapidly, so we need to have a system in
place to recycle them. Finding an answer to this problem is not just a goal, it's also
our responsibility as a mobility product manufacturer, and the entire automotive
industry needs to come up with a viable answer.

Karo: Our social obligation as a manufacturer is not only to recycle Li-ion batteries
Wataru Karo but also to provide after-sales service from a safety perspective. Collection is the
General Manager,
Spare Parts Division very first step in the recycling process. We have the experience, know-how, and
network from our established business in remanufacturing automatic transmission
parts, so if we put those to good use I think we can build an efficient system for
collecting Li-ion batteries.

Takiguchi: The Spare Parts Division I'm a part of is working on the Triple Zero con-
cept to reduce all environmental impacts down to zero. Associates in the division
keep this concept in the back of their minds at all times, and are always looking for
and collecting useful information. As for me, I'm excited to put the experience and
knowledge I acquired from NiMH battery recycling to use in my future work.

Minekawa: The many years we've put into reducing impacts from Honda's oper-
ations, such as CO2 emissions, are gradually starting to deliver results. The world,
however, expects even more from us. We should appreciate this fact and let it drive
us to accomplish more in the 3Rs domain. Working together, let's have the determi-
nation to put Japan at the global forefront of innovation and contribute to the cre-
Shu Takiguchi ation of a waste-free society.
Spare Parts Division
In FY2014, helped build a NiMH battery recycling
system and presented the achievements at the
Honda Green Conference1

1. See page J04 to learn more about the Honda Green Conference. Initiatives presented at the 2013 conference are described in detail in the December 24, 2013,
article of Environmental TOPICS.
http://www.honda.co.jp/environment/topics/topics25.html (in Japanese)
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Product Recycling (3Rs)

■ 3R initiatives in product development Short-pitch spot welding adopted in the N-WGN

● 3R pre-assessment system Conventional welding Short-pitch spot welding


Honda's efforts to reduce, reuse, and recycle (the 3Rs) begin at the R&D
stage with measures that include making products lighter and more com-
pact, extending their service life, standardizing components, improving
ease of maintenance and fluid replacement, using recycled materials,
minimizing use of environmental pollutants, and labeling products to in-
dicate the types of resin and rubber used. We evaluate performance based
on a 3R pre-assessment system for each new model being developed,
and are constantly working to improve the system. Our motorcycles have Conventional pitch Continuous welding

been assessed under this system since 1992, our automobiles since 2001.
Short-pitch spot welding: Achieved weight reduction by
reducing steel thickness through improved total efficiency in
the tailgate section
● Reducing by design
We have made considerable efforts to reduce the size and weight of our
products through innovative use of designs and materials for all parts,
including body structures, engines, and even individual screws.
For example, we reduced weight in the N-WGN mini-vehicle introduced
in 2013 by adopting the high-efficiency next generation body structure
with inner frame developed for the N-BOX and the N-ONE, light-weight
outer body panels made from material with a tensile strength of 340 Pa,
and high-efficiency short-pitch spot welding. These technologies cut
weight by 15% compared to vehicles using conventional methods.
For motorcycles equipped with the eSP global engine for next-genera-
tion compact scooters, we worked to increase the sharing of core parts
eSP next-generation engine for small scooters, which reduces the
between engine models and use of the same gigs and other equipment use of consumables
for their production. These efforts led to more energy and resource-effi-
cient production, and will make it easier to disassemble these motorcy- Recycling rate Major parts
cles when they reach the recycling stage. N-WGN
● Glove box
Automobiles At least 90%
● Sun visor
● Reusing and recycling by design ● HVAC duct

We strive to improve the reusability and recyclability of product parts by NC750X 


making special considerations during structural design, using recycled Motorcycles At least 95% ● Rear fender
● Battery box
resins and materials that are easy to recycle, and labeling resin and rub-
HSL2511
ber parts to indicate the types of materials used.
Power ● Fan cover
At least 95%
In the N-WGN, for example, we used easy-to-recycle materials in the 1 Products ● Fuel tank
● Rubber track
bumper face and other exterior and interior components. We also use
recycled materials for sound absorbers and label the materials on rubber
parts wherever possible. All of these decisions help create a product con-
Voluntary reduction targets proposed by JAMA (for new models)
ducive to recycling.
Target substance Reduction target
In fiscal 2014, we achieved at least 90% recyclability for all new and rede-
Amount used per vehicle
signed automobile models and at least 95% for motorcycles, according to Automobiles: One-tenth
Lead
(compared to 1996)3
the definitions and calculation methods of the Japan Automobile Man-
Motorcycles: 60 grams or less
ufacturers Association ( JAMA), and a recoverability rate2 of at least 95%
Complete ban, with exceptions
for parts used in power products. Mercury (HID headlamps, navigation LCD
panels, etc.)

● Reducing chemicals in products Hexavalent


Complete ban
We have been working to reduce levels of lead, mercury, hexavalent chromium

chromium, and cadmium—four heavy metals that have negative envi- Cadmium Complete ban
ronmental and human health impacts—from our products. We also made
voluntary efforts to discontinue the use of mercury. In the N-WGN, we
used mercury-free HID headlamps and other parts, even though these
parts are exempted from JAMA's reduction targets. For all automobile
and motorcycle models manufactured in Japan, we have achieved JAMA's
voluntary reduction targets. For power products, no specific regulations
exist in Japan, but we have been making efforts to comply with JAMA's
voluntary targets and working to reduce chemicals in all models pro- N-WGN HID
duced in Japan. headlamp

1. Thermo-plastics such as polypropylene and polyethylene.


2. The recoverability rate includes both the recyclability rate and the thermal energy recovery rate. It is based on the calculation method stipulated in ISO
22628 for automotive recyclability rates
3. Baseline for reduction is based on typical amount used per vehicle in 1996 (1,850 grams). One-tenth is equal to 185 grams. J50
Direction Products Management 8 domains Honda ENVIRONMENTAL ANNUAL REPORT 2014

Japan INDEX >


Product Recycling (3Rs)

■ 3R initiatives for parts Recycling process for used bumpers

●Recycling used parts


We collect used parts from our repair and replacement services at Honda
dealers in Japan for recycling. In fiscal 2014, we collected and recycled
about 290,000 used oil filters and about 210,000 used bumpers. Some
of these materials are used in new models; for example, we used resin
Crush used bumpers
materials recycled from used bumpers in the underbody cover of the
new Fit released in September 2013. We also continue to collect and
remanufacture used torque converters; in fiscal 2014 we collected and Collect used bumpers
remanufactured about 100 converters. We will continue efforts like these
to recycle used parts.

Turn into resin pellets


● Recycling nickel-metal hydride batteries for hybrid vehicles
Since launching the original Insight in 1999, Honda has been voluntarily Use in underbody
cover in the new Fit
collecting nickel-metal hydride (NiMH) batteries from hybrid vehicles
and recycling them as stainless steel material. In April 2012, we began
working with Japan Metals & Chemicals Co., Ltd., to extract rare metals
and rare earth elements from used NiMH batteries and recycle them.1 In Recycling process for hybrid vehicle NiMH batteries

2013, we worked on a project to reuse components from disassembled


Dealer Japan Metals & Chemicals Co.
NiMH batteries where quality could be assured. And in April 2013, we
Collect used Recycle rare metals
began producing replacement batteries for the Civic Hybrid made from batteries and rare earths

these reused components.

Disposal Use in replacement Reusable


NiMH batteries components
■ 3R initiatives for end-of-life products
Customer Honda
Parts manufacturer
● Automobiles
Use in Honda Reuse in batteries
〈 Initiatives to comply with the ELV Recycling Law 〉 Purchase products and other parts

Honda makes various efforts to reduce environmental impacts across the


life cycles of its automobiles, from development to disposal. Japan's ELV
Recycling Law, which came into full force on January 1, 2005, is intended Automobile recycling process flow-chart

to protect the environment and promote the effective use of resources


Deposit Management Entity
through measures that ensure the responsible and efficient recycling of Japan Automobile Recycling (JARC)

end-of-life vehicles.
Under the law, automakers are responsible for collecting and properly
Receipt Payment
Recycling
disposing of fluorocarbons (which are used as air conditioner refriger- fee manifest
(3 items)
ants, but can damage the ozone layer and contribute to global warming
if released into the atmosphere), airbags (explosive and difficult to 1 6
Designated resource
Automaker recycling organization
handle), and automobile shredder residue (ASR; material that remains Owner Japan Automobile
Importer
Recycling Center (JARC)
after all reusable materials are extracted). Honda charges recycling fees,
which are set as low as possible for the customer, but high enough to
Fluorocarbons

Air bag
ELV

Payment

Payment

residue
Shredder

sufficiently offset the costs of proper processing and recycling. For more
information, please visit our website.

