NORTH AMERICAN ENVIRONMENTAL REPORT Emissions Typically Come from Painting Operations

Life Cycle Assessment Manufacturing Air Emissions — — Honda plants release various “criteria” air contaminants, including 47 Air Emissions volatile organic compounds (VOCs), particulate matter (PM), oxides of nitrogen (NO ), oxides of sulfur (SO ), and carbon monoxide (CO). VOC x x In calendar year 2013, Honda’s North American manufacturing 2014 NORTH AMERICAN ENVIRONMENTAL REPORT emissions typically come from painting operations. PM emissions usually plants released approximately 4,500 metric tons of criteria air result from metal casting and finishing processes, and from painting pollutants. Overall, 85.0% of the air contaminants released Table of Contents operations. NO and CO emissions typically result from the combustion x were VOCs. of natural gas and other fuels for heating and process needs, and from North American 2014 Environmental Report CEO Letter the use of engine and full-vehicle testing dynamometers. MAKEUP OF AIR EMISSIONS FOR N.A. MANUFACTURING FACILITIES Life Cycle Assessment Life Cycle Assessment Administration Purchasing 40,000 Executive Summary Air emissions are permitted and controlled in accordance with Green Purchasing Guidelines 0.4% — 85.0% Volatile Organic 5.1%5 — .30 Green Building37,228.2 Initiatives applicable laws and regulations. Each plant routinely monitors,Life Cycle tracks, AssessmentIn 2001 “Green Purchasing” guidelines were created to guide Honda’s environmental conservation activities in the area of 36 36,423.1 Honda Environmental Vision purchasing. In 2011, Honda’s North American Purchasing group worked with parent company Honda Motor Co., Ltd. to revise 0.30 Product Development the original guidelines, focusing on improved tracking and2.9% a reduction in the environmental impact beyond primary suppliers 2014 NORTH AMERICAN Compounds (VOCs)34,984.8Over the past two decades, Honda has been incorporating sustainable concepts into facility construction and 67 ENVIRONMENTAL REPORT throughout the extended supply chain. 34,486.9 and reports emissions levels to regulatory agencies in accordance 4.49 operation, including the use of locally-harvested and manufactured construction materials, cool roofs, dual-paned 6.6% 30,000 Table of Contents The guidelines, which apply to all parts and materials suppliers Reduction targets were communicated to reporting suppliers through Per Unit CO 2014 NORTH AMERICAN 4 CEO Letter glass, high-recycled-content materials,Management and energy-efficient and lighting. Direction around the world, consistently communicate Honda’s expectations, the North America Environmental Symposium, Executive Summaries 6.6% Nitrogen Oxide ENVIRONMENTAL REPORT with federal, provincial, and state requirements. Honda factories areenabling Honda to provide customers with worldwide products that issued to suppliers’ top executives, and supplier(thousands of pounds) meetings..27 Executive Summary .28 have a minimal environmental footprint. Over the past two decades, Honda has received environmentally-friendly building certification put forth by LEED New Automobile Concepts, Products, and TechnologiesIn FY14, Honda saw a 44 percent Introduced increase in the number of suppliers in FY14Honda Environmental Vision that reported Greenhouse Gas data. Increases came as more (Leadership in— Energy & Environmental Design), Energy Star, and Green Globes. Honda now has 12 LEED-certified Supply Chain Environmental Initiatives Management.26 and Direction routinely inspected for compliance with legal requirements. suppliers voluntarily reported, companies that had previously3.42 3.47 2.9% Particulate3.45 Matter— reported encouraged their sister facilities to report, and an increase green buildings in North America — Lifethe most Cycle of any automaker Assessment in the region — and one facility that has earned Honda FCEV Concept Management activities that ensure environmental control Life Cycle Assessment 3.29 30 in total spend 3percentage added some suppliers. during the manufacturing and transporting of products, (MT x 100,000) 1 Supplemental Information 2 a Three Globe rating from Green Globes. In addition, three North American manufacturing plants earned an Honda has paced the automotiveparts, and materials industry for nearly twoTo decades encourage suppliers in to theshare their development ‘best practices’ and learn and deployment2.92 of fuel cell electric vehicle Emissions how to begin shifting their focus from data reporting20,000 to energy .25 Energy Star rating from the U.S. Environmental Protection Agency. Activities to reduce greenhouse gas emissions in all reduction, Honda hosted85.0% webinars, conducted face-to-face meetings 5.1% Carbon Monoxide2014 NORTH AMERICAN (FCEV) technology through2 corporate extensive areas real-world testing, including the first