Honda ESG Data Book

Honda

ESG Data Book

2023

1 Contents

��

02

2 Honda’s Sustainability

��

03

Basic Approach

��

04

Sustainability Management Structure

��

05

Materiality Analysis

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06

Stakeholder Engagement

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07

Honda’s Initiatives and the SDGs

��

10

External Evaluations

��

12

3 Environment

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13

Basic Approach

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14

Global Management

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15

Material Issues in the Environmental

Dimension

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17

Responses to Climate Change and

Energy Issues

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18

Efﬁcient Utilization of Resources

��

22

Preservation of Clean Air

��

25

Other Important Issues

��

26

4 Social

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32

Safety

��

33

Quality

��

47

Human Resources

��

63

Supply Chain

��

87

Social Contribution Activities

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103

5 Governance

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110

Corporate Governance

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111

Compliance

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124

Risk Management

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127

6 Performance Data

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132

Environmental Data

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133

Social Data

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143

Governance Data

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150

7 Data

��

153

Assurance (Environment/Social)

��

154

GRI Content Index

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155

Financial Data

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161

01

Honda ESG Data Book

2023

Editorial Policy

1

Honda’s

Sustainability

2

Environment

3

Social

4

Governance

5

Performance

Data

6

Data

7

Contents

1

Organizations covered

This report covers the entire Honda Group, which consists of

Honda Motor Co., Ltd. and its 382 group companies in and

outside of Japan (comprising 313 consolidated subsidiaries and

69 afﬁliated companies accounted for by the equity method).

Sections that do not cover the entire Honda Group are indicated

as such with a reference to the speciﬁc scope.

Period covered

Primarily, this report focuses on the activities undertaken during

FY2023 (April 1, 2022 – March 31, 2023), including past

background information and activities conducted up to the time

of publication, as well as related matters, and future outlook and

plans.

Standards

Honda ESG Databook has been compiled in accordance with

GRI Standard 2021. For details, please refer to the GRI Content

Index page (

p. 155).

• The guidelines referenced in calculations and/or the basis for

those calculations are shown in the corresponding sections.

Assurance

The environmental and social data indicated with for the year

ended March 31, 2023, received the independent practitioner’s

assurance.

Accounting standards

Figures up to FY2014 are compiled pursuant to generally

accepted accounting principles in the United States (U.S. GAAP)

while ﬁgures from FY2015 and thereafter are compiled pursuant

to International Financial Reporting Standards (IFRS).

Date of publication

Publication of this report: June 2023

Planned publication of next report: June 2024

Honda releases Honda ESG Data Book every year.

Contact for publication and inquiries

Honda Motor Co., Ltd.

Environmental Planning Division, Corporate Planning

2-1-1 Minami Aoyama, Minato-ku, Tokyo, Japan 107-8556

E-mail: [email protected]

Disclaimer

This databook contains past and current factual data of Honda Motor Co.,

Ltd. as well as plans and outlooks for future projections based on its

management policies and strategies as of the date of publication. These future

projections consist of assumptions or decisions derived from the information

available at the time this report was produced. Please note that the results of

future business activities and events may vary depending on changes in

conditions and circumstances. This report may also contain corrections,

restatements, or signiﬁcant changes to the information provided in previous

reports. We would like to kindly ask our readers to acknowledge the above.

How to use this report

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Disclosure Material

Medium- to long-term perspective

Results

Financial

Nonﬁnancial

Securities Report

Form 20-F

Financial

Statements

Corporate

Governance

Reports

Honda Report

(Integrated Reports)

ESG

Data Book

2-1, 2-2, 2-3, 2-4, 2-5

02

Honda ESG Data Book

2023

Contents

Honda’s

Sustainability

2

Environment

3

Social

4

Governance

5

Performance

Data

6

Data

7

Editorial Policy

1

Honda s

Sustainability

2

03

Honda ESG Data Book

2023

The Honda Philosophy forms the values shared by all Honda Group companies and

all of their associates. It is the basis for Honda’s corporate activities and the

associates’ behavior and decision-making.

To achieve both the creation of growth opportunities for the Company and a

sustainable society, Honda has set “Striving to be a company society wants to exist”

as its direction for the 21st century. It is also advancing initiatives known as “Creating

the Joys,” “Expanding the Joys” and “Ensuring the Joys for the Next Generation.”

The “2030 Vision” is one milestone indicating in concrete terms the direction

Honda ought to take toward realizing these objectives.

For Honda to achieve sustainability, it is important to meet stakeholders’

expectations and needs by providing value through its products and services. Equally

important is to fulﬁll its corporate social responsibility, for instance, by considering its

impact on the environment and society and to contribute to the resolution of social

issues through its business activities.

To this end, Honda devises medium- and long-term strategies that are based on

the perspectives of both stakeholders and Honda itself. In determining these

perspectives, Honda uses the materiality matrix as its guide and considers the roles

it should play and contributions it should make, geared to the characteristics of each

region around the world.

Direction for the 21st Century

Striving to be a company society wants to exist

[Guidelines]

Creating the

Joys

Expanding

the Joys

Ensuring the

Joys for the Next

Generation

2030 Vision

Serve people worldwide with the

“joy of expanding their life’s potential”

—Lead the advancement of mobility and enable people

everywhere in the world to improve their daily lives—

Medium- and long-term strategies

Fiscal year plan

Honda Philosophy

Materiality Matrix

( p. 06)

Reﬂecting in Management

Stakeholder

Engagement

( p. 07)

Basic Approach

2 Honda’s Sustainability

Basic Approach

��

04

Sustainability Management

Structure

��

05

Materiality Analysis

��

06

Stakeholder Engagement

��

07

Honda’s Initiatives and the

SDGs

��

10

External Evaluations

��

12

2-12

04

Honda ESG Data Book

2023

Contents Editorial Policy

1

Environment

3

Social

4

Governance

5

Performance

Data

6

Data

7

Honda’s

Sustainability

2

Sustainability Management Structure

Honda established the Corporate Integration Strategy Meeting chaired by the Chief

Executive Ofﬁcer (CEO) with the aim of building consensus on the company-wide

direction based on recognition of the environment both internally and externally, as

well as material issues that Honda as a whole should tackle. Policies and initiatives

for sustainability issues are discussed and examined in the meeting.

While continuing activities to “increase Honda’s value of existence and receive

due recognition from society by showing to the public its entire corporate activities

rooted in the Honda Philosophy,” the Corporate Integration Strategy Meeting will

plan company-wide strategies that reﬂect a sustainability perspective.

To promote and reinforce efforts in the environmental and safety-related

domains, which represent the most important material issue as a mobility company,

Honda has established the World Environment and Safety Strategy Committee

chaired by the Chief Executive Ofﬁcer (CEO).

Since strategies in the environmental domain also include Honda’s response to

climate change, the CO

2

emissions reduction targets set by the Committee are

examined and decided by the Board of Directors.

Taking into consideration the material issues examined at these committees,

Honda determines corporate strategies through the Executive Council and the Board

of Directors. The Company then breaks them down into policies and measures for

Operations and Supervisory Units and subsidiaries for actual execution.

Structure for Deliberating Sustainability Initiatives

Sustainability management structure from FY2021

Suggest Instruct

Provide policies

Implement measures

Report progress

Board of Directors

Executive Council

Operations and Supervisory Units / Subsidiaries

Material

issues

Corporate Integration Strategy Meeting

Chair: Chief Executive Ofﬁcer (CEO)

• Determine company-wide policies and identify material

issues

• Information disclosure direction

• Issues/progress

World Environment and Safety Strategy Committee

Chair: Chief Executive Ofﬁcer (CEO)

Deliberate on material issues related to environmental and

safety-related domains including:

• Long-term policies, targets and scenarios for achieving

targets

• Monitor progress

2 Honda’s Sustainability

Basic Approach

��

04

Sustainability Management

Structure

��

05

Materiality Analysis

��

06

Stakeholder Engagement

��

07

Honda’s Initiatives and the

SDGs

��

10

External Evaluations

��

12

2-12, 2-14

05

Honda ESG Data Book

2023

Contents Editorial Policy

1

Environment

3

Social

4

Governance

5

Performance

Data

6

Data

7

Honda’s

Sustainability

2

Materiality Analysis

Toward achieving our long-term vision which is based on the Honda Philosophy, key

issues to be addressed are identiﬁed and prioritized from our perspective and from

the viewpoint of our stakeholders. The materiality matrix provides the essential

framework for organizing these issues. By creating and employing this matrix, we

conﬁrmed the coverage of overall issues and clariﬁed where each of them is

positioned.

The materiality matrix was prepared in two stages: identifying issues and then

categorizing them according to their materiality. Issues were identiﬁed through

dialogue among members of respective business operations within the Company.

The process also took into account various viewpoints including global and value

chain perspectives, the status of technological innovation, the Sustainable

Development Goals (SDGs)*

1

and social issues pursuant to the Paris Agreement. We

evaluated the materiality of these issues in light of the views of stakeholders through

dialogue with leading environmental, social and corporate governance rating

agencies and NGOs in Europe and the United States that focus on sustainability

issues. The contents were also evaluated and assessed by management at the

Corporate Integration Strategy Meeting.

This resulted in the successful visualization of material issues on a priority basis

as a mobility company, including the realization of a carbon-free and collision-free

mobile society. We believe our efforts should contribute to the achievement of certain

SDGs, notably Goal 13 “Take urgent action to combat climate change and its

impacts”; Goal 7 “Ensure access to affordable, reliable, sustainable and modern

energy for all”; and Goal 3 “Ensure healthy lives and promote well-being for all at all

ages.” Critical issues speciﬁed based on the views of stakeholders are being

reﬂected in company-wide strategy and incorporated into respective business

activities to achieve the Company’s vision.

Evaluation of Issues from the Stakeholders’ Perspective

*1 The SDGs are international objectives

related to such areas as poverty,

hunger, energy, climate change and a

peaceful society adopted at the United

Nations Sustainable Development

Summit in 2015.

*2 Disparity in quality of life between those

who do and do not have access to

mobility

Materiality matrix

Important to Honda

Prioritizing issues to be addressed

Important to Stakeholders

Extremely highHigh

Issues in each quadrant share the same priority.

High Extremely high

• Responding to climate change and energy issues

• Ensuring clean air

• Advancing powertrain electriﬁcation

• Utilizing resources efﬁciently

• Signiﬁcantly reducing trafﬁc fatalities

• Assuring outstanding product quality

• Eliminating the mobility divide*

2

• Conserving water resources

• Deploying total supply chain sustainability initiatives

• Respecting human rights

• Improving the quality of the mobility experience

• Applying automation and information technologies to

everyday life

• Strengthening brand management

• Utilizing management resources efﬁciently

• Strengthening corporate governance

• Expanding diversity and development of human resources

• Ensuring occupational health and safety

• Preserving biodiversity

• Managing chemical substances and preventing pollution

• Contributing to the economic development of developing

countries

Priority issues

Material issues

Company

society

wants to

exist

Realizing 2030 Vision

Reﬂecting in corporate strategy

2 Honda’s Sustainability

Basic Approach

��

04

Sustainability Management

Structure

��

05

Materiality Analysis

��

06

Stakeholder Engagement

��

07

Honda’s Initiatives and the

SDGs

��

10

External Evaluations

��

12

2-12, 2-16, 2-29, 3-1, 3-2, 3-3

06

Honda ESG Data Book

2023

Contents Editorial Policy

1

Environment

3

Social

4

Governance

5

Performance

Data

6

Data

7

Honda’s

Sustainability

2

Stakeholder Engagement

Basic Approach

Participation in

councils, etc.

Economic

and industry

organizations

Participation in international

initiatives, regular

communication,

etc.

International

organizations

and NGOs

Merchantability

veriﬁcation for products,

co-development of

technologies,

etc.

Research

institutes

Customer satisfaction

surveys, Enjoy

Honda,

etc.

Customers

National and

local government

Associate satisfaction

surveys, dialogue

between executives

and associates,

etc.

Associates

Plant tours, social

contribution activities

by associates,

etc.

Local

communities

Cooperation through

mutually

complementary

relationship,

etc.

Business

partners

Communication with

journalists, new model

launch events,

etc.

Media

Supplier networking

events, supplier risk

assessments,

etc.

Suppliers

Dealer Conferences/

brieﬁngs,

etc.

Dealers

Honda

Shareholder meeting

and brieﬁngs for

institutional

investors, etc.

Shareholders

and investors

Dialogues concerning local

government policies and

available technologies,

feasibility studies,

etc.

Stakeholder engagement

To be a “company society wants to exist,” Honda must put into practice a

communication cycle. This means to: 1) appropriately and accurately convey to

society the value that it seeks to provide; 2) engage in dialogue with diverse

stakeholders to grasp and understand the demands and expectations placed on the

Company; 3) translate these into concrete measures and implement them; and 4)

listen to stakeholders’ evaluations of its activities.

Especially in recent years, the growing scale and globalization of companies,

along with the rapid proliferation of IT, have heightened the impact of companies on

society, and vice-versa. As this process continues to accelerate, Honda considers

that stakeholder dialogue is a beneﬁcial tool that leads to a proper understanding of

stakeholders regarding the Company’s initiatives while also giving the Company an

understanding of changes and risks in the social environment.

Based on this understanding, Honda engages in dialogues globally through

various opportunities. These dialogues are conducted between key stakeholders

(that are either impacted by Honda’s business activities or whose activities impact

Honda’s business activities) as shown in the diagram indicated at the right and

respective divisions within Honda.

As an example, engagement with shareholders and investors consists of

dialogue aimed at ensuring that Honda is understood accurately through shareholder

relations and investor relations activities.

In addition, opinions gained from dialogues with leading ESG rating agencies

and NGOs are reﬂected in the Materiality Analysis ( p. 06), which is utilized in

identifying issues Honda ought to be addressing.

2 Honda’s Sustainability

Basic Approach

��

04

Sustainability Management

Structure

��

05

Materiality Analysis

��

06

Stakeholder Engagement

��

07

Honda’s Initiatives and the

SDGs

��

10

External Evaluations

��

12

2-12, 2-29, 413-1, 413-2

07

Honda ESG Data Book

2023

Contents Editorial Policy

1

Environment

3

Social

4

Governance

5

Performance

Data

6

Data

7

Honda’s

Sustainability

2

* Quality, cost, delivery, development,

and environment

Stakeholder Key means of dialogue Overview Frequency

Corresponding items in

the materiality matrix

Point of contact Reference

Customers

Customer satisfaction

survey

To ensure customer satisfaction worldwide, we conduct a customer satisfaction survey for

customers who have received after-sales service at a dealer around the world and engage in

improvement activities to provide high-quality service operations.

Annually

Strengthening brand

management

Customer-related

divisions

p. 55

Shareholders

and investors

Financial results press

conference

We hold press conferences and web conferences to review our ﬁnancial results and various

initiatives. We use the feedback and requests thus obtained in maximizing our corporate value.

4 times/year

Finance divisions

https://global.

honda/

investors/

Individual sessions and

conferences

We hold sessions and opinion exchange meetings to explain our ﬁnancial conditions as well

as production, R&D, and business strategies. We use the feedback and requests thus

obtained in maximizing our corporate value.

Year round

Suppliers

Suppliers Conferences

We hold periodic conferences to share with suppliers the direction of our business and the

substance of our initiatives and to communicate Honda’s company-wide policies and

purchasing policies. We also present Supplier Awards to recognize those suppliers who have

achieved outstanding results in each aspect of QCDDE*. At the end of a conference, we

conduct a questionnaire survey for participants to identify their level of satisfaction and what

can be improved for the next event as an effort to further enhance this activity.

Annually

Assuring outstanding

product quality

Deploying total supply

chain sustainability

initiatives

Purchasing divisions

p. 102

Business plan

networking events and

meetings to share

business status

We share our medium- to long-term management policies, business plans, and information

on sustainability-related matters (ESG issues, compliance, corporate governance, and risk

assessment).

Annually

Assuring outstanding

product quality

Deploying total supply

chain sustainability

initiatives

ESG inspection of

suppliers

We conduct an ESG inspection for key suppliers to prevent compliance violations and reduce

our environmental impact in accordance with the Honda Supplier Sustainability Guidelines.

( p. 90)

Annually

Deploying total supply

chain sustainability

initiatives

Strengthening corporate

governance

p. 95

Economic and

industry

organizations

Participation in

activities of industry

organizations

We participate in various councils to identify the expectations and demands of society

through activities of industrial organizations, create a sustainable business environment and

contribute to society.

Year round

Division in charge of

government and

industry relations, others

International

organizations

and NGOs

Participation in

international initiatives

We participate in various councils to identify the expectations and demands of society and

contribute to society, toward the realization of a sustainable society.

Year round

Divisions in charge of

sustainability planning,

others

Local

communities

Driving safety

promotion activities

Honda adheres to the global safety slogan “Safety for Everyone” and takes an active role in

promoting trafﬁc safety for all members of society who participate in transportation, from

children to the elderly. This is achieved through the principles of “safety handed down from

person to person” and “participatory experiential education,” as well as the use of safe

driving support technology to prevent accidents. Honda is currently engaged in trafﬁc safety

promotion activities in 43 countries and regions worldwide.

Year round

Signiﬁcantly reducing

trafﬁc fatalities

Divisions in charge of

promoting driving

safety

p. 34

Helping people with

disabilities who want to

resume driving

We aim to reduce the gap in social participation by expanding transportation options, and we support

the establishment of a support system in the local community for people who wish to resume driving by

providing welfare vehicles (driving support devices) and supporting occupational therapists and others.

Year round Eliminating mobility divide

p. 40

Beach clean-up project

We undertake joint activities among members of the Honda Group and local residents to clean

up the beaches using our originally developed equipment. Since the launch of the project in

2006, we have conducted the activities about 406 times on various beaches across Japan,

and the cumulative total of beach trash collected by the project amounts to 520 tons.

Divisions in charge of

promoting social

contribution activities

p. 106

Activities to conserve

satoyama landscapes

We have concluded an agreement with Hachioji City, Tokyo, in which Honda’s associates

and their families carry out satoyama landscape conservation activities within the Kamikawa

no Sato special green conservation area.

Year round

National

and local

governments

Support for disaster-

affected areas

We provide product supports and donations to disaster-affected areas in the event of

disasters.

Divisions in charge of

promoting social

contribution activities,

others

https://www.

honda.co.jp/

philanthropy/

saigai/

Associates

Activity measurement

We are taking initiatives to measure and improve employee engagement for creating a more

comfortable and conducive work environment.

Activity

measurement:

Annually

Expanding diversity and

the development of

human resources

Human resources

divisions

p. 80

Examples of initiatives in FY2023

Stakeholder Engagement

2 Honda’s Sustainability

Basic Approach

��

04

Sustainability Management

Structure

��

05

Materiality Analysis

��

06

Stakeholder Engagement

��

07

Honda’s Initiatives and the

SDGs

��

10

External Evaluations

��

12

2-12, 2-29, 413-1, 413-2

08

Honda ESG Data Book

2023

Contents Editorial Policy

1

Environment

3

Social

4

Governance

5

Performance

Data

6

Data

7

Honda’s

Sustainability

2

To carry out its responsibility as a global mobility company, Honda engages in

dialogues with government, economic and industry organizations and also

cooperates with external bodies. In Japan, Honda executives serve as vice chairman

and committee head within the Japan Automobile Manufacturers Association

(JAMA); committee head in the Japan Business Federation (Keidanren); and vice

chairman and committee head in the Tokyo Chamber of Commerce and Industry.

In addition, Honda executives serve as committee and working group chairs

and other representatives in the international motorcycle and automobile industry

bodies such as The International Motorcycle Manufacturers Association (IMMA) and

Organisation Internationale des Constructeurs d’Automobiles (OICA). Furthermore,

Honda cooperates with initiatives related to sustainability through membership in the

World Economic Forum (WEF) and the World Business Council for Sustainable

Development (WBCSD).

At Honda, we delegate authority to Regional Operations within a certain scope

when executing business in respective regions in order to enhance local autonomy

and enable speedy decision-making. Political contributions* can be made following

required internal procedures based on the laws and regulations of respective

countries.

Honda engages in advertising, publicity, and sales promotion activities in good faith

so as to constantly meet the trust and expectations of customers and society.

We properly engage in product advertising, publicity, and sales promotion

activities to avoid misleading customers.

Cooperation with External Organizations Appropriate Advertising and Publicity

Stakeholder Engagement

* Political contributions were made to the

People’s Political Association in the

amounts of ¥25 million in FY2020, ¥25

million in FY2021 and ¥25 million in

FY2022. Honda has conﬁrmed that

these expenditures do not infringe on

the Honda Guidelines for the Prevention

of Bribery and Corruption.

2 Honda’s Sustainability

Basic Approach

��

04

Sustainability Management

Structure

��

05

Materiality Analysis

��

06

Stakeholder Engagement

��

07

Honda’s Initiatives and the

SDGs

��

10

External Evaluations

��

12

2-12, 2-28, 2-29, 203-1, 415-1

09

Honda ESG Data Book

2023

Contents Editorial Policy

1

Environment

3

Social

4

Governance

5

Performance

Data

6

Data

7

Honda’s

Sustainability

2

Contribution to SDGs

Honda’s Initiatives and the SDGs

Priority issues Honda’s initiatives SDGs supported by Honda

Responding to

climate change and

energy issues

Initiatives for zero environmental impact

( p. 17)

Responses to climate change and

energy issues ( p. 18)

Logistics initiatives ( p. 99)

Reducing environmental impact together

with suppliers ( p. 92)

With a view to leading the way in realizing a carbon-free society, Honda undertakes corporate activities

while giving consideration to everything from the purchase of raw materials to end use of its products.

Honda believes its measures against climate change, including vehicle electriﬁcation and the use of

portable batteries and hydrogen energy, will lead to stabilizing food production, ensuring energy

supply and facilitating the creation of more comfortable communities.

Advancing powertrain

electriﬁcation

Advancing powertrain electriﬁcation

( p. 20)

Preservation of

clean air

Preservation of clean air ( p. 25)

Honda is pushing ahead with the preservation of clean air and water resources by developing

technologies to clean exhaust emissions from product usage and reduce the amount of harmful

substances in the exhaust air and wastewater from production processes.

Utilizing resources

efﬁciently

Efﬁcient utilization of resources ( p. 22)

Honda is cooperating and collaborating with both internal and external stakeholders to realize zero risk

in relation to resources and waste generated during the stages spanning from resource procurement

to product disposal. From the standpoint of resource circulation, Honda strives to offer products that

fully contribute to the environment and reduce waste.

Signiﬁcantly reducing

trafﬁc fatalities

Toward a collision-free mobile society

( p. 34)

Under its global safety slogan, “Safety for Everyone,” Honda aims to realize a collision-free society in

terms of hardware and software through the development and spread of safety technologies for

automobiles, such as the Honda SENSING advanced safety and driver-assistance system, while

engaging in worldwide initiatives to provide education on trafﬁc safety including motorcycles.

Eliminating the

mobility divide

Honda’s Sustainability ( p. 04)

Honda seeks to provide more options of mobility to reduce the gap in social participation. As such, the

Company is supporting the expansion of opportunities and venues for persons with disabilities to be

active by providing welfare vehicles. Looking ahead, Honda will provide a sustainable means of

mobility through its technologies and services and help resolve social issues through business

activities while leveraging its unique strengths in having a broad range of businesses and products,

including motorcycles, automobiles and power products.

Initiatives by priority issue

In order to share joys with stakeholders, Honda seeks to contribute to the

advancement of a mobile society with its original and useful technologies that

anticipate the needs of the times.

This approach aligns with the United Nations’ SDGs, speciﬁcally, Goal 9 “Build

resilient infrastructure, promote inclusive and sustainable industrialization and foster

innovation,” Goal 12 “Ensure sustainable consumption and production patterns”

and Goal 17 “Strengthen the means of implementation and revitalize the global

partnership for sustainable development,” and aligns with Honda’s overall

corporate activities.

Honda also believes that creating value for society while pursuing economic

value will lead to sustainable corporate management and ultimately contribute to the

sustainability of society.

In accordance with the material issues for the realization of the 2030 Vision

( p. 06), Honda will contribute to the achievement of the SDGs through its

corporate activities.

2 Honda’s Sustainability

Basic Approach

��

04

Sustainability Management

Structure

��

05

Materiality Analysis

��

06

Stakeholder Engagement

��

07

Honda’s Initiatives and the

SDGs

��

10

External Evaluations

��

12

10

Honda ESG Data Book

2023

Contents Editorial Policy

1

Environment

3

Social

4

Governance

5

Performance

Data

6

Data

7

Honda’s

Sustainability

2

Material issues Honda’s initiatives SDGs supported by Honda

Conserving water

resources

Conserving water resources ( p. 26)

Honda contributes to the conservation of precious freshwater by thoroughly managing the amount of

water intake and quality of wastewater at its plants and by installing equipment capable of 100% water

recycling and reuse. Honda also manages a water conservation fund in North America, which supports

the improvement and preservation of coastal areas for future generations.

Deploying total supply

chain sustainability

initiatives

Strengthening supply chain sustainability

( p. 88)

Reducing our environmental impact

together with suppliers ( p. 92)

Together with suppliers around the world, Honda is making efforts throughout the supply chain to realize

a sustainable society while taking into account the environment, safety, human rights, compliance and

social responsibilities. In doing so, Honda has formulated the Honda Green Purchasing Guidelines and

Honda Supplier Sustainability Guidelines and has been conﬁrming adherence based on these guidelines.

Honda has initiated an ESG survey on suppliers having signiﬁcant inﬂuences on the Company and will

expand application of the survey in collaboration with overseas purchasing sites.

Respecting human

rights

Human rights ( p. 67)

Honda human rights policy ( p. 146)

Initiatives related to diversity ( p. 71)

Honda upholds the idea of “Respect for the Individual” in the Honda Philosophy and includes “Respect

of Human Rights” in the Honda Code of Conduct to show its policy to “maintain its stance as a

company committed to practicing fairness and sincerity and respecting human rights.” In its company-

wide risk management activities, Honda also regards human rights as an important risk and manages

it accordingly.

Utilizing management

resources efﬁciently

Honda’s Sustainability ( p. 04)

Understanding opportunities and responsibilities in the value chain is essential in identifying, among a

number of social issues, Honda’s priority issues in management. Honda aims to create new value by

considering how to transform and evolve the value of existing businesses in step with the rapidly changing

social expectations and customer needs from the two perspectives of forecasting and backcasting.

Strengthening

governance

Corporate governance ( p. 111)

Honda seeks sustainable growth and the enhancement of corporate value over the medium to long

term and strives to be a company society wants to exist. Honda strives to enhance corporate

governance as one of the most important tasks for its management. At the same time, it will continue

to work for ensuring the transparency of its management through appropriate disclosure of corporate

information to further bolster trust and appreciation from society.

Expanding diversity

and the development

of human resources

Diversiﬁcation aimed at leveraging total

workforce strength ( p. 69)

Initiatives related to diversity ( p. 71)

Honda respects individual differences and encourages the integration of these individualities. While

positioning workforce diversiﬁcation as a company-wide priority task, Honda is working to expand

women’s participation, promote an understanding and acceptance of LGBT persons, increase

opportunities for experienced associates and expand employment of people with disabilities. Also,

Honda carries out personnel education based on on-the-job training (OJT) and ensures to assign

associates to the most suitable positions by setting up the Global Job Grade System.

Ensuring occupational

health and safety

Occupational health and safety

( p. 81)

Honda has been seeking to realize a work environment which brings the joy that all people can work

with a true sense of security under this principle. At Honda, the Health and Safety Audit Committee

performs health and safety audits throughout the Company by using an Occupational Safety and

Health Management System (OSHMS).

Biodiversity

conservation

Biodiversity conservation ( p. 27)

Honda believes that minimizing the environmental impact resulting from its products and corporate

activities represents its greatest contribution to biodiversity conservation. Accordingly, Honda has

speciﬁed the priorities in the Honda Biodiversity Guidelines, including the development of

environmental technology, initiatives based on corporate activities and initiatives for living in harmony

with local communities. The Company has been proactively promoting them.

Managing chemical

substances and

preventing pollution

Management and reduction of chemical

substances ( p. 27)

Honda manages and works to reduce chemical substances contained in automotive components

from the product design and development stages. Relevant information is tabulated and managed

throughout the supply chain via a system to collect information on materials and chemical substances

contained in components. Honda is also making efforts to reduce heavy metals that are considered to

have negative impacts on the environment, including water quality.

Contributing to the

economic

development of

developing countries

2030 Vision ( p. 04)

Under its 2030 Vision, Honda aims to enrich people’s lives by providing more efﬁcient means of

mobility and greater opportunities for business or learning. In expanding business overseas, Honda

has evolved its business model from exporting ﬁnished products to local production and then to local

development, thereby strengthening production and development functions in emerging countries.

Honda aims to contribute to each region through employment and OJT-based education.

Honda’s Initiatives and the SDGs

Honda’s Initiatives and SDGs https://global.honda/sustainability/sdgs.html?from=navi_header

Initiatives by material issue

2 Honda’s Sustainability

Basic Approach

��

04

Sustainability Management

Structure

��

05

Materiality Analysis

��

06

Stakeholder Engagement

��

07

Honda’s Initiatives and the

SDGs

��

10

External Evaluations

��

12

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Contents Editorial Policy

1

Environment

3

Social

4

Governance

5

Performance

Data

6

Data

7

Honda’s

Sustainability

2

External Evaluations

In December 2022, Honda was selected for the sixth consecutive year as a

component of the Dow Jones Sustainability World Index after being ranked within the

top ﬁve in the global automobile sector in the annual review of the Dow Jones

Sustainability Indices (DJSI), a key benchmark for socially responsible investing. At

the same time, the Company was selected for the eighth consecutive year as a

component of the Dow Jones Sustainability Asia/Paciﬁc Index.

The DJSI are investment indices run by U.S.-based S&P Dow Jones Indices

LLC. The sustainability of the world’s leading companies is evaluated according to

economic, environmental, and social criteria, and companies that demonstrate

overall excellence are selected for inclusion in the indices.

In March 2023, CDP released the results of a survey on climate change initiatives

and the reduction of GHG emissions by major companies worldwide.

Honda received a B rating in the CDP Climate Change Report 2022, Japan

edition.

CDP is an international NPO that provides a global system for measuring,

disclosing, managing, and sharing important environmental information from

companies and cities. Company initiatives to face environmental challenges are

evaluated in relation to four elements: information disclosure, awareness,

management, and leadership.

Please refer to pages 55 to 58 of the Company’s integrated report, Honda

Report 2022 for the items required by the FSB Task Force on Climate-related

Financial Disclosures (TCFD), one of the CDP evaluation indices.

Honda Selected as a Component of the Dow

Jones Sustainability World Index

Securing a B Rating in the CDP Climate Change

Report 2022, Japan Edition

Honda has been selected as a “Top 10%”

company in S&P Global’s Sustainability

Yearbook - 2023 Rankings.

Honda has been recognized as a “Top 10%” company in the 2023 Sustainability

Yearbook by S&P Global. The company was evaluated on its economic,

environmental, and social performance, and chosen as an outstanding leader in

sustainability.

In 2023, S&P Global evaluated over 7,800 companies across 61 sectors

worldwide and selected 708 companies for inclusion in the Sustainability Yearbook.

In the automobile sector, Honda was one of just three companies chosen as a

“Top 10%” enterprise, with just one company selected as “Top 1%” and none

selected as “Top 5%.”

It is worth noting that the evaluation criteria have been updated from previous

years, with the previous “Gold Class,” “Silver Class,” and “Bronze Class”

classiﬁcations now replaced with “Top 1%,” “Top 5%,” and “Top 10%.”

