2014 Environmental Report Honda South America

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2014 Environmental Report Honda South America Index Global Introductory Information G2 Introductory Information G3 Company Overview / Financial Information G4 Third-Party Verification G5 Key Indicators of Honda’s Environmental Performance / Environment-Related About the Honda Environmental Annual Report External Relations Activities G6 Top Message ● A regional approach to business and the environment G8 Roundtable Meeting of the Six Regional Environmental Committee Chairs Guided by a philosophy of building products close to the customer, Honda has manufacturing operations in six regions worldwide. In fiscal 2014, these G15 Special: Environmental Frontrunner Yorii Automobile Plant Starts Production! activities brought joy to people worldwide through the sale of roughly 27 million products.

To continually create competitive products that anticipate customer needs in all six regions, we've shifted to a new global operational structure that G17 Direction G18 The Road to a Healthier Environment gives each region more autonomy for doing its job. This also applies to environmental management: Each region is now implementing initiatives it G19 Honda Environment Statement / Honda Environmental and Safety Vision deems most effective for meeting local environmental laws and standards and tackling local challenges. G20 Pursuing the Honda Environmental and Safety Vision Global G26 Biodiversity Initiatives ● Global report and six regional reports G27 Progress in Meeting Environmental Targets For reporting on the environmental activities across our global organization, we've broken down our annual environmental report into one global Global initiatives report and six regional reports. G31 Products Honda Environmental Annual Report 2014 conveys our global stance on environmental issues, our vision for a better future, and the results of efforts G32 Next-Generation Technology to make our products and business activities more environmentally responsible. The regional reports provide a more in-depth look at these activities in G34 Motorcycle each region. By issuing all seven annual reports, we are making an active effort to disclose information on initiatives and results in every corner of world. G37 Automobiles G41 Power Products Regional unit sales and environmental reports (FY2014) G44 Management Latest data as of March 31, 2014 G45 Global Environmental Management 5 1 G50 Global Environmental Impact G51 Regional Environmental Topics

Honda South America 57 Honda South America 6 Iniciativas na América do Sul 58 Message from the President of Honda South America 59 Eight Business Activities of Honda South America ASING RCH PRO PU DU 61 1. Product development CT IO N 64 2. Purchases | Green Purchasing 3 T T N C E U M D A P D 65 3. Production | Green Factory O O M R L I P E N

V I S E T

D R 82 4. Transportation | Green Logistic

N 86 5. Sales and services | Green Dealer 4 2

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T 87 6. Product Recycling T

M N

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O 88 7. Administration | Green Office F

T R

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N 90 8. Information Technology | Green IT Europe/

G North South Asia &

I 1 2 China 6 Japan

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S Global 3 Middle East/ 4

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R America America C

V Oceania

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91 Environmental awareness-building actions

D Africa

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D 97 Acknowledgements E nvironmental

環境年次 reports レポート

2014 Environmental Report Honda South America Motorcycles 17,041,000 289,000 1,647,000 312,000 13,260,000 1,305,000 225,000 Honda’s environmental activities worldwide and in South America – Argentina, Brazil, Sustainability Department – Honda South America Chile, Colombia and Peru. Rua Dr. José Áureo Bustamante, 377 Automobiles 4,362,000 1,751,000 161,000 252,000 560,000 788,000 848,000 Global information: Santo Amaro - São Paulo (SP) - Brasil Period related to the activities undertaken between April 2013 and March 2014 (fiscal year CEP 04710-090 2014, in Japan). Power products 2,718,000 137,000 1,155,000 1,129,000 582,000 312,000 The current report and other information on the subject may be found on the website: and other 6,036,000 Information on South America: www.honda.com.br/socioambiental Period related to the activities undertaken from January 1st to December 31st, 2013. Please, forward queries, comments or suggestions to: *Report covers from 2013 are shown for all regions except Japan. The 2014 editions of these reports will be published soon in 2014. Release date: [email protected] August 2014. G2 Global

Introductory Information

Company Overview/Financial Information Third-Party Verification

Company overview To disclose environmental impact data in a more transparent and reliable manner to our diverse stakeholders, Honda obtained third-party verification of the following information from Bureau Veritas Japan Co., Ltd.1 Company name： Honda Motor Co., Ltd. 〈 Organizational scope of verification〉 Environmental impact data from Honda Motor Co., Ltd., and Head office： 2-1-1 Minami Aoyama, Minato-ku, Tokyo 107-8556, Japan 469 consolidated and affiliated companies in Japan and overseas. Established： September 24, 1948 Environmental impact data verified： Energy consumption, greenhouse gas emissions, water use, President & CEO： Takanobu Ito wastewater volume, waste generated, waste recycled, waste directly landfilled, waste sold for reuse,2

2 2 Capital： ¥86.067 billion (as of March 31, 2014) atmospheric pollutant emissions (NOx, SOx), VOC emissions, PRTR emissions, CO2 emissions from product use (scope 3, category 113) Sales： Consolidated：¥11.842 trillion Unconsolidated：¥3.488 trillion (results of FY2014)

Number of associates： Consolidated： 198,561 (as of March 31, 2014) Unconsolidated： 23,467(as of March 31, 2014)

Consolidated subsidiaries：365 (as of March 31, 2014)

Major products：〈Motorcycles〉 Scooters, mini-bikes, motorcycles, and ATVs

〈Automobiles〉 Standard-sized vehicles, compact vehicles, and mini-vehicles

〈 Power products 〉 Tillers, Generators, Power product engines, lawnmowers, marine outboard engines,

Snow blowers, and household gas engine cogeneration units

Financial information

Net sales Operating income Net income

(¥ billion) (¥■ billionUnconsolidated ) ■ (¥Unconsolidated billion■ Consolidated) ■ Unconsolidated ■ Consolidated ■ Consolidated■ Unconsolidated ■ Unconsolidated ■ Consolidated■ Unconsolidated ■ Consolidated ■ Consolidated■ Unconsolidated ■ Unconsolidated ■ Consolidated■ Unconsolidated ■ Consolidated ■ Consolidated 15,000 15,000 15,000 (¥ billion) (¥ billion) (¥ billion) (¥ billion) (¥ billion) (¥ billion)

(¥ billion(¥) billion■ Unconsolidated ) ■ Unconsolidated ■ Consolidated■ Consolidated ■ Unconsolidated ■ Unconsolidated ■ Consolidated■ Consolidated600 600 ■ Unconsolidated 600 ■ Unconsolidated ■ Consolidated■ Consolidated (¥ billion) ■ Unconsolidated ■ Consolidated 800 ■ Unconsolidated 800 ■800 Consolidated ■ Unconsolidated ■ Consolidated 15,000 15,000 (¥ billion(¥) billion) (¥ billion(¥) billion) 15,000 (¥ billion) (¥ billion500 ) 500 500 10,000 10,000 10,000 600 600 600 600 600 800 800 400600 400 400 800 500 500 400 400 400 300500 300 300 10,000 10,000 600 600 10,000 600 400 400 200400 200 200 5,000 5,000 5,000 200 200 200 400 400 300 300 400 100300 100 100

0 0 0 200 200 2000 0 0 5,0005,000 5,000 200 200 200

0 0 0 -200 -200 -200 -1,000100 -1,000100 100-1,000 2010 2011201020122011201320122010201420132011(FY) 20142012(FY)020132010201402011(FY)201020120 2011201320122010201420132011(FY) 20142012(FY)2013201020142011(FY)201020122011201320122010201420132011(FY) 20142012(FY)2013 2014 (FY) 0 0 0

0 0 0 -200 -200 -200 -1,000 -1,000 -1,000 201020102011 201120122010201220132011201420132012(FY)20142013(FY)2014 2010(FY) 20112010201220112010201320122011201420132012(FY) 20142013(FY)20142010(FY)2011 20122010201320112010201420122011(FY)2013201220142013(FY)2014 (FY) ■ Unconsolidated ■ Unconsolidated ■ Consolidated■ Unconsolidated ■ Consolidated ■ Consolidated Number200,000 of200,000 associates200,000 Net sales by operational area Net sales by region Power prodPuocwtser proFinancialducPtoswer servicespFinancialroducts servicesFinancial services Other Other Other (consolidated: FY2014) （consolidated: FY2014） and otherand other5.9％ and other5.9％ 5.9％Asia Asia 10.0%Asia 10.0% 10.0% ■ Unconsolidated ■ Unconsolidated ■ Unconsolidated ■ Consolidated■ Consolidated■ Consolidated 2.6％ 2.6％ 2.6％ 150,000200,000200,000150,000200,000 150,000 21.2% 21.2% 21.2% MotorcyclesPowMotorcycleser p rPoodwucetrs pPMotorcyclesr oowdFinancialuecr ptsrodu servicescFinancial ts Financial services services Other Other Other and other 14.0％ 14.0％and otherand14.0％5.9％ other 5.9％ 5.9％ Asia Asia 10.0%Asia 10.0%10.0% 2.6％ 150,000 2.6％ 2.6％ 21.2% 21.2% 21.2% 100,000150,000100,000150,000 100,000 Europe Europe Europe Motorcycles North North North MotorcyclesMotorcycles 5.6% 5.6% 5.6%America America America 14.0％ 14.0％14.0％ 47.0% 47.0% 47.0% Japan Japan Japan 100,000 50,000100,00050,000100,000 50,000 Europe 16.1% 16.1% No16.1%rth AutomobilesAutomobilesAutomobiles EuropeEurope North North 5.6% America 77.5％ 77.5％ 77.5％ America America 5.6% 5.6% 47.0% Japan 47.0% 47.0% 50,0000 0 0 Japan Japan 50,000 50,000 16.1% 2010 2011201020122011201320122014201020132011(FY) 20142012(FY)2013 2014 (FY)Automobiles 16.1%16.1% 77.5％AutomobilesAutomobiles 77.5％ 77.5％ 0 1. Bureau Veritas Japan Co., Ltd., frequently conducts internal protocol reviews for Honda to ensure that its operations comply with the latest best practices as well as various 20100 20110 2012 2013 2014 (FY) 2010 20112010201220112013201220142013(FY)2014 (FY) published standards, including ISO 14064-3, an international standard on greenhouse gas emissions; AA1000, a standard used for auditing of non-financial information; the Global Reporting Initiative's G4 sustainability reporting guidelines; and International Standard on Assurance Engagement (ISAE) 3000. 2. Data from Japan only 3. Scope 3, category11 calculations cover the emissions of about 90% of all motorcycles, automobiles, and power products sold worldwide under the Honda brand name. These emissions are calculated using the following formula for each model and adding the results: CO2 emissions × Annual distance traveled (for power equipment: annual usage in *See Honda Annual Report (PDF) for detailed financial information. hours) × Product lifetime in years × Annual unit sales

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Introductory Information Top Message

Key Indicators of Honda's Environmental Performance Striving to realize the joy CDP Global 500 Climate Change Report 2013 17th Nikkei Environmental Management Survey and freedom of mobility 1st in Japan 4th place In the Carbon Disclosure Project's 2013 survey1 of Global 500 companies,2 Honda ranked fourth out of 1,729 manufacturers examined in the 17th and a sustainable society Honda earned the highest disclosure score among Japanese corporations. Environmental Management Survey by news publishing company Nikkei

We were also among 12 leading global corporations for earning Inc. exceptionally high marks in areas related to both disclosure content where people can enjoy life Buna-no-Mori Environmental Survey 2013 and results.Furthermore, we were included in the Climate Disclosure

Leadership Index (CDLI) for the third consecutive year, and was also among Rank A

56 companies included in the Climate Performance Leadership Index (CPLI), Honda earned the highest rank, rank A, in the 2013 Buna-no-

an index of companies selected for demonstrating leadership in Mori environmental survey by Sompo Japan Nipponkoa Risk

combating climate change, in which we earned a performance Management Inc. and was also selected as a component of the In 2010, Honda announced its direction for the decade leading up to 2020: to provide "good products to score of A, the highest. Buna-no-Mori eco-friendly investment fund. customers with speed, affordability, and low CO2 emissions." The Honda Environmental and Safety Vision̶to realize "the joy and freedom of mobility and a sustainable society where people can enjoy

1. Carbon Disclosure Project (CDP) is an international non-profit managing the life"̶was established based on this direction. world's largest database for companies and other organizations to disclose, manage, and share information related to climate change mitigation. The group also publishes Providing the joy and freedom of mobility has been Honda's aim in the development of personal mobil- its own analysis of this data. 2. Global 500: The 500 largest companies (by market capitalization) that make up the ity products since its founding. The joy of mobility is not just the pleasure of driving your own car or FTSE Global Equity Index Series. motorcycle. It's also the excitement of making discoveries and realizing dreams through the freedom that mobility provides. Environment-Related External Relations Activities Realizing a sustainable society where people can enjoy life, a more formidable challenge, will require

Honda is a member of the World Business Council for Sustainable Honda also conducts various external relations activities in us to focus corporate resources on addressing climate change issue and energy issue as top priorities.

Development (WBCSD), and a member of the WBCSD's Urban collaboration with policy makers in each region. We advise To realize the two components of our Environmental and Safety Vision, we will lead the industry in

Infrastructure Initiative (UII) Core Group. We took part in the UII regional and national governing bodies on how to make mobility offering outstanding environmental and safety performance with products and technologies that

Core Group, which released its final report on April 7, 2014, by systems environmentally responsible from a technological proudly bear the Honda name.

drawing up plans for sustainable mobility infrastructure. standpoint, partner with governments for conducting technology

We also are participating in Sustainable Mobility Project 2.0. development projects, and serve on committees held by national

government agencies.

Public-Private Partnerships:

E-Kizuna Project (Saitama Prefecture, Japan),

California Fuel Cell Partnership (California, U.S.), and others

UII Final Report

Photo: No. 1 Balancing Reservoir, Kumamoto Factory 社長緒言（1/2） G5 G6 Global

Top Message T op M essage Roundtable Meeting of the Six Regional Environmental Committee Chair

A step closer to truly globalized operations

Last year, I expressed our commitment to increasing the autonomy of Honda operations across Making the world all six regions,1 and explained that this would help us adapt the structure and management of our business to the environmental rules and issues that are unique to each country and region. Much has happened since then. Last year, we launched or began construction of new, more a happier place for everyone environmentally friendly production facilities in Japan, India, China, Mexico and other countries. We started operating a wind farm in North America, and broke ground on a new wind farm in South —through our products, as a company America, with plans to complete the project by fall 2014. In Europe, we released new models equipped with cutting-edge environmental technologies, and made steady progress on business reform. And while Japan has always functioned as a global command center, to better distinguish domestic business from global business, we launched a new headquarters for Japan Operations and separated it from the part of our organization with global management responsibilities. All of these changes will give each region greater leeway in executing their assigned roles. Organically linking these independent operations will have the effect of maximizing Honda's Honda manages its global production and sales networks through an organization divided into six overall strength, and bring us that much close to being a truly globalized company. regions: North America, South America, Europe, Asia & Oceania, China, and Japan. Six regional environ -

1. Hond a organizes its global operations into six regions: Japan, North America, South America, Europe, China, and Asia & Oceania. mental committees, one for each region, set their own policies and plans for environmental initiatives, See page G02 to learn more. based on the global direction, and supervise and evaluate the divisions that carry out those plans. As Honda moves to realize truly globalized operations, how will each region tackle its own environmental Awareness of the challenges at the start challenges? The six regional environmental committee chairmen share their outlook on the coming year. of a new three-year plan

At Honda, we strive to minimize CO2 emissions and the various other environmental impacts Interviewer: Michio Shinohara, General Manager, that come from our products and business activities. These efforts are systematically outlined in Environment & Safety Planning Ofﬁce a mid-term environmental action plan that is updated every three years. For products, we are intensifying efforts to increase energy efﬁciency; to improve the ease with which products can be dismantled, and the components reused and recycled; to reduce emissions; and eliminate and responsibly manage the use of potentially harmful chemical substances. And for business activities, we are taking concrete steps to realize the Honda Issao Mizoguchi Toshiaki Mikoshiba Sho Minekawa Takuji Yamada Seiji Kuraishi N oriaki Abe Environmental and Safety Vision based on a clear awareness of the size of impacts generated by Honda South America Honda European Honda Japan Honda North America Honda China Honda Asia & Oceania these activities. Regional Environmental Regional Environmental Environmental Regional Environmental Regional Environmental Regional Environmental Committee Chairman Committee Chairman Committee Chairman Committee Chairman Committee Chairman Committee Chairman 2014 marks the start of a new mid-term plan for environmental initiatives at Honda, and is also

the midway point on our path to achieving the 2020 Product CO2 Emissions Reduction Targets announced in the Honda Environmental and Safety Vision. We have thus chosen "Sustain and Strengthen" as the slogan for this critical three-year period. In the spirit of this slogan, we have set two priority policies for the new mid-term plan: to sustain

CO2 emissions reduction initiatives proposed in the last three-year period and leverage them for our global strategy, and to strengthen environmental management across our value chain by incorporating all three scopes of corporate activity designated in the Greenhouse Gas Protocol, from upstream suppliers to downstream customers. June 2014 Takanobu Ito President & CEO Chairman, Honda World Environment and Safety Committee

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T op M essag e Roundtable Meeting of the Six Regional Environmental Committee Chairs

Abe: Asia & Oceania is an extremely large region that includes more than 20 countries "We'll continue working to keep the air blue, and region. Economic conditions vary by country, and people's awareness of environ - the water clear, and the land green." mental issues and their response to them are vastly di erent. Last fiscal year was a difficult time in places like India and Thailand, huge automobile markets that experi - enced a slowdown in economic growth. Nonetheless, we sold a record-setting 560,000 units, thanks in part to the launch of our much-awaited fuel-efficient diesel models in India. Environmental awareness seemed to rise across Asia as a whole, with countries like Thailand and Indonesia issuing policies that favor fuel-efficient low-emission vehicles, and Malaysia moving toward incentives for foreign manufacturers to produce energy-efficient vehicles.

Kuraishi: China is the largest mobility market in the world, with automobile sales exceed- ing 20 million units a year. Last year, the market continued its momentum by growing Region introductions and recent developments more than 10%. Honda grew by more than 25%, partly because of new models introduced in the second half of the ﬁscal year. As for the environment, however, the air pollution Please tell us what characterizes your regionin terms of economics and the problem is getting serious. The issue has become a hot topic across the country, and our environment, and also what developments have taken place in the last year. customers are becoming increasingly concerned about the environment. And of course, Yamada: In North America, the U.S. market has been on a moderate recovery trend. China, like Europe, will soon issue its own CAFE regulations,1 which will be the toughest Takuji Yamada Housing starts are rising and the economy is gaining back its normal strength. Honda in the world. Honda North America Regional Environmental Committee Chairman automobile sales have also started to recover, with sales increasing year over year. On the environmental front, while North America has always been an environmentally progressive region with a keen awareness of environmental issues, a number of "We're going to raise the value of our company and products extreme weather events last winter hit home the fact that the global environment is changing—Niagara Falls freezing over and Georgia issuing a state of emergency by further increasing our utilization of renewable energy." because of a snowstorm, to name a few.

Mizoguchi: The South American economy has been growing steadily for the last decade with the support of increased credit, which has also pushed up sales of motor Minekawa: Japan has been implementing a series of economic policies, dubbed Abenom - cycles and automobiles. The balance on this debt has grown too large, however, and ics, to overcome a long period of deflation that has continued since the bubble collapsed it's starting to weigh on market growth. Environmentally speaking, one positive in the early 1990s. The economy is now back on a modest recovery track, but high fuel development was the switch last year from S50 to S10 diesel fuel, which brought the prices and electricity rates remain unchanged, with little prospect for improvement. sulfur limit down to 0.001% from 0.005% and resulted in significantly cleaner exhaust Within this environment, We got a real sense this year that more and more consumers are turning to energy-efficient and fuel-efficient products. gas and emissions from trucks and buses. One negative development has been the decline in rainfall in Brazil over the last several years, which has driven a rise in thermal power generation despite the country's extensive hydrop ower infrastructure.

Issao Mizoguchi Mikoshiba: Europe is home to a number of key players in the automotive market and Fiscal 2014 in review Honda South America poses a challenge to foreign brands like Honda that are looking to enter or grow in Regional Environmental Committee Chairman the market. On top of that, the economy has been stagnant since the 2008 financial Major themes of the past year, then, include the spread of diesel technology crisis; the automobile market has contracted from 16 million to 12 million units per to regions other than Europe, its main market, and the rise of environmental awareness in Asian countries. Next, please tell us how environmental initia- year. These economic conditions have led people to become increasingly sensitive to tives fared in fiscal 2014, and any other important topics related to Honda's the environment and fuel efficiency, accelerating the move to small turbocharged products or business activities. engines and diesel engines. Right now, diesel models make up more than 50% of all

unit sales. Meanwhile, the toughest emission regulations in the world will go into Yamada: In North America, the Accord Hybrid was named Green Car of the Year, and eect in 2020, which will require us to reduce average CO 2 emissions per vehicle to 95 Honda was recognized by the U.S. Environmental Protection Agency for having the g/km. highest ﬂeet-average fuel economy among 11 automakers for 2012 models. In production, we built two wind turbines that will supply around 10% of the annual

1. Corporate Average Fuel Economy. Regulations that place a lim it on the average fuel efﬁciency of all vehicles sold by an automaker.

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T op M essag e Roundtable Meeting of the Six Regional Environmental Committee Chairs

Kuraishi: In China last year we introduced the new Accord, Crider, and Jade. Going electricity needs of our automobile transmission plant in Ohio. The number of dealers forward we will further expand the Earth Dreams Technology series to improve fuel who started contributing to environmental conservation through the Green Dealer efficiency and continue meeting market needs. Expanding our green vehicle lineup, program also increased significantly. At the end of fiscal year, we were left with the including hybrid vehicles, will be a critical factor in meeting China's CAFE regulations. impression that environmental awareness drove significant actions on all fronts—for That's why we started using the name FUNTEC to designate Honda's advanced the products themselves and in production and sales. environmental and safety technologies and succinctly express the idea that Honda engines are both fuel efficient and fun to drive. Since environmental regulations in China are getting tougher on motorcycles as well, last year we started considering ways we can provide FI at lower costs. This will help us stay ahead of the competition "We'll use a new series of products in terms of having the highest FI adoption rate. to strengthen Honda's brand image."

"We need to demonstrate environmental leadership in all aspects of our business." Mizoguchi: In South America, we produced our 3 millionth flex-fuel 1 motorcycles, and also released flex-fuel versions of the Civic and CR-V, which—for the first time at Honda—don't require a secondary tank and can start without gasoline. In logistics, we introduced the double-trailer truck, in which a single tractor truck hauls two contain- Minekawa: The biggest topic in Japan last year was the opening of our new Yorii ers, allowing us to transport twice the cargo volume using nearly the same amount of Automobile Plant. The plant started operations at the forefront of production world -

energy. And of course there is the wind power facility we are currently building for our wide, cutting per-unit CO 2 emissions by 30% compared to existing Honda plants. For automobile plant in Brazil. We broke ground in March 2013 and expect to complete products, we rolled out hybrid and plug-in hybrid models of the Accord amidst a the project in September 2014. We will have nine 3-megawatt(MW) wind turbines —a growing consumer preference for green cars. The new Fit Hybrid's outstanding fuel Toshiaki Mikoshiba total of 27 MW in generation capacity—which is enough to cover all of the electricity performance of 36.4 km/liter also drew attention. I think we made a big step forward Honda European needs of our automobile plant in Sumaré. Regional Environmental Committee Chairman as a company by delivering products that met the market's expectations regarding fuel efﬁciency as it trended toward smaller cars. Another big achievement was captur - Mikoshiba: In Europe, we expanded the application of our 1.6-liter i-DTEC diesel ing new market needs through the launch of the environmentally advanced Dunk 50 engine, initially released in the Civic 5-door, to the CR-V and Civic Tourer, giving us cc-class scooter, and a new two-stage snow blower with FI technology. our ﬁrst lineup of Earth Dreams Technology vehicles. In corporate initiatives, we have Noriaki Abe continued to ramp up renewable energy use in production, and have also built a Honda Asia & Oceania Regional Environmental Committee Chairman system to collect and recycle used hybrid batteries. Another key topic in Europe was our participation in fuel cell vehicle projects, such as the H2Mobility project 2 in the U.K. and the Pan-European HyFive project. 3 Future initiatives and aspirations

Thank you very much. Lastly, as Honda moves toward truly globalized opera - Abe: In Asia & Oceania, we introduced in India our long-awaited Amaze and City tions, please tell us the direction your region is headed and what aspirations diesel vehicles, which achieved a record of more than 130,000 vehicles in combined you have for tackling environmental issues. annual sales. Both have received outstanding reviews from customers, and have become a topic of discussion even inside the industry because of their high fuel Yamada: This is not limited to North America of course, but Honda has always devel- economy. In Malaysia, we had the best-selling hybrid vehicle for the second year oped products with a focus on fuel efficiency and environmental performance. Honda running, and we have received a positive response for our decision to begin localized was the first to meet the requirements of the U.S. Clean Air Act for automobiles, and hybrid production ahead of our competitors. For motorcycles, we installed electronic was also the first company to introduce four-stroke engines for motorcycles and fuel injection (FI) 4 in all production models in Indonesia, the second country after power equipment. Honda's mobility lineup today runs the entire gamut of possibili- Thailand where we've achieved this. Aside from products, in India, Malaysia, and ties—from on road to o-road, to over the water and through the air. It's probably safe Indonesia, we began operating new plants fitted with the latest environmental to say that Honda can take you anywhere you want to go. We went even further last

technologies for reducing CO 2 emissions. March when we opened up a concept home in the U.S. called Honda Smart Home. That project is an experiment to see if we can use Honda technologies to also help preserve the environment in the places we all live. We all know that the Earth is blue when seen from space. To keep the air blue, the water clear, and the land green, it's important that we create products that are environmentally responsible in all

1. A vehicle that can run on varying proportions of more than one type of fuel, in this case gasoline and bioethanol. 2. A partnership of UK industry leaders and central and local governments, working to make hydrogen-fueled transport a reality. 3. See page G52 to learn more about HyFive project. 4. Programmed Fuel Injection (PGM-FI)

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T op M essag e Roundtable Meeting of the Six Regional Environmental Committee Chairs

aspects of our business. We're committed to being a company that thrives on contrib- Kuraishi: A major task in China will be to see how quickly we can meet the world's uting to a beautiful world for future generations. toughest environmental regulations. I myself live in Beijing, so I personally under - stand the significance of air pollution caused by fine particulate matter and yellow Mizoguchi: In South America this year, we plan to eliminate the secondary tank from dust. Awareness of these issues will only get stronger. That said, tackling environmen - all flex-fuel automobiles. We will also add fuel injection to more low-emissions tal issues is what Honda does best. We should see the current state of aairs as an motorcycles. Once our wind power facility starts operating in September and opportunity, and try various things to resolve them. The first thing we can do is use succeeds as a business, we will start looking into expanding this project to our motor - hybrid and turbocharging technologies to provide better fuel economy along with fun cycle plant in Manaus, Brazil. This plant is already equipped with cutting-edge waste- driving performance, and be the first company to meet China's CAFE regulations. To water treatment facilities, so the use of renewable energy in this plant will shrink its do that, we will continue to promote our FUNTEC campaign1 so customers can easily environmental footprint even further. When you consider these initiatives, South recognize Honda's hybrid and other environmental and safety technologies. Honda's America has the highest proportion of renewable energy utilization of all regions in environmental slogan, "Blue Skies for Our Children," fits China perfectly. Realizing Honda's global operations. In other words, Honda is doing some amazing things to this slogan in a place with such horribly polluted air would be a dream come true. This conserve the environment in South America, but not many people know this to be the idea will inspire us to keep pressing forward. case, even people within Honda. We're going to make sure everyone knows about our initiatives, and raise the value of our company and products.

"We will promote our FUNTEC campaign so customers "Japan must continue to stand out can easily recognize Honda's environmental and safety technologies." and play a vital role in Honda's global business."

Mikoshiba: The economic environment in Europe will remain challenging, so the first item on our agenda is to make sure more customers benefit from our Earth Dreams Technology series. We will also do everything we can to promote the new series of products that will be coming out, such as the Civic Type R and NSX, two models that symbolize Honda's eorts to evoke a sporty Minekawa: Honda is increasing the autonomy of each region in order to accelerate and advanced image in Europe; the Jazz (Fit), a globally strategic model; and the European operations and become a more competitive company worldwide. As part of this eort version of the diesel-equipped Compact SUV (sold as Vezel in Japan). We also plan to re-enter to realize truly globalized operations, we launched a new headquarters for Japan Formula One racing competition starting next year. F1 has incorporated hybrid technology into Operations last April. Honda was raised by Japan into a globally competitive corpora- its engine regulations, so we can expect environmental technologies to play a larger role in tion. We believe the new headquarters is the perfect way for Japan to operate so that it continues to stand out and play a vital role in all aspects of Honda's global business. Seiji Kuraishi competition going forward. F1 can also have an incredible influence on the value of a company's That means Japan needs to lead the world and stay at the cutting edge of environmen- Sho Minekawa Honda China brand in Europe, so we'll push hard to promote Honda's brand image. We're hoping to pioneer Honda Japan Regional Environmental Committee Chairman initiatives that fit Honda's reputation as an environmental leader. tal technology as well. For example, we want to be the first to oer a solution to the Environmental Committee Chairman recycling of used lithium-ion batteries from hybrid vehicles. When the world comes to

Abe: Likewise in Asia & Oceania, we need to continue improving our environmental performance us with problems, we want to have answers. In that spirit, let's keep moving forward, from the standpoint of being a company society wants to exist. As the automobile market one step at a time. expands with the rise of the middle class, we need to demonstrate environmental leadership in all aspects of our business. One way we can do that is by making all Honda gasoline vehicles You've o ered some inspiring messages as chairmen of the regional environ - mental committees and Chief Operating Ofﬁcers of each region. Thank you. compliant with Euro 41 or higher emissions standards before our rivals. So it's important that we use our popular diesel models and CNG vehicles to fully communicate Honda's ambitions regarding fuel economy and the environment. As the world's leading manufacturer of motorcycles, we will expand the all-FI campaign we started in Thailand and Indonesia to Vietnam, and also include our Idling Stop System in all major scooter models. We also hope to enhance our presence in the rapidly growing Indian market, and maintain our lead in providing fuel-efﬁcient motorcycles by introducing new low-friction technologies.

