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2013 Environmental Annual Report Honda South America Reducing and Reporting Environmental Impacts in Regions Worldwide Driven by our philosophy of building products close to the customer, Honda has manufacturing operations in regions worldwide In fiscal 2013, we delivered 26 million products to customers around the world Always conscious of the environmental impact of our operations, we are working hard to take environmental responsibility to ever-higher levels around the world In 2010, we established a new set of CO2 emission reduction targets for our products, aiming by 2020 to provide “good products to customers with speed, affordability, and low CO2 emissions.” As we seek to realize the Honda Environmental and Safety Vision—to realize the joy and freedom of mobility and a sustainable society where people can enjoy life—based on these targets, we are accelerating global efforts to address climate change, energy issues, and other environmental challenges And amidst increasing global pressure on companies to disclose their environmental impacts, we are actively working to disclose the environmental performance and initiatives of each region, the highlights of which are compiled yearly in regional environmental reports Annual unit sales by region (FY2013), and regional environmental reports Automobiles Latest data as of March 31, 2013 Annual unit sales Annual unit sales Environmental report Environmental report Annual unit sales 248,000 248,000 336,000 336,000 1,122,000 1,12,000 Environmental report Annual unit sales Environmental report 596,000 1,656,000 1,298,000 280,000 Power products: included in figure for Asia/Oceania Due out September 2013 Due out September 2013 2,614,000 Due out September 2013 Due out October 2013 • China • Europe/Middle East/Africa •Europa e África • North America • Japan Environmental report Annual unit sales 716,000 218,000 • Asia/Oceania 308,000 • South America *See below for more information on Japan business Annual unit sales Annual unit sales Environmental report Environmental report 543,000 164,000 11,962,000 1,589,000 1,886,000 • Information on Honda in Japan 143,000 ■ ■ Unconsolidated ■ Consolidated ■ Unconsolidated ■ ■ Unconsolidated ■ (¥ ■ billion) Unconsolidated ■ Consolidated (¥ billion) (¥ billion)Unconsolidated ■ Consolidated Consolidated ■ Unconsolidated ■ Consolidated Consolidated 15,000 15,00015,000 (¥ (¥ billion)(¥ billion) billion) Due out August 2013 800 800 ■ Unconsolidated ■ Consolidated ■ Unconsolidated ■ ■ Unconsolidated ■ Consolidated Consolidated (¥ (¥ (¥ billion) billion) billion) Due out August 2013 Company overview 600 800 500 10,000 10,00010,000 600 600 400 400 5,000 5,000 5,000 200 200 Financial information 0 Capital: ¥86.067 billion (as of March 31, 2013) Net sales Operating income 15,000 15,000 ■ Unconsolidated ■ Consolidated (¥ billion) ■ Unconsolidated ■ Consolidated ■ Unconsolidated ■ Consolidated 15,000 (¥ billion) (¥ billion) ■ Unconsolidated ■ Consolidated ■ Unconsolidated ■ Consolidated ■ Unconsolidated ■ Consolidated (¥(¥ (¥ billion) billion) billion) 2012 2013 (FY) 10,000 10,000 200 600 400400 400 300300 400 10,000 600600 600 500 300 200200 200 5,000 200200 and household gas engine cogeneration units 0 2009 2010 2011 2012 2013 (FY)(FY) 2009 2010 2011 2012 2013 150,000 150,000 0 -100 -2,000 -100 2009 2010 2011 2012 2013 (FY)(FY) 2009 2010 2011 2012 2013 (FY) 2009 2010 2011 2012 2013 2009 2010 2011 OtherOther Asia Asia 18.3% Asia 18.3% 5.7% 18.3% 13.5% Motorcycles13.5% 5.1% 2009 2009 2010 2011 2012 (FY) (FY) 2010 2011 2012 2013 2013 7.1% NorthNorth America America Japan Japan Automobiles Automobiles 77.9% 77.9% Other 7.1% 7.1% Europe Europe 5.1% 5.1% Europe 13.5% 50,000 2012 2013 (FY) Net sales by region (consolidated: FY2013) Power products Power productsFinancial services Financial services and other other and 50,00050,000 -100 2009 2010 2011 2012 2013 (FY) 2009 2010 2011 2012 2013 (FY)(FY) 2009 2010 2011 2012 2013 2012 2013 (FY) 100,000 -2,000 -2,000 100 (consolidated: FY2013) Motorcycles Motorcycles 2.9% 100,000 100,000 100 200 5.7% Power products Financial services 5.7% 2.9% and other 2.9% 150,000 200 100100 5,000 5,000 300 200 100 Net sales by operational area 200,000 Unconsolidated ■ Consolidated ■200,000 200,000 (¥ billion) 600600 800 400400 0 200 2009 2010 2011 Number of associates ■ Unconsolidated ■ Consolidated 500500 800800 Scooters, mini-bikes, motorcycles, and ATVs marine outboard engines, CIG thin film solar cells, 300 ■ Unconsolidated ■ Consolidated ■ Unconsolidated ■ Consolidated (¥ billion) ■ Unconsolidated ■ Consolidated (¥ billion) ■ Unconsolidated ■ Consolidated Major products: Standard-sized vehicles, compact vehicles, Power product engines, lawnmowers, 400 300 -100 -100 -2,000 -2,000 2009 2009 2010 2011 2012 (FY) (FY) 2010 2011 2012 2013 2013 2009 2009 2010 2011 2012 (FY) (FY) 2010 2011 2012 2013 2013 2009 2009 2010 2011 2012 (FY) (FY) 2010 2011 2012 2013 2013 -100 -2,000 2009 2010 2011 Net income Sales: Consolidated: ¥9.878 trillion (Results of FY2013) and mini-vehicles 500 400 400 President & CEO: Takanobu Ito Consolidated subsidiaries: 369 (as of March 31, 2013) 600 500 100 400 Head office: 2-1-1 Minami Aoyama, Minato-ku, Tokyo 107–8556, Japan Unconsolidated: ¥3.244 trillion 600 600 *Report covers from fiscal 2012 are shown for all regions except Japan Company name: Honda Motor Co., Ltd Established: September 24, 1948 Power products and other Motorcycles North 38.6% 38.6% America 30.9% 30.9% 38.6% Automobiles Japan 77.9% 30.9% 2009 2010 2011 2012 2013 (FY) 2009 2010 2011 2012 2013 (FY) *See Honda Annual Report (print/PDF) for detailed financial information ■ Unconsolidated ■ Consolidated ■ Unconsolidated ■ Consolidated 200,000 200,000 150,000 150,000 ■ Unconsolidated ■ Consolidated 200,000 Power products Power products Financial services Financial services and other and other 2.9% 150,000 2.9% Motorcycles Motorcycles 5.7% 5.7% Power products andAsia other Asia 2.9% 18.3% 18.3% Motorcycles Other Other Financial services 7.1% 7.1% 5.7% Other Asia 18.3% 7.1% Honda South America - 2013 Environmental Annual Report Contents Honda South America - 2013 Environmental Annual Report Reducing and Reporting Environmental Impacts in Regions Worldwide Contents Honda’s environmental activities worldwide and in Top Message Feature - Being “A Company Society Wants to Exist” in All Corners of the World South America – Argentina, Brazil, Chile, Colombia, Peru and Venezuela 12 Feature - The New Yorii Plant, an Experiment in Satoyama Restoration Direction 14 The Road to a Healthier Environment The Road to a Healthier Environment 15 Honda Environment Statement / Honda Environmental and Safety Vision 16 Pursuing the Honda Environmental and Safety Vision 21 Biodiversity Initiatives 24 Progress in Meeting Environmental Targets 27 Global Environmental Management 33 Global Environmental Impact 34 Regional Environmental Topics 37 Honda South America 39 Message from the President of Honda South America 40 Business Activities Honda South America 42 Product Development 45 Purchases | Green Purchasing 46 Production | Green Factory The current report and other information on the 62 Transportation | Green Logistic subject may be found at the website: 66 Sales and Services | Green Dealer 67 Rs - Reducing, Reutilizing, Recycling 68 Administration | Green Office 70 Environmental Awareness-Building Actions 75 Acknowledgements 76 Certified Green Dealers In Brazil Global information: Period related to the activities undertaken between April 2012 and March 2013 (FY 2013 in Japan) Information on South America: Period related to the activities undertaken from January 1st to December 31st, 2012 Publication date: Global Global initiatives August 2013 Environmental Management and Sustainability Department – Honda South America Rua Dr José Áureo Bustamante, 377 Santo Amaro - Sao Paulo (SP) - Brazil Zip Code 04710-090 Honda South America Initiatives in South America www.honda.com.br/socioambiental Please, forward consultations, comments or suggestions to: gestaoambiental_sustentabilidade@honda.com.br Business Activities Honda South America - 2013 Environmental Annual Report Top message In 2010, Honda announced its direction for the decade leading up to 2020: to provide “good products to customers with speed, affordability, and low CO2 emissions.” The Honda Environmental and Safety Vision—to realize “the joy and freedom of mobility and a sustainable society where people can enjoy life”—was established based on this direction Providing the joy and freedom of mobility has been Honda’s aim in the development of personal mobility products since the company’s founding The joy of mobility is not just the pleasure of driving your own car or motorcycle It’s also the excitement of making discoveries and realizing dreams through the freedom mobility provides Realizing a sustainable society where people can enjoy life, on the other hand, will require us to focus corporate resources on addressing climate change and energy issues as top priorities To realize the two components of our Environmental and Safety Vision, we will lead the industry in offering outstanding environmental and safety performance with products and technologies that proudly bear Honda’s identity To thrive in an ever-changing global economy and market, Honda must transition to a new global organizational structure that, in every region (the six regions into which Honda has organized its worldwide operations), consistently rolls out competitive products that target local needs before other companies Specifically, we need to finish the work of assembling an organization that is globally optimized for producing the best products for all of our customers This includes building development capacities for responding quickly to market needs, enacting product design and procurement structure reform, and further improving production efficiency, all while adapting these organizations and facilities to national and local industrial infrastructure in rapidly growing economies in developing nations as well as in mature economies The same goes for environmental management Honda puts climate change and energy at the top of the list of global environmental issues that it needs to address To respond to the environmental laws, standards, and challenges unique to each country and region, we believe reducing environmental impacts based on firm regional autonomy is the most appropriate business organization for Honda Direction Striving to Realize the Joy and Freedom of Mobility and a Sustainable Society where People Can Enjoy Life Global operational reform Awareness of the challenges: 2013 a year of action Last year, we announced estimates of all greenhouse gas (GHG) emissions that resulted from Honda business activities in fiscal 2012 These figures, calculated in accordance with the Greenhouse Gas Protocol, the most widely used GHG accounting and reporting standard worldwide, included data on Scope (which includes emissions from use of sold products), making Honda the first automaker in the world to release emissions data covering its entire value chain In fiscal 2012, Honda emitted the equivalent of 225 million tons of CO2 Of that, 196 million tons—or 87%—came from the use of Honda products sold in that year (which includes GHGs emitted across their lifespans now and into the future) Clearly, improving the fuel efficiency of products must be our core strategy for reducing CO2 emissions, but we think that taking all available actions to reduce emissions—regardless of the size of their impact—is the responsible approach to take as a corporate citizen Until last year, Honda’s focus in this area was on doing research to understand the size of our environmental footprint The next stage will include monitoring and managing GHG emissions across our value chain and devising and implementing specific strategies to reduce them, such as expanding hybrid options to our entire lineup and commencing operation of the environmentally advanced Yorii Plant Expanding this approach beyond CO2 emissions to include all types of environmental pollutants, improving monitoring accuracy, and realizing further reductions, will be our environmental management policy for the years ahead June 2013 Takanobu Ito President & CEO Chairman, Honda World Environmental and Safety Committee Locations: Forest in Hello Woods, located next to the Twin Ring Motegi speedway Honda South America - 2013 Environmental Annual Report Feature Honda South America Regional Environmental Committee Chairman Masahiro Takedagawa “Next year we will begin operating a wind farm that will satisfy all the electricity needs of our automobile plant in Brazil.” Being “A Company Society Wants to Exist” in All Corners of the World Honda’s six regional environmental committee chairmen look back on fiscal 2013 and forward to the years ahead Honda manages its global production and sales networks through an organization divided into six regions: North America, South America, Europe, Asia & Oceania, China, and Japan Six regional environmental committees, one for each region, set their own policies and plans for environmental initiatives based on the global direction and supervise and evaluate the divisions that carry out these plans For the publication of this year’s report, the six committee chairmen were gathered and asked to provide a review of activities in fiscal 2013 as well as their future outlook for global operations Europe North America China Japan Asia & Oceania South America Tetsuo Iwamura Honda North America Regional Environmental Committee Chairman Masahiro Takedagawa Honda South America Regional Environmental Committee Chairman Manabu Nishimae Honda European Regional Environmental Committee Chairman Hiroshi Kobayashi Honda Asia & Oceania Regional Environmental Committee Chairman Seiji Kuraishi Honda China Regional Environmental Committee Chairman Sho Minekawa Honda Japan Environmental Committee Chairman What is each region like? First, please tell us what defines your region in terms of market characteristics and environmental challenges • Iwamura: North America is in many ways an environmentally advanced region with very eco-conscious public and private sectors This is true not only of the U.S., which has the most stringent environmental regulations in the world, but also Canada and Mexico, which tend to follow