Metrics and Targets, Global Management
List of Company-wide Environmental Targets (KGI/KPI)
- A dash (“–”) indicates items for which no targets have been set, as the relevant metrics were newly established.
- The target applies to Honda’s Scope 1 and Scope 2 GHG emissions (market-based).
- This target covers CO₂ emissions included in Honda’s Scope 3 (Category 11).
- Industrial water withdrawal: The annual amount of water withdrawn that is directly used in product development and manufacturing in corporate activities. This indicator excludes domestic water use, such as drinking water and handwashing facilities for associates, which are provided as safe water, sanitation facilities, and hygiene practices (WASH: water, sanitation, and hygiene) under the Alliance for Water Stewardship (AWS) standard, which requires the provision of hygienic water and facilities.
- Industrial waste: The annual amount of waste generated in product development and manufacturing in corporate activities. This indicator excludes resources to be reused because of their small environmental impact.
During the reporting period and the period from the end of the reporting period to the date of issuance of this report, we reviewed our targets with a target year of the fiscal year ending March 31,2031.
With respect to the reduction rates of product CO₂ emissions intensity, the targets were revised from 34.0% to 15.0% for the motorcycle business, from 27.2% to 13.6% for the automobile business, and from 28.2% to 13.4% for the power products business. These revisions reflect our reassessment of our powertrain portfolio and product launch plans in response to changes in market conditions and developments in trade policies. In addition, while we have previously used the sales ratio of electrified products as a management indicator, we determined—after taking into account the increasing complexity of market conditions, customer needs, and business viability—to shift from using the sale of electrified products as a measurement toward contributing to the reduction of greenhouse gas emissions across society as a whole, which is a more fundamental approach. Based on this approach, we will proceed with the assessment of specific target levels for the fiscal year ending March 31,2036, on the premise of shifting our management indicators from the sales ratio of electrified products to the reduction rate of total greenhouse gas emissions across the entire life cycle.
Furthermore, we have established more fundamental and challenging targets aligned with our desired 2050 state related to efficient utilization of resources. For the fiscal year ending March 31, 2031, we revised our KGI from “waste reduction rate (compared to BAU*6)” to “reduction rate of industrial waste (incineration and landfill disposal) (compared to FYE Mar. 31, 2020)” and from “water intake reduction rate (compared to BAU)” to “reduction rate of industrial water withdrawal (compared to FYE Mar. 31, 2020)”. In addition, we newly established “usage rate of recycled and biomass materials” as a KPI and set a corresponding target level.
*6 Business As Usual: Estimated values assuming that no reduction measures or initiatives are implemented, based on the production plan for the fiscal year ending March 31, 2031.
Environmental Management Structure
Honda is promoting Group-wide efforts to realize a society with zero environmental impact throughout its life cycle.
Honda’s long-term management policies and medium-term management plan are approved and resolved by the Executive Council and the Board of Directors.
The Board of Directors is the final supervisory body for important matters, covering actions to address climate change issues. The Executive Council deliberates in advance on matters to be resolved by the Board of Directors and discusses important management matters within the scope of authority delegated to it by the Board of Directors.
In response to the need to address various risks associated with business activities and to oversee business operations for the sustainable development of society and Honda, Honda has designated knowledge in ESG and Sustainability, including ability in addressing climate change issues, as one of the necessary skills and appointed directors accordingly.
Each Operation, Unit and subsidiary formulates and promotes action plans and measures based on the company-wide long-term management policies and medium-term management plan, and important matters are reported and approved at the Executive Council as appropriate. Respective Business Operations and Regional Operations formulate action plans and promote measures based on the global medium- to long-term environmental policies, based on information shared at the Global Environmental Secretariat Meeting (Secretariat: Corporate Strategy Operations). Each Regional Operations holds a Regional Environmental Meeting to promote the PDCA cycle within Regional Operations. Each Business Operations monitors regional progress and promotes the PDCA cycle within Business Operations. The Corporate Strategy Operations monitors the progress at Business Operations and Regional Operations and considers revisions to the medium- to long-term environmental policies and targets as necessary. Important matters are reported and approved at the Executive Council and reported and resolved at the Board of Directors. For important cross-departmental issues such as addressing climate change issues, a cross-departmental task force is formed to consider and propose action plans and measures as appropriate, and important matters are reported and approved at the Executive Council.
Compliance and risk management related to the environment, including climate change, are operated based on the Company’s basic policies for the development of internal control systems.
Honda ESG Report 2026｜P162 Basic Approach
Toward the realization of a society with zero environmental impact, Honda’s Board of Directors and Executive Council regularly monitor the progress of KGIs for which the Board of Directors is responsible for supervision and KPIs for which the Executive Council is responsible for execution, thereby reinforcing management governance. Please refer to Item 6 B. “Compensation.” in the Form-20F for details of the executive remuneration system linked to financial and non-financial indicators.
Form-20F | https://global.honda/en/investors/library/form20_f.html
Environmental Management Structure
Environmental Management System
Honda’s existing global vehicle assembly and product assembly plants have acquired ISO 14001, an international certification for environmental management systems (as of March 2026). Therefore, the coverage of environmental management systems is virtually 100%.
Honda will continue to promote activities to acquire this certification.
Current Status of Compliance with Environmental Regulations
In accordance with Honda’s Environment Statement, the Company has introduced environmental management systems at all business sites and in each division. Along with promoting continuous efforts to improve environmental performance, it strives to comply with its own voluntary environmental standards, which are more stringent from an environmental perspective than any national or local regulations.
In the last five years, Honda has not committed any serious noncompliance with environmental laws and regulations, paid substantial fines/sanctions in breach thereof, orrecorded any major chemical releases.
In addition, no environment-related complaints were received through the official complaint resolution program.