1. See page G53 to learn more about FUNTEC campaign. 1. Exhaust emission regulations introduced in Europe in 2005.

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overspray. This eliminated the ● Energy-saving displacement ventilation Environmental Frontrunner Yorii Automobile Plant Starts Production! need to dehumidify the process The Yorii Automobile Plant's air when recycling it, resulting in a displacement ventilation system

1 42% reduction in CO2 emissions, uses the buoyancy of heated and also made it possible to air inside the plant to drive recycle the adsorbent—a world air distribution. This reduces Dry spray booth installed for bumper coating first.2 the amount of energy needed Air diffuser installed on the lower end of a pillar inside the factory for ventilation while also ● Reducing energy waste from compressed air conditioning the lower spaces The Yorii Automobile Plant has taken various steps to reduce the occupied by workers more efficiently, realizing a 40% reduction

amount of energy used to produce compressed air for vehicle in energy use, or 2,360 t-CO2 annually. assembly processes. These steps include making sure air supply is stopped during non- ● Factory energy management system production times, using The Yorii Automobile Plant's factory energy management system leak-resistant hose joints (FEMS) measures energy consumption in each area of production in to reduce pressure loss, real time. This allows energy to be optimally controlled and delivered and monitoring air reliably to all machinery by automation technology, and enables consumption for each production workers to more quickly discover and resolve issues

Leak-resistant hose joint (left) and assembly process. and sources of waste, making it possible to manage CO2 emissions work using compressed air (right) reductions from energy use throughout the plant. ● Corporate park dramatically improves transport efficiency Saitama Factory's new Yorii Automobile Plant, the first Honda automobile assembly plant to be built in Japan in 23 years, started production on The Yorii Automobile Plant was built with a corporate park for July 9, 2013. Specially engineered for building compact models such as the Fit and Vezel in partnership withthe nearby Engine Plant (Ogawa- suppliers to produce and process parts for Honda automobiles machi, Hiki-gun), the Yorii Automobile Plant is one of the world's most energy-efficient plants. As a global pioneer in sustainable manufacturing, on site, a smart alternative to having suppliers produce and its innovative production technologies make it one of only a few plants that serve as a launch pad for transmitting environmental technologies process parts remotely and transport them to the Honda plant to Honda factories around the world. for assembly. The elimination of secondary processing sites FEMS is used for centralized energy management of the entire plant (right: FEMS control screen) and relay points for distribution ● Welding: 70% lower CO2 emissions has resulted in a dramatic ● Next-generation technologies from Yorii to the world Hemming, or the welding improvement in transport As the above examples illustrate, the Yorii Automobile Plant was together of inner and outer efficiency and is expected to equipped with some of the most advanced and environmentally A corridor passing through the Yorii panels to make closure parts Corporate Park. Behind the partitions on yield a 500-ton reduction in responsible production technologies in the world. Introducing both sides are work areas designated for such as doors, is carried out using annual CO2 emissions. these innovations has allowed Honda to achieve a 30% Yorii Automobile Plant suppliers a new roller hemming method. reduction1 in energy use per automobile produced compared to Using this method in place of ● Super-high-efficiency cogeneration system a conventional Honda automobile plant. Roller hemming method large conventional hemming To cut down on fossil fuel-generated utility power and reduce CO2 To realize our vision of producing low-impact products at low-impact 1 presses has saved space, lowered costs, and cut CO2 use by 70%. emissions, the Yorii Automobile Plant was fitted with an 8.7 MW factories, we will transfer an increasing number of the next-generation

To reduce environmental impacts from production, we focus on natural gas-powered cogeneration system. This has resulted in a production and environmental technologies developed at the Yorii ● Coating: Industry-first technology saves resources, cuts emissions conserving energy and resources and achieving zero waste and 45% reduction in peak power. By using the steam, hot water, and Automobile Plant to our production operations worldwide. The introduction of a new emissions through our "green factory" initiative. The new Yorii waste-heat byproducts, the plant also aims to achieve a combined proprietary coating technology electrical and thermal energy efficiency of 85%. Yorii Automobile Plant technologies are shared with Automobile Plant, one such green factory, has been equipped with a other Honda factories around the world called Honda Smart Ecological vast array of cutting-edge technologies to achieve these goals. Paint (Honda S.E. Paint) and ● Largest solar array for an automobile plant in Japan ● China a wall-mounted painting ● Stamping: 40% higher production efficiency Photovoltaic panels installed on the Yorii Automobile Plant's roof robot system has shortened have a total generation capacity of 2.6 MW—the largest of any ● India ● Mexico Four high-speed servo stamping Honda S.E. Paint eliminated the need for the coating process from the 2 presses and a synchronized transport a middle coat automobile plant in Japan. This is enough electricity to power ● Thailand conventional 4-coat/3-bake system for conveying workpieces about 460 typical Japanese 2 ● Indonesia ● Brasil method to a 3-coat/2-bake method. These innovations helped 3 between the presses make up homes, and translates into an 1 shorten the coating line by 40% and cut CO2 emissions by 40%. the Yorii Automobile Plant's high- annual reduction of 1,200 t-CO2 speed, high-throughput when compared to using the ● Coating: New air-recycling technology introduced High-speed servo stamping press sequential stamping line. This same amount of power from the Instead of a conventional water washing system, the dry spray Roughly 34% of the Yorii Automobile Plant site is devoted to life-harboring land line works at up to 20 continuous grid. and wetland, including around 16,000 m2 of biotope. See Honda Environmental booth used to paint car bumpers employs a dry filter system and 2.6 MW solar array Report 2013 to learn more about the Yorii Automobile Plant's community and 1 strokes per minute, twice the speed of conventional presses, environmental conservation initiatives. a calcium carbonate adsorbent called a pre-coat layer to collect realizing a 40% improvement in production efficiency.

1. Relative to Saitama Factory's Sayama Automobile Plant in Japan. 1. Relative to Saitama Factory's Sayama Automobile Plant in Japan. 2. For example, a 4-coat/3-bake process uses four coats of paint and three drying steps. Therefore, a 3-coat/2-bake process saves one paint coat and one drying step. 2. Honda internal data 3. Honda estimate (ordinary household electricity use: 5,650 kWh annually, CO2 emission factor: 0.464 t-CO2/MWh, Tokyo Electric Power Co., Ltd. FY2011) G15 In this report, specific measures, activities, products, and technologies that contribute to realization of the Triple Zero concept are indicated with one or more of three Triple Zero symbols. G16 See page G22 for details. Global

The Road to a Healthier Environment

In striving to be a company society wants to exist in the 21st century, we view environmental stewardship as a key social responsibility alongside safety and quality. By setting clear objectives and advancing concrete environmental initiatives in line with the Honda Environment Statement and Honda Environmental and Safety Vision, we will work to exceed the expectations of our customers and society.

DirectionTo realize “the joy and freedom of mobility and a sustainable society

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

Directions for the 21st century 1. Honda Environment Statement

2. Honda Environmental and Safety Vision Striving to be a company that society wants to exist Realizing the joy and freedom of

Creating mobility and a sustainable society the joys Ensuring the Expanding joys for the where people can enjoy life H onda global G18 The Road to a Healthier Environment the joys Next Generation environmental symbol Initiatives, Open-minded, Challenge, Co-evolution G19 Honda Environment Statement / Honda Environmental and Safety Vision 3. Assessment of environmental issues

Shareholders株主 Society 地Local域 and Greatest challenges 投資家 communities社会 Major challenge Concern investors Climate change issue G20 Pursuing the Honda Environmental and Safety Vision Safety Operations Environment Resource issue Biodiversity Energy issue

G20 Assessment of environmental issues and current recognition of their importance 販Dealers売会社 Quality おSuppliers取引先

Assessment of risks and opportunities relating to environmental issues CSR Objectives Customersお客様 Associates従業員 G22 Triple Zero: Toward a zero-impact society Fundamental 4. Honda's vision for future operations Beliefs G23 Reducing environmental impact from products Stakeholders Company Management G24 HEPS-compliant models in FY2014 Principle policies G25 Reducing environmental impacts from business activities Z ero CO 2 emissions CO 2 using renewable energy Honda Philosophy Emissions G26 Biodiversity Initiatives Honda's approach to CSR G26 Honda Biodiversity Guidelines Energy P ropelled by the Honda Philosophy, we set Waste Risk our course on being a company that G27 Progress in Meeting Environmental Targets society wants to exist by sharing joys with Z ero energy risk Zero waste G27 2020 Product CO2 Emissions Reduction Targets people throughout the world. G28 Mid-term plans for environmental initiatives (FY2012 FY2014) G30 Mid-term plans for environmental initiatives (FY2015 FY2017) 5. Product-based initiatives 6. Operations-based initiatives

G18 Global

Honda Environment Statement Pursuing the Honda Environmental and Safety Vision

Honda has endeavored to solve environmental problems since the 1960s. We introduced the Compound Vortex Controlled In working toward the Honda Environmental and Safety Vision, we objectively assess current environmental problems, Combustion (CVCC) engine, becoming the world's first automaker to comply with the 1970 U.S. Clean Air Act—a challenge analyze the kinds of risks and opportunities they represent for our business, and respond in various ways. We are promoting thought by many at the time to be insurmountable. In 1992, we released the Honda Environment Statement to articulate the environmental initiatives in both business activities and product development, with the aim of eventually becoming a basic stance we had developed until that time to reduce environmental impacts at every stage in the life cycles of our products. company with zero environmental impact. Today, this Honda Environment Statement is the foundation upon which we carry out all of our environmental efforts. Assessment of environmental issues and current recognition of their importance

●Assessment from a global perspective ●Assessment process To ensure the long-term continuity of our global business, we Collection Honda Environment Statement at Honda consider it essential to contribute to the growth of To reach our current recognition of today's environmental issues, As a responsible member of society whose task lies in the preservation of the global environment, society and harmony between people and nature through the we first gathered information on environmental issues through the company will make every effort to contribute to human health and the preservation of the global realization of the Honda Environmental and Safety Vision. To interviews with stakeholders and by electronic means from environment in each phase of its corporate activity. Only in this way will we be able to count on a realize this vision, we must correctly assess the environmental within the company. successful future not only for our company, but for the entire world. issues that exist in the world today, as well as their impact on Analysis We should pursue our daily business interests under the following principles: our business, and then adequately respond to them. Next, through discussions among divisions in the company (the Accordingly, we have evaluated various environmental issues executive officers, environmental divisions, regional operations, 1. We will make efforts to recycle materials and conserve resources and energy at every stage of our products' life cycle from research, design, production and sales, to services and disposal. from two perspectives—stakeholder concern and impact on business operations, and functional operations) and dialogue with Honda's business activities—and identified issues that pose the stakeholders, we analyzed the relationship between the issues and 2. We will make every effort to minimize and find appropriate methods to dispose of waste and contaminants that are produced through the use of our products, and in every stage of the life cycle of these products. greatest risk to our stakeholders and business. the Honda Environmental and Safety Vision, and the consistency As a company supplying mobility products, we see climate between the issues and Honda's corporate philosophy. We then 3. As both a member of the company and of society, each associate will focus on the importance of making change issue and energy issue as the greatest environmental selected environmental issues of relatively high importance. efforts to preserve human health and the global environment, and will do his or her part to ensure that the company as a whole acts responsibly. challenges we face, followed by resource issue. We also Evaluation recognize biodiversity as an issue warranting serious concern. We comprehensively evaluated the selected environmental 4. We will consider the influence that our corporate activities have on the local environment and society, and issues based on causal proximity, economic impact, urgency, endeavor to improve the social standing of the company. Established and announced in June 1992 influence on Honda's competitive strength, priority in relation to realizing the Honda Environmental and Safety Vision, degree of social concern, and other factors. Honda's assessment of environmental issues from a global Priority setting perspective Finally, we determined the priority of the environmental issues along the two axes of stakeholder (social) concern and impact Honda Environmental and Safety Vision Climate change issue Biodiversity Energy issue on Honda's business activities. We classified environmental

We announced that our direction in the years leading up to 2020 would be to provide "good products to customers with speed, afford Air, water, and soil issues into three categories (issues closely related to stakeholder pollution ability, and low CO2 emissions." We dreamed of a society where everyone can safely and confidently go anywhere and the Honda Waste expectations, issues closely related to Honda's business issues, Substances of concern Resource issue Environmental and Safety Vision was set. The vision expresses our passionate desire to contribute to the sustainable growth of society and those closely related to both) to define Honda's current and harmony between people so that we can continue to deliver excitement through products and services that support personal recognition of environmental issues. Noise/ Vibration mobility and a better life in general. Stakeholder concern ●Assessment from a regional perspective We arrived at our current recognition of environmental issues, Honda Environmental and Safety Vision detailed above, by evaluating their importance in each of the Impact on Honda's business activities six regions where we operate (North America, South America, Realizing the joy and freedom of mobility Europe, Asia & Oceania, China, and Japan) and viewing them and a sustainable society where people can enjoy life holistically from a global perspective. Regional assessments of these issues are described in the annual environmental reports issued by each region. In working to achieve this vision, the following objectives shape our environmental initiatives around the world: ● At each stage of a product's life cycle (products, corporate activities), Honda aims to ・Minimize the use of fossil fuel and resources newly recovered from the Earth Assessment of risks and opportunities relating to environmental issues ・Minimize environmental impacts, including greenhouse gas emissions ● Honda aims to reduce to zero greenhouse gas emissions from Honda products used for mobility and in people's everyday lives ● Climate change issue and energy issue related risks and challenges. To engage in business activities while sufficiently opportunities assessing the risks and opportunities these issues present, we have While environmental issues pose risks that could seriously set degrees of priority for our response. As a result, we identified We established "Blue Skies for Our Children" as a global environmental slogan expressing our commitment to do more to realize our environmental and safety vision. The graphic on the left symbolizes the global environmental slogan. impact our business activities, they also present opportunities to changing consumer values, diversification of energy, and tighter create and expand new business—as long as we anticipate and regulation of product-related greenhouse gas (GHG) emissions as appropriately respond to them. three areas where our response is particularly important. We see climate change issue and energy issue as our greatest

G19 G20 Global

Pursuing the Honda Environmental and Safety Vision

● Resource scarcity-related risks and opportunities ■ Climate change issue and energy issue related risks and opportunities Triple Zero: Toward a zero-impact society Honda sees resource issue as the greatest environmental risk diversify home energy sources and reduce CO2 emissions from after climate change issue and energy issue. Changing consumer values personal mobility and home living to half of 2000 levels. We are Incentives to switch to products (emphasis on environmental The depletion and resulting difficulty of obtaining rare metals that use next generation energy performance) developing the Honda Smart Home System (HSHS) to help us (e.g., electric/hybrid vehicles, solar Energy diversification and other resources used in our products poses a huge risk to power) (e.g., deployment of smart realize this goal (see page G32). community1 technologies) Tighter regulation of product- our business continuity. related GHG emissions Other product-related initiatives include expanding our line-up In response, we are promoting stable procurement and effective Zero CO2 of Innovative Products and Revolutionary Products,1 products Tighter regulation of utilization of resources by reducing our use of rare metals, emissions using operations-related GHG CO2 original renewable designed with the dual aims of achieving zero CO2 emissions emissions Direct operational risks from rising developing alternative technologies, and developing material energy Emissions Perceived opportunities sea levels and extreme weather Increasing reporting and reducing energy risk. events requirements for GHG emissions recycling technologies to extract rare earth metals from used products and reuse them as raw material. Through this effort, We are also introducing renewable energy to diversify the we are aiming for stable business operations and to create Energy energy resources used by our operations, including the Waste 2 Perceived risks opportunities for business expansion. Risk scheduled start of operations in 2014 of a wind farm expected We are also aware of the various risks associated with collection, to generate 85,000 MWh of electricity per year and cover all of ● Changing consumer values disposal, and recycling processes, and are building systems Zero energy risk Zero waste the power needs of the automobile plant of Honda Automóveis As climate change issue and energy issue escalate globally, suited to each country. do Brasil Ltda. in South America. consumers are becoming increasingly conscious of fuel ■ Approach to resource issue In Japan, we plan to take steps to reduce the environmental efficiency, 2CO emissions, and other environmental performance ●Giving shape to the Honda Environmental and Safety Vision impact of our business activities by entering the electricity retail indices as factors influencing their purchasing decisions. Procurement To realize the Honda Environmental and Safety Vision and business to diversify our energy procurement sources. This will We perceive such changes in consumer values and market ultimately play a key role in the creation of a zero-impact society, reduce our energy risk and enable us to select power sources

needs as a risk and have created the Honda Environmental Minimize and properly dispose of Stable Reduce resource we will leverage our proprietary technologies and business with smaller carbon footprints. Performance Standards (HEPS) to respond and take advantage resource waste/pollutants in each product use procurement life-cycle stage activities to combat climate change issue, energy issue and of opportunities for business expansion (see page G23). We resource issue. We formulated the Triple Zero concept as an ●Zero waste are driving the development of fuel efficiency technologies, Collection/disposal expression of these goals in more substantial terms. We are addressing resource issue by striving to close the loop electromotive technologies, and other environmental on all materials and recycle them completely, eliminating technologies and expanding their application in our products, ●Zero CO2 emissions using renewable energy waste altogether. Initiatives directed toward this goal include ● Biodiversity with the ultimate goal of realizing zero product CO2 emissions. We recognize the impacts our products and business activities We are addressing climate change issue by shifting to renewable developing alternatives to precious resources; developing and can have on biodiversity, and believe that minimizing these energy with the aim of achieving zero CO2 emissions from our refining technologies to enable increased reduction, reuse, and ● Energy diversification impacts is the greatest contribution to biodiversity we can make. products and business activities. We are steadily lowering CO2 recycling (3Rs); and reducing water use. Global warming, resource depletion, and other issues will likely This awareness challenges us to develop more environmentally emissions by improving existing technologies while expanding Moreover, by realizing continuous reductions in the use of compel society to shift from its heavy dependence on fossil responsible technologies and make continuous improvements our use of renewable energy and developing new zero-emission substances of concern, we will aim to eliminate all environmental fuels toward a more diverse energy mix. to the environmental performance of our operations (see page technologies for the future. pollutants from our products and business activities. To seize new business opportunities and avert risks posed by a G26). As an interim objective, we are currently working to achieve Specific initiatives currently underway are aimed at developing delayed response to energy diversification, we are advancing our 2020 Product CO2 Emissions Reduction Targets (see page recycling technologies and systems to promote recycling. We development of products that utilize alternative energy sources, ●Environmental management system G27) to lower average emissions per unit of motorcycles, are building a system, for example, to extract and reuse rare such as EVs, FCEVs,2 and the Honda Smart Home System (HSHS). We have constructed a comprehensive global management automobiles, and power products worldwide by 30% from the earth metals from nickel-metal hydride batteries used in hybrid We are also promoting energy diversification by actively system that allows us to continually collect information and 2000 base-year level. We will then aim to halve total company vehicles. introducing large-scale solar and wind power generation at our update our understanding of these environmental issues and emissions by 2050. facilities, as we work toward ultimately reducing our energy risk the risks and opportunities they present; to organize and analyze Initiatives currently under way in each product area include to zero. in a timely manner the impacts of these issues, particularly expanding our lineup of HEPS-compliant Hi Efficient Products,1 climate change and energy; and to develop and execute specific developing and promoting market penetration of electric measures for addressing them (see page G45). ● Tighter regulation of product-related GHG emissions vehicles (EVs) and fuel cell electric vehicles (FCEVs), and Our risk management process, which we conduct every As regulations of product-related GHG emissions grow more six months and as needed, is as follows: The Honda World building the infrastructure for EVs to be powered by solar, wind, stringent worldwide, Honda as a global corporation must Environment and Safety Committee identifies risks and and other renewable energy sources. provide products that meet local regulatory rules while also opportunities from a global perspective and analyzes them from We are also reducing the carbon intensity of our manufacturing effectively meeting market needs. three different perspectives: by product categories (motorcycles, operations. The recently completed state-of-the-art Yorii We are seizing new business opportunities and responding automobiles, and power products), with a focus on our business Automobile Plant at the Saitama Factory uses 30% less energy Triple Zero symbols to the risk posed by these tightening regulations by actively and product development operations; by region, which is based per unit than conventional plants. In this year's report, technologies, products, and initiatives that expanding our lineup of products powered by Earth Dreams on our unique regional management structure; and by function, contribute to the realization of Triple Zero are marked with one of Technology,3 among other initiatives. such as production and sales. Our regional environmental three Triple Zero symbols. ●Zero energy risk Waste committees, business operations, and functional operations CO2 emission reduction/ We are addressing energy issue by diversifying energy sources reduction/ elimination then use the findings of this analysis to formulate various elimination or 3R technology used in our products and business activities with the aim of technology management policies and strategies, such as our mid-term plans Energy risk completely eliminating energy risk from fossil fuels. reduction/ for environmental initiatives. elimination We have set an interim target to establish technologies that technology

1. Smart communities: Communities that, through broad partnerships between governments and private entities in the fields of next-generation energy infrastructure, 1. Products that are compliant with the Honda Environmental Performance Standards (HEPS). Hi Efficient Products are HEPS-compliant products that emit less 2CO through improved telecommunications, traffic systems, and various products and services, are engineered to be more efficient, self-sustaining, and dynamic. internal combustion engine efficiency. Innovative Products emit less CO2 because they use an environmentally innovative technology or alternative energy source. Revolutionary 2. EV: electric vehicle, FCEV: fuel cell electric vehicle Products reduce or eliminate CO2 emissions by harnessing renewable energy sources or facilitating total energy management (see page G23). 3. A next-generation powertrain series that greatly enhances both driving performance and fuel economy, building on advancements in environmental performance for internal 2. Nine 3-MW wind turbines (27 MW in total) G21 combustion engines, transmission efficiency, and electromotive technologies to pursue a joy of driving unique to Honda. G22 Global

Pursuing the Honda Environmental and Safety Vision

Reducing environmental impact from products HEPS-compliant models in FY2014

● Reducing CO2 emissions in three stages Hi Efficient Products ●34 HEPS-compliant models released in FY2014 products to 86 motorcycle models, 98 automobile models, and

To achieve zero CO2 emissions, one of the three objectives Products that emit less CO2 emissions because of improved We reviewed products to understand how many met the 44 power product models, or 228 models in total. By region, of Triple Zero, our aim is to eliminate the life-cycle emissions internal combustion engine efficiency. This category includes HEPS requirements. In fiscal 2014, 17 motorcycles models, 76 models in Japan, 57 models in North America, 65 models (emissions from all stages in the life of a product, from its products that incorporate technologies for improving fuel 15 automobile models, and 2 power products—a total of 34 in Europe, 32 models in South America, 73 models in Asia & manufacture using raw materials, to customer use, to disposal) combustion and transmission efficiency and reducing friction models—were HEPS-certified. Oceania, and 27 models in China are now HEPS-certified. of all Honda products, including through strategies such as between engine parts. Cumulatively, this brings the number of HEPS-compliant renewable energy carbon offsets. Compliance is determined based on how well a product reduces

However, given that many mobility products today still run on or helps reduce CO2 emissions during use compared to preceding

fossil fuel burned in an internal combustion engine, zero CO2 models. Examples of HEPS-compliant models in FY2014 emissions is not something we can achieve immediately. That is why we have developed three scenarios to guide Hi Efficient Products Innovative Products Revolutionary Products us through steady reductions, ending with the complete Innovative Products Products designed to reduce elimination of CO2 emissions. These scenarios, which are to Products that emit less CO2 because they use an environmentally Products with a more efficient Innovative environmental or eliminate CO2 emissions by be pursued in parallel, are: 1) Reducing emissions through innovative technology or an alternative energy source. This Definition internal combustion engine that technologies or unconventional harnessing renewable energies 2 emits less CO2 energy sources that emit less CO or facilitating total energy efficiency improvements of internal combustion engines, 2) category includes motorcycles that incorporate Honda's patented management Reducing emissions by environmentally innovative technologies Idling Stop System, automobiles that incorporate hybrid Performance CO2 emissions from product use and introducing energy-diversification, and 3) Eliminating technologies or direct-injection engine technologies, and power parameter emissions through the use of renewable energy and total energy products with electronic fuel injection (FI). Alternative-energy management (see figure below). technologies include motorcycles and automobiles that can run on ethanol, and power products that can run on gaseous fuels. Motorcycles

● Honda Environmental Performance Standards Compliance is determined based on how well a product reduces Super Cub C50 Dunk NC750S Sh mode EV－neo To move our products along these scenarios, in 2011 we or helps reduce CO2 emissions during use compared to preceding established the Honda Environmental Performance Standards models. (HEPS), an independent product classification and certification

system designed to shed light on how Honda products are Revolutionary Products CBR125R Zoomer-X CBR400R Air Blade Kushi

contributing to achievement of the three scenarios outlined Products that reduce or eliminate CO2 emissions by harnessing above. Under HEPS, products are grouped into three categories, renewable energies or facilitating total energy management.

each with its own requirements for certification. This category includes products that incorporate electromotive Automobiles By making all new Honda products compliant with one of the technologies or technologies for generating or using renewable Compliant VEZEL BRIO AMAZE (diesel) three standards, we will make steady progress toward realizing energy. Fit Hybrid Accord Hybrid Fit EV products zero CO2 emissions. （examples)

City Civic Tourer RLX Sport Hybrid SH-AWD CR-V Flex FCX Clarity Power Products Product-based scenarios addressing climate change issue and energy issue

EU9iGP LPG EU7000is Graspa HRE330 generator generator with FI electric lawnmower Evolution of environmental technologies Life-cycle CO2 emissions

GX390 engine GX690 engine Efﬁciency improvement technologies for internal Salad CG FFV300 gas-powered HSL2511 snow Miimo300 combustion engines Monpal ML200 scooter Hi Effi cient Products tiller blower with FI robotic lawnmower

Environmental-innovation and energy-diversiﬁcation Global number of HEPS-compliant models Number of HEPS-compliant models by region (FY2014) technologies Innovative Products ■ Hi Efficient Products ■ Innovative Products ■ Revolutionary Products ■Motorcycle ■Automobiles ■Power Products Models Motorcycles Automobiles Power Products 100 Models Models Models 100 100 98 100 80 76 86 73 Renewable energy 83 65 technologies 80 80 80 69 67 60 57 Revolutionary Products 60 60 54 60 49 41 42 44 40 32 40 40 40 36 38 27 Energy management Evolution of energy technologies Fossil fuel use Diversiﬁed energy use Renewable energy use 20 technologies 20 20 20

0 0 0 0 2011 2012 2013 2014 (FY) 2011 2012 2013 2014 (FY) 2011 2012 2013 2014 (FY) Japan North Europe South Asia/ China America America Oceania

*FY2011 data were calculated based on standards set in FY2012.

G23 G24 Global

Pursuing the Honda Environmental and Safety Vision

Reducing environmental impacts from business activities Biodiversity Initiatives

●Reducing impacts across product life cycles material procurement, product transportation,disposal of end-of- Climate change issue and energy issue are not our only concerns. We also pay close attention to biodiversity as an issue In order to realize our Triple Zero concept―to reduce to zero all life products, and so forth. Based on this concept, we are striving to relating to environmental conservation, because our business activities can have an impact on vital natural resources. environmental impacts stemming from our products―we need to reduce environmental impacts in every domain of our operations. Tree-planting and water-recycling initiatives at our plants in the 1960s, and our Community Forest program launched in 1976, minimize environmental impacts throughout the life cycles of our In Japan, for instance, we categorize business activities into eight demonstrate the deep roots of our commitment to environmental conservation and living in harmony with local communities. products. This means not only reducing impacts that occur during domains and consider all factors in each domain that impact the In 2011, we created the Honda Biodiversity Guidelines as part of the contributions we strive to make to global environmental use, through improved fuel efficiency and the use of electromotive environment. Each domain sets its own policies and targets to conservation, a goal set forth in our Honda Environment Statement. technologies, but also lowering impacts that arise from raw reduce impacts, and implements measures to achieve them.

■ Eight domains of business activities in Japan ■ Reduce environmental impacts from business activities in Japan Honda Biodiversity Guidelines Business activities Factors believed to Major initiatives impact the environment

Product Greenhouse gases ● Promote "green laboratories" Basic Statement development Exhaust emissions •Energy and resource conservation 1 We recognize, under the Honda Environment Statement, that biodiversity conservation initiatives are an Raw materials Noise/Vibration •Zero waste and emissions initiatives Substances of concern essential part of our commitment to the preservation of the global environment. We will continue to work toward harmony between this commitment and our activities. Purchasing Greenhouse gases ● Promote "green purchasing" Raw materials •Environmental management Priority Activities Waste Water use/Wastewater •Energy and resource conservation Exhaust emissions at suppliers Noise/Vibration •Zero waste and emissions1 activities 1. Development of Environmental Technology Substances of concern at suppliers We will contribute to the conservation of biodiversity by developing and sharing technologies for fuel- efficient vehicles, next-generation cars, and energy-production and other technologies for the reduction of Production Greenhouse gases ● Promote "green factories" environmental impacts. Raw materials •Environmental management Waste Water use/Wastewater •Energy and resource conservation 2. Initiatives Based on Corporate Activities Exhaust emissions •Zero waste and emissions1 initiative We will work to reduce environmental impacts and ensure the effective use of resources through efficiency Noise/Vibration improvements. Substances of concern 3. Cooperation with Communities Transportation Greenhouse gases ● Promote "green logistics" We will implement community-based activities in cooperation with stakeholders, using expertise Waste •Environmental management accumulated by Honda through its initiatives to protect ecosystems, such as the Community Forests and •Increase transportation efficiency Hello Woods initiatives. •Use less packaging 4. Disclosure and Sharing of Information Sales and Service Greenhouse gases ● Promote "green dealers" We will share information with society by disclosing the outcomes of our activities. Removed parts •Environmental management Established in May 2011 CFCs •Increase energy efficiency Waste •Take action to promote environmental conservation ● Our greatest contribution: reducing environmental impacts and next-generation vehicles, and technologies that harness Product recycling Greenhouse gases ● Increase parts collection, reuse, (3Rs) End-of-life products and recycling from products and operations alternative energy. ● Properly process end-of-life products Resource exploitation, runaway development, pollution, Climate ● Provide technical support for recycling change—these and many other impacts of human activities 2. Make business activities species-friendly threaten biodiversity. As a manufacturer of personal mobility We aim to make our business activities more sustainable in Administration Greenhouse gases ● Promote "green offices" Waste •Environmental management products, we see our business activities as being most closely themselves, by releasing less environmental pollutants, including •Energy conservation associated with the growing environmental impacts resulting GHGs, waste, and substances of concern. •Use resources effectively from emissions of greenhouse gases (GHGs) and various other IT Greenhouse gases ● Promote "green ICT" •Environmental management pollutants. 3. Work to protect nearby ecosystems •Energy conservation We believe that minimizing the environmental impacts that We have already gained a wealth of knowledge about how to result from our business activities and products represents the maintain and restore ecosystems through our Community Forest ■ Global initiatives greatest contribution we can make to protecting Earth's myriad and Hello Woods initiatives. We strive to reduce the environmental impacts of our business activities worldwide. As in Japan, we categorize overseas business activities into several domains and set each region's policies and targets for reducing product life-cycle impacts based on market characteristics and other life forms. We created the Honda Biodiversity Guidelines to set We will use this knowledge and experience to implement 1 local conditions. Each region's initiatives are reported in its own regional annual environmental report. The domains of each region's business priorities in this effort, focusing our energies on developing programs, such as HondaWoods activities launched in 2014, activities in fiscal 2014 are shown below. environmental technologies and reducing impacts in our that help protect local species and make our business activities business activities, alongside initiatives to operate in harmony friendlier to them, for our benefit and the benefit of local with local communities. communities.