2 3 4 5
D is ma n tl e r
Fluorocarbon

co n t ra ct or
Sh re dde r
contractor
c o l l e ct o r

recovery
ELV

ELV

ELV

vehicle
Dismantled

"Initiatives for three recycled items"


http://www.honda.co.jp/auto-recycle/recycle_02.html
Receipt manifest

Delivery manifest

Receipt manifest

Delivery manifest

Receipt manifest

Delivery manifest

Receipt manifest

Delivery manifest

(in Japanese)

"A word about recycling fees"


http://www.honda.co.jp/auto-recycle/recycle_03.html
(in Japanese)
Information management center
Japan Automobile Recycling Center (JARC)

Material flow Information flow Money flow

1. Read more about our battery recycling initiatives in Case 17 of "Environmental Documentary—Honda Face."
(http://world.honda.com/environment/face/)

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Japan INDEX >


Product Recycling (3Rs)

〈 Complying with the ELV Recycling Law 〉 FY2014 recycling results


In fiscal 2014 we recovered fluorocarbons from about 440,000 vehicles Fluorocarbons Amount recovered 121,128 kg from 437,462 vehicles

(up 7% from the previous year), air bags from about 380,000 vehicles (up Recovered 141,343 units from 39,984 vehicles
9%), and automobile shredder residue (ASR), which is generated in the Airbags Recovered after
1,104,360 units from 316,431 vehicles
deployment
(gas generators)
final process of automobile recycling, from about 490,000 end-of-life ve- Recycling rate 93.9% (legal minimum is 85%)
hicles (up 4%). Volume received 89,391 t from 464,687 vehicles
We met regulatory requirements for the recycling rates of gas generators Automobile ASR that would 廃棄物
shredder have been
(85%) and ASR (70% in fiscal 2016), recycling 93.9% and 96.0% of these generated had 4,9581%
t from 25,877 vehicles
residue 金属材料として
full recycling not
materials, respectively. (ASR) 再利用been done
29%
Recycling all of these items cost 4.58 billion yen, and recycling deposits Recycling rate
96.0%
(legal minimum for FY2016 is 70%)
received to process them was 5.35 billion yen in total. Total recycling deposits received 部品を洗浄し
5,346,414,558 yen
再利用
Total recycling costs 4,583,170,175 yen
70%
● Motorcycles
See the webpage below for a more detailed breakdown of
〈 Voluntary initiatives to recycle motorcycles 〉 recycling in FY2014 (in Japanese)
On October 1, 2004, working in partnership with other motorcycle http://www.honda.co.jp/auto-recycle/recycle_06_2013.html

manufacturers and motorcycle importers in Japan, Honda launched a


voluntary motorcycle recycling initiative that continues to this day. With Motorcycle recycling process flow-chart
support from sales companies and other entities, our goal was to create
a backup recycling system for the proper disposal of end-of-life motorcy- Customer
Motorcycle owner, or person authorized by
cles—the world's first voluntary effort of its kind in the motorcycle indus- owner for motorcycle disposal/recycling

try. In this system, end-of-life motorcycles are accepted by dealers and


certified collection centers free of charge for proper handling at recycling
facilities. We are monitoring the material recycling routes we established Motorcycle with Motorcycle WITH
NO recycling sticker recycling sticker
in fiscal 2009 for certain resins and aluminum from engines.
We have also introduced an information system for confirming the sta-
End-of-life motorcycle
tus of motorcycles that are submitted for recycle processing. The Japan Owner completes
paperwork
Automobile Recycling Promotion Center publishes a control number for
1 to dispose of motorcycle

each motorcycle, as well as data provided by the companies and facilities Dealer accepts
that collect, transport, and recycle the motorcycles. motorcycle

In fiscal 2014, we achieved a 95% recycling rate—our fiscal 2016 target— End-of-life
motorcycle
two years ahead of schedule, as a result of promoting the use of automo-
by Japanese motorcycle manufacturer/importer

bile shredder residues as fuel (thermal recycling) at major disposal and Certified collection center
recycling facilities.
Work subcontracted/oversight

〈 Results of voluntary recycling initiatives in FY2014〉 Rec ycling facilities

The price tags of all Honda motorcycles sold in Japan includes the cost of Preliminary disassembly
(removal of batteries, oil, etc.)
recycling, and all motorcycles are labeled with a sticker to indicate that
no recycling fees will be assessed at the time of drop-off. Even motorcy-
Shredding, sorting
cles sold before the start of this system and lacking the recycling sticker
are accepted free of charge. Of the end-of-life motorcycles accepted at
certified collection centers in fiscal 2014, a total of 3,912, or 54.6%, were Wa s t e Recycled materials
(e.g., steel, aluminum)
Honda products. One of our largest clients started using this system in
Proper Reused as raw materials
fiscal 2014, which contributed to a significant increase in the number of disposal

end-of-life motorcycles recycled.


The recycling rate for Honda products in fiscal 2014, calculated from the
actual amount of each type of material recovered at 14 recycling facili-
ties, was 96.5 % by weight, an increase of 4.2 percentage points from the
previous year.

1. http://www.jarc.or.jp/en/motorcycle/

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Honda is working to reduce the environmental im-


pacts of its business support operations. We try to
consider the environment in all business activities, to

Administration
operate environmentally responsible "green offices,"
and to constantly improve our environmental perfor-
mance. Our hope is that these efforts also will have
an indirect positive impact on the environment by
encouraging our customers, suppliers, and business
partners to take similar action.

Discussion Executive Officer × Operating Manager × Associate

Honda's "green offices" : Comfortable


workplaces, reduced environmental impacts

Mizuho Ogane Masahiro Yoshida Takao Aoki


Twin Ring Motegi, Mobilityland Corporation Chief Operating Officer, General Manager,
Business Support Operations Administration Division

Learning from each other across business sectors

In the administration domain, what are Honda's long-term or constant environmental goals?
What efforts were made in fiscal 2014 in pursuit of these goals?

Yoshida: The administration domain encompasses a wide range of operations at Honda, from nine office buildings in Japan,
including the Aoyama head office building, to 13 group companies involved in services and manufacturing functions, as well
as the Honda Technical College, a vocational school. The mindset we all strongly share when engaged in environmental
initiatives is that we can learn from each other. Most initiatives in the administration domain are aimed at raising associates'
awareness to make small, day-to-day improvements in energy use. But it is difficult to continually come up with new ideas.
That is why the annual administration domain Honda Green Conference1 is an important opportunity to share and learn new
solutions. Gathering people from diverse backgrounds allows us to make discoveries and learn from each other.

1. See page J04 to learn more about Honda Green Conference.


Initiatives presented at the 2013 conference are described in detail in the December 24, 2013, article of Environmental TOPICS.
http://www.honda.co.jp/environment/topics/topics25.html (in Japanese)
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INDEX >
Administration

Aoki: In one initiative in fiscal 2014, we made advances in monitoring and displaying
environmental impact data at the Aoyama head office building. Electronic monitors
on each floor now display—and update hourly—data showing each floor's CO2 emis-
sions, copier paper use, and waste. This is data that, until last fiscal year, we were
posting in printed form. The impact is big because it shows the performance of all de-
partments simultaneously, in real time. I am sure this has helped associates become
more aware of their own environmental impacts.

Ogane: At Twin Ring Motegi, we switched the lighting in facilities that consume a lot
of electricity to LEDs, and also made an effort to reduce peak electricity consumption
during events. We presented these efforts at the 2013 Honda Green Conference Yoshi-
da mentioned earlier. There is a big benefit to introducing new equipment, but to make
facilities more energy-efficient overall, I believe that associates' awareness and their day-
to-day behavior is even more crucial. It was at the Green Conference that I learned useful
ways to raise awareness on a continuous basis, so it is really true that the conference is Masahiro Yoshida
Chief Operating Officer,
a valuable forum for sharing information and finding ideas and solutions you have not Business Support Operations
thought of on your own.

Sustaining progress by
enhancing workplace comfort
What will be your policy or course of action at the start of the new mid-term that begins
in fiscal 2015? How will front-line associates execute this?

Yoshida: Thanks to the help we received from associates, we met all of our targets
for CO2 emissions, water consumption, and other environmental impacts during
the three-year mid-term. To further reduce impacts in the future, I think we will
need to take actions that do not force our associates to forgo comfort. Energy-
saving initiatives will not last if workplaces are difficult to work in; and they need
to be something that continues year after year. My idea of a green office is one that
reduces environmental impacts and achieves a high level of workplace comfort at
the same time.
Takao Aoki
General Manager,
Administration Division
Aoki: I think we need to come up with new ways of working to realize the green
offices you're envisioning. For example, the Honda head office buildings introduced
a "zero cabinet" policy in fiscal 2014, aiming to eliminate storage cabinets, which
had taken up the equivalent of one floor of the building. By digitizing documents,
we were able to completely eliminate cabinets on some floors, which opened up
more workspace and improved HVAC efficiency. Since this also reduced the amount
of paper stored, we can expect there to be a dramatic drop in the amount of paper
consumed and disposed. By advancing efforts like this one, we can reduce our
environmental impacts without sacrificing a comfortable workplace.

