2007 North American Environmental Report
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About This Report
his report covers Honda’s activities LOOK FOR ǡ in its North America region in fi scal THIS ICON T throughout the report year 2007, from April 1, 2006, through to review the company’s goals and commitments March 31, 2007. In order to provide as they relate to specifi c context, it also includes selected earlier areas of product and 2007 North American Environmental Report operational performance. accomplishments. Summarized below are highlights of Honda’s environmental performance in North America that are detailed in the full report.
Report Summary
Global Warming Product and Technology Innovation
onda recognizes global climate change and Automobiles Henergy sustainability as two of the most Ǡ By introducing new technology and more fuel-effi cient serious environmental challenges of our day. As products, such as the Honda Fit, the company maintained the world’s largest producer of gasoline-powered its industry-leading CAFE performance: 29.1 mpg for its products, Honda is making a concerted effort to combined car and light truck fl eet in model year 2006. improve the effi ciency of its products and Ǡ Honda is targeting a further 5 percent improvement production operations on a global scale. in its CAFE by model year 2010, along with a series of new technology initiatives: Ǡ In May 2006, Honda Ǡ Signifi cant progress became the world’s only already has been made in • Next-generation Variable • A next-generation automaker to set voluntary reducing global average Cylinder Management 4-cylinder clean diesel global targets for further product and production (VCM) technology applied engine, meeting EPA
reductions in CO2 emissions CO2 emissions from 2000 to the Accord V6 Sedan Tier 2 Bin 5 emissions, from its automobile, levels (see page 4 and Coupe and Odyssey to be launched in 2009. power sports and power for further details): in 2007. • An all-new more equipment products and • a 6 percent reduction in • An all-new, more afford- advanced, effi cient, and production activities. able hybrid vehicle to be dynamically styled fuel average CO2 emissions Ǡ On a global basis, the from automobiles launched in 2009, with cell vehicle, based on the company is targeting a projected annual sales of Honda FCX Concept, • a 9.5 percent reduction total 10 percent reduction 100,000 units in the U.S. to be launched in 2008. in average per-unit in average CO emissions and Canada combined. 2 CO emissions from from its automobile, 2 the manufacture power equipment and Power Sports Products of automobiles power sports products Ǡ Honda has applied cleaner, more effi cient 4-stroke from 2000 levels by 2010; • a 6.9 percent reduction engine technology to the breadth of its North American along with a 10 percent in average CO2 emissions product line and is expanding the use of programmed reduction in average CO 2 from power equipment fuel injection (PGM-FI), which creates the potential for emissions per unit of products further improvements to emissions and fuel effi ciency. automobile production; • a 23.2 percent reduction and a 20 percent reduction Power Equipment Products in average per-unit CO in per-unit CO emissions 2 Ǡ Honda has applied 4-stroke OHV engine technology to 2 emissions from the from production of power all of its North American power equipment, general-purpose manufacture of power equipment and power engines and marine engines, and is selling those cleaner sports products sports products. engines in all 50 U.S. states.
IFC Honda 2007 NORTH AMERICAN ENVIRONMENTAL REPORT
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Table of Contents We Value Your Opinion
Honda 2010 Vision 2 We are interested in your response A Letter from Our North American Chief Operating Offi cer 3 Global Climate Change: Honda’s Perspective 4 to this report and welcome Environmental Management 9 your input to help us improve it. Please Environmental Goals, Status, Commitments 12 complete an interactive survey by Environmental Impact of Honda Products 14 visiting the following website: Environmental Impact of Honda Manufacturing 26 Waste Minimization and Recycling 38 http://corporate.honda.com Environmental Community Activities 50 Environmental Technology Milestones 54 North American Corporate Profi le 56
Issued by Green Manufacturing Waste Minimization Honda North America, Inc. 700 Van Ness Avenue onda is working to minimize the waste products n fi scal year 2006, Honda began tracking Torrance, California resulting from its many business activities throughout ICO2 emissions from all of its North American H 90501-1490 production facilities while continuing efforts the life cycle of its products — from reduced use of virgin to reduce energy use, hazardous emissions materials in product design to increased recycling of waste and generation of waste material at its own from product disposal, along with more earth-friendly Contact address factories and at the factories of its more than means of packaging and distributing products and We welcome your response to this 600 North American OEM parts suppliers. increased energy effi ciency in Honda plants and offi ces. report. Please send comments to: American Honda Ǡ Continued progress was Ǡ Honda maintained CO2 Emissions* ISO14001 Certifi cation Motor Co., Inc. Ǡ Ongoing efforts to con- Ǡ 13 of the 14 Honda plants sought in the reduction and 90 percent or greater Corporate Affairs & serve energy and to more operating in FY2007 were elimination of substances design recyclability (based Communications effi ciently utilize production third-party certifi ed to the of concern (SOC) in Honda on the Japan Automobile 1919 Torrance Boulevard Torrance, California capacity resulted in a slight ISO14001:2004 standard. products — including Manufacturers’ standard) 90501-1490 reduction in average per- The remaining new mercury, lead, hexavalent for all U.S. developed and chromium, cadmium, manufactured automobiles; email: auto CO2 emissions from plant will be certifi ed by electricity and natural gas December 2009. PDBEs, and PVC. and 95 percent for all honda_environmental_report Power Sport and Power @ahm.honda.com consumed in the production Ǡ Efforts to reduce waste Landfi ll Waste Equipment products. process, from 715 kg in and increase recycling Ǡ Total waste to landfi lls FY2006 to 711 kg in FY2007. were further accelerated in Ǡ Honda continues to For more information Ǡ was reduced from Average CO2 emissions FY2007. Honda also began work closely within its own To access an electronic 9,202 metric tons in per automobile produced in the process of certifying product development and copy of this report, please visit FY2006 to 8,968 metric the seven-year period from two new facilities to the manufacturing operations, http://corporate.honda.com. tons in FY2007, and is down FY2001 to FY2007 increased U.S. Green Building as well as with suppliers 66 percent from the FY2001 slightly, from 709 to 711 kg. Council’s Gold-LEED and automobile recyclers, to baseline. The company (Leadership in Energy reduce the life-cycle impact Energy Use is targeting a 70 percent Effi ciency Design) of its products from design Ǡ reduction by FY2010. Energy use per unit standards. to disposal. of auto production fell VOC Emissions about 1.5 percent in FY2007, Ǡ VOC emissions from from 6.7 to 6.6 gigajoules. auto body painting were Total energy use was up reduced 25 percent, from about 1 percent from the 20.8 g/m2 in FY2006 to previous fi scal year, from 15.6 g/m2 in FY2007, and 9.73 million to 9.83 million about 45 percent from an gigajoules, due to increased FY2001 baseline of 28.7 g/m2 . production activity.
* CO2 emissions and energy use are based on consumption of electricity and natural gas. 2007 NORTH AMERICAN ENVIRONMENTAL REPORT Honda 1
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Honda 2010 Vision
Honda’s 2010 Vision focuses the company’s global operations on the environmental challenge. Established in 1998, on the 50th anniversary of the Honda Motor Co., Ltd. (the parent company of Honda’s North American operations), the 2010 Vision focuses on three key themes:
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9ecc_jc[dj \ehj^[ We should pursue our daily business interests under the following principles: Viewed in total, the ultimate goal of Honda’s 2010 Vision is for Honda to be recognized as “a company that society wants to exist.” value creation commitment for the future glocalization Developing original technology Developing products with Meeting the growing and that improves Honda product advanced levels of safety and changing needs of Honda effi ciency, safety and environmental performance, while customers through the functionality to create new limiting the environmental impact advancement of Honda’s local value for customers and of Honda products though their research and development, for society. entire life cycle, from the research manufacturing, sales and and development stage all the way service capabilities. through to end-of-life disposal. 2 Honda 2007 NORTH AMERICAN ENVIRONMENTAL REPORT 73942_1-13_Intro.inddCS2.indd Sec1:2 10/10/07 3:51:26 AM Our Responsibility to the Environment A Letter from Our North American Chief Operating Offi cer e believe that our responsibility as a company extends beyond making products Wthat people want to own. Based on the way we conduct our business activities, it is our goal to be considered as “a company that society wants to exist.” Thus, we have worked over many decades to create new products, new technologies, and new processes that allow us to exceed the expectations of our customers while reducing the negative impacts of our products and operations on society. In no place is this more evident than in our commitment to the environment. As one of the largest regions for the development, To this end, over the next several years, we will “While we continue to production and sales of Honda products, North introduce a series of new technologies to our address these issues, our America plays a critical part in our company’s customers in North America, including more fuel efforts now center on drive to continually improve its environmental effi cient gasoline engines, a new gasoline-electric global climate change and energy sustainability — performance on a global scale. This is a broad-based hybrid vehicle, and the fi rst-ever Honda clean- and the important effort involving all Honda associates, and addressing diesel vehicle sold in North America. At the contributions we believe virtually every aspect of our business activity — same time, we will begin limited marketing our company can make from product design and production all the way in the United States of a next-generation Honda to the reduction of to distribution and sales, as well as the in-use and hydrogen-powered fuel cell vehicle, which greenhouse gas emissions end-of-life impacts of our products. could offer the ultimate promise for a clean and to the advancement and sustainable transportation future. of alternatives to gasoline Over the past 30 years, we have made tremendous as a fuel source for progress in reducing pollutants from our products This report covers these and the many other steps personal mobility.” and our factories. While we continue to address these we are taking daily, through the initiative of our issues, our efforts now center on global climate change own associates, to reduce our environmental and energy sustainability — and the important footprint in all aspects of our operations. I hope you contributions we believe our company can make to will fi nd it informative and helpful in increasing the reduction of greenhouse gas emissions and to the your understanding of Honda’s commitment to the advancement of alternatives to gasoline as a fuel for environment and its drive to become a company personal mobility. that society truly does want to exist. Sincerely, Tetsuo Iwamura Managing Director, Honda Motor Co., Ltd. Chief Operating Offi cer, North American Regional Operation President & CEO, American Honda Motor Co., Inc. Honda’s Chief Operating Offi cer for North America Tetsuo Iwamura (far left) with Jon and Sandy Spallino and their hydrogen- powered Honda FCX. The Spallinos are celebrating two years as the world’s fi rst fuel cell family. 2007 NORTH AMERICAN ENVIRONMENTAL REPORT Honda 3 773942_1-13_Intro.inddCS2.indd3942_1-13_Intro.inddCS2.indd SSec1:3ec1:3 110/10/070/10/07 33:51:27:51:27 AMAM Our Responsibility to the Environment Global Climate Change: Honda’s Perspective onda recognizes climate change and energy sustainability as two of the H most critical global issues facing society today. As the world’s largest producer of gasoline-powered products, Honda believes it has a responsibility to reduce its greenhouse gas (GHG) output, primarily CO2 emissions. The greatest immediate opportunity to reduce the company’s CO2 emissions will come by improving the energy effi ciency of Honda products and the factories that build them. Together, these factors account for roughly 80 percent of a Honda product’s life-cycle CO2 emissions. Accordingly, in May 2006, Honda established voluntary targets to further reduce CO2 emissions from its products and manufacturing activities globally by 2010. Honda’s Voluntary CO2 Reduction Targets product domain manufacturing* domain Global Target Global Target by 2010 vs. Progress (per unit produced) Progress 2000 baseline thru 2006 by 2010 vs. 2000 baseline thru 2006 On a global average Automobile -10% g/km -6.0% Automobile -10% kg/unit -9.5% basis, CO2 emissions from Automobiles sold in Japan, North America, Europe/Middle East/Africa, Honda automobiles Asia/Oceania, China, South America (more than 90% of worldwide sales) were reduced by about Power Sports -10% g/km -13.2% Power Sports -20% kg/unit -29.3% 6 percent from FY2001 Motorcycles sold in Japan, North America, Europe, Thailand, to FY2007. In the same India, China, Indonesia, Vietnam, Brazil, the Philippines, Malaysia, Pakistan (more than 90% of worldwide sales) period, average CO2 emissions generated Power Equipment -10% kg/hr -6.9% Power Equipment -20% kg/unit +4.4% by the manufacture All worldwide power equipment product sales, of Honda automobiles excluding outboard marine engines. were reduced by about 9.5 percent. • Automobiles: By the end of FY2006 Honda had achieved a * All manufacturing by Honda Motor Co., Inc., and 72 other Honda Group companies engaged in the assembly of vehicles and major components. 6 percent reduction in the average CO2 emissions of its global automobile fl eet from FY2001 levels. The company is targeting • Automobiles: By FY2007, Honda had achieved a 9.5 percent a total 10 percent reduction from 2000 levels by 2010. reduction in global average CO2 emissions per unit of • Power Equipment and Power Sports Products: The company is automobile production from 2000 levels. The company is targeting a total 10 percent reduction by 2011. also targeting a 10 percent reduction in CO2 emissions from its global Power Equipment and Power Sports product fl eets • Power Sports Products: Average CO2 emissions per unit of from FY2000 levels by 2010. production for Honda power sports products were reduced 23.2 percent in 2007 from 2000 levels. The company will North American Targets strive to maintain at least a 20 percent reduction through 2010. • Automobiles: Honda will aim to increase the company’s • Power Equipment: Average CO2 emissions per unit of already industry-leading U.S. corporate average fuel economy production for Honda power equipment products increased The company also has (CAFE) for its combined passenger car and light truck fl eet by 4.4 percent in 2007 over 2000 levels, due in part to the set specifi c targets for 5 percent from model year 2005 levels by model year 2010. increased product size and content. The company will strive its North American to achieve its target of a 20 percent reduction over 2000 region — the largest • Power Sports Products: Honda will replace 100 percent of its levels by 2010. producer and consumer 2-stroke engines with cleaner and more effi cient 4-stroke of Honda automobiles. engines in all of its North American power sports products by the 2008 model year. North American Targets • Honda will seek further reductions in manufacturing energy intensity, as measured by gigajoules per auto (GJ/auto), where technically and economically feasible (see pages 28-29 for more details on Honda’s manufacturing energy reduction efforts in North America). 4 Honda 2007 NORTH AMERICAN ENVIRONMENTAL REPORT 773942_1-13_Intro.inddCS2.indd3942_1-13_Intro.inddCS2.indd SSec1:4ec1:4 110/10/070/10/07 33:51:29:51:29 AMAM Global Climate Change: Honda’s Perspective Meeting the Energy and Climate Change Challenge In Honda’s view, meeting the energy and environmental challenge involves three Alternatives to gasoline Alternative fuel critical issues — air quality, climate change, and energy sustainability. Honda is the only company infrastructure that continues to offer a Compressed Natural Gas: The company has undertaken a series of new technology developments aimed at dedicated compressed The PhillTM home refueling further improving the in-use fuel effi ciency and emissions performance of Honda natural gas-powered pas- appliance, manufactured by senger car, Civic GX, to both FuelMaker Corp., expands and Acura automobiles, and further advancing viable alternatives to gasoline. the retail and fl eet markets. the CNG market beyond To advance alternative fuel fl eets to retail customers. Honda will also continue to advance and promote the compatibility of high fuel vehicles with lower GHG Its experience with gaseous effi ciency and safety as epitomized by its leadership in both CAFE and in the emissions, Honda has ex- home refueling has provided application of standard safety features through its “Safety for Everyone” initiative. panded the availability of the Honda with practical Civic GX and the PhillTM home know-how that can help the refueling appliance development of distributed to additional markets in hydrogen infrastructure in three issues three strategies California and to 20 Honda the long term. dealers in New York state. Hydrogen: Honda’s research on the experimental Home Fuel cell technology Energy Station (HES), with its Honda is accelerating the partner Plug Power, Inc., is in development of fuel-cell its third generation. Using societal vehicle technology, and will 3 natural gas as its energy introduce in 2008 a totally concerns source, this station aims new fuel cell vehicle based to provide a home-based on the FCX Concept. This Strategy 3 refueling environment that vehicle is based on a Honda- energy Developing alternative produces suffi cient hydrogen developed V Flow fuel cell sustainability fuel technologies to power a fuel cell vehicle platform consisting of a while providing heat and (both for vehicles and compact, high-effi ciency fuel electrical energy for an aver- infrastructure) to address cell stack arranged in age home. energy sustainability. an innovative center-tunnel layout that allowed designers to create an elegant, low-riding, sedan form. Gasoline engine Hybrid technology 2 effi ciency Honda will further advance Honda will continue to its hybrid technology, Strategy 2 improve the already including the introduction industry-leading fuel in 2009 of a new, more climate Further advancing fuel change effi ciency of its gasoline- affordable family car effi ciency through powered vehicles, including: with a gas-electric hybrid conventional engine, hybrid, powertrain and a price •A more advanced version clean diesel, and other below that of the current of Honda’s i-VTEC™ variable- technologies. Civic Hybrid. The company valve timing technology is projecting annual sales of introduced by 2010. 100,000 units in the United •Next-generation Variable States and Canada combined. 1 Cylinder Management (VCMTM) technology Clean diesel introduced in the Accord Honda will introduce in Strategy 1 Sedan and Coupe and air 2009 a new vehicle or Reducing air pollution with Odyssey minivan in 2007. vehicles equipped with quality conventional engine technology. •Power sports and power high-effi ciency, 4-cylinder (Substantial progress has been equipment: Advance the clean diesel engine technology made as low emission effi ciency and emissions that achieves U.S. EPA technology has advanced.) performance of power Tier 2 Bin 5 emissions levels. sports and power equipment Honda’s next-generation die- products, including sel engine has a unique NOx application of programmed reduction catalyst that turns fuel injection (PGM-FI) NOx into harmless nitrogen (N ) — all without the need technology to most of 2 Honda’s worldwide for onboard urea storage. past present future motorcycle fl eet by 2010. timeframe 2007 NORTH AMERICAN ENVIRONMENTAL REPORT Honda 5 73942_1-13_Intro.inddCS2.indd Sec1:5 10/10/07 3:51:30 AM Global Climate Change: Honda’s Perspective Challenges for the Future Many challenges remain in making the reduction of greenhouse gas emissions a top priority for consumers. lthough fuel prices in North America are high technologies fuel effi cient and affordable. Further, A in absolute terms, as a percentage of household the misperception that smaller cars cannot be safe income, fuel remains relatively inexpensive. As is a persistent marketing challenge that leads some a result, many consumers do not consider fuel consumers to prefer larger cars, SUVs, and trucks. effi ciency a top priority. At the same time, the cost Through the introduction of new technologies of pinnacle technologies such as gasoline-electric and its “Safety for Everyone” initiative, Honda is hybrids remains high relative to their value for the demonstrating that it is possible to offer vehicles average consumer. Honda is working to encourage with both industry-leading levels of fuel effi ciency greater consumer acceptance by making its and standard safety equipment. National Approaches Honda believes there is a need to constructively pursue national policy initiatives that are technically feasible, and fair, and that encourage the auto industry to advance effi cient products, while helping to increase consumer interest in fuel economy. United States Canada Mexico In the United In Canada, the automotive industry has already entered In Mexico, States, Honda advocates into an agreement with the federal government to reduce Honda de Mexico (HDM) Honda will continue national standards and a greenhouse gases from on-road sources as part of a national continues to work closely to work constructively national industry policy commitment to address climate change. In October 2006, the with government agencies with policymakers to for mobile sources. government provided a Notice of Intent to regulate the industry to establish new policies help ensure that Honda has provided when the voluntary agreement expires at the end of 2010. that emphasize the appropriate policy actions Congressional testimony importance of reducing are taken to encourage in support of higher fuel The Canadian government’s noticeable improvement in emissions and increasing continued progress toward economy standards, set 2007 budget introduced the overall fl eet fuel consumption. fuel effi ciency. HDM is greater fuel effi ciency and monitored by the Eco-Auto Incentive Program Our considered view is that part of Proyecto Gases within the industry and appropriate regulatory to encourage consumers to fee- and levy-type incentive Efecto Invernadero the marketplace. bodies. Honda has also purchase fuel-effi cient vehicles programs should be structured (GEI Project Mexico), advocated selected use with a combined highway only in a manner that scales which involves regular of incentives to promote and city fuel consumption of both rewards and penalties for reporting of GHG new technologies that 6.5 L/100 km or less. Honda all vehicles on a continuous and emissions, such as C0 believes the program’s fuel proportionate basis. Actions to 2 improve fuel effi ciency and CH4 , from the and reduce GHG emissions. consumption criteria are address climate change must production process, in (See below for additional currently overly restrictive, also continue to be balanced order to help the government information on Honda’s and therefore too narrow with our efforts to enhance assess activities for U.S. policy outlook.) in application to effect a occupant safety. reducing emissions. Honda’s Position on GHG/Fuel Economy Regulation in the United States Honda is playing a constructive role in urging the U.S. federal government to address greenhouse gas (GHG) emissions. onda encourages U.S. federal government supporting legislation to authorize the National Hpolicymakers to consider all levers at their Highway Traffi c Safety Administration (NHTSA) to disposal to stimulate demand for more fuel effi cient set increased federal fuel economy standards and to vehicles. For more than two years, Honda has urged consider attribute-based standards for passenger cars. the U.S. government to increase and strengthen its Further, Honda is the only automaker to have submitted fuel economy standards. Honda provided a statement to the Senate Energy Committee a statement addressing to the U.S. Senate Energy and Natural Resources the proper structure for a cap-and-trade system for Committee and to the House Science Committee motor vehicle greenhouse gas emissions. 