Pages 55 to 58 of Honda Report 2022

https://global.honda/sustainability/integratedreport/pdf/

Honda_Report_2022-en-all-m.pdf#page=29

2 Honda’s Sustainability

Basic Approach

��

04

Sustainability Management

Structure

��

05

Materiality Analysis

��

06

Stakeholder Engagement

��

07

Honda’s Initiatives and the

SDGs

��

10

External Evaluations

��

12

Honda ESG Data Book

2023

Contents Editorial Policy

1

Environment

3

Social

4

Governance

5

Performance

Data

6

Data

7

Honda’s

Sustainability

2

Environment

3

Material issues

Responding to climate change and

energy issues

Ensuring clean air

Advancing powertrain electriﬁcation

Utilizing resources efﬁciently

Conserving water resources

Preserving biodiversity

Managing chemical substances and

preventing pollution

13

Honda ESG Data Book

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* CVCC: Compound Vortex Controlled

Combustion

Basic Approach

Ever since the 1960s, Honda has actively endeavored to solve environmental issues.

In the 1970s, Honda developed the low-pollution CVCC* engine, which successfully

reduced carbon monoxide, hydrocarbon and nitrogen oxide (NOx) emissions, making

Honda the world’s ﬁrst automaker to comply with the U.S. Clean Air Act – a regulation

considered to be the most stringent in the world at the time.

In 1992, Honda established the Honda Environment Statement, serving as the

Company’s guideline for all environmental initiatives. The statement articulates the

basic stance towards reducing the environmental impact at every stage in the life

cycle of its products, from product procurement to the design, development,

production, transportation, sale, use and disposal stages.

In addition, for Honda to further promote the above-mentioned environmental

initiatives and continue to be a company society wants to exist, the Honda

Environmental and Safety Vision was established in 2011. Aimed at the realization of

the joy and freedom of mobility and a sustainable society where people can enjoy life,

as is declared in this vision, each of Honda’s global business sites is engaging in the

reduction of an array of environmental impacts. Such initiatives include the reduction

of greenhouse gas (GHG) emissions, which are considered to be a cause of climate

change, as well as energy use; the efﬁcient use of resources, including water and

minerals; and the appropriate treatment and reduction of waste, with the aim of

conserving the global environment and biodiversity.

Honda will realize this vision by conducting these activities while sharing

Honda’s Environment Statement with everyone associated with Honda, including

suppliers and distributors in addition to Honda Group companies.

Honda Environmental and Safety Vision/Honda’s Environment Statement

3 Environment

Basic Approach

��

14

Global Management

��

15

Material Issues in the

Environmental Dimension

��

17

Responses to Climate

Change and Energy Issues

��

18

Efﬁcient Utilization of

Resources

��

22

Preservation of Clean Air

��

25

Other Important Issues

��

26

Honda Environmental and Safety Vision

Realizing the joy and freedom of mobility and a sustainable society where

people can enjoy life

Honda’s Environment Statement

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 activities. Only in this way will we be able to count on a successful

future, not only for our company, but also for the world.

We should pursue our daily business under the following principles:

1. We will make efforts to recycle materials and conserve resources and energy

at every stage of our products’ life cycle—from research, design, production

and sales to service and disposal.

2. We will make every effort to minimize and properly dispose of the waste and

contaminants generated at every stage of a product’s life cycle.

3. As a member of both the company and society, each associate will focus on

the importance of making efforts to preserve human health and the global

environment, and will do his or her part to ensure that the company as a

whole acts responsibly.

4. We will consider the inﬂuence that our corporate activities have on the local

people’s health, environment and society, and endeavor to improve the social

standing of the company.

Established and announced in June 1992

Established in 2011

413-1, 413-2

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Honda ESG Data Book

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Contents Editorial Policy

1

Honda’s

Sustainability

2

Social

4

Governance

5

Performance

Data

6

Data

7

Environment

3

Global Management

Honda recognizes that environmental issues such as climate change and energy/

resource issues, which require global responses, are material issues that impact

Honda’s business operations. Based on this recognition, Honda established the

Environmental Committee in 1991, chaired by the president and attended by the

management, which became the World Environmental Committee in 1995 to discuss

and formulate plans for environmental conservation activities at the global level. Since

then, it has continued to be held every year as the World Environment and Safety

Strategy Committee. This re-established Committee, chaired by the Chief Executive

Ofﬁcer (CEO), deliberates on the risks and opportunities concerning climate change,

energy and resources, as well as short-, medium-, and long-term environmental

strategies based on them. The Committee formulates global medium- to long-term

environmental policies and plans based on company-wide policies and medium- to

long-term management plans. All executives are involved in the decisions made by

the Committee.

At respective Business Operations, an environmental manager and an

environmental secretariat have been in place, and a PDCA cycle has been

implemented for the promotion of environmental measures, based on the

establishment of a system that covers all functions within the Business Operations. In

each Region, the Six Region Environmental Secretariat Committee has been held,

bringing together the environment-related divisions of each Regional Operation. After

sharing information at this Committee, these divisions formulate their own speciﬁc

action plans and implement necessary measures.

The progress of environmental initiatives and globally relevant themes discussed

and coordinated between Business Operations and Regional Operations are

consolidated in the Corporate Planning Supervisory Unit, which serves as the

secretariat, and reported at the World Environment and Safety Strategy Committee.

These are reﬂected in the next medium-term management plan and policies, and PDCA

cycles are implemented at Business Operations, Regional Operations, and environment-

related divisions, thereby continuously strengthening environmental management.

Risks related to environmental regulations and natural disasters caused by climate

change are also identiﬁed as management and monitoring items, reﬂected in risk

management activities, and integrated into company-wide priority risks ( p. 128).

Honda’s existing global vehicle assembly and product assembly plants have acquired

ISO 14001, an international certiﬁcation for environmental management systems (as

of March 2023).

Therefore, coverage of environmental management systems is virtually 100%.

Honda is in the process of obtaining certiﬁcation for newly built plants.

In accordance with Honda’s Environment Statement, the Company has introduced

environmental management systems at all business sites and in each division. Along

with promoting continuous efforts to improve environmental performance, it strives to

comply with its own voluntary environmental standards, which are more stringent

from an environmental perspective than any national or local regulations.

In the last ﬁve years, Honda has not committed any serious noncompliance with

environmental laws and regulations, paid substantial ﬁnes/sanctions in breach

thereof, or recorded any major chemical releases.

In addition, no environment-related complaints were received through the ofﬁcial

complaint resolution program.

Environmental Management Promotion

Structure and Management Cycle

Environmental Management System

Current Status of Compliance with

Environmental Regulations

3 Environment

Basic Approach

��

14

Global Management

��

15

Material Issues in the

Environmental Dimension

��

17

Responses to Climate

Change and Energy Issues

��

18

Efﬁcient Utilization of

Resources

��

22

Preservation of Clean Air

��

25

Other Important Issues

��

26

2-27, 307-1

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Honda ESG Data Book

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Contents Editorial Policy

1

Honda’s

Sustainability

2

Social

4

Governance

5

Performance

Data

6

Data

7

Environment

3

Environmental Accounting in Japan

To facilitate efﬁcient environmental management, Honda tabulates the cost reduction

and proﬁt attributable to its environmental protection activities, thus working to keep

abreast of their economic impact.

Going forward, Honda will continue to improve the accuracy of this data,

considering it as an indicator of corporate value and as a tool for making

environment-related management decisions.

Environmental Accounting

Cost of environmental conservation activities and investments p. 142

Economic beneﬁts (effect on revenue and expenses) p. 142

Global Management

3 Environment

Basic Approach

��

14

Global Management

��

15

Material Issues in the

Environmental Dimension

��

17

Responses to Climate

Change and Energy Issues

��

18

Efﬁcient Utilization of

Resources

��

22

Preservation of Clean Air

��

25

Other Important Issues

��

26

201-2

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Honda ESG Data Book

2023

Contents Editorial Policy

1

Honda’s

Sustainability

2

Social

4

Governance

5

Performance

Data

6

Data

7

Environment

3

Material Issues in the Environmental Dimension

Through Honda’s proprietary technologies and business activities, the Company will

work to tackle climate change and energy issues, the effective utilization of resources

and the preservation of clean air, which are outlined as challenges in the materiality

matrix, aiming to realize a zero environmental impact society in the future.

Honda’s Material Issues

* Nature-based Solutions (NbS): Initiatives

that address social issues while

preserving and restoring natural

ecosystems

Triple Action to ZERO

In order for people to live on Earth in a sustainable manner, Honda seeks to realize a

society with zero environmental impact. Accordingly, the Company established the

Triple ZERO initiative, a concept for environmental initiatives, and in 2021, it set Triple

Action to ZERO, which deﬁnes speciﬁc target years and actions.

Efforts will be centered around the Triple Action to ZERO, which integrates three

elements, namely carbon neutrality, clean energy and resource circulation, into one

concept. Under this concept, Honda is considering and implementing measures

while taking into account a linkage of the three elements. The Company recognizes

that this will lead to the acceleration of initiatives in international frameworks and to

Nature-based Solutions (NbS)* that are attracting increasing interest from stakeholders.

CO

2

emissions, net zero by 2050

To address climate change issues, Honda will work toward a target of limiting the

global average temperature rise to 1.5ºC above pre-industrial levels by reducing

carbon emissions from corporate activities and throughout the product life cycle.

100% utilization of carbon-free energy by 2050

To address energy issues, Honda will go a step beyond its conventional initiative of

reducing energy risks and aim to use clean energy both during product use and in

corporate activities.

100% use of sustainable materials by 2050

To address the effective utilization of resources, Honda will go beyond its previous

initiative aimed at reducing the risks related to resources and waste disposal by

taking on the additional challenge of developing products and creating systems that

use sustainable materials and have zero environmental impact.

In the area of corporate activities, Honda aims to achieve “zero” industrial water

intake and industrial waste at Honda plants by 2050.

3 Environment

Basic Approach

��

14

Global Management

��

15

Material Issues in the

Environmental Dimension

��

17

Responses to Climate

Change and Energy Issues

��

18

Efﬁcient Utilization of

Resources

��

22

Preservation of Clean Air

��

25

Other Important Issues

��

26

201-2

17

Honda ESG Data Book

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Contents Editorial Policy

1

Honda’s

Sustainability

2

Social

4

Governance

5

Performance

Data

6

Data

7

Environment

3

CO

2

emissions,

net zero

100% use of

sustainable materials

100% utilization of

carbon-free energy

Climate Change: Risk and Opportunity Analysis

Based on Multiple Scenarios

Honda performs scenario analysis, noted as an important tool in the

recommendations of the Task Force on Climate-related Financial Disclosures (TCFD),

and creates strategies based on multiple scenarios for today and for the future.

Each scenario contains uncertainty caused by changes in various factors, which

makes it important to conduct analysis and veriﬁcation assuming different situations.

Honda believes that identifying risks and opportunities in respective scenarios will

enable more sustainable corporate management.

Accordingly, Honda has developed strategies based on multiple scenarios. The

Company utilizes these strategies in undertaking business and promoting products

and seeks to reduce risks and create opportunities, thereby ensuring that it offers

services and products with greater resilience.

The Honda Report 2022 discloses Honda’s initiatives to address risks and

opportunities. In response to the risks and opportunities identiﬁed, Honda is

enhancing the resilience of its strategies and implementing a variety of initiatives.

Integrated Report “Honda Report 2022” p. 55, p.56

https://global.honda/sustainability/integratedreport/pdf/Honda_Report_2022-en-all-m.pdf

#page=

29

Honda’s Approach

In October 2020, Honda announced its intent to realize carbon neutrality. Going

a step further, in April 2021 the Company announced its vision to “realize carbon

neutrality for all products and corporate activities Honda is involved in by 2050” in

order to achieve a circular society with zero environmental impact. The concept

behind this vision is to reduce carbon emissions based on the targets laid out in the

Paris Agreement to keep the temperature rise below 1.5ºC.

In order to make steady progress toward carbon neutrality by 2050, Honda has

deﬁned corresponding targets and has been promoting efforts accordingly. In the

area of products, in addition to the respective ratios of electriﬁed products for

motorcycles, automobiles, and power products in global sales, Honda has selected

another 2030 milestone concerning the reduction rate of CO

2

emissions intensity

from the use of its products.

In the area of corporate activities, Honda aims to reduce its total CO

2

emissions

by 46% from FY2020.

Honda plans to realize its ﬁrst carbon-neutral plant in FY2026 at the Saitama

Factory’s assembly plant to achieve the 2050 carbon neutrality target.

Honda has started operating an internal carbon pricing (ICP) system from 2023

to further accelerate the reduction of CO

2

emissions at its Japanese business sites.

The carbon price is set at 15,000 yen per metric ton of CO

2

, and the amount of

carbon reduction is converted into a monetary value that can be used as one of the

factors when making capital investment decisions. The Company will continue to

revise the system and apply it to its global sites in light of social conditions and

internal performance.

There is more than one approach to the protection of the global environment,

and efforts to maximize the use of renewable energy are also crucial. Recognizing

that there are diverse approaches to reducing CO

2

emissions, Honda has formulated

a “multi-pathway” concept to proactively offer environmentally friendly products

matched to each region.

While the mobility environment is currently undergoing a period of dramatic changes,

Honda is moving forward with its response to climate change through initiatives that

link Honda’s business strategy to its environmental strategy. The Company is

proactively striving to reduce its environmental impact while foreseeing changes in

the global marketplace and among customers as well as making contributing to the

lives of customers its priority.

Responses to Climate Change and Energy Issues

3 Environment

Basic Approach

��

14

Global Management

��

15

Material Issues in the

Environmental Dimension

��

17

Responses to Climate

Change and Energy Issues

��

18

Efﬁcient Utilization of

Resources

��

22

Preservation of Clean Air

��

25

Other Important Issues

��

26

201-2, 302-5, 305-4

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Contents Editorial Policy

1

Honda’s

Sustainability

2

Social

4

Governance

5

Performance

Data

6

Data

7

Environment

3

Product Initiatives

Three Initiatives to Reduce GHG Emissions

Emissions from the “use of products” account for approximately 80% of CO

2

emissions in Honda’s entire product life cycle. In light of this, Honda works to reduce

CO

2

emissions during the usage of all of its products, and manufactures and sells

items that can be supplied with conﬁdence as environmentally friendly products.

To date, Honda has carried out the following three initiatives to reduce GHG

emissions, most notably CO

2

emissions, while expanding production and sales

globally.

(1) Reducing CO

2

emissions by improving the efﬁciency of internal combustion

engines

(2) Reducing CO

2

emissions by applying environmentally innovative technologies

and diversifying energy sources

(3) Eliminating CO

2

emissions through the use of renewable energy and total

energy management

By implementing these initiatives in phases, Honda will steadily and ultimately

reduce CO

2

emissions to net zero.

Honda has been undertaking the three initiatives in accordance with the Honda

Environmental Performance Standard (HEPS), which is a set of unique and

advanced-level product guidelines formulated in 2011. As a result of the certiﬁcation

of products that were launched in FY2023, 21 motorcycle models, 26 automobile

models and 2 power product models — a total of 49 models — were HEPS-certiﬁed.

This brings the number of HEPS-compliant products to 218 motorcycle models, 94

automobile models and 64 power product models, or 376 models in total.

In addition, there were no violations in product and service information or

labeling in general.

Evolution of environmental

technologies

Life cycle CO

2

emissions

Fossil

fuel use

Diversiﬁed

energy use

Evolution of energy

technologies

Renewable

energy use

Energy

management

technologies

●

High-Efﬁciency Products

Products that emit less CO

2

emissions thanks to 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

2

emissions during use compared to preceding models.

●

Innovative Products

Products that emit less CO

2

by using an environmentally innovative technology or an

alternative energy source. This category includes motorcycles that incorporate

Honda’s patented Idling Stop System, automobiles that incorporate hybrid technolo-

gies or direct injection engine technologies, and power products with electronic fuel

injection (FI). 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

2

emissions

during use compared to preceding models.

●

Revolutionary Products

Products that reduce or eliminate CO

2

emissions by harnessing renewable energy or

facilitating total energy management. This category includes products that incorporate

electromotive technologies or technologies for using renewable energy.

Innovative Products

Revolutionary Products

High Eciency Products

High

Low

Efﬁciency

improvement

technologies for

internal combustion

engines

Environmental

innovation

and energy-

diversiﬁcation

technologies

Renewable energy

technologies

Responses to Climate Change and Energy Issues

DATA Global Number of HEPS-compliant models p. 141

3 Environment

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14

Global Management

��

15

Material Issues in the

Environmental Dimension

��

17

Responses to Climate

Change and Energy Issues

��

18

Efﬁcient Utilization of

Resources

��

22

Preservation of Clean Air

��

25

Other Important Issues

��

26

2-27, 201-2, 302-5, 417-1, 417-2

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Contents Editorial Policy

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Honda’s

Sustainability

2

Social

4

Governance

5

Performance

Data

6

Data

7

Environment

3

Advancing Powertrain Electriﬁcation

Honda views changes in social needs and the social structure induced by climate

change and energy diversiﬁcation as key challenges and actively promotes product

electriﬁcation. Increasing the lineup and use of electriﬁed products will contribute to

reducing CO

2

emissions when in use, which in turn will lead to lower climate change

risks, while addressing energy issues by making use of renewable energy.

In addition, the battery mounted on electriﬁed vehicles can be used as a power

source for leisure activities or during an emergency, thereby improving the quality of

customers’ lives.

Based on this belief, Honda has set the target of electrifying 15% of

motorcycles, 30% of automobiles and 36% of power products, respectively, as a

ratio of global sales in 2030, and to reduce the rate of CO

2

intensity*

2

by 34.0% for

motorcycles, 27.2% for automobiles and 28.2% for power products (compared to

FY2020).

To achieve this goal, the Company is seizing all new business opportunities by

enhancing and upgrading its product lineup.

*1 Sales ratio of battery-powered electric

motorcycles and electric bicycles for

motorcycle products; battery-powered

electric vehicles and fuel cell vehicles

for automobile products; and electriﬁed

products for power products.

*2 Global average by product

Targeted sales

ratio of electriﬁed

products*

1

Targeted

reduction rate

of the CO

2

emissions intensity

of product use

Motorcycles

34.0

%

15

%

Automobiles

27.2

%

30

%

Power

products

28.2

%

36

%

Promoting Life Cycle Assessment (LCA)

Honda recognizes that the promotion of LCA is an important initiative not just in

reducing CO

2

emissions across product life cycles, from raw material procurement to

product disposal, but also in implementing efforts for Triple Action to ZERO.

Honda has been quantitatively calculating and assessing CO

2

emissions from all

business activities by using its original Life Cycle Assessment (LCA) system. Accordingly,

the production, purchasing, sales and service, administration and transportation

departments have been carrying out activities geared toward lower carbon emissions.

Honda has established procedures for calculating the environmental impact of

its products during their life cycle and obtained third-party certiﬁcation by TÜV

Rheinland in Germany in 2023. This certiﬁcation is based on the ISO 14040 and ISO

14044 standards. In the future, Honda will utilize LCA more broadly while making

more proactive efforts in devising low-carbon solutions at the development stage and

also reducing the environmental impact through resource circulation.

Responses to Climate Change and Energy Issues

Disposal 3.7%

Material production

(incl. transportation)

52.1%

Use (electricity production)

28.1%

Parts production and

vehicle assembly

(incl. transportation)

16.1%

3 Environment

Basic Approach

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14

Global Management

��

15

Material Issues in the

Environmental Dimension

��

17

Responses to Climate

Change and Energy Issues

��

18

Efﬁcient Utilization of

Resources

��

22

Preservation of Clean Air

��

25

Other Important Issues

��

26

Total CO

2

emissions calculated by Honda’s LCA system

201-2, 302-5, 305-4

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Honda ESG Data Book

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Contents Editorial Policy

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Honda’s

Sustainability

2

Social

4

Governance

5

Performance

Data

6

Data

7

Environment

3

Corporate Activities Initiatives

With the aim of achieving net zero CO

2

emissions and wholly deriving power from

carbon-free energy sources in corporate activities by 2050, Honda is focusing on a

reduction in energy consumption and CO

2

emissions while giving consideration to

the potential for expanding production and sales globally.

Toward the realization of these targets, Honda has been promoting the

reduction of carbon emissions by making efforts in terms of increasing production

efﬁciency, encouraging energy-saving initiatives, shifting to low-carbon energy

sources and utilizing renewable energy.

Honda plans to realize its ﬁrst carbon-neutral plant in FY2026 at the Saitama

Factory’s assembly plant to achieve the 2050 carbon neutrality target.

In deploying the technology built at the plant globally, the Company has built a

mechanism for promoting information sharing among business sites and regions

while at the same time enhancing technical support from Japan.

In addition, Honda is actively introducing renewable energy around the world.

Honda preferentially adopts a method that can directly contribute to the reduction

of CO

2

in local communities. More speciﬁcally, the Company focuses on installing

new power generation facilities, ﬁrst examining the installation within its premises

and then gradually expanding the scope to outside the premises for greater use of

the facilities.

Honda’s business sites across the world used 1,498GWh of power derived from

renewable energy sources, such as solar and wind, in FY2023.

This is an increase of 694 GWh or 86% over the previous ﬁscal year.

Going forward, Honda will continue to use renewable energy matched to local

conditions, including plans to expand solar power generation system capacity to 20

MW at the Kumamoto Factory by 2030.

Kumamoto Factory (5.35 MW) Saitama Factory’s assembly plant (2.0 MW) Boiling Springs Wind Farm (120 MW)

Responses to Climate Change and Energy Issues

3 Environment

Basic Approach

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14

Global Management

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15

Material Issues in the

Environmental Dimension

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17

Responses to Climate

Change and Energy Issues

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18

Efﬁcient Utilization of

Resources

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22

Preservation of Clean Air

��

25

Other Important Issues

��

26

201-2, 302-5

21

Honda ESG Data Book

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Contents Editorial Policy

1

Honda’s

Sustainability

2

Social

4

Governance

5

Performance

Data

6

Data

7

Environment

3

Honda’s Approach

Product-based Approach

Corporate Activities’ Approach

Honda believes that the increasing difﬁculty in obtaining rare metals and other

resources, as well as their depletion, could pose a signiﬁcant risk to the continuation

of its business, as they would affect the procurement of materials and parts

necessary for the production of its products. Therefore, the Company considers the

efﬁcient utilization of resources as one of the material issues.

To ensure harmonious coexistence on Earth, Honda will reduce its consumption of

limited resources, including mining and disposal, and strive to shift to a recycling-based

value chain. In addition to preparing for the risks of resource procurement and price hikes,

the Company aims to enhance customer value, contribute to stakeholders, and create

economic value. Aiming for zero environmental impacts related to resources and disposal

across the various stages ranging from resource procurement to disposal, Honda is

tackling this issue through cooperation/partnership with internal/external stakeholders.

Honda has been actively promoting 3R (reduction/reuse/recycling) activities as well

as ensuring proper processing when disposing of end-of-life products.

In addition, Honda has established internal milestones and has begun working

to achieve its goal of the 100% use of sustainable materials by 2050, while

promoting the creation of systems and technological research on reused, recycled

and biomass materials of all parts and materials that make up its products.

Giving consideration to the risks involved in resource depletion and waste disposal

that could potentially lead to environmental pollution, Honda aims to reduce the

overall amount of waste generation. Accordingly, the Company has set the goal of

reducing the total waste generation by 14.5% as compared to BAU in all corporate

activities in FY2031.

For water resources as well, Honda is giving consideration to the water supply

risk that affects its businesses and the depletion risk that impacts local communities.

Honda has thus established the target of reducing the total industrial water intake by

14.5% as compared to BAU in all corporate activities in FY2031. In both areas of

waste generation and water intake, the Company will remain committed to

minimizing the environmental impacts.

Efﬁcient Utilization of Resources

*1 Re-purpose: The act of utilizing one’s

own products (e.g., primary use) for

various secondary purposes.

*2 Refurbish: Adding new value to used

vehicles by improving performance and

service through the latest updates.

Initiative for zero environmental impact related to resources and disposal

Biomass

Development, application and procurement of biomass materials

Reduction

Reduction of the number of parts, etc. Initiatives for saving resources

Reuse/repurpose*

1

/refurbish*

2

Easy replacement of parts, prolonging

lifespan, etc.

Reuse (repurpose) (refurbish) of products

Recycling

Reduction of substances of concern

Development, application, and procurement of recycled materials

Easy to dismantle, separate, and recycle Recycling of by-products

Recycling of end-of-life products

Compliance with the recycling

law for end-of-life products

Development

Resource Procurement and Production

Sales and Use

Collection, Recycling and Disposal

3 Environment

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14

Global Management

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15

Material Issues in the

Environmental Dimension

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17

Responses to Climate

Change and Energy Issues

��

18

Efﬁcient Utilization of

Resources

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22

Preservation of Clean Air

��

25

Other Important Issues

��

26

201-2, 303-3, 303-4, 303-5

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Honda ESG Data Book

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Contents Editorial Policy

1

Honda’s

Sustainability

2

Social

4

Governance

5

Performance

Data

6

Data

7

Environment

3

Initiatives in the Development Stage

Design Focusing on Reduction

Honda is making efforts in downsizing and weight reduction by considering

alternative structures and materials for all components in each product, such as the

body framework, engine and bolts. For example, the Company used thinner

structural bumpers in the N-WGN as part of a reduction-oriented design geared

toward creating a lighter product. The availability of materials with higher rigidity and

ﬂuidity along with advances in manufacturing technologies allowed Honda to reduce

the weight of the previous design, which had an average thickness of 3.0 mm, by

using less resin in bumper production. In Japan, Honda is progressively expanding

the use of these enhanced structural bumpers in new models launched after the

N-WGN. Overseas, it has begun rolling them out globally with the Civic. The

Company expects to further reduce material use by applying the new design

worldwide.

Design Focusing on Reuse/Recycling

Honda is engaging in structural design that takes into account easier recycling and

maintenance, the use of easily recyclable materials and recycled resins, and the

display of the material contents of resin/rubber components, etc. For automobiles,

the Company uses easily recyclable materials for a wide array of exterior/interior

components, such as inner weather-stripping and the outer surface of instrument

panels, and at the same time has enabled the use of recycled materials for air

conditioner ducts. In addition, Honda labels resin and rubber parts with their

constituent materials wherever possible to facilitate recycling.

Honda has also conducted a preliminary recyclability assessment for each newly

developed model since 1992 for motorcycles and since 2001 for automobiles. As a

result of the activities mentioned above, with regard to the recyclable rate*

1

for all

new and redesigned vehicles sold in FY2022, Honda is maintaining more than 95%

for both automobiles and motorcycles. Meanwhile, the recoverability rate for

components/materials*

2

used in power products was more than 95%.

Efﬁcient Utilization of Resources

*1 Index based on the “Deﬁnition of the

Recyclable Rate for New Vehicles and

Guidelines on the Calculation Method”

issued by Japan Automobile

Manufacturers Association, Inc. (JAMA)

*2 Recyclable rate including the thermal

energy recovered; in accordance with

calculation methods for the recyclable

rate for cars in ISO 22628, etc.

Initiatives in the Resource Procurement and

Manufacturing Stage

Initiatives at the Product Use Stage

Through strong partnerships with resource recycling companies such as Ascend

Elements, Server Solutions, and POSCO Holdings, we actively utilize recycled

resources to stabilize material procurement and strive for zero environmental impact.

In January 2023, refurbishment initiative in the used car business started at some

dealers in Japan.

Recovering and improving product value through refurbishing, adding new

product value, and providing utilization services will lead customers to use up the

products to the end, and increase opportunities to collect end-of-life vehicles,

thereby making more efﬁcient use of resources.

Application of recycled aluminum

For motorcycles, Honda started applying recycled materials to aluminum casting

for vehicle bodies at Kumamoto Factory in June 2023.

As for automobiles, materials using recycled aluminum sheets for vehicle

bodies have been applied to several models, including Civic, at the production

sites in the North America since April 2022.

3 Environment

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Global Management

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Material Issues in the

Environmental Dimension

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17

Responses to Climate

Change and Energy Issues

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18

Efﬁcient Utilization of

Resources

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22

Preservation of Clean Air

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25

Other Important Issues

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26

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Honda ESG Data Book

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Contents Editorial Policy

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Honda’s

Sustainability

2

Social

4

Governance

5

Performance

Data

6

Data

7

Environment

3

Initiatives at the Disposal Stage

Corporate Activities Initiatives

Initiatives for Automobiles

The Act on Recycling, etc., of End-of-Life Vehicles (automobile recycling law) requires

automakers to collect and properly treat three items: ﬂuorocarbons, airbags and

shredder dust (Automobile Shredder Residue (ASR)).

In FY2023, the number of Honda automobiles collected was approximately

360,000 for ﬂuorocarbons (-15.1% from the previous ﬁscal year), approximately

360,000 for airbags (-15.1%) and approximately 390,000 for ASR, the ﬁnal phase in

the end-of-life vehicle processing (-16.9%). The recycling rates for gas generators

and ASR were 95.4% and 96.7%, respectively, both of which satisfy the recycling

rates speciﬁed by the ordinance of the relevant ministry (at least 85% for gas

generators and at least 70% for ASR).

Honda is making efforts to reduce the volume of waste generated through its

business activities.

The Company is stepping up its 3R efforts, which include resource reduction

initiatives, such as the reduction of by-products through an increase in throughput

yields. Honda properly manages the import and export of waste deemed hazardous

under the terms of Annexes I, II, III, or VII of the Basel Convention. In addition, the

Company is striving to eliminate all use of ozone-depleting substances (ODS) at

business sites in accordance with the Montreal Protocol and local laws and

regulations in the countries in which it operates.

Efﬁcient Utilization of Resources

Recycling of End-of-Life Components

Honda collects and recycles end-of-life components generated from repair,

replacement, etc., from dealers nationwide. In FY2023, the Company collected and

recycled approximately 134,000 end-of-life bumpers. Collected bumpers are

recycled and used for undercovers and other components of the Freed model.

Honda will continue to recycle end-of-life components, including the collection/

recycling of end-of-life hybrid vehicle drive batteries.

We have initiated horizontal recycling demonstration experiments for acrylic

resin since August 2021 and have established the technology to manufacture tail

light lenses from recovered tail light lenses from end-of-life vehicles.

3 Environment

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Global Management

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Material Issues in the

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Responses to Climate

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18

Efﬁcient Utilization of

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22

Preservation of Clean Air

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25

Other Important Issues

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26

201-2, 305-6, 306-1, 306-2, 306-3, 306-4, 306-5

Initiatives for Motorcycles

Honda joined hands with other motorcycle manufacturers in Japan and participating

motorcycle importers and started to implement the voluntary recycling of

motorcycles in October 2004. With the cooperation of related dealers, various

companies in the motorcycle industry started this scheme to provide a safety net for

the treatment of end-of-life motorcycles, the world’s ﬁrst of its kind. End-of-life

motorcycles are collected at dealers and designated points of collection free of

charge and are properly recycled at recycling facilities.

Regarding end-of-life motorcycles collected at designated collection points,

there were 1,128 Honda products in FY2023, accounting for 69.3% of all units

collected. The recycling rate of Honda products came to 97.8% on a weight basis,

enabling it to achieve the target recycling rate of 95% since FY2014.

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Contents Editorial Policy

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Honda’s

Sustainability

2

Social

4

Governance

5

Performance

Data

6

Data

7

Environment

3

Honda’s Approach

Honda recognizes that air pollution has been a critical issue since the 1960s when

the pollution problem became serious and believes that air pollution in cities has a

negative effect on people’s health. The Company, therefore, has sought to resolve

this issue through the development of technologies that clean the gases emitted from

its products.

To date, Honda has achieved cleaner exhaust emissions from motorcycles by

switching the engines of all its motorcycles on the market to four strokes, with the

Honda Programmed Fuel Injection (PGM-FI) system being applied to more than 88%

of models sold worldwide for better combustion efﬁciency.

With regard to automobiles, the Accord Plug-in Hybrid has become the ﬁrst in

the world to certify to SULEV*

1

20 of California’s LEV III*

2

emissions regulations,

deemed to be the toughest in the world.