Ogane: Twin Ring Motegi operates in the service industry, so when we talk about
saving energy, we have to consider not only how to create a comfortable workplace,
but also how to satisfy customers. From fiscal 2015 onward, I'd like to put more
effort into initiatives that balance all three of these aspects.

Yoshida: With initiatives in the administration domain, it all comes down to


individual awareness and behavior and making a sustained effort. By putting our
Mizuho Ogane
Twin Ring Motegi, Mobilityland Corporation
minds together and making steady efforts to save energy, I think we can realize
Involved in energy conservation initiatives the green offices we envision and put Japan in a position of global environmental
at Twin Ring Motegi. As representative of leadership. And by sharing these solutions, I also hope we can contribute to more
Business Support Operations, won an Award
for Energy Innovation at the 2013 Honda
green offices around the world.
Green Conference.

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Administration

■ Administration activities Note: Fiscal 2014 data includes all nine office buildings
(Aoyama, Wako, Shirako, Yaesu, Sapporo, Sendai, Nagoya,
All Honda office buildings and other business sites of the 14 Honda
Osaka, Fukuoka) of Honda Motor Co., Ltd., and all facilities
Group companies in Japan work together to advance environmental of 13 consolidated group companies and one educational
institution in Japan: Mobilityland Corporation, Honda Kai-
conservation. Group companies can be divided into three functional
hatsu Co. Ltd., Honda Sun Co., Ltd., Honda Commtec Inc.,
areas, with initiatives conducted in each area: administration, which Honda Airways Co., Ltd., Honda Trading Corporation, Honda
Finance Co., Ltd., Rainbow Motor School Co., Ltd., Kibonosa-
includes head office buildings; services, such as racetracks and driving
to Honda Co., Ltd., Honda R&D Sun Co., Ltd., Circuit Service
schools; and production, which includes aluminum smelting and parts Creates, Japan Race Promotion Inc., and Honda Technical
College.
manufacturing.

● Business Support Operations Green Conference


On September 24 and 25, 2013, Business Support Operations held
Participants gather in
its own Green Conference at Honda Sun Co., Ltd., in Oita Prefecture the courtyard of Honda
Sun Co., Ltd., host of the
to present recent environmental conservation activities of its group
Business Support Oper-
companies. Honda Sun and the adjacent Honda R&D Sun Co., Ltd., ations Green Conference
in FY2014
which designs assembly lines for workers with disabilities, held facility
Associates from Mobili-
tours to share their practices with other group companies. Mobilityland tyland Corporation's Twin
Corporation's efforts at the Twin Ring Motegi speedway won the Best Ring Motegi, which won
the Best Initiative Award
Initiative Award. The company also won the Award for Energy Innovation at the Business Support
Operations Green Con-
at the company-wide, triennial Honda Green Conference, held at Twin ference and an Award for
Energy Innovation at the
Ring Motegi in December 2013.1 company-wide Honda
Green Conference

● Honda head office ISO 14001 certification Upgraded Smart-Eco monitor


T h ro u g h co n t i n u o u s i m p rove m e n t a n d e f fe c t i ve o p e ra t i o n o f
enviro nm ental managem ent system s, as well a s by p ro m o t i n g
environmental initiatives, we nearly achieved our target for the reduction
of environmental impacts at Honda head office buildings and district
buildings2 in fiscal 2014. At the Aoyama Building, the Smart-Eco monitor
which shows environmental impacts on each floor, was upgraded to Monitor shows electricity use and other environmental im-
pacts on each floor
display hourly electricity use, monthly paper use by copiers and waste
generation, to focus associates' attention on these impacts. Impact data  
Group CO2 emissions
from each floor also was published on the company's intranet to promote ( t-CO2)
■ Group ■ Honda

analysis and policy improvements on each floor. 35,000


31,500
30,600
30,000 28,000 28,300
27,300
● Reducing CO2 emissions
25,000
In fiscal 2014, CO2 emissions from the administrative operations of
19,700 19,100 17,600
group companies in Japan totaled 28,300 tons, an 8% reduction from 20,000
17,100
17,500

fiscal 2011. Most CO2 emissions from administrative operations, which 15,000

comprise over half of the group companies in Japan, are the result of
10,000
electricity consumption from the use of air conditioning and heating.
11,800 11,500 10,700
10,200 10,500
In addition to promoting the summer Cool-Biz and the winter Warm- 5,000

Biz programs, energy saving measures were taken without affecting 0


2010 2011 2012 2013 2014 (FY)
operations by adding sensors and automatically turning off lights during *Historical figures have been adjusted to reflect a change in the
scope of data.
lunchtime. Awareness is raised through posters and by posting "save *0.378 t-CO2/MWh was used as a fixed CO2 emissions factor for
energy" stickers at the entrance of offices at sales companies. electricity across all years

Major initiatives in FY2014

Switched to LED lighting fixtures Honda Wako Building

Sw i t c h e d i n d o o r a n d o u t d o o r l i g h t s a n d
Honda Shirako Building
restroom lighting in Building B to LEDs

Continued Honda Green Action activities Honda Trading Corporation

Switched lighting of all facilities at the Wako


Rainbow Motor School Co., Ltd.
Center to LEDs
Raising awareness through "save energy" stickers

1. See page J04 to learn more about the Honda Green Conference.
Initiatives presented at the 2013 conference are described in detail in the December 24, 2013, article of Environmental TOPICS.
http://www.honda.co.jp/environment/topics/topics25.html (in Japanese)
2. Head office buildings (Aoyama, Wako, and Shirako) and district buildings (Sapporo, Sendai, Yaesu, Nagoya, Osaka, and Fukuoka) J55
0
Direction 2009 Products
2010 Management
2011 (年度) 8 domains Honda ENVIRONMENTAL ANNUAL REPORT 2014

Japan INDEX >


Administration
■ 水資源使用量
(左軸)
  原単位指数
(右軸)
(㎥)
150,000 150
〈 Case study: Reducing CO2 emissions at Kibonosato Honda Co., Ltd 〉 Waste generation  
112,461 114,698 ■ Group ■ Honda
98,797 curtains were installed in
To improve air conditioning efficiency, plastic (t)

100,000 100 2,500


the doorway connecting
100
the102.5
factory to the adjoining building, which is
87.4
exposed to outdoor air from the parts storage area. This helped reduce 1,962 1,898 1,868
50,000 50 2,000
kerosene use to 0.27 kiloliters below the target from December 2013 to 1,832 1,821

March 2014, while also keeping room temperatures comfortable despite 1,500
0 0
a colder winter than
2009 the previous
2010 year. Carbon dioxide emissions totaled
2011(年度) 1,340 1,280

0.67 tons, a reduction of 26% from fiscal 2011. 1,000 1,250 1,270 1,200

● Reducing waste generation 500


(t-CO2)
622 618 582 598 621
In fiscal 2014, waste generated by the administrative operations of group
40,000
33,198
companies in Japan totaled30,318
1,821 tons,28,947
a reduction of 4% from fiscal 0
2010 2011 2012 2013 2014 (FY)
30,000
2011. *Historical figures have been adjusted to reflect a change in the
scope of data.
At the20,000
Aoyama Building, janitors carried out secondary sorting to im- *FY2014 data excludes a one-time generation of used packing
materials (around 770 tons) resulting from the transfer of
prove10,000
the recycling rate, and converting confidential documents, maga- production activities to the new Yorii Automobile Plant.
zines, and copier paper into salable material. Offices also implemented a
0
"zero cabinet" initiative
2009 to reduce
2010 the amount of stored paper documents
2011 (年度) Group water use  

by converting them to electronic data. This resulted in a one-time in- ■ Group ■ Honda
(1,000m3)
crease in paper waste generation, but this initiative will continue in order 1,000
(t) 905
1,982 878
to make fundamental reductions in waste.
2,000 900
843 848 833
1,641
One group company, Honda Trading Corporation,
1,605 has been reducing 800
1,500
700
waste generation by recycling used mixed paper.
600
1,000
500 731 789 778
〈 Case study:
500
Reducing copier paper use at Honda Airways Co., Ltd. 〉 749 728

400
Honda Airways switched from using books and copied handouts as
300
0
teaching materials
2009for pilot training
2010 to distributing
2011 (年度) the content through 200

tablet devices. This cut annual paper use by a total of 106,000 sheets, or 100
112 116 105 100
99
2,000 sheets per trainee. 0
(t) 2010 2011 2012 2013 2014 (FY)
1,000,000 *Historical figures have been adjusted to reflect an increase in the
898,544.5
843,116.7 840,370.7
● Reducing water resource use scope of data
750,000
In fiscal 2014, water resources used by the administrative operations of
group companies
500,000 in Japan totaled 878,000m3, a 3% reduction from fiscal
2011. At the Aoyama Building, "save water" stickers were posted in the
250,000
restrooms to raise awareness.
0
2009 2010 2011 (年度)
"Save water" stickers put up
in restrooms at the Aoyama
Adoption of low/clean-emission fleet vehicles by major business sites Building

