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INDEX Honda ENVIRONMENTAL ANNUAL REPORT 2014 Japan J01 INDEX J02 About the Honda Environmental Annual Report (Japan Report) Top Message J03 Message from the Japan Environmental Committee Chairman Setting a shining example for the world to follow Special J04 Honda Green Conference 2013 Direction J07 I NDEX J06 Tackling Environmental Issues in Japan Assessment of environmental issues and current recognition of their importance / Assessment of risks and opportunities relating to environmental issues / Honda Environmental Performance Standards (HEPS) / FY2012‒FY2014: Mid-term plans for operations-related environmental initiatives / FY2015‒FY2017: New mid-term plans for environmental initiatives Products J12 I NDEX J11 Next-Generation Technology Testing the MC-β micro EV on public roads Testing next-generation personal mobility solutions Development and testing of the fuel cell electric vehicle J15 Motorcycles Dunk 50-cc scooter / Pursuing quieter operation / Environmental data in Japan J16 Automobiles New VTEC Turbo / N-WGN and N-WGN Custom / Environmental data in Japan J18 Power Products HSL2511: snow blower with FI technology Management J20 I NDEX J19 Environmental management in Japan Environmental management organization / Environmental auditing / Environmental compliance and pollution prevention / Environmental education / Environmental accounting J25 Environmental Impact in Japan J26 The Eight Domains of Honda Business Activities J27 Product Development J44 Discussion / Environmental initiatives J30 Purchasing Discussion / Environmental initiatives J48 Discussion / Environmental initiatives J34 Production Transportation Discussion / Environmental initiatives J60 Product Recycling (3Rs) Discussion / Environmental initiatives J53 Discussion / Environmental initiatives J40 Sales and Service Administration Discussion / Environmental initiatives J57 IT Discussion / Environmental initiatives Philanthropic Environmental Initiatives Beach clean-up efforts / Watershed conservation / Environmental education / Cleanup campaigns / HondaWoods J63 Facilities in Japan that disclose environmental data J64 Promoting environmental communication J65 GRI Guideline Index J67 Publication data: Editorial concept, Design concept / Domain coordinators / Environmental Annual Report production staff / About the Honda global environmental slogan and symbol / Contact information Reporting period: Fiscal year (FY) 2014 (April 1, 2013 - March 31, 2014). Note: The report also refers to activities in FY2015, as well as to previous ongoing initiatives. Publication of last year's report: June, 2013. Organizational scope: This report covers the entire Honda Group, including Honda Motor Co., Ltd. and its 127 consolidated subsidiaries and affiliates (95 consolidated subsidiaries, 32 equity-method affiliates). All reported data covers the entire Honda Group unless otherwise noted. Detailed information about the main companies covered by this report can be found in the financial statements issued in June 2014. (The number of companies covered in this report changed throughout the course of fiscal 2014 due to company mergers and other developments.) This report features detailed information on environmental initiatives in Japan by major consolidated group companies (listed below), with a special focus on initiatives by Honda Motor Co., Ltd. / Honda R&D Co., Ltd. / Honda Engineering Co., Ltd. / Honda Access Corporation Guideline used: G3 Guidelines, Global Reporting Initiative / G4 Guidelines, Global Reporting Initiative / Environmental Reporting Guidelines (2012), Ministry of the Environment, Japan Note: Guidelines and methods used to calculate specific categories of data are noted individually in the report. J01 Direction Products Management 8 domains Honda ENVIRONMENTAL ANNUAL REPORT 2014 Japan INDEX > About the Honda Environmental Annual Report (Japan Report) Honda conducts business in North America, South America, Europe, Asia & Oceania, China, and Japan. For reporting on the environmental activities across our global organization, we've broken down our annual environmental report into one global report and six regional reports. Japan Report conveys our stance on environmental issues in Japan, our vision for a better future, and the results of efforts to make our products and business activities more environmentally responsible. Environmental Annual Report and Other Environmental Disclosure Channels Honda Environmental Annual Report Honda recognized early on that finding and implementing solutions to environmental problems was one of the highest priorities 環境年次 レポート for its business. We published our first Honda Environmental Annual Report in 1998, informing the public on our environmental initiatives every year ever since. This year's report is the 17th edition. Product-related content is focused on individual products and technologies that were announced or released during the reporting year. Business activities are reported from a life-cycle perspective, with emphasis given to yearly results and progress made Global Report (PDF) Japan Report (PDF) website The Honda Environmental Annual Report is intended mainly for our shareholders and other investors. By disclosing environmental information in a transparent manner, we aim to fulfill our corporate social responsibility and build trust and a positive reputation among more stakeholders. toward meeting environmental targets in each domain of our Environmental Documentary―Honda Face operations. Environmental Documentary—Honda Face is an online magazine for a more general audience, introducing Honda's environmental initiatives, with a spotlight on the passionate associates who work behind the scenes. Environmental Documentary―Honda Face presents our environmental initiatives in a style and format that is easy for the general public to understand. For updates, please visit the Environment section of the Honda Worldwide website: Japanese http://www.honda.co.jp/environment/ English http://world.honda.com/environment/ Japanese http://www.honda.co.jp/environment/face/ English http://world.honda.com/environment/face/ Honda Corporate Reporting Map http://www.honda.co.jp/csr/library/ (in Japanese) Financial Information Honda's myriad efforts to be a company society wants to exist are reported in five major categories: Investor Relations, Corporate Social Responsibility, Safety, Philanthropy, and Environment. By engaging our Financial information for shareholders and investors stakeholders in clear, active communication, we hope to increase their understanding and appreciation of who we are and what we do. A s always , we look ●Investor Relations online ●Annual reports (PDF) ●Report on corporate governance (PDF) ●Financial results/forecasts (PDF) forward to hearing from you about how we can be a better company. ●CSR online ●Honda CSR report (PDF) Major social responsibility initiatives Environment Environmental policies, performance, and future targets Philanthropy Our philosophy and endeavors in community engagement ●Philanthropy online Safety Efforts to improve product safety through R&D and education ●Safety online ●Report on driving safety promotion activities (print/PDF) Non-Financial Information J02 Direction Products Management 8 domains Honda ENVIRONMENTAL ANNUAL REPORT 2014 Japan INDEX > Top Message Message from the Japan Environmental Committee Chairman Setting a shining example for the world to follow A look back at the last three years The Japan Environmental Committee's agenda for the three-year mid-term ending in fiscal 2014 was to become an environmental frontrunner by practicing forward-looking environmental management. By sharing concrete objectives across all domains and divisions of Japan Operations and taking effective action together, we met all of our numerical targets for reducing environmental impacts 1 during this mid-term. One key initiative during this period was the launch of the Yorii Automobile Plant, a state-of-the-art eco-conscious production facility that cuts per-unit CO 2 emissions 30% compared to conventional plants. 2 For products, we launched the N series of mini-vehicles, the Accord Hybrid series, and the Fit series, all fitted with Earth Dreams Technology 3 powertrains, as well as motorcycle and power product models boasting high environmental performance. While this past mid-term was characterized by some immense challenges, including the 2011 earthquake and tsunami, our ability to hit our mid-term environmental targets and also meet customers' growing preference for environmentally sustainable products was a major stride forward in becoming an environmental frontrunner. Japan as Honda's global leader of environmental management As the first step toward global operational reform in our new mid-term, we launched a new headquarters for Japan Operations in April 2014. This reorganization helped to more clearly delineate the respective roles of our global and domestic businesses and put us in a position to accelerate operations and boost competitiveness. Our mission from here is to execute operations that are ideal for Japan while remaining at the forefront of innovation and leading other regional operations worldwide. We want to create the conditions that will allow Japan to provide the first answers and set precedents for addressing a wide variety of environmental challenges. We also need to step up efforts to reduce impacts in all product life-cycle stages. Fulfilling these responsibilities in environmental management, among other fields, will help maximize Honda's overall strength and lead to a more valuable global brand. We will continue to take on new challenges, gaining in knowledge and experience that will fuel our leadership within global Honda. This aspiration will drive our environmental management forward one step at a time, until Japan, the birthplace of Honda, is a shining example of the company society wants Honda to be. Sho Minekawa Honda Japan Environmental Committee Chairman 1. See pages J08 to J10 for more information. 2. Relative to Saitama Factory's Sayama Automobile Plant 3. "Earth Dreams Technology" represents next-generation powertrain technologies that greatly enhance both driving performance and fuel economy, building on advancements in environmental performance to pursue the joy of driving unique to Honda. Photo: Yorii Automobile Plant rooftop, Saitama Factory J03 Direction Products Management 8 domains Honda ENVIRONMENTAL ANNUAL REPORT 2014 Japan INDEX > Special Honda Green Conference 2013 The Honda Green Conference is Honda's triennial event for sharing, awarding, and disseminating the greatest achievements in environmental stewardship across all domains of Honda Group operations. At Honda Green Conference 2013, eight environmental initiatives from seven domains1 were presented. ● Honda Green Conference: the great sharing event ● Conference background Honda Green Confer- To reduce its ecological footprint, Honda sets and pursues e n c e 2013 w a s h e l d targets in each domain of its operations, a broad range of on December 4, 2013, activities that includes product development, production, at Twin Ring Motegi and transportation. speedway's Hotel Twin The Honda Green Conference was launched in 1999 to Ring in Tochigi, Japan. share and spread these initiatives with the rest of the The event drew more Honda Group. Annual than 200 people work- conferences are held in each domain, with t h e m o s t s u cce s s f u l Leafel, Honda's environmental mascot, welcomes attendees filiated companies and presenting at a group- suppliers across Japan. wide conference every As the size of this event three years. Some of suggests, the confer- the presentations also are given by Honda affiliated com- ence is widely recog- panies and suppliers. The Honda Green Conference is thus nized across Honda's a grand culmination of environmental initiatives planned for each mid-term, held with the purpose of sharing the most successful initiatives across all domains. fields at Honda subsidiaries as well as at af- projects chosen for Annual production domain conference (September 23, 2013) ing in environmental The audience listens to a presentation value chain as a place to gather ideas for driv- ing environmental improvements in a variety of workplaces. 1. Honda operations were categorized into a total of seven domains until fiscal 2014: Product Development, Purchasing, Production, Transportation, Sales and Service, Product Recycling (3Rs), and Administration. This changed to eight domains with the addition of IT from fiscal 2015 onward. J04 Direction Products Management 8 domains Honda ENVIRONMENTAL ANNUAL REPORT 2014 Japan Special Honda Green Conference 2013 ● Eight projects from seven domains presented E i g h t p r o j e c t s we r e c h o sen from Honda's seven INDEX > the new methods adopted for its gear machining processes. ● Projects awarded at individual domain conferences also displayed In a conference hall separate operational domains to be from the auditorium, 27 presented at the 2013 con- award-winning projects from ference. Unlike the domain With a limit of 10 minutes, presenters find clever ways to say more with less the domain conferences were conferences, where present- displayed on panels. Project ers and the audience work in leaders provided explanations similar fields, most people in the audience at the group conference have a different background. Before the presentations, a manager provides President Ito listens attentively to a project explanation share their projects, taking care to explain them in a way ● Honda Green Conference going global Honda has decided to move that people without expert knowledge on the topic can un- its next Honda Green Con- derstand. These considerations coincide with the mission of ference to the global stage. the conference, which is to disseminate best practices to as Exemplary environmental many other workplaces as possible. initiatives will be gathered The eight projects ranged widely in content, from the de- from across the world to sign and construction of a major facility, to smart behavioral changes that yielded significant improvements without costing a yen. Such breadth ensured that the conference was useful for various workplaces across Japan, thereby fa- main presentations and the award ceremony. an overview of each domain, including the results of recent initiatives and future goals. From there, the presenters of their activities between the Coordinators from each country attended the 2013 conference in preparation for the global conference planned for 2016 share and disseminate them to promote environmental conservation on a global scale. cilitating the spread and adoption of similar projects. ● Best Presentation Award During the award ceremony, all eight projects were recognized for their achievements. In his summary evaluation, P r e s i d e n t Ta k a n o b u I t o stressed the importance of participants enjoy eco-tours at Hello Woods working for environmental A wa l k t h ro u g h t h e fo re s t a n d va r i o u s o t h e r progress "not only for prodThe presenters joined President Ito for a group photo The day after the conference, ucts but in manufacturing processes and day-to-day operations." nature-based activities reawakened in conference participants their love of all living things and an awareness of their responsibility to protect them. At t e n d e e s a l s o c a s t t h e i r votes for the Best Presentation Award. In FY2014, this award went to the Hamamatsu Factory, which used video, diagrams, and other media Hamamatsu Factory's Kazumi Oda won the Best Presentation Award to offer a clear description of Initiatives presented at Honda Green Conference 2013 ■ Award for Climate Innovation ■ Award for Energy Innovation Product development: Automobile R&D Center (Tochigi), Honda R&D Co., Ltd. Purchasing: Ueta Plant, Musashi Seimitsu Industry Co., Ltd. Complying with regulations requiring introduction of a new low-impact Developing effective strategies for reducing electricity use from real-time monitoring data automotive coolant and development of a coolant collection and refill device ■ Award for Climate Innovation Transportation: Honda Logistics Service Co., Ltd. Reducing CO2 emissions from motorcycle transportation in Japan ■ Award for Energy Innovation Production: Casting Module 2, Engine Plant, Suzuka Factory Cutting CO2 emissions by preheating the mold ■ Award for Resource Innovation Best Presentation Award Production: Engineering Group, Gear Machining Department, Hamamatsu Factory Administration: Twin Ring Motegi, Mobilityland Corporation Reducing fixed energy use and the environmental impact of big race events Environmental improvements to chamfering and shaving machines ■ Award for Energy Innovation ■ Award for Energy Innovation Sales and service: Honda Body Service Okayama Co., Ltd. Optimizing electricity use: flattening the power demand curve through demand monitoring ■ Award for Resource Innovation Product recycling (3Rs): Spare Parts Supply Division, Customer Service Operations, Honda Motor Co., Ltd. Thorough recycling of hybrid car batteries *To learn more about these presentations, see Environmental Topics (in Japanese) (http://www.honda.co.jp/environment/topics/topics25.html). *Names of companies and organizations are as of the date the conference was held. J05 Honda ENVIRONMENTAL ANNUAL REPORT 2014 Japan INDEX > Direction Honda drives improvements in environmental performance in Japan based on a global strategy for reducing environmental impacts and in accordance with local environmental laws and issues. J07 Tackling Environmental Issues in Japan J07 Assessment of environmental issues and current recognition of their importance J07 Assessment of risks and opportunities relating to environmental issues J08 Honda Environmental Performance Standards (HEPS) J08 FY2012‒FY2014: Mid-term plans for operations-related environmental initiatives J10 FY2015‒FY2017: New mid-term plans for environmental initiatives J06 Direction Products Management 8 domains Honda ENVIRONMENTAL ANNUAL REPORT 2014 Japan INDEX > Tackling Environmental Issues in Japan We objectively assess current environmental issues in Japan, analyze the risks and opportunities they present for our business activities, and take steps to respond. To fulfill our role of leading Honda's global operations, we are advancing environmental initiatives both through our business activities and in product development with the aim of ultimately becoming a company with zero environmental impact. Assessment of environmental issues and current recognition of their importance ● Environmental issues in Japan responsibility as a product developer and manufacturer. To guide our efforts to realize the Honda Environmental 〈 Air, water, and soil pollution 〉 and Safety Vision, we evaluated environmental issues and Air, water, and soil safety also is increasing in Japan as a re- identified those that are most important to us, first from a sult of the many laws that have been enacted in these areas. global perspective. Our analysis found climate change issue We will continue to treat emissions in accordance with local and energy issue to be the greatest environmental chal- laws, while also striving to fulfill our social responsibility to lenges we face, followed by Resource issue (see page G20 minimize pollution. of the Global Report for more information). Additionally, by examining the physical and market charac- Honda's general assessment of environmental issues in Japan teristics of Japan, we identified the following environmental Climate change issue Energy issue Biodiversity 〈 Substances of concern 〉 The broadening scope of PRTR1-listed substances is one sign of heightening stakeholder concern about the dangers of chemical substances. Since many Honda's R&D centers are lo- Stakeholder concerns issues as unique to this region. Substances of concern Resource issue Waste Noise/ Vibration Soil pollution, Air and water quality cated in Japan, the management and reduction or elimination of chemical substances strongly impact business activities in this region, especially when considered in the context of our Impact on Honda business activities Assessment of risks and opportunities relating to environmental issues ● Risks and opportunities relating to climate change issue and energy issue tion). The risk from these sources is great in Japan, given the many laws and regulations here that govern corporate Having identified climate change issue and energy issue activity. We are advancing management of our operations as our greatest challenges, we then set priorities for re- to respond adequately to this risk. sponding to them based on full recognition of the risks and In response to the Energy Conservation Act, for example, opportunities they represent for our business. We identified all domains are working together to reduce energy use and three sources of risk and opportunity requiring special at- smooth out their energy demand profiles, while reporting on tention: changing consumer values, energy diversification, these efforts to the public once a year through this environ- and tightening regulation of product-related GHG emis- mental report. Meanwhile, each business site reports on its sions (see page G20 of the Global Report for more informa- response to GHG regulations issued by local governments. Specific examples of risks and opportunities identified in Japan Perceived opportunities Incentives to switch to products that use next-generation energy (e.g., electric/hybrid vehicles, solar power) Changing consumer values (emphasis on environmental performance) Energy diversification (e.g., deployment of smartcommunity technologies) Tighter regulation of GHG emissions from products Direct operational risks from rising sea levels and extreme weather events Tighter regulation of GHG emissions from operations Increasing reporting requirements for GHG emissions Regulations Targeting Greenhouse Gas Emissions2 Energy Conservation Act Applies to: • Energy used for business activities in Japan • Energy used by businesses that ship cargo in large volumes Act on Promotion of Global Warming Countermeasures Applies to: • Greenhouse gas emissions from business activities in Japan Saitama Prefectural Ordinance to Promote Global Warming Countermeasures Applies to: • Greenhouse gas emissions from all business sites in Saitama prefecture Perceived risks 1. A PRTR (Pollutant Release and Transfer Register) is a national or regional database of information on the environmental release and off-site transfer of potentially hazardous chemical substances from industrial and other facilities. 2. Major laws and regulations that apply to Honda J07 Direction Products Management 8 domains Honda ENVIRONMENTAL ANNUAL REPORT 2014 Japan Tackling Environmental Issues in Japan INDEX > Honda Environmental Performance Standards (HEPS) Examples of HEPS-compliant models in Japan in FY2014 Innovative Products Hi Efficient Products Revolutionary Products Compliant products (examples) Accord PHEV Dunk N-WGN Includes products developed in 2010 or earlier Vezel Zoomer-X Fit EV HSL2511 snow blower with FI Grom Graspa HRE330 electric lawnmower ●Tackling environmental issues through products Number of HEPS-compliant models in Japan We established the Honda Environmental Performance ■ Hi Efficient Products ■ Innovative Products ■ Revolutionary Products Motorcycles Standard (HEPS) in fiscal 2012 as a guide to achieving zero Models 35 CO2 emissions, and are making steady progress in fulfilling 27 30 this standard for all products. 25 20 Nine models―seven motorcycles and two automobiles―re- 15 14 15 Automobiles 20 30 25 17 19 20 15 10 10 the number of HEPS-compliant products to 27 motorcycles, 5 0 5 21 automobiles, and 28 power products, for a total of 76 Models 35 30 leased in fiscal 2014 earned HEPS certification. This brings 2011 2012 2013 2014 (FY) Power products Models 35 0 21 25 25 27 28 28 20 15 10 10 5 2011 2012 2013 2014 (FY) 0 2011 2012 2013 2014 (FY) *The FY2011 figure was determined by applying HEPS to products released before the standards were adopted. *See the Honda website for other HEPS-compliant models. models. FY2012–FY2014: Mid-term plans for operations-related environmental initiatives ●Tackling environmental issues through operations ●Results of initiatives in the FY2012-FY2014 Mid-term Honda renews its business and sales-related plans every Fiscal 2014 was the final year of the mid-term that began in three years, a period designated as one mid-term, and ex- fiscal 2012, wrapping up plans for environmental initiatives ecutes concrete initiatives to achieve the targets for the set at the start of the term. period. We take the same approach with our environmental In Japan, we worked toward specific numerical targets out- activities in Japan, setting new plans and actions to reduce lined in the plans. Because of concrete actions taken to re- impacts from our business activities at the start of every duce environmental impacts in all domains, we succeeded mid-term. in meeting or exceeding all of these targets. ●FY2012–FY2014: Targets and results of operations-related initiatives Milestones on the road to 2020 Targets and results Result Strengthen initiatives that Climate change and span entire energy product life cycles Honda Motor Co. and major group companies1: Reduce CO2 emissions per unit of revenue by 5% by FY2014 (baseline: FY2001) Target achieved Reduced CO2 emissions per unit of revenue by 5% ■CO2 emissions from operations (per unit of revenue) (%) 100 80 100 91 60 95 94 95 40 FY2014 target (5% reduction) 20 0 ~ ~ Measures taken to achieve target ・Installed state-of-the-art environmental technology at the Yorii Automobile Plant, which started operations in 2013 ・Monitored energy use for each process and revised production systems for higher efficiency ・Expanded Honda Green Action (power conservation, cool-biz, warm-biz) to the entire group ・Installed high-efficiency devices (LED lighting, compressors, HVAC systems, IPM motors) ・Promoted measurement of GHG gas emissions from suppliers in a broader range of activities covering product life cycles ・Installed solar power generation systems at operating sites Target achieved Target 2001 2011 2012 2013 2014 (FY)※ (baseline) 1. Honda R&D Co., Ltd., Honda Engineering Co., Ltd., and Honda Access Corporation J08 (%) Direction Products Management 8 domains Honda ENVIRONMENTAL ANNUAL REPORT 2014 Japan Tackling Environmental Issues in Japan INDEX > ●FY2012–FY2014: Targets and results of operations-related initiatives Milestones on the road to 2020 Targets and results Transportation (as a high-volume shipper): Reduce CO2 emissions per ton kilometer of cargo shipped by 10% by FY2014 (baseline: FY2007) Target achieved Result Reduced CO2 emissions per ton kilometer of cargo shipped by 25% ■CO2 emissions from transportation Strengthen Measures taken to achieve target (%) initiatives that ・Collaborated with suppliers to improve parts logistics efficiency at Climate 100 change and span entire 100 91 95 94 95 the Yorii Automobile Plant 80 energy product life 2013年度 ・Increased transportation efficiency by implementing modal shifts 60 目標値 cycles ・Improved truck(5%低減) fuel efficiency 40 ((per (%)ton-kilometer) 100 Target achieved 86 60 82 79 40 20 20 2000 2010 2011 2012 2013(年度) (基準年) FY2014 target 75 (10% reduction) ~ ~ 0 ~ ~ 0 100 80 Target achieved Target 2007 2011 2012 2013 2014 (FY) (baseline) Milestones on the road to 2020 Targets and results Honda Motor Co. and major group companies1: Reduce waste per unit of revenue by 5% by FY2014 (baseline: FY2001) Targets Maintain zero landfill waste performance at Honda Motor Co. and consolidated manufacturing subsidiaries2 (%) (per unit of revenue) (%) 60 (5%低減) 65 40 rates for end-of-use products 80 0 2010 2011 2012 2013 2014 (FY) 60 100 100 40 20 0 40 20 20 0 2010 2011 20102012 2011 2013 20122014 2013(FY) 2014 (FY) 20 Target achieved (%) 0 80 0 ~ ~ 20 0 ~ ~ 20 Measures taken to achieve target ~ ~ 0 (at least 95%) (at least 95%) 2010 2011 20102012 2011 2013 20122014 2013(FY) 2014 (FY) 100 Target achieved 40 100 100 80 ~ ~ Material and water resources 0 20 0 Target achieved 2001 2011 2012 2013 2014 (FY) 60 (baseline) 20 60 40 58 ~ ~ ~ ~ 80 65 Target achieved 100 40 100 96.5 FY2016 96.5 FY2016 80 86.9 87.7 92.3 target target 86.992.3 86.5 86.5 87.7 FY2014 50 Targets and results (%) (%) 44 target (30% reduction) 100 100 20 Honda Motor Co. major group companies: Reduce water 100 100 and 100 80 80 0 Targets byFY2014 5% by FY2014 (baseline: FY2001) FY2014 7774 77 (FY) 2001 2011 2012 2013 2014 74 60 60 60 65 68 6868 target 68 65 target (baseline) 58 58 (5% reduction) (5% reduction) FY2014 50 unit Target achieved40 Reduced water50 use 44 per ofFY2014 revenue by 32% Result 40 40 44 target target (5% reduction) Milestones on the road to 2020 (%) (%) 20 0 60 100 20 96.0 Maintain 93.3 94.2 93.396.0 94.2Maintain 80 80 0 81.6 85.0 81.6 85.0 2010 2011 2012 2013 2014 (FY) 60 60 40 100 Target achieved Target achieved 40 80 ■Motorcycle recycling rate (%) (%) 100 Target achieved 100 ・20 Maintained effective recycling (%) (baseline) ■ASR recycling rate 40 (%) (%) Target achieved Target achieved 20 96.5 FY2016 80 86.5 86.9 87.7 92.3 0 fortarget Increased effective recycling rate motorcycles to 96.5% (at least 95%) 60 2001 2011 2012 2013 2014 (FY)※ Target achieved 85.0 40 FY2014 target (5% reduction) Increased ASR recycling rate for end-of-life automobiles to 96.0% 100 Target achieved 81.6 Target achieved Measures taken to achieve target 40 (%) 80 (%) 93.3 94.2 96.0 Maintain Target achieved 60 Ramp up 3R efforts FY2014 target 0 ~ ~ 80 68 20 0 target target (5% reduction) (5% reduction) ~ ~ Results 68 20 (%) (基準年) 100 77 (30%低減) 40 Increase effective recycling rate for motorcycles to 60 95% by FY2016 (%) 74 2013年度 50 40 ~ ~ ~ ~ (基準年) 60 58 ※ (FY)※ 2011 20012012 2011 2013 20122014 2013(FY) 2014 2001 2011 20012012 2011 2013 20122014 2013(FY) 2014 (FY) 100 automobiles Maintain at least a0 70% ASR3 recycling rate for end-of-life (baseline) 100 95 (baseline) Targets 2000 2010 2011 2012 2013(年度) 2000 2010 2011 2012 2013(年度) 94 95 91 (baseline)(baseline) Material and water resources (baseline) 44results 目標値 Targets and 20 ~ ~ 02001 ~ ~ 0 ~ ~ 20 0 target target 2013年度 (5% reduction) 68(5% reduction) 目標値 Target achieved 68 Target achieved 40 77 74 20 Milestones on the road 20 to 2020 80 waste from operations Target achieved 40 Target achieved 60 40 Target achieved (baseline) 100 (95%以上) ~ ~ ~ ~ 0 Target achieved 20 Target achieved 40 Target Target achieved achieved 60 40■Landfill ・Increased use of stamping press scrap 20 metal 20 100 100 100 ・Reduced packaging by expanding applica95 94 95 0 0 92 91 Achieved zero 80 89 (年度) 2009 2010 2011 2012 2013(年度) tion of interior and exterior returnable2009 con-2010 2011 201284201386 waste-to-landfill FY2014 FY2014 60 target target tainers target at all (5% reduction) (5% reduction) consolidated 40 (%) (%) ・Developed process for extracting rare earth (%) (%) business sites in 100 100 100 (%) 100 (%) metals from nickel-metal hydride batteries 20 Japan (127/127 100 95 100 100 100 100 91 100 9594 95 nickel-metal 92 92 91 9495processed ・Properly hydride 80 80 80 80 companies) 89 0 8684 86 89 100 100 84 ※ FY2014 FY2014 FY2014 FY2014 80system 2001 2011 2012 2013 2014 (FY) 6080 60 2001 2011 2012 2013 2014 (FY) 60 batteries through our own collection 60 Target achieved 80 Measures taken to achieve 60 ■Waste from operations target40 97 年度 2015 92 88 87 87 target at80 all consolidated business sites 目標値 80Achieved 85 zero waste-to-landfill 82 60in Japan (127/127 companies) 60 81.6 85.0 20 0 2010 2011 2012 20 (30% reduction) (30% reduction) ■Water used in operations(per unit of revenue) (%) 2001 2012 2011 2013 20122014 2013(FY) 2014 (FY) 2001 2011 20012012 2011 2013 20122014 2013(FY) 2014 (FY) 100 Minimize 2001 2011 ・Used recycled water and rainwater (baseline)(baseline) (baseline)(baseline) water use 80 ・Promoted water conservation activities (%) 74 40 20 77 68 68 FY2014 target (5% reduction) 2001 2011 2012 2013 2014 (FY) (baseline) 80 100 60 65 40 58 5 20 0 ~ ~ ~ ~ 0 100 100 60 2001 2011 2012 20 (baseline) *Historical figures have been adjusted to reflect a change in the scope of data. 1. Honda R&D Co., Ltd., Honda Engineering Co., Ltd., and Honda Access Corporation 2. All consolidated business sites in Japan 3. ASR: Automobile Shredder Residue 93.3 9 40 use per unit of revenue Target achieved 100 維持 96 Target achieved (%) Ramp up 3R efforts Target achieved 94 Target achieved 93 Results Material and water resources (%) Target achieved100Reduced waste per unit of revenue by 11% 100 J09 (baseline) Direction Products Management (baseline) 8 domains Honda ENVIRONMENTAL ANNUAL REPORT 2014 Japan Tackling Environmental Issues in Japan INDEX > (%) 80 60 Targets and results 81.6 85.0 93.3 94.2 96.0 Maintain 40 Reduce VOC emissions per unit of coated automobile body surface area by 30% by 20 FY2014 (baseline: FY2001) Target 0 100 Plant the 3-coat/2-bake wa・Adopted at the Yorii Automobile 100 80 ter-based Honda Smart Ecological74Paint which FY2014 77 technology, 60 68 68 target eliminates the middle coat from the standard 4-coat/3-bake (5% reduction) au40 20 ~ ~ 2001 2011 2012 2013 2014 (FY) (baseline) 80 60 65 40 58 50 20 0 44 20 0 2010 2011 FY2014 target (30% reduction) 2001 2011 2012 2013 2014 (FY) (baseline) FY2015–FY2017: New mid-term plans for environmental initiatives ● Formulating plans for the next three years ing this by implementing the Green Purchasing Guidelines For many years, Honda has recognized and made consistent we issued in 2011. efforts to reduce the adverse impacts its business activities In the new mid-term plans that begin in fiscal 2015, we have on the environment. once again set targets to reduce environmental impacts in In 1997 we launched the Green Factory project, which be- all domains—targets that will bring us closer to our 2020 came integrated into our organization with the creation goals and, in the long run, to realizing the Honda Envi- of the Green Factory Promotion Center in 2004 (now the ronmental and Safety Vision. These targets will drive us to Green Factory Promotion Block), and expanded worldwide reduce the amount of CO2 emitted by our production activi- through support from Japan to other plants for minimizing ties and by major group companies and, to demonstrate our environmental pollutants. global leadership in Japan, to pursue environmental stew- A key task going forward will be to ramp up environmental ardship in the use of resources and the release of waste and management across our supply chain. We are currently do- emissions other than CO2. FY2015–FY2017: New mid-term plans for operations-related initiatives Milestones on the road to 2020 Strengthen initiatives