Sustainability Report 2017
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1 Honda // Sustainability Report // 2017 SUSTAINABILITY REPORT 2017 Honda South America 2 3 Honda // Sustainability Report // 2017 Honda // Sustainability Report // 2017 05 1 Message from the Administration 09 About the Report 10 2 Materiality Matrix 13 About Honda 15 Strategy and goals 16 Business context 22 Vision 2030 – Honda South America 23 3 Honda Sustainability Pillars 25 Product 25 Innovation 28 Product safety 28 Respect for and commitment to customers 31 Fuel eiciency and reduction of emissions 33 Customer satisfaction contents 4 35 5 Supply Chain 39 Corporate Governance 40 Governance assessment systems used by Honda 40 Corruption and fraud prevention 40 Unfair competitive practices 41 Respect for national legislation and international standards 41 6 Ethics Channel and Committee 43 7 Impact on Society 49 8 Labor Practices 53 9 Occupational Health and Safety 57 Environmental Performance 57 Climate strategy 59 Ecoeiciency 60 Waste management and recycling 61 Rational use of water 62 10 Preserving biodiversity 63 11 GRI Content Index 76 12 Credits and Corporate Information 5 Honda // Sustainability Report // 2017 Message from the administration 01 G4-1, G4-2, G4-4, G4-8 Issao Mizoguchi President of Honda South America On March 31, 2017, we reached the launches: the tenth generation of the countries where we operate are end of another fiscal year (93 ki*) car that is the symbol of the brand in experiencing a downturn in their having experienced a period of the automobile segment, the New economy due to dropping commodity special milestones in Honda's history. Civic Generation 10, and the long prices, currency depreciation, and awaited CRF 1000L Africa Twin, which political problems. Last year, we celebrated 45 years in returned to the Brazilian Market. Brazil, 40 years with the Manaus plant Thus, in the last fiscal year, sales of and producing the country's best- Regarding results and the business the brand’s cars in Honda South selling vehicle, the CG motorcycle, in environment, we are experiencing America’s subsidiaries reached addition to 35 years of Consórcio one of the most challenging periods 139,175, representing a 15% Honda (Honda Purchase Pool). The in the history of the automobile reduction compared with the period also included important industry in South America. The previous period. * Japanese fiscal year that begins on April 1 and ends on March 31. 6 7 Honda // Sustainability Report // 2017 Honda // Sustainability Report // 2017 In the motorcycle segment, 849,523 units in the country, which was a In Honda Serviços Financeiros (Honda units were sold, down 15.23% volume 13% lower than in the previous Financial Services - HSF), the results, in It is important to highlight the performance of compared with the previous fiscal period - the total market remained at general, were similar to the figures of the Honda Energy wind farm, which achieved year. Despite a drop of 14% in the the level of about 4 million units per the whole business, but it is worth a record production of clean energy and has total South American market, in the year (new and used). This means that mentioning that we increased interest already prevented us from releasing over 16,000 region, the Power Products segment the fleet is aging and that there is a in our authorized dealer network with grew by 2.2%, with 88,294 units sold strong potential for replacing used the bank Banco Honda and the tons of CO2 into the atmosphere. thanks to the launch of new products motorcycles with new ones - insurance company Seguros Honda, a geared toward the agricultural and something that should occur gradually reflection of our new commercial construction markets. as the economic outlook improves. actions and partnerships. In Consórcio Honda, we achieved very positive In Brazil, our main market in South In the automobile segment, our sales results in the four-wheeler segment, Regarding our manufacturing the social project in Recife, which on improving people's everyday America, we adapted costs, sought in Brazil reached 121,361 units, a with a growth of 36%. operations, we believe in sound and reached 10 years in 2016 and lives, our brand has invested in nationalization of components, and volume within what was planned for responsible management, following is a source of pride for us. The global partnerships and research met the specific demands of local the current economic scenario. The Despite the signs of stabilization and principles of ethics, governance, initiative has helped hundreds to accelerate the development consumers; thus we were able to HR-V was the best-selling model in recovery for the South American and transparency in the market. of underprivileged youths have of technologies for the future of maintain our market share in all our line-up, remaining at the lead of economy, there are still many We will continue to invest in the the opportunity to get their first mobility. In our 2030 