■ Fuel cell electric ■ Electric ■ Hybrid ■ Natural gas


Percentage of government-designated low-emission vehicles1 
Percentage of other low-emission/fuel-efficient vehicles
Vehicles (%)
96.9 97.7 98.1 98.3 Conversion of pilot training materials to electronic form
500 96.4 12 100

483

415 12 33
438
400 80
364
12 368 13 19
384
339 12
351 0 354 0
300 326 0 60


200 20
21.5

16.8 17.3 18.8


15.4
100 10

1 1 1 0 0
0 0
2010 2011 2012 2013 2014
Digitizing teaching materials allowed Honda Airways to cut
(FY)
paper use as well as the price of the materials for trainees

1. Non-gasoline vehicles recognized by the Japanese government's green procurement policy

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Direction Products Management 8 domains Honda ENVIRONMENTAL ANNUAL REPORT 2014

Japan INDEX >

On April 1, 2012, Honda launched a new IT Operations. The


move marks a shift from the independent operation of Group
companies' IT assets toward worldwide integration and stan-
dardization, and the creation of an IT system that better supports

IT
our global business. Such a system will allow us to operate our
growing business more quickly and securely based on the latest
data and information. It also will create opportunities to reduce
environmental impacts from our activities, as well as to enhance
the energy efficiency of the systems themselves through data
center consolidation, cooling efficiency improvement, and other
initiatives, in response to the proliferation of IT assets.

Discussion Executive Officer × Operating Manager × Associate

Transforming Honda operations


 for greater efficiency and speed

Eri Koseki Yoshiharu Yamamoto Atsushi Iwamoto


Computer Integrated System Division, Chief Operating Officer, General Manager,
Development Promotion Office, IT Operations System Infrastructure Division, IT Operations
Automobile R&D Center, Honda R&D Co., Ltd.

Leveraging ICT to reduce environmental impacts and advance operational reform

In the IT Operations launched in 2012, what are Honda's long-term or constant environmental goals?
What efforts were made in fiscal 2014 in pursuit of these goals?

Yamamoto: IT Operations' main purpose is to bring information and communications technology (ICT) to bear in opera-
tional reform. We help improve efficiency in all Honda activities by integrating the latest ICT into various business opera-
tions, such as advancing digital processes used in product development to eliminate the need for physical prototyping, and
incorporating video conferencing and other advanced communication tools. These efforts lead to reduced energy consump-
tion and smaller environmental impacts. Another key activity is improving the environmental performance of the ICT sys-
tems themselves. We are implementing measures to rebuild our ICT infrastructure, which includes computers, servers, and
an array of other devices, for increased efficiency and reduced power consumption.

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INDEX >
IT

Iwamoto: Some of the steps we took to improve ICT efficiency in 2013 were server vir-
tualization and upgrading HVAC systems for server rooms. However, the reduction in
CO2 emissions was less than expected because these efforts were offset by the priority
placed on shoring up our power infrastructure, such as through backup and emergen-
cy power supplies, based on our experience with the 2011 earthquake. We are nearly
done strengthening our infrastructure to hedge against risk in emergency situations,
and are now able to start concentrating again on efficiency improvement.

Koseki: My work focuses on using ICT for operational reform in the design depart-
ment of the Automobile R&D Center, the hub of automobile product development
at Honda. In fiscal 2014, we integrated technology to reduce designers' workload
and shorten the man-hours needed to calculate the cost of design components. We
also focused on upgrading the several thousand computer-aided design (CAD) tools
used by the R&D Center, adding an automatic sleep mode for periods of inactivity.
This automatic system lets the designers focus on their core tasks and saves energy
Yoshiharu Yamamoto
without creating extra work; it resulted in a reduction of electricity consumption of Chief Operating Officer,
IT Operations
more than 100 t-CO2e annually.

Operational reform lets us focus


on more creative processes
What will be your policy or course of action at the start of the new mid-term that begins
in fiscal 2015? How will front-line associates execute this?

Yamamoto: Honda originally prioritized constructing systems that were specialized


and optimized to each operating region or business domain. But to continue growing
globally, we now need to construct a system that is optimized for global operations,
that forms stronger inter-regional connections, and improves operating efficiency.
Achieving this and realizing a truly globalized ICT structure is our objective for the
next three years.

Iwamoto: We also want to improve the efficiency of our ICT systems on a global
scale. We plan to use what we have learned about ICT infrastructure and minimizing
Atsushi Iwamoto
General Manager, environmental impacts in Japan, such as through our improved HVAC system, to de-
System Infrastructure Division, IT Operations
velop systems for other regions and improve ICT efficiency worldwide. We are striv-
ing to reduce electricity use per unit of revenue in each region to achieve this goal.

Koseki: For ICT-based operational reform to be successful, we first must have a


clear understanding of the daily routine at each worksite; only then can we propose
ways to enhance operational efficiency. For example, we could build a system that
allows designers to easily share the extensive information and knowledge they gain
in their work and that would support open discussion to help them quickly identify
solutions to the issues they face. Providing a system that helps designers do their
jobs faster and better―I think that is what is expected of us in the IT department of
the Automobile R&D Center.

Yamamoto: ICT has the power to reduce the number of people and hours that are
needed to do a given job. Increased business efficiency also improves our environ-
mental performance. The time saved through efficiency can then be used for more
creative projects—that is the main objective of the operational reform. To achieve
this, associates should first look at the way they are working now and think about
Eri Koseki how to improve it. Our job in IT Operations is to go to each worksite, hear what asso-
Computer Integrated System Division,
Development Promotion Office, ciates want, and create systems and tools that are truly useful. We want to promote
Automobile R&D Center, Honda R&D Co., Ltd.
operational reform through collaboration between IT Operations and worksites in
Oversees ICT-based operational reform in the
design department all Honda business domains.

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Direction Products Management 8 domains Honda ENVIRONMENTAL ANNUAL REPORT 2014

Japan INDEX >


IT

■ Improve efficiency across all Honda domains ■ Improve IT environ-


mental performance
Use ICT to improve operational efficiency: Adopt appropriate energy-efficient
Group-wide R&D, production, distribution, sales,
Environmental impact reduction
devices at each life-cycle stage
efficiency

▶︎ ▶︎
after-sales service systems
Reduce impacts Reduce impacts
▶︎ Improve efficiency through
with ICT from ICT server virtualization
Upgrade communications (video/web
ICT infra- conferencing, document sharing) and ・Reduce CO2 emissions Improve data center cooling
structure corporate information infrastructure ・Save energy efficiency

The IT Division is working to reduce Honda's environmental impact from its CO2 emissions and per-system CO2 emissions
operating activities by leveraging information and communications technol- (FY2009=100)

ogies (ICT), while also reducing impacts from the ICT systems themselves. ■ CO2 emissions ■ Per-system CO2 emissions

100
100
■ Energy conservation
80
● Data center consolidation 59
60
At Honda, we are working to reduce the amount of power used by our
34
data centers. We are also implementing "server virtualization," a method 40 26 26 23

of increasing resource efficiency by combining the functionality of multi- 20


100 98 93 90 90 98
ple servers into one. By reducing the number of physical servers, we were 0
2009 2010 2011 2012 2013 2014 (FY)
able to consolidate our numerous data centers across Japan into two lo-
cations.
Although total electricity use across all data centers has grown, as a re- Server virtualization
sult of increasing system functionalities for our growing R&D operations
Before After
and provide backup capacity for disasters, server virtualization has made
it possible to dramatically reduce power consumption per system. A B C D
Device Device Device Device
A C F H B D E G
Virtualization technology Computer device

● Improvements in data center cooling efficiency E F G H Computer device Computer device

In an effort to operate our servers more efficiently, we implemented a Device Device Device Device
Multiple systems operate on one device
number of measures to increase the cooling efficiency of HVAC systems in Each system operates separately

our data centers. Creating multiple operating environments in one physical serv-
er reduces the number of servers that are needed (conceptual
For example, we introduced an aisle capping system to prevent cool condi- illustration)
tioned air from mixing with air warmed by waste heat from the servers. In
server rooms where this was implemented, we were able to improve cool- Aisle capping for improved cooling efficiency
ing efficiency by reducing the number of HVAC units and increasing the
Exhaust outlet
thermostat temperature, all while maintaining server operating efficiency.
Warm air

● Reducing design equipment power consumption


Partitions keep cool air inside
We are taking steps to control power to computers and devices used by
our designers in order to reduce the amount of standby power these cool air

devices require when not in use. By developing and installing an appli- Servers
cation that monitors user habits and the operating conditions of these
devices and that switches them to sleep mode in certain situations, we
achieved a reduction in the use of standby power. Improves cooling efficiency by encapsulating cold air blown in
through the floor and preventing it from mixing with warm air
  expelled at the back of the servers
In fiscal 2015, we will continue initiatives like these to reduce electricity
consumption and cut CO2 emissions per system by 10% from fiscal 2014
levels. We also are building a system that will allow us to quickly share
what we learn in Japan with overseas business units, and by using this
system we will strive to reduce IT system power use on a global scale.
Data center room temperature before (left) and after (right)
aisle capping