In addition, Honda has introduced technologies to reduce emissions in advance

of other advanced emission regulations, such as Euro 6 in Europe and Stage 6 in

China, as well as particulate matter (PM) emissions, which are becoming increasingly

stringent worldwide.

Honda is also contributing to the global effort toward cleaner exhaust emissions

by progressively expanding the same technologies to emerging countries as those in

developed countries.

As for power products, Honda has cleared compliance with United States

Environmental Protection Agency Phase 3 regulations, the most stringent in the

world, through engine enhancement technology without using a catalyst.

Honda will continue to reduce the harmful substances contained in the exhaust

emissions from internal combustion engines and set milestones for the sales ratio of

electriﬁed products that do not emit exhaust gas while in use, to preserve clean air.

In the production of automobiles, the solvents found in paint and thinner used

mainly in paint processes can generate Volatile Organic Compounds (VOC), the

cause of photochemical oxidants. Honda has sought to reduce VOC emissions such

as through the improvement of painting efﬁciency, the installation of equipment to

remove VOC, and the introduction of Honda Smart Ecological Paint*

3

, a highly

functional painting technology that shortens the automobile painting process, at the

Saitama Factory’s assembly plant.

Honda will continue to undertake these and other reduction efforts in the future.

Honda believes that providing products with high environmental performance at

reasonable prices and leading the industry in terms of cleaner exhaust emissions and

air pollution response will serve to preserve clean air and bring about a greater

opportunity for business expansion.

Preservation of Clean Air

*1 Super Ultra Low Emission Vehicle

*2 Low Emission Vehicle

*3 A technology that eliminates a middle

coating process from the commonly

used 4-coat/3-bake auto body painting

process, thereby realizing a 3-coat/2-

bake water-based painting process.

3 Environment

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Global Management

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15

Material Issues in the

Environmental Dimension

��

17

Responses to Climate

Change and Energy Issues

��

18

Efﬁcient Utilization of

Resources

��

22

Preservation of Clean Air

��

25

Other Important Issues

��

26

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Social

4

Governance

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Performance

Data

6

Data

7

Environment

3

Conserving Water Resources

Cognizant of the potential for business activities to impact upstream and

downstream water resources, Honda is also focusing on the conservation of water

resources.

Since Honda seeks out communities where harmonious coexistence with

nearby water sources is viable as potential plant locations, and builds plants in

compliance with host countries’ environmental assessment laws and regulations, no

water sources are signiﬁcantly impacted by the Company’s water use. In addition, no

water sources are affected by wastewater from Honda facilities since it treats

wastewater and discharges treated water in accordance with applicable laws and

regulations. Under these circumstances, Honda appropriately manages the amount

of water used and works to manage and provide information on wastewater, which

includes thorough quality control and the disclosure of water quality test ﬁndings.

In addition, to minimize water intake, various business sites are implementing

initiatives based on regional circumstances, such as the utilization of recycled water

and water conservation.

Honda veriﬁes the water risk for all production sites using assessment tools

such as Aqueduct and Water Risk Filter. Accordingly, Honda has prioritized the

introduction of a water recycling system at the Celaya Auto Plant of Honda de

Mexico S.A. de C.V. in Mexico, the Tapukara Plant of Honda Cars India Ltd. in India,

and the No. 2 Plant of Guangqi Honda Automobile Co., Ltd. in China, where the

water risk is particularly high.

Total consumption of recycled water at production sites amounts to

about

3

.

86

million m

3

a year, accounting for about 16% of Honda’s total annual water use.

Honda will continue to introduce its water recycling system around the world.

Honda strives to reduce the environmental impact during product usage. The

Company’s lineup of engines for outboard motors consists solely of four-stroke

engines, with the aim of reducing water contamination by outboard motors around

the world.

Honda has continuously undertaken conservation activities for forest

watersheds since 1999 as part of its social contribution program. Production sites

protect and manage the forest watersheds that they beneﬁt from and strive to keep

them optimized for each region. Aware of the fact that water is an indispensable

resource supporting its business, Honda will continue implementing this activity.

(Please refer to the link below.)

Other Important Issues

“Forest Conservation Activities” (Japanese only)

https://www.honda.co.jp/philanthropy/forest/

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Global Management

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Material Issues in the

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Responses to Climate

Change and Energy Issues

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18

Efﬁcient Utilization of

Resources

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22

Preservation of Clean Air

��

25

Other Important Issues

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Performance

Data

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Data

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Environment

3

Biodiversity ConservationManagement and Reduction of Chemical

Substances

Biodiversity is fundamental to the well-being of humanity, a healthy planet, and the

economic prosperity of all people. Not only do we depend on biodiversity, but also

biodiversity underpins all systems of life on Earth. The IPBES* Global Assessment

Report on Biodiversity and Ecosystem Services, published in 2020, suggests that

many of the approximately one million species face extinction within the next few

decades. In June 2021, the G7 Cornwall Summit adopted the G7 2030 Nature

Compact and declared the need for a nature-positive approach to reverse nature

loss by 2030.

In operating its business, Honda beneﬁts from natural resources. In addition to

the procurement of raw materials, Honda depends on and affects a great deal of

natural capital throughout its value chain, from research and development to

manufacturing, use, and disposal.

Honda’s basic approach is deﬁned as follows: “We recognize, under Honda’s

Environment Statement, that biodiversity conservation initiatives are an essential part

of our commitment to the preservation of the global environment. We will continue to

work toward harmony between this commitment and our activities.”

Honda also recognizes the need for biodiversity-conscious actions in its

relationship with nature. Based on this recognition, the Company carried out tree-

planting and water-recycling initiatives at its plants in the 1960s and launched the

Community Forest program in 1976. In 2011, the Company established the Honda

Biodiversity Guidelines. In line with the Guidelines, Honda is working to avoid or

minimize impacts on nature, including air, water, and biodiversity, as well as to

conserve and restore them. In addition, the Company conducts biodiversity impact

assessments.

Honda works to ensure the appropriate management and reduction of the chemical

substances contained in automotive components from the product design and

development stages in order to reduce those materials that impact the environment.

Laws and regulations have been introduced in each country to ensure the

appropriate management of chemical substances and the reduction of harmful

substances contained in automotive components. These legislations are based on

the goal set by the United Nations in 2002 of minimizing the impact of chemical

substances on people and the environment by 2020.

The International Material Data System (IMDS), a mechanism for collecting

information throughout the supply chain on the materials and chemical substances

contained in components making up a vehicle, was developed in response to this

trend largely by the German Association of the Automotive Industry. Honda is also

tabulating and managing chemical substances via its independently developed global

management system, called the Management System of Chemical Substances

(MoCS), which collects information based on IMDS.

Honda promotes the management of chemical substances via MoCS to comply

with the Regulation concerning the Registration, Evaluation, Authorization and

Restriction of Chemicals (REACH) and other regulations on the use of substances of

concern in each country. In addition, Honda is moving ahead with the reduction of

four types of heavy metals (lead, mercury, hexavalent chromium and cadmium), in

accordance with the European Directive on End-of-Life Vehicles (ELV Directive).

Honda Biodiversity Guidelines

https://www.honda.co.jp/environment/report/pdf/report/report-2022-biodiversity-en.pdf

Other Important Issues

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Material Issues in the

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Responses to Climate

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Efﬁcient Utilization of

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Preservation of Clean Air

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Other Important Issues

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Governance

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Performance

Data

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Data

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Environment

3

* Intergovernmental Science-Policy

Platform on Biodiversity and Ecosystem

Services

Priority Analysis for Biodiversity Conservation

Other Important Issues

Biodiversity Assessment around the Company’s Production Sites

Honda assesses the potential for its business activities to impact biodiversity using the

Integrated Biodiversity Assessment Tool (IBAT), a biodiversity assessment tool.

The Company surveys its own 86 production sites around the world within a 50

km radius of each site to determine their proximity to areas inhabited by endangered

species on the IUCN Red List.

In order to conduct speciﬁc biodiversity efforts, Honda uses indicators in IBAT

such as the KBA*

1

, WDPA*

2

, IUCN*

3

Red List of Threatened Species, and STAR*

4

to

conduct integrated assessments of the biodiversity risk of the production sites.

Honda will continue to identify priority sites and consider speciﬁc efforts to

conserve biodiversity.

Honda assesses and identiﬁes endangered species and priority sites in cooperation

with BirdLife International Tokyo, a general incorporated association specializing in

biodiversity assessment.

Biodiversity Assessment of Products

Products are made from a variety of materials, some of which may have an impact

on biodiversity. Honda is therefore engaged in the primary assessment of the impact

of materials used in its products on biodiversity. Based on the assessment results,

the Company will conduct a more detailed analysis of materials that have a large

potential impact, and consider ways to reduce the impact of its products on

biodiversity.

Endangered species assessment around the Company’s production sites

Number of species (total) Endangered species category

Region

CR

(Critically

Endangered)

EN

(Endangered)

VU

(Vulnerable)

Japan 60 292 607

North America 75 187 294

Europe 62 136 305

Asia-Paciﬁc excluding Japan and China

647 1,547 4,538

China 189 404 755

South America 29 97 212

Africa & Latin America 36 64 90

Total 1,098 2,727 6,801

Assessment of biodiversity priorities at the Company’s production sites

Legend

Higher-scoring sites (highest priority)

Medium-scoring sites (priority)

Lower-scoring sites (other)

Calculation conditions

� Evaluation vehicle

Compact electric vehicle

� Energy consumption during production

Production in Japan in 2020

� Lifetime mileage: 200,000 km

� Inventory data: IDEA v2.3

� EINES assessment (biodiversity impact):

LIME2

Results of the primary assessment of biodiversity impacts

Natural rubber

(tires)

Electricity

(when driving)

Copper

Nickel

Iron

Others

*1 Key Biodiversity Areas

*2 World Database on Protected Areas

*3 International Union for Conservation of

Nature

*4 Species Threat Abatement and

Restoration Metric

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Preservation of Clean Air

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Other Important Issues

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Performance

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Data

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Environment

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Other Important Issues

Collaboration with External Initiatives

In April 2022, Honda joined the 30by30 Roadmap, led by the Ministry of the

Environment in Japan, and is promoting its efforts to obtain certiﬁcation as an Other

Effective area-based Conservation Measures (OECM) site, which is an area where

biodiversity is being conserved.

In addition, Honda has been participating in the Taskforce on Nature-related

Financial Disclosures (TNFD) Forum since December 2022. The Company is

committed to the proactive disclosure of information and will continue to further

accelerate its efforts related to environmental conservation.

* Improving the forest environment is not

only about reducing the density of the

forest by logging to let in light and wind,

but also about creating habitats for living

creatures.

Speciﬁc Initiatives for Biodiversity Conservation

Biotope at the Saitama Factory

Activities to Protect and Restore Biodiversity

Mobility Resort Motegi in Tochigi Prefecture, Japan, which is 100% owned by

Honda, covers an area of approximately 640 hectares, and is engaged in nature

conservation activities in approximately 70% of its forests. There are approximately

5,800 conﬁrmed species, including many rare species, among the inhabitants.

The area was unmanaged wooded areas and rice paddies, but Honda has

improved the environment by cutting trees to let light into the forest, restoring

terraced rice paddies and other riparian areas, and protecting and relocating

endangered Haccho dragonﬂy (Nannophya pygmaea). Based on the idea that

“improving the environment is not only about managing it, but also about creating

it*,” Honda is also working to create a diverse environment for living creatures at

Mobility Resort Motegi. To create a sustainable forest, Honda conducts forest

surveys (tree surveys, etc.) and monitoring surveys (registered as one of the

Monitoring Sites 1000 by the Ministry of the Environment), and holds forest

development workshops to nurture the people involved in forest development.

Haccho dragonﬂy conﬁrmed at Mobility Resort

Motegi

Japan: Biotope at an Automobile Assembly Plant

A biotope located at the Saitama Factory’s assembly plant, which started operation

in 2013. The biotope is home to endangered species such as Hynobius tokyoensis

and Lefua echigonia, and along with monitoring and conservation activities, Honda is

exterminating non-native species such as the red swamp crayﬁsh and American

bullfrog.

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Responses to Climate

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Efﬁcient Utilization of

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Preservation of Clean Air

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Other Important Issues

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Data

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Environment

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Other Important Issues

* Sanjivani van: a Hindi term referring to a

mythical forest associated with the herb

“Sanjivani”, which has healing properties

and signiﬁcant meaning in Hindu

mythology.

U.S.A.: Habitat Conservation for Wild Honeybees

Honda Development & Manufacturing of the Americas’ Ohio automotive production

plant and research and development facility have unused land that is home to wild

honeybees. Bees play an important role in supporting a healthy ecosystem and help

pollinate approximately 80% of ﬂowering plants. To protect the bees, the Company

maintains approximately 5 hectares as the habitat and has built an apiary to support

bee research.

Beekeeping activity

Insect hotel

Test course

Mini-forest

3 Environment

Basic Approach

��

14

Global Management

��

15

Material Issues in the

Environmental Dimension

��

17

Responses to Climate

Change and Energy Issues

��

18

Efﬁcient Utilization of

Resources

��

22

Preservation of Clean Air

��

25

Other Important Issues

��

26

201-2, 304-1, 304-2, 304-3, 304-4

30

Honda ESG Data Book

2023

Contents Editorial Policy

1

Honda’s

Sustainability

2

Social

4

Governance

5

Performance

Data

6

Data

7

Environment

3

Brazil: Nature Conservation at a Test Course

Moto Honda da Amazonia Ltda’s motorcycle test course in Rio Preto da Eva is in the

Amazon rainforest. In harmony with the environment, approximately 80% (802

hectares) of the site is maintained as a legally protected area. Agricultural projects

here include the planting of fruits and vegetables as well as the restoration of

endangered species such as mahogany, rosewood, and Brazil nuts.

India: Plant Greening in Consideration of Biodiversity

The Company created a 0.4 hectare mini-forest on the premises of Honda

Motorcycle & Scooter India Pvt. Ltd.’s motorcycle plant in the state of Gujarat with

the aim of creating a rich natural environment to protect the ecosystem. This forest,

named “Sanjivani van*,” is planted with more than 16,000 trees in 24 different

categories. In addition, food residues are converted into compost and used for

gardening in the forest.

Belgium: Conserving Biodiversity at a Logistics Base

At Honda Motor Europe Logistics NV’s logistics base in Aalst, the Company has

expanded its greenbelt by planting black poplars, which are threatened due to

habitat degradation and a lack of genetic diversity. The Company is also contributing

to the maintenance of biodiversity by creating habitats such as ponds, insect hotels,

and feeding stations for living creatures.

List of Targets

Target Items Targets for 2030 Targets for 2050

Reduction rate of total CO

2

emissions from corporate activities (compared to FY2020)

46%

CO

2

emissions, net zero

Sales ratio of electriﬁed products

Motorcycles

15%

Automobiles

30%

Power products

36%

Reduction rate of CO

2

emissions intensity of product use

(compared to FY2020)

Motorcycles

34.0%

Automobiles

27.2%

Power products

28.2%

Reduction rate of total water intake in corporate activities (compared to BAU)

14.5%

Zero industrial water intake and industrial waste

Reduction rate of total waste generation in corporate activities (compared to BAU)

14.5%

Product resource circulation

(Set internal milestones)

100% use of sustainable materials

Other Important Issues

3 Environment

Basic Approach

��

14

Global Management

��

15

Material Issues in the

Environmental Dimension

��

17

Responses to Climate

Change and Energy Issues

��

18

Efﬁcient Utilization of

Resources

��

22

Preservation of Clean Air

��

25

Other Important Issues

��

26

201-2

31

Honda ESG Data Book

2023

Contents Editorial Policy

1

Honda’s

Sustainability

2

Social

4

Governance

5

Performance

Data

6

Data

7

Environment

3

Social

4

32

Honda ESG Data Book

2023

4

Social Safety

Material issues

Signiﬁcantly reducing trafﬁc fatalities

Applying automation and information

technologies to everyday life

33

Honda ESG Data Book

2023

Global Safety Slogan

Not only does Honda’s slogan “Safety for Everyone” embrace its

approach of pursuing safety in a way that matches each individual, but it

also follows its belief that ensuring the safety of each member of society

will consequently make society as a whole safer and mark a step forward

to a collision-free mobile society.

Honda dreams of a collision-free mobile society where

our customers, and everyone sharing the road, can safely

and conﬁdently enjoy the freedom of mobility.

Basic Approach

Based on the concept of “Safety for Everyone,” Honda aims for a collision-free

mobile society, where not only drivers and riders, but indeed everyone sharing the

road, can safely and conﬁdently enjoy the freedom of mobility.

In April 2021, Honda declared its goal of zero trafﬁc collision fatalities* involving

Honda motorcycles and automobiles worldwide by 2050 and is accelerating its

safety initiatives.

Honda’s safety initiatives began in the 1960s with its safe driving promotion

activities, the ﬁrst of their kind among motorcycle and automobile manufacturers.

Honda’s safety initiatives have now expanded to include everyone involved in trafﬁc

society, from drivers to pedestrians, from children to the elderly, and are being

actively promoted not only in Japan but also in countries and regions around the

world. In the area of technology, Honda has pioneered several new technologies

across the world, based on the concepts of “setting higher targets exceeding

regulatory requirements” and “if it does not exist, we will make it.” In addition to these

initiatives by individual Honda companies, Honda is also actively collaborating with

governments, local communities, and individual companies to improve the road

environment, among other things.

With the advancement of online services and other technologies, it is now

possible to lead a life without moving around. However, Honda believes that people’s

curiosity will continue to drive them to expand their sphere of activities and enjoy the

real world with its rich sensibilities. Ensuring safety is an important initiative to expand

freedom of movement. Honda will continue to pursue safety that not only protects

people, but also encourages their curiosity and enhances the joy of mobility.

Toward a Collision-Free Mobile Society

* Trafﬁc accidents involving Honda

motorcycles and automobiles: Trafﬁc

accidents involving Honda motorcyclists

and automobile riders, as well as

pedestrians and bicyclists (i.e., all trafﬁc

participants, except for intentional and

malicious violators of the rules, and

persons who are incapable of fulﬁlling

their responsibilities)

4 Social

Safety

��

33

Basic Approach

��

34

Safety Initiatives

��

37

Quality

��

47

Human Resources

��

63

Supply Chain

��

87

Social Contribution

Activities

��

103

34

Honda ESG Data Book

2023

Contents Editorial Policy

1

Honda’s

Sustainability

2

Environment

3

Governance

5

Performance

Data

6

Data

7

Social

4

Honda is working on trafﬁc safety with a focus on the three elements of human ability

(awareness-building activities), performance of mobility (technological development)

and trafﬁc ecosystem (collaboration, and development of systems/services).

Human Ability

Honda believes that efforts are needed to support the enhancement of human ability,

ranging from driving skills to psychological and mental aspects, such as cognition,

judgment, and compassion toward others, for all people involved in trafﬁc society.

Honda will translate these efforts into awareness-building activities matched to

individual awareness, experience levels and physical capabilities.

Performance of Mobility

Honda believes that a mix of capabilities is needed to appropriately complement or

augment human ability. These include the capability to protect the human body, the

capability to avoid collisions to the greatest extent possible, and the capability to

capture the intention of a person and convey it to the vehicle and other people.

Honda intends to gain an even deeper understanding of the human body and

consciousness and evolve its efforts to develop more people-oriented technologies.

Trafﬁc Ecosystem

The trafﬁc environment is subject to constant change due to trafﬁc congestion, bad

weather and various other factors. Honda believes that preventing accidents or

mitigating their damage in such a trafﬁc environment requires dynamically

understanding its holistic picture (the trafﬁc ecosystem). This encompasses the

interrelation between the diverse elements, including pedestrians, motorcycles, and

automobiles, that constitute the trafﬁc environment as well as roads,

telecommunications, and other infrastructure, and letting these elements connect

organically. Honda will proactively work toward this goal through an open approach,

including cooperation with various countries and regions and collaboration with other

companies, thereby contributing to the healthy functioning of trafﬁc society.

Direction of Activities

Honda is working on traffic safety with a focus on the three elements:

human ability (awareness-building activities), performance of mobility

(technological development) and traffic ecosystem (collaboration, and

development of systems/services).

Human Ability

Honda believes that efforts are needed to support the enhancement of

human ability, ranging from driving skills to psychological and mental

aspects, such as cognition, judgment and compassion toward others,

for all people involved in the traffic society. Honda will translate

these efforts into awareness-building activities matched to individual

awareness, experience levels and physical capabilities.

Performance of Mobility

Honda believes that a mix of capabilities is needed to appropriately

complement or augment human ability. These include a capability to

protect the human body, a capability to avoid collisions to the extent

possible and a capability to capture the intention of a person and convey

it to the vehicle and other people. Honda intends to gain an even deeper

understanding of the human body and consciousness and evolve its

efforts to develop more people-oriented technologies.

Traffic Ecosystem

The traffic environment changes constantly due to traffic congestion,

bad weather and various other factors. Honda believes that preventing

accidents or mitigating their damage in such a traffic environment

require dynamically understanding its holistic picture (

“

traffic

ecosystem

”

). It encompasses the interrelation among diverse elements*

1

constituting the environment and letting these elements connect

organically*

2

. Honda will proactively work toward this goal through an

open approach, including cooperation with various countries and regions

and collaboration with other companies, and contribute to the healthy

functioning of the traffic society.

As many traffic accidents are caused by very complex factors, Honda

will both promote the individual evolution of technologies and activities

of the three elements and ensure strong collaboration and coordination

among them.

Three elements of safety

*1 Including roads, telecommunication

infrastructure, automobiles,

motorcycles and pedestrians

*2 Can be achieved by an approach

that involves the development of

technologies for systems and services

related to roads and the traffic society,

maintenance and improvement of roads

themselves and formulation of relevant

traffic rules.

Performance Report

Environment

･･･････････････

55

Safety

････････････････････

79

Basic Approach

Safety Initiatives

Quality

････････････････････

96

Human Resources

･･････････

112

Supply Chain

･･････････････

139

Social Contribution Activities

･･

155

Basic Approach

7

Honda

Sustainability

Report

2022

81

saf ety

102-15,103-1,103-2,103-3,203-1

Three elements of safety

Honda will address trafﬁc accidents caused by various factors by evolving the

technologies and activities of the three elements of safety on an individual basis, as

well as by combining each of them.

Basic Approach

4 Social

Safety

��

33

Basic Approach

��

34

Safety Initiatives

��

37

Quality

��

47

Human Resources

��

63

Supply Chain

��

87

Social Contribution

Activities

��

103

203-1

35

Honda ESG Data Book

2023

Contents Editorial Policy

1

Honda’s

Sustainability

2

Environment

3

Governance

5

Performance

Data

6

Data

7

Social

4

*1 Halve the number of trafﬁc accident

fatalities per 10,000 vehicles involving

Honda motorcycles and automobiles

worldwide in 2030 compared to 2020.

*2 A condition in which the automatic

operation system replaces all driving

operations in a limited area that meets

speciﬁc driving environment

conditions. However, during the

operation of the automatic operation

system, if there is a risk that the

automatic operation system may not

operate properly, an alarm will be

issued to prompt the driver to perform

driving operations, and the driver must

respond appropriately.

Trafﬁc collision fatalities involving Honda vehicles

(per 10,000 units)

50%

reduction

50% of

current

trafﬁc

collision

fatalities

50% of

current

trafﬁc

collision

fatalities

50% of

current

trafﬁc

collision

fatalities

Zero

trafﬁc

collision

fatalities

Zero

fatalities

2020

2030

2040

2050

Honda’s safety targets

Honda aims to achieve zero trafﬁc collision fatalities involving Honda motorcycles and

automobiles worldwide by 2050. To achieve this goal, Honda has also set a

milestone of halving the number of global trafﬁc collision fatalities involving Honda

motorcycles and automobiles by 2030*

1

. This applies not just to new models but

also to Honda motorcycles and automobiles already on the market. Therefore, it is

important to promote activities that lead to safety as well as produce vehicle models

equipped with safety technologies.

In this context, the biggest challenge in achieving the 2030 milestone is fatal

motorcycle accidents in emerging countries. Honda has a social responsibility as the

manufacturer with the largest supply of motorcycles.

To address this issue, Honda is employing educational activities in the hope of

providing all people with opportunities to gain knowledge and skills in trafﬁc safety,

including safe driving.

Honda also aims to expand to motorcycles the application of advanced braking

systems such as ABS and CBS as well as headlights that provide better visibility to

riders and make them more visible to other road users. Honda also aims to extend

the application of Honda SENSING with a motorcycle detection function to all

automobile models.

In developed countries, as a further initiative, Honda is applying Honda

SENSING 360, which has evolved into an omni-directional safe driving support

system utilizing the knowledge and know-how accumulated through the research

and development of Level 3 autonomous cars*

2

, to all automobile models.

Honda will also work with other companies to develop technologies that utilize

telecommunications and other transportation infrastructure that will lead to the

reduction of fatal accidents.

These efforts through 2030 will reduce many trafﬁc fatalities, but in order to achieve

zero trafﬁc accident fatalities involving Honda motorcycles and automobiles

worldwide by 2050, it will be necessary to address vulnerable road users, such as

pedestrians and riders of two-wheeled vehicles, including bicycles.

Therefore, we must ensure that these vulnerable road users are prepared at an

earlier stage to avoid accidents in situations where they may occur. To realize this,

Honda is promoting the research and development of Safe and Sound Network

Technology, which connects all trafﬁc participants (i.e., people and mobility vehicles)

via telecommunications to predict risks before accidents occur and support accident

avoidance.

Aiming for Zero Trafﬁc Collision Fatalities

Involving Honda Motorcycles and Automobiles

Worldwide by 2050

Basic Approach

4 Social

Safety

��

33

Basic Approach

��

34

Safety Initiatives

��

37

Quality

��

47

Human Resources

��

63

Supply Chain

��

87

Social Contribution

Activities

��

103

36

Honda ESG Data Book

2023

Contents Editorial Policy

1

Honda’s

Sustainability

2

Environment

3

Governance

5

Performance

Data

6

Data

7

Social

4

Safety Initiatives

* Trafﬁc Education Centers: Honda

facilities where internal and external

instructors on trafﬁc safety are trained

and driving safety education is provided

to corporations, schools and individual

customers

Honda’s Approach

In 1970, Honda established the Trafﬁc Safety Promotion Operations in Japan and

subsequently a department dedicated to promoting activities overseas within the

Operations in 1972. Since then, Honda has been reinforcing its efforts overseas by

establishing Trafﬁc Education Centers* in various countries and cooperating with

local dealers. As of March 2023, Honda is carrying out trafﬁc safety promotion

activities in 43 countries and regions throughout the world, including Japan.

Honda’s activities are based on the ideas of “Safety handed down from person

to person” by conveying the importance of trafﬁc safety directly to customers at

dealers and to provide “participatory experiential education” under the guidance of

expert instructors.

In Japan, Honda has developed activities to deliver safety for all ages, from

children to seniors, and provided education and actual training on trafﬁc safety to more

than 6.72 million customers to date in cooperation with Honda Trafﬁc Education

Centers, motorcycle and automobile dealers, local corporations, and schools.

Overseas, particularly in emerging countries, there are areas where regulations,

trafﬁc rules and road infrastructure are not yet fully developed even though

motorization is rapidly progressing. As such, the increase in the number of fatal trafﬁc

accidents has become a social issue. Therefore, Honda is undertaking activities

matched to the trafﬁc situation of each country while collaborating with local

governments and relevant organizations.

Human Ability

Countries and regions engaged in trafﬁc safety activities

Canada

U.S.A.

Mexico

Brazil

Argentina

Chile

Peru

Australia

South Africa

Sri Lanka

Bangladesh

Singapore

Malaysia

Vietnam

Thailand

Cambodia

Taiwan

Indonesia

Philippines

China

South Korea

India

Pakistan

Nepal

Portugal

Spain

Turkey

UK

Nigeria

Japan

Germany

Ukraine

Kenya

New Zealand

Costa Rica

Guyana

Guatemala

Bolivia

Uruguay

Paraguay

Colombia

Ecuador

Myanmar

4 Social

Safety

��

33

Basic Approach

��

34

Safety Initiatives

��

37

Quality

��

47

Human Resources

��

63

Supply Chain

��

87

Social Contribution

Activities

��

103

37

Honda ESG Data Book

2023

Contents Editorial Policy

1

Honda’s

Sustainability

2

Environment

3

Governance

5

Performance

Data

6

Data

7

Social

4

FY2023 Activities

Development of Activities in Asian Countries

Held the 1st ASIA-OCEANIA Honda Safety Instructor Competition

The 1st ASIA-OCEANIA Honda Safety Instructor Competition was held in Thailand

on February 2 to 4, 2023.

The purpose of this competition is to share the basic concept of safety driving

promotion activities through the improvement of driving knowledge/skills and mutual

exchange among the instructors. Its scope of coverage has been expanded from

that of the former competition, held since 2001 for Honda instructors in Thailand, to

include safety driving instructors from the Asia-Oceania region.

Safety Riding Park of Thai Honda Co., Ltd. in Phuket was the venue for this

competition, with a total of 116 participants from 12 countries and regions, including

instructors from Trafﬁc Education Centers in each country and instructors from local

subsidiaries. The competition consisted of three motorcycle and three automobile

categories in the area of safety driving techniques, and a presentation on improving

educational methods to reduce trafﬁc accidents in the area of instructional skills. In

each category, the participants from each country competed against each other.

Through this competition, the participated pledged to maintain and improve their

instruction skills, and to do their utmost to promote safety driving in order to realize

zero trafﬁc collision fatalities by 2050.

Driving Training and Education Facility Opened by Honda India Foundation in

Collaboration with the Haryana State Government

On August 6, 2022, Honda India Foundation, in cooperation with the state

government, opened a driving training and education facility in Karnal, Haryana.

Honda India Foundation is the CSR division of Honda Group companies in India.

Atsushi Ogata from the Foundation, stated, “Today’s opening of the driving

training and education facility in Karnal is new step forward in turning citizens into

responsible drivers and riders. I would like to thank the Haryana State Government

for helping us realize our global vision of zero trafﬁc collision fatalities and carbon

neutrality by 2050.”

The facility provides drivers and riders with training programs that combine

theory training, simulator training, and practical skills training. The state-of-the-art

educational equipment allows participants to experience multiple driving conditions

before driving on the road, and the facility also offers safety driving lessons according

to customer requirements.

Competitions

Overall view of facilities Theory training

Safety Initiatives

4 Social

Safety

��

33

Basic Approach

��

34

Safety Initiatives

��

37

Quality

��

47

Human Resources

��

63

Supply Chain

��

87

Social Contribution

Activities

��

103

38

Honda ESG Data Book

2023

Contents Editorial Policy

1

Honda’s

Sustainability

2

Environment

3

Governance

5

Performance

Data

6

Data

7

Social

4

Safety Initiatives

Honda Trafﬁc Safety Information Paper SJ No,512 Spring 2023

Teaching Materials for Continuing Education (Japanese only)

https://www.honda.co.jp/safetyinfo/sj/pdf/2023_SPRING/SJ_2023_SPRING_01.pdf

Collaboration with Trafﬁc Education Centers

In Japan, Honda provides participatory experiential education matched to the needs

of companies, organizations, and individuals.

At Honda’s seven Trafﬁc Education Centers across Japan, expert instructors train

trafﬁc safety leaders. In order to increase safety awareness and improve riding/driving

skills, they also provide theory training and safety training using actual vehicles for

companies, organizations, schools and individuals in dedicated training courses. In

FY2023, Honda provided education to some 50,000 persons.

In Asian countries, trafﬁc education was provided to approximately 3.33 million

persons to raise safety awareness. Honda will continue to offer support matched to

local needs, including its trafﬁc safety know-how amassed in Japan and human

resources development.

Utilizing education materials, “Digital Trafﬁc Safety Karuta” and “Sing, Dance and ‘Stop, Meow!’”

