Addressing the Issue of Global Climate Change

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							2010 CO2 Reduction Targets



Addressing the Issue of Global Climate Change
Having attained the targets we set for 2005, Honda is now working to achieve important new objectives.


Global Climate Change                                               Growing Demand for Mobility
   The issue of global climate change cannot be resolved               Currently, there is a significant gap between people in
solely by action at the regional level. Honda is addressing         developed countries and those in developing countries in
the problem on a global scale.                                      terms of access to convenient transportation. Improve-
                                                                    ment in the quality of mobility is essential to improving
                                                                    people’s quality of life. Consequently, the demand for
                                                                    automobiles and other forms of transportation can be
                                                                    expected to continue to grow.




   Honda is working to further develop its technology to reconcile the issues of global climate change and
   growing demand for mobility. The overall goal is to manufacture products with the lowest in-use
   CO2 emissions at manufacturing plants with the lowest CO2 emissions per unit of production.


Product Efficiency: Raising Fuel Efficiency                         Production Efficiency: Reducing Per-Vehicle CO2
Averages Worldwide                                                  Emissions in Manufacturing Worldwide
    Since the internal combustion engine seems likely to                Honda is also committed to further improving the
continue to provide the principal means of mobility until           efficiency of its manufacturing processes worldwide. To
at least the year 2020, Honda is working to improve its             this end, we have established global targets for average
efficiency and fuel economy.                                        per-unit CO2 emissions in manufacturing.
    Stringent regulations such as Corporate Average Fuel
Economy (CAFE) standards have been introduced in the
U.S., Europe and other regions to mandate improved
automobile fleet fuel efficiency. Recognizing the need for
global initiatives, Honda is moving from measuring
regional averages to measuring fuel efficiency averages
on a global basis, and from fuel efficiency averages based
on vehicle categories to average targets for its entire
worldwide vehicle lineup.
                                                                                                    Other factors
                                                                                                    (raw materials
Product and Production Targets That Cover Most                                                      procurement,
                                                                                                    transportation,
of the Vehicle Life Cycle                                                                           service, disposal,
   According to assessments made on the basis of the                                                etc.)
                                                                                  Production
Honda Life Cycle Assessment (LCA) system, approxi-                                          6%
mately 78% of emissions are generated by driving                                                                 CO2 over
                                                                                                               the life cycle
vehicles, and about 6% in their manufacture. Thus,                                                              of a vehicle
Honda’s targets for improvement of product and
production efficiency can be considered to cover more
than 80% of automobile-related life cycle CO2
emissions.                                                                                                       Driving 78%



                                                                              CO2 emissions over the life cycle of a vehicle (as assessed with the Honda LCA system)




10
Global CO2 Reduction Targets for 2010                                                                                                      (baseline: 2000)


                                                              Automobiles                                   Motorcycles                                  Power Products



Product CO2 Reduction Targets
                                                                      10%                                           10%                                           10%
      Global average of CO2                                            (per g/km)                                    (per g/km)                                   (per kg/h)
      emitted by all Honda products




Production CO2 Reduction Targets
      Global average of per-unit CO2
                                                                      10%                                           20%                                           20%
      emitted during production
                                                                       (per unit)                                    (per unit)                                   (per unit)



•Target scope:

Product—Automobiles:    Japan, North America, Europe/Middle East/Africa, Asia/Oceania, China, South America (more than 90% of worldwide sales)
Product—Motorcycles:    Japan, North America, Europe, Thailand, India, China, Indonesia, Vietnam, Brazil, the Philippines, Malaysia, Pakistan
                        (more than 90% of worldwide sales)
Product—Power Products: All sales in all regions (marine outboards excluded)
Production:             All manufacturing by Honda Motor and 72 other Honda Group companies worldwide engaged in the assembly of
                        vehicles and major components. (See p.88 for details.)
                        Note: Honda Precision Parts of Georgia, LLC has been added.



FY2007 Results (in progress)
Product CO2 Reduction                          Automobiles           6.0% reduction             Motorcycles 13.2% reduction*1                       Power Products 6.9% reduction
                                             (%)                                              (%)                                              (%)
                                             100        100                                   100        100                                   100        100
                                                                   94.0                                                                                             93.1
                                                                                90                                   86.8         90                                           90
                                              90                                               90                                                   90

                                              80                                               80                                                   80

                                              70                                               70                                                   70
                                                      FY2001      FY2007      2010 target               FY2001     FY2007       2010 target              FY2001    FY2007      2010 target


Production CO2 Reduction                       Automobiles           9.5% reduction             Motorcycles 29.3% reduction*2                       Power Products 4.4% increase*3
                                             (%)                                              (%)                                              (%)
                                             100        100                                   100        100                                   120
                                                                   90.5        90              90                                              110                 104.4
                                              90                                                                                                          100
                                                                                                                                 80            100
                                                                                               80
                                              80                                                                    70.7                        90
                                                                                               70                                               80                              80
                                              70                                               60                                               70
                                                      FY2001      FY2007      2010 target               FY2001     FY2007       2010 target              FY2001    FY2007      2010 target

*1 A 13.2% reduction from 2000 has already been attained. We are striving to attain a minimum 10% reduction by 2010.
*2 Although the target has already been attained, an expansion of production is foreseen in this region, where CO2 emissions are relatively high.
   We are striving to maintain the reduction target level and achieve even greater reduction by 2010.
*3 Higher, per-unit emissions in power product manufacturing can be attributed to larger and more feature-rich new products.



CO2 Reduction Initiatives
Striving to attain all CO2 reduction targets, Honda is engaged in various initiatives:
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