Initiative for Carbon Neutrality

Honda’s Approach

In promoting initiatives for carbon neutrality, Honda has set “addressing climate change issues” as a materiality.

The Company is actively working to reduce CO2 emissions and environmental impact through its corporate activities and initiatives in product areas, mainly by promoting the introduction of environmentally innovative technologies towards carbon neutrality, including the electrification of its products.

Initiatives in Product Areas

Key Initiatives to Expansion and Promotion of Electric Products

Expanding the Range of Attractive Electric Products

As part of its approach to becoming carbon neutral by 2050, Honda considers electrification to be the most effective solution for small mobility, including motorcycles and automobiles. To steadily promote the spread and expansion of electric products, it is important to expand the lineup of electric products and provide attractive electric products and value that will be selected by customers.

Honda will launch the first model of the Honda 0 (zero) Series in 2026, positioning the series as a cornerstone of its future EV business. The Honda 0 Series is an entirely new EV series created from scratch using a fresh development approach called “Thin, Light, and Wise.”

Providing Value of Honda 0 Series: The “Thin, Light, and Wise” development approach provides the following five core values:

  • Advanced Driver Assistance Systems (ADAS) for enhanced safety and security
  • New spatial value created through IoT and connected technology
  • High energy efficiency for improved electric vehicle performance
  • The joy of driving with a harmonious integration between driver and vehicle
  • Artistic design that resonates and captivates

For its motorcycles, Honda will expand its product lineup and promote the market launch of electric motorcycles. In October 2024, Honda launched the electric motorcycle personal commuter “CUV e:” in Indonesia, powered by two replaceable “Honda Mobile Power Pack e:” batteries, followed by the “Activa e:” in India in November 2024, also powered by two replaceable batteries. Additionally, models equipped with fixed batteries were announced. This demonstrates Honda’s steady progress in expanding its lineup of electric motorcycles.

In the power products business, Honda is positioning the power unit and garden sectors as key domains for electric products and will accelerate its efforts towards electrification. Honda is enhancing its product development capabilities and cost competitiveness through synergies among different business segments. This includes improving technological capabilities through horizontal deployment of technologies and increasing production efficiency by sharing product parts. This approach is also true for the electrification of its products, and Honda will continue to leverage its strength in having a diverse range of mobility products.

Three Initiatives to Reduce CO2 Emissions

Emissions from the “use of products” account for approximately 80% of CO2 emissions in Honda’s entire product life cycle.
In light of this, Honda works to reduce CO2 emissions during the usage of all of its products and manufactures and sells environmentally friendly products.
Honda will promote the following three initiatives in phases to reduce CO2 emissions, while expanding production and sales globally.
(1) Reducing CO2 emissions by improving the efficiency of internal combustion engines
(2) Reducing CO2 emissions by applying environmentally innovative technologies and diversifying energy sources
(3) Eliminating CO2 emissions through the use of renewable energy and total energy management
Honda established the Honda Environmental Performance Standard (HEPS) in 2011 and promotes them with operational guidelines.

●High-Efficiency Products
Products that emit less CO2 emissions thanks to improved internal combustion engine efficiency. This category includes products that incorporate technologies for improving fuel combustion and transmission efficiency and reducing friction between engine parts. Compliance is determined based on how well a product reduces or helps reduce CO2 emissions during use compared to preceding models.

●Innovative Products
Products that emit less CO2 by using an environmentally innovative technology or an alternative energy source. This category includes motorcycles that incorporate Honda’s patented Idling Stop System, automobiles that incorporate hybrid technologies or direct injection engine technologies, and power products with electronic fuel injection (FI). Alternative energy technologies include motorcycles and automobiles that can run on ethanol and power products that can run on gaseous fuels. Compliance is determined based on how well a product reduces or helps reduce CO2 emissions during use compared to preceding models.

●Revolutionary Products
Products that reduce or eliminate CO2 emissions by harnessing renewable energy or facilitating total energy management. This category includes products that incorporate electromotive technologies or technologies for using renewable energy.

Promoting Life Cycle Assessment (LCA)

Honda recognizes that the promotion of LCA is an important initiative not just in reducing CO2 emissions across product life cycles, from raw material procurement to product disposal, but also in implementing efforts for Triple Action to ZERO.
Honda has been quantitatively calculating and assessing CO2 emissions from all business activities by using its original LCA system. Accordingly, the production, purchasing, sales and service, administration and transportation departments have been carrying out activities geared toward lower carbon emissions.

Advancement in Aggregating Corporate GHG Emissions

To identify the major sources of CO2 emissions (hotspots), Honda has developed and implemented a method for calculating CO2 emissions for each component by breaking down approximately 20,000 parts into about 50 types of constituent materials.

Currently, CO2 emissions during the manufacturing of materials and components are calculated using simplified methods based on industry averages. However, moving forward, it will be possible to more accurately assess CO2 emissions reduction efforts by measuring the actual energy consumption during the manufacturing process.

Based on the belief that accurate assessment of CO2 emissions enables more effective measures, we are advancing the implementation of a system that can aggregate and analyze CO2 emissions data across the entire Honda value chain, including not only our own corporate CO2 emissions (Scope 1 and 2) but also Scope 3 emissions. We aim to utilize the analysis results that we obtain to enhance strategies and measures for further CO2 emission reductions, aiming to achieve carbon neutrality.

Efforts to Calculate Product Carbon Footprint

To achieve carbon neutrality by 2050, we are focusing on effective CO2 emission reductions through product electrification and striving for more sustainable and environmentally friendly manufacturing.

To this end, we are quantifying the product carbon footprint across the entire lifecycle and examining areas such as material and component manufacturing, which may result in higher CO2 emissions compared to traditional products. We are also developing technologies and improving product specifications to enable CO2 emission reductions associated with product electrification.

Moving forward, we will incorporate the findings from our carbon footprint assessments into the early stages of product design and development processes, continuously promoting our activities for a lower carbon future.

Carbon Footprint Comparison of N-VAN (ICE) and N-VAN e: (EV)

Initiatives for Internal Carbon Pricing (ICP)

Honda has started operating ICP system from 2023 to further accelerate the reduction of CO2 emissions at its Japanese business sites. (Carbon price: 15,000 yen per metric ton of CO2)

The amount of carbon reduction is converted into a monetary value that can be used as one of the factors when making capital investment decisions.

Going forward, to expand the operation to overseas sites, Honda will select representative sites and begin trials mainly in the area of production.

The Company will continue to revise the system and apply it to its global sites in light of social conditions and internal performance