Collaboration with Local Communities

Development of materials for continuous education

In Japan, Honda offers educational programs and teaches instruction techniques to

trafﬁc safety instructors for conveying trafﬁc safety in each local community.

Last year, Honda validated whether the use of its educational programs has led

to changes in participants’ behavior. The results showed that with the passage of

time, participants’ behavior returned to the level observed before the educational

programs were provided, and therefore, continuous education is necessary.

Based on this fact, Honda considered developing educational materials that

kindergarten or nursery/ elementary school teachers can provide short trafﬁc safety

education sessions, during morning and afternoon meetings. In the development of

materials, for making children to aware safety behavior with fun, Honda asked for the

opinions from teachers. Then, Honda developed education materials named “Sing,

Dance and ‘Stop, Meow!’” for kindergarten and nursery school children, and “Digital

Trafﬁc Safety Karuta (traditional Japanese playing cards)” for elementary school

children.

Raising Trafﬁc Safety Awareness among New Target Groups

Hands-on Safety Education Using Digital Technology

Honda has been conducting safe driving promotion activities for more than 50 years.

Among these activities, Honda has continued to focus on hands-on safety

education and participatory experiential education. In recent years, with the spread of

the Internet, we have created an environment in which we can disseminate

information to an even greater number of people than ever before.

Last year, Honda utilized a web-based environment that facilitates customer

participation and rolled out a YouTube program to promote safety awareness among

the increasing number of riders with a Class 2 moped license, and delivery service

providers in response to the increasing demand for deliveries. To date, the program

has been viewed more than 90,000 times and has helped spread safety awareness in

a new way. Honda will continue to evolve its activities to meet the needs of the times.

4 Social

Safety

��

33

Basic Approach

��

34

Safety Initiatives

��

37

Quality

��

47

Human Resources

��

63

Supply Chain

��

87

Social Contribution

Activities

��

103

39

Honda ESG Data Book

2023

Contents Editorial Policy

1

Honda’s

Sustainability

2

Environment

3

Governance

5

Performance

Data

6

Data

7

Social

4

Development of Educational Equipment

Honda leverages its know-how on riding/driving safety and hazard prediction training

(kiken yosoku training – KYT) it has accumulated over the years as well as develops

and promotes the widespread use of educational equipment, such as simulators,

which mimics actual trafﬁc conditions and enables people to experience hazards in a

safe environment.

To date, Honda has developed educational equipment, such as Riding

Simulator and Driving Simulator, that provides hazard prediction training for

motorcycle riders and automobile drivers. Such training is difﬁcult to conduct on

public roads in the process of obtaining a driver’s license, and these simulators are

being used at driving schools nationwide. Besides, Honda offers a lineup of

equipment matched to diverse participants, such as Bicycle Simulator to learn safety

bicycle riding; Movie KYT, which enables a large group of persons to experience

hazard prediction; and Riding Trainer*

1

, which offers hazard perception training for

motorcycle riders, who operate the equipment themselves, and can be easily

relocated to overseas facilities.

In this context, Movie KYT has been renewed to provide training for not only

motorcycle riders and automobile drivers, but also bicycle riders, who are often the

perpetrators or victims of trafﬁc accidents. Honda will continue to promote its

educational equipment for all trafﬁc participants.

Activities in the Welfare Field

Honda not only develops welfare vehicles, but also offers program*

2

to train

physically disabled people to return to driving in actual vehicles, as well as provides

simple simulators and evaluation software to evaluate driving ability at hospitals and

other facilities.

In 2023, in addition to the simple simulators, Honda started selling DB Model-A,

a full-ﬂedged driving simulator for driving schools with driving ability evaluation

support software.

Furthermore, Honda supports hospitals and facilities that provide assistance to

those seeking to return to driving in each regional unit. This activity has become a

project, starting in Shikoku area and expanding to the western Japan area, and is

currently widening its circle of activities with the goal of nationwide expansion.

At Trafﬁc Education Centers, Honda also offers a safety driving training program*

3

for drivers who transport elderly and disabled persons to and from welfare facilities.

*1 Available in 24 languages,

approximately 6,000 units of the Riding

Trainer are used worldwide, with some

3,000 units in Asia and Oceania alone.

*2 A program offered at Honda Trafﬁc

Education Centers as a means to

evaluate the driving competence of

people with higher cerebral dysfunction

who wish to resume driving. It is used

to check their current ability to drive an

actual vehicle and to train them to

overcome the identiﬁed issues.

*3 A program offered at Honda Trafﬁc

Education Centers for welfare facility

drivers providing pickup and drop-off

services. During these services, it

provides advice on preventing

accidents as well as training to facilitate

an understanding of the importance of

giving due consideration to their

passengers.

Training scene with Movie KYT Bicycle hazard prediction experience video

Safety Initiatives

DB Model-A

4 Social

Safety

��

33

Basic Approach

��

34

Safety Initiatives

��

37

Quality

��

47

Human Resources

��

63

Supply Chain

��

87

Social Contribution

Activities

��

103

40

Honda ESG Data Book

2023

Contents Editorial Policy

1

Honda’s

Sustainability

2

Environment

3

Governance

5

Performance

Data

6

Data

7

Social

4

Performance of Mobility

Honda’s Approach

Honda engages in technological development by fully understanding the real

accident situations in a real-world trafﬁc environment comprising multiple types of

road users, including motorcycles and automobiles, and by conducting detailed

analyses of accident mechanisms.

To date, Honda has developed the world’s ﬁrst*

1

pedestrian dummy, an

anthropomorphic model used to reproduce the human body’s kinematics during a

collision with an automobile, and has established the world’s ﬁrst indoor omni-

directional crash test facility to conduct research into more realistic crash

conﬁgurations. In addition, the Company has developed and introduced new

technologies, such as the SRS Airbag System for the driver’s seat, the Advanced

Compatibility Engineering (ACE) body structure, and the Collision Mitigation Braking

System (CMBS) (a world ﬁrst) for automobiles*

2

, and the mass-produced airbag

system for motorcycles (a world ﬁrst).

Since 2014, Honda has been expanding the application of Honda SENSING

and Acura Watch, driving safety support systems that assist in accident avoidance,

to each of its automobile models. In 2022, the Company launched Honda SENSING

360, which has evolved into an omni-directional safe driving support system based

on the knowledge and know-how accumulated through the research and

development of Level 3 autonomous car technologies.

Since motorcycle accidents account for the majority of trafﬁc accidents in

emerging countries, Honda aims to expand the application of Honda SENSING with

motorcycle detection function to all automobile models and equip more motorcycles

with its advanced braking systems, such as ABS and CBS, and headlights that

provide better visibility to riders and make them more visible to other road users in

the future.

In developed countries, the Company aims to apply these technologies, which

cover a wide range of fatal collision situations envisioned by Honda, to all automobile

models by 2030, including Honda SENSING 360, enhanced pedestrian protection

and collision mitigation performance, and advanced automatic accident reporting

systems.

*1 Based on Honda’s research

*2 A safety-oriented body structure that

efﬁciently disperses and absorbs

collision energy in the engine

compartment when automobiles collide

with each other. It offers signiﬁcantly

greater occupant protection and

reduces the damage to the other

impacted vehicles.

Pedestrian dummy

SRS Airbag System

Collision Mitigation Braking System (CMBS)

Indoor omni-directional crash test facility

Advanced Compatibility Engineering (ACE) body

structure

Mass-produced airbag system for motorcycles

Safety Initiatives

4 Social

Safety

��

33

Basic Approach

��

34

Safety Initiatives

��

37

Quality

��

47

Human Resources

��

63

Supply Chain

��

87

Social Contribution

Activities

��

103

41

Honda ESG Data Book

2023

Contents Editorial Policy

1

Honda’s

Sustainability

2

Environment

3

Governance

5

Performance

Data

6

Data

7

Social

4

Rear-end collisions Vehicle-pedestrian

collision

56

%

reduction

82

%

reduction

Collision reduction effect of vehicles equipped with Honda SENSING (N-BOX)

All major markets Global

Japan

99

％

USA

99

％

86

％

Sales ratio of models equipped with Honda SENSING and Acura Watch (2022)

Honda SENSING with motorcycle detection function

FY2023 Activities

Toward the realization of zero trafﬁc collision fatalities involving Honda motorcycles

and automobiles worldwide by 2050, the widespread use and functional evolution of

Honda SENSING and Acura Watch are of critical importance in Honda’s efforts

concerning automobiles.

The Honda SENSING and Acura Watch, safety and driver-assistive systems

Honda currently applies to its mass-production models are installed to 99% of Honda’s

new automobile models sold in Japan and the U.S. and 86% globally as of 2022.

Cumulative sales of vehicles equipped with Honda SENSING now tops 14 million units.

N-BOX mini-vehicles equipped with Honda SENSING, which are on the market in

Japan, have shown an 82% reduction in rear-end collisions and a 56%* reduction in

accidents involving pedestrians, conﬁrming the effectiveness of this technology in

reducing trafﬁc accidents.

To address motorcycle accidents in emerging countries, the application of

Honda SENSING with a motorcycle detection function is also being expanded.

In terms of functional evolution, in September 2022, a new feature of Honda

SENSING, Sudden Acceleration Suppression Function, which is effective in reducing

the number of accidents caused by a mistaken step on the gas pedal instead of the

brake, was installed in N-WGN, which underwent a minor model change in Japan. In

addition, utilizing the knowledge and know-how accumulated through the research

and development of Level 3 autonomous car technologies, Honda has recently

developed Honda SENSING 360, which has evolved into an omni-directional safe

driving support system, and is being installed in the new CR-V model launched in

China in December 2022.

Safety Initiatives

* The difference in the number of trafﬁc

accident fatalities and injuries per

registered vehicle between N-BOX

vehicles without AEB and vehicles

equipped with Honda SENSING. Based

on data from the Institute for Trafﬁc

Accident Research and Data Analysis,

according to Honda’s research.

Sudden Acceleration Suppression Function (N-WGN, Japan)

When a misstep or

overstep on the

accelerator pedal is

detected

Suppresses sudden

acceleration, and

warns with sound and

display

4 Social

Safety

��

33

Basic Approach

��

34

Safety Initiatives

��

37

Quality

��

47

Human Resources

��

63

Supply Chain

��

87

Social Contribution

Activities

��

103

42

Honda ESG Data Book

2023

Contents Editorial Policy

1

Honda’s

Sustainability

2

Environment

3

Governance

5

Performance

Data

6

Data

7

Social

4

Furthermore, in December 2022, as the next evolution of Honda SENSING 360, the

Company announced new functions, and its plan to begin applying the functions

sequentially on a global basis from 2024.

The new functions include the Advanced Lane Change Assist Function with

Hands-off Function and the Advanced In-Lane Driving Assist Function to reduce the

driving load, as well as the following functions to improve safety: the Driver

Emergency Support System, when the driver is unresponsive to the system’s

requests for a handover (the transfer of control back to the driver), the system assists

deceleration and stopping of the vehicle within the same lane; the Exit Warning, while

the vehicle is parked, when the system detects a vehicle approaching from the rear,

the indicator on the front pillar or side mirror lights up to assist occupants to

recognize an approaching vehicle; and the technology that detects the driver’s

condition and the risk ahead and provides “collision avoidance technology using” the

Driver Attention Warning and Collision Warning, In-Lane Collision Avoidance Assist

Technology, Emergency Steering Support Technology, etc.

Announced Honda SENSING 360 new functions

Driver Emergency Support System

“Warning”

Exit Warning

Emergency Steering Support Technology

Safety Initiatives

4 Social

Safety

��

33

Basic Approach

��

34

Safety Initiatives

��

37

Quality

��

47

Human Resources

��

63

Supply Chain

��

87

Social Contribution

Activities

��

103

43

Honda ESG Data Book

2023

Contents Editorial Policy

1

Honda’s

Sustainability

2

Environment

3

Governance

5

Performance

Data

6

Data

7

Social

4

Trafﬁc Ecosystem

Honda’s Approach

In 1998, Honda started to offer “Internavi,” a car navigation system in Japan that is

equipped with communication functions to support safe driving by providing drivers

with information on trafﬁc congestion and disasters using driving data collected from

Honda vehicles.

In 2013, Honda launched a Safety Map service that integrates and analyzes

various information, such as emergency braking information collected through the

Internavi system, information on trafﬁc accidents provided by the police and local

governments, and trafﬁc information provided by local residents. This service on

Honda’s website allows users to learn in advance about areas where accidents

frequently occur. In addition to being used by ordinary people, the Safety Map has

also been used by local governments and other organizations to improve roads by

adding road markings, etc. The total number of road improvement measures taken

since 2013 is over 150.

These efforts have evolved since then, and in 2017 the Company launched

Honda Drive Data Service, a data service that displays dangerous areas on a map in

real time, aiming to address social issues, including disaster prevention and trafﬁc

accident prevention.

Honda is also conducting a demonstration experiment of the Road Hazard

Condition Monitoring System, which shares information on dangerous road

conditions detected by ADAS cameras, such as road surface sinking and road

construction, with other vehicles in the vicinity, including motorcycles.

In addition, Honda is participating in D-Call Net

®

*, an emergency automatic

notiﬁcation system. This system utilizes vehicle-connected technology, commonly

called AACN (Advanced Automatic Collision Notiﬁcation), to estimate the probability

of fatality and serious injury in the event of an accident, and automatically notiﬁes the

ﬁre department and cooperating hospitals from the vehicle involved in the accident.

In the future, the Company plans to develop a system that expands the scope of

coverage to include accidents involving pedestrians and motorcycles to save even

more lives.

Looking toward the future, in 2021, Honda unveiled its Safe and Sound Network

Technology, which connects all trafﬁc participants, i.e., people and mobility vehicles,

through telecommunications to predict risks before accidents occur and support

accident avoidance. The Company is accelerating industry- and public-private sector-

led efforts toward social implementation of the technology from 2030 onward.

* D-Call Net

®

is a registered trademark of

the NPO Helicopter Emergency Medical

Service Network (HEM-Net).

Safe and Sound Network

Safety Initiatives

4 Social

Safety

��

33

Basic Approach

��

34

Safety Initiatives

��

37

Quality

��

47

Human Resources

��

63

Supply Chain

��

87

Social Contribution

Activities

��

103

44

Honda ESG Data Book

2023

Contents Editorial Policy

1

Honda’s

Sustainability

2

Environment

3

Governance

5

Performance

Data

6

Data

7

Social

4

Risk area

Kindergarten / School children

Risk area

Motorcycle detection

from other vehicles

Runaway vehicle

Pedestrian location

Detection information

from other vehicles

Risk area

information

Decreased

attention

Decreased

awareness

Decreased visibility

Roadside camera

Safe and Sound Network Technology

Objective

Technology Content

Technical Features

Aim for the achievement of a traﬃc society where no one collides

by providing appropriate information according to the respective

conditions of road users and traﬃc situations by utilizing

communication technology.

Avoids accidents in advance through

technology that estimates the

behaviors and conditions of all road

users and judges them in an

integrated manner to predict risks.

・ Connects with all road users through the utilization of telecommunication

・ Consolidates risks hidden in the traﬃc environment through camera/probe information

・Transmits risk information appropriately in accordance with individual conditions and

characteristics

Integrates the information groups consolidated on the server into a map

● Digital Twin ● Integrated Risk Judgment

Algorithm

High

Vehicle HMI Pedestrian/motorcycle

device HMI

Real Time Property

Low

Cooperative Platform

Proceed with the standardization of cooperative platforms with industry/public/private sector joint eﬀorts for early social implementation.

Cooperative Risk HMI

Builds good relationships with the sur-

roundings by sharing eﬀective intentions

Environment/Human Sensing

Estimates the individual conditions

of all road users

Predicts behavior/Understands the situation

Predicts hidden dangers from vehicle behavior Predicts hidden dangers from

vehicle behavior

Estimates the behavior and

conditions of road users and

judges them in an integrated

manner to predict risks.

Dynamic

Semi-dynamic

Semi-static

Static

・Road user locations and individual

　conditions

・Broken-down vehicle/traﬃc congestion

　information

・Presence of parked vehicles

・Regulatory information/weather information

・Personal characteristics of traﬃc 　

　participants

・Lane information

Road User DB

ITS HONDA A1 Panel

Size A1 W841mm x H594mm

04 Safe and Sound Network Technology

FY2023 Activities

In Japan, Honda CONNECT, an in-vehicle telecommunication module produced

exclusively for Honda vehicles, was ﬁrst installed in the FIT model in 2020, and since

then, it has been installed in six models as of 2022, including Honda e, VEZEL,

CIVIC, Step WGN, and ZR-V. In the event of an accident or other emergency, the

Honda CONNECT-equipped vehicle itself communicates with the Emergency

Support Center, which collectively sends vehicle information and location data via an

operator to the police, ﬁre department, insurance company, etc., allowing them to

respond quickly and accurately.

Furthermore, in October 2022, Honda began offering Honda Connect

Insurance*

1

. Honda Connect Insurance is a telematics insurance linked to the driving

behaviors and skills of the driver, which are scored monthly based on driving data

acquired by telematics technology, and the premiums for the following year are

discounted based on the score. This insurance is offered as a rider to automobile

insurance products. Driving scores and advice are delivered monthly to policyholders

in the form of driving reports, helping to improve their safety awareness in their daily

driving.

In September 2022, at the 28th ITS World Congress*

2

2022 (Los Angeles),

Honda exhibited as its future technology research, the Safe and Sound Network

Technology and the Road Hazard Condition Monitoring System, which shares

information on dangerous road conditions detected by ADAS cameras, such as road

surface sinking and road construction, with surrounding vehicles including

motorcycles, and alerts them before passing the relevant area.

Regarding Honda’s Safe and Sound Network Technology, the Company is

working to realize ﬂexible and expandable new DX infrastructure and applications

based on the 5G network by utilizing trafﬁc signals that are necessary for the

construction of such a network. In order to realize the social implementation of the

infrastructure and applications, in August 2022, Honda joined the Consortium for DX

Promotion by Utilizing Trafﬁc Management Infrastructure as an executive member,

which aims to realize a safe, secure, and sustainable trafﬁc society where people,

mobility vehicles, and infrastructure work in harmony.

Customer

搭載車

(3) Driving diagnosis & premium discount

Honda Connected Platform

(2) Provide

driving data

to insurance

companies

(1) Transmits

driving data

Honda Connect Insurance

*1 Developed by Honda jointly with

Sompo Japan Insurance Inc., Tokio

Marine & Nichido Fire Insurance Co.,

Ltd., and Mitsui Sumitomo Insurance

Company, Limited

*2 International conference to present and

discuss the results of research,

development, and practical application

of solutions to transportation problems

Mechanism of the Road Hazard Condition Monitoring System

Incident information

detection

Road conditions

Road construction area

Pothole

4G/5G

Transfer of information

to surrounding

vehicles

V2X

Safety Initiatives

4 Social

Safety

��

33

Basic Approach

��

34

Safety Initiatives

��

37

Quality

��

47

Human Resources

��

63

Supply Chain

��

87

Social Contribution

Activities

��

103

45

Honda ESG Data Book

2023

Contents Editorial Policy

1

Honda’s

Sustainability

2

Environment

3

Governance

5

Performance

Data

6

Data

7

Social

4

Third-Party Evaluations

FY2023 Activities

Many of Honda’s models have received the highest safety ratings in third-party

evaluations in various regions, including the IIHS*

1

in the United States, where testing

requirements have been tightened and new standards have been introduced.

Country/Region Third-party evaluation Models Number of vehicles*

4

Japan JNCAP*

2

5

Step WGN 1/1

USA

IIHS

TSP+

Civic Hatchback / Civic Sedan / Insight / Accord / Odyssey / HR-V / Acura TLX / Acura MDX / Acura

RDX / Acura Integra

10/10

TSP CR-V 1/1

US NCAP

5

Insight / HR-V / Accord / Odyssey / Civic Hatchback / Civic Sedan / Passport / CR-V / Pilot /

Ridgeline / Acura RDX / Acura MDX / Acura ILX / Acura TLX

14/14

Europe Euro NCAP

5

Civic 1/2

China C-IASI*

3

GGG Integra / Civic 2/2

Southeast Asia ASEAN NCAP

5

HR-V / BR-V 2/2

*1 IIHS: Insurance Institute for Highway

Safety

The organization conducts the car

assessment that tests and evaluates

the safety performance of various cars.

IIHS only awards TSP and TSP+ to

vehicles that achieve excellent test

results. TSP refers to Top Safety Pick.

*2 NCAP: New Car Assessment Program

This is a program that tests and

evaluates the safety performance of

cars and is performed by public

organizations in various regions.

Testing and evaluation methods are

different for each region. Ratings range

from 0 to 5 (5 + is the highest

rating in some regions).

*3 C-IASI: China Insurance Automotive

Safety Index

This tests and assesses the safety

performance of vehicles, in which the

four grades of G (Good), A (Acceptable),

M (Marginal) and P (Poor) are used.

*4

Number of vehicles that received the

highest rank / number of vehicles that

received a rating

Safety Initiatives

Results of key third-party evaluations (tests conducted in FY2023)

4 Social

Safety

��

33

Basic Approach

��

34

Safety Initiatives

��

37

Quality

��

47

Human Resources

��

63

Supply Chain

��

87

Social Contribution

Activities

��

103

416-1

46

Honda ESG Data Book

2023

Contents Editorial Policy

1

Honda’s

Sustainability

2

Environment

3

Governance

5

Performance

Data

6

Data

7

Social

4

Material issues

Assuring outstanding product quality

4

Social Quality

47

Honda ESG Data Book

2023

Aiming to Bring Reassurance and

Satisfaction to Customers

“We have to aim for 120% product quality. If 99% of the products we make are

perfect it would seem like a pretty good record. However, the customers who

become owners of the remaining 1% will surely consider their products 100%

defective. It is unacceptable that even one customer in a thousand – even one

customer in ten thousand – should receive a defective product. This is why we have

to aim for 120%.” These words of founder Soichiro Honda deﬁne the company’s

fundamental approach to quality, or, more speciﬁcally, what it means to strive to be a

company society wants to exist. Determined to meet or exceed the expectations of

customers, Honda is undertaking new initiatives to meet high product quality

standards.

Adhering to these objectives, Honda’s commitment is to strengthen customer

trust by offering products founded on safety and a new level of outstanding quality.

To this end, Honda has created the Honda Quality Cycle ( p. 51), which works

continuously on quality enhancement and improvement, encompassing every stage

in the process – from planning, development, production, and sales to after-sales

service.

In order to realize the basic principles of ‘Respect for the Individual’ and ‘The

Three Joys’ (the joy of buying, the joy of selling, the joy of creating), Honda has

conﬁrmed being number one in customer satisfaction in all points of contact as a

primary objective. Honda works in collaboration with dealers to satisfy customers at

every stage, from sales to after-market service, so that customers can continue using

and enjoying its products and services.

Offering a New Level of Outstanding Quality

Over the years, Honda has implemented a variety of dynamic activities aimed at

realizing products that achieve a new level of outstanding quality.

Meanwhile, the industry is heading toward an unprecedented turning point

concerning responses to factors of environment, safety, and intelligence.

Honda will accelerate powertrain electriﬁcation to achieve carbon neutrality as

well as introduce driver-assistance technologies for the realization of a collision-free

mobile society. Furthermore, Honda is now working to create new value through

open innovation by teaming up with other companies, including many from different

industries, to address the challenge of creating new forms of mobility that incorporate

the Internet of Things (IoT).

Moving ahead, Honda aims to reduce problems at all points of customer

contact in step with innovations in mobility and living, in addition to ensuring the

highest quality levels among the products and services that customers rely on.

Through this pursuit of quality in each domain, Honda has allowed its activities to

evolve and produce new standards along the way.

Basic Approach

4 Social

Safety

��

33

Quality

��

47

Basic Approach

��

48

Global Management

��

49

Quality Initiatives

��

51

Third-Party Evaluation

��

62

Human Resources

��

63

Supply Chain

��

87

Social Contribution

Activities

��

103

48

Honda ESG Data Book

2023

Contents Editorial Policy

1

Honda’s

Sustainability

2

Environment

3

Governance

5

Performance

Data

6

Data

7

Social

4

Global Management

Quality Management System and

Quality Enhancement Promotion System

Global Honda Quality Standard (G-HQS) Aimed at

Increasing Quality of Honda Brand Products and Services

As Honda’s production expands globally, alongside its parts and materials sourcing,

maintaining a shared global quality management system is essential to ensure that all

facilities continue to remain consistent in generating 120% product quality.

Established in April 2005, G-HQS serves as the foundation of this system.

Based on the Honda Quality Cycle, G-HQS is a set of fundamental standards

supporting quality assurance and improvement activities in all sections. The aim is to

improve the quality of Honda brand products manufactured and sold around the

world as well as the services offered globally. G-HQS is also, in part, utilized as a

means to reliably implement and certify process-based quality assurance focusing on

rules, which has recently grown in importance following changes in laws, regulations,

and the business environment.

In accordance with the Honda Quality Cycle, to enhance and improve quality,

Honda clearly deﬁnes the roles and responsibilities between global and regional

functions in such areas as planning/development, production, sales/service, and

quality. With G-HQS, the goals and requirements integral to quality assurance

activities for each function are stipulated by global function. In line with local

characteristics, the means for achieving these goals and requirements are speciﬁed

by each operation base. This approach enhances the awareness of quality

improvement and leads to the personal growth of local associates. The operational

status of G-HQS within each operation base is conﬁrmed by global function on a

regular basis to enhance quality improvement activities as a concerted effort

alongside facilities.

Based on ISO 9001* criteria to which Honda production facilities in Japan and

around the world have been certiﬁed, G-HQS represents the accumulation of

knowledge that Honda has gathered independently to improve quality and prevent

issues from recurring. As such, conforming to G-HQS is compatible with conforming

to ISO certiﬁcation standards.

As of February 28, 2023, 56 of the 60 Honda production facilities had acquired

ISO 9001 certiﬁcation.

Global Meeting Structure

In order to ensure the strengthening of quality under this quality management system,

Honda sets challenges based on quality targets established in company-wide policy,

which are then modiﬁed to reﬂect those faced in different regions for which speciﬁc

countermeasures are formulated. Regular Global Quality-related Meetings allow for this

initiative to be managed and for information sharing to take place.

Regarding customer service, Honda has devised an action policy that is focused

on each customer, via which value is created through service and the joy of

continuing to use Honda products is prioritized. Those individuals responsible for

quality-focused departments, from the headquarters down to the regions, hold joint

Aftersales Business Meetings to share this policy and any other measures globally.

Any productive measures and initiatives established within these meetings are set as

global benchmark levels to enable the provision of higher-quality services on-site.

* ISO 9001: An international quality

control and quality assurance standard

set by the International Organization for

Standardization (ISO).

Global Automobile Quality Meeting

Meeting structure Business Meeting name Times/year

Quality related

Motorcycle

Global Chief Inspecting Engineer

Meeting

1Automobile

Power products

Automobile Global Automobile Quality Meeting 3

Aftersales business

Motorcycle Aftersales Business Meeting 1

Automobile

Aftersales Business Meeting 2

Power products

Global meeting structure

4 Social

Safety

��

33

Quality

��

47

Basic Approach

��

48

Global Management

��

49

Quality Initiatives

��

51

Third-Party Evaluation

��

62

Human Resources

��

63

Supply Chain

��

87

Social Contribution

Activities

��

103

49

Honda ESG Data Book

2023

Contents Editorial Policy

1

Honda’s

Sustainability

2

Environment

3

Governance

5

Performance

Data

6

Data

7

Social

4

Quality Control Training

With the aim of improving associates’ quality assurance skills, Honda offers quality

control training based on in-house qualiﬁcations and quality control responsibility

levels.

In Japan, Honda offers a training curriculum that consists of four courses

divided into basic training and specialized training. As part of this curriculum, the

Honda QC Basic Course (HBC) focuses on training experts in all aspects of Honda

quality control and is open not only to Honda associates but also to suppliers.

Outside of Japan, the QC Junior (QC J) Course and the QC Foreman (QC F)

Course are offered as basic training.

HBC ﬂow

HBC

1. Coursework

2. Session to review how to address issues

Repeat the cycle of steps (2) and (3) above

3. SQC implementation in trainees’ own departments aimed

at resolving themes/issues

Trainees

Themes that need to be addressed in trainees’ own departments

Cultivates quality control experts with practical skills by teaching trainees to

resolve issues in their own departments

Award ceremony and on-site veriﬁcation (FY2023)

Best Quality Award

By analyzing quality-related measures based on policy management with the aim of

elevating quality awareness, the head of the Quality Innovation Supervisory Unit

presents awards for themes that generate outstanding results. Divisions eligible for

recognition include development, production, production technology, purchasing,

certiﬁcation, quality, parts/service, and IT.

Awards for divisions overseas were introduced in 2012, with the head of the

Quality Innovation Supervisory Unit presenting the awards on-site. From FY2013 to

FY2023, visits were made to a total of 69 sites around the world (suspended

between 2020 and 2021 due to the COVID-19 pandemic but resumed in FY2023) to

directly communicate with associates (employees).

Global Management

* SQC Course and HBC are held in Japan.

Category Course name Course content Period

Basic

training

QC Junior

(QC J) Course

Targets associates during the six-month to one-year

period after joining Honda to teach the basics of

quality control techniques.

1 day

QC Foreman

(QC F) Course

Targets associates engaged in production and

quality duties to teach the key quality control

techniques and approaches required for robust

quality assurance activities.

2 days

Specialized

training

Statistical

Quality Control

(SQC) Course

Targets the teaching of professional quality control

techniques and approaches among those associates

whose principal responsibility is quality control and

the carrying out of quality improvement activities.

2 days

Honda QC

Basic Course

(HBC)

Targets associates responsible for the core of

quality control activities to teach skills that allow

them to resolve difﬁcult problems/issues with the

aim of becoming quality control experts.

Total of

18 days

Training curricula content

4 Social

Safety

��

33

Quality

��

47

Basic Approach

��

48

Global Management

��

49

Quality Initiatives

��

51

Third-Party Evaluation

��

62

Human Resources

��

63

Supply Chain

��

87

Social Contribution

Activities

��

103

50

Honda ESG Data Book

2023

Contents Editorial Policy

1

Honda’s

Sustainability

2

Environment

3

Governance

5

Performance

Data

6

Data

7

Social

4

Quality Initiatives

Honda Quality Cycle

Honda has created the Honda Quality Cycle to provide a continuous focus on quality

enhancement and improvement at every stage, encompassing planning,

development, production, sales, and after-sales service.

The aim of this initiative is to apply and reﬂect design and development expertise

at the production preparation and production (mass production) stages. Ultimately,

the goal is to achieve the highest quality by creating drawings designed to facilitate

manufacturing and by developing manufacturing control techniques that limit process

variability.

Honda Quality Cycle

II. Production Preparation

Prepare quality assurance in

production processes by building

manufacturing controls that limit

process variability.

V. Quality Information Collection/

Analysis and Quality Improvement

Quality information from customers and

markets throughout the world is collected

and analyzed with improvements quickly

made to quality (market quality improvement

system).

III. Production

In addition to using drawings designed

to facilitate manufacturing and

implementing manufacturing controls

that limit process variability, conduct

rigorous inspections of parts and

vehicles, and take steps to ensure no

damage occurs during transport.

IV. Sales and Service

Market quality issues after sales are dealt

with by dealerships, which collect quality

information from customers in a timely

manner.

Global Honda

Quality Standard

(G-HQS)

I. Planning and Development

Implement quality assurance from the

drawing stage by utilizing design and

manufacturing expertise to create

drawings designed to facilitate

manufacturing.

