Honda Issues Second-Annual North American Environmental Report

10/31/2006 9:47:00 PM

Honda today released its second annual report on the company's environmental footprint in North America, with a special emphasis on global warming and energy sustainability as two of the most critical environmental challenges facing society today.

The 2006 North American Environmental report covers the company's operations during the period April 1, 2005 to March 31, 2006 (FY 2006). The report looks at the environmental performance of the company's automobile, power sports and power equipment products, its 12 major manufacturing plants in North America, and the corporate activities of 13 Honda group companies in the region.

"We are pleased to provide this report on our ongoing efforts to reduce the environmental footprint of Honda's North American operations," said Koichi Kondo, chief operating officer of Honda's North American Regional Operation. "Even as we continue to grow our North American sales, R&D and manufacturing capabilities, we are seeking ways to make a positive contribution to the environment through improvements to product and process efficiency, reductions in emissions, and elimination of toxic substances and waste."

The 2006 North American Environmental Report is available for viewing and download at the company's corporate web site at www.honda.com, and its media web site at www.hondanews.com.

Following are highlights of the 2006 report:

Honda and Acura Automobiles

  • The company raised its industry-leading U.S. corporate average fuel economy (CAFE) for model year 2005 Honda and Acura cars and light trucks to 29.2 miles per gallon.
  • Nearly 100 percent of model year 2006 Honda and Acura automobiles sold in the U.S. will met or exceed both California's and the U.S. EPA's stringent Tier 2 Bin 5 exhaust emissions standards, more than any other full-line automaker.
  • Every model year 2006 Honda and Acura automobile designed and assembled in North America has achieved 90% or greater recyclability1.
  • Honda introduced the fourth generation of its gas-electric hybrid technology in the 2006 Civic Hybrid, with improved power and efficiency and a 50 mpg combined city/highway U.S. EPA fuel economy
    rating.
  • A new FCX Concept fuel cell vehicle was debuted with a more compact, efficient and powerful Honda FC Stack, along with plans for limited market introduction of an all-new production fuel cell vehicle in 2008.

Power Sports Products

  • The company has applied cleaner, quieter and more efficient 4-stroke engine technology to the breadth of its North American power sports product lineup and is expanding the use of programmable fuel injection (PGM-FI) for further improvements in emissions and fuel efficiency.

Power Equipment and Marine Products

  • The company has applied 4-stroke engine technology to its complete North American power equipment line, and in the U.S. is adopting new, more stringent, California emissions standards for products in all 50 states.

North American Manufacturing

  • All 13 of Honda's major North American manufacturing plants operating during the fiscal year were certified to the ISO 14001 environmental management standard.
  • CO2 emissions from automobile manufacturing2 increased about 37 percent to 1.17 million metric tons from FY 2001 (ended March 31, 2001) to FY 2006, due to increased production activity. CO2 emissions per auto rose 4 percent to 810kg during the same period, due to the continued in-sourcing of powertrain parts production and other processes, as well as variations in model size.
  • Energy use per auto decreased 6 percent to 6.7 gigajoules from the previous fiscal year, due to increased utilization of manufacturing capacity.
  • Emissions of volatile organic compounds were reduced 6 percent from previous fiscal year, due primarily to the startup of a new, more environmentally friendly, paint shop at the Marysville Auto Plant.
  • Water use per auto remained steady, while total water use increased 10 percent from the previous fiscal year, due to an increase in production activity.
  • Waste to landfill was reduced by approximately 17 percent from the previous fiscal year, as two additional Honda plants, in North Carolina and Georgia, achieved zero waste to landfill.

Minimization of Waste and Toxic Substances

  • Honda R&D Americas' Raymond, Ohio, central plant became the second Honda facility in North America to earn a Leadership in Energy and Environmental Design (LEED) Gold certification from the U.S. Green Building Council.
  • Honda is engaged in projects to further reduce the end-of-life impact of its products, including hybrid battery recycling; and research on ways of reducing automobile shredder residue (ASR), on how best to recycle catalytic converters, and on methods for treating plastic fuel tanks.
  • Efforts to reduce or eliminate use of substances of concern were continued in FY 2006, including the elimination of lead in all automobile and motorcycle wheels, the phase out of octa- and penta-polybrominated diphenyl ethers (PBDEs), and the reduction in the number of interior and exterior parts made with PVC.

Additional information on Honda's environmental performance outside of North American can be found in Honda Motor Company's Environmental Report, published annually since 1999, with a focus on Honda's activities in Japan - available at world.honda.com. Also, an environmental report covering Honda's Asia/Oceania Region, has been published by Honda in Thailand, since 2000. In 2006, a newly compiled Corporate Social Responsibility Report covers environmental efforts in that region together with various aspects of a responsible corporate citizen.

Honda in North America
Honda began operations in North America in 1959, with the establishment of American Honda Motor Co., Inc., Honda's first overseas subsidiary. Honda now employs more than 35,000 associates in North America and operates 13 major manufacturing plants producing automobiles, motorcycles, all-terrain vehicles, personal watercraft, engines, transmissions and other components. Many of these products are designed and developed at Honda's U.S. R&D centers in Ohio, Los Angeles and North Carolina. Honda annually purchases more than $16 billion in parts and materials from suppliers in North America.

# # #

1 Vehicle recyclability calculated using Honda's own internal methods, based on the ISO22628 standard titled "Road Vehicles Recyclability and Recoverability Calculation Method" with certain modifications.

2CO2 emissions from electricity and natural gas consumed in the manufacturing process.