Climate change and that span entire product energy life cycles Initiatives planned Honda Motor Co. and major group companies2: Reduce CO2 emissions per unit of revenue by 7% by FY2017 (baseline: FY2001) Transportation: reduce CO2 emissions (as a high-volume shipper under the Energy Conservation Act) ・Revise transportation routes and modes of transportation ・Improve transportation efficiency by picking up products from suppliers and switching to more efficient routes Honda Motor Co. and major group companies: Reduce waste per unit of revenue by 11% by FY2017 (baseline: FY2001) Material and water resources Ramp up 3R efforts Maintain zero landfill waste performance at Honda Motor Co. and consolidated manufacturing subsidiaries3 Minimize water use Reduce VOC emisSubstances sions from production of concern processes 86.9 40 100 ~ ~ ・Introduced low-VOC coatings to coating processes 0 86.5 (per unit of coated automobile body surface area) (%) 100 to-body painting process 80 ■VOC emissions from production (%) Measures taken to achieve target Target achieved Reduce VOC1 emissions from production processes Target achieved Environmental pollutants (FY) 2010automobile 2011 2012 2013 2014surface Reduced VOC emissions per unit of coated body area by 56% Target achieved Result 100 60 Target achieved ●FY2012–FY2014: Targets and results of operations-related initiatives Milestones on the road to 2020 (%) 100 Honda Motor Co. and major group companies: Reduce water use per unit of revenue by 32% by FY2017 (baseline: 2001) Production: Reduce VOC emissions from product coating 1. VOC (Volatile Organic Compounds): Organic chemical substances that cause photochemical smog and are common in paint and thinner solvents 2. Honda R&D Co., Ltd., Honda Engineering Co., Ltd., and Honda Access Corporation 3. All consolidated business sites in Japan J10 Honda ENVIRONMENTAL ANNUAL REPORT 2014 Japan INDEX > Products In Japan, its home country, Honda is developing and testing new technologies and new forms of mobility that lead the world in environmental performance. J12 J15 J16 J18 Next-Generation Technology J12 Testing the MC-β micro EV on public roads J12 Testing next-generation personal mobility solutions J14 Development and testing of the fuel cell electric vehicle Motorcycles J15 Dunk 50-cc scooter J15 Pursuing quieter operation J15 Environmental data in Japan Automobiles J16 New VTEC Turbo J16 N-WGN and N-WGN Custom J17 Environmental data in Japan Power Products J18 HSL2511: snow blower with FI technology Triple Zero symbols In this report, specific measures, activities, products, and technologies that contribute to realization of the Triple Zero concept are indicated with one or more of three Triple Zero symbols. CO2 emission reduction/ elimination technology For more information about the Triple Zero concept, see page G22 of the Global Report. Waste reduction/ elimination or 3R technology Energy risk reduction/ elimination technology J11 Direction Products Management 8 domains Honda ENVIRONMENTAL ANNUAL REPORT 2014 Japan INDEX > Next-Generation Technology Honda is testing emerging technologies in real-world settings across Japan to develop the next generation of mobility products. Testing the MC-β micro EV on public roads in Kumamoto, Saitama, and Miyako-jima Test scenes from Miyakojima City in Okinawa ● MC-β micro-sized short-distance commuter ● Real-world testing launched In November 2013, we unveiled the MC-β (pronounced "em- MLIT has created a certification program for micro-sized cee-beta"), a new micro-sized EV developed in consideration vehicles—a technology that could provide substantial CO2 of the L7 vehicle category1 in Europe and the new vehicle emissions reductions compared to ordinary passenger category for micro-sized mobility products that is currently cars—as part of its deliberations toward establishing a new being discussed under the initiative of the Ministry of Land, vehicle category. Making use of this program, we've begun Infrastructure, Transport and Tourism (MLIT) in Japan. real-world testing of the MC-β in collaboration with Kuma- Equipped with an electric motor with a rated output of 6 moto Prefecture, Saitama City, and Miyakojima City. The kW and max output of 11 kW, the MC-β can move at a max tests are aimed at determining which applications and needs speed above 70 km/h (43 mph). Its lithium-ion battery can are best fit to micro-sized vehicles when viewed as a means be fully charged in less than three hours (200 V) and pro- to resolving issues related to community development and vides MC-β with a cruising distance of more than 80 km (50 transportation. miles). This mobility device is being developed primarily for short-range applications such as commuting and shopping. Testing next-generation personal mobility solutions since 2010 To realize our Environmental and Safety Vision—to realize the moto Prefecture, Saitama Prefecture, Saitama City, and other joy and freedom of mobility and a sustainable society where government organizations. These tests have been aimed at people can enjoy life—we believe it's essential to develop and identifying and overcoming barriers to the full-scale public widely deploy infrastructure that makes organic connections adoption of plug-in hybrid and electric vehicles (PHEVs, EVs), between electric personal mobility devices and alternative en- as well as exploring the potential of next-generation personal ergy generation technologies. mobility systems in real-world traffic environments, including As the first step to achieving this, in December 2010 we began their effectiveness in reducing CO2 emissions. a set of demonstration projects in collaboration with Kuma- Demonstration test projects Kumamoto Pref. Saitama Pref. 2011 2012 2013 2014 Step 1: Set routes, collect data Step 2: Fleet vehicle use, consumer education 1 EV 2 PHEVs 1 EV 2 PHEVs Kumamoto Aso Amakusa 4 EVs Kumamoto 4 PHEVs Amakusa Kumagaya Chichibu Saitama 4 EVs Kumagaya 4 PHEVs Chichibu Saitama City 1 EV 1 PHEV Aso Saitama ・Survey on consumer receptiveness to EVs/PHEVs ・Educate consumers on electric vehicles ・Car sharing program ・Tourism applications in Minamiaso Final reporting ・Survey on consumer receptiveness to EVs/PHEVs ・Educate consumers on electric vehicles ・"Rail & ride" application in Chichibu ・Development of cruising range support system ・"Park & ride" parking lot with solar-powered charging stations Final reporting ・Survey on consumer receptiveness to EVs/PHEVs ・Educate consumers on electric vehicles ・Owner-to-institution car sharing ・Unlimited mileage rental service Final reporting ● ● ● 1. For EVs, maximum mass of 400 kg excluding the battery and maximum power output of 15 kW J12 Direction Products Management 8 domains Honda ENVIRONMENTAL ANNUAL REPORT 2014 Next-Generation Technology Japan INDEX > ● Development of cruising range support system To help EV users get their mind off cruising range and battery life in order to have a carefree drive, we investigated the potential of a system that calculates the amount of power needed to reach a preset destination and notifies the user when there is an insufficient supply, thereby preventing unexpected battery depletion. We developed a system based on the route selected in Internavi that uses various data such as outside temperature PHEV test vehicle ( Japan specs) based on the U.S. Accord and road gradient to precisely predict the amount of power that will be consumed by air conditioning and driving. In ● Testing as government fleet vehicles Saitama Prefecture, we tested this system to compare estimat- Considering that governmental organizations may be more ed versus actual power consumption from real driving. receptive to EVs since they typically use their fleet vehicles within a limited radius and can guarantee a charging space, we loaned several EVs and PHEVs to Kumamoto Prefecture, Saitama Prefecture, and Saitama City for use as government vehicles. Based on vehicle usage data, we were able to verify the receptiveness of these organizations toward EVs as well as the frequency of EV use in a real-world environment based on PHEV usage data. ● Owner-to-institution car sharing EV test vehicle ( Japan specifications) based on the Fit EV In this demonstration test program in Saitama City, individ- ● "Park & ride" parking lot with solar-powered charging stations ual owners of EVs and PHEVs lent their commuter vehicles We installed solar-powered charging stations at the Kagoha- to a company or government organization to use as fleet ra train station in Kumagaya, Saitama Prefecture, to test their vehicles during work hours. The program was designed to potential as a distributed energy source as well as the suit- verify whether the rental income and lower running costs ability of EVs and PHEVs in a park & ride system, a method from such a car sharing program would allow owners to re- of relatively short-distance commuting in which commuters coup the increase in initial cost of an EV or PHEV relative to park their cars at the closest station and transfer to public a gasoline vehicle, and determine the cost benefits for both transport for the remainder of their commute. In 2013 we parties. added power storage systems to these charging stations to improve their power supply capability. ● Unlimited mileage rental service In another test project combining EVs and a rental car service ● Tourism applications in Minamiaso in Saitama City, participants were provided with an EV for daily In Minamiaso, Kumamoto Prefecture, we loaned zero-emis- activities, and were allowed the option of using a gasoline rental sion, energy-efficient EVs to tourists for one day free of charge vehicle when they wanted to drive more than the EV cruising to determine how receptive they were to using them to tour range. The project was based on the hypothesis that the cruising the countryside. Tourists are allowed to use the vehicles at the distance expected of EVs could be shortened, and was designed to Minamiaso Village Tourist Association free of charge and pro- calculate the cruising range demanded from the EVs. vided a map of recommended routes for sightseeing. ● "Rail & ride" application in Chichibu In Chichibu, Saitama Prefecture, EVs and PHEVs were used as part of a "rail & ride" system where visitors who arrived by train switched to an EV or PHEV, vehicles that provide the quiet, hightorque driving presumably suitable for Chichibu's many mountain roads. The test verified the suitability of EVs and PHEVs on hilly terrain, their value and user receptiveness in a rail & ride sightseeing system, and environmental impact reduction benefits. ● Joint venture launched to promote charging infrastructure On May 26, 2014, Honda and three other Japanese automakers jointly established a new company, Nippon Charge Service, LLC, to promote the installation of chargers for electric-powered vehicles (PHVs, PHEVs, EVs) and to help build a charging network that offers more convenience to drivers in Japan. In the current favorable environment of government subsidies for charger installation, we are actively seeking installers through this new company. By building a user-friendly infrastructure, we will strive to maximize the potential of electric vehicles and promote broader public adoption. J13 Direction Products Management 8 domains Honda ENVIRONMENTAL ANNUAL REPORT 2014 Japan Next-Generation Technology INDEX > Development and testing of the FCX Clarity fuel cell electric vehicle ● Solar hydrogen station development delivered a FCX Clarity equipped with a max output 9-kW1 external power supply system that can power an ordinary Japanese home for six days to Kitakyushu City, which is using it to supply electricity to Kitakyushu Eco-House at the Kitakyushu Environment Museum. The vehicle is being tested as a new way to even out the power demand curve and reduce peak demand. ● FCX Clarity as a source of power to public facility In February 2014, we also started testing the FCX Clarity as an emergency power source for public facilities. The vehicle is supplying backup power to a 10-kW storage device at the FCX Clarity FCEV and solar hydrogen station installed at the Saitama Prefectural Office Kitakyushu Museum of Natural History & Human History. Viewing fuel cells as the ultimate clean-energy solution, we Also being tested are its practicality as a mobile electric gen- have been proactively developing the fuel cell electric vehicle erator in emergencies, and its benefits as a vehicle-to-load (FCEV) as part of our long-standing commitment to finding (V2L) power source for schools and other public facilities alternatives to fossil fuels, reducing emissions, and minimizing that serve as evacuation centers during disasters. impacts on the global climate. In 2012, as part of a joint project with Saitama Prefecture on next-generation electric personal mobility, we delivered a FCX Clarity FCEV and installed a solar-powered hydrogen station FCX Clarity supplying power to the Kitakyushu Museum of Natural History & Human History on the premises of the Prefectural Office to verify its ease-ofuse as a government fleet vehicle, as well as the role it can play in reducing CO2 emissions and moving Japan toward a low-carbon economy. ● FCX Clarity with external power supply capability delivered ● FCX Clarity as a source of household power Since February 2014, we also have been delivering FCX Clar- ity models equipped with external power supply capabilities to local governments to Saitama City, Kanagawa Prefecture, and Osaka Prefecture. In addition to having the vehicles used as government fleet vehicles, we also are collecting various data on the effectiveness and ease-of-use of FCEVs as power generation and supply systems through verification of their power supply Opening ceremony of the FCX Clarity supplying power to Kitakyushu Eco-House demonstration project capabilities in emergencies and through their use at public events. In April 2013, we started testing the FCX Clarity in a vehi- We plan to use these data to determine the best uses for cle-to-home (V2H) power supply application in Kitakyushu, FCEVs and to advance research and development aimed at Fukuoka Prefecture, as a collaborative demonstration proj- their mass production and commercialization. ect in the city's Kitakyushu Smart Community Project. We A walking assist device by itself (left) and worn (below) Volunteer testing of walking assist devices begun Leveraging our research in robotics—a pursuit exemplified by ASIMO, the world's most advanced humanoid robot—we are developing wearable walking assist devices to help people enjoy the freedom and joy of walking on their own two feet. So far, we've conducted joint research with medical and research institutions and private companies, and gathered feedback from doctors, researchers, and others who recognize a certain effectiveness and suitability of these devices for use in walking rehabilitation. In May 2013, we loaned 100 of these devices to hospitals providing walking therapy to have them tested by volunteer patients. We will gather input from health practitioners and use the findings to make these products more effective and easier to use. 1. Honda internal measurement J14 Direction Products Management [g/(kW-h)] 495 8500domains 415 400 Honda ENVIRONMENTAL ANNUAL REPORT 2014 Japan 汎用 INDEX > 300 Motorcycles 200 100 Honda raised the bar with the release of its first new 50-cc scooter in Japan in 12 years. 0 新型 iGX390 従来型 GX390 GX/iGX390 ■ 現行GX390 Setting a new standard with the release of the [g/(kW-h)] new Dunk 50-cc■scooter 11 [g/(kW-h)] 495 500 10 ● eSP engine debuts in 50 cc-class model 415 9 HC+NOx 400 In February 2014, we released the Dunk, our first new 50 ccEPA PhaseⅢ class scooter in 12 years. 汎用 300 8 規制値 エミッション↓ 7 The Dunk is based on a "premium sneakers" concept that 200 6 100 seeks to provide riders with the joy of an elegant ride that 0 also is easy to use. The model offers a new standard in scoot←低燃費 新型 iGX390 従来型 GX390 Dunk, the first 50 cc-class Honda scooter in 12 years ■ GX/iGX390 ■ 現行GX390 [g/(kW-h)] 11 350 400 500 [g/(kW-h)] 450 EPA モード燃費 er riding that adds an extra level of fun to daily activities for a wide demographic, but especially for young adults. (dB) 105 103 To give it the power and environmental performance befitting 102 a new standard scooter, we equipped the Dunk with a newly 10 100 developed eSP engine featuring extensive low-friction technolo- 9 HC+NOx 5 gies—a first for a 50 cc-class scooter. This resulted in impressive EPA PhaseⅢ 規制値 8 エミッション↓ 7 6 5 350 400 ←低燃費 450 EPA モード燃費 95 fuel efficiency performance of 56.4 km/liter (when tested using ~ Newly developed eSP, a water-cooled, four-stroke overhead cam, single-cylinder 500 [g/(kW-h)] 50-cc engine the Worldwide-harmonized Motorcycle Test Cycle),1 up 10% 0 新型 HSM1390ik1 HSM1390i from existing bikes in the従来型 equivalent class, while also boosting output by 18% and torque by 11%, compared to bikes in the same class. (dB) 105 グラスパ 103 Pursuing quieter operation 102 53 同等クラス ガソリン エンジン芝刈機 ● Noise 100 reduction technologies 100 Motorcycles generate noise and vibration in many ways. CO2 排出指数→ We have worked to reduce noise by analyzing these sources 95 Engine using~state-of-the-art technologies. As a result, our products Exhaust meet all applicable noise regulations in Japan. 0 新型 HSM1390ik1 従来型 HSM1390i ■ Sources of noise from a motorcycle and noise reduction strategies by source グラスパ 53 Engine : Use more rigid materials Exhaust 同等クラス: Increase volume, use multi-chamber structures ガソリン 100 I n エンジン芝刈機 t a k e : Increase volume, use more rigid materials for outer casings 2 排出指数→ Transmission : Quiet drive chain, driveCO sprocket damper O t h e r : Sound-dampening rubber 140 (%) Air intake Transmission 120 Other 二輪 100 Environmental data in Japan 0 ■ Average motorcycle fuel efficiency in Japan 2001 ~ ~ ~ 2010 2011 2012 2013 2014 (FY) ■ Average HC and NOx emissions from motorcycles in Japan (FY2001=100%) (FY2001=100%) (%) 140 (%) 100 80 120 60 二輪 40 100 2001 ~ ~ 0 2010 2011 2012 2013 2014 (FY) We’ve introduced numerous fuel-efficient models to meet our target of reducing CO2 emissions by 30% by 2020 compared to FY2001. So far we’ve (%) achieved a 19% increase in average fuel efficiency over FY2001 levels. 100 2001 ~ ~ ~ 0 19.4 20 2010 2011 2012 2013 2014 (FY) As of FY2011, all new models sold in Japan complied with the 2006 and 2007 emission regulations,2 with average HC and NOx emissions from these vehicles dropping to less than 1/5 of FY2001 levels. This performance was maintained in FY2014 as well. 40 20 19.4 トルク → 1. Fuel 80 efficiency value measured using the WMTC test cycle, an international standard stipulating the method for testing exhaust gas under conditions that better reflect real-world vehicle driving patterns, such as startup, acceleration, and stopping. 2. 200660standards for type 1 scooters and mini-bikes, 2007 standards for type 2 scooters and small motorcycles エンジン熱効率の 高い領域 ク CVT 運転領域 J15 特集 Direction Products Management 8 domains Honda ENVIRONMENTAL ANNUAL REPORT 2014 Japan INDEX > Automobiles We're developing world-leading environmental technologies and automobiles tailored to the needs of customers in the markets they serve. New VTEC Turbo line of turbocharged direct-injection engines 1.5-liter four-cylinder direct-injection gasoline turbo engine 2.0-liter four-cylinder direct-injection gasoline turbo engine 1.0-liter three-cylinder direct-injection gasoline turbo engine This engine makes the most of our proprietary VTEC system, a high-output turbocharger, direct injection, and a high-performance cooling system to realize high power output and high responsiveness. It delivers a maximum power output of more than 205 kW and a high environmental performance compliant with EURO 6 European emissions regulations, which will become effective in September 2014. This next-generation compact engine features a newly designed framework and VTEC variable valve timing system with radically reduced friction, combined with direct-injection technology and a high-response turbocharger with a low moment of inertia. These technologies offer a superior combination of fuel economy and power output with high torque, exceeding conventional naturally aspirated engines. ● Class-leading power and environmental performance bocharger and highly fluidized combustion to reduce engine Honda has developed VTEC Turbo, a new series of direct-injec- displacement. Rigorous friction reductions also contribute to tion gasoline turbo engines in our Earth Dreams Technology class-leading power and environmental performance. Sized in series. three classes—2.0, 1.5, and 1.0 liters—the engines increasing- These engines, adapted for compact and medium-sized cars, ly will be deployed worldwide, with each engine selected to take advantage of our proprietary VTEC system and the in- match the vehicle it powers as well as local customer needs. 1 creased output provided by direct-injection, a high-output tur- N-WGN and N-WGN Custom extend popularity of the N series ● Twin injection system For the first time in a mini-vehicle, the N-WGN employs a twin injection system, a system that uses two fuel injectors per cylinder instead of one. This system mixes fuel and air more evenly, resulting in improved drivability and fuel economy. N-WGN ● Raising the bar on the "basic" mini-vehicle In November 2013, we released the N-WGN and N-WGN Custom, the fourth installment in our popular N series of mini-vehicles. The N-WGN, developed with the aim of setting a new standard for the "basic" mini-vehicle, offers better comfort, safety, fuel economy, design, and driving performance than ever before. A comfortable interior and great features such as Vehicle Stability Assist (VSA), which helps prevent the loss of vehicle control, come standard on all types, while a newly developed engine and CVT provide smooth, stress-free driving and high fuel economy of 29.2 km/liter (JC08 test cycle).2 The adoption of a lightweight yet rigid body and dedicated suspension system facilitate stable driving performance and quiet operation. Twin injection system atomizes fuel more completely and distributes the air-fuel mixture more evenly ● Sodium-filled exhaust valves help suppress knocking The N-WGN engine employs sodium-filled exhaust valves—for the first time in a Honda passenger vehicle. These valves dissipate heat more efficiently than conventional valves, lowering the surrounding temperature and suppressing engine knocking. 1. A next-generation powertrain series that greatly enhances both driving performance and fuel economy, building on advancements in environmental performance for internal combustion engines, transmission efficiency, and electromotive technologies to pursue the joy of driving unique to Honda. 2. Testing of the N-WGN G, N-WGN G A Package, N-WGN Custom G, and N-WGN Custom G A Package (FWD vehicles) by the Japan's Ministry of Land, Infrastructure, Transport and Tourism J16 5 2011 2012 ■ ■ ■ ■ 741 ~ 855kg ■ ■ 856 ~ 970kg ■ Vehicle weight class: Direction 2013 2014 (FY) 971 ~ 1,080kg 1,081 ~ 1,195kg 1,196 ~ 1,310kg 1,311 ~ 1,420kg 1,421 ~ 1,530kg ■ ■ ■ ■ ■ Products Reference value 1,531 ~ 1,650kg 1,651 ~ 1,760kg 1,761 ~ 1,870kg 1,871 ~ 1,990kg 1,991 ~ 2,100kg Management (型式数) 70 (km/ℓ) 8 domains 60 30 170 14 Environmental data in Japan ~ 2001 2010 2012 99.0 2013 98.3 2014 (FY) 80 Average automobile fuel efficiency1 in Japan (FY2001=100) 89.9 50.8 60 (型式数) 170 70 40 60 23.1 160 50 20 140 1.7 2010 14 20 100 ~ 10 ~ 2011 2012 9 7 9 7 2 9 ~ 0 5 0 ■NOx ■HC 2001 44 6 5 42 6 15 2 3 11 2009 2011 2010 2012 ■ Vehicle weight class: ■ ■ ■ 741 ~ 855kg ■ 25 ■ 856 ~ 970kg ■ 0 0 11 2013 1 2 2 6 2 11 2 0 8 6 0 2014 0 0 0 四輪 (FY) 0 0 0 2013 2014 (FY) 971 ~ 1,080kg 1,081 ~ 1,195kg 1,196 ~ 1,310kg 1,311 ~ 1,420kg 1,421 ~ 1,530kg 53 7 17 18 40 10 30 20.6 44 6 14 (km/ℓ) 20 0 30 2001 7 10 ~ 15 2 5 0 2008 25 9 9 2010 9 7 2011 2 2009 11 42 6 0 0 11 0 3 2012 2 6 1 2 2013 2 8 28.54 6 2011 15.3 0 0 2014 0 (FY) 0 0 0 26.95 2010 2012 (FY) 24.03 平成22年度燃費基準+25%適合 24.00 平成27年度燃費基準適合 平成27年度燃費基準+10%適合 21.0 21.72 平成27年度燃費基準+20%適合 20.8 20.5 ■ 平成22年度燃費基準適合 ■ ■ 平成22年度燃費基準+5%適合 ■ ■ 平成22年度燃費基準+10%適合 ■ ■ 平成22年度燃費基準+15%適合 ■ 20 平成22年度燃費基準+20%適合 Sales■results for low-emission vehicles 18.7 18.38 17.61 17.2 ■ ★★★Ultra-low emission vehicles (50% cleaner than required by regulation) 15.8 ■ ★★★★Super-ultra-low emission vehicles (75% cleaner than required by regulation) 15 (Units) 800,000 (km/ℓ) 700,000 30 10 600,000 500,000 14.06 13.66 13.49 35,819 594,059 25 400,000 5 300,0002011 16,431 11,784 542,747 549,394 2012 2013 5,317 673,805 28.54 24.03 (FY) 2014 24.00 15.8 14.4 13.49 sold, or 805,486 vehicles, met low-emission 10 fication criteria. 8.44 7.80 12.2 certi11.1 10.2 9.4 Percentage eco-driving systems (FY) Reference 2011 of vehicles 2012 with 2013 2014 support value 50.8 75.1 2012 2013 1,531 ~ 1,650kg 1,651 99.2~ 1,760kg 1,761 ~ 1,870kg 1,871 ~ 1,990kg 1,991 89.9~ 2,100kg 20 1.7 0 2010 2011 2011 2012 2013 2014 (FY) ■ ■ 23.1 ■ 741 ~ 855kg ■ 856 ~ 970kg ■ 20 ■ 0 2010 50.8 75.1 971 ~ 1,080kg 1,081 ~ 1,195kg 1,196 ~ 1,310kg 1,311 ~ 1,420kg 1,421 ~ 1,530kg 2011 2012 ■ ■ ■ ■ ■ 89.9 Reference value 1,531 ~ 1,650kg 1,651 ~ 1,760kg 1,761 ~ 1,870kg 1,871 ~ 1,990kg 1,991 ~ 2,100kg 2013 2014 (FY) HC and NOx emissions from Honda vehicles in Japan2 (FY2001=100) ■ HC ■NOx 100 100 ~ ■ Overall ■ Eco-Assist 99.2 97.3 97.2 80 89.9 10 60 0 40 99.0 98.3 50.8 23.1 2001 30.0 2010 2011 20.6 15.3 75.1 2012 2013 2014 (FY) 20 1.7 2. Excluding emissions from light and heavy-duty trucks. 0 2010 2011 2012 2013 2014 (FY) In fiscal 2014, we reduced HC emissions by 84.7% and NOx emissions by 79.4% from fiscal 2001 levels. (%) 100 ■ ★★★Ultra-low emission vehicles (50% cleaner than required by regulation) 100 ■ ★★★★Super-ultra-low emission vehicles (75% cleaner than required by regulation) In addition to fuel economy meters that help driv~ (Units) ers apply fuel-efficient driving techniques 1,814 and other 800,000 30 eco-driving support systems, we have been803,672 installing 700,000 5,317 35,819Drive Assist (Eco Assist)3 system 20.6 our 600,000 Ecological in a 20 673,805 16,431 11,784 594,059 15.3 growing number of vehicles. This system is designed 542,747 549,394 500,000 10 to effectively help drivers improve their fuel efficien400,000 cy by providing real-time feedback on the impact to 300,000 0 fuel-efficiency of 2010 their driving techniques, also 2011 2012 2013 while 2014 (FY) 200,000 2001 optimally controlling HVAC and other systems. 100,000 In fiscal02014, eco-driving support systems were in- 30.0 23.1 8.44 99.2 7.80 14.4 13.2 12.2 11.1 10.2 9.4 ~ 40 1,421 ~ 1,530kg 17.2 ■ HC ■NOx 5 60 18.7 99.0 20 14.06 18.38 17.61 98.3 100 Reference value 21.0 20.8 20.5 97.3 Vehicle weight class: 30.0■ 40 1.7 21.72 97.2 60 30 (%) In fiscal 2014, 95% of all Honda passenger cars 13.66 13.2 ■ ■ ■ ■ ■ 805 11.1 10.2 9.4 21.0 21.72 ■ 1,531 ~ 1,650kg 20.8 20.5 ■ 1,651 ~ 1,760kg 1,761 ~ 1,870kg ■ 1,196 ~ 1,310kg ■ 18.7 18.38 ■ 741 ~ 855kg ■ 1,311 ~ 1,420kg ■ 0 17.61 1,871 ~ 1,990kg 17.2 (FY) ■ 8562010 ~ 970kg2011 ■ 1,9912014 ~ 2,100kg ■ 1,4212012 ~ 1,530kg2013 971 ~ 1,080kg 1,081 ~ 1,195kg 1,196 ~ 1,310kg 99.0 98.3 1,311 ~ 1,420kg 100 (%) 200,000 ■ 971 ~ 1,080kg Vehicle weight class: 20 ■ 1,081 ~ 1,195kg 100,000 ■ Overall ■ Eco-Assist ■ Vehicle weight class: (%) ■ 100 ■ 97.3■ 97.2 ■ 741 ~ 855kg ■ 856 ~ 970kg ■ 80 (FY) 17.2 Reference value 14.06 13.66 13.49 ■ 10 Overall ■ Eco-Assist (%) 14.4 1,814 13.2 803,67212.2 8.44 7.80 26.95 15 18.7 15.8 15 ~ 54 8 20.8 20.5 24.00 ■ 平成27年度燃費基準+10%適合 ■ 平成27年度燃費基準+20%適合 ■ 平成22年度燃費基準+20%適合 INDEX > 0 0 021.0 ■ 1,531 ~ 1,650kg 28.54 ■ 1,651 ~ 1,760kg 26.95 ■ 1,761 ~ 1,870kg ■ 1,871 ~ 1,990kg ■ 1,991 ~ 2,100kg 24.03 20 (FY) 2010 2011 2012 2013 2014 (FY) 2008 2009 2010 2011 2012 100 1. Data since 2011 based on JC08 test cycle, data up to 2010 ■ 平成22年度燃費基準+25%適合 100 ■ 平成22年度燃費基準適合 based■on 10-15 test cycle. 平成22年度燃費基準+5%適合 ■ 平成27年度燃費基準適合 60 20 50 0 0 18.38 201117.612012 (%) ~ ~ (型式数) ■ 平成22年度燃費基準+10%適合 30 70 ■ 平成22年度燃費基準+15%適合 0 Japan ■ 平成22年度燃費基準+25%適合 15.8 ■ 平成27年度燃費基準適合 14.06 14.4 ■ 平成22年度燃費基準+10%適合 ■ 平成27年度燃費基準+10%適合 13.66 13.2 ■ 平成22年度燃費基準+15%適合 ■ 平成27年度燃費基準+20%適合 13.49 12.2 ■ 平成22年度燃費基準+20%適合 11.1 10.2 10 9.4 8.44 Average fuel efficiency of vehicles that comply with 7.80 (km/ℓ) 30 53 7 17 18 40 0 120 30 2008 9 7 2 0 0 11 24.03 1 24.00 6 2 2 21.72 8 6 the FY2015 standards, classified by weight 75.1 30.0 54 8 2 5 3 42 26.95 6 ■ 平成22年度燃費基準適合 15 ■ 平成22年度燃費基準+5%適合 99.2 2011 97.3 97.2 9 四輪 120 100 ■ Overall ■ Eco-Assist ~ ~ (%) 0 100 9 7 10 20 0 140 28.54 44 6 15 20 160 53 7 17 18 40 25 30 Automobiles Honda ENVIRONMENTAL ANNUAL REPORT 2014 54 8 50 2014 (FY) ■ Overall ■ Eco-Assist (%) (FY) 2010 of Honda 2011 passenger 2012 2013 2014 stalled in 99.2% cars sold in Japan, with 89.9% of vehicles featuring an Eco Assist system. 99.2 100 ■HC ■NOx 3. The Eco Assist in multiple ways. In "Econ" mode, priority is given to fuel economy, and the vehicle automatically controls the engine, 99.0 97.3works 98.3 97.2 system (%) 100 ■ ★★★Ultra-low emission vehicles (50% cleaner the than background required by regulation) motor, fuel efficiency. It also includes a coaching function, which changes color of the 80 CVT, and HVAC system to effectively improve 89.9 100 ■ ★★★★Super-ultra-low vehicles (75% cleaner than required by regulation) speedometer according to acceleration and braking efficiency, and a teaching function that shows theemission driver's eco-driving score. ~ 60 30 40 20 20 50.8 (Units) 75.1 800,000 30.0 23.1 20.6 15.3 1.7 0 2010 2001 2011 ~ 10 0 2010 2012 2011 2013 2012 2014 2013 (FY) 2014 (FY) 700,000 600,000 500,000 400,000 300,000 200,000 35,819 594,059 16,431 11,784 542,747 549,394 5,317 673,805 1,814 803,672 J17 Direction Products Management 8 domains Honda ENVIRONMENTAL ANNUAL REPORT 2014 Japan INDEX > Power Products Honda develops power equipment based on the philosophy that less stress on users also can mean less stress on the environment. HSL2511: the world's first snow blower with FI technology ● World's first auger assist function In November 2013, we released the HSL2511, the first snow blower in the world1 to incorporate fuel injection (FI) technology. This two-stage snow blower employs the Honda Smart Auger System, which has three auger settings (auger assist, auger lift, and auger reset) that make heavy snow-throwing work simple and easy. The world-first2 auger assist function,3 which can be turned on and off with the flip of a switch, makes simple work of snow-clearing jobs that require more advanced techniques, such as clearing high banks of snow in a step-wise fashion. The model's new four-stroke V-twin engine, which includes a Honda-original electronic governor for regulating engine speed and electronic fuel injection (a first in the world1 for a gasoline HSL2511 two-stage snow blower (front) engine-powered snow blower), delivers high fuel economy and exceptional ease of operation and starting. ● Simple operation, powerful results The adoption of a Honda-exclusive STR Governor and powerful new V-twin engine provide class-leading2 snow clearing performance of 140 tons per hour. Two operating modes provide different engine output characteristics depending on the situation: Standard mode uses powerful torque to achieve quick and easy snow removal, while Distance mode uses high speed, high output to throw snow higher and farther—in fact, as far as 26 meters, the farthest HSL2511 two-stage snow blower (back) Engine torque comparison between Distance and Standard modes 18 16 which features a speed guide monitor to help the operator 14 ciency in each mode. At Honda, we develop snow blowers based on the philosophy that easier, more efficient operation not only reduces stress for users but also reduces energy use through shorter Engine torque (N·m) in its class.2 The HSL2511 also includes a teaching function, adjust the driving speed and obtain the highest work effi- work times, thus shrinking our impact on the global envi- Distance mode 12 10 Standard mode 8 6 Decreased engine speed from heavy load 4 2 0 ronment. ● Pursuing reliability, comfort, and ease of use HSL2511 control panel 1500 2000 2500 3000 3500 engine speed(rpm) 4000 4500 *The engine is designed to provide much higher torque when the engine slows down, making operation easy The inclusion of FI eliminates the need for choke operation, as high fuel economy. This also made the carburetor obso- Can throw snow faster and farther High providing smooth starts even in frigid temperatures, as well Electronic governor and after-use maintenance. ● Environmental performance Engine lete, along with the associated need for altitude correction Conventional governor only delivers better practical fuel efficiency4 but also less noise5 and fewer emissions. Low A new GX690H V-twin engine (displacement 688 cm3) not Low engine speed 1. For petrol engine snow blower (Honda internal data, as of July 31, 2013) 2. Honda internal data, as of July 31, 2013 3. J-type only 4. Approximately 15% better compared to the previous model in the same class, despite 20 cm3 larger engine displacement 5. When operated in Standard mode 3850rpm High J18 Honda ENVIRONMENTAL ANNUAL REPORT 2014 Japan INDEX > Management To reduce environmental impacts across the life cycles of its products, Honda sets and executes policies and targets in each of eight domains of its operations. J20 Environmental Management in Japan J20 Environmental management organization J21 Environmental auditing J21 Environmental compliance and pollution prevention J22 Environmental education J24 Environmental accounting J25 Environmental Impact in Japan J26 The Eight Domains of Honda Business Activities J27 Product Development Discussion : Executive Officer × Operating Manager × Associate / Environmental initiatives J30 Purchasing Discussion : Executive Officer × Operating Manager × Associate / Environmental initiatives J34 Production Discussion : Executive Officer × Operating Manager × Associate / Environmental initiatives J40 Transportation Discussion : Executive Officer × Operating Manager × Associate / Environmental initiatives J44 Sales and Service Discussion : Executive Officer × Operating Manager × Associate / Environmental initiatives J48 Product Recycling (3Rs) Discussion : Executive Officer × Operating Manager × Associate / Environmental initiatives J53 Administration Discussion : Executive Officer × Operating Manager × Associate / Environmental initiatives J57 IT Discussion : Executive Officer × Operating Manager × Associate / Environmental initiatives J60 Philanthropic Environmental Initiatives J60 Beach clean-up efforts J60 Watershed conservation J60 Environmental education J62 Cleanup campaigns J62 HondaWoods J19 Direction Products Management 8 domains Honda ENVIRONMENTAL ANNUAL REPORT 2014 Japan INDEX > Environmental Management in Japan Since launching the Japan Environmental Committee in 