Honda Business Activities
In order to promote its initiatives to mitigate its environmental footprint arising from its own operation – from product development through end-of-life, and each domain sets its own mid-term policies and internal voluntary targets for environmental initiatives.
As environmental awareness and demand for electric models continue to rise, Honda is committed to addressing these environmental challenges. That’s why we strive to achieve carbon neutrality for all Honda products and corporate activities by 2050
Automobile
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Motorcycle
To achieve Honda’s targets, we will continue to introduce a variety of electrified products to exceed the expectations of people in the Asia and Oceania region. |
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Reducing the Environmental Impact Together with Suppliers
Honda shares the Honda Supplier Sustainability Guidelines with its suppliers and promotes activities to reduce environmental impact.
We also declare emission reduction target of the region to suppliers in order to request their cooperation to promote concreate implementation and checked through the GHG survey. In addition, we share the guideline and the grand design with all suppliers in each region, and with their consent, jointly works to realize a low-carbon supply chain.
Initiatives to Achieve Carbon Neutrality
Honda are working together to actualize Honda’s Net Zero goal for products and activities by 2050.
As of the present, A&O Purchasing has collected suppliers’ carbon reduction plan towards 2050, covering 70% of high purchasing amount. Reduction initiatives are constantly shared among Honda groups to create reduction ideas for all to implement. By combining efforts from suppliers and A&O production bases, we hope to gradually reach Carbon Neutrality.
Management of CO2 Data
In FY2022, the 9th year survey, A&O Purchasing Department achieved the accumulated CO2 reduction amount at -30.90% comparing to FY2013 Base Year, which is considered -7.68% comparing to the last year.
The result shows good cooperation and effort from our suppliers as well as Honda Manufacturing Companies in A&O for both Automobile and Motorcycle & Power Product Purchasing function throughout. Also, A&O team will comprehensively analyze data to enhance suppliers’ reduction and implement PDCA cycle to reach emission target. Some examples of renewable energy introduction activities from our suppliers are shown as above pictures.
Initiatives to Reduce CO2 Emissions in the Supply Chain
Honda promotes initiatives together with suppliers to reduce CO2 emissions.
In Asia & Oceania, Honda sets CO2 emissions reduction target for its suppliers and promotes reduction initiatives in partnership with each of them. We hope to align with Honda Motor’s direction, enabling suppliers to analyze progress towards these goals soon.
Reducing the Environmental Impact Together with Suppliers
With the aim of ultimately achieving zero CO2 emissions and zero energy risk, Honda is focusing on the reduction of energy consumption and CO2 emissions while expanding production/sales globally. In the future, Honda will aim at sustaining a reduction until the rate of the energy consumption reduction exceeds the rate of the energy use increase for the manufacturing of products.
Toward the realization of the abovementioned target, when building or renovating manufacturing plants, Honda aggressively introduces the latest energy-saving technologies and know-how at the plants.
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, and at the same time, it is enhancing technical support from Japan.
In addition, Honda is actively introducing renewable energy around the world. Honda’s business sites across the world used 1,927 GWh of power derived from renewable energy sources, such as solar and wind, in FY2023. (155 GWh from A&O region – increase 45% from the previous year)
Honda Philippines, Inc. (HPI) has launched a 1.056 MW rooftop solar power system, marking a major step towards sustainability. This new installation captures sunlight to produce over a third of HPI’s peak daytime energy needs, generating 1,267 MWh of clean energy per year. The project significantly reduces HPI’s dependence on fossil fuels, supporting environmental conservation efforts
A&O Environmental Cross Genba Verification ActivityIn order to strengthen the environmental management at A&O production sites, we’ve established an A&O exclusive activity, “Environmental Cross Genba Verification,” which aims to improve management to a high level. |
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Basic Approach to Logistics
At Honda, many parts that are used in its products are transported from suppliers to its factories. Likewise, the completed models, as well as parts for services and repairs, are sent directly from the factories to dealers. Honda, which transports large volumes of goods from upstream to downstream in the manufacturing process,
considers the reduction of environmental burden and compliance risk management as important issues, as well as improving efficiency in logistics.
Honda is working together with logistics companies to reduce environmental impact and, as a shipper, to reduce the burden on drivers in the context of the 2024 logistics issue as a social responsibility.
Logistics Initiatives
In the area of logistics, Honda is taking the following two major initiatives with logistics companies:
(1) Reduction of environmental impact; efforts to achieve carbon neutrality by 2050
(2) The 2024 logistics issue: Reducing the burden on drivers as a shipper’s responsibility.
