honda the power of dreams honda environmental annual report 2011

Please direct enquiries to: ● Environment & Safety Planning OfficeTel: +81-03-5412-1155 Fax: +81-03-5412-1154This report can also be found on the Honda Worldwide website: http://world.h

Hond a

取 り 組 み 事 例 集 と 補 足 情 報

2011

EnvironmEntal annual rEport

2-1-1 Minami Aoyama, Minato-ku

Honda Motor Co., Ltd.

Case Studies and Supplementary Information

Honda global environmental symbol and slogan

Our goal under the Honda Environmental Vision is

to leave the joy and freedom of mobility for future generations (for our children) That is why we must create a sustainable society where people can enjoy life (blue skies) These aspirations are symbolized in our environmental slogan and symbol

Production company (Japanese and English versions)

SHIAN INC., Tokyo, Japan

Sales and services

Automobile Shigeaki Kato

Yasumasa ShimizuMotorcycle Masaharu IuchiPower Products Takaoki WatanabeService and Parts Noriya KaiharaRecycle Promotion Office Hideaki Kobayashi

Purchasing Akifumi Suganuma

Factory and office operations environmental administrators

Saitama Factory Shigeo OnoTochigi Factory Koichi AonamiHamamatsu Factory Masamichi MatsumuraSuzuka Factory Masaomi AjiokaKumamoto Factory Takayoshi FukaiAutomobile New Model Center Hiroyuki YoshiharaQuality Innovation Center Tochigi Yukihiro Kariya

Head Office Takao AokiHonda R&D Co., Ltd

Automobile R&D Center (Wako)/

Fundamental Technology Research Center/

Aircraft Engine R&D Center Akio YagasakiMotorcycle R&D Center/Power Products R&D Center Fumihiko NakamuraAutomobile R&D Center (Tochigi) Jun YanadaAutomobile R&D Center (Takasu Proving Ground) Koji KawaiHonda Engineering Co., Ltd Masuhiro Sakurai

Note: Current as of June 1, 2011.

Please direct enquiries to:

● Environment & Safety Planning OfficeTel: +81-(0)3-5412-1155

Fax: +81-(0)3-5412-1154This report can also be found on the Honda Worldwide website:

http://world.honda.com/environment/report/

index.html?id=6

Environmental information disclosure

The Honda Environmental Annual Report is published yearly It presents environmental corporate information,

including Honda’s policies and future direction with respect to the environment The report focuses particularly on

the results of the year’s initiatives in each management domain, and on progress made toward targets from the

point of view of Honda's corporate activities throughout its products’ life cycles Complementing the disclosure of

environmental corporate information, Honda’s website (http://world.honda.com/environment/index

html) provides further details about the results in each domain (for instance, environmental impact

data for each Honda facility), and also presents the history of Honda's environmental initiatives

By disclosing a wide range of information, we hope to facilitate communication and feedback,

thereby strengthening our environmental conservation initiatives going forward

Environmental annual report

The Honda Environmental Report is comprised of two parts: the Main

Report, which focuses on annual environmental initiatives, and the

Case Studies and Supplementary Information, available exclusively on

Honda’s web site, which covers specific initiatives in each of the

domains introduced in the report.

The Honda Worldwide website’s environment section

http://world.honda.com/

environment/index.html

Information focusing on annual initiatives Comprehensive environmental information

Editorial policy for the Honda Environmental Annual Report

Early in its history, Honda recognized that an involvement in efforts to combat various kinds of environmental problems was one of its

most important management priorities We publish the Honda Environmental Annual Report to inform the public about our environmental

initiatives over the preceding year This is the 14th edition of the Honda Environmental Annual Report, which was first published in 1988

As of 2011, Honda regards global climate change and energy issues as being particularly important among the many

environmental problems that exist today (see Page 6 for details.) To combat these problems, Honda is working to reduce

emissions of greenhouse gases resulting from its business activities and from the use of its products, and has set medium-term

targets for this purpose (see Page 8) Under our mid-term management plan, we have also formulated and are steadily

implementing environmental initiatives to combat other environmental problems (see Page 10)

We will continue to inform the public about these initiatives, and in particular about the progress we have made each year,

through the Honda Environmental Annual Report Other information, including details and data, are regularly posted on our

website, as indicated in Disclosure of Honda Environmental Information

Other key information disclosure

Honda’s environmental reports and website also contain corporate information other than that concerning the environment

Honda is continuously working to enhance communication with its stakeholders by making information about its various

activities easy to understand and encourages feedback Honda regards full communication with all stakeholders as essential to

further improving its activities, and welcomes feedback to this and all of the reports listed below

V Investor

Information

Presents information on Honda’s business performance.