1. Develop technologies to reduce impacts on the environment 4. Communicate openly with the public We will develop technologies to reduce the environmental We will endeavor to openly communicate with the public about impacts of personal mobility, since this represents the greatest the details and outcomes of activities we implement from the North America South America Europe Asia & Oceania China contribution we can make. Technologies include fuel-efficient new perspectives offered by these biodiversity guidelines.

1. The aim of zero emissions initiatives is to reduce waste and substances of concern as near as possible to zero. 1. See page J62 of Japan Report to learn more about HondaWoods.

G25 G26 Global

Progress in Meeting Environmental Targets Mid-term plans for environmental initiatives（FY2012-FY2014）

● Three-year plans updated for FY2015 ● Close of the current mid-term Honda renews its business and sales-related plans every three Fiscal 2014 was the final year of the mid-term that began in fiscal years, a period designated as a mid-term. We follow this process 2012, bringing the three-year plan we created for environmental for environmental initiatives as well, setting new plans and initiatives during that period to a close. Overall, we accomplished

2020 Product CO2 Emissions Reduction Targets actions to reduce impacts from our products and business everything in the plan. activities at the start of every mid-term. We will continue in the next mid-term to make steady progress

Reducing CO2 emissions from our products is a necessary step in motorcycles, automobiles, and power products 30% from 2000 in reducing the environmental impacts of our products and combating climate change issue and energy issue, the greatest levels by 2020. We hope to achieve these targets by developing business activities. challenges to our business. That is why we created the 2020 more efficient technologies and marketing more energy-efficient Product-related environmental initiatives and results (FY2012–FY2014) Product CO2 Emissions Reduction Targets, through which we products.

seek to reduce the average amount of CO2 emitted per unit of Milestones on the road to 2020 Mid-term plans for product-related environmental initiatives (FY2012 – FY2014)

Achieve best-in-industry fuel efficiency and accelerate technology penetration: 1 Motorcycles: Expand use of electronic fuel-injection (PGM-FI) and low-friction engines, especially in commuter vehicles Automobiles: Phase in upgrades to engine and transmission lineups, starting in 2012 2020 Product CO2 Emissions Achieve global targets for Power Products: Expand application of new electronic self-tuning regulator (STR) governor technology, developed for the iGX engine Reduction Targets Motorcycles Automobiles Power Products reducing average product CO2 emissions, with the end goal of Establish and deploy next-generation electromotive technologies: steadily reducing product life- Motorcycles: Launch electric motorcycles that meet local needs in developed countries (Japan: loaned) and emerging countries (China) Climate change cycle emissions over the long Automobiles: Launch multiple models (especially compact vehicles) equipped with IMA hybrid technology in Japan; currently developing term 2 and energy mid-size and larger plug-in hybrid and battery electric vehicles, with plans to launch products in Japan and the U.S. and commence production in China in 2012 Power Products: Improve electric lawnmowers and expand lineup through additional model, especially in Europe Global average CO2 Baseline: 2000 Baseline: 2000 Baseline: 2000 emissions from 30% reduction 30% reduction 30% reduction Launch new thin-film solar cell modules with world's highest module conversion efficiency and deploy technology globally Market new products to reduce Honda products ・ Conduct demonstration testing of next-generation personal mobility systems in cities in Japan, the U.S. and China (g/km) (g/km) (kg/h) CO2 emissions from mobility and 3 ・ Through joint-implementation of the E-KIZUNA Project with Saitama City, Japan, conduct demonstration testing of the Honda other products Smart Home System (HSHS) with an aim to cut household CO2 emissions by 50% from 2000 levels by 2015

Material and water Products: Continue to promote structural design with an emphasis on weight reduction; higher throughput yields; easier recycling and Ramp up 3R efforts resources 4 maintenance; and sustainable design with an emphasis on easily recycled materials and use of recycled resins ● Regions covered: Japan, North America, Europe, Asia & Oceania, China, and South America, covering more than 90% of global sales by volume of each product category. Reduce exhaust emissions 5 Steadily reduce exhaust emissions to comply with tighter emissions regulations in various countries Substances of More strictly manage substances of ・Promote management of substances used in products and find alternatives to substances of very high concern concern 6 concern used in products ・Operate global management systems for substances used in products to comply with applicable regulations in various countries

● Progress update Japan, and the Accord, which underwent redesign the previous

In fiscal 2014, we continued our momentum from fiscal 2013 and year, in the U.S. market. Results of FY2014 initiatives cut per-unit CO2 emissions from motorcycles even further as a And lastly, we achieved a modest reduction in per-unit CO2 Motorcycles result of increased sales of fuel-efficient commuter models in the emissions from power products compared to fiscal 2013 levels ・Launched the Grom motorcycle powered by an air-cooled four-stroke OHC 125-cc single-cylinder engine featuring electronic fuel-injection and low-friction technologies (offset cylinder, roller rocker arm) delivering exceptional fuel performance (May 2013) Asian market, including the Vario (Indonesia), Air Blade (Vietnam), despite a decline in sales of household cogeneration systems, ・Launched the Sh mode, a stylish fuel-efficient scooter that employs a water-cooled four-stroke OHC 125-cc single-cylinder engine with electronic fuel-injection and Activa (India). which have low per-unit emissions, and robotic lawnmowers, and an Idle Stop System (August 2013) Automobiles 1 Likewise, we achieved a further reduction in per-unit CO2 which emit zero exhaust gas. Increased sales of 1-kW generators ・Launched an all-new Fit powered by a new Earth Dreams Technology powertrain that provides class-leading fuel efficiency (September 2013) ・In Indonesia, launched the Brio Satya equipped with a 1.2-liter four-cylinder i-VTEC engine that delivers class-leading power output and outstanding fuel efficiency (September 2013) emissions from automobiles. This was due in part to increased with relatively low per-unit emissions, and the release of new ・Developed the new VTEC Turbo line of turbocharged direct-injection engines, providing class-leading power performance and exceptional fuel economy in the same machine (November 2013) Power Products sales of models that saw fuel efficiency improvements as part highly efficient water pumps contributed to this reduction. ・Unveiled in the U.S. the EU7000is, Honda's first inverter generator to incorporate fuel injection (FI) technology, which runs longer thanks to a 20% improvement in fuel efficiency (January 2014) of a complete redesign, such as the Fit Hybrid and Odyssey in Climate change and Motorcycles energy ・Continued leasing the EV-neo electric scooter Progress（％） in meeting the 2020 Product CO2 Emissions Reduction（％） Targets （％）・Continued sales of the Kushi, an electric bicycle for the Chinese market 140 140 140 Automobiles ・Launched the Accord Hybrid with a Sport Hybrid i-MMD hybrid system (June 2013) 2 120 Motorcycles (g/km) 120 Automobiles (g/km) 120 Power products (kg/h) ・Also began leasing in Japan a limited number of units of the Accord Plug-in Hybrid to individual customers in December 2013, following the start of leasing in the U.S. ・Launched an all-new Fit Hybrid equipped with a Sport Hybrid i-DCD hybrid system (1.5-liter Atkinson cycle engine, high-output built-in motor, seven-speed DCT, and lithium-ion battery) offering the highest fuel efficiency in Japan (September 2013) 100 100 100 100 100 100 Power Products 29.1％ 17.6％ 15.1％・Continued sales of Miimo, a robotic lawn mower equipped with a lithium-ion battery, in the European market (April 2013) 80 80 87.6 90.5 80 89.0 86.5 84.9 84.8 82.4 85.3 84.9 ・Delivered FCX Clarity fuel cell electric vehicle with external power supply capability to Kitakyushu City, Japan and initiated demonstration testing in V2H application (April 2013) 75.9 72.6 60 70.9 60 60 ・Began test-driving the MC-β micro EV using renewable energy-powered chargers (January 2014) 3 2020 2020 2020 ・Opened the Honda Smart Home US in the U.S., offering Honda's vision for zero-carbon living and mobility (March 2014) target target target 40 40 40 (30% reduction) (30% reduction) (30% reduction) ・Established a parts-to-parts recycling scheme to reuse components other than rare earths from disassembled nickel metal hydride batteries as components for new products (April 20 20 20 Material and 4 2013)

～～～～～～water resources ・Reused rare earths extracted from used nickel–metal hydride batteries from hybrid vehicles in the manufacture of new hybrid vehicle motors (June 2013) 0 0 0 2000 FY2011 FY2012 FY2013 FY2014 2000 FY2011 FY2012 FY2013 FY2014 2000 FY2011 FY2012 FY2013 FY2014 ・Made steady progress in reducing exhaust emissions to comply with tighter emissions regulations in various countries （baseline）（baseline）（baseline） 5 Substances of concern ・Continued to promote management of substances used in products and employ alternatives to substances of very high concern 6 ・Continued to operate global management systems for substances used in products to comply with applicable regulations in various countries and reduce risk

G27 G28 Global

Progress in Meeting Environmental Targets

Operations-related environmental initiatives and results (FY2012–FY2014) Mid-term plans for environmental initiatives (FY2015–FY2017)

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

1 ● Plans for the new mid-term include enhancing energy efficiency, improving our systems to 1 Global operations: Reduce CO2 emissions per unit of production by 5% by FY2014 (baseline: FY2009) At the start of the new mid-term which begins in fiscal 2015, reduce, reuse and recycle waste, reducing exhaust emissions, Purchasing domain: 2 ・Promote measurement and reduction of suppliers' GHG emissions under the revised Green Purchasing Guidelines we drew up a new set of plans to guide the reduction of and carrying out stricter management of substances of concern. Production domain: environmental impacts from our products and business activities Operations-related initiatives will include intensifying efforts to Climate change Strengthen initiatives that span 3 ・Install cutting-edge environmental technologies at the Yorii Automobile Plant in Japan (production scheduled to begin in 2013) and energy entire product life cycles and make preparations to deploy the technologies globally over the next three years. reduce product life-cycle CO2 emissions, minimizing water use, ・Set benchmarks for energy use and set higher efficiency standards Product-related initiatives during this period will be aimed at and actively promoting environmental management across the Transportation domain: 4 ・Increase transportation efficiency in each region by implementing modal shifts, deploying more fuel-efficient trucks, etc. minimizing all forms of impacts arising from products, and will supply chain.

Sales and services, administration, product development domains: 5 ・Promote energy conservation by encouraging eco-etiquette and more efficient use of facilities

Production domain: ● Mid-term plans for product-related environmental initiatives (FY2015–FY2017) ・Strengthen resource-use-reduction initiatives by increasing throughput yields to reduce by-products 6 ・Collaborate with suppliers to increase use of metal scraps Milestones on the road to 2020 Mid-term plans for product-related environmental initiatives (FY2015–FY2017) Ramp up 3R efforts ・Maintain zero landfill waste performance (Japan and Europe) Material and Achieve best-in-industry fuel efficiency and accelerate technology penetration: water resources End-of-life product recycling: 7 Motorcycles ・Expand use of programmed fuel-injection system (PGM-FI) and low-friction engines, especially in commuter vehicles ・Make steady efforts to comply with end-of-life vehicle recycling laws in various countries ・ Continue deployment of Earth Dreams Technology started in the previous 3-year mid-term Production domain: Reduce use according to conditions in each region, for example by conserving water and using recycled water in Minimize water use 8 Automobiles ・ Continue global release of 2.0-liter, 1.5-liter, and 1.0-liter turbocharged direct-injection engines providing class-leading power production processes output and environmental performance Achieve global targets for Power 2 Reduce VOC emissions from Production domain: Develop VOC emissions-reduction technologies for coating processes and expand application to overseas facilities and reducing average product CO2 ・ Accelerate use of compact engines and advance energy diversification Substances of concern 9 Products production processes motorcycle coating processes emissions, with the end goal of Establish and deploy next-generation electromotive technologies Corporate initiatives: steadily reducing product life- ・ Educate suppliers on the destructive impacts of hazardous substances and water use on ecosystems Climate cycle emissions over the long Motorcycles ・Market electric motorcycles that meet local needs in developed (Japan: loaned) and emerging (China) countries Local conservation initiatives Collaboration with local communities: change and term Biodiversity ・Expand lineup of models equipped with i-MMD, i-DCD hybrid systems in accordance with the Honda 10 ・Conduct biodiversity surveys at business sites in Japan energy ・ Introduce in Acura models the SPORT HYBRID SH-AWD, a three-motor hybrid system with seven-speed DCT with built in motor for Biodiversity Guidelines ・Develop policies, guidelines, and practical know-how at each business site Automobiles the front wheels, and independent motors for the left and right rear wheels ・Assess possibilities of introducing biodiversity initiatives at overseas business sites ・Release a production FCEV model in Japan in 2015, and the U.S. and Europe thereafter, to advance the popularization of FCEVs Strengthen global/regional pro-motional 11 Strengthen independent, voluntary promotional frameworks in each region, and strengthen global collaboration Power Environmental ・Improve robotic lawnmowers and expand lineup of electrically driven products frameworks and increase disclosure of Products management environmental data 12 Expand Honda Environmental Annual Report into a global report, and increase disclosure of environmental data in each region ・ Using demonstration test houses in Japan, verify the operation and practicality of technologies developed to realize zero-carbon mobility and Market new products to living by 2020, in collaboration with entities in other business sectors eliminate CO2 emissions from ・ Work with local governments in Japan to carry out demonstration testing of the MC-β micro EV with the aim of developing next-generation mobility and daily living vehicles that minimize environmental impacts while spreading the joy and freedom of mobility, and to offer community development solutions that are suitable for each location Results of FY2014 initiatives Products: Continue to promote structural design with an emphasis on weight reduction, higher throughput yields, easier recycling, and maintenance; and sustainable design with an emphasis on easily recycled materials and use of recycled resins Ramp up 3R efforts 1 Global operations Reduced average per-unit CO2 emissions by 6% in FY2014 (baseline: FY2009) Resource Maintain an automobile shredder residue (ASR) recycling rate of more than 70%, and improve the motorcycle recycling rate to more efficiency than 95% by year-end 2015 Expand and promote measurement of GHG gas emissions from suppliers in a broader range of activities covering product life cycles 2 Purchasing domain Reduce exhaust emissions Make steady progress in reducing exhaust emissions to comply with tighter emission regulations in various countries Asia & Oceania: Deployed the Energy Conservation Caravan to visit suppliers and monitor energy consumption ・Continue to promote management of substances used in products and employ alternatives to substances of very high concern Substances of More strictly manage substances ・Introduced advanced environmental technologies at the Yorii Automobile Plant in Japan, which began operations in 2013 ・ Continue to operate global management systems for substances used in products to comply with applicable regulations in various countries and of concern used in products ・Installed a megawatt-scale photovoltaic system at the Yorii Automobile Plant in Japan concern reduce risk ・Measured and monitored energy use for each process to revise production systems for higher efficiency 3 Production domain ・ Set benchmarks for energy use and set higher efficiency standards Climate change North America: Installed two 1.7-MW wind turbines at a transmission plant in Ohio ● Mid-term plans for operations-related environmental initiatives (FY2015–FY2017) and energy China: Installed a 10-MW solar photovoltaic system at a new plant at Guangqi Honda Automobile Co., Ltd. Asia & Oceania: Made progress in switching from diesel generators to natural gas cogeneration systems Milestones on the road to 2020 Mid-term plans for operations-related environmental initiatives (FY2015–FY2017)

・Promoted transportation modal shifts in each region 1 Global operations: Reduce CO2 emissions per unit of production by 10% by FY2017 (baseline: FY2009) ・Improved logistics efficiency by moving certain supplier operations on-site at the Yorii Automobile Plant Transportation domain 4 South America: Switched to coastal shipping routes to minimize truck transportation of motorcycles Purchasing domain: Asia & Oceania: Shifted from truck and other modes of transportation to rail for shipping of parts between Thailand and Malaysia ・Promote measurement and reduction of supply chain GHG emissions in each region based on the Green Purchasing Guidelines

Production domain: ・Disseminate advanced environmental technologies developed at the Yorii Automobile Plant in Japan, which began ・Promoted energy conservation by raising awareness, encouraging eco-etiquette, using facilities more efficiently Sales and service, administration, operations in 2013, to other production sites worldwide 5 ・Install high-efficiency devices (LED lighting, compressors, HVAC systems, IPM motors3) product development domains Climate ・Set benchmarks for energy use and set higher efficiency standards North America: Installed solar photovoltaic systems at dealerships Strengthen initiatives that span change and entire product life cycles Production domain:Install renewable energy systems energy ・South America: 27-MW wind power system ・China: Megawatt-scale photovoltaic system ・Implemented measures to improve throughput yields in the design stage 6 Production domain ・Japan: Megawatt-scale photovoltaic system at new test course in Sakura, Tochigi Prefecture ・Increase use of stamping press scrap metal Transportation domain: ・Increase transportation efficiency in each region by implementing modal shifts, improving truck fuel efficiency, etc. Material and water ・Continued efforts to comply with the automobile recycling regulations of each country ・ Spread packaging specifications without exterior containers worldwide 7 End-of-life product recycling Europe: Established a system for recycling batteries from hybrid vehicles resources Sales and service, administration, product development domains: ・Promote energy conservation by encouraging eco-etiquette and using facilities more efficiently ・Promoted use of recycled water and water-conservation activities in each region 8 Production domain Asia & Oceania: Installed a 20,000-ton rainwater storage facility for industrial use at a new plant in India Production domain: ・Intensify efforts to reduce resource use, e.g., by increasing throughput yields to reduce by-products ・Collaborate with suppliers to increase use of metal scraps Material Ramp up 3R efforts ・ At the Yorii Automobile Plant in Japan, adopted water-based Honda Smart Ecological Paint, enabling the elimination of a middle coat and ・Maintain zero landfill waste performance (Japan and Europe) and water switch from 4-coat/3-bake coating process to 3-coat/2-bake process End-of-life product recycling: Make steady efforts to comply with end-of-life vehicle recycling laws in various countries Substances of 9 Production domain ・Started using low-VOC coatings in coating processes resources concern Production domain: ・Used low-VOC coatings for prototype models in product development Minimize water use Reduce water use according to conditions in each region, for example by conserving water and using recycled water in production processes Production domain: ・Develop VOC emissions-reduction technologies for coating processes and expand application to overseas production sites Biodiversity 10 ・Conducted biodiversity surveys at business sites in Japan Substances of Reduce VOC2 emissions from and motorcycle to coating processes concern production processes ・Spread Honda Smart Ecological Paint introduced at the Yorii Automobile Plant in Japan to other new production site worldwide 11 Convened Regional Environmental Committees and trained and held meetings of environmental officers in all regions Environmental Local conservation initiatives Corporate initiatives: ・Address hazardous substances and water use that lead to ecological degradation ・Educate suppliers and other business partners management Biodiversity in accordance with the Honda 12 Issued a fiscal 2014 regional environmental report in each region (North America, South America, Europe, Asia & Oceania, China, and Japan) Biodiversity Guidelines Collaboration with local communities: ・HondaWoods3 activities

Strengthen global/regional pro-motional Strengthen independent, voluntary promotional frameworks in each region, and strengthen global collaboration Environmental frameworks and increase disclosure of management environmental data Advance sustainability reporting of environmental, social, and legal compliance

1. A single per-unit-of-production value was calculated by weighting the average reduction percentages for motorcycles, automobiles, and power products with the CO2 emissions associated with their respective life cycles. 1. A single per-unit-of-production value was calculated by weighting the average reduction percentages for motorcycles, automobiles, and power products with the 2. VOC (Volatile Organic Compounds): Organic chemical substances that cause photochemical smog and are commonly used in the solvents of paints and thinners. CO2 emissions associated with their respective life cycles. 3. Internal permanent magnet (IPM) motor: a synchronous alternating-current motor that has permanent magnets embedded in its rotor, known for its energy-saving capability due 2. VOC (Volatile Organic Compounds): Organic chemical substances that cause photochemical smog and are commonly used in the solvents of paints and thinners. G29 to its high efficiency and high torque. 3. See page J62 of Japan Report to learn more about HondaWoods. G30 Global

Next-Generation Technology

Honda is developing next-generation technologies that will enable comprehensive management of personal mobility products and energy generation systems.

Honda Smart Home System: High living comfort and low emissions at the same time

ProductsHonda develops mobility technologies in pursuit of superior environmental Internet performance and markets products catered to the specific needs of Next-generation solar hydrogen station customers in each region around the world. Solar panels Information

Information

ENERGY Energy MANAGEMENT generation

G32 Next-Generation Technology Standard AC charger G32 Honda Smart Home System: High living comfort and low emissions at the same time G33 Testing Honda Smart Homes around the world Household gas-engine cogeneration unit Next-generation Fuel cell electric vehicles: The ultimate in next-generation personal mobility personal mobility Standard DC charger Walking assist G34 Motorcycle G34 Message from the Head of Motorcycle R&D G35 New Mid Concept series High-voltaget β transmission lines eSP engine for next-generation compact scooters Weight support G36 ASEAN-made 125 cc-class models going global device Fuel-efficient Dream Neo 110-cc motorcycle released in India Monpal ML200

PGM-FI models expanded in Indonesia Honda's double-loop model links energy and next-generation personal mobility technologies Dunk 50-cc scooter ● Integrating personal mobility with energy generation technologies The results of these tests will be used to develop, by 2015,

Comprehensive management and optimization of energy supply technologies that help achieve a 50% reduction in CO2 emissions G37 Automobiles and demand is crucial to achieving our mission to realize "the (compared to 2000 levels) from household and vehicle G37 Message from the Head of Automobile R&D joy and freedom of mobility and a sustainable society where energy use. Ultimately, we are aiming to completely eliminate

G38 Third-generation Fit people can enjoy life." This applies not only to the energy used household CO2 emissions. G39 Latest hybrid models by mobility products but also energy used by households and Lightweight 1.6-liter diesel engine entire communities. ■ Energy flow in HSHS New eco-cars in Asia To make this happen, we're developing devices that will make G40 VTEC Turbo direct-injection engines up what we call the Honda Smart Home System(HSHS), a system Electricity N-WGN and N-WGN Custom mini-vehicles focused on using ICT technologies to link next-generation personal mobility devices, mainly electric vehicles, with local CIGS thin-ﬁlm solar panels electric grids and distributed energy generation equipment. Electricity G41 Power Products use G41 Message from the Head of Power Products R&D ●Honda Smart Home System G42 EU7000is generator with inverter and FI At the heart of Honda Electric Mobility Synergy is the Honda BF100 and BF80 four-stroke outboard engines Smart Home System (HSHS). G43 HSL2511: the snow blower with FI This energy management system comprehensively controls household energy to achieve the highest efficiency and lowest Heat

CO2 emissions. It also enables individual homes to be energy use self-sufficient during emergencies such as during power outages LNG or and natural disasters. LPG Since April 2012, we've been pilot testing the HSHS in Japan. use * EVs and FCEVs stand in for home battery units.

G32 Global

Next-Generation Technology

Testing Honda Smart Homes around the world Motorcycles

● Test house built in Saitama City, Japan in three-company House and Toshiba to refine, in a real-world environment, Message from the Head of Motorcycle R&D partnership technologies that support lifestyles of the future. Sekisui House, Ltd., Toshiba Corporation, and Honda have built a new demonstration test house in the city of Saitama and begun ● Honda Smart Home US built in California, U.S. "Driving innovation that makes environmental technologies verifying the use of advanced energy management technologies In California, we built and opened the Honda Smart Home US affordable is our highest priority." in new styles of living. The house features technologies that (HSH US), a demonstration test house featuring a home energy Yoshishige Nomura Director and Managing Officer, Motorcycle R&D Center, Honda R&D Co., Ltd. enable comprehensive control of IT, personal mobility, and other management system (HEMS1) independently developed by devices, as well as the supply and demand of energy used in the American Honda Motor Co., Inc. home, for mobility, and within the local community. HSH US was fully furnished and equipped with household Meeting new needs in emerging markets Occupied by real tenants during testing, the test home is a appliances, as well as a Fit EV battery electric vehicle for duplex-style house that allows the sharing of energy resources, commuting, to enable testing by occupants. Looking back on fiscal 2014, it's best we start with emerging markets, such as electricity and hot water, between households; for The house generates more electricity from renewable sources the main driver of Honda's thriving motorcycle business in recent example, one household can use surplus electricity generated by than it consumes in a year, including the energy needed to years. the solar panels while other household members are out during charge the Fit EV for daily commuting. It is also extremely In the ASEAN countries of Southeast Asia, changes in consumer the day. Through various technical innovations and initiatives— efficient: it uses less than half the energy for heating, cooling, preferences have emerged in tandem with economic growth. Utility such as a contact-less charger for cordless EV charging, and lighting than a similarly sized home in the area, and uses is starting to lose its standing as the most desired attribute in a bike, vehicle-to-home and vehicle-to-community electricity supply a third of the water consumed by the average American with scooters accounting for a larger share of the market and demand applications, and the designing of living spaces that facilitate household.2 for fun-to-ride models also growing. use of personal mobility devices—Honda will work with Sekisui I think Honda has made the right moves to capture this new demand. We expanded our lineup of compact scooters powered by eSP, a next-generation global engine that delivers high environmental performance. We also unveiled in Thailand the CBR300R motorcycle, which has a larger engine displacement than the model it replaces. In India, a country with enormous potential for Honda, unit sales

Test house built on the campus had declined due to our dissolving a joint venture with a local Duplex test house built in of the University of California, manufacturer in 2011. Nonetheless, we grew sales in fiscal 2014 by Saitama City Davis rolling out the Dream Neo, which boasts class-leading fuel efficiency, and the Activa-i for the emerging female demographic. Going forward, Photo: Motorcycle R&D Center, Honda R&D Co., Ltd. Fuel cell electric vehicles: The ultimate in next-generation personal mobility we will aim to quickly take back our position as the best-selling brand in India. Honda is actively engaged in research and development of the In developed markets, meanwhile, some interesting changes have been taking place in North America. The market for four-wheel utility fuel cell electric vehicle (FCEV)—a vehicle that runs on hydrogen vehicles, also known as side-by-sides, is expanding rapidly; Honda responded by launching the Pioneer 700. In mature markets, customer and offers the same comfort, cruising range, and driving preferences have diversified, requiring more recreational and distinctive products. Honda has successfully met these changes in developed Honda's newly developed FC performance as a gasoline vehicle but without creating any Stack delivers an output of markets by leading the industry in developing products tailored to diverse consumer segments. carbon emissions—as the ultimate eco-car. more than 100 kW and power output density of 3 kW/liter while being 33% smaller than the previous technology. Environmental leadership is no longer an option

While other motorcycles makers around the world have languished, Honda has greatly increased hydrogen storage tank that provides a cruising range of more its sales volume, reaching 1.7 million units in fiscal 2014. than 300 miles (around 480 km). The tank can be refilled in For Honda to remain a market leader in major growth economies such as India, Indonesia, and about 3 minutes, making refueling as quick and easy as today's Africa, achieving—and maintaining—the highest environmental performance is no longer gasoline vehicles. an option. We're carrying out a number of R&D initiatives to realize further improvements in External power supply capability, developed through the environmental performance of our motorcycles—from the expansion of friction-reducing demonstration testing of the FCX Clarity, is also optional on all technologies, our Idle Stop System, and PGM-FI for engines, to the application of fuel-efficient Japanese-market models, providing backup power that can be technologies from Honda automobiles.

FCEV Concept supplied to the home in disasters and other emergencies. Most important, however, is our ability to deliver these cutting-edge technologies at affordable ● FCEV Concept We plan to release a production FCEV model based on this prices. There's no point in sharing environmental benefits with only a few. I believe it's Honda's In 2013, Honda unveiled the FCEV Concept, a next-generation concept vehicle in Japan in 2015, and in the U.S. and Europe responsibility as a market leader to get advanced environmental technologies in the hands of concept car designed to realize better performance at a lower thereafter. We also will move forward with various initiatives to more and more people. I'll see to it that we take bold steps to commercialize these technologies cost than the FCX Clarity, aiming for release in 2015, when the drive the popularization of FCEVs by 2020, including working so we can achieve this. first production FCEVs are expected to hit the Japanese market. with General Motors to develop a fuel cell system and hydrogen The FCEV Concept is equipped with a 70 MPa high-pressure storage tank that are smaller, lighter, perform better, and are more affordable.

1. Home Energy Management System 2. Honda internal data

G33 G34 Global

Motorcycles

Global Honda is driving the market penetration of models and engines with advanced environmental performance, especially in the rapidly ASEAN-made 125 cc-class models going global growing Asian region. ● A class of motorcycles with universal appeal CBR125R, Grom, Cross There's no reason the many 125 cc-class bikes we've marketed Cub, Zoomer-X, and New Mid Concept series offers both enhanced riding and fuel efficient performance Global in ASEAN countries and other parts of Asia can't be the perfect various other models. commuters in other regional markets, given their exceptional fuel performance, space efficiency, and maneuverability. In Japan, we've made use of these globally-made models to augment our lineup by introducing the LEAD125, Sh mode,

LEAD125

Fuel-efficient Dream Neo 110-cc motorcycle released in India India

● Most fuel-efficient Honda motorcycle in India NC750X NC750S Integra In April 2013, we released the Dream Neo, the most affordable and ● Evolution of the New Mid Concept series ● Better fuel performance in a larger engine most fuel-efficient Honda motorcycle released in India to date. In January 2014, we announced and began sales of the NC750X, To obtain more powerful output characteristics from the new The Dream Neo is powered by a new air-cooled four-stroke 110-cc NC750S, and Integra, large sport motorcycles equipped with engine installed in the New Mid Concept series, we increased engine that delivers the highest output and torque among Honda water-cooled, four-stroke overhead cam, straight two-cylinder displacement by expanding the cylinder bore by 4.0 mm. This motorcycles in the equivalent class. And with a fuel economy of 750-cc engines boasting powerful torque characteristics, easy resulted in a 3-kW increase in maximum output and 7-N·m 74 km/liter, it's also the most fuel-efficient Honda bike marketed in handling, and outstanding fuel efficiency. increase in maximum torque from the previous model. To support India. These three models are the next step in the evolution of the NC700X, the increased cylinder volume, we switched from one balance Dream Neo NC700S, and Integra, the first New Mid Concept models released in shaft to two. We also adopted taller transmission gear ratios to 2011. The original series adopted fuel efficiency technologies from boost fuel efficiency, up 1.0 km/liter from the previous model 1 Indonesia Honda automobiles to realize a 40% improvement in fuel economy when tested at a constant speed of 60 km/h on a flat surface. PGM-FI models expanded in Indonesia compared to other engines in the same class. This time around, We view the New Mid Concept series as a way to raise the ●PGM-FI models expanded in Indonesia we improved fuel efficiency and added more features while also environmental performance of mid-size motorcycles worldwide, Since issuing the All-FI Declaration, a pledge to install our fuel- upsizing engine capacity. With this enhanced product appeal, we and will install this new engine in a growing number of models to saving PGM-FI electronic fuel injection system in all motorcycles will aim to further increase the popularity of mid-size bikes with realize further reductions in our global environmental impact. produced in Indonesia by the end of 2013, we have gradually advanced environmental performance. expanded our lineup of models with PGM-FI. In fiscal 2014, with the release of such models as the Supra X 125 FI and Mega Pro FI, Expansion and evolution of the eSP global engine for next-generation compact scooters Global we reached our target of 100% adoption of PGM-FI in all models produced. We have also introduced a newly developed eSP engine for Supra X 125 FI Mega Pro FI the 50-cc class to complement those in the 125-cc and 150- cc classes. This engine has been installed in in nine models in more than 30 countries. Going forward, we will further refine Setting a new standard with the release of the new Dunk 50-cc scooter Japan

this engine and expand its use to improve the environmental ● eSP engine debuts in 50 cc-class model performance of compact scooters worldwide. In February 2014, we released the Dunk, our first new 50 cc-class Click with eSP (Thailand, etc.) scooter in 12 years. ● Redesigned PCX fitted with improved eSP engine SH with eSP (Europe, etc.) The Dunk is based on a "premium sneakers" concept that seeks In January 2014, we released to provide riders with the joy of an elegant ride that's also easy to a completely redesigned use. The model offers a new standard in scooter riding that adds PCX and PCX150 in markets an extra level of fun to daily activities for a wide demographic, worldwide, including ASEAN Dunk, the first 50 cc-class including young adults. Global engine for next-generation countries, Europe, and Honda scooter in 12 years compact scooters (cut-away model) To give it the power and environmental performance befitting North and South America. In a new standard scooter, we equipped the Dunk with a newly ● eSP: Powering in nine models in more than 30 countries addition to being powered developed eSP engine featuring extensive low-friction PCX The eSP, a global engine developed for a new generation of by an improved eSP engine, technologies—the first time in a 50 cc-class scooter. This compact scooters, realizes 25% higher fuel efficiency than existing these models also feature resulting fuel economy of 56.6 km/liter (when tested using the engines in the same class. Since releasing the engine in 2011, various body-related improvements that provide a further boost Worldwide-harmonized Motorcycle Test Cycle2) is 10% higher we've ramped up global sales of compact scooters fitted with the to fuel efficiency, including all LED lamps, which provide a 60% than existing bikes in the equivalent class, while also boosting Newly developed eSP, a water- eSP for higher environmental performance, selling 2.08 million improvement in electrical efficiency, and a fuel-efficient rear tire cooled, four-stroke overhead output by 18% and torque by 11%, also compared to bikes in the units in the two years since 2012. boasting 20% less rolling resistance. cam, single-cylinder 50-cc engine same class.

