The Seven Domains of Honda Business Activities

In order to promote its initiatives to mitigate its environmental footprint arising from its own operation, Honda divides its business activities into seven domains – from product development through end-of-life, and each domain sets its own mid-term policies and internal voluntary targets for environmental initiatives.

PRODUCT DEVELOPMENT

Reducing CO2 emissions is critical to the preservation of the global environment. That is why Honda is aggressively pursuing development of fuel-efficient products, but it is also why we are working to reduce the carbon footprint of R&D processes themselves. Taking inspiration from the motto "low-carbon development of low-carbon products," we actively strive to reduce the various environmental impacts that arise from product development.

 Emissions from “use of products” account for approximately 80% of CO2 emissions from Honda’s entire product life cycle. In light of this, Honda works to reduce CO2 emissions during usage in all of its products with the following three initiatives to realize Honda’s commitment to halving total CO2 emissions by 2050 compared with 2000 levels.

  1. Reducing CO2 emissions through efficiency improvements of internal combustion engines
  2. Reducing CO2 emissions by introducing environmentally innovative technologies and diversifying energy sources
  3. Eliminating CO2 emissions through the use of renewable energy and total energy management

By implementing these three phases, Honda is steadily reducing CO2 emissions with three aims of ultimately eliminating them.

PURCHASING

Honda purchases an enormous number of product parts from suppliers. Their cooperation is thus essential to reducing environmental impacts in all areas of our business. We created the Global Environmental Vision for Purchasing to align activities toward this single objective, and are joining our worldwide network of materials and parts suppliers in a concerted and engaged effort to reduce the overall environmental impact of our operations.

 In 2018, two significant guidelines were issued to all suppliers - Supplier Sustainability Guideline and Green Purchasing Guideline.

The Supplier Sustainability Guideline was formerly known as CSR Guideline, which had been issued in 2015. As Honda is striving to become a company that society wants to exist, we have to follow the social trend to sustain our brand. Therefore, Honda updated and issued Supplier Sustainability Guideline in December 2018 and distributed it to first-tier part and major General Purchasing suppliers in order to keep our suppliers informed of the brand direction. We also conducted “Supplier Sustainability Activity” by going to supplier sites to confirm the actual situation (5 trial suppliers in Thailand).

Another guideline which was revised was Green Purchasing Guideline. Since its initial edition was released in 2011, many relevant regulations had not been added to the guidelines (Chemical substance management in processes and CFC reduction, etc.). To reflect all those regulations, we revised and distributed the guideline in March 2019 to all suppliers, Part suppliers, Raw Material suppliers, Indirect materials, Accessories, Service Parts, Logistic and Packing Materials.

Moreover, we are expanding CO2 reduction activities to all new suppliers to ensure that we can achieve the CO2 reduction target every year.

PRODUCTION

Honda produces a wide range of products, including automobiles, engines, automatic transmissions, motorcycles, and power products. Honda is actively committed to minimizing the impact of its manufacturing operations on the global environment, including waste generation, air and water pollutant releases, energy and natural resource consumption, and emissions of greenhouse gasses, primarily CO2.

 With the aim of ultimately achieving zero CO2 emissions and zero energy risks, Honda is focusing on the reduction of energy consumption and CO2 emissions. To support the energy-saving initiatives of various business sites operating around the world, the company has built a mechanism for promoting information sharing among business sites and regions.

In addition, Honda is actively introducing renewable energy around the world.

For example, our manufacturing sites in India generated a total of 56 gigawatt-hours (GWh) of electricity from solar power generation (combined on-site and off-site) in FY2019. Going forward, Honda will continue to use renewable energy befitting local conditions.

TRANSPORTATION

Honda in Asia and Oceania has begun initiatives to improve its efficiency in the transportation domain. As part of its efforts to reduce CO2 emissions and energy consumption, Honda is working to reduce the amount of packaging materials used to ship parts and is promoting the use of returnable containers. Honda has been developing environmental management systems jointly with its logistics partners and implementing other environmentally responsible logistics measures.

 Honda is always seeking new ways to improve their efficiency, to decrease their cost-per-unit, and to lead the way toward a more sustainable future.

In A&O region, we introduced returnable crates since 2006 for supplying parts between our companies in the region. Returnable crates can increase the overall efficiency of our logistics operations such as loading and storage efficiency. These crates reduce the time that is required to pack parts for transit and the time that is required to unpack them once they reach their destination. They also decrease the number of spare parts that must be kept in case of damage during shipment, as the interlocking reusable crates prevent the shifting of freight which can cause damage. In 2018, we also expanded the usage of returnable crates for supplying parts to Mexico and Pakistan.

Honda is committed to creating a sustainable future. The implementation of reusable crates has taken us one step closer to this goal. These crates reduce the waste of packing materials and prevent single-use boxes and crates from ending up in a landfill after just one use.

SALES AND SERVICES

Honda Asia and Oceania take environmental preservation as one of the most significant issues and through automobile and motorcycle sales and service activity, actively contribute to human health maintenance and environmental preservation and aim for an advanced dealer in that action.

Honda Asia and Oceania continuously strives to promote environmentally responsible practices to its dealers. As part of its Green Dealer program, the main pillars of its activities are “Proper disposal of end-of-life vehicles”, “Proper disposal of waste parts and oil,” “Rise in energy efficiency,” “Improvement in the level of environmental conservation” and “Contributions to the local community.” Through these activities we have been able to achieve significant results in terms of the measures to deal with the ever stricter environmental laws and regulations, cost savings and reductions through environmental activities, and educational activities.

By carrying out the activities for improving environmental conditions, it is possible for a dealer to be certified as a Green Dealer and to thus promote its active commitment to specific environmental efforts to a wide range of customers and the local community.

Currently, Green dealer activity has been implemented in Thailand, India, Indonesia, Vietnam, Philippines, Pakistan, South Korea and Taiwan.

PRODUCT RECYCLING

In the Asia and Oceania region, Honda has implemented reuse and recycling initiatives for products and service parts at the end of their useful life, with the aim of increasing the quantity of recycled and remanufactured parts and materials. These efforts include service parts recovered by Honda dealers during service repair.

 Honda considers the efficient utilization of resources one of the material issues and is actively promoting 3R (Reduction/ Reuse/ Recycling) activities as well as ensuring proper processing when disposing of end-of-life products.

Honda will continue the recycling of end-of-life components, including the collection/ recycling of end-of-life hybrid vehicle drive batteries.

ADMINISTRATION

In the Asia and Oceania region, Honda is promoting environmental conservation measures in the management of its office facilities. To minimize the company’s environmental footprint, Honda associates are developing measures based on their own ideas for more environmentally responsible operations in all business activities.