vision, our goal segments in which we operate. We the SUV segment. Also noteworthy uncertainties not only in the local search for solutions that reduce the job, build a career, and help their is to achieve a carbon-free society implemented the redirection agreed was the arrival of the WR-V on the political scenario, but also worldwide. environmental impacts generated families. with zero traffic accidents. upon at our global meeting in 2016, market, our fifth model produced Thus, for this fiscal year (April 1, 2017 by our activities and products, when we replaced the growth and locally. These achievements make us to March 31, 2018), we expect stability promoting a healthy relationship Essential to the market in which We are confident in the future. expansion agenda with a reform of even more competitive in an with slight growth, especially in the with the communities around our we operate, traffic safety is also We believe in the potential of the our organization, focusing on increasingly challenging market. second half, for our three main units and contributing to the future considered a priority at Honda's South American market and in the reacquiring profitability in order to segments. The results of HSF should of the next generations. units in South America. In the last dedication of our employees, who get through the adverse local Our sales of power products were also be similar to the performance of the fiscal period, over 30,000 people allow us to be a company that is scenario, and investing in a affected by the country's economic entire business. Also under this topic, it is important participated in our activities always desired and admired by sustainable structure suitable for the instability. to highlight the performance of the focused on traffic awareness and society. moment of market recovery. Honda Energy wind farm, which safe motorcycle riding. The actions We ended the period with 28,133 units achieved a record production carried out by the staffs at our Thank you very much! Despite the drop in sales of sold, representing a decrease of 2.3% of clean energy and has already Traffic Education Centers (CETH) in motorcycles and ATVs, we sold 725,000 compared with the previous fiscal year. prevented us from releasing Brazil, Argentina, and Peru are free Issao Mizoguchi over 16,000 tons of CO2 into the of charge and include theoretical President of Honda South America atmosphere. Among our social and practical training, as well as actions, I would like to highlight itinerant lectures. Always focused Sustainable and lasting relationships Customer satisfaction is a key factor for business sustainability. Our main goal is for consumers to have a complete positive experience with the Honda brand. To this end, in the 93 ki*, we officially launched a corporate customer relationship project, myHonda, on which we had been working for about three years. The initiative consolidates our strategy through accurate data about the path and perception of each person regarding our brand. Thus, we can establish a two-way communication to understand the needs and aspirations of each of our customers throughout the country, thereby providing them with the best customer experience. 9 Honda // Sustainability Report // 2017 About the 02 Report G4-3, G4-17, G4-28, G4-29, G4-30, G4-31, G4-32 Honda South America (HSA) annually In this issue, Honda sought to publishes its Sustainability Report contextualize readers on social, with the goal of maintaining a environmental, and governance transparent relationship with its issues relevant to its business, stakeholders and reporting on offering information about its the actions, projects, and results management, performance, and + INFO achieved. The information presented related initiatives. These material For suggestions regarding the in this document represents the aspects* guide the Report and content of the Report, please Japanese fiscal year –the company’s follow the guidelines of the Global contact e-mail : country of origin - and refers to the Reporting Initiative (GRI G4), a [email protected]. period from April 1, 2016 to March methodology adopted worldwide 31, 2017. It includes the regional by the private sector for building subsidiaries of the holding company and communicating Sustainability in South America, located in Brazil, Reports. Additional details about the Argentina, Peru, and Chile, unless indicators can be found in the GRI-G4 stated otherwise. Content Index. * Material topics are the most important and relevant issues for a company and also to stakeholder representatives. 10 11 Honda // Sustainability Report // 2017 Honda // Sustainability Report // 2017 Materiality Matrix G4-18, G4-19, G4-20, G4-21, G4-22, G4-23, G4-24, G4-25, G4-26, G4-27 In 2015, Honda South America began important aspects for the organization assessments for participation in the Priority matrix for the aspects the process of building its materiality were prioritized and validated by the Dow Jones Sustainability Index, DJSI), 50 matrix.