Honda North American Environmental Report 2008 Honda 2008 North American Environmental Report
Honda The 2008 North American Environmental Report covers Honda’s activities in the North American Environmental Report United States, Canada, and Mexico — including company policies, the overall direction 2008 of our environmental initiatives, and the environmental impact of our operations — for the fiscal year that began April 1, 2007, and ended March 31, 2008 (FY2008).
We Value Your Opinion We are interested in your response to this report, which will help us improve our reporting in the future. Please visit our Website www.corporate.honda.com to complete a survey.
Section One Management and Direction Section two Global Climate Change
A Letter from Our North American Chief Operating Officer 1 Addressing Global Climate Change 4 Environmental Management 2 Honda’s Voluntary Global CO2 Reduction Targets 5 Honda Environmental Statement 2 Honda’s Approach to Reducing GHG Emissions 6 Environmental Laws and Regulations 3 Honda’s Position on Climate Change Policy 12
Section THREE Reducing Honda’s Environmental Footprint
For the 2008 Report, we have adopted Honda’s Life Cycle Assessment (LCA) Model 13 Summary of Environmental Goals a life-cycle approach to the organization of and Actions in FY2008 14 materials and data concerning the environmental Product Development 16 impact of our operations in North America. Designing for the Environment 16 Reducing Substances of Concern 17 Product Environmental Performance 18 Automobiles 18 Development Fuel Efficiency 18 Application of Technology 19 Exhaust Emissions 20 End-of-Life Purchasing Powersports Products 21 Fuel Efficiency/Exhaust Emissions 21 Power Equipment 22 Administration Fuel Efficiency/Exhaust Emissions 22 Home Energy Cogeneration 22 Sales and Purchasing — Green Purchasing 23 Service Manufacturing Manufacturing — Green Factory 25 Production Activity 26 ISO Certification 26 CO Emissions 27 Distribution 2 Energy Consumption 28 Waste to Landfill 29 Water Use 30 This new organization reflects our focus on Air Emissions 30 Chemical Releases 31 a Life Cycle Assessment (LCA) model in the Distribution — Product Distribution 32 measurement of our environmental footprint. Sales and Service 33 End-of-Life — Product Recycling 34 Administration — Green Buildings, Green Office, and Land Stewardship 35
Supplemental Information
Environmental Technology Milestones 38 Environmental Community Activities 40 North American Corporate Profile 41 Honda 2008 North American Environmental Report A Letter from Our North American Chief Operating Officer Next year, we will mark the first 50 years of Honda’s operations in North America. As we consider this important milestone in our company’s history, we are fundamentally assessing the value that we bring to our customers and to the communities where we do business.
In this spirit, we are not simply reflecting on the pioneering and we are promoting similar efforts among our many business accomplishments of our past. Rather, in the area of partners in the region. In 2006, Honda became the first environmental responsibility, we are rededicating ourselves to automaker to earn a green building certification. Today, we have the goal first expressed by a group of young Honda engineers five facilities certified to the standards of the U.S. Green Building almost four decades ago — to use technology to preserve Council (the nonprofit organization dedicated to advancing “Blue Skies for our Children.” In short, we recognize that it is green building design and construction), including the our responsibility to help protect our environment and ensure automobile industry’s only Platinum-certified existing building. a sustainable future for personal mobility. At the same time, we are continuing our efforts to reduce waste and the use of potentially harmful substances. In 2007, six of our Two years ago, Honda became the first automaker to set 14 North American manufacturing plants were operating as voluntary goals for the reduction of CO emissions from both 2 zero-waste-to-landfill facilities. Total waste from automobile its products and production operations on a global basis. production was reduced 78% from 2001 levels. Based on this commitment, we are accelerating our efforts to advance our environmental performance, with a strong focus This 2008 North American Environmental Report addresses on the reduction of CO2 emissions that contribute to global these and the many other efforts being undertaken by Honda climate change. associates to reduce our environmental footprint in the region. Toward this challenging goal, we are working to reduce the Over the past half century, we have enjoyed tremendous environmental footprint of our products by further advancing growth in North America, and we are thankful for the support fuel efficiency and accelerating the introduction of alternative- we have received from our customers and society. But we fuel technologies. will not consider our next 50 years to be a success unless we are able to make further progress in the environmental Over the past year, we expanded the use of technology to make performance of our products and the operations that help V6-powered Honda and Acura vehicles more fuel-efficient. And bring them to market. Only in this way can we fulfill Honda’s early next year, we will further advance Honda hybrid technology environmental vision and our commitment to being with the introduction of a new, more affordable hybrid car. “a company that society wants to exist.” For the longer-term future, we remain committed to the Sincerely, development of fuel cell vehicle technology and to advancing this technology in the real world. In July 2008, we began leasing our next-generation FCX Clarity fuel cell car to retail customers in the United States as part of our global plan to lease 200 of these zero-emissions, hydrogen-powered vehicles over the next three years. Most of these vehicles will be placed in the hands of our customers in California, who live close to existing publicly accessible hydrogen refueling stations. Tetsuo Iwamura We are also working continuously to improve the energy Chief Operating Officer, North American Regional Operation efficiency of our factories, offices, and warehouse facilities, President & CEO, American Honda Motor Co., Inc.
Tetsuo Iwamura, COO of Honda’s North American Regional Operation, introducing the new FCX Clarity hydrogen- powered fuel cell car at the 2007 Los Angeles International Auto Show. Honda 2008 North American Environmental Report Environmental Management Honda has long viewed the preservation of the environment as a core management responsibility. Our efforts extend to all aspects of Honda’s business operations and involve associates at all levels of our organization.
Guiding Our Environmental Efforts
In June 1992, we established and announced the Honda Environmental Statement to define our commitment and to guide our efforts to address environmental issues.
Honda Environmental Statement
“As a responsible member of society whose We should pursue our daily business interests under the following principles: task lies in the preservation of the global 1. We will make every effort 3. As both a member of the to recycle materials and conserve company and of society, each environment, the company will make every resources and energy at every associate will focus on the stage of our products’ life cycle, importance of making efforts effort to contribute to human health and the from research, design, production to preserve human health and sales, to service and disposal. and the global environment, and will do his or her part to preservation of the global environment in 2. We will make every ensure that the company as effort to minimize and find a whole acts responsibly. each phase of its corporate activity. Only in this appropriate methods to dispose of waste and contaminants 4. We will consider the influence way will we be able to promote a successful that are produced through the that our corporate activities have use of our products, and in on the regional environment future not only for our company, every stage of the life cycle and society, and endeavor to of these products. improve the social standing of but for the entire world.” the company. D
World Environmental Committee
The World Environmental committee, established in March 1995, considers global plans in accordance with our business plans, determines environmental policies consistent with the company’s environmental mission statement, and conducts annual reviews of their implementation. With guidance from the World Environmental Committee, regional committees set goals and objectives for their respective regions. D
North American Environmental Committee
The North American committee serves as the coordinating body for the region — including the United States, Canada and Mexico. It is charged with promoting ways to minimize the environmental impact of every aspect of Honda’s operations in the region. Honda’s North American Environmental Committee comprises major Honda companies in the region:
Honda North America, Inc. Honda Canada, Inc. Honda Manufacturing of Alabama, LLC Honda of Canada Mfg. American Honda Motor Co., Inc. Honda of America Mfg., Inc. Honda Manufacturing of Indiana, LLC Honda R&D Americas, Inc.
Product Planning Recycling and Manufacturing Communication and Development Green Building (Green Factory) Coordinated by Coordinated by Coordinated by Coordinated by American Honda Motor Co., Inc. American Honda Motor Co., Inc. Honda of America Mfg., Inc. American Honda Motor Co., Inc. and Honda R&D Americas, Inc.
Improving In-use Fuel Efficiency Improving Energy Efficiency Enhancing Recycling Activities Product Information and Emissions of Manufacturing Reducing Substances Reducing Waste, Reducing Waste and Environmental Reporting of Concern Emissions, and Energy Use Toxic Substances
Improving Design For Recyclability LEED Certification Green Purchasing
Alternative-Fuel Vehicle Technology Honda 2008 North American Environmental Report
As outlined on the previous page, regional operations, including North America, are given broad authority and responsibility to plan and to act in accordance with Honda’s environmental vision to minimize the environmental impact of their local business activities. This includes efforts to reduce harmful emissions, to improve efficiency, and to minimize the production of waste material. Further, Honda makes every effort to mitigate environmental damage and to ensure compliance with all applicable environmental laws and regulations, and to initiate product updates, warranty extensions, and recalls when necessary.
Environmental Risk Management Honda considers risk management to be an integral part of environmental management. Honda’s approach to risk management is reflected in various activities. These include systems for preventing spills and releases, systems for reducing volatile organic compounds (VOCs) and other air emissions, and systems for recycling products, components, and manufacturing by-products, in order to minimize landfill waste. From long-term planning to daily operations, Honda makes efforts to understand the risk of environmental impact and seeks to make prudent decisions to minimize impacts wherever possible. Honda North America, Inc., a subsidiary of Honda Motor Co., Ltd., serves as auditor, helping to ensure that Honda’s various subsidiary companies and its affiliated suppliers in the North America region are in compliance with all applicable environmental laws and regulations. It also provides support to those companies in determining and assisting in the implementation of best practices for Honda’s environmental management activities in the region.
Environmental Laws and Regulations Regulatory compliance is fundamental to the production and in-use performance of Honda products, and to all of Honda’s operations in North America. All Honda companies have systems in place to ensure that their activities comply with all applicable legal requirements.
Product Recalls Honda’s policy on product recalls, including emissions-related recalls, is in accordance with the procedures of its Japan-based Quality Committee, which is composed of senior executives from various divisions of the company. The Quality Committee makes decisions about Honda products manufactured and sold throughout the world, relying upon recommendations from Honda experts in each region.
Corrective Actions in fy2008 In the fiscal year ended March 31, 2008, we initiated four corrective actions in the U.S. market: two Voluntary Emission Recall Reports (VERRs), one Product Update Report (PUDR), and one Warranty Extension Report (WER).
DATE DETAIL MODEL(S) UNITS 11/06/2007 VERR: Incorrect throttle bodies, with inadequate evaporative purge ports, were MY2005 130 installed on some vehicles at dealers to remedy a known defect (throttle position Acura RSX sensor function)
12/14/2007 VERR: Some fuel tanks developed a small crack at the air vent pipe due to MY2006-2007 25,422 vibration, resulting in gasoline leakage CBR1000RR (motorcycle)
7/11/2007 PUDR: On-board diagnostics (OBD) system may falsely detect catalyst MY2001-2005 Insight 3,755 deterioration and/or NOx adsorptive catalyst deterioration, due to inappropriate MY2003-2005 64,738 calibration of the OBD system Civic Hybrid 1/28/2008 WER: Engine speed may be higher than target rpm at high vehicle load, due to MY2003-2005 66,757 continuously variable transmission (CVT) belt slip Civic Hybrid
North American Environmental-Related Material Fines1
SUMMARY
DATE DETAIL 12/11/2007 Honda voluntarily reported labeling violations for about 4,000 small spark-ignited engines that were produced and imported in 2001. These engines, the GX22, GX610, and GX670 models, met all applicable emissions standards but did not have the required EPA compliance label. Honda reached a settlement agreement with the U.S. EPA in December 2007.
1 Material fines are defined as $100,000 or more by regulatory disclosure guidelines. Honda 2008 North American Environmental Report
Addressing Global Climate Change
Global climate change and energy sustainability are the two most serious and difficult environmental challenges facing society today. As the world’s largest manufacturer of gasoline-powered internal combustion engines, Honda recognizes its responsibility to help meet these challenges and is committed to continuing efforts aimed at minimizing
our environmental footprint, with a particular emphasis on the reduction of carbon dioxide (CO2 ) emissions.
A Complex Challenge and a Shared Responsibility
Addressing an environmental challenge as complex as global INDUSTRY: Motor vehicle manufacturers climate change requires the concerted efforts of industry, and energy suppliers must work to provide consumers with products that support the government, and consumers. Without the commitment of goal of reduced greenhouse gas emissions all three, significant progress will be difficult to achieve. (particularly CO2 as the predominant greenhouse gas) while meeting customers’ expectations for product performance — including safety, utility, comfort, quality Provide limited Offer and promote and reliability. market-based cleaner, more incentives to fuel-efficient products Consumers: Consumers must be willing promote consumer that meet customer interest in CONSUMER expectations for to purchase products that achieve lower more fuel-efficient product performance greenhouse gas emissions. products and value Government: Governments should adopt policies and incentives that promote the development and sale of products with reduced ADDRESSING greenhouse gas emissions. One means of GLOBAL CLIMATE accomplishing this is by offering incentives that CHANGE help to jump-start the market for new products that address critical environmental objectives GOVERNMENT INDUSTRY but may not yet be fully price- or market- Provide honest competitive. Honda supports such incentives and accurate feedback so long as they are limited in duration and based on technology and on performance, not tied to a particular market conditions technology. In addition, government-supported research into critical technologies, such as advanced batteries, hydrogen storage, and cellulosic-based biofuels, can be an important Adopt performance-based catalyst for the development of new regulatory policy technologies. Also, government grants should be awarded on the merits of the research, and the fruits of publicly funded research should be made widely available. Honda 2008 North American Environmental Report
Honda’s Voluntary CO Reduction Targets 2
Our overall goal is to develop products with the lowest in-use CO2 emissions manufactured
at plants with the lowest CO2 emissions intensity (emissions per unit of production). The greatest opportunity to reduce CO emissions from 2 Life-Cycle CO Emissions* Honda products will come by improving the in-use energy 16% 2 Q 78% Product In-Use efficiency of those products, which account for 78% of Q 6% Production 6% Q a Honda product’s life-cycle CO2 emissions. 16% Other Factors: • raw materials In May 2006, we established a series of voluntary targets • procurement • distribution to significantly reduce the fleet-average CO emissions 2 78% • service and disposal
of Honda products and the CO2 emissions intensity of *Based on estimates by the production operations, on a global basis, by 2010. American Council for an Energy Efficient Economy (ACEEE).
Global CO2 Reduction Targets Results (from 2001 baseline)
DOMAIN SEGMENT 2010 FY2001 FY2007 FY2008 SCOPE OF TARGETS
6.0% Auto Reduction Automobiles sold in Japan, from 2001 North America, Europe/Middle East/Africa, % baseline 10 100.0 94.0 Asia/Oceania, China, South America (per g/km) (more than 90% of Honda’s worldwide 94.0 automobile sales)
11.2% Motorcycles sold in Japan, Powersports Reduction North America, Europe, Thailand, from 2001 % baseline India, China, Indonesia, Vietnam, Brazil, Product 10 100.0 86.8 the Philippines, Malaysia, Pakistan (per g/km) 88.8 (more than 90% of Honda’s worldwide motorcycle sales)
9.7% Power Equipment Reduction from 2001 All worldwide power equipment % baseline 10 100.0 93.1 product sales, excluding outboard (per kg) marine engines 90.3
7.2% Auto Reduction from 2001 % baseline 10 100.0 91.2 (per unit) 92.8
41.0% All manufacturing by Powersports Reduction Honda Motor Co., Inc., and from 2001 % baseline 74 other Honda Group Production 20 100.0 70.8 companies that assemble (per unit) Honda products and major 59.0 components
Power Equipment 112.3
% 20 100.0 103.8 12.3% (per unit) Increase from 2001 baseline
1 We attained a 11.2% reduction in FY2008. We will strive to achieve additional CO2 reductions.
2 Despite an increase in the energy- efficiency of automobile production in FY2008, per-unit CO2 emissions from automobile manufacturing rose because of increased production activity in regions
with more CO2-intensive methods of energy production.
