Initiative for Carbon Neutrality

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.

Honda views changes in social needs and the social structure induced by climate change and energy diversification as key challenges and actively promotes its product electrification efforts.

Increasing the lineup and use of electrified products will reduce CO₂ emissions when in use and contribute to lowering climate change risks.

In addition, the battery mounted on electrified vehicles can be used as a power source for leisure activities or during an emergency, thereby improving the quality of customers’ lives.

Honda has set the target of electrifying 15% of motorcycles, 30% of automobiles and 36% of power products, respectively, as a ratio of global sales* in 2030.

Furthermore, the Company has set the reduction rate of product CO₂ intensity by 34.0% for motorcycles, 27.2% for automobiles and 28.2% for power products (compared to FY2020) and is promoting efforts toward carbon neutrality.

* Sales ratio of battery-powered electric motorcycles and electric bicycles for motorcycle products; battery powered electric vehicles and
fuel cell vehicles for automobile products; and electrified products for power 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.
As a result of the certification of products that were launched in FY2024, 18 motorcycle models, 36 automobile models and 3 power products models — a total of 57 models — were HEPS-certified. In addition, there were no violations in product and service information or labeling in general.

●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.

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.
Honda has established procedures for calculating the environmental impact of its products over their life cycles based on the ISO 14040 and 14044 standards and conducts assessments accordingly.
The calculation procedures have been certified by TÜV Rheinland in Germany in April 2023.
In the future, Honda will utilize the procedures more extensively to propose low-carbon solutions in the development stage and to reduce environmental impact in the resource areas.

Total CO₂ emissions calculated by Honda’s LCA system (Calculated in April 2024)