Investor information: http://world.honda.com/investors/index.html Annual report: http://world.honda.com/investors/library/annual_report/

Information Presents Honda’s safety initiatives from two perspectives: activities aimed at promoting product safety and those aimed at promoting traffic safety.

Safety activities： http://world.honda.com/safety/index.html Driving safety promotion activities：

http://www.honda.co.jp/safetyinfo/ (This URL is Japanese only)

Report on driving safety promotion activities：

http://www.honda.co.jp/safetyinfo/report/index.html (This URL is Japanese only)

Online

Case Studies and Supplementary Information

Main report

44 Automobile environmental performance information (Japan)

45 Motorcycle environmental performance information (Japan)

46 Power products environmental performance information (Japan)

47 Japan facilities information

Advancing operations in regions 6

656,000

190,000 372,000

398,000 15,011,000 1,682,000

273,000 256,000 1,243,000

0

8,000 4,000

0

6,000

1,000 2,000 3,000

■ Unconsolidated  ■ Consolidated

(FY)

(¥ billion)

2007 2008 2009 2010 2011

Driven by its philosophy of building products close to the customer, Honda has manufacturing operations in six

re-gions worldwide In FY2011, Honda delivered 27 million products to its customers around the world Always

con-scious of the environmental impact of its operations, Honda is working hard to take environmental

responsibility to ever higher levels around the world.

In 2006, Honda announced global CO 2 emissions reduction targets for 2010, the first announcement of its type

by a company in the automobile industry In 2011, we adopted “the Joy and Freedom of Mobility” and “a

Sustain-able Society where People Can Enjoy Life” as the Honda Environmental Vision Under this vision, Honda is

deter-mined to accelerate its global efforts to find solutions to climate change and the energy problem.

Annual sales in Honda’s six regions

by unit volume (FY2011)

1,465,000 2,094,000 184,000

159,000 1,744,000 118,000

0 50,000 100,000

200,000 150,000

Head office: 2-1-1 Minami Aoyama, Minato-ku

Tokyo 107–8556, Japan

President & CEO: Takanobu Ito

Capital: ¥86.067 billion (as of March 31, 2011)

(Results of FY2011) Unconsolidated: ¥2.9154 trillion

Number of associates: Consolidated: 179,060

(as of March 31, 2011)

Unconsolidated: 25,673 (as of March 31, 2011)

Consolidated subsidiaries: 383 (as of March 31, 2011)

Major products:

Automobiles: Standard-sized vehicles, compact

vehicles and mini-vehiclesMotorcycles: Scooters, mini-bikes, motorcycles,

ATVs and personal watercraftPower products: Power product engines, lawnmowers,

marine outboard engines, CIG thin film solar cells, and household gas-engine cogeneration units

Note: Honda is a member of the World Business Council for Sustainable Development (WBCSD).

Company overview

Automobiles 76.0％

Financial services 6.3％

Power products and other 3.3％

Motorcycles 14.4％

Japan 16.8%

Europe 6.8%

Asia 20.7%

North America 43.9%

Other 11.8%

North America

South America

Honda Group case studies

1 From creating products that people

use everyday to the energy

production business

“In addition to products with engines, such as automobiles and

motorcycles,.Honda.also.supplies.power.products.designed.to.help

people.with.everyday.tasks,.such.as.power.generation,.water.pumping

and snow removal However, there are places in the world where

gasoline, gas and electric power are not available Honda’s energy

Power Products Operations Division,

Honda Motor Co., Ltd.

General Manager Omura

Thin-film solar panels at the Hamamatsu Factory

In fiscal 2010, Honda installed thin-film solar panels with a total capacity

of 2.4MW at 15 major business facilities in Japan Together with panels previously installed, this brought the total capacity to 3.2MW We interviewed Eiichi Omura, head of the Home Power Generation Business Planning Office in the Power Products Operations Division, which has coordinated the implementation of this project, about the reasons for Honda’s decision to install solar panels at its main business facilities.