3 Although we have surpassed our target, we foresee an expansion of production in a region where CO2 emissions are relatively high. We will strive to maintain the target level and achieve an even greater reduction by 2010. 4 Higher per-unit emissions in Power Equipment production can be attributed to larger and more feature-rich new products and to fluctuations in production volumes. Honda 2008 North American Environmental Report Honda’s Approach to Reducing Greenhouse Gas Emissions
No single technology holds the key to our energy future. Meeting society’s rapidly expanding demand for transportation energy and
curbing the growth in global CO2 emissions will require the rapid development and implementation of as many market-viable technologies as possible.
Honda’s Multiple Pathways Approach to CO2 Emissions Reduction Honda has developed a strategy that encompasses multiple technology pathways and that seeks to address in a comprehensive fashion the challenges associated with the deployment of new energy and vehicle technologies. What follows is a visual representation of Honda’s effort for today and
the future to reduce CO2 emissions and promote a more sustainability energy future.
CO 2 EMISSIONS REDUCTIONS and ENERGY SUSTAINABILITY
Honda’s efforts TECHNOLOGIES Now Future include:
Innovative Lightweighting Construction Aerodynamic improvements
the development Fuel-e cient 4-valves per cylinder of more Engines fuel-efficient Variable valve timing and lift control (VTEC ) engines Cylinder deactivation (VCM) Advanced transmissions Clean diesel (i-DTEC) Advanced Combustion including HCCI1 the advancement Alternative CNG ... from low- or no-carbon sources of real-world Fuels Hydrogen ... from renewables alternatives to gasoline Biofuel ... from cellulosics1 Electricity ... from low- or no-carbon sources
Drivetrain Hybrid (IMA) Advancements Fuel Cell2 Battery EV and Plug-in HEV1
research into Energy and Honda Solar Cells new means of Infrastructure Fuel cell vehicle home refueling (Home Energy Station)1 energy production and distribution Stationary Home heat and electricity cogeneration (MCHP) Sources Transportation — more energy-e cient distribution of products and parts Manufacturing — more energy-e cient production of products and parts
1Currently undergoing research and development 2Currently undergoing research and development and deployment Honda 2008 North American Environmental Report
Lightweighting
Advantage: Advanced materials such as aluminum and Accord and Civic, our two top-selling models in the region, each high-strength steel can be used to improve fuel economy and have bodies composed of approximately 50% lighter weight high performance while helping to enhance safety. In general, a 10% strength steel, and the body of the 2009 Pilot The 2009 Pilot uses more reduction in vehicle weight results in about a 6.5% increase in is 52% lighter weight high-strength than four-times as much high-strength steel as fuel economy at constant performance levels. Lightweighting is steel, compared with the preceding model. It particularly important to offset the weight of added safety features. 13% for the outgoing also uses aluminum to model. reduce body weight Challenge: Reducing the cost and energy impact of production, while enhancing safety. and improving the manufacturability of lighter weight materials. Illustration colors denote Our effort: Honda is ambitiously applying lightweight use of aluminum and materials, such as aluminum and high-strength steel, to minimize high strength steel: or eliminate weight increases. In FY2008, every engine that P Aluminum P 980 grade steel
Honda built was made of aluminum. We have also been actively h P t 780 grade steel
increasing the use of lightweight materials in vehicle bodies. eng P tr 590 grade steel ng s Aluminum body panels are employed in the 2008 Acura MDX and P i 440 grade steel eas RL, and Honda Pilot. Also, high-strength steel is being applied in P r 340 grade steel nc i significantly higher amounts on many new models. The current P 270 grade steel
Fuel-Efficient Engines
Honda Gasoline Engine Technologies Advantage: Broad market acceptance and well-established service support network and refueling infrastructure. Challenge: Achieving significant further gains in fuel efficiency while maintaining reasonable cost for the customer. OUR EFFORT: Honda is pursuing many advancements in powertrain fuel efficiency, several of which are summarized below.
technology detail Variable Cylinder Management™ Second-generation VCM, with three-, four-, and six-cylinder modes, has been applied to four (VCM™) cylinder deactivation technology Honda models — to 2008 and newer Accord V6 Sedans, Accord V6 Coupes and Odyssey minivans, and to the 2009 Pilot sport-utility vehicle, introduced in May 2008. O V6-powered 2008 Accords use an advanced i-VTEC valvetrain, a 5-speed electronically controlled transmission, and second-generation VCM technology with the ability to run on just three or four of its six cylinders under light engine loads.
i-VTEC™ i-VTEC™ engine technology, which provides for variable valve timing, duration, and lift for improved performance and fuel efficiency, is being applied to virtually all Honda and Acura automobiles. Continuously Variable Transmission The Civic Hybrid is equipped with a CVT that optimizes transmission ratios for improved (CVT) fuel efficiency. 5-speed electronically controlled automatic All Honda and Acura automobiles equipped with automatic transmissions are using transmissions (5AT) electronically controlled 5AT technology for improved performance and fuel economy. Incremental engine improvements Reducing friction losses with technologies such as offset cylinders and engines designed to work with low-viscosity oil. Homogenous Charge Compression Ignition Honda is intensively researching HCCI, which has a much higher heat release rate than (HCCI) conventional spark ignition, lowering heat losses and increasing overall efficiency.
Honda Diesel Engine Technology
Advantage: 20% -25% higher fuel Our Effort: We will apply the next generation of Honda 4-cylinder clean diesel technology efficiency than gas-powered engine. on existing Honda and Acura models in the United States and Canada within several years. The new i-DTEC clean diesel engine will achieve U.S. EPA Tier 2 Bin 5 emissions levels. Challenge: Reducing NOx emissions to stringent regulatory levels, and addressing U.S. consumer perceptions of diesel vehicles as lower performing and inconvenient to refuel. Honda 2008 North American Environmental Report
Hybrid Electric Vehicles (HEVs)
The 2008 Civic Hybrid employs fourth-generation Integrated Motor Assist (IMA) hybrid technology mated to a highly efficient 1.3 liter i-VTEC engine and a continuously variable automatic transmission (CVT).
Advantage: The capture and reuse of braking energy, along affordability for the consumer, which we believe are the keys with engine shut-off at idle, and the potential for engine to broader market acceptance of hybrid technology. In 2009, we downsizing, provide for significant increases in fuel efficiency. will introduce a new purpose-built hybrid car, with good family utility, at a price below that of the current Civic Hybrid. It will be Challenge: Reducing technology cost and improving value followed within several years by a new sporty hybrid car based for the customer. on our CR-Z concept. With the introduction of these new models, Our Effort: Honda introduced the first gasoline-electric hybrid we will target a more than fourfold increase in the annual sales vehicle to consumers in North American when we launched of Honda hybrid vehicles in the United States. the Honda Insight in the U.S. in 1999 and in Canada in 2000. Since then, we have continued to advance our Integrated Motor Assist™ (IMA) technology with a focus on efficiency and
Battery-Electric Vehicles (BEVs)
Advantage: Use of energy generated off-board as a New lithium-ion battery chemistries show potential for power source. much-improved power and durability, but progress in energy density and cost is far more limited. In terms of their impact Challenge: Lowering battery cost, improving battery on greenhouse gas emissions, BEVs will be best suited to areas performance and durability, and reducing stationary-source with low-carbon electricity production from such sources as CO emissions from coal-powered electricity production. 2 hydroelectric, solar, wind, natural gas, and nuclear energy. BEVs Batteries for use in battery-electric vehicles, whether in a charged with electricity generated in a coal-fired energy plant or dedicated battery-only or plug-in hybrid application, need high other carbon-intensive production process may have limited or energy storage to support extended operation in electric-only no positive net impact on well-to-wheel CO emissions. mode. BEV batteries are very different from HEV batteries, which 2 capture regenerative braking energy to assist with acceleration Our Effort: Our research and development of BEV technology but do not need a high level of static energy storage. Also, is focused on improving the energy density, durability, and BEV batteries must operate in the much more technologically safety of the battery. hostile environment of constant deep charges and discharges. Honda 2008 North American Environmental Report
Natural Gas
Advantage: Natural gas is a viable near-term alternative Our Effort: The Civic GX is the only dedicated natural to gasoline as a transportation fuel. With only 75% of the gas-powered passenger vehicle available from a major tank-to-wheel CO2 emissions of a gasoline-powered automobile automaker in North America. Traditionally, natural gas vehicles (on a gallon-equivalent basis), it provides an immediate were available only to fleet operators, because of the need opportunity to displace petroleum and to significantly reduce for a centralized fueling operation. Honda has extended the greenhouse gas emissions. The Civic GX is also the only accessibility of this technology to consumers through the vehicle certified by the EPA to meet both federal Tier 2-Bin 2 deployment of a home-based refueling device known as Phill™ and Inherently Low Emission Vehicle (ILEV) zero evaporative (pictured at top left) manufactured by FuelMaker Corporation emission certification standards. and marketed through Honda dealerships. In 2007, Honda expanded marketing of the Civic GX to 20 Honda dealers in Challenge: Limited driving range, vehicle cost, and limited New York state and to additional markets in California. availability of vehicle refueling options.
Biofuel
Advantage: Biofuel-powered vehicles offer significant The Ideal Biofuel opportunities to displace petroleum and to reduce greenhouse gas emissions. • reduces greenhouse gas • is compatible with all current and emissions throughout the legacy vehicles and small engines Challenge: Sustainable and economically viable production entire lifecycle • is transparent to the consumer of biofuel, and its economical use with existing products. • does not harm the environment in terms of price, performance The net energy benefits of corn-based ethanol, depending through secondary effects such as and availability on production and distribution methods, may be marginal biodiversity loss • is sustainable and can be at best; and the use of corn for fuel purposes can have many • does not affect the price or transported using the existing availability of food pipeline and fuel pump unintended consequences. The supply of corn-based ethanol infrastructure can be blended into the U.S. gasoline supply at 10% levels (E10 gasoline). Testing is needed to ensure that higher blends, up meeting our future energy needs. Recent progress on U.S. to 20%, do not pose problems for the performance of existing standards for biodiesel blends could improve the availability vehicles and small engines. Higher blends may require even of a high-quality fuel for the North American marketplace. greater production of ethanol from grains such as corn. They Before the U.S. commits itself to any particular biofuel, may also require a separate distribution infrastructure and including higher blends of ethanol, additional research and they may only work in specially designed vehicles. In addition, development is needed to identify more sustainable and ethanol has only about two-thirds the energy content of economically viable feedstocks and production processes. gasoline, leading to corresponding decreases in fuel economy Our Effort: All Honda and Acura automobiles, as well as all and driving range at higher-level ethanol blends — raising motorcycle and power equipment products, are capable of questions about consumer acceptance. operating on E10. We continue to research the feasibility of There are other promising biofuels that do not have the higher blends, including “mid-level” blends such as E15 or E20. inherent deficiencies of ethanol and may prove to be superior Honda, in partnership with the Research Institute of Innovative alternatives to gasoline. Technology for the Earth (RITE), is also conducting research into Biofuels for diesel vehicles, such as biodiesel and renewable the efficient production of ethanol from cellulosic feedstocks. diesel, have a role in reducing greenhouse emissions and in 10 Honda 2008 North American Environmental Report
Hydrogen Fuel Cell Our Effort: We are accelerating the development of the hydrogen-powered fuel cell car as the ultimate solution for Advantages: Fuel cell vehicles have more than three times a clean and sustainable mobility future. In November 2007, the tank-to-wheel energy efficiency and three times the fuel we took a major step forward with the introduction of the economy of conventional gasoline-powered vehicles, and can FCX Clarity, a next-generation fuel cell car with performance, reduce greenhouse gas emissions by as much as 60% compared space and comfort on par with a gasoline-powered sedan in with a gasoline-powered car — even when using hydrogen the 2.0-liter engine range. In July 2008, we began leasing the reformed from natural gas. FCX Clarity to individual retail customers in Southern California, Challenge: Technology cost, hydrogen production and storage, who live and work near existing, publicly accessible hydrogen and limited hydrogen refueling infrastructure. refueling stations.
Honda V Flow fuel cell stack
Many of the major advancements to the zero-emissions FCX Clarity Stack output: 100 kilowatts (kw) are based on the entirely new Honda V Flow fuel cell stack. This more Motor Output: 100 kw (127 hp) Battery: Lithium Ion compact, powerful, and efficient stack fits into the center console Hydrogen Storage: 171-liter tank at 5,000 psi of the car, creating the first FCV with a full-size cabin and low-floor Range: 280 miles1 sedan-style platform. The FCX Clarity is also the first fuel cell vehicle Fuel economy: 72 miles/kg-H21 (gasoline gallon equivalent) built from the ground up as an FCV. Major improvements over the Seating: Four adults current-generation FCX include: Special features: Application of Honda biofabric, made from plant material, to interior surfaces (seat fabric, Performance Attribute Improvement (vs. previous FCX) armrests, and door linings) Fuel Efficiency Up 20% to 72 miles/kg-H21 (gasoline gallon equivalent) Driving Range Up 33% with only a 10% increase in fuel tank storage capacity (up 59% from the first FCX) Fuel Cell Stack Size Down 20% and weight down 30% Subfreezing Start-up -20F° 2(versus -4F° on previous model)
1Based on official EPA-estimated combined fuel economy and driving range. 2Not applicable to vehicles being deployed in Southern California.
Hydrogen Production and Distribution
Although the FCX Clarity represents a substantial step forward in fuel cell vehicle technology, the ultimate success of the fuel The fourth generation Home Energy Station cell vehicle will depend on the ability to produce, distribute is being tested at and store hydrogen fuel. Honda’s experimental Home Energy Honda R&D Americas, Station (HES), created in partnership with Plug Power Corp., state-of-the-art hydrogen refueling station in is in its fourth generation of development. Using natural gas Torrance, California. as its energy source, the Home Energy Station is designed to provide a home-based refueling solution that produces enough
hydrogen to power a fuel cell vehicle while generating enough heat and electrical energy for an average home. In 2007, we began operation of a fourth-generation unit that is 70% smaller1 with increased fuel efficiency and the integration of the gas purification and electric power generating components.
1 Compared to first-generation Home Energy Station Honda 2008 North American Environmental Report 11
Hydrogen Production from Renewable Energy
We are also experimenting with a solar-powered station, which extracts hydrogen from water through electrolysis. An experimental solar-powered hydrogen station has been in operation at Honda R&D Americas’ Torrance, California, campus since 2001. The station uses Honda-developed thin film solar cells to power a highly efficient electrolyzer that extracts
hydrogen from city-supplied water. This process emits no CO2 and demonstrates the potential for producing hydrogen from renewable energy sources in a wholly carbon-free energy cycle. Hydrogen also can be produced from biomass or as a byproduct in the biofuel production process. Honda is exploring this approach to producing hydrogen because it represents a
Honda solar-powered hydrogen refueling station, using Honda-developed greater per-mile benefit to CO2 emissions reduction than using thin-film solar cells that require half as much energy to manufacture as biomass-produced alcohol in a flex-fuel vehicle. conventional crystalline silicone cells.
stationary sources
Home Energy Although Honda is first and foremost a mobility company, our R&D activities also include new energy technologies The freewatt™ micro-combined for stationary sources. Honda and technology partner Climate heat and Energy, LLC, have collaborated on a micro combined heat power system, and power (MCHP) system for home use. The system, called using Honda cogeneration freewatt,™ supplements traditional natural gas heating systems technology, is with technology that produces heat and electricity for the being marketed home, reducing CO emissions by as much as 30% compared to to consumers 2 in the a conventional 80-percent-efficient home heating system. The Northeastern electricity can be consumed by the homeowner or sold back to United States. the grid in areas where net metering is available. The system is currently being marketed in Massachusetts and New York.