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Direction Products Management 8 domains Honda ENVIRONMENTAL ANNUAL REPORT 2014

Japan
Philanthropic Environmental Initiatives INDEX >

Honda environmental conservation initiatives are based on a global perspective but carried out with the goal of building con-
structive relationships between our operations and the communities where we do business. As a responsible corporate citizen,
we try to anticipate our neighbors' needs and carry out activities at the local level, to share positive experiences with commu-
nities, and to pass on something valuable to future generations. For more information please visit:
http://world.honda.com/community/

■ Beach clean-up efforts


To pass on a beautiful natural environment to future generations, Honda
has been carrying out environmental conservation activities worldwide.
One such activity is a Honda beach clean-up initiative1 in Japan made Honda beach clean-ups held in FY2014

possible by Honda technologies and volunteers. Honda Group associates No. of cleanups No. of participants

25 6,100
cooperate with regional communities to clean beaches throughout Japan
using a towable beach cleaner. Lightweight, compact, simply designed,
and easy to operate, the beach cleaner was developed by Honda with the
desire to ensure that future generations can continue to walk barefoot on
Japan's beaches.
Honda-developed towable
Launched in May 2006, the project so far has overseen about 300 clean- beach cleaner in action
up events at more than 100 beaches across Japan. In fiscal 2014, more
June 19, 2013 - Kamoike Beach cleanup in Imabari, Ehime Prefecture
than 6,000 community residents worked with us at these events.
Volunteer Honda staff also host environmental studies classes for el-
ementary and junior high schools students in communities that most
need them. Picture-card stories are used to communicate to these
younger generations the importance of environmental conservation and
explain that humans produce enormous amounts of trash every day, how Before After

that trash is washed to sea by rivers, and how it has an adverse effect on
marine life.
Honda Group associates also joined the local government and residents
of a community in Miyagi Prefecture in cleaning up a beach wrecked by
the 2011 tsunami to restore it to its former scenic beauty.
Normally relatively litter-free, Showing the beachcleaner
Kamoike Beach was littered with in an environmental studies
plastic bags and other debris as class
■ Watershed conservation the result of a typhoon

The water we use every day is a gift from the rivers that flow from the Watershed conservation held in FY2014

mountains to the sea. At the sources of these rivers are watershed for- No. of locations No. of events No. of participants

ests—forests that, in addition to providing clean water and abundant ma- 6 13 380

rine life, also purify our air. These forests provide other services as well,
Areas where watershed conservation was held
including helping to prevent disasters by stabilizing the soil.
Since the launch of our Community Forest initiative in the 1970s, Honda
Suzuka Factory Saitama Factory
has been carrying out long-term conservation efforts at eight locations Kameyama, Mie Pref. Akagi Mountain, Gunma Pref.
Kosuge, Yamanashi Pref.
across Japan with the goal of promoting grassroots-level forest conserva- Minakami, Gunma Pref.

tion. These efforts include not only planting trees but also clearing un-
Hamamatsu Factory
Hamamatsu, Shizuoka Pref. Tochigi Factory
Ashio, Tochigi Pref.
derbrush and a limited number of trees on a continual basis to promote
growth. Tending these watershed forests in this way helps ensure that Kumamoto Factory
Ohzu, Kumamoto Pref.
Wako Building
Yorii, Saitama Pref.

they continue providing essential water services to the communities sur-


rounding our business sites.
November 16, 2013 - Forest conservation on Mt. Akagi
in Gunma Prefecture
■ Environmental education
Nature Wagon
In this visiting environmental studies program, the Honda Step WGN
and other vehicles are loaded with natural materials such as wood from
forest thinning, river stones, acorns, and leaves and driven to educational
centers where they are used to inspire children to have an appreciation
for nature.
Volunteer associates from Saitama Factory joined forces with
Honda retirees to plant deciduous tree saplings and promote
the growth of a healthy forest

1. Learn more in Case 29 of "Environmental Documentary—Honda Face." (http://world.honda.com/environment/face/)

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Direction Products Management 8 domains Honda ENVIRONMENTAL ANNUAL REPORT 2014

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Philanthropic Environmental Initiatives INDEX >

The program consists of a lecture about the importance of natural 事業所数

systems and environmental conservation, combined with craftwork 5事業所

and other activities. The children engage all five senses as they absorb
knowledge about nature and tackle their craft projects. Volunteer Honda
retirees tell stories about the environment using the natural materials as Nature Wagon activities in FY2014
props, and also support the children in understanding the value of nature No. of business sites No. of events No. of participants

and the need to protect it as they develop an emotional and intellectual 5 215 9,600

connection to the natural materials with which they work.


Started in 2000, Nature Wagon has gradually expanded to become a
highly popular year-round program. In fiscal 2014, five Honda operating
sites held 200 workshops for more than 9,600 children with the help of
2,100 volunteers (repeats counted).

Nature Wagon workshops

Lecture
Every workshop starts with a lecture
that uses picture cards and other
tools to convey the importance of
environmental conservation.

Forest Fantasy Workshop Stone painting Natural salt production Natural vegetable dyes
Wood, leaves, acorns, and Pictures are painted on Deep-sea water is boiled Camellia flower petals and
other materials are used to river stones, bringing their down to make mineral-rich onion skins are used to tie-dye
make unique works of art. unique shapes to life. The salt. By learning the salt-mak- fabric. Children learn about
The materials teach chil- diverse stones teach chil- ing process, children learn the connection between
dren the value of forests. dren the value of rivers. the value of the ocean. nature and human culture.

March 10, 2013  December 17, 2013  October 24, 2013 October 29, 2013
Chuo Elementary School in Koshi Daiichi Elementary School Yamaguchi Elementary School in Midorigaoka Elementary School
Tokorozawa, Saitama in Koshi, Kumamoto Tokorozawa, Saitama in Utsunomiya, Tochigi

● Remarks from a teacher at Koshi Daiichi Elementary School in Kumamoto, where a stone painting workshop was held
I found this program to be very fitting for a company that is always thinking about the environment and developing eco-friendly

products.
Children rarely pick up stones to make something with them, though they see them everywhere. So this class was a great way for
them to experience this natural material close up. I would have thought painting on a round stone is harder than on a flat canvas,

but the children seemed to have more fun than usual.


The Nature Wagon workshop was also a great opportunity because, being a small school in a rural community, it's hard for us to

prepare this much material, and the children don't get to meet working professionals that often. We are very thankful.

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Direction Products Management 8 domains Honda ENVIRONMENTAL ANNUAL REPORT 2014

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Philanthropic Environmental Initiatives INDEX >

■ Cleanup campaigns at Honda sites nationwide Community Topic

One community-oriented philanthropic activity in which all


Honda business sites engage are "cleanup campaigns," clean-
up events held on a regular basis in neighborhoods and pub-
lic spaces near Honda offices and factories. These programs
run the gamut in terms of age and size—from the oldest, a
40-year-old program involving a couple hundred volunteers,
mainly associates and their family members, to one involv-
ing roughly 80% of associates from Kumamoto Factory, or
around 2,000 associates. One of the largest, the Lake Hamana
Cleanup Campaign, is a 24,000-person effort hosted by the
cities of Hamamatsu and Kosai in conjunction with the Ham-
amatsu Plant of the Transmission Factory, as well as Honda
suppliers, local residents, and employees of other companies.
Honda will remain committed to maintaining and cultivating
October 26, 2013 - At a Fall Cleanup Campaign at Kumamoto Factory, a clean living environment in local communities through
held as part of a twice-yearly program including fall and spring, around these cleanup events.
80% of associates—around 2,000 people—showed up to help.

