Environmental Annual Report 2014 Honda Asia & Oceania

w w w . a s i a n h o n d a . c o m

About the Honda Environmental Annual Report

• A Regional Approach to Business and the Environment Guidedbyaphilosophyofbuildingproductsclosetothecustomer,Hondahasmanufacturingoperationsinsixregionsworldwide.Infiscal2014,theseactivitiesbroughtjoytopeopleworldwidethroughthesaleofroughly27millionproducts.Tocontinuallycreatecompetitiveproductsthatanticipatecustomerneedsinallsixregions,we'veshiftedtoanewglobaloperationalstructurethatgiveseachregionmoreautonomyfordoingitsjob.Thisalsoappliestoenvironmentalmanagement:Eachregionisnowimplementinginitiativesitdeemsmosteffectiveformeetinglocalenvironmentallawsandstandardsandtacklinglocalchallenges.

• Global Report and Six Regional ReportsForreportingontheenvironmentalactivitiesacrossourglobalorganization,we'vebrokendownourannualenvironmentalreportintooneglobalreportandsixregionalreports.HondaEnvironmentalAnnualReport2014conveysourglobalstanceonenvironmentalissues,ourvisionforabetterfuture,andtheresultsofeffortstomakeourproductsandbusinessactivitiesmoreenvironmentallyresponsible.Theregionalreportsprovideamoreindepthlookattheseactivitiesineachregion.Byissuingallsevenannualreports,wearemakinganactiveefforttodiscloseinformationoninitiativesandresultsineverycorneroftheworld.

Regional unit sales and environmental reports (FY2014)

Latest data as of March 31, 2014

*Reportcoversfrom2013areshownforallregionsexceptJapanandAsia&Oceania

NorthAmerica

289,000

1,751,000

2,718,000

SouthAmerica

1,647,000161,000

137,000

Europe/MiddleEast/Africa

312,000

252,000

1,155,000Asia&Oceania

13,260,000

560,000

1,129,000

China

•EnvironmentalReport

1,305,000

788,000

582,000

Japan

225,000848,000

312,000

17,041,000

4,362,000

6,036,000

Global

AutomobilesMotorcyclesPower

products and other







INDONESIA P.T.AstraHondaMotorP.T.HondaPowerProductsIndonesiaP.T.HondaProspectMotorP.T.HondaPrecisionPartsManufacturingP.T.HondaAccessIndonesiaLtd.

AHJHPPIHPMHPPMHAC-IN

MALAYSIA HondaMalaysiaSdn.Bhd.BoonSiewHondaSdn.Bhd.HICOM-HondaManufacturingMalaysiaSdn.Bhd.HondaAutoPartsManufacturingSdn.Bhd.

HMSBBSHHICOMMHAP

INDIA HondaMotorcycle&ScooterIndia(Private)Ltd.HondaMotorIndia(Private)Ltd.HondaR&DIndia(Private)Ltd.HondaCarsIndiaLtd.HondaSielPowerProductsLtd.HondaAccessIndia(Private)Ltd.

HMSIHMIHRIDHCILHSPPHAC-ID

PHILIPPINES HondaCarPhilippinesInc.HondaPhilippinesInc.HondaPartsManufacturingCorp.

HCPIHPIHPMC

VIETNAM VietnamAutoPartsCo.,Ltd.HondaVietnamCo.,Ltd.

VAPHVN

AUSTRALIA HondaAustraliaM.&P.E.Pty.Ltd.HondaAustraliaPty.Ltd.

AUH-MPEAUH

NEW ZEALAND HondaNewZealandLtd. HNZ

KOREA HondaKoreaCo.,Ltd. HKO

BANGLADESH BangladeshHondaLtd. BHL

PAKISTAN AtlasHondaLtd.HondaAtlasCars(Pakistan)Ltd.HondaAtlasPowerProduct(Private)Ltd.

AHLHACPLHAPPL

TAIWAN HondaTaiwanMotorCo.,Ltd.HondaTaiwanCo.,Ltd.HondaAccessTaiwanCo.,Ltd.

HTW-MHTWHAC-TW

SINGAPORE BukitBatokDrivingCenterLtd.SingaporeSafetyDrivingCenterLtd.

BBDCSSDC

The Asia & Oceania RegionHonda Environmental Network in

OCEANIA

ASIA

THAILAND AsianHondaMotorCo.,Ltd.A.P.HondaCo.,Ltd.AsianPartsManufacturingCo.,Ltd.HondaAutomobile(Thailand)Co.,Ltd.HondaEngineeringAsianCo.,Ltd.HondaR&DAsiaPacificCo.,Ltd.HodnaR&DSoutheastAsiaCo.,Ltd.ThaiHondaManufacturingCo.,Ltd.HondaLeasingThailandCo.,Ltd.HondaAutomobileInsuranceBrokerCo.,Ltd.HondaAccessAsiaAndOceaniaCo.,Ltd.

ASHAPHAPMHATCEG-ASHRAPHRSTTHHLTCHAIBHAC-AO

ASIA

IntroductionHondaEnvironmentalNetworkintheAsia&OceaniaRegion 06

Contents 08

TopMessage 10

DirectionThe Road to a Healthier Environment

TheRoadtoaHealthierEnvironment 12

HondaEnvironmentStatement/HondaEnvironmentalVision 14

PursuingtheHondaEnvironmentalVision 16

BiodiversityInitiatives 30

ProgressinMeetingEnvironmentalTargets 34

GlobalGlobal Initiatives

GlobalEnvironmentalManagement 50

EnvironmentalInitiativesinProductDevelopment 66

Asia & OceaniaRegional Initiatives

HondaEnvironmentalStrategyintheAsia&OceaniaRegion 104

EnvironmentalManagementSystemsintheAsia&OceaniaRegion 106

Contents

Environment-related external relations activitiesHonda is a member of theWorld Business Council for Sustainable Development (WBCSD), and a member of theWBCSD'sUrbanInfrastructureInitiative(UII)CoreGroup.WetookpartintheUIICoreGroup,whichreleaseditsfinalreportonApril7,2014,bydrawingupplansforsustainablemobilityinfrastructure.WealsoareparticipatinginSustainableMobilityProject2.0.

Hondaalsoconductsvariousexternal relationsactivities incollaborationwithpolicymakers ineach region.Weadvise regionaland national governing bodies on how tomakemobility systems environmentally responsible from a technological standpoint,partnerwithgovernmentsforconductingtechnologydevelopmentprojects,andserveoncommitteesheldbynationalgovernmentagencies.

Public-PrivatePartnerships:E-KizunaProject (SaitamaPrefecture,Japan),CaliforniaFuelCellPartnership (California,U.S.),andothersPublic-PrivatePartnerships:E-KIZUNAProject(SaitamaPrefecture,Japan),CaliforniaFuelCellPartnership(California,U.S.),andothers

About this ReportWhat’sInsideThisreportcoversHonda’sactivitiesintheAsia&Oceaniaregion-Thailand,Indonesia,Philippines,India,Pakistan,Bangladesh,Malaysia, Singapore, Vietnam, Taiwan, Korea, Australia andNewZealand-includingcompanypolicies, theoveralldirectionofHonda’senvironmentalinitiatives,andacurrentassessmentoftheenvironmentalimpactofitsoperations-forthefiscalyearthatbeganApril1,2013,andendedMarch31,2014(FY2014).NotethatthereportalsoreferstoactivitiesinFY2014aswellastopreviousongoinginitiatives.

Electronic FormatToreducetheenvironmental impactofHonda’sreporting, thisreportispublishedinelectronicformatonly.

Environmental Information DisclosureAsia & Oceania Environmental Annual Report is published inordertopresentenvironmentalcorporateinformationincludingGlobal Honda’s policies and future direction with respect totheenvironment.Thereportfocusesparticularlyontheresults

oftheyear’sinitiativesineachmanagementdomain,andonprogressmadetowardtargetsfromthepointofviewofHonda’scorporateactivitiesthroughoutitsproducts’lifecycles.

Bydisclosing awide rangeof information,wehope to facilitate communication and feedback,therebystrengtheningourenvironmentalconservationinitiativesgoingforward.

Editorial Policy for the Asia & Oceania Environmental Annual ReportIntheAsia&Oceaniaregion,Hondarecognizedthataninvolvementineffortstocombatvariouskindsofenvironmentalproblemswasoneofitsmostimportantmanagementpriorities.In2000,AsianHondaMotor(ASH)firstpublishedtheAsia&OceaniaEnvironmentalAnnualReportfortheregion.Thesecondeditionwassubsequentlyreleasedin2003.Wepublishedthereporttoinformthepublicaboutourenvironmentalinitiatives.

Honda has been implementing various environmental initiatives to reduce the environmentalimpacts in the region, alongwith thepolicy and legislation in eachcountrywhichhaveprovento be stronger in recent days. We released the 4th edition of the report in 2013. We launchthe5theditionthisyear,followingfurtherdevelopmentsofenvironmentalmanagementintheAsia&Oceaniaregion.

Wewillcontinuetoinformthepublicabouttheseinitiatives,andinparticularabouttheprogresswe havemade each year. Other details and information are regularly posted on our website(http://www.asianhonda.com).

Key Indicators of Honda's Environmental PerformanceCDP Global 500 Climate Change Report 2013

1st in JapanIn theCarbonDisclosure Project's 2013 survey1ofGlobal 500 companies,2

Honda earned the highest disclosure score among Japanese corporations.Wewerealsochosenfirstamong12 leadingglobalcorporationsforearningexceptionallyhighmarksinareasrelatedtobothdisclosurecontentandresults.Furthermore,wewere included in theClimateDisclosure Leadership Index(CDLI) for the third consecutive year, and was also among 56 companiesincluded in the Climate Performance Leadership Index (CPLI), an index ofcompanies selected for demonstrating leadership in combating climatechange,inwhichweearnedaperformancescoreofA,thehighest.

1.CarbonDisclosureProject(CDP)isaninternationalnon-profitmanagingtheworld’slargestdatabasefor

companiesandotherorganizationstodisclose,manage,andshareinformationrelatedtoclimatechange

mitigation.Thegroupalsopublishesitsownanalysisofthisdata.

2.Global500:The500 largestcompanies (bymarketcapitalization) thatmakeuptheFTSEGlobalEquity

IndexSeries.

17th Nikkei Environmental Management Survey

4th placeHondarankedfourthoutof1,729manufacturersexaminedinthe17thEnvironmentalManagementSurveybynewspublishingcompanyNikkeiInc.

Buna-no-Mori Environmental Survey 2013

Rank AHondaearnedthehighestrank,rankA,inthe2013Buna-no-MorienvironmentalsurveybySompoJapanNipponkoaRiskManagementInc.andwasalsoselectedasacomponentoftheBuna-no-Morieco-friendlyinvestmentfund.

Additional Information

PhilanthropicEnvironmentalInitiatives 168

HondaR&DInitiatives 164

162

116158

132152

146 136

Environmental Annual Report 2014Honda Asia & Oceania Regional10 11

Top Message

'We need to demonstrate environmental leadership in all aspects of our business.'

Asia & Oceania globalizationAsia&Oceania representsanextremely largeanddiverse region.Ourareaofoperation includesmore than20countriesandone region.Economicconditionsfluctuatebycountryasdoespeople'sawarenessofenvironmentalissues.Furthermore,environmentalregulationinanumberofcountrieswillbecomeincreasinglystrict.Realizingtheseissues,andreflectingHonda’sshifttowardanewglobaloperationalstructure,HondaAsia&Oceaniastartedactingwithgreaterautonomywithintheregion.Thiswillhelpusadaptthestructureandthemanagementofourbusinesstotheenvironmentalrulesandissuesinordertorespondtolocaldemandmoreeffectively.

Fiscal 2014 (until March 2014) in reviewLastyear,despitetheslowdownineconomicgrowthofautomobilemarketsinIndiaandThailand,ourautomobilebusinessachievedrecordsalesagaininfiscalyear2014,surpassing560,000units.Thisincludedthelaunchofourmuch-anticipatedfuel-efficientdieselmodelsinIndia.WeintroducedtheAmazeandCitydieselmodelsinIndia,whichachievedarecordofmorethan130,000vehiclesincombinedannualsales.Asequippedwitha1.5Literi-DTECdieselenginefromourEarthDreamsTechnologylineup,theAmazeandCitydieselhavebecomethemostfuel-efficientvehicles(asofAugust,2014)andhavereceivedoutstandingreviewsfromcustomersinIndia.Theall-newCitymodelinThailandalsoofferedanE85-compatibleversion.InMalaysia,sincewedecidedtobeginlocalizedhybridenergyvehicleproduction,Hondahasreceivedapositiveresponsefromourcustomers,achievingbest-sellinghybridvehiclestatusinMalaysiaforthesecondconsecutiveyear.Formotorcycles,wehavecompletedtheinstallationofelectronicfuelinjection(FI)inallproductionmodelsinIndonesia.Asidefromproducts,westartedoperatingnewautomobileplantsinIndia,Malaysia,andIndonesiawhicharedesignedtoenhanceenergysavingsandarealsoequippedwithenvironmental-friendlytechnologiesforreducingCO2emissions.

Toward the new Mid-termStriving to be a company societywants to exist,Honda continues to improve our environmental performance in the new3-year businessMid-term(starting fromApril2014 toMarch2018)by introducingnewautomobilemodelsprovidinghigh fueleconomyand lowCO2emissionswithabroaderline-upofproductstoexceedcustomerneeds,suchasE85compatible,CNGanddieselmodels.Astheworld'sleadingmanufacturerofmotorcycles,wewillexpandtheall-FIcampaignwestartedinThailandandIndonesiatoVietnam,andwewilladdourIdlingStopSystemtoallmajorscootermodels.Honda desires tomaintain our leadership position in providing fuel-efficient motorcycles by introducing engines with new low-friction technologiesengineinAsia&Oceaniamarkets.

To achieve the Honda Environmental and Safety Vision – the joyand freedom of mobility and a sustainable society where peoplecanenjoy life –weneed todemonstrate environmental leadershipinallaspectsofourbusinessinAsia&Oceania.WewanteveryonetorecognizeHondaasaleadingenvironmentalcompany.BasedonoursloganforthenewMid-termenvironmentalactionplan,“SustainandStrengthen,”we continue to reduceCO2 emissions and otherenvironmentalfootprintsfromourproductsandbusinessoperations.

NoriakiAbe,President&CEO,AsianHondaMotorCo.,Ltd.

Chairman,HondaAsia&OceaniaEnvironmentalCommittee

Top Message


30 BiodiversityInitiatives

34 ProgressinMeetingEnvironmentalTargets

ZeroCO2emissionsusingrenewableenergy

ZerowasteZeroenergyrisk

CO2Emissions

WasteEnergyRisk

DirectionThe Road to a Healthier Environment

TheRoadtoaHealthierEnvironment12

HondaEnvironmentStatement/HondaEnvironmentalandSafetyVision14

PursuingtheHondaEnvironmentalandSafetyVision16 Honda’sapproachtoCSRPropelledbytheHondaPhilosophy,wesetourcourseonbeingacompanythatsocietywantstoexistbysharingjoyswithpeoplethroughouttheworld.

Direction


Honda Environment StatementHondahasendeavored tosolveenvironmentalproblemssince the1960s.We introducedtheCompoundVortexControlledCombustion(CVCC)engine,becomingtheworld’sfirstautomakertocomplywiththe1970U.S.CleanAirAct-achallengethoughtbymanyat thetimetobe insurmountable. In1992,wereleasedtheHondaEnvironmentStatementtoarticulatethebasicstancewehaddevelopeduntilthattimetoreduceenvironmental impacts at every stage in the life cycles of our products. Today, this Honda EnvironmentStatementisthefoundationuponwhichwecarryoutallofourenvironmentalefforts.

Honda Environment Statement

As a responsible member of society whose task lies in the preservation of the global environment,thecompanywillmakeevery effort to contribute to humanhealth and thepreservationof theglobalenvironment in each phase of its corporate activity. Only in this way will we be able to count onasuccessfulfuturenotonlyforourcompany,butfortheentireworld.

We should pursue our daily business interests under the following principles:

1.Wewillmakeeffortstorecyclematerialsandconserveresourcesandenergyateverystageofourproducts’lifecyclefromresearch,design,productionandsales,toservicesanddisposal.

2. We will make every effort to minimize and find appropriate methods to dispose of waste andcontaminantsthatareproducedthroughtheuseofourproducts,andineverystageofthelifecycleoftheseproducts.

3.Asbothamemberof thecompanyandofsociety,eachassociatewill focuson the importanceofmakingeffortstopreservehumanhealthandtheglobalenvironment,andwilldohisorherparttoensurethatthecompanyasawholeactsresponsibly.

4.Wewillconsidertheinfluencethatourcorporateactivitieshaveonthelocalenvironmentandsociety,andendeavortoimprovethesocialstandingofthecompany.

EstablishedandannouncedinJune1992

Honda Environmental and Safety VisionWeannounced thatourdirection in theyears leadingup to2020wouldbe toprovide“goodproducts tocustomerswithspeed,affordability,andlowCO2emissions.”WedreamofasocietywhereeveryonecansafelyandconfidentlygoanywhereandtheHondaEnvironmentalandSafetyVisionwasset.Thevisionexpressesourpassionatedesiretocontributetothesustainablegrowthofsocietyandharmonybetweenpeoplesowecancontinuetodeliverexcitementthroughproductsandservicesthatsupportpersonalmobilityandabetterlifeingeneral.

Honda Environmental and Safety VisionRealizingthejoyandfreedomofmobility

andasustainablesocietywherepeoplecanenjoylife

In working to achieve this vision, the following objectives shape our environmental initiatives around the world:

• At each stage of a product’s life cycle (products, corporate activities), Honda aims to

MinimizetheuseoffossilfuelandresourcesnewlyrecoveredfromtheEarth

Minimizeenvironmentalimpacts,includinggreenhousegasemissions

• Honda aims to reduce to zero greenhouse gas emissions from Honda products used for mobility and in people’s everyday lives

Weestablished“BlueSkiesforOurChildren”asaglobalenvironmentalsloganexpressingourcommitmenttodomoretorealizeourenvironmentalvision.Thegraphiconthe leftsymbolizestheglobalenvironmentalslogan

HondaEnvironmentStatement

Direction

Direction


• Assessment process Collection

CollectionToreachourcurrentrecognitionoftoday'senvironmentalissues,wefirstgatheredinformationonenvironmentalissuesthroughinterviewswithstakeholdersandbyelectronicmeansfromwithinthecompany.

AnalysisNext, through discussions among divisions in the company (the executive officers, environmental divisions, regional operations,businessoperations,andfunctionaloperations)anddialoguewithstakeholders,weanalyzedtherelationshipbetweentheissuesandtheHondaEnvironmentalandSafetyVision,andtheconsistencybetweentheissuesandHonda'scorporatephilosophy.Wethenselectedenvironmentalissuesofrelativelyhighimportance.

EvaluationWecomprehensivelyevaluatedtheselectedenvironmentalissuesbasedoncausalproximity,economicimpact,urgency,influenceonHonda'scompetitivestrength,priorityinrelationtorealizingtheHondaEnvironmentalandSafetyVision,degreeofsocialconcern,andotherfactors.

Priority setting Finally,wedeterminedthepriorityoftheenvironmentalissuesalongthetwoaxesofstakeholder(social)concernandimpactonHonda'sbusinessactivitiesWeclassifiedenvironmentalissuesintothreecategories(issuescloselyrelatedtostakeholderexpectations,issuescloselyrelatedtoHonda'sbusinessissues,andthosecloselyrelatedtoboth)todefineHonda'scurrentrecognitionofenvironmentalissues.

• Assessment from a regional perspectiveWearrivedatourcurrent recognitionofenvironmental issues,detailedabove,byevaluating their importance ineachof thesix regionswhereweoperate(NorthAmerica,SouthAmerica,Europe,Asia&Oceania,China,andJapan)andviewingthemholisticallyfromaglobalperspective.Regionalassessmentsoftheseissuesaredescribedintheannualenvironmentalreportsissuedbyeachregion.

Pursuing the Honda Environmental and Safety VisionInworkingtowardtheHondaEnvironmentalandSafetyVision,weobjectivelyassesscurrentenvironmentalproblems,analyzethekindsofrisksandopportunitiestheyrepresentforourbusiness,andrespondinvariousways.Wearepromotingenvironmentalinitiativesinbothbusinessactivitiesandproductdevelopment,withtheaimofeventuallybecomingacompanywithzeroenvironmentalimpact.

Assessment of environmental issues and current recognition of their importance

• Assessment from a global perspectiveToensurethelong-termcontinuityofourglobalbusiness,weatHondaconsideritessentialtocontributetothegrowthofsocietyandharmonybetweenpeopleandnaturethroughtherealizationoftheHondaEnvironmentalandSafetyVision.Torealizethisvision,wemustcorrectlyassesstheenvironmentalissuesthatexistintheworldtoday,aswellastheirimpactonourbusiness,andthenadequatelyrespondtothem.Accordingly,wehaveevaluatedvariousenvironmentalissuesfromtwoperspectives-stakeholderconcernandimpactonHonda'sbusinessactivities-andidentifiedissuesthatposethegreatestrisktoourstakeholdersandbusiness.Asacompanysupplyingmobilityproducts,weseeclimatechangeandenergyissuesasthegreatestenvironmentalchallengesweface,followedbyresourceissues.Wealsorecognizebiodiversityasanissuewarrantingseriousconcern.

Honda'sassessmentofenvironmentalissuesfromaglobalperspective

Stakeholderconcern

ImpactonHonda'sbusinessactivities

Biodiversity

Noise/Vibration

Substancesofconcern Resourceissues

Air,water,andsoilpollution

Climatechange,energyissues

PursuingtheHondaEnvironmentalandSafetyVision

Direction

Direction


Assessment of risks and opportunities relating to environmental issues

• Climate and energy-related risks and opportunitiesWhile environmental issues pose risks that could seriously impact our business activities, they also present opportunities to create and expand newbusiness-as long aswe anticipate and appropriately respond to them.Weseeclimatechangeandenergyissuesasourgreatestchallenges.Toengageinbusinessactivitieswhilesufficientlyassessingtherisksandopportunitiestheseissuespresent,wehavesetdegreesofpriorityforrespondingtothem.Asaresult,weidentifiedchangingconsumervalues,diversificationofenergy,andtighterregulationofproduct-relatedgreenhousegas(GHG)emissionsasthreeareaswhereourresponseisparticularlyimportant.Changing consumer values

Asclimatechangeandenergyissuesescalateglobally,consumersarebecomingincreasinglyconsciousoffuelefficiency,CO2emissions,andotherenvironmentalperformanceindicesasfactorsinfluencingtheirpurchasingdecisions.WeperceivesuchchangesinconsumervaluesandmarketneedsasariskandhavecreatedtheHondaEnvironmentalPerformanceStandards(HEPS)torespondandtakeadvantageofopportunitiesforbusinessexpansion.Wearedrivingthedevelopmentoffuelefficiencytechnologies,electromotivetechnologies,andotherenvironmentaltechnologiesandexpandingtheirapplicationinourproducts,withtheultimategoalofrealizingzeroproductCO2emissions.

Climateandenergy-relatedrisksandopportunities

Perceivedopportunities

Perceivedrisks

Changingconsumervalues(emphasisonenvironmentalperformance)

Energydiversification(e.g.,deploymentofsmartcommunitytechnologies)1

TighterregulationofproductrelatedGHGemissions

Incentivestoswitchtoproductsthatusenextgenerationenergy

(e.g.,electric/hybridvehicles,solarpower

Tighterregulationofoperations-relatedGHGemissions

IncreasingreportingrequirementsforGHGemissions

Directoperationalrisksfromrisingsealevelsandextreme

weatherevents

Energy diversificationGlobalwarming, resourcedepletion,andother issueswill likelycompelsociety toshift from itsheavydependenceon fossil fuelstowardamorediverseenergymix.To seizenewbusinessopportunitiesandavert risksposedbyadelayed response toenergydiversification,weareadvancingdevelopmentofproductsthatutilizealternativeenergysources,suchasEVs,FCEVs,2andtheHondaSmartHomeSystem(HSHS).Wearealsopromotingenergydiversificationbyactivelyintroducinglarge-scalesolarandwindpowergenerationatourfacilities,asweworktowardultimatelyreducingourenergyrisktozero.

Tighter regulation of product-related GHG emissionsAs regulations of product-relatedGHGemissions growmore stringentworldwide,Honda as a global corporationmust provideproductsthatmeetlocalregulatoryruleswhilealsoeffectivelymeetingmarketneeds.WeareseizingnewbusinessopportunitiesandrespondingtotheriskposedbythesetighteningregulationsbyactivelyexpandingourlineupofproductspoweredbyEarthDreamsTechnology,3amongotherinitiatives.

• Resource scarcity-related risks and opportunitiesHondaseesresourceissuesasthegreatestenvironmentalriskafterclimatechangeandenergyissues.Thedepletionandresultingdifficultyofobtainingraremetalsandotherresourcesusedinourproductsposesahugerisktoourbusinesscontinuity.Inresponse,wearepromotingstableprocurementandeffectiveutilizationofresourcesbyreducingouruseofraremetals,developingalternativetechnologies,anddevelopingmaterialrecyclingtechnologiestoextractrareearthmetalsfromusedproductsandreusethemasrawmaterial.Throughthisweareaimingforstablebusinessoperationsandtocreateopportunitiesforbusinessexpansion.Wearealsoawareofthevariousrisksassociatedwithcollection,disposal,andrecyclingprocesses,andarebuildingsystemssuitedtoeachcountry.