Adding 2.4MW capacity thin-film solar panels

at business facilities in Japan

A solar cell module

Honda Soltec solar panels

at the Hanshin Koshien Stadium

Kumamoto Prefectural Office (installation completed in February 2010)

4 A commitment to original technology

—produce at home, use at home

Honda’s Smart Home concept calls for the creation of a single

Honda Group case studies

At the Saitama Factory, Honda has installed regenerative thermal oxidizers (RTOs)1 on its bumper coating line to reduce emissions of volatile organic compounds (VOCs) The RTOs enabled VOC concentrations to be reduced below the required standard while also reducing energy requirements through heat recovery, without changing the existing facilities We also succeeded in reducing the size of RTOs after discovering the leveling effect of activated charcoal on VOC concentrations These measures have reduced CO2 emissions by about 1,400 tons annually.

1.Regenerative.thermal.oxidizers.break.down.gases.through.combustion.and.capture.the.heat.emitted.

1 Improving processes without changing existing facilities

Opened in 1964, the Saitama Factory is an integrated automobile

The VOC treatment facility at the Saitama Factory

CO2 emissions reduced by approximately 1,400 tons through thermal recycling and the development of a smaller VOC treatment facility

Masahiro NakaoHisashi Saito

A bumper coating booth

returning.the.treated.exhaust.gas.back.to.the.air.conditioning.system.on

the.painting.line.”

3 Heat from RTO utilized in

two thermal recycling pathways

Structure of a Regenerative Thermal Oxidizer (RTO)

Regenerative Thermal Oxidizer (RTO):

This is a generic term for a system that accumulates heat while

breaking down gases through combustion.

* The RTO can be fueled by LNG or VOCs.

Thermal insulation support grid

Input/output ducts

・ Large contact area̶

high heat exchange efficiency

・ Direct gas flow̶pressure loss reduced

Thermal insulation

250mm thick̶This

reduces thermal

radia-tion and keeps the

surface temperature of

the system low.

Hot bypass damper

This efficiently uses thermal energy from the spontaneous combus- tion of hot VOCs.

Cleaned air is carried through this recycling duct

Burners fueled by LNG in the air-conditioning chamber

4 Leveling effect of activated charcoal discovered during trials

5 Leveling effect of activated charcoal used

to raise concentration levels, reduce the size of the RTO, and turn VOCs into fuel

If VOCs in exhaust gases from the bumper coating process could

Heat exchanger

humidity adjustment

Coating booth

Bumper coating line air conditioner

Thermal recycling duct

RTO exhaust

Adsorption air

Module Manager Shinichi Araki (in charge of project implementation)Factory Manager Shigeo Ono (overall project supervisor)

to raise the temperature in the RTO At a certain concentration,.

VOCs undergo spontaneous combustion, helping to maintain the

6 Refusal to accept waste reduces

CO2 emissions by around 1,400 tons

（ppmC）

Time → Time →

3,414

2,278 1,709

standard

Within standard

Within standard

RTO design value

RTO design value

Without activated charcoal: 10 times Without activated charcoal: 15 times charcoal: 15 timesWith activated charcoal: 20 timesWith activated

RTO size reduced

Honda Group case studies

1 Gradual conversion of No 3 line

in new coating plant

Opened in 1960, the Suzuka Factory mainly produces automobile

of reducing VOC and CO2 emissions began with the development of specialized coatings.

VOCs halved by 50% through the using water-based base coatings and special coatings for inner panels

Paint & Plastic Department, Suzuka Factory,

Honda Motor, Co., Ltd.

3 Achieving full automation

of inner panel coating

Honda took a new approach to VOC reduction in the Coating and

According to Mr Onishi, the idea of using specialized coatings

on inner panels arose while the engineers were considering fully

Changes to the coating process

Middle

cleaning Storage

Electrodeposition

Base coat Clearcoat Drying oven Storage Inspection/polishing

VOC emissions (FY2008)

automating coatings for such panels within the 4C2B process Full.