Reduction of environmental impact
Honda is taking the following two major initiatives to reduce environmental impact:
1) Highly efficient transportation
Improving Transportation Efficiency via Co-Creation with Suppliers
To minimize the logistics losses incurred by our suppliers, we ask them to deliver products to the nearest cross-dock (XD) of their shipping bases. From the XD, Honda then combines the products within a multi-company consolidation to transport them efficiently.
The effects of these measures have contributed to a reduction in the loads handled by distant suppliers and also a reduction in CO2 emissions.
Container Round UseSince containers are rented from shipping companies, it is a common business practice to return them promptly However, since Honda has both export and import cargo, it negotiated with the respective shipping |
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2) Low-carbon transportation
Honda is working to expand the modal shift from trucks to rail and ship, mainly for transportation to distant regions.
As part of its modal shift efforts in Japan, Honda is gradually switching long distance transportation
routes for motorcycles, power products, and automobiles to rail and ship transportation.
As part of its overseas efforts, in India and Vietnam, the Company is switching from truck to rail and
ship for transportation to distant regions. Similarly, in China, the Company is switching from truck transportation to rail transportation
Efforts to address the 2024 logistics issue
The 2024 logistics issue is a generic term for the risk that new rules and obligations are imposed on carriers, shippers, and recipients of goods by the Work Style Reform Laws, making it impossible to transport goods as before.
Honda has made a Voluntary Action Declaration for White Logistics Promotion in 2019 and has been working to improve logistics aiming to realize highly productive logistics and work style reform.
Based on the government guidelines issued in June 2023, Honda has been studying how to respond to the 2024 logistics issue. Additionally, to comply with the Voluntary Action Plan for Optimizing Distribution and Improving Productivity formulated and issued by the Japan Automobile Manufacturers Association (JAMA) in December 2023, the Company is working to ascertain the actual status of its logistics operations and to make improvements.
Honda will continue to work with logistics providers and suppliers to improve the efficiency of logistics throughout the supply chain and to create a comfortable working environment for all drivers.
| 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. |
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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.
Honda’s Approach
In promoting nature symbiosis initiatives toward Nature Positive, Honda has set “biodiversity conservation” as a materiality.
Honda operates its business with the benefit of natural and mineral resources. Honda recognizes that it depends on and affects a great deal of natural capital not only in the procurement of raw materials, but also in the entire value chain from R&D, manufacturing, use, and disposal after use. Based on the basic concept of harmonizing natural capital and corporate activities, the Company is promoting initiatives to achieve this objective.
In line with the Honda Biodiversity Guidelines established in 2011, Honda is working to avoid or minimize impacts on nature, including air, water, and biodiversity, as well as to conserve and restore them.
Priority Site Assessment
In concretizing biodiversity initiatives at our production sites, we used indicators from the Integrated Biodiversity Assessment Tool (IBAT) to perform a comprehensive evaluation of biodiversity risks at these sites. Specifically, the evaluation was conducted from the following six perspectives: “number of protected areas,” “number of key biodiversity areas (KBAs),” “number of endangered species on land,” “number of endangered species in watersheds,” “potential to reduce extinction risk through conservation activities,” and “effectiveness of environmental restoration / nature rehabilitation through conservation activities.” We then identified sites with relatively high risk.
Priority site assessment: Biodiversity Conservation Heat Map
Activities to Protect and Restore Biodiversity
Indonesia: Conservation of Flora and Fauna with Emphasis on Biodiversity
P.T. Honda Prospect Motor, an automobile production plant, is working with the local community to conserve biodiversity on its premises. Sixty-five animal species have been identified, including native species such as the Javanese black chicken and a variety of endangered species. In addition, as part of its plant conservation efforts, the company has established a plant nursery on its premises to cultivate and conserve local plant species, further strengthening the efforts to conserve the rich biodiversity of the region.
Conserving Water Resources
Honda recognizes the potential impact on local communities and downstream water resources in areas where we draw water and is committed to water conservation.
With the aim of achieving zero industrial water withdrawal by 2050, we are also working to minimize water use, such as utilizing recycled water and water conservation, taking into account local conditions.
In addition, with an eye on supply risks that could affect our businesses and depletion risks that could affect local communities, we aim to reduce the total amount of water withdrawn across all Honda corporate activities.
Water is a resource that is unevenly distributed by region and season, etc. At our production sites that use a large amount of water, we verify and identify risks in terms of water resources, groundwater, drought, water quality, regulations/rumors, etc. in these areas by using evaluation indicators such as AQUEDUCT and Water Risk Filter. We are thus promoting risk-based initiatives.
Operational risk: Water heat map