Direction

1.Smartcommunities:Communitiesthat,throughbroadpartnershipsbetweengovernmentsandprivateentitiesinthefieldsofnext-generationenergyinfrastructure,telecommunications,trafficsystems,andvariousproductsandservices,areengineeredtobemoreefficient,self-sustaining,anddynamic.2.EV:electricvehicle,FCEV:fuelcellelectricvehicle3.Anext-generationpowertrainseriesthatgreatlyenhancesbothdrivingperformanceandfueleconomy,buildingonadvancementsinenvironmentalperformanceforinternalcombustionengines,transmissionefficiency,andelectromotivetechnologiestopursueajoyofdrivinguniquetoHonda.


• BiodiversityWerecognizetheimpactsourproductsandbusinessactivitiescanhaveonbiodiversity,andbelievethatminimizing these impacts is the greatest contribution to biodiversitywe canmake. This awarenesschallenges us to developmore environmentally responsible technologies andmake continuousimprovementstotheenvironmentalperformanceofouroperations(seepage36).

• Environmental management systemWehaveconstructedacomprehensiveglobalmanagementsystemthatallowsustocontinuallycollectinformationandupdateourunderstandingoftheseenvironmentalissuesandtherisksandopportunitiestheypresent;toorganizeandanalyzeinatimelymannertheimpactsoftheseissues,particularlyclimatechangeandenergy;andtodevelopandexecutespecificmeasuresforaddressingthem(seepage30).Ourriskmanagementprocess,whichweconducteverysixmonthsandasneeded,isasfollows:TheHondaWorldEnvironmentandSafetyCommitteeidentifiesrisksandopportunitiesfromaglobalperspectiveandanalyzesthemfromthreedifferentperspectives:byproductcategories(motorcycles,automobiles,andpowerproducts),witha focusonourbusinessandproductdevelopmentoperations;by region,whichisbasedonouruniqueregionalmanagementstructure;andbyfunction,suchasproductionandsales.Ourregionalenvironmentalcommittees,businessoperations,andfunctionaloperationsthenusethefindingsofthisanalysistoformulatevariousmanagementpoliciesandstrategies,suchasourmid-termplansforenvironmentalinitiatives.

Triple Zero: Toward a zero-impact socie

• Giving shape to the Honda Environmental and Safety VisionTorealizetheHondaEnvironmentalandSafetyVisionandultimatelyplayakeyroleinthecreationofazero-impactsociety,wewillleverageourproprietarytechnologiesandbusinessactivitiestocombatclimatechange,energyissues,andresourceissues.WeformulatedtheTripleZeroconceptasanexpressionofthesegoalsinmoresubstantialterms.

• Zero CO2 emissions using renewable energyWeare addressingclimatechangeby shifting to renewable energywith theaimof achieving zeroCO2emissionsfromourproductsandbusinessactivities.WearesteadilyloweringCO2emissionsbyimprovingexisting technologieswhileexpandingouruseof renewableenergyanddevelopingnewzero-emissiontechnologiesforthefuture.Asaninterimobjective,wearecurrentlyworkingtoachieveour2020ProductCO2EmissionsReductionTargets (seepage34-39) to loweraverageemissionsperunit ofmotorcycles,automobiles,andpowerproductsworldwideby30%fromthe2000base-yearlevel.Wewillthenaimtocuttotalcompanyemissionsinhalfby2050.InitiativescurrentlyunderwayineachproductareaincludeexpandingourlineupofHEPS-compliantHiEfficientProducts,1developingandpromotingmarketpenetrationofelectricvehicles(EVs)andfuelcellelectricvehicles(FCEVs),andbuildingtheinfrastructureforEVstobepoweredby solar,wind, andother renewable energy sources.Weare also reducing the carbon intensity of ourmanufacturingoperations.Therecentlycompletedstate-of-the-artYoriiPlantat theSaitamaFactoryuses30%lessenergyperunitthanconventionalplants.

ZeroCO2emissionsusingrenewableenergy

ZerowasteZeroenergyrisk

CO2Emissions

WasteEnergyRisk


Direction


• Zero energy riskWeareaddressingenergyissuesbydiversifyingenergysourcesusedinourproductsandbusinessactivitieswiththeaimofcompletelyeliminatingenergyriskfromfossilfuels.WehavesetaninterimtargettoestablishtechnologiesthatdiversifyhomeenergysourcesandreduceCO2emissionsfrompersonalmobilityandhomelivingtohalfof2000levels.WearedevelopingtheHondaSmartHomeSystem(HSHS)tohelpusrealizethisgoal(seepage66-67).Otherproduct-relatedinitiativesincludeexpandingourline-upofInnovativeProductsandRevolutionaryProducts,1productsdesignedwiththedualaimsofachievingzeroCO2emissionsandreducingenergyrisk.Wearealsointroducingrenewableenergy todiversify theenergy resourcesusedbyouroperations, including thescheduledstartofoperations in2014ofawind farm2expected togenerate85,000MWhofelectricityperyearandcoverallof thepowerneedsoftheautomobileplantofHondaAutomaveisdoBrasilLtda.inSouthAmerica.InJapan,weplantotakestepstoreducetheenvironmentalimpactofourbusinessactivitiesbyenteringtheelectricityretailbusinesstodiversifyourenergyprocurementsources.Thiswillreduceourenergyriskandenableustoselectpowersourceswithsmallercarbonfootprints.

• Zero wasteWeareaddressingresourceissuesbystrivingtoclosethelooponallmaterialsandrecyclethemcompletely,eliminatingwastealtogether. Initiativesdirectedtowardthisgoal includedevelopingalternativestopreciousresources;developingandrefining technologies toenable increasedreduction, reuse,andrecycling (3Rs);andreducingwateruse.Moreover,by realizingcontinuousreductions in theuseofsubstancesofconcern,wewillaim toeliminateallenvironmentalpollutantsfromourproductsandbusinessactivities.AsaninterimtargetinJapan,weareworkingtomaintainaminimum70%automobileshredderresidue(ASR)recyclingrateandraisethemotorcyclerecyclingratetoatleast95%by2015.Specificinitiativescurrentlyunderwayareaimedatdevelopingrecyclingtechnologiesandsystemstopromoterecycling.Wearebuildingasystem,forexample,toextractandreuserareearthmetalsfromnickel-metalhydridebatteriesusedinhybridvehicles.

1.ProductsthatarecompliantwiththeHondaEnvironmentalPerformanceStandards(HEPS).HiEfficientProductsareHEPS-compliantproductsthatemitlessCO2

throughimprovedinternalcombustionengineefficiency.InnovativeProductsemitlessCO2becausetheyuseanenvironmentallyinnovativetechnologyoralternativeenergysource.RevolutionaryProductsreduceoreliminateCO2emissionsbyharnessingrenewableenergysourcesorfacilitatingtotalenergymanagement(seepageG23).2.Nine3-MWwindturbines(27MWintotal)

TripleZerosymbolsInthisyear’sreport,technologies,products,andinitiativesthatcontributetotherealizationofTripleZeroaremarkedwithoneofthreeTripleZerosymbols.

CO2emissionreduction/eliminationtechnology

Wastereduction/eliminationor3Rtechnology

Energyriskreduction/eliminationtechnology


Direction


Reducing the environmental impact of products

• Reducing CO2 emissions in three stagesToachievezeroCO2emissions,oneofthethreeobjectivesofTripleZero,ouraimistoeliminatethelife-cycleemissions(emissionsfromallstagesinthelifeofaproduct,fromitsmanufactureusingrawmaterials,tocustomeruse,todisposal)ofallHondaproducts,includingthroughstrategiessuchasrenewableenergycarbonoffsets.

However,giventhatmanymobilityproductstodaystillrunonfossilfuelburnedinaninternalcombustionengine,zeroCO2emissionsisnotsomethingwecanachieveimmediately.Thatiswhywehavedevelopedthreescenariostoguideusthroughsteadyreductions,endingwiththecompleteeliminationofCO2emissions.Thesescenarios,whicharetobepursuedinparallel,are:1)Reducingemissionsthroughefficiencyimprovementsof internalcombustionengines,2)Reducingemissionsbyenvironmentally innovative technologiesandintroducingenergy-diversification,and3)Eliminatingemissions through theuseof renewableenergyand totalenergymanagement(seefigurebelow).

• Honda Environmental Performance StandardsTomoveourproductsalongthesescenarios,in2011weestablishedtheHondaEnvironmentalPerformanceStandards(HEPS),anindependentproductclassificationandcertificationsystemdesignedtoshedlightonhowHondaproductsarecontributingtoachievementofthethreescenariosoutlinedabove.UnderHEPS,productsaregroupedintothreecategories,eachwithitsownrequirementsforcertification.Bymakingall newHondaproductscompliantwithoneof the threestandards,wewillmakesteadyprogress towardrealizingzeroCO2emissions.

Product-basedscenariosaddressingclimatechangeandenergyissues

Evolutionofenvironmentaltechnologies Life-cycleCO2emissions

Evolutionofenergytechnologies

Efficiencyimprovementtechnologiesforinternalcombustionengines

Environmentalinnovationandenergydiversificationtechnologies

Renewableenergytechnologies

HiEfficientProducts

InnovativeProducts

RevolutionaryProducts

Fossilfueluse Diversifiedenergyuse Renewableenergyuse Energymanagementtechnologies

Hi Efficient ProductsProductsthatemitlessCO2emissionsbecauseofimprovedinternalcombustionengineefficiency.Thiscategoryincludesproducts that incorporate technologies for improving fuel combustionand transmissionefficiencyandreducingfrictionbetweenengineparts.Compliance isdeterminedbasedonhowwellaproduct reducesorhelps reduceCO2emissionsduringusecomparedtoprecedingmodels.

Innovative ProductsProductsthatemitlessCO2becausetheyuseanenvironmentallyinnovativetechnologyoranalternativeenergysource.ThiscategoryincludesmotorcyclesthatincorporateHonda'spatentedIdlingStopSystem,automobilesthatincorporatehybridtechnologiesordirect-injectionenginetechnologies,andpowerproductswithelectronicfuelinjection(FI).Alternative-energytechnologiesincludemotorcyclesandautomobilesthatcanrunonethanol,andpowerproducts thatcanrunongaseous fuels.Compliance isdeterminedbasedonhowwellaproductreducesorhelpsreduceCO2emissionsduringusecomparedtoprecedingmodels.

Revolutionary ProductsProducts that reduce or eliminateCO2 emissions by harnessing renewable energies or facilitating totalenergymanagement. This category includes products that incorporate electromotive technologies ortechnologiesforgeneratingorusingrenewableenergy.


Direction


HEPS-compliant models in FY2014

• 34 HEPS-compliant models released in FY2014WereviewedproductstounderstandhowmanymettheHEPSrequirements.Infiscal2014,17motorcyclesmodels, 15 automobilemodels, and2powerproducts-a total of 34modelswereHEPS-certified.Cumulatively,thisbringsthenumberofHEPS-compliantproductsto86motorcyclemodels,98automobilemodels,and44powerproductmodels,or228modelsintotal.Byregion,76modelsinJapan,57modelsinNorthAmerica,65modelsinEurope,32modelsinSouthAmerica,73modelsinAsia&Oceania,and27modelsinChinaarenowHEPS-certified.

　　

GlobalnumberofHEPS-compliantmodels

FY2011datawerecalculatedbasedonstandardssetinFY2012

HiEfficientProducts

2011

100

80

60

40

20

0

100

80

60

40

20

0

100

80

60

40

20

0

100

80

60

40

20

0

Models Models Models

41 36

544938

6769

42

8386

44

98

2011 20112012 2012 20122013 2013 20132014 2014 2014(FY) (FY) (FY)

InnovativeProducts

Motorcycles Automobiles PowerProducts

RevolutionaryProducts

　　　　 NumberofHEPS-compliantmodelsbyregion(FY2014)

MotorcycleModels

Japan NorthAmerica

SouthAmerica

Asia/Oceania

Europe China

Automobiles PowerProducts

76

5765

32

73

27


Direction

HiEfficientProducts InnovativeProducts RevolutionaryProductsProductswithamoreefficientinternalcombustionenginethatemitslessCO2

SuperCubC50

CBR125R

Vario

,,

CTX700

VEZEL

City

BRIOAMAZE

GX390

EU3000iHnady

Dunk

Zoomer-X

LEAD125

BrioAmaze(diesel)

CivicTourer

CityPetro/Diesel

GX690

HEPSmodelsinAsia&OceaniaRegion

NC750S

CBR400R

FitHybrid

RLXSportHybridSH-AWD

CityCNG

EU9iGPLPGgenerator

SaladCGFFV300gaspoweredtiller

iGX390

SHMode

AirBlade

AccordHybrid FitEV

CR-VFlex

JazzHybrid

FCXClarity

EU7000isgeneratorwithFI GraspaHRE330

electriclawnmowerHRE370

HSL2511snowblowerwithFI

GX160

MonpalML200scooter

Miimo300roboticlawnmower

Kushi

EV-neo

Definition

Performanceparameter

Compliantproducts(examples)

CO2emissionsfromproductuse

Examples of HEPS-compliant models in FY2014

Motorcycles

Automobiles

PowerProducts

Innovativeenvironmentaltechnologiesorunconventionalenergysourcesthatemit

lessCO2

ProductsdesignedtoreduceoreliminateCO2emissionsbyharnessingrenewableenergiesor

facilitatingtotalenergymanagement

BF90*BFSeries(40-250)

MSX125


Reducing environmental impacts from business activities• Reducing impacts across product life cyclesIn order to realize our Triple Zero concept-toreduce to zero all environmental impactsstemming from our products-we need tominimize environmental impacts throughoutthelifecyclesofourproducts.Thismeansnotonlyreducingimpactsthatoccurduringusethroughimproved fuel efficiency and electromotivetechnologies, but also lowering impacts thatarise from rawmaterial procurement, producttransportation,disposalofend-of-lifeproducts,and so forth. Based on this idea,we strive toreduceenvironmental impacts ineverydomainofouroperations.InAsia&Oceania,forinstance,we ca tegor ize bus iness ac t i v i t ies in tosevendomains and consider all factors ineach domain that impact the environment.Eachdomain sets its ownpolicies and targetsto reduce impacts, and implementsmeasurestoachievethem.


Direction

• Global initiativesWestrivetoreducetheenvironmental impactsofourbusinessactivitiesworldwide.As inJapan,wecategorizeoverseasbusinessactivitiesintoseveraldomainsandseteachregion'spoliciesandtargetsforreducingproductlife-cycleimpactsbasedonmarketcharacteristicsandotherlocalconditions.Eachregion'sinitiativesarereportedinitsownannualenvironmentalreport.Thedomainsofeachregion'sbusinessactivitiesinfiscal2014areshownbelow.

NorthAmerica

*Theaimofzeroemissionsinitiativesistoreducewasteandsubstancesofconcernasaspossibletozero.

SouthAmerica Europe Asia&Oceania China

• Eight domains of business activities in Japan

Business activities

Factors considered to impact the environment

Major initiatives

Productdevelopment

GreenhousegasesExhaustemissionsRawmaterials-Noise/VibrationSubstancesofconcern

•Promote"greenlaboratories"-Energyandresourceconservation-Zerowasteandemissions*initiatives

Purchasing GreenhousegasesRawmaterialsWaste-Wateruse/WastewaterExhaustemissionsNoise/VibrationSubstancesofconcern

•Promote"greenpurchasing"-Environmentalmanagement-Energyandresourceconservationatsuppliers-Zerowasteandemissions*activitiesatsuppliers

Production GreenhousegasesRawmaterialsWaste-Wateruse/WastewaterExhaustemissionsNoise/VibrationSubstancesofconcern

•Promote"greenfactories"-Environmentalmanagement-Energyandresourceconservation-Zerowasteandemissions*initiative

Transportation GreenhousegasesWaste

•Promote"greenlogistics"-Environmentalmanagement-Increasetransportationefficiency-Uselesspackaging

SalesandService GreenhousegasesRemovedpartsCFCsWaste

•Promote"greendealers"-Environmentalmanagement-Increaseenergyefficiency-Takeactiontopromoteenvironmentalconservation

Productrecycling(3Rs)

GreenhousegasesEnd-of-lifeproducts

•Increasepartscollection,reuse,andrecycling•Properlyprocessend-of-lifeproducts•Providetechnicalsupportforrecycling

Administration GreenhousegasesWaste

•Promote"greenoffices"-Environmentalmanagement-Energyconservation-Useresourceseffectively

IT Greenhousegases •Promote"greenICT"-Environmentalmanagement-Energyconservation

• Reduce environmental impacts from business activities in Japan


• Our greatest contribution reducing environmental impacts from products and operationsResourceexploitation,runawaydevelopment,pollution,climatechange-theseandmanyotherimpactsofhumanactivitiesthreatenbiodiversity.Asamanufacturerofpersonalmobilityproducts,weseeourbusinessactivitiesasbeingmostcloselyassociatedwiththegrowingenvironmentalimpactsresultingfromemissionsofgreenhousegases(GHGs)andvariousotherpollutants.WebelievethatminimizingtheenvironmentalimpactsthatresultfromourbusinessactivitiesandproductsrepresentsthegreatestcontributionwecanmaketoprotectingEarth'smyriadlifeforms.

WecreatedtheHondaBiodiversityGuidelinestosetprioritiesinthiseffort,focusingourenergiesondevelopingenvironmentaltechnologiesandreducingimpactsinourbusinessactivities,alongsideinitiativestooperateinharmonywithlocalcommunities.

1.Develop technologies to reduce impacts on the environment :Wewill develop technologies to reduce the environmental impacts of personalmobility, since this represents the greatest contributionwe canmake.Technologiesincludefuel-efficientandnext-generationvehicles,andtechnologiesthatharnessalternativeenergy.

2.Makebusinessactivitiesspecies-friendly:Weaimtomakeourbusinessactivitiesmoresustainableinthemselves,byreleasinglessenvironmentalpollutants,includingGHGs,waste,andsubstancesofconcern.

3.Worktoprotectnearbyecosystems:WehavealreadygainedawealthofknowledgeabouthowtomaintainandrestoreecosystemsthroughourCommunityForestandHelloWoodsinitiatives.Wewillusethisknowledgeandexperiencetoimplementprograms,suchasHondaWoods1activitieslaunchedin2014,thathelpprotectlocalspeciesandmakeourbusinessactivitiesfriendliertothem,forourbenefitandthebenefitoflocalcommunities.

4.Communicateopenlywiththepublic:Wewillendeavortoopenlycommunicatewiththepublicaboutthedetailsandoutcomesofactivitiesweimplementfromthenewperspectivesofferedbythesebiodiversityguidelines.

1.SeepageJ62ofJapanReporttolearnmoreaboutHondaWoods.

Honda Biodiversity GuidelinesBasic Statement

We recognize, under theHondaEnvironmentStatement, that biodiversity conservation initiatives are an essential part of our commitment to the preservation of the globalenvironment.Wewillcontinuetoworktowardharmonybetweenthiscommitmentandouractivities.

Priority Activities1. Development of Environmental Technology :Wewillcontributetotheconservationofbiodiversitybydevelopingandsharingtechnologiesforfuel-efficientvehicles,next-generationcars,andenergy-productionandothertechnologiesforthereductionofenvironmentalimpacts.2. Initiatives Based on Corporate Activities :Wewillworktoreduceenvironmentalimpactsandensuretheeffectiveuseofresourcesthroughefficiencyimprovements.

3. Cooperation with Communities :Wewillimplementcommunity-basedactivitiesincooperationwithstakeholders,usingexpertiseaccumulatedbyHondathroughitsinitiativestoprotectecosystems,suchastheCommunityForestsandHelloWoodsinitiatives.

4. Disclosure and Sharing of Information :Wewillshareinformationwithsocietybydisclosingtheoutcomesofouractivities.EstablishedinMay2011

Biodiversity InitiativesClimatechangeandenergyissuesarenotouronlyconcerns.Wealsopaycloseattentiontobiodiversityasanissuerelatingtoenvironmentalconservation,becauseourbusinessactivitiescanhaveanimpactonvitalnaturalresources.Tree-plantingandwater-recyclinginitiativesatourplantsinthe1960s,andourCommunityForestprogramlaunchedin1976,demonstratethedeeprootsofourcommitmenttoenvironmentalconservationandlivinginharmonywithlocalcommunities.In2011,wecreatedtheHondaBiodiversityGuidelinesaspartofthecontributionswestrivetomaketoglobalenvironmentalconservation,agoalsetforthinourHondaEnvironmentStatement.

BiodiversityInitiatives

Direction

Direction


Biodiversity initiatives in the Asia & Oceania Region

• Creating artificial salt licks and check damsOnJune22,2013, theHondaThailandFoundation, incollaborationwith theAsianElephantFoundationandDepartmentofNationalParks,WildlifeandPlantConservationinThailand,organizedforthesecondconsecutiveyearavolunteeractivity tocreateartificialsalt licks forelephantsandotherwildlifeat theKhaoAngRueNaiWildlife Sanctuary, Chachoengsao Province, Thailand. Honda associates gained valuable experience inmakingartificialsaltlicksbymixingacombinationofsaltsandmineralsinpitsandburyingthemixturetocreatemorerealisticsaltlicks,withthesaltsandmineralsleachingoutfromthepitsduringwetweathertoformasaltdeposit.Intheecosystem,elephantsandotherwildlifecanobtainessentialmineralnutrientsatthesaltlickstosupplementtheirdiets.Apartfromthisactivity,Hondaassociatesalsoinitiatedtheconstructionofcheckdamsthathelpensureregularwaterpassage.Thecheckdamsslowthe flowofwaterrunoff resulting in improvedwaterretentionandthecreationofwatershedareas.Thiscanhelptopreservewatersuppliesforwildlifeduringdryseasons.

BiodiversityInitiatives

Direction

• Participating in “Road to 2020” Reforestation ProgramInFY2014,theHondaFoundationInc.(HFI),inpartnershipwithHaribonFoundation,entereditsfourthyearofsupport forareforestationprograminthePhilippines.TheHondaFoundationrepresentstheHondagroupofcompanies:HondaCarsPhilippines,Inc.(HCPI),HondaPhilippines,Inc.(HPI),HondaPartsandManufacturingCorporation(HPMC)andHondaTradingPhilippines(HTP).Thisactivityisanationwidemovementcalled“ROADto2020” that aims to restoreonemillion hectaresof forests in thePhilippinesby2020.HFI haspledged torehabilitate20hectaresofdenudedlandwith50,000treesby2020.HFIcompletedtheplantingofnativeseedlingscoveringanareaoftheTanauan,RealandQuezonprovincesinthepastyear.InFY2014,150volunteersfromHFItraveledtotheBatangas,LagunaandQuezonprovinces,underRegionIV-ALuzonisland,toplant5,000seedlingsofnativetreespeciesthatareanticipatedtohelpcontain/lessenfloodsurgethroughtreeplantingondenudedland..

•“Roadto2020”Reforestationprogram•Creatingartificialsaltlicksandcheckdams


• Progress updateIn fiscal 2014,we continued ourmomentum from fiscal 2013 and cutper-unitCO2emissionsfrommotorcyclesevenfurtherasaresultofincreasedsalesoffuel-efficientcommutermodelsintheAsianmarket,includingtheVario(Indonesia),AirBlade(Vietnam),andActiva(India).Likewise,weachievedafurtherreductioninper-unitCO2emissionsfromautomobiles.Thiswasdueinparttoincreasedsalesofmodelsthatsawfuelefficiencyimprovementsaspartofacompleteredesign,suchastheFitHybridandOdysseyinJapan,andtheAccord,whichunderwentredesignthepreviousyear,intheU.S.market.And lastly,we achieved amodest reduction in per-unitCO2emissionsfrompowerproductscompared to fiscal2013 levelsdespiteadeclinein sales of household cogeneration systems,which have lowper-unitemissions, and robotic lawnmowers, which emit zero exhaust gas.Increasedsalesof1-kWgeneratorswithrelativelylowper-unitemissions,and thereleaseofnewhighlyefficientwaterpumpscontributed to thisreduction.

Progress in Meeting Environmental Targets

• 2020 Product CO2 Emissions Reduction TargetsReducing CO2 emissions from our products is a necessary step incombatingclimatechangeandenergyissues,thegreatestchallengestoourbusiness.That iswhywecreated the2020ProductCO2EmissionsReductionTargets,throughwhichweseektoreducetheaverageamountofCO2emittedperunitofmotorcycles,automobiles,andpowerproducts30%from2000levelsby2020.Wehopetoachievethesetargetsbydevelopingmoreefficienttechnologiesandmarketingmoreenergy-efficientproducts.

2020ProductCO2EmissionsReductionTargets

•Regions covered:Japan,NorthAmerica,Europe,Asia/Oceania,China,andSouthAmerica,coveringmorethan90%ofglobalsalesbyvolumeofeachproductcategory.