As engineers considered how to develop the facilities and coatings

Base coat (water-based)

Clear coat (solvent-based)

The new 4C2B coating line

The new building completed in May 2009

5 Amount of coating reduced through

thickness even on inner panels, which have complex shapes “Even

on inner panels, we formulate coatings to prevent the surface from

showing through by adjusting the percentages and particle sizes of

Changes in pigment composition (opacity enhancement)

Specifications for inner panel coating supply system

Coated outer panels

Coated inner panels

Specialized inner-panel coatings

Exterior panel coatings

6 Water-based paints in use at the Suzuka Factory since 2000

during.the.coating.process.when.water-based.coatings.are.used Water-flash-off.systems4.and.insulation.systems5.on.coating.supply.lines At

Coatings are prepared in the mixing room

From left: Onishi, Yamamoto, GoudaLeft: Outer panel coating, right: Inner panel coating

40g/㎡

Base coating

6.0 6.0

Middle coating

3.6

Electrodeposition

2.8

Water-based base coating Coating efficiencyimprovement

After VOC countermeasures

4.68 2.95

Inner panel coatings

6.44 2.53

2K middle coating Electrodeposition

Clear coating Others

Base coating 4.35

Honda Group case studies

Wastewater treatment facilities at the Suzuka Factory were replaced

in 2010 By adopting an orthodox approach based mainly on biological treatment, we were able to minimize costs while achieving the highest treatment quality in the motor vehicle industry The new system can also treat wastewater from the new line in the coating plant, which is now using water-based paints as base coatings.

1 Wastewater from the Suzuka Factory

enters Ise Bay

The Suzuka Factory is a mass-production facility for automobiles

2 Capacity to treat wastewater

from the new water-based coating line

In May 2007, during planning for the new wastewater treatment

Facilities Department, Suzuka Factory

Honda Motor Co., Ltd.

New treatment facilities deliver best wastewater quality in the industry

The new wastewater treatment facilities are in line, eliminating need for underground work

Ken Shiotani

Water-based products have been used for middle and base coatings

on the No 1 Coating Line at the Suzuka Factory since 2000, which means that water-based paints were already beings processed in the old system

However, at that time, most of the coatings were still based on organic solvents The new No 3 Coating Line, in operation since 2009, has been progressively converted to the use of water-based products, which now make up 80% of the coating materials in wastewater from the coating plant Several treatment processes were considered, but eventually it was decided to use an orthodox biological treatment method, which

is relatively cheap to operate To meet the stringent environmental standards, a new tertiary treatment facility was also installed

3 The concept: wastewater treated to the same standard as industrial water, consistently and reliably

The goal of the project was to create a system that would consistently and reliably treat all wastewater treated and released locally to the same standard as industrial water, thereby ensuring low environmental loads at the Suzuka Plant In addition to raising the quality of treated water, Honda also wanted to improve maintainability, prohibit hazardous processes, and limit the amount of waste produced

In June 2007, the government of Mie Prefecture issued a notice requiring newly built treatment facilities to meet a total pollutant standard of chemical oxygen demand (COD)1 of 10mg/liter In 2006, the old facility had a wastewater COD level of 40mg/liter Honda’s goal was

to reduce this to 7mg/liter, which would be less than one-quarter of the old level and among the best in the motor vehicle industry

Wastewater from the Suzuka Factory includes oil-bearing wastewater, which contains cutting oil from mechanical processing equipment; coating wastewater from the coating plant; general wastewater, such as domestic wastewater from kitchens and toilets, and rainwater Hiroshi Sano, an engineer with the Facilities Department, recalls that there used to be separate treatment facilities for wastewater from mechanical processing equipment and the coating plant “The treatment facility for coating

Hiroshi Sano

Treatment paths in upgraded wastewater treatment facilities

Wastewater treatment plant control building

Coating wastewater treatment facility

Oil-bearing wastewater treatment facility

Tertiary wastewater treatment facility

Circular oil separation tank

Oil-bearing wastewater

Coating wastewater

Coating wastewater intake tank

Process wastewater outflow

Processed wastewater

Emergency water tank

Secondary wastewater treatment facilityBlower room

Coating wastewater pathOil-bearing wastewater pathProcessed wastewater path (combined coating and oil-bearing wastewater)

Coating wastewater and oil-bearing wastewater combined in secondary treatment facility

Hiroaki Kubo

At the secondary treatment stage, biological reactions are used.