6 Honda 2007 NORTH AMERICAN ENVIRONMENTAL REPORT 773942_1-13_Intro.inddCS2.indd3942_1-13_Intro.inddCS2.indd SSec1:6ec1:6 110/10/070/10/07 33:51:30:51:30 AMAM Global Climate Change: Honda’s Perspective Honda also has been a long-term supporter of federal technology development progresses rapidly, and and state incentives for alternative-fuel vehicles and other times when promising technologies do not the infrastructure to jump-start new technologies. work out. Nor is it possible to predict accurately the future price of gasoline and other motor vehicle In the United States, Honda has called upon the federal fuels. This is why it is important for an expert government to approve further increases in fuel agency to monitor technology progress. When economy standards and to adopt a new combined technology breakthroughs occur, NHTSA should standard for passenger cars, SUVs, and pickup trucks. increase the CAFE standards to compel more rapid Given the rapid technology changes that are taking implementation of the technology. Should Honda believes that place, performance-based requirements or incentives as a manufacturer of technology development hit unexpected problems, are the best way to reduce fuel consumption and motor vehicles and NHTSA should adjust the CAFE standards to GHG emissions. It is impossible to predict the pace power equipment, it prevent unintended market and competitive has a responsibility to of technology development or to know when break- problems. Congress should specify the criteria used do its share to address throughs may occur. Accordingly, technology-specifi c by NHTSA to make CAFE adjustments, but a climate change. mandates will not get us where we need to go. rational adjustment mechanism is needed in • Previous attempts to mandate specifi c technologies order to implement technology at the maximum have a poor track record, such as the attempts in feasible rate without market disruptions. the 1990s to promote methanol and the California In addition to supporting the NHTSA’s recent increase electric vehicle mandate. The primary effect of in CAFE standards for light-duty trucks, Honda also technology-specifi c mandates is to divert limited sponsored critical research that demonstrated the resources from other development programs that capacity for vehicles to be made more fuel-effi cient Given the rapid may be more promising. If there must be mandates, technology changes without compromising safety, especially if a size- they should be stated in terms of performance that are taking place, based attribute standard is used. requirements, with incentives, and supported by performance-based research and development. Honda also supports NHTSA’s recent determination requirements or incentives are the best that CAFE “backstop” provisions are counterproductive. • Honda specifi cally supports CAFE increases for way to reduce fuel both light-duty trucks and passenger cars to be Congress should further enhance the CAFE program consumption and set by the NHTSA. The major problem with rigidly by eliminating the artifi cial split between import GHG emissions. setting future CAFE standards in statute is that and domestic passenger car fl eets and by combining the rate of technology development cannot be passenger cars and light trucks under a single accurately forecasted. There are times when CAFE system. Climate Change: A Societal Concern Honda also supports an steps taken by the fuel to tailor fuel-effi cient responsibility to do its share economywide effort to and vehicle industries are technologies to meet to address climate change. address global climate complementary. Fuel sector different requirements But because climate change change. The transportation activities might also send for different states and is a societal problem, Honda sector represents about important market signals to market different vehicle and fi ve other automakers 33 percent of all U.S. GHG to consumers. types for specifi c states. rejected the assertion, emissions. The light-duty Honda strongly believes that For these reasons, and made in a lawsuit fi led by vehicle sector accounts mobile source initiatives because fuel effi ciency is the state of California, that for about 60 percent of must be undertaken at the regulated exclusively at vehicle manufacturers are that total. In addition to national level. the federal level, the auto responsible for damages mandating reductions from GHG emissions and their industry’s trade associations, caused by global warming. the motor vehicle industry, effect on climate change do including Honda’s, in 2009 On September 17, 2007, the Congress should develop not stop at the border of any challenged California’s trial court agreed with the appropriate regulatory one state. attempts to regulate plaintiffs that the so-called programs to address The technology necessary greenhouse gas emissions at “nuisance doctrine,” which emissions from the fuel to reduce GHG emissions the state level. formed the theory of this sector. Such requirements is fundamental to the Honda believes that as a case, was misapplied in would not only reduce design of a vehicle and its manufacturer of motor the context of global GHG emissions, but would powertrain. It is diffi cult and vehicles and power climate change. also help to ensure that not economically practicable equipment, it has a 2007 NORTH AMERICAN ENVIRONMENTAL REPORT Honda 7 773942_1-13_Intro.inddCS2.indd3942_1-13_Intro.inddCS2.indd SSec1:7ec1:7 110/10/070/10/07 33:51:31:51:31 AMAM Global Climate Change: Honda’s Perspective Fuels for the Future Honda believes that we need to reduce our consumption of conventional fuels while advancing the development of viable alternative fuels including renewable and lower carbon intensity fuels. lobal demand for transportation energy is development and implementation of as many Gso immense that no single technology holds feasible technologies as possible to meet society’s the key to the future. Coordinated development future energy needs. Accordingly, Honda is exploring of advanced vehicle and powertrain technologies a variety of ways to achieve greater energy and with alternative fuels will be critical to success environmental sustainability. We are advancing our in our energy future, and to the further reduction technology across a broad front to meet the needs of greenhouse gas emissions. We need rapid of our customers and society. Honda’s View on Biofuels Biofuels are promising; they can replace some fossil fuel. But fats and oils, will soon enter the US market. This renewable even cellulosic biofuel has the potential to replace, at most, diesel is of high interest, because it is chemically nearly 10 to 20 percent of the world’s oil demand. Honda believes an equivalent to petroleum-based diesel and can be transported ideal biofuel has the following attributes: through existing pipelines. • It has a true positive impact on reduction of GHG emissions Next-Generation Biofuels and energy security, as determined by complete and objective The key to wider use of renewable fuels is economically viable life cycle analyses. Coordinated and environmentally sustainable methods of production. development of • It does not harm the environment through secondary effects, Research into cellulosic materials, such as switchgrass and advanced vehicle such as biodiversity loss. agricultural waste, shows promise. Cellulosic materials have and powertrain • It does not adversely affect the price and availability of food the potential to provide far more biofuel than corn, without technologies with supplies, directly or indirectly. impacting food supplies and with far less energy input and alternative fuels • It is compatible with all current and legacy vehicles and lower GHG emissions. One example is alcohol derived from will be critical to with small engines. cellulose. Another is the Biomass-to-Liquid (BTL) process, which success in our energy can produce synthetic fuels that are chemically identical to • It is transparent to the consumer in terms of price, future, and to the petroleum-derived gasoline and diesel fuel. performance, and availability. further reduction of greenhouse • It has a pathway for sustained growth in the market. Hydrogen and Methane gas emissions. • It can be transported using the existing pipeline infrastructure. Hydrogen fuel cells hold great promise as a technology able to address both climate change and energy sustainability Ethanol and Flex Fuel Vehicles (FFVs) concerns in the long term. Honda has made great advances Honda supports biomass fuel development. It has introduced in hydrogen fuel cells and in refueling solutions; however, the two models for the Brazil market capable of running on fuels sustained challenges of hydrogen storage and infrastructure containing 0 to 100 percent ethanol. It is also evaluating the will require continued effort to overcome. market for FFVs in the United States. However, the optimal use of ethanol derived from corn is in an E10 (10% ethanol) Honda Research into Renewables formulation. E10 fuel, unlike E85 (85% ethanol), does not require Honda is performing cellulosic alcohol research in a a new fueling infrastructure or specially-engineered vehicles. partnership with the Research Institute of Innovative In fact, all new gasoline-fueled Honda products are capable of Technology for the Earth (RITE). This effort has already operating with E10. In the near term, E10 can displace enough achieved a breakthrough in the process technology, petroleum to meet the Renewable Fuels Program requirements. resulting in an increased biofuel yield. We are also exploring Honda opposes all government mandates that specify particular the potential use of biogases, such as methane or hydrogen technologies as opposed to performance benchmarks, including made from biomass. Methane can be captured and mandates that manufacturers produce FFVs. burned. Hydrogen can be produced from biomass, (or as a by-product in the biofuel production process). Since the Biofuels for Diesel Applications hydrogen fuel cell vehicle has three times the fuel economy Biofuels for diesel vehicles, such as biodiesel, also have a role of a conventional gasoline-powered vehicle, the benefi t in reducing GHG emissions and in meeting our future energy per mile is greater than using alcohol in a fl ex fuel vehicle. needs. Unfortunately, there are currently no standards in Honda is also doing research on hydrogen production place for biodiesel blends in the U.S. Honda is working within from renewable solar energy and will begin solar module industry consortia to develop such standards and to promote production for residential applications this year in Japan. the availability of high-quality biodiesel for U.S. consumers. We plan to maintain a comprehensive focus on alternative Also, a new type of diesel biofuel, produced by hydrotreating fuel vehicles and promising fuels in our ongoing research. 8 Honda 2007 NORTH AMERICAN ENVIRONMENTAL REPORT 773942_1-13_Intro.inddCS2.indd3942_1-13_Intro.inddCS2.indd SSec1:8ec1:8 110/10/070/10/07 33:51:32:51:32 AMAM Our Responsibility to the Environment Environmental Management ased on our goal of being “a company that society wants to exist,” Honda has Blong viewed the preservation of our natural environment as a core management responsibility and a critical component of our long-term viability as a mobility company. Honda Environment Statement A strong commitment to the environment is at the core of the business philosophy that guides “As a responsible member of society whose task Honda’s global and North American activities. lies in the preservation of the global environment, the company will make every effort to contribute to human health and the preservation of the global environment in each phase of its corporate activity. Only in this way will we be able to promote a successful future not only for our company, but for the entire world.” ESTABLISHED AND ANNOUNCED IN JUNE 1992 We should pursue our daily business interests under the following principles: 1. 3. We will make efforts to recycle materials As both a member of the company and of We should pursue our daily business interests under theand following conserve principles: resources and energy at society, each associate will focus on the every stage of our products’ life cycle, from importance of making efforts to preserve research, design, production, and sales to human health and the global environment, service and disposal. and will do his or her part to ensure that the company as a whole acts responsibly. 2. We will make every effort to minimize and 4. fi nd appropriate methods to dispose of waste We will consider the infl uence that our and contaminants that are produced through corporate activities have on the regional the use of our products, and in every stage environment and society, and endeavor to of the life cycle of these products. improve the social standing of the company. 2007 NORTH AMERICAN ENVIRONMENTAL REPORT Honda 9 73942_1-13_Intro.inddCS2.indd Sec1:9 10/10/07 3:51:32 AM Environmental Management Environmental Management Philosophy Honda’s commitment to the environment is based not only on meeting government regulations, but also on making positive contributions beyond regulatory requirements that lead to a healthy environment for its customers and for society as a whole. his commitment is refl ected in all Honda the committee sets the directions and goals for Tproducts, technologies, and business operations. Honda’s companywide environmental efforts. To formalize this commitment, in 1995 Honda With guidance from the Environmental Committee, established a World Environmental Committee regional environmental committees set their own with the responsibility to implement the Honda goals in each of Honda’s six operational regions: Environment Statement throughout the company’s North America, South America, Europe, Asia/Oceania, global operations. In keeping with Honda’s China, and Japan. environmental philosophy and vision, North American Environmental Organization As our single largest region for automobile sales and production, Honda’s North America region plays a critical role in the company’s global environmental effort. The North American Environmental Committee is charged with fi nding ways to minimize the environmental impact of Honda’s operations in the region, which includes the United States, Canada, and Mexico. 7kjeceX_b[i FheZkYjFbWdd_d] WdZ:[l[befc[dj Fem[hIfehjiFheZkYji 9eehZ_dWj[ZXo 7c[h_YWd>edZWCejeh9e$"?dY$ Fem[h;gk_fc[dj WdZ>edZWH :7c[h_YWi Dehj^7c[h_YWd ;dl_hedc[djWb9ecc_jj[[ El[hi[[i>edZWÊi[dl_hedc[djWb[\\ehji H[YoYb_d]" ;d^WdY_d]H[YoYb_d] 7Yj_l_j_[i _dj^[K$I$"9WdWZWWdZC[n_Ye =h[[d8k_bZ_d] 9eehZ_dWj[ZXo H[ZkY_d]MWij[" >edZWÊiDehj^7c[h_YW;dl_hedc[djWb 7c[h_YWd>edZWCejeh9e$"?dY$ ;c_ii_edi";d[h]oKi[ MehbZ 9ecc_jj[[Yecfh_i[icW`eh>edZW ;dl_hedc[djWb YecfWd_[i_dj^[h[]_ed0 9ecc_jj[[ >edZWDehj^7c[h_YW"?dY$ 7c[h_YWd>edZWCejeh9e$"?dY$ >edZW9WdWZW"?dY$ H[ZkY_d]IkXijWdY[i e\9edY[hd IE9i >edZWe\7c[h_YWC\]$"?dY$ CWdk\WYjkh_d] >edZWCWdk\WYjkh_d]e\7bWXWcW"BB9 =h[[d 9ecckd_YWj_edi FheZkYj?d\ehcWj_ed 9eehZ_dWj[ZXo 7c[h_YWd>edZWCejeh9e$"?dY$ ;dl_hedc[djWb H[fehj_d] 10 Honda 2007 NORTH AMERICAN ENVIRONMENTAL REPORT 773942_1-13_Intro.inddCS2.indd3942_1-13_Intro.inddCS2.indd SSec1:10ec1:10 110/10/070/10/07 44:22:24:22:24 AMAM Environmental Management Product Development available to all interested individuals through the From the earliest stages of a new product’s company’s consumer Web site: www.honda.com. development, targets are established for such Additionally, Honda Motor Co., Inc., publishes an critical factors as vehicle weight, fuel economy, annual environmental report that focuses on and emissions performance. In virtually every area, Japan, which also includes key regional activities Honda targets best-in-class levels of performance. and a summary of global product and Each product development team is also responsible manufacturing emissions. for meeting certain corporate environmental targets, Risk Management including vehicle recyclability and reduced use of Honda considers risk management an integral part toxic substances. These goals are vigorously pursued of environmental management. Honda’s approach throughout product development, in balance with to risk management is refl ected in various activities. other key criteria, to ensure that the company is These include systems for preventing spills and meeting its commitment both to the customer releases, reducing volatile organic compounds and to society. In virtually every area (VOCs) and other air emissions, and recycling of environmental Green Buildings products and components in order to minimize performance, Honda Honda is fi nding ways throughout its North landfi ll waste. From long-term planning to daily targets best-in-class American sales, manufacturing and R&D operations operations, Honda makes efforts to understand the levels, including fuel to reduce its energy use and to increase the reuse risk of environmental damage and to make prudent effi ciency, emissions, and recycling of spent or waste materials. Honda is decisions to minimize damage wherever possible. recyclability, and reduction of toxic substances. also working to meet U.S. Green Building Council Product Recall Policy certifi cation standards for a number of its new and Honda’s policy on product recalls, including existing facilities. emissions-related recalls, is in accordance with Manufacturing the procedures of its Quality Committee, which Honda’s “Green Factory” and “Green Purchasing” is composed of senior executives from various programs in North America encompass a broad divisions of the company. The Japan-based Quality range of initiatives across all of its manufacturing Committee makes decisions about Honda products operations and its family of more than 600 North manufactured and sold throughout the world, American OEM parts suppliers. These efforts include relying upon recommendations from Honda experts continuous improvement in eliminating substances in each region. In making decisions, Honda targets of concern (SOCs) and in reducing factory emissions, best-in-class procedures, with only a few exceptions. material waste, and energy use. Each plant is responsible for pursuing its own strategies During the fi scal year ended March 31, 2007, Honda within the framework of Honda’s regional fi led one combined product update/warranty environmental initiatives. extension report, and two voluntary emission recall reports under the U.S. EPA’s Voluntary Emission Recall Communications reporting requirements. Honda is committed to transparency in reporting its progress on environmental issues in all areas Compliance with Environmental Laws of its North American operations. In 2005, the and Regulations company began publishing an annual report on Regulatory compliance is fundamental to the its environmental performance in the region, production and in-use performance of Honda which encompasses the United States, Canada, and products and operations in North America. All Mexico. This report is distributed in print form to Honda companies have systems in place to ensure policymakers, stakeholders, and environmental that their activities comply with all applicable organizations in North America. It is also made legal requirements. North American Environmental-Related Fines COMPANY BACKGROUND DATE/FINE Honda was not assessed any material environmental-related fi nes in the fi scal year ended March 31, 2007. (Material fi nes are defi ned as $100,000 or more by regulatory disclosure guidelines.) 