1. Programmed Fuel Injection 2. Fuel efficiency value measured using the WMTC test cycle, an international standard stipulating the method for testing exhaust gas under conditions that better G35 reflect real-world vehicle driving patterns, such as startup, acceleration, and stopping. G36 Global

Automobiles

Message from the Head of Automobile R&D Honda makes the most of advanced technologies to develop automobiles that balance driving fun with environmental performance.

Striving for products that offer high environmental performance Redesigning a globally strategic model: the third-generation Fit Global

and exciting value unique to Honda ● Even gasoline engine model boasts class-leading fuel economy The 1.3-liter gasoline engine Fit employs a newly developed Jiro Yamaguchi Director and Senior Managing Officer, Automobile R&D Center, Honda R&D Co., Ltd. Atkinson cycle engine and an optional continuously variable transmission for dramatically enhanced transmission efficiency. Optimizing our global product lineup led to industry-leading environmental performance in each region These result in a fuel economy of 26.0 km/liter6 (JC08 test mode), which rivals that of early hybrid models. One great achievement of fiscal 2014 was the global launch of a new generation of compact vehicles. We completely redesigned the Fit series to provide class-leading fuel performance in both gasoline Fit Hybrid and hybrid vehicle variations, and also released the Vezel SUV and City sedan based on the same high-efficiency powertrain. This trio of 1.3-liter Atkinson Cycle efficient vehicles put us in the right place to deliver a new generation ● A compact car with global proportions DOHC i-VTEC of compact vehicles to customers worldwide. Fit engine Since its launch in 2001, the Fit has sold an impressive 4.87 In North America, we finished development of the Acura RLX, featuring million units in 123 countries worldwide.1 We released a ● Rigorous weight reductions boost fuel performance SPORT HYBRID SH-AWD (Super Handling All-Wheel Drive), Honda's first completely redesigned model—the first in seven years— Around 23% of the Fit's body is made of ultra-high-tensile steel, three-motor hybrid system. Combined with the one-motor hybrid system, in Japan in September 2013. To make this third-generation steel that is stronger and lighter than high-tensile steel, defined SPORT HYBRID i-DCD (Intelligent Dual Clutch Drive), and two-motor compact model more convenient, user-friendly, and appealing to as having a tensile strength7 of 780 MPa or more. This trimmed hybrid system, SPORT HYBRID i-MMD (Intelligent Multi-Mode Drive), these customers worldwide, we loaded it with advanced technologies, approximately 9 kg of weight and provided an additional boost three models complete our hybrid vehicle lineup. including an Earth Dreams Technology2 powertrain and new to fuel efficiency, while also enhancing collision safety. We also released a variety of new models in other regions across the platform. globe, including the Civic Tourer wagon in Europe, the Amaze sedan in ■ Breakdown of steel tensile strengths India, and the Mobilio MPV with third-row seating in Indonesia. ● Newly developed Sport Hybrid i-DCD hybrid system Behind these successes was the impressive growth of our local product The Fit Hybrid features Sport Hybrid i-DCD,3 a newly developed developers in emerging countries. In fiscal 2014, we got significantly lightweight and compact one-motor hybrid system. Paired with closer to what we see as the ideal process for global product a newly developed 1.5-liter Atkinson cycle engine, these systems development: to develop core technologies in Japan and support Photo: Automobile R&D Center (Tochigi), Honda R&D Co., Ltd. automatically select the most efficient of three driving modes overseas developers as they incorporate them into models optimized depending on operating conditions, thereby achieving an to each region. This approach helped us realize industry-leading environmental performance in each region. exceptional fuel efficiency of 36.4 km/liter 4 (JC08 test cycle). ● Rollout of the Global Compact Series New-generation VTEC Turbo engines lead The powertrain series that premiered in the new Fit will be the way to more affordable environmental technologies gradually expanded to upcoming models in Honda's Global ■ Sport Hybrid i-DCD Compact Series, which includes the Vezel SUV released in In emerging markets like China, India, Brazil, and Africa, motorization is advancing at a pace many time faster than post-war Japan. The fate Japan in December 2013, the City sedan released in India, and of our business in these countries will hinge on how economically we can deliver environmentally advanced products. One technology the North American version of the Fit produced at our new that offers a solution is engine downsizing, the approach of using forced induction and other automobile plant in Mexico. efficiency technologies to deliver more power with less displacement. We developed VTEC Turbo, a new-generation downsized turbo engine that delivers higher fuel performance at a lower cost, as well as power performance that lives up to Honda's reputation for fun driving. We plan to fit this engine in a number of global models from fiscal 2015, so be on the lookout. + + 1.5-liter Atkinson Cycle 7-speed DCT with IPU5 with built-in DOHC i-VTEC engine built-in motor lithium-ion battery One important task from a longer-term perspective is workplace development. While low-carbon Vezel SUV in the technology is an essential part of future mobility, customers won't buy our products if they don't Global Compact ■ Operating modes Torque Series come with an added element of excitement, an appeal that only Honda can provide. Honda's Electricity Clutch off Clutch on Clutch on identity is rooted in the creation of amazing products no one has ever seen before. To continue Motor Engine Motor Engine Motor Engine developing exciting, mold-breaking products, we need exciting, mold-breaking workplaces for our developers. By returning to a work environment and culture that fearlessly takes on new challenges, we will lay the foundation for launching products that are the first and best of their kind. It will also help us raise the next generation of developers who will lead Honda—and Battery Battery Battery the world—in environmental innovation, and to realize the zero-impact society we all strive

for. I hope to share this passion with our young developers and show the world what Honda EV Drive Hybrid Drive Engine Drive New City Sedan (India) in the Fit for North America, produced at Global Compact Series a new automobile plant in Mexico is truly made of by conceiving a long line of new, appealing products that embody the perfect combination of environmental performance and enjoyment. 1. As of March 31, 2013 2. A next-generation powertrain series that greatly enhances both driving performance and fuel economy, building on advancements in environmental performance for internal combustion engines, transmission efficiency, and electromotive technologies to pursue the joy of driving unique to Honda. 3. i-DCD: Intelligent Dual Clutch Drive 4. Testing of the Fit Hybrid (FWD) by the Japanese Ministry of Land, Infrastructure, Transport and Tourism 5. Intelligent power unit 6. Testing of the Fit 13G (FWD/CVT) by the Japan's Ministry of Land, Infrastructure, G37 Transport and Tourism 7. Tensile strength: The strength of a material to resist being stretched or pulled apart. G38 Global

Automobiles

The latest hybrid models and lightweighting technologies North America New VTEC Turbo line of turbocharged direct-injection engines Japan

● Acura RLX newly developed three-motor sport hybrid system ● Honda-exclusive metal joining technologies 2.0-liter four-cylinder direct-injection 1.5-liter four-cylinder direct- gasoline turbo engine injection gasoline turbo engine The 2014 RLX announced in North America is powered by the Sport What do the 3D Lock Seam used in the door panels of the RLX Hybrid SH-AWD,1 Honda's first three-motor hybrid system. A 3.5-liter and friction-stir welding (FSW) used in the front subframe of the direct-injected V6 engine, paired with a seven-speed DCT with built- Accord have in common? Both take advantage of a new welding in motor, controls torque to the left and right wheels independently, technology for joining aluminum and steel, two metals with vastly and simultaneously delivers the acceleration performance of a V8 different material properties. They also represent an advancement 1.0-liter three- engine and the fuel economy of an in-line four-cylinder engine. in broadening the application of lightweight aluminum, which cylinder direct- injection gasoline contributes to lighter, more fuel-efficient vehicles. turbo engine

This engine makes the most of our proprietary VTEC system, This next-generation compact engine features a newly designed framework and ■ FSW a high-output turbocharger, direct injection, and a high- VTEC variable valve timing system with radically reduced friction, combined with Rotation performance cooling system to realize high power output and direct-injection technology and a high-response turbocharger with a low moment of high responsiveness. It delivers a maximum power output of inertia. These technologies offer a superior combination of fuel economy and power more than 205 kW and a high environmental performance output and torque, both of which exceed that of conventional, naturally aspirated Tool Pressure compliant with EURO 6, European emission regulations that will engines. Aluminum come into force in September 2014.

Aluminum

Steel Steel ● Class-leading power and environmental performance and a turbocharger along with highly fluidized combustion 2014 Acura RLX Weld SPORT HYBRID SH-AWD Honda has developed VTEC Turbo, a new series of direct- to allow for reduced engine displacement. Rigorous friction- injection gasoline turbo engines in our Earth Dreams reduction measures also provide class-leading power and Technology series. environmental performance. Sized in three classes—2.0, 1.5, Expanding application of our lightweight 1.6-liter diesel engine Europe These engines, adapted for compact and medium-sized and 1.0 liters—the engines will be increasingly deployed ● Civic Tourer released in February 2014 cars, take advantage of our proprietary VTEC system worldwide, with each engine selected to match the vehicle it We're expanding the application of our 1.6-liter i-DTEC diesel and the increased output provided by direct-injection powers as well as local market needs. engine, released in January 2013 in the Civic 5-door as the first Earth Dreams Technology component introduced in Europe. N-WGN and N-WGN Custom extend popularity of the N series Japan The engine now powers the Civic Tourer, a new wagon model launched in February 2014 that was specifically developed for the Civic Tourer Civic 5-door twin injection system, a system that uses two fuel injectors per European market. cylinder instead of one. This system mixes fuel and air more 2 This lightest-in-class compact diesel engine delivers a powerful evenly, leading to improved drivability and fuel economy. and fun driving performance, along with a CO2 emissions 1.6-liter i-DTEC diesel engine Previous system (2011 N BOX) New system performance of just 99 g/km.3 (cut-away model) Injector Injectors

New eco-cars released in India and China Asia & Oceania China N-WGN ● New City world premiere held in India ● Earth Dreams Technology debuts in China In January 2014, we unveiled in India the all-new City, a sedan In a press announcement in June 2013, we expressed our Twin injection system atomizes fuel and distributes the air-fuel mixture more model in our Global Compact Series of vehicles developed for commitment to proactively introducing environmental, safety, ● Raising the bar on the "basic" mini-vehicle evenly markets worldwide. and comfort technologies to the Chinese market to provide our In November 2013, we released the N-WGN and N-WGN Custom, the As an embodiment of our "man maximum, machine minimum" customers there with greater fun, satisfaction, and convenience fourth installment in our popular N series of mini-vehicles. ● Sodium-filled exhaust valves help suppress knocking 4 (M/M) philosophy, it offers the most spacious interior of any City in line with our founding belief that "technology is for people." The N-WGN, developed with the aim of setting a new standard for The N-WGN engine employs sodium-filled exhaust valves—the 5 thus far. In India, the City is available with either a 1.5-liter four- Soon after, in September 2013, we unveiled the new Accord, the "basic" mini-vehicle, offers better comfort, safety, fuel economy, first time in a Honda passenger vehicle. These valves transport and cylinder i-DTEC diesel engine or a 1.5-liter four-cylinder SOHC the first model in China to feature Earth Dreams Technology. We design, and driving performance than ever before. A comfortable dissipate heat more efficiently than conventional valves, lowering i-VTEC gasoline engine, both of which deliver high fuel efficiency plan to continue expanding these innovative powertrains to new interior and great features such as Vehicle Stability Assist (VSA), the surrounding temperature and suppressing engine knocking. and power output. The City will be rolled out in a growing models in China to achieve even higher levels of fun-to-drive which helps prevent the loss of vehicle control, come standard number of markets worldwide. performance and to be the first automaker to satisfy China's strict on all types, while a newly developed engine and CVT provide fuel economy regulations. smooth, stress-free driving and a high fuel economy of 29.2 km/liter 2 Valve guide (JC08 test cycle). The adoption of a lightweight yet rigid body and dedicated suspension system facilitate stable driving performance Coolant and quiet operation. Sodium

● Twin injection system The Accord has sold 1.5 million units in For the first time in a mini-vehicle, the N-WGN employs a Heat flow All-new City, a sedan model in our China since 1999. The Global Compact Series of vehicles new model features an developed for markets worldwide exterior tailored to the Chinese market

1. Testing of the N-WGN G, N-WGN G A Package, N-WGN Custom G, and N-WGN Custom G A Package (FWD vehicles) by the Japan's Ministry of Land, Infrastructure, 1. Super Handling-All-Wheel Drive 2. Honda internal data (as of September 30, 2012) 3. Honda internal data (Civic Tourer, as of September 2013) Transport and Tourism 4. A basic Honda design philosophy that seeks to maximize space and comfort for people and minimize space occupied by the product and its components G39 5. Honda internal data G40 Global

Power Products

Message from the Head of Power Products R&D Honda develops an extensive line of power products and is constantly working to improve their environmental performance to raise the quality of life for everyone.

Building in environmental performance EU7000is generator with inverter and electronic fuel injection Global

for reduced impact ● More efficient and more powerful In January 2014, we unveiled in the U.S. the EU7000is, Honda's first Takao Nishida Director and Managing Officer, Power Products R&D Center, Honda R&D Co., Ltd. inverter generator to incorporate fuel injection (FI) technology. Compared to the model it replaces, the EU7000is runs longer 4 thanks to a 20% improvement in fuel efficiency, while also FI and efficiency upgrades provided enhanced 3.5 delivering 8% higher power output. The use of fuel injection environmental performance and utility in FY2014 3 eliminates the need for a choke valve, dramatically improving 2.5 In fiscal 2014, we equipped a two-stage snow blower in Japan and a operation at start-up and also enhancing the generator's long- 2 1 3.56 large generator overseas with FI, realizing a roughly 15% improvement 3.28 term storability. The adoption of FI and a three-way catalytic 1.5 2.95 in fuel efficiency as well as enhanced utility for users. FI is already a EU7000is converter also results in exhaust emissions that meet the U.S. 1 common technology in automobiles and motorcycles, but cost has Environmental Protection Agency's (EPA) Phase 3 standards, the Consumo de combustível (litro/h) 0.5 been a major hurdle to its adoption in power equipment. Our success most stringent emission standards for small gasoline equipment in 0 EU7000is EU6500is Produto in surmounting this hurdle in fiscal 2014 thus has huge significance for (modelo anterior) rival A the world. future product development. From a portability, quietness, and size standpoint, the EU7000is In emerging markets, we unveiled a water pump for agricultural has all the right qualities to make it suitable for use across a applications that, due to enhanced pumping efficiency, is more fuel- range of scenarios and settings, including for backup power in efficient. We also released in 2014 a four-stroke backpack power emergencies, at construction sites, and for camping. sprayer—a device for spraying agricultural chemicals that users can BF100 and BF80 four-stroke outboard engines delivering exceptional fuel and power performance Global carry on their back—as a fuel-efficient alternative to mainstream two- stroke models, as well as other products that contribute to reduced ● Higher output in the same lightweight, compact design stoke outboard engines in the spirit of founder Soichiro Honda's agricultural emissions in emerging countries. For Europe and other markets outside Japan, we released the philosophy that nothing that runs on water should contribute

Photo: Power Products R&D Center, Honda R&D Co., Ltd. BF100 (100 horsepower) and BF80 (80 horsepower), medium-sized to its pollution. Fifty years later, we're introducing cutting-edge " We want to create tools customers will use with four-stroke outboard engines combining high fuel efficiency with technology as the pioneer of the four-stroke outboard engine. affection for 10, 15 years." advanced power performance. These new models build on the BF90 and BF75 (90 and 75 Turning to the future, we're developing products that offer new value. These include not only extremely fuel-efficient engine models, horsepower) 1.5-liter straight four-cylinder engines by offering but also products that run on alternative fuels such as alcohol and gas, as well as those powered by electricity. Electric products are quiet, higher efficiency and power output in the same lightweight, emit zero CO2 during use, and also offer more precise control. As long as we can fully leverage the convenient qualities of electricity, these compact design. Incorporating programmed fuel injection (PGM- products are an effective option for improving environmental performance and user friendliness simultaneously. We're already using 1 FI) with an O2 sensor has enabled lean burn control during electricity in Honda automobiles and motorcycles, but creating electric products with the performance customers seek but at appealing cruising,2 resulting in a higher fuel efficiency. prices will require one more step forward in innovation. We need to upgrade our technologies by pursuing all of the qualities power The two engines are also compliant with emission regulations in products are expected to have as tools—from comfortable and efficient control and operation, to even having the most convenient size various countries, including the latest U.S. EPA regulations (EPA's and weight—and then refine them to the point where we can include them in products at an attractive price. fiscal 2010) and California Air Resources Board exhaust emission Price is the hard part about electrification in particular, but also power products in general. That's why we're working to realize products that not have superior environmental performance but are also surprisingly easy and fun to use. regulations. In fiscal 2015, we plan to get the ball rolling by releasing the first model in our product They are also compliant with NMEA 2000, the communications electrification strategy in developed countries. We're basing this product on an existing gasoline standard for marine electronics set by the U.S. National Marine engine model so customers can still feel at home with the new setup. Electronics Association (NMEA), enabling networking with a BF100 (left) and BF80 (right) In emerging countries, we want to continue pursuing our current strategy of delivering products variety of marine electronic devices. This means that, in addition at more affordable prices. For most customers in emerging countries, power products are work to providing electronic output on engine speed, running time, and tools: they are a means of securing a livelihood and improving one's quality of life. As such, they other real-time performance data, these models also deliver an don't need fancy features. By practicing sangen-shugi (a Japanese manufacturing philosophy Eco lamp signal which, when connected to a compatible display that emphasizes focusing on the actual place, source, and facts of a problem) in the marketplace gauge, will illuminate a lamp to indicate lean burning and notify and reducing products to their essential functions, we hope to develop products that are the driver of fuel-efficient engine operation. appealing by every measure, price included. Spreading the joy of utility in this way will be a NMEA 2000-compliant gauge All Honda outboard engine models with 40 or more horsepower major theme going forward. Example of Eco lamp illumination At the same time, we have to consciously build in environmental performance according to the and PGM-FI incorporate lean burn control technology that unique characteristics of each product. No one will buy a tool whose only selling point is that it's combines with Eco lamp display capability to facilitate fuel- good for the environment. We need to create tools with the kind of utility that everyone desires, efficient driving. tools that people will use with affection for 10, 15 years—and to include in them environmental Since releasing our first four-stroke outboard engine, performance that's still relevant after those 10, 15 years have passed. At Honda, that's our mission the GB30, in 1964, we have consistently developed four- as a company striving to build a sustainable society. 1. PGM-FI is a registered trademark of Honda Motor Co., Ltd. 2. Cruising speed range when the throttle is kept open at around 50 to 80%. 1. Electronic fuel injection G41 G42 Power Products

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

● World's first auger assist function In November 2013, we released the HSL2511, the first snow blower in the world1 to incorporate fuel injection (FI) technology. This two-stage snow blower employs the Honda Smart Auger System, which has three auger settings (auger assist, auger lift, and auger reset) that make heavy snow-throwing work simple and easy. The world-first 2 auger assist function 3, that can be turned on and Management off with the flip of a switch, makes simple work of snow-clearing Honda has built a globally integrated environmental management system for advancing jobs that require more advanced techniques, such as clearing environmental conservation on a local level across all regions globally. high banks of snow in a step-wise fashion. The model's new four- stroke V-twin engine, which includes a Honda-original electronic governor for regulating engine speed and electronic fuel injection (first in the world2 for a gasoline engine-powered snow blower), delivers high fuel economy and exceptional ease of starting and operation. HSL2511 two-stage snow blower (front)

● Simple operation, powerful results The adoption of a Honda-exclusive STR Governor and powerful new V-twin engine provide class-leading2 snow clearing performance of 140 tons per hour. Two operating modes provide different engine output characteristics depending on the situation: Standard mode uses powerful torque to achieve quick and easy snow removal, while Distance mode uses high speed, high output G45 Global Environmental Management

to throw snow higher and farther—in fact, as far as 26 meters, HSL2511 two-stage snow HSL2511 control panel G45 Environmental management organization the farthest in this class.2 The HSL2511 also includes a teaching blower (back) G46 Environmental management at Honda business sites function, which features a speed guide monitor to help the G47 Disclosure of total GHG emissions operator adjust the driving speed and obtain the highest work G49 Economic benefits of environmental conservation activities efficiency in each mode. Engine torque comparison between Distance and Standard modes At Honda, we develop snow blowers based on the philosophy that 18 G50 Global Environmental Impact easier, more efficient operation not only reduces stress for users Engine torque (N·m) 16 but also reduces energy use through shorter work times, thus 14 G51 Regional Environmental Topics shrinking our impact on the global environment. Distance mode 12 G51 North America 10 Standard mode G52 Europe ● Pursuing reliability, comfort, and ease of use 8 6 G52 Asia & Oceania The inclusion of FI eliminates the need for choke operation, Decreased engine speed from heavy load 4 providing smooth starts even in frigid temperatures and high G53 China 2 fuel economy. This also made the carburetor obsolete, along G53 Japan 0 with the associated need for altitude correction and after-use 1500 2000 2500 3000 3500 4000 4500 maintenance. engine speed（rpm） *The engine is designed to provide much higher torque when the engine slows down, making operation easy. ● Environmental performance A new GX690H V-twin engine (displacement 688 cm3) not only

High Can throw snow faster and farther delivers better practical fuel efficiency4 but also less noise5 and fewer emissions. Electronic governor Engine

Conventional governor Low

Low 3850rpm High engine speed

1. For petrol engine engine snow blower (Honda internal data, as of July 31, 2013) 2. Honda internal data, as of July 31, 2013 3. J-type only 4. Approximately 15% better compared to the previous model in the same class, despite 20 cm3 larger engine displacement G43 5. When operated in Standard mode G45 Global

Global Environmental Management

Honda has created an institutional framework to put into practice the environmental principles articulated in the Honda Environment ● Regulatory compliance and regulations, company policies, and internal standards. We Statement, and has expanded it globally. In addition to creating environmental management systems at the global and regional levels, In accordance with the Honda Environment Statement, Honda have appointed corporate directors to serve as Compliance we are also actively working to establish these systems and to obtain ISO 14001 certification at all business sites. introduces environmental management systems at all business Officers, and work systematically to enhance compliance and sites and in each division, promotes continuous efforts to risk management under the supervision of directors in charge of improve environmental performance, and strives to comply with each part of the organization. voluntary environmental standards that are more stringent than

national and local regulations.We revised the Honda Conduct Honda Conduct Guideline Environmental management organization Guideline in April 2013 (formulated 2010) and are implementing http://world.honda.com/conductguideline/ it throughout the Honda Group in Japan and worldwide. The ● Organizational structure ● The PDCA cycle of eco-conservation activities document calls on Honda associates to comply with laws and ● Emergency protocols In December 1991, Honda created what is now the Japan The World Environment and Safety Committee develops develops regulations, company rules, and social norms and, for the In anticipation of accidents and emergencies that could cause Environmental Committee and assigned it a central role three-year mid-term policies and plans for global environmental initiatives purposes of environmental conservation, to strive to reduce environmental pollution, each factory and division has clearly- in governing the environmental affairs of the company. based on mid-term policies and management plans determined by the environmental impacts in their work by conserving and recycling defined procedures for preventing pollution. Since then, this structure has been expanded into a Management Council. Individual divisions prepare detailed plans for resources and energy in accordance with environmental laws global environmental management system with regional each region and business area, and then finalize the overall plans after environmental committees in North America, South America, discussion and approval by the regional environmental committees. Europe, Asia & Oceania, and China. The regional environmental committees discuss and evaluate annual Environmental management at Honda business sites In March 1995, the World Environment and Safety Committee achievements under the plans and, based on the results, create new targets was established to manage environmental as well as safety and plans with the objective of achieving mid-term policies and plans. The Along with development of environmental management systems plan to promote acquisition and expand our integrated system 1 initiatives, through which Honda aims to create a motorized progress of environmental initiatives by Honda Group companies, as well as at the global and regional levels, we have been introducing such to include environmental management of the Saitama Factory's society that is safe for all people. The committee discusses, themes affecting multiple domains around the world, are reported to the systems at each business site in order to continuously improve Yorii Automobile Plant, newly completed in March 2013. We also determines, and reviews annual plans for implementing World Environment and Safety Committee and then factored into the next their environmental performance and to control environmental combined in fiscal 2012 the certification registration for nine office environmental conservation activities at the global level year's annual plans and the next mid-term business plans and policies. Honda pollutants. buildings in Japan, including the Honda head office buildings in based on mid-term business plans, and has created an follows the Plan-Do-Check-Act cycle to promote continuous improvement Aoyama and Wako. environmental management system that integrates activities in environmental performance in each region: Japan, North America, South ● ISO 14001-certification status worldwide on the global level with those on the factory floor. America, Europe, Asia & Oceania, and China. We have been working actively to acquire ISO 14001, an ● Implementation of third-party verification In April 2014, Honda established the Japan Headquarters and One hallmark of this system is that planning and implementation are not international certification for environmental management, In order to ensure that society and stakeholders recognize a high separated global functions from operations in Japan. Prior simply delegated to specialized staff, rather all associates are expected to be particularly at our production facilities. Presently, more than 90% of level of transparency and reliability in the environmental impact to this, Honda's organizational structure was established involved. The basic thinking is that all associates should be actively tackling all Honda vehicle assembly and product assembly plants worldwide data released by Honda, we have been obtaining third-party globally from its foundation in Japan, but regional roles and environmental issues as a part of their daily work. are certified. verification of our data from Bureau Veritas Japan Co., Ltd. (see responsibilities have been clarified, and we have now taken on a After acquiring certification at each of our five major production page G04). Since fiscal 2012, we also have been conducting a series truly globalized operational structure, with six organically linked The PDCA cycle facilities in Japan, we combined their certification for integrated of on-site sampling surveys at business sites in Japan and overseas, regional organizations. of eco-conservation activities P operation of their management systems. Going forward, we with consideration given to necessity and balance from a public The company president and CEO currently chairs the committee, A perspective. a reflection of Honda's recognition that environmental issues W orld Environment and Regional environmental Safety Divisions such as climate change issue, energy issue, and resource issue, Committee committees

are critical to Honda's business operations. Mid-term Detailed plans/ ■ Business sites covered by third-party verification environmental actions policies/plans D Honda Aoyama Building C Honda Wako Building Saitama Factory's Sayama Automobile Plant Suzuka Factory Power Train Unit Manufacturing Division, Honda R&D Co., Ltd., Automobile R&D Center (Wako) Honda of the UK Manufacturing, Power Train Parts Factory Honda R&D Co., Ltd., Automobile R&D Center (Tochigi) Limited Produciton Planning Division Honda R&D Co., Ltd., Motorcycle R&D Center Honda's organizational structure for environmental management

Region Honda of Regional Operations Regional Operations Regional Operations Regional Operations Regional Operations Regional Operations (China) America Mfg. Inc. World Environment (Japan) (North America) (South America) (Europe) (Asia & Oceania) and SafetyCommittee Japan North America South America European Asia & Oceania China Honda Auto Parts Manufacturing Environmental Committee Environmental Committee Environmental Committee Environmental Committee Environmental Committee Environmental Committee Co., Ltd. (CHAM) Honda Manufacturing Secretariat事務局 of Alabama, LLC Honda Automobile (Thailand) Co., Ltd. (HATC) Environment Business and Safety Planning Office Motorcycle Operations Automobile Operations Power Product Operations

Honda Automóveis Function do Brasil Ltda. (HAB)

Business Management Production Supervisory Unit Operations Business Support Operations IT Operations Purchasing Operations Customer Service Operations

Honda R&D Co., Ltd. Honda Honda Access Engineering Co., Ltd. Corporaiton

Third-party data verification by Bureau Veritas Japan Co., Ltd. 1. For information on safety initiatives, see the Honda CSR Report and Honda Driving Safety Promotion Activities.