1991, Honda has been developing and expanding its institutional framework to put into practice the environmental principles articulated in the Honda Environment Statement. We also have strengthened our environmental auditing and pollution prevention systems, provided associates with training, and practiced other principles of an environmentally responsible organization. Environmental management organization In December 1991, we established the Japan Environmental review progress in meeting targets set by each division. The Committee to ensure that environmental initiatives in Ja- committee proposes measures to address cross-divisional pan are executed to the highest standards and to maintain challenges and strives to maintain and achieve continuous our leadership in the field. The committee holds meetings improvements in environmental performance in Japan. in each division to promote environmental impact reduc- Each division sets its own targets based on the mid-term tions, product and parts recycling, and other improvements plans for environmental initiatives decided by the commit- at facilities used by each division, in transportation, and tee, and then follows the PDCA cycle to reduce environ- at group companies. Executive officers and administrators mental impacts, including those at associated facilities and from production, purchasing, sales, service and parts, ad- group companies, and improve environment-related proj- ministration, and IT, as well as from Honda R&D, all take ects and measures. part in committee activities. Since fiscal 2006, the committee has worked to bolster The Japan Environmental Committee's role is to propose initiatives at financially consolidated group companies in mid-term environmental policies and targets based on Japan. analysis of social trends related to the environment and to Organizational structure for implementing environmental initiatives in Japan Facilities and companies covered Production Divisions Environmental Administrators Green Factory Promotion Block Purchasing Divisions Honda Green Network Meeting Japan Environmental Committee R&D Divisions Environmental Committee Sales Divisions Environmental Committee Secretariat Environmental Promotion Center Environment & Safety Planning Office Service and Parts Divisions Environmental Committee Administration Divisions Environmental Committee IT Divisions Production sites Production Planning Division Quality Assurance Division Honda Engineering Co., Ltd Transportation group companies Parts-manufacturing group companies Business sites of Honda R&D Co., Ltd. R&D group companies Honda Access Corporation Honda Motorcycle Japan Co., Ltd. Automobile, motorcycle, power product dealers Sales-related group companies Parts distribution warehouses Service parts shipping Headquarters/ other office facilities Group companies IT division of each business site As of June 2014 J20 Direction Products Management 8 domains Honda ENVIRONMENTAL ANNUAL REPORT 2014 Japan Environmental Management in Japan INDEX > Environmental auditing The following is a summary of environmental management We will continue to capitalize on management practices activities in production, the part of our operations with a geared toward ongoing improvement, including applying large environmental footprint relative to other operations. the PDCA cycle to legal compliance and environmental Environmental initiatives at production facilities in Japan measures and coordinating environmental policies by oper- follow mid-term plans created by the Environmental Ad- ating all production facilities under a single environmental ministrators Committee and environmental management management system. programs based on annual targets. The ISO 14001 man- This environmental management system also is subject to agement systems used at our factories in Japan (Saitama, internal auditing, including auditing within individual fac- Tochigi, Hamamatsu, Suzuka, and Kumamoto) received tories and reciprocal auditing between factories. External certification in fiscal 1998 and were integrated into a single audits are carried out by certification bodies. system in fiscal 2011. The system was expanded to include In fiscal 2014, we took immediate steps to remedy 11 issues the Saitama Factory's engine plant, completed in fiscal identified by external audits. We also continued to expand 2012, and will soon include the Saitama Factory's Yorii our internal audit capabilities by training 132 additional Automobile Plant, which started production in July 2013. internal audit staff. Environmental management structure Environmental Administrators at factories Independent certification body Assesses implementation of the environmental management system Integrated environmental management system Environmental Administrators Committee Mid-term environmental plans and annual targets Environmental promotion administrators ISO Secretariat Factories Factories Implementation Implementation Reciprocal audits Internal audits, improvement Internal audits, improvement Assesses legal compliance and progress toward meeting targets Revision, improvement Environmental compliance and pollution prevention Product recalls When a product is discovered to have an unforeseen or potential environmental impact, Honda takes appropriate and timely market-based action, including product recalls, in accordance with related laws and regulations. There were no environment-related product recalls in fiscal 2014. Emergency protocol Each factory and division has clearly defined pollution prevention and mitigation procedures in preparation for potential accidents or emergencies that could cause environmental pollution. Emergency drills and training events are held regularly in Japan to further increase Emergency protocol Head of facility operation Environmental Administrator Emergency or accident Site check Site check Person who discovered problem Report Issue instructions Contact Contact Facility Management Division Safety & Disaster Prevention Center Contact Emergency contact tree Request action Contact Contractor Off hours Relevant internal/ external organizations emergency preparedness. J21 Direction Products Management 8 domains Honda ENVIRONMENTAL ANNUAL REPORT 2014 Environmental Management in Japan Japan INDEX > Legal compliance Preventing air and water pollution There were no violations of environmental laws or regula- Our efforts to prevent air and water pollution include regu- tions in fiscal 2014. larly measuring and monitoring pollutant amounts in line In management of daily operations, we received two com- with voluntary standards that are more stringent than regu- plaints/requests related to noise at production sites. We have latory limits for plant effluent and exhaust gas from combus- once again asked suppliers and other relevant parties to fully tion systems. address these complaints/requests. Other issues Compliance with Japan's PCB Special Measures Law Our Green Factory initiative is one way we are maintaining mu- In fiscal 2014, we disposed of 173 high-pressure capaci- tually supportive and trusting relationships with the communi- tors containing PCBs in compliance with the PCB Special ties around our production facilities. Recent activities included Measures Law. We will continue properly disposing of the more frequent soil and groundwater monitoring through the remaining 588 units of transformers, capacitors, and other observation wells at factory sites. devices containing PCB oil, annually reporting storage information to the proper authorities, and managing devices to prevent leaks and accidents. For details, please see http://www.honda.co.jp/environment/report/japan/data/ (in Japanese) Environmental education ● Providing systematic environmental education acquire basic knowledge about the natural environment, Honda provides a systematic environmental education pro- the circumstances surrounding the mobility industry, and gram for associates to ensure they understand the magni- Honda's environmental initiatives. For new associates who tude of the mobility industry's environmental responsibility undergo hands-on training at factories following their initial and to direct their attention toward ways they can help pro- training, factory managers brief associates on environmental tect the environment in their individual duties. policies and initiatives unique to their workplace to foster an We take a two-pronged approach to education: classroom understanding of the environmental requirements of manu- training for new hires, associates who have been promoted, facturing processes. The same training is provided to mid-ca- and associates working in hazardous environments; and reer workers. Associates also receive training whenever they practical training to raise the environmental awareness of as- transfer to a different workplace. sociates in their daily work. Learning is enhanced in an envi- New managers are given an understanding of the level of ronment where all associates have access to comprehensive environmental awareness and knowledge that is expected of information through our internal web portal and the Honda them and a review of the direction Honda is taking in its en- website. vironmental programs. Regular classes and training sessions Career Classroom training Training for Training for mid-career new hires workers Awareness-raising tools General training Environmental e-learning Training for associates who work in hazardous environments Eco-etiquette activities Training for internal environmental auditors Honda Green Action Honda Green Conference Training for managers Practical training Information Internal web portal Honda website also are held for associates who work in hazardous environments and for internal environmental auditors. ●Practical training Practical training is offered on a continual basis and is geared toward raising environmental awareness with applications in day-to-day operations and sharing environmental best practices that cannot be covered by classroom training alone. 〈 Honda Green Action〉 ・Eco-etiquette activities To implement environmental initiatives effectively, our associates need to be sensitive to environmental issues and act within their power to effect change. In 2009, Honda Motor Co., Ltd. ● Classroom training launched an initiative to spur individual action, called Honda All of our business sites, subsidiaries, and affiliated com- Green Action, and expanded the initiative to the rest of the Hon- panies plan and implement environmental educational da Group in 2010. programs based on their respective environmental management systems. During their initial training, new associates J22 Direction Products Management 8 domains Honda ENVIRONMENTAL ANNUAL REPORT 2014 Environmental Management in Japan Japan INDEX > ・Environmental e-learning and waste sorting. We supplement classroom education about our environ- Motivated by these tools, associates take individual action to mental management systems with self-supervised train- reduce environmental impacts in their daily activities. ing that includes the Honda Environmental Certification e-learning program. The program features quiz-type tutorials designed to deepen general knowledge about environmental issues, global developments, and topics we are PC accessories (top) addressing with the Honda Green Action initiative. This "Save energy" sticker (bottom left) training, which is open to associates of all positions and "Save water" sticker (bottom right) levels of expertise, is helping to raise environmental awareness across the organization by being easily accessible via 〈 Honda Green Conference 〉 the company intranet and website. Honda Green Conferences have been held since 1999 to The first two courses, released in fiscal 2013 and 2014, cov- share and disseminate best practices for reducing the envi- er Honda's top-priority topics of climate change issue and ronmental impact of the Honda Group in Japan and to en- energy issue. We plan to release a new course every year to courage such practices to take root throughout the organi- continue promoting environmental activities and raising zation. Each business domain holds an annual conference the environmental awareness of all associates. and the Honda Group holds a general conference every three years to highlight and share outstanding initiatives. The Honda Green Conference 2013 held in December highlighted eight initiatives selected from the annual conferences conducted between fiscal years 2012 and 2014. (Read more about Honda Green Conference 2013 on page J04.) Honda Environmental Certification Exam: Climate change issue Honda Environmental Certification Exam: Energy issue ・Awareness-raising tools In Honda Green Action, various tools are created to bring associates' attention to the many things they can do on their own to protect the environment. During Environment Month held every year in June, Honda distributes awareness posters and stickers promoting energy conservation. In fiscal 2013, computer accessories and a screen saver urging associates to save energy and not to overcharge their laptops also were distributed. Sticker themes also were expanded to include water conservation Honda Green Conference 2013 held at Hotel Twin Ring on December 4, 2013 Leafel takes the stage, online and in real life Leafel, Honda's environmental mascot, is doing everything it can to help a wider audience understand Honda's environmental initiatives. Leafel's Forest http://www.honda.co.jp/leafel/ (in Japanese) Leafel's dedicated website, "Leafel's Forest" (in Japanese only), features various content such as "Leafel's Story" and "Leafel's Secrets" and also includes announcements on events in Japan where it plans to make an appearance. Leafel also is the star on Honda e-PRESS, Honda's official Facebook page for environmental topics. Honda's official Facebook: Honda e-PRESS (in Japanese) https://www.facebook.com/honda.epress J23 Direction Products Management (年度) Honda 2009 8 domains (単位:万t-CO2換算) 2010 直接排出量 Environmental Management in Japan ■ 生産 ■ 非生産 ENVIRONMENTAL ANNUAL REPORT 2014 47 2011 Environmental accounting Japan 48 INDEX > 44 92 2009 In addition to tallying the costs associated with environmental activities indicators of our corporate value but are also used as a reference for mak- and investments, Honda also discloses information on the material, ing administrative decisions regarding environmental innovation. Going economic, and customer benefits of these activities and investments, as forward, we will continue working to improve the accuracy of these data, well as the overall environmental efficiency of our business. These data, including those reported by consolidated subsidiaries and affiliated compa- which are made available to our external stakeholders, not only serve as nies in Japan. 2010 間接排出量 2011 ● Cost of environmental conservation activities and investments in fiscal 2014 Category Business area costs ● Air, water, and soil pollution prevention Global environmental conservation costs Recycling costs Upstream/downstream costs 0 20 40 60 FY2014 59 ● Global warming mitigation, ozone depletion prevention, and other conservation activities 3,097 2011 515 2,226 ● Waste processing, treatment, reduction, elimination, and recycling 2,279 1,280 254 2010 4 Management costs Research and development costs ● Research, development, planning, and design for impact reductions (年度) across product life cycles (R&D costs for advanced eco-cars, including EVs and PHVs) Local conservation costs ● Environmental improvement measures, including ecosystem protection, cleanups, green space development, and natural landscape conservation ● Local conservation and communication activities (beach cleanups and watershed conservation activities) 2009 1,102 527 3,000 6,000 2,424 10,235 発生量 215,188 528 9,000 12,000 35 15,000 5,579 16,456 421,800186,513 有価物 (単位:t) 330,800 重量ベースで総発生量の0.01%以下 0 239 発生量 有価物 0 2 重量ベースで総発生量の0.01%以下 16,835 440,500 194 342,800 4 社外直接埋立量 合計 557 11,940 ■ 生産 ■ 非生産 社外直接埋立量 2010 ● Remediation of polluted soil 1,795 12,780 7,870 0 43 (単位:千㎥) Expenditures 11,800 (million yen) 7,710 45 2011 100 FY2013■ 生産 ■ 非生産 1,903 ● Collection, recycling, resale, and proper disposal of products 排水量 manufactured and sold ● Industry organization and other membership fees 80 Investments (million yen) 1,177 2010 使用量 ● Installation, operation, and acquisition of certification for environmental management systems ● Environmental impact monitoring and measurement ● Management and training of associates and organizations responsible for environmental conservation (expenses for environment-related communications activities) Environmental damage costs 84 (年度) Investments Expenditures 2009 (million yen) (million yen) Major activities and investments Pollution prevention costs 84 221,597 0 4 19,559 196,272 453,200 発生量 ・Companies covered: Honda Motor Co., Ltd., Honda R&D Co., Ltd., Honda Engineering Co., Ltd., and Honda Access Corporation ・Accounting period: April 1, 2013, 2011 348,000 有価物 to March 31, 2014 ・Some figures are estimated values. ・Guidelines, guidebooks, and other environmental accounting publications by Japan's Ministry of the Environment were used as references. ・Figures were calculated on a cash-flow basis with depreciation社外直接埋立量 and amortization expenses excluded. 重量ベースで総発生量の0.01%以下 0 ● Material benefits Energy use 〈 Customer benefits 〉 Water use FY2013 13,400 13,300 100 4,990 4,790 200 1,000㎥ Difference CO2 emissions t-CO2 709,200 656,800 52,400 CO2 emissions from transportation t-CO2 65,200 64,400 800 (as a high-volume shipper) 500,000 600,000 700,000 In fiscal 2014, the higher average fuel efficiency of our products FY2014 TJ 100,000 200,000 300,000 400,000 Total waste generated t 194,300 198,000 -3,700 ASR1 recycling rate % 96.0 94.2 2 VOC2 emissions t 2,580 2,660 -80 PRTR3 emissions t 800 820 -20 brought our automobile customers in Japan approximately 42.4 ■ 生産 (単位:t) (年度) billion yen in savings, resulting in a cumulative customer savings 4,970 VOC from fuel-efficiency gains of 256 billion yen since fiscal 2001. 2009 1,650 ■ Method usedPRTR to calculate customer benefits Change in average fuel efficiency4 each fiscal year × average distance traveled5 × average gasoline price in each fiscal year6 × number of vehicles owned7 4. Based on theVOC 10 -15 test cycle 4,300 5. Ave ra ge d i s t a n ce t rave l e d p e r ye a r a cco rd i n g t o t h e m o t o r ve h i c l e 2010 transportation statistics complied by Japan's Ministry of Land, Infrastructure 1,600 PRTR and Transport (=10,000 km) 6. Source: Oil Information Center, the Institute of Energy Economics, Japan 7. Cumulative total, vehicle history VOCtaking into account new vehicle sales and average 4,150 2011 〈 Environmental efficiency 〉 PRTR 1,350 We use the following formula to define and measure the environmental efficiency of our business activities and promote 0 1,000 2,000 3,000 4,000 5,000 continuous improvement in environmental management. Environmental efficiency in fiscal 2014 was 45% higher than it was in FY2001. ● Economic benefits Environmental efficiency = Business size (net sales) ÷ Environmental impact (CO2 emissions) 〈Effect on revenue and expenses 〉 160 141 150 Cost reductions from saved energy Installed technologies Behavioral changes, etc. Total FY2014 FY2013 3.8 bil 2.4 bil 120 0.1 bil 0.2 bil 100 0.05 bil 0.1 bil 3.9 bil 2.7 bil 130 110 117 126 145 119 100 90 80 2000 ~ ~ Income from sale of valuable waste materials 140 2009 2010 2011 2012 1. ASR: Automobile Shredder Residue (年度) 2. VOC (Volatile Organic Compounds): Organic chemical substances that cause photochemical smog and are common in paint and thinner solvents 3. A PRTR (Pollutant Release and Transfer Register) is a national or regional database of information the environmental release and off-site transfer 2010 on 排水量 7,710 of potentially hazardous chemical substances from industrial and other facilities. 2011 排水量 7,870 2013 (FY) J24 Indirect energy consumption 2012 7,120 2013 Direction 2014 7,270 Products 0 Indirect energy Management 7,640 2,000 4,000 6,000 ■ Production ■ Non-production (FY) Direct energy emissions 2,000 4,000 480we strive to make our production facilities Through our Green 2011 Factory initiative, Direct energy 6,000 8,000 7,840 2012 7,120 ■ Production ■ Honda ENVIRONMENTAL ANNUAL Non-production REPORT 7,270 2014 2013 (FY) 2011 2012 (1,000 t-CO2e) Japan 470 0 7,640 480 2,000 4,000 INDEX > 8,000 6,000 440 2013 (1,000 t-CO2e) 470 0 2010 2014 8,000 Environmental Impact in Japan 2010 consumption 8 domains 2011 430 (FY) 2014 in 2010 Japan 440 the pride of ■ Production ■ Non-production (1,000 t-CO2e) the470 communities 440 to conserve energy, cut waste, and reduce environmental 2011 in which they2012 operate. We are working impacts 480 in other areas 2010 emissions 430 2013 as well by promoting green logistics, green dealers, and green offices. 440 2014 *Totals with more than three digits have been rounded to three significant digits. 2010 Indirect energy 2011 840 2012 840 2013 (FY) 2014 2010 consumption 2011 (TJ) 0 200 400 600 2012 800 1,000 12,800 7,180 7,640 11,900 7,110 7,840 11,300 6,950 7,120 11,800 7,040 7,270 (1,000 t-CO2e) 440 331 470 Less than 0.01% by weight 2011 480 Generated 2010 Direct energy 2011 Sold for 2012 reuse emissions 2011 Landfilled Indirect energy 2013 440 Less than 0.01% by weight 343 840 430 2012 emissions Generated 2014 2013 2012 453 Less than 0.01% by weight 2010 200 400 Generated 2011 0 Indirect energy 2013 Sold for reuse 2012 emissions Landfilled Less than 0.01% by weight 2013 (FY) 1,150 920 800 459840 1,000 600 1,200 337 840 ■ Production ■ Non-production (1,000 m3) 1,050 Generated 2010 458 2014 11,800 2013 Honda Group in Japan 0 100 200 300 500 600 ■ Other waste and emissions 2014 2014 2011 2 PRTR 3,000 WastewaterVOC 2012 2011 volume PRTR (FY) 2012 2010 6,000 1,650 1,600 VOC 2014 Generated PRTR Generated VOC 2011 2014 Sold for reuse PRTR (FY) Landfilled 1,200 Less than 0.01% by weight 0 1,000 2,000 4,970 12,000 15,000 volume 3,920 4,150 8,300 422 331 12,000 3,560 9,000 (1,000 t) 15,000 440 3,180 ■ Production ■ Non-production 343 (1,000 t) 3,000422 4,000 Generated 453 Sold for reuse 331 2012 Landfilled LessMotor than 0.01% by weight Companies Co., Ltd. and nearly all production-related Sold covered: for reuseHonda 348 consolidated subsidiariesLess andthan affiliated companies Landfilled 0.01% by weight 440 Generated 5,000 400 600 800 1,200 (1,000 m3) 1,050 11,800 12,800 0 200 400 600 800 1,000 1,150 1,200 11,900 ■ Production ■11,300 Non-production 11,800 11,800 2011 2011 7,700 2012 7,900 2013 8,000 2011 1,000 840 840 Non-production ■ Production ■ 2014 12,800 11,900 11,300 8,300 0 3,000 6,000 (1,000 m3) 11,800 9,000 7,700 12,000 15,000 Companies affiliated companies of the Wastewatercovered: 7,900 2012 All consolidated subsidiaries and Honda Group in Japan volume ■ 8,000 Production ■ Non-production 2013 *Disclosure of wastewater volume began in fiscal 2011. (1,000 t) (FY) *Wastewater volume data are partially based on estimates. 8,300 Generated 2014 422 2010 Sold for reuse 0 Less than3,000 6,000 Landfilled 0.01% by weight 331 9,000 ■2011 Waste Sold for reuse (FY) Landfilled Less than 0.01% by weight Generated 2010 Generated Sold for reuse 2012 Sold for reuse Landfilled Landfilled 2012 2014 2013 Less than 0.01% by weight Less than 0.01% by weight (1,000 t) 422 453 331 348 440 Less than 0.01% by weight Landfilled Generated 459 343 337 Less than 0.01% by weight Sold for reuse Generated Landfilled Less than 0.01% by weight Sold for reuse Generated Landfilled Sold for reuse 453 348 458 347 Less than 0.01% by weight by weight 0 Less than 100 0.01%200 300 459 337 400 500 Generated 2014 15,000 ■ Production ■ Non-production 343 Generated Landfilled 12,000 440 Generated 600 700 600 700 458 Sold for reuse 347 Landfilled Less than 0.01% by weight 0 100 200 300 400 500 ■ Production (FY) (t) Companies covered: Nearly all consolidated subsidiaries and affiliated compaVOC1 4,970 nies of the Honda Group in Japan 2010 1,650 PRTR2 2011 2012 (FY) 2010 2013 ■ 8,000 Production ■ Non-production 1,350 Sold for reuse 0 3,000 6,000 VOC Less than 0.01% by weight 2013 Landfilled 1,280 PRTR 2010 (t) 7,700 9,000 7,900 2013 Generated ■ Production 11,800 8,300 0 Wastewater Water use 700 m3) (1,000 *For information about (FY)greenhouse gas calculation methods, see the MOE/METI (2013) 11,800 2014 "Greenhouse Gas2010 Emissions Calculation and Reporting Manual, ver.3.4"11,800 and WRI/ WBCSD (2004) "The Greenhouse Gas Protocol (Revised Edition)." 12,800 2011 purchased electricity are calculated7,700 for each utility based on the *CO2 emissions from 2011 latest emission factors. 11,900 Water use 2012 Wastewater 7,900 2012 *Calculations are based mainly on emissions from stationary sources. volume 11,300 2013 8,000 2013 200 (FY) 2014 2010 ■ Production ■11,300 Non-production 400 0 2013 1,150 12,800 2011 Sold for reuse 0 347 200 400 600 800 1,000 1,200 11,900 Water use 2012 Less than 0.01% by weight Landfilled Companies covered: All consolidated subsidiaries and affiliated companies of the VOC1 2012 1,150 920 Generated Sold for reuse 2013 Landfilled Sold for reuse 1,050 348 1,050 (FY) 2013 Water use 2011 840 440 Sold for reuse Landfilled 2014 920 440 840 440 2010 2014 2011 7,040 (TJ) 11,800 7,160 ■ Greenhouse gas emissions (FY) emissions 1,200 7,110 (FY) Sold for 2014 reuse 2010 Landfilled 430 2012 7,180 ■ Production ■ Non-production 6,950 (1,000 m3) ■ Production ■ Non-production 2013 (FY) (FY) 2014 2010 2010 840 energyuse, wastewater volume ■Indirect Water 7,160 1,150 3.6 GJ/MWh. 3,000 6,000 9,000 12,000 15,000 7,640 2014 470 2010 0 *Calculations are based mainly on energy consumed by stationary sources. *A terajoule (TJ) is a unit of energy, "tera" meaning 4801012. 2011 0 2,000 4,000 6,000 8,000 Direct energy 440 ■ Production ■ Non-production 2012 emissions (1,000 t) (FY) 430 2013 Generated 422 ■ Production ■ Non-production 2010 2014 2013 2011 7,700 2011 7,640 2014 7,640 2010 Wastewater 2012 7,900 2,000 4,000 6,000 8,000 7,840 2011 0 volume 8,000 Indirect energy 2013 Companies covered: of 7,120 2012 All consolidated subsidiaries and affiliated companies consumption the Honda Group 8,300 2014in Japan 7,270 2013 ■ Production ■ Non-production *Purchased electricity standard (FY) has been converted to joules using the international(1,000 t-CO2e) 2014 2013 2012 emissions 920 440 2014 2010 1,050 ■ Production ■ Non-production 2011 2011 2010 Direct Water energy use 2012 2012 consumption 2011 2013 Indirect energy 2013 2012 consumption 2014 2014 2013 2010 2012 2011 emissions Indirect energy 920 ■emissions Energy consumption Direct energy Direct energy 2011 2014 2012 2013 2014 160 VOC 3,920 PRTR 1,600 VOC PRTR 4,150 ■ Production 1,350 PRTR VOC1 VOC PRTR2 PRTR VOC VOC PRTR PRTR VOC (t) 1,650 1,280 3,180 1,600 1,200 0 1,000 2,000 1,350 3,000 4,150 5,000 3,560 1,280 PRTR VOC 3,180 1,200 PRTR 0 140 3,920 4,000 VOC 150 4,970 3,560 130 125 1,000 2,000 3,000 126 117 120 4,000 5,000 119 2012 130 120 110 2014 100 Generated Sold for reuse Generated Landfilled 100 Sold for reuse 126453 125 117 Less than 0.01% by weight 348 347 458 119 150 80 140 130 120 2000 ~ ~ 2011 100 110 343 Sold for reuse Generated 459 1. VOC Organic Compounds): Organic chemical substances that cause photochemical smog and are common in paint and thinner solvents 160 (Volatile Less than 0.01% by weight 100 2013 Landfilled 2. A150 PRTR Sold (Pollutant Release and Transfer Register) for reuse 337 is a national or regional database of information on the environmental release and off-site transfer of poten160 90 tially hazardous chemical Less substances than 0.01% by from weightindustrial and other facilities. Landfilled 140 2008 125 2009 117 2010 126 2011(年度) 119 J25 Direction Products Management 8 domains Honda ENVIRONMENTAL ANNUAL REPORT 2014 Japan INDEX > The Eight Domains of Honda Business Activities To facilitate progress in reducing the environmental impacts of our business activities, Honda divides these activities into eight domains, one for each stage in the life cycles of our products̶from development through end-of-life. Annual and mid-term policies and targets for environmental initiatives are set for each domain. For more information about environmental targets and results in each domain, see page D16 of Honda Environmental Annual Report 2014: Data Index. Major initiatives in the eight domains Promote "green purchasing" ・Energy and resource conservation at suppliers1 ・Zero waste and emissions initiatives at suppliers Promote "green laboratories" Promote "green factories" ・Energy and resource conservation ・Energy and resource conservation ・Zero waste and emissions initiatives ・Zero waste and emissions initiatives ・Carbon Smart Deveropment Project Promote "Green ICT" Promote ・Energy conservation ・Reduce CO2 emissions "green offices" ・Reduce waste generation ・Reduce water use 3R initiatives in product development 3R initiatives for parts Promote "green logistics" 3R initiatives for end-of-life products ・Increase transportation efficiency ・Use less packaging Promote "green dealers" ・CO2 emissions reductions at sales companies Triple Zero symbols In this report, specific measures, activities, products, and technologies that contribute to realization of the Triple Zero concept are indicated with one or more of three Triple Zero symbols. CO2 emission reduction/ elimination technology For more information about the Triple Zero concept, see page G22 of the Global Report. Waste reduction/ elimination or 3R technology Energy risk reduction/ elimination technology 1. Suppliers: All direct suppliers of consolidated group companies. J26 Direction Products Management 8 domains Honda ENVIRONMENTAL ANNUAL REPORT 2014 Japan INDEX > Recognizing that reducing CO 2 emissions from product use is critical to the preservation of the Product Development global environment, Honda is aggressively pursuing development of fuel-efficient products. That is why we also are working to reduce the carbon footprint of the development processes themselves, with inspiration taken from the motto "low-carbon development of low-carbon products." We are working to reduce various other environmental impacts from these processes as well. Discussion Executive Officer × Operating Manager × Associate Setting a high bar to cut emissions even as we scale up development. Kazuhito Aizawa Chief Engineer, Automobile R&D Center, Honda R&D Co., Ltd. Toshiyuki Kurihara Director of Development and Innovation, Automobile R&D Center, Honda R&D Co., Ltd. Shinya Ogawa General Manager, Administration Office, Honda R&D Co., Ltd. Systems now in place to make real progress on low-carbon development In the product development domain, what are Honda's long-term or constant environmental goals? What efforts were made in fiscal 2014 in pursuit of these goals? Kurihara: Our highest environmental priority in product development is to develop and offer to customers products that have the lowest possible environmental impacts. By this I mean cars with excellent fuel efficiency and low CO2 emissions. The second priority is to ensure that our development operations themselves have low environmental impacts. We use the motto "low-carbon development of low-carbon products" to articulate these two aims. In recent years, we have focused on modifying the work environment, facilities, and structures to support low-carbon development. In fiscal 2014, we expanded the scope of activities at the Tochigi R&D Center1 beyond the original Carbon-Smart Development Project 2 to a committee structure that covers the entire Center. With this change, we have finally laid the groundwork for implementing measures that reduce environmental impacts on a significant scale. 1. Officially, the Automobile R&D Center (Tochigi) of Honda R&D Co., Ltd. It is engaged in automobile product development. 