The starting point for reducing CO₂ emissions lies in improving production efficiency and implementing energy-saving measures.

Honda is actively working to reduce direct emissions (Scope 1) and indirect emissions from energy use (Scope 2) in corporate activities.

In the production process, Honda prioritizes improving production efficiency through process enhancements and implementing energy-saving measures. Additionally, the electrification of factory equipment is actively pursued during equipment upgrades or automation.

Furthermore, to address CO₂ emissions from the use of fossil fuel-based electricity, we are working on reductions through the procurement and utilization of renewable energy, including the installation of solar panels on factory premises. As a result, the FYE Mar. 31, 2024 performance has reached 37.7% vs. the 46% reduction target for 2030 (compared to FYE Mar. 31, 2020), with CO₂ emissions amounting to 3.14 million t-CO₂e.

Honda sets a key management indicator (KGI) for the reduction of Scope 1 and 2 emissions, namely the “reduction of total CO₂ emissions from corporate activities (compared to FYE Mar. 31, 2020),” and establishes target values to continuously monitor and advance its efforts toward achieving these goals.

Reduction rate of total CO₂ emissions from corporate activities (compared to FYE Mar. 31, 2020)

Achieving Carbon Neutral at Saitama Factory Automobile Plant by the Fiscal Year Ending March 31, 2026

Honda is implementing CO₂ emissions reductions from its corporate activities using three main technologies/know-how and defines production sites that have effectively achieved zero CO₂ emissions as “carbon neutral factories.”

Honda is designating its Saitama Factory’s automobile plant, which is a key production site for automobiles, as a leading facility for carbon neutrality. The plant is applying three main technologies/know-how in this effort. By advancing these initiatives, the goal is to achieve Honda’s first carbon-neutral factory by Fiscal Year Ending Mar. 31, 2026. Through these efforts, the accumulated technologies/know-how will be shared across other sites and expanded to achieve carbon neutrality tailored to regional characteristics. Honda will work towards realizing carbon-neutral factories at all its automobile production sites worldwide by the late 2030s.

“Canada EV-Only Factory” Aiming for Both Minimal Environmental Impact and World-Class Production Efficiency

The Canada EV-only factory, scheduled to begin operations in 2028, will utilize the carbon-neutral factory technologies and know-how developed at the Saitama Factory. It aims to achieve both minimal environmental impact and world-class production efficiency. As part of our efforts, the plan is to utilize renewable energy sources, such as hydroelectric power, which are becoming more prevalent in Canada, to advance the use of clean energy.

We will also progressively implement measures at other production sites, tailored to the renewable energy characteristics of each region.

Technologies/Experience and Expertise 1: Improving Production Efficiency and Implementing Energy-Saving Measures

Honda believes that the key actions for reducing CO₂ emissions from its corporate activities are improving production efficiency and implementing energy-saving measures. To enhance production efficiency, we are reviewing production processes and reducing the number of steps and procedures involved in production.

For energy-saving measures, we are implementing practices such as the utilization of surplus heat, among other strategies, to reduce energy consumption and lower CO₂ emissions.

For example, we are advancing efforts to recover and reuse waste heat generated in the painting process in other equipment. These efforts are not limited to the painting process and are continuously applied across various processes.

Technologies/Experience and Expertise 2: Electrification of Production Equipment

Electrifying equipment is an effective measure to reduce CO₂ emissions from production processes. For example, we have electrified gas-burning equipment used for drying, which has helped reduce CO₂emissions from the process.

Additionally, by substituting the electricity used for electrified equipment with renewable energy sources instead of fossil fuels, we are achieving further reductions in CO₂ emissions.

Going forward, we will continue to focus on electrifying equipment tailored to the characteristics of our production processes.

Technology/Experience and Expertise 3: Switching to Renewable Energy

Honda is actively installing solar panels on buildings and parking lots within its premises. To make the most of the renewable energy generated by these installations, we are also implementing stationary battery storage systems. This approach aims to minimize the Company’s own CO₂ emissions from its operations and enhance its reduction efforts.

Additionally, in regions such as Japan and North America, Honda is also advancing the procurement of renewable energy sourced from external suppliers.
As a case example in Japan, Honda has signed a virtual Power Purchase Agreement (PPA) with Rusutsu Wind LLC in September 2024, with plans to start utilizing it from 2025.

Utilization of Carbon Credits

Honda is implementing various strategies and innovations to reduce and mitigate CO₂ emissions. However, even with these efforts, we anticipate that achieving complete zero CO₂ emissions may still be challenging.
Therefore, we consider the use of carbon credits, among other options, as part of our strategy to achieve net-zero emissions.