government fleet deployment and retail customer VOC Emissions from Auto Body Painting with suppliers, and developed informational resources for suppliers Supplemental Information to utilize. Official results of the program will be available beginning .25 .25 ENVIRONMENTAL REPORT 0.25 Parts and material proposals to achieve weight reduction leasing program. Honda has made significant technologicalin FY15. advancements in FCEV operation in both hot and sub-freezing 3 and reduce energy usage 2 Honda New, Existing, and Green Buildings in North America Auto painting operations are the primary source of volatile organic Future Greenhouse Gas Direction 0.4% Sulfur Oxides weather, and meeting stringent Compliance emissions with various laws and requirements regulations, as well as Toand aid suppliers safety in their data regulations. collection efforts in FY14, Honda Honda continued to gain valuable experience Table LEED of CERTIFIED Contents BUILDINGS Emissions 2 4 the Honda Chemical Substance Management Standard (MT) implemented the Honda Environmental Data Management 3,459.6 FACILITY CERTIFICATION DETAILS through the leasing of the FCX Clarity to select customersSystem in (HEDMS) California collection system in inFY14. North America. Also It is a in FY14, Honda introduced the Honda compound (VOC) emissions released from Honda’s North American global system for which on-site training was held with interested 296.9 .23 CEO Letter Honda Gold 82% of construction debris (47 tons) was diverted from landfill. suppliers in March 2014. It was rolled out for 2014 GHG reporting Jun 2012 FCEV Concept at the LosSupply Angeles Chain Greenhouse International Gas Initiative Auto Show. The concept expresses a potential styling direction for Honda’s Financial Services Low mercury lamps in all light fixtures result in a 40% reduction in energy use for lighting. to impacted suppliers.1 50 Honda initiated the Greenhouse Gas Initiative in FY11 to develop Southeast Executive Summary Forced-air hand dryers in restrooms reduce carbon footprint for this activity by 70%. manufacturing plants. It has always been Honda’s policynext-generation to minimize fuel cella more vehicle comprehensive launching picture of the challenges in theassociated U.S. with andIn addition,Japan Honda in helped CY15, guide suppliers followed in shifting their by focus its introduction in Europe. Regional Office from dataTotal CO collection to begin the Energy Reduction process. tracking and reporting greenhouse gas emissions data in its supply 90% of the facility’s equipment meets Energy Star requirements. chain. In FY14, Honda worked with suppliers to not only encourage Honda created a process to work with suppliers toward achieving more data reporting, but also to work toward energy reduction as a established reduction targets and communicated with supplier upper 08 10 11 Honda 12Environmental Vision13 A “green cleaning” program reduced exposure to potentially harmful chemical compounds. the release of VOCs by adopting less-polluting painting processes way to reduce emissions. management to assure communication and understanding through 09 Honda’s next-generation FCEV will feature the world’s first Material Diverted from Landfill their organization.0 FY FY FY FY .20 FY HondaFY Engineering Silver Low-flow toilets and urinals, energy-efficient lighting controls, and cool roof materials. application of a fuel cell powertrain that fits completely within the Management andAmerica Direction version 2.2 11 0.20 Sustainable HVAC system features including enhanced equipment commissioning and whenever possible. VOC emissions from auto-body painting operations 08 09 10 12 13 Powertrain Division Jul 2011 engine compartment of the vehicle, allowing for efficiencies in FY FY FY FY refrigeration management. FY FY Life Cycle Assessment cabin space, as well as flexibility2 in the potential future application Honda Canada Gold North-south building orientation, energy-efficient underfloor air-distribution system, in FY14 were well below the company’s targeted maximum of 20 g/m . Headquarters Facility Jul 2011 heat-reflective white roof, and on-site storm water treatment using bioswales. of fuel cell technology to multiple vehicle types with a considerable Supplemental Information Efficient water management system reduced potable water use by 44% reduction in cost. Significant technological advancements to the (compared to previous facility). fuel cell stack have yielded more than 100kW of power output with Use of locally sourced materials and 75% reuse or recycling of waste materials during construction phase. VOC EMISSIONS FROM AUTO BODY PAINTING IN NORTH AMERICAa power density of 3 kilowatts per liter, an increase of 60 percent Honda Manufacturing Certified The first LEED-certified building in Indiana’s

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