Manufacturing
We are striving to reduce the energy and CO2 emissions intensity of our manufacturing operations by improving process energy efficiency and using renewable energy. As more energy-efficient alternatives for equipment are developed, we try to utilize those alternatives for equipment replacement and renewal, and for new equipment installations. We are also working to use less energy — operating with less variability, ensuring that requirements are met and not exceeded, and designing equipment that can be easily shut down when not in use. We also believe that renewable energy should be part of our energy portfolio and have initiated study and pilot projects to evaluate Large compressed air pumps at the East opportunities for renewable energy use at our manufacturing sites. Liberty Auto Plant have We have also created an inventory of direct and indirect emissions been outfitted with new from manufacturing activity for all six greenhouse gasses as identified controls to operate more efficiently. by the World Resources Institute (WRI)/World Business Council for Sustainable Development (WBCSD) Greenhouse Gas Protocol. 12 Honda 2008 North American Environmental Report Honda’s Position on Climate Change Policy
Honda is committed to pursuing national policy initiatives that are technically feasible and competitively fair, and that lead to greater fuel efficiency and reduced greenhouse gas emissions.
Honda Supports New Federal Fuel Economy Standards Beginning in 2005, Honda encouraged the U.S. government to adopt higher fuel economy standards and worked with Congress for the adoption of the new nationwide Corporate Average Fuel Economy (CAFE) requirement by 2020. The law requires attribute-based standards, which means each manufacturer will have a different overall fuel economy requirement based on the size of vehicles in its fleet. Because our average vehicle size is smaller relative to some other manufacturers, Honda will be required to attain an even higher fleet-wide average than some competitors. Although the United States, Canada, and Mexico are sovereign nations, each with its own traditions, processes and politics, Honda strongly urges harmonization of regulations among countries and within North America. The motor vehicle industry is global: Vehicles are routinely built and distributed worldwide. Inconsistent policies will result in inefficiencies in the production process and complex product development challenges. Similarly, standards should be national rather than regional, within each country.
Prominent Public Policy Initiatives There are numerous policy options available to governments that want to address climate change. Honda’s position on some of the most prominent is as follows:
Initiative Honda’s PERSPECTIVE Motor Vehicle We have supported aggressive national fuel-efficiency standards. In adopting such Fuel Efficiency Standards standards, governments must be cognizant of lead-time requirements, technological realities, and market demands.
Incentives Financial incentives can be constructive in stimulating nascent and expensive technologies, such as fuel cell vehicles. Incentives should be limited in duration and be based on performance.
Feebates A properly constructed national feebate system (a federal government program of rebates and fees) targeted at new vehicle manufacturers can be effective in accelerating the market introduction of new fuel-efficient technologies.
Registries Any regulatory approach that is calibrated to baseline emissions requires registries that accurately reflect the current situation. Registries should be nationwide to ensure consistent and reliable reporting obligations.
Cap-and-Trade Any cap-and-trade system should isolate the auto sector from other sectors, because of the potential for double counting with fuel sector emissions and the unmanageable administrative burden. Additionally, a cap-and-trade system can severely prejudice manufacturers whose sales are expanding and provide a windfall for those with contracting sales.
Honda’s Position on California’s Proposed Greenhouse Gas Standards Because climate change has worldwide effects and greenhouse gas emissions can not be contained within any state or national border, Honda believes that GHG emissions from motor vehicles can be addressed successfully only at the national and international level. Equally important, there is no single solution akin to a catalytic converter (which reduces smog-forming exhaust emissions) available to reduce the level of GHG emissions from motor vehicles. As a result, the technology necessary to reduce GHG emissions is fundamental to the design of a vehicle and its powertrain. It is extremely difficult and not economically practicable to tailor fuel-efficient technologies to meet different requirements for different states or to market different vehicle types for specific states. Honda 2008 North American Environmental Report 13 Reducing Honda’s Environmental Footprint
Honda recognizes Life Cycle Assessment (LCA) as a critical tool for understanding the impact of our products and activities on the environment, and we are working to minimize that impact in virtually every aspect of our business — from product design and production all the way through to distribution, sales and service, in-use fuel efficiency and emissions, and finally the recycling of service parts and complete vehicles at the end of their useful life.
P Improving in-use fuel efficiency and emissions, reducing the use of toxic substances, and improving product recyclability in the design phase
P Improving Development P Promoting a parts and materials (In-Use Emissions and “green factory” approach recycling and Fuel E ciency) to the production reducing landfill and distribution of waste component parts End-of-Life Purchasing
Administration Reducing Reducing the environmental the environmentalfootprint footprint of Honda facilities and office operations Sales and Service Manufacturing P Reducing energy P Improving energy consumption, efficiency, minimizing emissions, and waste toxic emissions, and material from the reducing the production sales and servicing Distribution of waste materials of products in manufacturing
P Reducing CO2 emissions and waste from transporting products to dealers 14 Honda 2008 North American Environmental Report A Summary of Environmental Strategies, Goals, and Actions in FY2008
Our efforts to reduce the environmental impact of our operations in North America are guided by the following goals, and they are being implemented according to the following strategies.
l = achieved goal s = made positive progress toward goal n = did not achieve goal
For category Strategies Goals Actions in fy2008 Add’l Info
Reducing Automobiles Work with OEM parts Continue to reduce SOCs in l With the exception of one part from one supplier, Pg. 17 SOCs suppliers to reduce or Honda products eliminated the use of hexavalent chromium for eliminate the use of corrosion-resistance purposes potentially harmful Reducing Continue to reduce VOCs in l Introduced new Accord with low-VOC interior Pg. 16 or toxic substances VOCs Honda products
Reducing Continue to reduce the use of PVC l 10 of the 19 model year 2008 (MY08) Honda and Pg. 17 PVC in Honda products Acura models have less than a 1% concentration of chlorine in material that can end up in the wastestream as automotive shredder residue. Three more models will be added in the 2009 model year End-of-life Autos Work to improve end- Minimum 90% design recyclability1 for l Maintained 90% level of design recyclability for all Pg. 16 recyclability of-life recyclability of all automobiles sold in North America Honda and Acura autos sold in North America1 products in the design, Powersports Products and Minimum 95% design recyclability1 for l Maintained 95% level of design recyclability for all Pg. 16 development and Power Equipment all powersports products and power powersports products and power equipment sold in purchasing phases equipment sold in North America North America Fuel Efficiency Automobiles Improve fuel efficiency Increase CAFE 5% over 2005 levels s Increased Honda’s U.S. CAFE in model year 2007 Pg. 18 by 2010 (MY2007) to 29.5 mpg, a 1% increase over the MY2005 baseline. Advance alternatives Advance Honda hydrogen-powered fuel l Introduced FCX Clarity next-generation Honda Pg. 10 to gasoline cell vehicle and refueling technology fuel cell car with three times the fuel efficiency of
e n t a gasoline-powered automobile pm
o l Began operation of fourth-generation experimental Pg. 10 l
e hydrogen Home Energy Station (HES IV) v Expand market for natural gas-powered l Increased retail sales of Civic GX in New York Pg. 9 vehicles and California c t D e
du Powersports Products Improve fuel efficiency Continued incremental gains in the fuel n No new actions in FY2008 Pg. 21 o
r efficiency of powersports products P Power Equipment Improve fuel efficiency Continued incremental gains in the fuel n No new actions in FY2008 Pg. 22 (hours/gallon) efficiency of power equipment Exhaust Automobiles Reduce engine emissions All new Honda and Acura automobiles l All Honda and Acura automobiles released in the Pg. 20 Emissions meet or exceed U.S. EPA and Transport U.S. and Canada in FY2008 met or exceeded U.S. EPA Canada Tier 2 Bin 5 (LEV in California) and Transport Canada Tier 2 Bin 5 emissions exhaust emissions standards on an standards on an individual model basis, without individual model basis the use of fleet averaging Advance zero-emissions Continue to advance the performance l Introduced zero-emissions FCX Clarity fuel cell car Pg. 10 vehicle technology and market acceptance of alternative and announced plans to begin limited retail leasing fuel vehicle technologies in 2008 l Increased sales of the natural gas-powered Civic GX, Pg. 9 with Inherently Low Emissions Vehicle (ILEV) U.S. EPA emissions rating Powersports Products Application of 4-stroke Continued reductions in HC and NOx l 4-stroke engine technology applied to all Pg. 21 engines, PGM-FI, and emissions from powersports products powersports products including all off-road other advanced engine competition models technologies Power Equipment Application of PGM-FI Continued reductions in HC + NOx l Global fleet average HC and NOx emissions Pg. 22 and other advanced emissions from Honda’s global fleet reduced 32% from the FY2001 baseline engine technologies of power equipment products
1 Honda calculation based on the ISO standard 22628, titled “Road Vehicles Recyclability and Recoverability Calculation Method,” which bases its estimates on existing proven treatment technologies and takes into account the mass of materials recycled, reused, recovered for energy or otherwise diverted from landfill disposal. In addition to these guidelines, Honda’s calculation also takes into account recyclable mass within nonmetal shredder residue. Honda 2008 North American Environmental Report 15
l = achieved goal s = made positive progress toward goal n = did not achieve goal
For category Strategies Goals Actions in fy2008 Add’l Info l
g Green Promote third-party certification of suppliers to Increase the number of ISO 14001- 93% of key North American OEM suppliers and 85% Pg. 23
n Purchasing ISO 14001 environmental management standards certified suppliers of all North American OEM suppliers (up from 58% through communications, events, and recognition in FY2007) were third-party certified to ISO 14001 hasi
c of supplier achievements standards ur P
Environmental Ensure third-party certification of major Honda Achieve 100% certification of all major s 13 of 14 Honda plants certified to ISO 14001:2004 Pg. 26 Management manufacturing facilities to ISO 14001:2004 standards Honda plants in the U.S., Canada and standards; the Tallapoosa, Georgia, transmission Mexico plant is targeting certification by 2009 g
n l CO2 Emissions Improve energy efficiency and reduce energy loss Maintain inventory of greenhouse gas Maintained inventory of CO2 emissions from the Pg. 27 in product manufacturing emissions for all N.A. manufacturing consumption of purchased electricity and natural uri operations gas in all N.A. manufacturing plants. c t l Reduce energy intensity of Reduced CO2 emissions intensity (from electricity Pg. 27 ufa
n product production and natural gas) in automobile production 1.7% from
a FY2007 levels and 1.4% from the FY2001 baseline M Landfill Waste Reduce generation of waste material and Reduce waste to landfills 70% from l Reduced waste to landfills 35% from FY2007 levels Pg. 29 increase recycling FY2001 levels by FY2010 (excluding and 79% from the FY2001 baseline (excluding mineral waste) mineral waste) Fuel Efficiency Concentration on rail distribution and reductions Increase efficiency of Honda l Industry-leading 81% of automobiles were Pg. 32 in truck miles traveled through more efficient product distribution transported by train (more fuel-efficient than logistics truck or ship) l Utilized fleet of 400 fuel-efficient Auto Max rail cars, Pg. 32 reducing diesel fuel consumption by 531,048 gallons
(5,493 metric tons CO2) o n i l Completed $7 million modernization of Ohio Pg. 32 t automobile distribution facility, reducing
ribu fuel consumption by 2,436 gallons (25.2 t metric tons CO2) is D Waste Reduce waste in packaging and administration of Reduce product packaging l 100% of domestically-produced motorcycles, Pg. 32 product distribution ATVs, and personal watercraft were shipped in returnable crates Reduce waste from administration l Implemented new wireless yard management Pg. 32 system in Ohio and Alabama, eliminating 1,000 reams of paper annually Waste Adopt less wasteful processes and reduce use of virgin Reduce waste from sales and service l Established new electronic statement option for Pg. 33
c e and nonrecyclable materials administrative activities customers of Honda Financial Services division
rvi Reduce generation of waste and use of l Eliminated 1.45 million pounds of cardboard Pg. 33 virgin and nonrecyclable materials in through redesign of parts packaging and S e
d service parts consolidation of packaging operations n a l
s Implemented new service support program for Pg. 33 e Honda motorcycle dealers, reducing by 41% the
sal replacement and disposal of used motorcycle batteries Recycling Increase the number and type of remanufactured Increase sales of remanufactured l Added 32 new part numbers to list of Pg. 34 e
if components available for customer purchase components remanufactured components -L
f Reducing Increase separation and recycling of material in Reduce waste to landfills s Identified promising technologies for Pg. 34
- o Automobile shredder residue further research d
n Shredder E Residue Green Building Leadership in Energy and Environmental Design (LEED) Increase new and existing facilities l Three new U.S. facilities joined two existing Pg. 35 certification by the U.S. Green Building Council achieving LEED certification buildings certified to LEED green building standards, o n
i including first Version 2.2 Silver-certified data center t in the United States ra t l Three additional new facilities (two in the U.S. Pg. 35 is
n and one in Canada) are targeted to achieve LEED certification in 2009 dmi
A Energy Use Improve energy efficiency of Honda facilities Apply more energy-efficient lighting l Upgraded lighting systems in Irving, Texas, and Pg. 36 and HVAC systems Chino, California, service parts facilities 16 Honda 2008 North American Environmental Report
Addressing Product Environmental Performance in the Development Stage Product Development
End-of-Life Purchasing
Administration
Sales and Product Service Manufacturing Development Distribution
Honda views improvements to in-use fuel efficiency (to minimize 2CO output) and exhaust emissions as the two most significant opportunities to reduce the environmental impact of Honda products. We are also aggressively pursuing opportunities to reduce the use of virgin and nonrecyclable materials where technically and economically feasible, and to reduce or eliminate the use of potentially harmful substances in all of our products.
Designing for the Environment Environmental factors are considered early and in each phase including its impact at the end of its useful life. Accordingly, of the design and development of every Honda product. In our engineers take into account such factors as dismantling component design and in the selection of materials, we look for complexity, component remanufacturing, the minimization opportunities to reduce a product’s total environmental footprint, of substances of concern (SOCs), and shredder residue.
Product Recyclability
Honda has achieved and is committed to maintaining a minimum 90% level of design recyclability1 for all Honda and Acura automobiles, and a minimum 95% level of design recyclability for all powersports % % and power equipment products. All new Honda and Acura automobiles, beginning in 2004, have met or exceeded the 90 95 90% target. We will continue to look for new ways to improve All Honda and Acura automobiles All Powersports and Power Equipment the design recyclability of future products, in balance with other target a minimum 90% products target a minimum level of design recyclability. 95% level of design recyclability. critical considerations, such as quality, efficiency and durability.
Designing for the Environment Case Study: 2008 Accord The redesign of the 2008 Accord included a comprehensive effort to reduce the vehicle’s environmental impact. Honda engineers reduced the use of materials containing VOCs which could be emitted into the interior cabin of the vehicle, including low-VOC parts and adhesives for the sunroof, a low-VOC sealer for the front defroster, and low-VOC window glass adhesive, door hole sealant and wiring harness tape. In addition, alternatives to PVC such as thermoplastic olefin and thermoplastic styrenes for interior materials, and acrylic or urethane for the body undercoating, were utilized. As a result, the chlorine content of automotive shredder residue is less than 1%. The Accord also achieves a greater than 91% level of design recyclability,1 above the company’s 90% target for all new automobiles. The 2008 Honda Accord has a low-VOC cabin.