Motorcycles

GlobalaverageCO2emissionsfromHondaproducts

Baseline:200030% reduction

(g/km)


(g/km)


(kg/h)

Automobiles Powerproducts

ProgressinMeetingEnvironmentalTargets

Direction

Direction

～～

2000 FY2011 FY2012 FY2013 FY2014(baseline)

Motorcycles(g/km)

100

84.975.9 72.6 70.9

100

80

60

40

20

0

Progressinmeetingthe2020ProductCO2EmissionsReductionTargets

2020target

(30%reduction)

～～


Automobiles(g/km)

2020target

(30%reduction)

～～


Powerproducts(kg/h)

2020target

(30%reduction)

10087.6 90.5

84.8 82.4

10089.0 86.5 85.3 84.9

100

80

60

40

20

0

100

80

60

40

20

0


Mid-term plans (FY2012–FY2014)

• Three-year plans updated for FY2015Hondarenewsitsbusinessandsales-relatedplanseverythreeyears,aperioddesignatedasamid-term.Wefollowthisprocessforenvironmentalinitiativesaswell, setting newplans and actions to reduceimpactsfromourproductsandbusinessactivitiesatthestartofeverymid-term.

• Close of the current mid-termFiscal2014was the finalyearof themid-termthatbeganinfiscal2012,bringingthethree-yearplanwecreatedforenvironmentalinitiativesduringthatperiodtoaclose.Overall,weaccomplishedeverything intheplan.Wewill continue in the nextmid-term tomakesteadyprogressinreducingtheenvironmentalimpactsofourproductsandbusinessactivities.

Product-related environmental initiatives and results (FY2012–FY2014)


Direction

Milestones on the road to 2020 Mid-term plans for product-related environmental initiatives (FY2012 –FY2014)

Climate change and energy

AchieveglobaltargetsforreducingaverageproductCO2emissions,withtheendgoalofsteadilyreducingproductlife-cycleemissionsoverthelongterm.

Achievebest-in-industryfuelefficiencyandacceleratetechnologypenetration:Motorcycles:Expanduseofelectronicfuel-injection(PGM-FI)andlow-frictionengines,especiallyincommutervehiclesAutomobiles:Phaseinupgradestoengineandtransmissionlineups,startingin2012PowerProducts:Expandapplicationofnewelectronicself-tuningregulator(STR)governortechnology,developedfortheiGXengine

Establishanddeploynext-generationelectromotivetechnologies:Motorcycles:Launchelectricmotorcyclesthatmeetlocalneedsindevelopedcountries(Japan:loaned)andemergingcountries(China)Automobiles:Launchmultiplemodels(especiallycompactvehicles)equippedwithIMAhybridtechnologyinJapan;currentlydevelopingmid-sizeandlargerplug-inhybridandbatteryelectricvehicles,withplanstolaunchproductsinJapanandtheU.S.andcommenceproductioninChinain2012PowerProducts:Improveelectriclawnmowersandexpandlineupthroughadditionalmodel,especiallyinEurope

MarketnewproductstoreduceCO2emissionsfrommobilityandotherproducts

•Launchnewthin-filmsolarcellmoduleswithworld'shighestmoduleconversionefficiencyanddeploytechnologyglobally•Conductdemonstrationtestingofnext-generationpersonalmobilitysystemsincitiesinJapan,theU.S.andChina•Throughjoint-implementationoftheE-KIZUNAProjectwithSaitamaCity,Japan,conductdemonstrationtestingoftheHondaSmartHomeSystem(HSHS)withanaimtocuthouseholdCO2emissionsby50%from2000levelsby2015

Material and water resources Rampup3ReffortsProducts:Continuetopromotestructuraldesignwithanemphasisonweightreduction;higherthroughputyields;easierrecyclingandmaintenance;andsustainabledesignwithanemphasisoneasilyrecycledmaterialsanduseofrecycledresins

Substances of concern

Reduceexhaustemissions Steadilyreduceexhaustemissionstocomplywithtighteremissionsregulationsinvariouscountries

Morestrictlymanagesubstancesofconcernusedinproducts

•Promotemanagementofsubstancesusedinproductsandfindalternativestosubstancesofveryhighconcern•Operateglobalmanagementsystemsforsubstancesusedinproductstocomplywithapplicableregulationsinvariouscountries

1

2

3

4

5

6


Results of FY2014 initiatives


Motorcycles•LaunchedtheGrommotorcyclepoweredbyanair-cooled4-strokeOHC125-ccsingle-cylinderenginefeaturingelectronicfuel-injectionandlowfrictiontechnologies(offsetcylinder,rollerrockerarm)deliveringexceptionalfuelperformance(May2013)•LaunchedtheSHMode,astylishfuel-efficientscooterthatemploysawater-cooled4-strokeOHC125-ccsingle-cylinderenginewithelectronicfuelinjectionandanidlingstopSystem(August2013)

Automobiles•Launchedanall-newFitpoweredbyanewEarthDreamsTechnologypowertrainthatprovidesclass-leadingfuelefficiency(September2013)•InIndonesia,launchedtheBrioSatyaequippedwitha1.2-liter4-cylinderi-VTECenginethatdeliversclass-leadingpoweroutputandoutstandingfuelefficiency(September2013)•DevelopedthenewVTECTurbolineofturbochargeddirect-injectionengines,providingclass-leadingpowerperformanceandexceptionalfueleconomyinthesamemachine(November2013)

PowerProducts•UnveiledintheU.S.theEU7000is,Honda'sfirstinvertergeneratortoincorporatefuelinjection(FI)technology,whichrunslongerthankstoa20%improvementinfuelefficiency(January2014)

Motorcycles•ContinuedleasingtheEV-neoelectricscooter•ContinuedsalesoftheKushi,anelectricbicyclefortheChinesemarket

Automobiles•LaunchedtheAccordHybridwithaSportHybridi-MMDhybridsystem(June2013)•AlsobeganleasinginJapanalimitednumberofunitsoftheAccordPlug-inHybridtoindividualcustomersinDecember2013,followingthestartofleasingintheU.S.•Launchedanall-newFitHybridequippedwithanEarthDreamsTechnologypowertrain(1.5-literAtkinsoncycleengine,high-outputbuilt-inmotor,seven-speedDCT,andlithium-ionbattery)offeringthehighestfuelefficiencyinJapan(September2013)

PowerProducts •ContinuedsalesofMiimo,aroboticlawnmowerequippedwithalithium-ionbattery,intheEuropeanmarket(April2013)

•DeliveredFCXClarityfuelcellelectricvehiclewithexternalpowersupplycapabilitytoKitakyushuCity,JapanandinitiateddemonstrationtestinginV2Happlication(April2013)

•Begantest-drivingtheMC- microEVusingrenewableenergy-poweredchargers(January2014)

•OpenedtheHondaSmartHomeUSintheU.S.,offeringHonda'svisionforzero-carbonlivingandmobility(March2014)

Material and water resources•Reusedrareearthsextractedfromusednickel–metalhydridebatteriesfromhybridvehiclesinthemanufactureofnewhybridvehiclemotors(June2013)

•Establishedaparts-to-partsrecyclingschemetoreusecomponentsotherthanrareearthsfromdisassemblednickelmetalhydridebatteriesascomponentsfornewproducts(April2013)

Substances of concern

•Madesteadyprogressinreducingexhaustemissionstocomplywithtighteremissionsregulationsinvariouscountries

•Continuedtopromotemanagementofsubstancesusedinproductsandemployalternativestosubstancesofveryhighconcern•Continuedtooperateglobalmanagementsystemsforsubstancesusedinproductstocomplywithapplicableregulationsinvariouscountriesandreducerisk

1

2

3

4

5

6


Direction


Milestones on the road to 2020 Mid-term plans for operations-related environmental initiatives (FY2012 – FY2014)


Strengtheninitiativesthatspanentireproductlifecycles

Globaloperations:ReduceCO2emissionsperunitofproductionby5%byFY2014(baseline:FY2009)1

Purchasingdomain: •Promotemeasurementandreductionofsuppliers'GHGemissionsundertherevisedGreenPurchasingGuidelines

Productiondomain:•Installcutting-edgeenvironmentaltechnologiesattheYoriiPlantinJapan(productionscheduledtobeginin2013)andmakepreparationstodeploythetechnologiesglobally•Setbenchmarksforenergyuseandsethigherefficiencystandards

Transportationdomain:•Increasetransportationefficiencyineachregionbyimplementingmodalshifts,deployingmorefuel-efficienttrucks,etc.

Salesandservices,administration,productdevelopmentdomains:•Promoteenergyconservationbyencouragingeco-etiquetteandmoreefficientuseoffacilities

Material and water resources

Rampup3Refforts

Productiondomain:•Strengthenresource-use-reductioninitiativesbyincreasingthroughputyieldstoreduceby-products•Collaboratewithsupplierstoincreaseuseofmetalscraps•Maintainzerolandfillwasteperformance(JapanandEurope)

End-of-lifeproductrecycling:•Makesteadyeffortstocomplywithend-of-lifevehiclerecyclinglawsinvariouscountries

Minimizewateruse Productiondomain:Reduceuseaccordingtoconditionsineachregion,forexamplebyconservingwaterandusingrecycledwaterinproductionprocesses

Substances of concernReduceVOC2emissionsfromproductionprocesses

Productiondomain:DevelopVOCemissions-reductiontechnologiesforcoatingprocessesandexpandapplicationtooverseasfacilitiesandmotorcyclecoatingprocesses

BiodiversityLocalconservationinitiativesinaccordancewiththeHondaBiodiversityGuidelines

Corporateinitiatives:•EducatesuppliersonthedestructiveimpactsofhazardoussubstancesandwateruseonecosystemsCollaborationwithlocalcommunities:•ConductbiodiversitysurveysatbusinesssitesinJapan•Developpolicies,guidelines,andpracticalknow-howateachbusinesssite•Assesspossibilitiesofintroducingbiodiversityinitiativesatoverseasbusinesssites

Environmentalmanagement

Strengthenglobal/regionalpromotionalframeworksandincreasedisclosureofenvironmentaldata

Strengthenindependent,voluntarypromotionalframeworksineachregion,andstrengthenglobalcollaboration

ExpandHondaEnvironmentalAnnualReportintoaglobalreport,andincreasedisclosureofenvironmentaldataineachregion

Operations-related environmental initiatives and results (FY2012–FY2014)

1

2

3

4

5

6

7

8

9

10

11

12


Direction

1.Asingleper-unit-of-productionvaluewascalculatedbyweightingtheaveragereductionpercentagesformotorcycles,automobiles,andpowerproductswiththeCO2emissionsassociatedwiththeirrespectivelifecycles.2.VOC(VolatileOrganicCompounds):Organicchemicalsubstancesthatcausephotochemicalsmogandarecommonlyusedinthesolventsofpaintsandthinners.3.Internalpermanentmagnet(IPM)motor:asynchronousalternating-currentmotorthathaspermanentmagnetsembeddedinitsrotor,knownforitsenergy-savingcapabilityduetoitshighefficiencyandhightorque.


1

2

3

4

5

6

7

8

9

10

11

12

1.Asingleper-unit-of-productionvaluewascalculatedbyweightingtheaveragereductionpercentagesformotorcycles,automobiles,andpowerproductswiththeCO2emissionsassociatedwiththeirrespectivelifecycles.2.VOC(VolatileOrganicCompounds):Organicchemicalsubstancesthatcausephotochemicalsmogandarecommonlyusedinthesolventsofpaintsandthinners.3.Internalpermanentmagnet(IPM)motor:asynchronousalternating-currentmotorthathaspermanentmagnetsembeddedinitsrotor,knownforitsenergysavingcapabilityduetoitshighefficiencyandhightorque.

Results of fiscal 2014 initiatives


Globaloperations

Purchasingdomain

Productiondomain

Transportationdomain

Reducedaverageper-unitCO2emissionsby6%inFY2014(baseline:FY2009)

ExpandandpromotemeasurementofGHGgasemissionsfromsuppliersinabroaderrangeofactivitiescoveringproductlifecyclesAsia&Oceania:DeployedtheEnergyConservationCaravantovisitsuppliersandmonitorenergyconsumption

•IntroducedadvancedenvironmentaltechnologiesattheYoriiPlantinJapan,whichbeganoperationsin2013•Installedamegawatt-scalephotovoltaicsystemattheYoriiPlantinJapan•Measuredandmonitoredenergyuseforeachprocesstoreviseproductionsystemsforhigherefficiency•SetbenchmarksforenergyuseandsethigherefficiencystandardsNorthAmerica:Installedtwo1.7-MWwindturbinesatatransmissionplantinOhioChina:Installeda10-MWsolarphotovoltaicsystematanewplantatGuangqiHondaAutomobileCo.,Ltd.Asia&Oceania:Madeprogressinswitchingfromdieselgeneratorstonaturalgascogenerationsystems

•Promotedtransportationmodalshiftsineachregion•Improvedlogisticsefficiencybymovingcertainsupplieroperationson-siteattheYoriiPlantSouthAmerica:SwitchedtocoastalshippingroutestominimizetrucktransportationofmotorcyclesAsia&Oceania:ShiftedfromtruckandothermodesoftransportationtorailforshippingofpartsbetweenThailandandMalaysiaSalesandservices,administration,productdevelopmentdomains

Material and water resources

Salesandservice,administration,productdevelopmentdomains

Promotedenergyconservationbyraisingawareness,encouragingeco-etiquette,usingfacilitiesmoreefficiently•Installhigh-efficiencydevices(LEDlighting,compressors,HVACsystems,IPMmotors)1NorthAmerica:Installedsolarphotovoltaicsystemsatdealerships

Productiondomain•Implementedmeasurestoimprovethroughputyieldsinthedesignstage•Increaseuseofstampingpressscrapmetal

End-of-lifeproductrecyclingContinuedeffortstocomplywiththeautomobilerecyclingregulationsofeachcountryEurope:Establishedasystemforrecyclingbatteriesfromhybridvehicles

ProductiondomainPromoteduseofrecycledwaterandwater-conservationactivitiesineachregionAsia&Oceania:Installeda20,000-tonrainwaterstoragefacilityforindustrialuseatanewplantinIndia

SubstancesofconcernPromoteduseofrecycledwaterandwater-conservationactivitiesineachregionAsia&Oceania:Installeda20,000-tonrainwaterstoragefacilityforindustrialuseatanewplantinIndia

BiodiversityPromoteduseofrecycledwaterandwater-conservationactivitiesineachregionAsia&Oceania:Installeda20,000-tonrainwaterstoragefacilityforindustrialuseatanewplantinIndia

EnvironmentalmanagementConvenedRegionalEnvironmentalCommitteesandtrainedandheldmeetingsofenvironmentalofficersinallregions

Issuedafiscal2014regionalenvironmentalreportineachregion(NorthAmerica,SouthAmerica,Europe,Asia&Oceania,China,andJapan)


Direction

1.Asingleper-unit-of-productionvaluewascalculatedbyweightingtheaveragereductionpercentagesformotorcycles,automobiles,andpowerproductswiththeCO2emissionsassociatedwiththeirrespectivelifecycles.2.VOC(VolatileOrganicCompounds):Organicchemicalsubstancesthatcausephotochemicalsmogandarecommonlyusedinthesolventsofpaintsandthinners.3.Internalpermanentmagnet(IPM)motor:asynchronousalternating-currentmotorthathaspermanentmagnetsembeddedinitsrotor,knownforitsenergy-savingcapabilityduetoitshighefficiencyandhightorque.


Environmental initiatives planned for the new Mid-term (FY2015–FY2017)

• Plans for the new Mid-termAtthestartofthenewMid-termwhichbeginsinfiscal2015,wedrewupanewsetofplanstoguidethereductionofenvironmentalimpactsfromourproductsandbusinessactivitiesoverthenextthreeyears.Product-relatedinitiativesduringthisperiodwillbeaimedatminimizingallformsofimpactsarisingfromproducts,andwillincludeenhancingenergyefficiency,improvingoursystemstoreduce,reuseandrecyclewaste,reducingexhaustemissions,andcarryingoutstrictermanagementofsubstancesofconcern.Operations-relatedinitiativeswillincludeintensifyingeffortstoreduceproductlife-cycleCO2emissions,minimizingwateruse,andactivelypromotingenvironmentalmanagementacrossthesupplychain.

Mid-term plans for product-related environmental initiatives (FY2015–FY2017)

Milestones on the road to 2020 Mid-term plans for environmental initiatives (FY2015-2017)


AchieveglobaltargetsforreducingaverageproductCO2emissions,withtheendgoalofsteadilyreducingproductlifecycleemissionsoverthelongterm

MarketnewproductstoeliminateCO2emissionsfrommobilityanddailyliving

Achievebest-in-industryfuelefficiencyandacceleratetechnologypenetration:

Motorcycles•Expanduseofprogrammedfuel-injectionsystem(PGM-FI)andlow-frictionengines,especiallyincommutervehicles

Automobiles•ContinuedeploymentofEarthDreamsTechnologystartedintheprevious3-yearmid-term•Continueglobalreleaseof2.0-liter,1.5-liter,and1.0-literturbochargeddirect-injectionenginesprovidingclass-leadingpoweroutputandenvironmentalperformance

PowerProducts•Expandapplicationofnewelectronicself-tuningregulator(STR)governor,developedfortheiGXengine

Establishanddeploynext-generationelectromotivetechnologies

Motorcycles•Marketelectricmotorcyclesthatmeetlocalneedsindeveloped(Japan:leased)andemerging(China)countries

Motorcycles•Expandlineupofmodelsequippedwithi-MMD,i-DCDhybridsystems•IntroduceinAcuramodelstheSportHybridSH-AWD,athree-motorhybridsystemwithseven-speedDCTwithbuiltinmotorforthefrontwheels,andindependentmotorsfortheleftandrightrearwheels•ReleaseaproductionFCEVmodelinJapanin2015,andtheU.S.andEuropethereafter,toadvancethepopularizationofFCEVs

PowerProducts•Improveelectriclawnmowersandexpandlineupthroughmodeladditions,especiallyinEurope

•UsingdemonstrationtesthousesinJapan,verifytheoperationandpracticalityoftechnologiesdevelopedtorealizezero-carbonmobilityandlivingby2020,incollaborationwithentitiesinotherbusinesssectors•WorkwithlocalgovernmentsinJapantocarryoutdemonstrationtestingoftheMC-microEVwiththeaimofdevelopingnext-generationvehiclesthatminimizeenvironmentalimpactswhilespreadingthejoyandfreedomofmobility,andtooffercommunitydevelopmentsolutionsthataresuitableforeachlocation

Material and water resourcesRampup3Refforts

Products:Continuetopromotestructuraldesignwithanemphasisonweightreduction;higherthroughputyields;easierrecyclingandmaintenance;andsustainabledesignwithanemphasisoneasilyrecycledmaterialsanduseofrecycledresins

Reduceexhaustemissions Makesteadyprogressinreducingexhaustemissionstocomplywithtighteremissionregulationsinvariouscountries

Substances of concern Morestrictlymanagesubstancesofconcernusedinproducts

•Continuetopromotemanagementofsubstancesusedinproductsandemployalternativestosubstancesofveryhighconcern•Continuetooperateglobalmanagementsystemsforsubstancesusedinproductstocomplywithapplicableregulationsinvariouscountriesandreducerisk


Direction


Milestones on the road to 2020 Mid-term plans for environmental initiatives (FY2015-2017)

Climate change and energyStrengthen initiatives that spanentireproduct lifecycles

Globaloperations:ReduceCO2emissionsperunitofproductionby10%byFY2017(baseline:FY2009)1

Purchasingdomain:•PromotemeasurementandreductionofsupplychainGHGemissionsineachregionbasedontheGreenPurchasingGuidelines

Purchasingdomain:•DisseminateadvancedenvironmentaltechnologiesdevelopedattheYoriiPlantinJapan,whichbeganoperationsin2013,tootherproductionsitesworldwide•Setbenchmarksforenergyuseandsethigherefficiencystandards

Productiondomain:Installrenewableenergysystems•SouthAmerica:27-MWwindpowersystem•China:Megawatt-scalephotovoltaicsystem•Japan:Megawatt-scalephotovoltaicsystematnewtestcourseinSakura,TochigiPrefecture

Transportationdomain:•Increasetransportationefficiencyineachregionbyimplementingmodalshifts,improvingtruckfuelefficiency,etc.•Spreadpackagingspecificationswithoutexteriorcontainersworldwide

Salesandservice,administration,productdevelopmentdomains:•Promoteenergyconservationbyencouragingeco-etiquetteandusingfacilitiesmoreefficiently

Material and water resourcesRampup3Refforts

Productiondomain:•Intensifyeffortstoreduceresourceuse,e.g.,byincreasingthroughputyieldstoreduceby-products•Collaboratewithsupplierstoincreaseuseofmetalscraps•Maintainzerolandfillwasteperformance(JapanandEurope)

MinimizewateruseProductiondomain:Reducewateruseaccordingtoconditionsineachregion,forexamplebyconservingwaterandusingrecycledwaterinproductionprocesses

Substances of concern ReduceVOC2emissionsfromproductionprocesses

Productiondomain:•DevelopVOCemissions-reductiontechnologiesforcoatingprocessesandexpandapplicationtooverseasproductionsitesandmotorcyclecoatingprocesses•SpreadHondaSmartEcologicalPaintintroducedattheYoriiPlantinJapantoothernewproductionsiteworldwide

Substances of concern LocalconservationinitiativesinaccordancewiththeHondaBiodiversityGuidelines

Corporateinitiatives:•Addresshazardoussubstancesandwaterusethatleadtoecologicaldegradation•EducatesuppliersandotherbusinesspartnersCollaborationwithlocalcommunities:•HondaWoods2activities

Substances of concernStrengthenglobal/regionalpromotionalframeworksandincreasedisclosureofenvironmentaldata

Strengthenindependent,voluntarypromotionalframeworksineachregion,andstrengthenglobalcollaboration

Advancesustainabilityreportingofenvironmental,social,andlegalcompliance

Mid-term plans for operations-related environmental initiatives (FY2015–FY2017)

1.Asingleper-unit-of-productionvaluewascalculatedbyweightingtheaveragereductionpercentagesformotorcycles,automobiles,andpowerproductswiththeCO2emissionsassociatedwiththeirrespectivelifecycles.2.SeepageJ62ofJapanRepottolearnmoreaboutHondaWoods.


Direction


GlobalGlobal Initiatives

Global Environmental Management

Global Product Development

Next-GenerationTechnology

Motorcycles

Automobiles

Powerproducts

50

66707894

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

Global


Global Environmental ManagementHondahascreatedaninstitutionalframeworktoputintopracticetheenvironmentalprinciplesarticulatedin the Honda Environment Statement, and has expanded it to the global level. Besides creatingenvironmentalmanagement systemsat theglobal and regional levels,we are also activelyworking toestablishthesesystemsandtoobtainISO14001certificationatallbusinesssites.

Environmental management organization• Organizational structureInDecember1991,HondacreatedwhatisnowtheJapanEnvironmentalCommitteeandassigneditacentralroleingoverningtheenvironmentalaffairsofthecompany.Sincethen,thisstructurehasbeenexpandedintoaglobalenvironmentalmanagementsystemwithregionalenvironmentalcommitteesinNorthAmerica,SouthAmerica,Europe,Asia&Oceania,andChina. InMarch1995, theWorldEnvironmentandSafetyCommitteewasestablishedtomanageenvironmentalaswellassafetyinitiatives,*throughwhichHondaaimstocreateamotorizedsocietythatissafeforallpeople.Thecommitteediscusses,determines,andreviewsannualplansforimplementingenvironmentalconservationactivitiesatthegloballevelbasedonmid-termbusinessplans,andhascreatedanenvironmentalmanagementsystemthatintegratesactivitiesonthegloballevelwiththoseonthefactoryfloor.InApril2014,HondaestablishedtheJapanHeadquartersandseparatedglobalfunctionsfromoperationsinJapan.Priortothis,Honda'sorganizationalstructurewasestablishedglobally from its foundation inJapan,but regional rolesand responsibilitieshavebeenclarified,andwehavenow takenona trulyglobalizedoperational structure,withsixorganically linkedregionalorganizations.ThecompanypresidentandCEOcurrentlychairs thecommittee,areflectionofHonda'srecognitionthatenvironmentalissuessuchasclimatechange,energy,andresourceissues,arecriticaltoHonda'sbusiness

• The PDCA cycle of eco-conservation activitiesTheWorldEnvironmentandSafetyCommitteedevelops3-yearmid-termpoliciesandplansforglobalenvironmentalinitiativesbasedonmid-termpoliciesandmanagementplansdeterminedbytheManagementCouncil.Individualdivisionspreparedetailedplansforeachregionandbusinessarea,andthenfinalizetheoverallplansafterdiscussionandapprovalbytheregionalenvironmentalcommittees.Theregionalenvironmentalcommitteesdiscussandevaluateannualachievementsundertheplansand,basedontheresults,createnewtargetsandplanswiththeobjectiveofachievingmid-termpoliciesandplans.TheprogressofenvironmentalinitiativesbyHondaGroupcompanies,aswellasthemesaffectingmultipledomainsaroundtheworld,arereportedtotheWorldEnvironmentandSafetyCommitteeandthenfactoredintothenextyear'sannualplansandthenextmid-termbusinessplansandpolicies.HondafollowsthePlan-Do-Check-Actcycletopromotecontinuousimprovementinenvironmentalperformanceineachregion:Japan,NorthAmerica,SouthAmerica,Europe,Asia&Oceania,andChina.Onehallmarkofthissystemis thatplanningand implementationarenotsimplydelegatedtospecializedstaff,but thatallassociatesareexpectedtobe involved.Thebasicthinking is thatallassociatesshouldbeactively tacklingenvironmentalissuesasapartoftheirdailywork.