4 Social

Safety

��

33

Quality

��

47

Basic Approach

��

48

Global Management

��

49

Quality Initiatives

��

51

Third-Party Evaluation

��

62

Human Resources

��

63

Supply Chain

��

87

Social Contribution

Activities

��

103

51

Honda ESG Data Book

2023

Contents Editorial Policy

1

Honda’s

Sustainability

2

Environment

3

Governance

5

Performance

Data

6

Data

7

Social

4

Strengthening Activities to Improve Planning and Development

At each stage of planning, development, production preparation, and production

(mass production), Honda is strengthening activities to reduce quality-related issues.

This involves investigating any cause in the event of a major quality issue and

introducing measures to prevent a recurrence.

To prevent speciﬁcation-related issues, Honda identiﬁes the impact of previously

changed and changing points. Improvements are then implemented via a review

committee that examines changing points and works through pending issues.

Additionally, the planning and development procedures at Honda have also

been evolving. Indeed, Honda is strengthening its design review to enhance planning

accuracy in the initial stages of new technology development. Furthermore, the

Company has formulated evaluation conditions and standards in order to minimize

deviation from the values expected by customers and society, as well as setting a

sufﬁcient veriﬁcation timeframe.

To ensure high quality, Honda conducts comprehensive quality assurance activities

from the dual perspectives of planning/development and manufacturing. For

example, drawings for objects that will be machine-processed include ﬁnished

dimensions. However, when the same worker uses the same materials, equipment,

and procedures to produce an item according to the dimensions speciﬁed on the

relevant drawings as part of a given production process, small variations are

inevitably found in the item’s ﬁnished dimensions.

To address this complication, when designing drawings, R&D departments

consider not only function and performance but also the ease of manufacture and

minimization of variations. For their part, production departments implement

manufacturing controls, based on the drawings, to keep variability within applicable

standards and also develop production processes so that all workers can continue

to achieve consistent quality levels.

Quality Initiatives

Planning/Development and Production

(Mass Production)

Processes that create new levels of

enhanced quality (automobiles)

Database storing quality-related data

that Honda has accumulated over

many years, such as design and

manufacturing expertise

Database

Quality assurance

concept

R&D departments

Product function /

performance concepts

Production

departments

Process assurance

concept

. Planning/

Development

. Production

Preparation

. Production

(mass

production)

Communication

Assuring

long-term

reliability through

aggressive

durability testing

Inspecting

electronic

control systems

Drawings design that takes ease of

manufacture into consideration

Assuring quality

through drawings

Establishing manufacturing control

items and criteria

Assuring quality through

production processes

Developing processes to

limit variability

Products

Assuring

parts quality

through

supplier

audits

4 Social

Safety

��

33

Quality

��

47

Basic Approach

��

48

Global Management

��

49

Quality Initiatives

��

51

Third-Party Evaluation

��

62

Human Resources

��

63

Supply Chain

��

87

Social Contribution

Activities

��

103

52

Honda ESG Data Book

2023

Contents Editorial Policy

1

Honda’s

Sustainability

2

Environment

3

Governance

5

Performance

Data

6

Data

7

Social

4

Assuring Quality through Drawings

Honda’s R&D departments create drawings that take ease of manufacture into

consideration in order to limit process variability and prevent human error during the

manufacturing process. These drawings serve as the basis of Honda’s quality

assurance efforts.

Speciﬁcally, the R&D departments utilize a database of measures and

techniques previously used to address market quality issues and other information.

They communicate closely with manufacturing departments during the initial

development stage, together with putting the concepts of product functionality,

performance, and quality assurance in writing. To coordinate the quality assurance

concept, these details are then shared to ensure coordination with production

departments’ process assurance and activities.

Establishment of Development Procedures with Suppliers

For many years, Honda has been committed to development based on “purchasing

components with guaranteed performance,” from which the Company presents its

requirements to suppliers who design and test components for Honda products and

also procures the components from them. Honda’s R&D departments, purchasing

departments, and other related departments have initiated a project to reduce critical

quality issues within such components, which has included producing a manual for

development based on “purchasing components with guaranteed performance.” The

manual is revised annually.

In the planning phase of advanced development, the technical challenges of the

components to be developed are ﬁrst organized. Accordingly then, the key

development roles and responsibilities are determined to reﬂect the development

experience and technical know-how of Honda and its suppliers. Essential

development plan areas to focus on are then clariﬁed, such as increasing the

accuracy of Honda’s requirements or taking a concrete approach toward veriﬁcation.

In addition, quality assurance roles and responsibilities are clariﬁed among

Honda’s departments/business sites and suppliers, based on logistics, distribution

channels, and contractual agreements at the time of mass production. Areas

requiring quality control in development, production preparation, and mass

production are then conveyed to the relevant departments.

When a quality-related issue is found in the process of monitoring product quality

defects based on the aforementioned procedures, an investigation into the cause is

then conducted to ensure continuous improvement in development procedures.

Quality Initiatives

I. Planning/Development

II. Production Preparation

Assuring Quality through Production Processes

To prevent product quality issues, Honda’s production departments establish

manufacturing control items and criteria for each part, process, and operation.

Engineers then use these manufacturing control items and criteria to verify

manufacturing variability.

Honda’s activities regarding parts procurement also cover parts materials.

Furthermore, by incorporating suggestions for enhancement from the work sites

conducting actual operations and determining manufacturing control methods for

each process, Honda develops processes that limit variability.

Assuring Parts Quality through Supplier Audits

Assuring the quality of procured parts is an important factor in delivering high-quality

products.

Honda visits its suppliers’ manufacturing facilities to conduct quality audits

based on the ‘Three Reality Principle,’ which emphasizes ‘going to the actual place,’

‘knowing the actual situation,’ and ‘being realistic.’

These audit activities are conducted for both the production preparation and

mass production stages of supplier operations. Experts in the development and

production of individual parts visit manufacturing facilities to conduct audits of

suppliers’ quality control systems and their implementations.

Honda then works to improve part quality through activities emphasizing

communication with suppliers, for example, by sharing audit results and cooperating

to identify quality improvement measures.

4 Social

Safety

��

33

Quality

��

47

Basic Approach

��

48

Global Management

��

49

Quality Initiatives

��

51

Third-Party Evaluation

��

62

Human Resources

��

63

Supply Chain

��

87

Social Contribution

Activities

��

103

53

Honda ESG Data Book

2023

Contents Editorial Policy

1

Honda’s

Sustainability

2

Environment

3

Governance

5

Performance

Data

6

Data

7

Social

4

Inspection of Electronic Control Systems

In recent years, the installation of electronic control systems in vehicles has increased

dramatically in order to improve environmental friendliness, together with

convenience and comfort. Inevitably, the implementation of efﬁcient inspection is

required to assure the quality of these systems.

To this end, Honda has installed Line End Tester (LET) – an inspection and

diagnostic system developed in-house at production plants in Japan and overseas.

The LET was initially deployed to perform diagnostics of emission cleaning

systems and parts in order to comply with U.S. emissions regulations. Then, in

response to the recent evolution of electronic control systems, Honda extended the

device’s capabilities, allowing its use in the shipping quality inspection of all electronic

control systems, from switches and instruments to air conditioner, audio, engine, and

transmission operations. Doing so has enabled quantitative inspections through

communication with electronically controlled components, which improves the

accuracy and efﬁciency of inspections when compared to conventional methods

dependent on human senses, such as smell, sight, and hearing.

To further enhance the precision and efﬁciency of sensory inspections, Honda is

continuing to promote the quantiﬁcation of shipping quality assurance for electronic

control systems.

III. Production (Mass Production)

Inspection using the LET system

Veriﬁcation of parts following durability testing

Quality Initiatives

Assuring Reliability through Durability Testing

For new or redesigned models, Honda conducts rigorous long-distance durability

testing before beginning mass production of such models to verify that no quality

issues are present.

Honda also disassembles vehicles used in the test drives to verify that no parts

show quality issues via a process consisting of several thousand check items. By

accumulating data on the issues discovered via these test drives and detailed

inspections, as well as associated countermeasures, the Company ensures a high

level of quality and reliability.

4 Social

Safety

��

33

Quality

��

47

Basic Approach

��

48

Global Management

��

49

Quality Initiatives

��

51

Third-Party Evaluation

��

62

Human Resources

��

63

Supply Chain

��

87

Social Contribution

Activities

��

103

54

Honda ESG Data Book

2023

Contents Editorial Policy

1

Honda’s

Sustainability

2

Environment

3

Governance

5

Performance

Data

6

Data

7

Social

4

Honda has established the Customer First Supervisory Unit to realize optimal service

operations in worldwide markets. The unit has set the key objective of being ‘No.1 in

customer satisfaction in all points of contact’ based on a ‘customer-ﬁrst’ policy.

‘No.1 in customer satisfaction in all points of contact’ refers to the realization of

an environment in which customers feel satisﬁed with Honda in each and every

situation they come into contact with the Company. In addition to fulﬁlling customer

expectations built up through past experience and information, the unit aims to be

No.1 in customer satisfaction by providing exciting experiences that exceed

customer expectations.

Customer Satisfaction Survey

Honda conducts a global customer satisfaction survey in relation to service

operations for customers who have received aftersales service from a dealer. In

FY2023, the survey was conducted in 21 countries, including Japan and countries in

North America, South America, Europe, Africa and the Middle East, Asia and

Oceania, and China. The survey method enabled minute measurements of

satisfaction for each part of the service process at a dealer, with the survey ﬁndings

then used to provide guidelines for each dealer. By comparing these guidelines with

other quality-related initiatives undertaken at dealers, activities are being undertaken

toward better service quality at all points of customer contact by implementing a

plan-do-check-act (PDCA) cycle.

In addition, once a year Honda conducts a survey to make comparisons with

manufacturers and brands considered as benchmarks in other countries. The results

are then used as a reference to maintain and improve customer satisfaction at

industry-leading levels. Consequently, in FY2023, Honda attained top-level customer

satisfaction in 19 countries.*

IV. Sales and Service

* Internal survey by Honda; as of March

2023

Improving service operations through customer satisfaction survey

Service process

Preparations for

Customer Visits

Vehicle Drop-off

Service Shop

Operations

Vehicle Return

Follow-up after

Vehicle Return

Service quality

improvement

After-sales service

Comparing guidelines

with quality-related

initiatives at dealers

Customer

satisfaction survey

Quality Initiatives

4 Social

Safety

��

33

Quality

��

47

Basic Approach

��

48

Global Management

��

49

Quality Initiatives

��

51

Third-Party Evaluation

��

62

Human Resources

��

63

Supply Chain

��

87

Social Contribution

Activities

��

103

55

Honda ESG Data Book

2023

Contents Editorial Policy

1

Honda’s

Sustainability

2

Environment

3

Governance

5

Performance

Data

6

Data

7

Social

4

Customer Relations Center

The Customer Relations Center, which is in direct communication with customers in

Japan, has a very straightforward slogan: “For the customer.” Its mission is to handle

inquiries from Honda customers politely, clearly, and quickly, aiming for the highest

quality of response. The center also responds to survey requests from government

agencies and inquiries from consumer advocacy organizations.

The center accepts consultations from customers 365 days a year and

received 138,342 inquiries in FY2023. Valuable feedback from customers, including

questions, suggestions, requests, and opinions, is shared in a timely manner with

the Company’s R&D, manufacturing, service, and sales departments in compliance

with laws and regulations, as well as Honda’s own policies concerning the handling

of personal information.

Customer Car Life Support

Honda is providing services to support optimal car lifestyles for customers in global

markets.

In Japan, for example, Honda is providing Honda Total Care as a membership

service for Honda automobile users.

Members can access information that is useful for car maintenance and

management, as well as make appointments for inspections via a dedicated Honda

Total Care membership website and app. In addition, the Honda Total Care

Emergency Support Center is accessible with the touch of a button in case of an

emergency, as a part of the system that enhances customer convenience.

The Honda Total Care Emergency Support Center is a one-stop contact point

for members facing problems, such as road collisions or vehicle breakdowns. In this

manner, the service relieves members from the burden and confusion of having to

undertake various correspondence with insurance companies, car dealers, and other

parties. The Center is in service 24 hours a day, seven days a week, and makes

smooth roadside assistance arrangements for members in need, as well as providing

support for car operating instructions, among other services.

Honda has also entered into a business alliance with the Japan Automobile

Federation (JAF) – a ﬁrst in the automotive industry – to provide the industry’s most

expansive* roadside service as an optional addition. In addition, Honda has rolled out

the Honda Total Care Premium connected service, starting with the all-new Fit model

released in February 2020. The service includes a function that allows for making an

automatic call to an operator when an airbag is deployed, as well as providing an

onboard emergency call button and trouble support button. By utilizing these

features to eliminate the problems drivers face, Honda provides safer and more

secure automobile lifestyles.

Honda aims to ensure the industry’s highest level of customer support quality by

strengthening relationships with customers through these services.

* Survey by Honda; as of March 2023

Sharing ‘Customer Voice’ in a meeting

Quality Initiatives

4 Social

Safety

��

33

Quality

��

47

Basic Approach

��

48

Global Management

��

49

Quality Initiatives

��

51

Third-Party Evaluation

��

62

Human Resources

��

63

Supply Chain

��

87

Social Contribution

Activities

��

103

56

Honda ESG Data Book

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Contents Editorial Policy

1

Honda’s

Sustainability

2

Environment

3

Governance

5

Performance

Data

6

Data

7

Social

4

To enhance the functions of ‘preventing quality issues’ and ‘quickly detecting and

resolving quality issues when they occur’ on a global scale, Honda has established

the Quality Center to bring together the various organization components concerned

with product market quality information. The facility gathers quality-related

information from dealers in Japan and overseas via service departments and the

Customer Relations Center. Measures and policies for preventing quality issues are

developed based on the issues identiﬁed from this data, then provided as feedback

to the development/production departments, including the design and production

sections, and suppliers too.

Moreover, the Quality Center operates a structure to increase collaboration

between after-sales services and quality assurance activities and strengthen this

feedback ﬂow.

When a quality issue does occur, Honda moves quickly to resolve it, for

example, by working closely with development and production departments to

investigate and address the cause, by assisting affected customers, and by taking

action to prevent a recurrence.

In addition to conventional quality issues related to automobiles, issues

concerning connected services to onboard devices are also handled as quality

issues under this market quality enhancement system.

Prediction System

Honda has recognized the necessity of a system that provides peace of mind to

customers in preparation for new environmental vehicles, such as fuel cell vehicles

and electric vehicles.

With this system, vehicle information is sent to Honda’s data center using

telematics technology and then analyzed. Potential warning signs are identiﬁed from

results prior to any trouble occurring, as a precautionary measure to safeguard

customers.

Honda is further utilizing this system to provide customers with as much peace

of mind as possible.

V. Quality Information Collection/Analysis and

Quality Improvement

Image of the prediction system

Monitor and

analyze

Honda’s data center

Market quality enhancement system (automobiles)

Global service

quality

departments

Quality

assurance

departments

Quality analysis

departments

Global

departments

Overseas service

quality departments

Customer

Relations Center

Domestic service

quality

departments

Production

departments

Development

departments

Reports

Contacts

Feed

back

Feedback

Replies

(primary)

Overseas dealers Dealers in Japan

Overseas Japan

RepliesInquiries

Customers

RepliesInquiries

Customers

Honda

Quality Innovation

Center Tochigi

Domestic service

departments

Overseas

production

departments

Overseas

development

departments

Customers

Inquiries

Replies

Suppliers

Quality Initiatives

4 Social

Safety

��

33

Quality

��

47

Basic Approach

��

48

Global Management

��

49

Quality Initiatives

��

51

Third-Party Evaluation

��

62

Human Resources

��

63

Supply Chain

��

87

Social Contribution

Activities

��

103

57

Honda ESG Data Book

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Contents Editorial Policy

1

Honda’s

Sustainability

2

Environment

3

Governance

5

Performance

Data

6

Data

7

Social

4

Quality Innovation Center Tochigi

Quality Innovation Center Tochigi brings together all the key organizational

components into a single facility, from the collection and analysis of market quality

data to the considering of countermeasures and providing of quick and precise

feedback to development and production departments.

In particular, locating quality and service departments within a single facility

allows for the effective analysis and development of countermeasures thanks to the

ability to share information quickly.

Quality Improvement Operation Process

Quality enhancement operations at the Quality Innovation Center Tochigi, Japan,

consist of pulling together market quality data and sharing information about

collected parts and market quality issues. The personnel of this facility analyze

collected parts, investigate causes, and develop countermeasures and

improvements in a timely manner.

Specialized teams with extensive product knowledge are able to obtain detailed

data using a range of analytical equipment. The operational process is conﬁgured to

facilitate objective and appropriate decision-making based on gathered data.

Quality improvement operation process

Departments in charge of implementing countermeasures

(Quality Innovation Center Tochigi)

R&D departments

Production

departments

Generating

quality

enhancement

feedback

Gathering

information related

to market quality

Vehicle information

Information on the

Web

Japanese and

overseas dealers

Applying preventive

measures across the organization

(Critical quality issues exhibition hall)

Parts

collection

Sharing market

quality data

Investigating causes,

analyzing issues, implementing

countermeasures and reporting

Parts collection

Parts collected from the market are

classiﬁed by category and managed

to facilitate quick analysis.

Sharing market quality

information

Service, R&D and analysis

departments gather and share

information from the market.

Bench environment test

Analyses are conducted in road

environments found around the world,

from low temperatures to under the

scorching sun, to humid conditions,

trafﬁc jams and high speeds.

Bench vibration test

Actual vehicle vibrations are

reproduced on a testing bench

together with analyzing issues.

Exhaust gas and mode

driving veriﬁcation

The compliance of exhaust gas

components with emissions regulations

and proper system operation during

mode driving are veriﬁed.

Analyzing materials

Issues caused by materials are analyzed

using the latest scientiﬁc equipment,

including composition analysis and Xray

diffraction analysis systems.

Testing engine functionality

and performance

The functionality and performance of

assembled engines are veriﬁed on a

bench.

Measuring part precision

Parts’ dimensional precision is

veriﬁed using 3D measurement and

the latest roundness measurement

equipment.

Quality Initiatives

4 Social

Safety

��

33

Quality

��

47

Basic Approach

��

48

Global Management

��

49

Quality Initiatives

��

51

Third-Party Evaluation

��

62

Human Resources

��

63

Supply Chain

��

87

Social Contribution

Activities

��

103

58

Honda ESG Data Book

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Contents Editorial Policy

1

Honda’s

Sustainability

2

Environment

3

Governance

5

Performance

Data

6

Data

7

Social

4

Critical Quality Issues Exhibition Hall Presents Examples of Key Quality Issues

A critical quality issues exhibition hall was established at the Quality Innovation

Center Tochigi in 2009, ensuring that the experience of market quality issues will not

be forgotten and will be passed on to the future by learning through the exhibition of

actual items.

The hall provides key examples of past market quality issues. Many people visit

the hall annually for training or as part of a tour. In FY2023, training was mainly

provided online to about 1,400 participants. The targets include not only Honda

associates but also suppliers, overseas distributors, and service division personnel.

In particular, to strengthen the efforts to prevent market quality issues from

being forgotten and recurring, training for engineers designing and developing

products is being expanded from new recruits and newly promoted managers to

also include young associates in their ﬁfth year with the Company and associates

from Honda’s overseas businesses.

In-person training

Online training

Rust on the body of a Honda Civic made in 1981 Cracked exhaust manifold of Honda Life mini

vehicle made in 1999

Quality Initiatives

4 Social

Safety

��

33

Quality

��

47

Basic Approach

��

48

Global Management

��

49

Quality Initiatives

��

51

Third-Party Evaluation

��

62

Human Resources

��

63

Supply Chain

��

87

Social Contribution

Activities

��

103

59

Honda ESG Data Book

2023

Contents Editorial Policy

1

Honda’s

Sustainability

2

Environment

3

Governance

5

Performance

Data

6

Data

7

Social

4

Analysis in Partnership with Overseas Entities

Overseas production plants play a central role in conducting the same type of quality

enhancement activities as the Quality Innovation Center Tochigi.

When plants encounter a particularly difﬁcult market quality issue and request

assistance, the Center investigates and analyzes the issue before reporting the

results back to the overseas facility.

North

America

Europe

South America

China

Asia

Brazil

U.S.A. (Alabama)

Mexico

U.S.A. (Indiana)

U.S.A. (Ohio)

Canada

Pakistan

India

Nigeria

Ghana

Malaysia

Thailand

Indonesia

Vietnam

Taiwan

China (Wuhan)

China (Guangzhou)

Quality Innovation

Center Tochigi

Working with automotive production plants

Quality Innovation Center Tochigi, Japan

Quality Initiatives

4 Social

Safety

��

33

Quality

��

47

Basic Approach

��

48

Global Management

��

49

Quality Initiatives

��

51

Third-Party Evaluation

��

62

Human Resources

��

63

Supply Chain

��

87

Social Contribution

Activities

��

103

60

Honda ESG Data Book

2023

Contents Editorial Policy

1

Honda’s

Sustainability

2

Environment

3

Governance

5

Performance

Data

6

Data

7

Social

4

When Honda determines that an issue occurs with a product requiring a recall, it

quickly notiﬁes government authorities in accordance with individual countries’

regulations and contacts the product owners by means of direct mail or telephone

from dealers to provide information about how repairs can be received free of

charge. In addition to Honda’s website, recall information is provided through news

media where possible.

As for recalls, a Global Quality Committee is quickly convened in accordance

with G-HQS, and decisions concerning recalls are made by its chairperson in

consultation with members of the relevant sales area, including experts from

departments involved with quality issues who are capable of making objective

decisions.

* These ﬁgures are sourced from internal data and, therefore, may differ from those publicly announced

by authorities.

Airbag recalls

The repeated recalls for airbags have caused Honda customers great inconvenience

and concern.

Honda has always placed top priority on customer safety and peace of mind

and responded to its customers with this in mind.

In accordance with the agreed-upon revisions to the consent order between the

National Highway Trafﬁc Safety Administration (NHTSA) and Takata in May 2016,

Honda has been gradually replacing all Takata ammonium-nitrate-based driver and

passenger front airbag inﬂators that do not contain a desiccant.

Honda will continue to undertake its most extensive efforts to ensure a sufﬁcient

supply of replacement inﬂators to customers and take other necessary measures as

quickly as possible.

Handling Major Quality Issues When They Occur

Segment Times Total units

Automobiles 18 2,556,463

Motorcycles 12 125,319

Power products 0 0

Quality Initiatives

Annual recalls (FY2023)

4 Social

Safety

��

33

Quality

��

47

Basic Approach

��

48

Global Management

��

49

Quality Initiatives

��

51

Third-Party Evaluation

��

62

Human Resources

��

63

Supply Chain

��

87

Social Contribution

Activities

��

103

416-2

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Honda ESG Data Book

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Contents Editorial Policy

1

Honda’s

Sustainability

2

Environment

3

Governance

5

Performance

Data

6

Data

7

Social

4

Honda analyzes the Initial Quality Study (IQS) for automobiles as an indicator of

customer satisfaction, which constitutes the results of the Honda Quality Cycle to

secure the provision of high-quality products.

This study is conducted by J.D. Power, an independent evaluation organization.

Honda’s planning and development, production, and sales and service departments

are working together in this effort.

Third-Party Evaluation

Country Brand Ranking

U.S.A.

Honda No. 16

Acura No. 21

Japan Honda No. 2

Country Segment Model Ranking

U.S.A.

Minivan Odyssey No. 1

Midsize SUV Passport No. 3

Small Premium Car ILX No. 3

Japan

Mini Super Height Wagon N-BOX No. 2

Compact Car FIT No. 3

Midsize SUV VEZEL No. 2

Minivan STEP WGN No. 1

Minivan Odyssey No. 3

China

Compact Upper FIT No. 1

Compact Upper Life No. 3

Compact SUV VEZEL No. 1

Midsize Upper Economy CIVIC No. 2

Midsize Upper Accord No. 2

Large MPV Elysion No. 2

Large MPV Odyssey No. 3

Sources:

· J.D. Power and Associates 2022 U.S.

· Initial Quality Study SM (based on responses from more than 84,165 owners who purchased or

leased a new vehicle as surveyed from February to May 2022)

· J.D. Power Japan 2022 Japan

· Initial Quality Study SM (based on responses from more than 20,797 owners who purchased a new

vehicle as surveyed from May to June 2022)

· J.D. Power China 2022 China

· Initial Quality Study SM (based on responses from more than 34,914 owners who purchased a new

vehicle as surveyed from December 2021 to May 2022)

· Includes top three vehicles in major markets from January to December 2022.

Results of 2022 IQS for automobiles Survey by J.D. Power and Associates

4 Social

Safety

��

33

Quality

��

47

Basic Approach

��

48

Global Management

��

49

Quality Initiatives

��

51

Third-Party Evaluation

��

62

Human Resources

��

63

Supply Chain

��

87

Social Contribution

Activities

��

103

62

Honda ESG Data Book

2023

Contents Editorial Policy

1

Honda’s

Sustainability

2

Environment

3

Governance

5

Performance

Data

6

Data

7

Social

4

Material issues

Respecting human rights

Expanding diversity and

development of human resources

Ensuring occupational safety and

health

4

Social Human Resources

63

Honda ESG Data Book

2023

Basic Approach

Honda believes that human beings are born as free and unique individuals with the

capacity to think, reason and create – and the ability to dream. The Company’s wish

is to be a company where people with dreams of “I want to be this way” or “I want to

do this” gather together, respect individual differences, trust each other as equal

partners, exercise abilities to the fullest and share joy together.

From this standpoint, Honda adopts Respect for the Individual, consisting of the

three elements of initiative, equality and trust, as one of the Company’s Fundamental

Beliefs. Honda believes this spirit should permeate all its relationships, not only with

those in the Honda Group but with everyone in all companies with which Honda

does business. The Company follows the Three Principles of Personnel

Management, speciﬁcally Respecting Initiative, Ensuring Fairness and Encouraging

Mutual Trust, when managing its human resources in areas such as recruitment,

training, assignment and utilization, evaluation and treatment. Honda endeavors to

build an environment in which all associates can demonstrate their abilities,

individuality, and imagination, thereby supporting each individual’s willingness to take

on new challenges.

As Honda’s business activities expand into various parts of the world, it

established Associate Relations Policies in March 2012 that are applied to Honda’s

daily corporate actions, putting the Three Principles of Personnel Management into

practice while taking into account “the Universal Declaration of Human Rights” as

well as “the ILO Declaration on Fundamental Principles and Rights at Work.”

Basic Policy for Personnel Management

Respect for the Individual

Associate Relations Policies

Initiative Equality Trust

Our Fundamental Beliefs

To put these Three Principles into practice, Honda has established the following Associate

Relations Policies:

1. Respecting individual human rights

We accept the individual characteristics and differences of our associates and respect their

willingness and initiative.

We will always respect each individual’s basic human rights and will not allow forced labor or

child labor.

2. No discrimination

Based on the principle that all human beings should have equal employment opportunities,

we will strive to create opportunities for free and fair competition.

We will not tolerate discrimination or harassment of any form in the workplace on the basis of an

individual’s race, ethnicity, national origin, religion, gender or age, among other characteristics.

3. Complying with laws and ordinances

We will respect the social norms, customs and culture of each country.

We will comply with the laws, regulations and ordinances enacted in each country and region.

4. Creating an environment of free, open-minded dialogue

The associates and the Company will respect each other’s views and endeavor to promote

mutual understanding. Maintaining a relationship of mutual trust, the associates and the

Company will make every effort to engage in sincere discussions about any issues that might

arise or exist.

Respecting freedom of association, or not to associate, and collective bargaining, the

Company will attempt to resolve any and all issues in line with the laws, conventions and

usages of each respective country and region.

5.

Maintaining a working environment where each associate can work with a sense of security

The Company will provide a safe and healthy workplace where all associates can concentrate

on work with a sense of security.

Three Principles of Personnel Management

Respecting

Initiative

Honda respects the individuality, creative thinking and judgment

of each associate.

Ensuring

Fairness

At Honda, every person should have equal employment

opportunities. An individual’s race, gender, age, religion, national

origin and social or economic status have no impact on the

individual’s opportunities.

Encouraging

Mutual Trust

Honda and its associates should respect, trust and recognize

each other as individuals and make sincere efforts to fulﬁll our

responsibilities.

4 Social

Safety

��

33

Quality

��

47

Human Resources

��

63

Basic Approach

��

64

Global Management

��

65

Human Resources

Initiatives

��

67

Supply Chain

��

87

Social Contribution

Activities

��

103

407-1

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Contents Editorial Policy

1

Honda’s

Sustainability

2

Environment

3

Governance

5

Performance

Data

6

Data

7

Social

4

Global Management

In accordance with its Company Principle, “maintaining a global viewpoint, Honda is

dedicated to supplying products of the highest quality yet at a reasonable price for

worldwide customer satisfaction,” Honda has been proactively developing business

with a view to entering the global markets since its foundation. In regard to its

expansion overseas, Honda’s business model has evolved from exporting to local

production and then to local development. In recent years, in order to respond

ﬂexibly to changes in the business environment, including the acceleration of

electriﬁcation, the Company has been promoting the global expansion of its

businesses in cooperation with each region of the world.

In order to achieve this goal, Honda is pushing ahead with Global Human

Resources Management Approaches. This initiative facilitates developing and

assigning global personnel who plan, design and develop products that reﬂect

market demand and who deliver quality products in a stable manner.

To be more precise, Regional Operation bases used to be managed mainly by

Japanese expatriates; however, this style of management is being replaced by an

approach where management is run by local associates, who are most familiar with

the region. By assigning associates with experience in working for local and global

operations to global functions, Honda tries to diversify and localize its workforce with

multinational people in order to address market changes promptly and ﬂexibly.

Honda aims for the establishment of an organization in which it can demonstrate

Honda’s total strength by coordinating its operations globally.

Human Resources Vision and Strategies

Global human resources management approaches

Global leader development

at the corporate headquarters

Local human resources development

at Regional Operations

Launching a Global

Succession Plan

Enhancing global

communications

Passing on

Honda Philosophy

Globally common foundation

Optimum assignment

Selection

4 Social

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Quality

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47

Human Resources

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Basic Approach

��

64

Global Management

��

65

Human Resources

Initiatives

��

67

Supply Chain

��

87

Social Contribution

Activities

��

103

404-2

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Sustainability

2

Environment

3

Governance

5

Performance

Data

6

Data

7

Social

4

At Honda, in collaboration with the Human Resources divisions of each business

operation and region, global human resources strategies are formulated from a

medium- to long-term perspective and discussed at the Corporate Strategy Council

attended by the top management members.

The HR strategies deliberated in the Council are broken down into actionable

themes for further discussion in the Global Human Resources Committee (GHRC)

meeting in which associates responsible for human resources from each business

operation and region attend. In line with the directions, company-wide and regional

plans including targets become concrete, and activities are launched throughout the

Company.

At the GHRC in 2022, discussions were held on strengthening of the global HR

function to organically collaborate at a global level as the HR division and contribute

to improving Honda’s competitiveness as “One strong HR team”. To further

accelerate this effort, Honda established the Global Cross-Functional Team (GCFT),

consisting of HR members selected from each region, and began to study and

implement effective and comprehensive global HR measures from more diverse and

global perspectives.

Human Resources Management Structure

Global human resources management

Human Capital Unit (Japan)

Automobile /

Electriﬁcation

HR

Headquarters

HR incl. Org.

Dev. / AR

Motorcycles /

Power

Products HR

Corporate Strategy Council

Examination and proposal of implementation measures for important management issues

Global Human Resources Committee (GHRC)

Sharing HR strategies and medium-term policies / setting targets for each region

Regional HR

North

America

Regional HR

Europe /

Africa /

Middle East

Regional HR

South

America

Regional HR

Asia &

Oceania

Regional HR

China

Global Cross-Functional Team (GCFT)

Global Management

4 Social

Safety

��

33

Quality

��

47

Human Resources

��

63

Basic Approach

��

64

Global Management

��

65

Human Resources

Initiatives

��

67

Supply Chain

��

87

Social Contribution

Activities

��

103

404-2

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1

Honda’s

Sustainability

2

Environment

3

Governance

5

Performance

Data

6

Data

7

Social

4

Human Resources Initiatives

Basic Approach

Honda upholds the idea of “Respect for the Individual” in the Honda Philosophy and

includes “Respect of Human Rights” in the Honda Code of Conduct to show its

policy to “maintain its stance as a company committed to practicing fairness and

sincerity and respecting human rights.”