1 Honda’s calculation of product recyclability is based on the ISO standard 22628, titled “Road Vehicles Recyclability and Recoverability Calculation Method,” which bases its estimates on existing, proven treatment technologies and takes into account the mass of materials recycled, reused, recovered for energy or otherwise diverted from landfill disposal. In addition to these guidelines, Honda’s calculation also takes into account recyclable mass within nonmetal residue. Honda 2008 North American Environmental Report 17
Reducing Substances of Concern (SOCs) In keeping with Honda’s global policy to voluntarily reduce and control and mercury compounds, cadmium and cadmium compounds, substances considered harmful to people and the environment, in 2002 brominated diphenyl ether compounds (specified BDEs), and azoic we created a set of guidelines to minimize SOCs in Honda products compounds. In FY2008, we surveyed all of our North American assembled in North American. In 2007, we updated those guidelines, suppliers to assess their use of perfluorooctanesulfonic acid (PFOS) and which are now called the Honda North America Chemical Substance brominated flame retardants. As new substances are being regulated Addressing Product Standard. Honda works closely with its suppliers in the product design globally, Honda will revise its Chemical Substance Standard to ensure Environmental and part purchasing phases of product development to reduce or compliance with the strictest global laws and standards consistently Performance in the eliminate lead and lead compounds, hexavalent chromium, mercury throughout the company’s global operations. Development Stage
Substances of Concern Current Status Opportunities for Future Reductions Lead — used in electronic applications for its good melting characteristics, long-term stability, and vibration durability. Use in metal alloys for its superior machinability, strength, and fatigue resistance P Reducing use in electronics, light bulbs, and corrosion-resistant paints. P Working with individual suppliers to introduce lead-free circuit boards that meet P Replaced with nonhazardous materials in electrodeposition coatings and steel Honda’s requirements for durability and performance. bars, with the exception of contaminants. P Working to overcome strength and fatigue weaknesses when lead inclusions P Eliminated from automobile and on-highway motorcycle wheel weights and in the microstructure of the steel alloys are replaced with manganese sulfide replaced with a zinc alloy. (MnS) inclusions. Planning to introduce a lead-free ATV wheel hub by 2011. Hexavalent Chromium — used to protect exterior parts from corrosion P Working with suppliers since 2005 to switch to trivalent chromium and P By June 2008, all but one North American supplier had phased out all nonhazardous alternatives used for corrosion-resistant purposes; we set a hexavalent chromium used for corrosion-resistant purposes. target to complete this activity by the end of 2007. As of the end of 2007, 99% of suppliers had fully phased out hexavalent chromium. Mercury — used for bright and uniform illumination P Honda has never used mercury in switches, radios, or ride-leveling P Phasing in mercury-free displays using a new type of backlight, beginning with devices. However, Honda still uses very small quantities of mercury in new models introduced in model year 2010. high-intensity discharge (HID) headlights and in illuminated entertainment P Start to employ mercury-free HID bulbs in the next few years, as the remaining and navigation systems. technical challenges are overcome. P A closed-loop recycling system is employed for damaged or broken screens. P Honda advises and encourages dealers to comply with all relevant state regulations for proper management and disposal of mercury parts. Polybrominated Diphenyl Ethers (PBDEs) — used as a flame retardant and as a surfactant P Phased out the use of octa- and penta- PBDEs. Working with suppliers to verify P Working with suppliers to eliminate deca-BDEs from products when that these substances are no longer used in products. technically feasible. Perfluorooctane Sulfonate (PFOS) — used as a water repellent agent P Eliminated PFOS in all parts delivered to North American P Ensuring total elimination of PFOS by suppliers. manufacturing facilities. Polyvinyl Chloride (PVC) — used in sealants and interior materials to reduce weight and to meet high standards for durability, fade resistance, and other critical quality criteria P Working with suppliers to implement PVC-free technologies for components P Working to eliminate PVC used for underbody coating and weld sealer such as interior and exterior trim pieces, door sealants, adhesives, window applications from all North American manufacturing plants within two years. moldings, floor mats, and seat coverings. P Continuing to investigate effective alternatives to PVC for all paint department P Replacing PVC used in instrument panels, inner-door weather stripping, applications. We will begin to apply the technology once it has been proven. and shift knobs.
Honda Motor Co., Inc., Honda’s global parent company, established a global hazmat /recycling compliance team. Its goal is to ensure that Honda complies with the strictest regional hazardous material regulations and to enact policies to meet or exceed these regulations globally. The team consists of representatives from the Automobile, Power Equipment, and Powersports divisions, and representatives from the Purchasing, R&D, Manufacturing, and Certification departments of all six operating regions, including North America. With the implementation of the European Union’s REACH (Registration, Evaluation, Authorisation and Restriction of Chemicals) regulation, Honda Motor established a separate Global REACH Team within the Global Hazmat Compliance Team to manage all requirements related to that regulation.
Reducing PVC in Honda and Acura Automobiles
Honda is engaged in a comprehensive effort to significantly reduce the chlorine that ends up in automobile shredder residue (ASR), primarily by reducing the use of polyvinyl chloride (PVC) in its vehicles. • Ten of 19 Honda and Acura models sold in the U.S. have a less than 1% concentration of chlorine in materials that can end up in the wastestream as automotive shredder residue (ASR). They are the Honda Civic Coupe, Civic Sedan, Civic Hybrid, Civic GX, Accord Coupe, Accord Sedan, CR-V and Fit; and the Acura RL and RDX. • By the end of 2009, most Honda and Acura models sold in North America will have achieved this target for the reduction 2008 Honda CR-V is one of 10 Honda and Acura models with a of chlorine in automobile shredder residue. less than 1% concentration of chlorine in materials that can end up in the wastestream as automotive shredder residue. 18 Honda 2008 North American Environmental Report Product Environmental Performance | Automobiles
For more than 35 years, we have worked with a strong and continuous focus to advance the environmental performance
Environmental of our automobiles. It began in the early 1970s with the introduction of the Civic CVCC — the first vehicle to meet Performance of Honda and Acura U.S. Clean Air Act standards without the use of a catalytic converter — and has continued through many pioneering Automobiles accomplishments in improved fuel efficiency, reduced emissions, and advanced alternative fuel vehicle technologies.
Customers in North America purchased more than 1.85 million Honda and Acura automobiles in FY2008.
2008 Honda Civic 2009 Acura TSX
Honda and Acura Automobile Fuel Efficiency
Improving automobile fuel efficiency is the single best approach we can take to achieve significant near-term reductions in
CO2 emissions that contribute to global climate change. Through continuous effort and the broad application of leading-edge
technologies, Honda has maintained the lowest total fleet average CO2 emissions of any automaker operating in the U.S. over the past 15 years. Honda’s CAFE declined marginally from the 2002 to 2003 model year because of an increased ratio of light trucks to passenger cars in the fleet. Further increases in sales of light trucks since 2003 have been more than offset by technology and efficiency improvements.Honda’s CAFE for model year 2007 (MY2007) of 29.5 mpg was up 1% over the MY2005 baseline.
U.S. Car and Light Truck Canadian Car and Light Truck Fuel Economy (CAFE) Fuel Consumption (CAFC)
The U.S. Environmental Protection Agency (EPA) calculates “fuel economy” Transport Canada calculates “fuel consumption” by the amount of fuel by the amount of miles traveled per gallon of gasoline for cars and light consumed per kilometer traveled. Transport Canada does not issue a trucks and calculates a Corporate Average Fuel Economy (CAFE) number for combined number for cars and light trucks. The combined numbers both passenger cars and light trucks. We show the combined values here reported below were calculated by Honda, using Transport Canada car for comparison purposes. and light truck CAFC results along with available calendar year sales data.
32 10
30.2 9.3 29.8 30.0 9.2 9.2 30 29.5 9.0 9.0 29.2 29.2 8.9 29.1 29.1 More Fuel 9 E cient 8.6 Honda/Acura Industry Average 8.5* 28
26.7 8 7.6 26 25.8 7.5 7.5 25.4 7.4 7.4 7.4 7.3 7.4 Fuel Economy: MPG Economy: Fuel 25.1 24.8 24.7 24.5 24.6
Fuel Consumption: Liters/100 Km Liters/100 Consumption: Fuel 7 24 Industry Average Honda/Acura More Fuel E cient
22 6 MY00 MY01 MY02 MY03 MY04 MY05 MY06 MY07 MY00 MY01 MY02 MY03 MY04 MY05 MY06 MY07
* Preliminary estimate of MY2007 Industry Average Corporate Average Fuel Consumption Honda 2008 North American Environmental Report 19
Application of Technology for Fuel Efficiency and Reduced Emissions We are applying a broad range of advanced technologies to our and transmissions, along with advancements in the use full range of products in order to realize gains in fuel efficiency of lightweight materials, more aerodynamic vehicle bodies, and lower exhaust emissions for all vehicles. At the same time, low rolling resistance tires, and the further evolution of we are accelerating our efforts to develop and deploy new gasoline-electric hybrid and clean diesel powertrain technologies technologies that will allow us to further improve our products’ will all play critical roles in future improvements to our vehicle Environmental environmental performance. More energy-efficient engines fleet performance. Performance of Honda and Acura Technology Application, Emissions and Fuel Economy for Selected MY2008 Honda and Acura Automobiles Sold in the United States Automobiles
Electric Emissions EPA Fuel Economy Model Engine Trans Valvetrain VTEC VCM Power Steering U.S. EPA CARB City Hwy
Fit 1.5L I4 SOHC 5MT 16-valve VTEC P P Tier 2 Bin 5 LEV-2 28 34
Civic 1.8L I4 SOHC 5AT 16-Valve i-VTEC P Tier 2 Bin 5 ULEV-2 25 36
S Civic Hybrid 1.3L I4 SOHC CVT 8-valve i-VTEC P P Tier 2 Bin 2 AT-PZEV 40 45 c A R
r e g Civic GX 1.8L I4 SOHC 5AT 16-Valve i-VTEC P Tier 2 Bin 2 AT-PZEV 24 36 e n ILEV ass P
Accord Coupe 3.5L V6 SOHC 5AT 24-valve i-VTEC P P Tier 2 Bin 5 PZEV 19 28
Accord Sedan 2.4L I4 DOHC 5AT 16-Valve i-VTEC P Tier 2 Bin 5 PZEV 21 31 Honda
CR-V 2.4L I4 DOHC 5AT 16-valve i-VTEC P Tier 2 Bin 5 ULEV-2 20 26 4WD
Element 2.4L I4 DOHC 5AT 16-valve i-VTEC P Tier 2 Bin 5 LEV-2 19 24 4WD c k S Odyssey EX-L 3.5L V6 SOHC 5AT 24-valve i-VTEC P P Tier 2 Bin 5 ULEV-2 17 25 t R U t igh L Pilot 3.5L V6 SOHC 5AT 24-valve i-VTEC P MY09 Tier 2 Bin 5 ULEV-2 15 20 4WD
Ridgeline 3.5L V6 SOHC 5AT 24-valve VTEC P Tier 2 Bin 5 ULEV-2 15 20
TSX 2.4L I4 DOHC 5AT 16-valve i-VTEC P MY09 Tier 2 Bin 5 LEV-2 20 28 S c A R
r TL 3.2L V6 SOHC 5AT 24-valve VTEC P MY09 Tier 2 Bin 5 ULEV-2 18 26 e g e n
ass RL 3.5L V6 SOHC 5AT 24-valve VTEC P Tier 2 Bin 5 ULEV-2 16 24 P Acura
RDX 2.3L I4 DOHC 5AT 16-valve i-VTEC P Tier 2 Bin 5 ULEV-2 17 22 Turbo c k S t R U
t MDX 3.7L V6 SOHC 5AT 24-valve VTEC P Tier 2 Bin 5 ULEV-2 15 20 igh L
Selected Honda and Acura models: The Honda S2000 roadster is excluded based on very low sales volumes. i-VTEC is an advancement to the original VTEC technology that includes a range of both performance and efficiency enhancing technologies. 20 Honda 2008 North American Environmental Report
Automobile Exhaust Emissions
Honda has consistently played a leading role in reducing vehicle Compliance with Tier 2 Emissions Standards1 exhaust emissions, and in meeting and exceeding U.S. federal vehicle
100 100 100 emissions standards. Beginning with model year 2007 Honda and 100 99.9 REQUIREMENT Acura models, every vehicle sold in the United States and in Canada Environmental 79.6 meets or exceeds the U.S. EPA and Transport Canada Tier 2 emissions Performance of 80 75 Honda and Acura standards. Due to the difficult nature of these standards, automakers are 60 58.3 Automobiles 51.4 50 permitted to meet them by using a fleetwide average. All Honda and
40 Acura automobiles meet these standards on an individual model basis Phase InPhase % 25 without the use of fleet averaging. 20 16.1
0 MY02 MY03 MY04 MY05 MY06 MY07 MY08 1 The chart applies to vehicles of less than 6,000 pounds gross vehicle weight rating (GVWR). Light trucks with a GVWR greater than 6,000 pounds have a later phase-in Honda U.S. Vehicle Fleet period. All Honda and Acura vehicles, including the Ridgeline truck, whose GVWR is greater than 6,000 pounds, met the 2006 requirement two years ahead of schedule.
Honda Low-emission Classification in Mexico Double Zero Classification All new Honda and Acura cars sold in Mexico have been classified as Certification Period Model Double Zero (00) by Mexico City’s Hoy No Circula emissions control program. The Double Zero classification is given to vehicles certified as Certified for up to 6 years Honda Accord, Civic IMA, Civic Si, CR-V (recertification every two years) and Acura TL having low NOx emissions and high city fuel efficiency. Vehicles meeting this standard may be driven in Mexico City and its suburbs without Certified for up to 4 years Honda Fit, Ridgeline, Pilot, Acura RL (recertification every two years) and Acura RDX restriction. Many new models from other automakers received a Single Certified for 2 years Honda Odyssey and Acura MDX Zero classification, and so must be retested every six months.
ACEEE 2008 Environmental Performance Ratings The American Council for an Energy-Efficient Economy (ACEEE) highest overall green score. It was the eighth straight year that a released its 2008 vehicle green scores, an annual rating of Honda vehicle earned the highest green score and the seventh automakers’ U.S. vehicle fleets based on a single score that takes consecutive year that Honda vehicles held at least four of the top into account both vehicle exhaust emissions and greenhouse 12 positions. Below are scores for Honda’s highest-scoring gas emissions over the full product life cycle. The natural gas- models in each class in which we compete, as well as their powered Civic GX ranked first with the gasoline Civic, Fit and class ranking and the highest and lowest scores recorded Civic Hybrid joining it on the list of the 12 vehicles with the in each class.
Model Honda/Acura Best-In-Class Worst-In-Class Honda/Acura Green Score Green Score Green Score ACEEE Class Ranking
Fit 44 44 39 Superior Small Wagon
Civic GX 57 57 21 Superior Compact Car
Civic Hybrid 51 Superior
Civic 44 Above average
Accord Sedan (I4) 40 53 19 Above average Midsize Car
Accord Coupe (V6) 37 Average Honda CR-V 36 42 28 Average Compact SUV
Element 34 Average
Odyssey 31 33 29 Above average Minivan
Pilot 30 36 17 Above average Midsize SUV
Ridgeline 27 36 24 Below average Compact Pickup
TSX 36 57 21 Average Compact Car
TL 35 53 19 Average Midsize Car
RL 32 Below average Acura RDX 31 42 28 Below average Compact SUV
MDX 28 36 17 Average Midsize SUV Honda 2008 North American Environmental Report 21 Product Environmental Performance | Powersports Products
Honda strives to balance the demands of its powersports product customer, who typically seek greater performance, with society’s need for improved fuel efficiency Environmental Performance of Honda and reduced exhaust emissions, while also promoting responsible use of public lands. Powersports Products
Customers in North America purchased more than 400,000 Honda motorcycles, scooters, all-terrain vehicles (ATV) and personal waster craft (PWCs) for recreational and professional purposes in FY2007.