P

DC

A

ThePDCAcycleofeco-conservationactivities

Mid-termenvironmentalpolicies/plans

WorldEnvironmentandSafetyCommittee

Regionalenvironmentalcommittees

Division

Detailedplans/actions

GlobalEnvironmentalManagement

Global

Global

*Forinformationonsafetyinitiatives,seetheHondaCSRReportandHondaDrivingSafetyPromotionActivities.


Honda'sorganizationalstructureforenvironmentalmanagement

WorldEnvironmentandSafetyCommittee

EnvironmentandSafety

PlanningOffice

Secretariat

RegionalOperations(Japan)

BusinessManagementOperationsAutomobileProduction BusinessSupport

Operations ITOperations PurchasingOperations CustomerServiceOperations

HondaR&DCo.,Ltd. HondaEngineeringCo.,Ltd.

HondaAccessCorporaiton

MotorcycleOperations AutomobileOperations PowerProductOperations

Region

Business

Function

RegionalOperations(NorthAmerica)

RegionalOperations(SouthAmerica)

RegionalOperations(Europe)

RegionalOperations(Asia&Oceania)

RegionalOperations(China)

JapanEnvironmentalCommittee

NorthAmericaEnvironmentalCommittee

SouthAmericaEnvironmentalCommittee

EuropeanEnvironmentalCommittee

Asia&OceaniaEnvironmentalCommittee

ChinaEnvironmentalCommittee

• Regulatory complianceIn accordance with the Honda Environment Statement, Honda introduces environmental management systems at all business sites and in each division, promotes continuous efforts to improveenvironmental performance,and strives to complywith voluntary environmental standards that aremore stringent than national and local regulations.We revised theHondaConductGuideline in April 2013(formulated in 2010) and are implementing it throughout the Honda Group in Japan and worldwide. The document calls on Honda associates to comply with laws and regulations, company rules, andsocial norms and, for thepurposes of environmental conservation,to strive to reduceenvironmental impacts in theirworkby conserving and recycling resources andenergy in accordancewith environmental lawsand regulations, company policies, and internal standards.We have appointed corporate directors to serve asComplianceOfficers, andwork systematically to enhance compliance and riskmanagement underthesupervisionofdirectorsinchargeofeachpartoftheorganization.HondaConductGuidelinehttp://world.hondacom/conductguideline/

• Emergency protocolsInanticipationofaccidentsandemergenciesthatcouldcauseenvironmentalpollution,eachfactoryanddivisionhasclearly-definedproceduresforpreventingpollution.


Global


Environmental management at Honda business sitesAlongwith development of environmentalmanagement systems at the global and regional levels,we havebeen introducing such systems at each business site in order to continuously improve their environmentalperformanceandtocontrolenvironmentalpollutants.• ISO 14001-certification status worldwideWehavebeenworkingactivelytoacquireISO14001,aninternationalcertificationforenvironmentalmanagement,particularly at ourproduction facilities.Presently,more than90%of allHonda vehicle assembly andproductassemblyplantsworldwidearecertified.AfteracquiringcertificationateachofourfivemajorproductionfacilitiesinJapan,wecombinedtheircertificationforintegratedoperationoftheirmanagementsystems.Goingforward,weplan to promote acquisition andexpandour integrated system to includeenvironmentalmanagement oftheSaitamaFactory'sYoriiPlant,newlycompletedinMarch2013.Wealsocombinedinfiscal2012thecertificationregistrationfornineofficebuildingsinJapan,includingtheHondaheadofficebuildingsinAoyamaandWako.

• Implementation of third-party verificationIn order to ensure that society and stakeholders recognize a high level of transparency and reliability in theenvironmental impactdatareleasedbyHonda,wehavebeenimplementingthird-partyverificationofourdatafromBureauVerit as JapanCo., Ltd. Since fiscal 2012,we also have been conducting as eries of on-sitesamplingsurveysatbusinesssites inJapanandoverseas,withconsiderationgiven tonecessityandbalancefromapublicperspective.

Honda of the UK Manufacturing, Limited

Honda R&D Co., Ltd., Automobile R&D Center (Wako) Honda R&D Co., Ltd., Automobile R&D Center (Tochigi) Honda R&D Co., Ltd., Motorcycle R&D Center

Honda Aoyama BuildingHonda Wako BuildingSaitama Factory's Sayama PlantSuzuka FactoryPower Train Unit Manufacturing Division, Power Train Parts FactoryProduciton Planning Division

Honda Automóveis do Brasil Ltda. (HAB)

Honda Auto Parts Manufacturing Co., Ltd. (CHAM)

Honda Automobile (Thailand) Co., Ltd. (HATC)

Honda of America Mfg. Inc.

Honda Manufacturingof Alabama, LLC

Third-party data verification from Bureau Veritas Japan Co., Ltd.

• Business sites covered by third-party verification

Disclosure of total GHG emissions

• Honda GHG emissions in FY2014Asaresponsiblecompanyoperating in themobility industry,Hondabelieves in the importanceofcalculatinganddisclosinggreenhousegas(GHG)emissionsinordertodriveprogressininitiativestoreduceglobalemissions.Asthefirstmilestoneinthisendeavor,inAugust2012Hondabecametheworld'sfirstmobilitycompanytodiscloseestimatesofallGHGemissionsfromitsentirevaluechain inconformitywiththeGreenhouseGasProtocol (GHGProtocol),1currentlytheworld'smostwidelyusedGHGemissionsaccountingstandard.Wereleasedestimatesoffiscal2012emissionsnotonlyfromourownbusinessactivities(scope1and2),butalsofromallupstreamanddownstreamactivities(scope3), extending from theprocurement of rawmaterials to the transportation andcustomer useofHondaproducts,andendingwiththetreatmentofend-of-lifeproducts.2Hondacontinuestocalculateandreportitsemissions,andismakingimprovementstogetamoreaccuratereadingofemissionsfromourentirevaluechain.Wearedoingthisinscope3(otherindirectemissions),forexample,bywideningtheboundariesofdatacollection3forcategoriesthataccountforthelargestproportionofestimatedemissions,andimprovingtheaccuracyofcalculationmethods.Thecalculationsforfiscal2014showthatGHGemissionsfromHondabusinessactivitieswere5.21milliont-CO2e,andtotalemissionsfromthevaluechain,includingotherindirectmissions,were281.16milliont-CO2e.Wehopetoleveragetheseimprovementsindatameasurementandmanagementtodevisemoreeffectiveemissionsreductionstrategies.

1.PublishedbytheWorldBusinessCouncilforSustainableDevelopmentandtheWorldResourcesInstitute2.ReadmoreaboutHonda'sGHGemissionsdisclosureefforts inCase19of "EnvironmentalDocumentary—HondaFace." (http://world.honda.com/environment/face/)3.Thescopeofdatacollectionwasbroadenedinfiscal2013,capturingadditionalgreenhousegasemissionamountingto7%oftotalemissions.Wewillconsiderwaystofurtherbroadenthisscopeinfiscal2014andbeyond

　


Global



Global

　

　　　　　　

　　　　　　　　

　　

• Honda's organizational structure for environmental management

• Total GHG emissions, FY2012 to 2014 • Breakdown of total FY2014 GHG emissions

Breakdown

(totalgreenhousegasemissions)

200,000,000t-CO2e

225,060,000t-CO2e

FY2012 FY2013 FY2014

Scope3othercategories Scope3,

othercategories17.0%

Scope3category1181.1%

Scope3category11

Scope2Scope1

Scope10.5%Scope21.4%275,910,000t-CO2e 281,160,000t-CO2e

GHGemissionsfromtheentireHondavaluechain(scopes1,2,and3)

Directemissionsfrombusinessactivities (scope1)

Indirectemissionsfromenergyuse (scope2)



EmissionsfromHondabusinessactivities(scope1and2)

Otherindirectemissions (totalofscope3)

FY2012

FY2012

FY2012

FY2012

FY2012

FY2012

FY2012

FY2012

FY2012

FY2012

FY2012

FY2012

FY2012

FY2012

FY2012

FY2012

FY2012

FY2012

FY2012

FY2012

FY2012

FY2012

FY2013 FY2014

•Scope1:DirectGHGemissionsfrombusinessactivities,asdefinedbytheGHGProtocol(examples:combustionoffueloilatamanufacturingplant,emissionsfromworkvehiclesandcompanycars).Thescope1figurespresentedinthisreportincludeallGHGsemitteddirectlybyHondaMotorCo.anditsconsolidatedsubsidiariesandaffiliatedcompaniesworldwide.•Scope2:IndirectGHGemissionsfromacompany'suseofenergy,asdefinedbytheGHGProtocol(examples:electricalenergyusedbyamanufacturingplantoroffice).Thescope2figurespresentedinthisreportincludeallGHGsemitteddirectlybyHondaMotorCo.anditsconsolidatedsubsidiariesandaffiliatedcompaniesworldwide.•Scope3:OtherindirectGHGemissionsnotincludedinscope1andscope2,asdefinedbytheGHGProtocol.Scope3issystematicallybrokendowninto15categories(examples:category11includesemissionsarisingfromtheuseofsoldproducts;category12includesemissionsarisingfromtheend-of-lifetreatmentofsoldproducts).•Thecategory11figurespresentedinthisreportrepresentthecumulativeamountofgreenhousegasesthatwillhavebeenemittedbyproductssoldbyHondainfiscal2014(automobiles,motorcycles,powerproducts)asaresultoftheirusebycustomersfromthetimetheyreceivedthoseproductsuntiltheydisposeoftheminthefuture.The"scope3,othercategories"figurespresentedinthisreportarethesumofemissionsfromcategories1,2,3,4,5,6,7,9,10,12,and15.AspertheGHGProtocol,Hondaexcludescategories8,13,and14fromitscalculations,asthesecategoriesareeithernotpartofHondabusinessactivitiesoremissionsfromthesecategoriesareaccountedforinothercategories.



Global

• Promoting lifecycle assessment (LCA)Wehavebeendevelopingourownmethodstoreducethe environmental impacts of our business activitiesandacrossproductlifecycles,fromproductionthroughdisposal.InMarch2002,webuilttheHondaLife-CycleAssessment(LCA)DataSystem,asystemformeasuringCO2emissions fromallbusinessactivities,andsincethen have been making focused efforts to meetreduction targets set for each domain-production,purchasing, sales and service, administration,transportation, and so forth.We are also calculatingand assessing CO2 emissions across product lifecycles-from rawmaterial procurement to productdisposal-andmaking use of this information in ourefforts to reduce CO2emissions for eachmodel.This information is also importantwhen consideringapplicationsforthemanynext-generationtechnologieswe are developing, so we are using to developlow-carbonsolutionsatthedevelopmentstage.

• Reducing GHG emissions from use of sold productsScope3,category11emissions(emissionsfromuseofproductssoldtoourcustomers),accountedformorethan80%ofGHGemissionsfromHonda'sentirevaluechain.ThismeansthegreatestchallengetoreducingemissionsfromourvaluechainisfindingwaystoreduceemissionsrelatedtocustomeruseofHondaproducts.Tothisend,we'veestablishedthetargetofreducingglobalaverageproductCO2

emissions 30% from2000 levels by 2020, and areworking to improve the fuel efficiency of our products. For the foreseeable future,however,ourproductionvolumeislikelytooutpaceexpectedimprovementsinfuelefficiency,soevenifweachievethistarget,westillpredictanincreaseinscope3,category11emissions.Nevertheless,itisessentialforustofindwaystoreversethisrisingtrend.Wearecertainthatourultimateaimistoreducetotalemissionsfromourproducts,evenasproductionexpands.

• Reducing total GHG emissionsHonda'sultimateaimistoreachthepointofhavingzeroGHGemissionsfromitsproductsandbusinessactivities.Toachievethis,wehaveadoptedtheTripleZeroconcept,avisionofthefuturethatseesusshrinkingthreetypesofenvironmentalimpactdowntozero.Onthepathtothisfuture,wewillaimtocutHonda'stotalGHGemissionsinhalfby2050.Torealizethistarget,wehaveadoptedourownHondaEnvironmentalPerformanceStandards(HEPS),andbyapplyingthemtoHondaproductsweaimtoreduceGHGemissionsthroughimprovementsinfuelefficiency,theuseofrenewableenergy,andotherapproaches.

Emissions from Honda operations: Conceptual projection

2011

(TotalGHGemissions) Fromgrowthtodecline

Continuereductioneffortstoreachzero

2012 2013 2014

0

20

40

60

80

100

• LCA results formajor motorcycle models released in FY2014 (Japan)

CB400SF(2005)

NC750X PCX Dunk

Baseline100

Rawmaterials Productio Use Sales/service Disposa Transportation

91

44 38

(%)

•Honda'smodel-specificLCAsystemassumesaproductlifetimedrivingdistanceof100,000kmforautomobilesand50,000kmformotorcycles.These

figuresaredifferentfromthoseassumedforscope3,category11emissionsundertheGHGProtocol.

0

20

40

60

80

100

• LCA results formajor automobile models released in FY2014 (Japan)

Fit(2013)

Baseline100

Rawmaterials Productio Use Sales/service Disposa Transportation

94

74

(%)

AccordHybrid

FitHybrid


Economic benefits of environmental conservation activities

Honda strives to measure cost savings and revenue associated with its environmentalconservationactivitiesinordertomaximizetheireffects.Infiscal2014,wecalculatedtheseeconomicbenefitsbytallyingrevenuefromthesaleofvaluablematerialsresultingfromwasteandemissionsprocessing,togetherwithcostssavedthroughenergyconservationmeasures.Wenotonlydisclosethesedatatoexternalstakeholdersasindicatorsofourcorporatevalue,butalsousethemasareferenceformaking administrative decisions regarding environmental innovation. Going forward,wewillcontinueworkingtoimprovetheaccuracyofdatacollectedfromoperationsinJapan,whilealsoverifyingmethodsforcollectingdatafromoverseasbusinesssitesthataresuitableforglobaldisclosure.


Global

Economic benefits

Total

(yen)

FY2013FY2014

3.8bil 2.4bil

0.1bil 0.2bil

0.05bil 0.1bil

3.9bil 2.7bil

Incomefromsaleofvaluablewastematerials

InstalledtechnologiesCostreductionsfromsavedenergy Behavioralchanges,etc.

•EffectonrevenueandexpensesinJapan

Product life cycle

FY2014April 1, 2013-March 31, 2014

2013 2014 2015

Scope 3, category 11Sales

Production

Rawmaterialextraction

Rawmaterialtransport

Scope 3,category 12

Scope 3,category 1

Scope 3,category 4

Scope 1and 2

Scope 3,category 9

End-of-lifetreatment

2016 20xx

*Annualdistancetraveled,productlifetimeinyears:BasedontheWBCSD'sSMPModeldevelopedbytheInternationalEnergyAgency

• The thinking behind scope 3, category 11 (emissions from product use)Scope3,category11emissions,CO2emissionsfromtheuseofproductssoldtoourcustomers,accountedformorethan80%ofemissionsthattookplaceacrossourvaluechain.Thereasoncategory11issolargeisbecauseit includesnotonlytheCO2thatHondaproductssoldinfiscal2014emittedinfiscal2014,butalsotheCO2thoseproductswillemit in the future. Inotherwords,whenacustomer inJapanpurchasesaHondavehicle,weexpect thatcustomer todrive thevehicle10,000kmayear for15years.*Scope3,category11iswherewecalculatealltheCO2thatwillbeemittedduringthattime.Scope3includesfutureemissionsbecauseitisbasedonanaccountingmethodthat counts emissions notwhen they occur butwhen thebusiness activities thatwillresultinthoseemissionsoccur.Theapproximately27millionautomobiles,motorcycles,andpowerproductsthatHondasoldtocustomersaroundtheworldinfiscal2014willcontinueemittingCO2astheyareusedanduntiltheyaredisposedofatsomepointinthe future.Scope3says that theseemissionsare theresultofHondahavingsold itsproductsinfiscal2014.


Direct energy

consumption

Indirect energy consumption

Energy consumption

Companies covered: Nearly all consolidated subsidiaries and affiliated companies of the Honda Group • Purchased electricity has been converted to joules using the international standard 3.6 GJ/MWh. • Calculations are based mainly on energy consumed by stationary sources.• A terajoule (TJ) is a unit of energy, "tera" meaning 1012

Direct

emissions

Indirect

emissions

Greenhouse gas emissions

Companies covered: Nearly all consolidated subsidiaries and affiliated companies of the Honda Group •Greenhouse gas emissions were calculated while referring mainly to the WRI and WBCSD's2004 "The Greenhouse Gas Protocol (Revised Edition)."• Calculations are based mainly on emissions from stationary sources

Global Environmental Impact

Honda is promoting its Green Factory initiative worldwide, with the goal of creating production facilities that are the pride of the communities in which they operate. In our non-production activities as well, we are promoting energy conservation and waste reduction initiatives on a global bas is.

20102011201220132014

20102011201220132014

20102011201220132014

20102011201220132014

20,700

20,900

19,400

22,900

23,900

1,310

1,330

1,240

1,410

1,410

19,700

21,700

20,300

22,300

23,700

2,770

3,000

2,960

3,540

3,800

(FY)

(FY)

(TJ)

(1,000t-CO2 equivalent)

0

05

5,000

0

10,000

150100

15,000

200

20,000

250

25,000

400350300

Water use, wastewater volume

Companies covered: Nearly all consolidated subsidiaries and affiliated companies of the Honda Group• Disclosure of wastewater volume begun in fiscal 2011.

Water use

Wastewatervolume

Waste

landfilled

Total

waste

generated


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

Japan

North America

South America

Europe

Asia/oceania

China


Global

20102011201220132014

20102011201220132014

2010201120122013

20102011201220132014

33,800

34,400

30,100

34,300

35,300

38

32

26

31

31

1,150

1,280

1,210

1,370

1,410

23,20020,900 21,100

22,400

(FY) (1,000 m3)

(FY)

0

01

0

300

02

5,000

600

03

10,000

900

04

15,000

1,200

0

20,000

1,500

40,000



2012

2013

2014

SOxNOx

265

233

254

0 200 400

SOxNOx

SOxNOx

Environmental data for manufacturing, by region (FY2014)

•The data of companies added to Honda's consolidation during the reporting year and companies that have been excluded from the consolidation due to a merger, liquidation, or other change, are not included.Totals with more than three digits have been rounded to three significant digits.

• LNG is not included.

Energy

Japan North America South America Europe Asia & Oceania China

Waste

Water use

Purchased electricity (1,000 MWh)

Natural gas (1,000 GJ)

Liquefied petroleum gas (1,000 GJ)

Diesel (1,000 GJ)

Landfilled Waste ( t )

Volume recycled ( t )

Municipal Water (1,000 M3)

Groundwater (1,000 M3)

Rainwater (1,000 M3)

1,590

82

813

7

0

445,000

3,740

4,280

50

1,900

7,010

120

95

9,000

406,000

3,140

2,350

10

320

333

301

23

1,100

60,000

220

1,480

0

128

662

6

20

0

40,000

600

10

0

1,170

1,370

1,380

717

3,700

197,000

5,830

3,420

40

686

1,190

67

65

15,400

118,000

4,450

0

0

605

572

622

600 800 1,000

Companies covered: Nearly all consolidated subsidiaries and affiliated companies of the Honda Group •Calculations are based on fuel consumption.


Global

( t )


Honda'sdouble-loopmodellinksenergyandnext-generationpersonalmobilitytechnologies

Next-generationsolarhydrogenstation

Solarpanels

Householdgas-enginecogenerationunit

Highvoltagetransmissionlines

StandardDCcharger

StandardACcharger

Whightsupportdevice

Walkingassist

MonpalML200

MCHPEnergy

generation

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Next-Generation TechnologyHondaisdevelopingnext-generationtechnologiesthatwillenablecomprehensivemanagementofpersonalmobilityproductsandenergygenerationsystems.

Honda Smart Home System: High living comfort and low emissions at the same time Energy flow in HSHS

• Integrating personal mobility with energy generation technologiesComprehensivemanagementandoptimizationofenergysupplyanddemandiscrucialtoachievingourmissiontorealize“thejoyandfreedomofmobilityandasustainablesocietywherepeoplecanenjoylife.”Thisappliesnotonlytotheenergyusedbymobilityproductsbutalsoenergyusedbyhouseholdsandentirecommunities.Tomakethishappen,we’redevelopingdevicesthatwillmakeupwhatwecalltheHondaSmartHomeSystem,asystemfocusedonusingICTtechnologiestolinknextgenerationpersonalmobilitydevices,mainlyelectricvehicles,withlocalelectricgridsanddistributedenergygenerationequipment.

• Honda Smart Home SystemAttheheartofHondaElectricMobilitySynergyistheHondaSmartHomeSystem(HSHS).ThisenergymanagementsystemcomprehensivelycontrolshouseholdenergytoachievethehighestefficiencyandlowestCO2emissions.Italsoenablesindividualhomestobeenergyself-sufficientduringemergenciessuchasduringpoweroutagesandnaturaldisasters.SinceApril2012,we’vebeenpilottestingtheHSHSinJapan.Theresultsofthesetestswillbeusedtodevelop,by2015,technologiesthathelpachievea50%reductionin CO2emissions(comparedto2000levels)fromhouseholdandvehicleenergyuse.Ultimately,weareaimingtocompletelyeliminatehouseholdCO2emissions.

use

use

use

•EVsandFCEVsstandinforhomebatteryunits.

LNGorLPG

Heat

Electricity

CIGSthin-filmsolarpanels

ElectricityElectricity


Testing Honda Smart Homes around the world

• Test house built in Saitama City, Japan in three-company partnershipSekisuiHouse,Ltd.,ToshibaCorporation,andHondahavebuiltanewdemonstrationtesthouseinthecityofSaitamaandbegunverifyingtheuseofadvancedenergymanagementtechnologiesinnewstylesofliving.ThehousefeaturestechnologiesthatenablecomprehensivecontrolofIT,personalmobility,andotherdevices,aswellasthesupplyanddemandofenergyusedinthehome,formobility,andwithin the localcommunity.Occupiedby real tenantsduring testing, the testhome isaduplex-stylehouse thatallowsthesharingofenergyresources,suchaselectricityandhotwater,betweenhouseholds;forexample,onehouseholdcanusesurpluselectricitygeneratedbythesolarpanelswhileotherhouseholdmembersareoutduringtheday.Throughvarioustechnicalinnovationsand initiatives—suchasacontact-lesscharger forcordlessEVcharging,vehicle-to-homeandvehicle-to-communityelectricitysupplyapplications,andthedesigningoflivingspacesthatfacilitateuseofpersonalmobilitydevices—HondawillworkwithSekisuiHouseandToshibatorefine,inareal-worldenvironment,technologiesthatsupportlifestylesofthefuture

• Honda Smart Home US built in California, U.S.InCalifornia,we built and opened theHondaSmart HomeUS (HSHUS), a demonstration test house featuring a home energymanagementsystem(HEMS)independentlydevelopedbyAmericanHondaMotorCo.,Inc.HSHUSwasfullyfurnishedandequippedwith household appliances, as well as a Fit EV battery electric vehicle for commuting, to enable testing using real occupants.Thehousegeneratesmoreelectricityfromrenewablesourcesthanitconsumesinayear,includingtheenergyneededtochargetheFitEVfordailycommuting.Itisalsoextremelyefficient:ituseslessthanhalftheenergyforheating,cooling,andlightingthanasimilarlysizedhomeinthearea,andusesathirdofthewaterconsumedbytheaverageAmericanhousehold.2

Fuel cell electric vehicles: The ultimate in next-generation personal mobilityHondaisactivelyengagedinresearchanddevelopmentofthefuelcellelectricvehicle(FCEV)—avehiclethatrunsonhydrogenandoffersthesamecomfort,cruisingrange,anddrivingperformanceasagasolinevehiclebutwithoutcreatinganycarbonemissions—astheultimateeco-car.

• FCEV ConceptIn 2013, Honda unveiled the FCEVConcept, a next generation concept car designed to realize better performance at a lowercost than theFCXClarity,aiming for release in2015,when the firstproductionFCEVsareexpected tohit theJapanesemarket.TheFCEVConceptisequippedwitha70MPahigh-pressurehydrogenstoragetankthatprovidesacruisingrangeofmorethan300miles(around480km).Thetankcanberefilledinabout3minutes,makingrefuelingasquickandeasyastoday'sgasolinevehicles.Externalpowersupplycapability,developedthroughdemonstrationtestingoftheFCXClarity,isalsooptionalonallJapanese-marketmodels,providingbackuppowerthatcanbesuppliedtothehomeindisastersandotheremergencies.WeplantoreleaseanFCEVmodelbasedonthisconceptvehicleinJapanin2015,andintheU.S.andEuropethereafter.Wealsowillmoveforwardwithvariousinitiatives todrive thepopularizationofFCEVsby2020, includingworkingwithGeneralMotors todevelopa fuelcellsystemandhydrogenstoragetankthataresmaller,lighter,performbetter,andaremoreaffordable.

DuplextesthousebuiltinSaitamaCity

Honda'snewlydevelopedFCStackdeliversanoutputofmorethan100kWandpoweroutputdensityof3kW/literwhilebeing33%smallerthantheprevioustechnology.

1.V2H:vehicle-to-home2.Hondainternaldata


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MotorcyclesMessagefromtheHeadofMotorcycleR&D

'Driving innovation that makes environmentaltechnologies affordable is our highest priority.'