2. Learn more in Case 15 of "Environmental Documentary—Honda Face." (http://world.honda.com/environment/face/) J27 Direction Products Management 8 domains Honda ENVIRONMENTAL ANNUAL REPORT 2014 Japan INDEX > Product Development Ogawa: In the Facility Administration Department of the Operations Office, we are focused on the energy conservation and efficiency of our offices and test facilities. Looking back over the past three years, we have challenged ourselves to make big reductions in electricity consumption and CO2 emissions ahead of the Revised Energy Conservation Act, which took effect in April 2014, by installing cogeneration and large-scale solar equipment and power storage systems, and by cutting peak electricity consumption during summer and winter. A major achievement in fiscal 2014 was the completion of a project to obtain measurement data on actual electricity, gasoline, and utility gas consumption at about 5,000 locations onsite; this formed part of a larger energy visualization effort conducted in tandem with the Carbon-Smart Development Project. With the systems now in place, we can see, at a glance, where and how we are consuming energy. And we have already initiated a number of actions based on this new input, such as reducing standby electricity consumption on days when the Center is closed. Aizawa: Engineers naturally want numerical measures of what we are doing; once we see data, wasted energy enters our realm of responsibility. In that sense, making things more Toshiyuki Kurihara Director of Development and Innovation, Automobile R&D Center, Honda R&D Co., Ltd. visible has had a big impact on raising the awareness of individual associates here. In fiscal 2014, as members of the low-carbon project, we reviewed the operating methods of the facilities and promoted greater efficiency. The fact that we were able to meet our CO2 emissions reduction targets for the entire R&D Center for fiscal 2014 is a major achievement. Shifting to low-carbon development without slowing down What will be your policy or course of action at the start of the new mid-term that begins in fiscal 2015? How will front-line associates execute this? Kurihara: From fiscal 2015 onward, energy consumption at the Tochigi R&D Center is expected to increase as we develop more models for the global market and as we become increasingly involved in development associated with F1 racing. But Honda's mission as a mobility company requires that we set a high bar for reducing total CO2 emissions. With energy monitoring systems in place and the transition to a committee structure complete, we now have a solid foundation on which to build. If Shinya Ogawa General Manager, Administration Office, Honda R&D Co., Ltd. we can continue executing our plans, I really think we can achieve our goal. Ogawa: Besides actually implementing these measures to reduce CO2 emissions, another task of ours is to consider measures to execute in the next mid-term. There is no end to environmental improvement; it continues on indefinitely. If we are looking at only today, we will miss out on actions we can take in the future. This means looking three to five years ahead to identify solutions and make plans to bring our development operations ever closer to being carbon free. Fiscal 2015 will be a crucial year in this process. Aizawa: Ultimately, it is on the frontlines that ideas arise that pave the way to the future. Because energy monitoring has finally given us the big picture on energy use, I have received a number of ideas about how to change things to reduce energy consumption at the wind tunnel testing facility where I work. The key is to establish a work environment where people can articulate their ideas, share them using graphic tools, and incorporate them into further planning. It is also important to cut impacts through our actions as individuals. That is my role, as I have been involved in low-carbon development here since the time it was just a project. Kazuhito Aizawa Chief Engineer, Automobile R&D Center, Honda R&D Co., Ltd. As a member of the Carbon-Smart Development Project, revised and improved efficiency of facility operation methods Kurihara: Cutting waste and unnecessary processes onsite, while further advancing low-carbon development without slowing the pace―this is the ultimate direction we need to take and Honda's social responsibility as a manufacturer of mobility products. I myself will actively communicate this through committee activities and other opportunities so everyone on the frontlines can understand. Together, I hope we can become an environmental leader in product development. J28 1,500 Products Management 8 domains 1,000 Honda 1,000 500 500 500 0 Product Development Environmental initiatives at Honda R&D ● Energy and resource conservation 0 0 pursued its goal of reducing per-unit CO2 emissions by 6% from fiscal 200 150 200 2013, we have proactively introduced more efficient equipment, such as LED lighting, upgraded heat source equipment, refurbished motors for air conditioners, and upgraded room air conditioners. In fiscal 2014, to meet Hokkaido Electric's strict 6% power-saving reduc- Japan 25 25 25 0 2009 2010 2009 2009 2010 2010 > (年度) 2011 INDEX 0 2011 2011 150 100 150 100 50 100 50 0 50 0 0 100 100 104 100 77 81 81 77 77 139 144 125 125 139 139 144 144 78 78 150 152 150 150 152 152 2010 2011 2012 2013 2010 2010 2011 2011 2012 2012 2013 2013 113 113 113 2001 2001 2001 125 Water use Per-unit water use Proving Ground adjusted the operation of air conditioning equipment to ■ Total 3water use (1,000 ) ■ Totalmwater use Per-unit water use Per-unit water use ed taking steps to reduce water consumption in dishwashers, reducing water consumption by changing the operation of water filter equipment, and the proactive use of spring water at the Motorcycle R&D Center. ● Zero waste and emissions 1,500 (1,000 m3) (1,000 m3) 1,500 1,500 1,200 1,200 1,200 900 80 60 80 60 40 60 40 20 40 20 020 0 2014 (FY) 2014 (FY) 900 900 600 600 600 300 (%) 150 (%) (%) 150 150 120 100 100 1,180 77 76 73 75 75 1,120 77 77 1,220 74 76 76 1,260 1,260 1,260 73 73 1,410 1,120 1,120 1,220 1,220 74 74 1,320 1,320 1,320 1,410 1,410 2010 2011 2012 2013 2010 2010 2011 2011 2012 2012 2013 2013 2014 (FY) 0 1,180 1,180 300 300 0 0 2001 0 2001 2001 120 120 90 75 90 90 60 60 60 30 30 030 0 2014 (FY) 2014 (FY) Honda R&D's target for waste generation in fiscal 2014 was a 27% re- Waste generation duction from fiscal 2001. By ramping up waste separation efforts and ■ Total waste generation Per-unit waste generation converting more waste into salable material, it achieved a 38% reduction. ■ Total waste generation ■(t)Total waste generation Per-unit waste generation Per-unit waste generation (%) of a rag supply service. 12,000 12,000 9,000 The Automobile R&D Center in Wako has been promoting reductions 9,000 9,000 6,000 in chemical emissions by continuously switching to low-VOC1 paint for 6,000 6,000 3,000 prototype vehicles. Moreover, all sites select paint thinners that contain 3,000 3,000 0 lower levels of hazardous chemicals. ● Carbon-Smart Development Project Honda R&D, which researches and develops automobiles, motorcycles, and power products, is Honda's key product development organization. The Automobile R&D Center (Tochigi) has been implementing the Carbon-Smart Development Project since 2010, under the slogan "low-car2 bon development of low-carbon products." In fiscal 2014, we used the approximately 5,000 smart meters already installed at the Tochigi R&D Center to graph parameters such as electricity consumption and CO2 emissions from the use of testing equipment and other types of equipment, and we now monitor the status of electricity consumption for almost all equipment. This information is displayed via 0 0 150 (%) (%) 150 150 120 100 100 100 10,800 82 82 11,900 76 76 10,400 10,800 10,800 2001 82 76 11,900 11,900 10,400 10,400 ~ ~ ~~ ~ ~ reviewing the sludge removal standards for septic tanks, and by the use 15,000 (t) (t) 15,000 15,000 12,000 2001 2001 76 69 76 76 11,600 62 69 69 11,300 11,600 11,600 11,300 11,300 2010 2011 2012 2013 2010 2010 2011 2011 2012 2012 2013 2013 62 62 11,000 11,000 11,000 120 120 90 90 90 60 60 60 30 30 030 2014 (FY) 0 0 2014 (FY) 2014 (FY) Tochigi R&D Center Carbon-Smart Development Project ■ CO2 排出量 ■ CO 2 排出量原単位指数 ■ CO2 排出量 ■ CO2 排出量原単位指数 (t-CO (%) 2) 100 ■ CO CO2 排出量原単位指数 2 排出量 ■ Low-carbon development of low-carbon products 25,000 (t-CO2) 100 (t-CO2) 100 25,000 25,000 20,000 87.4 82.6 87.4 81.0 87.4 82.6 Reduce development use 81.0 21,989 82.6 energy 81.0 18,495 Streamline 21,989 development testing 21,989 19,547 not (Efficiency/rationalization 44.0 18,495 19,547 14,015 equipment Turn off power the primary target) 18,495 15,000New Save power 44.0 15,000 Ongoing 10,000 44.0 14,015 Ongoing 10,478 efficiency improvement 14,015 rationalization Leverage 10,000 Energy storage 10,000 10,478 5,000 Solar Equipment Power down 10,478 20,000 20,000 15,000 5,000 5,000 0 19,547 Cogeneration Waste heat 2000 0 0 2000 2000 energy infrastructure 100 (%) (%) 100 100 80 ホンダ ホンダ ホンダ 80 80 60 60 60 40 40 40 20 20 020 ~ ~ ~~ ~ ~ Municipal waste was reduced by 7% due to waste reduction achieved by 本田技 本田技 100 80 100 2014 (FY) 0 100 ~ ~ ~~ ~ ~ 2001; ultimately, it achieved a 27% reduction. Specific strategies includ- 本田技 120 (%) (%) 120 100 120 *0.378 t-CO2/MWh was used as a fixed CO2 emissions factor for electricity across all years ■ Total water use Honda R&D also worked to cut per-unit water use by 20% from fiscal (%) 81 78 tion target for the winter season compared to fiscal 2011, the Takasu reduce peak demand. 0 (年度) (年度) ■ Total CO2 emissions ■ Per-unit CO2 emissions CO 2 emissions Honda R&D Co., Ltd. endeavored to conserve energy in fiscal 2014 as it Also, along with the significant upgrades that have continued since fiscal 75 75 50 1,384 1,384 (1,000 t-COCO 2) ■ Total ■ Per-unit CO2 emissions 2 emissions ■ Total CO2 emissions ■ Per-unit CO2 emissions 300t-CO2) (1,000 104 (1,000 t-CO100 2) 100 300 250 300 104 100 250 200 250 2001; it achieved a 23% reduction. 75 75 75 1,384 1,657 1,657 50 ENVIRONMENTAL ANNUAL REPORT 2014 50 ~ ~ ~~ ~ ~ Direction 1,657 1,848 1,848 1,500 1,500 1,000 Strengthen 2008 education/training 2009 2010 2011(年度) 0 0 Create Tochigi R&D Center 2008 2009 2010 2008 and philosophy 2009 2010 slogan 2011(年度) 2011(年度) the in-house Social Networking Service (SNS). We have created a system that allows the many engineers at the Tochigi R&D Center to suggest ways to further reduce energy consumption on an ongoing basis, year after year. We refer to this as an "awareness-raising tool," and plan to further strengthen communication among engineers in order to promote activities to cut carbon emissions. ■ 水資源使用量 ■ 水資源使用量原単位指数 ■ ㎥) 水資源使用量 ■ 水資源使用量原単位指数 ( ■ 水資源使用量 ■ 水資源使用量原単位指数 120,000 ( ㎥) ( ㎥) 120,000 120,000 90,000 90,000 90,000 60,000 60,000 60,000 30,000 (%) 160 (%) (%) 160 160 120 131.8 131.8 131.8 79,864 79,864 79,864 99.5 100 99.5 99.5 100 100 72.9 57,629 72.9 72.9 41,449 61,285 61,285 61,285 57,629 57,629 30,000 30,000 41,449 41,449 120 120 80 80 80 40 40 40 0 2011 (年度) 0 0 2011 (年度) 2011 (年度) Screenshots of awareness-raising tools 0 0 0 2008 2009 2010 2008 2009 2010 2008 2009 2010 1. Volatile Organic Compounds: Organic substances that cause photochemical smog and are commonly used in the solvents of paints and thinners. 2. Read more about the Carbon-Smart Development Project in CASE 15 of "Environmental Documentary Honda Face." (http://world.honda.com/environment/face/) J29 ■ 廃棄物等発生量 ■ 廃棄物等リサイクル率 ■ 廃棄物等リサイクル率 100 ( 廃棄物等発生量 ■ t廃棄物等発生量 ■ ) 99.9 99.3 ■ 廃棄物等リサイクル率 93.1 2,500 100 (t) 99.9 99.3 100 100 100 100 (%) 100 (%) Direction Products Management 8 domains Honda ENVIRONMENTAL ANNUAL REPORT 2014 Japan INDEX > Honda purchases a vast number of product parts from suppliers. Their cooperation, therefore, is essential to reducing environmental impacts at Purchasing every stage in our products' life cycles. We created the Global Environmental Vision for Purchasing to unify efforts toward this single objective. We 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. Discussion Executive Officer × Operating Manager × Associate Working with suppliers to eliminate all supply chain CO2 emissions Jun Doi Assistant Manager, Purchasing Global Operations Planning Office Naoto Matsui Chief Operating Officer for Purchasing Operations Hiroshi Saito General Manager, Purchasing Global Operations Planning Office Suppliers play a key role in monitoring CO2 emissions throughout our supply chain. In the purchasing domain, what are Honda's long-term or constant environmental goals? What efforts were made in fiscal 2014 in pursuit of these goals? Matsui: Honda products incorporate an extraordinarily large number of parts from suppliers. One Honda automobile, for example, uses more than 20,000 parts purchased from specialized vendors. The point here is that these suppliers' manufacturing facilities are located all around the world, and each facility emits carbon dioxide. In the purchasing domain, our aim is to reduce CO2 emissions from the supply chain to the absolute minimum. The manufacturing operations of Honda and of our suppliers have been a welcome presence in communities around the world, and we believe continuously improving our environmental performance is essential to maintaining favorable relations in the future. We created the Global Environmental Vision for Purchasing to "globally carry out corporate activities that are mutually harmonious with and beneficial to local communities in order to continue exceeding customer expectations in terms of quality, cost, delivery, development, and the environment (QCDDE)." We are sharing these guidelines with our suppliers and working with them to realize this vision. J30 Direction Products Management 8 domains Honda ENVIRONMENTAL ANNUAL REPORT 2014 Japan INDEX > Purchasing Saito: In fiscal 2014, we fulfilled our plan to widen the scope of CO2 monitoring to all suppliers worldwide. We have several hundred direct suppliers in Japan alone, and our global supply chain when extended upstream to include the original raw material suppliers comprises an enormous number of companies. Asking suppliers to also monitor carbon emissions in their upstream procurement chains enables comprehensive emissions management over the entire supply chain. Monitoring may sound simple, but it's actually a huge collaborative effort with suppliers around the world. Doi: In fact, suppliers play a crucial role in managing and ultimately reducing CO2 emissions from our value chain. That is why it is so important for us to share our thinking and objectives with them. To communicate our intentions clearly, we hold meetings with their directors and workers and visit their facilities. I have realized from our talks that they actually have a very strong awareness. I am the one to initiate the meetings, yet I often come away feeling stimulated and having learned something Naoto Matsui Chief Operating Officer for Purchasing Operations new. Aiming for zero CO2 emissions at every manufacturing site What initiatives will the purchasing domain implement in the new mid-term that begins in fiscal 2015? What objectives do you have beyond that period? Saito: Our initiatives in fiscal 2015 will have two objectives. One is to reduce CO2 emissions by ensuring that Honda purchasing operations and its suppliers in all regions share the same vision and are using monitoring data. The other is to promote the spread and adoption of suppliers' best practices. Each region has its own environmental regulations and programs. Europe, for example, is steadily introducing regulatory, standardization, and evaluation systems, and the advanced management these systems enable is encouraging local suppliers to carry out some very progressive activities. We're trying to learn as much as we can from their work and share it with our global supplier network to set a higher standard across the board. Hiroshi Saito General Manager, Purchasing Global Operations Planning Office Doi: The first objective of CO2 reduction means we have to make huge amounts of environmental data—and the results of analysis using such data—available to all Honda purchasing staff and suppliers. The new data management system we launched at the start of fiscal 2015 will make this possible. For the second objective, to promote the spread and adoption of effective measures, an inter-regional environmental committee for purchasing was created in fiscal 2014. This committee will provide purchasing staff in each region with the opportunity to share suppliers' best environmental management methods and CO2 reduction measures with other regions, allowing staff and their suppliers in all regions to improve the effectiveness of their environmental activities. Matsui: Honda's ultimate aim is to work with its suppliers in building a supply chain with virtually zero CO2 emissions. The first priority is to get all companies in our supply chain to actively work on reducing the carbon intensity of their business activities so that local communities accept and support their operations. Honda has an obligation to provide products that are beneficial for customers and are environ- Jun Doi Assistant Manager, Purchasing Global Operations Planning Office In charge of constructing the environmental data management system and coordinating the meetings of the inter-regional environmental committee for purchasing mentally responsible; customers will not enjoy a product that is missing either of those elements. We want to reduce CO2 emissions at every company that makes one or more of the thousands of parts that go into our products. That's our mission. J31 Direction Products Management 8 domains Honda ENVIRONMENTAL ANNUAL REPORT 2014 Japan INDEX > Purchasing ■ Environmental management in the purchasing domain Global Environmental Vision for Purchasing ● Global Environmental Vision for Purchasing Honda Enviromental and Safety Vision Realize the joy and freedom of mobility and a sustainable society where people can enjoy life The Honda Global Environmental Vision for Purchasing succinctly expresses our desire to reduce the environmental impacts of our suppliers worldwide and to globally conduct our operations in ways that are harmonious with and Goal Globally conduct business in ways that are harmonious with and beneficial to local communities to continue exceeding customer expectations on QCDDE. beneficial to local communities as we source parts for our motorcycles, auto- Slogan mobiles, and power products from a growing global supply network. "Green Excellence around the World" for Exciting and Thrilling Products We have translated this aim into an operating policy called Green Purchasing Guidelines, and a three-step action plan called Grand Environmental Policy Design for Purchasing, both of which we share and implement with our suppliers. ● Honda Green Purchasing Guidelines Honda Green Purchasing Guidelines Reduce product life cycle greenhouse gas emissions Action Grand Environmental Design Leverage PDCA to realize a low-carbon global supply chain The Honda Green Purchasing Guidelines express our intention to strengthen business relationships with suppliers that support our aim to reduce greenhouse gas emissions and other environmental impacts through the Revised Green Purchasing Guidelines (as of January 2011) sourcing of low-impact materials and parts from low-impact activities. The addition of "environment" (E) to the list of metrics used to evaluate suppliers—quality (Q), cost (C), delivery (D), and development (D)—will guide ● Promote purchasing of environmentally responsible products ● Add an environment category to Policies supplier evaluations (quality, cost, delivery, development) us in this endeavor. Management ● Grand Environmental Design for Purchasing Honda has established a Grand Environmental Design for the realization of this low-carbon global supply chain, and is promoting initiatives through 2. Make preparations to manage greenhouse gas emissions reduction 3. Reduce greenhouse gas emissions ● Policy information meetings for suppliers Honda holds information meetings to help suppliers understand the Honda Manage environmental impacts in every domain Products 1. Communicate Honda's environmental policies Control items domain of our business activities Operations the following three steps: Build environmental management systems for products and in every Propose products that improve fuel efficiency Applies to: (e.g., GHG emissions) Control substances of concern All suppliers worldwide Green Purchasing Guidelines and gain their support in implementing the guidelines. In fiscal 2014, we hosted four information meetings in Japan to present our Environmental policy information meeting for suppliers greenhouse gas emissions reduction policy, mid-term objectives, and management methods. The meetings were attended by environmental managers and others responsible for implementing environmental measures at our supplier companies. ●Inter-regional Environmental Purchasing Committee We established an inter-regional environmental committee for purchasing in February 2013 to strengthen collaboration between regions as we globally accelerate low-carbon initiatives. The committee holds meetings for purchasing managers to share information, and discuss and coordinate actions. Inter-regional environmental purchasing committee meeting By sharing best practices across regions, we will strive to raise the bar on all purchasing activities worldwide. J32 Direction Products Management 8 domains Honda ENVIRONMENTAL ANNUAL REPORT 2014 Japan INDEX > Purchasing ● Honda Green Network Meeting and industry-specific working groups Industry-specific working group event In fiscal 2010, Honda began hosting Honda Green Network Meetings to serve as a forum for sharing environmental initiatives with suppliers. These events are held for suppliers that have similar production processes and/or use similar equipment, in order to facilitate the sharing of specific technical solutions. In fiscal 2014, discussions and facility tours were conducted at ten locations. Suppliers are actively applying new insights to the reduction of greenhouse gas emissions. ● Honda Green Conference The triennial Honda Green Conference provides a contact point for Honda and its suppliers to strengthen environmental activities and to share and expand successes across all organizations. In fiscal 2014, 54 environmental topics from 43 companies were shared. Musashi Seimitsu Industry Co., Ltd. received an Award for Energy Innovation for its presentation "Big reduction in power consumption achieved through energy efficiency monitoring."1 ● Presentation of the Environmental Award for suppliers Worksite tour (top), Group discussion (bottom) pliers that have implemented measures in accordance with the Honda Green Purchasing Guidelines and have shown exceptional progress in reducing environmental impacts in the upstream part of our value chain. The award has been presented to 15 companies in the three years since its inception in fiscal 2012. Raising supplier awareness about environmental impact reduction further helps promote the extension of environmental efforts across product life cycles. FY2012 F-Tech Inc., Dunlop Goodyear Tires Ltd., Pioneer Corporation, Shindengen Electric Manufacturing Co., Ltd., Yachiyo Industry Co., Ltd. FY2013 F-Tech Inc., Keihin Corporation, NOK Corporation, Showa Corporation, The Yokohama Rubber Co., Ltd. (%) 100 Bestex Kyoei Co., Ltd., Keihin Corporation, Tachi-S Co., FY2014 100 Ltd., Tanaka Seimitsu Kogyo Co., Ltd., Toyo Denso Co., Ltd. 80 88 84 83 80 100 Per-unit CO2 emissions (%) 40 80 100 20 60 80 0 40 60 ■ Energy and resource conservation at suppliers 2 We try in various ways to help suppliers reduce CO2 emissions and water use in every area of their business activities. Efforts to reduce CO2 emissions are aimed at reducing energy use and vary widely in content, in- 0 80 100 20 60 80 0 40 60 ● Waste generation Ongoing efforts to increase material throughput yields reduced perunit waste generation by the suppliers within our monitoring scope by 23% from fiscal 2009 to fiscal 2014. Suppliers also maintained their zero waste-to-landfill performance. 84 80 76 84 2010 2011 2012 2013 76 2010 2011 2012 2013 2014 (FY) 2010 2011 2012 80 2014 (FY) 2001 2013 2014 (FY) 108 100 100 2009 108 108 95 95 95 101 101 101 99 99 99 92 92 92 2010 2011 2012 2013 2014 (FY) 2009 2010 2011 2012 2013 2014 (FY) 2009 fiscal 2012 (FY) 2010 *Supplier 2011 scope 2012 changed 2013 in2014 20 40 0 20 ■ Zero waste and emissions initiatives at suppliers 83 83 Per-unit100 water use ing the combustion efficiency of aluminum melting furnaces, but also of fiscal 2001, while per-unit water use declined by 8% from fiscal 2009. 2001 100 120 60 (%) 100 120 40 ture. Per-unit CO2 emissions in fiscal 2014 fell by 24% from the base year 2001 88 *Supplier scope changed in fiscal 2012 *0.378 t-CO2/MWh was used as a fixed CO2 emissions factor for 120 electricity across all years 80 (%) as developing a plating material that can be processed at room tempera- 88 100 (%) cluding not only those related to production equipment, such as improvmodifying the specifications of the materials or parts themselves, such 100 20 40 0 20 ● CO2 emissions and water use (Alphabetical 76 order) (%) 60 ~ ~ Award, created in fiscal 2012, shows our appreciation and respect to sup- List of Supplier Environmental Award recipients ~ ~ categories—development, cost, quality, and parts. The Environmental ~ We honor suppliers that demonstrate outstanding performance in four 0 Per-unit waste generation (%) 100 80 (%) 60 100 (%) 40 100 80 20 80 60 0 60 40 100 97 100 97 100 97 2009 2010 40 20 1. See page J04 to learn more. 20 0 Initiatives presented at the 2013 conference are described in detail in the December 24, 2013, article of Environmental TOPICS. 2009 2010 0 http://www.honda.co.jp/environment/topics/topics25.html (in Japanese) 2009 2010 2. All direct suppliers of consolidated group companies. 90 90 90 2011 96 81 77 96 96 81 81 2012 2013 77 77 2014 (FY) *Supplier scope changed in fiscal 2012 2011 2012 2011 2012 2013 2013 2014 (FY) 2014 (FY) J33 Direction Products Management 8 domains Honda ENVIRONMENTAL ANNUAL REPORT 2014 Japan INDEX > As a manufacturer, Honda combines energy and materials through various processes and transforms them into products. We strive to minimize Production impacts on the global environment in all areas of these activities. We also are committed to improving the quality of local environments in collaboration with the communities in which we operate. To realize the Honda Environmental and Safety Vision, we take the Triple Zero approach to manufacturing low-impact products at low-impact factories that our neighbors can be proud of. Discussion Executive Officer × Operating Manager × Associate New Yorii Automobile Plant drives global leadership in environmentally responsible production Yuji Ito Staff Engineer, Saitama Planning and Administration Office, Production Supervisory Unit Takashi Yamamoto Head of Automobile Production Takehiro Kono Plant Manager, Yorii Automobile Plant, Saitama Factory It all starts on the factory floor In the production domain, what are Honda's long-term or constant environmental goals? What efforts were made in fiscal 2014 in pursuit of these goals? Yamamoto: Honda is essentially a manufacturer, so you could say that production operations are the very foundation of Honda's business. Right from the time Honda was established we have been aiming to manufacture better products more efficiently and to use the shortest possible processes. With the heightened importance of environmental issues, Honda has been reducing environmental impacts in all stages, from procuring materials to delivering products to customers, to final disposal. We're aware that production is the starting point of this chain of events, so we were the first to initiate efforts to reduce environmental impacts. We've challenged ourselves to practice the basic concept of manufacturing low-impact products at low-impact factories. J34 Direction Products Management 8 domains Honda ENVIRONMENTAL ANNUAL REPORT 2014 Japan INDEX > Production Kono: Our production associates are taking this kind of thinking to heart. Each person brings to his or her process a strong awareness that we are always looking for ways to maximize efficiency and create products with the least amount of energy. The only problem was that we faced limits to how much we could reduce environmental impacts using conventional methods. Our breakthrough came with the launch of the Yorii Automobile Plant in fiscal 2014. This plant has technologies and equipment unlike anything we have had before. Launching this next-generation factory without any setbacks was one of our top achievements in fiscal 2014. It will reduce CO2 emissions per vehicle produced by 30% compared to conventional factories. Ito: I am in charge of the coating processes at the Yorii Automobile Plant, and was involved right from the planning stage. Associate who work in coating have an especially strong environmental awareness because of the unique characteristics of these processes, and since this was going to be a new factory we wanted it to be dramatically more efficient and more eco-friendly than existing factories. We took on the challenge of creating new coating technologies with shorter processes, switching from the conventional 4-coat/3-bake coating process to a 3-coat/2-bake process.1 At Takashi Yamamoto Head of Automobile Production the planning stage, there was no guarantees that we could achieve this goal. But the R&D Center had already succeeded in developing new materials for these new coating technologies, so when the new plant opened in 2013, we were able to make the coating technology and equipment a reality, just as planned. Innovative, eco-conscious manufacturing technology from Japan to the world What will be your policy or course of action at the start of the new mid-term that begins in fiscal 2015? How will front-line associates execute this? Yamamoto: Production operations have a major role to play in Honda's aim to transform itself into a truly globalized company. Environmental impacts should not increase in proportion with production volume; whatever we do, we want our factories to have lower energy consumption and environmental impacts than before. To do this, we need to spread new technologies and know-how from the Yorii Automobile Plant to other plants worldwide as quickly as possible. Becoming a global environTakehiro Kono Plant Manager, Yorii Automobile Plant, Saitama Factory mental front-runner by doing so is our new mid-term goal. Kono: The rollout of technologies overseas has already started. Support staff from the Yorii Automobile Plant have been visiting our factory in Mexico, and technology from Yorii is also being introduced in Brazil and China. But because less than a year has elapsed since the Yorii Automobile Plant started running, we are still gaining operational experience with these technologies. In the next mid-term period, we need to learn more, make production even more efficient, and roll it out to our factories globally. Ito: Energy is closely linked to product quality on the production line. Poor coat quality in coating processes will always result in extra energy waste. So the attempt to ensure consistent product quality by its nature helps us manufacture more efficiently and minimize energy use. Daytime temperature variations at the Yorii Automobile Plant make it a challenging environment for coating, but I'm hoping to create standards that can be used worldwide, after building up experience with achieving consistency in coating under these kinds of conditions. Yamamoto: Society's expectations of manufacturing becoming more environmentally responsible are not limited to just CO2 emissions and energy but also extend to such things as reducing emissions of volatile organic compounds and using water more effi- Yuji Ito Staff Engineer, Saitama Planning and Administration Office, Production Supervisory Unit ciently. In response, Honda needs to pick up the pace of its own transformation. To do Involved in introducing shorter, more efficient coating technologies at the Yorii Automobile Plant that what we do now shapes who we will be five or six years in the future. All of this this, everyone involved in production needs to approach each day with the awareness connects to the further evolution and globalization of our manufacturing expertise. 1. For example, a 4-coat/3-bake process uses four coats of paint and three drying steps. Therefore, a 3-coat/2-bake process saves one paint coat and one curing step. We refer to this as Honda Smart Ecological Paint. For more information, see page G15 of the Global Report, entitled "Environmental Frontrunner Yorii Automobile Plant Starts Production!" J35 Direction Products Management 8 domains Honda ENVIRONMENTAL ANNUAL REPORT 2014 Japan INDEX > Production ●Flow of energy and materials through production in Japan in FY2014 Release and transfer of chemical substances: ・Released to atmosphere: 793 t ・Released to hydrosphere: 2 t ・Transferred off-site: 45 t Waste ・Total waste generated: 171,300 t ・Waste landfilled: 0 t Wastewater:1,796,000 m3 ● Major energy conservation (GHG emission reduction) initiatives CO2 emissions from automobile and motorcycle production ■ Total emissions ■ Emissions per automobile produced In fiscal 2014, production operations generated 408,000 t-CO2, an in- ■ Emissions per motorcycle produced crease of 7.9% from the previous fiscal year, which was partially due to a (1,000 t-CO2) 〈 Production changes 〉 We began operations at the Yorii Automobile Plant in July 2013, starting up effi- 500 200 compared to existing plants. We also consolidated motorcycle production at the 100 We broadened the scope of our energy management activities and increased monitoring at multiple factories during the year. Steps taken to improve production efficiency included designating members at each factory to inspect energy use, especially in the energy-intensive coating and machining operations. These efforts helped us identify ways to cut emissions by 400 t-CO2 annually. 〈 Site-based CO2 emission reduction initiatives 〉 Each business site monitors energy use and works to improve the efficiency 350 290 240 (1,000 t-CO2) 2009 105 2011 2012 100 93 100 Machining: Meticulously examined each machine to locate and rectify sources of loss, and assessed effective measures ■Advanced energy monitoring Segmented energy usage (electricity, gas, air, steam, water) by facility characteristics Upgraded energy management systems to find new areas to improve ■Full recovery and use of exhaust heat Recovered high-temperature exhaust heat for use as an HVAC heat source (broadened scope of exhaust heat recovery) ■Sharing of environmental impact reduction initiatives (Honda Green Conference2) Production operations from each business site presented 15 initiatives at the domain conference. Initiatives were adopted at other sites, and best practices were presented at the general conference. 0 (FY) (%) 94 91 88EPCO: 0.373 t-CO2/ 0.1% ●Tokyo EPCO: 0.406 t-CO 2/MWh ●Chubu 350Kerosene 80 300 Gasoline and diesel 0.8% 2901.1% Propane MWh ●Kyushu EPCO: 0.599 t-CO2/MWh ●Utility 270 gas (13A 240 240 70 46200 MJ): 2.296 t-CO2/1,000 m3 ●Utility gas (13A 45 MJ): 2.244 t-CO2/1,000 m3 ●Kerosene: 2.489 t-CO2/kl ●Diesel: 2.585 60 100 Utility t-CO2/kl ●Gasoline: 2.322 t-CO2/kl ●Propane: 2.999 t-CO2/t 0 2009 gas 33.1% 2011 Purchased 2013 electricity 64.9% 2012 2014 0 (FY) Energy use by source (based on CO2 equivalence) Kerosene 0.1% Propane 1.1% Gasoline and diesel 0.8% Utility gas ■ Municipal water ■33.1% IndustrialPurchased water ■ Well water electricity ■ Rainwater ■ Per-unit water use 64.9% (1,000m3) 8,000 125 100 6,400 100 5,273 27 4,800 125 89 94 83 100 75 3,233 3,351 3,298 3,315 3,103 58 46 61 49 ●Power generation at production plants46 1,263 1,145 1,413 1,385 1,305 3,097 3,200 (%) 50 1,600 Power 25 generation equipment at our production 1,472 1,570 1,370 1,272Industrial 1,316 water ■ 1,229 ■ Municipal water ■ Well water facilities produced 82,700555 MWh of elec677 in Japan 555 551 520 590 ■ Rainwater ■ Per-unit water use 0 0 tricity in fiscal 2014,2011 with 81,200 2001 2010 2012 MWh 2013 generated 2014 (FY) (%) (1,000m ) 125 by electric generators and 1,437 MWh by solar pho8,000 125 tovoltaic systems. The100 increased use of generators 100 94 helped us reduce the overall89peak electricity 6,400 83 use 100 5,273 of our production産業廃棄物等発生量原単位指数 facilities in Japan by 7.3% from ■ 廃棄物等総発生量 ■ 27 4,800 75 (千t) fiscal143 2011. We will continue using on-site gener-(%) 3,233 3,351 3,315 3,298 150 250.0 3,103 ation3,097 equipment to further lower our peak power 50 3,200 46 58 46 61 49 consumption.1,413 1,385 1,305 1,263 1,145 ~ ~ Shared information within our factory network to promote the spread and adoption of measures to reduce energy loss Coating: Assessed the heat balance of drying ovens and corrected the gap with the theoretical value to reduce LNG usage 60 90 400following CO2 emissions factors were used for FY2014: The 82 amount of heat, which isn't affected by CO2 emissions factors. CO2 emissions reduction initiatives in fiscal 2014 138 2014 2013 70 Note: Includes only production of finished vehicles 100 500 the production setup of their facilities by managing energy use based on the ■Introduced innovative production processes (dry paint booths, coating system without middle coat, etc.) ■Expanded measures to reduce production energy loss 90 80 270 240 ■ Emissions per motorcycle produced 0 of production facilities by reducing energy loss, while also refining their operating and management methods. Factories are also working to improve 91 88 (%) 100 ■ Total emissions ■ Emissions per automobile produced ~ ~ Kumamoto Factory, where we mainly produce large bikes. 