Honda U.S. Motorcycle Emissions for MY2007 Class HC HC+NOx CO
Honda1 EPA2 CARB3 Honda1 EPA2 CARB3 Honda1 EPA2 CARB3
I (50-169cc) 0.63 1.0 1.0 n/a 7.00 12.0 12.0
II (170-279cc) 0.78 1.0 1.0 n/a 8.36 12.0 12.0
III (>279cc) n/a 0.66 1.4 1.4 5.07 12.0 12.0
Off-road (all) 0.73 1.2 0.95 2.0 8.68 25.0 15.0
1Based on average 2007 model year U.S. EPA motorcycle emissions data 2U.S. EPA emissions standards for 2007 model year motorcycles 3California Air Resources Board (CARB) emissions standards for 2007 model year motorcycles
Honda has consistently met or exceeded U.S. EPA and CARB emissions requirements for on-road and off-road motorcycles. In MY2008, we exceeded both EPA and CARB Tier 2 requirements for HC, NOx and CO exhaust emissions, in part through the broad application of 4-stroke engine technology. In MY2008, we discontinued the use of 2-stroke engines in our competition models, completing our transition to 4-stroke engine technology throughout our powersports product lineup, including all motorcycles, ATVs, and personal watercraft. Globally, we are expanding the use of programmed electronic fuel injection (PGM-FI), catalytic converters, and other advanced engine technologies which provide additional opportunities for further improvements in motorcycle exhaust emissions and fuel In the 2008 model year, 100% of all Honda powersports products, including all competition off-road motorcycles, employed 4-stroke engine technology. efficiency in the future.
Efficient, Low-Emission Personal Watercraft
The 2008 Honda Aquatrax personal watercraft (PWC) is powered by an efficient, low-emissions 4-stroke engine that consumes less fuel than a comparable 2-stroke engine and achieves CARB three-star (ultra-low) emissions status, with 65% lower emissions than a one-star (low emissions) engine and 87% lower emissions than a conventional carbureted 2-stroke engine. Honda Aquatrax personal watercraft 22 Honda 2008 North American Environmental Report Product Environmental Performance | Power Equipment
Honda has worked continuously to improve the fuel
Environmental economy, and reduce the exhaust emissions and noise Performance of Honda Power Equipment of its power equipment products. We have led the industry in the application of cleaner, quieter and more fuel efficient overhead valve (OHV) 4-stroke Honda markets a complete range of engine technology, which has been applied to all power equipment Honda power equipment products for many years. products, including lawn mowers, pumps, generators, and marine engines for Global Power Equipment Emissions Performance commercial, rental and Power Equipment – residential use. The Global Fleet Exhaust Emissions (HC + NOx) Continuing its efforts to reduce hydrocarbons and NOx company also supplies contained in exhaust emissions, we reduced the global fleet- more than 2.3 million 100 32% average1 emissions of our power equipment products 32% in small displacement Reduction 80 engines annually FY2008 compared to the FY2001 baseline. Honda will continue to more than 2000 60 to strive for even cleaner power product exhaust emissions. original equipment manufacturers. 40 HC + NOx % HC + NOx 20 Lower Emissions 0 FY01 FY04 FY05 FY06 FY07 FY08 1 Includes all global Power Equipment products with the exception of outboard marine engines.
U.S. Power Equipment Engine Emissions
General-Purpose Engine Emissions Marine Engine Emissions California’s Air Resource standards. EPA emissions Honda marine engines are individually Board’s regulations for standards are expected to be certified below 2008 California exhaust small engine emissions are revised to match the more emissions standards. These same significantly stricter than those stringent CARB standards in engines are offered in all 50 states of the U.S. EPA. Though very 2011 and 2012. It is Honda’s in the U.S and in Canada. Honda close to the stringent CARB goal to be in compliance with outboard engines are therefore 65% standards in measurable the new, harmonized 50-state cleaner than what is required by the emission values, Honda Power standards. U.S. EPA and Environment Canada. Equipment’s series of small, New U.S. EPA standards, effective in general-purpose engines 2010, are expected to harmonize with met 2008 CARB exhaust California exhaust standards and will and evaporative emissions also introduce evaporative emissions standards through the use of requirements that phase in through averaging and banked credits. 2015. Honda marine engines already However, Honda’s entire small comply with California’s exhaust engine line substantially emissions standards and are expected exceeds 2008 EPA emission to meet the new evaporative controls.
Increasing Home Energy and Heating Efficiency In April 2007, Honda and technology partner Climate Energy In certain states, net metering allows homeowners to sell any LLC, began retail sales of the freewatt cogeneration system in unused electric power to their community’s power grid, which the northeastern United States. yields additional cost savings. The ultra-quiet micro-combined heat and power (MCHP) Consumers who installed the freewatt system can realize unit produces 3.26 kilowatts of heat and 1.2 kilowatts of electric a significant reduction in energy costs without changing power, helping homeowners to reduce their utility bills and their home heating habits. In addition, freewatt customers curb carbon dioxide emissions while improving overall energy can remotely monitor and change their heating use and efficiency and comfort. Test data from Climate Energy has temperature settings via personal computer, which further shown that when the freewatt system replaces a typical 80% enhances their ability to control heating costs. efficiency home heating system, homeowners can realize an
average 30% reduction in energy costs and CO2 emissions. Honda 2008 North American Environmental Report 23
Promoting a “green factory” approach to the production and distribution of component parts Product Development
End-of-Life Purchasing
Administration
Sales and Green Service Manufacturing Purchasing Distribution Global Power Equipment Emissions Performance Continuing its efforts to reduce hydrocarbons and NOx Honda works with more than 650 original equipment manufacturers (OEMs) in North America, encouraging contained in exhaust emissions, we reduced the global fleet- them to adopt a green factory approach to production of component parts by reducing their packaging waste, average1 emissions of our power equipment products 32% in adopting more energy-efficient processes, and adhering to ISO 14001 environmental-management standards. FY2008 compared to the FY2001 baseline. Honda will continue to strive for even cleaner power product exhaust emissions. Third-party ISO 14001 Certification of Suppliers North American OEM Suppliers ISO 14001-Certi ed Our “green purchasing” efforts in North America began in 1998 when we asked suppliers to our Ohio and Ontario, Canada, auto 100 plants to implement environmental management systems and 85% 80% 1 Includes all global Power Equipment products with the exception of outboard marine engines. to obtain third-party ISO 14001 certification. Initially, we focused 75 on the top 42 key suppliers. In 2005, our request was extended 58% 50% to additional key suppliers to the Lincoln, Alabama, automobile 50 Percent and engine plant. 25 Marine Engine Emissions In FY2008, 93% of key suppliers, including all original 42 suppliers, and 85% of all companies in Honda’s North Honda marine engines are individually 0 FY05 FY06 FY07 FY08 certified below 2008 California exhaust American OEM supply chain were third-party ISO 14001-certified. emissions standards. These same engines are offered in all 50 states in the U.S and in Canada. Honda outboard engines are therefore 65% Reducing Environmental Impact of Transporting Component Parts cleaner than what is required by the Even as we encourage suppliers to take leadership in plants once conducted its parts shipping independently, today U.S. EPA and Environment Canada. adopting green factory principles, we also strive to reduce the all of the plants are integrated in a single system that is geared New U.S. EPA standards, effective in environmental impacts of moving parts from suppliers to our toward optimizing efficiency throughout the total supply chain, 2010, are expected to harmonize with factories. To realize greater efficiencies in our North American reducing the number of shipments and total miles of truck travel. California exhaust standards and will parts logistics system, we conducted a comprehensive, end-to- In FY2008, this effort resulted in roughly 3 million fewer also introduce evaporative emissions requirements that phase in through end analysis of the total parts supply chain. Based on this study, miles of truck travel, saving approximately 480,000 gallons of 2015. Honda marine engines already we implemented a new hub-and-spoke system based around fuel and reducing CO2 emissions from parts shipments by about comply with California’s exhaust three hubs — an existing facility in Ohio, and two new facilities in 4,900 metric tons. The next major expansion of the system will emissions standards and are expected Tennessee and Ontario — which together serve factories in Ohio, come with the integration of the new automobile plant in to meet the new evaporative controls. Alabama, Georgia, and in Ontario, Canada. Where each of these Greensburg, Indiana, in the fall of 2008.
The Ohio parts consolidation center is one of three hub facilities that consolidates parts being transported from suppliers to Honda automobile plants in the region, helping reduce truck travel, fuel consumption,
and CO2 emissions. 24 Honda 2008 North American Environmental Report
Promotion of Green Factory Practices Honda works to promote and encourage green factory practices in the OEM community. In each of the last 15 years, Honda has held a supplier symposium to share the best environmental
Promoting a ideas and practices, and to recognize suppliers’ environmental achievements. “green factory” approach to the Official recognition of suppliers’ environmental achievements pollution prevention, energy reduction, and conservation of production and was initiated with Honda’s “Green Partner” awards in 1999, natural resources. In November 2007, 139 North American distribution of component parts and was incorporated into the Corporate Citizenship parts suppliers participated in our annual environmental award program in 2006. The environmental achievement symposium, submitting 50 applications for recognition of award program provides for recognition in three key areas: environmental achievement.
Supplier Environmental Achievement Recognition in FY2008
POLLUTION PREVENTION ENERGY REDUCTION CONSERVATION OF NATURAL RESOURCES
Celina Aluminum Precision Technology AGC Automotive Americas Bridgestone Firestone • Recycling spent foundry sand at a • Implemented several projects and • Improved and expanded on-site concrete facility, reducing landfill new equipment installations with natural wildlife habitat, including waste by 74%. higher efficiency motors, variable the creation of an educational and slow ramp-up drives, and area for local schools. North American Lighting, Inc. power control monitoring • Reduced hazardous wastestream Asama Coldwater Manufacturing of all furnaces. by 75%, and at the same time • Installed equipment and improved conserved resources by reducing AY Manufacturing machining processes so that water- virgin solvent use by 45%. • Installed new energy-efficient based coolant can be recycled, lighting fixtures, reducing reducing water use by more than AGC Automotive Americas electricity use by about 10%. 400,000 gallons a year. • Developed process to filter glass solids out of wastewater for KAMCO Industries Metaldyne Sintered Components recycling, reducing waste by 70% • Installed large circulating fans to • Developed a fluid reclamation system and improving water quality. move warm upper air down to in wet-tumbling operations for floor level, reducing natural chemicals and wastewater. gas use by more than 50% and The project reuses 90,000 gallons improving the work environment of water per year and has reduced for associates. chemical usage.
Corporate Citizenship Award
In addition to being recognized for its environmental in six areas: health and safety, equal opportunity, government achievement, Metaldyne Sintered Components received relations, community involvement, ethics and compliance, and the Corporate Citizenship Award for FY2008 at Honda’s annual the environment. OEM supplier conference. The promotion and recognition of In addition to Metaldyne, three other Honda suppliers environmental improvements are integrated into this annual received Recognition Awards in corporate citizenship: Bridgestone award given to suppliers who embrace a culture that enables Firestone of Wilson, North Carolina; Toyoda Gosei of Brighton, them to make significant contributions to their communities and Michigan; and Toyoda Gosei of Waterville, Canada. the environment. The winners have demonstrated excellence Honda 2008 North American Environmental Report 25
Reducing the environmental impact of product manufacturing Product Development
End-of-Life Purchasing
Administration
Sales and Manufacturing – Service Manufacturing Green Factory Distribution
Through Honda’s Green Factory initiative, we have worked aggressively to reduce the environmental impact of our manufacturing activities in North America, including significant efforts to reduce the energy intensity of automobile production, as well as initiatives to reduce water use, air emissions, and waste materials at all of our manufacturing facilities in the region.
Growth of Local Manufacturing Capabilities Honda’s strategy of building products in the markets where In keeping with this strategy and in response to growing they are sold helps to reduce energy, emissions, and waste consumer demand for fuel-efficient Honda and Acura associated with the transportation of products and component automobiles, we undertook numerous initiatives in FY2008 to parts. In the automobile sector in FY2008, about 75 out of expand and further localize our manufacturing capabilities in every 100 Honda and Acura vehicles sold in North America the region. were produced in the region,1 the highest percentage of any international automaker.
(new) (new) (growth) (growth) Greensburg, Indiana, Alliston, Ontario, Anna, Ohio, Russells Point, Ohio, auto plant engine plant engine plant transmission plant
• Began construction of a • Began construction of a • Completed a 135,000- • Continued installation new 200,000-units per new 200,000-units per square-foot expansion of new processes to year automobile plant year engine plant to of the Anna, Ohio, localize gear production, to produce fuel-efficient produce fuel-efficient engine plant to increase offsetting the import of 4-cylinder passenger cars 4-cylinder engines that production of steel gear sets from Japan. beginning with the Civic will be supplied to the engine parts and to add • The Russells Point, Ohio, Sedan in late 2008. adjacent automobile new processes, including transmission plant also • The new Indiana plant plants (beginning Fall ferrous cylinder sleeve started production of is expected to have the 2008). casting and camshaft four-wheel drive smallest environmental quick-casting. differentials, which footprint of all North • Increased production of were previously American auto plants. camshafts, crankshafts, imported from Japan. cylinder sleeves, and connecting rods that were previously imported from Japan.
1Using domestically and globally sourced parts. 26 Honda 2008 North American Environmental Report
Automobile, Powersports, and Power Equipment Production in North America
Automobile Production Totals Powersports Products Production Total
Reducing the 0.5 environmental 1.5 impact of product 1.43 1.44 manufacturing 1.40 0.4 1.4 0.41 1.41 0.38 0.38 1.39 0.36 0.36 0.36
1.37 Millions 0.3 0.32 1.3 1.28 1.25 0.26 1.19 1.24 0.2 1.2 1.23 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 1.18
Millions 1.1 1.08 1.04 1.04 Power Equipment Production Total 1.07 1.02 1.01 1.01 1.01 1.04 1.0 .94 2.5 0.93 2.29 0.9 0.87 2.0 2.10 1.96 1.80 1.5 1.60 0.8 1.46 Millions FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 1.0 1.04
0.5 0.72 Automobile Production Automobile Engine Production 0.0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 Transmission Production
ISO 14001 Certification The central element of Honda’s environmental oversight and • The Tallapoosa, Georgia, transmission plant is working toward management structure was implemented in 1998, with our certification by the end of calendar year 2009. commitment to achieve and maintain third-party ISO 14001 certification • The new automobile plant under construction in Greensburg, for environmental management at Honda manufacturing facilities Indiana, and the new engine plant under construction in Alliston, throughout the North American region. Thirteen of the 14 Honda plants Ontario, will begin working toward certification when production operating in FY2008 were certified to the ISO 14001:2004 standard. begins in late 2008.