2007 NORTH AMERICAN ENVIRONMENTAL REPORT Honda 11 73942_1-13_Intro.inddCS2.indd Sec1:11 10/10/07 3:51:33 AM Our Responsibility to the Environment LOOK FOR THIS ICON throughout Environmental Goals, Status, Commitments the report to review the company’s goals and commitments as they relate to specifi c onda is guided by the following goals and commitments to ensure ongoing areas of product and operational performance. Hprogress in the advancement of its environmental performance in North America. Honda has established Current progress toward these objectives and Honda’s key goals with regard to its commitment to future improvement are noted below products and operations. and on the following pages. CATEGORY GOAL CURRENT STATUS COMMITMENT For Additional Information: PRODUCTS Automobile Maintain top level car and truck Honda has the industry’s best Corporate Average Honda has established a voluntary goal to improve its Page 14 fl eet fuel economy among Fuel Economy (CAFE) for the model year 2006 U.S. CAFE by 5% over 2005 levels by model year 2010 the top six automakers, as vehicle fl eet (29.1 mpg for MY2006) measured by U.S. CAFE and By 2005, 100% of Honda and Acura vehicles Introduce by 2010 a vehicle or vehicles equipped Page 14 Canada CAFC employed VTEC engine technology for improved with a more advanced and effi cient version fuel effi ciency, while Honda’s Variable Cylinder of Honda i-VTEC engine technology for Management (VCM) cylinder idling technology 4-cylinder engines has been applied to the Honda Odyssey, Pilot, and Introduce in 2007 the next-generation of VCM Accord Hybrid technology with 3-, 4-, and 6-cylinder operation, on the Accord V6 Sedan and Coupe, and Odyssey Hybrid: In 2005, Honda introduced the fourth Continue to advance our hybrid technology and generation of its hybrid technology in the 2006 introduce in 2009 an all-new model sold only as Civic, with 50 mpg combined city/highway a dedicated hybrid, priced and positioned below fuel economy and increased performance and the current Civic Hybrid, with projected annual effi ciency compared with the previous-generation sales of 100,000 units in the U.S. and Canada Civic Hybrid (2002-2005) Clean diesel: No diesel engines currently offered Introduce in 2009 the next generation of Honda Page 15 in North America 4-cylinder clean diesel engine technology that EFFICIENCY will achieve U.S. EPA Tier 2 Bin 5 emissions levels without the need for on-board urea storage FUEL Fuel cell: The Honda FCX hydrogen-powered Introduce in 2008 an all-new fuel cell vehicle, based Page 19 fuel cell vehicle has over 50% effi ciency on the on the Honda FCX Concept, that uses a smaller, EPA city driving cycle, nearly three times that of a lighter fuel cell stack with higher output, for even conventional gasoline-powered car and almost greater fuel effi ciency and driving range, in a new twice the effi ciency of a gas-electric hybrid car low-fl oor sedan layout Power Sports Ongoing incremental A 27.6% improvement in global motorcycle fl eet Expand application of programmed fuel injection Page 22 Products improvement in fuel effi ciency average fuel effi ciency in FY2007 compared with (PGM-FI) on motorcycles by 2010 worldwide of motorcycle, FY1996 levels (total average in Japan, U.S., EU, ATV, and personal watercraft and Thailand) products Power Continuous improvement A 31.7% improvement in the global fl eet average Improve Power Equipment, General Purpose Page 24 Equipment in fuel effi ciency worldwide fuel economy was achieved in FY2007 versus engine, and Marine engine fuel economy of Power Equipment, FY1996, exceeding the original target of a through the development and application of General Purpose engines, 30% improvement new technology and Marine engines Automobile Continuous reduction in 100% of 2007 model year Honda and Acura Strive to meet or exceed all regulatory Page 17 emissions from automobiles automobiles meet or exceed the U.S. EPA and requirements pertaining to vehicle emissions Transport Canada Tier 2 Bin 5 emissions standards ahead of established deadlines Honda has three vehicles that are also certifi ed Broaden availability and appeal of advanced Page 17 as Advanced Technology Partial Zero Emissions technology vehicles with near-zero emissions (AT-PZEV) vehicles under California’s emissions regulations: the 2007 Accord Hybrid, Civic Hybrid and CNG-powered Civic GX The Honda FCX hydrogen-powered fuel cell vehicle Introduce in 2008 an all-new zero-emissions Page 19 is the only vehicle certifi ed by the U.S. EPA as a Zero fuel cell vehicle based on the FCX Concept Emissions Vehicle (ZEV) EMISSIONS Power Sports Continuous reduction in Cleaner, more effi cient 4-stroke engine technology Expand application of 4-stroke engine technology Page 22 Products emissions worldwide from has been integrated into all of Honda’s Power to all Power Sports products, including off-road Honda Power Sports products Sports products, with the exception of a few competition models, by model year 2008 off-road competition models Power Continuous reduction in A 39% reduction in global fl eet average HC+ NOx Continue to reduce emissions from Page 24 Equipment emissions worldwide emissions in FY2007 compared with FY1996 levels, Power Equipment, General Purpose engines, from Power Equipment, exceeding the original target of a 30% reduction, and Marine engines through development General Purpose engines, achieved in FY2001 and application of new technology and Marine engines 12 Honda 2007 NORTH AMERICAN ENVIRONMENTAL REPORT 73942_1-13_Intro_rv1.inddCS2.indSec1:12 Sec1:12 10/18/07 8:41:08 PM Environmental Goals, Status, Commitments Honda has established Current progress toward these objectives and Honda’s key goals with regard to its commitment to future improvement are noted below products and operations. and on the following pages. CATEGORY GOAL CURRENT STATUS COMMITMENT For Additional Information: MANUFACTURING ISO Certifi cation Achieve and maintain ISO14001 13 of 14 major North American plants operating Honda Precision Parts Georgia (HPPG) will be Page 30 certifi cation at each major in FY2007 were certifi ed to the ISO14001 standard certifi ed to ISO14001:2004 standards manufactur ing operation by December 2009 in North America Air Emissions Reduce releases of air pollutants VOC emissions from auto body painting Maintain average VOC emissions from auto body Page 35 operations were reduced 25% to 15.6 g/m2 painting operations at less than 20 g/m2 in FY2007, from 20.8 g/m2 in FY2006 Landfi ll Waste Achieve zero waste to landfi ll Landfi ll waste in North American was reduced Reduce total landfi ll waste by 70% from Page 33 (excluding mineral waste and 56% from FY2001 levels to 8,968 metric tons a FY2001 baseline by FY2010 FACTORY certain construction debris) in FY2007 Energy Improve manufacturing Total energy use increased about 1% in FY2007 Further reduce energy use in all North American Page 28 GREEN energy effi ciency compared to the previous fi scal year, while energy manufacturing facilities use per automobile decreased roughly 1.5% in the same period, from 6.7 to 6.6 GJ/auto CO2 emissions per automobile produced fell about Continue to track greenhouse gas emissions for Page 26 1%, from 715 kg/auto in FY2006 to 711 kg/auto in all North American assembly plants FY2007, up slightly from the FY2001 baseline of 709 kg/auto ISO Certifi cation Promote certifi cation by OEM 93% of key suppliers and 80% of all OEM Promote certifi cation of key suppliers to the new Page 37 suppliers to ISO14001 standards suppliers in North American achieved third-party ISO14001:2004 standard certifi cation to the ISO14001 standard Supply Chain Expand the use of returnable All automobile models exceeded 90% returnable Continue to increase use of returnable containers Page 37 Management containers for Honda container use manufacturing operations Enhance parts delivery logistics Reduced planned network miles by implementing Reduce vehicle miles traveled (VMT) for Page 37 PURCHASING optimal shared routing for North American shipment of parts to North American manufacturing locations manufacturing facilities WASTE MINIMIZATION Products Increase the design recyclability Every model year 2006 and newer Honda and Maintain 90% or greater design recyclability of Page 39 of automobiles in North America Acura vehicle has achieved 90% or greater design future automobiles (Honda calculation based on recyclability (Honda calculation based on JAMA JAMA standard), and 95% for Power Sports and standard) Power Equipment products Substances Reduce and, if possible, eliminate Mercury: Used only in HID headlights and for Phase out mercury in components (such as HID Page 40 of Concern (SOCs) substances of concern, including navigation and entertainment systems. Honda headlights and LCD screens) where technically mercury, lead, hexavalent maintains a closed-loop recycling process for feasible and economically practical chromium, cadmium, damaged or replaced video screens brominated substances and Lead: Eliminated lead from wheel weights Eliminate lead in steel used to produce ATV wheel Page 40 polyvinyl chlorides (PVCs) in automobile and motorcycle products and hubs and in solder used for welding electronic from machined steel, with the exception of circuit substrates, when technically feasible contaminants, and electrode deposition coatings for automobiles Hexavalent Chromium: Eliminated from paint Phase out the hexavalent chromium used Page 40 pretreatment process; phased out for 90% of in automobiles for anti-corrosion purposes North American-made OEM parts by the end of CY2007, with the exception of replacement parts Cadmium: Eliminated all but a very small amount Work with suppliers to eliminate cadmium Page 40 of cadmium used in electronic components such from components as IC chips PVC: Applying PVC-free technologies for interior Expand PVC-free technologies for remaining Page 40 and exterior parts, trim, sealants and adhesives applications wherever feasible, including elimination from underbody and weld sealer applications Brominated Substances: Phased out Assess all applications of brominated substances Page 40 all applications of penta- and octa- and continue to study opportunities to eliminate brominidephenylethers (BDE) for all products deca-BDEs Green Building Improve energy effi ciency Honda now has two facilities in North America Certify at least two new buildings to LEED-NC Page 42 and reduce the generation with LEED Gold certifi cation from the U.S. Green in FY2009, and recertify the Gresham, Oregon, of waste at Honda facilities Building Council facility from LEED-NC to LEED-EB (Existing in North America Building) 2007 NORTH AMERICAN ENVIRONMENTAL REPORT Honda 13 73942_1-13_Intro_rv1.inddCS2.indSec1:13 Sec1:13 10/16/07 11:37:07 AM Our Responsibility to the Environment Environmental Impact of Honda Products Through three major onda is reducing the environmental impact of its product segments products through continued improvements to fuel 14 - 20 H Automobiles Pages Power Sports Pages 22 - 23 effi ciency and emissions, and through real-world advancement Power Equipment Pages 24 - 25 of energy alternatives, such as natural gas and hydrogen, Honda produces, sells and services a broad array of products as well as reductions in the use of virgin materials and in North America. potentially toxic substances. Automobile: Fuel Effi ciency Environmental Goals and Commitments (SEE PAGES 12-13 FOR COMPLETE SUMMARY) CATEGORY GOAL COMMITMENT PRODUCTS Automobile Maintain top level car and truck fl eet Honda has established a voluntary goal to improve its U.S. CAFE Fuel Effi ciency fuel economy among the top six by 5% over 2005 levels by 2010 automakers, as measured by U.S. CAFE and Canada CAFC Advancing Internal Combustion Engine Effi ciency Continued improvements to the effi ciency of the internal combustion gasoline engine are critically important. The gasoline internal combustion engine will • Introduction in 2007 — on the 2008 Accord V6 remain the primary powerplant for personal Sedan and Coupe and Odyssey minivan — of next- mobility for some time to come. It has broad customer generation, Variable Cylinder Management (VCM) acceptance, and it is supported by a vast fueling technology, with 3-, 4-, and 6-cylinder modes. infrastructure. Moreover, advanced technologies • Introduction by 2010 of a more advanced version such as gas-electric hybrid powerplants still rely of Honda’s 4-cylinder i-VTEC technology, with up on gasoline. Thus, Honda believes that further to a 13 percent effi ciency increase over 2005 levels. advancements in gasoline engine effi ciency are • Further advancements in Honda hybrid technology, critically important for the immediate future and including the introduction in 2009 of a new, more that many opportunities still exist to improve the affordable family vehicle sold as a dedicated hybrid effi ciency of the internal combustion engine. vehicle, with projected annual sales of 100,000 Accordingly, the company in 2006 set for itself a units in the U.S. and Canada combined. voluntary goal to increase its already industry- • Introduction in 2009 in the United States and leading U.S. corporate average fuel economy by Canada of a vehicle or vehicles powered by the 5 percent over 2005 levels by model year 2010. next generation of Honda’s 4-cylinder clean diesel Achieving this goal will require the introduction of engine technology, which will achieve U.S. EPA even more effi cient engines. Specifi c actions being Tier 2 Bin 5 emissions levels without the need for taken for the future include: on-board urea storage. 14 Honda 2007 NORTH AMERICAN ENVIRONMENTAL REPORT 73942_14-25_Products.inddCS2.ind14 14 10/10/07 4:55:01 AM Environmental Impact of Honda Products Automobile: Fuel Effi ciency In September 2006, Honda announced the development of a new 4-cylinder clean diesel engine that reduces exhaust gas emissions to the same level as a clean gasoline engine (EPA Tier 2 Bin 5). The new diesel engine employs an innovative new lean-burn catalytic Honda’s 4-cylinder converter that makes its own ammonia to convert clean diesel engine NOx gas into harmless nitrogen, without the need for and NOx catalyst. on-board storage of urea. A vehicle equipped with Honda’s next-generation clean diesel engine technology will be launched in the United States and Canada in 2009. Honda Leads the Industry in Fuel Economy Honda has invested consistently in the K$I$9WhWdZB_]^j#JhkYa (( CO&& CO&' CO&( CO&) CO&* CO&+ CO&, CO&,_dZkijhoWl[hW][97<;lWbk[Wie\EYjeX[h'"(&&-$ 9WdWZ_Wd9WhWdZB_]^j#JhkYa JhWdifehj9WdWZWYWbYkbWj[iÇ\k[bYedikcfj_edÈXWi[Zedj^[Wcekdje\\k[bYedikc[Zf[ha_bec[j[hjhWl[b[Z$ JhWdifehj9WdWZWZe[idej_iik[WYecX_d[ZdkcX[h\ehYWhiWdZb_]^jjhkYai$J^[YecX_d[ZYWhWdZb_]^jjhkYa\k[b Yedikcfj_eddkcX[hih[fehj[ZX[bemm[h[YWbYkbWj[ZXo>edZWki_d]JhWdifehj9WdWZWYWhWdZb_]^jjhkYa97<9h[ikbji Wbed]m_j^WlW_bWXb[YWb[dZWho[WhiWb[iZWjW$ '& AC /$) /$( /$( '&& /$& /$& .$/ / .$, ?dZkijho7l[hW][ . -$, -$* -$+ -$+ -$* -$* -$) - >edZW%7YkhW CEH; 7jj^[j_c[e\fkXb_YWj_ed"(&&,ceZ[bo[Wh97<9ZWjW^WZdejX[[d\_dWb_p[Z\ehWdocWdk\WYjkh[h$ 2007 NORTH AMERICAN ENVIRONMENTAL REPORT Honda 15 73942_14-25_Products_rv1.inddCS215 15 10/16/07 11:38:54 AM Environmental Impact of Honda Products Automobile: Fuel Effi ciency Leading Environmental Groups Rate Honda Products Independent studies play an important role in measuring automakers’ environmental performance. UCS Ranks Honda as “Greenest Automaker” for Fourth Consecutive Time The Union of Concerned Scientists (UCS) issued its biennial report of automakers’ environmental ACEEE Study The American Council for an Energy-Effi cient The natural gas-powered Civic GX earned the Economy (ACEEE) released its environmental scorings highest score in the 2007 study. It was joined by the of model year 2007 cars and trucks, an annual rating three other Honda models in the ACEEE’s top-12 list based on a single “green score” that incorporates of “greenest vehicles” for 2007. They are the gasoline tailpipe emissions and GHG emissions over the full and hybrid versions of Civic and the Fit small car. product life cycle. THE GREENEST VEHICLES OF 2007 Honda places 4 vehicles in American Council for Energy Effi cient Economy (ACEEE) top 12 vehicle rankings RANKING MAKE AND MODEL SPECIFICATIONS EMISSION STANDARD FUEL ECONOMY CITY FUEL ECONOMY HIGHWAY GREEN SCORE 1 Honda Civic GX 1.8L 4, auto (CNG) Tier 2 Bin 2/PZEV 28 39 57 3 Honda Civic Hybrid 1.3L 3, auto CVT Tier 2 Bin 2/PZEV 49 51 53 8 Honda Fit 1.5L 4, manual Tier 2 Bin 5/LEVII 33 38 45 12 Honda Civic 1.8L 4, auto Tier 2 Bin 5/ULEVII 30 40 44 Green score is based on well-to-wheel greenhouse gas and pollution. A higher score is better. Natural Resources Canada In 2007, Honda earned two awards from Natural Resources Canada (NRCan) for the environmental performance of its products. The Honda Civic was recognized as the most fuel-effi cient car in the compact class, and the Fit won an award in the station wagon class. These awards are further examples of the “Honda Benefi t,” which allows customers to enjoy a good balance of green, safe and fun. 16 Honda 2007 NORTH AMERICAN ENVIRONMENTAL REPORT 73942_14-25_Products.inddCS2.ind16 16 10/10/07 4:55:02 AM Environmental Impact of Honda Products Automobile: Emissions Environmental Goals and Commitments (SEE PAGES 12-13 FOR COMPLETE SUMMARY) CATEGORY GOAL COMMITMENT PRODUCTS Automobile Continuous reduction in Strive to meet or exceed all regulatory requirements pertaining to vehicle Emissions emissions from automobiles emissions ahead of established deadlines Broaden availability and appeal of advanced technology vehicles with near-zero emissions Introduce in 2008 an all-new zero-emissions fuel cell vehicle based on the FCX Concept Leading in Automobile Emissions Performance For model year 2007, every Honda and Acura vehicle sold in the United States and Canada has been certifi ed to Tier 2 Bin 5 or better U.S. EPA emissions standards. Honda has consistently led the automobile The chart at left applies industry in meeting and exceeding vehicle >edZW;Whbo9ecfb_WdY[m_j^J_[h(IjWdZWhZi to vehicles of less than 6,000 pounds exhaust emissions standards. //$/ '&& '&& gross vehicle weight -/$, Every U.S. Honda and Acura vehicle sold in the .& -+ (GVW). Light trucks United States and in Canada meets or exceeds the greater than 6,000 ,& +.$) U.S. EPA’s stringent Tier 2 Bin 5 emissions standard, +'$* +& pounds GVW have a later phase-in period. and each model is certifi ed in all 50 U.S. states. *& F>7I;?D (+ The Honda Ridgeline Due to the diffi cult nature of this standard, (& ',$' pickup truck met the H;GK?H;C;DJ requirement in 2006, automakers are permitted to meet the standards & three years ahead using fl eet-wide average. All Honda and Acura CO&( CO&) CO&* CO&+ CO&, CO&- F[hY[djW][e\>edZW Honda Low-emission Classifi cation in Mexico ll new Honda and Acura cars sold in Five Honda models and one Acura certifi ed as Double Zero (00) for up to A Mexico have been classifi ed as Double model — Accord, Civic IMA, Civic four years, with recertifi cations every Zero (00) in Mexico City’s Hoy No Circula Si, Civic, CR-V and Acura TL — were two years. The Honda Odyssey and emissions control program. The Double classifi ed Double Zero (00) for up to Acura MDX were certifi ed for a single Zero classifi cation is given to vehicles six years with only three required period of two years. Many new models certifi ed as having low NOx emissions and recertifi cations. Three additional from other automakers received a high city fuel effi ciency. Vehicles meeting Hondas and two Acuras — Fit, Ridgeline, Single Zero (0) classifi cation, and so this standard may be driven in Mexico City Pilot, Acura RL and Acura RDX — were must be retested every six months. and its suburbs without restriction. classifi ed in the next highest category, Honda has also led in Near-zero Emissions Advanced Vehicle Technology Honda introduced the fi rst car to earn The 2007 Civic Hybrid California’s Air Resources Board (CARB) (shown here) and the Advanced Technology Partial Zero-Emission 2007 Accord Hybrid Vehicle (AT-PZEV) certifi cation — the 2002 natural carry both AT-PZEV and gas-powered Civic GX. For the 2007 model year, Tier 2 Bin 2 emissions certifi cations. They are Honda has three vehicles — more than any other also both sold in all automaker — that have earned the AT-PZEV rating: 50 states with the the Civic Hybrid, the Civic GX, and the Honda same specifi cations. Accord Hybrid. 2007 NORTH AMERICAN ENVIRONMENTAL REPORT Honda 17 73942_14-25_Products.inddCS2.ind17 17 10/10/07 4:55:03 AM Environmental Impact of Honda Products Automobile: Alternative Fuels Continued Advancement of the CNG-Powered Honda Civic GX Increasing the performance and effi ciency of the near-zero emissions Civic GX. The Honda Civic GX, now in its third generation, customer for the FCX fuel cell vehicle was selected illustrates the potential for compressed natural gas from its existing base of Civic GX customers, whose (CNG) to be a viable near-term alternative to gasoline experience as early adopters of CNG made them good as a mainstream transportation fuel. CNG offers candidates for the early deployment of hydrogen power. multiple benefi ts, including: Three generations of Civic GX • A 25 percent reduction in CO2 emissions (on a gallon equivalent basis). Honda has advanced its CNG technology through three generations of the Civic GX. • Near-zero emissions — the Civic GX qualifi es as an AT-PZEV and is powered by the cleanest internal • For the fi rst generation Civic GX, introduced in combustion engine and fuel system ever certifi ed 1998, Honda developed a natural gas vehicle with by the U.S. EPA. durable components and suffi cient range for CNG fl eet applications. • Widespread distribution — more than 50 percent of American households are supplied with • In the redesigned 2001 model, the powertrain was natural gas. further improved, making the Civic GX the fi rst passenger car in the world to meet California’s ZEV • Home refueling cost savings and convenience — regulation as an AT-PZEV vehicle. using PhillTM, the home refueling appliance developed by Honda and Fuelmaker Corp., • Both the power and the fuel effi ciency of the consumers realize the benefi t of home refueling third-generation Civic GX, introduced in 2006, at a signifi cantly reduced cost — as little as one-half are increased by new powertrain technologies. to one-third that of gasoline (on a gallon-equivalent Through increased engine displacement, Honda basis). VTEC valvetrain technology, and a variable-length air intake, the 2006 Civic delivers a 13 percent • Multiple economic benefi ts for the user — including increase in power and a 5 percent increase in local, state and federal tax incentives and, in engine effi ciency. Despite the increased weight California, single-occupant access to HOV lanes. of the larger vehicle and its added standard Moreover, Honda believes that the application of safety features, the 2007 Civic GX also delivers a CNG in the market can play a critical role in bridging 15 percent increase in fuel economy on the Federal the gap between gasoline and alternatives such as Test Procedure (FTP) highway mode, extending the hydrogen, providing a mechanism for industry and vehicle’s commuting range. government to gain a greater understanding of the With its demonstrated near-zero emissions challenges and opportunities associated with gaseous performance, the 2006 Civic GX is also certifi ed as an fuels, and introducing consumers to the potential AT-PZEV by CARB, and as a Bin 2 ILEV (Inherently Low benefi ts of alternative fuels. In fact, Honda’s fi rst retail Emission Vehicle) by the U.S. EPA. In 2005, Honda began marketing the are more prevalent in California than Civic GX and the Phill home refueling in most regions of the U.S., almost appliance to retail customers in half of Civic GX retail customers California. Sales of the Civic GX to have purchased or leased the Phill™ retail customers, by 34 specially home refueling appliance, available trained Honda dealers in California, from FuelMaker Corporation, now exceed sales to fl eet customers. adding convenience to their vehicle Early customer reports indicate very ownership experience and realizing high satisfaction levels, although the additional fuel cost savings. In 2006, number of early adopters remains Honda further expanded its Civic GX relatively small given the scarcity and Phill marketing efforts with the of public CNG fueling stations. addition of 20 Honda dealers in Although CNG fueling opportunities New York state. 