94 82 300 cient production that realizes a 30% reduction in CO2 emissions per automobile 93 100 400 138 100 ~ ~ nationwide rise in emission factors. 105 ~ ~ ■ Energy and resource conservation ~ ~ See below for CO 2 emission factors GHG emissions: 408,000 t-CO2 ・CO2 emissions from energy and non-energy sources: 406,000 t-CO2 ・Non-CO2 GHG emissions: 2,000 t-CO2 ~ ~ Water: 3,351,000 m3 Output ~ ~ Material inputs: Purchased steel, aluminum, and other metals: 275,000 t PRTR1-listed substances: 3,271 t Production related business activities Energy: 9,193 TJ Solar generated: 1,437 MWh Heat recovered from group facilities: 466 t Input 3 Per-vehicle CO2 emissions decreased by 9% for automobiles from the fiscal 2011 base year. It increased by 38% for motorcycles due to an overall decline in motorcycle production and a focus on producing large bikes. We will continue to promote the spread of best practices and aim to implement higher standards at all factories to further improve production efficiency. 200.0 1,600 150.0 0 100.0 1,472 677 2001 ~ ~ 〈 Per-unit CO2 emissions 〉 102 1,272 100 1,316 1,229 96 1,370 520 555 79 590 2010 2011 2012 2013 2014 551 555 1,570 120 25 90 0 (FY) 60 ~ ~ 87 1. A PRTR (Pollutant Release and Transfer Register) is a national or regional database of information on the environmental release and off-site transfer of potentially hazardous chemical substances from industrial and other facilities. 30 50.0 2. See page J04 to learn more about the Honda Green Conference. 161 000 196 153 157 155 Initiatives presented at the 2013 conference are described in detail in the December 24, 2013, article of Environmental TOPICS. 0 0 ■ 廃棄物等総発生量 ■ 産業廃棄物等発生量原単位指数 2009 2010 2011 2012 2013 (年度) http://www.honda.co.jp/environment/topics/topics25.html (in Japanese) (千t) 2000 250.0 143 (%) 150 J36 Direction Products Management 8 domains Utility gas 33.1% Purchased Honda ENVIRONMENTAL ANNUAL REPORT 2014 electricity 64.9% Japan INDEX > Production 17% reduction from fiscal 2011. Production efficiency improved and water use declined at our production operations as well as other facilities largely due to the ingenuity of our associates. For example, associates at the Suzuka Factory developed a new technology to analyze and control the volume of mold release agent used in the aluminum casting process, leading to substantial savings in both energy and water. Water use ■ Municipal water ■ Industrial water ■ Well water ■ Rainwater ■ Per-unit water use 125 (1,000m3) 8,000 (%) 125 100 100 ■ CO2 排出量 ■ 四輪車生産1台当たりの CO2 94 排出量原単位指数 89 6,400 100 83 ■ 二輪車生産1台当たりの CO2 排出量原単位指数 5,273 138 (万t-CO 4,800 2) 27 75 (%) 105 100 50 3,200 40 1,600 30 0 20 1,472 35 677 2001 3,233 3,31593 3,103 94 58 46 49 1,263 1,385 1,305 82 1,370 1,272 1,316 1,229 88 55129 555 520 555 2010 201124 2012 242013 3,298 61 1,413 3,097 100 100 50 ~ A total of 3,351,000 m3 of water was used for production in fiscal 2014, a ~ ~ ● Major water (resource) use reduction initiatives 3,351 46 1,145 90 25 1,570 87 590 27 80 0 (FY) 70 2014 60 10 The aluminum casting process involves pouring molten aluminum into a mold where it hardens to the shape of the part being cast. Prior to pouring, a release agent is sprayed on the mold to make extracting the hardened part easier and also to facilitate cooling. The spray also is essential to producing parts without molding flaws. However, the temperature of a mold is not necessarily uniform throughout, so adjusting the spray volume solely to the hottest section leads to excess use of the agent on 0 (年度) (%) ~ 0 ■ 廃棄物等総発生量 ■ 産業廃棄物等発生量原単位指数 ● Two mist 2008 nozzle types 2010 2011 2012 2013 (千t) 143 250.0 150 200.0 102 灯油 0.1% 150.0 100 120 96 ガソリン・軽油 0.8% 79 LPG 1.1% 100.0 90 60 87 50.0 Wide-angle mist 196 nozzle: wide-area 0 uni2000 form application ~ ~ Mold release agent used in aluminum casting cut by more than 50% ~ ~ <Water use reduction measures> 都市ガス Narrow-angle 161 153 155 33.1%157mist購入電力 nozzle: pinpoint 64.9% 2009 2010 2011 2012 application capability 30 000 0 2013 (年度) lower-temperature sections. Using both wide- and narrow-angle nozzles improves mold Honda's technological advances are creating the need for increasingly temperature control and prevents excessive use of release agent. of innovation. The Casting Module 1 facility at the Suzuka Factory has achieved pinpoint temperature control with a technology that analyzes a cast part's heat distribution and uses both wide- and narrow-angle mist gradation. Mist nozzles are notorious for clogged holes and inconsistent spray volumes, but Honda and Honda Engineering Co., Ltd. overcame these problems by developing a patented valve-integrated manifold. These developments reduced the volume of release agent used in the Suzuka Factory's aluminum casting process by 60% and likewise decreased 53.8 New valve 33.5 -integrated round manifold 31.0 雨水活用 ■ 上水 ■ 工業用水 ■ 井戸水 ■ 27.3 24.7 22.2 ■ 水使用量原単位指数 40 Agent inlet 125 20 3) (千m 8,000 6,400 0 4,800 5,273 2001 27 100 100 2010 2011 94 89 2012 2013 83 2014 the manifold are Release agent flow rate 3,298 Valves 3,233 3,351 3,315inside 3,103 3,097 3,200 controlled. 46 58 46 Equal varies depending on 61 collectively 49 1,145 1,263 1,385 between 1,305 the inlet and the distance between 1,413 distances 1,600 each nozzle enable a consistent 1,472 the inlet and nozzles. 1,272 1,316 1,229 1,370 1,570 rate. 520 677 555 551 spray 0 ■ Total2000 emissions ■ Per-unit emissions 2009 2010 2011 ~ the amount of water used to dilute the agent. Existing manifold Agent inlet nozzles to spray release agent matched to each section's temperature (g/m2) 60 ● Newly developed mist spray system ~ ~ intricate parts, making mold temperature control an important area (t) 555 2012 590 waste generated by its production activities. Production generated 171,000 tons of waste in fiscal 2014, of which 21,800 tons was industrial waste. This represents a 21% reduction in per-unit industrial waste from 50.0 2,000 40.0 1,000 30.0 0 20.0 fiscal 2011. The majority of the waste from our production activities is 10.0 scrap metal, which is a recyclable resource, while industrial waste from 0 our processing activities includes oil and plastic. Developing new manufacturing technology and improving product yield and quality are two key elements in our constant drive to reduce industrial waste. One such measure was the introduction of a new gear cutting method at the Transmission Factory's Hamamatsu Plant. The new technology improves production efficiency and vastly reduces waste.1 2002 ~ ~ Honda actively practices the 3Rs (reduce, reuse, and recycle) to reduce 143 50 25 0 240 3,000 ■ Total waste generation ■ Per-unit industrial waste generation (1,000 t) 2,731 100 (FY) 75 (%) 233 Waste generation 180 (%) 114 100 1,429 102 100 972 864 811 87 815 795 79 90 2010 2011 2012 2013 2014 0 (FY) 60 22.9 22.6 20.8 22.5 21.8 2010 2011 2012 2013 2014 89 83 78 150 120 120 60 96 30 41.3 2001 ~ ● Reducing waste 125 2013 (年度) 4,000 ■ Zero waste and emissions (%) 0 (FY) ( 千t) Waste generation (including valuable resources) Fiscal 2014 147.1 Scrap metals 7.3 Waste oil 2 (g/m ) 60 Sludge 5.8 53.8 3.4 Waste foundry sand Coating waste 33.5 40 Other 31.0 1.2 27.3 6.5 24.7 22.2 2011 2013 (年度) 171.3 Total 20 0 2000 ~ 1. Read more about the story behind Honda's new, eco-friendly gear cutting method in Case 35 of "Environmental Documentary—Honda Face." (http://world.honda.com/environment/face) 2009 2010 2012 J37 6,400 Products Management 8 domains Production 4,800 3,200 3,097 1,600 1,472 64.9% 83 100 75 Honda ENVIRONMENTAL ANNUAL REPORT 2014 0 677 2001 ~ ~ Direction 5,273 27 100 Purchased 94 33.1% 100 89 electricity 3,233 46 1,263 3,351 46 1,145 1,370 1,570 INDEX > Japan 3,298 61 1,413 3,315 58 1,385 3,103 49 1,305 1,272 1,316 1,229 520 555 590 2010 2011 2012 2013 2014 551 555 50 25 0 (FY) ■ Municipal water ■ Industrial water ■ Well water ■ Rainwater ■ Per-unit water use ■ 廃棄物等総発生量 ■ 産業廃棄物等発生量原単位指数 125 (千t) 143 8,000 <Waste reduction initiatives> (%) (%) 125 150 (1,000m3) Reducing sludge at wastewater treatment plants 250.0 100 6,400 100 89 94 83 100 200.0 The creation of sludge is an inherent part of the wastewater treatment process. The Transmission Hamamatsu Plant 120 102Factory's 100 5,273 96 27 75 has adapted a unique method for reducing sludge weight: After extracting water, the sludge is transferred to special carts 79 for 90 4,800 150.0 3,233 3,315 3,351 3,298 3,103 3,097 additional water removal then loaded into specially designed steel drums for transport the disposal contractor. To make 3,200 to 46 the 50 58 46 61 sludge even lighter, a wastewater treatment facility manager created a special net 49 60 87 1,263 1,145 to extract more1,413 water more1,305 quickly. This idea 25 1,600 1,472 1,370 1,570 1,272 1,316 1,229 30 50.0 100.0 1,385 0 0 time and reducing 7,500 kilograms of sludge annually. ● Reducing use of chemicals 153 157 155 161 000 0 0 2010 2011 2012 2013 2014 (FY) 2009 2010 2011 2012 2013 (年度) VOC emissions per unit of coated automobile ■ 廃棄物等総発生量 ■ 産業廃棄物等発生量原単位指数 body surface area (千t) A major source of VOC emissions from production is the solvents in paints and coatings used in our coating facilities. In fiscal 2014, average per-unit VOC emissions from the automobile coating process was 22.2 g/m , a 29% 2 reduction from fiscal 2011, which was achieved largely through the installation and operation of a cutting-edge coating technology at the Saitama Factory's Yorii Automobile Plant. Compared to the previous coating technology, the Yorii Automobile Plant's new coating materials (electrodeposition, base, solvents) and processing techniques 2) (g/m 250.0 60 (%) 143 150 53.8 102 200.0 150.0 40 33.5 100 31.0 100.0 120 96 27.3 87 24.7 155 161 79 90 22.2 60 20 50.0 0 0 30 196 2000 2001 ~ ~ ~ 〈 VOC emissions 〉 1 2 196 2001 2000 ~~ ~ made it possible to load the sludge directly into the steel drums, which had the double effect the water extraction 677 of shortening 555 551 520 555 590 153 2009 2010 157 2010 2011 2011 2012 000 0 2012 2013 (年度) (FY) 2013 2014 have cut the Saitama Factory's VOC emissions per coated surface area by 46%. We will continue efforts to reduce VOC emissions by improving recovery rates for cleaning thinners, reducing inefficiencies and loss as much as possible, and installing more efficient robotic systems. <Chemical substance reduction – 1> Reducing VOCs from the coating process (g/m2) 60 53.8 ■ Total emissions ■ Per-unit emissions (t) 40 4,000 3,000 20 233 33.5 (%) 31.0 27.3 240 24.7 22.2 180 2,731 Optimizing the cleaning of coating robots: When paint colors are changed, thinner is2,000 used to clean114 out the 100inside of the painting 120 89 83 78 ~ robots. Honda had been using a set amount of thinner for each cleaning, but testing0at the Suzuka Factory revealed that some 1,429 2010 2011 2012 2013 2014 1,000 2001 colors could be effectively cleaned with less thinner. New cleaning methods were implemented using the minimum815 amount of 60 972 864 811 Production released 795 tons of PRTR-listed substances to the atmosphere and hydrosphere in fiscal 2014, an 8% absolute decrease and 22% per-unit decrease from fiscal 2011. The new Yorii Automobile Plant's lower solvent usage and improved processing accuracy were the chief contributors to these reductions, which included a 27-ton reduction in PRTR substances from coating materials. We will continue to actively accumulate and monitor chemical substance control data to continue reducing the environmental impact of our production processes. 2010 2011 2012 2013 2014 0 (FY) Emissions of PRTR-listed substances ■ Total emissions ■ Per-unit emissions (t) (%) 4,000 240 233 3,000 180 2,731 114 2,000 0 100 89 83 78 1,429 1,000 2002 ~ 〈 Release and transfer of PRTR3 substances 〉 ~ ~ thinner necessary, resulting in an estimated reduction of 72 tons—equivalent to 320 steel drums—of thinner used per year. 0 2002 (FY) 795 120 60 972 864 811 815 795 2010 2011 2012 2013 2014 0 (FY) <Chemical substance reduction – 2> PRTR-listed substance reduced by using waste gasoline from exhaust gas testing vehicles Gasoline remaining in the fuel tanks of finished automobiles used for exhaust gas testing cannot be used for subsequent tests, so we had previously disposed of the gas. However, finding a better way to handle the gas has been a major priority in recent years because the waste gas was the source of nearly all PRTR substances monitored by the Quality Assurance Division, which conducts the tests. After verifying the amount and quality of gasoline required for use at our business sites, it was determined that the waste gasoline could be effectively used for on-site vehicles at the neighboring plant. Reusing the waste gas produced savings equivalent to full gas tanks for some 350 Fit vehicles, as well as lowering PRTR substance emissions from the reduction in purchased gas. 1. Volatile Organic Compounds: Organic substances that cause photochemical smog and are commonly used in the solvents of paints and thinners. 2. Calculated using a formula agreed upon by members of the Japan Automobile Manufacturers Association. Inc. ( JAMA). 3. A PRTR (Pollutant Release and Transfer Register) is a national or regional database of information on the environmental release and off-site transfer of potentially hazardous chemical substances from industrial and other facilities. J38 15 ■ 廃棄物等発生量 ■ 廃棄物等発生量原単位指数 15.8 15.2 15.0 ( t 10 ) Products Management 8 domains ENVIRONMENTAL ANNUAL 76 ■ 廃棄物等発生量 ■ 廃棄物等発生量原単位指数 12,000 0 (t) 15,000 9,000 Production 100 11.3 15,000 5 Honda ~ ~ Direction 100 2000 10,765 100 Japan 64 100 60 INDEX > 11,206 10,997 64 62 59 11,206 10,997 10,443 ■ 水資源使用量 ■ 水資源使用量原単位指数 6,000 Energy conservation measures adopted to achieve this target included the installation of additional solar panels, the suspension of power to certain wastewater treatment equipment, energy saved with an ozone treatment system, and the use of specific settings for each HVAC system. Aside from hardware, the company also conducted an energy conservation poster campaign, distributed a computer desktop wallpaper with text reminding associates to save energy, organized energy conservation patrols, and implemented demand suppression controls to ensure ongoing environmental awareness. The company also held a Honda Engineering Green Conference and displayed posters for the Honda Green Conference for the entire Honda Group as an awareness-raising activity. Honda Engineering is currently exploring options for introducing alternative energy technologies. It sent environmental representatives from each department to study examples of energy monitoring and conservation at the electrical appliance facility of another company in order to gather information about new trends in technology. As a resource conservation measure, the company is promoting the effective use of water resources. Honda Engineering achieved a 31% reduction in perunit water use in fiscal 2014 from fiscal 2011, exceeding its 22% target. In fiscal 2014, the company established measures and made daily efforts to reduce the volume of municipal (potable) water purchases. It achieved a reduction through installing more flow restrictors in faucet heads and individual water regulation valves in kitchens. The company also is making progress in water recycling. It completed a sewage recycling system in 2007, and installed an advanced RO membrane2-based wastewater treatment system in 2008, allowing on-site sewage and industrial ~ ~ ~ ~ 2008 1,412 2011(年度) (%) 2009 57 62 2010 75 65 (年度) 2011 83 81 ■ Total CO2 emissions ■ Per-unit CO2 emissions 20,000 0 (t-CO2) 100 2000 25,000 15,000 20,000 10,000 60 19,500 2008 18,500 2009 83 14,000 19,500 15,000 5,000 81 2010 44 60 60 44 14,000 13,800 ■ 廃棄物等発生量 ■ 廃棄物等発生量原単位指数 10,000 0 10,500 2010 2011 2012 2013 ( t ) 2001 100 9,000 6,000 ( ㎥) 90,000 0 ( ㎥) 120,000 60,000 90,000 30,000 100 2000 61,300 100 100 2008 2009 73 57,600 100 41,400 73 60,000 160 20 47,400 82 0 20,000 83 2010 2011 19,500 15,000 10,000 (t) 100 10,500 2,000 5,000 102 2001 1,800 100 2010 1,840 102 2011 2012 2013 1,880 ~ 0 1,800 Sewage 75 1,340 1,840 Industrial water tank ■ Total water use ■ Per-unit water use 1,400 0 90,000 2010 100 2011 100 0 amount of municipal water purchases. 60 40 100 20 80 0 1,790 80 40 60 20 40 0 Reuse (FY) in 2014 (%) 20 equipment 160 Rainwater is drawn from the 0 reservoir and used when or industrial wastewater for 82 73recycling 69 80 2012 2013 102 100 (t) 1,600 materials are separated and then disposed of by sale. As a result, the company 0 80 (FY) 100 60 39,700 40 2014 0 (FY) 100 2,000 1,800 is on scrap metal and paper, but waste oils and resins also are being targeted. These ホンダ 2014 (FY) 57,600 2011 0 (FY) (%) 40 100 Waste generation of these waste liquids increased because the amount of liquid that needed Currently, the company is stepping up efforts to sell waste as a resource. The focus 2010 100 1,790 40 80 ■ Total waste generation ■ Per-unit waste generation soluble and oil-based cutting fluids using concentration equipment, generation requiring some liquids to be processed off-site. 61,300 80 120 (FY) 2012 2013 2014 there is insufficient sewage 47,400 Rainfall on the disaster41,400 prevention 30,000 center roof is sent to reservoir to be processed within a given timeframe was more than originally planned, 100 ■ Total wasterecycling generation ■ Per-unit waste generation 75 Rainwater process 1,880 1,800 0 (t) 160 120 39,700 69 44 ■ Total waste generation 14,000 generation ■ Per-unit waste13,800 14,200 to wastewater treatment facilities, where impurities are removed and it is turned into to reduce oil-bearing industrial waste liquids as well as waste oil from water- 69 2013 60 2014 60 2012 18,500 60,000 in fiscal 2014 from fiscal 2011. Although the company implemented measures 2011(年度) 81 in an industrial water tank with recycled water. The rainwater from this tank is sent Honda Engineering met its target to reduce per-unit waste generation by 3% 120 0 (%) 2010 82 61,300 2 emissions ■ Per-unit CO 2 emissions ■ Total CO 57,600 0 47,400 41,400 2013 2014 2010 2011 2012 (t-CO2) 100 30,000 39,700 25,000 60 40 (%) ■ Total water use ■ Per-unit water use 2011 2013 1,340Store water Remove 2012 in tank impurities ● Zero waste and emissions 11,206 120,000 use Water 3,000 Collect 2010 ( ㎥) 1,200 rainwater 120,000 ~ of municipal water throughout the year, contributing to a further reduction in the 40 0 20 100 12,781 10,765 treatment facilities recycled water. Through this initiative, the company achieved zero supplementation 60 20 2014 (FY) (%) 10,997 ■ Total water use ■ Per-unit water use 10,443 be reused as industrial water. falls on roads on-site and on the roof of the disaster prevention center is now stored ホンダ 80 40 *0.378 t-CO2/MWh was used as a fixed CO2 emissions factor 76 for electricity across all years 0 0 12,000 80 64 2001 2010 2011 592012 62 2013 2014 (FY) Oil 1,600 1,200 separator ~ fectively utilized rainwater to reduce water needs during this season. Rain that 14,200 5,000 15,000 used. Introducing this system has enabled all municipal water used on site to through the use of municipal (potable) water. In fiscal 2014, the company ef- ホンダ 80 0 (%) 60 2011(年度) 100 60 14,200 10,500 18,500 100 25 13,800 1,800 1,400 which could not be met by recycled water alone and required supplementation 50 (%) 2,000 1,600 In previous years, high summer temperatures increased demand for industrial water, 0 (t-CO2) 100 25,000 500 wastewater that was previously treated and discharged to be processed and re3 20 100 1,257 1,217 1,183 2 emissions ■ Per-unit ■1,000 Total CO CO2 emissions 1,116 ~ ~ energy conservation efforts. 40 0 2010 ~ ~ fiscal 2014 from fiscal 2001, far exceeding its 15% target, through a variety of 2000 60 20 2009 77 CO2 emissions 80 40 ~ ~ Honda Engineering achieved a 40% reduction in per-unit CO2 emissions in 0 1,500 2008 ~ ~ ● Energy and resource conservation ~ ~ Honda Engineering Co., Ltd. 0 ( 千㎥)2000 100 3,000 2,000 80 0 (%) 2011 (年度) 2010 10,443 12,781 10,765 (%) 40 20 REPORT 2014 62 59 2009 2008 12,781 76 12,000 6,000 9,000 3,000 60 12.5 100 1,880 1,800 75 1,840 80 60 1,400 40 1,340 1,200 ~ 0 1,790 2010 2011 2012 20 2013 0 2014 (FY) achieved a 100% recycling rate, with 49% being sold for cost recovery. 1. See page J04 to learn more about the Honda Green Conference. Initiatives presented at the 2013 conference are described in detail in the December 24, 2013, article of Environmental TOPICS. http://www.honda.co.jp/environment/topics/topics25.html (in Japanese) 2. Reverse osmosis membrane: a membrane that allows only water to pass through, thereby removing ions, salts, and other impurities 3. Read more about environmental impact reduction efforts in the purchasing domain in Case 28 of "Environmental Documentary—Honda Face." (http://world.honda.com/environment/face) J39 Direction Products Management 8 domains Honda ENVIRONMENTAL ANNUAL REPORT 2014 Japan INDEX > Honda makes continuous efforts to improve the efficiency of transportation in its operations by promoting modal shifts to ship and rail and by increasing Transportation consolidated shipping with other companies. We also are developing environmental management systems jointly with transportation companies and promoting "green logistics" from various approaches, including reducing the amount of packaging materials we use by simplifying packaging, changing packaging materials and specifications, and increasing the use of returnable containers. Discussion Executive officer × Operating manager × Associate Aiming to be an environmental frontrunner in all areas of the supply chain Masahiro Sekiya Products Logistics Division, Supply Chain Management Supervisory Unit Ko Katayama Head of Supply Chain Management Supervisory Unit Hiroyuki Yoshihara General Manager, Supply Chain Management Planning Office, Supply Chain Management Supervisory Unit A year of testing and validating measures for global application In the transportation domain, what are Honda's long-term or constant environmental goals? What efforts were made in fiscal 2014 in pursuit of these goals? ● Katayama: The Supply Chain Management Supervisory Unit, a new organization launched just last year, holds as its core mission to "become an environmental frontrunner in transportation in all areas of the supply chain." Social interest in environmental responsibility has spread to the transportation domain in recent years, so even associates who are involved in the daily movement of goods have a strong awareness of the connection between their work and the environment. For the transportation domain, fiscal 2014 was a year of testing and validating measures we hope to expand globally in line with Honda's corporate agenda of becoming a truly global company. We tested—and got promising results from—a variety of measures, including those aimed at increasing load factors, a measure of how efficiently containers are loaded; and implementing modal shifts from truck to rail or marine transport. J40 Direction Products Management 8 domains Honda ENVIRONMENTAL ANNUAL REPORT 2014 Japan INDEX > Transportation Yoshihara: Other long-term objectives include improving transport efficiency and using less packaging. Objectives like these aren't reached overnight; they require a long period of patient, consistent effort before we start to see some results. We cannot expect immediate game-changing results from any of the tests we did in fiscal 2014, but they do set the foundation for future progress. I must say, though, the rail transport trial for finished automobiles offered some very positive results. Sekiya: Our division manages the transport of finished vehicles, which has always claimed the largest share of CO2 emissions from the transportation domain. Given our understanding of group-level policies and the universal mission of cutting environmental impacts, we knew we had to devise some practical solutions. So as part of our modal shift initiative, we tried switching to rail transport for the shipment of mini-vehicles produced by the Suzuka Factory from Kyoto to Niigata. The results were compelling. Ko Katayama Head of Supply Chain Management Supervisory Unit All solutions worth sharing are born from an honest look at daily operations What will be your policy or course of action at the start of the new mid-term that begins in fiscal 2015? How will front-line associates execute this? Katayama: There's no change to our mission of becoming an environmental frontrunner. That said, we hope to increasingly implement the measures we've been testing on a global scale. However, conditions vary widely around the world, so not all measures can be applied to other regions without modification. We need to dig deeper about finding solutions, which is going to be a big challenge. Yoshihara: It's equally important that we keep making steady reductions in environHiroyuki Yoshihara General Manager, Supply Chain Management Planning Office, Supply Chain Management Supervisory Unit mental impact according to our long-term vision. For example, we have a target to reduce CO2 emissions by 1% each year, but the launch of the Yorii Automobile Plant in 2013 has increased production volumes and trucking distances; a 1% across-theboard cut will be tough given these circumstances, but we want to push forward and hit our target anyway. Sekiya: Based on such guidance from our leaders, as a manager in charge of operations I want to put more ideas into action and start generating tangible results. One plan we have to reduce trucking distance and CO2 emissions is to ship products to the Tohoku area by way of Hachinohe Port, not just Sendai Port. There are cost and delivery hurdles to overcome, but I want to implement this plan soon. Katayama: Such a high level of awareness among our operating staff is reassuring. The next three-year mid-term will be about realizing our vision to be a truly globalized company. We want to be the company that each region needs and wants to exist, and to do that we need to implement reform based on what associates "on the ground" observe in their daily operations. If they can take an honest look at what's happening in their work, identify the problems, and turn those problems into solutions, we'll have something valuable we can share with the world. Let's aim to be an environmental frontrunner as one team, involving associates at all levels of the organization. Masahiro Sekiya Products Logistics Division, Supply Chain Management Supervisory Unit Experimented with rail transport of finished automobiles in FY2014 J41 Direction Products Management 8 domains Honda ENVIRONMENTAL ANNUAL REPORT 2014 Japan INDEX > Transportation ■ Increase transportation efficiency In fiscal 2014, CO2 emissions from the transportation of automobiles, motorcycles, power products, and service parts in Japan totaled 99,228 t-CO2. Japan's revised Energy Conservation Act, which took effect in April 2006, requires companies that ship 30 million ton-kilometers (weight of CO2 emissions from transportation ■ Automobiles ■ Motorcycles ■ Power products ■ Service parts ■ Component parts sets1 ■ Between factories ■ Other ■ Parts picked up by Honda Per-unit CO2 emissions from transportation ■ Finished vehicles plus component parts sets ■ Total of all shipments (t-CO2) (g-CO2/t-km) 100,000 shipments in tons multiplied by distance shipped in kilometers) of cargo or more a year to make efforts to reduce energy consumption in transportation. To fulfill our responsibilities as a high-volume shipper under this regulation, 32,760 80,000 we are working to improve efficiency in the transportation of finished vehicles and equipment, service parts, and parts shipped between factories, 5,424 Many of the parts that make up Honda products are sourced from suppliers. 524 3,587 115 20,609 87 started to introduce a new logistics approach in which Honda trucks travel 572 120 109 17,277 76 106 18,440 79 103 18,180 79 1,637 3,293 1,661 3,792 1,346 3,607 471 3,541 36,605 31,448 30,373 32,454 35,824 2010 2011 2012 2013 2014 (FY) 2,377 3,356 40,000 20,000 4,472 4,311 3,776 4,477 3,540 3,828 111 19,738 82 The conventional method of gathering these parts has been to have each supplier ship its parts to Honda production facilities. In fiscal 2014 we 548 469 4,325 4,093 60,000 and have also started to introduce a new approach for parts delivery. ● Picking up parts from suppliers 160 491 80 40 to suppliers to pick up the parts. This method gives us more control in transportation and has also allowed us to improve transport efficiency. 0 0 ● Initiatives for transport of finished automobiles *The latest CO2 emissions factor based on Japan's Energy Conservation Act was used for calculations each year We continue to drive improvements in average fuel efficiency by Modal shift expansion Rail transport introduction encouraging partner companies that transport finished automobiles to of increased domestic production, contributing to a further reduction in CO2 emissions. We also tried new transportation methods using rail in addition to existing transportation modes (marine/ground). ● Initiatives for transport of finished motorcycles In the transportation of finished motorcycles, we have been working with our logistics partners to reorganize shipping zones and change shipment frequency according to market conditions. The result has been a major improvement in the loading efficiency of each truck and a reduction in total distance traveled. Since November 2008, we have reduced CO2 emissions from truck transport by using the Tokyo and Kobe ports instead of the Nagoya port for imported motorcycles from China, regions. In July 2013 we expanded this method to include motorcycles from Thailand and Vietnam, which shortened trucking distance further, leading to a major reduction in CO2 emissions. ● Initiatives for the transport of service parts 30,000 Ground transport Ground transport 20,600 Sendai Sendai PortPort 10,000 Export/import port 5,000 80 75 Sales company Product management center 5,080 73 4,130 ■ Finished motorcycles 0 2000 2009 Distribution center 100 75 50 Port 46 2,590 2011 2012 2013 (年度) Distribution center 0 Sales company Port 48 47 30 Factory ~ ~ Contract 2010 2011 2012 Rail terminal Import port 2009 Rail terminal factory 2000 Dealer Warehouse 0 25 2,670 Transit terminal External warehouse 50 ■ Power products 25 2010 50 51 Commercial product management center 2,790 Rail terminal Export/ import port 52 Receiving port 3,730 External warehouse 2,500 55 Dispatch port Rail terminal efficiency by revamping distribution between East and West Japan. (%) 100 100 7,500 Factory In fiscal 2015, we will aim to make further improvements in transport 0 of Tested rail for movement 2011 2012 2013 (年度) finished vehicles from Kyoto to Niigata ■ CO2 排出量 ■ CO2 排出量原単位指数 100 Distribution Center to these warehouses. Truck transport 25 Truck 42 transport Niigata sales company Niigata sales company ■ Finished automobiles (t-CO2) 10,000 we previously shipped bumpers fabricated in-house (in Saitama) to the remote warehouses and revising drop-off routes from the Suzuka 47 50 Rail transport 17,300 Rail transport Niigata Station freight terminal Niigata Station freight terminal Transport routes covered by CO2 emissions calculations (%) route. We also reduced the transport distance by consolidating Honda's Kyoto Station freight terminal Kyoto Station freight terminal 18,200 Suzuka Suzuka Factory 44 43 Factory reduce CO2 emissions the effect of reducing the number of truck shipments. For example, while we stopped making the transfer at Tokorozawa and switched to a direct 18,400 0 Hachinohe Port helped Adding 2000 2009 2010 shorten trucking distance and In fiscal 2014, we cut annual CO2 emissions from the transport of service Suzuka Distribution Center by way of Tokorozawa, in September 2013 19,700 49 75 Suzuka Factory Suzuka Factory Truck transport Truck transport Kyoto Station Kyoto Station Marine transport Marine transport 20,000 parts by two percentage points. We did this by revising transport routes and enhancing the loading efficiency of returnable containers, which had (%) 100 100 Factory bringing shipments closer to major markets in the Kanto and Kansai 40,000 Port Port 42,200 ~ we expanded the utilization rate of coastal shipping2 to 69% as a result Niigata Station Niigata Station Hachinohe 排出量原単位指数 ■ CO2 排出量 ■ CO2Hachinohe (t-CO2) ~ practice eco-driving and to switch to new types of trailers. In fiscal 2014, OEM (年度) 2013 Export port 1. Sets of parts exported for final assembly in the product's target market 2. Freighters that carry cargo in Japanese coastal waters ■ 包装資材使用量 ■ 包装資材使用量原単位指数 (t) 40,000 (%) 100 100 75 J42 3,541 3,541 106 103 79 17,277 17,277 79 19,738 3,293 3,607 3,792 18,440 18,180 82 76 76 80 79 79 471 471 1,637 1,346 1,661 80 40,000 3,541 3,541 3,293 3,607 471 471 3,792 1,637 1,346 1,661 20,000 40 3,541 3,541 Honda ENVIRONMENTAL ANNUAL 3,293 30,373 3,607 36,605 35,824REPORT 35,824 2014 31,448 3,792 32,454 32,760 87 2,377 3,356 2,377 3,356 100,000 40,000 Management 8 domains 80,000 20,000 20,000 Transportation 0 60,000 0 0 36,605 491 36,605 5,424 31,448 30,373 31,448 524 3,587 2009 30,373 35,824 32,454 548 35,824 572 35,824INDEX > 40 0 2012 3,776 2013 3,238 572 2013 3,238 (年度) 2010 2011 2012 2013 2010 2011 106 2012 103 2013 (年度) 0 3,540 3,828 111 19,738 20,609 2009 87 160 40 35,824 469 2011 4,325 4,093 2009 115 Japan 32,454 2010 18,440 4,477 18,180 4,311 109 2013 17,277 76 120 0 4,311 109 2013 17,277 (年度) 76 82 CO2 emissions from transportation of service parts 79 79 ● Conserving energy at warehouses At the Suzuka Distribution Center, we reduced total CO2 emissions by one percentage point by instructing workers to use shelf and aisle lighting only when necessary. One project planned for fiscal 2015 is to reduce annual CO2 emissions by 7% by consolidating all of the receipt/delivery 2,377 40,000 ■ Per-unit emissions 471 ■ Total CO3,356 2 emissions 1,637 1,661 CO21,346 (t-CO2) 40,000 3,607 3,541 471 3,541 ■ Total CO2 emissions ■ Per-unit CO2 emissions 100 100 40,000 30,000 20,000 cycle parts and accessories at the Suzuka Distribution Center, planned to 30,000 0 20,000 10,000 20,000 100 20,600 19,700 49 20,600 19,700 47 49 2001 10,000 18,400 18,400 44 2010 20,600 2011 19,700 2012 2009 10,000 0 ■Use less packaging 3,792 2) 42,200 (t-CO ■ Total CO 2 emissions ■ Per-unit CO2 emissions 20,000 40,000 30,000 30,373 32,454 35,824 2) 36,605 42,200 31,448 (t-CO and storage capabilities of the Kameyama Distribution Center for motortake place in September 2014. 3,293 42,200 ~ ~ Products 47 49 47 2011 2010 18,400 44 2012 44 18,200 18,200 43 2013 18,200 43 2013 43 *Marine transport excluded as per the revised 0 17,300 41 2014 41 2001 2010 2011 2012 2013 ■ Total CO 2 emissions ■ Per-unit CO2 emissions 2014 In fiscal 2014, we took steps to reduce packaging weight and expand (t-CO2) 5,000 2,500 0 2,500 0 0 120g/m2 ⇒ 90g/m2 Introduced lighter corrugating medium without sacrificing strength 2001 2001 (%) without exterior returnable containers to automobile production centers in Europe. 