G45 G46 （単位：TJ）（年度）2008 00,000

2009 20,700（単位：TJ）直接エネルギー（年度）2008 00,000 2010 20,900 消費量 2009 20,700 直接エネルギー 2011 19,400 2010 20,900 消費量 2012 00,000 2011 19,400

20082012 00,00000,000

2009 19,700 間接エネルギー 2008 00,000 2010 21,700 消費量 2009 19,700 間接エネルギー 2011 20,300 2010 21,700 消費量 2012 00,000 2011 20,300

0 5,000 10,000 15,000 20,000 25,000 2012 00,000

0 5,000 10,000 15,000 20,000 25,000

（年度）2008 000 （単位：万t-CO2換算） 2009 131

（年度）2008 000 （単位：万t-CO2換算）直接排出量 2010 133 2009 131 2011 124 直接排出量 2010 133 2012 000 2011 124

2012 000 2008 000

2009 277 2008 000 間接排出量 2010 300 2009 277 2011 296 間接排出量 2010 300 2012 000 2011 296

0 50 100 150 200 250 300 2012 000

0 50 100 150 200 250 300 （単位：千㎥）（年度）2008 00,000

2009 33,800（単位：千㎥）（年度）2008 00,000 2010 34,400 2009 33,800 2011 30,100 2010 34,400 2012 00,000 2011 30,100

2012 0 10,000 20,000 30,00000,000 40,000

0 10,000 20,000 30,000 40,000 （単位：千㎥）（年度）2008 000

2009 000 （単位：千㎥）（年度）2008 000 使用料 2010 000 2009 000 2011 000 使用料 2010 000 2012 000 2011 000

20082012 000 000

2009 000 Global 2008 000 排水量 2010 000 Global Environmental Management 2009 000 2011 000 排水量 2010 000 2012 000 2011 000

0 00 000 000 000 000 000 Disclosure of total GHG emissions 2012 000 0 00 000 000 000 000 000 （単位：t） ● Honda GHG emissions in FY2014 Honda continues to calculate and report its emissions, and is making ● Promoting（年度）2008 lifecycle assessment (LCA) 00,000 ● Reducing GHG emissions from use of sold products （単位：t） As a responsible company operating in the mobility industry, Honda improvements to get a more accurate assesment of emissions from We have been2009 developing our own methods to reduce38,000 the Scope 3, category 11 emissions (emissions from use of products 社外埋立量（年度）2008 00,000 2010 32,100 believes in the importance of calculating and disclosing greenhouse our entire value chain. We are doing this in scope 3 (other indirect environmental2009 impacts of our business activities and 38,000across sold to our customers), accounted for more than 80% of GHG 26,200 3 社外埋立量 2011 gas (GHG) emissions in order to drive progress in initiatives to reduce emissions), for example, by widening the boundaries of data collection product life 2010cycles, from production through disposal.32,100 emissions from Honda's entire value chain. This means the 2012 00,000 global emissions. for categories that account for the largest proportion of estimated In March 2002,2011 we built the Honda Life-Cycle26,200 Assessment (LCA) greatest challenge to reducing emissions from our value chain

0 10,000 20,000 30,000 40,000 As the first milestone in this endeavor, in August 2012 Honda emissions, and improving the accuracy of calculation methods. Data System,2012 a system for measuring CO2 emissions00,000 from all is finding ways to reduce emissions related to customer use of

became the world's first mobility company to disclose estimates The calculations for FY 2014 show that GHG emissions from Honda business（年度） activities,2008 and since then have been making0,000,000 focused Honda products. To this end, we've established the target of 0 10,000 20,000 30,000 40,000 of all GHG emissions from its entire value chain in conformity with business activities were 5.21 million t-CO2e, and total emissions from efforts to meet2009 reduction targets set for each 0,000,000domain— reducing global average product CO2 emissions 30% from 2000 （年度）2008 0,000,000 1 the Greenhouse Gas Protocol (GHG Protocol), currently the world's the value chain, including other indirect emissions, were 281.16 production,発生量 2010 purchasing, sales and service, administration,1,280,000 levels by 2020, and are working to improve the fuel efficiency of 2009 0,000,000 most widely used GHG emissions accounting standard. We released million t-CO2e. We hope to leverage these improvements in data transportation,2011 and so forth. 1,210,000 our products. 発生量 2010 1,280,000 estimates of FY 2012 emissions not only from our own business measurement and management to devise more effective emissions We are also2012 calculating and assessing CO2 emissions0,000,000 across For the foreseeable future, however, our production volume 2011 1,210,000 activities (scope 1 and 2), but also from all upstream and downstream reduction strategies. product life cycles—from raw material procurement to product is likely to outpace expected improvements in fuel efficiency, 2012 0 300,000 600,000 900,000 1,200,0000,000,0001,500,000 activities (scope 3), extending from the procurement of raw materials disposal—and making use of this information in our efforts to so even if we achieve this target, we still predict an increase in

0 300,000 600,000 900,000 1,200,000 1,500,000 to the transportation and customer use of Honda products, and reduce CO2 emissions for each model. This information is also scope 3, category 11 emissions. Nevertheless, it is essential for （単位：t） ending with the treatment of end-of-life products.2 important whenNOx considering applications 000for the many next- us to find ways to reverse this rising trend. We are certain that 1. Published by the World Business Council for Sustainable Development and the World Resources Institute generation technologiesSOx we are000 developing, so we are using（単位：t） to our ultimate aim is to reduce total emissions from our products, 2. Read more about Honda's GHG emissions disclosure efforts in Case 19 of "Environmental Documentary—Honda Face." (http://world.honda.com/ environment/face/) NOx 000 3. The scope of data collection was broadened in fiscal 2013, capturing additional greenhouse gas emission amounting to 7% of total emissions. We will consider ways to develop low-carbon0 solutions200 at the400 development600 800 stage. 1,000 even as production expands. SOx 000 further broaden this scope in fiscal 2014 and beyond.

0 200 400 600 800 1,000 ● Reducing total GHG emissions ● Honda's total greenhouse gas emissions FY2012 FY2013 FY2014 LCA results for Honda's ultimate aim is to achieve zero GHG emissions from major automobile models released in FY2014(Japan) its products and business activities. To achieve this, we have GHG emissions from the entire Honda value chain (scopes 1, 2, and 3) 225,060,000 t-CO2e 275,910,000 t-CO2e 281,160,000 t-CO2e ■ Raw materials ■ Production ■ Use ■ Sales/service ■ Disposal ■ Transportation adopted the Triple Zero concept, a vision of the future that sees （％） ■ Raw materials Baseline■ Production ■ Use ■ Sales/service ■ Disposal ■ Transportation us shrinking three types of environmental impact down to zero. 100 Break Direct emissions from business activities (scope 1) 1,240,000 t-CO2e 1,410,000 t-CO2e 1,410,000 t-CO2e 100 94 down （％） On the path to this future, we will aim to cut Honda's total GHG 80 Baseline 74 2 100 emissions in half by 2050. Indirect emissions from energy use (scope 2) 2,960,000 t-CO e 3,540,000 t-CO2e 3,800,000 t-CO2e 10060 94 8040 74 To realize this target, we have adopted our own Honda Emissions from Honda business activities (scope 1 and 2) 4,200,000 t-CO2e 4,950,000 t-CO2e 5,210,000 t-CO2e 20 60 Environmental Performance Standards (HEPS), and by applying 400 2000 年 Fit Accord Fit 100％ 20 （2013） Hybrid Hybrid them to Honda products we aim to reduce GHG emissions Emissions from customer use of sold products (scope 3, category 11) 195,880,000 t-CO2e 225,950,000 t-CO2e 228,140,000 t-CO2e 0 through improvements in fuel efficiency, the200 use0 年 of renewable Fit Accord Fit 100％（2013） Hybrid Hybrid Other emissions (scope 3, other categories) 24,980,000 t-CO2e 45,010,000 t-CO2e 47,810,000 t-CO2e LCA results for energy, and other approaches. major■ Raw motorcycle materials ■ Production models■ Use released■ Sales/service in FY2014■ Disposal (Japan)■ Transportation （％） t-CO2e Other indirect emissions (total of scope 3) 220,860,000 270,960,000 t-CO2e 275,950,000 t-CO2e Baseline 排出量

■ Raw materials 100 ■ Production ■ Use ■ Sales/service ■ Disposal ■ Transportation 2 100 91 （％） 80 Baseline CO 排出量

■ Total GHG emissions, FY2012 to 2014 ■ Breakdown of total FY2014 GHG emissions 100 2 10060 91 44

〈total greenhouse 38 Emissions from Honda operations: ConceptualCO projection Scope 1 0.5％ 8040 gas emissions〉 275,910,000 t-CO2e 281,160,000 t-CO2e Scope 2 1.4％ 6020 Scope 3, 44 〈Total GHG emissions〉 From growth to decline Scope 3, 400 38 CB NC750X PCX Dunk 225,060,000 t-CO2e other other categories 20 400SF 200,000,000 categories （2005） 17.0％ 0 t-CO2e CB NC750X PCX Dunk 400SF Scope 3, （2005） category 11 Scope 3, category 11 Continue reduction efforts to reach zero 81.1％ Scope 2 Scope 1 2011 2012 2013 2014 20XX FY2012 FY2013 FY2014

●Scope 1: Direct GHG emissions from business activities, as defined by the GHG Protocol (examples: combustion of fuel oil at a manufacturing plant, emissions from work vehicles and company cars). The scope 1 figures presented in this report include all GHGs emitted directly by Honda Motor Co. and its consolidated subsidiaries and affiliated companies worldwide. ●Scope 2: Indirect GHG emissions from a company's use of energy, as defined by the GHG Protocol (examples: electrical energy used by a manufacturing plant or office). The scope 2 figures presented in this report include all GHGs emitted directly by Honda Motor Co. and its consolidated subsidiaries and affiliated companies worldwide. ●Scope 3: Other indirect GHG emissions not included in scope 1 and scope 2, as defined by the GHG Protocol. Scope 3 is systematically broken down into 15 categories (examples: category 11 includes emissions arising from the use of sold products; category 12 includes emissions arising from the end-of-life treatment of sold products). ●The category 11 figures presented in this report represent the cumulative amount of greenhouse gases that will have been emitted by products sold by Honda in each fiscal year (automobiles, motorcycles, power products) as a result of their use by customers from the time they received those products until they dispose of them in the future. The "scope 3, other categories" figures presented in this report are the sum of emissions from categories 1, 2, 3, 4, 5, 6, 7, 9, 10, 12, and 15. As per the GHG Protocol, Honda excludes categories 8, 13, and 14 from its calculations, as these categories are either not part of Honda business activities or emissions from these categories are accounted for in other categories.

G47 G48 (FY) (TJ) 2010 20,700 2011 20,900 Direct energy (FY) (TJ) consumption 20122010 19,40020,700 (FY) (TJ) 20132011 20,90022,900 2010 20,700 Direct energy consumption 20142012 19,400 23,900 2011 20,900 Direct energy 2013 22,900 consumption 2012 19,400 2014 23,900 2013 22,900 2010 19,700 2014 23,900 2011 21,700 Indirect energy consumption 20122010 19,70020,300 20132011 21,70022,300 2010 19,700 Indirect energy 20142012 20,300 23,700 2011 21,700 consumption Indirect energy 2013 22,300 consumption 2012 20,300 0 5,000 10,000 15,000 20,000 25,000 2013 22,300 2014 23,700

2014 23,700 0 5,000 10,000 15,000 20,000 25,000

0 5,000 10,000 15,000 20,000 25,000 (FY) 1,310 2010 (1,000 t-CO2 equivalent) 2011 1,330 Direct (FY) 20122010 1,2401,310 emissions (1,000 t-CO2 equivalent) (FY) 20132011 1,3301,410 1,310 2010 (1,000 t-CO2 equivalent) Direct 20142012 1,2401,410 2011 1,330 emissions 2013 1,410 Direct 2012 1,240 emissions 1,410 2013 1,410 2014 2010 2,770 2014 1,410 2011 3,000 Indirect 2012 2,960 emissions 2010 2,770 20132011 3,000 3,540 2,770 2010 Indirect 20201214 2,960 3,800 2011 3,000 emissions Indirect 2013 3,540 2012 2,960 emissions 0 500 1,000 150 2,000 2,500 3,000 3,500 4,000 2013 3,540 2014 Global3,800

2014 3,800 Global Environmental Management 0 500 1,000 150 2,000 2,500 3,000 3,500 4,000 Global Environmental0 500 1,000 150 2,000 2,500 Impact3,000 3,500 4,000 （年度）（単位：千㎥） 2008 00,000 Honda is promoting its Green Factory initiative worldwide, with the goal of creating production facilities that are the pride of the （年度）2009 33,800（単位：千㎥） communities in which they operate. In our non-production activities as well, we are promoting2008 energy conservation and waste 00,000reduction ● The thinking behind scope 3, category 11 (emissions from product use) （年度）（単位：千㎥） 2010 34,400 initiatives on a2008 global basis. 00,000 2009 33,800 Scope 3, category 11 emissions, CO2 emissions from the use of products sold to our customers, accounted for more than 80% of 2011 30,100 2009 33,800 2010 34,400 emissions that took place across our value chain. The reason category 11 is so large is because it includes not only the CO2 that 2012 00,000 2010 34,400 Japan North America 2011 South America Europe Asia/Oceania 30,100 China Honda products sold in fiscal 2014 emitted in fiscal 2014, but also the 2CO those products will emit in the future. In other words, 0 10,000 20,000 30,000 40,000 2011 30,100 00,000 1 2012 when a customer in Japan purchases a Honda vehicle, we expect that customer to drive the vehicle 10,000 km a year for 15 years. ■ Energy consumption ■ Water use, wastewater volume 2012 00,000 Scope 3, category 11 is where we calculate all the CO2 that will be emitted during that time. 0 10,000 20,000 30,000 (1,00040,000 m3) (FY) (TJ) (FY) 33,800 （年度） Scope 3 includes future emissions because it is based on an accounting method that counts emissions not when they occur but 2010 0 10,000 20,000 30,000 20,70040,000 2010 2011 20,900 2011 34,4003 2009 when the business activities that will result in those emissions occur. The approximately 27 million automobiles, motorcycles, and Direct energy (FY) (1,000 m ) consumption 2012(FY) 19,400 (TJ) Water use 2012 30,10033,800 2010 3 2010 （年度） 2010(FY) 20,700 (1,000 m ) 使用量 power products that Honda sold to customers around the world in fiscal 2014 will continue emitting CO2 as they are used and until 2013 22,900 20132011 34,30034,400 20112009 20102011 20,90033,800 （年度） Direct energy 2014 23,900 Water use 20132012 30,10035,300 they are disposed of at some point in the future. Scope 3 says that these emissions are the result of Honda having sold its products 34,400 2009 2010 consumption 20112012 19,400 使用量 2012 2013 34,300 in fiscal 2014. Water use 20122013 22,90030,100 2010 2011 使用量 2013 35,300 201320142010 19,700 34,30023,900 20112011 23,200 20102012 7,700 20132011 21,70035,300 Wastewater 2012 20,900 Indirect energy 2012 排水量 2011 7,900 2012 20,300 volume 2013 21,100 consumption 2011 2010 7,700 2010 19,700 23,200 2012 8,000 2013 22,300 22,400 Wastewater 20142012 20,900 2011 21,700 7,700 排水量 2011 7,900 2011 23,200 volume 2010 Indirect energy 2014 23,700 2013 21,100 0 3,000 6,000 9,000 12,000 FY2014 consumptionWastewater 2012 20,30020,900 排水量 2011 0 5,000 10,000 7,90015,000 20,000 40,000 2012 8,000 volume 2014 22,400 April 1, 2013‒March 31, 2014 Greenhouse gas emissions occur in every stage of a product's life cycle, 2013 0 5,000 10,000 15,000 20,00021,10022,30025,000 Product life cycle Companies covered:2012 Nearly all consolidated subsidiaries and affiliated8,000 companies of the Honda Group 22,400 0 3,000 6,000 9,000 12,000 from the extraction of raw materials to the end-of-life treatment Companies covered: Nearly2014 all consolidated subsidiaries and affiliated companies of the Honda Group 23,700 ・Disclosure of wastewater volume0 begun5,000 in fiscal 2011.10,000 15,000 20,000 40,000 Scope 3, • Purchased electricity has been converted to joules using the international standard 3.6 GJ/MWh. category 1 (recycling, disposal) of the product. 0 3,000 6,000 9,000 12,000 • Calculations are based mainly0 on energy consumed5,000 by stationar10,000 y sources.15,000 20,000 40,00025,000 Raw material extraction Scope 3, category 11 (product use) emissions in ﬁscal 2014 are all • A terajoule (TJ) is a unit of energy, "tera" meaning 1012 Scope 3, category 4 GHG emissions that will result from the use of Honda products sold in (FY) Raw material transport Scope 1 1,310 (1,000 t) ﬁscal 2014 until their end-of-life treatment sometime in the future. 2010 (1,000 t-CO2 equivalent) (FY) and 2 ■ Greenhouse gas emissions ■ Waste generated, landfilled 2011 1,330 2010 38 Production Direct 2012(FY) 1,240 2011 32 Scope 3, Scope 3, category 11 (FY) (1,000 t) category 9 emissions 2010 1,310 Waste 2013 1,410 (1,000 t-CO2 equivalent) 2012 26 38 Sales landfilled 2010 2011(FY) 1,330 (1,000 t) 31 2014 1,410 2013 32 Direct 38 2011 Scope 3, 20122010 1,240 Waste Product used by customer (Japan: 10,000 km/yr × 15 years) category 12 emissions 20142012 26 33 20132011 1,410 32 landfilled 2013 31 End-of-life Waste 20142012 1,410 26 0 10 20 30 40 treatment landfilled 33 20132010 2,77031 2014 2011 3,000 33 2013 2014 2015 2016 Indirect 2014 2010 0 10 20 301,150 40 2012 2,960 emissions 2010 2,770 2011 1,280 2013 0 10 20 30 3,54040 Total 2011 3,000 waste 20122010 1,1501,210 Indirect 2014 3,800 2012 2,960 generated 2013 1,2801,370 emissions 2011 1. Annual distance traveled, product lifetime in years: Based on the WBCSD's SMP Model developed by the International Energy Agency 2010 1,150 Total 2013 0 500 1,000 150 2,000 2,500 3,000 3,5003,5404,000 20142012 1,210 1,410 2011 1,280 waste Total 2014 3,800 generated 2013 1,370 2012 1,210 waste 0 300 600 900 1,200 1,500 generated 2014 1,410 2013 0 500 1,000 150 2,000 2,500 3,000 3,500 1,3704,000 2014 1,410 Companies covered: Nearly all consolidated subsidiaries and affiliated companies of the Honda Group 0 300 600 900 1,200 1,500 • Greenhouse gas emissions were calculated while referring mainly to the WRI and WBCSD's （単位：千㎥） Economic benefits of environmental conservation activities 2004 "The Greenhouse（年度） Gas Protocol0 (Revised300 Edition)." 600 900 1,200 1,500 Companies covered: Nearly all consolidated subsidiaries and affiliated companies of the Honda Group • Calculations are based2008 mainly on emissions from stationary sources 00,000 • Landfilled amounts for waste outside Japan also include other waste treatment methods (t) • Figures for Japan SOxindicate amounts actually brought265 to landfills. 2009 33,800 2012 Honda strives to measure cost savings and revenue associated In fiscal 2014, we calculated these economic benefits by tallying （年度）（単位：千㎥） NOx 605 ■ Atmospheric20102008 pollutants 00,00034,400 (t) SOxSOx 233265 33,800 (t) 20132012 with its environmental conservation activities in order to revenue from the sale of valuable materials resulting from waste 20112009 30,100 NOx 572605 SOx 265 2012 34,400 and emissions processing, together with costs saved through NOx20122010 605 00,000 SOxSOx 233254 maximize their effects. 20142013 30,100 NOx 572622 SOx2011 233 energy conservation measures. 2013 0 10,000 20,000 30,000 40,000 NOx 572 SOx 0 200 254 400 600 800 1,000 Economic benefits 2012 00,000 2014 (yen) NOx 622 We not only disclose these data to external stakeholders SOx 254 2014 (1,000 m3) NOx(FY) 0 10,000 20,000 62230,000 40,000 0 200 400 600 800 1,000 FY2014 FY2013 as indicators of our corporate value, but also use them as 2010 33,800 （年度） ■ 原材料 ■ 製造 ■ 走行 ■ 販売・サービス ■ 廃棄 ■ 輸送 2011 0 200 400 600 800 1,00034,400 2009 Income from sale of valuable waste materials 3.8 bil 2.4 bil 3 （％） (1,000 m ) 117 a reference for making administrative decisions regarding CompaniesWater use covered:2012 Nearly(FY) all consolidated subsidiaries and affiliated companies of the Honda Group30,100 120 2010基準機種 •Calculations are based2010 on fuel consumption. 33,800 使用量（年度）■ 100原材料 ■ 製造 ■ 走行 ■ 販売・サービス ■ 廃棄 ■ 輸送 Installed technologies 0.1 bil 2013 34,300 100 0.2 bil （％） 2011 84 Cost reductions environmental innovation. Going forward, we will continue 2011 34,400 2009 75 ■2013原材料 ■ 製造 ■ 走行 ■ 販売・サービス ■ 廃棄 ■ 輸送 35,300 12080 基準機種 117 69 Water use 2012 from saved energy （％） 2012 30,100 60 2010100 Behavioral changes, etc. 0.05 bil 0.1 bil working to improve the accuracy of data collected from 117 使用量 100 ■ Environmental120 基準機種2013 data for manufacturing, by region34,300 (FY2014) 84 100 4080 2011 75 69 100 20132011 84 23,20035,300 20 2010 7,700 Total operations in Japan, while also verifying methods for collecting 60 2012 3.9 bil 2.7 bil 80 75 69 Wastewater 2012 Japan N. America20,900 S. America 排水量 Europe0 2011 Asia & Oceania China7,900 40 シビック ○○○○ ○○○○○○ ○○○○○ ○○○○○○ 2000 年 data from overseas business sites that are suitable for global volume60Purchased 2013electricity (1,000 MWh) 21,100 1,590 1,900 320 128（2006年） 1,170 ○○○○ 686 ○○○○ 100％ * Effect on revenue and expenses in Japan Energy 20 2012 7,7008,000 40Natural gas20142011 (1,000 GJ） 23,20022,400 2010 82 7,010 333 0 662 1,370 1,190 disclosure. Wastewater20 2012 20,900 シビック ○○○○○○ 2000 年 Liquefied petroleum gas (1,000 GJ) 813 120 301 排水量 20116 1,380○○○○ 7,900○○○○○67 ○○○○○○ volume （2006年）0 3,000 6,000○○○○ 9,000 12,000○○○○ 100％ 0 2013 0 5,000 10,000 15,000 20,00021,10040,000 Diesel シビック (1,000○○○○ GJ) ○○○○○○ ○○○○○7 ○○○○○○ 95 23 201220 717 8,00065 2000 年 Waste （2006年）2014 ○○○○ ○○○○ 22,400 100％ Landfilled Waste （t） 0 9,000 1,100 ■0原材料 ■ 製造 5,600■ 走行 ■ 販売・サービス 15,400 ■ 廃棄 ■ 輸送（％） 0 3,000 6,000 9,000 12,000 Volume recycled 0 5,000（t） 10,000445,00015,000 20,000406,000 40,000 60,000 40,000 195,000 118,000 120 基準機種 Water use 排出量 (1,000㎥) Municipal Water 100 2 3,740 3,140 220 100 600■ 原材料 ■ 製造 5,830■ 走行 ■ 販売・サービス 4,450 ■ 廃棄 ■ 輸送（％） Groundwater (1,000㎥) 4,280 2,350 1,480 10 3,42076 0 CO ■ 原材料 ■ 製造 ■ 走行 ■ 販売・サービス ■ 廃棄 ■ 輸送 12080 基準機種 (1,000㎥) 排出量（％）Rainwater 50 10 0 0100 40 0 2 (FY) (1,000 t) 10060 120 基準機種 36 36 排出量 2010 38 40 76 CO 100 80 * LNG is not included.2 28 100 2011 32 20 76 60 CO 80 * WasteThe data of companies(FY) added to Honda's consolidation during26 the reporting(1,000 year t) and companies that have been excluded from the consolidation36 due36 to a merger, liquidation, or 2012 400 landfilled60 38 CB ○○○○ ○○○○○ ○○○○○ ○○○○○○28 other change, are20132010 not included. 31 400SF ○○○○ 36 36 20 * Totals40 with more than three digits have been rounded to three significant32 digits. （2005年） G49 2011 28 33 G50 Waste 2014 0 20 2012 26 CB ○○○○ ○○○○○ ○○○○○ ○○○○○○ landfilled 400SF ○○○○ 31 0 2013 0 10 20 30 40 （2005年） CB ○○○○ ○○○○○ ○○○○○ ○○○○○○ 400SF2014 ○○○○ 33 （2005年） 2010 1,150 0 10 20 30 40 2011 1,280 Total waste 2012 1,210 2010 1,150 generated 2013 1,370 2011 1,280 Total 2014 1,410 waste 2012 1,210 generated 2013 0 300 600 900 1,200 1,3701,500 2014 1,410

0 300 600 900 1,200 1,500

(t) SOx 265 2012 NOx 605 (t) SOx 233 2013 SOx 265 2012 NOx 572 NOx 605 SOx 254 2014 SOx 233 2013 NOx 622 NOx 572

0 200 400 600 800 1,000 SOx 254 2014 NOx 622

0 200 400 600 800 1,000 ■ 原材料 ■ 製造 ■ 走行 ■ 販売・サービス ■ 廃棄 ■ 輸送（％） 120 基準機種 117 100 100 ■ 原材料 ■ 製造 ■ 走行 ■ 販売・サービス 84 ■ 廃棄 ■ 輸送（％）80 75 69 120 基準機種 117 60 100 100 40 84 80 75 20 69 60 0 2000 年 40 シビック ○○○○ ○○○○○○ ○○○○○ ○○○○○○ （2006年） ○○○○ ○○○○ 100％ 20 0 シビック ○○○○ ○○○○○○ ○○○○○ ○○○○○○ 2000 年（2006年） ○○○○ ○○○○ 100％

■ 原材料 ■ 製造 ■ 走行 ■ 販売・サービス ■ 廃棄 ■ 輸送（％） 120 基準機種排出量

100 2 100 ■ 原材料 ■ 製造 ■ 走行 ■ 販売・サービス ■ 廃棄 ■ 輸送

76 CO （％）80 120 基準機種 60 排出量

100 2 100 36 36 40 28 76 CO 80 20 60 0 36 36 40 CB ○○○○ ○○○○○ ○○○○○ ○○○○○○ 400SF ○○○○28 20 （2005年） 0 CB ○○○○ ○○○○○ ○○○○○ ○○○○○○ 400SF ○○○○ （2005年） Global

South America Environmental Impact Europe

South America Global Unit Honda joins HyFive project to develop hydrogen cars 2009 521 20,700 In April 2014, Honda and other leading motor manufacturers, hydrogen fuel suppliers and energy consultancies from Direct energy 2010 502 20,900 2011 513 19,400 around the globe signed a €38.4 million agreement coordinated by the Mayor of London’s consumption 2012 715 22,900 Energy 2013 745 23,900 1 TJ Office, to develop and demonstrate technology and infrastructure that will help fuel cell electric vehicles (FCEVs) to consumption 2009 977 19,700 Indirect energy 2010 1,193 21,700 become a viable and environmentally responsible option for European motorists in the future. 2011 1,219 20,300 consumption 2012 1,180 22,300 The pioneering deal, known as the HyFive project (Hydrogen For Innovative Vehicles), is the largest of its kind in 2013 1,173 23,700 2009 33 1,310 Europe. Honda is one of five manufacturers who have agreed to deploy a total of 110 hydrogen fuel cell vehicles at Direct 2010 31 1,330 2011 33 1,240 several European locations and develop new clusters of hydrogen refueling stations. emissions 2012 43 1,410 Greenhouse 2013 43 1,410 1,000 tCO 2 The potential for FCEVs to become widely available is now seen as increasingly likely as the cost of the technology is Staff from the companies joining the HyFive project 2 gas emissions equivalent 2009 21 2,770 reduced and refueling infrastructure is improved. Honda's next generation FCEV will be launched in Europe in early Indirect 2010 30 3,000 2011 14 2,960 emissions 2012 107 3,540 2016. 2013 109 3,800 2009 1,632 33,800 2010 1,774 34,400 Water use 2011 2,078 30,100 2012 1,961 34,300 Honda signs agreement for recycling of batteries from hybrid vehicles in Europe Water use, 3 2013 1,721 35,300 1,000m3 In September 2013, Honda Motor Europe Ltd., a Honda subsidiary that manages the import and sales, production and wastewater volume 2010 1,250 23,200 Wastewater 2011 1,459 20,900 logistics of Honda products in Europe, formalized the long-term partnership with SNAM (Société Nouvelle d'Affinage des volume 2012 1,014 21,100 2013 973 22,400 Métaux), based in France, which will be responsible for the European-wide collection and recycling of Honda's hybrid 2009 3 38 Waste 2010 1 32 vehicle batteries (high voltage Nickel Metal Hydride (NiMH)and Lithium Ion (Li-Ion) industrial batteries). 2011 2 26 landﬁlled 2012 2 31 The two companies have worked together to establish a European system to ensure the traceability of end-of-life batteries 4 Waste generated, 2013 1 33 1,000t landﬁlled 2009 62 1,150 from the moment they are collected from Honda dealers and end-of-life vehicle centers through to the recycling of the Total waste 2010 77 1,280 2011 72 1,210 batteries. Every battery collected at the end of its life will be processed at SNAM's facilities. Each collection point within the generated 2012 81 1,370 2013 79 1,410 Honda network will work closely with SNAM to manage the treatment of NiMH and Li-Ion batteries in accordance with Partnership with SNAM in recycling of Honda's European environmental standards EU Battery Directive 2006/66/EC. hybrid vehicle batteries

Regional Environmental Topics

North America Asia & Oceania HMSI installs rain water harvesting system "Green Dealer" program continues to contribute to GHG reduction Honda Motorcycle & Scooter India Pvt. Ltd. (HMSI) installed a highly efficient rainwater American Honda's "green dealer" program helps encourage independently owned and operated Honda and Acura automobile harvesting and groundwater recharging system at its new plant, launched in May 2013. dealers in the U.S. quantifiably to reduce their environmental impact. As one of Honda’s Green Factory initiatives, the new system collects rainwater from The program gives Honda Environmental Leadership and Acura Environmental Leadership Awards to dealers who have significantly rooftop of the building and stores it in an underground tank to be utilized as industrial reduced their impact on the environment. The awards are based on a rigorous points system that incorporates relevant environmental water after quality control. Excessive ground water consumption caused by rapid improvement measures, as well as a demonstrated reduction in energy consumption. industrial growth is one of the serious environmental issues in India. The rainwater In fiscal 2014, dealer enrollments increased nearly 600%, from 40 dealers to 238, while the number of award recipients increased harvesting system is expected to reduce groundwater use by 20,000 tons per year. from 19 to 29. In addition, Rossi Honda of Vineland, New Jersey, became the first dealer to achieve Electric Grid Neutral status. Rossi Rain-water harvesting system reduces groundwater use by 20,000 tons per year combined a 223 kW solar PV system with the addition of LED lamps on its parking lot light poles and the system now generates more Rossi Honda's solar PV system than 100% of the dealership's annual electricity from solar power. Honda Malaysia switches to railway to transport parts between Thailand and Malaysia In December 2013, Honda Malaysia Sdn. Bhd. switched to using a rail-based transport system for delivery of parts between Thailand (using Thailand National Railways (SRT)) and Malaysia (using Keretapi Wind turbines begin providing renewable energy at Honda transmission plant in Ohio Tanah Melayu (KTM)). In January 2014, Honda Transmission Manufacturing of America Inc., a Honda subsidiary that Anticipating that its production volume will double by 2016, the company made research and trials to produces automobile transmissions, began operations of two 1.7 MW wind turbines on its reform its transportation system and found that changing the mode of transportation from trucks and property in Ohio. The wind turbines are operational year-round and, on average, provide ships to rail has numerous benefits. The use of rail is expected to reduce CO2 emissions by up to 60% approximately 10 percent of the plant’s electrical needs. and logistic costs by 50% within two years, as well as shorten delivery time to 2.5 days, compared to 3 Based on average electrical consumption in Ohio, these wind turbines could supply electricity days for goods transported by trucks and 7 days for goods transported by ship. to approximately 1,052 homes.1 Modal shift to railway reduce CO2 emissions and delivery time The installation and operation of the turbines makes Honda the first automaker in North America to get a substantial amount of energy for one of its plants from wind turbines located on its own property.