U.S regulations So as a whole, North America is a region that’s rather tough on environment requirements At the center is the U.S.; its government makes decisions based on hearings with various private sector interests Honda engages in a wide range of communication activities to take advantage of these opportunities and convey to the government our stance and how companies should act on key issues, and get those ideas reflected in long-term environmental policies • Takedagawa: South America’s largest market, Brazil, has for the last 40 years been promoting the use of sugar cane-derived bioethanol fuel as a national policy During that time, flex-fuel cars and motorcycles have moved into the mainstream Other innovative efforts include the development of the world’s largest environmental protection system, a system to monitor the Amazon rainforest using satellite technology, and the passing of an environmental crimes law, which is unusual on a global level National environmental programs outside Brazil vary widely, so today I would like to talk mostly about Brazil, which is the most important market for Honda in South America Interviewer: Michio Shinohara, General Manager, Environment & Safety Planning Office Honda North America Regional Environmental Committee Chairman Tetsuo Iwamura • Nishimae: Europe has watched its automobile market contract in a deteriorating economic environment, from 16 million units in 2006 to less than 12 million units last year Consumers are wanting smaller and more fuel-efficient vehicles Another notable trend in recent years has been the dominance of diesel, which now accounts for more than 55% of the market Diesel engines with a capacity of 1.6 liters or less are particularly popular among fuel-efficient models With the EU targeting a mandatory CO2 emission limit for passenger cars of 95 g/km—one of the lowest in the world—by 2020, environmental regulations across Europe are also becoming increasingly strict • Kobayashi: Asia and Oceania is a very broad region that extends from Pakistan in the west to South Korea in the east, and as far south as Australia and New Zealand As a result, a wide divergence in environmental awareness between countries is one characteristic of this region Within that context, the automobile market in India and other emerging countries is growing quickly, which has been met with moves in these countries to introduce more progressive environmental regulations This region also has the highest sales of Honda motorcycles, so what we to the environmental performance of motorcycle products here will have a large impact on Honda elsewhere • Kuraishi: China is now the largest mobility market in the world, selling roughly 20 million cars and 25 million motorcycles a year This has led the national government to set very high environmental targets and ordinary people to take more interest in environmental issues The actual response to these issues is still inadequate when you look at, say, the problem of fine-particle pollution, but the environment is, as you would expect, a major pillar of Honda’s business in China Looking to the future, we are actively expanding the application of hybrid technologies for automobiles and electronic fuel injection (see note) for motorcycles, and aim to be the most environmentally responsible automaker as we continue growing in this market • Minekawa: Japan’s triple disaster of two years ago: the earthquake, tsunami, and nuclear meltdown, have had a huge impact on the minds of Japanese people Since then, customer expectations with regard to sustainability and renewable energy have risen substantially, meaning that companies who are failing to respond decisively to these expectations will be left behind Furthermore, local public transport systems are going bankrupt more often due to the decline of Japan’s rural population, which is increasing the need for personal vehicles as a means of transportation Honda hopes to offer viable solutions to issues like these Note: Programmed Fuel Injection (PGM-FI) “In North America, we’ve begun the highly consequential mission of trying to meet the new fuel efficiency standards set for 2025.” Honda South America - 2013 Environmental Annual Report Honda Asia & Oceania Regional Environmental Committee Chairman Hiroshi Kobayashi “Supplier selection and development is the key to expanding local production and procurement in Asia.” Fiscal 2013 in review Thank you for your informative description of each region Next, what were the most important events that happened in your region in fiscal 2013, on both the business and environmental fronts? • Iwamura: North America launched in April 2012 a Green Dealer program for Acura dealers and Honda automobile dealers in the U.S The program is meant to encourage a stronger commitment to environmental conservation by awarding silver, gold, or platinum status to dealers based on their environmental efforts and achievements By the end of fiscal 2013, 40 dealers were awarded, and we plan to increase this to 100 dealers by the end of fiscal 2014 We also established a partnership with a company to lease solar equipment to our customers dealers to encourage them to install solar In production, our transmission plant in Ohio announced in January 2013 plans to develop and begin operation of a wind farm by the end of 2013 The wind farm is expected to cover about 10% of the plant’s electricity needs • Takedagawa: In South America, we held two regional environmental committee meetings where we discussed environmental performance at production sites in each country and exchanged ideas for improvement An increasing number of sites are using smart meters and switching from liquid paint to powder coat Fuel-efficient products were released, including the Civic and CR-V, both equipped with Eco Assist, and the PCX150 scooter with an idling stop system In transportation, we worked to reduce both cost and CO2 emissions by increasing the number of motorcycle units per land shipment and by shifting to marine transport • Nishimae: In Europe, we were excited to introduce a small, 1.6-liter diesel engine— which was a highly anticipated component business-wise—in the Civic, which also marked the debut of Earth Dreams Technology in the region In spring of last year we started demonstrating a new electric scooter in Barcelona, Spain, and we also released a robotic lawn mower under the name Miimo We’re making continued efforts to reduce CO2 emissions, for example by installing solar panels at plants and parts Honda European Regional Environmental Committee Chairman Manabu Nishimae 10 warehouses, and by searching for more efficient routes and modes of transport within the complex European distribution system • Kobayashi: Asia & Oceania posted spectacular business results in fiscal 2013 Automobile sales volume exceeded prior year results by a wide margin in all countries and set a new all-time record for the region Thailand, India, Indonesia, and a few other countries posted their own record sales A new power product sales record was also set for the region Environmentally, we’ve been pushing hard to reduce CO2 emissions from product use, for example by expanding our lineup of electronic fuel injection-equipped motorcycles in Indonesia and raising fuel efficiency levels for new motorcycle models in Thailand and India For automobiles, we began local production of hybrid vehicles in Thailand and Malaysia • Kuraishi: China saw its second consecutive year of declining automobile sales This was largely due to impacts from the disaster in Japan and flooding in Thailand two years ago, and the Senkaku Islands issue last year To promote the popularization of hybrid vehicles, we introduced the Insight, CR-Z, and ILX hybrid, and set the stage for fullscale adoption of eco-cars by hosting test-drive events and demonstrating the Fit EV in Guangzhou Contrastingly, we succeeded in expanding our share of the motorcycle and power equipment markets In production, Dongfeng Honda launched a second plant and Guangqi Honda a third production line, both of which were designed for better environmental performance and associate comfort, by recycling waste heat and using more natural light in offices, among other improvements • Minekawa: Japan achieved a significant increase in automobile sales in 2012, the driving force behind which was the release of the first mini-vehicle in Japan to feature an Earth Dreams Technology powertrain We also worked on expanding our hybrid lineup, and the customer response to these efforts showed us that environmental awareness and the demand for better fuel efficiency is getting stronger and stronger We also increased solar generation capacity at Honda dealers and added a web page showing in real time how much solar electricity is being generated at “In Europe, we will bolster our position by revamping all automobile engines over the next three years.” Honda Japan Environmental Committee Chairman Sho Minekawa “R&D, production, and sales divisions need to work together and figure out how to get satisfying products to more people.” Honda operating sites and dealerships, which is a major step forward in communicating effectively with our external stakeholders in Japan These achievements will form the basis for company efforts in fiscal 2014 Strategies and ambitions for the future It appears that progress is being made in both business and the environment in each region, with the right balance being struck between the two In closing, please tell us your region’s action plan for business and the environment in the years ahead • Iwamura: In North America, we’ve begun the highly consequential mission of trying to meet the new fuel efficiency standards set for 2025 If we don’t clear these demanding targets, we won’t be able to continue doing business Not only we need to strengthen the competitiveness of our hybrid lineup but we also need to dramatically increase the fuel efficiency of our gas-engine models Companies that accomplish this efficiently, quickly, and cheaply will be the ones to flourish in this market For Honda to flourish, we will bring to bear all the power we have as a company, based on close coordination between front-line associates in development, manufacturing, and sales • Takedagawa: In South America, we adopted the South America Honda Environment Statement at a regional environmental committee meeting last February The declaration articulates our decision to put to use all human creativity and wisdom and our very best to achieve environmental impact reductions and sustainable business activities As a way of acting on our promise, we plan to develop enough wind capacity to satisfy all the electricity needs of our automobile plant in Brazil, which produces 160,000 units per year The wind farm is scheduled to go into operation in September 2014 (see page 49) For products, we will market new ecoconscious motorcycle and automobile engines under the name Flex One and engage in branding activities to show how Honda is an environmental leader • Nishimae: In Europe, we plan to meet customers’ Honda China Regional Environmental Committee Chairman Seiji Kuraishi needs for low emissions, high fuel-economy by revamping all automobile engines over the next three years We hope to maintain our strong motorcycle reputation in Europe, the biggest market for sport-touring crossover bikes, by leveraging the fuel-efficient NC700 series Honda’s approach in Europe for the coming years will be about bolstering our position as a company society wants to exist while thinking about the environment and offering advanced environmental technologies in all products— automobiles, motorcycles, and power equipment • Kobayashi: Asia and Oceania is expected to continue showing impressive growth, but environmental regulations in a number of countries will become increasingly strict To get the upper hand in this environment we need to expand local procurement and production and find and develop new local suppliers The key to future business is developing suppliers that can share Honda’s position on the environment and will work with us to reduce impacts Although awareness and activity vary between countries, we hope to speed up progress by actively promoting the sharing of best practices and bringing everyone up to the same level • Kuraishi: In China, Honda takes it as its mission to actively increase penetration of eco-conscious engines, the most prominent being the hybrid engine To that end, we are making preparations to begin local hybrid production within the next three years As we aim to become the environmental leader and offer the most fuel-efficient products in each category, we will also strive to deliver outstanding value that satisfies our Chinese customers in areas beyond environmental performance as well By doing so, we hope to be a brand that is well-loved and that encourages positive excitement for the future • Minekawa: In Japan, public expectations surrounding renewable energy and the environment have risen tremendously Honda’s technological answer to those expectations actually already exists All that’s left is to determine how affordably we can provide the technologies to our customers R&D, production, and sales divisions need to work together to figure out how to deliver good products to customers with speed, affordability, and low CO2 emissions Solving this problem is an important key to achieving higher growth for our business Thank you all for your time today “In China, we’re making preparations to begin local hybrid production within three years.” Honda South America - 2013 Environmental Annual Report 11 Feature The New Yorii Plant, an Experiment in Satoyama Restoration Some of the rare animal and plant species living near Yorii Plant The area between the Yorii Plant and nearby Ogawa Plant forms a broad ecosystem that was preserved to keep wildlife populations from being separated Restoration and conservation efforts are happening throughout this area Welcome Center Green corridor Top: Rare animals - Tokyo salamander (Hynobius tokyoensis), Stone loach (Lefua echigonia), Japanese firefly (Luciola cruciata), Great purple emperor (Sasakia charonda) Bottom: Rare plants - Hakuun-ran (Vexillabium nakaianum), Tokyo wood fern (Dryopteris tokyoensis), Hardy orchid (Bletilla striata), Japanese bugbane (Cimicifuga japonica) Biotopes and other areas for conserving and creating new