Initiatives for Reduction of CO₂ Emissions Across the Product Lifecycle
Advancement in Aggregating CO₂ Emissions from Corporate Activities
While the expansion and adoption of electric products are advancing the reduction of CO₂ emissions from product use, CO₂ emissions associated with the manufacturing of materials and components required for these electric products are expected to increase if current trends continue.
To identify the major sources of CO₂ emissions (hotspots), Honda has developed and implemented a method for calculating CO₂ emissions for each component by breaking down approximately 20,000 parts into about 50 types of constituent materials.
Currently, CO₂ emissions during the manufacturing of materials and components are calculated using simplified methods based on industry averages. However, moving forward, it will be possible to more accurately assess CO₂ emissions reduction efforts by measuring the actual energy consumption during the manufacturing process.
Ultimately, it is the suppliers who can accurately calculate CO₂ emissions during the production of materials and components, as they are directly involved in the manufacturing process. As an ideal approach for the future, we aim for our suppliers to share CO₂ emission data calculated by them throughout the supply chain. This will enable us to more accurately assess the CO₂ emissions of Honda products and, based on this assessment, collaborate with our suppliers on further reduction efforts and initiatives.
Based on the belief that accurate assessment of CO₂ emissions enables more effective measures, we are advancing the implementation of a system that can collectively aggregate and analyze CO₂ emissions data not only from corporate activities, but also across Honda’s entire value chain.
We will leverage the insights gained from our analysis to further drive strategies and initiatives for CO₂ emissions reduction, aiming to achieve carbon neutrality.
Aggregation of CO₂ emissions from purchased products and services: conceptual diagram
Initiatives to Calculate Product Carbon Footprint (CFP)
To achieve carbon neutrality by 2050, we aim to reduce CO₂ emissions through the electrification of products, while pursuing manufacturing with lower carbon intensity and reduced environmental impact.
To this end, we are quantifying the product carbon footprint across the entire lifecycle and examining areas such as material and component manufacturing, which may result in higher emissions compared to traditional products. We are also developing technologies and improving product specifications to enable the emission reductions.
In the fiscal year ended March 31, 2026, Honda strengthened its calculation infrastructure by updating the product carbon footprint calculation methodology, developing IT systems, and initiating their operation.
1. Revision of Calculation Methodology in Line with Industry Standards
To further enhance the objectivity and reliability of calculation data, Honda has transitioned its calculation methodology from its proprietary method to the Carbon Footprint Guideline for Automobile Products (2024 Edition) issued by the Japan Automobile Manufacturers Association. The Company will continue to promptly incorporate the latest industry-standard methodologies and strive for ongoing improvements in data transparency.
2. Strengthening Data Governance Through the Launch of IT System Operations
Honda has introduced and begun operating a new IT system designed to accurately and efficiently process vast amounts of components and material data.
By enhancing data processing capabilities, the Company has improved the accuracy and reproducibility of calculation data across various products.
Going forward, Honda will continue to apply the results obtained from carbon footprint calculations to product development, while striving to enhance transparency of information provided to stakeholders.
Carbon Footprint Comparison of N-ONE (ICE) and N-ONE e: (EV)
CFF (Circular Footprint Formula) impact: The amount of GHG emissions reduction credited through the recycling of materials and components
Initiatives for Internal Carbon Pricing (ICP)
Honda has started operating ICP system from 2023 to further accelerate the reduction of CO₂ emissions at its Japanese business sites. (Carbon price: 15,000 yen per metric ton of CO₂)
The amount of carbon reduction is converted into a monetary value that can be used as one of the factors when making capital investment decisions.
At overseas sites, Honda has selected representative sites in each region and begun the operation of ICP system mainly in production sites.