Yoshishige Nomura•DirectorandManagingOfficer,MotorcycleR&DCenter,HondaR&DCo.,Ltd

Meeting new needs in emerging marketsLookingbackonfiscal2014,it'sbestwestartwithemergingmarkets,themaindriverofHonda'sthrivingmotorcyclebusinessinrecentyears.IntheASEANcountriesofSoutheastAsia,changesinconsumerpreferenceshaveemergedintandemwitheconomicgrowth.Utilityisstartingtoloseitsstandingasthemostdesiredattributeinabike,withscootersaccountingforalargershareofthemarketanddemandforfun-to-ridemodelsalsogrowing.IthinkHondahasmadetherightmovestocapturethisnewdemand.WeexpandedourlineupofcompactscooterspoweredbyeSP,anext-generationglobalenginethatdelivershighenvironmentalperformance.WealsounveiledinThailandtheCBR300Rmotorcycle,whichhasalargerenginedisplacementthanthemodelitreplaces.InIndia,acountrywithenormouspotentialforHonda,unitsaleshaddeclinedduetoourdissolvingajointventurewithalocalmanufacturerin2011.Nonetheless,wegrewsalesinfiscal2014byrollingouttheDreamNeo,whichboastsclass-leadingfuelefficiency,and theActiva-i for theemerging femaledemographic.Going forward,wewillaimtoquickly takebackourpositionas thebest-sellingbrand in India. Indevelopedmarkets,meanwhile,someinterestingchangeshavebeentakingplaceinNorthAmerica.Themarketforfour-wheelutilityvehicles,alsoknownasside-by-sides, isexpandingrapidly;HondarespondedbylaunchingthePioneer700.Inmaturemarkets,customerpreferenceshavediversified,requiringmorerecreationalanddistinctiveproducts.Hondahassuccessfullymetthesechangesindevelopedmarketsbyleadingtheindustryindevelopingproductstailoredtodiverseconsumersegments.

Environmental leadership is no longer an optionWhileothermotorcyclemakersaroundtheworldhavelanguished,Hondahasgreatlyincreaseditssalesvolume,reaching1.7millionunitsinfiscal2014.ForHondatoremainamarketleaderinmajorgrowtheconomiessuchasIndia,Indonesia,andAfrica,achieving—andmaintaining—thehighestenvironmentalperformanceisnolongeranoption.We'recarryingoutanumberofR&Dinitiativestorealizefurtherimprovementsintheenvironmentalperformanceofourmotorcycles—fromtheexpansionoffriction-reducingtechnologies,ouridlingstopSystem,andPGM-FIforengines,totheapplicationoffuel-efficienttechnologiesfromHondaautomobiles.Mostimportant,however,isourabilitytodeliverthesecutting-edgetechnologiesataffordableprices.There'snopointinsharingenvironmentalbenefitswithonlyafew.Ibelieveit'sHonda'sresponsibilityasamarketleadertogetadvancedenvironmentaltechnologiesinthehandsofmoreandmorepeople.I’llseetoitthatwetakeboldstepstocommercializethesetechnologiessowecanachievethis.

Photo:MotorcycleR&DCenter,HondaR&DCo.,Ltd.


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NC750X NC750S

MotorcyclesHondaisdrivingthemarketpenetrationofmodelsandengineswithadvancedenvironmentalperformance,especiallyintherapidlygrowingAsia&Oceaniaregion.

New Mid Concept series offers both enhanced riding and fuel efficient performance •Global

• Evolution of the New Mid Concept seriesInJanuary2014,weannouncedandbegansalesoftheNC750X,NC750S,andIntegra,largesportmotorcyclesequippedwithawater-cooled,four-strokeoverheadcam,straighttwo-cylinder750-ccengineboastingpowerfultorquecharacteristics,easyhandling,andoutstandingfuelefficiency.ThesethreemodelsarethenextstepintheevolutionoftheNC700X,NC700S,andIntegra,thefirstNewMidConceptmodelsreleasedin2011.TheoriginalseriesadoptedfuelefficiencytechnologiesfromHondaautomobilestorealizea40%improvementinfueleconomycomparedtootherenginesinthesameclass.Thistimearound,weimprovedfuelefficiencyandaddedmorefeatureswhilealsoupsizingenginecapacity.Withthisenhancedproductappeal,wewillaimtofurtherincreasethepopularityofmid-sizebikeswithadvancedenvironmentalperformance.eSP:Powering9modelsinmorethan30countriesTheeSP,aglobalenginedevelopedforanewgenerationofcompactscooters,realizes25%higherfuelefficiencythanexistingenginesinthesameclass.Sincereleasingtheenginein2011,we'verampedupglobalsalesofcompactscootersfittedwiththeeSPforhigherenvironmentalperformance,selling2.08millionunitsinthetwoyearssince2012.

• Better fuel performance in a larger engine ToobtainmorepowerfuloutputcharacteristicsfromthenewengineinstalledintheNewMidConceptseries,weincreaseddisplacementbyexpandingthecylinderboreby4.0mm.Thisresultedina3-kWincreaseinmaxoutputand7-N.mincreaseinmaximumtorquefromthepreviousmodel.Tosupporttheincreasedcylindervolume,weswitchedfromonebalanceshafttotwo.Wealsoadoptedtallertransmissiongearratiostoboostfuelefficiency,up1.0km/literfromthepreviousmodelwhentestedataconstantspeedof60km/honaflatsurface.WeviewtheNewMidConceptseriesasaway to raise theenvironmentalperformanceofmid-sizemotorcyclesworldwide,andwill install thisnewengine inagrowingnumberofmodels to realize further reductions inourglobalenvironmentalimpact.

Integra


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Expansion and evolution of the eSP global engine for next-generation compact scooters •Global

• eSP: Powering 9 models in more than 30 countriesTheeSP,aglobalenginedevelopedforanewgenerationofcompactscooters,realizes25%higherfuelefficiencythanexistingenginesinthesameclass.Sincereleasingtheenginein2011,we'verampedupglobalsalesofcompactscootersfittedwiththeeSPforhigherenvironmentalperformance,selling2.08millionunitsinthetwoyearssince2012WehavealsointroducedanewlydevelopedeSPengineforthe50-ccclasstocomplementthoseinthe125-ccand150-ccclasses.Thisenginehasbeeninstalledin9modelsinmorethan30countries.Goingforward,wewillfurtherrefinethisengineandexpanditsusetoimprovetheenvironmentalperformanceofcompactscootersworldwide.

• Redesigned PCX fitted with improved eSP engineInJanuary2014,wereleasedacompletelyredesignedPCXandPCX150inmarketsworldwide,includingASEANcountries,Europe,andNorthandSouthAmerica.InadditiontobeingpoweredbyanimprovedeSPengine,thesemodelsalsofeature variousbody-relatedimprovementsthatprovideafurtherboosttofuelefficiency,includingallLEDlamps,whichprovidea60%improvementinelectricalefficiency,andafuelefficientreartireboasting20%lessrollingresistance.

SHwitheSP(Europe,etc.)ClickwitheSP(Thailand,etc.) Globalenginefornext-generationcompactscooters(cut-awaymodel) PCX


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ASEAN-made 125 cc-class models going global •Global

• A class of motorcycles with universal appealThere'snoreasonwhythemany125cc-classbikeswe'vemarketedinASEANcountriesandotherpartsofAsiacan'tbetheperfectcommutersinotherregionalmarkets,giventheir exceptional fuel performance, space efficiency, andmaneuverability.InJapan,we'vemadeuseoftheseglobally-mademodelstoaugmentourlineupbyintroducingtheLEAD125,SHMode,CBR125R,Grom,CrossCub,Zoomer-X,andvariousothermodels

LEAD125

SupraX125FI MegaProFI

PGM-FI models expanded in Indonesia •Indonesia

• PGM-FI models expanded in IndonesiaSinceissuingtheAll-FIDeclaration,apledgetoinstallourfuel-savingPGM-FIelectronicfuelinjectionsysteminallmotorcyclesproducedinIndonesiaby2013year-end,wehavegraduallyexpandedourlineupofmodelswithPGM-FI.Infiscal2014,withthereleaseofsuchmodelsastheSupraX125FIandMegaProFI,wereachedourtargetof100%adoptionofPGM-FIinallmodelsproduced.

DreamNeo

Dunk,thefirst50ccclassHondascooterin12yearsNewlydevelopedeSP,awater-cooled,four-strokeoverheadcam,single-cylinder50-ccengine

Fuel-efficient Dream Neo110-cc motorcycle released in India •India

•Most fuel-efficient Honda motorcycle in IndiaInApril 2013,we released theDreamNeo, themostaffordable and most fuel-efficient Honda motorcyclereleasedinIndiatodate.TheDreamNeoispoweredby a new air-cooled four-stroke 110-cc engine thatdelivers thehighestoutputand torqueamongHondamotorcycles in the equivalent class. And with a fueleconomyof74km/liter,it'salsothemostfuel-efficientHondabikemarketedinIndia.

Setting a new standard with the release of the new Dunk 50-cc scooter •Japan

• eSP engine debuts in 50 cc-class modelInFebruary2014,wereleasedtheDunk,ourfirstnew50ccclassscooterin12years.TheDunkisbasedona"premiumsneakers"conceptthatseekstoprovideriderswiththejoyofanelegantridethat'salsoeasytouse.Themodeloffersanewstandard inscooterridingthataddsanextra levelof funtodailyactivitiesforawidedemographic,includingyoungadults.Togiveitthepowerandenvironmentalperformancebefittinganewstandardscooter,weequippedtheDunkwithanewlydevelopedeSPenginefeaturingextensivelow-frictiontechnologies—thefirsttimeina50cc-classscooter.Thisresultedinanimpressivefuelperformanceof56.6km/liter(whentestedusingtheWorldwide-harmonizedMotorcycleTestCycle1),up10%fromexistingbikesintheequivalentclass,whilealsoboostingoutputby18%andtorqueby11%,alsocomparedtobikesinthesameclass.

1.FuelefficiencyvaluemeasuredusingtheWMTCtestcycle,aninternationalstandardstipulatingthemethodfortestingexhaustgasunderconditionsthatbetterreflectreal-worldvehicledrivingpatterns,suchasstartup,acceleration,andstopping.


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AutomobilesMessagefromtheHeadofAutomobileR&D

Striving for products that offer high environmentalperformance and exciting value unique to Honda

Jiro Yamaguchi•DirectorandManagingOfficer,AutomobileR&DCenter,HondaR&DCo.,Ltd.

Optimizing our global product lineup led to industry-leading environmental performance in each region.

Onegreatachievementoffiscal2014wasthegloballaunchofanewgenerationofcompactvehicles.WecompletelyredesignedtheFitseriestoprovideclassleadingfuelperformanceinbothgasolineandhybridvehiclevariations,andalsoreleasedtheVezelSUVandCitysedanbasedonthesamehigh-efficiencypowertrain.Thistrioofefficientvehiclesputusintherightplacetodeliveranewgenerationofcompactvehiclestocustomersworldwide.InNorthAmerica,we finisheddevelopment of theAcuraRLX, featuringSportHybridSH-AWD (SuperHandlingAll-WheelDrive),Honda's first three-motor hybrid system.Combinedwiththeone-motorhybridsystem,SPORTHYBRIDi-DCD,andtwo-motorhybridsystem,SPORTHYBRIDi-MMD,thesethreemodelscompleteourhybridvehiclelineup.Wealso releasedavarietyofnewmodels inother regionsacross theglobe, including theCivicTourerwagon inEurope, theAmazesedan in India,andtheMobilioMPVwiththird-rowseatinginIndonesia.Behindthesesuccesseswastheimpressivegrowthofourlocalproductdevelopersinemergingcountries.Infiscal2014,wegotsignificantlyclosertowhatweseeastheidealprocessforglobalproductdevelopment:todevelopcoretechnologiesinJapanandsupportoverseasdevelopersastheyincorporatethemintomodelsoptimizedtoeachregion.Thisapproachhelpedusrealizeindustry-leadingenvironmentalperformanceineachregion.

Photo:AutomobileR&DCenter(Tochigi),HondaR&DCo.,Ltd.

New-generation VTEC Turbo engines lead the way to more affordable environmental technologies

InemergingmarketslikeChina,India,Brazil,andAfrica,motorizationisadvancingatapacemanytimesfasterthanpost-warJapan.Thefateofourbusinessinthesecountrieswill hingeonhoweconomicallywecandeliverenvironmentallyadvancedproducts.One technology thatoffersasolution isenginedownsizing, theapproachofusingforcedinductionandotherefficiencytechnologiestodelivermorepowerwithlessdisplacement.WedevelopedVTECTurbo,anew-generationdownsizedturboenginethatdelivershigherfuelefficientperformanceatalowercost,aswellaspowerperformancethatlivesuptoHonda'sreputationforfundriving.Weplantofitthisengineinanumberofglobalmodelsfromfiscal2015,sobeonthelookout.Oneimportanttaskfromalonger-termperspectiveisworkplacedevelopment.Whilelow-carbontechnologyisanessentialpartoffuturemobility,customerswon'tbuyourproductsiftheydon'tcomewithanaddedelementofexcitement,anappealthatonlyHondacanprovide.Honda'sidentityisrootedinthecreationofamazingproductsnoonehaseverseenbefore.Tocontinuedevelopingexciting,mold-breakingproducts,weneedexciting,mold-breakingworkplacesforourdevelopers.Byreturningtoaworkenvironmentandculturethatfearlesslytakesonnewchallenges,wewilllaythefoundationforlaunchingproductsthatarethefirstandbestoftheirkind.ItwillalsohelpusraisethenextgenerationofdeveloperswhowillleadHonda-andtheworld-inenvironmentalinnovation,andtorealizethezero-impactsocietyweallstrivefor.IhopetosharethispassionwithouryoungdevelopersandshowtheworldwhatHondaistrulymadeofbyconceivingalonglineofnew,appealingproductsthatembodytheperfectcombinationofenvironmentalperformanceandenjoyment.


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Redesigning a globally strategic model: the third-generation Fit •Global

• A compact car with global proportionsSinceitslaunchin2001,theFithassoldanimpressive4.87millionunitsin123countriesworldwide.1Wereleasedacompletelyredesignedmodel-thefirstinsevenyears-inJapaninSeptember2013.Tomakethisthird-generationcompactmodelmoreconvenient,user-friendly,andappealingtocustomersworldwide,weloadeditwithadvancedtechnologies,includinganEarthDreamsTechnology2powertrainandnewplatform.

• Newly developed Sport Hybrid i-DCD hybrid systemTheFitHybridfeaturesSportHybridi-DCD,3anewly-developedlightweightandcompactone-motorhybridsystem.Pairedwithanewlydeveloped1.5-literAtkinsoncycleengine,thesesystemsautomaticallyselectthemostefficientofthreedrivingmodesdependingonoperatingconditions,therebyachievinganexceptionalfuelefficiencyof36.4km/liter(JC08testcycle).4

AutomobilesHonda makes the most of advanced technologies to develop automobiles that balance driving fun with environmentalperformance.

FitHybrid

Sport Hybrid i-DCD

1.AsofMarch31,2013 2.Anext-generationpowertrain series that greatly enhancesbothdrivingperformanceand fuel economy,buildingonadvancements inenvironmentalperformance for internalcombustionengines, transmissionefficiency,andelectromotivetechnologies topursuea joyofdrivingunique toHonda.3. i-DCD: IntelligentDualClutchDrive 4.Testingof theFitHybrid (FWD)bytheJapaneseMinistryofLand,Infrastructure,TransportandTourism5.Intelligentpowerunit.

+ +Clutchoff

ClutchoffMotor Motor MotorClutchoff ClutchoffClutchoff Clutchoff

1.5-literAtkinsonCycleDOHCi-VTECengine

7-speedDCTwithbuilt-inmotor

IPU5withbuilt-inlithium-ionbattery

Battery Battery Battery

EVDrive HybridDrive EngineDrive

TorqueElectricity

Sport Hybrid i-DCD


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Fit

1.3-literAtkinsonCycleDOHCi-VTECengine

• Even gasoline engine model boasts class-leading fuel economyThe 1.3-liter gasoline engine Fit employs a newly developed Atkinson cycle engine and an optionalcontinuouslyvariabletransmissionfordramaticallyenhancedtransmissionefficiency.Theseresultinafueleconomyof26.0km/liter1(JC08testmode),whichrivalsthatofearlyhybridmodels.

• Rigorous weight reductions boost fuel performanceAround23%of theFit'sbody ismadeofultra-high-tensilesteel,steelthatisstrongerandlighterthanhightensilesteel,definedashavingatensilestrength2of780MPaormore.This trimmed approximately 9 kg of weight and providedanadditionalboost to fuelefficiency,whilealsoenhancingcollisionsafety.

• Rollout of the Global Compact SeriesThepowertrainseriesthatpremieredinthenewFitwillbegraduallyexpandedtoupcomingmodelsinHonda'sGlobalCompactSeries,whichincludestheVezelSUVannouncedinJapaninDecember2013,theCitysedanannouncedinIndia,andtheNorthAmericanversionoftheFitproducedatournewautomobileplantinMexico.

VezelSUVintheGlobalCompactSeries

NewCitySedan(India)intheGlobalCompactSeries

FitforNorthAmerica,producedatanewautomobileplantin

Mexico

Breakdown of steel tensile strengths

1TestingoftheFit13G(FWD/CVT)bytheJapan'sMinistryofLand,Infrastructure,TransportandTourism2Tensilestrength:Thestrengthofamaterialtoresistbeingstretchedorpulledapart.


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The latest hybrid models and lightweighting technologies •North America

• Acura RLX sports newly developed three-motor hybrid systemThe 2014 RLX announced in North America is powered by SportHybridSH-AWD,1Honda's first three-motorhybridsystem.A3.5-literdirect-injectedV6engine,pairedwithaseven-speedDCTwithbuilt-inmotor,controls torque to the leftand rightwheels independently,andsimultaneouslydeliverstheaccelerationperformanceofaV8engineandthefueleconomyofanin-linefour-cylinderengine.

• Honda-exclusive metal joining technologiesWhatdothe3DLockSeamusedinthedoorpanelsoftheRLXandfriction-stirwelding(FSW)usedinthefrontsubframeoftheAccordhaveincommon?Bothtakeadvantageofanewweldingtechnologyforjoiningaluminumandsteel,twometalswithvastlydifferentmaterialproperties.Theyalsorepresentanadvancementinbroadeningtheapplicationoflightweightaluminum,whichcontributestolighter,morefuel-efficientvehicles.

2014AcuraRLXSportHybridSH-AWD

FSW

Aluminum

Rotation

Pressure

Aluminuim

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1.SuperHandling-All-WheelDrive


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Expanding application of our lightweight 1.6-liter diesel engine •Europe

• Civic Tourer released in February 2014We'reexpandingtheapplicationofour1.6-literi-DTECdieselengine,releasedinJanuary2013intheCivic5-doorasthefirstEarthDreamsTechnologycomponentintroducedinEurope.TheenginenowpowerstheCivicTourer,anewwagonmodellaunchedinFebruary2014thatwasspecificallydevelopedfortheEuropeanmarket.Thislightest-in-class1compactdieselenginedeliversapowerfulandfundrivingperformance,alongwithaCO2emissionsperformanceofjust99g/km.2

CivicTourer

1.Hondainternaldata(asofSeptember30,2012)2.Hondainternaldata(CivicTourer,asofSeptember2013)

1.6-literi-DTECdieselengine(cut-awaymodel)

Civic5-door


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New eco-cars released in India and China •Asia & Ocea •China

• New City world premiere held in IndiaInJanuary2014,weunveiledinIndiatheall-newCity,asedanmodelinourGlobalCompactSeriesofvehiclesdeveloped for markets worldwide. As an embodiment of our "man maximum, machine minimum" (M/M)1

philosophy, itoffersthemostspacious interiorofanyCity thusfar.2In India, theCity isavailablewitheithera1.5-liter four-cylinder i-DTECdieselengineora1.5-liter four-cylinderSOHCi-VTECgasolineengine,bothofwhichdeliverhighfuelefficiencyandpoweroutput.TheCitywillberolledoutinagrowingnumberofmarketsworldwide.deliversapowerfulandfundrivingperformance,alongwithaCO2emissionsperformanceof just99g/km.3

All-newCity,asedanmodelinourGlobalCompactSeriesofvehiclesdevelopedformarketsworldwide

1.AbasicHondadesignphilosophythatseekstomaximizespaceandcomfortforpeopleandminimizespaceoccupiedbytheproductanditscomponents2.Hondainternaldata

TheAccordhassold1.5millionunitsinChinasince1999.ThenewmodelfeaturesanexteriortailoredtotheChinesemarket

• Earth Dreams Technology debuts in ChinaInapressannouncementinJune2013,weexpressedourcommitmenttoproactivelyintroducingenvironmental,safety,andcomforttechnologiestotheChinesemarkettoprovideourcustomerstherewithgreaterfun,satisfaction,andconvenienceinlinewithourfoundingbeliefthat"technologyisforpeople."Soonafter,inSeptember2013,weunveiledthenewAccord,thefirstmodelinChinatofeatureEarthDreamsTechnology.Weplantocontinueexpanding these innovativepowertrains tonewmodels inChina toachieveevenhigher levelsof fun-to-driveperformanceandtobethefirstautomakertosatisfyChina'sstrictfueleconomyregulations.


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New VTEC Turbo line of turbocharged direct-injection engines •Japan

• Class-leading power and environmental performanceHondahasdevelopedVTECTurbo,anewseriesofdirect-injectiongasolineturboenginesinourEarthDreamsTechnology1series.Theseengines,adaptedforcompactandmedium-sizedcars,takeadvantageofourproprietaryVTECsystemandtheincreasedoutputprovidedbydirect-injectionandaturbochargeralongwithhighlyfluidizedcombustiontoallowforreducedenginedisplacement.Rigorousmeasuresalsoprovideclass-leadingpowerandenvironmentalperformance.Sizedinthreeclasses-2.0,1.5,and1.0liters-theengineswillbeincreasinglydeployedworldwide,witheachengineselectedtomatchthevehicleitpowersaswellaslocalmarketneeds.

ThisenginemakesthemostofourproprietaryVTECsystem,ahigh-outputturbocharger,directinjection,andahighperformancecoolingsystemtorealizehighpoweroutputandhighresponsiveness.Itdeliversamaximumpoweroutputofmorethan205kWandahighenvironmentalperformancecompliantwithEURO6,EuropeanemissionregulationsthatwillcomeintoforceinSeptember2014.

2.0-literfour-cylinderdirectinjectiongasolineturboengine

Thisnext-generationcompactenginefeaturesanewlydesignedframeworkandVTECvariablevalvetimingsystemwithradicallyreducedfriction,combinedwithdirect-injectiontechnologyandahigh-responseturbochargerwithalowmomentofinertia.Thesetechnologiesofferasuperiorcombinationoffueleconomyandpoweroutputandtorque,bothofwhichexceedthatofconventional,naturallyaspiratedengines.

1.0-literthree-cylinderdirectinjectiongasolineturboengine

1.5-literfour-cylinderdirectinjectiongasolineturboengine

1.Anext-generationpowertrainseriesthatgreatlyenhancesbothdrivingperformanceandfueleconomy,buildingonadvancementsinenvironmentalperformanceforinternalcombustionengines,transmissionefficiency,andelectromotivetechnologiestopursueajoyofdrivinguniquetoHonda.2.TestingoftheN-WGNG,N-WGNGAPackage,N-WGNCustomG,andN-WGNCustomGAPackage(FWDvehicles)bytheJapan'sMinistryofLand,Infrastructure,TransportandTourism


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N-WGN

Valveguide

Coolant

Sodium

Heatflow

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

• Raising the bar on the "basic" mini-vehicleInNovember2013,wereleasedtheN-WGNandN-WGNCustom,thefourthinstallmentinourpopularNseriesofmini-vehicles.TheN-WGN,developedwiththeaimofsettinganewstandardforthe"basic"mini-vehicle,offersbettercomfort,safety,fueleconomy,design,anddrivingperformancethaneverbefore.AcomfortableinteriorandgreatfeaturessuchasVehicleStabilityAssist(VSA),whichhelpspreventthelossofvehiclecontrol,comestandardonalltypes,whileanewlydevelopedengineandCVTprovidesmooth,stress-freedrivingandahighfueleconomyof29.2km/liter(JC08testcycle).1Theadoptionofalightweightyetrigidbodyanddedicatedsuspensionsystemfacilitatestabledrivingperformanceandquietoperation.

• Twin injection systemForthefirsttimeinamini-vehicle,theN-WGNemploysatwininjectionsystem,asystemthatusestwofuelinjectorspercylinder insteadofone.Thissystemmixes fuelandairmoreevenly, leading to improveddrivability and fueleconomy.

• Sodium-filled exhaust valves help suppress knockingThe N-WGN engine employs sodium-filled exhaust valves—the firsttimeinaHondapassengervehicle.Thesevalvestransportanddissipateheatmoreefficiently thanconventional valves, lowering thesurroundingtemperatureandsuppressingengineknocking.

Previoussystem(2011NBOX)

Injector

Newsystem

Injectors

Twininjectionsystematomizesfuelanddistributestheair-fuelmixturemoreevenly

1.TestingoftheN-WGNG,N-WGNGAPackage,N-WGNCustomG,andN-WGNCustomGAPackage(FWDvehicles)bytheJapan'sMinistryofLand,Infrastructure,TransportandTourism


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Power ProductsMessagefromtheHeadofPowerProductsR&D

'We want to create tools customers will use withaffection for 10, 15 years.'

Building in environmental performance for reduced impactTakao Nishida•DirectorandManagingOfficer,PowerProductsR&DCenter,HondaR&DCo.,Ltd.