18 Honda 2007 NORTH AMERICAN ENVIRONMENTAL REPORT 73942_14-25_Products.inddCS2.ind18 18 10/10/07 4:55:04 AM Environmental Impact of Honda Products Automobile: Alternative Fuels Hydrogen Fuel Cell Vehicle Technology Possibly the ultimate solution to the world’s energy and environmental challenges. Believing that hydrogen power potentially represents technology, with no harmful exhaust emissions. the ultimate solution to energy and environmental In addition to its effi ciency and emissions benefi ts, challenges, Honda has advanced its hydrogen fuel hydrogen power has the advantage of greatly cell vehicle (FCV) technology though four generations increased energy diversity — with natural gas, of prototype vehicles and several generations of biofuels and renewables such as solar and wind as production models. Honda focuses on overcoming potential energy sources. barriers to market acceptance by doing original Despite these potential benefi ts, several signifi cant technology research and development, and through barriers remain to hydrogen’s viability as a early deployment of its technology with real mainstream alternative to gasoline. These include customers in the real world. Through these efforts, the cost of the technology and the absence of a Honda has made considerable progress in the broad-based hydrogen refueling solution. With these total performance and market appeal of its fuel remaining barriers squarely in its sights, Honda cell technology. continues to invest in the advancement of both the With respect to effi ciency, Honda’s existing FCV vehicle and the refueling technology as we seek to technology delivers almost twice the tank-to-wheel broaden the fuel cell vehicle’s market potential. fuel effi ciency of its current gasoline-electric hybrid Next-Generation Honda Fuel Cell Vehicle Technology New Honda fuel cell technology signifi cantly advances the performance and appeal of hydrogen power. he next generation of THonda fuel cell vehicle represents a signifi cant step forward, delivering performance on par with a gasoline-powered vehicle (in the 2.0- to 2.4-liter engine class). Compared to the current FCX, it has greater range, power, effi ciency, interior space, and improved cold-weather operation, along with new more appealing Coaxial motor-gearbox V Flow fuel cell stack Lithium-ion High-pressure packaging and style. drive train (center tunnel layout) battery hydrogen tank In October 2005, Honda unveiled a concept version The Honda V Flow stack maximum power is reduced matches a gas-electric hybrid of its new fuel cell vehicle, is a signifi cant improvement by 75 percent. The system power plant in weight and slated for limited market over the Honda FC Stack. is designed to start-up at size. It offers a signifi cant introduction to fl eet and Power/volume density is temperatures below -20°F improvement in mid- to retail customers in the United improved by 50 percent (compared to -4°F on the high-speed acceleration and States and Japan beginning and power/weight density existing model). At the a 30 percent improvement in in 2008. Its core development is improved by 67 percent. same time, output was range, to about 270 miles. concepts are distinctive The new V Flow structure improved by 16 percent, and The FCX Concept has styling, advanced structure, takes advantage of gravity to size and weight reduced by a maximum speed of 100 and smooth driving with effi ciently discharge water 21 percent and by 30 percent, mph. Fuel cell stack output is superior torque. The FCX formed during electricity respectively, compared with 100 kW and maximum motor Concept is a spacious sedan generation, improving the 2003 Honda FC stack. output is 95 kW (127 hp). on a distinctive low fl oor performance in subzero The FCX Concept’s fuel Energy storage is achieved design, made possible by an temperatures with increased cell powertrain generates using a lithium-ion battery, innovative and compact new system reliability. When more power than the current and hydrogen is stored in a Honda-developed V Flow fuel starting at -4°F (-20 C), its FCX and features a coaxial 171-liter tank at 5,000 psi. cell stack. time to reach 50 percent of motor-gearbox that nearly 2007 NORTH AMERICAN ENVIRONMENTAL REPORT Honda 19 73942_14-25_Products.inddCS2.ind19 19 10/10/07 10:02:41 AM Environmental Impact of Honda Products Automobile: Hydrogen Fueling Infrastructure Working To Solve the Challenge of Hydrogen Refueling Honda’s commitment to advancing alternatives such as the fuel cell is comprehensive, focusing not only on vehicle development, but also on a small-scale hydrogen infrastructure solution. One approach to hydrogen refueling is the Home Additionally, hydrogen storage and production Energy Station concept, which uses natural gas capacity are improved by about 50 percent with the to provide electricity and heat for a home while new high-performance natural gas reformer. Natural producing hydrogen fuel for a vehicle. The result is gas is reformed to generate hydrogen for vehicle a total effi ciency improvement. A second approach use. At the same time, some of hydrogen is sent to a is renewable hydrogen production through Honda’s fuel cell inside the unit to generate electricity for the own solar panel technology. home. Heat, which is a byproduct of the electricity production process, is also captured and used. These Home Energy Station energy devices, taking advantage of an integrated The third generation of Honda’s experimental Home energy management system, connect to the public Energy Station is about 30 percent smaller than its utility grid, the home, and the vehicle, producing predecessor, yet it provides a 25 percent increase in an environmental and energy effi ciency benefi t electrical power output and a faster start-up time. for all three. Renewable Hydrogen Station Using Honda CIGS Solar Panel Technology onda fi rst established its own In this case, “system effi ciency” refers to The solar panels on this station are Hsolar-powered hydrogen refueling total effi ciency, from the power output made of CIGS (copper, indium, gallium station in 2001, at its Torrance, California, of the photovoltaic modules to the and selenide) — a thin fi lm compound, campus. The station uses photovoltaic production and storage of hydrogen, developed by Honda, that reduces by half solar panels to produce electricity, including compression. This system can the energy and CO2 emissions required which is fed to a Honda-developed also utilize grid electricity when solar for their manufacture — compared to polymer electrolyte membrane (PEM) radiation is not available. On grid power, conventional silicon type solar panels. electrolyzer that generates hydrogen system effi ciency increases to more Honda is building a new plant in Japan that can be compressed, stored, and than 65 percent — comparable to an to begin mass production of the CIGS dispensed to the fuel cell vehicle. existing large-scale and centralized solar cells in the fall of 2007. It will have Data from this station have shown hydrogen production site. This suggests a projected annual production capacity that system effi ciency is more than the future possibility of a small-scale of 27.5 megawatts. 50 percent and GHG output is zero. hydrogen refueling system. 20 Honda 2007 NORTH AMERICAN ENVIRONMENTAL REPORT 73942_14-25_Products.inddCS2.ind20 20 10/10/07 4:55:06 AM Environmental Impact of Honda Products HondaJet: Taking Honda Mobility and Effi ciency to the Skies Honda Brings Higher Effi ciency to Light Jet Market HondaJet, our fi rst entry into the growing light business jet market, represents a signifi cant new era for Honda mobility. It carries with it the hallmark of Honda’s leadership in advancing technology for improved effi ciency and performance. Honda’s new advanced light jet, HondaJet, achieves 30 to 35 percent higher fuel effi ciency than jets of comparable performance. onda began selling the $3.65 million HondaJet in October, defi ned for the business jet class, Honda’s goal is to meet H2006, a little more than three years after its public debut or exceed all anticipated future standards. in July 2003. Honda’s fi rst ever commercialized aircraft brings Employing a carbon composite fuselage, natural with it a series of innovative new concepts in aircraft design laminar fl ow wing and nose, and a patented over-the-wing that not only deliver a more spacious cabin and class-topping engine-mount (OTWEM) confi guration, HondaJet exhibits cruise speed, but also allow HondaJet to achieve substantially less aerodynamic drag at high speeds than conventional higher cruising fuel effi ciency — as much as 30-35 percent “clean wing” aircraft, resulting in improved performance and higher than other light jets of comparable performance. cruising fuel effi ciency. Deliveries of HondaJet to customers Although environmental standards have not been fully are scheduled to begin in 2010. Honda and GE Join Forces on Development of Advanced and Effi cient Jet Engines wo of the world’s largest Engine Emissions HondaJet’s operating and most respected At present, the International T effi ciency is further names in propulsion Civil Aviation Organization enhanced by its twin joined together in 2004 to (ICAO) emissions standards GE-Honda HF120 design and manufacture cover carbon monoxide (CO), turbofan engines, advanced engines for the oxides of nitrogen (NOx) which are designed to next generation of very light and hydrocarbons (HC), for reduce fuel consumption, True to Honda’s jets. Their fi rst product, the engines of 6,000 or more minimize emissions and legacy of innovative GE Honda HF120 turbofan, pounds of thrust. There lower noise. and effi cient engine is a higher-thrust successor are currently no emission technology, the GE to Honda’s original HF118 regulations for small aircraft. Honda HF120 comes prototype engine. The HF120 HF118 engine, which has manufacture of jet engines. As small engine aircraft to market with higher has been selected to power powered the prototype True to Honda’s legacy of become more popular in the fuel effi ciency and two of the most advanced HondaJet since its fi rst fl ight innovative and effi cient future, the range of aircraft lower emissions than new light jets — the in December 2003. GE and engine technology, the covered by the standards will its rivals, and the HondaJet and Spectrum Honda’s collaboration on the GE Honda HF120 comes be expanded. GE Honda Aero quietest operation Aviation’s Freedom HF120, which began in early to market with higher expects that the HF120 will in its thrust class. business jet. 2005, combined Honda’s fuel effi ciency and lower surpass anticipated future Honda research on jet original small turbofan emissions than its rivals, ICAO standards by as much engine technology, which engine technology and and the quietest operation as 20 percent. started in 1986, culminated GE’s 60 years of experience in its thrust class. in the development of the in the development and 2007 NORTH AMERICAN ENVIRONMENTAL REPORT Honda 21 73942_14-25_Products_rv1.inddCS221 21 10/16/07 11:43:19 AM Environmental Impact of Honda Products Power Sports Products Environmental Goals and Commitments (SEE PAGES 12-13 FOR COMPLETE SUMMARY) CATEGORY GOAL COMMITMENT PRODUCTS Power Sports Products Ongoing incremental improvement Expand application of programmed fuel injection (PGM-FI) on motorcycles Fuel Effi ciency in fuel effi ciency worldwide of by 2010 motorcycle, ATV, and personal watercraft products Power Sports Products Continuous reduction in emissions Expand application of 4-stroke engine technology to all Power Sports products, Emissions worldwide from Power Sports products including off-road competition models, by model year 2008 onda strives to balance the demands of its motorcycle, ATV and personal Hwatercraft customers, who typically seek greater performance, with society’s need for higher fuel effi ciency, further emissions reductions, and reduced use of toxic materials. Improving Fuel Effi ciency Global fl eet average fuel economy of Honda motorcycles has increased signifi cantly since FY1996. Through improved design and the advancement of engine technology, Honda achieved a 27.6 percent >edZW=beXWb due mainly to the increased sales of motorcycles ''& equipped with automatic transmissions in Thailand. F[hY[djW][ '&& The increased use of electronic fuel injection in /& Honda power sports products, particularly in on-highway motorcycles, provides the potential ?dYbkZ[ijejWbWl[hW][\k[b[\\_Y_[dYo\ehcejehYoYb[iiebZ_d@WfWd" for further increases in real-world fuel effi ciency j^[Kd_j[ZIjWj[i"j^[;khef[WdKd_ed"WdZJ^W_bWdZ$ as well as reduced fuel vapor emissions. Improving Emissions Cleaner, quieter and more effi cient 4-stroke engine technology has been applied to virtually all Honda power sports products. All Honda motorcycles, motor scooters, and off-road to circumvent emissions and exhaust sound control recreational vehicles sold in North America, with the systems in an attempt to realize higher performance. exception of a few competition off-road motorcycles, Honda certifi ed a total of 48 motorcycle and ATV are powered by 4-stroke engines. Honda’s 4-stroke engine families for the 2007 model year. Eight of expertise results in products that conform to noise these engine families were certifi ed at or below and emission standards without compromising California Class III Tier 2 emissions standards. They the customer’s expectations for performance. had emissions levels ranging from 0.3 to 1.2 grams Honda’s excellent and sustainable out-of-the-box per kilometer HC+NOx. performance typically gives owners little incentive 22 Honda 2007 NORTH AMERICAN ENVIRONMENTAL REPORT 73942_14-25_Products.inddCS2.ind22 22 10/10/07 4:55:16 AM Environmental Impact of Honda Products Power Sports Products (&&+7l[hW][CejehYoYb[;c_ii_edi>9"9E"9E( >edZWCejehYoYb[>9;c_ii_edi '&& '*& ?? 9bWii ??? '(& )& '&& (+ .& =%AC ,& (& *& >9;c_ii_edi '+ (& BEM;H ;C?II?EDI & '& ?dZkijho >edZW ?dZkijho >edZW • For the 2006 model year, 15 of the 19 Honda models IN FACT Honda has consistently reduced hydrocarbon sold in California (79 percent versus 51 percent for (HC) emissions from its motorcycle fl eet. Using the industry overall) were certifi ed to emissions FY1996 as a baseline, the company has reduced HC levels at or less than the on-highway Class III Tier 2 emissions 77.4 percent. standards. In addition to 4-stroke engine use, Honda will be • Average emissions for Tier 2-certifi ed models were applying programmed fuel-injection technology 0.52 g/km, among the best in the industry. (PGM-FI) to most of its worldwide power sports fl eet • Honda’s corporate fl eet average for California- between now and 2010. certifi ed Class III motorcycles was slightly below the Tier 2 standard of 0.80 g/km at 0.79 g/km HC+NOx. Encouraging Responsible Use of Public Lands Recognizing that the access most riders have to designated off-road riding areas is a privilege, Honda works to educate its customers on responsible use of its products for human safety and environmental protection. onda contributes to organizations such as the National The centers are made available to local schools and youth HOff-Highway Vehicle Conservation Council and Tread groups, such as the Girl Scouts, with the hope that surrounding Lightly, which seek to educate riders about designated trail communities can use them as a resource to help educate use and responsible riding. future generations about the environment. Our plans call for a fourth ELC in Troy, Ohio. Honda Environmental Learning Centers (ELCs) In addition to its own direct Honda Environmental Learning Centers, the only centers of educational programs, their kind in the industry, are an expansion of the four Honda Honda has partnered with Rider Education Centers (RECs) established more than 15 years numerous industry groups, ago in Dallas, Atlanta, Los Angeles, and Troy, Ohio. In addition government agencies, and to safety training, Honda’s learning centers teach responsible leaders from the recreation land use and respect for the ecosystems that surround many and environmental off-highway vehicle trails. A nature walk and trail walk have communities to fi nd become part of the curriculum taught by dirt-bike and ATV solutions that permit instructors as part of Honda’s efforts to educate students responsible use of motorized about the importance of responsible riding. recreation while protecting At the Atlanta facility, Honda has partnered with the America’s treasured Audubon Society to draw attention to local bird species and natural resources. their habitats. The Los Angeles center has a partnership with the San Bernardino National Forest to reach out to local schoolchildren who live far from the forest. Students there take a nature walk and follow a curriculum developed by SBNF’s Children’s Forest Program. In May 2007, Honda offi cially opened its third ELC as an extension to its Irving, Texas, facility. 2007 NORTH AMERICAN ENVIRONMENTAL REPORT Honda 23 73942_14-25_Products.inddCS2.ind23 23 10/10/07 4:55:17 AM Environmental Impact of Honda Products Power Equipment Environmental Goals and Commitments (SEE PAGES 12-13 FOR COMPLETE SUMMARY) CATEGORY GOAL COMMITMENT PRODUCTS Power Equipment Continuous improvement in fuel Improve Power Equipment, General Purpose engine, and Marine engine fuel Fuel Effi ciency effi ciency worldwide of Power economy through the development and application of new technology Equipment, General Purpose engines, and Marine engines Power Equipment Continuous reduction in emissions Continue to reduce emissions from Power Equipment, General Purpose Emissions worldwide from Power Equipment , engines, and Marine engines through development and application of General Purpose engines, and Marine new technology engines onda has long been committed to improving the fuel economy and emissions Hperformance of its power equipment products, which includes lawn and garden equipment, generators, general purpose engines and outboard marine engines. The company has led the industry in the application of overhead valve (OHV) 4-stroke engine technology, which has been applied to all of Honda’s power equipment, outboard marine, and general purpose engines for a long time. In addition, the company has exceeded its internal goals for improvements in fuel economy and emissions performance and is committed to further advancements in its environmental performance. Fuel Effi ciency and Emissions Improvements Honda has worked to improve the fuel effi ciency and emissions of its comprehensive global power equipment product lineup. In 1999, the company established a voluntary improved in FY2007 to 31.7 percent over the goal to improve the average fuel effi ciency FY1996 baseline. and the exhaust emissions (HC + NOx) of its The company also achieved its goal of a global power equipment fl eet by 30 percent 30 percent reduction in the average emissions over FY1996 levels by FY2006. of its global power equipment fl eet in FY2002, The company exceeded its target for fuel four years ahead of schedule. In FY2007, effi ciency with a 31 percent improvement emissions were maintained at the FY2006 by FY2006. The average fuel effi ciency of its levels, 39 percent below the FY1996 baseline. global power equipment fl eet was further Fem[h;gk_fc[dj0?cfhel[c[dj?dFPO Fem[h;gk_fc[dj0H[ZkYj_ed 7l[hW][ 7L;H7=; 24 Honda 2007 NORTH AMERICAN ENVIRONMENTAL REPORT 73942_14-25_Products.inddCS2.ind24 24 10/10/07 4:55:19 AM Environmental Impact of Honda Products Power Equipment Going Beyond Emissions Regulations Honda has adopted California emissions standards for most general purpose engines sold in the 50 U.S. States and Canada. General purpose engines and the equipment they general purpose engines (1.5 million produced power are regulated by both the U.S. EPA and in North Carolina) sold throughout the United California’s Air Resources Board (CARB). Currently, States and Canada in 2006 conformed to the California regulations are more stringent and include more stringent California standards. evaporative emissions control of small engine- Honda is also working constructively with the powered products. EPA in an effort to help determine the next IN FACT Based on Honda’s commitment to protecting regulatory level of emission reduction for the the environment, the vast majority of the 2.3 million United States. Honda’s iGX general purpose engine performs to stringent California emissions standards. It Reducing CO2 Emissions from Home Heating employs an intelligent Honda begins sales of freewatt™ micro co-generation engine control system combined heat and power (MCHP) system. that can vary engine speeds according to load requirements, reducing fuel In 2005, American Honda Motor Co., Inc. and Climate curb carbon dioxide emissions while improving consumption and noise. Energy LLC announced their collaboration on the overall energy effi ciency and comfort. Test data development of an innovative new residential from Climate Energy have shown that when the home heating system — an appliance that lets U.S. freewatt system replaces a typical 80 percent homeowners create electricity from the energy they effi ciency home heating system, homeowners already use to heat their homes. In April 2007, the can realize an average of 30 percent energy cost two companies began retail sales of the system, savings and a corresponding 30 percent reduction called freewatt, in the northeastern United States. in CO2 emissions. In certain states, net metering The ultra-quiet MCHP unit produces 3.26 kilowatts allows homeowners to sell unused electric power of heat and 1.2 kilowatts of electric power, which to their community’s power grid, which yields allows homeowners to reduce their utility bills and additional savings. The freewatt micro heat and power cogenerator produces electric power as a byproduct of its heating function. The electric power it produces displaces electricity that consumers would otherwise have to purchase from their local electric utility, reducing CO2 emissions and saving homeowners $500 to $1,000 per year on their electric bills. 2007 NORTH AMERICAN ENVIRONMENTAL REPORT Honda 25 773942_14-25_Products.inddCS2.ind253942_14-25_Products.inddCS2.ind25 2255 110/10/070/10/07 44:55:20:55:20 AMAM Our Responsibility to the Environment Environmental Impact of Honda Manufacturing hrough its “Green Factory” initiative, Honda is working to reduce the environmental Timpact of its manufacturing activities, including ongoing efforts to reduce energy use, water use, generation of waste materials, and CO2 and air emissions. Through its “Green Purchasing” program, the company is also encouraging its more than 600 North American original-equipment suppliers to adopt similar practices. Environmental Goals and Commitments (SEE PAGES 12-13 FOR COMPLETE SUMMARY) CATEGORY GOAL COMMITMENT MANUFACTURING Energy Improve manufacturing Continue to track greenhouse gas emissions for all North American Green Factory energy effi ciency assembly plants CO2 Emissions from Manufacturing Efforts to reduce CO2 emissions from manufacturing focus on cutting CO2 emissions intensity (emissions per unit of production), primarily through reduced consumption of purchased electricity and natural gas. Recent increases in total CO2 emissions Dehj^7c[h_YWd9E(;c_ii_edi IekhY[ie\D7CWdk\WYjkh_d]9E(;c_ii_edi from electricity and ;b[Yjh_Y_joWdZDWjkhWb=WiEdbo natural gas have '$+& '&&& occurred as a result of Ej^[h A=%7KJE ]Wieb_d["Yea["a[hei[d[ C?BB?ED ' volumes, and further -+, -,' .&& -(- -'+ insourcing of '$&& -&/ -'* -'' DWjkhWb=Wi(, powertrain components -&& &$-+ and other processes. ,&& &$-. &$.