habitat for rare species were included in the plant construction plans Biodiversity surveys and management will be conducted regularly even after the project is over Wall-mounted painting robot East biotope Rooftop solar array under construction East biotope Last March, Honda finished construction on a new 250,000-vehicle plant in Saitama, Japan Set to begin operating in July, the Yorii Plant is not only a state-of-the-art manufacturing compound boasting world-leading energy efficiency and the most advanced equipment available, but, with more than 30% of its land area devoted to vegetation and riparian habitat, it is also ecologically responsible, specially designed for building harmonious relationships with the surrounding human and biological communities Yorii designated as leader of global Honda manufacturing In July 2010, Honda announced that the Yorii Plant will be indispensable in efforts to establish the highly sophisticated next-generation manufacturing technologies necessary for the production of environmentally responsible products and development of low-carbon manufacturing Equipped and designed to function as one of the leader plants in Japan of Honda’s manufacturing sites in 27 countries, the Yorii Plant is absolutely packed with cutting-edge environmental technologies • Product specialization yields 30% reduction in energy use Customizing the plant for production of compact vehicles— such as the new Fit to be released this year—and loading it with dedicated machinery and technologies has resulted in an extremely efficient production system In fact, combined with the latest energy conservation and management technologies, this system uses 30% less energy per unit1 • 2.6 MW of solar power—the most of any auto factory in Japan Installation of Honda Soltec-brand CIGS thin-film solar panels on rooftops and other surfaces is underway, with plans to increase total generation capacity to 2.6 MW by August 2013—the most of any auto factory in Japan This is enough to power 459 typical Japanese homes2, and should cut CO2 emissions by roughly 1,200 tons per year • Produces 28% of the energy it uses through cogeneration Faced with nationwide restrictions on electricity use following the 2011 disaster, the Yorii Plant was equipped with a natural gas-powered cogeneration system that will meet 28% of its electrical and thermal energy needs, reducing the plant’s peak power demand by 45% Using energy from the system, which is about twice as efficient as energy from the grid, will cut emissions by roughly 3,000 t-CO2 per year • New paint technologies reduce CO2 emissions by 40% Body coating processes at the Yorii Plant will use a newly developed paint technology called Honda Smart Ecological Paint as well as a newly developed wall-mounted robotic painting system These innovations result in a 40% shorter coating line and 40% fewer CO2 emissions compared to conventional lines Toward better relationships with life of all kinds The Yorii Plant is not just about cutting-edge hardware It is also a testing ground for pioneering efforts in community engagement and environmental conservation Efforts here will serve as a model for other Honda plants around the world • Built to support healthy, active ecosystems Before the plant’s construction, Honda hired experts to survey the site and conduct an environmental assessment Their survey showed that the site and the area around it was once an expansive satoyama environment, one that in modern times had fallen into disuse Meanwhile, the environmental impact assessment showed that the construction of a plant here would have, as expected, a sizable impact on the surrounding environment Facing these findings head-on, Honda decided that the Compared to the Saitama Factory’s Sayama Plant Honda calculation (annual electricity use of typical Japanese home: 5,650 kWh; CO2 emission factor: 0.464 t-CO2/MWh, fiscal 2011 figure published by Tokyo Electric Power Co., Ltd.) 12 Direction West biotope Reintroducing rare species Rare species were captured, bred, and reintroduced to the biotope under expert guidance Surveys later showed the species were establishing themselves and thriving The east biotope was publicized at a press conference in April 2013 most responsible thing to as a company that strives to operate in harmony with its surroundings would be not only to minimize the impact of the plant’s construction on the environment but to stimulate the natural environment through the creation and continued maintenance of new habitat, and restore the satoyama to its original condition habitat for rare species From the habitats of the Tokyo salamander, stone loach, and Japanese firefly—three species that have difficulty relocating and were thought to be particularly vulnerable to the construction—that could not be saved, individuals were captured and bred indoors and then later reintroduced to the biotopes • 16,000 m2 of life-sustaining biotope Satoyama are rural areas in Japan where humans have actively managed and taken care of the natural environment while sustainably benefiting from the services they provide The neglect of a satoyama environment causes it to deteriorate, adversely impacting the wildlife it supports Honda undertook to conserve and even create new habitats for animals and plants living in the site and the surrounding area, particularly species endemic to Yorii We dedicated 326,000 m2, or 34%, of the site’s 950,000 m2 to vegetated land and riparian habitat for wildlife The east and west biotopes, which comprise mixed woodlands, streams, rice paddies, and wetlands, total 160,000 m2 and are given central importance in Honda’s effort to cultivate a diverse ecosystem at the Yorii Plant Special care was also taken to ensure that plants and animals can move freely from these biotopes to other vegetated land and wetland on site, and farther to unmanaged areas beyond the plant This continuous biological community forms a green corridor1 that extends as far as the Ogawa Plant about two kilometers away • Conserving rare plant species Rare plant species, such as the Tokyo wood fern, Hardy orchid, and Japanese bugbane, were conserved via transplantation The Hakuun-ran, a type of orchid that was on Saitama Prefecture’s endangered species list at the time, was given special attention The population was preserved by propagating it through artificial pollination and growing them in sterile culture media Surveys show positive trend in biodiversity conservation • Conserving rare animal species During construction, Honda took utmost care to preserve • Increase in rare species confirmed As a result of these efforts, surveys confirmed that the number of rare animal and plant species on site has been increasing since before construction of the plant • Rare animals - 69 species (2007) - 73 species (2010-2012) • Rare plants - 29 species (2007) - 35 species (2010) • Number of rare species confirmed per area of vegetated land species/ha (2007) - 15 species/ha (2010) In a program developed by the Japan Business Initiative for Biodiversity and Tohoku University for measuring the success of eco-conscious land use projects and conservation initiatives2, the Yorii Plant scored an impressive 84 out of 100 By continuing to support and expand conservation initiatives like these, Honda will strive to build relationships of symbiosis and mutual growth between the Yorii Plant and the surrounding communities An unbroken stretch of wildlife habitat preserved within a developed area A 100-point self-assessment developed for evaluating the contribution of a land use project to biodiversity conservation, as measured for example by the area, quality, and organizations and systems dedicated to management of vegetated land Honda South America - 2013 Environmental Annual Report 13 Direction The Road to a Healthier Enviroment Honda global brand slogan (1) Based on our basic goal of reducing environmental impacts at every stage in the life cycle of our products, we (2) strive to realize the joy and freedom of mobility and a sustainable society where people can enjoy life We (3) recognize climate change and energy issues as the greatest challenge to our business, resource problems as a major challenge, and biodiversity as a serious concern We established (4) a future vision to achieve zero CO2 emissions, zero energy risk (through our energy management technologies), and zero waste to tackle these challenges, and announced and are now implementing concrete measures to this (5) for our products and (6) in our business activities Honda Environmental Statement Directions for the 21st century Creating the joys Expanding the joys Realizing the joy and freedom of mobility and a sustainable society where people can enjoy life Ensuring the joys for the Next Generation Shareholders 株主 and 投資家 investors Safety お客様 Customers Suppliers お取引先 We will make efforts to recycle materials and conserve resources and energy at every stage of our product’s life cycle from research, design, production and sales, to services and disposal As both a member of the company and of society, each associate will focus on the importance of making efforts to preserve human health and the global environment, and will his or her part to ensure that the company as a whole acts responsibly We will consider the influence that our corporate activities have on the local environment and society, and endeavor to improve the social standing of the company Established and announced in June 1992 Major challenge Resource problems Concern Biodiversity Honda Environmental and Safety Vision Honda’s vision for future operations Associates 従業員 Fundamental Beliefs Company Principle As a responsible member of society whose task lies in the preservation of the global environment, the company will make every effort to contribute to human health and the preservation of the global environment in each phase of its corporate activity Only in this way will we be able to count on a successful future not only for our company, but for the entire world We should pursue our daily business interests under the following principles: Environment Quality Dealers 販売会社 CSR Objectives Operations Greatest challenge Climate change and energy issues 地域 Local 社会 communities Society Honda global environmental symbol Assessment of environmental issues Initiatives, Open-minded, Challenge, Co-evolution Honda Environmental Statement We will make every effort to minimize and find appropriate methods to dispose of waste and contaminants that are produced through the use of our products, and in every stage of the life cycle of these products Honda Environmental and Safety Vision Striving to be a company that society wants to exist Honda has endeavored to solve environmental problems since the 1960s The company introduced the Compound Vortex Controlled Combustion (CVCC) engine, becoming the world’s first automaker to comply with the 1970 U.S Clean Air Act—a challenge thought by many at the time to be insurmountable In 1992, released the Honda Environment Statement to divulge the basic stance developed until that time to reduce environmental impacts at every stage in the life cycles of its products Today, the Honda Environment Statement is the foundation upon which we carry out all of our environmental efforts Direction Honda’s approach to environmental initiatives Honda Environment Statement Stakeholders Management policies Zero CO emissions using original renewable energy Honda’s goal by the year 2020 is to provide “good products to customers with speed, affordability and low CO2 emissions.” The company dreams of a society where everyone can go anywhere confidently and safely, therefore Honda’s Environmental and Safety Vision was defined, which provides the necessary guidance to develop environmental initiatives in order to achieve this goal The vision expresses the company’s strong desire to contribute to the sustainable growth of the society and harmony between people, in order to continue offering excitement through the products and services that provide personal mobility and better quality of life in general Honda Environmental and Safety Vision Honda Philosophy Zero energy risk Zero waste Realizing the joy and freedom of mobility and a sustainable society where people can enjoy life Honda Approach to CSR Propelled by the Honda Philosophy, we set our course on being a company that society wants to exist by sharing joys with people throughout the world Product-based initiatives Operations-based initiatives In working to achieve this vision, the following objectives shape our environmental initiatives around the world: • At each stage of a product’s life cycle (products, corporate activities), Honda aims to: - Minimize the use of fossil fuel and resources newly recovered from the Earth - Minimize environmental impacts, including greenhouse gas emissions • To reduce to zero greenhouse gas emissions from Honda products used for mobility and in people’s everyday lives We established “Blue Skies for Our Children” as a global environmental slogan expressing our commitment to more to realize our environmental and safety vision The graphic on the left symbolizes the global environmental slogan 14 Honda South America - 2013 Environmental Annual Report 15 P ursuing the Honda Environmental and Safety Vision Pursuing the Honda Environmental and Safety Vision In working toward the Honda Environmental and Safety Vision for the future, we objectively assess current environmental problems, analyze the kinds of risks and opportunities they represent, and respond in various ways Honda is promoting environmental initiatives in both business activities and product development, with the aim of eventually becoming a company with zero environmental impact Current assessment of environmental issues • Climate change and energy issues are our greatest challenges To continue doing business across the globe as a member of society and to make progress toward the Honda Environmental and Safety Vision, we must correctly assess the environmental issues that exist in the world today and the way in which Honda business activities relate to and influence them Accordingly, Honda has organized various environmental issues and identified those that pose the greatest risk to our business and stakeholders As a global corporation supplying mobility products, we see climate change and energy issues as the greatest challenges