FI and efficiency upgrades provided enhancedenvironmental performance and utility in FY2014

Infiscal2014,weequippedatwo-stagesnowblowerinJapanandalargegeneratoroverseaswithFI,1realizingaroughly15%improvementinfuelefficiencyaswellasenhancedutilityforusers.FIisalreadyacommontechnologyinautomobilesandmotorcycles,butcosthasbeenamajorhurdletoitsadoptioninpowerequipment.Oursuccessinsurmountingthishurdleinfiscal2014thushashugesignificanceforfutureproductdevelopment.Inemergingmarkets,weunveiledawaterpumpforagriculturalapplicationsthat,duetoenhancedpumpingefficiency,ismorefuel-efficient.Wealsoreleasedin2014afour-strokebackpackpowersprayer—adeviceforsprayingagriculturalchemicalsthatuserscancarryontheirback-asafuel-efficientalternativetomainstreamtwo-strokemodels,aswellasotherproductsthatcontributetoreducedagriculturalemissionsinemergingcountries.

1.Electronicfuelinjection

Photo:PowerProductsR&DCenter,HondaR&DCo.,Ltd.

Turningtothefuture,we'redevelopingproductsthatoffernewvalue.Theseincludenotonlyextremelyfuel-efficientenginemodels,butalsoproductsthatrunonalternativefuelssuchasalcoholandgas,aswellasthosepoweredbyelectricity.Electricproductsarequiet,emitzeroCO2duringuse,andalsooffermoreprecisecontrol.Aslongaswecanfullyleveragetheconvenientqualitiesofelectricity,theseproductsareaneffectiveoptionforimprovingenvironmentalperformanceanduserfriendlinesssimultaneously.We'realreadyusingelectricityinHondaautomobilesandmotorcycles,butcreatingelectricproductswiththeperformancecustomersseekbutatappealingpriceswillrequireonemorestepforwardininnovation.Weneedtoupgradeourtechnologiesbypursuingallofthequalitiespowerproductsareexpectedtohaveastools-fromcomfortableandefficientcontrolandoperation,toevenhavingthemostconvenientsizeandweight-andthenrefinethemtothepointwherewecanincludetheminproductsatanattractiveprice.Priceisthehardpartaboutelectrificationinparticular,butalsopowerproductsingeneral.That'swhywe'reworkingtorealizeproductsthatnotonlyhavesuperiorenvironmentalperformancebutarealsosurprisinglyeasyandfuntouse.Infiscal2015,weplantogettheballrollingbyreleasingthefirstmodelinourproductelectrificationstrategyindevelopedcountries.We'rebasingthisproductonanexistinggasolineenginemodelsocustomerscanstillfeelathomewiththenewsetup.Inemergingcountries,wewanttocontinuepursuingourcurrentstrategyofdeliveringproductsatmoreaffordableprices.Formostcustomersinemergingcountries,powerproductsareworktools:theyareameansofsecuringalivelihoodandimprovingone'squalityoflife.Assuch,theydon'tneedfancyfeatures.Bypracticingsangen-shugi(aJapanesemanufacturingphilosophythatemphasizesfocusingontheactualplace,source,andfactsofaproblem)inthemarketplaceandreducingproductstotheiressentialfunctions,wehopetodevelopproductsthatareappealingbyeverymeasure,priceincluded.Spreadingthejoyofutilityinthiswaywillbeamajorthemegoingforward.Atthesametime,wehavetoconsciouslybuildinenvironmentalperformanceaccordingtotheuniquecharacteristicsofeachproduct.Noonewillbuyatoolwhoseonlysellingpointisthatit'sgoodfortheenvironment.Weneedtocreatetoolswiththekindofutilitythateveryonedesires,toolsthatpeoplewillusewithaffectionfor10,15years—andtoincludeinthemenvironmentalperformancethat'sstillrelevantafterthose10,15yearshavepassed.AtHonda,that'sourmissionasacompanystrivingtobuildasustainablesociety.


Global


EU7000is

Power ProductsHondadevelopsanextensive lineofpowerproductsand isconstantlyworking to improve theirenvironmentalperformancetoraisethequalityoflifeforeveryone.

EU7000is generator with inverter and electronic fuel injection •Global

• More efficient and more powerfulIn April 2014, we unveiled in the U.S. the EU7000is, Honda's first inverter generator to incorporate fuelinjection (FI) technology. Compared to the model it replaces, the EU7000is runs longer thanks to a 20%improvementinfuelefficiency,whilealsodelivering8%higherpoweroutput.Theuseoffuelinjectioneliminatesthe need for a choke valve, dramatically improving operation at start-up and also enhancing the generator'slong-termstorability.TheadoptionofFIandathree-waycatalyticconverteralsoresultsinexhaustemissionsthatmeettheU.S.EnvironmentalProtectionAgency's(EPA)Phase3standards,themoststringentemissionstandardsforsmallgasolineequipmentintheworld.Fromaportability,quietness,andsizestandpoint,theEU7000ishasalltherightqualitiestomakeitsuitableforuseacrossarangeofscenariosandsettings,includingbackuppowerinemergencies,constructionsites,andcamping.

43.532.521.510.50

2.953.56

3.28

Fuelconsumption(liter/h)

EU7000is EU6500is(previousmodel)

RivalproductA

BF100 and BF80 four-stroke outboard engines •Global

• Higher output in the same lightweight, compact designForEuropeandothermarketsoutsideJapan,wereleasedtheBF100(100 horsepower) and BF80 (80 horsepower), medium-sizedfour-stroke outboard engines combining high fuel efficiencywith advanced power performance. These new models buildon theBF90 andBF70 (90 and 70 horsepower) 1.5-liter straightfour-cylinder engines by offering higher efficiency and poweroutput in the same lightweight, compact design. Incorporatingprogrammedfuelinjection(PGM-FI)1withanO2sensorhasenabledleanburncontrolduringcruising,2resultinginahigherfuelefficiency.The two engines are also compliant with emission regulations invarious countries, including the latest U.S. EPA regulations(fiscal 2010) and California Air Resources Board exhaustemission regulations. They are also compliant with NMEA 2000,the communications standard for marine electronics set by theU.S. National Marine Electronics Association (NMEA), enablingnetworkingwithavarietyofmarineelectronicdevices.Thismeansthat, in addition to providing electronic output on engine speed,runningtime,andotherreal-timeperformancedata,thesemodelsalso deliver an Eco lampsignalwhich, when connected to acompatible display gauge,will illuminate a lamp to indicate leanburning and notify the driver offuel-efficient engine operation.AllHondaoutboardenginemodelswith40ormorehorsepowerand PGM-FI incorporate lean burn control technology thatcombineswithEcolampdisplaycapabilitytofacilitatefuelefficientdriving. Since releasing our first four-stroke outboard engine,theGB30,in1964,wehaveconsistentlydevelopedfour-stokeoutboardengines in thespiritof founderSoichiroHonda'sphilosophy thatnothing that runsonwatershouldcontribute to itspollution.Fiftyyears later, we're introducing cutting edge technology as thepioneerofthefour-strokeoutboardengine.

1.PGM-FIisaregisteredtrademarkofHondaMotorCo.,Ltd.2.Cruisingspeedrangewhenthethrottleiskeptopenataround50to80%.

NMEA2000-compliantgaugeExampleofEcolampillumination

BF100(left)andBF80(right)


Global


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

• World’s first auger assist functionInNovember2013,wereleasedtheHSL2511,thefirstsnowblowerintheworld1toincorporatefuelinjection(FI)technology.Thistwo-stagesnowbloweremploystheHondaSmartAugerSystem,whichhasthreeaugersettings(augerassist,augerlift,andaugerreset)thatmakeheavysnow-throwingworksimpleandeasy.Theworld-first2augerassistfunction3,whichcanbeturnedonandoffwiththeflipofaswitch,makessimpleworkofsnow-clearingjobsthatrequiremoreadvancedtechniques,suchasclearinghighbanksofsnowinastepwisefashion.Themodel'snewfour-strokeV-twinengine,whichincludesaHonda-originalelectronicgovernorforregulatingenginespeedandelectronicfuelinjection(firstintheworld2foragasolineengine-poweredsnowblower),deliversahighfueleconomyandexceptionaleaseofoperationandstarting.

• Simple operation, powerful resultsTheadoptionofaHonda-exclusiveSTRGovernorandpowerfulnewV-twinengineprovideclass-leading2snowclearingperformanceof140tonsperhour.Twooperatingmodesprovidedifferentengineoutputcharacteristicsdependingonthesituation:Standardmodeusespowerfultorquetoachievequickandeasysnowremoval,whileDistancemodeuseshighspeed,highoutputtothrowsnowhigherandfarther-infact,asfaras26meters,thefarthestinthisclass.2TheHSL2511alsoincludesateachingfunction,whichfeaturesaspeedguidemonitortohelptheoperatoradjustthedrivingspeedandobtainthehighestworkefficiencyineachmode.AtHonda,wedevelopsnowblowersbasedonthephilosophythateasier,moreefficientoperationnotonlyreducesstressforusersbutalsoreducesenergyusethroughshorterworktimes,thusshrinkingourimpactontheglobalenvironment.

HSL2511two-stagesnowblower(front) HSL2511two-stagesnowblower(back) HSL2511controlpanel

1.forpetrolenginesnowblower(Hondainternaldata,asofJuly31,2013)2.Hondainternaldata,asofJuly31,20133.J-typeonly


Global


• Pursuing reliability, comfort, and ease of useTheinclusionofFIeliminatestheneedforchokeoperation,providingsmoothstartseveninfrigidtemperaturesandhighfueleconomy.Thisalsomadethecarburetorobsolete,alongwiththeassociatedneedforaltitudecorrectionandafter-usemaintenance.

*Theengineisdesignedtoprovidemuchhighertorquewhentheengineslowsdown,makingoperationeasy.

EnginetorquecomparisonbetweenDistanceandStandardmodes

Enginetorque(Nm)

Decreasedenginespeedfromheavyload

Distancemode

Standardmode

enginespeed(rpm)

1500 2000 2500 3000 3500 4000 4500

181614121086420

1.Approximately15%bettercomparedtothepreviousmodelinthesameclass,despite20cm3largerenginedisplacement2.WhenoperatedinStandardmode

• Environmental performanceAnewGX690HV-twinengine(displacement688cm3)notonlydeliversbetterpracticalfuelefficiency1butalsolessnoise2andlessemissions.

High

Engine

Low

Low High

Electronicgovernor

Conventionalgovernor

Canthrowsnowfasterandfarther

enginespeed 3850rpm


Global


Asia & OceaniaRegional lnitiatives

Honda Environmental Strategy in the Asia & Oceania Region104

Environmental Management Systems in the Asia & Oceania Region 106

Environmental Impact in the Asia & Oceania Region 110

The Seven Domains of Honda Business Activities 114

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

Asia & Oceania


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

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

In the Asia & Oceania Region, Honda conducts production in nine countries. Honda delivered about 15 million products to its customers in the region in FY2014. Consumer demand for mobility in the region is expected to continue to grow.

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

Direction of Future Initiatives in Asia & Oceania

Based on the Honda Environmental Vision, we are working to minimize all environmental impacts, with a particular focus on CO2 emissions and energy consumption. With the aim of reducing CO2 emissions across all product lines and product life cycles, we will continue to implement CO2 reduction and energy efficiency initiatives at all levels of our operations in the Asia & Oceania region.

As part of our effort to realize the Honda Environmental Vision, we have identified environmental impacts from Honda business operations in the region, including from the supply chain. In 2011, we adopted the Honda Green Purchasing Guidelines formulated by Honda Motor Co., Ltd. We are actively applying environmental management methods to our supply chains in the region.

Under our three-year, mid-term business plan, we are gathering CO2 emissions data from our business operations, including production and corporate activities. We have established internal voluntary targets to reduce CO2 emissions. The scope of these targets has been expanded to all Honda operations and its main group companies in the region. By intensifying our efforts, we propose to improve our capability to gather data on water usage, waste and VOC emissions, and to set targets for reduction in the future.

Current Assessment of Environmental Issues in the Asia & Oceania

In the Asia & Oceania Region, Honda works to identify the impact of its business activities and products on the global environment from a life-cycle perspective and organized them within the context of Honda’s global environmental management. Similarly to Honda’s global perspective, Honda Asia & Oceania has recognized climate change and energy issues as top priorities, followed by environmental pollution, waste and resource problems, respectively.

Honda in the Asia & Oceania Region tackles its mission in the region of climate change and energy issues. We have established our internal voluntary CO2 emission reduction targets and carried out multiple initiatives in every domain of our operations.

Many countries in the Asia & Oceania Region have revised and updated their environmental regulations

regarding the release of pollution. For instance, Korea has issued regulation for minimize waste generation

and resource conservation. In Vietnam, the 2013 regulation indicated liabilities of producers, importers and

consumers for collection and disposal of discarded products in Vietnam’s territory, this regulation will be

fully implemented in 2018 by covering all kinds of automobile and motorcycle.

In response to local regulations in environmental pollution that became more stringent, Honda Asia & Oceania have organized and complied all of the environmental regulations in certain countries (see Environmental Compliance and Pollution Prevention, page 108).

Honda Environmental Strategy in the Asia & Oceania Region

Asia & Oceania

Asia & Oceania Regional lnitiatives

Honda's assessment of environmental issues from a global perspective

Stak

ehol

der c

once

rn

Impact on Honda's business activities

Biodiversity

Noise/Vibration

Substances ofconcern Resource issues

Air, water, and soilpollution

Climate change,energy issues


Environmental Management Systems In Asia And Oceania Region

Asia & Oceania


Environmental Management Systems in Asia & Oceania Region

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

• Environmental Management Promotion System

• Asia & Oceania Environmental Committee

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

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

• A&O EC Organization Chart

Organizational Structure

Asia & OceaniaEnvironmental

Committee

Purchasing Operations Parts Manufacturing Group Companies

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

Automobile, Motorcycle, Power Products businessmanagement operations

Automobile, Motorcycle, Power Products dealersParts distribution warehouses, Service parts shipping

Headquarters, other office facilities,Group companies

R&D Group Companies

Production Operations

Business Operations

Customer Service Operations

Business Support Operations

R&D

Secretariat(Presidential Office-

Environment &Safety Planning)


• Environmental Compliance and Pollution Prevention

• Compliance with laws and regulations

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

• Emergency protocols

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

• Environmental Management at Honda facilities

- ISO 14001 Certification

Honda facilities were implemented with environmental management systems to continuously improve their ability to the environment and mitigate environmental impact. Honda is committed to achieve and maintain third-party ISO 14001 certification for environmental management at Honda manufacturing. 21 facilities of the Honda companies in the Asia & Oceania region acquired ISO 14001 certification. Honda will continue working to acquire ISO 14001 and applying the PDCA cycle in order to reduce the environmental impact in all operations.

- Environmental Audit

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

Environmental Management Systems In Asia And Oceania Region

Asia & Oceania


Environmental Impact in the Asia & Oceania Region

Asia & Oceania


Environmental Impact in Asia & Oceania Region

We strive to make our production facilities in Asia & Oceania the pride of the communities in which they operate. We are also working to conserve energy, minimize waste, and reduce environmental impacts in other areas.

Note:

1. Historical figures have been adjusted to reflect an increase in the number of companies covered and more detailed analysis of the data.

2. Totals with more than three digits have been rounded to three significant digits.

1 Energy consumption 2 Greenhouse gas emissions

Companies covered: All consolidated subsidiaries and affiliated companies of the Honda Group in Asia & Oceania region• Purchased electricity has been converted to joules using the international standard 3.6 GJ/MWh.

• Calculations based mainly on energy consumed by stationary sources.

• A terajoule (TJ) is a unit of energy, “tera” meaning 1012

Companies covered: All consolidated subsidiaries and affiliated companies of the Honda Group in Asia & Oceania region• Asia & Oceania region For information about greenhouse gas calculation methods, see the MOE/ METI (2004) “Greenhouse Gas Emissions Calculation and Reporting Manual, ver.3.4” and WRI/WBCSD (2004) “The Greenhouse Gas Protocol (Revised Edition).”

• CO2 emissions from purchased electricity are calculated for each utility based on the latest emission factors.

• Calculations based mainly on emissions from stationary sources.

0 200 400 600 800

Direct emissions

Indirect emissions

2010

2011

2012

2013

2014

2010

2011

2012

2013

2014

0 200 400 600 800

(FY) (1,000t-CO2 equivalent)

333

314

253

363

317

502

603

521

668

744

2010

2011

2012

2013

2014

Direct energyconsumption

Indirect energyconsumption

2010

2011

2012

2013

2014

4,940

4,741

3,664

5,274

5,297

2,952

3,608

3,058

3,804

4.301

0

0

1,000

1,000

2,000

2,000

3,000

3,000

4,000

4,000

5,000

5,000

6,000

6,000

(FY) (TJ)



Asia & Oceania

3 Water consumption/ Wastewater discharged 4 Waste generated/ land filled

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

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

0 2 4 6 8

2010

2011

2012

2013

2014

(FY) ( 1,000 t )

2

2

4

4

4

Waste landfilled

0 100 200 300 400

2010

2011

2012

2013

2014

(FY) ( 1,000 t )

180

199

139

209

226

Total waste generated

Water use

0 2,000 4,000 6,000 8,000 10,000 12,000

(FY) (1,000 m3)

2010

2011

2012

2013

2014

10,848

10.211

6,431

9,577

9.576

Wastewatervolume

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

(FY) (1,000 m3)

2011

2012

2013

2014

7,227

4,577

5,759

5,639



Asia & Oceania

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

Product development Transportation

Sales and Service

Product Recycling (Reduce, Reuse, Recycle)

Administration

Purchasing

Production


Product Development •Automobile

Asia & Oceania

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

New FY2014 Products and Technologies Automobile

• Reformative Fuel Models

The development of a diesel-powered model that adopts Honda’s new "global operation reform" of concurrent development and implementation of locally optimized design drawings to realize the best vehicle specifications with speed, affordability and low CO2 emissions for our customers.

Earth Dreams Technology: Earth Dreams Technology is a next generation set of technological advancements that enhance the engine to greatly improve both driving performance and fuel efficiency, delivering more horsepower and torque while reducing emissions.

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

• 1.5 i-DTEC Earth Dreams Technology engine. • CVT


All-New Honda CityThe all-new Honda City, developed as a global sedan, embodies the best of Honda’s technologies to deliver advanced sporty design, best-in-class comfort and best-in-class fuel efficiency that exceeds customer’s expectations. The City is now available with both diesel- and gasoline-fueled engines. The new City’s gasoline engine is also compatible with E85 fuel for the Thailand market.

• Environmental Performance

Fuel Economy : The new Honda City is equipped with a 1.5-liter i-DTEC diesel engine from the Earth Dreams Technology series and is the most fuel-efficient car in India with industry best fuel-efficiency of 26 km/liter.

The gasoline variant of the City is powered by an improved 1.5L i-VTEC engine that delivers top class fuel efficiency of 18 km/liter.

Driving Assist System for Eco-driving : The new City features the ECO ASSISTTM System, enhancing the driver’s ability to maintain a fuel-efficient driving style.

• ECO Coaching

• ECON Mode

• Real Time Fuel Consumption Meter

Exhaust Emissions :

The all-new Honda City meets stringent Bharat Stage 4 standards in India

and Euro 4 emissions standards in Thailand.

• ECON Mode

• Real Time Fuel Consumption Meter• ECO Coaching


Asia & Oceania



Asia & Oceania

• Cabin Room

• ECO indicator

Brio AmazeThe Brio Amaze diesel is offered as a perfect package for current customer preferences and embodies the best of Honda technologies to deliver outstanding performance with unparalleled fuel efficiency in a spacious, comfortable and attractive form.


Fuel Economy : The Brio Amaze is powered by a 1.5-liter, 4-cylinder, DOHC i-DTEC diesel engine that has been developed exclusively for India, considering India driving conditions, and is based on Honda's latest Earth Dreams Technology, realizing both excellent driving performance and offering the highest vehicle fuel efficiency in the country with a certified fuel economy rating of 25.8 km/liter, based on test data.

The gasoline variant of the Amaze is powered with 1.2-liter, 4-cylinder, SOHC i-VTEC gasoline engine, delivering impressive fuel economy of 18 km/liter for models equipped with a manual transmission, and 15.5 km/liter for models equipped with an automatic transmission, based on test data.

Driving Assist System for Eco-driving : Featuring an ECO indicator to support a more fuel-efficient driving style.

• ECO Indicator

Exhaust Emissions : The Brio Amaze meets stringent Bharat Stage 4 standard in India and Euro 4 emissions standards in Thailand.



Asia & Oceania

LMPV Models - MobilioThe Honda Mobilio has been designed based on a study of the automotive market in the ASEAN region, which is growing rapidly, especially in Indonesia, the country with the largest population in the ASEAN region. Honda developed this car based on a study of the needs and expectations of customers for the use of a car in their daily activities.

To meet with customer needs, in January 2014, Honda launched “Mobilio,” the first low multi-purpose vehicle (LMPV) model for Honda in Indonesia, and the first model from the new Honda factory in Karawang. The Mobilio brings high quality standards, precisely designed dimensions, along with a dynamic shape, the highest engine power in its class, and high fuel efficiency.


Power Train : The Honda Mobilio equipped with a 1.5-liter 4-cylinder 16-valve SOHC i-VTEC engine generates a maximum 118 horsepower and is equipped with a standard five-speed manual transmission or a CVT.

Driving Assist System for Eco-driving :

Featuring an ECO indicator to support a more fuel-efficient driving style.

• ECO Indicator

Exhaust Emissions :

The Honda Mobilio meets stringent Euro 4 emissions standards.

• ECO indicator• Cabin room


Product Development •Motorcycle

Asia & Oceania

• LED lights

• eSP enhanced Smart Power

• PCX 125/150

Motorcycle

• All new PCX 125/150The Honda PCX comes with advanced technologies and a luxurious appearance. For the PCX, Honda wanted to introduce a scooter that attains the best balance of all functions, including strong performance, environmental friendliness, user friendliness, high quality and fashionable design.

The PCX is a breakthrough model with a strong engine, which is the core element for marketability. Its new-generation eSP – enhance Smart Power -- engine is 125cc/153cc liquid-cooled single-cylinder four-stroke, made more fuel efficient by additional friction-reduction measures applied to the engine’s internal components. The new engine is designed to be compact in size with quiet performance and higher environment efficiency with the lowest fuel consumption

With changes in design and the implementation of eSP, the new PCX 125 is 5%

more fuel efficient than the previous model.


LED lights : Total Performance LED lights: The PCX is the first Honda

scooter equipped with all LED lights. The use of LED lights helps to reduce

power consumption from lights by about 60% compared with the previous model,

which, when combined with a reduced-friction ACG starter, helps to enhance

fuel efficiency.

Idling Stop system:

An idling stop system has been developed to reduce exhaust emissions and fuel

consumption while the scooter is stopped, such as at a traffic signal or in a traffic jam. When the scooter is stopped for longer than three seconds, the system will automatically stop the engine. When the rider activates the throttle, the engine is instantly restarted.

Improving Fuel Efficiency and Reducing Exhaust Emissions:

For the fuel supply system, which must accommodate an environmentally responsible global standard engine, PGM-FI (Programmed Fuel Injection system) is incorporated. PGM-FI optimizes combustion under a wide range of riding conditions, enabling the PCX to meet Euro III emissions standards while delivering powerful riding performance. It provides maximum fuel economy of 50.2 km/liter in ECE R40 mode and can run on E20 fuel.


• Activa 125The all new Activa 125, Honda’s first 125cc automatic scooter for India, is powered by a newly developed 125cc air-cooled, 4-stroke engine that promises the most compelling combination of power, fuel economy, comfort and advanced features in the segment. The all new Activa 125 is specially developed to retain both existing automatic scooter customers who want to upgrade their ride, and to add new customers who now want much more from Honda.


Improving Fuel Efficiency and Reducing Exhaust Emissions : The Activa 125 comes equipped with patented Honda Eco Technology ( ), which successfully increases mileage without compromising performance. HET works by improving combustion efficiency, significantly reducing friction and optimizing engine transmission efficiency to deliver best-in-class fuel economy*. (*Certified I-CAT fuel economy of 59 km/liter)


Asia & Oceania

• Dream neoThe Honda Dream neo, the much-anticipated second ‘Dream Series mass motorcycle’ is Honda’s most affordable and most fuel-efficient motorcycle ever in India (and was developed especially for Indian customers). The Dream neo, features a utility-oriented and mature design, equipped with the superior refined 110cc, air-cooled, 4-stroke SI Honda engine that generates high power and torque while incorporating best-in-class performance and revolutionary Honda Eco Technology, Dream neo guarantees a dream ride every time.


Improving Fuel Efficiency and Reducing Exhaust Emissions : The new Honda Dream Neo is the first motorcycle based on revolutionary Honda Eco Technology (HET). HET combines improved piston and combustion chamber design with the help of a squish band, which increases the compression ratio and fuel-efficiency of the Dream Neo. With Intelligent Ignition Control that responds to load conditions, ideal combustion is attained, leading to improved power output and efficiency. Delivering an astonishing fuel efficiency of 74km/liter, the Dream neo is the most fuel-efficient motorcycle in India.

• Dream neo • Activa 125



Asia & Oceania

• Vario 110The new Honda Vario 110 FI comes with PGM- FI technology. This model is newly designed and pioneers the application of advanced features, including the Answer Back System and Dual LED Headlight keen eyes, which combine with strengthened and elegant body lines to lend the model a modern character. This change brings new trends in the design of the motor scooter – a model that is elegant, trendy, and fashionable.