Also in the Code, Honda speciﬁcally requires its associates to “respect fellow

associates, interact with them in a sincere and appropriate manner, and never

engage in any form of harassment or unjust, discriminatory behavior in the

workplace.”

Accordingly, based on “Respect for the Individual” in the Honda Philosophy,

Honda has formulated the Honda Human Rights Policy to fulﬁll its responsibility to

respect the human rights of stakeholders affected by its business activities.

Honda is committed to respecting human rights that are set out in the

International Bill of Human Rights and the ten ILO core conventions as set out in the

Declaration on Fundamental Principles and Rights at Work. In addition, the Company

supports the United Nations Guiding Principles on Business and Human Rights and

endeavors to practice these principles in business activities.

Human Rights

Honda Human Rights Policy

p. 147

Promotion Structure

Honda has established the Corporate Integration Strategy Meeting, chaired by the

Chief Executive Ofﬁcer (CEO), to discuss and review policies and initiatives to

address sustainability issues.

To sustainably implement initiatives to respect human rights, Honda has clariﬁed

the ofﬁcers responsible for the initiatives, and established a Human Rights Working

Team. The Team is led by the human resources and labor affairs divisions, and

collaborates with many divisions involved in human rights, including the purchasing

divisions and the divisions in charge of sustainability planning.

The Human Rights Working Team is working to strengthen the initiatives and

encourage associates to take appropriate action through human rights due diligence

measures, including assessments for Honda Group domestic and overseas business

sites and suppliers, as well as awareness-raising activities.

The Team has also established a system to prevent and mitigate negative

impacts and risks related to human rights in cooperation with the Compliance

Committee and the Risk Management Committee.

These activities are reported annually to the Executive Council and the Board of

Directors, and are linked to the Company’s sustainability management strategy.

Sustainability Management Structure

p. 05

Corporate Governance Structure

p. 111

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Quality

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Human Resources

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Basic Approach

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64

Global Management

��

65

Human Resources

Initiatives

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67

Supply Chain

��

87

Social Contribution

Activities

��

103

2-23, 2-24, 404-2, 405-1, 412-1, 412-2

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Sustainability

2

Environment

3

Governance

5

Performance

Data

6

Data

7

Social

4

Education and Awareness-Raising Activities

Honda provides training on the Honda Philosophy all around the world. The

Company also works to promote awareness and thorough implementation of the

Code of Conduct by distributing leaﬂets, posting the relevant information on the

corporate intranet, and providing training. Additionally, at the pre-assignment training

conducted by job level, Honda provides overseas subsidiary managers and human

resources managers with information on regional and country-speciﬁc trends and

past labor disputes to promote good labor-management relations. For all expatriate

associates, the Company raises their awareness of the importance of local labor

management in accordance with the Associate Relations Policies, which is applied to

daily corporate activities.

Furthermore, since 2022, Honda has been conducting awareness-raising

activities through e-learning on human rights for all associates to enhance their

understanding of norms set by the international community, the latest trends, and

Honda’s initiatives and Human Rights Policy.

Initiatives for Suppliers

As for suppliers, Honda published the Honda Supplier Sustainability Guidelines,

which state Honda’s basic approach to human rights and labor matters, such as

prohibition of forced labor and child labor. Honda has asked its suppliers to put these

guidelines into practice.

Human Resources Initiatives

Speciﬁc Initiatives

Initiatives for Human Rights Due Diligence

In its company-wide risk assessment activities, Honda has set up a category on

human rights. Once a year, each department conducts a risk assessment in

accordance with the Honda Group’s common criteria.

The department priority risks are then identiﬁed based on the assessment

results and appropriate responses are implemented accordingly.

With regard to all local subsidiaries, including joint ventures, Honda works to

identify any risk concerns by conducting an annual assessment of Group companies

to check if their operations comply with the Associate Relations Policies (

p. 64).

Honda also performs monthly checks on the status of labor management of all local

subsidiaries, including joint ventures, and shares the results in the Global Monthly

Report. Moreover, to make an appropriate response when there is a risk concern,

Honda has in place a system to share and discuss the issue through meetings with

regional human resources ofﬁcers.

In FY2023, no incidents were identiﬁed.

Remedial and Corrective Actions

Honda is striving to create an open organizational culture that allows associates to

report any violation related to human rights to their respective superiors or resolve

the issue among themselves. At the same time, Honda has set up the Business

Ethics Kaizen Proposal Line in Japan and other regions overseas to receive

consultation in a fair and neutral manner.

Associate Relations Policies

p. 64

Business Ethics Kaizen Proposal Line

p. 125

Sustainability Initiatives Inspection for Suppliers

p. 95

4 Social

Safety

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Quality

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47

Human Resources

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63

Basic Approach

��

64

Global Management

��

65

Human Resources

Initiatives

��

67

Supply Chain

��

87

Social Contribution

Activities

��

103

404-2, 410-1, 412-1, 412-2

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1

Honda’s

Sustainability

2

Environment

3

Governance

5

Performance

Data

6

Data

7

Social

4

Diversiﬁcation Aimed at Leveraging Total

Workforce Strength

Reinforcement of Career-Centered Capability

Development to Encourage Self-Improvement

Developing a Global Succession Plan

Individual differences that are demonstrated by its workforce represent a strength of

a company in ﬂexibly responding to the ever-changing business environment. Honda

pursues workforce diversiﬁcation in accordance with the conditions and issues in

each region of the world, believing that the integration of these individualities will

evolve into innovation.

For Honda, diversiﬁcation of the workforce means to enhance its total strength

by providing equal opportunities to people regardless of their personal attributes,

such as race, nationality, cultural background, age, gender, gender identity, sexual

orientation, past career, educational background and having disabilities or not.

Honda also encourages them to respect each other’s individual differences and

talents while exerting their own abilities to the fullest, based on Honda’s philosophy

of Respect for the Individual.

Speciﬁcally, each of Honda’s core regions is hiring and developing personnel by

setting a target for increasing the proportion of women and minority groups (in terms

of race and nationality, etc.) in management and job assignments in accordance with

the conditions of each region. In addition, Honda has been implementing a variety of

initiatives for all associates such as facilitating the understanding of the importance of

diversity and continually carrying out enlightenment activities.

Honda’s approach to personnel education is built around on-the-job training (OJT),

speciﬁcally, building specialized skills and professional capabilities through direct

experience while placing considerable emphasis on the independence of each

associate and his or her eagerness to take on a challenge.

At the same time, Honda has been implementing the following speciﬁc

measures to enable associates to pursue self-improvement toward the realization of

careers they have autonomously envisioned, and supervisors to further support the

development of each individual’s abilities.

1. Holding career training by age group

2. Creating opportunities for dialogue with internal and external advisors about

careers

3. Introducing assessments to objectively determine the level of business skill

acquisition

4. Creating opportunities for supervisors to strengthen the ability to support

subordinates’ career development

5. Developing self-selective learning programs (on-line and e-learning)

Through the implementation of the above measures, Honda will further

strengthen efforts encouraging associates to continue taking up a challenge while

fully understanding their individual responsibilities and the signiﬁcance of their work,

as well as urging the management to maintain their active engagement with and

provide support to associates.

Honda has been developing a Global Succession Plan to systematically develop and

appoint competent and motivated talents regardless of an individual’s attributes

(such as nationality and gender). More speciﬁcally, Honda has developed a Global

Competency Model (GCM), which represents behavioral traits required of a global

leader. The Company has introduced a GCM-based talent assessment system in the

Global Leadership Programs renewed in 2021 as part of its efforts to promote the

development of successor candidates on a global basis. At the same time, Honda

has deﬁned the preconditions and capabilities required of major global positions and

facilitates matching with talent information.

In 2021, the Global Talent Board (GTB) was also established, and discussions

based on the talent and position information described above were started. From

2023, with the establishment of a new GTB Working Group to discuss talents with a

wider range of target groups, Honda will reorganize the Talent Board for each

business operation and function to promote company-wide strategic development

and appointment of talents.

Annual training hours and cost per associate

p. 143

Human Resources Initiatives

4 Social

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Quality

��

47

Human Resources

��

63

Basic Approach

��

64

Global Management

��

65

Human Resources

Initiatives

��

67

Supply Chain

��

87

Social Contribution

Activities

��

103

404-1, 404-2

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Contents Editorial Policy

1

Honda’s

Sustainability

2

Environment

3

Governance

5

Performance

Data

6

Data

7

Social

4

Human Resources Initiatives

Development of Leaders on a Global Basis and

in Each Region

Passing on the Honda Philosophy

Along with the launch of the Global Succession Plan, Honda has updated its leader

training programs in accordance with the GCM.

Since 2021, Honda has been providing the following programs globally.

Global Leadership Program (GLP)-Transformation

GLP-Exploration

GLP-Discovery

While expanding the scale of GLP-Discovery program for young associates in

order to form a group of future leader candidates, Honda has narrowed down the

target of GLP-Transformation and Exploration programs for senior leaders, providing

optimized programs for each.

In each region, Honda is also promoting the development of talents based on

GCM. Going forward, the Company will continue to develop further measures in

cooperation with the HR members of each business operation and region, while

holding GCM as a common indicator for ALL Honda.

In order for Honda to promote the localization of management, it is important to

share with associates around the world the standard of business judgment and

codes of practice, that is, a set of values such as the Honda Philosophy, Honda core

values and competency.

To this end, Honda provides training to conﬁrm and pass on the Honda

Philosophy when associates join the Company or are promoted.

Also, to make that training more practical, headquarters executives and regional

top management introduce a wide range of practical examples of how they thought

and made decisions based on the Honda Philosophy when making decisions and

management judgments.

4 Social

Safety

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33

Quality

��

47

Human Resources

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63

Basic Approach

��

64

Global Management

��

65

Human Resources

Initiatives

��

67

Supply Chain

��

87

Social Contribution

Activities

��

103

404-2

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Honda’s

Sustainability

2

Environment

3

Governance

5

Performance

Data

6

Data

7

Social

4

Human Resources Initiatives

Initiatives Related to Diversity

Advancement in Workforce Diversiﬁcation

Since 2015, Honda has been positioning and promoting workforce

diversiﬁcation as a company-wide priority task toward demonstrating the total

strength of its workforce. “People” play a main role in achieving the 2030 Vision. In

addition to the experience and technology that have supported Honda’s growth to

date, it is now essential to spur innovation through the fusion of diverse values.

In January 2015, the Company established the Diversity Promotion Ofﬁce, an

organization specialized in diversifying Honda’s workforce. In Japan, Honda ﬁrst

embarked on the expansion of women’s participation. During the period from 2015

to 2017, which the Company regards as a phase to build awareness, Honda has

established a foundation to realize a world where people can equally develop their

careers regardless of gender.

In FY2019, the scope of efforts has extended from female associates to all

associates, and Honda is moving on to the next phase of evolution and expansion. It

has been promoting for all associates, including superiors responsible for managing

diverse human resources, experienced associates making up the majority of its

workforce, people with disabilities and the LGBT community.

Roadmap for workforce diversiﬁcation at Honda

Honda Diversity & Inclusion (Japanese Only) https://www.honda.co.jp/diversity/index.html

Continue efforts to expand women’s participation

Strengthen efforts for all associates

Issues related to all associates that were revealed

through initiatives to expand women’s participation

Accelerate initiatives for work style reform

Expand systems to balance work and child/nursing care

Increase opportunities for experienced associates

Initiatives for people with disabilities

Initiatives for LGBT associates

Expand women’s participation

Build awareness

Reform on work climate and work style

Build awareness

Well-balanced work style

Ideal state

2015 2030

2018 2022

Phase to evolve and expandPhase to build awareness

Create an appropriate environment and systems

Career development support for female associates

Career development support for all associates

Continue efforts to expand women’s participation

Autonomous career development

support

Diversity management

Increase opportunities for

experienced associates

Associates with

diverse attributes and

values shining and

demonstrating

individuality will

contribute to

Maximizing

Honda’s

comprehensive

strength

4

Social

Safety

��

33

Quality

��

47

Human Resources

��

63

Basic Approach

��

64

Global Management

��

65

Human Resources

Initiatives

��

67

Supply Chain

��

87

Social Contribution

Activities

��

103

404-2, 405-1

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Honda’s

Sustainability

2

Environment

3

Governance

5

Performance

Data

6

Data

7

Social

4

Promoting Diversity Management

Honda deﬁnes diversity management as the establishment of a framework that

makes effective use of diverse members. It is crucial not only to have diverse human

resources, but also to accept their diversity and respect individuality. Management is

working to promote the development of human resources and creation of an

organization with a focus on the respect for individuality, and thereby, the Company

is proceeding with organizational management with the goal of further growth of

Honda through frank discussions among members with diverse values, the creation

of new businesses and values, and other innovations.

Major initiatives for promoting diversity management

Initiative Lecture on diversity management

Training for cultivating superiors’

diversity skills

Aim

Foster an appropriate work climate to

accept, nurture and leverage diversity

Identify their own challenges to clarify

the way they want to be and learn how

to achieve that goal

Target

Associates holding division manager or

equivalent positions and those in

management positions

Associates holding division manager or

equivalent positions

Number of

participants

Total of about 1,500 over the three

years since 2018

Total of about 240 over the three years

since 2018

Duration 2 hours 8 hours/session x 4 days

Initiative Event for facilitating the understanding of diversity

Aim

Promote engagement of male associates in childcare / understand the need to

support women’s health and help create an organizational culture that makes the

most of diverse individuals

Target Associates in management positions / general associates

Number of

participants

About 330 in the event held in December 2022

Duration 2 hours

Human Resources Initiatives

4 Social

Safety

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33

Quality

��

47

Human Resources

��

63

Basic Approach

��

64

Global Management

��

65

Human Resources

Initiatives

��

67

Supply Chain

��

87

Social Contribution

Activities

��

103

404-2, 405-1

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Honda’s

Sustainability

2

Environment

3

Governance

5

Performance

Data

6

Data

7

Social

4

Meaning of Expanding Women’s Participation

In Japan, Honda’ efforts to expand women’s roles since 2007 have resulted in an

increase in the proportion of female associates in the workforce from 5.0% in the

2005 base year to 8.9% in 2022.

In the meantime, while Honda carries out business operations globally, the

participation of women, and consequently, the proportion of women holding

management positions, lags in Japan compared with other regions. In 2015, with a

renewed determination to increase women in management positions, Honda has

been working to achieve its target of increasing the number threefold from the 2014

level in 2020 and ninefold in 2025. As a result of its conscious efforts since then, the

number of women in management positions increased 2.6 times in FY2021

compared with 2014.

Using FY2021 as the new base year, Honda has updated its target for 2025 and

also set a long-term target for 2030 to triple and quadruple the number by 2025 and

2030, respectively, compared with FY2021. Toward the new target, the Company

will work to reinforce human resources development at a younger age.

In addition, Honda will encourage male associates to become more involved in

childcare as part of its efforts to ensure better employment practices. Speciﬁcally, the

target for the percentage of men taking childcare leave has been updated to 100%

by 2025. In this way, Honda is working to realize a world where people can develop

their careers regardless of gender.

Honda also supports the initiative advocated by the Japan Federation of

Economic Organizations (Keidanren) to raise the ratio of women occupying executive

positions to 30% by 2030.

1. Period of plan

Five years from April 1, 2021 to March 31, 2026

2. Issues at Honda

(1) Low percentage of women in management

(2) Although the rate of competition for employment is equal among men and women,

there are fewer female associates.

(3) Not many male associates take part in child care.

3. Targets

(1) Triple and quadruple the number of women holding management positions by 2025

and 2030, respectively, compared with FY2021

(2) Increase the ratio of new recruits who are women to at least 20% by 2025

(3) Achieve the percentage of men taking child care leave to 100% by 2025

4. Details of initiatives and period of implementation

<Initiative 1> Continue to foster awareness of the need to embrace diversity

� Continuously disseminate information from top management (January 2015~)

<Initiative 2> Nurture female associates and accelerate their utilization

� Enhance career development support by supervisors based on a career development

plan (April 2015~)

� Continue to conduct interviews regarding career path through career advisors (October

2015~)

� Continue to provide seminars on work-life balance during child-rearing years (August

2017~)

� Increase company nurseries; establish an environment to support associates undergoing

fertility treatment, including special leave systems (April 2017~)

<Initiative 3> Continue to strengthen the employment of women

� Continue to conduct focused publicity for female science and engineering students

(March 2015~)

� Continue to participate in events promoting selection in science and engineering for high

school students (March 2015~)

� Secure and increase points of contact with and webinars for female associates (March

2016~)

<Initiative 4> Promote engagement of male associates in childcare

� Revise Honda’s systems related to child care (April 2022~)

� Initiatives to communicate and instill the idea of men taking part in child care and

increase the use of relevant systems (October 2021~)

Honda’s Action Plan

Human Resources Initiatives

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Quality

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Human Resources

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Basic Approach

��

64

Global Management

��

65

Human Resources

Initiatives

��

67

Supply Chain

��

87

Social Contribution

Activities

��

103

404-2, 405-1

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Honda’s

Sustainability

2

Environment

3

Governance

5

Performance

Data

6

Data

7

Social

4

Initiatives for Expanding Women’s Participation

In order to accelerate the expansion of women’s participation, Honda has been

promoting initiatives under three pillars: “Build awareness and foster an appropriate

work climate,” “Support career building” and “Create an appropriate environment

and systems” since 2015. As an example of an external evaluation, Honda received

“L-boshi” certiﬁcation*

1

from the Ministry of Health, Labor and Welfare as a female-

friendly company in August 2018.

From 2019 to 2021, Honda focused on enhancing systems to help associates

balance work and child/nursing care. This effort was geared to promote the

realization of diverse workstyles that enable individual associates to yield their

maximum performance regardless of their circumstances. The Company also

initiated an effort to foster a corporate culture that encourages male associates to

become more involved in childcare.

From FY2023, since the system of career development support for female

associates has taken root, the Company integrated it into the company-wide

autonomous career development policy and strengthened its efforts by expanding

the scope of career interviewing and career training to all employees, including male

associates. In addition, Honda is working to address women’s speciﬁc health issues

in order to create an environment in which female associates can develop their own

careers, take on new challenges, and maximize their abilities.

Initiatives for LGBT Associates

With the aim of eliminating discrimination in terms of gender identity and sexual

orientation and realizing workforce diversiﬁcation, Honda has been working to create

a corporate culture and environment that naturally accepts LGBT since 2019. In

order to cultivate a culture to understand and accept diversity, Honda held a seminar

for members of company management in 2019 and provided an e-learning program

to associates in management positions in 2020. In 2021, Honda extended the target

of the program to general associates as well as held an “ally*

2

” seminar, which was

solicited from the public, for associates to gain basic knowledge required as a

supporter and show voluntary and proactive action.

In the area of personnel and welfare systems, Honda is treating associates’

same-sex partners as spouses and has established an LGBT counseling hotline. By

doing so, the Company has created appropriate systems and work environment,

which eliminate discrimination and provide comfort and motivation. Additionally, as

part of promotion of corporate activities to facilitate society’s understanding of LGBT,

Honda is supporting LGBT-related and other events. The Company has supported

Business for Marriage Equality, a campaign to make visible companies that support

marriage equality (legalization of same-sex marriage), since September 2021.

As a result of these efforts, Honda has received the highest Gold rating in the

PRIDE Index, which was created by the voluntary organization “work with Pride” to

evaluate companies’ efforts to create an LGBT-friendly workplace in Japan, for three

consecutive years since 2020.

Ratio of women in management positions in the Honda workplace in Japan

p. 144

Base salary and ratio of total compensation for males and females in Japan

p. 144

Major Initiatives for Expanding Women’s Participation (from 2015)

p. 145

Percentage of women in the Honda workplace: FY2023

p. 144

*1 A certiﬁcation program under the Act

on Promotion of Women’s Participation

and Advancement in the Workplace.

Among companies which have created

and submitted an action plan, the

Minister of Health, Labor and Welfare

certiﬁes those showing excellent

progress in implementing initiatives for

increasing women’s participation.

*2 Associates who have basic knowledge

of LGBT issues, personally regard

LGBT issues and think and act as

supporters on their own accord

Initiative LGBT ally seminar

Aim

Provide an opportunity to acquire knowledge as an ally (supporter) and to act

voluntarily

Target Associates in management positions / general associates

Number of

participants

Total of about 520 in the seminars conducted annually from 2021

(3 times in total)

Duration 1.5 hours

Initiatives for LGBT Associates

Human Resources Initiatives

4 Social

Safety

��

33

Quality

��

47

Human Resources

��

63

Basic Approach

��

64

Global Management

��

65

Human Resources

Initiatives

��

67

Supply Chain

��

87

Social Contribution

Activities

��

103

404-2, 405-1

74

Honda ESG Data Book

2023

Contents Editorial Policy

1

Honda’s

Sustainability

2

Environment

3

Governance

5

Performance

Data

6

Data

7

Social

4

Increasing Opportunities for Experienced Associates to

Expand Their Roles

In order for Honda to maximize its comprehensive corporate strength toward the

realization of the 2030 Vision, each associate needs to adapt to a change in his or

her work resulting from the changes in company operations. Honda has prepared a

training program of autonomous career development measures for all associates

starting in 2021. The program offers an opportunity for experienced associates who

have supported Honda’s growth to date to consider autonomous career

development focused on individuals.

In terms of the creation of necessary systems, Honda introduced a ﬂexible

retirement system in April 2017 to allow associates to choose when to retire (up to

the age of 65) according to their plan in order to provide a more suitable working

environment for people aged 60 and over.

With the aim of responding to changes in the working environment and more

diverse senses of value, Honda implemented a career change support system and a

system of shorter workweek and shorter working hours in April 2021 for associates

aged between 55 and 58. In step with the times, the Company thereby supports

associates’ new challenges for demonstrating their strengths in new ﬁelds and for

following their own lifestyles.

Employment of People with Disabilities

Honda actively provides jobs to people with disabilities at its business sites in

compliance with laws in each country where it does business.

In Japan, based on the idea of normalization, Honda has been a pioneer in

society’s efforts in promoting the employment of people with disabilities.

Honda seeks to enable individual associates, regardless of their disability, to

make the most of their talents and contribute to society through their work. To this

end, the Company is improving the workplace environment so that people with

disabilities can work alongside able-bodied people, while taking into consideration

each person’s disability status.

Honda also established three afﬁliates in Japan to empower and provide

employment opportunities to people with disabilities: Honda Sun Co., Ltd. in 1981,

Kibounosato Honda Co., Ltd. in 1985 and Honda R&D Sun Co., Ltd. in 1992

(merged with Honda Sun Co., Ltd. on April 1, 2021).

Employment of individuals with disabilities at Honda Group companies in Japan

in FY2023 stands at 2.35%, or 1,005 individuals, which is above the legally

mandated level of 2.3%.

Number of associates with disabilities and percentage of employment

of individuals with disabilities in Japan

p. 144

Initiative Training for experienced associates Career training (Meister Class)

Aim

Consider what they want to

accomplish for a fulﬁlling life, both

ofﬁcially and privately, and foster a

willingness to take steps toward further

personal growth

Provide an opportunity for each

individual to face themselves and

envision what they want to be in the

future

Target

Associates in management positions /

general associates aged 50 to 64

Associates in management positions /

general associates aged 50 to 64

Number of

participants

Total of about 2,170 from Dec. 2021 to

Jun. 2022

Total of about 1,360 from Aug. 2022

Duration 7 hours 7 hours

Overview of career training for experienced associates

Human Resources Initiatives

4 Social

Safety

��

33

Quality

��

47

Human Resources

��

63

Basic Approach

��

64

Global Management

��

65

Human Resources

Initiatives

��

67

Supply Chain

��

87

Social Contribution

Activities

��

103

404-2, 405-1

75

Honda ESG Data Book

2023

Contents Editorial Policy

1

Honda’s

Sustainability

2

Environment

3

Governance

5

Performance

Data

6

Data

7

Social

4

Advancement of Diversiﬁcation in Employment

Honda will strive to raise the total strength of its global workforce by proactively hiring

human resources with diverse backgrounds and enabling these diverse human

resources to fully demonstrate their abilities.

The main initiatives undertaken in Japan are as follows.

Employment of women

With the goal of increasing the ratio of new recruits who are women to at least

20% by 2025, Honda is strengthening initiatives such as participating in and

holding industry and company information sessions especially targeting female

students majoring in math and science. The percentage of women among new

graduates hired in FY2023 was approximately 19.5%.

Mid-career employment

Amid major changes in the business environment, Honda is strengthening and

expanding the employment of work-ready, mid-career workers. In FY2023,

mid-career associates accounted for approximately 46% of the total number of

new hires.

Moreover, mid-career associates constituted roughly 28% of new managers

appointed in FY2023 and play active roles as core human resources after joining

the Company.

Employment of people with disabilities

Honda proactively hires people with disabilities not only at afﬁliates but also at each

business site and promotes the creation of a comfortable working environment.

Global hires

Honda has been recruiting foreign exchange students studying at universities and

graduate schools in Japan and started a Global Employment Program to hire

human resources directly from overseas labor markets.

Helping Associates Balance the Demands of Work,

Parenting, Nursing Care and Medical Treatment

In Japan’s increasingly aging society with a declining birthrate, establishing an

environment where people can balance work, parenting, nursing care and medical

treatment is a social issue. Under such circumstances, Honda works actively to

provide programs that help associates balance the demands of work, parenting,

nursing care and disease or fertility treatment, and to gain an understanding of these

programs by sending information by means of guidebooks and the corporate

intranet.

In April 2014, Honda introduced a Selection-based Welfare Program (Cafeteria

Plan) giving associates the options of support for nursing care, as well as life events

such as childbirth and child care, including babysitter agent services and child-care

items rental.

As a result of these initiatives, Honda has been certiﬁed as a company that

supports child-rearing by the Japanese Minister of Health, Labor and Welfare. Honda

has been implementing other initiatives as well to meet diverse needs of individual

associates. Speciﬁcally, the Company introduced a system of transfer and a system of

leave in April 2018 for associates to accompany their spouses being transferred. In

April 2019, the Company also extended the scope of its existing system of short

working hours, remote work system and half-day paid leave system. Beginning from

April 2020, Honda introduced a system of short-term leave for disease and fertility

treatment and a system of long-term leave for fertility treatment. In addition, the

Company has introduced postpartum partner leave starting in April 2022 and childbirth

leave starting in October 2022 to encourage associates to participate in childcare as

partners.

Honda will continue to establish systems and an environment to accelerate

initiatives related to diversity ( p. 71) and enable both varied lifestyles and careers

desired by individual associates.

Number of associates who utilize child/nursing care support in Japan

p. 144

Number of global hires

p. 144

Reinstatement rate (%) in Japan after taking child care leave

p. 144

Human Resources Initiatives

4 Social

Safety

��

33

Quality

��

47

Human Resources

��

63

Basic Approach

��

64

Global Management

��

65

Human Resources

Initiatives

��

67

Supply Chain

��

87

Social Contribution

Activities

��

103

401-3, 404-2, 405-1

76

Honda ESG Data Book

2023

Contents Editorial Policy

1

Honda’s

Sustainability

2

Environment

3

Governance

5

Performance

Data

6

Data

7

Social

4

External Evaluations of Honda’s Initiatives for Promoting

Diversity

Direction of Future Initiatives

In addition to recruiting diverse human resources, Honda views the acceptance

of diversity as an integral element of its philosophy on diversity. Honda believes

that respect of the individual will help foster individuality and draw out each

person’s unique abilities, thus increasing motivation at work.

Honda will maintain its ongoing initiatives to expand the participation of

women. At the same time, it will extend their scope to all associates to further

advance and expand diversity in the true sense of the word. As the world enters

an era of great uncertainty and an era of the 100-year life, Honda is reaching the

second foundation phase and it is becoming more important that each and every

associate will autonomously explore his or her own career, exercise

independence and achieve personal growth. By going ahead with the

establishment of a system to support associates’ voluntary career development,

Honda will strive to provide greater motivation at work for associates and

strengthen both individual and organizational competitiveness.

PRIDE Index 2022

In November 2022, Honda received the highest Gold

rating in the PRIDE Index – an index that evaluates

companies’ efforts to create workplaces that are

friendly to sexual minority groups, including LGBTQ.

Selected for the New Diversity Management Selection 100

In March 2019, Honda was commended by the

Minister of Economy, Trade and Industry for its

diversity management which leads to value creation by

leveraging the abilities of diverse human resources.

“L-boshi” Certiﬁcation

In August 2018, Honda received the ‘L-boshi’

certiﬁcation from the Japanese Minister of Health, Labor

and Welfare, which recognizes the company as

promoting female participation.

“Kurumin” Certiﬁcation

In July 2012, Honda received the ‘Kurumin’ certiﬁcation

from the Japanese Minister of Health, Labor and

Welfare, which recognizes the company as supporting

child-rearing.

Human Resources Initiatives

4 Social

Safety

��

33

Quality

��

47

Human Resources

��

63

Basic Approach

��

64

Global Management

��

65

Human Resources

Initiatives

��

67

Supply Chain

��

87

Social Contribution

Activities

��

103

404-2, 405-1

77

Honda ESG Data Book

2023

Contents Editorial Policy

1

Honda’s

Sustainability

2

Environment

3

Governance

5

Performance

Data

6

Data

7

Social

4

Building Motivating Work Environments

Realizing Work Styles That Pursue the Quality of Output and

More Effective Use of Time

As expressed in the saying “Work hard and play hard,” Honda has been striving to

increase the density of working hours through new ideas and ingenuity and generate

more time to enjoy life. Toward this goal, proactive efforts have been made to build

work environments that enhance associates’ motivation at work. These efforts date

back more than 50 years to the 1970s and include the introduction of shorter work

hours and implementation of an initiative jointly promoted by labor and management

to encourage associates to use their allotted vacation time in full*.

From the viewpoint of work style reform, Honda is further evolving its initiatives

to create a culture and environment that enables diverse human resources to

demonstrate their abilities to the fullest in order to pursue the quality of output and

make the most effective use of limited time. While implementing appropriate time

management, Honda has been making efforts to encourage ﬂexible work styles for

increasing output within a limited amount of time and to raise awareness of both

management and associates for streamlining work and promoting the delegation of

authority. Honda has also been engaging in additional year-round activities geared

toward improving productivity.

In addition, Honda has eliminated core hours at the time of arrival at work,

allowing for a more ﬂexible work style regardless of where associates work.

In pursuit of maximum efﬁciency and results for both the individual and the

organization, the Company’s basic policy is to have associates come to the ofﬁce and

work face-to-face (in real life). At the same time, however, the Company allows for the

effective use of remote work system based on management judgment, taking into

account the job description, experience, and work ﬂow of individual associates. In

particular, regarding remote work for reasons such as childcare or nursing care, the

Company gives consideration to the extent possible and operates in a ﬂexible manner.

As a result, total annual working hours averaged 1,963 per associate in FY2023,

and associates averaged 20.1 paid vacation days.

Furthermore, with the aim of accelerating inter-organizational cooperation and

individual independence, the rules of the ﬂextime system have been standardized

throughout the Company since April 2023. Honda is creating an environment that

encourages collaboration across organizational boundaries and helps associates

with a strong will to demonstrate their abilities through more ﬂexible work styles, so

that each and every associate can feel job satisfaction.

Counseling Hotlines for Associates

Honda supports associates by operating a variety of counseling hotlines as a way to

build a healthier work environment.