3,730 2011 2010 2011 50 25 0 (FY) 25 0 (FY) 0 (FY) (%) 75 100 17,300 (%) 100 50 75 (%) 100 41 51 75 25 50 75 2012 2013 51 2,610 2014 50 0 25 (FY) 50 2,790 2,670 2,610 2,790 2,670 2,610 25 0 (FY) 25 55 2012 2012 52 2013 51 2014 0 (FY) 0 (FY) to2013 reflect 2014 changes in 2013 2014 100 100 50 0 25 25 0 0 (%) 0 5,080 55 50 4,130 46 3,730 50 46 50 2001 2001 2001 2001 75 80 use per unit of component parts set 73 (%) 75 100 5,000100 100 50 75 2,500 75 25 50 (%) 100 100 ~ ~ Asia, and China. We also started supplying, on a trial basis, certain parts 3,730 4,130 2010 75 50 75 2001 2010 2011 adjusted 2012 *Historical figures have been ■ Per-unit CO2 emissions ■ Total CO2 emissions ~ ~ ~ ~ containers in various locations across North America, South America, 2011 data2) collection. (t-CO 10,000 100 7,500 locations in North America and expanded the use of interior returnable 2010 4,130 5,080 2001 Packaging (%) We also expanded the use of exterior returnable containers at certain ~ 170g/m2 ⇒ 150g/m2 Introduced lighter corrugated linerboard without sacrificing strength from warehouses ■ Total CO2 emissions ■ Per-unit CO2 emissions 100 (t-CO2) 20,600 ■ Per-unit ■ Total CO2 emissions 19,700CO2 emissions 18,400 18,200 10,000 20,000 7,500 2) (t-CO 80 100 10,000 73 49 47 100 7,500 44 10,000 5,000 43 55 52 80 5,080 73 7,500 4,130 80 3,730 73 5,000 0 2,500 55 52 2,790 2,670 5,080 ~ board and used thinner polyethylene sheets for wrapping parts. CO2 2emissions (t-CO ) 30,000 10,000 (%) 40 100 75 (%) 100 (%) 100 ■ Per-unit CO2 emissions ■ Total CO100 2 emissions ~ ~ packaging weight, we increased the use of lightweight corrugated liner- 42,200 46 ~ the application of exterior and interior returnable packaging. To reduce 2012 (%) 100 0 50 25 41 (年度) 17,300 2013 ● Initiatives for packaging of component parts sets 40,000 2011 80 17,300 2014 0 2010 35,824 2013 1 2001 ~ ~ Direction 2010 2010 2011 2011 48 2,790 48 48 2012 2012 52 47 2,670 47 47 2013 2013 51 50 30 2,610 25 30 2014 30 0 (FY) 2014 (FY) 2010 2011 2012 2013 2014 (FY) 2010 2011 2012 2013 2014 (FY) 100 100 ■ Total packaging material use material ■ Per-unitused packaging material use Reduction in packaging for component ( t75 ) parts sets2 40,000 (%) 100 50 48 packaging ■ Total packaging material use use 47 material 46 ■ Per-unit Reduction of material 100 Type ( t50 ) ■ Total packaging material use 40,000 30,000 Steel (t) 100 25 40,000 73 In fiscal 2014, we reduced corrugated paperboard use by approximately 10,000 tons compared to fiscal 2009 levels, by applying the improved packaging method, we had developed in fiscal 2013 for bumpers, a part with high demand. With the new method, we switched from wrapping the bumpers in laminated foam sheets and packing them in paperboard to wrapping them only in Miracloth sheets and storing them in returnable containers. In fiscal 2015, we will continue efforts to reduce packaging use by advancing initiatives to develop simpler packaging for large sheet-metal parts and recycle exterior containers used for smaller sheet-metal parts. 19,200 213t 63 paperboard 59 73 53 (%) 100 75 50 47 75 9,000 47 50 47 9,000 2014 25 0 (FY) 25 (FY) 2001 2010by replacing 2011 2012 2013 2014 with 2. Made possible disposable packaging 63 14,100 73 20,000 10,000 returnable packaging. 19,200 20,000 ● Initiatives for packaging of service parts Corrugated 100 ~ ~ New interior returnable containers without need for an exterior container 30,000 20,000 0 30,000 (%) ■ Per-unit packaging material use 30 75 305 t 100 10,000 0 10,000 19,200 14,100 2009 14,100 2010 12,000 63 59 11,400 59 10,100 53 12,000 11,400 53 10,100 12,000 11,400 10,100 2011 2012 2013 0 Packaging material for service 2010used 2011 2012 parts 2013 2009 0 2009 2010 2011 ■ Total packaging material use (t) 40,000 2012 2013 9,000 2014 2014 50 25 0 (FY) 0 (FY) ■ Per-unit packaging material use (%) 100 100 75 30,000 73 20,000 14,100 10,000 0 63 19,200 2009 2010 59 53 12,000 11,400 10,100 2011 2012 2013 50 47 9,000 2014 25 0 (FY) 1. Sets of parts exported for final assembly in the product's target market J43 Direction Products Management 8 domains Honda ENVIRONMENTAL ANNUAL REPORT 2014 Japan INDEX > To promote environmental conservation in sales and Sales and Service services, Honda provides its sales companies with continuous support for implementing Green Dealer initiatives. By taking concrete steps to meet the needs of today, our goal is to cultivate dealerships that demonstrate environmental leadership, bringing enhanced value to the customers and communities they serve. Discussion Executive Officer × Operating Manager × Associate Taking dealer initiatives to the next level in environmental leadership Shigenori Kaneko President, Honda Cars Tokyo-Chuo, INC. Sho Minekawa Chief Operating Officer, Regional Operations (Japan) Tomokazu Abe General Manager, Environmental Promotion Center, Regional Operation Planning Office (Japan) Leadership customers can see In the sales and service domain, what are Honda's long-term or constant environmental goals? What efforts were made in fiscal 2014 in pursuit of these goals? Minekawa: In the sales and service domain, we have always endeavored to support all our dealers—automobiles, motorcycles, and power products alike—to become environmental leaders. Customers' preference for environmentally sustainable products has risen dramatically in recent years, and the environmental performance of our dealerships has become another important determinant of purchasing decisions. That is why we not only need to further cut impacts at dealers but also clearly signal to customers that we are a company that is doing this important work, and that our dealerships are also on board. In that sense, installing solar panels at dealerships sends a clear message to customers, while also providing substantial benefits. J44 Direction Products Management 8 domains Honda ENVIRONMENTAL ANNUAL REPORT 2014 Japan INDEX > Sales and Service Abe: The convenient thing about solar panels is that you can display real-time power generation information on a monitor inside the dealership. We have actually done just that: by the end of fiscal 2014 we finished installing solar panels at 162 outlets nationwide,1 greatly exceeding our target of 100 outlets. We received a very enthusiastic response from dealers wanting to have the panels installed. Dealers must have begun to grasp the importance of communicating environmental efforts to customers, and the effectiveness of solar panels as a tool for doing that. It is another way this initiative is paying us back. Kaneko: At Honda Cars Tokyo-Chuo, we have installed solar panels at 13 locations, and they are certainly grabbing people's attention. Our associates, who interact with customers on a daily basis, are most sensitive to these changes in awareness, and their own awareness has grown remarkably as a result. For example, a good number of associates have voluntarily switched to commuting by bicycle. I think that is a sign that they are not taking action for the environment based on my instruction, but on their own initiative. Sho Minekawa Chief Operating Officer, Regional Operations (Japan) Pursuing operational efficiency leads to reduced environmental impact What will be your policy or course of action at the start of the new mid-term that begins in fiscal 2015? How will front-line associates execute this? Minekawa: This mid-term, Honda launched a new headquarters for Japan Operations and is hoping to grow these operations one size larger, so to speak. In sales and service, this means expanding our sales network and boosting sales volumes. Environmentally speaking, it means increasing the number of green dealers by introducing the next generation of energy-saving solutions to new and existing outlets. Abe: One practical way to do that is to get more information to our dealers so they Tomokazu Abe General Manager, Environmental Promotion Center, Regional Operation Planning Office (Japan) can improve their methods. Through our environmental officers—associates who oversee comprehensive environmental management at dealers—we will actively share best practices related to carbon emissions, water resources, and waste, especially measures presented at the Honda Green Conference. 2 Doing this should enable each dealer to refine its initiatives and execute them more effectively. Kaneko: At Honda Cars Tokyo-Chuo, we have announced an environmental declaration that commits us to reducing CO2 emissions by 3% year over year. It is by no means an easy target, but our associates are very aware of the environment as I said before, and by pooling ideas I think we can cut enough waste to meet it. Minekawa: With Honda aiming for truly globalized operations, I actually think the sales and service division has enormous potential even though it is more rooted in the local situation and culture than other domains. The advanced sales know-how and environmental solutions we develop at dealers in Japan will someday serve as a global model. That is why I think our sales and service staff should approach their work with the self-confidence and awareness that they are truly working at the global forefront of their fields. I think it will be their persistent efforts that carry Honda's sales and service domain to the next level. Shigenori Kaneko President, Honda Cars Tokyo-Chuo, INC. 1. As of March 31, 2014 2. See page J04 to learn more about Honda Green Conference. Initiatives presented at the 2013 conference are described in detail in the December 24, 2013, article of Environmental TOPICS. http://www.honda.co.jp/environment/topics/topics25.html (in Japanese) J45 Direction Products Management 8 domains Honda ENVIRONMENTAL ANNUAL REPORT 2014 Japan INDEX > Sales and Services ■ CO2 emissions reductions at sales companies Honda dealers monitor their CO2 emissions on a per-unit basis. Although total emissions rose in fiscal 2014 due to increased sales activities and the opening of new automobile sales outlets, all motorcycle, automobile, and power product sales companies managed to keep their per-unit CO2 emissions below fiscal 2011 levels. Motorcycle, automobile, and power product dealerships are implementing Honda Green Action Programs to promote environmental action on 1 an individual level. Associates share with customers the eco-driving techniques and other forms of eco-etiquette they practice themselves, while workplace efforts to reduce CO2 emissions are awarded at a triennial domain conference2 to promote the spread and adoption of best practices. ● Initiatives by motorcycle sales companies The Japanese motorcycle wholesaler Honda Motorcycle Japan Co., Ltd. (5 CO2 emissions from sales companies ■ Total CO2 emissions Per-unit CO2 emissions ■ Motorcycle ■ Automobile ■ Power Product (t-co2) 80,000 60,000 120 106 101 99 100 100 91 90 87 40,000 ~ ~ 0 84 83 83 87 82 83 69,000 69,800 62,900 66,300 67,700 2010 2011 2012 2013 2014 80 ~ ~ 0 (FY) *0.378 t-CO2/MWh was used as a fixed CO2 emissions factor for electricity across all years *Historical figures have been adjusted to reflect a change in the scope of data. Initiatives by motorcycle sales companies outlets) and seven consolidated motorcycle sales companies (55 outlets) made efforts to maintain environmental awareness through continued participation in the Environmental Etiquette program3 and through quarterly self-assessments conducted at their respective outlets. In addition, an environmental slogan component was added to the environmental poster design contest started in fiscal 2012 and was conducted with consolidated motorcycle sales companies to raise awareness among staff. The 20 motorcycle sales outlets that introduced power demand systems during the previous year worked to conserve energy by raising awareness and calling on staff to save electricity. The companies are also reducing Switched to LED lighting at dealerships their environmental impact by installing LED lighting at new outlets, among other actions. Initiatives by automobile sales companies ● Initiatives by automobile sales companies All dealers participate every year in the Environmental Etiquette program, and realize further reductions in CO2 emissions through staff education. Awareness was raised further in fiscal 2014 through the soliciting of poster designs and slogans on the areas for improvement identified in the environmental etiquette survey, and through the display of outstanding submissions on company walls. To further reduce CO2 emissions 2013 Environmental Etiquette Poster Contest: Winning Designs from automobile sales companies in Japan, we set a target to install one megawatt of photovoltaic generation capacity distributed across 100 dealers nationwide. By the end of fiscal 2014, we completed the installation of 1.8 MW at 162 dealers (1.3 MW at 119 dealers in the previous fiscal year), exceeding our initial target. A history of power generation performance at Honda dealers is available on the Honda website (in Japanese).4 ● Initiatives by power product sales companies Two consolidated power product sales companies are working to reduce CO2 emissions at their eight outlets through further efforts to raise awareness among staff and continued participation in the Environmental Etiquette program. Also, exemplary environmental practices in the service department of individual outlets are shared on an ongoing basis 2013 Environmental Slogan Contest: Winning Slogans 5 areas for improvement in the Environmental Etiquette survey Winning slogans 1. Close laptop screen when away from your desk Stepping out? Close the laptop and use an i-Pad. 2. Switch off mobile-phone chargers when away from your desk for long periods Turn it off. Every time—Let's cut CO2 emissions steadily 3. Use a handkerchief or a towel after washing hands Save resources: Carry your own hand towel everywhere. 4. Turn off desktop devices when leaving work Done for the day? Turn off the lights for a restful evening. 5. Thermostat settings A small change for a bright future among 180 preferred authorized dealers (206 outlets) and 116 service network dealers (131 outlets) to show them ways that they can improve environmental performance. 1. For more information, see page J22 "Environmental Education." 2. An initiative to encourage energy conservation through simple day-to-day actions, 3. See page J04 to learn more about Honda Green Conference. Initiatives presented at the 2013 conference are described in detail in the December 24, 2013, article of Environmental TOPICS. http://www.honda.co.jp/environment/topics/topics25.html (in Japanese) 4. http://www.honda.co.jp/solar-power/ (in Japanese) J46 1,230 1,000 Products Management 8 domains 1,020 1,010 0 2001 2010 2011 2012 Japan 2013 Sales and Services unit CO2 emissions by 20% from the fiscal 2001 base year. It exceeded target achieving a 41% reduction. The company took several steps to accomplish its objective including installing a 27 kW solar panel system and reducing energy used for lighting by redesigning its office lighting systems and making judicious use of fluorescent lights. Centralized air conditioning systems also were installed to save energy through effective temperature control and operation scheduling based on individual office use conditions. ■ Use resources efficiently The company reduced the amount of waste generated per unit in fiscal 2014 to 33% less than the fiscal 2001 level, beating its target of a 25% reduction. The volume of corrugated paperboard waste was lowered by repurposing shipping boxes as containers for multiple small products. Packaging methods for delivery items also were reexamined and simpli- 2,000 2,000 300 1,500 1,500 1,500 200 1,000 1,000 100 1,000 500 0 500 500 0 0 0 72 72 72 1,230 219 1,230 1,230 1,620 1,620 1,620 2001 ~ ~ Honda Access Corporation1 set a target for fiscal 2014 to reduce per- ( tTotal ) 100 2 emissions ■ CO ■ 500 Total CO2 emissions (t-CO 2) 100 ■ Total CO2 emissions 2,000 (t-CO 2) 100 400 430 69 (t-CO2) 100 ~ ~ ~ ~~ ~ ■ Energy conservation ■ Total waste generation CO2 emissions 2010 0 2014 (FY) INDEX > Per-unit waste generation Per-unit CO2 emissions Per-unit CO2 emissions Per-unit CO2 emissions 62 72 72 72 1,250 195 1,250 1,250 2011 ホン ホン ホン 100 (%) 64 64 67 59 59 59 202 1,020 1,020 1,020 59 261 59 59 1,010 1,010 1,010 59 328 59 59 1,010 1,010 1,010 2012 2013 2014 100 (%) 80 (%) 100 100 60 75 75 75 40 50 50 20 50 25 0 25 (FY) 25 0 2001 2010 2011 2012 2013 2014 (FY) 0 0 2001 2010 2011 2012 2013 2014 (FY) 2001 2010 2011 2012 2013 2014 (FY) *0.378 t-CO2/MWh was used as a fixed CO2 emissions factor for electricity across all years ■ Total water use Per-unit water 2 emissions ■(㎥) Total CO100 Per-unit CO2 emissions Waste 97waste 99 ■ Totalgeneration waste generation Per-unit generation 93 20,000) (t-CO 2 ■ Total ( tTotal ) ■ 2,000 ( 500 t) 15,000 (t) 500 500 1,500 400 400 10,000 400 300 1,000 300 5,000 300 200 500 200 200 100 0 100 0 100 0 0 0 ホン 100 88 88Per-unit waste generation (%) 100 generation waste 100 generation Per-unit waste generation waste 100 100 100 75 16,200 100 100 72 72 100 75 80 430 69 1,620 13,500 67 13,100 13,000 59 59 59 64 13,000 64 12,800 62 80 430 69 50 67 64 64 80 62 430 69 1,250 60 1,230 67 64 64 62 50 328 1,020 1,010 1,010 60 261 25 60 328 40 219 328 261 202 195 25 40 261 219 40 202 195 20 219 0 202 195 2009 2001 2001 2001 2001 ~ ~ ~ ~ ~~ ~~ Honda Access Corporation 50 1,010 500 25 Honda ENVIRONMENTAL ANNUAL REPORT 2014 ~ ~ Direction 1,250 2010 2010 2010 2010 2010 2011 2011 2011 2011 2011 2012 2012 2012 2012 2012 2013 2013 2013 2013 2013 2014 2014 2014 2014 2014 (FY) 20 0 20 0 (FY) (FY) 0 0 (FY) (FY) fied, resulting in waste reduction. unit by 5% from fiscal 2009 levels, achieving a 7% reduction through a concerted effort by all associates to conserve water. ■ Improve transportation efficiency The company reduced per-unit CO2 emissions from transportation in fiscal 2014 to 46% less than the fiscal 2010 levels, far surpassing its 4% reduction target. The main factor contributing to the reduction was the leveling of the cargo volume for each week, which raised the loading ■ Total packaging material use Water use 5,000 100 5,000 0 5,000 0 0 0 0 ratio per vehicle by 8% and lowered the number of deliveries by 5% from the previous fiscal year. ■ Reduce the volume of packaging materials The company reduced the volume and weight of packaging materials used in fiscal 2014, partly owing to the introduction of smaller and lighter versions of strong-selling products. One specific step to reduce cardboard volume was the redesign of corrugated paperboard boxes used for trays and mats, which have a high number of unit deliveries, by making larger see-through sections. Per-unit packaging material use 100 95 waste generation Per-unit waste generation water use Per-unit water 89 water use Per-unit water 100 100 988 use Per-unit water97 99 water 93 70 866 20,000 (㎥) 100 88 88 799 97 99 750 (㎥) 100 93 99 20,000 97 59 88 88 93 400 20,000 430 69 88 88 67 64 74664 62 15,000 16,200 500 15,000 16,200 300 743 15,000 16,200 13,500 13,100 13,000 13,000 12,800 328 10,000 13,500 13,100 13,000 13,000 261 12,800 200 13,500 13,100 13,000 219 13,000 12,800 10,000 250 202 195 10,000 (t) ■ Total ■ Total 1,000 ( tTotal ) ■ ■(㎥) Total 500 2010 2001 2009 2009 2009 ~ ~ In fiscal 2014, the company also met its objective to reduce water use per 2011 2010 2010 2010 2010 2012 2013 2011 2012 2012 2013 2013 2011 2011 2012 2013 2011 2012 2013 2014 2014 2014 2014 2014 100 100 100 75 100 80 100 75 50 75 60 75 50 40 50 25 50 25 20 25 0 25 0 (FY) 0 (FY) (FY) 0 0 (FY) (FY) CO2 emissions from transportation ■ Total CO2 emissions Per-unit CO2 emissions ■ Total packaging material use Per-unit packaging material use use 100 use ■ Total (t-CO 2) water 100use Per-unit water ■ Total packaging material material 89 use Per-unit packaging 2,000 100 ( t ) packaging (㎥) 100 ■ Total material material 95 use Per-unit 99 97 packaging 93 89 100 (t) 1,000 20,000 88 88 75 95 1,850 100 (t) 89 95 1,000 1,500 1,660 988 61 89 1,560 1,000 70 866 988 15,000 16,200 54 1,380 799 750 70 988 866 59 70 1,000 799 750 866 1,460 13,500 13,100 13,000 12,800 59 79913,000 746 750 10,000 59 500 746 743 746 500 500 743 500 5,000 743 250 0 250 0 250 100 100 75 100 75 75 50 75 75 50 50 25 50 50 25 25 0 25 2010 2011 2012 2013 2014 (FY) 0 25 2009 2010 2011 2012 2013 2014 (FY) 0 *CO2 emission factors based on Japan's Revised Energy 0 (FY) 2010 2011 2012 2013 2014 0 0 Conservation Act 0 0 2010 2011 2012 2013 2014 (FY) 2010 2011 2012 2013 2014 (FY) Packaging material used ■ CO2 排出量 ■ CO2 排出量原単位指数 (万t-CO ■ Total2) packaging material use Per-unit packaging material(%) use 30 120 2 emissions ■(Total Per-unit CO2 emissions 100 t ) CO 104 100 100 500 0 500 0 0 0 2000 ~ ~ See-through packaging for luggage trays Redesigned box specifications vastly reduced packaging material volume and lowered the use of corrugated paperboard by 30% 95 2 emissions ■ Total CO2 emissions Per-unit 89 CO (t-CO 1,000 2) 90 25 2 emissions ■ Total CO100 Per-unit CO2 emissions 89 2,000 81 (t-CO 2) 100 988 78 (t-CO2) 100 89 70 2,000 20 866 75 1,850 89 2,000 799 750 59 1,500 1,660 75 1,850 61 1,560 15 75 1,850 15.8 1,500 746 1,660 15.0 1,560 54 1,38015.2 61 1,500 1,660 61 1,560 500 13.9 12.5 54 10 1,380 743 1,000 11.3 1,460 54 1,380 1,000 1,460 5 1,000 1,460 250 500 2010 2010 2010 2010 2008 2011 2011 2011 2011 2009 2010 2012 2012 2012 2012 1. Honda Access Corporation comprises the Niiza head office, Tochigi R&D Center, and Hidaka Office (three offices). The Tochigi R&D Center's environmental performance results are included with those of the Automobile R&D Center (Tochigi), Honda R&D Co., Ltd. and therefore are not ■ 水資源使用量 ■ included in the Honda Access Corporation figures. The environmental figures reported here represent the Niiza head office and水資源使用量原単位指数 the Hidaka Office, the company's distribution center. ( 千㎥) 0 2014 (FY) 0 2014 (FY) 0 2014 (FY) 2014 (FY) 2 排出量 ■ CO2 排出量原単位指数 ■ ■ CO Total CO2 emissions Per-unit CO2 emissions 1,500 ■ CO22排出量 ■ CO2 排出量原単位指数 (万t-CO ) (t-CO 2 排出量 ■ ■ CO 2) 100 CO2 排出量原単位指数 (万t-CO 30 2) 89 2,000 2) (万t-CO 104 1,200 100 100 30 25 0 25 2012 (年度) 2011 2013 2013 2013 2013 本田 100 100 100 100 80 100 75 75 60 75 75 50 40 50 50 20 50 25 (%) 150 (%) (%) 120 100 (%) 120 120 J47 本田 本田 Direction Products Management 8 domains Honda ENVIRONMENTAL ANNUAL REPORT 2014 Japan INDEX > Even before the introduction of Japan's Law on the Recycling of End-of-Life Vehicles (the ELV Recycling Law) Product Recycling (3Rs) in 2005, Honda was putting the 3Rs (reduce, reuse, and recycle) into practice for product materials. We were the first Japanese automaker to sell recycled parts and to collect and recycle parts such as oil filters and bumpers, activities we have continued to this day. We are now developing equipment for efficiently and safely disassembling used parts and products to support proper disposal and material recycling, and actively working to build networks to promote reuse and recycling. Discussion Executive Officer × Operating Manager × Associate Moving Japan to the global forefront of recycling innovation Shu Takiguchi Spare Parts Division Sho Minekawa Chief Operating Officer, Regional Operations (Japan) Wataru Karo General Manager, Spare Parts Division Recent achievements in battery recycling In the product recycling (3Rs) domain, what are Honda's long-term or constant environmental goals? What efforts were made in fiscal 2014 in pursuit of these goals? Minekawa: Our basic objective when working with the flow of materials, parts, products, waste, and so forth in the 3Rs domain is this: Let's think more about how we can close the loop and create cyclical systems that generate zero waste. Using resources effectively and recycling them for reuse is going to become increasingly important worldwide. Our product recycling operations in Japan need to continue to test new ideas, accumulate knowledge, and develop best practices that we can share with the world. This is true of all domains, but the 3Rs domain in Japan has a particularly important role to play in leading Honda's global operations. J48 Direction Products Management 8 domains Honda ENVIRONMENTAL ANNUAL REPORT 2014 Japan INDEX > Product Recycling (3Rs) Karo: We started showing that leadership in fiscal 2014, when we developed a scheme to recycle used nickel-metal hydride (NiMH) batteries from hybrid cars, with technical support from Japan Metals & Chemicals Co., Ltd. The previous year we had created a system, based on our own recycling technologies, to extract rare earths from used batteries and reuse them; our work in fiscal 2014 took that a step farther and resulted in a system to reuse peripheral components as well as rare earths. In other words, we now have a system to recycle everything in NiMH batteries that can possibly be reused. I think this has been our greatest accomplishment so far in the 3Rs domain. Takiguchi: I got involved in that project because I asked to be part of creating such a system. Being a member of the team allowed me to use my prior experience in engineering after-sales parts in the creation of a parts-to-parts recycling scheme for NiMH batteries; I also learned a lot along the way. I'm proud to have been able to contribute to something so significant in Honda's recycling operations. Sho Minekawa Chief Operating Officer, Regional Operations (Japan) Taking on new challenges with pioneering determination What will be your policy or course of action at the start of the new mid-term that begins in fiscal 2015? How will front-line associates execute this? Minekawa: Now that we've completed the recycling scheme for NiMH batteries, our next big project is lithium-ion (Li-ion) batteries. The number of hybrid vehicles equipped with Li-ion batteries is growing rapidly, so we need to have a system in place to recycle them. Finding an answer to this problem is not just a goal, it's also our responsibility as a mobility product manufacturer, and the entire automotive industry needs to come up with a viable answer. Karo: Our social obligation as a manufacturer is not only to recycle Li-ion batteries Wataru Karo General Manager, Spare Parts Division but also to provide after-sales service from a safety perspective. Collection is the very first step in the recycling process. We have the experience, know-how, and network from our established business in remanufacturing automatic transmission parts, so if we put those to good use I think we can build an efficient system for collecting Li-ion batteries. Takiguchi: The Spare Parts Division I'm a part of is working on the Triple Zero concept to reduce all environmental impacts down to zero. Associates in the division keep this concept in the back of their minds at all times, and are always looking for and collecting useful information. As for me, I'm excited to put the experience and knowledge I acquired from NiMH battery recycling to use in my future work. Minekawa: The many years we've put into reducing impacts from Honda's operations, such as CO2 emissions, are gradually starting to deliver results. The world, however, expects even more from us. We should appreciate this fact and let it drive us to accomplish more in the 3Rs domain. Working together, let's have the determination to put Japan at the global forefront of innovation and contribute to the cre- Shu Takiguchi Spare Parts Division ation of a waste-free society. In FY2014, helped build a NiMH battery recycling system and presented the achievements at the Honda Green Conference1 1. See page J04 to learn more about the Honda Green Conference. Initiatives presented at the 2013 conference are described in detail in the December 24, 2013, article of Environmental TOPICS. http://www.honda.co.jp/environment/topics/topics25.html (in Japanese) J49 Direction Products Management 8 domains Honda ENVIRONMENTAL ANNUAL REPORT 2014 Japan INDEX > Product Recycling (3Rs) ■ 3R initiatives in product development Short-pitch spot welding adopted in the N-WGN ● 3R pre-assessment system Honda's efforts to reduce, reuse, and recycle (the 3Rs) begin at the R&D Conventional welding Short-pitch spot welding Conventional pitch Continuous welding stage with measures that include making products lighter and more compact, extending their service life, standardizing components, improving ease of maintenance and fluid replacement, using recycled materials, minimizing use of environmental pollutants, and labeling products to indicate the types of resin and rubber used. We evaluate performance based on a 3R pre-assessment system for each new model being developed, and are constantly working to improve the system. Our motorcycles have been assessed under this system since 1992, our automobiles since 2001. ● Reducing by design Short-pitch spot welding: Achieved weight reduction by reducing steel thickness through improved total efficiency in the tailgate section We have made considerable efforts to reduce the size and weight of our products through innovative use of designs and materials for all parts, including body structures, engines, and even individual screws. For example, we reduced weight in the N-WGN mini-vehicle introduced in 2013 by adopting the high-efficiency next generation body structure with inner frame developed for the N-BOX and the N-ONE, light-weight outer body panels made from material with a tensile strength of 340 Pa, and high-efficiency short-pitch spot welding. These technologies cut weight by 15% compared to vehicles using conventional methods. For motorcycles equipped with the eSP global engine for next-generation compact scooters, we worked to increase the sharing of core parts between engine models and use of the same gigs and other equipment for their production. These efforts led to more energy and resource-effi- eSP next-generation engine for small scooters, which reduces the use of consumables cient production, and will make it easier to disassemble these motorcyAutomobiles At least 90% N-WGN ● Glove box ● Sun visor ● HVAC duct Motorcycles At least 95% NC750X ● Rear fender ● Battery box Power Products At least 95% HSL2511 ● Fan cover ● Fuel tank ● Rubber track ● Reusing and recycling by design We strive to improve the reusability and recyclability of product parts by making special considerations during structural design, using recycled resins and materials that are easy to recycle, and labeling resin and rubber parts to indicate the types of materials used. In the N-WGN, for example, we used easy-to-recycle materials in the 1 Major parts Recycling rate cles when they reach the recycling stage. bumper face and other exterior and interior components. We also use recycled materials for sound absorbers and label the materials on rubber parts wherever possible. All of these decisions help create a product conducive to recycling. In fiscal 2014, we achieved at least 90% recyclability for all new and redesigned automobile models and at least 95% for motorcycles, according to the definitions and calculation methods of the Japan Automobile Man- Voluntary reduction targets proposed by JAMA (for new models) Target substance Lead ufacturers Association ( JAMA), and a recoverability rate2 of at least 95% for parts used in power products. ● Reducing chemicals in products Mercury Reduction target Amount used per vehicle Automobiles: One-tenth (compared to 1996)3 Motorcycles: 60 grams or less Complete ban, with exceptions (HID headlamps, navigation LCD panels, etc.) We have been working to reduce levels of lead, mercury, hexavalent Hexavalent chromium Complete ban chromium, and cadmium—four heavy metals that have negative envi- Cadmium Complete ban ronmental and human health impacts—from our products. We also made voluntary efforts to discontinue the use of mercury. In the N-WGN, we used mercury-free HID headlamps and other parts, even though these parts are exempted from JAMA's reduction targets. For all automobile and motorcycle models manufactured in Japan, we have achieved JAMA's voluntary reduction targets. For power products, no specific regulations exist in Japan, but we have been making efforts to comply with JAMA's voluntary targets and working to reduce chemicals in all models produced in Japan. N-WGN HID headlamp 1. Thermo-plastics such as polypropylene and polyethylene. 