2005 Honda Environmental Annual Report Commitment to the future Honda Environmental Information Disclosure Honda traditionally published two types of brochures as its pri- mary means of disclosing environmental information. These Honda Environmental Annual Report were the Honda Environmental Annual Report and Honda ...Annually ECOLOGY, both of which were available to the general public on the Internet. We published these two different brochures to convey and disclose environmental information in order to strengthen our two key concepts: Honda It is vital that we convey accurate information on the pro- Environmental gress made in our environmental commitment during the Annual Report ...Annually previous year by clearly distinguishing between “annual results” and “past results and future efforts.” Environmental annual report Description of Honda’s latest * We see the Honda Environmental Annual Report as an environmental activities and the specific results achieved in the integral part of our PDCA (Plan, Do, Check, and Act) previous fiscal year Process, relating to our environmental commitment made over the entire report year. It is important to convey a full picture of our environmental commitment—past, present, and future—so that the gen- Honda ECOLOGY ...Every three years eral public is able to assess our results for the year for Environmental annual report themselves. This provides them with the essential infor- In our integrated environmental annual report, we will mation by which we are judged. appropriately introduce and explain Honda’s commitment to environmental activities in all aspects, including Honda’s This year, however, we have integrated the Honda Environmen- basic attitude towards the environment, the environmental tal Annual Report and Honda ECOLOGY, in order to reduce the conservation activities burden on readers who had to read two different brochures to conducted by Honda’s departments, and the future review Honda’s environmental activities, and to make these re- direction of Honda’s environmental measures, while ports easier to understand in view of the reports becoming focusing on accurately Brochure describing communicating the progress more complex due to increased technical details. environmental activities that Honda has made in its Full and detailed explanation of environmental activities to the In this integrated environmental annual report, we will appro- Honda’s environmental readers. activities, including its basic priately introduce and explain Honda’s commitment to environ- stance towards the environment, the environmental mental activities in all aspects, including Honda’s basic policy conservation activities conducted by each toward the environment, the environmental conservation activi- department, and future ties conducted by Honda operations, and the future direction of environmental directions Honda’s environmental activities, while focusing on accurately Note: This report has been compiled on the basis of Honda guidelines. communicating the progress that Honda has made in its envir- onmental activities. Please evaluate Honda’s environmental commitment based on this report. We will utilize this report as a means to promote communication with all consumers and to further improve our environmental activities. Honda’s environmental activities are fully disclosed on the following website as well: http://world.honda.com/environment/ Picture on the front cover: Space by Tokuro Sakamoto 02 CONTENTS 2 Honda Environmental Information Disclosure 4 Introduction: 4 Striving to Become a Company that Society Wants to Exist Segments Covered 6 Toward an Environmentally Advanced Company by the Report —In Publishing the Honda Environmental Annual Report 2005 8 Honda’s Advanced Environmental Measures Period covered Fiscal 2004 (from April 1, 2004, to Fundamental Principle and Vision March 31, 2005) 12 Honda Environment Statement Areas covered Mainly Japan and some overseas 12 Assessment of and Our Policy on the Environmental Load Generated by Our Corporate Activities areas 13 Organizations covered Honda Motor Co., Ltd.; Honda R&D Co., Ltd.; 14 Medium-Term and Annual Targets and Results Honda Engineering Co., Ltd; 14 Specific Targets to Be Achieved and Results to-date Honda Motorcycle Japan Co., Ltd.; 15 Results for Fiscal 2004 and Targets for Fiscal 2005 and the following production companies and subsidiaries outside 16 Environmental Management of Japan 16 General Policy/Organization 17 Role North America 18 Environmental Management by Honda’s Business Sites/Environmental Audits Honda of America Mfg., Inc. (U.S.) Environmental Accounting/Environmental Training Honda Transmission Mfg. of America, Inc. (U.S.) 19 Promotion of Life Cycle Assessment (LCA) Honda Power Equipment Mfg., Inc. (U.S.) 20 Honda