facing the company, followed by resource problems • Risks and opportunities relating to climate change and energy issues Honda’s response to the key challenges of climate change and energy issues does not just involve initiatives for environmental conservation While these environmental issues pose risks to our business continuity, they also present opportunities to create and expand new businesses Honda considers it essential to engage in business activities and decide and execute specific measures, having sufficiently assessed these risks and opportunities Accordingly, we have compiled all of the major opportunities and risks we currently expect from climate change and energy issues, and have been taking measures in response Air, water, and soil pollution Waste Resource Substances problems of concern Noise/ Vibration (e.g., electric/hybrid vehicles, solar power) Perceived opportunities Biodiversity climate change and energy issues Incentives to switch to products that use next-generation energy (emphasis on environmental performance) deployment of smart community (see note) technologies) Tighter regulation of product-related GHG emissions Direct operational risks from rising sea levels and extreme weather events Tighter regulation of operationsrelated GHG emissions Worsening resource problems Increasing reporting requirements for GHG emissions Impact on Honda Business Activitiess • Environmental management system To organize and analyze in a timely manner the impacts of various environmental issues on our business, particularly climate change and energy, and to develop and execute specific measures for addressing them, we have constructed a comprehensive global management system Based on this system, we have established our own CO2 emission reduction targets, considered to be the principal driver of climate change, and are carrying out various initiatives to realize the Honda Environmental and Safety Vision, such as stepping up efforts in each region across the globe to achieve these targets Assessment of business activity risks and opportunities • Measures based on risk and opportunity assessment To minimize the regulatory risk our products face as emitters of GHGs, we set forth CO2 emission reduction targets for our automobiles, motorcycles, and power products for 2020 Major initiatives to reduce CO2 emissions include the introduction of the new Earth Dreams Technology hybrid powertrains for automobiles, and the marketing of electric vehicles In response to changes in consumer awareness and growing energy diversification needs, we are continuing demonstration testing of electric mobility products in Japan, the U.S., and China for the establishment of a future smart mobility society We also are accelerating development projects, having completed the construction of a demonstration Honda Smart Home System house and a solar-powered hydrogen station in 2012 Note: Smart communities: Communities that, through broad partnerships between governments and private entities in the fields of next-generation energy infrastructure, telecommunications, traffic systems, and various products and services, are engineered to be more efficient, self-sustaining, and dynamic 16 • Giving shape to the Honda Environmental and Safety Vision Changing consumervalues Energy diversification (e.g., We clarify our understanding of such risks and opportunities relating to climate change and energy issues by analyzing them from three different perspectives: by product categories (motorcycles, automobiles, and power products), with a focus on our business and product development operations; by region, which is based on our unique regional management structure; and by function, such as production and sales The Honda World Environmental and Safety Committee assesses these risks and opportunities from a global perspective, the findings of which are then used by our Regional Operations (regional environmental committees), Business Operations and Functional Operations in the formulation of various management policies and strategies, such as in formulating and updating our medium-term plans for environmental initiatives We conduct this risk management process every six months and as needed Triple Zero: Toward a zero-impact Honda’s assessment of opportunities and risks of climate change and energy from a global perspective Honda’s general assessment of environmental issues from a global perspective •Risk management led by the World Environment and Safety Committee Direction Honda’s current recognition and response to environmental issues We are working to reduce GHG emissions in each region and domain of our business in order to minimize regulatory risk relating to emissions from each business site We compile the results of our efforts and make them known to the public once a year through this Environmental Annual Report We see the increasing scarcity of resources stemming from the response to climate change and energy issues as another major challenge In recognition of the risk of resources becoming depleted, more difficult to obtain, and more expensive to dispose of, we are developing alternative technologies, technologies to reduce, reuse, and recycle these resources, and we are also diversifying our supply chain In fiscal 2013, we actively engaged in measures such as establishing a scheme for the closed-loop recycling of rare earths (see note 2) extracted from nickel metal hydride batteries for hybrid vehicles Zero CO2 emissions using original renewable energy CO2 Emissions Energy Risk Waste Zero energy risk Zero waste • Triple Zero: The ultimate zero-impact society In order to realize the Honda Environmental and Safety Vision—our vision for the future—we are engaging with climate change, energy and resource issues through our technology and business activities, with the aim of creating a zero-impact society As a specific model for this, Honda has announced the Triple Zero concept • Zero CO2 emissions through renewable energy In response to climate change, our long-term goal is to deploy solar power and other renewable energy systems to bring well-to-wheel (see note 3) CO2 emissions down to zero To get there, we will develop the technologies needed to reduce and eliminate emissions, while at the same time steadily reducing product life-cycle emissions and emissions from business activities through a range of initiatives including product fuel-efficiency improvements and increasing efficiency in product transportation • Zero energy risk In response to energy issues, our long-term goal is to achieve zero energy risk by becoming energy self-sufficient through the use of solar-powered hydrogen stations, and by raising the efficiency of environmental management through innovations in energy management technologies To get there, we will reduce energy risk by cutting energy use through product fuel efficiency improvements, and by diversifying energy sources through the deployment of hybrid and other electromotive technologies Progress in this area will also lead to reduced risk for Honda’s business activities • Zero waste In response to resource problems, our aim is to completely close the loop for all resources and bring product lifecycle waste down to zero We will this by developing technologies to shift away from using precious resources, by developing and perfecting reduction, reuse, and recycling (3R) technologies, and by reducing water resource use By reducing and eliminating the use of hazardous chemicals as well as waste, we will strive to eliminate all materials from our products and business activities that have an adverse effect on human health and the environment • Triple Zero symbols In this year’s report, technologies, products, and initiatives that contribute to the realization of Triple Zero are marked with one of three Triple Zero symbols CO2 emission reduction/ elimination technology Waste reduction/ elimination or 3R technology Energy risk reduction/ elimination technology Note 2: Read more about the recycling of rare earths in Case17 of “Environmental Documentary Honda Face.” (http://world.honda.com/environment/face/2012/) Note 3: Well-to-wheel: Typically, all steps from extracting petroleum resources to their use as fuel in a vehicle It can also refer to the life cycles of non-petroleum energy resources, from generation to their final use in propelling a vehicle Honda South America - 2013 Environmental Annual Report 17 P ursuing the Honda Environmental and Safety Vision Honda Environmental Performance Standards (HEPS) and carbon reduction scenarios Scenarios for achieving zero CO2 emissions Hi Efficient Products Definition ② ③ Efficiency improvement technologies for internal combustion engines Environmental-innovation and energy-diversification technologies Renewable energy technologies ② Products designed to reduce or eliminate CO2 emissions by harnessing renewable energies or facilitating total energy management Performance parameter CO2 emissions from product use PCX150 Integra MSX CBR125R Dio110 XRE300 CB300R N-ONE Brio Accord PHEV CITY CNG ILX Compliant products (examples) Super Cub C50 Crosstour Civic Diesel Fit twist Flex EU9i GP LPG generator HSM1390 i hybrid snowblower GX390 engine Hi Efficient Products MCHO1.0 household cogeneration unit 40 Evolution of energy technologies Renewable energy use Energy management technologies 40 60 48 83 54 FCX Clarity Solar modules Graspa HRE330 electric lawnmower Monpal ML200 scooter Miimo 300 robotic lawnmower ■Power products ■Automobiles ■Motorcycle Power products 100 Models 100 80 66 60 Diversified energy use Automobiles Models 100 80 Fit EV Number of HEPS-compliant models by region ■ Hi Efficient Products ■ Innovative Products ■ Revolutionary Products Models 100 Kushi Salad CG FFV300 gas-powered tiller Global number of HEPS-compliant models Motorcycles EV-neo GX690 engine Life-cycle CO2 emissions Revolutionary Products Fossil fuel use Products that use unconventional energy sources or innovative environmental technologies that emit less CO2 emits less CO2 Revolutionary Products Products that generate or use energy from renewable sources or help manage the generation and consumption of such energy, thereby contributing to the elimination of CO2 emissions This category includes products that incorporate electromotive technologies or technologies for generating or using renewable energy (e.g., hydrogen fuel for automobiles, solar cells for power products) Innovative Products ③ Revolutionary Products internal combustion engine that Power products ① ① Innovative Products Products with a more efficient Innovative Products Products that emit less CO because they use an environmentally innovative technology or alternative energy source This category includes motorcycles that incorporate Honda’s patented Idle Stop System, automobiles that incorporate hybrid technologies or direct-injection engine technologies, and power products with a new electronic governor technology for regulating engine speed Alternative energy technologies include motorcycles and automobiles that can run on ethanol, and power products that can run on gaseous fuels Compliance is determined based on how well a product reduces or helps reduce CO emissions during use compared to preceding models Product-based scenarios for addressing climate change and energy issues Evolution of environmental technologies Direction • Examples of HEPS-compliant models released in FY2013 Automobiles • Honda Environmental Performance Standards To move our products along these scenarios, in fiscal 2012 we established the Honda Environmental Performance Standards (HEPS), an independent product classification and certification system designed to shed light on how Honda products are contributing to achievement of the three scenarios outlined above Under HEPS, products are grouped into three categories, each with its own requirements for certification By making all new Honda products compliant with one of the three standards, we will make steady progress toward realizing zero CO2 emissions Cumulatively, this brings the number of HEPS-compliant products to 66 motorcycle models, 83 automobile models, and 42 power product models, or 191 models in total By region, 67 models in Japan, 48 models in North America, 58 models in Europe, 28 models in South America, 63 models in Asia & Oceania, and 26 models in China are now HEPS-certified • 38 HEPS-compliant models released in FY2013 We reviewed products to see how many met the HEPS requirements In fiscal 2013, 18 motorcycles models, 16 automobile models, and power products—a total of 38 models—were HEPS-certified Motorcycles • Reducing CO2 emissions in three stages To achieve zero CO2 emissions, one of the three objectives of Triple Zero, our aim is to eliminate the life-cycle emissions (emissions from all stages in the life of a product, from its manufacture using raw materials, to customer use, to disposal) of all Honda products, including through such strategies as renewable energy carbon offsets However, given that many mobility products today still run on fossil fuel burned in an internal combustion engine, zero CO2 emissions is not something we can achieve overnight That is why we have developed three scenarios to guide us through steady reductions, and ending with the complete elimination of CO2 emissions These scenarios, which are to be pursued in parallel, are: 1) Reduce emissions through efficiency improvements of internal combustion engines, 2) Reduce emissions by introducing energy-diversification and environmentally innovative technologies, and 3) Eliminate emissions through the use and [comprehensive/fully integrated management] of renewable energy (see figure below) Hi Efficient Products Products that emit less CO2 emissions because of improved internal combustion engine efficiency This category includes products that incorporate technologies for improving fuel combustion and transmission efficiency and reducing friction between engine parts Compliance is determined based on how well a product reduces or helps reduce CO emissions during use compared to preceding models HEPS-compliant models released in FY2013 80 80 67 60 40 40 67 36 38 48 40 42 63 58 60 28 26 20 20 20 20 2011 2012 2013 (FY) 2011 2012 2013 (FY) 0 2011 2012 2013 (FY) Japan North America Europe South America Asia/ Oceania China FY2011 data were calculated based on standards set in FY2012 Certain certifications