Honda North American Manufacturing Operations LOCATION FACILITY ISO 14001:1996 ISO 14001:2004 CAPACITY United States Marysville, Ohio Automobile Plant 1998 2006 440,000 autos Motorcycle Plant 1998 2006 75,000 motorcycles 75,000 engines Anna, Ohio Engine Plant 1998 2005 1.18 million engines East Liberty, Ohio Auto Plant 1998 2006 240,000 units Russells Point, Ohio Transmission Plant 1998 2005 750,000 transmissions 288,000 gear sets 110,000 rear differentials Swepsonville, North Carolina Power Equipment Plant 2002 2005 2 million engines 340,000 lawnmowers Timmonsville, South Carolina All-Terrain Vehicle 2003 2006 340,000 ATVs 310,000 engines Personal Watercraft 2003 2006 29,000 PWCs Lincoln, Alabama Automobile and Engine Plant N/A 2006 300,000 autos 300,000 V6 engines Tallapoosa, Georgia Transmission Plant N/A 2009 300,000 transmissions
Greensburg, Indiana Automobile Plant (opening fall 2008) N/A 2011-2014 (planned) 200,000 autos Canada Alliston, Ontario Automobile Plant 1 1999 2006 195,000 autos Automobile Plant 2 1999 2006 195,000 autos
Engine Plant (opening fall 2008) N/A 2010 (planned) 200,000 engines Mexico El Salto, Estada de Jalisco Automobile Plant 1999 2006 50,000 autos and engines Motorcycle Plant 1999 2006 30,000 motorcycles Honda 2008 North American Environmental Report 27
Manufacturing CO2 Emissions
Our efforts to reduce CO2 emissions from manufacturing are focused on cutting CO2 emissions intensity (emissions per unit of production), primarily through greater efficiency. In North America, our objective is to reduce the CO emissions intensity of automobile manufacturing 2% from FY2006 levels by FY2010. Reducing the 2 environmental
North American Manufacturing CO2 Emissions — impactNorth of productAmerican CO2 Emissions — manufacturing Powersports Products Manufacturing Per-Unit CO2 Emissions Total CO2 Emissions (Electricity & Natural Gas only) (Electricity & Natural Gas only) 4% Sources of North American About 96% of the CO2 emissions from manufacturing 1.25 Manufacturing CO Emissions* 250 operations result from electricity use and natural gas 2 26% 1.08 208 Q 70% electricity1.05 1.07 combustion. Electricity is used for automation, plant lighting, 1.01 200 motors and compressors, and cooling. Natural gas is used 1.00 0.96 0.94Q 26% natural Gas Q 4% Other Fuels: 150 148 0.84 150 for heating and conditioning fresh air, for manufacturing 0.78 • propane 121 kg/Unit 110 114 119 117 processes such as melt furnaces and paint bake ovens, 0.75 70% • fuel oil • gasoline 100 and for air emissions control equipment. • coke Metric Tons x 1 Million Tons Metric • kerosene 0.50 50 FY01 FY02 FY03 FY04*BasedFY05 on FY2008FY06 dataFY07 FY08 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08
North American Manufacturing CO2 Emissions — North American CO22 EmissionsEmissions — — North American CO2 Emissions — PowersportsAutomobile ManufacturingProducts Manufacturing Per-Unit CO Per-Unit Emissions CO2 Emissions Power Equipment Manufacturing Per-Unit CO Emissions Total CO2 Emissions 2 2 (Electricity & Natural Gas only) (Electricity(Electricity && NaturalNatural GasGas only)only) (Electricity & Natural Gas only) 1.25 1000250 15
1.08 208 1.05 1.07 1.01 200900 1.00 0.96 0.94 12 11.4 150 148 10.3 10.4 0.84 150800 756 761 9.7 kg/Unit 0.78 kg/Auto 121 727 9.0 9.4 kg/Unit 709 110 114 119714 117 715 711 0.75 699 9 8.5 8.2 100700 Metric Tons x 1 Million Tons Metric North American Manufacturing CO Emissions — North American CO2 Emissions — 0.50 2 60050 6 Powersports Products Manufacturing Per-Unit CO2 Emissions Total CO2FY01 EmissionsFY02 FY03 FY04 FY05 FY06 FY07 FY08 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 (Electricity & Natural Gas only) (Electricity & Natural Gas only) 1.25 250
CO2 emissions from electricity and natural gas used at Automobile: Average CO2 emissions per automobile208 North American CO2 Emissions — 1.07 1.08 North American CO2 Emissions — Honda’s North American manufacturing1.05 operations totaled produced200 in North America decreased 1.4% from the FY2001 Automobile Manufacturing Per-Unit1.01 CO2 Emissions Power Equipment Manufacturing Per-Unit CO2 Emissions 1.00 0.96 0.94 1.08 (Electricitymillion metric & Natural tons in Gas FY2008, only) an increase of 1.1% from baseline (Electricity and 1.7% & Natural from the Gas previous only) fiscal150 year148 to 699 kg, the 0.84 150 the previous1000 fiscal0.78 year. lowest level15 since121 we began measuring our results in FY2001. kg/Unit 110 114 119 117 0.75 900 100 Average x 1 Million Tons Metric CO emissions per unit of powersports and power equipment production12 rose significantly in FY2008 11.4 2 10.4 50 10.3 0.50800 756 761 9.7
as a result of reduced levels of production in both categories and, in the powersportskg/Unit product domain, the in-sourcing kg/Auto FY01 727FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY01 FY02 FY039.0 FY04 FY059.4 FY06 FY07 FY08 709 714 715 711 of certain manufacturing processes. 699 9 8.5 8.2 700
North American COCO Emissions Emissions — — North American CO Emissions — North American Manufacturing CO2 Emissions — 600 22 6 2 PowersportsAutomobile ManufacturingProducts Manufacturing Per-Unit CO Per-Unit Emissions CO2 Emissions Power Equipment Manufacturing Per-Unit CO Emissions Total CO2 Emissions FY01 FY02 FY03 FY04 FY05 FY062 FY07 FY08 FY01 FY02 FY03 FY04 FY05 FY06 FY07 2 FY08 (Electricity & Natural Gas only) (Electricity(Electricity && NaturalNatural GasGas only)only) (Electricity & Natural Gas only) 1.25 1000250 15
1.08 208 1.05 1.07 1.01 200900 1.00 0.96 0.94 12 11.4 150 148 10.3 10.4 0.84 150800 756 761 9.7 kg/Unit 0.78 kg/Auto 121 727 9.0 9.4 kg/Unit 709 110 114 119714 117 715 711 0.75 699 9 8.5 8.2 100700 Metric Tons x 1 Million Tons Metric
0.50 60050 6 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY01FY01 FY02FY02 FY03FY03 FY04FY04 FY05FY05 FY06FY06 FY07FY07 FY08FY08 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08
Powersports: Average CO emissions per unit of production Power Equipment: Average CO emissions per unit of North American CO2 Emissions — North American CO2 Emissions2 — 2
Automobile Manufacturing Per-Unit CO2 Emissions in NorthPower America Equipment rose Manufacturing40.5% to 208 kg Per-Unit in FY2008 CO2 fromEmissions the production in North America rose 9.7% to 11.4 kg in FY2008 (Electricity & Natural Gas only) previous (Electricity fiscal &year. Natural Gas only) from the previous fiscal year. 1000 15
Honda’s North American manufacturing operations track its CO2 emissions from fuel combustion and process uses in accordance 900 with guidelines published in The Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard, revised edition. 12 11.4 10.3 10.4 800 756 761 9.7 kg/Unit kg/Auto 727 9.0 9.4 709 714 715 711 699 9 8.5 8.2 700
600 6 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 28 Honda 2008 North American Environmental Report
Energy Consumption North American Manufacturing Total Energy Use Improving the energy efficiency of Honda factories is
the single biggest focus of our efforts to reduce the 12 7.2 8 6.9 6.8 7.1 6.7 6.7 6.6 6.5 environmental impact of our manufacturing operations 10 in the region. 6
Reducing the 8 GJ/Auto environmental Total energy consumed in all production activity 6 4 impact of product increased 0.5% in FY2008 to 9.88 million gigajoules , manufacturing 4 primarily as a result of increases in production volumes GJ x 1 Million 2 and added production of powertrain components. 2 7.61 7.76 8.82 9.43 9.73 9.83 9.91 Energy use per unit of automobile production in 0 9.09 0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 North American was reduced 1.5%, to 6.5 GJ/auto in the same period, primarily because of energy efficiency gains, Total Energy Use1 Average Energy Used Per Auto Produced2 more efficient utilization of production capacity, and a 1 Total energy use (from consumption of electricity and natural gas) warmer than usual winter. includes all North American manufacturing operations. 2 Energy per auto includes all auto-related manufacturing operations, including automobile engine and transmission production; it does not include power equipment and power sports.
Honda Plant-Specific Energy Reduction Initiatives in FY2008 LOCATION INITIATIVE RESULTING SAVINGS United States Marysville, Ohio, Reprogrammed plastic injection molding machine pumps to 600 kWh/yr
Auto Plant run in an on-demand sequential cycle, stepping up loads as (36 metric tons CO2 /yr) required by machine function
East Liberty, Ohio, Replaced older, oversized (150 hp) chiller condenser pumps 295,000 kWh/yr
Auto Plant with new, more efficient 100 hp pumps (231 metric tons CO2 /yr) Anna, Ohio, Installed variable frequency drives on the supply and return 1.2 million kWh/yr
Engine Plant pumps and cooling towers (940 metric tons/yr CO2) Tallapoosa, Georgia, Implemented new Web-based energy monitoring system to not available Transmission Plant exercise more comprehensive control of lighting and HVAC energy use
Lincoln, Alabama, Implemented a program on Paint Line 2 to monitor 9.9 million kWh/yr
Auto Plant equipment use and to turn off processes between shifts, (7,755 metric tons CO2 /yr) during lunch breaks, and on weekends. and 45,493 MMBtu of natural gas Canada Alliston, Ontario, Installed a heat recovery unit between vehicle tailpipe $46,678 per year Auto Plant exhaust and outside-air pipe
Ongoing Efforts to Improve Energy Efficiency Lighting Chiller Systems Motor Efficiency • New Web-based metering system • Replacing old fixtures with energy- • Optimizing chillers with • Installing highly efficient variable- allows users to monitor energy use efficient lighting, which can reduce energy-efficient systems that frequency drives (VFDs) and in real time, allowing associates to energy use by as much as half. are properly sized to the areas impellers to optimize the flow identify equipment that is running • Realigning controls to improve they serve. of pumped fluids. and turn it off during nonproduction lighting management, increasing periods. Web-based metering was Compressed Air Metering the ability to turn lighting off implemented in four plants in • Managing compressed air systems • Installing electrical metering during nonproduction periods, FY2008, and we are now developing to provide the right pressure to the equipment in specific areas and providing light in areas operational standards to further right areas at the right times. This to monitor and manage power only as needed. optimize the system use. includes reducing overall pressure; use. Metering in key areas also Heating, Ventilating, and weekend pressure reductions; helps to identify the best locations Air Conditioning (HVAC) installing smaller systems to for conservation projects, and • Improving management and serve areas more efficiently; and to measure the impact of control of HVAC systems implementing cool-air intakes. new systems. to reduce energy use. Honda 2008 North American Environmental Report 29
New “Intelligent Paint Booth” Technology
University, Honda of America Mfg., Inc., developed a new paint booth air conditioning system that reduces energy
consumption and related CO2 emissions as much as 25% Reducing the through the continuous, automatic control of temperature environmental and humidity using a predictive control mechanism. impact of product manufacturing Following a pilot demonstration at the Marysville Motorcycle Plant’s paint shop in 2006, “intelligent paint booth” operations started at the Marysville Automobile Plant’s Line 2 paint shop in November 2007. Other Honda plants in North America, including the East Liberty Auto Plant, Honda Mfg. of Alabama Line 2, and Honda of Canada Mfg. Line 1, are implementing this new control system. Honda of America Automobile body painting consumes large amounts of Mfg., Inc., has applied for a patent on this unique predictive energy, because automakers need to regulate the temperature technology. Other Honda companies in the United Kingdom, and the relative humidity of the air to achieve the desired Japan, and China are currently studying the possibility of product appearance and finish quality. In collaboration with implementing this technology in their automobile paint shops. the Mechanical Engineering Department at The Ohio State
Waste to Landfill Honda works continually to minimize the generation of Honda Zero-Waste-to-Landfill Plants waste sent to landfills, by both designing of more efficient In FY2008, Honda Canada Mfg. Inc.’s two automobile plants manufacturing systems that produce less waste and by in Alliston, Ontario, joined four other Honda manufacturing maximizing recycling and reuse. In North America, we targeted plants as zero-waste-to-landfill facilities, including Honda a 70% reduction in total waste to landfill (excluding mineral Manufacturing Alabama, LLC, which began operations in 2001 waste) from FY2001 levels by FY2010. and is the first automobile plant in North America to achieve zero waste to landfill. North American Waste to Land ll (excluding mineral waste) Zero waste to 14.9 Production landfill 24 15 location CAPACITY since 20 12 United States Lincoln, Alabama 300,000 automobiles FY2002 10.2 and engines
16 kg/Auto 9 12 Swepsonville, 340,000 lawnmowers, FY2007 4.9 4.9 6 North Carolina 2 million general purposes 8 3.3 engines 2.7
Metric Tons x 1000 Tons Metric 2.3 1.9 4 3 Canada Alliston, Ontario 195,000 automobiles FY2008 17.9 13.8 10.4 8.3 6.7 5.8 3.8 11.0 Plant 1 0 0 FY01 FY02FY01 FY02FY03 FY03FY04 FY04FY05 FY05FY06FY06FY07FY07FY08FY08 Alliston, Ontario 195,000 automobiles FY2008 Plant 2 Total Waste to Land lls in Metric Tons x 10001 Average Waste to Land lls Per Auto Produced in Kilograms2 Mexico El Salto, 30,000 automobiles FY2003 1 Total land ll waste includes all North American operations. Estada de Jalisco and engines 2 Land ll waste per auto includes all auto-related manufacturing 30,000 motorcycles FY2003 operations; it does not include power sports products and power equipment production.
Total waste from manufacturing processes sent to landfills (excluding mineral waste) was reduced 34.5% in FY2008 from the previous fiscal year and 78.7% from the FY2001 baseline, exceeding our target of a 70% reduction from baseline by FY2010. 30 Honda 2008 North American Environmental Report
Water Use Reducing Wastewater Efforts to minimize water use and wastewater production are continually undertaken at all of our North American plants. Total water used for manufacturing activity in FY2008 was reduced 1.1%, or 12 million gallons, from the previous fiscal Reducing the environmental year, to 1.064 billion gallons. Average water use per unit of impact of product automobile production was reduced 4.1%, or 30 gallons, to manufacturing 700 gallons.
North American Manufacturing Total Water Use
0.79 0.79 1200 0.75 0.8 0.71 0.73 0.70 0.70 0.67
1000 x 1000/AutoGallons 0.6 800 Marysville Auto Plant Water Recycling Production of pure water using reverse-osmosis systems 600 0.4 produces about one gallon of wastewater for every three 400 0.2 gallons of “good” water. Beginning in early 2008, wastewater Gallons x 1 Million 200 previously released to the sanitary wastewater treatment 769 766 923 1,016 1,122 1,076 1,064 0 931 0.0 system in Paint Line 2 was directed to a storage tank for FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 recycling into the body painting pretreatment process, saving roughly 6.5 million gallons of water per year. Total Water Use1 Average Water Use Per Auto Produced 2 In a similar process, wastewater recovered from the reverse-osmosis process on Paint Line 1 is recycled into 1 Total water use includes all North American operations. the Paint Line 1 sludge pits, where it is used to capture 2 Water used per auto produced includes all auto-related manufacturing operations; it does not include power sports and remove painting solids that do not adhere to products and power equipment manufacturing. painted products.
Air Emissions Honda’s plants release various air contaminants, primarily volatile VOC Emissions organic compounds (VOCs), particulate matter (PM), oxides Volatile organic compounds (VOCs) are the primary air emissions of nitrogen (NOx), and carbon monoxide (CO). VOC emissions from Honda’s North American manufacturing plants, with 60% typically come from painting operations. PM emissions usually coming from painting operations. It has always been our policy result from metal casting and finishing processes and from to minimize the release of VOCs by adopting less-polluting painting operations. NOx and CO emissions typically result from processes whenever possible. the combustion of natural gas for heating and from the use of VOC emissions from auto body painting operations in engine and full-vehicle testing dynamometers. Air emissions are FY2008 were up 0.4% from the previous fiscal year and down released in accordance with applicable laws and regulations. 45.3% from the FY2001 baseline. At 15.7 g/m2, VOC emissions Emissions are routinely monitored, tracked and reported to in FY2008 were well below the company’s target of 20 g/m2. regulatory agencies in accordance with federal, provincial, and state requirements. Factories are also periodically inspected for North American VOC Emissions* compliance with legal requirements. From Automobile Body Painting
30
24
2 18 g/m 12
6 28.7 28.6 23.6 22.0 20.8 15.6 15.7 0 24.5 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08
*Mexico is included for FY08 only. Honda 2008 North American Environmental Report 31
Waterborne Paint
In 2006, the Marysville, Ohio, auto plant, Honda’s highest volume auto plant in North America, began operating a
new state-of-the-art paint shop that reduced body painting Reducing the emissions approximately 47%. In FY2008, six of eight environmental automobile production lines, which account for 70% of total impact of product manufacturing North American automobile production capacity, were using a waterborne basecoat paint process. Additionally, three production lines — Marysville Line 2 and both lines in Lincoln, Alabama — are now using waterborne primer/surfacer.