* &$/, '$&' '$&+ '$&- &$/* C;JH?9JEDIn &$+& +&& ;b[Yjh_Y_jo-& D7JEJ7BC;JH?9JEDI 8Wi[Zed CO2 emissions from electricity and natural gas use at More than 96 percent of the CO2 emissions from Honda’s North American manufacturing operations manufacturing operations result from electricity increased about 37 percent in FY2007 from the FY2001 use and natural gas combustion. Electricity is baseline. This increase was attributable in large part used for automation, plant lighting, motors and to increased production volume and the insourcing compressors, and cooling. Natural gas is used of powertrain parts production and other processes. for heating and conditioning fresh air, for Average CO2 emissions per unit of automobile manufacturing processes such as melt production increased slightly from 709 to 711 kg in furnaces, and paint bake ovens, and for air the same time period. However, average per-auto CO2 emissions control equipment. emissions have fallen signifi cantly from a seven-year Less than 4 percent of CO emissions from North high of 761 kg in FY2005. This decrease is attributable 2 American manufacturing activities result from to ongoing energy-reduction efforts and more the combustion of fuels other than natural gas. effi cient utilization of available production capacity. Honda’s North American manufacturing operations track its CO2 emissions from fuel combustion and process uses in accordance with guidelines published in The Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard, revised edition. In Canada, emissions are tracked in accordance with the Canadian GHG Challenge Registry Guide to Entity and Facility-based Reporting, Version 5.0, April 2007. In the United States, CO2 emissions are calculated in accordance with the 1605(b) voluntary guidelines. In Mexico, Honda participates in the Proyecto Gases Efecto Invernado (GEI Project Mexico) to track CO2 emissions. 26 Honda 2007 NORTH AMERICAN ENVIRONMENTAL REPORT 73942_26-37_Mfg.inddCS2.indd 26 10/10/07 6:00:10 AM Environmental Impact of Honda Manufacturing Green Expansion In keeping with its glocalization initiative, and to meet growing demand for its automobiles in the region, Honda is expanding its North American manufacturing capabilities, while continuing to seek ways of reducing its total environmental impact. n FY2007, the company Energy-saving initiatives Some machining The expansion of Honda’s Iundertook numerous used in the expansion of the operations are using more Lincoln, Alabama, plant expansion initiatives. These Russels Point transmission environmentally friendly involved a ground-up effort to included a 150,000-sq.-ft. plant included: hydraulic units with smaller reduce energy use, including Honda encourages its associates to seek out ways expansion of its Lincoln, • Use of variable-speed tanks, which lessens the need the following initiatives: to improve the effi ciency Alabama, auto and drives on chilled and cooling for hydraulic oil. The units are • The use of more and environmental engine plant for increased water pumps inverter driven, which allows effi cient space heaters, production of certain engine for variations in pump speed performance of its • Air conditioning units where possible components, and the addition according to requirements. manufacturing operations. designed to use chilled • Restroom lights controlled of automatic transmission Since oil is not being water, instead of compressor by motion sensors gear production at its Russells constantly circulated, there is style rooftop units Point, Ohio, transmission no need for additional chilling • Zoned lighting and plant. The company also • Rooftop air conditioning to keep oil temperatures cool. waterless urinals added production of two units with economizer These improvements allow • Infrared sensors for new light truck models — dampers to allow use the units to use less energy wash sinks the Honda CR-V and the of cooler outside air and to run more quietly. • Insulation and siding Acura RDX — to its U.S. when possible containing recycled factories in fi scal 2007. • Water-cooled chillers materials instead of air- cooled chillers • Use of paints with • Use of modulating air low VOC levels compressors Automobile, Power Sports, and Power Equipment Production in North America 7kjeceX_b[FheZkYj_edJejWbi Fem[hIfehjiFheZkYjiFheZkYj_edJejWbi &$+ '$+ '$*) '$*& &$* '$* &$*' &$). &$). '$)/ &$), &$), &$), '$)- Even as Honda C?BB?EDI &$) '$) '$(. &$)( '$(+ expands the number and variety of the '$'/ '$( '$() '$(* &$( products it produces C?BB?EDI '$' '$&* environmental impact Power Equipment Production Totals '$&- of these activities. '$&* '$&* '$& '$&( '$&' '$&' ($+ &$/* &$/ &$/) ($& ($(/ ($'& '$/, &$.- '$+ '$,& &$. '$*, 2007 NORTH AMERICAN ENVIRONMENTAL REPORT Honda 27 73942_26-37_Mfg.inddCS2.indd 27 10/10/07 5:50:51 AM Environmental Impact of Honda Manufacturing Environmental Goals and Commitments (SEE PAGES 12-13 FOR COMPLETE SUMMARY) CATEGORY GOAL COMMITMENT MANUFACTURING Energy Improve manufacturing Further reduce energy use in all North American manufacturing facilities Green Factory energy effi ciency Energy Conservation Increased energy effi ciency is the central component of Honda’s drive to reduce the CO2 emissions intensity of its product manufacturing. Dehj^7c[h_YWdCWdk\WYjkh_d]0JejWb;d[h]oKi[ Energy Star Awards Honda Plants are Recognized for '( . ,$/ -$( -$' ,$. ,$- ,$- ,$, Industry-leading Effi ciency '& , . =@%7KJE , * * =@n'C?BB?ED ( ( -$,' -$-, .$.( /$*) /$-) /$.) /$&/ \ & & JEJ7B;D;H=OKI; JEJ7B;D;H=OKI;:F;H7KJEFHE:K9;: JejWb[d[h]oki[ [b[Yjh_Y_joWdZdWjkhWb]Wi _dYbkZ[iWbb Dehj^7c[h_YWdcWdk\WYjkh_d]ef[hWj_edi$ ;d[h]oki[Zf[hWkjefheZkY[Z_dYbkZ[iWbbWkje#h[bWj[Z cWdk\WYjkh_d]ef[hWj_edi1_j[nYbkZ[ifem[h[gk_fc[dj WdZfem[hifehji$ Electricity is used in automation, plant lighting, motors and compressors, and cooling. Natural gas is also used for manufacturing processes, such as melt furnaces, the paint bake ovens, and the air emissions control equipment. onda’s three Department of Energy. existing U.S. Because of their IN FACT Total energy use at Honda production H facilities in North America increased by about automobile assembly performance in the 1 percent in FY 2007 from the previous fi scal year, plants — in Marysville EPA’s National Energy due to increases in production volumes and added and East Liberty, Performance Rating production of powertrain components. Energy use Ohio, and in Lincoln, System, the plants per unit of automobile production decreased roughly Alabama — were were recognized as 1.5 percent in the same time period, from 6.7 to awarded the 2006 being among the most 6.6 gigajoules. This reduction in energy intensity is Energy Star Label by energy-effi cient attributable primarily to energy effi ciency gains the U.S. EPA and the in America. and better utilization of production capacity. 28 Honda 2007 NORTH AMERICAN ENVIRONMENTAL REPORT 73942_26-37_Mfg_rv1.inddCS2.indd28 28 10/16/07 11:46:01 AM Environmental Impact of Honda Manufacturing Energy Reduction Projects Lighting Enhancements ll Honda plants dimming controls were installed translucent A in North America added to container yard panels with photosensors continue to implement parking areas to more to take advantage of lighting effi ciency effi ciently meet lighting available daylight. The upgrades and lighting requirements, resulting plant also installed a control system in a savings of more than solar-powered traffi c improvements. At 80,000 kilowatt hours light at a pedestrian the Timmonsville, of electricity per year. crossing zone in front South Carolina, power The plant’s Plastics Blow of the plant. sports products plant, Mold Department also Paint Booth Airfl ow System Improvements he East Liberty, to recycle conditioned air intake and improved at other Honda plants TOhio, auto air exhausted from the energy effi ciency are using this project plant implemented some operations and of maintaining proper as a basis for studying a comprehensive blend it with general booth temperatures. their own airfl ow program to improve space air to satisfy air In addition, the re- systems to identify airfl ow systems in the intake requirements. circulated air is cleaner, effi ciency improvement paint department. The improvements, which results in fewer opportunities. An engineering study made in 2006, reduced fi lter changes and less Every Honda plant identifi ed opportunities the amount of outside waste. Paint departments in North America is empowered to fi nd, assess and invest in ways Air Compressor Heat Recovery to reduce the plant’s ir compressors air compressors. The environmental footprint. A generate signifi cant captured heat is used to heat as a result of the heat make-up air in the compression process. plant ventilation systems At the Alliston, Ontario, during the winter auto plants, a heat months, which reduces exchanger was installed natural gas use. to capture the waste heat generated by the “Intelligent” Paint Booths n collaboration with air conditioning system to ensure a high-quality booth air conditioning Ithe Department of at the Marysville, Ohio, paint fi nish. The energy consumption. Mechanical Engineering motorcycle plant. Paint “intelligent” paint This system is now at Ohio State University, booth air conditioning booth accomplishes being studied for Honda developed systems are intended to this by switching from implementation in paint and implemented achieve and maintain a a reactive control booths at other Honda an industry-fi rst desired air temperature mechanism to predictive plants in North America. “intelligent” paint booth and relative humidity control, which reduces 2007 NORTH AMERICAN ENVIRONMENTAL REPORT Honda 29 73942_26-37_Mfg.inddCS2.indd 29 10/10/07 5:50:53 AM Environmental Impact of Honda Manufacturing Environmental Goals and Commitments (SEE PAGES 12-13 FOR COMPLETE SUMMARY) CATEGORY GOAL COMMITMENT MANUFACTURING ISO Certifi cation Achieve and maintain ISO14001 Honda Precision Parts Georgia (HPPG) will be certifi ed to ISO14001:2004 Green Factory certifi cation at each major manufactur ing standards by December 2009 operation in North America ISO14001 Certifi cation Honda is committed to maintaining an effective structure to oversee and manage the company’s environmental performance in the manufacturing arena. The central element of Honda’s environmental North American region. Thirteen of 14 Honda oversight and management structure was plants operating in fi scal 2007 were certifi ed to implemented in 1998 with a commitment to the ISO14001:2004 standard. The new Tallapoosa, achieve and maintain third-party ISO14001 Georgia, transmission plant is working toward certifi cation for environmental management at certifi cation before the end of calendar year 2009. Honda manufacturing facilities throughout the NORTH AMERICAN MANUFACTURING OPERATIONS LOCATION FACILITY ISO14001:1996 ISO14001:2004 CAPACITY United States Marysville, Ohio Automobile Plant 1998 2006 440,000 automobiles Motorcycle Plant 1998 2006 75,000 motorcycles 50,000 engines Anna, Ohio Engine Plant 1998 2005 1.15 million engines East Liberty, Ohio Automobile Plant 1998 2006 240,000 automobiles Russells Point, Ohio Transmission Plant 1998 2005 1 million transmissions Swepsonville, North Carolina Power Equipment Plant 2002 2005 2 million engines 380,000 lawnmowers Timmonsville, All-Terrain Vehicle (ATV) 2003 2006 280,000 ATVs South Carolina Personal Watercraft (PWC) 28,000 engines 11,500 PWCs Lincoln, Alabama Automobile and N/A 2006 300,000 automobiles Engine Plant 300,000 engines Tallapoosa, Georgia Transmission Plant N/A CY2009 300,000 transmissions Canada Alliston, Ontario Automobile Plant 1 1999 2006 195,000 Automobile Plant 2 1999 2006 195,000 Mexico El Salto, Estada de Jalisco Automobile Plant 1999 2006 30,000 automobiles Motorcycle Plant 1999 2006 30,000 motorcycles 30 Honda 2007 NORTH AMERICAN ENVIRONMENTAL REPORT 73942_26-37_Mfg.inddCS2.indd 30 10/10/07 5:50:55 AM Environmental Impact of Honda Manufacturing Associate Training and Involvement Honda believes that effective environmental performance begins with a high level of awareness among all Honda production associates and their active participation in achieving it. All Honda manufacturing associates in North “De-Energizer” Buddies America are provided with environmental training (Alliston, Ontario, Auto Plant) consistent with their job requirements. In addition, A team of associates at Honda’s Alliston, associates are continually encouraged to discover Ontario, auto plant — calling themselves the ways to improve the effi ciency of processes in their “De-Energizers” — were determined to reduce own areas and throughout the manufacturing energy use in the Plant 2 Paint Department. plant. Through their own initiative and passion The team noticed that lighting and equipment were for innovation, Honda associates are having a often left running during nonproduction times. real impact on the reduction of their company’s With a focus on reducing wasted energy, the team environmental footprint. implemented systems to ensure that lighting and equipment were turned off when not needed. They Attacking Energy Use also developed procedures to optimize start-up and (Lincoln, Alabama, Line 2 Paint Department) shutdown schedules to reduce energy use even Associates in the Lincoln, Alabama, Line 2 Paint further. Overall, the efforts of the De-Energizers Department conducted a structured analysis of resulted in one million kilowatt hours in energy the department’s operations in an effort to reduce savings and a 325,000 cubic meters reduction in energy use. Members of the department’s “Energy natural gas consumption. Attack Team” conducted an extensive review of the previous year’s energy budget to identify opportunities for conservation and cost savings without negatively affecting production operations. Included in their recommendations were such simple but effective measures as unplugging unneeded task lighting, reducing oven temperatures, and shutting down equipment during nonproduction times. Additionally, the group recommended improvements in paint booth air management and more specifi c control of certain paint processes. By implementing these ideas, the Line 2 Paint Department reduced costs almost $750,000 from Honda Canada’s De-Energizers took the initiative to dramatically the previous year, despite a 10 percent increase in reduce electricity and natural gas use at Honda’s Alliston, Ontario, production volume. Plant 2 paint booth operations. How Low Can You Go? (Marysville, Ohio, Auto Plant) The Marysville Auto Plant implemented a “How Low Can You Go?” program, challenging all associates to fi nds ways to reduce energy use. Key initiatives resulting from the program included: • a systematic program for scheduling lighting shutdowns during nonproduction periods • ongoing evaluation and elimination of lighting fi xtures that may no longer be needed because of building or equipment changes 2007 NORTH AMERICAN ENVIRONMENTAL REPORT Honda 31 773942_26-37_Mfg.inddCS2.indd3942_26-37_Mfg.inddCS2.indd 3311 110/10/070/10/07 55:50:55:50:55 AMAM Environmental Impact of Honda Manufacturing Turning in Toner HPE Recycles Aluminum (Timmonsville, South Carolina, Power Sports Plant) (Swepsonville, North Carolina, Power Equipment Plant) Associates at the Timmonsville, South Carolina, Associates at Honda’s Swepsonville, North Carolina, power sports products plant, seeking ways to Power Equipment plant began testing a new system improve their plant’s environmental performance, for on-site recycling of aluminum scrap from its developed a process for collecting used printer toner machine trimming process. cartridges for recycling. Collected cartridges donated to the local school district were redeemed for school supplies. The efforts kept about 356 cubic feet of waste out of landfi lls. Supporting Local Recycling (Marysville and East Liberty, Ohio, Auto Plants) In 1991, associates at the Marysville plant began collecting scrap aluminum foil from painting operations and donating it to the Union County Shriners for recycling. In 2006, associates in the East Liberty plant’s paint department saw an opportunity to implement a similar program and installed a The plant, with a capacity of up to 2 million general- compactor as well. purpose engines per year, had been sending its trim scrap by truck to a recycling center in Alabama. The new system melts scrap aluminum into ingots that are immediately recycled into the die-casting operation. The scrap never leaves the site. Honda saves money by not having to buy as much aluminum and saves fuel by eliminating the trucking of scrap. HPE has also installed two small natural gas-powered melting furnaces to replace one big furnace that was less effi cient. Turning Off the Tap (Tallapoosa, Georgia, Transmission Plant) Even though Honda Precision Parts of Georgia, LLC, is a new operation, associates are already busy identifying ways of improving its environmental performance. One recent initiative involved the process for testing the plant’s fi re pump system, which results in 30,000 to 60,000 gallons of water being purged from the system. In a combined effort, two plant groups — Facilities and Environmental Health and Safety Systems — began research last year to determine how the water could be reused. Possibilities being considered include transfer of discharged water to a storage tank or small reservoir for maintaining the grounds and use in nonpotable water systems such as toilets or machinery cooling systems. 32 Honda 2007 NORTH AMERICAN ENVIRONMENTAL REPORT 773942_26-37_Mfg.inddCS2.indd3942_26-37_Mfg.inddCS2.indd 3322 110/10/070/10/07 55:50:57:50:57 AMAM Environmental Impact of Honda Manufacturing Environmental Goals and Commitments (SEE PAGES 12-13 FOR COMPLETE SUMMARY) CATEGORY GOAL COMMITMENT MANUFACTURING Landfi ll Waste Achieve zero waste to landfi ll Reduce total landfi ll waste by 70% from a FY2001 baseline by FY2010 Green Factory (excluding mineral waste and certain construction debris) Minimizing Landfi ll Waste Honda plants in North America are committed to achieving zero waste to landfi lls. Honda works continually to minimize the generation of landfi ll waste, beginning with the Dehj^7c[h_YWdJejWbBWdZ\_bbMWij[ design of more effi cient manufacturing systems that '-$* A?BE=H7CI%7KJEFHE:K9;: '. produce less waste, and through maximization of (* recycling and reuse activity when generation (& '($( '+ '( of waste is unavoidable. ', /$( .$* '( -$( / IN FACT These techniques have enabled Honda +$/ +$/ , plant operations in North America to reduce total . ) landfi ll waste in FY2007 by about 66 percent from C;JH?9JEDIN'&&& * /$( /$& FY2001 levels. Much of this decrease is attributable & (&$+ ',$* ')$/ ')$& '&$- & Waste Minimization Initiatives in Manufacturing Ǡ Recycling of paint-sludge overspray Ǡ Recycling of used oil, batteries, Ǡ Reuse of waste concrete and asphalt particles as an additive for cement fl uorescent bulbs in roadbed construction and for waste-to-energy conversion Ǡ Recycling of metal contaminants Ǡ Recycling or reuse of offi ce waste, Ǡ Reclamation of zinc from iron cupola To minimize landfi ll removed from wastewater as including paper, newspapers, dust collected in bag houses for use waste generated by its an additive for cement and for magazines, and transparencies in fertilizer manufacturing facilities, waste-to-energy conversion Honda has successfully Ǡ Ǡ Ǡ Recycling of scrap painted bumpers Recycling of wood Implementation of cafeteria waste implemented several key to make splash guards management, including bulk initiatives to reduce, reuse, containers, reusable plates and and recycle. Ǡ Recycling of scrap steel Ǡ Washing and reuse of rags, gloves, utensils, and the recycling of and fl oor mats organic matter, packaging, plastics, and metals Ǡ Recycling of scrap aluminum chips Ǡ Recycling of spent sands from Ǡ Recycling of scrap copper, used and turnings foundry and casting processes as wiring, and used welding tips cement additives and roadbed construction material 2007 NORTH AMERICAN ENVIRONMENTAL REPORT Honda 33 73942_26-37_Mfg.inddCS2.indd 33 10/10/07 5:50:59 AM Environmental Impact of Honda Manufacturing Waste Reduction Efforts WheelabratorTM Cleaning he East Liberty and automobile painting method. Based on the simultaneously blasting TMarysville, Ohio, process. In the past, input of associates, the fi xtures with zinc auto plants discovered a the fi xtures were sent each plant installed a wire shot. The used shot greener way of cleaning off-site, where the dried Wheelabrator, which and dried paint particles paint fi xtures that paint was removed by mechanically cleans the are recycled off-site. Associates throughout hold parts during the a chemical or burning fi xtures by tumbling and the organization are encouraged to seek ways of improving individual Plastic Packaging Recycling and plantwide reduction of emissions, he Timmonsville, plastic foam, and other from other landfi ll waste, diverted from landfi lls energy use, and TSouth Carolina, recyclable plastics and a baler compacts the in FY2007 because of waste products. power sports plant that protect incoming plastics so they can be this initiative. implemented full parts during shipment. shipped off for recycling. recycling of hard Collection systems More than 130 tons plastic foam, sheet separate the plastics of plastic waste was Phosphate Tank Cleaning Improvements arge quantities coating tank, a part department devised reduce chemical use L of nitric acid and of the body painting a new method for by 43 percent while sodium hydroxide process at the Alliston, cleaning that included also reducing water were once used to Ontario, plant. To reduce the modifi cation of use, wastewater, and clean the phosphate waste, associates in the existing equipment to electricity consumption. Water Conservation Efforts to minimize water use and the production of wastewater are continually undertaken at all of Honda’s North American plants. Total water used at Honda’s North American auto Dehj^7c[h_YWd7kjeCWdk\WYjkh_d]MWj[hKi[ plants in FY2007 was down 4 percent, or 46 million &$-/ &$-/ gallons, from the previous fi scal year, while average '(&& &$-+ &$-) &$. &$-& &$,- &$-' =7BBEDIN water consumed for each unit of automobile '&&& &$, production fell about 7.6 percent to 730 gallons from .&& C?BB?ED 790 gallons the previous fi scal year. Average water ' '&&& ,&& &$* use per auto in FY2007 rose 4.3 percent over the *&& %7KJE FY2001 baseline of 700 gallons/auto. &$( (&& =7BBEDIn -,/ -,, /() '"&', '"'(( '"&-, & /)' &$& FY01 FY02 FY03 FY04 FY05 FY06 FY07 JEJ7BM7J;HKI; JEJ7BM7J;HKI;F;H7KJEFHE:K9;: * Total water use includes all North American operations. ** Water used per auto produced includes all auto-related manufacturing operations; it excludes power equipment and power sports products. 