1. per Public Utility Commission of Ohio data – average home in Ohio consumes 9600 kWh/year Two 1.7 MW wind turbines provide about 10% of the plant’s electrical needs

G51 G52 Global

Regional Environmental Topics GRI Guideline Index The table below indicates the pages in the Honda Environment Annual Report that correspond to the General Standard Disclosures and the Specific Standard Disclosures (Category: Environmental) in the Sustainability Reporting Guidelines issued by the Global Reporting Initiative (GRI). China Profile Page

Provide a statement from the most senior decisionmaker of the organization (such as CEO, chair, or equivalent senior position) about the relevance Strategy and 1 G06-14 FUNTEC unveiled at tech strategy press conference of sustainability to the organization and its strategy for addressing sustainability. Analysis In June 2013, Honda Motor (China) Investment Co., Ltd., Guangqi Honda Automobile Co., Ltd., and 2 Provide a description of key impacts, risks, and opportunities. G20-21 3 Report the name of the organization. G03 Dongfeng Honda Automobile Co., Ltd., jointly held a press conference in Beijing to announce their Organizational 4 Report the primary brands, products, and services. G03 Profile future technology strategy for the region. One key announcement was the introduction of FUNTEC, 5 Report the location of the organization's headquarters. G03 new technologies delivering advanced environmental, safety, and comfort performance. Report the number of countries where the organization operates, and names of countries where either the organization has significant operations or 6 that are specifically relevant to the sustainability topics covered in the report. G02 Going forward, we will use the distinctive FUNTEC label to distinguish these technologies and 7 Report the nature of ownership and legal form. G03 succinctly convey to Chinese customers our intentions in developing them: to provide fun, 8 Report the markets served. G02 9 Report the scale of the organization. G02-03 satisfaction, and convenience to all who use Honda products. Associated companies unveil FUNTEC in Beijing press conference a. Report the total number of employees by employment contract and gender. b. Report the total number of permanent employees by employment type and gender. c. Report the total workforce by employees and supervised workers and by gender. 10 d. Report the total workforce by region and gender. □ e. Report whether a substantial portion of the organization's work is performed by workers who are legally recognized as self-employed, or by individuals other than employees or supervised workers, including employees and supervised employees of contractors. Guangqi Honda begins construction of new eco-conscious production facilities f. Report any significant variations in employment numbers (such as seasonal variations in employment in the tourism or agricultural industries). 11 Report the percentage of total employees covered by collective bargaining agreements. □ Guangqi Honda Automobile Co., Ltd., an automobile production and sales joint venture in China, began 12 Describe the organization's supply chain. G47 construction in May 2013 on a third automobile assembly line and new engine plant at its Zengcheng 13 Report any significant changes during the reporting period regarding the organization's size, structure, ownership or its supply chain. G45 Plant. 14 Report whether and how the precautionary approach or principle is addressed by the organization. G19,G21,G45

1 List externally developed economic, environmental and social charters, principles, or other initiatives to which the organization subscribes or The new assembly line will be powered by a 10-MW solar array, the largest among automakers in China , 15 which it endorces. G05,G28,G30,G32-33 and will employ new technologies for painting and stamping processes, including a short-process, high- List memberships of associations (such as industry association) and national or international advocacy organizations in which the organization 16 holds a position on the governance body. G05 performance painting system and high-efficiency laser welder. The innovative, high-efficiency production a. List all entities included in the organization's consolidated financial statements or equivalent documents. Identified 17 b. Report whether any entity included in the organization's consolidated financial statements or equivalent documents is not covered by the report. □ line, scheduled for operational launch in 2015, also draws on new environmental technologies from the Material Aspects a. Explain the process for defining the report content and the Aspect Boundaries. 18 b. Explain how the organization has implemented the Reporting Principles for Defining Report Content. G20-21 Yorii Automobile Plant in Japan. It will start with an initial annual production capacity of 120,000 units, with and Boundaries 19 List all the material Aspects identified in the process for defining report content. G54-55 the ability to scale up to 240,000 units in the future. 20 For each material Aspect, report the Aspect Boundary within the organization. G01 Guangqi Honda's production capacity will grow 21 For each material Aspect, report the Aspect Boundary outside the organization. G01 from 480,000 to 600,000 units in 2015 1. Honda internal research 22 Report the effect of any restatements of information provided in previous reports, and the reasons for such restatements. G01,G50 23 Report significant changes from previous reporting periods in the Scope and Aspect Boundaries. G01 Stakeholder 24 Provide a list of stakeholder groups engaged by the organization. G18 engagement 25 Report the basis for identification and selection of stakeholders with whom to engage. G20-21 26 Report the organization's approach to stakeholder engagement, including frequency of engagement by type and by stakeholder group. G20-21

Japan Report key topics and concerns that have been raised through stakeholder engagement, and how the organization has responded to those key 27 topics and concerns, including through its reporting. G20-21 Honda Green Conference honors three years of environmental progress Report Profile 28 Reporting period for information provided. G01 The triennial Honda Green Conference was held in fiscal 2014, gathering associates from 29 Date of most recent previous report (if any). G01 across Honda to share and promote the most successful environmental projects in each 30 Reporting cycle. G01 31 Provide the contact point for questions regarding the report or its contents. G56 operational domain. Eight teams selected from seven annual domain conferences presented a. Report the 'in accordance' option the organization has chosen. their achievements, which ranged from the design and construction of a major facility, to smart b. Report the GRI Content Index for the chosen option. G54-55 32 c. Report the reference to the external Assurance Report if the report has been externally assured. (Comprehensive) GRI Content Index for 'in accordance' - Core behavioral changes that yielded significant improvements without costing a single yen. The GRI Content Index for 'in accordance' - Comprehensive Best Presentation Award, chosen by the audience, went to Hamamatsu Factory for its adoption a. Report the organization's policy and current practice with regard to seeking external assurance for the report. b. If not included in the assurance report accompanying the sustainability report, report the scope and basis of any external assurance provided. 2 G04 of a new gear cutting method . 33 c. Report the relationship between the organization and the assurance providers. d. Report whether the highest governance body or senior executives are involved in seeking assurance for the organization's sustainability report. Awards were handed out after a summary Governance Report the governance structure of the organization, including committees of the highest governance body. Identify any committees responsible 2. Learn more in "Environmental Documentary—Honda Face." (http://world.honda.com/environment/face/2012/) evaluation by President Ito 34 for decision-making on economic, environmental and social impacts. G45

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

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

Yorii Automobile Plant wins ministerial award for global warming reduction Report processes for consultation between stakeholders and the highest governance body on economic, environmental and social topics. If consultation is 37 G45 delegated, describe to whom and any feedback processes to the highest governance body. The Yorii Automobile Plant, a new facility at Saitama Factory that began operations in July 2013, is one Report the composition of the highest governance body and its committees by: ・Executive or non-executive of the most energy-efficient plants in the world, using its cutting-edge production and environmental ・Independence ・Tenure on the governance body technologies to achieve a 30% reduction in per-unit energy use compared to other Honda plants. The 38 ・Number of each individual's other significant positions and commitments, and the nature of the commitments □ ・Gender project was applauded for its pioneering use of numerous technologies and products that help curb ・Membership of under-represented social groups ・Competences relating to economic, environmental and social impacts greenhouse gas emissions, earning the 2013 Environment Minister's Award for Global Warming Prevention ・Stakeholder representation Activity in the "countermeasure technology introduction and dissemination" award category. Environment 39 Report whether the Chair of the highest governance body is also an executive officer. G06-G14 Report the nomination and selection processes for the highest governance body and its committees, and the criteria used for nominating and □ Minister Nobuteru Ishihara presented the award certificate and trophy to Jun Nishimoto, General Manager 40 selecting highest governance body members. Report processes for the highest governance body to ensure conflicts of interest are avoided and managed. Report whether conflicts of interest of Saitama Factory for Automobile Production Department, Automobile Operations, at a ceremony on □ 41 are disclosed to stakeholders.

December 4, 2013. General Manager Jun Nishimoto (holding the Report the highest governance body's and senior executives' roles in the development, approval, and updating of the organization's purpose, 42 G45 award certificate) alongside Environment Minister value or mission statements, strategies, policies, and goals related to economic, environmental and social impacts. Nobuteru Ishihara Report the measures taken to develop and enhance the highest governance body's collective knowledge of economic, environmental and social 43 topics. G08-G14

Page numbers that begin with G indicate pages in the Global report. Page numbers that begin with J indicate pages in the Japan report. □： Indicators related to non-environmental categories G53 For further information on EN-Web, see the Honda Worldwide website's environmental section. http://world.honda.com/environment/ G54 GRI Guideline Index

Governance a. Report the processes for evaluation of the highest governance body's performance with respect to governance of economic, environmental and social topics. Report whether such evaluation is independent or not, and its frequency. Report whether such evaluation is 44 ａ self-assessment. □ b. Report actions taken in response to evaluation of the highest governance body's performance with respect to governance of economic, environmental and social topics, including, as ａ minimum, changes in membership and organizational practice. a. Report the highest governance body's role in the identification and management of economic, environmental and social impacts, risks, and opportunities. lnclude the highest governance body's role in the implementation of due diligence processes 45 b. Report whether stakeholder consultation is used to support the highest governance body's identification and management of G20-21 economic, environmental and social impacts, risks, and opportunities. Report the highest governance body's role in reviewing the effectiveness of the organization's risk management processes for economic, environmental G21,G45 46 and social topics. 47 Report the frequency of the highest governance body's review of economic, environmental and social impacts, risks, and opportunities. G21,G45

48 Report the highest committee or position that formally reviews and approves the organization's sustainability report and ensures that all material Aspects are covered. G45 49 Report the process for communicating critical concerns to the highest governance body. G45 Honda Report the nature and total number of critical concerns that were communicated to the highest governance body and the mechanism(s) 50 used to address and resolve them. G20-21,G45 51 Report the remuneration policies for the highest governance body and senior executives for the below types of remuneration. □ Report the process for determining remuneration. Report whether remuneration consultants are involved in determining remuneration 52 and whether they are independent of management. Report any other relationships which the remuneration consultants have with the □ organization. Report how stakeholders' views are sought and taken into account regarding remuneration, including the results of votes on remuneration 53 policies and proposals, if applicable. □ Report the ratio of the annual total compensation for the organization's highest-paid individual iｎ each country of significant operations to the 54 median annual total compensation for all employees (excluding the highest-paid individual) in the same country. □ Report the ratio of percentage increase in annual total compensation for the organization's highest-paid individual in each country of South America 55 significant operations to the median percentage increase in annual total compensation for all employees (excluding the highest-paid □ South America is known for its great biodiversity, with a wealth of rivers, fauna and flora. After all, it has the largest forest individual) in the same country. in the planet, with hundreds of unique species, besides having the largest river basin in the world. In order to preserve that Describe the organization's values, principles, standards and norms of behavior such as codes of conduct and codes of ethics. G18-19,G26 Ethics and 56 scenario, Honda is committed with environmental preservation in the venues where it operates, by promoting many actions Integrity Report the internal and external mechanisms for seeking advice on ethical and lawful behavior, and matters related to organizational 57 integrity, such as helplines or advice lines. □ and activities at the company’s units spread all over the South American continent. Report the internal and external mechanisms for reporting concerns about unethical or unlawful behavior, and matters related to 58 organizational integrity, such as escalation through line management, whistleblowing mechanisms or hotlines. □

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

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

Materials EN-1 Materials used by weight or volume. (J36) EN-2 Percentage of materials used that are recycled input materials. ー Not disclosed Energy EN-3 Energy consumption within the organization. G50 EN-4 Energy consumption ouside of the organization. G50

EN-5 Energy intensity. ー Disclosed as CO2 equivalent EN-6 Reduction of energy consumption. G50 EN-7 Reduction in energy requirements of products and services. G27,G31 57 Honda South America Water EN-8 Total water withdrawal by source. G50 ASING RCH PRO 58 Message from the President of Honda South America EN-9 Water sources significantly affected by withdrawal of water. EN-Web PU DU CT IO EN-10 Percentage and total volume of water recycled and reused. (J39) N 59 Eight Business Activities of Honda South America T T N Biodiversity Operational sites owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value C E EN-11 G16 U M outside protected areas. D A P D 61 1. Product development O O M R L I P E N Description of significant impacts of activities, products, and services on biodiversity in protected areas and areas V I S EN-12 G16 E T of high biodiversity value outside protected areas. 64 2. Purchases | Green Purchasing D R

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

N 65 3. Production | Green Factory

Total number of IUCN Red List species and national conservation list species with habitats in areas affected by Y

G EN-14 N

operations, by level of extinction risk. G16

T 82 4. Transportation | Green Logistic

Direct greenhouse gas (GHG) emissions. (Scope 1) N

Emissions EN-15 G50 N H

S R

C P

E 5. Sales and services | Green Dealer O 86

Energy indirect greenhouse gas (GHG) emissions. (Scope 2) T EN-16 G50 R

I T

EN-17 Other indirect greenhouse gas (GHG) emissions. (Scope 3) G47 O N 87 6. Product Recycling

Greenhouse gas (GHG) emissions intensity. I

EN-18 L

G27,G29 S

Y T

I 88 7. Administration | Green Office C

Reduction of greenhouse gas (GHG) emissions. L EN-19 O

G51-53 E

R S

EN-20 Emissions of ozone-depleting substances. (ODS) ー Not disclosed D 90 8. Information Technology | Green IT EN-21 NOx, SOx, and other significant air emissions. G50 91 Environmental awareness-building actions Effluents and EN-22 Total water discharge by quality and destination. G50 Wastes EN-23 Total weight of waste by type and disposal method. G50 97 Acknowledgements EN-24 Total number and volume of significant spills. (J21-22) Weight of transported, imported, exported, or treated waste deemed hazardous under the terms of the Basel No waste transported EN-25 Convention Annex I, II, III, and VIII, and percentage of transported waste shipped internationally. ー

Identity, size, protected status, and biodiversity value of water bodies and related habitats significantly affected EN-26 by the reporting organization's discharges of water and runoff. EN-Web Products and EN-27 Extent of impact mitigation of environmental impacts of products and services. G19-25,G27-40 Services EN-28 Percentage of products sold and their packaging materials that are reclaimed by category. (J43,J51) Monetary value of significant fines and total number of non-monetary sanctions for noncompliance with (J21-22,J24) Compliance EN-29 environmental laws and regulations.

Significant environmental impacts of transporting products and other goods and materials used for the organization's Transport EN-30 operations, and transporting members of the workforce. G29,G47-48 Overall EN-31 Total environmental protection expenditures and investments by type. (J24)

Supplier Environmental EN-32 Percentage of new suppliers that were screened using environmental criteria. (J32-33) Assessment EN-33 Significant actual and potential negative environmental impacts in the supply chain and ations taken. (J32-33)

Environmental Grievance Number of grievances about environmental impacts filed, addressed, and resolved through formal grievance EN-34 Mechanisms mechanisms. (J21-22)

Page numbers that begin with G indicate pages in the Global report. Page numbers that begin with J indicate pages in the Japan report. □： Indicators related to non-environmental categories G55 For further information on EN-Web, see the Honda Worldwide website’s environmental section. http://world.honda.com/environment/ HSA Honda South America

Honda in South America

Honda South America Ltda. is the holding responsible for the company’s operations in South America, with activities in Brazil, Chile, Argentina, Colombia and Peru. With administrative headquarters in Sao Paulo (SP), the company is composed of Colombia companies that manufacture motorcycles, automobiles and power products, and currently it has around 16 thousand Fanalca S.A. employees. Its activities also include ownership interests • Motorcycle production. in companies manufacturing components for its • Importation and sales of products and financial service companies. automobiles.

Message from the President Peru of Honda South America

Honda del Peru S.A. • Production of tricycles. • Importation and sales of This is the third edition of the Honda South America resume running when the accelerator is actuated. This motorcycles, automobiles, Environmental Report, with the goal to share the best unprecedented technology in Brazil, allows a large reduction power products and parts. practices performed over the years with our stakeholders, in fuel consumption and emission of pollutants. with a focus on environmental preservation, with emphasis In the Power Products segment, one of the pillars of Honda Selva del Peru S.A. on the initiatives implemented in 2013. • Production of motorcycles Honda’s business performance in Brazil, during Salão Duas and tricycles. Honda wishes to become a company desired by society and Rodas 2013 in São Paulo the company launched the new to that end considers it a priority to drastically minimize their EG1000 generator with 4-stroke engine that warrants low environmental impact in all areas in which it operates. The fuel consumption, easy maintenance and lower emissions.

company believes that the reduction of CO2 emissions from However, reducing our products’ emissions is not the only its products is one of our biggest challenges; thus it has set Brazil measure we are taking to protect the environment. We also bold targets to minimize these emissions by 30% by 2020, in seek to reduce impacts in all our business activities. To Honda South America Ltda. relation to the levels in 2000. • Headquarters. that end, we are investing over R$ 100 million in renewable Chile In Brazil, our largest market in South America, in 2013, when energy generation through the construction of a Wind Farm Honda Automóveis do Brasil Ltda. the automobile sector in general had poor performance, in southern Brazil. This facility will provide 100% of the • Production and sales of automobiles and parts. Honda Motor de Chile Honda increased its sales volume by 3% over the previous electricity consumed by the car plant in Sumaré – SP and year. In terms of technologies related to environmental will promote a reduction of over 2,200 tons of CO2 annually. S.A. Moto Honda da Amazônia Ltda. preservation, Civic 2014 was released in February, and the • Importation and sales of • Production and sales of motorcycles, power In conclusion, as we wish to demonstrate in this Report, motorcycles, automobiles CR-V 2013 in May, with Honda Flex One technology, which products and quadricycles. Honda continues seeking to overcome environmental and power products. represents Honda’s commitment to innovation in mobility. challenges and is committed to constantly creating new The New Honda Accord, brought to Brazil in July and Honda Componentes da Amazônia Ltda. values to serve and satisfy customers. • Production of components for motorcycles. imported from the United States, relies on Earth Dreams technology, combining a high-efficiency engine with low fuel Enjoy your reading! HTA Indústria e Comércio Ltda. consumption and emissions. • Tool production. In the motorcycle market, where the company holds 80% Honda Serviços Ltda. stake in the Brazilian market, 100% of our products meet Argentina Banco Honda S.A. the Promot standard requirements for greenhouse gas Issao Mizoguchi Administração Consórcio Nacional Honda Ltda. emissions for motorcycles, the most stringent regulation Honda Motor de Argentina S.A. Honda Leasing S.A. Arrendamento Mercantil in the world. In May 2013 we launched the scooter PCX President • Production of motorcycles and automobiles. Corretora de Seguros Honda Ltda. 2014, featuring the “Idling Stop” system that allows the Honda South America Ltda. • Importation and sales of motorcycles, • Financial services. automobiles and power products. engine to switch off after three seconds in idling stop and Honda Energy do Brasil Ltda. • Self-production of sustainable energy.

57 58 HSA Eight Business Activities of Honda South America

ASING RCH PRO PU DU CT IO N 8 - Information Technology T T N C E U M D A P D O O M R L I P E N

V I S E T

D R

O N The area responsible for information technology combines the

Y Eight Business Activities

G N

L T

M N

R latest technology and environmental preservation. Some of C P

E O

T R

I T

G the measures taken in this direction are the optimization and

S 7 - Administration

Y T

E of Honda South America I

R S

O E

R S

D transformation of servers, creation of central printing, among others. Refer to page 90. Honda´s offices promote the Honda aims to provide good products to its customers with speed, affordability and low atmospheric optimization of energy and water emission, but reducing the overall emissions from Honda’s products is not the only measure that consumption and other resources has been taken to protect the environment. The philosophy of the company is to reduce the impacts during its administrative activities. generated throughout the lifecycle of its products in general. In order to make that possible, the activities The company’s expectation is that were divided into eight areas, denominated business areas. Honda has more clearly identified the these efforts have a positive impact impact generated by each sector as well as their responsibilities to minimize those impacts. Learn more on the environment, encouraging our about these areas: customers, suppliers and business partners to act accordingly. Refer to page 88. 1 – Product Development

Honda has been developing and implementing many different environmental and energy technologies in order to share the joy of mobility with people from all over the world. These efforts aim at improving engine performance, reducing atmospheric emissions and developing products that use alternative sources of energy. Refer to page 61.

2 – Purchases

Partnerships with suppliers are fundamental for Honda, therefore a series of projects and activities are jointly undertaken in order to optimize electric power and resources consumption, in addition to reducing 6 - Product Recycling the volume of atmospheric emissions. Refer to page 64. Following the company’s environmental preservation principles, Honda stimulates the recycling of parts, tires, components 3 – Production and other materials generated in the post- sales services. Refer to page 87. The manufacturing of Honda products involves many stages and methodologies, with a focus on excellence in production, and on environmental preservation. The Green Factory concept, implemented in the plants, aims at reducing emissions, 5 – Sales and Services managing waste, at the rational use of water, and energy efficiency in the production To proactively promote environmental preservation in the processes. Refer to page 65. sales and services processes, Honda provides dealers with constant support for the execution of the Green Dealer initiatives. By adopting solid measures to meet current 4 – Transportation needs, our goal is to enhance the resales that demonstrate environmental leadership, aggregating additional value to Honda’s logistic system gathers development, innovation and the customers and communities served by them. Refer to sustainability, both in the transportation of automobiles and motorcycles page 86. to dealers and in the transportation of parts from suppliers to the plants. The actions aim at reducing the volume of packaging and to decrease CO2 emissions during transportation. Refer to page 82.

59 60 HSA Product Development

Idling Stop System

In 2013, Honda launched the Idling Stop system in our PCX 2014 more than three seconds. As soon as the accelerator is actuated, 1 – Product Development scooter, unprecedented in Brazil. This device allows turning off the engine resumes working regularly. the engine during idling stop when the motorcycle is stopped for This technology contributes to environmental preservation by reducing fuel consumption and hence emission of pollutants.

For Honda, quality and environmental preservation are indispensable items at any stage of the lifecycle of its products. That includes the creation, manufacturing and utilization of its automobiles, motorcycles and power products, and thus Honda is constantly looking for new solutions to reduce CO2 emissions from the use of its products. ECON Function The company is engaged with the development of new environmental technologies that satisfy the increasing global demand for eco- friendly automobiles and motorcycles, and that enable the utilization of cleaner and renewable energies, providing the unique joy of Honda vehicles also portray the brand’s commitment to to the situation. When the ECON function is on, 70% of driving a Honda product. the environment. Civic, CR-V and Accord models feature the the air comes from recirculation in order to reduce the In addition to personal mobility products, Honda also develops generators, lawn mowers, motor pumps, stationary engines, outboard ECON button, which activates and deactivates the economic system’s load. The ECON function also reduces fan speed, engines and shearers, which contribute to people’s quality of life. Honda is the largest engine manufacturer in the world, and is recognized driving assistance function. When the button is pushed, an decreasing the electric demand, and it also interferes with as a pioneering company in the manufacturing of products with four-stroke technology. In addition to being more powerful, those machines “ECON ON” message is shown on the i-MID panel, and many the autopilot functioning, by limiting the acceleration to are less polluting than the traditional two-stroke engines, since they do not burn oil, just gasoline. systems in the vehicle, such as the electronic injection reach the programmed speed in case of speed resumption. Based on those principles, Honda has been developing and implementing many different environmental and energy technologies in order control – ETCS (Electronic Throttle Control System) –, air Thus, the vehicle reaches the desired speed smoothly. This to contribute to the quality of life of future generations. conditioning and autopilot, have their functioning changed limitation in acceleration aims at saving fuel and can cause to prioritize low fuel consumption, without any power speed variations while driving uphill. To help drivers save loss. For those who appreciate a more sportive driving, all fuel during driving, an instant fuel consumption meter they need to do is deactivate the function. When the driver has been added to the right of the speedometer, and to demands maximum performance through the accelerator visualize consumption efficiency, sidebars were designed Bi-fuel vehicles in Brazil: Honda Flex One Technology pedal (“step on the gas”), the system, which features an at the digital speedometer, which alter their colors as the electronic accelerator, immediately responds. vehicle is driven around. The colors vary from dark blue to Honda was the first company to make motorcycles with motorcycles and for automobiles, with the “Honda Flex One With the ECON function activated, it’s possible to control the a turquoise hue, until it becomes green, which indicates a bi-fuel engines, a mix of ethanol and gasoline with any Technology” concept. Among automobiles, “Civic 2.0” was throttle plate’s opening and, consequently, the response to more economic driving. combination among those two fuels. At the Manaus launched in February 2013 with flex system, which does that action, making the vehicle more economic. The vehicle (AM) plant, over 60% of the motorcycles produced there not require a cold-start sub-tank. With the new system, by will take slightly longer to reach the desired speed. In the contain the FFV system (Flex Fuel Vehicles), developed by pushing the control button of the switch that unlocks the automatic adjustment mode, the air conditioning system the company especially for Brazil. CG 150 Titan was the doors, a set of heaters start to work directly on the fuel line, changes the ratio of external and recirculated air according first, followed by other models that were also powered by generating the ideal temperature, especially for ethanol, ethanol or gasoline until 2012: NXR 150 Bros, CG 150 Fan to provide an air/fuel mix that’s ready to start immediate and Biz 125. In 2013, it was time for the 300-cc models, combustion. The result is a fast and safe start, even in a such as XRE 300 and CB 300R, to join the group of flex low-temperature situation. Also thanks to that system, motorcycles. This technology is based on the innovative consumers do not have to worry about fueling the sub-tank electronic injection system PGMFi, developed by Honda. with gasoline. Honda has also launched model CR-V Flex In this system the oxygen sensor identifies the quantity 2013 with that same system. The new technology is part of of O2 emitted after combustion, which allows for the ECM Honda Flex One Concept, which represents the company’s module (the system’s electronic brain) to perfectly adjust efforts to innovate in terms of sustainable mobility, by the injection and ignition times, according to the quantity of allying high performance with low pollutant emissions in ethanol found in the fuel mix, for the larger the quantity of all the products. ethanol, the larger the O2 emissions. The new Honda Accord, brought to Brazil in July, Before the motorcycles, Honda had started to launch imported from the United States, uses the Earth Dreams flex automobile models in 2006, taking into account the Technology that combines a high-efficiency engine with popularity of the bi-fuel concept in Brazil. low consumption. The first model to be launched was the Civic, followed by Fit and City. Currently, all models made in Brazil for the Brazilian market are FFV. In October 2012, Honda announced it would further enhance its bi-fuel system technology, both for

61 62 HSA Product Development

Motorcycle atmospheric emission control

Honda’s pollutant emission control is rigid and judicious, and The Gas Analysis and Measurement Lab was created as part of it even provides rates below the levels required by the Air a pioneering initiative, in order to ensure quality excellence and Pollution Control Program for Motorcycles and Similar Vehicles environmental commitment. See a comparison between the air 2 – Purchases | Green Purchasing (Promot), implemented in Brazil. The motorcycle plant in Manaus emissions generated by Honda motorcycles and the results of (AM) was the first in South America to calculate the pollutant the Promot program: emission rates of its products in that very manufacturing unit. To manufacture its products, Honda needs to work in partnership with suppliers. Since the purchase of those materials is a part of the company’s production cycle, those partners are engaged and contemplated according to the environmental and quality regulations required by the company. For Honda’s determinations to be fulfilled, the Purchase Department – responsible for CO HC NOx the acquisition of materials – works in a coordinated manner with its suppliers, by guiding and providing support so that the carbon monoxide hydrocarbon nitrogen oxide requirements are observed. MODEL Emissions Limit % below Emissions Limit % below Emissions Limit % below g/km limit g/km limit g/km limit BIZ 100 0,434 2 78,3% 0,121 0,8 84,9% 0,069 0,15 54,0% POP 100 0,434 2 78,3% 0,198 0,8 75,3% 0,038 0,15 74,7% LEAD 110 0,953 2 52,4% 0,264 0,8 67,0% 0,067 0,15 55,3% Actions with suppliers BIZ 125 100% gasoline 0,370 2 81,5% 0,104 0,8 87,0% 0,083 0,15 44,7% 100% ethanol 0.657 2 67,2% 0,188 0,8 76,5% 0,063 0,15 58,0% Honda has been developing a program in partnership with around the world, we must establish a new strategy to ensure CG 125 FAN/Cargo 0,609 2 69,6% 0,268 0,8 66,5% 0,044 0,15 70,7% suppliers in order to reduce CO2 emissions in all the activities supply of imported parts. A mapping of risk analysis is done NXR 125 BROS 0,210 2 89,5% 0,170 0,8 78,8% 0,058 0,15 61,3% that involve the production process, which also includes the by the department in order to ascertain what are the chances manufacturing of parts and components that supply the of production being affected in the case of an event involving CG 150 FAN 100% gasoline 1,038 2 48,1% 0,160 0,8 80,0% 0,051 0,15 66,0% automobiles and motorcycles plants. local suppliers affected by these phenomena. This study is 100% ethanol 0,796 2 60,2% 0,147 0,8 81,6% 0,042 0,15 72,0% Therefore, since 2009 the company has been collecting data taken into consideration when choosing new partners in CG 150 TITAN 100% gasoline 1,038 2 48,1% 0,160 0,8 80,0% 0,051 0,15 66,0% from their partners who can contribute to the atmospheric order to avoid future problems. 100% ethanol 0,796 2 60,2% 0,147 0,8 81,6% 0,042 0,15 72,0% emission reduction of these companies. So far, about 70% of The issue of use of hazardous materials is also being reviewed NX 150 BROS 100% gasoline 0,843 2 57,9% 0,149 0,8 81,4% 0,038 0,15 74,7% our suppliers have had their production process cataloged by by the Department of Purchases. Honda uses the IMDS 100% ethanol 0,470 2 76,5% 0,135 0,8 83,1% 0,014 0,15 90,7% Honda. system (International Material Data System) to record all of PCX 0,948 2 52,6% 0,140 0,8 82,5% 0,072 0,15 52,0% In this survey, companies are evaluated in relation to their the materials used in our vehicles, a tool that helps to be able CBR 250R 1,255 2 37,3% 0,173 0,3 42,3% 0,107 0,15 28,7% knowledge of the management of greenhouse gas emissions to meet the different legal and environmental requirements CRF 250L 1,171 2 41,5% 0,113 0,3 62,3% 0,068 0,15 54,7% program (GHG Protocol), their environmental policies and determined by each country. about their activities and goals. They are also grilled about CB 300R 100% gasoline 0,794 2 60,3% 0,13 0,3 56,7% 0,062 0,15 58,7% their standards and procedures, as well as attitudes toward 100% ethanol 0,444 2 77,8% 0,075 0,3 75,0% 0,036 0,15 76,0% reduction of greenhouse gases (GHG) emissions. XRE 300 100% gasoline 1,217 2 39,2% 0,159 0,3 47,0% 0,100 0,15 33,3% After this survey, the partnership working between the 100% ethanol 0,975 2 51,3% 0,122 0,3 59,3% 0,040 0,15 73,3% companies narrows further, this time not only to work for NX 400i FALCON 0,507 2 74,7% 0,102 0,3 66,0% 0,109 0,15 27,3% product quality, but also to contribute to environmental CB 500F 0,492 2 75,4% 0,068 0,3 77,3% 0,055 0,15 63,3% conservation in the production process. CBR 500R 0,419 2 79,1% 0,069 0,3 77,0% 0,074 0,15 50,7% To foster this commitment, in 2013 a workshop was held with CB 500X 0,927 2 53,7% 0,095 0,3 68,3% 0,069 0,15 54,0% partners from South America. In this workshop the goals of CB 600F HORNET 0,553 2 72,4% 0,238 0,3 20,7% 0,107 0,15 28,7% the overall program developed by Honda were presented, as well as highlighting the importance of the role of each one CBR 600F 0,660 2 67,0% 0,234 0,3 22,0% 0,104 0,15 30,7% in environmental preservation with focus on best practices in CBR 600RR 0,716 2 64,2% 0,237 0,3 21.0% 0,085 0,15 43,3% production. CTX 700N 0,632 2 68,4% 0,081 0,3 73,0% 0,025 0,15 83,3% Another point that deserves attention is the issue of conflict NC 700X 0,543 2 72,9% 0,096 0,3 68,0% 0,082 0,15 45,3% minerals from Central Africa. Thousands of lives have been XL 700V TRANSALP 1,047 2 47,7% 0,178 0,3 40,7% 0,068 0,15 54,7% lost due to the interests of armed groups operating along the SHADOW 750 1,280 2 36,0% 0,114 0,3 62,0% 0,120 0,15 20,0% deposits of extraction. Since 2013, the purchase departments CB 1000R 0,648 2 67,6% 0,153 0,3 49,0% 0,073 0,15 51,3% of all Honda units around the world work together with their CBR 1000RR 0,603 2 69,9% 0,245 0,3 18,3% 0,101 0,15 32,7% suppliers to eliminate the use of minerals from that region VFR 1200F 0,974 2 51,3% 0,223 0,3 25,7% 0,065 0,15 56,7% and thus discourage such actions of these armed groups. Climate change is also another focus of concert for Honda. VFR 1200X CROSSTOURER 0,825 2 58,8% 0,182 0,3 39,3% 0,097 0,15 35,3% With the constant instability, such as hurricanes, tsunamis, Workshop with suppliers. GL 1800 GOLD WING 0,302 2 84,9% 0,125 0,3 58,3% 0,053 0,15 64,7% earthquakes, rainfall, and other phenomena that occur

63 64 HSA Production | Green Factory

3 – Production | Green Factory Honda Automóveis do Brasil - Sumaré (SP) Honda Automóveis do Brasil, since its foundation, in 1997, has been developing actions directed to environmental preservation. As a consequence of those initiatives, in 2005 the plant was granted the ISO 14001 environmental certification. In 2008, the plant started to apply Honda’s global Green Factory concept and then, in 2011, that unit started to integrate the Brazilian program to manage gas emissions, the GHG Protocol.