Reducing Chemical Releases — TRI/NPRI Reporting Honda has reduced its total Toxic Release Inventory (TRI) and requirements. In the United States, Toxic Release Inventory (TRI) National Pollutant Release (NPRI) emissions more than 36.9% data are submitted to both state and federal environmental despite significant expansions in production capacity since protection agencies; they are available for public review at calendar year 2000. Automobile-specific TRI/NPRI emissions www.epa.gov. In Canada, National Pollutant Release Inventory per unit of production were reduced about 53.2% in the United (NPRI) data are submitted to Environment Canada and to the States and Canada in the same period. Ontario Ministry of the Environment; they are available for public Honda operations in the United States and Canada report review at www.ec.gc.ca/pdb/npri. total chemical releases annually in accordance with regulatory
United States and Canada Total TRI/NPRI Releases* United States and Canada TRI/NPRI/Auto Releases* VOC Emissions 2.0 1.5 Volatile organic compounds (VOCs) are the primary air emissions from Honda’s North American manufacturing plants, with 60% 1.5 coming from painting operations. It has always been our policy 1.0 to minimize the release of VOCs by adopting less-polluting 1.0 kg/Auto processes whenever possible. 0.5 VOC emissions from auto body painting operations in x 1000 Tons Metric 0.5 1.314 1.497 1.556 1.260 1.200 948 828 1.24 1.36 1.24 1.00 0.87 0.68 0.58 FY2008 were up 0.4% from the previous fiscal year and down 1.509 1.24 0.0 0.0 45.3% from the FY2001 baseline. At 15.7 g/m2, VOC emissions CY00 CY01 CY02 CY03 CY04 CY05 CY06 CY07 CY00 CY01 CY02 CY03 CY04 CY05 CY06 CY07 in FY2008 were well below the company’s target of 20 g/m2.
Honda’s U.S. and Canada manufacturing operations report TRI (section 8.1) and NRPI (Schedule 1, Part 1) releases and transfers for disposal.
Accidental Spill and Release Prevention, Tracking and Reporting Prevention of environmental spills and releases is a key storage tanks are equipped with alarms that give advance design consideration for all Honda manufacturing facilities. warning of overfilling. Virtually all materials with the potential Exterior chemical and wastewater storage tanks and transfer for release are handled within enclosed buildings. Learning from systems are constructed with materials and designs that accidental releases is critical to preventing future occurrences; minimize the risks of leaks and spills. Most exterior tanks and therefore Honda tracks all significant incidents. Major incidents piping systems have backup containment capabilities to undergo root-cause analysis, and the information gained is used facilitate recovery of any leaked or spilled material. Additionally, to improve operations.
Emergency Response All of Honda’s manufacturing facilities have response plans that equipment. The emergency response plans are tested through define the policy and procedures to be followed in emergencies. tabletop exercises and periodic in-plant drills involving both Honda’s major manufacturing operations have well-trained, on-site personnel and local community responders. experienced on-site emergency responders and emergency 32 Honda 2008 North American Environmental Report
Reducing the environmental impact of transporting products from factories to dealers Product Development
End-of-Life Purchasing
Administration
Sales and Product Service Manufacturing Distribution Distribution
Automobiles Honda and Acura automobiles are moved primarily by train, which is the most efficient mode of transport among all available options, including truck, air and ship. In FY2008, 81% of all Honda and Acura automobiles manufactured in the U.S. or arriving at U.S. ports were transported by train, the highest percentage of any automaker operating in the United States. Also, in FY2008, we purchased and deployed a fleet of 400 flexible and efficient multilevel Auto-Max railcars — the only railcar fleet of its kind in the U.S. auto industry. Auto-Max railcars transport more units per railcar using less fuel than traditional auto As a result of the shift to Auto-Max railcars, in FY2008 we saved
transport railcars, because of their improved aerodynamic design 531,048 gallons of diesel fuel and reduced CO2 emissions from and unit-body construction using lightweight composite materials. automobile transport 5,493 metric tons from the previous fiscal year.
Rail Infrastructure Improvements In FY2008, we made a $7 million investment in our Ohio product distribution center, adding rail capacity and improving the total efficiency of operations at Honda’s largest automobile distribution center in North America. According to CSX Railroad, which provides rail services for the center, these infrastructure improvements have resulted in a fuel savings of
2,436 gallons, or 25.2 metric tons of CO2, compared with the previous calendar year. We also implemented a new wireless yard management system at our Ohio and Alabama manufacturing facilities, eliminating 1,000 reams of paperwork each year.
Powersports Products — Returnable Crates
Since 2002, Honda’s U.S. Motorcycle Division has been using returnable crates for its U.S.-made powersports products. In FY2007, the initiative was further expanded to include Gold Wing motorcycles and the FourTrax ATV. In FY2008, all domestically produced motorcycles, ATVs, and personal watercraft were shipped in returnable containers. The reverse logistics process includes powersports dealers in all states, including Alaska and Hawaii, who are linked via an interactive computer network to the supply chain and return process. Locally, both Honda dealers and consumers benefit from reducing waste. Honda 2008 North American Environmental Report 33
Reducing the environmental impact of Honda and Acura product sales and servicing Product Development
End-of-Life Purchasing
Administration
Sales and Sales and Service Manufacturing Service Distribution
Sales E-Statements for Honda Financial Services (HFS) of the fiscal year, roughly 65% of the HFS customers had Customers elected the e-statement option. Based on a very positive early In FY2008, Honda Financial Services implemented a new response from customers, HFS estimates that the new system electronic-statement and notification process, giving its will eliminate the production and mailing of more than a million customers the option of paperless transactions. By the end paper statements each year.
Service Reducing Service Parts Packaging In addition, the division has consolidated three packaging Honda’s North American Service Parts Operations Division operations into one out-sourced operation that allows for the continued to reduce waste by reducing packaging material. The consolidation of packaging specification activity and reduced continuous improvement and redesign of packaging for sheet transportation. Through the expansion of the existing program, metal parts was implemented throughout the year, enabling and the establishment of new initiatives, we eliminated us to reduce corrugated waste and to minimize weight and about 1.45 million pounds of corrugated cardboard from the the space required for the shipping and storage of parts. Along wastestream in FY2008. In addition to reductions in packaging, with sheet metal parts, many other parts have undergone a we also require that suppliers of plastic containers for Honda packaging revision to reduce material. service products and accessories contain a minimum of 24% postconsumer plastics.
Case Study: Package Simplification of Large Sheet Metal — Accord Fender Previous New Material reduction (%) Size 12.43 cu. ft/pc 10.17 cu. ft/pc 18.2% Number of Materials 3 pcs. 2 pcs. 33.3% Weight 19.0 lbs 18.25 lbs 3.9%
Motorcycle and ATV Battery Recycling
The lifespan of motorcycle and ATV batteries are typically shorter than those of automotive batteries because of initial preparation, storage, and seasonal use factors. Over the past four years, we embarked on an aggressive program to provide Honda dealers with training and with testing tools to minimize premature and unnecessary battery replacement. The program has led to a 41% reduction in new-unit battery replacements. Honda also subcontracts with a national battery supplier who provides free dealer pickup and recycling of any battery, which helps to minimize the potential for improper battery handling and disposal. 34 Honda 2008 North American Environmental Report
Reducing the environmental impact of product end-of-life treatment Product Development
End-of-Life Purchasing
Administration
Sales and Product Service Manufacturing Recycling Distribution
Honda is engaged in various initiatives to reduce the environmental impacts of the disposal of its products at the end of their useful lives. Our efforts begin with design and development of new products, where we work to achieve a high level of recyclability, and continue in our collaboration with recyclers, where we look for ways to further improve our designs to enhance dismantling efficiency and to minimize the production of automobile shredder residue (ASR).
The Automotive Dismantling Process
Step 1: Pre-treatment Step 2: Dismantling Step 3: Metal Separation
Recycle Fluids Remanufactured Parts Metal Recovery Honda is participating in a multi- D Honda has an extensive parts D LKQ Corporation, a large supplier of industry study to evaluate the efficacy remanufacturing program. In FY2008, recycled auto parts, and Honda are of fluid collection and to identify we added 32 new parts to our list of conducting a pilot project in Southern product design changes that will remanufactured components marketed California for the recycling of aluminum improve the process. to customers as more affordable components from the auto shredder. and environmentally responsible Making new aluminum from recycled Recycle Materials alternatives to new parts. aluminum takes 95% less energy than primary aluminum production and 4 Catalytic converters — Honda actively pounds of bauxite are saved for every recycles the precious metals in Plastic Fuel Tanks pound of aluminum recycled. Honda automobile catalytic converters, Honda completed a major study of is monitoring the progress of this pilot including all units collected during disposal methods for plastic fuel tanks project to determine if an economically warranty service at Honda and Acura and found that recycling for energy and technically viable advantage exists dealerships in the United States recovery may be an economically for the use of recycled aluminum in and Canada. feasible alternative to disposal in Honda products and component parts. Hybrid batteries — we use recyclable landfills. Most plastic fuel tanks nickel-metal hydride battery packs contain as much energy as a full-size Metallic Content of Automobiles automotive tire, approximately in all our hybrid vehicles. Honda is P 73% Ferrous metals 20,000 BTUs. recycling virtually all hybrid batteries P 3% Non-ferrous metals recovered during warranty service at P 24% Other materials Honda dealers in the United States and Canada. 73% Wheels — we recycle aluminum and steel wheels collected from Honda and Acura dealers, using these metals to 3% 24% produce new wheels. D
Step 4: Automobile Shredder Residue (ASR)
Honda meets with and exchanges information with selected shredder operators to ASR is composed of: understand the challenges and to monitor the development of new equipment 38% Plastics About 1.5% of and technology that would reduce the production of landfill waste and improve 21% Rubber material sent to the recovery of valuable resources. Promising technologies among the approximately 14% Glass landfills is ASR 200 shredder companies operating in the United States are being evaluated. Honda 4% Fluids will consider supporting new approaches through investment, market development, 15% Other and infrastructure support. Honda 2008 North American Environmental Report 35
Reducing the environmental footprint of Honda facilities and office operations Product Development
End-of-Life Purchasing
Administration
Sales and Service Manufacturing Administration Distribution
Green Building Initiatives Honda’s commitment to reduce the environmental impact of its Honda certified three new green buildings within the past year. North American operations extends to its offices and buildings. These new facilities join two existing LEED-Gold buildings, We are incorporating sustainable concepts into facility construction including our Gresham, Oregon facility, the first mixed-use and operation, including locally harvested and manufactured industrial facility in America to earn Gold certification as construction materials, cool roofs, dual-paned glass, high-recycled- a new building. Three additional Honda facilities are being content materials, and energy-efficient lighting. designed to achieve LEED certification in the future.
FACILITY CERTIFICATION DETAIL Acura Design Studio Gold March Opened in May, 2007, the Acura Design Studio uses reclaimed Torrance, Calif. 2008 water for toilets and irrigation, and a highly-efficient displacement ventilation system.
Midwest Gold April The 547,000-square-foot warehouse facility has a reflective roof, Consolidation Center 2008 and energy-efficient lighting, and its second-floor mezzanine was
NEW Troy, Ohio constructed from wood certified by the Forest Stewardship Council.
Data Center Silver April Data centers are considered very difficult to certify because of their Longmont, Colo. (version 2008 large energy consumption. The Longmont facility is the first LEED 2.2) Version 2.2 Silver-certified data center in the country.
Northwest Regional Platinum June Honda’s first LEED-certified facility was also the first new mixed-use Facility 2008 industrial building in the United States to earn Gold certification, and Gresham, Ore. has since become the first LEED Platinum-certified existing building in the automobile industry. The facility is 48% more energy-efficient G N
I than required by Oregon’s Energy Code. T XIS
E Honda R&D Gold April The central plant at Honda R&D’s Ohio Center uses rainwater for Central Plant 2006 flushing toilets, a biodiesel-powered emergency generator, and Raymond, Ohio an ice chiller system that reduces peak energy demand from air conditioning by as much as half.
Honda Aircraft Co. N/A N/A This 68,000-square-foot office complex for support of Honda’s Headquarters aviation business opened in August 2008. Greensboro, N.C.
Honda R&D Marine N/A N/A Honda R&D broke ground in December 2007 on this 11,000-square- E Engine Facility foot facility for the research and development of Honda outboard UR T Grant-Valkaria, Fla. marine engines. FU
Honda Canada N/A N/A Honda Canada’s new headquarters facility, situated on a 53.3-acre Headquarters campus, will seek LEED Gold certification from the Canadian Green Markham, Ontario Building Council (CaGBC). The 500,000-square-foot facility will house approximately 700 associates. 36 Honda 2008 North American Environmental Report
Green Office Initiatives In addition to our green building certification initiatives, associates Recycling at Honda R&D Americas at Honda facilities throughout North American are engaged in activities aimed at reducing waste and improving the energy efficiency of our daily operations. Reducing the environmental footprint of Honda Improving Warehouse Efficiency facilities and office This year the company continued to roll out the use of energy- operations efficient fluorescent lighting and motion sensors in facilities around the country. • A lighting retrofit was conducted at our Irving, Texas, service parts warehouse, resulting in an annual savings of 432,956 kwh, or roughly 8.4% of total power use at the 259,900-square-foot facility. • Motion sensors added to lighting at the Chino, California, service parts warehouse saved 122,360 kwh annually, or Honda R&D Americas’ Ohio new-model development center roughly 5.1% of the facility’s total power use. (HRA-Ohio) in CY2007 increased its volume of recycled materials 50% over CY2006 levels. The facility had already doubled its Electricity Cogeneration at American Honda recycling activity over the previous three years (CY2004 through CY2006). Although total waste production at the facility has increased due to continued growth in its activities, HRA is now focused on reducing total waste production.
HRA-Ohio Land ll vs. Recycle
800 700 600 500 400 300 Metric Tons Metric 200 100 0 At our American Honda headquarters facility in Torrance, FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 California, we have dramatically increased the production of Land ll Recycle electricity with an efficient natural gas-powered cogeneration system. Cogeneration produces heat and power in a single thermodynamic process. In FY2008, 30% of the electricity used Water Use at American Honda to power the Torrance campus was derived from cogeneration, American Honda began to use recycled water on its Torrance approximately the same level as the previous fiscal year. headquarters campus in 2007. More than 18% (almost 10.5 million gallons) of water used annually at the facility is now recycled water. Electricity from Cogeneration
30
25
20
15
10 kWh in MillionskWh 5
0 FY04 FY05 FY06 FY07 FY08
Annual Production Cumulative Production Honda 2008 North American Environmental Report 37
Land Stewardship Initiatives In recent years, global warming, the loss of endangered species, Preserving Natural Ecosystems in Indiana and the overuse of renewable resources such as groundwater have pointed to a worldwide necessity to protect, restore and maintain our natural ecosystems. Honda’s commitment to the environment includes efforts to preserve delicate ecosystems on land surrounding Reducing the environmental its manufacturing, R&D and warehouse facilities. footprint of Honda facilities and office New Wetlands in Ohio operations
In constructing Honda’s newest automobile plant in Greensburg, Indiana, Honda sought to minimize the impact to local ecosystems, including the environment surrounding two streams within property boundaries: Muddy Fork Creek and Buck Run Creek. A small portion of the Buck Run headwaters, located in the center of the property, and about two-thirds of the Muddy Fork Honda of America Mfg., Inc., in Marysville, Ohio, has partnered Creek floodplain had narrow forested creek buffers extending with the Nature Conservancy and the Ohio EPA to restore the beyond their banks. To minimize the impact to these areas, Honda headwaters of the Big Darby Creek, a state and national scenic elected to avoid the Muddy Fork Creek floodplain, and to hold river widely recognized as one of the most biologically diverse work in the Buck Run floodplain to a minimum. Construction of streams of its size in the Midwest. the new plant, along with the relocation of an existing rail-bed As part of an initiative to upgrade water outlet structures necessitated the filling of approximately 1,400 linear feet of on retention ponds throughout Honda’s 8,200-acre automobile jurisdictional stream. To mitigate the Buck Run habitat loss and manufacturing and R&D property near Marysville, Ohio, the to restore some of the previously modified Buck Run floodplain, company in 2007 completed work on a new 14-acre wetlands the construction project included 7.7 acres of riparian forested area that is helping to preserve Big Darby and the wildlife it buffer restoration and 16.9 acres of native grassland buffer. This sustains. Honda is augmenting this new floodplain with aquatic new native landscape will not require mowing, and the native plantings to further filter sediment from the water that flows into seedlings used in the riparian buffer will produce nuts, fruit, and the Flat Branch, a tributary near the headwaters of the seeds to attract birds, butterflies, and other animals, helping to Big Darby. enhance the biodiversity of the area.