34 Honda 2007 NORTH AMERICAN ENVIRONMENTAL REPORT 73942_26-37_Mfg.inddCS2.indd 34 10/10/07 5:51:00 AM Environmental Impact of Honda Manufacturing Environmental Goals and Commitments (SEE PAGES 12-13 FOR COMPLETE SUMMARY) CATEGORY GOAL COMMITMENT MANUFACTURING Air Emissions Reduce releases of air pollutants Maintain average VOC emissions from auto body painting operations at Green Factory less than 20 g/m2 Minimizing Air Emissions Efforts to minimize air emissions include reductions in the emissions of volatile organic compounds (VOCs). Honda’s plants release various air contaminants, reduced VOC emissions by 25 percent from the primarily volatile organic compounds (VOCs), previous fi scal year and 45.6 percent lower than particulate matter (PM), oxides of nitrogen (NOx), the FY2001 baseline. At 15.6 g/m2, VOC emissions in and carbon monoxide (CO). VOC emissions typically FY2007 were 22 percent below the company’s target come from painting operations. PM emissions of 20 g/m2. Reductions from the previous fi scal year usually result from metal casting and fi nishing were due to the full start-up of a new state-of-the-art processes and from painting operations. NOx and paint shop at the Marysville, Ohio, auto plant, which CO emissions typically result from the combustion reduced body painting emissions almost 47 percent of natural gas for heating and from the use of from the previous fi scal year. engine and full-vehicle testing dynamometers. Air Honda’s automobile paint process typically emissions are released in accordance with applicable consists of four coating steps — an electro-deposition laws and regulations. coating, primer, basecoat for color, and a fi nal Emissions are routinely monitored, tracked and clearcoat. reported to regulatory agencies in accordance with The start-up of the new Marysville Auto Plant federal, provincial, and state requirements. Factories Line 2 paint shop brought the number of production are also periodically inspected for compliance with lines using waterborne basecoat in the painting legal requirements. process to six: Marysville Line 2, Lincoln (2 lines), Alliston (Ontario) Plant 2, East Liberty (Ohio), and It has always been Honda’s Dehj^7c[h_YWdLE9;c_ii_edi El Salto (Mexico), which together account for policy to minimize the ( '. waterborne primer/surfaces. =%C '( Welding Solvent Reduction , A team leader in the East Liberty plant’s Welding (.$- (.$, (*$+ ()$, (($& (&$. '+$, Department, concerned about diffi culties in & 2007 NORTH AMERICAN ENVIRONMENTAL REPORT Honda 35 73942_26-37_Mfg.inddCS2.indd 35 10/10/07 5:51:00 AM Environmental Impact of Honda Manufacturing Reducing Chemical Releases — TRI/NPRI Reporting Honda operations in the United States and Canada report total chemical releases annually in accordance with regulatory requirements. Prevention of potential environmental spills and Dehj^7c[h_YWdJejWbJH?%DFH?H[b[Wi[i Dehj^7c[h_YWdJH?%DFH?%7kjeH[b[Wi[i releases is a key design (&&& consideration for all Honda manufacturing facilities. '$( '+&& &$/ '&&& &$, A=%7KJE C;JH?9JEDI +&& &$) '$), '$(* '$&& &$.- &$,. '")'* '"*/- '"+&/ '"(,& '"(&& /*. '"++, '$(* & &$& '$(* 9O&& 9O&' 9O&( 9O&) 9O&* 9O&+ 9O&, 9O&& 9O&' 9O&( 9O&) 9O&* 9O&+ 9O&, ;nYbkZ_d]C[n_Ye ;nYbkZ_d]C[n_Ye Honda’s U.S. and Canadian manufacturing Honda’s U.S. and Canadian manufacturing operations operations report TRI (Section 8.1) and NPRI (Schedule 1, Part 1) report TRI (Section 8.1) and NPRI (Schedule 1, Part 1) releases releases and transfers for disposal. and transfers for automobiles and automobile parts (engines and transmissions) per automobile produced. In the United States, Toxic Release Inventory (TRI) tanks and piping systems have backup containment data are submitted to both state and federal capabilities to facilitate recovery of any leaked or environmental protection agencies; they are spilled material. Additionally, storage tanks are available for public review at www.epa.gov. In equipped with alarms that give advance warning of Canada, National Pollutant Release Inventory (NPRI) overfi lling. Virtually all materials with the potential data are submitted to Environment Canada and to for release are handled within enclosed buildings. the Ontario Ministry of the Environment; they are Learning from accidental releases is critical to available for public review at www.ec.gc.ca/pdb/npri. preventing future occurrences; therefore Honda Honda has reduced its total TRI/NPRI releases by tracks all signifi cant incidents. Major incidents more than 27 percent despite signifi cant expansions undergo root-cause analysis, and the information in production capacity since calendar year 2000. gained is used to improve operations. Auto-specifi c TRI/NPRI emissions per automobile produced have been reduced by about 45 percent in Emergency Response the United States and Canada, in the same period. All of Honda’s manufacturing facilities have response plans that defi ne the policy and procedures Accidental Spill and Release Prevention, to be followed in emergencies. Honda’s major Tracking and Reporting manufacturing operations have well-trained, Prevention of environmental spills and releases experienced on-site emergency responders and is a key design consideration for all Honda emergency equipment. The emergency response manufacturing facilities. Exterior chemical and plans are tested through tabletop exercises and wastewater storage tanks and transfer systems periodic in-plant drills involving both on-site and are constructed with materials and designs that local community responders. minimize the risks of leaks and spills. Most exterior 36 Honda 2007 NORTH AMERICAN ENVIRONMENTAL REPORT 773942_26-37_Mfg.inddCS2.indd3942_26-37_Mfg.inddCS2.indd 3366 110/10/070/10/07 55:51:01:51:01 AMAM Environmental Impact of Honda Manufacturing Environmental Goals and Commitments (SEE PAGES 12-13 FOR COMPLETE SUMMARY) CATEGORY GOAL COMMITMENT MANUFACTURING ISO Certifi cation Promote certifi cation by OEM suppliers Promote certifi cation of key suppliers to the new ISO14001:2004 standard Green Purchasing to ISO14001 standards Supply Chain Expand the use of returnable containers Continue to increase use of returnable containers Management for Honda manufacturing operations Green Purchasing Enhance parts delivery logistics Reduce vehicle miles traveled (VMT) for shipment of parts to North American manufacturing facilities Green Purchasing Honda encourages its suppliers to take a “green factory” approach by reducing their packaging waste, adopting more energy-effi cient processes, and adhering to ISO14001 management standards. Honda’s “green purchasing” effort began in 1998, These suppliers qualifi ed in each of the six areas by Honda promotes when the company asked suppliers to its Ohio and using self-assessment tools created by Honda. The supplier recognition Ontario, Canada, plants to implement environmental environmental self-assessment tools show suppliers by offering training sessions on its Corporate management systems and to obtain third-party ISO how they can improve their lean and green processes Citizenship Award at certifi cation. At fi rst, Honda focused on its top 42 and overall environmental performance. various conferences key OEM equipment suppliers. In 2005, this request throughout the year, was extended to additional key suppliers of Honda’s Returnable Parts Packaging encouraging the suppliers Lincoln, Alabama, plant. One signifi cant area of waste generation in to integrate green manufacturing is nonreusable packaging used to practices into their daily IN FACT By 2006, almost 93 percent 0f these key ship parts from suppliers to Honda factories. A formal management practices. suppliers, including all original 42 suppliers, had program aimed at reducing nonreusable packaging earned ISO14001 certifi cation. Overall, 80 percent was initiated in 2001. In fi scal 2006, Honda of Honda’s total North American OEM supply chain, implemented a new program at its Anna, East Liberty, comprising more than 600 suppliers, is ISO14001 and Marysville, Ohio, plants to recycle as scrap third-party certifi ed. plastic any returnable containers that can no longer be repaired or used. The program was expanded to Lean, Green and Safe the Lincoln, Alabama, plant in 2007. The Ohio plants Honda continues to educate and encourage suppliers recycled more than 650,000 pounds of scrap plastic through its “Lean, Green and Safe” program, which through this program in 2007, an increase includes on-site evaluations, benchmarking, and of 115 percent over the previous calendar year. an annual environmental conference where suppliers can share best practices. In 2006, Honda introduced a new program to recognize excellence FWhjiH[Y[_l[Z_dH[jkhdWXb[9edjW_d[hi // // // in OEM suppliers’ corporate citizenship. In 2007, two '&& /. /. /+ // /* /. /- Honda OEM suppliers were recognized in six areas: .& ethics and compliance, environment, diversity, ,& community involvement, health and safety, and *& government relations. F;H9;DJ (& 7YYehZ 9_l_Y ;b[c[dj 7YkhW F_bej EZoii[o 9_l_Y C:N H_Z][b_d[ Winner: TK Holdings, Inc. — SWS Apodaca, Mexico 9H#L & Recognition: Bridgewater Interiors, LLC — ;$B_X[hjo" CWhoil_bb[" B_dYebd" 7bb_ijed" E^_e E^_e 7bWXWcW EdjWh_e Eastaboga, Alabama This chart indicates the percentages of parts supplied in returnable containers, excluding certain parts supplied from Japan and other Asian countries. 2007 NORTH AMERICAN ENVIRONMENTAL REPORT Honda 37 73942_26-37_Mfg.inddCS2.indd 37 10/10/07 5:51:02 AM Our Responsibility to the Environment Waste Minimization and Recycling he minimization of waste is a common theme of Honda’s efforts to reduce T its environmental footprint. By reducing its use of energy and raw materials, reusing materials where possible, and recycling waste where necessary, Honda is conserving energy, producing less waste at its facilities, and increasing the recyclability of its products. H[ZkY_d]MWij[J^hek]^ekjj^[FheZkYjB_\[9oYb[ Beyond efforts to improve the fuel effi ciency and reduce the emissions of its products, Honda is working to lessen the total environmental impact of its products throughout their life cycle, from initial design and production to end-of-life recycling and materials disposal. :;I?=D C_d_c_p[j^[ki[ e\l_h]_d"dedh[YoYbWXb[ WdZ^WpWhZekicWj[h_Wbi :?IFEI7B _dfheZkYjZ[i_]d Ikffehj h[i[WhY^ed Wbj[hdWj_l[i jebWdZ\_bb ;D:E<B?<; F7HJI Fhel_Z[_d\ehcWj_ed FHE9KH;C;DJ jeZ_icWdjb[hije_cfhel[ H[gk_h[ikffb_[hi H[ZkY[ [dZ#e\#b_\[jh[Wjc[djWdZ je[b_c_dWj[eh Yh[Wj[cWha[ji\eh h[ZkY[^WpWhZeki h[YoYb[ZcWj[h_Wb H[ki[ cWj[h_Wbi H[YoYb[ :?IJH?8KJ?ED" FHE:K9J F79A7=?D= C7DK<79JKH?D= H[ZkY[fWYaW]_d] H[ZkY[[d[h]o cWj[h_WbiWdZ ki["W_h[c_ii_edi" ki[e\[nf[dZWXb[ WdZieb_ZmWij[ YedjW_d[hi Wj\WYjeh_[i onda is working to reduce waste, to conserve Government regulations covering end-of-life products, Henergy, and to eliminate substances of concern recycling, and substances of concern differ somewhat (SOCs) in its products. The company also works with by region, but Honda is seeking to harmonize the stakeholders in the recycling industry to improve company’s guidelines for product design and materials dismantling effi ciency, to facilitate material reuse, and selection and to apply them globally. to minimize shredder residue — the leftover waste from products at the end of their life cycle. 38 Honda 2007 NORTH AMERICAN ENVIRONMENTAL REPORT 73942_38-49_WMin.inddCS2.indd 38 10/10/07 6:31:58 AM Waste Minimization and Recycling Environmental Goals and Commitments (SEE PAGES 12-13 FOR COMPLETE SUMMARY) CATEGORY GOAL COMMITMENT WASTE MINIMIZATION Products Increase the design recyclability of Maintain 90% or greater design recyclability of future automobiles (Honda automobiles in North America calculation based on JAMA standard), and 95% for Power Sports and Power Equipment products Design Minimizing the use of virgin, nonrecyclable and hazardous materials in product design to reduce life cycle impact. Designing for the Environment Basalt headliner in 2007 Acura MDX Environmental factors are considered early in In 2006, a Society of Plastics Engineers (SPE) the design phase of every Honda product. This Automotive Innovation Award in the Environment allows greater potential for environmental benefi t category recognized an innovative fi berglass-free and waste minimization. headliner supplied by M-Tek (of Sandusky, Ohio) for the redesigned 2007 Acura MDX. In selecting materials and design for new products, Honda engineers look for opportunities to reduce The headliner on the the end-of-life impact by keeping in mind Acura MDX is made of environmental aspects such as dismantling, basalt from volcanic component remanufacturing, minimizing or rock, eliminating eliminating substances of concern (SOCs), and VOCs emitted during reducing the potential for shredder residue. the production and disposal of conventional headliners made of Product Recyclability polymer materials. Honda has achieved 90 percent or greater design recyclability for all Honda and Acura automobiles developed and produced in North America (based on the Japan Automobile Manufacturers Association Honda R&D’s materials group worked with M-Tek standard). Honda continues to look for ways to to specify the new headliner, which was created in improve the design recyclability of new models. It response to an end-of-life challenge: to develop an is committed to maintaining 90 percent or greater alternative to the conventional polymer material design recyclability for all automobiles developed headliners whose glass fi bers melt and accumulate and produced in North America. Additionally, the on the walls of incinerators instead of being company is committed to achieving 95 percent or consumed with the rest of the composite material. greater recyclability for its power sports and power By replacing polymer material with naturally equipment products. occurring volcanic rock, the new headliner not only resolved the incinerator problem, but also improved Naturally Sourced Materials sound insulation and completely eliminated the Honda is looking at new materials in the volatile organic compounds (VOCs) that are emitted construction of its products. This includes naturally from both the manufacture and incineration of sourced materials that reduce the environmental fi berglass-based composites. impacts associated with product production and disposal, including reduced VOC emissions, improved sustainability, and greater recycling potential. Two recent outcomes of this approach are the basalt headliner in the 2007 Acura MDX and the bio-fabric interior of the Honda FCX Concept. 2007 NORTH AMERICAN ENVIRONMENTAL REPORT Honda 39 73942_38-49_WMin.inddCS2.indd 39 10/10/07 6:31:59 AM Waste Minimization and Recycling Honda bio-fabric and bio-derived surface materials vehicle components, including the interior. In designing the FCX Concept, Honda engineers As a result, the company created Honda bio-fabric, looked beyond the fuel cell powertrain to other a highly durable and fade-resistant alternative to conventional polyethylene Pillar inner liner, Door lining Rear shelf, terephthalate (PET) roof lining (PET) (Honda bio-fabric) trunk lining (PET) material made from Armrests plant-derived cellulose. (Honda bio-fabric) The bio-fabric was applied to “high touch” interior components, including the seats and armrests. Following the introduction The FCX Concept uses of Honda bio-fabric on its Honda-developed bio-fabric, next-generation fuel cell designed for enhanced durability, along with other car in 2008, Honda plans bio-derived materials. to expand its use to Floor carpets Seat fabric other models. and mats (PET) (Honda bio-fabric) Environmental Goals and Commitments (SEE PAGES 12-13 FOR COMPLETE SUMMARY) CATEGORY GOAL COMMITMENT WASTE MINIMIZATION Substances Reduce and, if possible, eliminate Phase out mercury in components (such as HID headlights and LCD screens) of Concern substances of concern, including where technically feasible and economically practical (SOCs) mercury, lead, hexavalent chromium, Eliminate lead in steel used to produce ATV wheel hubs and in solder used for cadmium, brominated substances and welding electronic circuit substrates, when technically feasible polyvinyl chlorides (PVCs) Phase out the hexavalent chromium used in automobiles for anti-corrosion purposes by the end of CY2007, with the exception of replacement parts Work with suppliers to eliminate cadmium from components Expand PVC-free technologies for remaining applications wherever feasible, including elimination from underbody and weld sealer applications Assess all applications of brominated substances and continue to study opportunities to eliminate deca-BDEs Parts Procurement Honda is requiring that suppliers eliminate or reduce hazardous materials in parts. Reducing Substances of Concern (SOCs) in Products cadmium and cadmium compounds, bromine Honda’s global policy is to set standards for the compounds (specifi ed BDEs), and azoic compounds. voluntary reduction and control of substances Honda continues to work closely with its North considered harmful to people and our environment. American suppliers to fi nd new ways of reducing SOCs in all of its products. In 2002, Honda created the North American Chemical Substances Guideline to minimize SOCs Honda Motor Co. established a Global Hazmat in Honda products assembled in North America. Compliance Team within the company, which In 2007, Honda updated the guideline, which is has the goal of complying with the strictest now called the Honda North America Chemical regional hazardous material regulations and Substance Standard. The standard states the North enacting a proactive approach to meet or exceed American requirement for parts suppliers to reduce these regulations globally. The team consists or eliminate lead and lead compounds, hexavalent of representatives from the Automobile, Power chromium, mercury and mercury compounds, Equipment, and Power Sports divisions, and 40 Honda 2007 NORTH AMERICAN ENVIRONMENTAL REPORT 73942_38-49_WMin.inddCS2.indd 40 10/10/07 6:32:01 AM Waste Minimization and Recycling representatives from the Purchasing, R&D, Perfl uorooctane Sulfonate (PFOS) Manufacturing, and Certifi cation departments Honda is also working to reduce the use of from all six regions, including North America. perfl uorooctane sulfonate (PFOS), a water repellent agent. PFOS will be banned in the EU market after Lead June 27, 2008. Honda is working with its suppliers Over the past several years, Honda has found new and aims to reduce or fi nd alternatives to PFOS in all ways to reduce the lead used in electronics, light parts delivered to North American manufacturing bulbs, and corrosion-resistant paints. In addition, facilities by the end of 2007. the company has replaced lead in steel bars with nonhazardous materials, and it has eliminated lead Polyvinyl Chloride (PVC) in its automobile and on-highway motorcycle wheels. Although diffi cult to recycle, PVC plastics help Honda is currently working to eliminate the lead reduce vehicle weight and are able to meet high in steel used to produce ATV wheel hubs, and it has standards for durability, fade resistance, and other begun to eliminate lead in circuit boards. critical quality criteria. Honda has worked with suppliers to implement PVC-free technologies for Hexavalent Chromium components such as interior and exterior trim pieces, Hexavalent chromium has been used extensively door sealants, adhesives, window moldings, fl oor in the past to protect exterior parts from corrosion. mats, and seat coverings. PVC used in instrument Honda and its suppliers have begun using trivalent panels, inner-door weather stripping, and shift chromium and other nonhazardous alternatives. knobs is being replaced with a variety of materials. Starting in 2005, Honda began to work actively The new Acura MDX, manufactured at the Alliston, with suppliers to reduce dramatically the levels Ontario, Canada, Plant 2, has an aluminum hood that of hexavalent chromium. The company plans uses a PVC-free weld sealer. Honda is also working to eliminate all hexavalent chromium used to eliminate PVC used for underbody coating and for corrosion-resistant purposes from its North weld sealer applications from all North American American-made OEM parts and products by the manufacturing plants within two years. In many end of calendar year 2007. Currently, this goal is cases, the applications have already been changed. 90 percent complete. The company’s original Honda is investigating effective alternatives to PVC target — to complete the conversion by the end for all paint department applications and will begin of 2006 — was not achieved because of technical to apply the technology once it has been proven. diffi culties and unavailability of materials. Mercury Reduction of In-vehicle Volatile Organic Compounds (VOC) The electrical properties of mercury make it useful in a wide variety of applications, including switches, onda has long been materials used in making radios, and ride-leveling devices. Honda has never Hworking to reduce interior parts with the in-vehicle VOC emissions. goal of further reducing specifi ed mercury for any of these applications. Starting with the all-new VOC emissions. We will Honda currently uses very small quantities of 2008 Honda Accord, apply low-VOC materials mercury in high-intensity discharge (HID) headlights we adjusted processing for all future new model and in illuminated screens for entertainment and methods, adhesives, and developments. navigation systems only. For damaged or broken LCD screens, the company employs a closed-loop recycling system. Honda is working to increase the durability of mercury-free HID bulbs and will introduce the technology when technically feasible. Polybrominated Diphenyl Ethers (PDBEs) PDBEs are used as fl ame retardants in seats, carpets, engine control units, and plastic substrates. Honda has stopped using octa- and penta- PDBEs because of their potentially harmful environmental impact. The company has worked with suppliers to ensure that these substances are no longer present in fabrics or parts. 2007 NORTH AMERICAN ENVIRONMENTAL REPORT Honda 41 73942_38-49_WMin.inddCS2.indd 41 10/10/07 6:32:02 AM Waste Minimization and Recycling Environmental Goals and Commitments (SEE PAGES 12-13 FOR COMPLETE SUMMARY) CATEGORY GOAL COMMITMENT WASTE MINIMIZATION Green Building Improve energy effi ciency and reduce the Certify at least two new buildings to LEED-NC in FY2009, and recertify the generation of waste at Honda facilities Gresham, Oregon, facility from LEED-NC to LEED-EB (Existing Building) in North America Green Building Initiatives Honda continued to expand its green building activity with the certifi cation of new facilities and ongoing efforts to reduce waste and energy use at existing buildings. Honda’s policy Leadership in Energy-Effi cient Building Design to reduce the Honda is in the process of certifying two environmental impact new facilities to LEED (Leadership in Energy of its North American Environmental Design) standards set by the U.S. operations extends to its facilities throughout Green Building Council (USGBC): the Acura Design the region. Studio in Torrance, California, and the Midwestern Consolidation Center (MCC) in Troy, Ohio. Honda has two existing LEED-Gold buildings: the Honda R&D Americas central plant facility in Raymond, Ohio, and American Honda’s Northwest Regional Center in Gresham, Oregon. The Acura Design Studio, despite several challenging Both new buildings, although very different in features, including the need for abundant natural and design and use, share some common sustainable artifi cial lighting and high security requirements, features, such as: incorporates sustainable design concepts: • An Energy Star highly refl ective roof and • Water reclaimed from the Hyperion Sewage dual-paned low-emissive glass to reduce Treatment Plant, in nearby El Segundo, is used solar heat gain to fl ush toilets and irrigate the grounds. • Extensive use of recycled and recyclable products • A highly effi cient displacement ventilation system in the building envelope and interiors moves cool air from the rooftop air conditioning • Use of energy-effi cient light fi xtures with units down the walls and columns to large grilles motion sensors at fl oor level, where it displaces heat from the human body to maintain a steady and comfortable • Use of U.S. steel, guaranteed to contain at minimum working environment. 