Hotlines Description

Counseling hotlines

dedicated to

balancing work,

parenting, family life

responsibilities and

medical treatment

Honda operates a counseling hotline at each worksite’s human

resources and general affairs department to accommodate counseling

requests from associates striving to balance work and family

responsibilities, and to promote awareness and utilization of the

Company’s support programs. Each hotline is staffed by a pair of male

and female counselors, who ﬁeld counseling requests from associates

themselves and from their supervisors.

Harassment

counseling hotline

Honda operates a harassment counseling hotline for all associates in

order to prevent any harassment in the workplace and to facilitate the

rapid and appropriate resolution of incidents.

LGBT counseling

hotline

Honda operates a hotline for LGBT associates to accommodate

requests for advice on their worries and problems and inquiries about

support programs. The hotline also provides advice to other parties

concerned, who are unsure of how to respond to LGBT associates,

and works to prevent negative consequences of unintended outing.

Life planning seminar

hotline

Honda offers life planning seminars to give associates an opportunity to

start thinking about their life purpose, health and economic planning so

that they will be able to lead a rich and fulﬁlling life. Seminars are also

open to associates’ spouses. In-house seminar instructors and a

secretariat offer one-on-one counseling for associates who have

participated in the seminar.

* An initiative to prevent vacation days

from being lost when the number of

annual paid vacation days that can be

carried over to the next year is exceeded

Human Resources Initiatives

Total working hours per associate and average paid vacation days taken in Japan

p. 146

Examples of counseling hotlines in Japan

4 Social

Safety

��

33

Quality

��

47

Human Resources

��

63

Basic Approach

��

64

Global Management

��

65

Human Resources

Initiatives

��

67

Supply Chain

��

87

Social Contribution

Activities

��

103

401-2, 404-2

78

Honda ESG Data Book

2023

Contents Editorial Policy

1

Honda’s

Sustainability

2

Environment

3

Governance

5

Performance

Data

6

Data

7

Social

4

Evaluation and Treatment

Personnel Evaluation System

In accordance with Respecting Initiative, Ensuring Fairness and Encouraging Mutual

Trust based on the Three Principles of Personnel Management, Honda has

introduced human resource evaluation programs that are tailored to the speciﬁc

regional characteristics in each region of the world.

For example, in Japan, Honda places emphasis on two-way communication

with supervisors in associate development and evaluation, and all associates have at

least ﬁve interviews with their supervisors each year. During the ﬁrst interview in April,

which is the beginning of the ﬁscal year, associates come out with their desired

career and future vision, and how to realize that aspiration through their supervisor’s

advice. They then work out their individual role and action targets based on the

organization’s business goals for the ﬁscal year in question.

At biannual interviews, associates themselves look back on their performance

during the preceding six months and report to supervisors. Feedback interviews are

then conducted, in which supervisors evaluate associate performance and initiatives

and feed back each associate’s strengths and weaknesses. Additionally, by

facilitating a discussion of subjects such as future objectives and career directions,

the interviews pave the way for associates’ skill development and raising motivation.

Percentage of associates going through the evaluation programs

p. 146

Compensation and Incentives

Based on the Three Principles of Personnel Management, Honda gives its associates

equal opportunities to make the most of their individual potential and carefully

evaluate their abilities and accomplishments at business sites regardless of personal

factors. Honda’s compensation and evaluation system is built in line with the above

approach in consideration of the needs and conditions of each region.

Honda in Japan has adopted a compensation and evaluation system in which

performance of general associates is evaluated in two stages: development of

abilities and demonstration of abilities. In the former stage, Honda places emphasis

more on how associates’ abilities evolve, whereas associates’ demonstration of

abilities and achievement are focused on in the latter stage. An annual salary system

is applied to compensation for associates in management positions or higher. The

higher their positions are, the more their accomplishments and company

performance are taken into consideration.

Percentage of performance-based remuneration in Japan

p. 146

Starting salary in Japan

p. 146

Human Resources Initiatives

4 Social

Safety

��

33

Quality

��

47

Human Resources

��

63

Basic Approach

��

64

Global Management

��

65

Human Resources

Initiatives

��

67

Supply Chain

��

87

Social Contribution

Activities

��

103

404-3

79

Honda ESG Data Book

2023

Contents Editorial Policy

1

Honda’s

Sustainability

2

Environment

3

Governance

5

Performance

Data

6

Data

7

Social

4

Establishing a Good Relationship with

Associates

Creating an Environment of Free and Open Dialogue

In accordance with Encouraging Mutual Trust based on the Three Principles of

Personnel Management, Honda declares in the Associate Relations Policies that

associates and the Company will respect each other’s views and endeavor to

promote mutual understanding. Maintaining a relationship of mutual trust, associates

and the Company will make every effort to engage in sincere discussions about any

issues that might arise or exist. In line with the policies, Honda strives to maintain a

good relationship and resolve issues that arise through dialogues with its associates.

In addition, an appropriate notiﬁcation period is set in advance in case of the

implementation of important corporate measures that have a marked impact on

associates.

Measurement of Associate Engagement

Honda measures associate engagement in all regions to obtain associate feedback

for building a healthier and more comfortable work environment.

The measurement is conducted based on the common criteria within each

region, with the target of achieving a “very good” engagement level of associates

working at Honda in each region.

The measurement results are used as basic data in activities to create a work

environment in which each associate shines and demonstrates individuality.

In Japan, Honda has been monitoring changes in associates’ engagement level

every year since 2018. The degree of attainment of target values, changes over time,

and comparison results with other companies are fed back to each workplace.

Managers at the section manager level and above at each workplace use the

detailed results by department with the aim of creating an environment that provides

greater motivation at work for diverse human resources, and work to understand the

actual situation in the workplace, provide feedback to members, and engage in free

and vigorous dialogue for workplace development.

402-1

Human Resources Initiatives

Associate engagement in Japan

p. 146

4 Social

Safety

��

33

Quality

��

47

Human Resources

��

63

Basic Approach

��

64

Global Management

��

65

Human Resources

Initiatives

��

67

Supply Chain

��

87

Social Contribution

Activities

��

103

80

Honda ESG Data Book

2023

Contents Editorial Policy

1

Honda’s

Sustainability

2

Environment

3

Governance

5

Performance

Data

6

Data

7

Social

4

Occupational Safety and Health

Honda’s efforts to build a safe and secure work environment have their origin in the

Company Principle formulated in 1956.

They are also based on the Fundamental Beliefs of “Respect for the Individual”

and “The Three Joys.”

Under the safety principle of “no safety, no production,” which has been passed

on since its founding, Honda seeks to realize a work environment that brings the joy

that all people can work with a true sense of security.

Based on this principle, Group companies in all parts of the world have

established basic policies for occupational safety and health based on respective

regional needs and conditions. To eliminate serious industrial accidents in Japan and

overseas, Group companies also promote activities aimed at preventing industrial

accidents and their recurrence, as well as ensuring the health of associates.

In December 2022, the Company also created a mid- to long-term “Safety and

Health Policy,” which outlines the safety and health activities to be practiced by

associates around the world. Based on this policy, Honda strives to create a safety

and health workplace, while each associate works to maintain such a workplace and

to prevent and minimize accidents.

Honda’s safety principle of “no safety, no production,” is based on the concept of how

important and precious it is for each and every associate to be able to work safely and

to the best of their ability in both physical and mental health, and the Company will strive

to be progressive in its actions to achieve a safe workplace.

Safety and Health Principles

1

. We will perform the risk evaluation of work related business operations, and

invest resources as much as necessary to prevent occupational accidents.

2

. We will disseminate the safety and health policy, and all associates will perform

safety and secure workplace by implementing safety training and safety activities.

3

. We will observe the related regulations and internal standards and work on all

aspects of accident prevention and healthy maintenance promotion.

4

. We will implement and operate this policy and the safety and health management

manual accordingly and perform the improvement of safety awareness for all

associates.

5

. We will support mental and physical health maintenance promotion positively and

practice health management.

6

. We will have the awareness and responsibilities as associates of Honda and

eradicate

4

pernicious traffic violations and positively act on

Zero traffic

accidents

.

Safety and Health Activities

Aiming for a safe, healthy, and lively workplace, the Company will conduct safety and

health management activities based on the company-wide safety policy with the aim of

fostering and spreading a culture of safety among all associates: from “safety that is

given to us” to “safety that we protect ourselves and safety that we create for ourselves.”

Safety and Health Policy

Human Resources Initiatives

4 Social

Safety

��

33

Quality

��

47

Human Resources

��

63

Basic Approach

��

64

Global Management

��

65

Human Resources

Initiatives

��

67

Supply Chain

��

87

Social Contribution

Activities

��

103

403-7

81

Honda ESG Data Book

2023

Contents Editorial Policy

1

Honda’s

Sustainability

2

Environment

3

Governance

5

Performance

Data

6

Data

7

Social

4

Safety and Health Governance Structure

Safety Initiatives

Domestic and Overseas Workplaces

To increase the effectiveness of safety management at each workplace in Japan and

in each overseas region, the Regional Operations take the lead in carrying out

proactive activities by focusing on the implementation of an occupational safety and

health management system, diffusion and execution of risk assessment and the

establishment of explosion and ﬁre prevention measures.

Honda also conducts occupational safety and health audits and reviews based

on a plan to share recognition of safety and health management. At the same time,

the Company strives to improve the management system as well as to develop

human resources for safety control at each domestic workplace and in each

overseas region.

Collaboration with Domestic Related Group Companies

The Company has established a safety hotline between Honda and related group

companies and is working to prevent the recurrence and prevention of accidents

through speedy development in cooperation with each company and the exchange

of information that contributes to the improvement of safety and health activities.

Honda has established a Company-wide Safety and Health Committee chaired by

the vice president in 2022 to strengthen safety and health within the Honda Group by

providing company-wide policies and implementation instructions for horizontal

deployment regarding the occurrence of serious accidents, etc.

As for a workplace*

1

safety and health governance structure, Honda has

established a Safety and Health Committee, led by the Safety and Health

Management Division, to enforce safety and health governance. Issues are shared

and discussed jointly among labor and management for establishing a system to

realize a safe and comfortable work environment.

Additionally, the Company-wide Safety and Health Audit Committee, chaired

by the vice-chairman of the Company-wide Safety and Health Committee,

conducts occupational safety and health audits to check on the operation of an

Occupational Safety and Health Management System (OSHMS) and progress in

implementing compliance-related matters, thereby ensuring a high level of safety

and health standards throughout the Company.

*1 In accordance with the Industrial Safety

and Health Act, each organization is

described as a “workplace” in this part.

*2 Refers to working environment

management, work management and

health management and constitutes

the fundamental approach to work and

health management.

Representative of

work site

Members

(Article 19 of the Industrial

Safety and Health Act)

Labor Union

(Branch)

Company-wide

committee

Representative of

each workplace

Labor Union

(Headquarters)

Workplace Safety and

Health Committee

Company-wide

Safety and Health

Committee

Executive Council

Committee system diagram

Human Resources Initiatives

Creating working environment criteria

Honda stipulates workshop environmental criteria in its Comfortable Workplace

Guidelines and Hazardous Operations Management Regulations. In accordance with

the three basic items of work and health management*

2

, the Company performs

periodic inspections and improvements to appropriately maintain and manage its

working environments.

4 Social

Safety

��

33

Quality

��

47

Human Resources

��

63

Basic Approach

��

64

Global Management

��

65

Human Resources

Initiatives

��

67

Supply Chain

��

87

Social Contribution

Activities

��

103

403-1, 403-2, 403-4, 403-7, 403-8

82

Honda ESG Data Book

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Contents Editorial Policy

1

Honda’s

Sustainability

2

Environment

3

Governance

5

Performance

Data

6

Data

7

Social

4

2021*

2

2022 2023

144

10

21

9

0

284

101

33

(persons)

0

100

200

300

(FY)

Safety and health education and training

The department, responsible for supervising company-wide safety and health,

plays a key role in providing training for safety engineers in machinery and

equipment (Safety Assessor training*

1

) and other training programs aimed at

developing safety and health experts, and the number of accidents and ﬁres

caused by machinery and equipment has steadily been reduced.

In addition, Honda develops managers and auditors at all levels through

Occupational Safety and Health Management System training.

Each workplace also provides various training programs for its associates.

Diagram of Honda’s health and safety training scheme (production activities)

Manager

(department

manager level)

Unit leader

(subsection

manager)

Team leader

(team

manager level)

Assistant

team leader

(deputy team

manager level)

General

Legally mandated general

education

Rank-speciﬁc education Education for appointed personnel

Equipment safety education

for supervisors

Education for safety managers

Safety education for department

managers

Training for personnel newly appointed

to management positions

Safety training for unit leaders

Safety education for assistant team

leaders

Follow-up education for forepersons

Education for experienced operators

Follow up education

Education for new employees

Legally required education for

forepersons

Legally

required

special

education

KY

activities

Education on

assessment of

manufacturer’s

risks

Education

for risk

assessment

instructors

Equipment

safety

basic

lectures

Equipment

safety

(intermediate

level)

Equipment

safety

(assessors)

Equipment

safety

(sub-

assessors)

Education

for

operations

chiefs

OSHMS

education

*1 Assessor : A person who makes a

judgement or evaluation.

*2 In 2020, there was an impact of course

cancellation due to an increase in the

number of COVID-19 infected patients

Training situation for safety and health (accumulated number of participants)

Legend

Number of successful applicants for Safety Assessor (SA)

Number of successful applicants for Safety Sub-Assessor (SSA)

Number of participants for Occupational Safety and Health

Management System (OSHMS)

Human Resources Initiatives

Lost time injury frequency rate (LTIFR)

p. 146

4 Social

Safety

��

33

Quality

��

47

Human Resources

��

63

Basic Approach

��

64

Global Management

��

65

Human Resources

Initiatives

��

67

Supply Chain

��

87

Social Contribution

Activities

��

103

403-2, 403-5

83

Honda ESG Data Book

2023

Contents Editorial Policy

1

Honda’s

Sustainability

2

Environment

3

Governance

5

Performance

Data

6

Data

7

Social

4

Initiatives for Health and Productivity Management

Honda hopes that all of its associates remain healthy in the same way we strive for

safety.

Honda aims to become a company in which each associate works safely and

energetically while remaining healthy both physically and mentally as they make their

own efforts to maintain and promote their health for their own future in a comfortable

work environment.

Toward achieving this goal, Honda has formulated a Health Statement and set

three pillars*

1

and ﬁve matters for better health management *

2

, which represent its

health and productivity management policies. Under the top message “Keep taking

up a challenge in maintaining and improving health, as strengths of individuals lie in

being healthy,” Honda is promoting health and productivity management in which

everyone voluntarily strives to maintain and improve health.

Honda Health Management Strategy Map

Company-wide and

environment

WorkplaceIndividual

Decrease in the number of

associates without

lifestyle-related diseases

Increase in the number of

associates practicing healthy

behaviors (better lifestyle)

Increase in the number of

associates with high subjective

health awareness

System utilization rate

Healthy food consumption rate

Percentage of health checkups

received

Number of measures held and

participation rate

Number of site accesses

Number of associates working

long hours

Average working hours

Percentage of patients receiving

a full medical examination

Number of health guidance provided

Percentage of health guidance provided

Enhanced health beneﬁts and

environment (Wel Fit, no smoking

on premises, healthy diet)

Promoting the use of the Health

Up Web site for Lifelong Health

Measures to raise health

awareness in the workplace

(thorough post-measures,

two-way health measures)

Measures against long working

hours

Education and seminars on mental

and physical health

(self-care, lifestyle)

Enhancement of mental health

counseling and health

guidance by professionals

Increased engagement

Reduced presenteeism*

3

Reduced absenteeism*

4

Corporate

culture

Job

satisfaction

Growth

opportunity

Comfortable

working

environment

Relationship of

trust

(supervisors, etc.)

Realize a company where each and every associate

can work to the fullest in a healthy and safe manner

Health management initiatives

Indicators regarding the status

of measures taken

Indicators of associate

awareness and behavior change

Health-related ﬁnal target

indicators

Health management investment effectiveness indicators

Health

management

A00

Management

issues to be

solved through

health

management

Implement human resource policies and foster an

organizational culture that enables diverse associates to

feel fulﬁlled in their jobs and lives

*1 Three pillars:

(1) Promote more educational activities on

how each individual can work toward

becoming healthier and staying

healthy; Provide more feedback on

results of the periodic health checkups

and physical ﬁtness tests

(2) Conduct activities involving the whole

workplace for promoting more health

awareness

(3) Promote activities for continuously

improving the workplace environment

*2 Five matters for better health

management:

(1) Enough good quality sleep

(2) Nutritionally well-balanced meals

(3) Habit of regular physical exercise

(4) No smoking

(5) Only moderate drinking

*3 Presenteeism: condition in which the

employee is attending work, but

productivity is declining due to health

issues

*4 Absenteeism: absence from work (sick

leave) due to health problems

Human Resources Initiatives

4 Social

Safety

��

33

Quality

��

47

Human Resources

��

63

Basic Approach

��

64

Global Management

��

65

Human Resources

Initiatives

��

67

Supply Chain

��

87

Social Contribution

Activities

��

103

403-3, 403-6

84

Honda ESG Data Book

2023

Contents Editorial Policy

1

Honda’s

Sustainability

2

Environment

3

Governance

5

Performance

Data

6

Data

7

Social

4

Major Activities under the Three Pillars

(1) Promote more educational activities on how each individual can work

toward becoming healthier and staying healthy; Provide more feedback

on results of the periodic health checkups and physical ﬁtness tests

For realizing lifelong health, Honda strives to create an appropriate environment for

carrying out enlightenment activities and making health promotion efforts. Such

efforts include providing monthly newsletters on topics concerning the Five Matters

for Better Health Management and operating a specialized website on health-related

information.

As another example, Honda promotes the establishment of a more favorable

lifestyle by educating people on how to get a good quality sleep and how to deal

with the effects of alcohol.

(2) Conduct activities involving the whole workplace for promoting more

health awareness

Honda encourages more proactive health promotion efforts at the workplace by

aggregating and sharing information on the status of initiatives related to the Five

Matters for Better Health Management by workplace or department.

(3) Promote activities for continuously improving the workplace environment

To encourage its associates to take well-balanced meals, Honda offers daily healthy

menus that give appropriate consideration to the caloric intake, salt content and

vegetable intake at its company cafeterias. On the monthly “Healthy Food Day,”

Honda provides health-themed dishes by making full use of the characteristics of the

ingredients in all menus.

To make physical exercise a habit, the Honda Health Insurance Association

allots points based on daily pedometer records. Honda also encourages exercise by

providing ﬁnancial support to associates using ﬁtness and sports facilities,

participating in sporting events and purchasing sporting goods as part of its welfare

program.

In addition, the Company is providing seminars to assist smokers in quitting

smoking.

Measures to Promote Mental Health

In 2009, Honda announced a Mental Health Policy and has since been working on

both creating vitality in associates and in the workplace and providing problem-

solving support in an organized, systematic and ongoing manner.

Activity structure

To implement mental health activities, Honda has established a companywide mental

health promotion team specialized in activity planning and management. Each of

Honda’s business sites has also established its own workplace mental health

promotion team.

Honda’s major mental health initiatives to promote the mental wellbeing of its

associates include “preventative education,” “improving working environments,”

“checking stress levels,” “enhancing counseling programs” and “support for those

returning to work after taking time off.” The Company also distributes leaﬂets and

pamphlets to associates aimed at facilitating an understanding of mental health care.

Basic approach

Based on its fundamental belief of Respect for the Individual, Honda embraces individual

diversity and values communication, and by doing so, will make its utmost efforts to

maintain well-being so that all associates dedicate themselves to their jobs with

enthusiasm while drawing energy from and taking pride in their work.

Honda-Wide Mental Health Policy

Human Resources Initiatives

4 Social

Safety

��

33

Quality

��

47

Human Resources

��

63

Basic Approach

��

64

Global Management

��

65

Human Resources

Initiatives

��

67

Supply Chain

��

87

Social Contribution

Activities

��

103

403-3, 403-6

85

Honda ESG Data Book

2023

Contents Editorial Policy

1

Honda’s

Sustainability

2

Environment

3

Governance

5

Performance

Data

6

Data

7

Social

4

External Evaluations

Recognized under the 2023 Certiﬁed Health & Productivity Management

Organizations Recognition Program

Following the previous year, Honda was again recognized in the large enterprise

category of the 2023 Certiﬁed Health & Productivity Management Organization

Recognition Program. Jointly promoted by Japan’s Ministry of Economy, Trade and

Industry and the Nippon Kenko Kaigi, the program recognizes companies that

consider health management of employees from a corporate management viewpoint

and strategically promote related efforts.

Human Resources Initiatives

4 Social

Safety

��

33

Quality

��

47

Human Resources

��

63

Basic Approach

��

64

Global Management

��

65

Human Resources

Initiatives

��

67

Supply Chain

��

87

Social Contribution

Activities

��

103

403-6

86

Honda ESG Data Book

2023

Contents Editorial Policy

1

Honda’s

Sustainability

2

Environment

3

Governance

5

Performance

Data

6

Data

7

Social

4

Material issues

Responding to climate change and

energy issues

Deploying total supply chain

sustainability initiatives

4

Social Supply Chain

87

Honda ESG Data Book

2023

Basic Approach

In order to provide customers with a timely, stable supply of better products and

services, it is necessary to put signiﬁcant effort into developing and optimizing supply

chains with suppliers around the world while also taking into account environmental

and human rights issues.

Companies within the automobile industry, which is a broad-based industry

supported by many suppliers, must pursue the reduction of not only their own

environmental impacts but also those of suppliers throughout their entire supply

chain.

Additionally, as awareness of compliance and human rights issues grows

worldwide, companies are expected to verify working conditions and legal

compliance not only for themselves but also for their suppliers, as well as make

efforts to take corrective action if required.

Honda has issued the “Honda Supplier Sustainability Guidelines” to share its

approach to sustainability with suppliers worldwide and to promote it in conjunction

with them.

Based on this guideline, Honda will actively promote sustainable initiatives at its

development and manufacturing facilities in cooperation with its suppliers. By doing

so, Honda is seeking to realize a supply chain where Honda co-exists and co-

prospers with local communities as a company society wants to exist.

Honda is striving to strengthen supply chain sustainability, mainly in the areas of

purchasing and logistics.

Additionally, as part of this ﬁscal year’s organizational restructuring, we

integrated the procurement and logistics areas and newly established the ’Global

Conference’ as a global meeting structure for the entire supply chain, which had

been focused on logistics as the ‘Global SCM Committee’ until last ﬁscal year.

This meeting body holds conferences in all regions with the following three main

objectives.

Discuss common themes in the 6 regions at appropriate timing and members

allocated to each theme

Directly discuss and resolve global issues originating from each region among top

executives in the supply chain purchasing area

Share issues that may become challenges in the future and discuss the direction of

responses

Strengthening Supply Chain Sustainability

Overview of supply chain

Effective utilization

of resources

through recycling

Components

Purchasing

Production

Logistics

Sales

Use

Disposal

Raw

materials

4 Social

Safety

��

33

Quality

��

47

Human Resources

��

63

Supply Chain

��

87

Basic Approach

��

88

Basic Approach to

Purchasing

��

89

Global Management of

Purchasing

��

91

Purchasing Initiatives

��

92

Basic Approach to

Logistics

��

97

Global Management of

Logistics

��

98

Logistics Initiatives

��

99

Joint Efforts with Industry

Groups and Suppliers

��

102

Social Contribution

Activities

��

103

2-6

88

Honda ESG Data Book

2023

Contents Editorial Policy

1

Honda’s

Sustainability

2

Environment

3

Governance

5

Performance

Data

6

Data

7

Social

4

Basic Approach to Purchasing

Purchasing Belief, the Three Purchasing

Principles, and Guiding the Code of Conduct

for Purchasing Associates

Purchasing Belief and Three Purchasing Principles

Purchasing Belief

We do fair and equitable business with transparency based on the

“Purchasing Belief” and the “Three Purchasing Principles.”

We sustain the procurement of good products at reasonable prices and

in a timely manner.

Positioning of Purchasing Belief, Three Purchasing Principles and Guiding the

Code of Conduct for Purchasing Associates

Honda Philosophy

Honda Corporate Governance

Honda Code of Conduct

Purchasing Belief, Three Purchasing

Principles and Guiding the Code of

Conduct for Purchasing Associates

Honda’s goal is to achieve a sustainable society across the supply chain. The

Company implements initiatives with consideration for the environment, safety,

human rights, compliance and social responsibility, among others, in partnership with

its suppliers worldwide. Based on the Honda Philosophy, the Company established

the Purchasing Belief and Three Purchasing Principles and engages in business that

is fair and equitable with transparency.

Honda has also compiled points that should be followed by each and every

associate engaging in purchasing activities as the Guiding the Code of Conduct for

Purchasing Associates. By following these Rules, the Company ensures trust both

internally and externally and builds sound relationships with suppliers.

4 Social

Safety

��

33

Quality

��

47

Human Resources

��

63

Supply Chain

��

87

Basic Approach

��

88

Basic Approach to

Purchasing

��

89

Global Management of

Purchasing

��

91

Purchasing Initiatives

��

92

Basic Approach to

Logistics

��

97

Global Management of

Logistics

��

98

Logistics Initiatives

��

99

Joint Efforts with Industry

Groups and Suppliers

��

102

Social Contribution

Activities

��

103

308-2, 411-1

Three Purchasing Principles

Fair and

open trade

We do business with

suppliers who can satisfy

the requirements of quality,

quantity, price and timing

and who can share the

concept of sustainability

with us, based on open

competition.

Equal

partnership

We conduct business on

an equal footing

regardless of the

business size of the

supplier or their

nationality and other

factors.

Respect for

suppliers

We respect suppliers’

management and

dignity.

89

Honda ESG Data Book

2023

Contents Editorial Policy

1

Honda’s

Sustainability

2

Environment

3

Governance

5

Performance

Data

6

Data

7

Social

4

In its global parts procurement activities, Honda has set forth its Sustainability Vision, which

aims to promote sustainability initiatives together with its suppliers around the world and to

realize a supply chain that can coexist and co-prosper with local communities.

Furthermore, based on the vision, the Company has issued the Honda Supplier

Sustainability Guidelines as a policy to share its approach to sustainability with its suppliers

around the world and to promote it together. (Please refer to the links on the right.)

Through the Guidelines, Honda seeks to prevent compliance violations and

other issues in advance, along with reducing its environmental impact.

If a supplier fails to follow the Guidelines, Honda immediately receives a report

from the supplier and works to prevent a recurrence by asking them to analyze the

cause and draw up a corrective action plan.

If the corrective action plan received from the supplier is determined to be

inappropriate, Honda considers its future business relations with them, taking into

account the social impact of the problem.

In addition, the Company is working to instill and promote the Guidelines

throughout the entire supply chain by performing checks on the status of suppliers’

related initiatives and utilizing sustainability-related check sheets for sub-tier suppliers.

When selecting suppliers for components and raw materials based on these

sustainability policies, Honda conﬁrms their initiatives on Quality, Cost, Delivery,

Development and Environment (QCDDE), human rights, labor, safety, compliance,

risk, protection of information and other aspects to determine the best and most

sustainable supplier.

Establishing a Hotline to Receive Suggestions and

Consultation Requests from Suppliers

Honda has established the Business Ethics Kaizen Proposal Line ( p. 125) to

accept suggestions and requests for consultation from all suppliers from a fair and

neutral standpoint.

Honda Supplier Sustainability Guidelines

https://global.honda/sustainability/cq_img/report/pdf/supply-chain/

supplier-sustainability-guidelines.pdf

Basic Approach to Purchasing

Engagement with Suppliers

Belief/Three

Principles

Environment

Established Purchasing Belief and Three

Purchasing Principles

Revised the Purchasing Belief and

the Three Purchasing Principles (’15)

Issued Honda Supplier CSR Guidelines (’10) Issued the Honda Supplier Sustainability Guidelines (’18)

Integrated CSR into Sustainability Guidelines and publicized

the guidelines globally

Issued Automotive Industry Guidelines to Enhance Sustainability

Performance in the Supply Chain (North America, ’14)

� Issued in other regions (’15)

Issued Honda Green Purchasing Guidelines (’01)

Revised (’11)

Expanded CO

2

reduction efforts throughout the life cycle

Revised (’18)

Added environmental initiatives as an evaluation category

� Revised (’13)

Added content on handling of conflict minerals

Guidelines

Sustainability

1960s 2000s 2010 2015

Strengthened QCDD

Launched full-scale

environmental initiatives

Strengthened overall sustainability

· Revised (’22)

Integrated into Honda Green Purchasing Guidelines

Changes in purchasing operations

4 Social

Safety

��

33

Quality

��

47

Human Resources

��

63

Supply Chain

��

87

Basic Approach

��

88

Basic Approach to

Purchasing

��

89

Global Management of

Purchasing

��

91

Purchasing Initiatives

��

92

Basic Approach to

Logistics

��

97

Global Management of

Logistics

��

98

Logistics Initiatives

��

99

Joint Efforts with Industry

Groups and Suppliers

��

102

Social Contribution

Activities

��

103

2-6, 308-1, 407-1, 408-1, 409-1, 411-1, 412-1, 412-2, 412-3, 414-1, 414-2

90

Honda ESG Data Book

2023

Contents Editorial Policy

1

Honda’s

Sustainability

2

Environment

3

Governance

5

Performance

Data

6

Data

7

Social

4

Global Management of Purchasing

Honda conducts business in six regions worldwide and has respectively established

purchasing functions. In line with Honda’s corporate philosophy of “building products

close to the customer,” each region is encouraged to source locally. The rate of local

procurement in the United States, Honda’s primary production base, reaches 80%

for major global models.

A department in Japan supervises the overall, global purchasing function,

provides coordination across regions and businesses, and formulates sustainability

policies and goals. In 2016, the Company established a department dedicated to

reinforcing and accelerating sustainability initiatives.

In addition, to discuss and examine the direction Honda should take globally

over the medium to long term, Honda holds periodic meetings with the management

teams of respective companies operating in each region and facilitates collaboration

with them.

The Environmental Purchasing Meeting was held from 2011 onwards and

sought to strengthen initiatives aiming for a low-carbon society across the entire

global supply chain. This meeting was composed of working-level staff from each

region. It discussed and coordinated policies and methods of reducing CO

2

together

with suppliers in each region worldwide. In FY2017, Honda added human rights and

compliance initiatives and transformed the meeting into the Sustainability Purchasing

Meeting.

Promotion Structure

South America 3%

Asia & Oceania

19%

Europe 1%

North America

32%

Japan

19%

China

25%

Regional distribution of purchasing volume (FY2023)

4 Social

Safety

��

33

Quality

��

47

Human Resources

��

63

Supply Chain

��

87

Basic Approach

��

88

Basic Approach to

Purchasing

��

89

Global Management of

Purchasing

��

91

Purchasing Initiatives

��

92

Basic Approach to

Logistics

��

97

Global Management of

Logistics

��

98

Logistics Initiatives

��

99

Joint Efforts with Industry

Groups and Suppliers

��

102

Social Contribution

Activities

��

103

2-6, 203-2, 204-1, 411-1

91

Honda ESG Data Book

2023

Contents Editorial Policy

1

Honda’s

Sustainability

2

Environment

3

Governance

5

Performance

Data

6

Data

7

Social

4

Purchasing Initiatives

Honda shares the Honda Supplier Sustainability Guidelines with its suppliers and

promotes activities to reduce environmental impact.

When launching new transactions, Honda shares the guidelines and the grand

design with all suppliers in each region, and with their consent, jointly works to realize

a low-carbon supply chain.

Initiatives to Achieve Carbon Neutrality

Honda strives to realize carbon neutrality (net zero CO

2

emissions) for all products

and corporate activities Honda is involved in by 2050.

In Japan, in October 2021, Honda asked its suppliers to consider initiatives to

reduce total CO

2

emissions, and in December 2022, shared its perspectives on

measures to consider speciﬁc measures toward achieving carbon neutrality by 2050.