During the manufacturing of its products, the consumption of the resources utilized in production has been constantly optimized by Honda, in order to contribute to environmental preservation, following Honda’s global Green Factory concept. Rational use of water It involves many actions focused on emission reduction, waste management, rational use of water, and energetic efficiency, among other initiatives that aim at minimizing the impacts generated by the production process, reflecting the company’s environmental commitment, The water that supplies the plant is treated by the Water them that aim at reducing the water consumption in a rational which governs the company’s activities all over the world. Treatment Station (ETA), whose capacity amounts to 720 and efficient manner. thousand liters per day. For industrial use, it’s necessary that Several measures were also implemented in 2013 to the liquid receive a special treatment with chemicals. In the optimize water consumption. Among them, the installation of case of domestic use, the water comes from artesian wells. new water meters, which facilitated measuring the individual After the Sumaré plant uses the water, the effluent is treated consumption of the factory, enabling better management Production results in 2013 before it’s returned to the natural environment at the Effluent and consequently aiding in proposing new projects to reduce Treatment Station (ETE) located in Honda’s facilities. water consumption. Brazil Argentina The effluents derived from production processes, refectories Aiming to reduce waste from water consumption in the and restrooms go through a rigid biochemical purification Department of Plastic Injection, preventive actions were taken process. After being treated, the effluent, which is now treated to eliminate possible leaks in water pumps, thus avoiding as per national regulations, is directed to the stabilization waste. The action resulted in a saving of 75 thousand liters pond. Part of it is destined to irrigation and the remainder is per year. returned to Ribeirão do Quilombo, contributing to preserve The Machining Department, which requires constant use of the local aquatic life. air conditioning, implemented a measure that resulted in a The conscious consumption of water has already been a part 7.9 m3 of water savings per month. The water used in the of the plant’s culture for many years now, and is subject to operation of air conditioning, which was previously discarded, Honda Automóveis do Moto Honda da Amazônia Honda Motor de Honda Motor de Argentina constant awareness-building campaigns among employees, is now reused in the cleaning department. Brasil - Sumaré-SP - Manaus-AM Argentina Florêncio Campana including many different actions and projects developed by Automobiles: Motorcycles: Varela Automobiles: 136,257 units 1,303,545 units Motorcycles: 1,681 units 102,685 units Quadricycles: Motorcycles: 3,607 units 64,261 units Power products: 21,341 units Peru

Colombia

Fanalca S.A. Honda del Peru Honda Selva del Peru Motorcycles: Callao Iquitos 102,794 units Tricycles: Motorcycles: 5,146 units 20,189 units

Tricycles: 12,698 units

Water Treatment Station Effluent Treatment Station

65 66 HSA Production | Green Factory

Energetic efficiency Wind Farm – Honda Energy

The conscious and rational power consumption has been Compressed air consumption was also a focus of attention South America is considered extremely privileged in relation The foundation stone was laid in 2013 by the company’s studied and improved throughout the years in order to in the environmental initiatives in 2013. The Assembly Line to the other countries. It’s rich in terms of vegetation, mineral representatives, to celebrate the start of works on site. The reduce to the maximum extent possible the utilization of that Department developed new nut runners. The pneumatic nut resources (gas and petroleum), and has one of the largest river venture will have the capacity to supply the energy needs of resource. runners – which required large amounts of compressed air and lake reserves in the world. A large part of the electricity the automobile plant in Sumaré (SP), from September 2014. In 2013, a series of actions were implemented with the – were replaced by electrical, more efficient ones. With this that supplies the South American countries is generated To make the project viable, a new company was created in objective of optimizing electricity consumption in the action, it was possible to reduce the annual consumption by from water, which is considered a clean energy that employs the Honda South America Group in order to manage this new automobiles factory in Sumaré (SP). Among them, installing 22,740 kWh, which represents 559 kg of CO2 per year. renewable resources and represents little impact for the activity in the energy sector, Honda Energy do Brasil Ltda. translucent tiles on the walls of the Plastic Painting area, A standard lighting shutdown system at the second shift was environment. However, there is some level of impact that needs using the sunlight and reducing electricity consumption in implemented at the Final Inspection Department to reduce to be minimized. 6,451.2 kWh, contributing to the reduction of 158.7 kg of CO2 electricity consumption. With the initiative, 8,448 kWh were Based on the global premise of reducing CO2 emissions in its per year. no longer consumed and 208 kg of CO2 ceased to be emitted activities and seeking for a power source that generates less In the field of plastic injection molding, we developed a into the atmosphere annually. environmental impact, Honda has developed a pioneering protection blanket that acts as insulation resistance of the In the former procedure of Plastic Painting operation, of all plan in the automobile sector in South America, which gathers cylinders of injection, preventing heat loss and consuming the equipment was switched on simultaneously, regardless of state-of-the-art technology and environmental preservation. less electricity. With the modification, 119,292 kWh were no the process stage. The personnel of that segment suggested Honda Automóveis will be the first car manufacturer in Brazil longer consumed per year, reducing the emission of 2.93 tons sectorial area connection, turning on only the equipment that to have all its electricity needs met by self-generation. This of CO2 annually. would be used at the moment. With this modification, the power generation should be made through wind power in a A campaign was launched by the Department of Environmental result is that 218,25 MWh are no longer consumed per year, park that is being built in the city of Xangri-lá, in the coast of Rio Planning to educate employees about the ideal temperature as well as 5,36 tons of CO2, that ceased to be emitted annually. Grande do Sul. Nine wind turbines will be installed in this Wind of the air conditioning, which should be kept at 24 °C, since To reduce the consumption of natural gas in the Painting Farm, generating a total of 95,000 MWh/year, enough electricity studies have shown that reduction of 1 °C reflects 10% Department, the primer burning booth is disconnected to supply a city of 35,000 inhabitants. savings in energy. when the outside temperature exceeds 30°C, thus reducing This measure will provide a reduction of 2.2 thousand tons A working group of the Department of Painting noticed unnecessary consumption of natural gas. The next step of of CO2 emitted per year, an amount that would be released to that much equipment remained on to their fullest potential the project is to perform the automation of shutdown. With the atmosphere if the power did not come from this source. Foundation stone laying ceremony throughout the workday. A system of frequency inverter was the change, it was possible to reduce gas consumption, implemented in these devices, enabling the scaling of the avoiding CO2 emissions and contributing to environmental minimum frequency required. With that action, it was possible preservation. to account for a 30% reduction in electricity consumption, Still on measures involving the use of natural gas, the Painting representing 970,000 kWh per year which are no longer Department proceeded to close the doors of the primer oven consumed and a reduction of 23.86 tons in CO2 emission. manually during mealtime, in a total of 80 minutes per day. The ink drying greenhouses in the Painting Department With that action, the heat of the furnaces was preserved, received a sensor that turns off the cooling system at the reducing gas consumption and ceasing to release 62.1 tons exit of the furnace when there is no need for cooling of car of CO2 in the atmosphere annually. bodies coming out of the greenhouses. With the optimization of energy consumption, 264 MWh per year are no longer used, representing 6.49 tons of reduction in CO2 emissions.

Translucent tiles at the automobile assembly line

67 G6666 HSA Production | Green Factory

Atmospheric emission reduction Waste management

Honda Automóveis do Brasil in Sumaré (SP) has been reduce raw material consumption was the modification in the Managing waste is a major concern of Honda, which, in this to the environment. In the whole plant it was implemented implementing a series of improvements in its painting painting process of car bodies, which made possible reducing direction, seeks to implement measures aimed at reusing the use of a new type of garbage bag: the ecological ‘Sanito’ process throughout the years in order to reduce as much as the layer of coat base paint on the roof, hood and trunk of the materials. manufactured from ethanol. Unlike the regular kind, produced possible the environmental impact generated by the emission vehicles without compromising product quality. This change Selective collection is one of environmental practices in the from petroleum, ecological Sanito is a completely renewable 2 of volatile organic compounds (VOC). represented a 0.45 g reduction of VOC per m of painted area company. To attract attention and arouse interest among material and emits less CO2 during production. That plant utilizes the electrostatic painting system. Thus, the that ceased to be emitted in 2013. The sash door varnish employees for this action we created the “Recycling Space”. Following this same premise, common disposable cups were plastic parts to be painted count on the support of magnetism, coating was reduced, without compromising product quality. Distributed in strategic locations, metal, plastic, paper and replaced by biodegradable models that take less time to which attracts the paint into the material. Therefore, it reduces With this action, it was possible to reduce VOC emissions in glass are collected, besides batteries. decompose in nature. VOC emissions, in addition to optimizing the use of the 0.72g/m² per vehicle produced. The waste generated in the production process of the The Human Resources replaced the plastic spoons used in products (this method utilizes 90% of the paint, while in the Alcohol consumption was also reduced during the cleaning automobile factory undergoes classification and separation, the cafeteria by metal, which can be washed and reused. The remaining methods that rate is 50%). Besides the electrostatic process of bodies. With this improvement, it was possible to and about of them are destined for recycling. action resulted in a reduction of more than one ton of waste painting system, many themes were implemented at the reduce the emission of 0.86 g/m2 of VOC per vehicle produced. In 2013 many measures were implemented, Welding disposed per year. factory in order to reduce the factory’s VOC emissions. One of There was a decrease in the consumption of solvents in the department started reading the reports on the computer In the Painting Department, disposable filters used in the the examples is the reduction in the consumption of products cleaning process of equipment and furnaces. The initiative screen, instead of printing them. The action helped reduce cooling process of water were replaced with washable and in the Painting Department. Solvent consumption was aimed at avoiding waste of material by means of process consumption by 220 sheets of paper and eight pens per month. reusable units. With the change, it was possible to reduce reduced by decreasing the primer coating inside the hoods improvement. The action generated savings of 6,720 liters of A chemical treatment station was also installed in the waste generation by 75 kg per year. of the automobiles without altering product quality. With that solvent per year and avoided the emission of 5,9 tons of VOC Machining Department, for separation of the water in the With the intention of reducing waste generation in the weld change 0.85 g of VOC per m2 of painted area were no longer per year. cutting oil generated in the unit, aiming at reducing the amount area, employees reduced the frequency of testing bodies that released to the atmosphere per year. Another measure to of waste generated in the production process. resulted in the need to scrap the same at the end of the process The paint sludge from the paint booth also received special (Zenbara). By reducing the frequency of these tests, from 12 attention. Before sending this waste to coprocessing, it now to 9 bodies annually, it was possible to reduce the disposal undergoes a drying process by Big Bags, so the water in the of metals. The action provided a reduction in the emission of paint sludge drains into a barrel and goes back to the process. waste in the order of 1,665.4 kg/year. The change resulted in a 50% reduction in the amount of Even the outpatient clinic of Sumaré plant sends waste for water in the sludge and allowed a reduction of more than 14 reuse. The sheets of X-ray examinations took there are sent to tons of waste generated per year. By reducing the amount of Unicamp (State University of Campinas), who forwards it to a water in the composition, the sludge that was previously sent company that is certified by Cetesb (Company of Environmental to coprocessing became subject to recycling and is currently Sanitation Technology). This material is prepared to separate sent to a partner company that recycles ink for the production some chemical elements that compose it, among which is of second-line paints. silver. The metal is reused to make jewelry and silverware The administrative area has developed a study to raise and the waste is disposed of properly to avoid environmental awareness about the use of products that are less harmful contamination.

Electrostatic painting process for plastic parts Recycling Space

69 70 HSA Production | Green Factory

Progression of results in favor of environmental preservation Moto Honda da Amazônia – Manaus (AM) (per vehicle produced) Since its foundation, in 1976, Moto Honda da Amazônia, in Manaus (AM), has committed itself to prevention of pollution and continuous improvements, as a part of its corporate management cycle. Since 1998, the plant has been certified by ISO 14001 Results in 2012 Results in 2013 Goal for 2014 and the Green Factory concept started to be implemented in the company in the year 2000. That is, many initiatives have been implemented throughout the years to promote environmental preservation and optimize the use of natural resources.

CO2 emissions 94.7 kg 89 kg 87.7 kg

2 2 VOC emissions 52 g/m 48 g/m 47.7g/m² Rational use of water Waste Generation 149 kg 143 kg 141.1 kg The water that supplies the plant is subject to special attention. sent to the stabilization pond, where part of the volume then Water Consumption 1.93 m3 2.0 m3* 1.87 m3 The process starts by collecting water from the well; that it is supplies the irrigation system for the gardens of the factory. pumped to the treatment plant where it receives the addition of The remainder is returned into nature, to Igarapé do 40, thus *The goal for water consumption per vehicle produced in 2013 was set in 1.90 m3. However, due to the execution of works consumption chemicals for disinfection; chemical analyzes are performed preserving the ecosystem. was higher than planned throughout the treatment process; finally the water is filtered However, in addition to treating, it’s also necessary to and then supplies the taps and drinking fountains all through promote conscious consumption. That’s why the company the factory, being distributed for safe human consumption has strived, since the start of its activities, to awaken among within the standards set out in the ANVISA legislation. The its associates the awareness that human beings are also a ETA can treat 410 m³/day. part of the environment. Proof of that was the involvement of The water utilized in the production process of motorcycles and the ETE employees who implemented a water reuse system, power products in Manaus (AM) is fully treated in the Effluent in which part of the treated effluent is used to prepare the Treatment Station (ETE), whose daily capacity amounts to solutions that help treat the plant. 2,500 m³/dia. After going through physico-chemical and biological treatment, the treated effluent is disinfected and is

Water Treatment Station

Water derived from Honda’s production process is treated and returned to the environment

Effluent Treatment Station

71 72 HSA Production | Green Factory

Energetic efficiency Waste management

Moto Honda da Amazônia has been implementing electric day, reducing power consumption. In addition to being The waste derived from the motorcycle production process power consumption optimization measures throughout the transparent, these tiles contain prisms which increase goes through rigid management: they are firstly classified years. brightness distribution, covering a larger area with natural and then segregated before being destined to an adequate In 2013 the central cooling system of the plant was expanded, light and avoiding the use of electric lights to illuminate the disposal. Around 98% of all the generated waste is destined which optimized the operation of the refrigeration system environment. With the implementation of this system, it was to recycling. and reduced power consumption. With the new equipment, possible to reduce 497 MWh annually, besides reducing CO2 The foundry sand, the cast aluminum, the ABS plastics and the capacity increased to 2,800 TR’s distributed in four emissions by 12.23 tons per year. polypropylene are reutilized in the production process. The chillers. With this modification, 153.89 tons of CO2 ceased To optimize the energy consumption used to generate thinner used in the painting processes has also started to to be emitted into the atmosphere annually and 6,468 MWh steam, a flame display was developed to eliminate the use be reused and recycled. were spared per year. of compressed air, reducing by 47% the energy consumption In 2013, the work to improve and optimize the use of Fluorescent lamps have longer life and lower energy in boilers. resources undertaken at that unit was continued. consumption, so they replaced the previous models in the Moreover, conversion to natural gas is being deployed to A new painting process was implemented for the departments of Stamping and Machining, representing a supply the plant, replacing LPG (gas derived from petroleum) aluminum parts. This action made possible the reduction decrease of 40% in CO2 emissions, reflecting 185 tons of used previously. With this change, it will be possible to of 29 thousand liters of paint per year and a reduction of CO2 that ceased to be emitted into the atmosphere annually, reduce CO2 emissions in the atmosphere, besides achieving 14,311 tons of VOC that were no longer generated. Selective waste collection center reducing electricity consumption in 7,515 MWh per year. more energetic efficiency in production. Another measure that has been implemented is the gradual replacement of the roof of the motorcycle factory, favoring translucent tiles that allow the use of sunlight during the Environmental reserves

Honda keeps an environmental reserve in Rio Preto da Eva with 16.4 hectares, which comprises the Urban Ecological (AM), which preserves 801.6 hectares of native forest and 305 Corridor of Mindu. Together these environmental reserves hectares of reforested trees, especially some endangered could carbon neutralize an amount bigger than the emissions species. The company also owns the Particular Natural from the motorcycle plant in 2013, as shown below: Heritage Reserve located in Igarapé do Mindu, in Manaus (AM),

57,313 tons -31,495 tons = 25,818 tons

Annual CO2 absorption capacity Total CO2 emissions at the Positive balance for of the reserves motorcycle plant in Manaus (AM) the environment

Chilled Water Central

Atmospheric emission reduction

The constant pursuit of environmental preservation and new VOC that ceased to be emitted in the atmosphere in 2013. and more sustainable solutions throughout the years has led A new painting process was implemented for the aluminum to measures that aim at minimizing the emissions of volatile parts. This action made possible the reduction of 29 thousand organic compounds (VOC) into the atmosphere. liters of paint and a reduction of 14,311 tons of VOC emitted per Proof of that is the modification in the internal painting system year in the atmosphere. for motorcycle tanks, which allowed optimization of the robot’s painting trajectory and, consequently, a reduction of 3,465 kg of

Environmental reserve in Rio Preto da Eva (AM)

73 74 HSA Production | Green Factory

Progression of results in favor of environmental preservation Honda Motor de Argentina (per motorcycle produced) In 1978, Honda Motor de Argentina S.A. was founded. Initially, its activities were based on the distribution and commercialization of automobiles, motorcycles and power products. Production activities started in 2006, with the inauguration of the motorcycle plant in Florêncio Varela, province of Buenos Aires. In 2011, Honda Motor de Argentina opened its car plant in the country, for Results in 2012 Results in 2013 Goal for 2014 the manufacturing of automobiles and auto parts for many different models for the local market and for export. The company has dedicated great attention to its production process, striving to reduce the environmental impacts of its activities. Thus, it has been preparing its plants to obtain the ISO 14001 certification. In 2012, an internal committee was established, and an action CO2 emissions 74.57 kg 69.90 kg 74.99 kg* plan was developed, in order to fulfill the requirements of the international norm and optimize the production process.

VOC emissions 0,95 kg 0,89 kg 0,88 kg Waste Generation 18.23 kg 20.8 kg** 20.5 kg

3 3 3 Water Consumption 0.925 m 0.763 m 0.755 m Rational use of water

* Increase in CO2 emissions by motorcycle produced due to the verticalization of aluminum melting process. The Campana plant exceeded its goal of 27% reduction in ** Increase in waste generation by motorcycle produced due to incremental processes, as well as treatment of part of the waste by recy- water consumption in the plant in 2013. This was possible cling companies. due to the installation of new water meters that helped to more accurately measure the water consumption at the plant. Another measure that contributes to the outcome was the internal awareness-building campaigns among employees, aiming at promoting rational use of water.

Internal campaign to reduce water Energetic efficiency consumption.

The Argentinian units have been seeking solutions to streamline and reduce the consumption of electricity in their activities. In the Pacheco plant, 400W luminaires were replaced by 150W and 200W ones, however, maintaining the same brightness. Thus, it was possible to reduce consumption from 19.75 MWh to 17.9 MWh/month. In the Campana plant, the air cabin started to be disconnected in advance, optimizing consumption by 16% and reducing the use of electricity. This can be converted into 201 kg of CO2 that ceased to be emitted monthly into the atmosphere. The cooling tower operation is currently automatic, with lunch time shutdown programmed automatically. With this measure, it was possible to reduce the energy consumption by 1,723 kWh per month, representing 930.4 kg of CO2 that ceased to be emitted into the atmosphere monthly. A study was also conducted to optimize the use of compressed air, reducing pressure without affecting the process. The measure yielded a reduction of 7,200 kWh per month, which means that 3,888 kg of CO2 ceased to be emitted into the atmosphere monthly.

Internal campaign to raise awareness about energy consumption. The water derived from the production process at Moto Honda da Amazônia, returns to nature after treatment

75 76 HSA Production | Green Factory

Reduction of atmospheric emissions Honda del Peru

Reducing the emission of volatile organic compounds (VOC) is Aiming at improving the logistics of delivering products, the Founded in January 1974, Honda started its activities in the city of Trujillo, with the assembly, importation and also a focus of attention in the Argentina plant. motorcycle factories developed a system called “Hadaka commercialization of motorcycles and three-wheeled vehicles. In 1983 the company moved to Iquitos. In 1994 a new In 2013, the Painting Department changed the process of Yuso”. In this method, the products leave the factory and are production and assembly plant started operations in Lima, and in 2006 Honda Selva Del Peru was founded. cleaning the hoses used to paint the products. Previously, delivered directly to the dealers, without the need to store In 2013, the motorcycle and automobile Iquitos plants were integrated, composing a single production plant. Those plants this cleaning was performed with automatic pistols and then the vehicles in a warehouse, as was previously done. With undertake many activities focused on environmental responsibility. Those initiatives favor optimization of the use of it began to be performed with cloths dampened in solvent. this action, it was possible to reduce the distance traveled natural resources, reduction of CO2 emissions, and also awareness-building campaigns for their associates. With this process modification, it was possible to reduce VOC by trucks, reducing fuel consumption and consequent CO2 emissions in the atmosphere and ensure greater recovery of emissions. the solvents used.

Rational use of water Waste management Taking advantage of the weather conditions in the region, the Iquitos plant harvests rainwater, which is abundant throughout the year, through drains placed on the roof. A hydraulic system As reducing waste generation is concerned, a new packag- takes the harvested water to the restrooms, supplying toilet ing for motorcycles was developed, replacing the wooden flushes and sinks. frame of the rack by a returnable metal model. With this Furthermore, a system to reuse rain water is also being action, it was possible to save 240 tons of wood a year, developed for use in the cleaning of the painting area. which were no longer used in the transportation of mo- Awareness-building campaigns on the rational consumption torcycles, and 45 tons of cardboard, no longer consumed, of water are also being undertaken at the Callao plant, contributing to the preservation of trees and reducing CO2 disseminating among associates information on the emissions. importance of preserving this natural resource.

Space for waste management

Energy efficiency Progress in achieving the goals Progress in achieving the goals at the Campana plant at the Campana plant With the integration of the tricycle and motorcycle plants in reduction of electric power consumption. Iquitos, it was possible to dramatically reduce the electrical Another measure that was implemented and contributed to (per automobile produced) (per motorcycles produced) power consumption. reducing the consumption of LPG was the modification of The see-through roofs at the new plant generated energy the powder coating process in the painting line of tricycles, Results in Goal for Results in Goal for savings of over 28,000 kW/h, thus reducing CO2 emissions which started using thermal insulation to aid the drying stage, by more than 18 tons per year. The air conditioning also had optimizing the use of energy sources. 2013 2014 2013 2014 its temperature limited to 24°C, which contributes to the

CO2 emissions 659 kg 657.7 kg CO2 emissions 114.3 kg 114.1 kg

VOC emissions 90.6 g/m2 89.7 g/m2 VOC emissions 1.11 kg 1.10 kg Waste Generation 55.8 kg 55.3 kg Waste Generation 27.6 kg 27.4 kg Water Consumption 5.0 m3 4.9 m3 Water Consumption 0.75 m3 0.74 m3

Progress in achieving the goals at the Florêncio Varela plant (per motorcycles produced)

Results in 2013 Goal for 2014

CO2 emissions 9.6 kg 9.5 kg Translucent tiles in the tricycle plant in Iquitos

77 78 HSA Production | Green Factory

Atmospheric emission reduction Fanalca S.A.

The volatile organic compound (VOC) emissions is been Fanalca SA is Honda’s exclusive distributor of motorcycles and automobiles in Colombia. The company’s activities have controlled by the plants in Peru and new measures are been certified by ISO 14001 since 2002. In addition to that, it has a team of 38 employees that have become environmental being adopted to reduce as much as possible the generation leaders at the company. The goal of these members is to promote awareness of their teams on the importance of preserving of those compounds. the environment, besides stimulating new initiatives that contribute to this cause. Their activities include training of other In 2013, in the Iquitos plant, a powder coating system was employees, environmental projects, ecological rides and corporate visits. adopted that eliminates the use of solvents during the process of painting the chassis of tricycles, reducing VOC emissions into the atmosphere. Rational use of water

A measure that has contributed to the optimization of water tricycles chassis painting process consumption in Fanalca is the reuse of water used in pre- treatment line for motorcycles, which effluent resulting from the process is taken to a tank for decanting and then is reused for Waste management irrigation of gardens. Furthermore, a new water treatment system has been adopted The Peruvian units promote many internal awareness- in the factory, reducing the need for purification chemicals. This building campaigns on wastage and on adequate waste happens in a physical-chemical process that treats waste from disposal. In addition to that, they also encourage the reuse the factory and toilets in special machinery, which reduces by of components that normally would be disposed. In 2012 a 75% the need for application of chemical agents such as chlorine Recycling Center was built in the motorcycle plant of Iquitos in the process. with 640 m2, where the CKD metal boxes (a set of parts used Water reuse in the irrigation of gardens to assembly vehicles) are recycled and reused to package the motorcycles put in the market. The packages used to transport the tricycles (motokar) and motorcycles produced in the Peruvian plants are reused in many ways, e.g., the metallic frame of the CKD, which is Atmospheric emission reduction reused to produce other racks. Plastic bags are transformed into protective films and cardboard is used to protect delicate Fanalca created the Carbon Neutral Program, which aims to parts of the finished motorcycle, such as headlights and Recycling Center in Iquitos achieve environmental balance through a compensation for taillights. the effects of the CO2 emissions generated by the sale of new In 2013, the result achieved was 80% of waste collected for vehicles. For each marketed vehicle, the corresponding planting Honda recycling, among those, 85% of steel, 73% of cardboard, 96% of trees is promoted, reducing the effects of the global heating Carbono of plywood and 71% of plastic that were reused. during its life cycle. The planting is undertaken by a specialized entity, with wide experience in the country, with support from Neutro the United Nations and the supervising of Ministry of Natural C Environment of Colombia. E O RTIFICAD Progression of results in favor of environmental preservation (per motorcycle and tricycle produced) Energetic efficiency

In the factories, a reversal in the compressor system was of electricity in factories and offices. In this case, machines and Results in 2012 Results in 2013 Goal for 2014 promoted, reducing power consumption. equipment that are left unnecessarily on are turned off, so as Another action that aims at optimizing the use of equipment lamps, and computers, cell phone chargers are turned off and is called “Consumption Vampires”, which consists in the unplugged out of office hours. CO2 emissions 18 kg 14 kg 12 kg identification of processes that could reduce the consumption

VOC emissions 1.0 kg 0.64 kg 0.40 kg Waste Generation 14 kg 12 kg 10 kg Water Consumption 0.2 m3 0.18 m3 0.10 m3

79 80 HSA Production | Green Factory

Waste management

At Fanalca, 96% of the waste is recycled, i.e. 3,790 tons per identification and proper segregation of such waste. year of paper, plastic and even organic materials that are A pre-treatment tunnel for metal parts was built in 2013, recycled, such as residues from pruning the trees that are reducing the consumption of chemicals by 42%, additionally to 4 – Transportation | Green Logistic processed into organic fertilizer instead of being discarded. the reduced natural gas consumption and waste generation. For hazardous waste, there was also a decrease compared With the installation of a new powder painting booth with with the previous year. In 2012, this indicator was 6%, and in alternating movements, it was possible to reduce waste 2013, that number decreased to 1%, which is equivalent to generation by 62%, which is 152 kg/month instead of 400 48 tons, or 0.14 kg per motorcycle produced. This result was kg/month. Other advantages of this measure are reducing possible due to the work of three Kaizen teams who were the consumption of raw materials for painting activities and engaged in studying the plant and the workflow, besides the the reduction of risk of fire and explosion, contributing to commitment of the representatives of the Environmental environmental preservation. The pursuit of environmental preservation is not just limited to product manufacturing. For Honda, responsibility goes far beyond that, Committee. Employees also received training in the including the path that raw materials and components cover to arrive at the plant and start the production of automobiles, motorcycles and power products, as well as the distribution of the manufactured products to dealers and distributors all over the country. Called Green Logistic, this optimized logistic system relies on Honda’s continuous effort to improve efficiency in its operations, by promoting modal transportation and integration with other partner companies. This conjoint work with other companies aims to reduce the consumption of packages, promoting a change in the materials used and giving preference for returnable packages.