were corrected following a reassessment of performance data 18 Honda South America - 2013 Environmental Annual Report 19 Moto Honda da Amazônia - Manaus (AM) Since its foundation, in 1976, Moto Honda da Amazônia, in Manaus (AM), has committed itself to pollution prevention and continuous improvements, as a part of its corporate management cycle Since 1998, the plant has been certified by ISO Progress in achieving the goals as per produced automobile 14001 and the Green Factory concept started to be implemented in the company in the year 2000 That is, many initiatives throughout the years have been implemented to promote environmental preservation and the optimized use of natural resources Rational Use of Water Goal for 2012 Results in 2012 Goal for 2013 94.7 kg % achievement of the goal 113% CO2 107.8 kg VOC waste water 68g/m2 149 kg 2.26 m3 52g/m2 149 kg 1.93 m3 135% 100% 121% 50.9g/m2 147 kg 1.90 m3 52 to awaken among its collaborators the awareness that human beings are also a part of the natural environment In 2012, sensors were installed in the refectorie’s taps, which have already contributed to 70% savings in water consumption, in addition to collaborating with hygiene due to their automatic activation To optimize consumption, the water utilized in the production processes is also reutilized in some activities That’s the case of the utilization of the compressor’s condensation water With that measure, 755 thousand liters have been reutilized in 2012 Water Treatment Station (WTS) Effluent Treatment Stations (ETS) With the implementation of those measures, the plant consumed 0.925 m³ of water per manufactured motorcycle in 2012 The goal for 2013 amounts to 0.916 m³ per motorcycle Honda South America - 2013 Environmental Annual Report Honda South America Water derived from Honda’s production process is treated and returned into the natural environment 92.7 kg The water that supplies the plant is subject to special attention The Water Treatment Station (WTS) treats up to 408 thousand liters per day and starts its process by analyzing the potability of that liquid, derived from artesian wells After that, doses of chlorine are added according to the analysis undertaken in the previous stage The water is filtered and then supplies the taps and drinking fountains in the whole plant The water utilized in the motorcycle and Power Products production process in Manaus (AM) is fully treated in the Effluent Treatment Station (ETS), whose daily capacity amounts to 2.584 thousand liters After going through biochemical purification processes, the treated effluent is sent to the stabilization pond, when a part of the volume then supplies the irrigation system for the gardens The remainder is returned into nature, in this case to a local stream called Igarapé 40, thus preserving the ecosystem However, in addition to treating it’s also necessary to promote conscious consumption That’s why the company has strived, since the start of its activities, 53 Energetic Efficiency Moto Honda da Amazônia has been implementing electric power consumption optimization measures throughout the years In 2012, one of the initiatives to contribute to that goal was the implementation of a new injection cycle management system, the Eco Driver, which was installed in the plastic injectors, reducing emission by 150 tons of CO2 in 2012 That mechanism is able to identify the necessary pressure and flow, and applies that conversion in the engine, making it work at the necessary speed to undertake the movements A new refrigeration and climatization system adopted by the plant has contributed to energy consumption reduction in 2012 Called Chilled Water Central (centrifugal chiller), the equipment is responsible for keeping an adequate temperature of the plant’s air conditioning and machines With that measure, 153.89 tons of CO2 have no longer been emitted Atmospheric Emission Reduction that consumed 110 W The roofs have been modified, in order to utilize sunlight through translucent tiles, reducing emission equivalent to 8.56 tons of CO2 per year Presence sensors have been installed to optimize electric power consumption Those devices are available at the reception, at the leisure area, and in the employee’s access pass way, and have already reduced power consumption by 58% in those places It has been forecasted that the entire plant shall use that mechanism in 2013 The target for VOC emissions by 1.03 Kg per manufactured motorcycle was set in 2012, however that figure has been reduced to 0.95 Kg And that contributes to preserve the atmospheric later and the natural environmental Another initiative of that plant is the online electric power consumption monitoring With that resource, it’s possible to accurately calculate and locate the consumption levels, contributing to achieve the goals by optimizing power consumption The plant’s compressed air generation has also been given special attention to improve electric power consumption: two old compressors have been replaced for new and more modern ones, which eliminated the emission of 18.36 tons of CO2 during 2012 Honda keeps an environmental reserve in the city of Rio Preto da Eva (AM), which preserves 674 hectares of native forest and 305 hectares of reforested trees, and especially some species under threat of extinction The company also has the Particular Natural Heritage Reserve located in Igarapé Mindú, in Manaus (AM), with 16.4 hectares, which comprises the so-called Urban Ecological Corridor of Mindú With a total of 995.4 hectares, the environmental reserves could carbon neutralize the equivalent to twice the motorcycle plant’s emissions in 2012, as shown below: 50,801 tons - 20,740 tons = 30,061 tons Annual CO2 absorption capacity in the reserves Total CO2 emissions at the motorcycle plant of Manaus (AM) Positive balance for the natural environment Honda South America In addition to that change, the unit promotes a monthly “blackout”, which turns all the lights and equipment deemed not critical off, thus saving electric power consumption during one Sunday As for the remaining weekends, a group is assigned to check if there isn’t any light or device unnecessarily on The disposed lamps are also adequately disposed of: they are sent to a specialized and recycling certified company Other lanterns, with a 23% higher energetic efficiency and with a useful life 140% higher, replace the older ones, saving electric power consumption and reducing emissions by 184.87 tons of CO2 in 2012 That’s possible because the new lamps consume just 54 W, contrarily to the previous ones Electrostatic painting Environmental Reserves Translucent tiles Chilled Water Central The constant effort to promote environmental preservation and to look for new and more sustainable solutions throughout the years has led to measures that aim at minimizing the emissions of Volatile Organic Compounds (VOC) into the atmosphere An example of those actions was a painting system for the motorcycle’s body based on powder, which significantly contributes to reduce the emissions of those compounds into the atmosphere The painting area has also adopted the electrostatic painting system, in which the plastic parts to be painted count on the support of magnetism, which attracts the paint into the material Therefore, Volatile Organic Compounds (VOC) are no longer emitted, in addition to optimizing their utilization (this method utilizes 90% of the paint, while in the remaining means that rate is of 50%) Those measures have significantly contributed to the plant achieving the CO2 emission reduction goal in 2012 The initial purpose to reduce emissions by 77.03 Kg of CO2 per produced motorcycle was surpassed, leading to just 74.57 Kg of CO2 emitted to make each unit Environmental Reserve in Rio Preto da Eva (AM) 54 Honda South America - 2013 Environmental Annual Report 55 Waste Management Selective waste collection’s central plant 56 That change came from a reduction in the diameter of the exhaust hook’s support in some motorcycle models, which went from 13 mm to mm The slurry derived from the Treatment Station, the physical-chemical slurry, was cut by 37% during production And that because a new centrifuge was installed in the ETS, optimizing its efficiency and reducing the previously necessary reworking Cardboard packaging has also been incorporated into the changes promoted in the plant It has been decided to reutilize that material, which was previously disposed, in order to package motorcycle mirrors Progress in achieving the goals per manufactured motorcycle CO2 Goal for 2012 77.03 kg Results in 2012 74.57 kg % achievement of the goal 103% VOC waste 1.03 kg 20.03 kg 0.95 kg 18.23 kg 107% 109% Goal for 2013 68.58 kg 0.92 kg 17.55 kg The purpose of reduce to 20 kg the amount of waste generated by each manufactured motorcycle was surpassed The result in 2012 amounted to 18.23 kg of waste for each manufactured motorcycle Honda South America The waste derived from the motorcycle production process goes through a rigid management: they are firstly classified and then segregated before being destined to an adequate disposal Around 98% of all the generated waste is destined to recycling The foundry sand, the cast aluminum, and the ABS and polypropylene plastics are fully reutilized in the production process The thinner used in the painting processes have also started to be reutilized and recycled In 2012, the work to improve and optimize the use of resources undertaken at that unit was continued With the purpose of reducing as much as possible the quantity of waste and of developing new ways of using the components generated in the production process, the plant of Manaus (AM) has developed new initiatives In the foundry area, for example, a change in furnace liners, which were previously made of bricks and now are made of refractory cement, together with the returning of the unutilized parts to the HS1 alloy foundry process – a type of aluminum used in production processes – has contributed to a 8,400 kg reduction in the use of aluminum every month The production of galvanic slurry has also been reduced: from 16 to eight drums generated every day Water derived from the productive process, treated in the Effluent Treatment Station of Moto Honda da Amazônia, is sent back to nature Honda South America - 2013 Environmental Annual Report 57 Honda Motor de Argentina In 1978 Honda Motor de Argentina S.A was founded Initially, its activities were based on the distribution and commercialization of automobiles, motorcycles and power products Production activities started in 2006, with the inauguration of the motorcycle plant in Florêncio Varela, province of Buenos Aires In 2011, Honda Motor de Argentina opened its car plant in the country, for the manufacturing of automobiles and auto parts for many different models for the local Honda Del Peru market and for exports The company has dedicated great attention to its production process, striving to reduce the environmental impacts of its activities Thus, it has been preparing its plants to obtain the ISO 14001 certification In 2012, an internal committee was established, and an action plan has been developed, in order to fulfill the requirements of the international norm and optimize its production process Founded in January 1974, Honda started its activities in the city of Trujillo, with the assembly, importation and commercialization of motorcycles and three-wheel vehicles (Honda Motorcycle Taxi) In 1983 the company moved to Iquitos In 1994 a new production and assembly plant started operations in Lima, and in 2006 Honda Selva Del Peru was founded Those plants have undertaken many activities focused on environmental responsibility Those initiatives favor optimization in the use of natural resources, CO emission reductions, and also awareness-building campaigns for its collaborators Rational use of water Rational use of water A great step to optimize resource consumption is having full knowledge of the quantities utilized in its activities To better manage the use of the water in the Argentinean plants, a new water consumption measurement system was established in 2012 That device is modern and allows an accurate calculation of consumed volumes, since it is fully electronic New water consumption measurement system Energetic efficiency system for the compressors was installed in 2012, which optimizes power consumption and manages it through alarms integrated in the device The goal for 2012 of 0.4 m³ water consumption per manufactured motor tricycle was setted, the result was 0.2 m³ per manufactured unit Captured rainwater supply sinks and toilet flushes Energetic efficiency Waste management In 2012, the plant of Campana acquired a new place to accommodate and treat the waste derived from its production activities The processing space, besides organizing that material, will favor the management of those elements The plant of Campana decided to sell to a toy manufacturer the wood pallets utilized to transport and store materials The plastic waste has also started to be recycled, generating bags, buckets, and chairs, among other objects In addition to that, the transportation of motorcycles has also gone through modifications in Argentinean plants, with the implementation of pallets and returnable metallic CKD That change has contributed to cut wood consumption by 70% when transporting the motorcycles made in the country Space for waste management 58 Honda South America The Argentinean units have been looking for solutions to rationalize and reduce electric power consumption during its activities A new automation Taking advantage of the weather conditions in the region, the plant of Iquitos captures rainwater, which is abundant all through the year, through a drain placed on the roof A hydraulic system takes the captured water to the restrooms, supplying the toilet flushes and sinks That modification has significantly contributed to achieve the goal of cutting water consumption in the plant The initial purpose in 2012 was to reach 0.1 m³ of water per manufactured motor tricycle, however the achieved result was even below the stipulated indicator, amounting to 0.04 m³ per manufactured product Awareness-building campaigns on the rational consumption of water have also been undertaken at the plant of Callao, disseminating among collaborators information on the importance of preserving