LED lights : The Dual Keen Eyes lights of the Vario 110 FI are now equipped with LEDs capable of providing a better light intensity, longer life and more efficient power utilization – more than 80% more efficient compared to the use of conventional lighting.

Improving Fuel Efficiency and Reducing Exhaust Emissions : The new Honda Vario 110 FI is equipped with a new 110cc, air-cooled engine with PGM- FI that provides more fuel-efficient and environmentally responsible performance, meeting EURO III emissions standards. The resulting fuel economy is 26% higher than previous models, delivering a maximum fuel economy of 56.3 km/liter in ECE R40 mode.

• Vario 110


　

Product Development •Power products

Asia & Oceania

Power products

• All new GP 4-stroke general purpose enginesHonda developed two new models of GP 4-stroke general-purpose engines (GP160, GP200) featuring affordable and reliable performance that ensures compatibility with a wide range of installations. While delivering these characteristics, the GP engines were developed for installation on products such as water pumps and generators, targeting the light-use market in emerging countries.


Improving Fuel Efficiency and Reducing Exhaust Emissions : The new GP160/200 was developed based on GX engine architecture (air-cooled, 4-stroke gasoline engine), which delivers attractive low fuel consumption of 1.4L/h (GP160) and 1.7L/h (GP200) at continuous rated power. The new GP engine utilizes a redesigned air cleaner and fuel tank, resulting in low air emissions to comply with China’s exhaust gas emission regulations (Second degree)

• Revolutionized the 2-inch and 3-inch water pumpsIn order to meet customers’ needs for high-performance and low-fuel consumption products, Honda introduced the new WB20/30 water pump, constructed using an impeller that was developed based on the CFD-Computational Fluid Dynamics analysis of water flow within pumps. Powerful performance was realized by the combination with Honda engine technology. Also, low fuel consumption was realized by optimizing the balance of the water pump’s head lift and discharge capacity.


Improving Fuel Efficiency and Reducing Exhaust Emissions : The new WB20/30XT3 are powered by a forced air-cooled, 4-stroke engine (OHV) with an optimized impeller to realize high pump performance. The same pump performance as the previous model is produced at a lower engine speed, and fuel efficiency has been improved compared to the preceding model. As a result, maximum fuel efficiency is improved by 11% for the WB20XT3 and 10% for the WB30XT3.

Optimized impeller: The visible water flow inside the newWB20/30T3 becomes visible with the use of CFD analysis. Through this optimized design, water flow inside the pump is more uniform and energy losses are minimized.

• GP 4-stroke• WB20XT


PurchasingStriving to reduce environmental impacts across its product life cycles, Honda is initially working to strengthen environmentally responsible purchasing practices through the Honda Green Purchasing Guidelines. The Guidelines were formulated with a focus on energy use, substances of concern, packaging waste, and CO2 emissions. Honda encourages suppliers to adopt measures to reduce the environmental impact of Honda products.

• Asia & Oceania Purchasing Roadmap

As an automobile, motorcycle & power products manufacturing company, Honda takes into account environmental responsibility, not only CO2 emissions from Honda factories but also emissions throughout the product life cycle. To share our environmental direction with suppliers, we have issued the Honda New Green Purchasing Guidelines, which add an E (for Environment) to QCDD (Quality, Cost, Delivery and Development). Moreover, we have created a global purchasing vision to realize global corporate activities that promote Honda’s co-existence with global communities for continued QCDDE beyond customer expectations. This vision was made by Honda Motor and deployed to all regions, including 17 production bases and eight countries in Asia & Oceania.

Move into practices, we started to work with suppliers to understand their CO2 emissions since FY2008. From FY2014 onward, we will take on a new challenge to step-up the activity for CO2 emissions reduction control. So FY2014 is a very important year with respect to both our suppliers and Honda associates to be prepared for the next challenge.

• Asia & Oceania CO2 emissions meeting: Honda Purchasing 30 members from 8 countries.

• Review activities in 11th Mid-term business planFrom FY2012 to FY2014 is the 11th Mid-term of Honda’s business planning process. For the purchasing area, we have two main activities: CO2 emissions data collection and preparation for reduction control. To share Honda’s global direction and unify the understanding of all Honda Purchasing members, Asian Honda Motor Co., Ltd. (ASH) has arranged an Asia & Oceania Purchasing CO2 meeting with 30 members from 17 product bases in 8 countries. In the CO2 data collection area, we are focusing on data accuracy improvement. Purchasing members from all production bases worked with our selected suppliers to increase understanding and awareness of how to input information into the data collection system. Outstanding activities included small classroom explanation by Thai Honda (THM) to increase suppliers’ understanding, and also a Technical Awareness Orientation & accuracy check sheet by Honda Philippines (HPI) to increase supplier awareness of the CO2

emissions survey sheet. In the area of preparation for CO2 emissions reduction control, since FY2013 we have undertaken a supplier initiative-CO2 caravan in Thailand and in Vietnam. For FY2014, we have expanded this activity to India, Pakistan, Taiwan, Philippines, Indonesia, and Malaysia. At Honda, we believe in The Three Realities Principle – and the first step is “going to the actual place.” In this spirit, we encourage Honda technical experts and suppliers to exchange their ideas. We also encourage suppliers to adopt measures to reduce their environmental impact.

• Classroom Explanation to improve supplier’s understanding of CO2 activity

Purchasing

Asia & Oceania


• Moving forward to 12th Mid-term business planFrom FY2015 onward, we will step up the activity to achieve CO2 emissions reduction control. We have announced our CO2 emissions reduction target, which is to reduce emissions by more than 1% each year. To share this target with our suppliers and express our commitment to environmental activity, all production bases have arranged green supplier meetings to foster understanding between Honda and suppliers. In addition to conveying our expectations, we have prepared and introduced a system to control the reduction target (plan vs. actual), and also to improve the efficiency and accuracy of the data collection method. Furthermore, continuing from the 11th Mid-term, we will be promoting the CO2 caravan with our suppliers to share reduction measures and exchange CO2 reduction know-how with suppliers. Of course, outstanding activities will be horizontally deployed and shared throughout the eight countries. Finally, from FY2016 onward, we are considering an “Environment Award” to acknowledge top-performing suppliers for their cooperation in the environmental area.

• CO2 Caravan activity to visit supplier site

Asia & Oceania

Purchasing

Asia & Oceania


Note:1- Companies covered: Automobile Manufacturing Group companies in Asia & Oceania Region – HATC, HPM, HMSB, HCPI, HVN, HTW, HCIL, HACPL, HPPM, HPMC, MHAP, APM2- Companies covered: Motorcycle Manufacturing Group companies in Asia & Oceania Region – AHL, HICOM, HMSI, HVN, TH, VAP, AHJ, BHS, HPI3- Companies covered: Power Products manufacturing Group companies in Asia & Oceania Region – HSPP and TH (Note1: FY2012 and FY2013 data of water usage and waste generation at TH reporting in Motorcycle Production) (Note2: FY2014 data of water usage and waste generation at TH reporting in Power Products Production)*- 2012 data affected by Thai floods

Production

Asia & Oceania

Production

Asia & Oceania

Motorcycle Production2

Energy Consumption CO2 emissions Waste Generation

5,000,000

4,000,000

3,000,000

2,000,000

1,000,000

02012 2013 2014 (FY)

GJTotal consumption

3,466,436 4,628,682 4,396,529

2012 2013 2014 (FY)

500,000

400,000

300,000

200,000

100,000

0

Ton- CO2

389,265 412,503 388,653

Total emissions

2012 2013 2014 (FY)

5,000,000

4,000,000

3,000,000

2,000,000

1,000,000

0

m3

3,345,000 4,304,600 4,195,435

Total usage

2012 2013 2014 (FY)

80,000

60,000

40,000

20,000

0

Ton56,520 64,538 71,561

Total generation

Power Products Production3

Energy Consumption CO2 emissions Waste Generation

2012 2013 2014 (FY)

Ton- CO2

11,640 11,857

9,077

Total emissions12,000

10,000

8,000

6,000

4,000

2,000

0

Ton

1,193 1,170 3,514

Total generation

2012 2013 2014 (FY)

4,000

3,000

2,000

1,000

0

m3

90,000 106,487 179,748

Total usage

2012 2013 2014 (FY)

200,000

150,000

100,000

50,000

02012 2013 2014 (FY)

GJ

200,000

150,000

100,000

50,000

0

121,471 112,884 109,121

Total consumption

Automobile Production1

Energy Consumption CO2 emissions Waste Generation Water Usage

2012 2013 2014 (FY)

GJ 1,276,854 2,209,873 2,423,365

Total consumption

3,000,000

2,000,000

1,000,000

02012 2013 2014 (FY)

Ton- CO2

153,864 272,974 297,554

Total emissions300,000

250,000

200,000

150,000

100,000

50,000

0

Ton

77,285 75,420 90,085

Total generation

2012 2013 2014 (FY)

100,000

80,000

60,000

40,000

20,000

0

m3

1,440,513 3,207,514 3,437,172

Total usage

2012 2013 2014 (FY)

4,000,000

3,000,000

2,000,000

1,000,000

0

Performance Data in Production Process

Water Usage

Water Usage


Bypass Air Compressor 0.89MPA Line1-2

Honda Automobiles (Thailand) Co., Ltd. (HATC) Calculated that about 90% of the energy consumed in its facility was for the air compressor system. There were two levels of pressure: 0.69 MPa and 0.89MPa. Previously, the facility had a bypass system only for 0.69MPa, HATC now installed new bypass system for 0.89 MPa for greater efficiency. This improvement resulted in a CO2 emissions reduction of 835 metric tons per year.

Moreover, HATC modified the PLC program to control the operation (start/stop) of the chiller in its painting process by sequencing each chiller based on actual load, resulting in a CO2 emissions reduction of 77 metric tons per year.

Taiwan - Honda Taiwan Motor (HTW) continued to reduce energy usage by installing inverter and PID control on its pure water supply motor. This change reduced electricity consumption by more than 30%, resulting in an annual CO2 emissions reduction of approximately 15 metric tons. It also reduced water consumption by more than 10%.

HTW additionally optimized boiler efficiency by reducing the nozzle size. HTW reduced boiler oil usage by 11% and cut CO2 emissions by approximately 40 metric tons per year.

Production

Honda produces a wide range of products, including automobiles, engines, automatic transmissions, motorcycles, and power products. Honda is actively committed to minimizing the impact of its manufacturing operations on the global environment, including waste generation, air and water pollutant releases, energy and natural resource consumption, and emissions of greenhouse gasses, primarily CO2.

Energy Conservation Initiatives

Energy Improvement through Technology

India – Honda Motorcycle & Scooter India (Private) Ltd. (HMSI) replaced the fuel from HSD (High Speed Diesel in its four boilers to more efficient liquid natural gas (LNG). CO2 emissions were reduced 22% compared to the previous system.

Honda Siel Power Products Ltd. (HSPP) has taken a step forward to reduce CO2 emissions by controlling the motor operation at PT line pumps and assembly exhaust blower motors using variable frequency drives (VFD), reducing the electric energy consumption of the motors by 33%. Moreover, HSPP installed an automatic control circuit to shut off of a grinding machine if the machine’s motor is not started for more than 10 minutes. HSPP also installed more energy-efficient air guns that reduced air use by as much as 37%.

Honda Cars India Limited (HCIL) installed an insulator cover over injection barrel heaters to reduce heat loss and maintain barrel temperature for production. Through this effort, HCIL was able to reduce power consumption by 63,840kWh per year and achieve a CO2 emissions reduction of 34.86 metric tons per year.

Thailand - Asian Parts Manufacturing Co., Ltd (APM) installed an inverter for the ED motor pump. By installing the inverter, the energy requirements were reduced, resulting in an annual CO2 emissions reduction of 20 metric tons. Moreover, a new chemical was introduced for the pretreatment process. This new material works at lower temperatures and requires only one boiler instead of two, resulting in a CO2 emissions reduction of 19.2 metric tons per year.

Thai Honda (TH) installed an air-demand control system for air compressors. This system improves the energy efficiency of air supply by adjusting air pressure based on the requirement of each destination. TH reduced energy consumption by more than 1,025 MWh and reduced CO2 emissions by approximately 659 metric tons per year.

• Bypass Air Compressor 0.89MPA Line1-2 at HATC

Special topics

Asia & Oceania

Production

Asia & Oceania


PT Astra Honda Motor, Inc. (AHJ) installed an inverter for the exhaust system in its wheel casting process. By installing an inverter, the efficiency of airflow adjustments was improved and electricity consumption was reduced more than 30% annually.

High-efficient Lighting Technology

India - Honda Motorcycle & Scooter India (Private) Ltd. (HMSI) replaced conventional lights with more efficient LED technology in its Scooter and Motorcycle plant. With this initiative, HMSI is reducing reduce CO2 emissions by 8 metric tons per year

Honda Cars India Limited (HCIL) replaced 175 units of 250-watt conventional sodium vapor streetlights with 90-watt LED lamps. Through this effort, HCIL reduced energy consumption by more than 60,000 kWh and reduced CO2 emissions by 35 metric tons per year. Furthermore, LED lighting is considered to be environment responsible, as it does not contain harmful mercury.

Thailand - Asian Parts Manufacturing Co., Ltd (APM) replaced 45 units of high bay 400-watt metal-halide lights with 150-watt LED lamps, and also replaced 450 units of 36-watt fluorescent lights with 18-watt LEDs. Through this implementation, APM has reduced energy consumption by 83,268 kWh per year and achieved an annual CO2 reduction of 54 metric tons.

Vietnam – Honda Vietnam Co., Ltd. (HVN) implemented an insulated cylinder heater system for plastic injection molding machines to prevent thermal dispersion. Preventing heat loss significantly reduced electric consumption, resulting in a CO2 emissions reduction of 76 metric tons per year.

Moreover, HVN eliminated unnecessary energy use by installing sensors in its inspection process area to automatically switch lights and fans on/off. Through this effort, HVN reduced the working time of lights and fans by 300 minutes per day.

Vietnam Auto parts Co., Ltd. (VAP) implemented several initiatives for conserving energy, including the installation of inverters for its vacuum fan. By installing inverters, the required energy of the vacuum fan was reduced 20%, resulting in a CO2 emissions reduction of 133 metric tons per year.

Malaysia - Honda Malaysia Sdn. Bhd. (HMSB) introduced several CO2 emissions-reduction initiatives into their new plant, including the of installation of transparent wall/roof material to allow natural light to enter the main building, reducing the use of fluorescent lamps and resulting energy consumption.

Indonesia – P.T. Honda Precision Parts Manufacturing (HPPM) replaced the mechanical coupling on a water pump with “Transfluid Coupling”. This system uses a hydrodynamic transmission (no mechanical connection). Through this effort, HPPM reduces electric consumption and resulting CO2 emissions by approximately 7% per year.

• Automatically sensor ON-OFF light for VQ line at HVN

• LED light at APM

Asia & Oceania

Production

Asia & Oceania


Honda Automobiles (Thailand) Co., Ltd. (HATC) planned to start replacing 1,900 units of traditional high bay lights in production process with LED lamps. Currently, HATC has replaced 200 units as trial step, after which they will look to expand the initiative to all high bay lights.

Malaysia - Honda Malaysia Sdn. Bhd. (HMSB) installed 1,073 units of high-efficiency LED lamps in the office area and canteen, optimizing power consumption and prolonging the useful life of the lamps. Electricity consumption and CO2 emissions were reduced by more than 50% annually compared to the use of fluorescent lamps.

Philippines – Honda Philippines Inc. replaced 36-watt fluorescent lamps with 22-watt LED lamps, reducing CO2 emissions by 35%.

Energy Improvement through Management

Pakistan - Atlas Honda Ltd. (AHL) improved efficiency of generator operation by eliminating operation of one standby generator and by establishing a power link between two power houses. These changes reduced electricity consumption, eliminating 164 metric tons of CO2 per year.

Additionally, AHL conducted a burner tune-up to maximize the combustion efficiency by using a flue gas analyzer. Through this implementation, AHL reduced energy consumption and cut CO2 emissions by 390 metric tons per year.

Vietnam – Honda Vietnam Co., Ltd. (HVN) has checked the condition of all equipment in its paint department. Through this investigation, HVN found it could remove one unnecessary water pump, resulting in a reduction of energy consumption and CO2 emissions.

Malaysia – Boon Siew Honda SDN BHD. (BSH) optimized its HVAC system by running just one chiller instead of two. Through this effort, BSH managed to reduce CO2 emissions by as much as 38%. Also, during cleaning, BSH modified the PLC system for its air supply unit to run on 76kW instead of 120kW, which further reduced CO2 emissions by 36%.

Philippines – Honda Philippines Inc. (HPI) implemented several energy-conservation activities in order to reduce its environmental impact. More than 180 tons of CO2 emissions were avoided by reducing compressed air pressure from 6.5 bar to 5.5 bar and installing a timer for the air conditioner in the canteen.

Alternative Energy Sources

Pakistan - Honda Atlas Cars (Pakistan) Ltd. (HACPL) installed 27 solar panels on the roof of its production building at the plant in Manga Mandi, Lahore. A total of 6.75 kilowatts of renewable power is now been supplied daily to offices and conference rooms. The successful implementation will help HACPL extend the use of solar power to other production offices and facilities in the coming years.

• Solar panels at HACPL

• Reducing compressed air pressure at HPI

Malaysia - Honda Malaysia Sdn. Bhd. (HMSB) replaced 89 units of 150-watt sodium vapor streetlights with solar-powered lamps that do not produce any greenhouse gases. Through this initiative, HMSB reduced energy consumption by more than 58,000 kWh and reduced CO2 emissions by 39 metric tons per year.

Philippines - Honda Philippines Inc. (HPI) installed 11 units of 76-watt windmill- and solar-powered perimeter lights, requiring zero energy consumption. Moreover, HPI utilized circulation water from its sludge pit system to generate electricity by installing a two-kilowatt micro hydro power plant. Electricity generated from this system will supply power for the lighting system at the wastewater treatment plant.

Asia & Oceania

Production

Asia & Oceania


Water Consumption

Thailand - Honda Automobiles (Thailand) Co., Ltd. (HATC) implemented several initiatives for reducing water consumption, including the installation of a “Recycle Water Plant” to reduce water use by changing the input substance producing RO water from “raw water” to “treated water” from wastewater treatment. RO water from the recycle water plant is supplied for cooling down machine systems. Through this improvement, daily raw water usage was reduced by 5%. Moreover, HATC also installed a “Booster Pump” to reduce wastewater discharge by supplying treated water from the wastewater treatment plant for watering plants in the factory’s green area. HATC has reduced wastewater discharges by 50%.

Pakistan - Atlas Honda Ltd. (AHL) managed rainwater by installing piping that is routed to a ground water recharge well. This implementation replenishes rain water to ground water reservoirs at a rate of about 10,000m3 per year.

India – Honda Motorcycle & Scooter India (Private) Ltd. (HMSI) continuously strives to conserve resources. A water filtration system introduced at the fuel tank leak-testing machine in the weld shop recycles water and reduces fresh water consumption. As a result, fresh water use was reduced from 180 KL to 60KL per month. 120 KL/ month of water was saved.

HMSI- underground rainwater storage tank

Honda Motorcycle & Scooter India Pvt. Ltd. (HMSI) installed an underground rainwater storage tank at its new plant. As one of Honda’s Green Factory initiatives, the new system collects rainwater that falls on the rooftop and stores it in an underground storage tank to utilize it, after quality control, as industrial water. Excessive ground water consumption caused by rapid industrial growth is one of the most serious environmental issues in India. The underground rainwater storage tank is expected to avoid about 20,000 tons of groundwater use per year.

Waste Reduction

Malaysia - HICOM-Honda Manufacturing Malaysia Sdn. Bhd. (HICOM) implemented sludge cake moisture reduction by oven drying. The quantity of sludge was reduced by more than 50%.

India - Honda Motorcycle & Scooter India (Private) Ltd. (HMSI) established a paint thinner recovery system by installing a solvent extraction machine. Waste thinner generated by the paint shop is sent to a recovery facility and is later used in a washing process. This implementation reduced the generation of waste thinner by approximately 0.04 liters per vehicle.

Moreover, HMSI continuously strives to reduce the amount of landfill waste and has introduced a bio-composting facility to treat sewage sludge generated by the sewage treatment plant on the factory premises. The compost from this initiative is used as an in-house organic fertilizer for plants within the factory and for other activities, such as tree planting. HMSI has reduced landfill waste by 5.4 tons per month through this implementation.

Reducing the use of chemicals

Indonesia - PT Astra Honda Motor, Inc. (AHJ) optimized its primer coating (CED) process and material consumption to reduce coating thickness by optimizing the voltage setting point, which is less than the previous setting point. This activity reduced electricity consumption and cut primer-coat paint consumption by 68.2 tons annually.

P.T. Honda Prospect Motor (HPM) installed a regenerative thermal oxidizer (RTO) for its exhaust air emission treatment. This system used a bed of ceramic material to absorb heat from exhaust gas. An RTO burns waste gases without using much fuel. The operating temperature is about the same as a normal thermal oxidizer (around 1,600oF) but the hot flue gas passes through a heat exchange module before reaching the stack. In this way, if one pound of waste gas enters at 70oF, one pound of flue gas exits at 200oF. With other thermal oxidizer designs, the pound of flue gas may exit at 500oF or 1,600oF and more heat is lost through the stack. Waste gas incinerators react with oxygen and waste hydrocarbons at high temperature, producing a clean flue gas.

• Inside• Outside • Quality control

• Water storage tank at HMSI

Special topic

• Regenerative thermal oxidizer system at HPM

Asia & Oceania

Production

Asia & Oceania


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

• Improvement of Transportation EfficiencyInitiatives in the transportation of partsSince the inception of its “milk run” program in FY2012, P.T. Honda Prospect Motor (HPM) has worked to improve the efficiency of supplier transportation. About 72 suppliers deliver parts by truck to the HPM warehouse on a daily basis. Shipments vary in size and some trucks do not deliver with optimal load capacity. Inefficiency in the delivery of supplier parts results in higher fuel consumption and increased CO2 emissions. Through the “milk run” program, HPM is working to maximize the volume of parts in each transport and to avoid an unstable condition in delivery performance (early or delayed delivery). HPM aims to fully implement this program with its all of its suppliers by 2016.

• Newly designed carton boxes for parts containers (Before-After)

• Before

• After

Initiatives in the transportation of service partsHonda in Asia & Oceania strives to improve its operational efficiency and achieve CO2 emissions reduction in the distribution of service parts to the Honda dealer network. Multiple initiatives to improve shipping logistics efficiency were carried out in FY2014, including maximizing the volume of loaded parts on trucks and reducing truck travel (distance traveled/volume of shipments) by monitoring activity and lead-time control. In addition to this efficiency up initiative, delivery routes were also reengineered. In addition, Honda in Asia & Oceania has amended the supplier transportation network. Direct shipments from suppliers to dealers were undertaken to reduce transportation distances and warehouse workloads. For export shipments, direct vanning from the factory is effective for minimizing transportation distance as well. Honda in Asia & Oceania introduced newly designed carton boxes for parts containers, purposely to support the reduction of truck travel. This new packaging size is more than 75% smaller than the previous design. This initiative resulted in less packaging per part, making transportation more efficient and making more efficient use of warehouse storage space.

• Improved load ratio (Before-After)

• Before • After

Put part into carton box (W99277,760 x 200 x 130)

Put part into carton box (New Design (FOL013), 710 x 80 x 80)

Packing 1 pc/box

Packing 1 pc/box

Reduce m3/box = 53%

Transportation

Asia & Oceania

• Current • Milk Run

Milk Run Delivery

HPM

Supptier A

Supptier A

Supptier BSupptier B

Supptier C

Supptier C

HPM


Initiatives in Service Parts WarehousesIn order to conserve energy and reduce CO2 emissions, in FY 2014 the Asian Parts Center (APC) introduced a variety of energy-saving initiatives to its warehouse, including a more energy-efficient lighting system, replacing 500 units of 45-watt fluorescent lamps with 18-watt LED lamps in office building APC 1, and replacing 20 units of 150-watt high pressure sodium lamps (in flood lights) with 45-watt compact fluorescent lamps at its W/H building. Additionally, APC installed digital thermostats to control the air compressor function for greater energy efficiency.

Honda Taiwan Co., Ltd. (HTW) introduced several energy-reduction activities to its warehouse, including the installation of a curtain-and-board door to reduce the loss of cool air from its office room, and the adjustment of the lighting system operating period in its storage area. HTW also inspected water pipes to ensure that the dispensable pipes were turned off to avoid water leaks.

• Digital thermostats• APC office LED lamp

Transportation

Asia & Oceania


• Improvement of Transportation EfficiencyPackaging ReductionThe Honda Asia & Oceania Region increased the use of returnable containers for shipments of service parts within the region. Returnable containers were deployed with the aim of reducing one-way packaging and wrapping materials. Furthermore, using returnable containers can provide for improved parts handling as well as space utilization, resulting in better protection of the product and improved product quality. Returnable containers and bags were also applied to the delivery of parts to domestic dealers in order to minimize waste at dealer sites.