Honda Automóveis do Brasil - Sumaré (SP)

Packaging

Being concerned with sustainability and respect for the Following that same premise, in the automobiles destined to environment at all stages of its manufacturing process, Honda exportation the break discs are protected with a material made uses biodegradable plastics to protect seats in the automobiles of PET bottles. The material is 100% recyclable; in addition to that, produced in Brazil. The material is capable of being decomposed it does not generate residues and does not retain dirt because it and return to the environment within the short term of six months. doesn’t use glue. That kind of plastic material is composed of biodegradable Powder painting booth polymers.

Evolution of the results in favor of environmental preservation (per ton produced)

2012 2013 2014

Water Consumption 1.94 m3 1.84 m3 1.75 m3 Power Consumption 258 kWh 242 kWh 231 kWh Hazardous Waste Generation 1.65 kg 1.46 kg 1.39 kg Biodegradable plastic on automobile’s seats Special protection for the wheels made of PET

81 82 HSA Transportation | Green Logistic

Milk Run Moto Honda da Amazônia - Manaus (AM) The automobile factory in Sumaré (SP) has developed several This action contributed to the reduction in the volume of daily improvements in its process of transporting parts from suppliers travels and hence, CO2 emissions from this activity, totaling 5.80 Transportation optimization to the factory, the Milk Run process. kg of reduction in CO2 emission from the production of each Replacing six trucks that carry out the Milk Run for trucks powered automobile. To transport annually 1.3 million motorcycles manufactured in Manaus to all corners of Brazil and 429 thousand tons of parts transported by biodiesel S-10 brought positive results in reducing CO2 Another modification integrating the Milk Run system was the from suppliers to the plant, we need to rely on a complex logistic operation, since the country has the fifth largest territorial extension in emissions. Not only the fuel, but also the routes were reassessed, implementation of the Shuttle system, which optimizes the the world. The figures are huge; 28 thousand trips per year considering factory supply and distribution of motorcycles. With the purpose of seeking optimization of results. With these modifications, it was use of racks, filling all the available space with parts and thus optimizing the natural resources employed in the logistic operation, Honda has developed environmental management systems together possible to reduce CO2 emissions to 0.6 kg per automobile reducing the total of travels. With the implementation of this with our partners, aiming at eliminating packaging and establishing more efficient means of transportation with lower environmental produced. In September 2013, Honda implemented the use of action it was possible to reduce the number of travels per day impacts. semi-trailers in the logistic process. from 114 to 86, minimizing the emission by 1.10 kg of CO2 per automobile produced. NPD – Non-Packing Delivery

NPD is an innovative motorcycle transportation system developed by Moto Honda da Amazônia. With it, the company was able to st 1 HALF OF 2013 reduce the volume of packages and diesel consumption. With a focus on environmental respect, Honda has been promoting changes SUPPLIER since 1997; it has reduced the utilization of wood packaging, protection oil, and cardboard and metallic boxes in its processes, to 82 trucks powered by regular diesel – S50 establish the current returnable racks employed to transport approximately 92% of the motorcycles destined to supply the Brazilian SUPPLIER market from the plant to its dealers. Since then many other changes have been implemented, reducing the consumption of a large number of resources and helping protect the environment. See below: COMBUSTÍVEISSUPPLIER

SUPPLIER DIESEL DIESEL 1997 1998 COMBUSTÍVEIS Milk Run was implemented, a logistic system that optimizes Returnable plastic packages were adopted in the transportation DIESEL DIESEL trips for the delivery and withdrawal of products and of parts, thus reducing waste generation from the previously components. The company’s truck fleet has also been used disposable components, such as cardboard and plastic. modernized. With such measures, there was a 5.3 kg CO2 That replacement led to a 0.7 kg CO2 emission reduction for each emission reduction per motorcycle transported. motorcycle transported.

SUPPLIER 2005 2007 2nd HALF OF 2013 SUPPLIER A returnable metal rack system was implemented, eliminating A river transportation system called Swimming Warehouse 60 trucks powered by regular diesel – S50 and 22 trucks waste generation from the previously used disposable models. was adopted. With that measure, 11.5 kg of CO2 ceased to be powered by biodiesel – S10 This initiative decreased CO2 emissions by 3.1 kg per motorcycle emitted into the atmosphere per motorcycle transported. transported.

SUPPLIER 2010 SUPPLIER COMBUSTÍVEIS A new system employing carts especially adapted to the SUPPLIER transportation of motorcycles was implemented, eliminating

SUPPLIER DIESEL BIODIESEL the use of racks. The modification accounts for 6.5 kg less CO2 in

COMBUSTÍVEIS the atmosphere per motorcycle transported. Currently, 5% of the fleet already features that modification.

DIESEL BIODIESEL

Swimming warehouse SUPPLIER

2 12 kg OF CO2 PER VEHICLE PRODUCED 13.4% OF CO REDUCTIONSUPPLIER

83 Adapted carts 84 HSA Transportation | Green Logistic

2012

Cabotage was implemented at Honda in 2012, taking advantage of the Brazilian geography, which favors shipping cargo. This modality has enabled the company to cut the average CO2 emissions for each motorcycle transported by 12.5 kilograms. 5 – Sales and services | In order to service the PADs (advanced distribution outposts) Green Dealer located over 400 km from the destination harbors, not favoring cabotage, Honda started using semi-trailers (a set of one engine and two trucks) increasing load capacity in up to 70%. This configuration enables a reduction of 8.8 kg of CO2 per motorcycle transported, as compared with road-river transport performed with conventional trucks.

By offering the joy of selling a product to its clients, the dealers also strive to convey Honda’s ideals, including as regards Cabotage environmental preservation. In 2003, with the continuous growth of the dealer network and the increase of the amount of waste generated when providing services, Honda started to develop an action to avoid environmental impacts during the post-sale stage. The result was the creation of the Green Dealer, a certification issued by Honda to the motorcycle and automobile dealers that dispose 100% of 2013 their generated waste by means of certified recycling companies. What once started as a simple idea has become an important competitive differential for the brand, that shares its environmental The Swimming Warehouse has grown significantly over it was possible to reduce by 1,234 tons of CO2 that ceased commitment with dealers and customers through this tool. the years, since launch. In 2013 the volume of motorcycles to be emitted into the atmosphere annually. Contributing to The dealer is provided with a reference guide regarding its facilities, procedures, team qualification and partnerships with produced transported by this system increased to 74%. this advancement, the installation of Camaçari, São Luís and environmentally responsible suppliers and, after presenting proof of proper disposal of all waste generated in the provision of Motorcycle distribution by cabotage increased from 3% to 18% Porto Alegre PADs (advanced distribution outposts) was set services, receives a certification with annual validity. in 2013. With the increased use of such transport modality, in motion. In 2013, to further promote the program, the After Sales department reviewed the report on the development of dealers network, and among items evaluated such as facilities and work procedures, there is also the issue of proper disposal of waste, which had its weight of importance increased.

Parts Division Evolution of the Green Dealer certifications in Brazil.

Translucent roof Green Dealer certified dealers - Automobiles 6% 21% 40% 46% 50% In 2013, translucent tiles were employed in approximately 200 179 199 196 5% of the roof of the warehouse in Parts Division, generating 158 170

natural lighting environment and providing better working 100 98 70 83 conditions, energy savings and reduced emissions, 36 9 accounting for 156.1 less tons of CO2 in the atmosphere 0 annually. 2009 2010 2011 2012 2013 Total of Dealers Total of Green Dealers Warehouse in Parts Division Green Dealer certified dealers - Motorcycles Packages 18% 32% 37% 45% 58%

The Parts Division has implemented changes in the packages resources, besides greater reuse of packages generated in 1096 1100 1031 989 for distribution of parts for dealers, with the development the primary processes. With this measure it was possible to 892 966 of new boxes and envelopes which optimize the process reduce CO2 emissions in 1,277 tons in one year. 500 489 574 and contribute to reducing the use of cardboard and other 301 364 158 0 2009 2010 2011 2012 2013

Total of Dealers Total of Dealers

85 86 HSA Product Recycling

6 – Product Recycling 7 - Administration | Green Office

Honda is focused in environmental preservation measures when managing its business, aiming to reduce the impacts of its administrative activities in nature. Due to the dealer network’s dedication to the Green Dealer program, a variety of waste generated in the provision of services started to be correctly discarded. Check out the results: Correctly disposed waste – Automobiles

2009 2010 2011 2012 2013 ACCUMULATED Administrative Headquarters - São Paulo (SP) The Administrative Headquarters of Honda South America Tires (kg) 1,072 4,280 8,328 40,184 195,196 249,060 is located in Sao Paulo (SP), in a modern building that favors the utilization of sunlight, with automated lighting and air conditioning systems. It gathers the company’s main Batteries (unit) 1,518 6,073 11,808 67,857 39,014 126,270 administrative and commercial departments, and counts on approximately, 1200 associates. In order to decrease energy consumption, an automated Solid waste 162,642 650,567 1,264,992 1,135,222 1,442,008 4,655,521 (kg) system turns off all the lights of the building during lunchtime and at the end of the shift. The air conditioning system is also intelligent, only enhancing its functioning Oil, lubricants 342,601 1,370,403 2,664,672 2,769,198 2,709,410 9,856,284 when the external temperature is raised. Collector bins are and fuels (L) placed all through the company to encourage recycling. In addition to promoting correct waste disposal practices, Sede da Honda South America – São Paulo (SP) that action also helps generating income to the recycling Correctly disposed waste – Motorcycles cooperatives involved with the process. The space also has a container for the correct disposal of batteries. Regarding 2008 2009 2010 2011 2012 2013 ACCUMULATED its vehicle fleet, the company has promoted a change from automobiles exclusively powered by gasoline to vehicles using Flex technology, less polluting. Tires (kg) 17,748 36,443 70,993 92,291 89,960 285,029 592,464

Batteries (unit) 1,102 2,262 4,407 5,729 138,072 173,315 324,887 Honda Motor de Chile

Solid waste 327,555 672,580 1,210,221 1,703,287 2,097,953 1,494,500 Honda office in Chile employs about 70 employees and occupies (kg) 7,506,096 a whole floor in a building located in the capital, Santiago. The company has worked with import and sales of motorcycles, Oil, lubricants 1,454,304 2,986,171 5,817,216 7,562,381 5,166,412 5,011,355 automobiles and power products since its inception in 1998. and fuels (L) 27,997,839 In 2010, the unit created the Environmental Committee, with the purpose to establish sustainable actions and programs in

CARTAZ_FINAL 02.pdf 1 30/08/13 11:48 the company. The group was responsible for the installation of selective collection bins, called Puntos Limpos. With this measure, Campaign: Making dreams even better it warranted through partnerships with local institutions, the proper disposal of materials for recycling, such as paper, plastic, Aiming to keep the focus of the dealers in the constant quest for environmental glass, batteries, oils, solid waste and hazardous waste generated by offices and also by the dealers in the country.

C Administrative Headquarters in Santiago – Chile

excellence, in 2013, an awareness campaign on sustainable attitudes was developed, M

CMY with the theme: “Making dreams even better”. The material delivered to Green Dealer K certified dealers comprises poster, button, informative stickers, tag handlebars, explanatory broadside, flyer, among others. After all, when you’re a friend of the environment, everyone wins.

87 88 HSA Administration | Green Office Honda Motor de Argentina The two Honda offices in Argentina, in Vicente Lopez and Pacheco, gather approximately 160 associates and concentrate administrative, sales and services and commercial activities. Seeking to optimize the consumption of electricity, in 2013, at 8 - Information Technology | the Administrative Headquarters of Vicente Lopez, control of air- conditioning temperature was implemented, limiting operation Green IT to a standard temperature of 24 °C and thus preserving the environment. Computer monitors are switched off automatically when more than 15 minutes without use elapse. The overall Honda premise of reducing the environmental impact in all its areas of business relies on a key partnership to be realized: On the other hand, computers go into standby after 30 minutes technology. The Information Technology area of the company develops a series of actions in order to offer next-generation technology of inactivity and sleep mode after 60 minutes without interaction. to employees in order to optimize the consumption of resources such as power and paper. 400 W sodium lamps were replaced by 200 W fluorescent models, more economical and efficient, providing the same brightness Administrative Headquarters in Vicente Lopes – Argentina with low electricity consumption. In order to reduce waste generation, the Administrative Headquarters has implemented a system to recycle cardboard Atmospheric emission reduction and paper, reducing the volume of waste. Through an outsourcing contract with a vendor, the data center Information Technology Department has also developed a study at the Administrative Headquarters of Honda in Sao Paulo, that created a printing center in each department, reducing the responsible for storing data from the network and systems, number of printers and electricity consumption. has promoted virtualization of 50% of the current capacity, and Another solution created by Honda’s Green IT in a global this indicator is expected to increase in the coming months. context, is the Web Conference system, in which the associate Honda del Peru With this measure, the advantages are huge, such as ease in does not need to move to the location of the meeting and The administrative headquarters of Honda del Peru was founded handling, gain of physical space, reducing the need for constant can attend the appointment from their own desk, using a in 1974 and is located in the capital, Lima. It occupies 3 floors of cooling (air-conditioning), safety, among other outcomes. The computer. The tool also allows you to share presentations and a building and employs about 110 employees. physical space of 400 m² the equipment held before the change documents through the internet with people inside and outside In 2013, a series of awareness-building campaigns were now boils down to 200 m², with the same service being offered, the company network. It can be used in notebooks, desktops conducted with employees, so they use electricity consciously, with the same quality and reducing power consumption. and tablets, without the need to book rooms and equipment. by adopting measures such as to maintain the temperature of In the future, this amount will boil down to two racks of physical Besides the considerable gain of time, the action does not the air conditioning at 24°C. Another measure was to optimize servers, which shall occupy only 2 m². The remainder of generate emissions from the displacement of employees. the illumination of corridors and areas with low concentration the information and systems will be stored virtually. Honda of people. As regards water consumption, besides awareness-building campaigns, new equipment was also installed to measure more accurately the consumption. A measure which helped reduce the volume of water used was the modification of the faucet valves, which are now automated and come with a device that controls the timing of water flow. Administrative Headquarters in Lima – Peru

Waste management

Another measure implemented in order to optimize person responsible for it goes to the machine and resource consumption and reduce waste generation enters their password. Only after this procedure the was the adoption of the controlled copy when printing. material is printed, promoting a huge reduction in the Since 2007, whenever a file is sent to the printer, the number of copies.

89 90 HSA Environmental awareness-building actions

Environmental awareness-building actions Moto Honda da Amazônia - Manaus (AM)

In addition to manufacturing and commercializing high quality and high technology products, and in order to provide joy to its clients, Honda is also engaged in environmental awareness-building actions. These ideals are based on the Honda Philosophy, which School Garden Latin American Conference on stimulates the development of healthy and positive relations between the company’s associates and the communities where it Environmental Preservation operates. It’s a participative and constant process, in which Honda strives to share experiences and convey values to the current and Many schools in Manaus take part in the garden project the next generations. to stimulate their students to be in touch with planting, in addition to teaching on the necessary cares during Honda supported the Latin American Conference on cultivation. Honda contributes by donating manure to a Environmental Preservation, a conjoint action with school, Escola Municipal Raul Veiga de Queiróz. the Brazilian Institute for the Defense of Nature. As a result of the partnership, Honda was honored with Honda Automóveis do Brasil - Sumaré (SP) the Certificate of Friend of Nature Company.

Honda Environmental Award

Created in 2008, at the automobile plant in Sumaré (SP), the En- ing and Machining sectors Vitória-Régia Environmental vironmental Award encourages and rewards the major initia- received the award in the tives of the employees with a focus on environmental preser- categories Gold, Silver and Education Program vation and optimal use of natural resources. In 2013, during the Bronze, respectively. 7th Environment Week, employees from Plastic Painting, Weld- The Vitória-Régia Environmental Education Program – Environmental Battalion develops environmental education and Trophies - Honda Environmental Award training of environmental protectors activities for 250 children from public schools in Manaus. In 2013 Honda supported the graduation of these students. Arbor Day Campaign Gardens from the School Garden project

With the intention of raise the awareness of our customers, ing a registration on the Honda Automóveis do Brasil has developed a campaign to Internet every customer EcoLife Project celebrate Arbor Day. With the theme: “It is arbor day, but can follow the planting you get the gift”, about 15 thousand customers who pur- and development of their Science Circuit (INPA) Honda takes part in a program to foster sustainable activities chased Honda automobiles after World Arbor Day were tree over time. in lakes PARU and CALADO (Manacapuru – AM), aiming at presented with a seedling planted by SOS Mata Atlântica Honda works in partnership with the National Research the environmental education of riverside communities. The in the city of Itu, in the State of Sao Paulo. After complet- Institute of the Amazon (INPA), promoting environmental communities were visited by 85 voluntary associates who awareness among the students of local public schools. The promoted many awareness-building activities on the important students are introduced to elements of local biodiversity, role played by those communities in promoting environmental Food waste in addition to the history and habits of indigenous preservation, among those activities, an Environmental Contest. communities. Visitors may also get to know animals from As an incentive to the project, Honda donated 3 stationary the region and take part in lectures on the importance of An internal campaign was created to educate employees consumption, encouraging engines, as well as educational kits and t-shirts to suit up the environmental preservation. about the importance of not wasting food from the cafete- them to help themselves teams. ria. With social appeal, the posters distributed where em- only what they intend to ployees pick their trays up sensitized people about over- consume.

First Fair of Solid Waste Products TV Show Isto É Manaus and Services in the Amazon With the purpose of strengthening the disclosure of their Recicladinho (The Little Recycling Boy), a journey through legends socio-environmental initiatives, Honda has broadcasted its Honda participated in the First Fair of Solid Waste Products activities, events and interviews at the tv show Isto É Manaus and Services in the Amazon. The company presented Aiming to develop environmental awareness in children at- Public Interest), and using tax incentives from the Rouanet - TV Em Tempo - SBT. visitors with its best practices and solutions for the tending schools in the region of Campinas, in partnership Law, Honda published: “Recicladinho, a journey through treatment and disposal of solid waste from production with Elus Ambiental, an OSCIP (Civil Society Organization of legends – Iara” in the year 2013. processes.

91 92 HSA Environmental awareness-building actions

Global Action Administrative Headquarters - São Paulo (SP) Honda has once again taken part in the Global Action, held at the Workers Club (Sesi). At the event, visitors were able to participate in recreational environmental activities for children, had their glycemic levels checked, learned how to cultivate home gardens, besides receiving 2000 vegetable seeds. There, 4 mil thousand coconuts were donated and Environment Week Honda 300 glucose kits were handed out to the volunteers so they South America could perform the glucose measurements. To celebrate the Environment Week, Honda promoted a number of awareness-building activities for its associates at its plants in South America. In 2013 the theme was the Participants of the Global Action rational consumption of electricity.

Philanthropic support Area of Environmental Citizenship Ecological Journal The fruit from Honda’s agricultural project are destined for During Children’s Week recreational activities were held charity institutions for homeless and needy children and for the dissemination of environmental education for the Honda believes that building a better future depends on elderly in Manaus (AM). Approximately 70,300 kg of fruit were children visiting the Area of Environmental Citizenship – sustainable attitudes put into practice today. Therefore, it delivered to these institutions in 2013. ECAM/VEMAQA supported by Honda. They received kits, broadened the scope of Ecological Journal, an environmental toys and participated in recreational workshops, which information publication created and distributed by Honda relied on the use of recycled material. Automóveis do Brasil (Sumaré-SP) since 2008 and that, starting in 2013, was distributed to all units in South America. The journal is a quarterly publication that features news about the environment, information about Honda’s sustainable projects, tips on environmental preservation and the most

N° 4 Honda South America Justice Planting Life Science Circuit important: the participation of readers. DEZEMBRO/2013 Canal de interação com o colaborador Sua criatividade vira notícia Enfeite ecológico: Confira o ganhador do concurso da edição anterior um presente para a natureza É voCê quem Fábio Donizete Travaioli, do Planejamento da Qualidade, recebendo o Publicação da Honda South America para todos os carregador de celular solar do Sr. Otávio Kiyoshi Mizikami, Diretor de seus colaboradores - Ano I - nº 4 - Dezembro/2013 Honda has supported the Science Circuit environment É chegada a época do ano em que as nossas casas Produção da Honda Automóveis do Brasil, por enviar a foto que está entram no espírito natalino. Confira uma dica onstrói Honda, in partnership with the Court of Justice of the State na capa desta edição. Na imagem ele e sua família estão plantando uma C simples para você decorar sua casa sem deixar de árvore, demostrando toda sua preocupação e envolvimento com a ser sustentável: preservação ambiental. Enfeite de pinha para Árvore de Natal o futuro Pág. 2 of Amazonas, has promoted project Justice Planting Life, project since the year 2001. Our goal is to educate the Materiais: Pinhas de tamanhos variados Pincel médio Tinta Acrílica Branca Glitter prateado e/ou translúcido community that surrounds the Bosque da Ciência on Pedaço de fita brilhante with the purpose of stimulating domestic planting, helping Passo a passo: Passe a tinta acrílica nas pontas das pinhas e com a tinta ainda molhada despeje pequenas quantidades de glitter por cima. Após a secagem, é só passar a fita pelo meio da pinha e to reduce environmental impact. Furthermore, lawyers, preserving this place. To that end, the company provides Sponsorship to the Programming colocar na árvore! Atitudes sustentáveis em casa Aqui vai uma ideia da nossa colega Mariana dos Santos, da HRB-M support in transportation and snacks for children during - Soumu Group, Moto Honda judges, public servers and other visitors learned about the da Amazônia Ltda., ela lixou e pintou caixotes de frutas e os transformou em um criado-mudo sustentável, com acabamento de rodízios de silicone e tampo de vidro. Uma solução de decoração Mariana recebe seu prêmio do Sr. Rodolfo César Barão, Gerente Geral de visits to the Bosque da Ciência that take place every last Recursos Humanos. importance of healthy eating in everyday life. Participants of TV Cultura economicamente viável e ecologicamente responsável. Como participar: Compartilhe sua ideia Regras para o envio da foto Saturday of each month. Envie sua foto no formato JPG, com tamanho acima de 1 mega, nome received seeds, fertilizers, seedlings of lettuce, scallions completo, e-mail, departamento e endereço da unidade onde trabalha Um convite à criatividade acaba de ser lançado para: [email protected] para celebrar o Natal. Aproveite materiais como latas, garrafas PET, revistas, entre outros itens Premiação para criar presentes ou enfeites diferenciados O vencedor ganhará um squeeze. (Foto ao lado) Through the Federal Act of Incentive to Culture (Rouanet e personalizados. Compartilhe com o jornal Observações EcoLógico, enviando uma foto da sua ideia. Não serão aceitas fotos de bancos de imagem. Caso apareçam pessoas and coconut, and informational brochures. Abuse da criatividade no reaproveitamento e na foto, será solicitado o preenchimento de um Termo de Autorização reciclagem de materiais que normalmente são de Uso de Imagem. A foto será escolhida por um grupo de gerentes e descartados. Aproveite para mostrar o artista diretores da área administrativa da Honda South America. que há em você! law), the company has sponsored tv shows Repórter Eco Prazo: 24/01/2014

Jornal EcoLógico é uma publicação da Honda South America para todos os seus colaboradores. Nesta edição: Edição e coordenação: Departamento de Gestão Ambiental e Sustentabilidade HSA - Tiragem: 12.000 exemplares Periodicidade: trimestral - Consultas, comentários ou sugestões, favor enviar para: Honda South America Iniciada a construção do Parque Eólico. Pág. 2 Rua Dr. José Áureo Bustamante, 377 - Santo Amaro - CEP 04710-090 - São Paulo-SP - A/C: Departamento de O compromisso da Honda com a Educação Ambiental. Pág. 3 and Planeta Terra at TV Cultura. Gestão Ambiental e Sustentabilidade HSA - e-mail: [email protected] The shows covered themes such as: water conservation, 4 Christmas and Sports Festival solid waste, preservation of the Amazon rainforest, clean energy, reduction of pollution and how the industries of the of Sustainable Development Industrial Pole of Manaus engage in defense projects of the Diversity of the Amazon Reserve - RDS do Tupé Amazon Forest.

As a result of another partnership between Honda and Aiming to help meeting Municipal Decree 8.044/2005 the Court of Justice of the State of Amazonas, a book of through sporting activities to ensure quality of life and environmental education aimed at children about the enhancement of the environment of populations at Culture, Art and Sustainability Amazon region was produced. Named “Diversity of the Comunidade da RDS do Tupé, Honda helped promote In 2013, Honda undertook project “Culture, Art and Amazon”, the story seeks to disseminate information and the event Christmas and Sports Festival of Sustainable Sustainability” through the Rouanet Law of culture incentive. knowledge about the region among children. Development Reserve, contributing with the donation of The action visited shopping centers in Sao Paulo, Campinas souvenirs for the children. (SP), Rio de Janeiro (RJ) and Manaus (AM). In these places, over 7 thousand children learned about the importance of their role in preserving the environment.

93 94 HSA Environmental awareness-building actions

Honda Motor de Argentina Honda Motor de Chile

Recycling Program with Environmental tips Eco-journalism Contest Eco Summit of Journalism

Hospital Garrahan Seeking to increase knowledge and Honda Chile promotes an Eco-journalism Contest, to + Creativity environmental awareness of employ- encourage and grant awards to the best articles on Since 2009, has promoted a solidarity and ecology cam- ees, all Honda units in Argentina have environmental issues. With this initiative, the company In December 2013, Chile held the paign to help the children in Hospital Prof. Juan P. Garra- developed several informative tips on seeks to promote press debate and value environmental first Eco Summit of Journalism han. The goal is to engage to the areas in teams to collect how to contribute to the preservation concern all over the country. + Creativity, promoted by Honda as much used paper and plastic lids from bottles they can, of the environment throughout the year. Motor de Chile, in partnership For example in March, they talked about which are then donated to the hospital’s recycling program, with Universidade Andrés Bello. conscious water consumption, in cele- and the funds are used in the treatment of young patients. bration of World Water Day. There, ideas about journalism In 2013, 3,163 kg of paper were collected, avoiding the and sustainable ecology were cut of 55 trees, and 1,233 kg of plastic lids were collected, presented and discussed. avoiding the emission of 2,219.40 kg of CO2. The meeting was attended by academics, businessmen, politicians and students of the World Environment Day university. th To celebrate the date, all employees of Honda Argentina 6 International Motor Show were invited to participate in a contest in favor of the environment, with the theme “Energy Savings”. Posters made Fanalca S.A. Aiming at contributing to environmental conservation from recyclable materials were made to disseminate the and at the same time to perform social work, the 31 proposed action: promoting a change in awareness re- tons of materials used to put together Honda’s booth garding energy consumption. at the 6th International Motor Show in Argentina were World Earth Day donated to social and educational institutions that have In Florêncio Varela, Honda participated in the Feria de In- In World Earth Day (April 22), Fanalca S.A. promoted an action coordinated by its 38 members of the Environmental Committee. recycled and reused them. terés Y Concientización Ambiental, held on Universidade Nacional Arturo Jauretche, being responsible for recre- The group members have developed an awareness-building campaign about 13 endangered species. At the time, 1,200 ational activities like musical theater and puppets, with a employees of the plant were divided into groups that sponsored an animal and then discussed measures and actions that focus on environmental awareness. During the event, 300 can prevent their extinction. young people vowed to the care and protection of the en- Sowing Awareness vironment. Aiming to instigate a change in environmental behavior among participants in the events sponsored by the company, the annual program “Sowing Aware- Environmental Awareness Day ness” served more than 8 thousand people in 2013. These visitors partic- In September, to celebrate Dia Nacional de la Conciencia ipated in educational activities about Ambiental, volunteers conducted an educational visit to Bio the importance of environmental pres- Parque Temaiken, with the presence of 29 children, ages 6 ervation through the project Camino de and 9 years old, of School number. 15 from Vicente López. La Vida, based on the company’s global The students participated in educational games and watched campaign “Blue Skies for Our Children”. a movie about conscious consumption of natural resources. The 2013 edition took place in three events: at Honda Sum- mer – Mar del Plata, at Expoagro and the 6th International Motor Show. Pioneers in Motion Program: United for Road Sustainability The program aims to encourage citizen participation by students from nearby schools to Honda units, through the content on environment care, commitment to community, education and traffic safety. In 2013, 24 schools participated, reaching 4,736 students.

95 96 HSA Acknowledgements

Acknowledgements Época Magazine Prize – Green Company Honda’s dedication to environmental preservation is recognized by renowned entities in Brazil. In 2013, some awards may be highlighted, such as: Honda Automóveis do Brasil and Motor Honda da Amazônia were the winners of another edition of the Época Magazine Prize – Green Company. The award is the result of a survey undertaken by Época Magazine in partnership with service provider PricewaterhouseCoopers, which highlights the Chico Mendes International companies with the best environmental practices in Brazil. Socio-Environmental Prize For the fifth consecutive year, Honda Automóveis do Brasil was awarded the Chico Mendes Socio-Environmental Re- sponsibility Prize, for being considered a sustainable com- Brazilian GHG Protocol Program pany and for contributing for environmental preservation. GHG Protocol is a tool used to understand, quantify and time. The award took into consideration the disclosure of manage GHG (greenhouse gas). It was originally developed in the CO2 emissions inventory in the three scopes reviewed the United States in 1998 by the World Resources Institute (direct emissions, indirect by purchase of energy and other (WRI) and today it is the most used methodology worldwide emissions). by companies and governments to conduct GHG inventories. FIESP Conservation and Water In 2008, the methodology was adapted to the national context Reuse Award by the GVces and by WRI in partnership with the Ministry of Environment, the Brazilian Business Council for Sustainable Honda Automóveis do Brasil was awarded an honorable Development (CEBDS), the World Business Council for mention in the eighth edition of FIESP Conservation and Sustainable Development (WBSCD) and 27 Founding Water Reuse Award, held in 2013. The winning project, Companies. “Reduction of Water Consumption through Reuse” allowed The implementation of the GHG Protocol methodology in Brazil a reduction in annual consumption of 21,180,000 liters of was adapted to the national context. The Brazilian Program water during the production process. organizes working groups from participating companies, for improving the methodology and development of new tools for accounting for GHG emissions according to the Brazilian 2013 2013 reality. For the first time, both Honda plants in Brazil received the VII AEA Environment Award Gold Seal, Moto Honda da Amazônia for the first time and Honda Automóveis do Brasil for the fourth consecutive Honda Automóveis do Brasil was honored with an honorable mention by the Brazilian Association of Automotive Engineering (AEA), During the edition of the VII AEA Environment Award. The construction of the wind farm in Xangri-lá with subsequent power self-sufficiency from the action was the purpose of the award. IBDN – Brazilian Institute for the Defense of Nature

Honda received from IBDN – Brazilian Institute for the De- fense of Nature – the Partner of Nature company certifi- Autodata 2013 Award cate, offered in recognition of commitment and responsibility to the social and environmental issues of the region of Manaus. Honda Automóveis do Brasil was awarded by the journalism team of AutoData Magazine as the most sustainable company in the Brazilian automotive sector in 2013. The construction of the wind farm in Xangri-lá with subsequent power self-sufficiency from the action was the greatest differential in the evaluation.

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