A panel display in the wastewater treatment plant showing the wastewater treatment process

Treated wastewater flows into a small stream created

within the factory grounds

Flowchart of the upgraded treatment facilities

Industrial wastewater

General wastewater

Reaction vessel

Reaction vessel

Reaction vessel

Neutralization vessel

Flocculation vessel

Flocculation vessel

Aeration vessel

Aeration vessel Settlement

vessel filtrationSand Neutralization vessel

Subject to total pollutant regulations

Flocculation vessel

Membrane separation vessel

Activated charcoal adsorption

Pressurization vessel

Pressurization vessel

Flocculation vessel Settlement

System C

Primary treatment

6 Types of substances reduced to one-third,

CO2 emissions cut by 45 tons per year

The central monitoring system in the operations room

The inside of a circular oil separation vessel,

located above-ground

From left: Shiotani, Kubo, Sano, Mukai

Kiyomitsu Mukai

Honda Group case studies

The Hamamatsu Factory has been transformed into a powerhouse

of automobile production Located in the middle of the Aoi Plant, this advanced environmentally responsible factory was completed in September 2010 Features include rooftop gardens and the biggest solar power system at any Honda factory The factory is also equipped with the world’s most efficient air supply system, thanks to the installation of

a new compressor in time for the opening of the new facility As a result, Hamamatsu won the compressor efficiency award at the Honda Green Conference in December 2010.

Eco-responsible initiatives combined to create advanced Green Factory

1 New environmentally responsible

automobile transmission factory

In.July.2010,.the.motorcycle.plant.at.the.Hamamatsu.Factory.began

a new life as a high-tech manufacturing facility for automobile

transmissions, and as a key support element for Honda’s global

Business Administration Division

Facilities Control Department

Hamamatsu Factory

Honda Motor Co., Ltd.

Masamichi MatsumuraHamamatsu Factory

Tetsuji Fujiwara

Eco-responsible initiatives combined to

create advanced Green Factory

December.2010

“It was difficult to manage facilities when we only had old

compressors.that.had.been.used.for.20–40.years,.and.that.sometimes

impacted.production,”.recalls.Mr Toki “We.knew.that.the.compressors

were the biggest users of energy, so we decided at the outset to

reconcile the goals of reliable air supply and the reduction of CO2.emissions.”.After.working.on.the.power.aspects.of.facility.management,

A highly efficient large-capacity IGV turbo compressor

Air supply efficiencyIN—electricity.(KWh)

15%increase

CO2.emissions

（t-CO2） 11,844 9,660 reduction2,184

4 Automatic control system combining

screw and turbo compressors

The process of creating a highly reliable system began with on-site

5 From supply-side control to

demand-side control of pressure

A control system in the central monitoring room

for electrical equipment

Super-efficient system based on optimal mix

of screw and turbo compressors

Inverter screw compressor Rotor speed adjusted

by inverter

IGV turbo compressor Opening adjusted by inlet guide vane suction valve

Capacity adjustment range

Efficiency difference:

1.0 or more

Air supply efficiency

（Nm 3 /KWh）

Air supply efficiency target

80% Rated 7.0

10.0

8.0 9.0

10.0

8.0 9.0

7.0

10.0

8.0 9.0

① Screw

② Turbo Comparison to a car:

｝Optimal control

Supercharger for low revolutions Turbocharger for high revolutions

Super-efficient system based on preferential operation for

① low loads and ② high loads Zero oil use

6 Potential to reduce CO2 emissions

by 10,000 tons by using this technology

in Japan and overseas

A solar power system has been installed on the roofs

and walls of the new factory

Presenting the technology

at the 2010 Honda Green Conference

Layout of the demand-side pressure control system

E-2 compressor room

General-purpose power building

8 Rooftop green areas and

recreational garden with flowerbeds

9 Other green areas increased by 5% to

comply with the Factory Location Act

An expanse of green lawns

in the new factory’s rooftop garden area

Thyme growing in a flower bed in the rooftop garden

The engineering staff

of the Business Administration Division

of the Facilities Control Department

Honda Group case studies

In the logistics domain, the Production Planning & Logistics Division is involved with the packing, storage, and transportation of products and components for motorcycles, automobiles, and power products Aiming

to reduce CO2 emissions from transportation, this division, led by the Products Logistics Office, worked actively during FY2011 with its logistics partners, Nippon Konpo Unyu Soko Co., Ltd., Honda Logistic Service Co., Ltd., and Honda Logistics Inc, to expand modal shifts in the transportation of completed automobiles.

1 Low-carbon deliveries retaining high quality with speed and low cost

Honda’s aim with product logistics is to deliver products produced

at the plant to the customer with.“low carbon emissions, speedily

2 Modal shift advances within 500km

To further reduce CO2, Honda in FY2011 extended this modal shift

loss.breakeven.point Accordingly,.Honda.has.expanded.its.modal.shift,