25 percent, and often as much as 90 percent, recycled content The Midwestern Consolidation Center is built on • Diversion of construction waste (concrete, glass, a much larger scale. The warehouse, mezzanine drywall, steel) from landfi lls to recycling centers and offi ce building total 547,000 square feet. In • Selection of suppliers and products based not only addition to the features mentioned at left, the on their use of recycled content, but also on their facility’s mezzanine uses wood certifi ed by the Forest proximity to the jobsite, to reduce truck emissions Stewardship Council, which means it came from a • Replacement of cement used in concrete sustainably managed forest, and has documentation production with fl y ash, a byproduct of coal-fi red showing its chain of custody all the way from the power stations, which results in energy savings forest to its fi nal destination in the building. and reduction of greenhouse gas emissions 42 Honda 2007 NORTH AMERICAN ENVIRONMENTAL REPORT 73942_38-49_WMin.inddCS2.indd 42 10/10/07 6:32:03 AM Waste Minimization and Recycling Other Green Building Activity Energy Conservation and Waste Minimization American Honda’s Gresham, Oregon, LEED Gold at American Honda Headquarters building is being recertifi ed under the USGBC’s American Honda actively reduces the use of LEED-EB (Existing Building) program to ensure that purchased electricity and generation of landfi ll the building continues to operate in a very energy waste. The 101-acre Torrance, California, campus uses effi cient manner. environmentally friendly cogeneration-supplied electric power, and it actively supports its associates’ Honda Canada also is in the process of certifying recycling activities. buildings on its new Headquarters Campus under the Canadian Green Building Council’s Electricity cogeneration certifi cation program. American Honda continues to rely on an effi cient natural gas-powered cogeneration unit to produce Honda R&D Americas Ohio Center Recycling Effort 10 percent of the energy needed for its offi ce In 2006, the Honda R&D Americas Ohio (HRA-O) operations. Cogeneration produces heat and power in Center in Raymond, Ohio, reduced its waste to a single thermodynamic process. It uses the valuable landfi ll by 32 percent and increased its recycling heat produced in electricity generation that would by 29 percent over calendar year 2005. Since 2004, otherwise be wasted. the facility has instituted several successful waste reduction activities, including the recycling of IN FACT In 2006, the Torrance campus of American aluminum cans, glass and plastic bottles, paper, Honda purchased 13.1 percent fewer kilowatt-hours cardboard, magazines, newsprint, toner cartridges, of electricity from the public utility than it did in the wood pallets, metal, glass, aluminum and plastic previous year. parts, and cafeteria food waste for compost and tires. In addition to cogeneration energy, the company uses IN FACT These efforts resulted in a 41 percent other energy-conserving techniques, including an reduction in waste to landfi ll and a 56 percent energy management system (EMS) that automates increase in recycling poundage over the past three the building’s heating, ventilation, lighting, and years. The increase in recycling activity was due air-conditioning equipment to run at their highest in a large part to the addition of a compactor for effi ciency. In addition, Honda makes use of motion- cardboard, placement of offi ce waste recycling bins sensor lighting and off-peak forklift battery charging. at all desks, and the composting of cafeteria food Honda has also set up a program to alert associates waste. In addition, the facility donates used cell on its Torrance campus when energy shortages are phones, offi ce supplies, and equipment for use by threatened in the area and to remind them to save nonprofi t organizations. energy wherever possible. Recycling >H7#EBWdZ\_bbli$H[YoYb[ Offi ce recycling and waste reduction at American .&& M7IJ;JEB7D: Despite an increase in personnel and square footage, Honda R&D Americas has more than doubled its recycling over the past three years while reducing trash produced. 2007 NORTH AMERICAN ENVIRONMENTAL REPORT Honda 43 73942_38-49_WMin.inddCS2.indd 43 10/10/07 6:32:04 AM Waste Minimization and Recycling IN FACT Honda’s Torrance facilities kept more than Server Virtualization Project Saves Energy 4 million pounds of materials out of landfi lls in In 2004, American Honda’s Information Systems calendar 2006. Recycling poundage was down Division (ISD) began implementing Virtual Server almost 9 percent from the previous year, due in part technology. With this new approach, the division to efforts by associates to reduce and reuse materials was able to reduce the number of physical servers it along with the increased use of reusable containers needs from 134 to 13 by 2007. The initiative allowed by the campus parts warehouse. American Honda to reduce its power and cooling requirements by a factor of 11 to 1. ISD also plans to migrate an additional 161 production servers to E\\_Y[MWij[H[YoYb_d]ÆK$I$>[WZgkWhj[hi 18 physical servers by the end of 2007, which will + further reduce power and cooling requirements. * Finding Ways to Reuse Electronic Waste C?BB?ED ) ' Recognizing that electronic waste disposed of ( through conventional means was ending up in ' landfi lls, both here and abroad, associates of Honda’s FEKD:In ($* ($, )$& *$( *$+ *$' & )$, Information Systems Division (ISD) rethought their 9O&& 9O&' 9O&( 9O&) 9O&* 9O&+ 9O&, electronic waste disposal process. JehhWdY["9Wb_\ehd_W One example of Honda’s waste reduction programs is its deskside recycling program. The program makes it convenient for associates to recycle paper, magazines, DVDs, CDs, tapes, brochures, and newspapers right at their desks. In 2006, the program was expanded to include dry cell batteries as well. The sorting of materials is handled by disabled workers in a partnership between Honda and Social Vocational Services (SVS). Additional on-site waste reduction programs include the recycling of aluminum cans, batteries, glass and More than 9 tons of unusable computer equipment plastic bottles, toner cartridges, metal, stretch plastic was recycled in a new certifi ed disposal process. wrap, wood pallets, and cardboard. In addition, items With this effort, the ISD group has begun to dispose such as offi ce supplies, equipment, and cell phones of electronic waste such as unusable computers, are donated to nonprofi t organizations and reused. printers and monitors, through a certifi ed process that employs mechanical size reduction and separation equipment to separate electronic waste into a dozen different material streams, including copper, aluminum, polymers, ferrous and fi berglass. These materials can then be recovered and resold on the commodities market. The ISD group has eliminated 9 tons of waste using this method. The implementation of a reusable container program in American Honda’s Torrance, California, parts warehouse helped the company reduce recycling poundage by 9 percent in CY2006. E-waste is broken into aluminum and copper “chops.” 44 Honda 2007 NORTH AMERICAN ENVIRONMENTAL REPORT 773942_38-49_WMin_rv1.inddCS2.ind443942_38-49_WMin_rv1.inddCS2.ind44 4444 110/16/070/16/07 111:48:431:48:43 AMAM Waste Minimization and Recycling Distribution, Packaging Reducing packaging materials and the use of expendable containers. Honda Returnable Crate System Backless packaging What started as a pilot program with Honda personal In late 2006, American Honda introduced its new watercraft, Honda’s Returnable Crate System Daily Stock Order (DSO) program for shipments of (HRCS), has rapidly expanded to large segments parts to dealers. The new shipping process resulted in of the company’s North American product and a redesign of the sheet metal packaging and reduced parts shipping operations. Since 2002, Honda’s U.S. the amount of packaging materials and space taken Motorcycle Division has been using returnable crates up by the packaging. for its U.S.-made power sports products. In the fi scal A new backless design year ended March 31, 2007, Honda’s U.S. Motorcycle for shipping crates Division further expanded the initiative and enables the reduction of material due to achieved 100 percent use of returnable containers simplifi ed packaging. for domestic motorcycle, all-terrain vehicle (ATV) The packaging was and personal watercraft (PWC) production. The designed for four main reverse logistics process includes power sports sheet metal parts: dealers in all states, including Alaska and Hawaii, hoods, trunks, fenders, who are linked via a interactive computer network and tailgates. It is now also used for doors and to the supply chain and return process. Locally, side outer panels. both Honda dealers and consumers benefi t from reducing debris. IN FACT By including the Gold Wing motorcycle and Fourtrax ATV line, Honda eliminated over 17.6 million pounds of packaging waste from Harmony project domestic production in FY2007. Honda’s North American Parts Packaging group has initiated a program between American Honda and Pallet Recycling Program Honda de Mexico to change their shipping method Honda is also engaged in the recycling of wood for parts from single-use wooden pallets to reusable pallets. With the help of our part centers, packagers, crates. This program, called the Harmony Project, was and our pallet supplier, American Honda was able to rolled out in phases. It fi rst eliminated pallets, then recycle 62,308 pallets in calendar year 2006, which reduced packaging materials, and fi nally eliminated resulted in 3,426,940 pounds of materials being kept packaging entirely. In the fi scal year ended March out of landfi lls. 31, 2007, this project eliminated 109,173 pallets and 1,310,076 pounds of landfi ll waste. Reducing Parts Packaging Honda’s North American Parts Division has Electronic Warehouse Management System also worked to reduce waste to landfi ll, cutting With the implementation of an electronic deposits by 1.5 million pounds for the fi scal year warehouse management system (WMS) at ending March 31, 2007. Some of this was achieved American Honda’s nine parts centers and two by removing packaging from parts that are robust central distribution hubs, 124 million sheets of enough to withstand the rigors of the distribution paper were eliminated in calendar year 2006. system. This decontenting process was fi rst applied The system eliminated: to stronger parts, such as bulkheads, bumper beams, and muffl ers. In fi scal year 2007, this • One piece of paper for every piece shipped project eliminated almost 1.32 million pounds • Three pieces of paper for every shipment made of packaging material. • One piece of paper for every pallet of parts received by the parts division 2007 NORTH AMERICAN ENVIRONMENTAL REPORT Honda 45 773942_38-49_WMin.inddCS2.indd3942_38-49_WMin.inddCS2.indd 4455 110/10/070/10/07 66:32:07:32:07 AMAM Waste Minimization and Recycling Transportation and Logistics Working to reduce the environmental impacts of product distribution in North America. AutoMax train in the process of loading vehicles. Honda and Acura Automobiles Distributed autos per railcar using less fuel than traditional by Effi cient U.S. and Canadian Railway Systems auto transport railcars. Of all the available product distribution channels, including rail, truck, air transport, Nighttime Truck Transport Means Fewer Emissions and water, rail is the best option for the environment. About 30 percent of Honda’s truck transport of The average train can move one ton of material automobiles in the United States and Canada occurs 408 miles on a gallon of diesel fuel. That is roughly at night. Nighttime transport generates fewer three times the effi ciency of a truck. emissions than transport during peak daylight hours, because there is less traffi c on the road. IN FACT Approximately 80 percent of all American During nighttime shipments, trucks spend less Honda and Honda Canada automotive products are time idling on congested roadways, and their transported via rail. Honda also takes advantage of internal combustion engines run more effi ciently America’s effi cient freight rail industry by making at road speed. use of AutoMax railcars, which can transport more Material Reduction Reducing the environmental impact of product operation and maintenance. entirely of plastic (except for lids, caps or labels) and have capacities between 8 ounces and 5 gallons. Honda requires suppliers of these containers to manufacture them with a minimum of 25 percent Honda Original Parts recycled postconsumer plastics. This reduces fl uid containers use landfi ll waste material, reduces use of virgin plastic at least 25 percent postconsumer plastic. (a petroleum product), and conserves energy. Also, many special tools and parts are required at Honda Use of Recycled Plastics in Honda Product Containers dealers for service, repair and maintenance of Honda offers a wide variety of accessories and Honda vehicles. Wherever possible, Honda supplies products that customers use to service and maintain these products to dealers in reusable containers their automobiles, motorcycles, and other Honda and tool holders that reduce packaging and serve products. Many of these containers are made almost as permanent storage devices. 46 Honda 2007 NORTH AMERICAN ENVIRONMENTAL REPORT 773942_38-49_WMin_rv1.inddCS23942_38-49_WMin_rv1.inddCS2 4466 110/19/070/19/07 55:59:50:59:50 PMPM Waste Minimization and Recycling Reuse, Remanufacture Reducing waste in the disposal of manufacturing and service parts. Remanufacturing and Reuse of Honda Parts Honda has established a remanufacturing system remanufactured parts are of the same quality as for many components in its vehicles. the original parts. Remanufacturing of parts recovered from vehicles Typical parts recycled in this program are drive in service helps to divert materials from landfi lls, shafts, air conditioner compressors, starter motors, while reusing still valuable processed material from antilock-break system modulators, brake calipers, castings and other components helps minimize power-steering racks and pumps, audio components, inputs to the wastestream. navigation and entertainment video screens, and automatic transmissions. Rather than being discarded, the components or assemblies are collected from Honda dealerships IN FACT The total number of parts in this program and sent back to the original suppliers, where they has more than tripled since 2000, and Honda is undergo an assessment of their condition and working to expand the types of remanufactured potential for remanufacturing. Parts that meet parts it offers. the requirements are then remanufactured to the This remanufacturing system also conserves energy original specifi cations. Factory assembly standards and other resources that would be consumed in the and performance test standards ensure that these manufacture of new components. Headlamp Recycling Program ccasionally, during automotive part of Honda’s program to recycle repaired, and the like-new headlight is Oproduction, vehicles are slightly materials and reduce landfi ll wherever offered for sale to Honda owners whose damaged by contact with machinery, possible, when headlights are damaged vehicles are damaged in use. This worker tools, or other equipment. Any during the assembly of new vehicles, program not only reduces waste and damage is unacceptable for Honda they are replaced. The damaged recycles valuable materials, but offers customers, so these vehicles are sent assembly is sent to another company a lower-cost option to Honda owners for repair and new original equipment for remanufacturing. Damaged with older vehicles or with damage that parts and components are used to headlight assemblies are taken apart, is not covered by an insurance policy. return the vehicles to new quality. As individual components replaced or 2007 NORTH AMERICAN ENVIRONMENTAL REPORT Honda 47 73942_38-49_WMin.inddCS2.indd 47 10/10/07 6:32:09 AM Waste Minimization and Recycling End of Life Cooperating with dismantlers to improve end-of-life treatment and to create new markets for recycled material. Honda is actively collaborating with the automotive and vapors, including CO2, N2, and H2O before they dismantling and material recycling industries to reach the vehicle’s tailpipe. Honda has an aggressive increase parts reuse and to reduce input to the waste program to recover intact catalysts from out-of- stream. This collaboration is helping facilitate a service vehicles and from Honda dealers who replace better understanding of the issues surrounding the units under warranty or in service, and to recycle end-of-life vehicle disposal, including the most the material for use in new catalytic converters. Signifi cant opportunities effective means of removing parts for resale and Collected canisters are cut open, the ceramic is remain to reduce the removing fl uids, batteries and tires for proper crushed, and the metals are removed in a specialized, environmental impact of processing. The information obtained can enhance high-temperature process that does not generate a product and parts disposal. the recyclability of end-of-life vehicles, improve wastestream. This process ensures that the PGMs are dismantling processes, and lead to less scrappage properly recycled and not disposed of in landfi lls. and waste-stream input. Honda Canada is also actively diverting warranty catalytic converters away from regular metal scrap Hybrid Battery Recycling recycling to recover the precious metals. As the sales of hybrid vehicles grow, it is increasingly important to have a system in place to collect the IN FACT Honda Canada’s policy is to recycle nickel-metal-hydride (NiMH) battery packs at the 100 percent of the catalytic converters it replaces end of their working lives. Of the small number of during the warranty period. From January to hybrid batteries replaced in fi scal 2007, almost all December 2006, more than 5,800 catalytic converters were sent directly to specialized battery treatment were diverted from landfi lls and recycled. facilities for recycling. A small number were evaluated for quality, durability and specifi cations; Recycling Total-Loss Vehicles eventually, these batteries will also be recycled. Damage sometimes occurs to new vehicles during Although hybrid battery packs and related systems transportation, due to derailments or other reasons. for vehicles that meet AT-PZEV requirements are When severe damage occurs, American Honda warranted for 10 years or 150,000 miles, some forwards total-loss vehicles to vehicle dismantlers individual owners have reported their packs lasting and vocational schools for educational purposes for more than 400,000 miles of vehicle use. whenever possible, thereby reducing waste input to landfi lls. The vocational schools that receive these Catalytic Converter Recycling Honda and Acura cars are affi liated with either the Automotive Youth Educational System (AYES) or Honda’s own Professional Automotive Career Training (PACT) program. The students use the damaged products for hands-on automotive training. IN FACT Over the past four years, American Honda has recycled an average of 147 vehicles per year and donated an average of 53 vehicles per year for educational use. Fluid Recovery Catalytic converters used in the exhaust system One of the most important steps in the treatment are designed and constructed with precious of end-of-life vehicles is the collection of fl uids: metals — platinum, palladium, and rhodium, gasoline, engine oil, radiator coolant, transmission collectively referred to as the platinum group metals fl uid, brake and power steering oils. Under the best (PGM) — facilitate the conversion of pollutants of circumstances, dismantlers and automotive such as HC, CO, and NOx into less harmful gases 48 Honda 2007 NORTH AMERICAN ENVIRONMENTAL REPORT 773942_38-49_WMin.inddCS2.indd3942_38-49_WMin.inddCS2.indd 4488 110/10/070/10/07 66:32:11:32:11 AMAM Waste Minimization and Recycling recyclers capture most of these potentially harmful Honda found that disposal in municipal solid waste fl uids; however, in many cases, fl uid evacuation is incinerators and use as fuel in cement kilns were less than complete, and some is left in its system or both technically possible. But these alternatives component. For example, plastic gasoline tanks in were not economically viable because of collection, late-model vehicles are molded into complex shapes transportation and processing costs. As a result of that allow for easier placement under the vehicle, this project, material recycling of manufacturing but may result in multiple low points that prevent scrap from PFT production facilities was undertaken. complete fuel draining. Sometimes additional efforts It has proved to be both economically and are required to completely drain the fuel and avoid commercially successful. The recyclate generated 7kjecej_l[ leakage during processing, transport and fi nal from the postindustrial scrap is collected from I^h[ZZ[hH[i_Zk[ treatment of the cars. Honda is participating in a Honda’s North American plants and brokered to the 9ecfed[dji study to identify better ways to drain or capture market. Purchasers use it to make both automotive the fl uids from old cars. The Automobile Recyclers and nonautomotive products. ', Association (ARA) is researching techniques and ') ). design characteristics that may improve collection Automotive Shredder Residue (ASR) during scrap vehicle processing and prevent the The end-of-life treatment of vehicles involves a '( subsequent release of the fl uids left behind. number of environmental issues, including disposal (' of automotive shredder residue. Shredder residue COMMON AUTOMOBILE FLUID SYSTEM CAPACITIES FbWij_Yi is the nonmetal portions of the vehicle — such as HkXX[h Gasoline 17.5 gallons plastics, glass and rubber — accumulated in the =bWii 4.5 2007 NORTH AMERICAN ENVIRONMENTAL REPORT Honda 49 773942_38-49_WMin_rv1.inddCS2.ind493942_38-49_WMin_rv1.inddCS2.ind49 4499 110/16/070/16/07 111:58:141:58:14 AMAM Our Responsibility to the Environment Environmental Community Activities n addition to reducing the environmental impact of its own operations, Honda is Ialways looking for ways to make positive contributions to the communities where it does business. Many of these efforts focus on community-based environmental preservation and restoration efforts, in the form of corporate charitable giving foundation giving, in-kind contributions, and in company support of volunteer efforts by Honda associates who want to take an active role in their communities. Environmental Volunteer Efforts Honda associates pitch in to restore and preserve their local environment. Pitching In at Palos Verdes Land Protecting the Fish Population Logan Martin Lake Cleanup Conservancy in California in Ohio in Alabama More than 70 Honda associates, When the expansion of a Honda More than 100 associates from family and friends cleaned up transmission plant in Russells Honda’s Lincoln, Alabama, Abalone Cove beach, maintained Point, Ohio, required relocation of a automobile plant joined local trails, collected seeds, and cleared stormwater retention pond, associ- volunteers to remove 13 tons of invasive plants at the Portuguese ates at the plant contacted rangers trash and debris from nearby Bend Nature Preserve in Rancho at Indian Lake State Park to ensure Logan Martin Lake. Sponsored Palos Verdes, California. The June the survival of the pond’s fi sh by Honda, this outing was part 2006 event