■ HondaWoods: Vibrant forests for our children, for our communities Community Topic

● Cultivating forests local residents can enjoy


Starting in 2014, Honda will start managing the Com-
munity Forests under a new policy called the Satoyama
Concept. The goal of the Satoyama Concept is to culti-
● No concrete walls vate forests that are more sustainable, in harmony with
In keeping with the ideals of founder Soichiro Honda, local communities, and resilient to change. Achieving
who said that no concrete walls should be built to sep- this will involve making changes to the forests, for ex-
arate local communities from the grounds of Honda ample by culling trees in dense areas and clearing trees,
facilities, in 1976 we launched the Community Forest from the roots, that have grown beyond a certain height
initiative, a program to plant and cultivate indigenous to encourage new, younger growth.
trees along the border of each facility in Japan.
● HondaWoods: created by everyone, for everyone
Hello Woods, located at the Twin Ring Motegi speed-
way in Tochigi, Japan, is the headquarters of Honda's
sustainable forest management activities and also the
birthplace of the Satoyama Concept. The knowledge
gained at Hello Woods will be actively used to advance
Community Forest, Hamamatsu Community Forest today
Factory (1976) our new forest management initiatives at operating
sites across Japan. To mark the first step toward these
● Community Forests 30 years later new community forests, we have decided to call them
A detailed survey of Honda Community Forests conduct- "HondaWoods." Our vision for HondaWoods is to co-cre-
ed from 2011 to 2012 showed that the trees had grown ate with our stakeholders forests that can be a place of
beyond original expectations and were starting to create enjoyment and relaxation for everyone.
problems for local communities: their large limbs were
encroaching on neighbors' properties, obstructing traffic,
and dropping large amounts of leaves in the streets.
As a result, Honda decided to change its forest man-
agement policy from the traditional "intervene as little
as possible" method influenced by the awe-inspiring
"guardian forests" of Shinto shrines, to an active ap-
proach aimed at cultivating vibrant, sustainable wood-
lands similar to the satoyama landscapes of rural Japan.
Illustrated vision for HondaWoods

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Facilities in Japan that disclose environmental data Honda ENVIRONMENTAL ANNUAL REPORT 2014

Japan INDEX >

See the following website for environmental data disclosed by facilities in Japan (in Japanese).
http://www.honda.co.jp/environment/report/japan/data/

■ Honda Motor Co., Ltd.


●Address: 1-10-1 Shin-Sayama, Sayama City, Saitama Prefecture, Japan
Sayama Automobile Plant, Saitama Factory
http://www.honda.co.jp/environment/report/media/download/pdf/data2014sayama.pdf (in Japanese)

●Address: 2-1-1 Hibaridai, Ogawa-machi, Hiki-gun, Saitama Prefecture, Japan


Engine Plant, Saitama Factory
http://www.honda.co.jp/environment/report/media/download/pdf/data2014ogawa.pdf (in Japanese)

●Address: 2354 Tomita, Yorii-machi, Osato-gun, Saitama Prefecture, Japan


Yorii Automobile Plant, Saitama Factory
http://www.honda.co.jp/environment/report/media/download/pdf/data2014yorii.pdf (in Japanese)

●Address: 1907 Hirata-cho, Suzuka City, Mie Prefecture, Japan


Suzuka Factory
http://www.honda.co.jp/environment/report/media/download/pdf/data2014suzuka.pdf (in Japanese)

●Address: 1500 Hirakawa, Ohzu-machi, Kikuchi-gun, Kumamoto Prefecture, Japan


Kumamoto Factory
http://www.honda.co.jp/environment/report/media/download/pdf/data2014kumamoto.pdf (in Japanese)

Hamamatsu Plant, ●Address: 1-13-1 Aoi Higashi, Naka-ku, Hamamatsu City, Shizuoka Prefecture, Japan
Transmission Factory http://www.honda.co.jp/environment/report/media/download/pdf/data2014hamamatsu.pdf (in Japanese)

●Address: 5794-1 Kiga, Hosoe-cho, Kita-ku, Hamamatsu City, Japan


Outboard Engine Plant
http://www.honda.co.jp/environment/report/media/download/pdf/data2014hosoe.pdf (in Japanese)

Powertrain Parts Plant, ●Address: 19 Matsuyama-cho, Mooka City, Tochigi Prefecture, Japan
Powertrain Unit Factory http://www.honda.co.jp/environment/report/media/download/pdf/data2014tochigi.pdf (in Japanese)

●Address: 2900 Kamitakanezawa-oaza, Takanezawa-machi, Shioya-gun, Tochigi Prefecture, Japan


Production Supervisory Unit
http://www.honda.co.jp/environment/report/media/download/pdf/data2014seisan.pdf (in Japanese)

●Address: 52-1 Hagadai, Haga-machi, Haga-gun, Tochigi Prefecture, Japan


Quality Assurance Division
http://www.honda.co.jp/environment/report/media/download/pdf/data2014hinshitsu.pdf (in Japanese)

■ Honda R&D Co., Ltd.


Automobile R&D Center, Wako
●Address: 1-4-1 Chuo, Wako City, Saitama Prefecture, Japan
Fundamental Technology Research Center
http://www.honda.co.jp/environment/report/media/download/pdf/data2014rd_wako.pdf (in Japanese)
Aircraft Engine R&D Center

Automobile R&D Center ●Address: 4630 Shimotakanesawa, Haga-machi, Haga-gun, Tochigi Prefecture, Japan
(Tochigi / Tochigi Proving Ground) http://www.honda.co.jp/environment/report/media/download/pdf/data2014rd_tochigi.pdf (in Japanese)

Motorcycle R&D Center / ●Address: 3-15-1 Senzui, Asaka City, Saitama Prefecture, Japan
Power Products R&D Center http://www.honda.co.jp/environment/report/media/download/pdf/data2014rd_asaka.pdf (in Japanese)

●Address: 21-10, Takasu-cho, Kamikawa-gun, Hokkaido, Japan


Takasu Proving Ground
http://www.honda.co.jp/environment/report/media/download/pdf/data2014pq_takasu.pdf (in Japanese)

■ Honda Engineering Co., Ltd.


●Address: 6-1 Hagadai, Haga-machi, Haga-gun, Tochigi Prefecture, Japan
Honda Engineering Co., Ltd.
http://www.honda.co.jp/environment/report/media/download/pdf/data2014eg.pdf (in Japanese)

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Promoting environmental communication Honda ENVIRONMENTAL ANNUAL REPORT 2014

Japan INDEX >

Honda communicates with people affected by our business operations, including consumers and people living near
our business sites, as part of our environmental management efforts. We distribute environmental information widely
through various media and over the Internet and have also established communication channels to allow us to gather
and respond to input from local communities.

Environmental publications

Honda Honda Environmental Annual Report


Environmental This report provides a bird's eye view of Honda environmental initiatives, including basic
policies, initiatives in each business domain, and long-term goals, while explaining specific
環境年次

Annual Report
レポート

progress made in each area.


PDF WEB http://www.honda.co.jp/environment/report/media/download/

Honda Ecology+ This report describes the various efforts we are making to realize the Honda Environmental
(in Japanese) and Safety Vision, with a special focus on initiatives in product research & development.
PDF brochure http://www.honda.co.jp/environment/report/media/download/pdf/Honda_ecoplus.pdf

Written for children in the upper elementary grades, Honda Eco Book uses photographs and
Honda Eco Book
illustrations to clearly explain what Honda is doing and what kids can do at home to tackle major
(in Japanese)
environmental problems.
PDF brochure http://www.honda.co.jp/environment/report/media/download/pdf/kids-ecobook.pdf

Honda Action for


Blue Skies Handbook This booklet introduces our environmental mascot Leafel and some of the environmental
(in Japanese) initiatives Honda has undertaken to date.
PDF brochure

Environment section
A web portal for environment related-information from Honda.
of the Honda
http://www.honda.co.jp/environment/
Worldwide website
http://world.honda.com/environment/
WEB
>

Environmental This regularly updated website introduces Honda environmental


Documentary– initiatives, with a special focus on our associates and technologies.
>
Honda Face http://www.honda.co.jp/environment/face/
WEB http://world.honda.com/environment/face/

Environmental TOPICS
Timely information about Honda's latest environmental topics.
> (in Japanese)
http://www.honda.co.jp/environment/topics/
WEB

Honda e-PRESS A Facebook page that provides a variety of information and content
> (in Japanese) about Honda's environmental initiatives.
SNS https://www.facebook.com/honda.epress

Leafel's Forest This web content provides information about Leafel, Honda's environmental
> (in Japanese) mascot, introducing Honda's environmental initiatives through Leafel's story.
WEB http://www.honda.co.jp/leafel

This animated global ad brings to life the key elements of the Honda global
Honda global environmental slogan
environmental symbol and slogan, a declaration of our commitment to do
Part 1: Blue Skies for Our Children
more to realize the Honda Environmental and Safety Vision.
Part 2: Blue Skies for Our Children
Part 1 http://www.honda.co.jp/environment/report/media/download/blue_skies/
(Generation to Generation) VIDEO
Part 2 http://www.honda.co.jp/environment/report/media/download/blue_skies_gg/

Blue Skies for Our Children This video introduces Honda environmental initiatives while highlighting
Part 1: Triple Zero Initiatives (in Japanese) environmental technologies for products and initiatives in our business
Part 2: Our ideas for the next generation: activities.
Product development at Honda
Part 1 http://www.honda.co.jp/environment/report/media/download/triple_zero/
(in Japanese)
VIDEO Part 2 http://www.honda.co.jp/environment/report/media/download/triple_zero2/

Leafel's Blue Sky Class Created for upper-level elementary school children, this video introduces global warming
Part 1: What Kind of Home is HSHS? and Honda's efforts to fight it, narrated by the Honda environmental mascot Leafel.
(in Japanese) VIDEO http://www.honda.co.jp/environment/report/media/download/aozora-guide1/

J64
GRI Guideline Index Honda ENVIRONMENTAL ANNUAL REPORT 2014

Japan
The table below indicates the pages in the Honda Environment Annual Report that correspond to the General Standard Disclosures and the Specific INDEX >

Standard Disclosures (Category: Environmental) in the Sustainability Reporting Guidelines issued by the Global Reporting Initiative (GRI).