of South Carolina Mfg., Inc. (U.S.) 21 Environmental Risk Management Honda Mfg. of Alabama L.L.C. (U.S.) Honda Canada Inc. (Canada) 22 Results of Environmental Conservation Activities in Fiscal 2004 Honda de Mexico, S.A. de C.V. (Mexico) 22 Product Development Domain 23 Automobiles Achieving Cleaner Exhaust Gas South America 25 Improvement in Fuel Economy Moto Honda da Amazonia Ltda. (Brazil) 27 Alternative Fuel Vehicles/Noise Reduction Honda Automoveis do Brasil Ltda. (Brazil) 28 Motorcycles Achieving Cleaner Exhaust Gas 29 Improvement in Fuel Economy/Noise Reduction Europe Power Equipment Achieving Cleaner Exhaust Gas Honda of the U.K. Mfg., Ltd. (U.K.) 30 Improvement in Fuel Economy/Alternative Fuel Technology/Noise Reduction Honda Europe N.V. (Belgium) 31 Honda Belgium N.V. (Belgium) 32 Purchasing Domain Honda Italia Industriale S.p.A. (ATESSA) (Italy) 33 Promotion of Green Purchasing C.I.A.P. S.p.A. (Italy) 34 Production Domain Montesa Honda S.A. (Spain) 35 Promotion of Green Factories Honda Turkiye A.S. (Turkey) 38 Transportation Domain Honda Europe Power Equipment S.A. (France) 39 Promotion of Green Logistics 40 Reduction in Packaging Materials by Product Category Asia and Pacific 41 Sales Domain Honda Automobile (Thailand) Co., Ltd. (Thailand) 42 Promotion of Green Dealers (Automobiles) Thai Honda Mfg. Co., Ltd. (Thailand) Expansion of Environmental Commitment to the Motorcycle and Asian Autoparts Co., Ltd. (Thailand) 43 Power Equipment Areas Honda Cars Philippines, Inc. (Philippines) Honda Philippines, Inc. (Philippines) 44 Disposal and Recycling (3R) Domain Honda Parts Mfg. Co. (Philippines) 45 Automobiles 3R Design/Reduction in Substances of Concern Honda Taiwan Co., Ltd. (Taiwan) 46 Motorcycles 3R Design/Reduction in Substances of Concern Honda Siel Cars India Ltd. (India) 47 Power Equipment Design for Recyclability/Reduction in Substances of Concern Honda Motorcycle and Scooter India (Pvt.) Ltd. (India) 48 Repair Parts Increasing the Recovery, Recycling, and Reusing of Repair Parts Honda Siel Power Equipment Ltd. (India) 50 End-of-Life Products Automobiles End-of-Life Vehicle Recycling Law P.T. Honda Prospect Motor (Indonesia) 51 Achievements in Fiscal 2004 P.T. Honda Precision Parts Mfg. (Indonesia) 52 Motorcycles Voluntary Recycling Activities P.T. Astra Honda Motor (Indonesia) 53 Office Domain Honda Atlas Cars (Pakistan) Ltd. (Pakistan) Promotion of Green Offices Honda Vietnam Co., Ltd. (Vietnam) 54 Honda Autoparts Mfg., SDN. BHD. (Malaysia) Honda Malaysia Sdn. Bhd. (Malaysia) 55 Social Activities 56 Green Renaissance Activities China 57 Cooperation in Low Emission Vehicle Fairs and Support for Dongfeng Honda Auto Parts Co., Ltd. (China) Environment-Related Seminars/Cooperative Activities with Local Communities/ Dongfeng Honda Engine Co., Ltd. (China) Support to NGOs and Environment-Related Foundations/Other Activities Dongfeng Honda Automobile Co., Ltd. (China) 58 Environmental Communication Guangzhou Honda Automobile Co., Ltd. (China) 59 Environment-Related Prizes and Awards Won by Honda Wuyang-Honda Motors (Guangzhou) Co., Ltd. (China) Jialing-Honda Motors Co., Ltd. (China) Related Data Honda Mindong Generator Co., Ltd. (China) 60 Environmental Data by Products Sold in Japan Sundiro Honda Motorcycle Co., Ltd. (China) 60 62 Data of Japanese Factories Note: For overseas manufacturing companies and subsidiaries, please refer to “Global Environmental Data (Production 72 Global Environmental Data Domain)” and “Environmental Activities Outside of Japan” in 74 Environmental Activities Outside of Japan this report. 76 Corporate Profile & Financial Data 03 Striving to Become a Company that Society Wants to Exist Takeo Fukui President and C.E.O. 04 Honda’s Dynamically Growing Business make us a leading company in the world in each area of Thanks to support from many people, Honda has been our business. We will seek to satisfy people all over the doing well in its business operations. world with our products and continue to do so over the next In fiscal 2004, Honda achieved record unit sales of generation. motorcycles, automobiles, and power equipment, and To this end, we must further strengthen our sites and provided its customers all over the world with as many as sources for creation, which means that it is of utmost 20 million engines in total. We also reached a record high in importance for individual associates of Honda to make net sales for the fifth time in five terms. decisions and behave themselves by their own initiative. By In addition, we have continuously taken on challenges improving individual associate’s “initiative,” “technical skill,” in new business fields looking toward the future, including and job “quality,” we can further drive Honda to increase its research on robot technologies,