Reduction of CO₂ Emissions from Product Use
CO₂ emissions from product use (Scope 3 Category 11) primarily result from the combustion of fossil fuels in ICE and HEVs. Honda considers the expansion and proliferation of electric products as an effective measure to reduce CO₂ emissions from product use. By increasing the sales ratio of electric products, Honda aims to achieve reductions in CO₂ emissions for Scope 3 Category 11.
In the short to medium term, Honda plans to continue selling ICE products. We will also maintain our efforts to improve the environmental performance of our motorcycles, automobiles, and power products, actively working to reduce current CO₂ emissions.
While the electrification of products will contribute to reducing CO₂ emissions, some emissions may remain depending on the availability and adoption of renewable energy in different countries and regions. Therefore, Honda is committed not only to utilizing renewable energy within its own operations but also to engaging in advocacy efforts to promote and accelerate the transition to clean energy.
Honda will work towards contributing to the promotion and expansion of clean energy across society, while also exploring direct involvement in supplying clean energy to customers, with the aim of reducing CO₂ emissions from the use of electric products.
Key Initiative 1: Expansion and Promotion of Electric Products
Expanding the Range of Attractive Electric Products
As part of its approach to becoming carbon neutral by 2050, Honda considers electrification to be the most effective solution for small mobility, including motorcycles and automobiles. To monitor progress in the expansion of electric products, Honda has set a target for the sales ratio of electric vehicles by the Fiscal Year Ending March 31, 2031. To meet this target, Honda is focusing on expanding its lineup of electric products while simultaneously developing and producing attractive electric products that offer value and are designed to appeal to customers.
For automobiles, Honda will focus on the core Honda 0 series. Starting with the North American market launch in 2026, Honda plans to offer seven models globally, ranging from small to midium-large sized vehicles, by 2030. In the Chinese market, Honda aims to offer ten models by 2027 and to achieve full electrification of all models by 2035. Additionally, in the Japanese market, Honda will expand its lineup with the launch of the small commercial N-VAN e: in October 2024, and will continue to enhance the sales ratio of electric products.
The “Honda 0 Series,“ which spearheads Honda’s EV strategy, is an entirely new EV series created from scratch using a fresh development approach called “Thin, Light, and Wise.”
Providing Value of Honda 0 Series
The “Thin, Light, and Wise.” development approach provides the following five core values:
- Advanced Driver Assistance Systems (ADAS) for enhanced safety and security
- New spatial value created through IoT and connected technology
- High energy efficiency for improved electric vehicle performance
- The joy of driving with a harmonious integration between driver and vehicle
- Artistic design that resonates and captivates
For its motorcycles, Honda plans to offer over 10 models by 2025 and aims to introduce 30 models by 2030. In 2023, Honda launched the “EM1 e:” in Japan and Europe, and the “Honda Cub e:” in China among other models. This demonstrates Honda’s steady progress in expanding its lineup of electric motorcycles.
In the power products business, Honda is positioning the power unit and garden sectors as key domains for electric products and will accelerate its efforts towards electrification.
The electrification of motorcycles, automobiles, and power products is seen as a way to create synergies through parts sharing among different business segments. Honda will continue to actively advance its electrification efforts.
Honda monitors progress in the expansion of electric products by setting the “Sales ratio of electrified products” as a key performance indicator (KPI) and advancing efforts towards the targets.
Metrics and Targets/Achievements
| Management Indicators (KPI) | Targets | ||
|---|---|---|---|
| Fiscal Year Ending March 31, 2031 | |||
| Sales ratio of electrified products | Motorcycles 15% |
Automobiles 30% |
Power products 36% |
Sales Ratio of Electrified Products
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Motorcycles
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Automobiles
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Power Products
Key Initiative 2: Enhancing of Product Environmental Performance
Reduction of CO₂ Emissions through Improved Environmental Performance
Honda is advancing product electrification while also reducing CO₂ emissions during use by enhancing the environmental performance of various products, including ICE, HEV, and EV. To guide its efforts in improving environmental performance, Honda utilizes its proprietary “Honda Environmental Performance Standards (HEPS)”.
Honda Environmental Performance Standards (HEPS)
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- Improving the efficiency of internal combustion engines
- Applying environmental innovation technologies and adapting to diversifying energy sources
- Utilizing renewable energy and total energy management systems
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To track the progress of electric product adoption and environmental performance improvements, we established the “product CO₂ emission intensity reduction rate (compared to FYE Mar. 31, 2020)” as a key performance indicator (KPI). We have set target values and are actively working to achieve them.
Global Number of HEPS-Compliant Models
Motorcycles
Automobiles
Power Products
In 2011, Honda established the “Honda Environmental Performance Standards (HEPS)” and set operational guidelines to ensure continuous efforts in this area. The number of HEPS-compliant models across various business sectors has been increasing as of the FYE March 2024. Additionally, the FYE Mar. 31, 2024 performance for product CO₂ emission intensity reduction rate (compared to FYE Mar. 31, 2020) has generally shown a decrease compared to the previous fiscal year, indicating steady progress in improving the efficiency of internal combustion engine products, among other advancements.
Metrics and Targets/Achievements
| Management Indicators (KPI) | Targets | ||
|---|---|---|---|
| Fiscal Year Ending March 31, 2031 | |||
| Reduction rate of CO₂ emissions intensity of product use (compared to FYE Mar. 31,2020) |
Motorcycles 34.0% |
Automobiles 27.2% |
Power products 28.2% |
Reduction rate of CO₂ emissions intensity of product use (Compared to FYE Mar. 31, 2020)
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Motorcycles
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Automobiles
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Power products