Profile Page
Provide a statement from the most senior decisionmaker of the organization (such as CEO, chair, or equivalent senior position) about
Strategy and 1
the relevance of sustainability to the organization and its strategy for addressing sustainability.
G06-14
Analysis 2 Provide a description of key impacts, risks, and opportunities. G20-21
3 Report the name of the organization. G03
Organizational
4 Report the primary brands, products, and services. G03
Profile
5 Report the location of the organization's headquarters. G03
Report the number of countries where the organization operates, and names of countries where either the organization has significant
6 operations or that are specifically relevant to the sustainability topics covered in the report. G02

7 Report the nature of ownership and legal form. G03


8 Report the markets served. G02
9 Report the scale of the organization. G02-03
a. Report the total number of employees by employment contract and gender.
b. Report the total number of permanent employees by employment type and gender.
c. Report the total workforce by employees and supervised workers and by gender.
10 d. Report the total workforce by region and gender. □
e. Report whether a substantial portion of the organization's work is performed by workers who are legally recognized as self-employed,
 or by individuals other than employees or supervised workers, including employees and supervised employees of contractors.
f. Report any significant variations in employment numbers (such as seasonal variations in employment in the tourism or agricultural industries).

11 Report the percentage of total employees covered by collective bargaining agreements. □


12 Describe the organization's supply chain. G47
13 Report any significant changes during the reporting period regarding the organization's size, structure, ownership or its supply chain. G45
14 Report whether and how the precautionary approach or principle is addressed by the organization. G19,G21,G45
List externally developed economic, environmental and social charters, principles, or other initiatives to which the organization
15 subscribes or which it endorces. G05,G28,G30,G32-33
List memberships of associations (such as industry association) and national or international advocacy organizations in which the
16 organization holds a position on the governance body. G05
a. List all entities included in the organization's consolidated financial statements or equivalent documents.
Identified 17 b. Report whether any entity included in the organization's consolidated financial statements or equivalent documents is not covered by the report. □
Material Aspects a. Explain the process for defining the report content and the Aspect Boundaries.
18 b. Explain how the organization has implemented the Reporting Principles for Defining Report Content. G20-21
and Boundaries
19 List all the material Aspects identified in the process for defining report content. G54-55
20 For each material Aspect, report the Aspect Boundary within the organization. G01
21 For each material Aspect, report the Aspect Boundary outside the organization. G01
22 Report the effect of any restatements of information provided in previous reports, and the reasons for such restatements. G01,G50
23 Report significant changes from previous reporting periods in the Scope and Aspect Boundaries. G01

Stakeholder 24 Provide a list of stakeholder groups engaged by the organization. G18


engagement 25 Report the basis for identification and selection of stakeholders with whom to engage. G20-21
26 Report the organization's approach to stakeholder engagement, including frequency of engagement by type and by stakeholder group. G20-21
Report key topics and concerns that have been raised through stakeholder engagement, and how the organization has responded to
27 those key topics and concerns, including through its reporting.
G20-21

Report Profile 28 Reporting period for information provided. G01


29 Date of most recent previous report (if any). G01
30 Reporting cycle. G01
31 Provide the contact point for questions regarding the report or its contents. G56
a. Report the 'in accordance' option the organization has chosen.
b. Report the GRI Content Index for the chosen option. G54-55
32 c. Report the reference to the external Assurance Report if the report has been externally assured.
(Comprehensive)
GRI Content Index for 'in accordance' - Core
GRI Content Index for 'in accordance' - Comprehensive

a. Report the organization's policy and current practice with regard to seeking external assurance for the report.
b. If not included in the assurance report accompanying the sustainability report, report the scope and basis of any external assurance provided.
33 c. Report the relationship between the organization and the assurance providers.
G04
d. Report whether the highest governance body or senior executives are involved in seeking assurance for the organization's sustainability report.

Report the governance structure of the organization, including committees of the highest governance body. Identify any committees
Governance 34 responsible for decision-making on economic, environmental and social impacts. G45

Report the process for delegating authority for economic, environmental and social topics from the highest governance body to senior
35 G45
executives and other employees.

Report whether the organization has appointed an executive-level position or positions with responsibility for economic, environmental
36 and social topics, and whether post holders report directly to the highest governance body.
G45

Report processes for consultation between stakeholders and the highest governance body on economic, environmental and social topics. If
37 G45
consultation is delegated, describe to whom and any feedback processes to the highest governance body.
Report the composition of the highest governance body and its committees by:
  ・Executive or non-executive
  ・Independence
  ・Tenure on the governance body
38   ・Number of each individual's other significant positions and commitments, and the nature of the commitments □
  ・Gender
  ・Membership of under-represented social groups
  ・Competences relating to economic, environmental and social impacts
  ・Stakeholder representation
39 Report whether the Chair of the highest governance body is also an executive officer. G06-G14
Report the nomination and selection processes for the highest governance body and its committees, and the criteria used for
40 nominating and selecting highest governance body members.

Report processes for the highest governance body to ensure conflicts of interest are avoided and managed. Report whether conflicts of
41 interest are disclosed to stakeholders.

Report the highest governance body's and senior executives' roles in the development, approval, and updating of the organization's
42 purpose, value or mission statements, strategies, policies, and goals related to economic, environmental and social impacts. G45

Report the measures taken to develop and enhance the highest governance body's collective knowledge of economic, environmental
43 and social topics. G08-G14

Page numbers that begin with G indicate pages in the Global report.
Page numbers that begin with J indicate pages in the Japan report.
□: Indicators related to non-environmental categories
For further information on EN-Web, see the Honda Worldwide website's environmental section. http://world.honda.com/environment/ J65
Honda ENVIRONMENTAL ANNUAL REPORT 2014

Japan
GRI Guideline Index INDEX >

Governance a. Report the processes for evaluation of the highest governance body's performance with respect to governance of economic,
  environmental and social topics. Report whether such evaluation is independent or not, and its frequency. Report whether such
44   evaluation is a self-assessment. □
b. Report actions taken in response to evaluation of the highest governance body's performance with respect to governance of economic,
  environmental and social topics, including, as a minimum, changes in membership and organizational practice.
a. Report the highest governance body's role in the identification and management of economic, environmental and social
  impacts, risks, and opportunities. lnclude the highest governance body's role in the implementation of due diligence processes
45 b. Report whether stakeholder consultation is used to support the highest governance body's identification and management of G20-21
  economic, environmental and social impacts, risks, and opportunities.
Report the highest governance body's role in reviewing the effectiveness of the organization's risk management processes for economic,
46 environmental and social topics.
G21,G45

47 Report the frequency of the highest governance body's review of economic, environmental and social impacts, risks, and opportunities. G21,G45
Report the highest committee or position that formally reviews and approves the organization's sustainability report and
48 G45
ensures that all material Aspects are covered.
49 Report the process for communicating critical concerns to the highest governance body. G45
Report the nature and total number of critical concerns that were communicated to the highest governance body and the
50 mechanism(s) used to address and resolve them.
G20-21,G45

51 Report the remuneration policies for the highest governance body and senior executives for the below types of remuneration. □
Report the process for determining remuneration. Report whether remuneration consultants are involved in determining
52 remuneration and whether they are independent of management. Report any other relationships which the remuneration □
consultants have with the organization.
Report how stakeholders' views are sought and taken into account regarding remuneration, including the results of votes on
53 remuneration policies and proposals, if applicable.

Report the ratio of the annual total compensation for the organization's highest-paid individual in each country of significant
54 operations to the median annual total compensation for all employees (excluding the highest-paid individual) in the same country. □
Report the ratio of percentage increase in annual total compensation for the organization's highest-paid individual in each
55 country of significant operations to the median percentage increase in annual total compensation for all employees (excluding □
the highest-paid individual) in the same country.

Ethics and 56 Describe the organization's values, principles, standards and norms of behavior such as codes of conduct and codes of ethics. G18-19,G26
Report the internal and external mechanisms for seeking advice on ethical and lawful behavior, and matters related to
Integrity 57 organizational integrity, such as helplines or advice lines. □
Report the internal and external mechanisms for reporting concerns about unethical or unlawful behavior, and matters related
58 to organizational integrity, such as escalation through line management, whistleblowing mechanisms or hotlines.