Encouraging Responsible Use of Public Lands by Motorcycle and ATV Riders
Honda recognizes that environmental stewardship associated Honda also works closely with responsible national with off-road motorcycles and ATVs includes not only clean organizations, such as the National Off-Highway Vehicle and efficient vehicles, but also riders who act responsibly, Conservation Council and Tread Lightly, to teach responsible limiting their use to designated trails. This is particularly riding. We also maintain partnerships with public land important on public lands where off-road riders must agencies and local conservation groups to promote respect both fragile ecosystems and the interests of other environmental protection. public land users. In addition to rider education, Honda recognizes the To this end, Honda partners with numerous industry importance of law enforcement to discourage misuse of groups, government agencies, and the recreation and the public lands. The combination of responsible riding and environmental communities to find solutions that encourage accountability through enforcement will promote a riding responsible use of motorized recreation. ethic that encourages responsible use and enjoyment of public lands. 38 Honda 2008 North American Environmental Report Environmental Technology Milestones
Honda’s continuous focus on improvement in the fuel efficiency and emissions performance of its automobile, powersports and power equipment products has resulted in a number of environmental performance milestones and industry-leading achievements.
1971 1973 1989 1990 1995 1998 1999 1970 1980 1990
1971 1986 1990 1998 P Honda announces CVCC (Compound P The Civic CRX-HF is the first P VTEC (Variable Valve Timing and P U.S. EPA recognizes the 1998 Honda Vortex-Combustion Controlled) , the first mass-produced 4-cylinder car to Lift Electronic Control) — Honda’s Civic GX natural gas vehicle as the engine technology to meet U.S. Clean Air break the 50-mpg fuel economy mark. foundational technology for cleanest internal combustion engine Act standards without the need for a achievements in low emissions, high it has ever tested. catalytic converter. 1989 fuel-efficiency, and high performance, is P Honda introduces ultra-quiet portable introduced in the U.S. in the Acura NSX. P Honda becomes the first automaker inverter generators that achieve sub- 1973 in America to use waterborne basecoat stantially higher fuel economy and lower 1995 P Honda introduces 4-stroke marine paint in mass production. emissions than conventional generators. engines that are cleaner, more fuel- P First gasoline low-emission vehicle P Honda becomes the first company efficient and quieter than the 2-stroke (LEV) in the industry is introduced in to introduce an entire line of outboard motors standard at the time. California: the 1996 Honda Civic. high-performance outboard motors Honda has manufactured only 4-stroke P Fuel economy leadership puts four that meet U.S. EPA emission standards outboard motors since 1973. Honda models on the U.S. EPA’s list of the proposed for the year 2006. 10 most fuel-efficient cars. 1974 1999 P First car to meet U.S. Clean Air Act 1996 P First CARB-certified gasoline without the use of a catalytic converter P The Honda Civic HX Coupe with a super-ultra-low-emission vehicle (SULEV) solely through engine performance: continuously variable transmission is in the industry is introduced: the 2000 the 1975 Honda Civic CVCC. the only automatic transmission vehicle Honda Accord. to make the U.S. EPA’s top-10 list of 1977 Honda Introduces fuel-cell prototype fuel-efficient cars. P The Civic tops the U.S. EPA’s list of vehicles: the FCX-V1 and the FCX-V2. America’s most fuel-efficient cars. 1997 P First gas-electric hybrid vehicle is P First CARB-certified gasoline introduced in North America: the 2000 ultra-low-emission vehicle (ULEV) is Honda Insight. introduced: the 1998 Honda Accord. P Honda becomes the first automaker to introduce low-emission vehicle (LEV) technology voluntarily in mass-market vehicles (Honda Civic) throughout the U.S. and Canada. P World’s first 360-degree inclinable mini 4-stroke engine for handheld power equipment is introduced by Honda. It is more fuel-efficient and virtually smoke-free, with ultra-low noise. P First advanced battery-powered electric vehicle is introduced and leased to customers: the 1997 Honda EV Plus. Honda 2008 North American Environmental Report 39
2000 2001 2002 2003 2004 2004 2005 2006 2008 2000
2000 2003 2005 2007 P First 50-state ultra-low-emission P First hybrid vehicle certified as P World’s first fuel cell family, Jon P No. 1 fuel economy status vehicle (ULEV) is introduced: the an advanced technology partial and Sandy Spallino, take delivery of maintained: Honda has the highest 2001 Civic. zero-emission vehicle (AT-PZEV) by the first fuel cell vehicle leased to an corporate average fuel economy (CAFE) the CARB: 2002 Civic Hybrid. individual customer. rating among the six major automakers P First product of any kind receives for the 2006 model year. the Sierra Club Excellence in P Honda begins experiments with a P First natural gas home refueling Environmental Engineering Award: hydrogen Home Energy Station (HES). device, Phill, is offered for lease in P Union of Concerned Scientists names the 2000 Honda Insight. California together with Honda Honda the “greenest automaker” for the P Honda develops breakthrough fuel Civic GX natural gas vehicle. fourth consecutive time in its biennial P First vehicle certified as an advanced cell stack that starts and operates at report on automakers’ environmental technology partial zero-emission vehicle temperatures below freezing while P Introduction of Honda Variable performance. (AT-PZEV) by California’s Air Resource improving fuel economy, range, and Cylinder Management (VCM) technology, Board (CARB): the 2001 Civic GX. performance with reduced complexity. the first cylinder deactivation system for P World debut of the FCX Clarity an overhead cam (OHC) V6 engine: the next-generation fuel cell car, powered by 2001 2004 2006 Odyssey minivan. a more powerful, efficient and compact P First production motorcycle certified P FCX vehicles are leased to the state P Honda introduces the iGX, a revolu- new Honda V Flow fuel cell stack. to meet CARB’s 2008 emission standards, of New York, the cities of San Francisco tionary, intelligent, computer-controlled P Began testing of fourth-generation the Honda Gold Wing, is sold. and Chula Vista, and the South Coast general-purpose engine. It sets an even California Air Quality Management experimental hydrogen Home Energy P Honda is the first mass-market higher standard for fuel efficiency and District. Station (HES IV). automaker to offer an entire lineup of quiet operation. cars and light trucks that meet or exceed P The 2005 FCX, Honda’s second-gen- P The 2006 Civic hybrid introduced 2008 low-emissions vehicles (LEV) standards. eration fuel cell vehicle, is certified by the 4th-generation Honda IMA technology P 2008 Civic GX tops the American U.S. EPA as a Tier 2 Bin 1 (ZEV) vehicle and with 50 mpg combined EPA city and P First solar-powered hydrogen Council for an Energy Efficient by the CARB as a zero-emission vehicle highway fuel economy. production and fueling station for fuel Economy’s “Green Car” list for the (ZEV). cell vehicles built and operated by fifth straight year. 2006 an automaker opens at Honda R&D P First V6 hybrid car is introduced: Americas’ Los Angeles Center. the 2005 model year Honda Accord. P Honda Soltec, LLC, established for production and sales of Honda-developed P America’s first zero-waste-to-landfill P Union of Concerned Scientists gives CIGS solar panels in Japan. auto plant opens in Lincoln, Alabama. Honda its “Greenest Automaker” award. P Retail sales of natural gas-powered 2002 Civic GX to retail consumers expanded P First application of hybrid technology from California to New York State. to an existing mass-market car: the 2002 P Honda develops plant-based Civic Hybrid. biofabric for use in automobile interiors. P First hydrogen-powered fuel cell P Honda announces it will aim for a vehicle to receive both U.S. EPA and CARB 5% improvement in its U.S. corporate certification for commercial use, and the average fuel economy (CAFE) from first to meet applicable federal motor 2005 levels by 2010. vehicle crash safety standards: Honda FCX. P North American debut of Honda FCX P Honda is first with an entire lineup of Concept with more compact, powerful personal watercraft (PWC) powered by and efficient V Flow stack points toward 4-stroke engine technology. an all-new Honda fuel cell vehicle to be P World’s first commercial application introduced in 2008. of a fuel cell vehicle with the lease of a Honda FCX to the city of Los Angeles. 40 Honda 2008 North American Environmental Report Environmental Community Activities
Honda is always looking for ways to make positive contributions to the communities where it does business. We focus chiefly on community-based environmental education, preservation and restoration efforts, in the form of corporate charitable giving, foundation giving, in-kind contributions, and company support of volunteer efforts by Honda associates who take an active role in their communities.
Selected Environmental Organizations Supported by Honda in Fiscal Year 2008
Environmental Environmental Preservation Education & Restoration
Aullwood Audubon Center and Farm North Carolina A&T State University School Conservancy of Southwest Florida Dayton, Ohio of Agriculture & Loggerhead and Green Turtle Project http://aullwood.center.audubon.org Environmental Science Naples, Florida www.conservancy.org Actua — Environment and Greensboro, North Carolina Engineering Program www.ag.ncat.edu Friend of the Cahaba River Ontario, Canada Ohio Wildlife Center National Wildlife Refuge West Blocton, Alabama Alabama 4-H Center Powell, Ohio Columbiana, Alabama www.ohiowildlifecenter.org Gladys Porter Zoo www.aces.edu/4hcenter/index.php O’Neill Sea Odyssey Sea Turtle Conservation Program Brownsville, Texas Auntie Litter, Inc. Santa, Cruz, California www.gpz.org Birmingham, Alabama www.oneillseaodyssey.org www.auntielitter.org Otesha Gulf of Maine Research Institute Portland, Maine Aquatic Adventures Science Ottawa, Ontario, Canada www.gmri.org Education Foundation www.otesha.ca San Diego, California Pee Dee Resource and Education Center Heal the Bay www.aquaticadventures.org (Clemson University) (California Coastal Cleanup Day) Santa Monica California Brukner Nature Center Pickens, South Carolina www.healthebay.org Troy, Ohio www.clemson.edu/peedeerec www.bruknernaturecenter.com Pollution Probe Clean Air and Keep America Beautiful (Great American Cleanup) Clean Air Champions Commuter Challenge Stamford, Connecticut Ottawa, Ontario, Canada Toronto, Ontario, Canada www.kab.org www.cleanairchampions.ca www.pollutionprobe.org/2007CAC Keep Etowah Beautiful, Inc. The Columbus Zoo Recycling Council of Ontario Gadsden, Alabama ZooAides Teen Volunteer Program Toronto, Ontario, Canada Columbus, Ohio Sea, Sand & Stars Nature Center Logan Martin Lake Protection Association www.columbuszoo.org Orange Beach Elementary School Pell City, Alabama www.lmlpa.org Community Against Pollution, Inc. Orange Beach, Alabama Anniston, Alabama www.orangebeachelementary.com Living Lands & Waters Foundation www.ag.auburn.edu/auxiliary/grassroots/cap/ Seattle Aquarium Society East Moline, Illinois index.htm Seattle, Washington www.livinglandsandwaters.org Earth Rangers www.seattleaquarium.org Madrona Marsh Preserve Woodbridge, Ontario, Canada Wallowa Resources, Inc. Torrance, California www.earthrangers.ca Enterprise, Oregon www.friendsofmadronamarsh.com Legacy, Inc. www.wallowaresources.org Nature Conservancy Montgomery, Alabama The Wilds Ohio Chapter www.legacyenved.org Cumberland, Ohio Dublin, Ohio www.nature.org/wherewework/northamerica Living Classrooms of the www.thewilds.org /states/ohio National Capital Region Washington, D.C. New Tecumseh Streams Committee www.livingclassroomsdc.org Alliston, Ontario, Canada Madison Children’s Museum Palos Verdes Peninsula Land Conservancy Madison, Wisconsin Rolling Hills Estates, California www.madisonchildrensmuseum.org www.pvplc.org Nature Canada Upper Chattahoochee Riverkeepers Ottawa, Ontario, Canada Gainesville, Georgia www.naturecanada.ca www.ucriverkeeper.org South Carolina Adopt-A-Highway http://www.dot.state.sc.us/community /adoptahiway.shtml Tree Canada Ottawa, Ontario, Canada www.treecanada.ca Honda 2008 North American Environmental Report 41 North American Corporate Profile
Honda manufactures, sells and services a broad array of automobile, power equipment, and powersports products in its North American region. This is Honda’s single largest market for the production and sales of Honda and Acura automobiles, and as such represents a significant part of our company’s global effort to reduce its environmental footprint, particularly in automobile production and in-use CO2 emissions.
Key Data Key North American Locations
Capital Investment More than $10 billion in North America
Employment More than 35,000 associates in Map Legend North America
Parts Purchases Major Manufacturing More than Facilities $18.8 billion in parts and materials purchased from Major more than 600 Manufacturing Facilities North American (under original equipment development) manufacturers in the fiscal year ended March 31, 2008. Research and Development Centers
Parts Centers
Sales and Marketing Headquarters
United States Canada Mexico
Honda Companies American Honda Motor Co., Inc. Honda Canada, Inc. Honda de Mexico, S.A. de C.V. Covered in this Report American Honda Finance Corp. Honda of Canada Mfg., Honda North America, Inc. a division of Honda Canada, Inc. Honda of America Mfg., Inc. Honda R&D Americas, Inc. (Canada) Honda Manufacturing of Alabama, LLC Honda Power Equipment Mfg., Inc. Honda of South Carolina Mfg., Inc. Honda Transmission Mfg. of America, Inc. Honda Manufacturing of Indiana, LLC Honda Engineering North America, Inc. Honda R&D Americas, Inc. Honda Trading America Corp. Honda Precision Parts of Georgia, LLC Honda Aircraft Company, Inc. Honda Aero, Inc. Additional information on Honda and Acura products and corporate activities can be found at: www.honda.com http://www.honda.ca http://www.honda.com.mx www.corporate.honda.com
The 2008 Honda Environmental Report is printed with soy-based inks on recycled paper containing 100% post-consumer waste fiber. The paper is manufactured with wind power and certified by the independent, nonprofit U.S.-based Green Seal organization and by the independent, U.K.-based Forest Stewardship Council (FSC). The report is also 100% recyclable.
All trademarks, trade names, service marks, and logos referenced herein belong to their respective companies. All images contained herein are either owned by American Honda Motor Co., Inc., or used under a valid license. It is a violation of federal law to reproduce these images without express written permission from American Honda Motor Co., Inc., or the individual copyright owner of such images. Specifications, features, illustrations and equipment shown in this report are based upon the latest information available at the time of printing. Although descriptions are believed to be correct, accuracy cannot be guaranteed.
©2008 American Honda Motor Co., Inc.