Special topics

• Transportation modal shift“The first Honda company worldwide to switch to a rail-based delivery for optimal logistics”

In FY2014, Honda Malaysia switched to a rail-based transport system for delivery of parts to Thailand, using Thailand National Railways (SRT), and within Malaysia, using Keretapi Tanah Melayu (KTM). Honda Malaysia’s production volume is anticipated to double by 2016. Currently, 25 to 30 containers are being transported from Thailand to Malaysia on a daily basis. This volume is expected to increase to 120 containers per day, in keeping with Honda Malaysia’s future production plans. In preparation for the increase in future production plans, Honda Malaysia is taking the initiative to reform its transportation logistics support system.

Honda is always on the lookout for ways to become a greener company, not only in the cars that it produces but also in the production of products. Honda Malaysia is pleased to announce that, by changing the mode of transportation from trucks to railway, it was able to reduce CO2 emissions from transportation by 60%. Following research and trials by Honda Malaysia, it was found that using rail, instead of the current mode of truck and ships, provides numerous benefits; it is more cost effective, minimizes logistic risks, avoids waste, and minimizes damage to parts. KTM uses a GPS tracking system, which will allow Honda Malaysia to conduct real-time tracking of its goods during transportation.

Delivery times will also be shortened: goods delivered from Thailand to Malaysia by rail requires 2.5 days, compared to 3 days for transport by truck and 7 days for transport by ship. This modal shift will help increase efficiency and shorten the waiting period for Honda customers, in addition to reducing stock in hand by six days.

Honda Malaysia is committed to continue improving its internal processes in order to advance its mission of providing products of the highest quality at affordable prices for worldwide customer satisfaction. With this initiative, the company hopes to continue providing the joy of ownership to Honda customers in Malaysia.

• Transportation modal shift

Transportation

Asia & Oceania


Sales and Service

Asia & Oceania

Sales and ServiceHonda Asia & Oceania proactively encourages service centers and dealers to implement environmental management systems through Green Dealer initiatives that reduce environmental impact.

Green Dealer program

• Automobile Dealer InitiativesHonda Cars Philippines, Inc. (HCPI) recently recognized Honda Cars Greenhills (HCGH) and Honda Cars Marcos (HCMH) as “Certified Good Green Dealer”. These two new dealerships positively took on the challenge to include environmental initiatives in their sales operations, particularly in the sales of its products, service and parts. Both HCGH and HCMH were able to complete the Step-1* requirements of HCPI’s Green Dealer Program.

*Step 1 activities include waste management, recycling, basic safety, use of personnel protective equipment and compliance to legal requirements

• Honda Cars Marcos Highway• Honda Cars Greenhills

• GREEN DEALER Certification awards ceremony

• Motorcycle Dealer InitiativesHonda Motorcycle & Scooter India (Private) Ltd. (HMSI) continuously strives to promote environmentally responsible practices to its dealers in India. As part of its Green Dealer program, HMSI provided a training course consisting of an introduction to the Green Dealer program, a review of Green Dealer activities, the effectiveness of being a Green Dealer, as well as the process of evaluation and certification. To make the concept more familiar to the dealers, HMSI introduced certain guidelines, which were explained during the Green Dealer awareness training programs. The same guidelines were implemented at dealerships, which mainly included a used oil collection facility, the installation of an effluent treatment plant (ETP) for wastewater treatment, the installation of exhaust fans and blowers to enhance air circulation in working areas, the improvement of compressor and generator areas with proper soundproofing, waste collection and segregation, and the promotion of green dealer activities. After the evaluation, which is conducted twice a year, HMSI presents a Green Dealer certification to the dealer. By the end of 2013-2014, a total of 75 Green Dealer certifications is planned.

Apart from internal activities, dealers in India also promote environmental initiatives at the community level, which included clean up activity and tree planting, in both public and school areas, thereby ensuring that Honda will be a company that society wants to exist.

This “Green Dealer” program is in line with the Global Honda Environmental Initiatives toward helping in the preservation, conservation, and protection of the environment.

• HMSI, Green Dealers training


• Reducing CO2 Emissions and Resource ConsumptionAs part of the Green Dealer program, multiple initiatives were recognized in the reduction of CO2 emissions and resource conservation, including the following:

Honda Jakarta Center, a Honda car dealer in Indonesia, reduced water use in its car washing operations by introducing a waste-water recycling system. Previously Honda Jakarta Center used ground water, which has a major impact on land subsidence that can harm the environment. Currently, Honda Jakarta Center implements a recycled water program, in which the water can be used for daily purposes such as car washing and other activities. Through this initiative, waste-water treatment is considered to be one of the efforts to address environmental concerns. Through these and other efforts, Honda is endeavoring to conserve the environment and strive for eco-friendly business practices.

Honda Taiwan Co., Ltd. (HTW) continued to advocate for all dealers to improve their operations to be more environmentally responsible businesses. An HTW dealer installed LED lamps for part of their service area. Through these efforts, power consumption was reduced by about 33%. HTW is also endeavoring to complete green dealer certification for all dealerships. In 2014, HTW made a strong recommendation to all dealers to replace fluorescent lights with more energy-efficient LED lamps in showrooms, service shops and lavatories. By the end of 2014, Honda Taiwan expected to accomplish the phase-out of fluorescent lights in all dealerships.

In parallel with its Green Dealer program, Honda Motorcycle & Scooter India (Private) Ltd. (HMSI) initiated an energy consumption monitoring system at pilot dealerships. In this regard, HMSI also provided energy consumption guidelines, reporting the use of electricity and fuels, including diesel, LPG, kerosene and gasoline. A total of 11 dealers voluntarily participated in the monitoring report. HMSI is continuing to extend this initiative to other dealers.

• Honda Jakarta Center using recycled water for car wash

Sales and Service

Asia & Oceania


• Environmental Certifications ISO 14001Honda Vietnam Co., Ltd. (HVN) encouraged Honda car dealers to participate in its Green Dealer program by obtaining ISO 14001 certification. As of the end of fiscal year 2014, seven dealerships had achieved ISO 14001 certification.

HVN is continuously striving to promote this approach to all Honda dealers nationwide and to maximize their capability to achieve ISO 14001 certification. To help communicate the ISO 14001 certification activity of dealers, HVN provides a “Green DLR” logo that can be displayed in dealer showrooms.

164 Honda car dealers in Thailand have already earned ISO 14001 certification. In addition, Honda Automobile Thailand Co., Ltd. (HATC) took steps to promote more energy-efficient operations on the part of dealers in the region by integrating an energy management system into their Green Dealer program.

• Reducing the Use of Substances of ConcernAs a part of its Green Dealer program, Honda Vietnam Co., Ltd. (HVN) encourages all dealers to improve their operations to become more environmentally responsible businesses. In 2013, Honda dealerships began introducing water-based paint for vehicle body repair. This approach can reduce Volatile Organic Compounds (VOCs), providing a healthier working environment for associates as well as giving vehicles a high-quality finish. So far, all Honda dealers in Vietnam have accomplished the phase out of solvent-based paint, joining dealerships in Thailand and Taiwan, which have already achieved the phase-out of solvent-based paint.

In FY2014, HZN Cars Sdn. Bhd. installed a new Body and Paint (B&P) facility - The new Honda Body and Paint Center continues Honda’s pioneering spirit by pushing the green envelope in the automotive industry. Eco-friendly waterborne paint will be used at this new center. Honda Malaysia is the first car company in Malaysia to use waterborne paint, which is a revolutionary green product that uses water as the main component in its formulation, instead of potentially harmful solvent. With this natural composition, there will be a drastic reduction of pungent odors and detrimental Volatile Organic Compounds (VOCs). The quality of the waterborne paint provides better color accuracy compared to solvent-based paints, through a unique anti-setting technology. Workplace safety is further improved through the use of this waterborne paint, as it does not emit toxic fumes while reducing fire hazards. We expect that this facility would contribute to preserving a clean environment for the local community.

• HZN Body and Paint Centre • Masking and dry sanding bay at the HZN BP Centre

Sales and Service

Asia & Oceania


Product Recycling (Reduce, Reuse, Recycle)

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

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

Product recycling (3Rs)

Asia & Oceania

Feedback to development

• Major initiatives in product recycling (3Rs)

TheMaterial

Cycle

Recycle3R

pre

-ass

essm

ent s

yste

mReuse

Reduce

Reduce Production Use Disposal

Development

Disposal

Production

Design for reduction

Design for reusability, recyclability

Compliance with the ELV

Recycling Law

Voluntary motorcycle recycling

Byproduct recycling (see note)

Bumper recycling

Recycled/reused parts

IMA battery recycling

Reduction of environmental impact substances

Use


• Initiatives to comply with the ELV Recycling LawHonda Taiwan (HTW) has participated in the voluntary End-of-Life Vehicle (ELV) program organized by the Taiwan Transportation Vehicle Manufacturers Association (TTVMA) since 2007. The recoverable components of vehicles, their re-use method, and the material recycling process, including treatment of hazardous substances, are considered in both the product design and manufacturing of Honda products, which have reached a more than 80% level of recyclability and 85% level of energy recoverability. In addition, guidelines for the proper dismantling of products are provided to dismantlers through the TTVMA.

As required by the recycling regulation for vehicles in Korea, Honda Korea (HKO) has provided data concerning its conformity with hazardous material control and recyclability control requirements through the homepage of the electrical and electronic equipment and vehicle ECO-Assurance system - called EcoAS (www.ecoas.or.kr/).

• Built a system to collect and dispose of hybrid IMA batteriesAsia & Oceania markets have been increasing sales of hybrid (IMA) vehicles year by year, which will lead to large numbers of used IMA batteries in the future. To prepare and respond to this challenge, we have set up a process for the collection and disposal of IMA batteries with appropriate methods in every country in order to prevent potential environmental risks and health hazards.

• Environmental Community ActivitiesIn FY2014, APH has continued a used motorcycle tire collection program as part of its environmental community activities. The used tires are collected and have been reused to build a sea wall to protect against shoreline erosion. In partnership with Honda Motorcycle Logistics (Thailand) Co., Ltd., APH set up truck routes to collect the used tires from its dealers and store the tires in the HML-T warehouse until they are supplied to the community. Since the program’s inception, in March 2013, more than 14,000 used tires have been collected and supplied to municipal communities in the Thakham District, Chachoengsao Province in Thailand to build a seawall made with used tires.

• APH collected used tires and suppiled to municipal communities • APH hold a community event to build a seawall made with used motorcycle tires.

Product recycling (3Rs)

Asia & Oceania


AdministrationIn the Asia & Oceania region, Honda promotes environmental conservation measures in the management of its office facilities. To minimize the company’s environmental footprint, Honda associates develop measures from their own ideas for more environmentally responsible operations in all business activities.

• Energy ConservationA.P. Honda Co., Ltd. (APH) implemented several initiatives to promote energy saving in the office area. This initiative focused on the reduction of energy consumption and CO2 emissions. A variety of activities included installing two solar panels to supply electricity to a 750-watt pump motor, and replacing T8 fluorescent lamps with LED lamps in the office area. Through this effort, APH reduced annual energy used for its lighting system by approximately 30%.

Honda Automobile (Thailand) Co., Ltd. (HATC- S) replaced fluorescent lamps with LED high-efficiency lights at its sales and customer service office and also replaced high-pressure sodium light bulbs in its training office with LED lamps.

Honda Leasing Thailand Co., Ltd. (HLTC) has continually endeavored to reduce fuel consumption and CO2 emissions associated with its operations. HLTC has increased the number of natural gas-powered Honda City CNG vehicles from 21 to 26 units, to replace gasoline-powered company cars. By using compressed natural gas (CNG), this implementation can help HLTC emit less CO2 and improve the efficient operation of its transportation.

Understanding the importance of conserving energy, Asian Honda Motor Co., Ltd. (ASH), designated as the Honda Asia & Oceania Regional Headquarters, has strived to reduce electricity use in its office area by constructing a new A&O conference room with a maximum capacity of 120 persons. The room is equipped with numerous high-efficiency features, such as LED lamps, LED emergency lighting, and a more economical and efficient VRV (Variable Refrigerant Volume) air-conditioning system that conditions each room individually. The new A&O conference room officially opened in May 2014.

Administration

Asia & Oceania


Energy saving action

2013 Annual report

Send to Thai government (DEDE)

1.Energy management system

EnMS

Set up committee

Pre Energy management evaluation

Set Policy

Evaluate and Plan

Implement energy saving project

Audit

Review

• HRST – Energy management system

Honda R&D Initiatives • Energy ConservationHonda R&D Asia Pacific Co., Ltd. (HRAP) continually seeks out the means of improving energy efficiency and reducing the environmental footprint of its administrative operations. HRAP became the first R&D center in the region to earn ISO 14001 certification. In the effort to increase its commitment and contribution to environmental conservation, HRAP established an Energy Conservation Committee to promote energy saving in accordance with Thai government regulations. HRAP submitted a report of its annual energy use to the Ministry of Energy in Thailand. Various initiatives that HRAP has implemented to reduce energy consumption within its facilities include controlling the use of air conditioning in the electrical room and corridors, installing a variable speed drive for the control motor of the garden water pump, replacing fluorescent T8 lighting with more energy-efficient T5 lamps in Building 7, and changing exit lighting to an LED type. HRAP achieved energy savings of 112 MWh, reducing energy consumption by approximately 3.48% compared to the previous fiscal year.

Furthermore, HRAP set up a training program for associates and also expanded this program to janitorial staff and drivers. Various types of internal communication were also instituted to encourage energy conservation awareness, such as an energy conservation stickers and billboards.

Honda R&D South East Asia Co., Ltd. (HRST) continually improved its energy management system by appointing an Energy Conservation Committee and submitting a report of annual energy usage to the Ministry of Energy, in accordance with Thai government regulation. HRST also implemented various energy-saving activities, including installing energy-saving equipment for air conditioning systems, changing the ballast in T8 fluorescent lights in Building 3 from a coil-type ballast to an electronic ballast, and setting the temperature of the assembly and storage rooms

Asia & OceaniaAsia & Oceania

Honda R&D Initiatives

Asia & Oceania


• Resources ReductionIn addition to ISO14001 implementation, HRAP undertook an initiative to improve wastewater quality by limiting suspended solids (SS) to no more than 5mg/l. Ultimately, HRAP was able to limit suspended solids to approximately 2.5 mg/L, better than the target. HRAP has also endeavored to reduce city water consumption for 5%, compared to the previous year, by using treated wastewater for its gardening system, adjusted its sanitary system, and continuously monitoring water use. For associates, HRAP has campaigns to reduce paper consumption in offices by12% through the promotion of practices such as printing slides with 2 slides per sheet, printing on both sides of the paper and reusing paper. For its waste system, HRAP set a target to separate all garbage by promoting this to all associates, visitors and contractors, and also by improving signage for better understanding.

Special topics

• Local community initiativesHonda R&D Asia Pacific Co., Ltd. (HRAP) has undertaken several initiatives focused on the local environment. HRAP undertook cleanup activity for streets and gutters in the vicinity of their facility. Additionally, they initiated a strategy to visit nearby communities to provide more information about the environment operation of HRAP (by sharing a HRAP environmental leaflet with people in the community), aiming to improve understanding of environmental operating issues. Moreover, HRAP has regularly monitored wastewater quality and has also checked water quality in local canals to ensure that HRAP wastewater has no effect on nearby communities.

• Cleaning up street • Wastewater quality monitoring • Visit nearby communities

Asia & OceaniaAsia & Oceania

Honda R&D Initiatives

Asia & Oceania


HVN

Honda Vietnam Co., Ltd. (HVN) is engaged in many social contribution activities, of which environmental protection is always regarded as its long-term and core responsibility. Following the success of “Tree Planting Day 2013,” HVN coordinated with the Department of Agriculture and Rural Development of BacKan Province to organize “Tree Planting Day 2014” in XuatHoa Commune, BacKan Province, on April 20, 2014. The “Tree Planting Day 2014” attracted more than 200 HVN associates and Honda-related partners in BacKan, together with a large number of local people, to start with an area of two hectares. In its second consecutive year, the program is responsible for an estimated 161-hectare area of afforestation.

“Tree Planting Day 2014” is the next step of the Production Afforestation Project, which reflects HVN’s efforts to become a dynamic citizen of the country, in pursuit of Honda’s longstanding goal to be a company that society wants to exist.

HACPL

Honda Atlas Cars (Pakistan) Ltd. (HACPL) has always held strong to its commitment to nurturing a greener planet. As a part of this pledge, HACPL undertook another nationwide tree planting activity. The tree planting activity was part of Honda’s ‘you buy a Honda, we plant a tree’ campaign. In collaboration with its 3S dealers,1 HACPL planted 23,300 trees. This tree plantation activity was undertaken on the grounds of clubs, universities, schools and parks in all major cities. Honda believes in the cause of making the earth green and will continue to pursue such activities in support of this cause.

AHL

As part of its commitment to green manufacturing, Atlas Honda Ltd (AHL) initiated tree-planting activities in the local community to offset the effects of CO2 emissions from manufacturing. As part of this ongoing initiative, AHL planted more than 2,200 trees in the vicinity of its factory. As a result of this initiative, an estimated 48 metric tons CO2 are offset annually

PT Astra Honda Motor (AHJ) has the responsibility as a responsible corporate citizen to minimize the environmental impact of its operations. AHJ is applying green technology by using a tissue culture laboratory to produce and plant a large number of trees to offset CO2 emissions from its operations. AHJ has planted more than 106,082 trees in the vicinity of its factory and next to its main dealer. This activity, aimed at improving the sustainability of AHJ’s operations, is targeting the planting of 200,000 trees per year throughout Indonesia.

Philanthropic Environmental Initiatives


Philanthropic Environmental

Initiatives

Tree plantingHNZ

On June 21, 2013, Honda New Zealand Limited (HNZ), in cooperation with the Auckland Regional Council, held for the fifth consecutive year the “TreeFund” program to plant a mix of native species, including tea tree, cabbage tree and flax, on a 24-hectare former dairy farm in CUE Haven. This year, 30 Honda team members, including associates, customers and their families, participated in the Tree Planting Day. The participants gained valuable experience and learned how to plant native trees in order to protect and refresh local biodiversity. Additionally, Honda provided five new hybrid cars to Forest & Bird field officers to support their activities.

The Honda “TreeFund” program funds 13 native tree plantings for every new car sold in New Zealand. This program has resulted in the planting of more than 530,000 native trees since 2004.

Honda “TreeFund

You buy a Honda, We plant a tree campaign

Tree planting day 2014

1. 3S dealership reflects the Atlas Honda strong commitment towards facilitating its customers in the best possible manner. 3S Dealership offers Sales, Service & Spare parts within one-roof to act as a one stop solution for its customers.


Environmental Education

HATC – Honda School Environment Project (Honda Green Camp)The Honda School Environment Project was introduced in 1999 in cooperation with ten state agencies - the Foundation of the Sirindhorn International Environment Park; the Office of the Royal Development Projects Board (RDPB) ; the Office of the Basic Education Commission; Ministries of Education, Natural Resources and Environment; Energy; Agriculture and Cooperatives; and Interior; the Thailand Environmental Institute; and King Mongkut’s University of Technology, Thonburi.

These parties worked together to determine school environmental standards for all participating schools, and to apply these standards in order to resolve in-school and community environmental problems by promoting integrated environment management (the King’s concept of water, waste, energy) in their activities and in their curriculum for sustainable development. In FY2014, the program was in its seventh year.

HMSBHonda Malaysia Sdn. Bhd. (HMSB) led four elementary schools in Malaysia, from April 25 to 28, 2013, to educate more than 850 students on the need for environmental preservation. So far, HMSB has reached out to more than 8,800 primary school children in eight states across Malaysia. Global warming is a reality faced by mankind. Honda wants to promote a sense of environmental conservation with children, encouraging practices such as shutting off the tap when brushing your teeth, and using recycled paper and recyclable goods. This will help to ensure that the diversity of life on Earth and a better and secure life ahead.

Honda Green Camp



Initiatives




Initiatives

The Baan Nam Min School, Mae Lao Sub-district, Chiang Kham District, Payao: (Primary school winner of HM the King’s Cup)

A mid-sized primary school in a valley among the high mountains around Nam Lao Village, Baan Nam Min School has 19 teachers and 267 students. With a geographical location that has a high potential for natural disasters, such as floods and mudslides, the school and community members have focused their attention on environmental problems by undertaking many activities including reforestation, cultivating vetiver grass for landslide prevention, and waste management.

To promote the efficient use of natural resources, the school produces wood vinegar, fertilizers and biodiesel, plants bananas and rubber, and uses banana leaves as a replacement for foam and plastics. Other in-school initiatives include students using their own glass to brush their teeth and drink water, a bike-powered water pump, and art created with recycled paper to reduce water and paper consumption.

Making fertilizer

Making recycled paper

Renewable energy-Biodiesel

A bike powered-generator

Follow the forthcoming initiatives of the project at www.hondagreenschool.com.

Honda Green Camp Award Ceremony

Special topics

The Honda Green Camp has announced the two winning schools that implemented environmental best practices in the “His Majesty the King’s Cups for the School Environment Project VII (2012-2013)”, under the theme “Follow the King's Path.” The two winning schools successfully carried out in-school and

The key initiative behind the school that won the King’s Cup was its successful effort to stimulate environmental awareness among teachers, students and their families, and community members. As a result, all occupants of residential units in the community are engaged in systematic waste segregation. More importantly, the school has seamlessly integrated the lessons learned with environmental knowledge in eight major subjects to enhance the sustainability and public awareness of the conservation of natural resources and the environment among the Baan Nam Min students.

community environmental initiatives while boosting student awareness about integrated environmental management. At the awards presentation, the 15 selected model schools in the project, outstanding advisory teachers and the judges also received HRH Princess Soamsawali Plaques.

Sattayasai School, Lamnarai Sub-district, Chai Badan District, Lop Buri: (Secondary school winner of HM the King’s Cup)

The Sattayasai School was established by Dr. Art-ong Jumsai Na Ayudhya with a core objective of producing “Good people for society”. With a belief in human values, the school strives to provide its students with excellence in morality and ethics and encourages them to follow the sufficiency economic philosophy.

The school’s activities include growing rice and vegetables for in-school consumption, reducing costs by saving water and electricity, and using renewable energy. Initiatives taken include converting used cooking oil into biodiesel for school vehicles, generating electricity from solar cells and wind turbines, a solar-cell heated building, a stove powered by renewable energy, and a bike-powered generator that provides electricity during the evening. Students and local residents are encouraged to use natural resources more efficiently by separating waste, reusing and recycling materials, and producing bio-extracts, bio-fertilizers and bio-gas from organic waste.

In addition to the renewable energy-based innovations, the school's curriculum is designed to boost morality, ethics, self-reliance and co-existence with nature via meditation and praying, integrated with activities to protect the environment. All students and school members have learned by joining activities, and participants also realize the value of natural resources and the environment, with tangible achievements demonstrated through their thoughts, words and actions.


Environmental Annual Report Production Staff

Products Automobiles: Masayuki Kobayashi, Kyozo Futa Motorcycles: Koichi Sugioka Power Products: Kotaro Hagiwara

Purchasing Automobiles: Tatsuaki Itai, Rachna Mehta Motorcycles: Kenta Yamaji, Phimphan Thipnampha

Production Automobiles: Shinji Imagawa, Sakawduen GetsuwanMotorcycles and Power Products: Hisayoshi Ueno, Pongkun Thantananukorn

Customer Services Spare Parts Logistics and Warehouse: Toshihito Tezuka Sales and Services: Takamasa Fujisaki, Duangrudee Boromthanarat, Kanchana Parinyapornkun

Administration Non-manufacturing and sales office: Natsuko KobayashiSocial contribution: Rachnida SangthongtongR&D Automobiles: Masahito Kamada, Komson Keawchai, Sahaphol SuthumMotorcycles and Power Products: Kazuhiko Shibui, Hiroshi Nagai, Wichai Wattanaharnnuwat

Legal and Intellectual Property Katsutoshi Yamazaki, Pongpitch Yangyuen

Certificate and Product Regulations Shinya Azuma, Phongsak Dilokphatthrawut, Nat Martchaipoom, Pathomphorn Boonyarit

Public Relations Hideto Maehara, Pathumwan Nambutr, Raweeruj Vijaksirikul

Company Overview

Company name: Asian Honda Motor Co., Ltd.Head office: 14 Sarasin Building, Surasak Road, Silom, Bangrak, Bangkok 10500 ThailandEstablished: October 12, 1964President & COO: Noriaki AbeCapital: 442.7 Million Baht Number of Associates: Consolidated: 472 as of March 2014Business: Import/Export company

Please direct inquiries to:

Asian Honda Motor Co., Ltd.Presidential Office – Environment and Safety PlanningTel.: 66-2236-0256Fax: 66-2635-1041Asian Honda Motor Website: www.asianhonda.comThis report can be found on the Honda Worldwide Website:www.world.honda.com/environment/report/

All rights reserved. All trademarks, trade names and logos referenced herein belong to their respective companies. The text, images and graphics contained herein are either owned by Asian Honda Motor Co., Ltd., or used under license. No part of this report may be reproduced without the written permission of Asian Honda Motor Co., Ltd. Although descriptions in this report are believed to be correct, complete accuracy cannot be guaranteed.

©2014 Asian Honda Motor Co., Ltd.

Production Company Def to Design Co.,Ltd. www.def2design.com

Publisher Presidential Office – Environment and Safety Planning

Director Isao Ito

Editor Minoru Makuta Arisara Thongsri Burimparth Pakornsiri

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Documents

Environmental Annual Report 2014 Honda Asia & Oceania