Disclosure level
Environmental Performance Indicators Page Non-consolidated Consolidated
Partly Fully Partly Fully

Disclosures on Management Approach (DMA) G18-30,G45-49

Materials EN-1 Materials used by weight or volume. ( J36)


EN-2 Percentage of materials used that are recycled input materials. ー Not disclosed

Energy EN-3 Energy consumption within the organization. G50


EN-4 Energy consumption ouside of the organization. G50
EN-5 Energy intensity. ー Disclosed as CO2 equivalent

EN-6 Reduction of energy consumption. G50


EN-7 Reduction in energy requirements of products and services. G27,G31

Water EN-8 Total water withdrawal by source. G50


EN-9 Water sources significantly affected by withdrawal of water. EN-Web
EN-10 Percentage and total volume of water recycled and reused. ( J39)

Biodiversity EN-11
Operational sites owned, leased, managed in, or adjacent to, protected areas and areas of high
G16
biodiversity value outside protected areas.

Description of significant impacts of activities, products, and services on biodiversity in protected areas
EN-12 and areas of high biodiversity value outside protected areas. G16

EN-13 Habitats protected or restored. G16, (J60,J62)


Total number of IUCN Red List species and national conservation list species with habitats in areas
EN-14 affected by operations, by level of extinction risk. G16

Emissions EN-15 Direct greenhouse gas (GHG) emissions. (Scope 1) G50


EN-16 Energy indirect greenhouse gas (GHG) emissions. (Scope 2) G50
EN-17 Other indirect greenhouse gas (GHG) emissions. (Scope 3) G47
EN-18 Greenhouse gas (GHG) emissions intensity. G27,G29
EN-19 Reduction of greenhouse gas (GHG) emissions. G51-53
EN-20 Emissions of ozone-depleting substances. (ODS) ー Not disclosed

EN-21 NOx, SOx, and other significant air emissions. G50


Effluents and EN-22 Total water discharge by quality and destination. G50
Wastes EN-23 Total weight of waste by type and disposal method. G50
EN-24 Total number and volume of significant spills. ( J21-22)
Weight of transported, imported, exported, or treated waste deemed hazardous under the terms of the
EN-25 Basel Convention Annex I, II, III, and VIII, and percentage of transported waste shipped internationally. ー No waste transported

Identity, size, protected status, and biodiversity value of water bodies and related habitats significantly
EN-26 affected by the reporting organization's discharges of water and runoff. EN-Web

Products and EN-27 Extent of impact mitigation of environmental impacts of products and services. G19-25,G27-40
Services EN-28 Percentage of products sold and their packaging materials that are reclaimed by category. ( J43,J51)
Monetary value of significant fines and total number of non-monetary sanctions for noncompliance
Compliance EN-29 with environmental laws and regulations.
( J21-22,J24)

Significant environmental impacts of transporting products and other goods and materials used for the
Transport EN-30 organization's operations, and transporting members of the workforce. G29,G47-48

Overall EN-31 Total environmental protection expenditures and investments by type. ( J24)

Supplier Environmental EN-32 Percentage of new suppliers that were screened using environmental criteria. ( J32-33)
Assessment EN-33 Significant actual and potential negative environmental impacts in the supply chain and ations taken. ( J32-33)
Environmental Number of grievances about environmental impacts filed, addressed, and resolved through formal
EN-34 grievance mechanisms. ( J21-22)
Grievance Mechanisms

Page numbers that begin with G indicate pages in the Global report.
Page numbers that begin with J indicate pages in the Japan report.
□: Indicators related to non-environmental categories
For further information on EN-Web, see the Honda Worldwide website’s environmental section. http://world.honda.com/environment/ J66
Honda ENVIRONMENTAL ANNUAL REPORT 2014

Japan INDEX >

Honda Environmental Annual Report 2014


Editorial concept
Developed around a "people's passion" concept, this year's environmental report features ap-
pearances from an array of Honda associates, including the Japan Environmental Committee
Chairman, executive officers from all domains, operating managers, associates, and many
more. Each expresses his or her own aspirations from a unique position within the company,
allowing readers to more vividly sense the varied but united passion Honda associates bring to
environmental issues and their mission to make Honda a truly globalized company.

Design concept
Honda operates its manufacturing business with concern for the environment and with the
mission of keeping our skies blue, our water pure, and our land green. The clear hexagon on
the cover evokes the image of sunlight and symbolizes Honda's six operating regions world-
wide, while the natural landscape in the background represents what Honda is driven to pro-
tect. The morning sun over Mt. Fuji, a symbol of Japan, expresses the firm ambition of Japan
Operations, which relaunched under a new organizational structure in fiscal 2015, to lead Hon-
da’s other five operating regions in the area of environmental management.

● Domain coordinators
Sales and services Green Factory Promotion Block••••••••••••••••••• Yuji Mukano
Automobiles••••••••••••••••••••••••••••••••••••••• Shigeaki Kato Head Office •••••••••••••••••••••••••••••••••••••••••••• Takao Aoki
Yasumasa Shimizu
Motorcycles•••••••••••••••••••••••••••••••••••••• Masaharu Iuchi Honda R&D Co., Ltd.
Power Products••••••••••••••••••••••••••••••Kazuhiro Yokoyama Automobile R&D Center (Wako)/
Service and Parts•••••••••••••••••••••••••••••••••••• Wataru Karo Fundamental Technology Research Center/
Environmental Promotion Center••••••••••••••• Tomokazu Abe Aircraft Engine R&D Center••••••••••••••••••• Koichiro Kageta
Motorcycle R&D Center/
Purchasing •••••••••••••••••••••••••••••••••••••••••• Hiroshi Saito Power Products R&D Center••••••••••••••••••• Shigehisa Fujita
Automobile R&D Center (Tochigi)•••••••••••••• Shinya Ogawa
Environmental Administrators in Production and Office Operations Takasu Proving Ground•••••••••••••••••••••••••••••• Toru Sasaki
Saitama Factory ••••••••••••••••••••••••••••••••••••• Hideki Oishi Honda Engineering Co., Ltd.••••••••••••••••• Masuhiro Sakurai
Powertrain Parts Plant, Powertrain Unit Factory •••••• Shu Suga
Hamamatsu Plant, Transmission Factory / Transportation
Outboard Engine Plant ••••••••••••••••••••••••••••• Satoru Isano Products and component part sets ••••••••••• Masakatsu Sato
Suzuka Factory •••••••••••••••••••••••••••••••• Hiromasa Iwasaki
Kumamoto Factory ••••••••••••••••••••••••••••• Takayoshi Fukai Administration
Production Supervisory Unit •••••••••••• Hirotsugu Kawanaka Human Resources •••••••••••••••••••••••••••••• Manabu Ozawa
Quality Assurance Division ••••••••••••••••••••••••• Yosito Hora Corporate Communications•••••••••••••••••••••• Kaoru Tanaka
Intellectual Property••••••••••••••••••••••••••• Hirokazu Bessyo
● Environmental Annual Report production staff    *Current as of June 1, 2014.
  
Honda Motor Co., Ltd.
Yuichi Arima, Kaoru Iguchi, Emiko Iwabuchi, Nobuhiro ● About the Honda global environmental
Utada, Michiharu Ohno, Shinji Kameda, Tetsu Kawasaki, slogan and symbol
Toshimitsu Gomibuchi, Masakatsu Sato, Tatsuo Tagoku, Our goal, as expressed in the Honda
Kenta Chugun, Jun Doi, Makoto Naniwa, Takuya Nishioka, Environmental and Safety Vision, is to
leave the joy and freedom of mobility for
Kenichi Nonome, Kumiko Hashimoto, Koji Hayami, Atsuki
future generations (for our children). Our
Hina, Sayaka Matsuoka, Takehiko Matsufuji, Noboru environmental slogan and symbol embody
Mitarai, Keiko Yamada, Kyoko Yokoyama this aspiration as we strive to create a
sustainable society where people can
Honda R&D Co., Ltd. enjoy life (blue skies).
Hiroshi Urano, Takuya Goto, Hideo Suzuki, Hiroyuki
Sekimata, Shosaku Chiba, Takashi Murayama, Jun ● Please direct enquiries to:
Yamaguchi, Tetsu Wada Environment & Safety Planning Office

Honda Engineering Co., Ltd. Tel: +81-(0)3-5412-1155 Fax: +81-(0)3-5412-1154

Yuichi Tsuchimoto, Hiroshi Mikami You can read this report, the latest news and updates on the
Honda Worldwide website.
Honda Access Corporation http://world.honda.com/environment/
Yasunori Goto, Norio Takahashi

Honda Motorcycle Japan Co., Ltd. Publisher Environment & Safety Planning Office
Yuji Suzuki, Naoki Honda Manager Michio Shinohara
Editors Hisashi Kato, Jun Masuda,
Production Yukihiko Kakutani, Satoru Kikunaga,
mode2 COMPASS Asami Umeda, Takatsugu Ukai,
Fujita Noriaki, Chiharu Shiraki,
Photo
Shunsuke Kawasaki
 Kosuke Tsuruta, Hisashi Kato J67
Honda Motor Co., Ltd.
2-1-1 Minami Aoyama, Minato-ku
Tokyo 107-8556, Japan
June 2014
M2 B 0 0 0 01406-04

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