that resource The plants of Iquitos and Callau have adopted transparent tiles in their facilities, which utilize natural light to reduce electric power consumption The air conditioning’s temperature has also been limited to 24° C, which contributes to cut electric power consumption With those modifications, the goal of cutting CO2 emissions derived from their activities in 2012 has been surpassed The goal was to decrease consumption to 18 kg of CO2 per manufactured unit, however, this indicator pointed to 16 kg of CO2 generated per manufactured product in 2012 Translucent tiles in the tricycle plant in Iquitos Honda South America - 2013 Environmental Annual Report 59 Reduction of air emissions Fanalca S.A The Volatile Organic Compound (VOC) emissions have been controlled by the plants in Peru and new measures are being adopted to reduce as much as possible the generation of those compounds An example, adopted in the plants of Callao and Iquitos, was a revision of the painting process for the structure of tricycle’s body, thus reducing the paints and solvents consumption, minimizing VOC emissions With this modification, the plants exceeded the indicator proposed for 2012, of kg of VOC per manufactured tricycle In Callao, the achieved result recorded 0.36 kg per manufactured tricycle The plant of Iquitos also surpassed its goal, the result amounted to 0.68 kg per manufactured tricycle in 2012 The activities of the plant of Fanalca, in Colombia, have been certified by ISO 14001 since 2002 In addition to that, it also counts on a team of 38 collaborators that have become environmental leaders in the company Those collaborator’s purpose is to promote awareness among their Atmospheric emission reduction Motor tricycles chassis painting process Waste management production, a Recycling Center was built in 2012 in the motorcycle plant of Iquitos with 640 m2, where the CKD metal boxes (a set of parts used to assembly vehicles) are recycled and reutilized to package the motorcycles put in the market The packaging derived from imported products at the Peruvian plants, which correspond to 61% of the total volume of waste, are recycled or donated to the local community Thus, tons of plastic, metal, paper and wood are no longer consumed Fanalca has created the Carbon Neutral Program, which aims to achieve environmental balance through a compensation for the effects of the CO emissions generated by the sale of new vehicles For each marketed vehicle, the corresponding planting of trees is promoted, reducing the effects of the global heating during its life cycle The planting is undertaken by a specialized entity, with wide experience in the country, with support from the United Nations and the supervising of Ministry of Natural Environment of Colombia Honda Carbono Neutro CE R TIFIC A D O Waste management Fanalca strives so that as much of its waste as possible is reutilized In 2012, the identification and mapping of its waste generation was undertaken, with a reduction in the production of those compounds, a change in their conditioning location, and finally the creation of procedures for the handling of those components In 2012 the result of that action led to a 14% reduction in the production of waste classified as hazardous, and 36% in the production of common waste, compared to 2011 Contaminated plastic materials derived from packaging is collected, pressed and ground, generating the raw material for new plastic pallets, which are now being used in the plant itself With that initiative, 52 tons of that material have been reutilized Another already implemented idea was the utilization of the leftovers of the painting powder used in the production process Almost half a ton per month were no longer disposed in 2012 in order to be reutilized as the basic material for the paint used on grates and gates, and even to paint the plant’s floors Styrofoam has also started to be reutilized Before that, a Honda partner was asked every month to collect that material and correctly dispose it In 2012, that waste started to be reutilized, in the composition of new construction slabs and concrete plates Honda South America The Peruvian units have promoted many internal awareness-building campaigns on wastage and on adequate waste disposal In addition to that, they’ve also stimulated the reutilization of components that normally would be disposed That’s the case of metallic structures, plastics and cardboards, which have since then been reutilized to package the tricycles and motorcycles made in the units In order to avoid impacts on the natural environment and to reduce the metallic waste teams on the importance of environmental preservation, in addition to stimulating new initiatives that might contribute to that cause Among its activities is the qualification of other collaborators, environmental projects, ecological strolls and corporate visits Pallets made of recycled plastic Recycling Center in Iquitos 60 Honda South America - 2013 Environmental Annual Report 61 Milk Run Transportation | Green Logistic The effort to promote environmental preservation is not just limited to product manufacturing For Honda, its responsibility goes much beyond that, including the path that raw materials and components cover to arrive at the plant and until the start of the production of automobiles, motorcycles and power products, as well as the distribution of the manufactured products to dealers and distributors all over the country The car factory in Sumare (SP) has developed several improvements in its process of transporting parts from suppliers to the factory, the Milk Run In one of these improvements, of the 82 trucks run on diesel S-50 that made up the fleet, 22 trucks were replaced by models powered by biodiesel S-10 (see note) There was Called Green Logistic, that optimized logistic system has counted on Honda’s continuous effort to improve efficiency in its operations, by promoting modal transportation and integration with other partner companies This work, along with other companies, aims to reduce the consumption of packages, promoting a change in the materials used and giving reference to returnable packages a total reduction of 13.4% in CO emissions in that transportation activity during the year In the first half of 2012, 89.6 kg of CO were emitted per manufactured car by the transportation With those changes, that same calculation pointed to a reduction to 77.6 kg per manufactured car in the following half of the year Note: The difference between the Diesel S-50 and Biodiesel S-10 is the amount of sulfur present in diesel fuel, from 50 parts per million (S-50) to 10 parts per million (S-10), which reduces the quantity of NOx, SOx, and other particulates SUPPLIER materials when they burn 1st HALF OF 2012 82 trucks driven by common diesel oil – S50 SUPPLIER FUELS SUPPLIER Honda Automóveis Brasil - Sumaré (SP) DIESEL DIESEL SUPPLIER FUELS Packaging DIESEL plastic material is composed of biodegradable polymers Following that same premise, in the automobiles destined to exportation the break discs are protected with a material made of PET bottles That material is 100% recyclable; in addition to that, it does not generate waste and does not retain dirt since it does not use glue SUPPLIER 2st HALF OF 2012 60 trucks driven by common oil diesel – S50 and 22 trucks driven by biodiesel – S10 SUPPLIER Honda South America Being concerned with sustainability and respect for the natural environment at all stages of its production process, Honda makes use of biodegradable plastics in the automobiles made in Brazil to protect seats That material is able to decompose itself into the natural environment within the short term of six months That kind of DIESEL SUPPLIER SUPPLIER FUELS SUPPLIER DIESEL BIODIESEL SUPPLIER FUELS DIESEL BIODIESEL SUPPLIER Biodegradable plastic on automobile’s seats Special protection for the wheels made of PET bottles 13.4% CO2 REDUCTION 12 kg OF CO2/MANUFACTURED VEHICLE SUPPLIER 62 Honda South America - 2013 Environmental Annual Report 63 Moto Honda da Amazônia - Manaus (AM) Transportation optimization NPD - Non-packing Delivery To transport every year 1.3 million motorcycles made in Manaus to all corners of Brazil, and 515 thousand tons of parts transported from suppliers to the plant, it’s necessary to count on a complex logistic operation, since the country has the fifth largest territorial extension in the world The figures are grandiose, since it involves 28 thousand trips per year if we consider the supplies sent to the plant and the distribution of motorcycles With the purpose of optimizing the natural resources employed in the logistic operation, we’ve been developing environmental management systems together with our partners, aiming at eliminating packaging and establishing more efficient means of transportation with lower environmental impacts NPD is an innovative motorcycle transportation system developed by Moto Honda da Amazônia With that system, the company has been able to reduce the volume of packages and diesel oil consumption With a focus on environmental respect, Honda has been promoting changes since 1997; it has reduced the utilization of wood packaging, protection oil, and cardboard and metallic boxes in its processes, to establish the current returnable racks employed to transport approximately 92% of the motorcycles destined to supply the Brazilian market from the plant to its dealers Since then many other changes have been implemented, reducing the consumption of a large number of resources and helping preserve the natural environment Check it below: 1997 1998 2005 2007 2010 2012 Milk Run was implemented, a logistic system that optimizes trips for the delivery and withdrawal of products and components The company’s truck fleet has also been modernized With such measures, there was a 5.3 kg CO emission reduction as per transported motorcycle Returnable plastic packages were adopted to transport motorcycles, thus reducing waste generation from the previously used disposable components, such as cardboard and plastic That replacement led to a 0.7 kg reduction in CO emissions for make each manufactured motorcycle A returnable metallic rack system was implemented, eliminating waste generation from the previously used disposable models That initiative cut CO emissions by 3.1 kg as per transported motorcycle The so-called Swimming Warehouse river transportation system was adopted With that measure, 11.5 kg of CO have no longer been emitted into the atmosphere as per transported motorcycle A new system employing carts especially adapted to the transportation of motorcycles was implemented, eliminating the use of racks That modification has led to a 6.5 kg reduction in CO emissions as per transported motorcycle Currently, 5% of the fleet can already count on that modification Start of the motorcycle distribution operations through cabotage and semi-trailers, leading respectively to 12.5 kg and 8.8 kg CO emission reductions as per transported motorcycle SUPPLIER SUPPLIER FUELS DIESEL DIESEL Honda South America SUPPLIER See the comparative graphic on CO2 emissions as per transported motorcycle between river/road and cabotage transportation SUPPLIER SUPPLIER FUELS DIESEL BIODIESEL Cabotage Semi-trailer A cabotage system was implemented at Honda in 2012, taking advantage of the Brazilian geography, which favors the shipping of loads That modality has enabled us to cut CO emissions by 12.5 kg in average as per transported motorcycle Currently, that modality comprises 19% of the total number of transported motorcycles, while the remainder is transported via roads and rivers Honda’s purpose is to have, until the end of 2013, 51% of its motorcycles transported on ships along the Brazilian coastline In order to service the PADs (advanced distribution stations) located at distances superior to 400 km from the destination ports, where cabotage is not the best means available, Honda has started to employ semi-trailers (a set of one truck tractor and two wagons), thus increasing load capacity by up to 70% That configuration has enabled us to cut CO emissions by 8.8 kg as per transported motorcycle, if compared to the river and road transportation undertaken through conventional carts RIVER AND ROAD 14km SUPPLIER 3,000km 53.9 kg CO2 0.2kg CO 2 Moto Honda da Amazônia Moto Honda da Amazônia 16.1kg CO2 Por to of Portde Manaus Manaus MOTORCYCLE 37.6kg CO2 Portde Por to of Belém Belém Sao Paulo São P aulo CABOTAGE 6,250km 10km 120km 41.3 kg CO2 0.1kg CO Moto Honda da Amazônia da Amazônia 64 1,600km MOTORCYCLE or Port of Manaus Manaus 39.0kg CO2 Portde Por to of Santos Santos 2.2kg CO2 São Paulo Sao Paulo REDUCTION Honda South America - 2013 Environmental Annual Report 65 Rs Reducing, Reutilizing, Recycling Sales and Services | Green Dealer simple idea has become an important competitive differential for Honda, not just in relation to its environmental commitment, but also for each one of its clients and all those involved with the dealer network and the post-sales area After the correct disposal of all the waste generated in the provision of services has been confirmed, the dealer receives a certification valid for one year, and to support that the dealer can count on a reference guide regarding its facilities, procedures, team qualification and partnerships with environmentally responsible suppliers Due to the dealer network’s dedication to the Green Dealer program, a large number of the waste generated in % GREEN DEALER 6% 21% 40% 46% the provision of services that was in the end of its useful life have started to be correctly discarded QUANTIDADE CONCESSIONÁRIAS By offering the joy of selling a product to its clients, the dealers also strive to convey Honda’s ideals, including as regards environmental preservation In 2003, with the continuous growth of the dealer network and the increase of the waste generated when providing services, Honda started to develop an action to avoid environmental impacts during the post-sale stage The result was the creation of the Green Dealer, a certification issued by Honda to the motorcycle and automobile dealers that destined 100% of their generated waste in a correct and efficient manner That is, what had started as a 170 Tires (kg) 200 158 2009 100 36 170 2010 Total dealers 2009 179 21% 36 2010 46% 70 179 2011 70 83 199 2012 83 500 1100 500 892 158 2009 32% 1031 37% 301 966 