2. The recoverability rate includes both the recyclability rate and the thermal energy recovery rate. It is based on the calculation method stipulated in ISO 22628 for automotive recyclability rates 3. Baseline for reduction is based on typical amount used per vehicle in 1996 (1,850 grams). One-tenth is equal to 185 grams. J50 Direction Products Management 8 domains Honda ENVIRONMENTAL ANNUAL REPORT 2014 Japan INDEX > Product Recycling (3Rs) ■ 3R initiatives for parts Recycling process for used bumpers ●Recycling used parts We collect used parts from our repair and replacement services at Honda dealers in Japan for recycling. In fiscal 2014, we collected and recycled about 290,000 used oil filters and about 210,000 used bumpers. Some of these materials are used in new models; for example, we used resin Crush used bumpers materials recycled from used bumpers in the underbody cover of the new Fit released in September 2013. We also continue to collect and remanufacture used torque converters; in fiscal 2014 we collected and Collect used bumpers remanufactured about 100 converters. We will continue efforts like these to recycle used parts. Turn into resin pellets ● Recycling nickel-metal hydride batteries for hybrid vehicles Since launching the original Insight in 1999, Honda has been voluntarily Use in underbody cover in the new Fit collecting nickel-metal hydride (NiMH) batteries from hybrid vehicles and recycling them as stainless steel material. In April 2012, we began working with Japan Metals & Chemicals Co., Ltd., to extract rare metals and rare earth elements from used NiMH batteries and recycle them.1 In Recycling process for hybrid vehicle NiMH batteries 2013, we worked on a project to reuse components from disassembled NiMH batteries where quality could be assured. And in April 2013, we began producing replacement batteries for the Civic Hybrid made from Dealer Japan Metals & Chemicals Co. Collect used batteries Recycle rare metals and rare earths these reused components. ■ 3R initiatives for end-of-life products ● Automobiles 〈 Initiatives to comply with the ELV Recycling Law 〉 Disposal Use in replacement NiMH batteries Customer Honda Purchase Use in Honda products Reusable components Parts manufacturer Reuse in batteries and other parts Honda makes various efforts to reduce environmental impacts across the life cycles of its automobiles, from development to disposal. Japan's ELV Recycling Law, which came into full force on January 1, 2005, is intended Automobile recycling process flow-chart to protect the environment and promote the effective use of resources Deposit Management Entity through measures that ensure the responsible and efficient recycling of Japan Automobile Recycling (JARC) end-of-life vehicles. Under the law, automakers are responsible for collecting and properly ants, but can damage the ozone layer and contribute to global warming if released into the atmosphere), airbags (explosive and difficult to 1 6 after all reusable materials are extracted). Honda charges recycling fees, Shredder residue Sh re dde r co n t ra ct or 5 Delivery manifest Receipt manifest Delivery manifest Receipt manifest Delivery manifest Receipt manifest Dismantled vehicle Delivery manifest D is ma n tl e r 4 ELV ELV Receipt manifest "A word about recycling fees" http://www.honda.co.jp/auto-recycle/recycle_03.html (in Japanese) ELV c o l l e ct o r "Initiatives for three recycled items" http://www.honda.co.jp/auto-recycle/recycle_02.html (in Japanese) 3 Fluorocarbon recovery contractor 2 Payment information, please visit our website. Japan Automobile Recycling Center (JARC) Air bag sufficiently offset the costs of proper processing and recycling. For more Payment Fluorocarbons ELV which are set as low as possible for the customer, but high enough to Designated resource recycling organization Automaker Importer Owner handle), and automobile shredder residue (ASR; material that remains Payment Receipt manifest (3 items) Recycling fee disposing of fluorocarbons (which are used as air conditioner refriger- Information management center Japan Automobile Recycling Center (JARC) Material flow Information flow Money flow 1. Read more about our battery recycling initiatives in Case 17 of "Environmental Documentary—Honda Face." (http://world.honda.com/environment/face/) J51 Direction Products Management 8 domains Honda ENVIRONMENTAL ANNUAL REPORT 2014 Japan INDEX > Product Recycling (3Rs) 〈 Complying with the ELV Recycling Law 〉 In fiscal 2014 we recovered fluorocarbons from about 440,000 vehicles (up 7% from the previous year), air bags from about 380,000 vehicles (up 9%), and automobile shredder residue (ASR), which is generated in the final process of automobile recycling, from about 490,000 end-of-life ve- FY2014 recycling results Fluorocarbons (85%) and ASR (70% in fiscal 2016), recycling 93.9% and 96.0% of these materials, respectively. 141,343 units from 39,984 vehicles Automobile On October 1, 2004, working in partnership with other motorcycle 廃棄物 ASR that would have been shredder 4,9581% t from 25,877 vehicles generated had residue 金属材料として full recycling not 再利用been done 29% Recycling rate 96.0% (legal minimum for FY2016 is 70%) Total recycling deposits received 部品を洗浄し 5,346,414,558 yen 再利用 4,583,170,175 yen 70% Total recycling costs 〈 Voluntary initiatives to recycle motorcycles 〉 93.9% (legal minimum is 85%) Volume received 89,391 t from 464,687 vehicles (ASR) ● Motorcycles 1,104,360 units from 316,431 vehicles Recycling rate Recycling all of these items cost 4.58 billion yen, and recycling deposits received to process them was 5.35 billion yen in total. 121,128 kg from 437,462 vehicles Recovered Airbags Recovered after deployment (gas generators) hicles (up 4%). We met regulatory requirements for the recycling rates of gas generators Amount recovered See the webpage below for a more detailed breakdown of recycling in FY2014 (in Japanese) http://www.honda.co.jp/auto-recycle/recycle_06_2013.html manufacturers and motorcycle importers in Japan, Honda launched a voluntary motorcycle recycling initiative that continues to this day. With support from sales companies and other entities, our goal was to create Motorcycle recycling process flow-chart a backup recycling system for the proper disposal of end-of-life motorcy- Customer Motorcycle owner, or person authorized by owner for motorcycle disposal/recycling cles—the world's first voluntary effort of its kind in the motorcycle industry. In this system, end-of-life motorcycles are accepted by dealers and certified collection centers free of charge for proper handling at recycling facilities. We are monitoring the material recycling routes we established Motorcycle with NO recycling sticker in fiscal 2009 for certain resins and aluminum from engines. We have also introduced an information system for confirming the sta- End-of-life motorcycle tus of motorcycles that are submitted for recycle processing. The Japan Owner completes paperwork to dispose of motorcycle Automobile Recycling Promotion Center publishes a control number for 1 each motorcycle, as well as data provided by the companies and facilities Dealer accepts motorcycle that collect, transport, and recycle the motorcycles. In fiscal 2014, we achieved a 95% recycling rate—our fiscal 2016 target— bile shredder residues as fuel (thermal recycling) at major disposal and recycling facilities. 〈 Results of voluntary recycling initiatives in FY2014〉 The price tags of all Honda motorcycles sold in Japan includes the cost of recycling, and all motorcycles are labeled with a sticker to indicate that no recycling fees will be assessed at the time of drop-off. Even motorcycles sold before the start of this system and lacking the recycling sticker are accepted free of charge. Of the end-of-life motorcycles accepted at certified collection centers in fiscal 2014, a total of 3,912, or 54.6%, were Honda products. One of our largest clients started using this system in fiscal 2014, which contributed to a significant increase in the number of End-of-life motorcycle Work subcontracted/oversight by Japanese motorcycle manufacturer/importer two years ahead of schedule, as a result of promoting the use of automo- Motorcycle WITH recycling sticker Certified collection center Rec ycling facilities Preliminary disassembly (removal of batteries, oil, etc.) Shredding, sorting Wa s t e Recycled materials Proper disposal Reused as raw materials (e.g., steel, aluminum) end-of-life motorcycles recycled. The recycling rate for Honda products in fiscal 2014, calculated from the actual amount of each type of material recovered at 14 recycling facilities, was 96.5 % by weight, an increase of 4.2 percentage points from the previous year. 1. http://www.jarc.or.jp/en/motorcycle/ J52 Direction Products Management 8 domains Honda ENVIRONMENTAL ANNUAL REPORT 2014 Japan INDEX > Honda is working to reduce the environmental impacts of its business support operations. We try to Administration consider the environment in all business activities, to operate environmentally responsible "green offices," and to constantly improve our environmental performance. Our hope is that these efforts also will have an indirect positive impact on the environment by encouraging our customers, suppliers, and business partners to take similar action. Discussion Executive Officer × Operating Manager × Associate Honda's "green offices" : Comfortable workplaces, reduced environmental impacts Mizuho Ogane Twin Ring Motegi, Mobilityland Corporation Masahiro Yoshida Chief Operating Officer, Business Support Operations Takao Aoki General Manager, Administration Division Learning from each other across business sectors In the administration domain, what are Honda's long-term or constant environmental goals? What efforts were made in fiscal 2014 in pursuit of these goals? Yoshida: The administration domain encompasses a wide range of operations at Honda, from nine office buildings in Japan, including the Aoyama head office building, to 13 group companies involved in services and manufacturing functions, as well as the Honda Technical College, a vocational school. The mindset we all strongly share when engaged in environmental initiatives is that we can learn from each other. Most initiatives in the administration domain are aimed at raising associates' awareness to make small, day-to-day improvements in energy use. But it is difficult to continually come up with new ideas. That is why the annual administration domain Honda Green Conference1 is an important opportunity to share and learn new solutions. Gathering people from diverse backgrounds allows us to make discoveries and learn from each other. 1. See page J04 to learn more about Honda Green Conference. Initiatives presented at the 2013 conference are described in detail in the December 24, 2013, article of Environmental TOPICS. http://www.honda.co.jp/environment/topics/topics25.html (in Japanese) J53 Direction Products Management 8 domains Honda ENVIRONMENTAL ANNUAL REPORT 2014 Japan INDEX > Administration Aoki: In one initiative in fiscal 2014, we made advances in monitoring and displaying environmental impact data at the Aoyama head office building. Electronic monitors on each floor now display—and update hourly—data showing each floor's CO2 emissions, copier paper use, and waste. This is data that, until last fiscal year, we were posting in printed form. The impact is big because it shows the performance of all departments simultaneously, in real time. I am sure this has helped associates become more aware of their own environmental impacts. Ogane: At Twin Ring Motegi, we switched the lighting in facilities that consume a lot of electricity to LEDs, and also made an effort to reduce peak electricity consumption during events. We presented these efforts at the 2013 Honda Green Conference Yoshida mentioned earlier. There is a big benefit to introducing new equipment, but to make facilities more energy-efficient overall, I believe that associates' awareness and their dayto-day behavior is even more crucial. It was at the Green Conference that I learned useful ways to raise awareness on a continuous basis, so it is really true that the conference is a valuable forum for sharing information and finding ideas and solutions you have not thought of on your own. Masahiro Yoshida Chief Operating Officer, Business Support Operations Sustaining progress by enhancing workplace comfort What will be your policy or course of action at the start of the new mid-term that begins in fiscal 2015? How will front-line associates execute this? Yoshida: Thanks to the help we received from associates, we met all of our targets for CO2 emissions, water consumption, and other environmental impacts during the three-year mid-term. To further reduce impacts in the future, I think we will need to take actions that do not force our associates to forgo comfort. Energysaving initiatives will not last if workplaces are difficult to work in; and they need to be something that continues year after year. My idea of a green office is one that reduces environmental impacts and achieves a high level of workplace comfort at the same time. Takao Aoki General Manager, Administration Division Aoki: I think we need to come up with new ways of working to realize the green offices you're envisioning. For example, the Honda head office buildings introduced a "zero cabinet" policy in fiscal 2014, aiming to eliminate storage cabinets, which had taken up the equivalent of one floor of the building. By digitizing documents, we were able to completely eliminate cabinets on some floors, which opened up more workspace and improved HVAC efficiency. Since this also reduced the amount of paper stored, we can expect there to be a dramatic drop in the amount of paper consumed and disposed. By advancing efforts like this one, we can reduce our environmental impacts without sacrificing a comfortable workplace. Ogane: Twin Ring Motegi operates in the service industry, so when we talk about saving energy, we have to consider not only how to create a comfortable workplace, but also how to satisfy customers. From fiscal 2015 onward, I'd like to put more effort into initiatives that balance all three of these aspects. Yoshida: With initiatives in the administration domain, it all comes down to individual awareness and behavior and making a sustained effort. By putting our Mizuho Ogane Twin Ring Motegi, Mobilityland Corporation minds together and making steady efforts to save energy, I think we can realize Involved in energy conservation initiatives at Twin Ring Motegi. As representative of Business Support Operations, won an Award for Energy Innovation at the 2013 Honda leadership. And by sharing these solutions, I also hope we can contribute to more the green offices we envision and put Japan in a position of global environmental green offices around the world. Green Conference. J54 Direction Products Management 8 domains Honda ENVIRONMENTAL ANNUAL REPORT 2014 Japan INDEX > Administration ■ Administration activities Note: Fiscal 2014 data includes all nine office buildings All Honda office buildings and other business sites of the 14 Honda (Aoyama, Wako, Shirako, Yaesu, Sapporo, Sendai, Nagoya, Group companies in Japan work together to advance environmental of 13 consolidated group companies and one educational Osaka, Fukuoka) of Honda Motor Co., Ltd., and all facilities conservation. Group companies can be divided into three functional institution in Japan: Mobilityland Corporation, Honda Kai- areas, with initiatives conducted in each area: administration, which Honda Airways Co., Ltd., Honda Trading Corporation, Honda hatsu Co. Ltd., Honda Sun Co., Ltd., Honda Commtec Inc., includes head office buildings; services, such as racetracks and driving Finance Co., Ltd., Rainbow Motor School Co., Ltd., Kibonosa- schools; and production, which includes aluminum smelting and parts Creates, Japan Race Promotion Inc., and Honda Technical to Honda Co., Ltd., Honda R&D Sun Co., Ltd., Circuit Service College. manufacturing. ● Business Support Operations Green Conference On September 24 and 25, 2013, Business Support Operations held Participants gather in the courtyard of Honda Sun Co., Ltd., host of the Business Support Operations Green Conference in FY2014 its own Green Conference at Honda Sun Co., Ltd., in Oita Prefecture to present recent environmental conservation activities of its group companies. Honda Sun and the adjacent Honda R&D Sun Co., Ltd., which designs assembly lines for workers with disabilities, held facility Associates from Mobilityland Corporation's Twin Ring Motegi, which won the Best Initiative Award at the Business Support Operations Green Conference and an Award for Energy Innovation at the company-wide Honda Green Conference tours to share their practices with other group companies. Mobilityland Corporation's efforts at the Twin Ring Motegi speedway won the Best Initiative Award. The company also won the Award for Energy Innovation at the company-wide, triennial Honda Green Conference, held at Twin Ring Motegi in December 2013.1 ● Honda head office ISO 14001 certification T h ro u g h co n t i n u o u s i m p rove m e n t a n d e f fe c t i ve o p e ra t i o n o f Upgraded Smart-Eco monitor enviro nm ental managem ent system s, as well a s by p ro m o t i n g environmental initiatives, we nearly achieved our target for the reduction of environmental impacts at Honda head office buildings and district buildings2 in fiscal 2014. At the Aoyama Building, the Smart-Eco monitor which shows environmental impacts on each floor, was upgraded to display hourly electricity use, monthly paper use by copiers and waste generation, to focus associates' attention on these impacts. Impact data from each floor also was published on the company's intranet to promote analysis and policy improvements on each floor. Monitor shows electricity use and other environmental impacts on each floor Group CO2 emissions ■ Group ( t-CO2) 31,500 30,600 30,000 ● Reducing CO2 emissions In fiscal 2014, CO2 emissions from the administrative operations of group companies in Japan totaled 28,300 tons, an 8% reduction from fiscal 2011. Most CO2 emissions from administrative operations, which comprise over half of the group companies in Japan, are the result of electricity consumption from the use of air conditioning and heating. In addition to promoting the summer Cool-Biz and the winter WarmBiz programs, energy saving measures were taken without affecting operations by adding sensors and automatically turning off lights during lunchtime. Awareness is raised through posters and by posting "save energy" stickers at the entrance of offices at sales companies. ■ Honda 35,000 28,000 28,300 27,300 25,000 20,000 19,700 19,100 11,800 11,500 10,200 10,500 2010 2011 2012 2013 17,100 17,500 17,600 15,000 10,000 5,000 0 10,700 2014 (FY) *Historical figures have been adjusted to reflect a change in the scope of data. *0.378 t-CO2/MWh was used as a fixed CO2 emissions factor for electricity across all years Major initiatives in FY2014 Switched to LED lighting fixtures Honda Wako Building Sw i t c h e d i n d o o r a n d o u t d o o r l i g h t s a n d restroom lighting in Building B to LEDs Honda Shirako Building Continued Honda Green Action activities Honda Trading Corporation Switched lighting of all facilities at the Wako Center to LEDs Rainbow Motor School Co., Ltd. Raising awareness through "save energy" stickers 1. See page J04 to learn more about the Honda Green Conference. Initiatives presented at the 2013 conference are described in detail in the December 24, 2013, article of Environmental TOPICS. http://www.honda.co.jp/environment/topics/topics25.html (in Japanese) 2. Head office buildings (Aoyama, Wako, and Shirako) and district buildings (Sapporo, Sendai, Yaesu, Nagoya, Osaka, and Fukuoka) J55 0 Direction 2009 Products 2010 Management 8 domains 2011 (年度) Honda ENVIRONMENTAL ANNUAL REPORT 2014 Japan INDEX > Administration ■ 水資源使用量 (左軸) 原単位指数 (右軸) (㎥) 150,000 150 〈 Case study: Reducing CO2 emissions at Kibonosato Honda Co., Ltd 〉 112,461 114,698 To improve air conditioning efficiency, plastic 98,797 curtains were installed in 100,000 100 the doorway connecting the102.5 factory to the adjoining building, which is 100 87.4 exposed to outdoor air from the parts storage area. This helped reduce 50,000 50 kerosene use to 0.27 kiloliters below the target from December 2013 to March 2014, while also keeping room temperatures comfortable despite 0 0 Waste generation 1,962 2,000 ■ Honda 1,868 1,821 1,500 1,340 1,280 1,000 ● Reducing waste generation 1,250 1,270 1,200 500 (t-CO2) 40,000 In fiscal 2014, waste generated by the administrative operations of group 33,198 companies in Japan totaled30,318 1,821 tons,28,947 a reduction of 4% from fiscal 2011. 1,898 1,832 2009 the previous 2010 year. Carbon 2011(年度) a colder winter than dioxide emissions totaled 0.67 tons, a reduction of 26% from fiscal 2011. ■ Group (t) 2,500 30,000 0 622 618 582 598 621 2010 2011 2012 2013 2014 (FY) *Historical figures have been adjusted to reflect a change in the At the20,000 Aoyama Building, janitors carried out secondary sorting to improve10,000 the recycling rate, and converting confidential documents, maga- zines, and copier paper into salable material. Offices also implemented a 0 "zero cabinet" initiative to reduce of stored paper documents 2009 2010 the amount 2011 (年度) by converting them to electronic data. This resulted in a one-time increase in paper waste generation, but this initiative will continue in order (t) 1,982 2,000 to make fundamental reductions in waste. scope of data. *FY2014 data excludes a one-time generation of used packing materials (around 770 tons) resulting from the transfer of production activities to the new Yorii Automobile Plant. Group water use 1,641 800 waste generation by recycling used mixed paper. 700 〈 Case study: Reducing copier paper use at Honda Airways Co., Ltd. 〉 500 Honda Airways switched from using books and copied handouts as 0 teaching materials for pilot training to distributing 2009 2010 2011 (年度) the content through tablet devices. This cut annual paper use by a total of 106,000 sheets, or 2,000 sheets per trainee. 500 848 833 749 728 878 731 789 778 300 200 100 112 116 2010 2011 99 105 100 2012 2013 2014 (FY) *Historical figures have been adjusted to reflect an increase in the 840,370.7 ● Reducing water resource use 905 400 0 898,544.5 843 600 1,000 843,116.7 ■ Honda 1,000 1,605 One group company, Honda Trading Corporation, has been reducing (t) 1,000,000 ■ Group (1,000m3) 900 1,500 scope of data 750,000 In fiscal 2014, water resources used by the administrative operations of 500,000 group companies in Japan totaled 878,000m3, a 3% reduction from fiscal 2011. At the Aoyama Building, "save water" stickers were posted in the 250,000 restrooms to raise awareness. 0 2009 2010 2011 (年度) "Save water" stickers put up in restrooms at the Aoyama Building Adoption of low/clean-emission fleet vehicles by major business sites ■ Fuel cell electric ■ Electric ■ Hybrid ■ Natural gas Percentage of government-designated low-emission vehicles1 Percentage of other low-emission/fuel-efficient vehicles Vehicles 500 98.1 97.7 96.9 96.4 98.3 12 (%) 100 Conversion of pilot training materials to electronic form 483 415 12 400 339 12 300 326 0 364 351 12 0 368 13 354 384 438 33 80 19 0 60 ~ ~ 20 200 21.5 100 10 1 0 2010 18.8 17.3 16.8 15.4 1 1 2011 2012 0 2013 0 2014 (FY) 0 Digitizing teaching materials allowed Honda Airways to cut paper use as well as the price of the materials for trainees 1. Non-gasoline vehicles recognized by the Japanese government's green procurement policy J56 Direction Products Management 8 domains Honda ENVIRONMENTAL ANNUAL REPORT 2014 Japan INDEX > On April 1, 2012, Honda launched a new IT Operations. The move marks a shift from the independent operation of Group companies' IT assets toward worldwide integration and stan- IT dardization, and the creation of an IT system that better supports our global business. Such a system will allow us to operate our growing business more quickly and securely based on the latest data and information. It also will create opportunities to reduce environmental impacts from our activities, as well as to enhance the energy efficiency of the systems themselves through data center consolidation, cooling efficiency improvement, and other initiatives, in response to the proliferation of IT assets. Discussion Executive Officer × Operating Manager × Associate Transforming Honda operations for greater efficiency and speed Eri Koseki Computer Integrated System Division, Development Promotion Office, Automobile R&D Center, Honda R&D Co., Ltd. Yoshiharu Yamamoto Chief Operating Officer, IT Operations Atsushi Iwamoto General Manager, System Infrastructure Division, IT Operations Leveraging ICT to reduce environmental impacts and advance operational reform In the IT Operations launched in 2012, what are Honda's long-term or constant environmental goals? What efforts were made in fiscal 2014 in pursuit of these goals? Yamamoto: IT Operations' main purpose is to bring information and communications technology (ICT) to bear in operational reform. We help improve efficiency in all Honda activities by integrating the latest ICT into various business operations, such as advancing digital processes used in product development to eliminate the need for physical prototyping, and incorporating video conferencing and other advanced communication tools. These efforts lead to reduced energy consumption and smaller environmental impacts. Another key activity is improving the environmental performance of the ICT systems themselves. We are implementing measures to rebuild our ICT infrastructure, which includes computers, servers, and an array of other devices, for increased efficiency and reduced power consumption. J57 Direction Products Management 8 domains Honda ENVIRONMENTAL ANNUAL REPORT 2014 Japan INDEX > IT Iwamoto: Some of the steps we took to improve ICT efficiency in 2013 were server virtualization and upgrading HVAC systems for server rooms. However, the reduction in CO2 emissions was less than expected because these efforts were offset by the priority placed on shoring up our power infrastructure, such as through backup and emergency power supplies, based on our experience with the 2011 earthquake. We are nearly done strengthening our infrastructure to hedge against risk in emergency situations, and are now able to start concentrating again on efficiency improvement. Koseki: My work focuses on using ICT for operational reform in the design department of the Automobile R&D Center, the hub of automobile product development at Honda. In fiscal 2014, we integrated technology to reduce designers' workload and shorten the man-hours needed to calculate the cost of design components. We also focused on upgrading the several thousand computer-aided design (CAD) tools used by the R&D Center, adding an automatic sleep mode for periods of inactivity. This automatic system lets the designers focus on their core tasks and saves energy without creating extra work; it resulted in a reduction of electricity consumption of more than 100 t-CO2e annually. Yoshiharu Yamamoto Chief Operating Officer, IT Operations Operational reform lets us focus on more creative processes What will be your policy or course of action at the start of the new mid-term that begins in fiscal 2015? How will front-line associates execute this? Yamamoto: Honda originally prioritized constructing systems that were specialized and optimized to each operating region or business domain. But to continue growing globally, we now need to construct a system that is optimized for global operations, that forms stronger inter-regional connections, and improves operating efficiency. Achieving this and realizing a truly globalized ICT structure is our objective for the next three years. Iwamoto: We also want to improve the efficiency of our ICT systems on a global Atsushi Iwamoto General Manager, System Infrastructure Division, IT Operations scale. We plan to use what we have learned about ICT infrastructure and minimizing environmental impacts in Japan, such as through our improved HVAC system, to develop systems for other regions and improve ICT efficiency worldwide. We are striving to reduce electricity use per unit of revenue in each region to achieve this goal. Koseki: For ICT-based operational reform to be successful, we first must have a clear understanding of the daily routine at each worksite; only then can we propose ways to enhance operational efficiency. For example, we could build a system that allows designers to easily share the extensive information and knowledge they gain in their work and that would support open discussion to help them quickly identify solutions to the issues they face. Providing a system that helps designers do their jobs faster and better―I think that is what is expected of us in the IT department of the Automobile R&D Center. Yamamoto: ICT has the power to reduce the number of people and hours that are needed to do a given job. Increased business efficiency also improves our environmental performance. The time saved through efficiency can then be used for more creative projects—that is the main objective of the operational reform. To achieve this, associates should first look at the way they are working now and think about Eri Koseki Computer Integrated System Division, Development Promotion Office, Automobile R&D Center, Honda R&D Co., Ltd. Oversees ICT-based operational reform in the design department how to improve it. Our job in IT Operations is to go to each worksite, hear what associates want, and create systems and tools that are truly useful. We want to promote operational reform through collaboration between IT Operations and worksites in all Honda business domains. J58 Direction Products Management 8 domains Honda ENVIRONMENTAL ANNUAL REPORT 2014 Japan INDEX > IT ■ Improve efficiency across all Honda domains Use ICT to improve operational efficiency: after-sales service systems ICT infrastructure Upgrade communications (video/web Adopt appropriate energy-efficient devices at each life-cycle stage Environmental impact reduction R&D, production, distribution, sales, ▶︎ Group-wide efficiency ■ Improve IT environmental performance ▶︎ conferencing, document sharing) and corporate information infrastructure Reduce impacts with ICT Reduce impacts from ICT ・Reduce CO2 emissions ・Save energy ▶︎ Improve efficiency through server virtualization Improve data center cooling efficiency The IT Division is working to reduce Honda's environmental impact from its CO2 emissions and per-system CO2 emissions operating activities by leveraging information and communications technol- (FY2009=100) ogies (ICT), while also reducing impacts from the ICT systems themselves. ■ CO2 emissions ■ Per-system CO2 emissions 100 ■ Energy conservation 100 80 ● Data center consolidation 59 At Honda, we are working to reduce the amount of power used by our 60 data centers. We are also implementing "server virtualization," a method 40 of increasing resource efficiency by combining the functionality of multi- 20 ple servers into one. By reducing the number of physical servers, we were 0 34 able to consolidate our numerous data centers across Japan into two lo- 26 26 23 100 98 93 90 90 98 2009 2010 2011 2012 2013 2014 (FY) cations. Although total electricity use across all data centers has grown, as a result of increasing system functionalities for our growing R&D operations and provide backup capacity for disasters, server virtualization has made it possible to dramatically reduce power consumption per system. ● Improvements in data center cooling efficiency In an effort to operate our servers more efficiently, we implemented a number of measures to increase the cooling efficiency of HVAC systems in our data centers. For example, we introduced an aisle capping system to prevent cool conditioned air from mixing with air warmed by waste heat from the servers. In server rooms where this was implemented, we were able to improve cooling efficiency by reducing the number of HVAC units and increasing the Server virtualization Before A B Device Device E F Device Device After C D Device G H Device Device Each system operates separately A C F H B D E G Virtualization technology Computer device Computer device Computer device Multiple systems operate on one device Creating multiple operating environments in one physical server reduces the number of servers that are needed (conceptual illustration) Aisle capping for improved cooling efficiency Exhaust outlet thermostat temperature, all while maintaining server operating efficiency. Warm air ● Reducing design equipment power consumption Partitions keep cool air inside We are taking steps to control power to computers and devices used by cool air our designers in order to reduce the amount of standby power these devices require when not in use. By developing and installing an appli- Device Servers cation that monitors user habits and the operating conditions of these devices and that switches them to sleep mode in certain situations, we achieved a reduction in the use of standby power. In fiscal 2015, we will continue initiatives like these to reduce electricity Improves cooling efficiency by encapsulating cold air blown in through the floor and preventing it from mixing with warm air expelled at the back of the servers consumption and cut CO2 emissions per system by 10% from fiscal 2014 levels. We also are building a system that will allow us to quickly share what we learn in Japan with overseas business units, and by using this system we will strive to reduce IT system power use on a global scale. Data center room temperature before (left) and after (right) aisle capping J59 Direction Products Management 8 domains Honda ENVIRONMENTAL ANNUAL REPORT 2014 Japan Philanthropic Environmental Initiatives INDEX > Honda environmental conservation initiatives are based on a global perspective but carried out with the goal of building constructive relationships between our operations and the communities where we do business. As a responsible corporate citizen, we try to anticipate our neighbors' needs and carry out activities at the local level, to share positive experiences with communities, and to pass on something valuable to future generations. For more information please visit: http://world.honda.com/community/ ■ Beach clean-up efforts To pass on a beautiful natural environment to future generations, Honda has been carrying out environmental conservation activities worldwide. One such activity is a Honda beach clean-up initiative1 in Japan made Honda beach clean-ups held in FY2014 possible by Honda technologies and volunteers. Honda Group associates No. of cleanups No. of participants cooperate with regional communities to clean beaches throughout Japan 25 6,100 using a towable beach cleaner. Lightweight, compact, simply designed, and easy to operate, the beach cleaner was developed by Honda with the desire to ensure that future generations can continue to walk barefoot on Japan's beaches. Honda-developed towable Launched in May 2006, the project so far has overseen about 300 cleanup events at more than 100 beaches across Japan. In fiscal 2014, more than 6,000 community residents worked with us at these events. beach cleaner in action June 19, 2013 - Kamoike Beach cleanup in Imabari, Ehime Prefecture Volunteer Honda staff also host environmental studies classes for elementary and junior high schools students in communities that most need them. Picture-card stories are used to communicate to these younger generations the importance of environmental conservation and explain that humans produce enormous amounts of trash every day, how Before After ■ Watershed conservation Normally relatively litter-free, Kamoike Beach was littered with plastic bags and other debris as the result of a typhoon Showing the beachcleaner in an environmental studies class The water we use every day is a gift from the rivers that flow from the Watershed conservation held in FY2014 that trash is washed to sea by rivers, and how it has an adverse effect on marine life. Honda Group associates also joined the local government and residents of a community in Miyagi Prefecture in cleaning up a beach wrecked by the 2011 tsunami to restore it to its former scenic beauty. mountains to the sea. At the sources of these rivers are watershed for- No. of locations No. of events No. of participants ests—forests that, in addition to providing clean water and abundant ma- 6 13 380 rine life, also purify our air. These forests provide other services as well, including helping to prevent disasters by stabilizing the soil. Areas where watershed conservation was held Since the launch of our Community Forest initiative in the 1970s, Honda has been carrying out long-term conservation efforts at eight locations Suzuka Factory Kameyama, Mie Pref. across Japan with the goal of promoting grassroots-level forest conservation. These efforts include not only planting trees but also clearing un- Hamamatsu Factory Hamamatsu, Shizuoka Pref. derbrush and a limited number of trees on a continual basis to