was the fi rst time the population. Five loads of fi sh were of an annual “Renew Our Rivers” Palos Verdes Peninsula Land Conser- carefully moved using a vacuum campaign aimed at protecting vancy has worked with a large tanker truck. The few remaining a valuable source of recreation, company on a volunteer project. fi sh were collected by hand and education and wildlife in Honda also donated a Ridgeline truck. released in Indian Lake. Talladega and St. Clair counties. This group of Community Action Team volunteers created two access ramps in and out of the canyon at Abalone Cove, California, and destroyed several fi re pits. 50 Honda 2007 NORTH AMERICAN ENVIRONMENTAL REPORT 773942_50-53_Comm_rv1.inddCS2.ind503942_50-53_Comm_rv1.inddCS2.ind50 5500 110/16/070/16/07 112:01:302:01:30 PMPM Environmental Community Activities Environmentally Responsible Land Management Honda’s North American manufacturing operations encompass more than 12,000 acres of land, including a number of environmentally sensitive areas. Big Darby Creek Enhancing Habitat in Canada In West Central Ohio, near Headwaters Preserve along the Each year more than 80 associates Honda’s Marysville and East headwaters of the creek. As from Honda Canada volunteer Liberty, Ohio, plants, are the part of the project, the Nature their time to enhance Spring headwaters of Big Darby Creek, Conservancy will recreate natural Creek (a signifi cant coldwater a state and national scenic river stream channels and restore stream) and the surrounding that serves as home to more fl oodplain habitats on more than area. Located on the east side As a steward of than 100 species of fi sh and 700 acres of land. of the Alliston, Ontario, auto these lands, Honda is committed to practices 40 species of freshwater mussels, plant, the creek is home to several During the past year, Honda also that protect and and is recognized by the Nature environmentally sensitive species, completed a detailed study of the enhance the land in Conservancy as one of the “Last including brook trout. In 2006, a manner compatible hydrogeologic characteristics Great Places.” associates planted 50 trees and with manufacturing of the Flat Branch, a headwater 350 native shrubs, including operations, farmland Since 1991, Honda has partnered tributary to Big Darby Creek. The red osier dogwood, alder berry, management and with the Nature Conservancy study will help to determine the environmental and willows, to stabilize the to support volunteer watershed best long-term management conservation. creek banks and provide shade. protection programs, water practices to protect both the Associates also removed three quality monitoring, and research. Flat Branch and the Big Darby truckloads of garbage, added This year, Honda announced a Creek. Recently, seven new six bird houses to the plant’s $300,000 grant to the Nature agricultural grass waterways blue bird trail, and removed Conservancy’s Ohio Chapter for were constructed to prevent soil an invasive species called land acquisition that will help erosion and sediment deposits garlic mustard that chokes establish the Big Darby Creek from entering the Flat Branch. out native wildfl owers. Soil Stabilization at Flat Branch Creek onda of America Mfg., Inc., Hand the Columbus Zoo in Ohio have partnered to manage the growth and health of willow trees that inhabit the banks of the Flat Branch, helping contribute to soil stabilization. The zoo periodically prunes the willows, using the trimmings as a vital addition to the diet of its moose population. Edward the moose, at the Columbus Zoo, enjoys a diet enhanced by willow tree branches pruned from willows located on the banks of the Flat Branch. 2007 NORTH AMERICAN ENVIRONMENTAL REPORT Honda 51 73942_50-53_Comm.inddCS2.indd 2 10/10/07 7:40:51 AM Environmental Community Activities Community Environmental Preservation Efforts Honda actively supports a broad range of organizations active in protecting their local environment. Living Lands & Waters Foundation Upper Chattahoochee Riverkeeper Student Conservation Association www.livinglandsandwaters.org www.chattahoochee.org www.thesca.org A group of volunteers has cleaned The Upper Chattahoochee Honda has provided ATVs and up more than 1,200 miles of Riverkeeper (UCR) uses advocacy, recently donated a Ridgeline Mississippi River bank and have education and research to protect pickup truck to the Student now added the Illinois River to and preserve the Chattahoochee Conservation Association for their mission. River Basin, the primary source desert restoration and forest of drinking water for more than fi re mitigation projects in North The River Project www.riverproject.org 3.5 million people in the region. Carolina, Florida and Michigan. The River Project has operated a San Francisco Baykeepers Ridley Sea Turtle Recovery Project private monitoring station at www.sfbaykeeper.org www.ridleyturtles.org Pier 26 of New York’s Hudson River With assistance from Honda, Joining a cooperative effort by the since 1986. Its Marine Biology San Francisco Baykeepers U.S. Fish and Wildlife Service, the Internship Program provides launched the fi rst power boat Gladys Porter Zoo in Brownsville, opportunities for students to on the entire West Coast to run Texas, and the government of become directly involved in the on clean-burning compressed Mexico, Honda donated 16 ATVs protection of signifi cant urban natural gas. It is being used in a to the Ridley Sea Turtle Recovery wildlife and habitat. high-visibility citizen monitoring Project. They are being used to program to detect and eliminate patrol the beaches of South Padre Tampa Baywatch www.tampabaywatch.org pollution in the bay and delta. Island, Texas, and more than 100 miles of remote beaches in the A nonprofi t stewardship program Ducks Unlimited dedicated to the protection and www.ducks.org Mexican state of Tamaulipas in an restoration of the Tampa Bay Ducks Unlimited (DU) conserves, effort to preserve the endangered Estuary, Tampa Baywatch has restores and manages wetlands sea turtle species. dedicated countless hours to and associated habitats for Auntie Litter salt marsh plantings, shorebird North America’s waterfowl and www.auntielitter.org protection and coastal cleanup. hundreds of species of wildlife, Honda Manufacturing of helping to preserve more than Alabama has partnered with Chesapeake Bay Foundation www.savethebay.cbf.org 220,000 acres of U.S. wetlands Auntie Litter, Inc., to increase The Chesapeake Bay Foundation in 2005. environmental awareness among elementary school students, is working to reduce pollution, South River Federation improve fi sheries, and protect/ www.southriverfederation.net including the development of a restore natural resources such as Dedicated to preservation, DVD that is being used in schools wetlands, forests and underwater education and outreach, the South throughout the state to promote grasses for the Chesapeake River Federation in Maryland the importance of recycling. Bay Watershed. aims to achieve widespread public understanding of the interconnection of individual and collective actions that affect the river’s health. 52 Honda 2007 NORTH AMERICAN ENVIRONMENTAL REPORT 773942_50-53_Comm.inddCS2.indd3942_50-53_Comm.inddCS2.indd 3 110/10/070/10/07 77:41:04:41:04 AMAM Environmental Community Activities Community Environmental Education Honda provides fi nancial support to a number of environmental education programs throughout the United States and Canada. Aquatic Adventures Science www.earthrangers.ca Education Foundation Earth Rangers www.aquaticadventures.org ith programs designed to complement the school curriculum, Founded in 1999, the Aquatic WEarth Rangers sends “Animal Ambassadors” and presenters to Adventures Science Education Toronto-area primary schools and community groups to teach Foundation in San Diego, children about nature and the environment. California, provides educational programs that connect underserved youth to science, inspire environmental action, and increase exposure to marine habitats. McHenry County Schools Environmental Education Program www.mchenry.k12.il.us/ enviro_ed_program.html The McHenry County Schools Environmental Education Program, in northern Illinois, credit: Allan Turner) addresses multiple issues of (Photo Earth Ranger’s animal ambassador inspires students to take action in ecological concern, such as solid the environment. waste disposal, over-consumption, watershed and water quality, Actua Eastern Michigan University preservation of biodiversity, and Actua’s Environment and Eastern Michigan University’s the connection between energy Engineering Program for Youth, innovative Design by Nature use, depletion of natural resources based in Ottawa, Ontario, features program introduces middle-school and global climate change. a “Dream Team” of instructors students to the cutting-edge in science, engineering and fi eld of environmental product Nature Canada technology who deliver design, which explores the Nature Canada brings Canada’s customized programming science of materials use and youth groups together with directly to underserved or product lifecycles. dedicated naturalists at disadvantaged youth. national parks, national marine Kirkmont Center conservation areas, and other Aullwood Audubon Center The Kirkmont Center in Zanesfi eld, protected areas to nurture a The Aullwood Audubon Center Ohio, serves thousands of children passion for nature and motivate and Farm in Dayton, Ohio, and adults every year. It has a students to become active provides hands-on environmental teacher-certifi ed naturalist staff stewards of the environment. experiences. It has promoted that provides environmental lifelong learning for adults and Chicago Botanic Garden educational instruction to 2,200 children for three generations. www.chicago-botanic.org individuals, 23 public schools, The Chicago Botanic Garden Environmental Education in and 10 other organizations. Center for Teaching and Learning Washington, D.C., Schools uses its 23 exhibition gardens for The Living Classrooms Foundation programs that engage learners provides unique environmental through hands-on interactive educational opportunities for experiences involving plant and at-risk youth in Washington, D.C., environmental science, ecology schools. and nature. 2007 NORTH AMERICAN ENVIRONMENTAL REPORT Honda 53 73942_50-53_Comm.inddCS2.indd 4 10/10/07 7:41:22 AM Our Responsibility to the Environment Environmental Technology Milestones First application of hybrid technology is made to an existing mass-market car: the Civic Hybrid. Honda FCX becomes the fi rst and only Honda develops hydrogen-powered breakthrough fuel cell fuel cell vehicle to stack: It starts and receive both U.S. EPA operates at temperatures and CARB certifi cation for below freezing while commercial use, and the fi rst to meet applicable World’s youngest improving fuel economy, federal motor vehicle fuel cell customer, range, and performance crash safety standards. 17-year-old Q’orianka Honda Soltec, LLC with reduced complexity. Kilcher, takes delivery established for production Honda begins Honda is fi rst with an of her Honda FCX in and sales of Honda- experiments with entire personal watercraft Los Angeles. developed CIGS solar World’s fi rst fuel cell a hydrogen Home lineup of 4-stroke engines. panels in Japan. Honda now produces only No. 1 fuel economy family, Jon and Sandy Energy Station (HES). 4-stroke PWCs. status maintained: Retail sales of natural Spallino, take delivery The Civic Hybrid is Honda has the highest gas-powered Civic GX of the fi rst fuel cell the fi rst hybrid vehicle World’s fi rst commercial corporate average fuel expanded from California vehicle leased to an certifi ed as an advanced application of a fuel cell economy (CAFE) rating to New York state. individual customer. technology partial zero- vehicle occurs. among the six major Honda develops plant- The city of Las Vegas, emission vehicle (AT- The city of Los Angeles automakers for the based bio-fabric for use Nevada, leases two Honda PZEV) by the California begins a lease program for 2006 model year. in automobile interiors. FCX vehicles. Air Resources Board. fi ve Honda FCX vehicles. 2007 2006 2005 2004 2003 2002 2001 Union of Concerned Honda announces it will First natural gas home FCX vehicles are leased First production Scientists names Honda aim for a 5% improvement refueling device, “Phill,” to the state of New York, motorcycle certifi ed “greenest automaker” in its U.S. corporate is offered for lease in the cities of San Francisco to meet California Air for the fourth consecutive average fuel economy California together with and Chula Vista, and the Resources Board 2008 time in its biennial (CAFE) from 2005 levels Honda Civic GX natural South Coast California emission standards, the report on automakers’ by 2010. gas vehicle. Air Quality Management Honda Gold Wing, is sold. environmental Honda introduces District. Honda is the fi rst performance. the iGX, a revolutionary 2005 FCX, Honda’s mass-market automaker intelligent computer- second-generation fuel to offer an entire lineup controlled general- cell vehicle, is certifi ed by of cars and light trucks purpose engine. It sets the U.S. EPA as a Tier 2 Bin 1 as low-emission vehicles an even higher standard (ZEV) vehicle and by the (LEV) or better: 2002 for fuel effi ciency and CARB as a zero-emission Honda and Acura models. North American debut quiet operation. vehicle (ZEV). of Honda FCX Concept with more compact, 2006 Civic hybrid Union of Concerned powerful and effi cient introduced 4th-generation Scientists gives Honda its V Flow stack points Honda IMA technology “Greenest Automaker” toward an all-new Honda with 50 mpg combined award. fuel cell vehicle to be EPA city and highway First V6 hybrid car is introduced in 2008. fuel economy. introduced: 2005 model year Honda Accord. First solar-powered hydrogen production and fueling station for fuel cell vehicles built and operated by an automaker opens at Honda R&D Americas’ Los Angeles Center. 54 Honda 2007 NORTH AMERICAN ENVIRONMENTAL REPORT 73942_54-56_Profile_rv1.inddCS2.54 54 10/16/07 12:05:50 PM Environmental Technology Milestones First CARB-certifi ed gasoline ultra-low- emission vehicle (ULEV) is introduced: the 1998 Honda Accord. Honda becomes the fi rst automaker to First gas-electric hybrid introduce low-emission vehicle is introduced in vehicle (LEV) technology North America: the voluntarily in mass- 2000 Honda Insight. market vehicles (Honda Honda becomes Civic) throughout the U.S. the fi rst automaker First CARB-certifi ed and Canada. in America to use gasoline super-ultra- waterborne basecoat low-emission vehicle World’s fi rst 360-degree paint in mass (SULEV) in the industry inclinable mini 4-stroke production. is introduced: the 2000 engine for handheld Honda Accord. power equipment is introduced by Honda. It Honda Introduces The Honda Civic is more fuel-effi cient and fuel-cell prototype CRX-HF is the fi rst mass- Honda introduces virtually smoke-free, with vehicles: the FCX-V1 produced 4-cylinder car 4-stroke marine engines ultra-low noise. and the FCX-V2. to break the 50-mpg that are cleaner, more First four-passenger fuel economy mark. fuel-effi cient and quieter advanced battery- than the 2-stroke outboard powered electric vehicle A Honda car is No. 1 motors standard at the is introduced and leased on the U.S. EPA list of time. Honda has manu- to customers: the 1997 most fuel effi cient cars: factured only 4-stroke out- Honda EV PLUS. the Honda Civic. board motors since 1973. 2000 1999 1998 1997 1996 1995 1989 1988 1986 1977 1974 1973 1971 First product of U.S. EPA recognizes The Honda Civic HX Fuel economy First car meets U.S. Honda announces any kind receives the the 1998 Honda Civic GX Coupe with a continuously leadership puts four Clean Air Act standards CVCC (Compound Vortex- Sierra Club Excellence natural gas vehicle as variable transmission Honda models on the solely through engine Combustion Controlled) in Environmental the cleanest internal is the only automatic U.S. government’s performance: the 1975 engine technology that Engineering Award: combustion engine it transmission vehicle to list of the 10 most Honda Civic CVCC. meets U.S. Clean Air Act the 2000 Honda Insight. has ever tested. make the U.S. EPA’s top-10 fuel-effi cient cars. Foundation technology standards without the need First vehicle is certifi ed Honda introduces list of fuel-effi cient cars. First gasoline low- for Honda’s achievements for a catalytic converter. as an advanced technol- ultra-quiet portable emission vehicle (LEV) in low-emission, high ogy partial zero-emission inverter generators that in the industry is intro- fuel effi ciency and high vehicle (AT-PZEV) by CARB: achieve substantially duced in California: the performance engines the 2001 Civic GX. higher fuel economy 1996 Honda Civic. is achieved with the First 50-state and lower emissions than announcement of VTEC ultra-low-emission conventional generators. (Variable Valve Timing and vehicle (ULEV), the 2001 Honda becomes the fi rst Lift Electronic Control) Civic, is introduced. company to introduce engine. an entire line of high- performance outboard motors that meet the U.S. EPA emission standard proposed for the year 2006. 2007 NORTH AMERICAN ENVIRONMENTAL REPORT Honda 55 73942_54-56_Profile_rv1.inddCS2.55 55 10/16/07 12:08:20 PM Our Responsibility to the Environment North American Corporate Profi le Capital Investment Suppliers/Purchasing More than $9 billion in North America More than $17.6 billion in North American parts and materials purchased by Honda from more than Employment 600 original equipment suppliers in the fi scal year More than 35,000 associates in North America ending March 31, 2007 Major Business Segments Honda manufactures, sells and services a broad array of automobile, power equipment, and power sports products in its North American region. It is Honda’s single largest market for the production and sales of Honda and Acura automobiles, and as such represents a signifi cant part of the company’s global effort to reduce its total environmental footprint, particularly from automobile production and in-use CO2 emissions. Segment Automobiles Power Sports Products Power Equipment Fiscal Year 2007 More than 1.75 million cars More than 501,000 motorcycles, all-terrain More than 3.1 million engines Sales and light trucks vehicles, and personal watercraft and power equipment products Dealer Network More than 1,500 Honda and Acura dealers More than 1,300 Honda dealers More than 2,000 Honda dealers Products Passenger cars, minivans, sport utility Motorcycles, scooters, all-terrain vehicles, Lawn-and-garden equipment, generators, vehicles, and light trucks and personal watercraft general-purpose engines, and outboard engines Customers in the North American region In 2006, customers in North America Honda markets a complete range purchased more than 1.75 million Honda purchased more than 500,000 Honda of power equipment products for and Acura automobiles in calendar motorcycles, motor scooters, all-terrain commercial, rental and residential use, 2006. In recent years, the company has vehicles, and personal watercraft for including lawn mowers, generators, expanded its offerings in both the small recreational and professional purposes. tillers, trimmers, and outboard marine car and light truck categories to meet the Virtually all of these products use engines. The company also supplies diverse needs of its customers in North inherently cleaner, quieter and more more than 2.3 million engines annually America. The company has also diversifi ed effi cient 4-stroke engine technology. The to more than 200 original equipment its powertrain technology to include company continues to advance its fuel manufacturers. The company is a leader high-effi ciency gasoline, gas-electric economy and emissions performance, in the application of advanced OHV hybrid, and compressed natural gas and is actively engaged in educating and 4-stroke engine technology, applied to its (CNG) — as well as hydrogen-powered training its customers concerning the entire North American product lineup for fuel cells. Moreover, the company safe and environmentally responsible use a long time, and is consistently among the is applying advanced fuel effi cient of their Honda products. industry’s leading companies in meeting technologies to all of its cars and light and exceeding all applicable emissions trucks, making it the most fuel effi cient and product performance standards. car company in the United States and Canada for the 2006 model year. The latest Honda power equipment product: the freewatt™ micro-cogenerator Honda’s Civic GX is powered by the In addition to meeting strict Tier 2 provides heat and electricity for the home cleanest internal combustion engine emissions standards, the Gold Wing is the with up to 30 percent less CO2 emissions ever tested by the U.S. EPA. fi rst motorcycle equipped with an airbag. than a conventional home heating system. 56 Honda 2007 NORTH AMERICAN ENVIRONMENTAL REPORT 773942_54-56_Profile.inddCS2.indd33942_54-56_Profile.inddCS2.indd3 3 110/10/070/10/07 88:11:47:11:47 AMAM Honda Companies Covered by the Report United States American Honda Motor Co., Inc. Honda North America, Inc. Honda of America Mfg., Inc. Honda Mfg. of Alabama, LLC Honda Power Equipment Mfg., Inc. Honda of South Carolina Mfg., Inc. Honda Transmission Mfg. of America, Inc. Honda Engineering North America, Inc. Honda R&D Americas, Inc. Honda Trading America Corp. Honda Precision Parts of Georgia, LLC Honda Aircraft Company, Inc. Honda Aero, Inc. Key Locations Canada Major Manufacturing Facilities Honda Canada, Inc. Major Manufacturing Facilities (under development) Honda of Canada Mfg., a division of Honda Canada, Inc. Research and Development Centers Honda R&D Americas, Inc. (Canada) Parts Centers Mexico Sales and Marketing Headquarters Honda de Mexico, S.A. de C.V. More information on Honda and Acura products can be found at: U.S. www.honda.com Canada http://www.honda.ca Mexico http://www.honda.com.mx 73942_CMYK_Cover_rv1.indd C4 10/16/07 12:19:56 PM The 2007 Honda Environmental Report is printed with soy-based inks on recycled paper containing 100 percent postconsumer waste fi ber. The paper is manufactured with wind power and certifi ed by the independent, nonprofi t U.S.-based Green Seal organization and by the independent, U.K.-based Forest Stewardship Council (FSC). The report is also 100 percent recyclable. ©2007 Honda. Advanced Compatibility Engineering (ACE) is a trademark of Honda Motor Company, Ltd., covered by patent rights issued and/or pending. All other trademarks, trade names, service marks and logos referenced herein belong to their respective companies. All images contained herein are either owned by American Honda Motor Co., Inc., or used under a valid license. It is a violation of federal law to reproduce these images without express written permission from American Honda Motor Co., Inc., or the individual copyright owner of such images. Specifi cations, features, illustrations and equipment shown in this report are based upon the latest information available at the time of printing. Although descriptions are believed to be correct, accuracy cannot be guaranteed. http://corporate.honda.com ©2007 American Honda Motor Co., Inc. NAER 2007 773942_CMYK_Cover.indd3942_CMYK_Cover.indd CC11 110/10/070/10/07 33:27:39:27:39 AMAM