2010 158 Total dealers 2009 301 66 535 1,041 5,023 6,733 1,518 6,073 11,808 67,857 87,256 162,642 650,567 1,264,992 1,135,222 3,213,423 342,601 1,370,403 2,664,672 2,769,198 7,146,874 2008 2009 2010 2011 2012 2008 2009 2010 2011 2012 Correctly Disposed Waste - Motorcycles ACCUMULATED Waste Solid products (kg) 45% 1096 45% 364 1031 2011 364 1096 489 Oil, lubricants and fuels (L) 2012 489 Total Green Dealers 2010 2011 Check the full list of Green Dealers at the end of the current report Page 76 Total dealers 134 Battery (unit) 37% 966 32% 892 18% 2012 Tires (kg) Motocicletas Green Dealer Certified Dealers - Motorcycles 1100 2011 1100 2012 Total Green Dealers Motocicletas 18% ACCUMULATED 2010 Total Green Dealers 2011 Total dealers Oil, lubricants %and fuels (L) GREEN DEALER 199 40% 2012 Honda South America Honda South America 100 200 170 158 6% Waste Solid products (kg) 46% 83 2009 QUANTIDADE CONCESSIONÁRIAS Automóveis 6% 21% 40% Green Dealer Certified Dealers - Automobiles 70 Correctly Disposed Waste - Automobiles 2009 2010 2011 Battery (unit) Evolution of the Automóveis certified Green Dealer in Brazil 36 2012 Total Green Dealers Honda South America - 2013 Environmental Annual Report 67 Administration | Green Office Honda is focused in environmental preservation measures when managing its business, aiming to reduce the impacts of its administrative activities in nature Administrative Headquarters in São Paulo (SP) Honda South America’s holding is located in Sao Paulo (SP) It gathers the company’s main administrative and commercial departments, and counts on approximately 1200 collaborators The Administrative Headquarters is located in a modern building that favors the utilization of sunlight, with automated lighting and air conditioning systems Honda Motor de Argentina The two Honda’s offices in Argentina, in Vicente Lopez and Pacheco, gather approximately 200 collaborators A measure adopted in the Administrative Headquarters in Vicente Lopes, aiming at saving energy, was the cleaning service’s elimination at night (from 10 PM to AM) The auto parts warehouse in Pacheco cut its electric power consumption by half, with the planning of overtimes, which was revised and limited to a maximum of two hours per day Administrative Headquarter in Vicente Lopes - Argentina Honda South America’s headquarters – São Paulo (SP) Office in Pacheco – Argentina Fleet of vehicles The company promoted a change from automobiles exclusively powered by gasoline to vehicles using the flex technology While it was powered by gasoline, the fleet emitted 259 tons of CO 2/year, and with the flex vehicles the emission rate fell to 252 tons of CO 2/year, allowing it to cut emissions by seven tons of CO 2/year In all the company’s areas there are collectors destined to recycling In addition to promoting correct waste disposal practices, that action also helps generating income to the recycling cooperatives involved with the process The space also has a container for the correct disposal of batteries Selective collection Energy The reception area and the showroom in the administrative headquarters have a part of their lighting provided by Honda solar panels, which generated around 1,300 kWh of electric power in 2012 In addition to that, an automated system turns all the lights of the building off during lunchtime and at the end of the shift The air conditioning system is also intelligent, only enhancing its functioning when the outside temperature goes up With those measures 264,707 kWh were saved in 2012 68 The administrative headquarters of Honda del Peru was founded in 1974 and is located in this country’s capital, Lima It occupies floors of a building and employs 109 collaborators In 2012, Honda started to measure more precisely water consumption in the unit With the installation of a water clock in the restrooms, it was possible to identify the real consumption of water, and to define new goals for reduction of the volume used Other data that started to be measured was ambient temperature and humidity, optimizing the air conditioning system’s consumption and, consequently, electric power consumption Another measure implemented was the installation of taps with photocells on the restroom’s sinks That device limits the water flow time to thirty seconds Honda also changed the toilet papers used to dry hands, which now provides one sheet at a time, avoiding waste To stimulate conscious consumption and achieve better results with those initiatives, the unit has promoted awareness-building campaigns before collaborators, through educational posters placed in the restrooms Honda South America Selective collection Honda del Peru Administrative headquarters in Lima – Peru Educational messages on environmental preservation in the offices Solar panel Honda South America - 2013 Environmental Annual Report 69 Environmental Awareness-Building Actions In addition to manufacturing and commercializing high quality and high technology products, and in order to provide joy to its clients, Honda is also engaged in environmental awareness-building actions These ideals are based on the Honda Philosophy, which stimulates the development of healthy and positive relations between the company’s collaborators and the communities where it operates That’s a participative and constant process, in which Honda strives to share experiences and convey values to the current and the next generations Honda Automóveis Brasil - Sumaré (SP) The “cata pilhas” is a place for the collection of batteries for proper disposal of these wastes generated in the company activities Furthermore, the collaborators are stimulated to bring that material from their homes to promote correct disposal, which is undertaken by a specialized company, thus preserving the natural environment In an area of high flow of employees, it was installed the Environmental Tips panel.That space was created at the plant of Sumare (SP), in order to stimulate collaborators to give suggestions on improvement and environmental preservation The site counts on many different educational materials, including posters, folders and newspapers dedicated to ecological campaigns EcoLogical Newsletter Recicladinho (The Little Recycling Boy) The Ecological Newsletter is a publication distributed to all employees of the factory It presents the company’s initiatives directed to the natural environment In the 2012’s issues, the collaborators were informed on tips on the rational use of water, on the conscious consumption of electric power, among other actions promoted by Honda As of 2013, that publication will be distributed to all Honda’s collaborators in South America, reaching approximately 16,000 collaborators The Recicladinho Project has reached its second edition with the book “Uma Viagem Pelas Lendas – Curupira” (“A Journey Through Legends – Curupira”) With Honda’s support, it’s distributed to public schools in the cities of Sumaré, Campinas and Hortolândia With that action, the company aims at stimulating children to learn more on the characters of Brazilian culture and also on environmental preservation Environmental Week Honda Environmental Prize Held annually and having reached its sixth edition in 2012, the Environmental Week gathers the collaborators from the car plant of Sumaré to deal with the importance of contributing to environment conservation Under the motto “Preservation is in our nature”, participants have been stimulated to promote the selective collection of solid waste, learning the importance of that activity to the natural environment Since the seventh edition, performed in 2013, the environmental week has started to be a part of the calendar of actions at all units in South America 70 Environmental suggestions Launched in 2008, at the car plant of Sumaré (SP), the Environmental Prize stimulates and rewards the main initiatives proposed by collaborators ad focused on environmental preservation and natural resource use optimization In 2012, during the 6th Environmental Week, collaborators from the Painting, Machining and Foundry sectors were awarded a prize in the categories Gold, Silver and Bronze, respectively School Garden Many schools in Manaus take part in the garden project to stimulate their students to be in touch with planting, in addition to teaching on the necessary cares during cultivation Honda contributes by donating manure to the institutions Site of the Honda at school project Science Circuit (Inpa) Honda works in partnership with the National Research Institute of the Amazon (INPA), promoting environmental awareness among the students of local public schools The students are introduced to the elements of local biodiversity, in addition to the history and habits of indigenous communities Visitors may also know animals from the region and take part in lectures on the importance of environmental preservation State Environmental Week (IBDN) Students from state public schools took part in the State Environmental Week, promoted by Honda from Manaus and by the Brazilian Nature Defense Institute During that meeting students were instructed on the importance of environmental preservation and on how to contribute to achieve that Honda South America Battery collection Moto Honda da Amazônia - Manaus (AM) EcoLife Project Honda has created a program to foster sustainable activities in the lakes of PARÚ and CALADO (Manacapuru – AM), aiming the environmental education of the riparian communities The riverside communities are visited by the company’s voluntary collaborators who gather on that date to promote many awareness-building activities on the important role played by that community to promote environmental preservation, and among those activities that was the 13ª GICA – Gincana Ambiental (Environmental Gymkhana), which had the participation of 800 people As an incentive to the project, Honda sponsored the event, held by the tv program Isto é Manaus (TV Rio Nergo/BAND station) and had donate stationary engines, as well as educational kits and t-shirts for teams uniforms Trophies - Honda Environmental Prize Honda South America - 2013 Environmental Annual Report 71 Honda Motor de Argentina Global Action – SESI/Globo TV Network Moto Honda da Amazônia (HDA) has once again taken part in that solidarity collective effort, Global Action The 18th edition of that initiative was held on May 18th, 2013, in Manaus (AM), and welcomed approximately 55 thousand people Visitors were able to check their glycemic levels, receive instructions on how to cultivate home gardens, in addition to being oriented in relation to the importance of correct waste disposal, such as tires and batteries, by getting to know the reverse logic of those products For the children special playful and recreational activities were also prepared For those who visited the event, thousand coconuts were distributed, produced by Honda’s agricultural project located 48 km Ecological Awareness Program, Corazón Solidário away from Manaus Focused on providing services to that audience, 40 volunteers from many different areas were available, on behalf of solidarity Participants of the Global Action Administrative Headquarters - Sao Paulo (SP) Recycling of long life packages In the 2012 Environmental Week, the Administrative Headquarter’s collaborators were mobilized to donate long life packages The collection of more Honda has worked in partnership with the Children’s Hospital Prof Dr Juan P Garrahan since 2009, promoting solidarity and ecological campaigns to help 300 children under treatment every day in that institution, and 12,800 children that need ambulatory treatment and contributing with the hospital’s structure maintenance Counting on the participation of all Honda’s collaborators, plastic papers and lids are collected through many different actions, which funds are used in the treatment of young patients In 2012, 6,552 kg of paper were collected, representing 111 trees that were no longer pruned for its manufacturing In addition to that, 209,600 plastic lids were collected, cutting CO emissions by 943,20 kg Awareness on the use of paper Held by all the units of Honda Motor da Argentina, it’s a campaign to promote the conscious use of paper Under the motto “Reducing, Reusing, Recycling: creating change awareness,” that action installed collectors so that papers can be correctly discarded A Selective Collection Station was also created to facilitate calculating waste collection than one thousand packages was destined to an NGO, which reutilizes them to make shelters for abandoned animals/pets Winter Meeting – Catedral Hill Meeting Point Oil collection for recycling Honda’s logistic unit in Anhanguera (SP) installed a domestic oil collection station in the building where it’s located With that action, associates from Honda and other neighboring companies can correctly discard their kitchen oil The 125 liters collected every month are reutilized to make biodiesel, avoiding that 80 thousand liters of water are contaminated per day, and that 275 kg of CO are emitted into the atmosphere monthly That initiative was created and implemented by that unit’s associates Sowing awareness Honda’s associates collect domestic oil 72 Held in Catedral Hill, in Bariloche, that action promoted many activities for the visitors In addition to exhibiting Honda’s new City and Honda Fit 2013 models, Honda promoted an environmental initiative during the Winter Meeting Those who visited the company’s space took part in the action “One Tree with Your Name,” in the which a seedling was planted in a vase bearing the each person’s name and, after that, the 600 trees involved with that campaign will be replanted in deforestation areas, contributing to reduce and absorb greenhouse gases, besides contributing to biodiversity Honda South America Logistic Unit - Anhanguera (SP) Based on the global campaign “Blue Skies for Our Children,” Honda Argentina promoted in 2011 and 2012 an activity called Sowing Awareness That action involved children, by stimulating the planting of seeds and the importance of the elements of nature (Sun, water, air and earth) Held during Expoagro 2012, that initiative led to the planting of 1000 trees As for ExpoGranadera 2012, those figures were even higher, reaching 2,265 plants During the celebration of the World Environment Day, that action was also implemented, and 600 new trees were planted, as well as during Honda’s “Winter Meeting,” which included the planting of 600 new tree seedlings A total of 4,465 trees were planted in 2012 Honda South America - 2013 Environmental Annual Report 73 Acknowledgements Breathing a clean future Honda’s dedication to environmental preservation has been recognized by renowned entities in Brazil In 2012, we may highlight some prizes, such as: The Breathing a Clean Future action consists of the celebration of the World Environment Day, reaffirming the company’s commitment to preserve the planet for the next generations In all company’s units postal cards were distributed comprising seeds for planting, and stimulating environmental preservation In Francisco Varela the collaborators joined a walk to celebrate that date, with the distribution of awareness-building kits In Campana, Honda developed an informative material to promote the Rs awareness campaign (Reduce, Reutilize, Recycle, Rethink and Awnser) at the plant 5,000 pamphlets were distributed to the community, highlighting the importance of selective collection and the reuse of recyclable products for the collaborators Época Magazine Prize – Green Company Moto Honda da Amazônia was awarded the 2012 Época Green Company prize That prize is the result of a survey undertaken by Magazine Época in partnership with service provider PricewaterhouseCoopers, which highlights the companies with the best environmental practices in Brazil That was the fourth consecutive time the plant was recognized by that initiative In the three previous editions, this action was known as the Magazine ÉPOCA Climate Change Prize GHG Protocol Prize The inventory of greenhouse gas emissions presented by Honda Automóveis Brasil was awarded a Gold Seal by the Brazilian GHG Protocol Program In 2012, the company received the Gold Seal for the second time Honda Motor de Chile Chico Mendes Environmental Prize Environmental Committee that aim at environmental preservation, such as the installation of waste bins for selective collection, called “Puntos Limpos” (“Clean Points”) Through partnerships, the materials discarded in those sites are destined to regional institutions, for reuse Prize Biosfera Environmental Institute Awarded by the Biosfera Environmental Institute, Honda Automóveis Brasil received the National Highlight in Sustainable Development and Social Responsibility prize The company’s differential was the Volatile Organic Compounds (VOC) Emission Reduction project Honda South America The Honda products importation and commercialization unit in that country created the Environmental Committee in 2010, which establishes actions and programs directed to sustainability in the company The group has already implemented actions For the fourth consecutive year, Honda Automóveis Brasil was awarded the Chico Mendes Socio-Environmental Responsibility Prize In that edition, the awarded initiative was the implementation of the electrostatic painting system for plastic parts, with 90% of its compounds being utilized in recycling or reutilization Eco-journalism Contest Honda Chile promotes an Eco-journalism Contest in the country, recognizing the work of journalists who publish articles on environmental issues During its 4th edition held in 2012, that initiative awarded a Honda Civic Hybrid to the winner with all expenses paid for one year That is the company’s way of recognizing and stimulating the efforts on behalf of environmental issues promoted by the country’s press 74 Fiesp’s Environmental Merit Prize The effort to cut VOC emissions held by Honda Automóveis Brasil was awarded another prize: the Environmental Merit Prize, granted by Fiesp (Federation of the Industries of the State of Sao Paulo) PCJ Consortium Water Action Prize Honda Automóveis Brasil was one of the finalists for the 2012 Water Action Prize That homage recognized the best water resource management practices in the basins of Rivers Piracicaba, Capivari and Jundiaí Honda South America - 2013 Environmental Annual Report 75 Certified automobile dealers – Green Dealer AMAPÁ 1 RIO GRANDE DO NORTE PARAÍBA PERNAMBUCO ALAGOAS SERGIPE 1 1 BAHIA ACRE MATO GROSSO 34 10 Certified Green Dealers In Brazil BRASÍLIA GOIÁS MINAS GERAIS ESPÍRITO SANTO RIO DE JANEIRO SÃO PAULO PARANÁ SANTA CATARINA RIO GRANDE DO SUL MATO GROSSO SANTA CATARINA IVEL ACRE - Rio Branco AUTO CAMPO - Várzea Grande ALAGOAS PARBA TAIYO - Maceió AUTOCLUB - Jỗo Pessoa AMAZƠNIA PERNAMBUCO GENDAI - Criciúma GENDAI - Tubaróo KINDAI MOTORS - Caỗador SATORU - Sóo Josộ TAKAI - Balneário Camboriú TAKAI - Blumenau TAKAI - Brusque SHIZEN - Manaus IMPERIAL - Petrolina SÃO PAULO BAHIA PARANÁ IPPON - Vitória da Conquista IPPON - Itabuna CAIUÁS PARANÁ - Londrina CAIUÁS PARANÁ - Maringá ENJIN - Cascavel ENJIN - Umuarama NIPONSUL - Curitiba NIPONSUL - Ponta Grossa PRIXX - Curitiba SAMBAQUI - Paranaguá SAIKON - Guarapuava ANDRÉ RIBEIRO - Guarulhos ANDRÉ RIBEIRO - São Paulo ANDRÉ RIBEIRO - Santo André AVERSA - Limeira AVERSA - Piracicaba AVERSA - Rio Claro AVERSA CASSIO PASCHOAL - Piracicaba CAIUÁS - Indaiatuba CAIUÁS - Sorocaba DAHRUJ - Campinas DAITAN - São Paulo DAITAN POMPÉIA - São Paulo DAITAN JABAQUARA - São Paulo FLORA - São Paulo HVILLE - Barueri H MOTORS - Cotia H POINT - São Paulo H POINT MORUMBI - São Paulo ISSA ANÁLIA FRANCO - São Paulo JAPAN - São Paulo KODYVE - Mogi-Mirim KOI - Ribeirão Preto LAGO SAN - Bauru LAGO SAN - Botucatu LAGO SAN - Ribeirão Preto LAGO SAN - Franca LAGO SAN - Jaú LAGO SAN - Marília MARAMAR - Praia Grande MARAMAR - Guarujá MARAMAR - Santos SAMPA - São Paulo TANI MOTORS - São José dos Campos VM CENTER - Presidente Prudente BRASÍLIA AUTOHAUS - Brasília DF VCULOS - Brasília PLAZA MOTORS - Brasília ESPÍRITO SANTO SHORI - Vitória SHORI - Linhares SHORI - Vila Velha GOIÁS RIO DE JANEIRO HAYASA - Petrópolis HAYASA - Niterói HAYASA - Rio das Ostras KIOTO - Rio de Janeiro HAIKAR - Goiânia RIO GRANDE DO NORTE MINAS GERAIS MOTOESTE - Mossoró AUTO JAPAN - Belo Horizonte GRAN JAPAN - Poỗos de Caldas LIDERANầA - Divinúpolis MIGOTO - Pouso Alegre SUPERTEC - Belo Horizonte TRIVEL - Uberlândia TRIVEL - Uberaba SUPERTEC - Belo Horizonte 76 RIO GRANDE DO SUL KAIZEN RS - Porto Alegre MINAMI - Santa Maria SULBRA - Novo Hamburgo SULBRA - Pelotas SCAPINI MOTORS - Caxias Sul SULBRA - Canoas SCAPINI MOTORS - Bento Gonỗalves SCAPINII - Passo Fundo ZENSUL - Porto Alegre Honda South America - 2013 Environmental Annual Report Honda South America ACRE 77 Certified motorcycle dealers – Green Dealer AMAPÁ PARÁ MARANHÃO PIAUÍ 29 13 16 25 21 RONDÔNIA BAHIA 14 MATO GROSSO MINAS GERAIS 48 MATO GROSSO DO SUL ESPÍRITO SANTO RIO DE JANEIRO 43 Jotal - Água Branca Jotal - Campo Maior Jotal - Teresina Jotal Norte - Teresina SÃO PAULO 43 PARANÁ SANTA CATARINA RIO GRANDE DO SUL ALAGOAS Alianỗa Motos - Maceiú Atlõntica Motos - Maceió Convém - Maceió Dismoto - Arapiraca Dismoto - Palmeira dos Índios Dismoto - Penedo Dismoto - Teotơnio Vilela AMAPÁ Mơnaco - Macapá Mơnaco Lagoa - Macapá BAHIA BRASÍLIA Freedom - Gama Freedom Motors - Brasília Moto Point - Brasília Moto Point Rec Emas Pollux - Planaltina Satélite Motos - Samambaia Satélite Taguatinga Sul ESPÍRITO SANTO Laguna Motos - Viana Moto Litoral - Guarapari Moto Vena - Vila Velha Moto Vena - Vitória GOIÁS CEARÁ Ares Motos - Campos Sales Ares Motos - Brejo Santo Ares Motos Centro - Crato Ares Motos - Juazeiro Norte Ares Motos - Icó 78 Araguaia - Porangatu Araguaia Motos - Uruaỗu Cical - Goiânia Cical - Ludovico Cical - Trindade Fórmula R - Catalão Moto & Cia - Cristalina Moto & Cia - Luziânia Moto Aires - Aparecida de Goiânia Moto Aires - Inhumas Moto Aires - Senador Canedo Moto Formosa - Formosa Motobraz - Goiânia Motobraz Garavelo - Aparecida de Goiânia Motofor - Goiõnia Motofor Jd N Esperanỗa - Goiõnia Motogol - Goiatuba Motogol - Itumbiara Motogol - Morrinhos Motogol - Quirinópolis Trialmoto - Jat MARANHÃO Mơnaco - Itapecuru-Mirim Mơnaco - São Luís Motoca - Imperatriz MINAS GERAIS Aramoto - Araguari Aramoto - Patrocínio Capi - Varginha Casa Cruzeiro - Formiga Daytona - Poỗos de Caldas Daytona Andradas - Andradas Domingos Zema - Araxá Duas Rodas - Uberlândia Easy Way - Conselheiro Lafaiete Honda Faria - Frutal Independência - Juiz de Fora Independência - São João Nepomuceno Independência Motos - Santos Dumont Lideranỗa Motos - Divinúpolis Martinelli Motos - Bom Despacho Martinelli Motos - Lagoa da Prata Mavimoto - Timóteo Mavimoto - Coronel Fabriciano Mavimoto - Ipatinga Maxmoto - Mariana Minas Motos - Belo Horizonte Moto BH - Belo Horizonte Moto Fest - Brumadinho Moto Fest - Contagem Moto Nanuque - Nanuque Moto Passos - Passos Moto Star - Nova Serrana Moto Star - Pará de Minas PARANÁ Moto Zema - Uberaba Motomol - Governador Valadares Motoplus - Juiz de Fora Motostar - Pitangui Otobai - Belo Horizonte Otobai - Pedro Leopoldo Otobai - Ribeirão das Neves MATO GROSSO DO SUL Caiobá - Aquidauana Caiobá - Campo Grande Caiobá - Miranda Caiobá - Sidrolândia Cometa - Campo Grande Covel Motos - Campo Grande Endo Moto - Dourados Mastter - Costa Rica Mastter - São Gabriel Oeste Mastter - Sonora Mastter Motos - Coxim Nara - Caarapó Nara Motos - Dourados Pavs-Caiobá Afonso Pena MATO GROSSO Cometa - Alta Floresta Cometa - Cáceres Cometa - Colíder Cometa - Pontes e Lacerda Moto Raỗa - gua Vermelha Moto Raỗa - Vỏrzea Grande Mụnaco - Cuiabá Mônaco - Tangará da Serra Planetarium Motos - Cuiabá PARÁ Revemar - Tucuruí Revemar - Belém Revemar - Parauapebas Revemar Motocenter - Paragominas Revemar Motocenter - Marabá Arauto - Irati Blokton - Almirante Tamandaré Blokton - Araucária Blokton - Cascavel Blokton - Curitiba 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- Guarulhos Hido Motos - Franca Japauto - Barueri Japauto - Carapicuíba Japauto - Mairiporã Japauto - Mauá Japauto - Pirituba Japauto - Santo André Japauto - Santo André Japauto Itaim Paulista Japauto Itaquera Japauto Santo Amaro Japauto Vila Maria Kadú - São José dos Campos Kadú Honda - Lorena Kadú Vista Verde - S José dos Campos Maggi - Porto Feliz Maggi Motos - Itu Maggi Motos - Salto Mila Moto - Itatiba Monte Leone - São Paulo Monte Leone Brasilândia - São Paulo Mothonda - Catanduva Moto Brisa - Amparo Moto Brisa - Jaguariúna Moto Everest - Guarulhos Moto Everest - São Paulo Moto Everest Cambuci - Cambuci Moto Field - Mogi das Cruzes Moto Guia - Itapetininga Moto Guia - Tatuí Moto Remaza - S Bernardo Campo Moto Remaza Butantã Moto Remaza Centro Moto Remaza Ibirapuera Moto Remaza Ipiranga Moto Remaza Tatuapé Moto Snob - Americana Moto Snob - Hortolândia Moto Snob - Nova Odessa Moto Snob - Santa Bárbara D’Oeste Moto Snob - Sumaré Moto Zema - Ituverava Motoasa Jardim América - Ribeirão Preto Motocor - Mococa Motocor - São José Rio Pardo Motomil - Campinas Motomil - Piracicaba Motomil Londres - Campinas Motorlândia - São Joaquim da Barra Motosnob - Monte Mor Monte Leone - S Caetano Sul Mundial - Mogi-Mirim Mundial Motos - Araras Nova Radar Motos - Osasco Novamoto - Agudos Novamoto - Américo Brasiliense Novamoto - Araraquara Novamoto - Bauru Novamoto - Descalvado Novamoto - Ibitinga Novamoto - São Carlos Otsubo - Tupã Pavs-Winner Jd Cristina Peres Moto - Porto Ferreira Peres Moto - São João da Boa Vista Pivetta - Taquaritinga Planeta Honda - São José dos Campos Remaza Vila Carrão Sanmell - Bertioga Sanmell - Guarujá Sanmell - Praia Grande Sanmell - Santos Sanmell - São Vicente Santa Emília - Ribeirão Preto Santa Emília Castelo - Ribeirão Preto Santos Motocenter - Santos Sperta - Guararapes Sperta Moto - Araỗatuba STR - Embu STR - Taboão da Serra STR - Campo Limpo STR - Motos - Osasco STR - Rio Pequeno Tsuji Motos - Atibaia Universo - Caỗapava Universo - Sóo Sebastióo Walk Motos - Sorocaba Walk Motos - Votorantim Walk Motos Zona Norte - Sorocaba Winner - Campinas Winner - Cosmópolis Winner - Sumaré Honda South America - 2013 Environmental Annual Report Honda South America Asa Motocenter - Candeias Asa Motocenter - Santo Amaro Bahiasol Motos - Jequié Brasmoto - Eunápolis Brasmoto - Porto Seguro Luz Motos - Barreiras Luz Motos - Luís Eduardo Magalhães M&M Motos - Brumado M&M Motos - Livramento de N Senhora Moto Conquista - Poỗừes Moto Conquista - Vitória da Conquista Moto e Trilha - Santa Maria da Vitúria Motopel - Fraga Maia Motopema - Camaỗari Motopema - Salvador Motosul - Teixeira de Freitas Pavs-Luz Motos - Barra Pavs-Motopema Cabula - Salvador Rio Vale Motos - Casa Nova Rio Vale Motos - Juazeiro Rio Vale Motos - Remanso Rodaleve - Guanambi Rodaleve - Vitória da Conquista Trilha Sul Motos - Itabuna Wan Motos - Jequié Ares Motos - Jaguaribe Ares Motos - Mombaỗa Ares Motos - Iguatu Ares Motos - Ipu Ares Motos - São Benedito Ares Motos - Tianguá Ares Motos - Itapajé Ares Motos - Itapipoca Ares Motos - Paraipaba Ceará Motos - Fortaleza Ello Motos - Canindé Ello - Santa Quitéria Inhamuns - Independência Inhamuns Motos - Tauá Motocedro - Quixadá MP-Nova Onda - Tabuleiro Norte MP-Nova Onda - Várzea Alegre MP-Poty - Ipueiras Nova Onda - Aracati Nova Onda - Iguatu Nova Onda - Limoeiro Norte Poty - Nova Russas Poty Motos - Crateús Pavs-Ibiapaba Ares Motos Centro RIO GRANDE DO NORTE PIAUÍ 48 Golden Rio - Resende Motocar - Belford Roxo Motocar - Campo Grande Motocar - Duque de Caxias Motocar - Madureira Motocar - Nova Iguaỗu Motocar - Queimados Motocar - Rio de Janeiro Motocar Botafogo - Rio de Janeiro Recreio - São João de Meriti Recreio Motos - Angra dos Reis Recreio Motos - Itaguaí Recreio Motos Bangu - Rio de Janeiro PERNAMBUCO Petrolina Motos Petrolina Motos Honorato - Petrolina Serramoto - Itambé Serramoto - Timbẳba BRASÍLIA GOIÁS 35 112 CEARÁ RIO GRANDE DO NORTE PARAÍBA PERNAMBUCO ALAGOAS SERGIPE Gran Moto - Campina Grande Gran Moto - Queimadas MP-Novo Rumo Novo Rumo - Campina Grande Novo Rumo - Esperanỗa Novo Rumo - Joóo Pessoa Novo Rumo - Rio Tinto Novo Rumo - Sapé Novo Rumo Mangabeira - João Pessoa Polo Motos - Guarabira Pavs-Novorumo Lagoa Seca Pavs-Novorumo - Ingá 79 ... 5.7% Other Asia 18.3% 7.1% Honda South America - 2013 Environmental Annual Report Contents Honda South America - 2013 Environmental Annual Report Reducing and Reporting Environmental Impacts in... America Masahiro Takedagawa President Honda South America Ltda Honda South America - 2013 Environmental Annual Report 39 Business Activities Honda South America Honda has as its purpose to provide... the environmental contribution promoted by Honda and its partners Honda South America - 2013 Environmental Annual Report Honda South America 0.210 CG 150 FAN NXR 125 BROS 44 by the company For Honda? ??s