promote growth. Tending these watershed forests in this way helps ensure that they continue providing essential water services to the communities sur- Kumamoto Factory Ohzu, Kumamoto Pref. Saitama Factory Akagi Mountain, Gunma Pref. Kosuge, Yamanashi Pref. Minakami, Gunma Pref. Tochigi Factory Ashio, Tochigi Pref. Wako Building Yorii, Saitama Pref. rounding our business sites. ■ Environmental education November 16, 2013 - Forest conservation on Mt. Akagi in Gunma Prefecture Nature Wagon In this visiting environmental studies program, the Honda Step WGN and other vehicles are loaded with natural materials such as wood from forest thinning, river stones, acorns, and leaves and driven to educational centers where they are used to inspire children to have an appreciation for nature. Volunteer associates from Saitama Factory joined forces with Honda retirees to plant deciduous tree saplings and promote the growth of a healthy forest 1. Learn more in Case 29 of "Environmental Documentary—Honda Face." (http://world.honda.com/environment/face/) J60 Direction Products Management 8 domains Honda ENVIRONMENTAL ANNUAL REPORT 2014 Japan Philanthropic Environmental Initiatives INDEX > The program consists of a lecture about the importance of natural 事業所数 systems and environmental conservation, combined with craftwork 5事業所 and other activities. The children engage all five senses as they absorb knowledge about nature and tackle their craft projects. Volunteer Honda retirees tell stories about the environment using the natural materials as Nature Wagon activities in FY2014 props, and also support the children in understanding the value of nature No. of business sites No. of events No. of participants and the need to protect it as they develop an emotional and intellectual 5 215 9,600 connection to the natural materials with which they work. Started in 2000, Nature Wagon has gradually expanded to become a highly popular year-round program. In fiscal 2014, five Honda operating sites held 200 workshops for more than 9,600 children with the help of 2,100 volunteers (repeats counted). Nature Wagon workshops Lecture Every workshop starts with a lecture that uses picture cards and other tools to convey the importance of environmental conservation. Forest Fantasy Workshop Stone painting Natural salt production Natural vegetable dyes Wood, leaves, acorns, and Pictures are painted on Deep-sea water is boiled Camellia flower petals and other materials are used to river stones, bringing their down to make mineral-rich onion skins are used to tie-dye make unique works of art. unique shapes to life. The salt. By learning the salt-mak- fabric. Children learn about The materials teach chil- diverse stones teach chil- ing process, children learn the connection between dren the value of forests. dren the value of rivers. the value of the ocean. nature and human culture. March 10, 2013 Chuo Elementary School in Tokorozawa, Saitama December 17, 2013 Koshi Daiichi Elementary School in Koshi, Kumamoto October 24, 2013 Yamaguchi Elementary School in Tokorozawa, Saitama October 29, 2013 Midorigaoka Elementary School in Utsunomiya, Tochigi ● Remarks from a teacher at Koshi Daiichi Elementary School in Kumamoto, where a stone painting workshop was held I found this program to be very fitting for a company that is always thinking about the environment and developing eco-friendly products. Children rarely pick up stones to make something with them, though they see them everywhere. So this class was a great way for them to experience this natural material close up. I would have thought painting on a round stone is harder than on a flat canvas, but the children seemed to have more fun than usual. The Nature Wagon workshop was also a great opportunity because, being a small school in a rural community, it's hard for us to prepare this much material, and the children don't get to meet working professionals that often. We are very thankful. J61 Direction Products Management 8 domains Honda ENVIRONMENTAL ANNUAL REPORT 2014 Japan Philanthropic Environmental Initiatives INDEX > ■ Cleanup campaigns at Honda sites nationwide Community Topic One community-oriented philanthropic activity in which all Honda business sites engage are "cleanup campaigns," cleanup events held on a regular basis in neighborhoods and public spaces near Honda offices and factories. These programs run the gamut in terms of age and size—from the oldest, a 40-year-old program involving a couple hundred volunteers, mainly associates and their family members, to one involving roughly 80% of associates from Kumamoto Factory, or around 2,000 associates. One of the largest, the Lake Hamana Cleanup Campaign, is a 24,000-person effort hosted by the cities of Hamamatsu and Kosai in conjunction with the Hamamatsu Plant of the Transmission Factory, as well as Honda suppliers, local residents, and employees of other companies. Honda will remain committed to maintaining and cultivating October 26, 2013 - At a Fall Cleanup Campaign at Kumamoto Factory, held as part of a twice-yearly program including fall and spring, around 80% of associates—around 2,000 people—showed up to help. a clean living environment in local communities through these cleanup events. ■ HondaWoods: Vibrant forests for our children, for our communities Community Topic ● Cultivating forests local residents can enjoy Starting in 2014, Honda will start managing the Community Forests under a new policy called the Satoyama Concept. The goal of the Satoyama Concept is to culti● No concrete walls vate forests that are more sustainable, in harmony with In keeping with the ideals of founder Soichiro Honda, local communities, and resilient to change. Achieving who said that no concrete walls should be built to sep- this will involve making changes to the forests, for ex- arate local communities from the grounds of Honda ample by culling trees in dense areas and clearing trees, facilities, in 1976 we launched the Community Forest from the roots, that have grown beyond a certain height initiative, a program to plant and cultivate indigenous to encourage new, younger growth. trees along the border of each facility in Japan. ● HondaWoods: created by everyone, for everyone Hello Woods, located at the Twin Ring Motegi speedway in Tochigi, Japan, is the headquarters of Honda's sustainable forest management activities and also the birthplace of the Satoyama Concept. The knowledge Community Forest, Hamamatsu Factory (1976) Community Forest today gained at Hello Woods will be actively used to advance our new forest management initiatives at operating sites across Japan. To mark the first step toward these ● Community Forests 30 years later new community forests, we have decided to call them A detailed survey of Honda Community Forests conduct- "HondaWoods." Our vision for HondaWoods is to co-cre- ed from 2011 to 2012 showed that the trees had grown ate with our stakeholders forests that can be a place of beyond original expectations and were starting to create enjoyment and relaxation for everyone. problems for local communities: their large limbs were encroaching on neighbors' properties, obstructing traffic, and dropping large amounts of leaves in the streets. As a result, Honda decided to change its forest management policy from the traditional "intervene as little as possible" method influenced by the awe-inspiring "guardian forests" of Shinto shrines, to an active approach aimed at cultivating vibrant, sustainable woodlands similar to the satoyama landscapes of rural Japan. Illustrated vision for HondaWoods J62 Facilities in Japan that disclose environmental data Honda ENVIRONMENTAL ANNUAL REPORT 2014 Japan INDEX > See the following website for environmental data disclosed by facilities in Japan (in Japanese). http://www.honda.co.jp/environment/report/japan/data/ ■ Honda Motor Co., Ltd. Sayama Automobile Plant, Saitama Factory Engine Plant, Saitama Factory Yorii Automobile Plant, Saitama Factory Suzuka Factory Kumamoto Factory Hamamatsu Plant, Transmission Factory Outboard Engine Plant Powertrain Parts Plant, Powertrain Unit Factory Production Supervisory Unit Quality Assurance Division ●Address: 1-10-1 Shin-Sayama, Sayama City, Saitama Prefecture, Japan http://www.honda.co.jp/environment/report/media/download/pdf/data2014sayama.pdf (in Japanese) ●Address: 2-1-1 Hibaridai, Ogawa-machi, Hiki-gun, Saitama Prefecture, Japan http://www.honda.co.jp/environment/report/media/download/pdf/data2014ogawa.pdf (in Japanese) ●Address: 2354 Tomita, Yorii-machi, Osato-gun, Saitama Prefecture, Japan http://www.honda.co.jp/environment/report/media/download/pdf/data2014yorii.pdf (in Japanese) ●Address: 1907 Hirata-cho, Suzuka City, Mie Prefecture, Japan http://www.honda.co.jp/environment/report/media/download/pdf/data2014suzuka.pdf (in Japanese) ●Address: 1500 Hirakawa, Ohzu-machi, Kikuchi-gun, Kumamoto Prefecture, Japan http://www.honda.co.jp/environment/report/media/download/pdf/data2014kumamoto.pdf (in Japanese) ●Address: 1-13-1 Aoi Higashi, Naka-ku, Hamamatsu City, Shizuoka Prefecture, Japan http://www.honda.co.jp/environment/report/media/download/pdf/data2014hamamatsu.pdf (in Japanese) ●Address: 5794-1 Kiga, Hosoe-cho, Kita-ku, Hamamatsu City, Japan http://www.honda.co.jp/environment/report/media/download/pdf/data2014hosoe.pdf (in Japanese) ●Address: 19 Matsuyama-cho, Mooka City, Tochigi Prefecture, Japan http://www.honda.co.jp/environment/report/media/download/pdf/data2014tochigi.pdf (in Japanese) ●Address: 2900 Kamitakanezawa-oaza, Takanezawa-machi, Shioya-gun, Tochigi Prefecture, Japan http://www.honda.co.jp/environment/report/media/download/pdf/data2014seisan.pdf (in Japanese) ●Address: 52-1 Hagadai, Haga-machi, Haga-gun, Tochigi Prefecture, Japan http://www.honda.co.jp/environment/report/media/download/pdf/data2014hinshitsu.pdf (in Japanese) ■ Honda R&D Co., Ltd. Automobile R&D Center, Wako Fundamental Technology Research Center Aircraft Engine R&D Center ●Address: 1-4-1 Chuo, Wako City, Saitama Prefecture, Japan http://www.honda.co.jp/environment/report/media/download/pdf/data2014rd_wako.pdf (in Japanese) Automobile R&D Center (Tochigi / Tochigi Proving Ground) ●Address: 4630 Shimotakanesawa, Haga-machi, Haga-gun, Tochigi Prefecture, Japan Motorcycle R&D Center / Power Products R&D Center ●Address: 3-15-1 Senzui, Asaka City, Saitama Prefecture, Japan Takasu Proving Ground http://www.honda.co.jp/environment/report/media/download/pdf/data2014rd_tochigi.pdf (in Japanese) http://www.honda.co.jp/environment/report/media/download/pdf/data2014rd_asaka.pdf (in Japanese) ●Address: 21-10, Takasu-cho, Kamikawa-gun, Hokkaido, Japan http://www.honda.co.jp/environment/report/media/download/pdf/data2014pq_takasu.pdf (in Japanese) ■ Honda Engineering Co., Ltd. Honda Engineering Co., Ltd. ●Address: 6-1 Hagadai, Haga-machi, Haga-gun, Tochigi Prefecture, Japan http://www.honda.co.jp/environment/report/media/download/pdf/data2014eg.pdf (in Japanese) J63 Promoting environmental communication Honda ENVIRONMENTAL ANNUAL REPORT 2014 Japan INDEX > Honda communicates with people affected by our business operations, including consumers and people living near our business sites, as part of our environmental management efforts. We distribute environmental information widely through various media and over the Internet and have also established communication channels to allow us to gather and respond to input from local communities. Environmental publications Honda Environmental Annual Report 環境年次 レポート PDF WEB Honda Ecology+ (in Japanese) PDF brochure Honda Eco Book (in Japanese) PDF brochure Honda Environmental Annual Report This report provides a bird's eye view of Honda environmental initiatives, including basic policies, initiatives in each business domain, and long-term goals, while explaining specific progress made in each area. http://www.honda.co.jp/environment/report/media/download/ This report describes the various efforts we are making to realize the Honda Environmental and Safety Vision, with a special focus on initiatives in product research & development. http://www.honda.co.jp/environment/report/media/download/pdf/Honda_ecoplus.pdf Written for children in the upper elementary grades, Honda Eco Book uses photographs and illustrations to clearly explain what Honda is doing and what kids can do at home to tackle major environmental problems. http://www.honda.co.jp/environment/report/media/download/pdf/kids-ecobook.pdf Honda Action for Blue Skies Handbook (in Japanese) This booklet introduces our environmental mascot Leafel and some of the environmental initiatives Honda has undertaken to date. PDF brochure Environment section of the Honda Worldwide website WEB > > A web portal for environment related-information from Honda. http://www.honda.co.jp/environment/ http://world.honda.com/environment/ Environmental Documentary– Honda Face WEB > Environmental TOPICS (in Japanese) WEB > Honda e-PRESS (in Japanese) SNS > Leafel's Forest (in Japanese) WEB Honda global environmental slogan Part 1: Blue Skies for Our Children Part 2: Blue Skies for Our Children (Generation to Generation) This regularly updated website introduces Honda environmental initiatives, with a special focus on our associates and technologies. http://www.honda.co.jp/environment/face/ http://world.honda.com/environment/face/ Timely information about Honda's latest environmental topics. http://www.honda.co.jp/environment/topics/ A Facebook page that provides a variety of information and content about Honda's environmental initiatives. https://www.facebook.com/honda.epress This web content provides information about Leafel, Honda's environmental mascot, introducing Honda's environmental initiatives through Leafel's story. http://www.honda.co.jp/leafel This animated global ad brings to life the key elements of the Honda global environmental symbol and slogan, a declaration of our commitment to do more to realize the Honda Environmental and Safety Vision. VIDEO Part 1 http://www.honda.co.jp/environment/report/media/download/blue_skies/ Part 2 http://www.honda.co.jp/environment/report/media/download/blue_skies_gg/ Blue Skies for Our Children Part 1: Triple Zero Initiatives (in Japanese) Part 2: Our ideas for the next generation: Product development at Honda (in Japanese) This video introduces Honda environmental initiatives while highlighting environmental technologies for products and initiatives in our business activities. Leafel's Blue Sky Class Part 1: What Kind of Home is HSHS? (in Japanese) VIDEO Created for upper-level elementary school children, this video introduces global warming and Honda's efforts to fight it, narrated by the Honda environmental mascot Leafel. VIDEO Part 1 http://www.honda.co.jp/environment/report/media/download/triple_zero/ Part 2 http://www.honda.co.jp/environment/report/media/download/triple_zero2/ http://www.honda.co.jp/environment/report/media/download/aozora-guide1/ J64 GRI Guideline Index Honda ENVIRONMENTAL ANNUAL REPORT 2014 Japan The table below indicates the pages in the Honda Environment Annual Report that correspond to the General Standard Disclosures and the Specific INDEX > Standard Disclosures (Category: Environmental) in the Sustainability Reporting Guidelines issued by the Global Reporting Initiative (GRI). Page Profile Strategy and 1 G06-14 Analysis Provide a statement from the most senior decisionmaker of the organization (such as CEO, chair, or equivalent senior position) about the relevance of sustainability to the organization and its strategy for addressing sustainability. 2 Provide a description of key impacts, risks, and opportunities. G20-21 3 Report the name of the organization. G03 4 Report the primary brands, products, and services. G03 5 Report the location of the organization's headquarters. G03 6 Report the number of countries where the organization operates, and names of countries where either the organization has significant operations or that are specifically relevant to the sustainability topics covered in the report. G02 7 Report the nature of ownership and legal form. G03 8 Report the markets served. 9 Report the scale of the organization. Organizational Profile Identified Material Aspects and Boundaries G02 G02-03 10 a. Report the total number of employees by employment contract and gender. b. Report the total number of permanent employees by employment type and gender. c. Report the total workforce by employees and supervised workers and by gender. d. Report the total workforce by region and gender. e. Report whether a substantial portion of the organization's work is performed by workers who are legally recognized as self-employed, or by individuals other than employees or supervised workers, including employees and supervised employees of contractors. f. Report any significant variations in employment numbers (such as seasonal variations in employment in the tourism or agricultural industries). 11 Report the percentage of total employees covered by collective bargaining agreements. 12 Describe the organization's supply chain. 13 Report any significant changes during the reporting period regarding the organization's size, structure, ownership or its supply chain. 14 Report whether and how the precautionary approach or principle is addressed by the organization. G19,G21,G45 15 List externally developed economic, environmental and social charters, principles, or other initiatives to which the organization subscribes or which it endorces. G05,G28,G30,G32-33 16 List memberships of associations (such as industry association) and national or international advocacy organizations in which the organization holds a position on the governance body. G05 17 a. List all entities included in the organization's consolidated financial statements or equivalent documents. b. Report whether any entity included in the organization's consolidated financial statements or equivalent documents is not covered by the report. □ 18 a. Explain the process for defining the report content and the Aspect Boundaries. b. Explain how the organization has implemented the Reporting Principles for Defining Report Content. G20-21 19 List all the material Aspects identified in the process for defining report content. G54-55 20 For each material Aspect, report the Aspect Boundary within the organization. 21 For each material Aspect, report the Aspect Boundary outside the organization. 22 Report the effect of any restatements of information provided in previous reports, and the reasons for such restatements. □ □ G47 G45 G01 G01 G01,G50 23 Report significant changes from previous reporting periods in the Scope and Aspect Boundaries. Stakeholder 24 Provide a list of stakeholder groups engaged by the organization. engagement 25 Report the basis for identification and selection of stakeholders with whom to engage. G20-21 26 Report the organization's approach to stakeholder engagement, including frequency of engagement by type and by stakeholder group. G20-21 27 Report key topics and concerns that have been raised through stakeholder engagement, and how the organization has responded to those key topics and concerns, including through its reporting. G20-21 28 Reporting period for information provided. G01 29 Date of most recent previous report (if any). G01 30 Reporting cycle. G01 31 Provide the contact point for questions regarding the report or its contents. G56 32 a. Report the 'in accordance' option the organization has chosen. b. Report the GRI Content Index for the chosen option. c. Report the reference to the external Assurance Report if the report has been externally assured. GRI Content Index for 'in accordance' - Core GRI Content Index for 'in accordance' - Comprehensive 33 a. Report the organization's policy and current practice with regard to seeking external assurance for the report. b. If not included in the assurance report accompanying the sustainability report, report the scope and basis of any external assurance provided. c. Report the relationship between the organization and the assurance providers. d. Report whether the highest governance body or senior executives are involved in seeking assurance for the organization's sustainability report. G04 34 Report the governance structure of the organization, including committees of the highest governance body. Identify any committees responsible for decision-making on economic, environmental and social impacts. G45 35 Report the process for delegating authority for economic, environmental and social topics from the highest governance body to senior executives and other employees. G45 36 Report whether the organization has appointed an executive-level position or positions with responsibility for economic, environmental and social topics, and whether post holders report directly to the highest governance body. G45 37 Report processes for consultation between stakeholders and the highest governance body on economic, environmental and social topics. If consultation is delegated, describe to whom and any feedback processes to the highest governance body. G45 38 Report the composition of the highest governance body and its committees by: ・Executive or non-executive ・Independence ・Tenure on the governance body ・Number of each individual's other significant positions and commitments, and the nature of the commitments ・Gender ・Membership of under-represented social groups ・Competences relating to economic, environmental and social impacts ・Stakeholder representation 39 Report whether the Chair of the highest governance body is also an executive officer. 40 Report the nomination and selection processes for the highest governance body and its committees, and the criteria used for nominating and selecting highest governance body members. □ 41 Report processes for the highest governance body to ensure conflicts of interest are avoided and managed. Report whether conflicts of interest are disclosed to stakeholders. □ 42 Report the highest governance body's and senior executives' roles in the development, approval, and updating of the organization's purpose, value or mission statements, strategies, policies, and goals related to economic, environmental and social impacts. G45 43 Report the measures taken to develop and enhance the highest governance body's collective knowledge of economic, environmental and social topics. G08-G14 Report Profile Governance Page numbers that begin with G indicate pages in the Global report. Page numbers that begin with J indicate pages in the Japan report. □: Indicators related to non-environmental categories For further information on EN-Web, see the Honda Worldwide website's environmental section. http://world.honda.com/environment/ G01 G18 G54-55 (Comprehensive) □ G06-G14 J65 Honda ENVIRONMENTAL ANNUAL REPORT 2014 Japan GRI Guideline Index INDEX > 44 a. Report the processes for evaluation of the highest governance body's performance with respect to governance of economic, environmental and social topics. Report whether such evaluation is independent or not, and its frequency. Report whether such evaluation is a self-assessment. b. Report actions taken in response to evaluation of the highest governance body's performance with respect to governance of economic, environmental and social topics, including, as a minimum, changes in membership and organizational practice. □ 45 a. Report the highest governance body's role in the identification and management of economic, environmental and social impacts, risks, and opportunities. lnclude the highest governance body's role in the implementation of due diligence processes b. Report whether stakeholder consultation is used to support the highest governance body's identification and management of economic, environmental and social impacts, risks, and opportunities. G20-21 46 Report the highest governance body's role in reviewing the effectiveness of the organization's risk management processes for economic, environmental and social topics. G21,G45 47 Report the frequency of the highest governance body's review of economic, environmental and social impacts, risks, and opportunities. G21,G45 48 Report the highest committee or position that formally reviews and approves the organization's sustainability report and ensures that all material Aspects are covered. G45 49 Report the process for communicating critical concerns to the highest governance body. G45 50 Report the nature and total number of critical concerns that were communicated to the highest governance body and the mechanism(s) used to address and resolve them. 51 Report the remuneration policies for the highest governance body and senior executives for the below types of remuneration. □ 52 Report the process for determining remuneration. Report whether remuneration consultants are involved in determining remuneration and whether they are independent of management. Report any other relationships which the remuneration consultants have with the organization. □ 53 Report how stakeholders' views are sought and taken into account regarding remuneration, including the results of votes on remuneration policies and proposals, if applicable. □ 54 Report the ratio of the annual total compensation for the organization's highest-paid individual in each country of significant operations to the median annual total compensation for all employees (excluding the highest-paid individual) in the same country. □ 55 Report the ratio of percentage increase in annual total compensation for the organization's highest-paid individual in each country of significant operations to the median percentage increase in annual total compensation for all employees (excluding the highest-paid individual) in the same country. □ Ethics and 56 Describe the organization's values, principles, standards and norms of behavior such as codes of conduct and codes of ethics. Integrity 57 Report the internal and external mechanisms for seeking advice on ethical and lawful behavior, and matters related to organizational integrity, such as helplines or advice lines. □ 58 Report the internal and external mechanisms for reporting concerns about unethical or unlawful behavior, and matters related to organizational integrity, such as escalation through line management, whistleblowing mechanisms or hotlines. □ Governance Environmental Performance Indicators Page G20-21,G45 G18-19,G26 Disclosure level Non-consolidated Consolidated Partly Fully Partly Disclosures on Management Approach (DMA) Materials EN-1 Materials used by weight or volume. EN-2 Percentage of materials used that are recycled input materials. EN-3 Energy consumption within the organization. G50 EN-4 Energy consumption ouside of the organization. G50 EN-5 Energy intensity. EN-6 Reduction of energy consumption. EN-7 Reduction in energy requirements of products and services. EN-8 Total water withdrawal by source. EN-9 Water sources significantly affected by withdrawal of water. EN-Web EN-10 Percentage and total volume of water recycled and reused. ( J39) EN-11 Operational sites owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas. EN-12 Description of significant impacts of activities, products, and services on biodiversity in protected areas and areas of high biodiversity value outside protected areas. EN-13 Habitats protected or restored. EN-14 Total number of IUCN Red List species and national conservation list species with habitats in areas affected by operations, by level of extinction risk. G16 EN-15 Direct greenhouse gas (GHG) emissions. (Scope 1) G50 EN-16 Energy indirect greenhouse gas (GHG) emissions. (Scope 2) G50 EN-17 Other indirect greenhouse gas (GHG) emissions. (Scope 3) EN-18 Greenhouse gas (GHG) emissions intensity. EN-19 Reduction of greenhouse gas (GHG) emissions. EN-20 Emissions of ozone-depleting substances. (ODS) EN-21 NOx, SOx, and other significant air emissions. G50 EN-22 Total water discharge by quality and destination. G50 EN-23 Total weight of waste by type and disposal method. EN-24 Total number and volume of significant spills. EN-25 Weight of transported, imported, exported, or treated waste deemed hazardous under the terms of the Basel Convention Annex I, II, III, and VIII, and percentage of transported waste shipped internationally. ー EN-26 Identity, size, protected status, and biodiversity value of water bodies and related habitats significantly affected by the reporting organization's discharges of water and runoff. EN-Web EN-27 Extent of impact mitigation of environmental impacts of products and services. EN-28 Percentage of products sold and their packaging materials that are reclaimed by category. Compliance EN-29 Monetary value of significant fines and total number of non-monetary sanctions for noncompliance with environmental laws and regulations. ( J21-22,J24) Transport EN-30 Significant environmental impacts of transporting products and other goods and materials used for the organization's operations, and transporting members of the workforce. G29,G47-48 Overall EN-31 Total environmental protection expenditures and investments by type. Supplier Environmental Assessment EN-32 Percentage of new suppliers that were screened using environmental criteria. ( J32-33) EN-33 Significant actual and potential negative environmental impacts in the supply chain and ations taken. ( J32-33) EN-34 Number of grievances about environmental impacts filed, addressed, and resolved through formal grievance mechanisms. ( J21-22) Energy Water Biodiversity Emissions Effluents and Wastes Products and Services Environmental Grievance Mechanisms Fully G18-30,G45-49 ( J36) ー ー Not disclosed Disclosed as CO2 equivalent G50 G27,G31 G50 G16 G16 G16, (J60,J62) G47 G27,G29 G51-53 ー Not disclosed G50 ( J21-22) No waste transported G19-25,G27-40 ( J43,J51) ( J24) Page numbers that begin with G indicate pages in the Global report. Page numbers that begin with J indicate pages in the Japan report. □: Indicators related to non-environmental categories For further information on EN-Web, see the Honda Worldwide website’s environmental section. http://world.honda.com/environment/ J66 Honda ENVIRONMENTAL ANNUAL REPORT 2014 Japan INDEX > Honda Environmental Annual Report 2014 Editorial concept Developed around a "people's passion" concept, this year's environmental report features appearances from an array of Honda associates, including the Japan Environmental Committee Chairman, executive officers from all domains, operating managers, associates, and many more. Each expresses his or her own aspirations from a unique position within the company, allowing readers to more vividly sense the varied but united passion Honda associates bring to environmental issues and their mission to make Honda a truly globalized company. Design concept Honda operates its manufacturing business with concern for the environment and with the mission of keeping our skies blue, our water pure, and our land green. The clear hexagon on the cover evokes the image of sunlight and symbolizes Honda's six operating regions worldwide, while the natural landscape in the background represents what Honda is driven to protect. The morning sun over Mt. Fuji, a symbol of Japan, expresses the firm ambition of Japan Operations, which relaunched under a new organizational structure in fiscal 2015, to lead Honda’s other five operating regions in the area of environmental management. ● Domain coordinators Sales and services Automobiles••••••••••••••••••••••••••••••••••••••• Shigeaki Kato Yasumasa Shimizu Motorcycles•••••••••••••••••••••••••••••••••••••• Masaharu Iuchi Power Products••••••••••••••••••••••••••••••Kazuhiro Yokoyama Service and Parts•••••••••••••••••••••••••••••••••••• Wataru Karo Environmental Promotion Center••••••••••••••• Tomokazu Abe Purchasing •••••••••••••••••••••••••••••••••••••••••• Hiroshi Saito Environmental Administrators in Production and Office Operations Saitama Factory ••••••••••••••••••••••••••••••••••••• Hideki Oishi Powertrain Parts Plant, Powertrain Unit Factory •••••• Shu Suga Hamamatsu Plant, Transmission Factory / Outboard Engine Plant ••••••••••••••••••••••••••••• Satoru Isano Suzuka Factory •••••••••••••••••••••••••••••••• Hiromasa Iwasaki Kumamoto Factory ••••••••••••••••••••••••••••• Takayoshi Fukai Production Supervisory Unit •••••••••••• Hirotsugu Kawanaka Quality Assurance Division ••••••••••••••••••••••••• Yosito Hora ● Green Factory Promotion Block••••••••••••••••••• Yuji Mukano Head Office •••••••••••••••••••••••••••••••••••••••••••• Takao Aoki Honda R&D Co., Ltd. Automobile R&D Center (Wako)/ Fundamental Technology Research Center/ Aircraft Engine R&D Center••••••••••••••••••• Koichiro Kageta Motorcycle R&D Center/ Power Products R&D Center••••••••••••••••••• Shigehisa Fujita Automobile R&D Center (Tochigi)•••••••••••••• Shinya Ogawa Takasu Proving Ground•••••••••••••••••••••••••••••• Toru Sasaki Honda Engineering Co., Ltd.••••••••••••••••• Masuhiro Sakurai Transportation Products and component part sets ••••••••••• Masakatsu Sato Administration Human Resources •••••••••••••••••••••••••••••• Manabu Ozawa Corporate Communications•••••••••••••••••••••• Kaoru Tanaka Intellectual Property••••••••••••••••••••••••••• Hirokazu Bessyo *Current as of June 1, 2014. Environmental Annual Report production staff Honda Motor Co., Ltd. Yuichi Arima, Kaoru Iguchi, Emiko Iwabuchi, Nobuhiro ● Utada, Michiharu Ohno, Shinji Kameda, Tetsu Kawasaki, About the Honda global environmental slogan and symbol Toshimitsu Gomibuchi, Masakatsu Sato, Tatsuo Tagoku, Our goal, as expressed in the Honda Environmental and Safety Vision, is to leave the joy and freedom of mobility for future generations (for our children). Our environmental slogan and symbol embody this aspiration as we strive to create a sustainable society where people can enjoy life (blue skies). Kenta Chugun, Jun Doi, Makoto Naniwa, Takuya Nishioka, Kenichi Nonome, Kumiko Hashimoto, Koji Hayami, Atsuki Hina, Sayaka Matsuoka, Takehiko Matsufuji, Noboru Mitarai, Keiko Yamada, Kyoko Yokoyama Honda R&D Co., Ltd. Hiroshi Urano, Takuya Goto, Hideo Suzuki, Hiroyuki Sekimata, Shosaku Chiba, Takashi Murayama, Jun Yamaguchi, Tetsu Wada Honda Engineering Co., Ltd. Yuichi Tsuchimoto, Hiroshi Mikami Honda Access Corporation ● Please direct enquiries to: Environment & Safety Planning Office Tel: +81-(0)3-5412-1155 Fax: +81-(0)3-5412-1154 You can read this report, the latest news and updates on the Honda Worldwide website. http://world.honda.com/environment/ Yasunori Goto, Norio Takahashi Honda Motorcycle Japan Co., Ltd. Yuji Suzuki, Naoki Honda Production mode2 COMPASS Photo Kosuke Tsuruta, Hisashi Kato Publisher Manager Editors Environment & Safety Planning Office Michio Shinohara Hisashi Kato, Jun Masuda, Yukihiko Kakutani, Satoru Kikunaga, Asami Umeda, Takatsugu Ukai, Fujita Noriaki, Chiharu Shiraki, Shunsuke Kawasaki J67 Honda Motor Co., Ltd. 2-1-1 Minami Aoyama, Minato-ku Tokyo 107-8556, Japan June 2014 M2 B 0 0 0 01406-04