Through close communication with each supplier, Honda aims to work together to

realize carbon-neutral status.

Management of CO

2

Data

To increase the effectiveness of its efforts to reduce the environmental impacts in its

supply chain, Honda established a system for the integrated management of data on

CO

2

emissions reduction by suppliers in FY2012, which commenced full-scale

operation in FY2015. Since FY2018, Honda has been taking part in CDP’s supply

chain program (an international initiative by institutional investors asking companies

for their disclosure of information on climate change policies).

Honda is using these tools to share goals and progress status towards total

reduction and to implement the PDCA cycle with suppliers worldwide.

As of 2022, approximately 1,700 companies, equating to more than 80% of

purchasing value on a global level, are using these tools.

Going forward, the Company will comprehensively analyze data to assist in

activities to reduce CO

2

emissions at suppliers, including their efforts to achieve total

emissions control targets.

Reducing the Environmental Impact Together

with Suppliers

4 Social

Safety

��

33

Quality

��

47

Human Resources

��

63

Supply Chain

��

87

Basic Approach

��

88

Basic Approach to

Purchasing

��

89

Global Management of

Purchasing

��

91

Purchasing Initiatives

��

92

Basic Approach to

Logistics

��

97

Global Management of

Logistics

��

98

Logistics Initiatives

��

99

Joint Efforts with Industry

Groups and Suppliers

��

102

Social Contribution

Activities

��

103

308-2

92

Honda ESG Data Book

2023

Contents Editorial Policy

1

Honda’s

Sustainability

2

Environment

3

Governance

5

Performance

Data

6

Data

7

Social

4

Purchasing Initiatives

Initiatives to Reduce the Environmental Impact in the Supply

Chain

Honda promotes initiatives together with suppliers to reduce the environmental

impact, that is, reduce CO

2

emissions and ensure the efﬁcient use of resources in

each region.

In Japan, Honda sets speciﬁc numerical CO

2

, water and waste targets for its

Honda Group suppliers and promotes reduction initiatives in partnership with each of

them.

With regard to water and waste, having started undertaking measures for target

management in FY2019, Honda set speciﬁc targets for FY2023 (below FY2020

results per unit of production) to collect accurate data. As part of this initiative,

Honda has provided tools to these suppliers to analyze their respective progress and

past performance and has been checking their activities to reduce the environmental

impact as well as evaluate their stance in this area. By communicating and sharing

information with Honda Group suppliers via the Internet, Honda actively collaborates

with them to promote efforts to achieve the targets.

Performance in reducing the environmental impact

Index of CO

2

emissions/water use/waste generation per millions of yen

* Scope of data: all consolidated tier 1 suppliers in Japan

CO2 Water Waste

(FY)

2001 202320222021202020172016 2018 2019

100

68

74

72

100

71

93

64

69

89

93

105

102

104

89

82

62

64

58

62

40

60

80

100

120

Category FY2018 FY2019 FY2020 FY2021 FY2022 FY2023

CO

2

(t/millions of yen) 1.08 1.07 0.95 1.03 0.93 0.86

Water (m

3

/millions of yen) 9.99 9.29 8.19 8.91 10.51 10.16

Waste (t/millions of yen) 0.59 0.62 0.53 0.55 0.38 0.37

4 Social

Safety

��

33

Quality

��

47

Human Resources

��

63

Supply Chain

��

87

Basic Approach

��

88

Basic Approach to

Purchasing

��

89

Global Management of

Purchasing

��

91

Purchasing Initiatives

��

92

Basic Approach to

Logistics

��

97

Global Management of

Logistics

��

98

Logistics Initiatives

��

99

Joint Efforts with Industry

Groups and Suppliers

��

102

Social Contribution

Activities

��

103

2-6, 308-2

93

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2023

Contents Editorial Policy

1

Honda’s

Sustainability

2

Environment

3

Governance

5

Performance

Data

6

Data

7

Social

4

The Company has issued the Honda Chemical Substance Management Standard,

which aims to ensure that all the components that make up Honda products comply

with laws and regulations as well as to reduce their impact on the global environment

and ecosystem. Honda asks suppliers around the world to establish a structure for

managing chemical substances that meets the standard and to guarantee that the

components they supply satisfy the standard. The Company also uses an industry-

standard management system for speciﬁc data on chemicals contained in

components, which are evaluated prior to commencing mass production.

Honda views all phenomena that can impact production as risks, including disasters,

ﬁres, ﬁnancial issues and labor issues within suppliers. Accordingly, the Company

works to reduce these risks and prevent the spread of any impact if they materialize

throughout the supply chain, beginning with the procurement of components and

materials. For example, Honda deﬁnes all components and materials whose

procurement is dependent on a single facility as Mission-Critical Parts, and

inspections and countermeasures are implemented continually around the world.

Honda began operating a procurement risk management system with suppliers

in Japan in December 2014. Through the operation of this system, the Company

established structures to assess damage and identify the impact on production at

suppliers in a short period of time after the occurrence of a major disaster.

Honda also performs once-yearly evaluations based on supplier surveys in order

to minimize ﬁnancial risk. In addition, the Company checks risk every month by

referring to information from third-party organizations.

Honda recognizes the potential link between the increased demand for rare minerals,

including cobalt, due to electriﬁcation and human rights issues such as child labor,

and is engaged in activities aiming to avoid the use of minerals that may contribute to

human rights violations and environmental pollution. In Japan, the Company uses

templates provided by the Responsible Minerals Initiative (RMI) and works to identify

cobalt reﬁners with the cooperation of its suppliers. Going forward, Honda will also

consider global initiatives.

Honda seeks to strengthen sustainability, including compliance, throughout the

supply chain. In conducting business, the Company concludes basic agreements on

component procurement that specify areas of attention such as safety, disaster

prevention, environmental preservation and the protection of resources. The

agreements also contain terms regarding compliance with each country’s laws and

regulations, including competition laws and laws and regulations related to the

prevention of bribery.

Chemical Substance Management Requiring Legal Compliance from Suppliers

Measures to Counter Procurement Risk

Responsible Mineral Sourcing

Purchasing Initiatives

4 Social

Safety

��

33

Quality

��

47

Human Resources

��

63

Supply Chain

��

87

Basic Approach

��

88

Basic Approach to

Purchasing

��

89

Global Management of

Purchasing

��

91

Purchasing Initiatives

��

92

Basic Approach to

Logistics

��

97

Global Management of

Logistics

��

98

Logistics Initiatives

��

99

Joint Efforts with Industry

Groups and Suppliers

��

102

Social Contribution

Activities

��

103

308-2, 407-1, 411-1, 412-1, 412-2, 412-3, 414-2

94

Honda ESG Data Book

2023

Contents Editorial Policy

1

Honda’s

Sustainability

2

Environment

3

Governance

5

Performance

Data

6

Data

7

Social

4

Honda has distributed a checklist to suppliers requesting independent inspection in

order to conﬁrm the status of initiatives relative to the guidelines.

Honda introduced a sustainability initiatives inspection in Japan in 2016 for

suppliers with large business volumes and signiﬁcant inﬂuence on the Company, in

line with rising expectations worldwide to fulﬁll corporate social responsibility that also

includes the supply chain. The inspection is now carried out globally. Following the

ﬂow diagram indicated on the right, in Japan, Honda performs this inspection

periodically on suppliers who account for more than 80% of purchasing value. Based

on the inspection results, the Company identiﬁes high-risk suppliers that are prone to

problems and may have a signiﬁcant impact on Honda if a problem does occur. In a

written survey, Honda carries out the following three activities accordingly.

Distribute a check sheet based on international standards

Conﬁrm the compliance status of the guidelines

Promote improvement

The check sheet encompasses all aspects of human rights and labor matters,

including eliminating race, ethnicity, nationality, religion, gender and other

discrimination, as well as banning child labor, forced labor and human trafﬁcking and

guaranteeing minimum wages. The check sheet veriﬁes supplier activities in a broad

range of ﬁelds as it also covers such evaluation categories as the environment,

compliance and information disclosure.

Sustainability Initiatives Inspection for Suppliers

Next, Honda conducts and veriﬁes the following items in an interview survey

with high-risk suppliers.

Check relevant records, actual production processes and related facilities

Verify the progress through a report on the improvement plan and result

Conduct a follow-up investigation (including an on-site check as necessary)

Recent examples of improvement include the management of working hours and the

formulation of an internal rule to prohibit suppliers from retaining the ID documents of

non-Japanese workers.

Going forward, Honda will work with overseas purchasing sites to promote the

sustainability initiatives inspection globally while enhancing education for the

associates responsible for the investigation to cultivate the required skills.

There were no instances of issues bearing signiﬁcant risk in FY2023.

Flow of sustainability initiatives inspection

Identify high

risks

Improvement

activities

Figure out the

actual situation

Feedback

Deﬁnition of critical

suppliers

� Transaction amount

� Transaction result

� Sales ratio

� Capital relationship

� Legal and policy

compliance status

� Results of written

survey

� Degree of impact

when a problem arises

� Interview survey � Improvement requests

(written survey and

interview survey)

� Follow ups

Purchasing Initiatives

4 Social

Safety

��

33

Quality

��

47

Human Resources

��

63

Supply Chain

��

87

Basic Approach

��

88

Basic Approach to

Purchasing

��

89

Global Management of

Purchasing

��

91

Purchasing Initiatives

��

92

Basic Approach to

Logistics

��

97

Global Management of

Logistics

��

98

Logistics Initiatives

��

99

Joint Efforts with Industry

Groups and Suppliers

��

102

Social Contribution

Activities

��

103

308-2, 407-1, 411-1, 412-1, 412-2, 412-3, 414-2

95

Honda ESG Data Book

2023

Contents Editorial Policy

1

Honda’s

Sustainability

2

Environment

3

Governance

5

Performance

Data

6

Data

7

Social

4

To ensure that every associate involved in Honda’s purchasing operations promotes

honest and fair initiatives, Honda has prepared manuals and personnel development

programs in each region.

For example, in North America, Honda provides extensive training through

seminars, e-learning and on-the-job training (OJT). In its Basic Training Course, the

Company shares its approach in such areas as the selection of suppliers and

initiatives to strengthen QCDDE. Honda’s Building Business Relations training

emphasizes the importance of the Company’s code of conduct, legal compliance

and conﬁdentiality in developing positive long-term relationships with suppliers.

In this way, Honda has developed programs worldwide that incorporate the

cultural and social background of each region in addition to basic knowledge about

purchasing operations to provide instruction for all purchasing associates.

Instruction and Training for Associates

Purchasing Initiatives

4 Social

Safety

��

33

Quality

��

47

Human Resources

��

63

Supply Chain

��

87

Basic Approach

��

88

Basic Approach to

Purchasing

��

89

Global Management of

Purchasing

��

91

Purchasing Initiatives

��

92

Basic Approach to

Logistics

��

97

Global Management of

Logistics

��

98

Logistics Initiatives

��

99

Joint Efforts with Industry

Groups and Suppliers

��

102

Social Contribution

Activities

��

103

308-2, 407-1, 411-1, 412-2, 414-2

96

Honda ESG Data Book

2023

Contents Editorial Policy

1

Honda’s

Sustainability

2

Environment

3

Governance

5

Performance

Data

6

Data

7

Social

4

Basic Approach to Logistics

At Honda, many parts that are used in its products are transported from suppliers to

its factories. Likewise, the completed models, as well as parts for services and

repairs, are sent directly from the factories to dealers. Honda, which transports large

volumes of goods from upstream to downstream in the manufacturing process,

considers the reduction of environmental burden and compliance risk management

as important issues, as well as improving efﬁciency in logistics. For instance, as an

initiative to reduce the environmental burden, Honda is promoting more efﬁcient

container transport.

*1 A transportation operator retained by

the supplier delivers sourced parts to

the entrance of Honda’s plants.

*2 A transportation operator retained by

Honda makes the rounds of parts

suppliers and picks up the sourced

parts.

Overview of Honda logistics

Procurement logistics

Logistics between

factories

Products / Parts logistics

Factories

Dealers Customers

Port/airport

Factories

Suppliers

Shipment arranged by

other companies*

1

Shipment arranged by

Honda*

2

Transit

warehouse

Parts import

Products

import

Ship/aircraft

Maritime transport

4 Social

Safety

��

33

Quality

��

47

Human Resources

��

63

Supply Chain

��

87

Basic Approach

��

88

Basic Approach to

Purchasing

��

89

Global Management of

Purchasing

��

91

Purchasing Initiatives

��

92

Basic Approach to

Logistics

��

97

Global Management of

Logistics

��

98

Logistics Initiatives

��

99

Joint Efforts with Industry

Groups and Suppliers

��

102

Social Contribution

Activities

��

103

97

Honda ESG Data Book

2023

Contents Editorial Policy

1

Honda’s

Sustainability

2

Environment

3

Governance

5

Performance

Data

6

Data

7

Social

4

Global Management of Logistics

In order to supply products and parts across countries and regions, it is

necessary to identify and analyze a variety of factors, including the different

transportation infrastructures, laws and natural disaster risks in each country.

Laws and regulations, in particular, have the potential to significantly impact

safety and speed in transportation.

Honda aims to constantly obtain accurate information and ensure an efﬁcient,

accurate and early response on a global basis. To do so, the Company has

established a function for the integrated management of international treaties and

legal information concerning logistics operations. In addition to this, Honda is

working to strengthen compliance with laws and regulations by ensuring a swift

response.

Integrated Management of Legal Information Concerning Logistics

Integrated management framework for legal information

Certiﬁcation & Regulation

Compliance Division

Logistics Management

Division

Exporting country

Japan

North America

South America

Europe

Asia & Oceania

China

Importing country

Japan

North America

South America

Europe

Asia & Oceania

China

Legal information

report database

4 Social

Safety

��

33

Quality

��

47

Human Resources

��

63

Supply Chain

��

87

Basic Approach

��

88

Basic Approach to

Purchasing

��

89

Global Management of

Purchasing

��

91

Purchasing Initiatives

��

92

Basic Approach to

Logistics

��

97

Global Management of

Logistics

��

98

Logistics Initiatives

��

99

Joint Efforts with Industry

Groups and Suppliers

��

102

Social Contribution

Activities

��

103

98

Honda ESG Data Book

2023

Contents Editorial Policy

1

Honda’s

Sustainability

2

Environment

3

Governance

5

Performance

Data

6

Data

7

Social

4

Improving Transportation Efﬁciency via Co-Creation with

Suppliers

To minimize the logistics losses incurred by our suppliers, we ask them to deliver

products to the nearest cross-dock (XD) of their shipping bases. From the XD,

Honda then combines the products within a multi-company consolidation to

transport them efﬁciently.

The effects of these measures have contributed to a reduction in the loads

handled by distant suppliers and also a reduction in CO

2

emissions.

Honda is promoting highly efﬁcient transportation to improve QCD related to logistics.

Container Round Use

Since containers are rented from shipping companies, it is a common business

practice to return them promptly after cargo transportation.

However, since Honda has both export and import cargo, it negotiated with the

respective shipping companies to reduce the transportation of empty containers

upon return. As a result, the Company was able to reduce costs by 40% to 60%, as

well as CO

2

emissions in Japan.

In the area of logistics, Honda is taking the following three major initiatives to achieve

carbon neutrality by 2050:

1) Highly efﬁcient transportation (smart logistics)

2) Low carbon transportation (clean logistics)

3) Technological advancement of packaging materials

1) Highly efﬁcient transportation

(smart logistics)

Before After

Exports

Imports

Ports

Imports

Exports

Ports

Honda bundles and transports in

mixed loads

After

Cross dock (XD)*

Each company transports small

quantities with low loads

Before

* Cross dock (XD): Warehouse with

functions centered on the transshipment

of parts

Logistics Initiatives

4 Social

Safety

��

33

Quality

��

47

Human Resources

��

63

Supply Chain

��

87

Basic Approach

��

88

Basic Approach to

Purchasing

��

89

Global Management of

Purchasing

��

91

Purchasing Initiatives

��

92

Basic Approach to

Logistics

��

97

Global Management of

Logistics

��

98

Logistics Initiatives

��

99

Joint Efforts with Industry

Groups and Suppliers

��

102

Social Contribution

Activities

��

103

99

Honda ESG Data Book

2023

Contents Editorial Policy

1

Honda’s

Sustainability

2

Environment

3

Governance

5

Performance

Data

6

Data

7

Social

4

By focusing on long-haul transport, Honda is working to expand the modal shift so

that rail and ships can be favored over trucks as modes of transportation. In India

and Vietnam, for carrying products to distant regions, we are switching from trucks

to ship and rail transport. Similarly, in China, we are switching from trucks to railway

transportation.

In Japan, we are also working to switch to railway transportation. In June 2022,

we initiated the railway transportation of general-purpose products from Morioka to

Tokyo. As a result, our CO

2

emissions were reduced by 26.84 t-CO

2

from June 2022

to March 2023.

2) Low-carbon transportation (clean logistics)

Honda Sustainability Report 2018 p. 100 https://global.honda/sustainability/cq_img/report/pdf/2018/Honda-SR-2018-en-all-02.pdf#page=101

Honda Sustainability Report 2019 p. 123

https://global.honda/sustainability/cq_img/report/pdf/2019/Honda-SR-2019-en-all.pdf#page=124

China [Protecting the global environment]

p. 109

Shipping bases

Packaging

bases

Production

bases

Before

Packaging in Iwate

Truck transportation to Saitama

Container loading at Saitama

Truck transportation to Tokyo Bay

Loading at Tokyo

Morioka

Tokyo Bay

Packaging and

shipping bases

Production bases

After

Packaging in Iwate

JR transportation from

Morioka to Tokyo

Loading at Tokyo

Logistics Initiatives

4 Social

Safety

��

33

Quality

��

47

Human Resources

��

63

Supply Chain

��

87

Basic Approach

��

88

Basic Approach to

Purchasing

��

89

Global Management of

Purchasing

��

91

Purchasing Initiatives

��

92

Basic Approach to

Logistics

��

97

Global Management of

Logistics

��

98

Logistics Initiatives

��

99

Joint Efforts with Industry

Groups and Suppliers

��

102

Social Contribution

Activities

��

103

100

Honda ESG Data Book

2023

Contents Editorial Policy

1

Honda’s

Sustainability

2

Environment

3

Governance

5

Performance

Data

6

Data

7

Social

4

Logistics Initiatives

Honda exports (supplies) parts between factories across different countries and

regions, before conducting the assembly of vehicles and equipment in the importing

countries.

Such parts exports involve the usage of packaging materials, which are

classiﬁed as outer case and inner container.

In the past, these packaging materials were disposed of in the importing

country. Instead, we are now working to reduce waste and CO

2

emissions by

reusing containers and reducing the weight of packaging materials.

We are also cooperating with other companies in the same industry to consider

how the joint use of recycled materials can work.

3) Technological advancement of packaging materials

Improvement of packaging

Improvement

Steel case

Before improvement

Improvement

Disposed outer case

Outer case

Fold and

return to

exporting

country

Shift to returnable steel cases

Reuse outer case

Packaging materials

Inner

package

Before improvement

Standard cardboard box

Disposed inner package

Improvement

Fold and return

to exporting

country

Shift to returnable packages

Reuse inner package

Reduce disposal of inner package

Thinner, lighter cardboard box

Thin cardboard

(4 mm)

Thick cardboard

(5 mm)

Packaging materials Use

Advancement of packaging techniques

Outer case Case to be loaded onto containers Returnable steel cases

Inner package

Package of parts to be placed in

the outer case

Use of thin, light cardboard boxes;

shift to returnable packages

Classiﬁcation and improvement of packaging materials

4 Social

Safety

��

33

Quality

��

47

Human Resources

��

63

Supply Chain

��

87

Basic Approach

��

88

Basic Approach to

Purchasing

��

89

Global Management of

Purchasing

��

91

Purchasing Initiatives

��

92

Basic Approach to

Logistics

��

97

Global Management of

Logistics

��

98

Logistics Initiatives

��

99

Joint Efforts with Industry

Groups and Suppliers

��

102

Social Contribution

Activities

��

103

101

Honda ESG Data Book

2023

Contents Editorial Policy

1

Honda’s

Sustainability

2

Environment

3

Governance

5

Performance

Data

6

Data

7

Social

4

Collaboration with Industry Groups and Suppliers

Honda North America Inc., Honda’s U.S. subsidiary, participates in working groups

established by the Automotive Industry Action Group (AIAG) to strengthen

sustainability in the supply chain. They participate in the Responsible Materials

working group, the Human Rights and Trade working group, the GHG working group

and the Chemical Management working group. AIAG has offered supplier training

and encourages participation in training sessions on corporate ethics, environmental

regulations, the working environment, human rights and other topics for tier 1 and

sub-tier suppliers in North America since 2012.

In addition, Honda participates in AIAG’s Corporate Responsibility Steering

Committee and Drive Sustainability* to proactively identify issues, needs and trends

in and outside the automobile industry.

In North America, e-learning programs using computer-based training (CBT) are

also provided for suppliers in order to facilitate their understanding of sustainability.

Under the theme of sustainability, these programs deal with the environment, export

control, social responsibility, safety and health, diversity, governance, compliance

and ethics.

Dialogue with Suppliers

In December 2022, Honda convened a Sustainability Information Sharing Meeting,

where it shared current social trends and provided feedback on the results of

inspections at suppliers in accordance with the Honda Supplier Sustainability

Guidelines.

Honda also regularly holds conferences around the world to share with suppliers

the direction of its business and the substance of its initiatives. In FY2023, meetings

were held in 23 locations around the world. At these regional conferences, Honda

presented Supplier Awards to recognize those suppliers who have achieved

outstanding results in each aspect of QCDDE.

In Japan, Honda has held an annual conference since 1974. Senior

management from about 470 suppliers attended the conference in February 2023,

which was held in a hybrid format of on-line and in-person meetings. At the

conference, Honda explained both company-wide policies and policies of the

motorcycle, automobile and power products businesses. Furthermore, in FY2018,

the Company began presenting the Sustainability Award to suppliers who have made

outstanding efforts in all areas of ESG. With this award, Honda has broadened its

perspective from the old Environmental Award, which focused primarily on

greenhouse gas (GHG), to include social and governance aspects.

In North America, Honda presents the Sustainability Award to suppliers who

have made the greatest contributions in social areas such as compliance, safety and

health, community contribution activities, the environment, diversity and human

rights.

* Newly launched partnership to promote

sustainability in the automobile industry

Joint Efforts with Industry Groups and Suppliers

Presentation of Sustainability Department Award

to Niterra Co., Ltd. in Japan

Honda is striving to strengthen sustainability across the entire supply chain of parts

and logistics through initiatives such as capacity building in collaboration with the

automotive industry and its suppliers.

4 Social

Safety

��

33

Quality

��

47

Human Resources

��

63

Supply Chain

��

87

Basic Approach

��

88

Basic Approach to

Purchasing

��

89

Global Management of

Purchasing

��

91

Purchasing Initiatives

��

92

Basic Approach to

Logistics

��

97

Global Management of

Logistics

��

98

Logistics Initiatives

��

99

Joint Efforts with Industry

Groups and Suppliers

��

102

Social Contribution

Activities

��

103

2-28

102

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2023

Contents Editorial Policy

1

Honda’s

Sustainability

2

Environment

3

Governance

5

Performance

Data

6

Data

7

Social

4

Social Social Contribution

Activities

103

Honda ESG Data Book

2023

Basic Approach

Honda’s Social Contribution Activities

Since its founding, Honda has provided society and customers with a variety of joys

by creating quality products and technologies. In the 1960s, while the Company was

still in a period of early growth, Honda began to launch philanthropic initiatives

designed to strengthen ties with local communities, based on its idea that a

company must be rooted in and integrated with the local community.

Currently, Honda undertakes various social contribution activities in the seven

regions in which the Company conducts operations worldwide, aiming to share joy

with people all around the world and to be a company society wants to exist. Honda

also strives to support initiatives that reﬂect local circumstances in its corporate

activities. Honda will continue to pursue various social contribution activities while

communicating with customers and local residents.

Basic Approach

In 1998, Honda devised the Philosophical Basis and Principles of the Honda

Philanthropy for its social contribution activities. Thereafter, in 2006, the Company

formulated its Global Policy for Social Contribution Activities to make a uniﬁed effort

with the aim of creating future societies in which everyone can pursue their dreams.

Since revising the policy in 2018 in response to a changing environment, Honda

has been engaging in activities to realize its 2030 Vision to “serve people worldwide

with the joy of expanding their life’s potential.”

Based on its fundamental principles of “Respect for the Individual” and “the

Three Joys,” Honda seeks to improve the quality of people’s daily lives around the

world. In order to share this joy, the Company hopes that its associates will strive to

accelerate their initiatives worldwide.

Global Policy for Social Contribution Activities

Corporate Philosophy

Honda will proactively exercise its initiatives for social contribution, founded on the

fundamental principles of “Respect for the Individual” and “the Three Joys,” to support

Honda’s universal passion: to improve the quality of people’s daily lives.

Objective

Honda will aspire to become “a company that society wants to exist,” and will contribute

to the realization of a sustainable society, by serving people worldwide with the joy of

expanding their life’s potential through its social contribution activities.

Activity Policy

Honda will earn social acceptance by creating empathy and trust through active

community engagement and by being a good corporate citizen.

Honda will use its resources and workforce to contribute to society from a global point

of view, while maintaining the importance of each region.

Honda will promote and facilitate maximum associate participation in, and passion for,

social contribution activities.

Field of Activities

Supporting our youth for the future

Protecting the global environment

Promoting trafﬁc safety

Addressing local community needs

未来を創る

子どもの

育成支援活動

Protecting

the global

environment

Addressing

local

community

needs

Promoting

trafﬁc

safety

Supporting

our youth for

the future

4 Social

Safety

��

33

Quality

��

47

Human Resources

��

63

Supply Chain

��

87

Social Contribution

Activities

��

103

Basic Approach

��

104

Global Management

��

105

Initiatives for Social

Contribution Activities

��

106

413-1, 413-2

104

Honda ESG Data Book

2023

Contents Editorial Policy

1

Honda’s

Sustainability

2

Environment

3

Governance

5

Performance

Data

6

Data

7

Social

4

Global Management

Honda’s Global System for Social Contribution Activities

Honda’s social contribution activities are centered on four core policies: supporting

our youth for the future; protecting the global environment; promoting trafﬁc safety;

and addressing local community needs. Based on these policies, the entire Honda

Group engages in activities that recognize the value of its bonds with local

communities.

Honda pursues a variety of activities in seven regions, taking maximum

advantage of its resources in line with its Global Policy for Social Contribution

Activities.

To strengthen Honda’s global networks, the Social Contribution Activities and

Operations Ofﬁce in the Human Resources and Corporate Governance Supervisory

Unit, Corporate Affairs Division, gathers activity data from across the seven regions,

shares activity policies, and works together with the Corporate Communication

Supervisory Unit for the coordinated communication of information.

Going forward, the Honda Group intends to fulﬁll its responsibilities as a good

corporate citizen; to this end, the Group will continue its efforts to create future

societies in which everyone can pursue their dreams and promote a wide range of

activities hand-in-hand with local residents under globally coordinated initiatives.

Honda’s Global System for Social Contribution Activities

Social Contribution Activities and Operations Ofﬁce in the Human Resources and

Corporate Governance Supervisory Unit, Corporate Affairs Division

Corporate Communication Supervisory Unit

Relevant Divisions for Social Contribution Activities

Japan

North

America

South

America

Europe

Africa

and the

Middle East

Asia

and

Oceania

China

Coordinated Communication

4 Social

Safety

��

33

Quality

��

47

Human Resources

��

63

Supply Chain

��

87

Social Contribution

Activities

��

103

Basic Approach

��

104

Global Management

��

105

Initiatives for Social

Contribution Activities

��

106

413-1, 413-2

105

Honda ESG Data Book

2023

Contents Editorial Policy

1

Honda’s

Sustainability

2

Environment

3

Governance

5

Performance

Data

6

Data

7

Social

4

Initiatives for Social Contribution Activities

Summary of the Activities in FY2023

Japan [Protecting the Global Environment]

Honda Beach Cleanup Project Implemented by the Honda

Group Across Japan

In FY2023, Honda’s social contribution activities are tailored to local circumstances

in accordance with its Global Policy for Social Contribution Activities, with the aim of

creating future societies in which everyone can pursue their dreams.

Toward the dual realization of “a circular/resource-recycling society with zero

environmental impact” and “a collision-free mobile society,” Honda has been

working globally to nurture mindsets that respect the environment as well as prevent

accidents through safety awareness activities focused on people.

This report provides representative examples of Honda’s activities undertaken

in each region, including those mentioned above.

Further details can be found at the following link.

In 2006, Honda launched the Honda Beach Cleanup Project, which was based on

the desire to ensure that the next generation will be able to experience the joy of

walking barefoot on sandy beaches.

The project utilizes the Beach Cleaner, which Honda originally developed based

on a desire to use its technologies to ﬁnd a solution to clean the trash that ends up

washed ashore. In 2022, we marked the 16th year of this project.

In 2022, although still affected by the COVID-19 pandemic, the project was

conducted in 17 locations (17 prefectures) throughout the country.

Originally initiated by Honda associates and ex-associates, the project has now

expanded its circle of cooperation to include the Honda Group as a whole and local

residents across the country, with more than 7,000 participants per year.

To date, the project has been conducted 406 times on beaches throughout

Japan, and the total amount of trash collected has reached approximately 520 tons.

Honda’s Social Contribution Activities

https://global.honda/about/sustainability/community.html

Honda Beach Cleaner that can dig up and collect trash in the sand.

4 Social

Safety

��

33

Quality

��

47

Human Resources

��

63

Supply Chain

��

87

Social Contribution

Activities

��

103

Basic Approach

��

104

Global Management

��

105

Initiatives for Social

Contribution Activities

��

106

413-1, 413-2

106

Honda ESG Data Book

2023

Contents Editorial Policy

1

Honda’s

Sustainability

2

Environment

3

Governance

5

Performance

Data

6

Data

7

Social

4

North America [Supporting Our Youth for the

Future]

South America [Promoting Trafﬁc Safety]

Initiatives for Trafﬁc Safety Workshops in Chile and Peru

Honda Motor de Chile S.A. has offered free motorcycle safety driving workshops in

the city of Santiago, featuring motorcycles and safety equipment backed up by

professional instructors to promote trafﬁc safety among residents.

In FY2023, seven volunteers from Honda provided guidance to 1,384 people.

The activities involved were live-streamed via social networking sites and

received 5,791 ‘Likes.’

Honda also conducted a motorcycle drive safety seminar at Honda del Peru

S.A. At the seminar, 25 Honda volunteers provided with both practical and theoretical

training, instructing a total of 418 local residents and customers.

Educational Support for Students of Color

For over 30 years, American Honda Motor Co., Inc. (AHM) has supported the

success and dreams of Historically Black Colleges and Universities (HBCUs)

students through initiatives including the Honda Campus All-Star Challenge and

Honda Battle of the Bands. These programs provide unforgettable experiences and

opportunities for HBCU students, including meeting and networking with peers from

other HBCU schools.

AHM has impacted the lives of more than 200,000 students and in FY2023,

awarded more than USD 450,000 (over USD 14 million to date) in grants in support

of HBCU education programs and facilities improvements.

AHM also has partnered with the Thurgood Marshall College Fund to provide

annual scholarship fund to support HBCU students pursuing an education in

engineering, supply chain management and manufacturing-related ﬁelds.

A drive safety seminar in Chile A drive safety seminar in Peru

Initiatives for Social Contribution Activities

HBCU students

4 Social

Safety

��

33

Quality

��

47

Human Resources

��

63

Supply Chain

��

87

Social Contribution

Activities

��

103

Basic Approach

��

104

Global Management

��

105

Initiatives for Social

Contribution Activities

��

106

413-1, 413-2

107

Honda ESG Data Book

2023

Contents Editorial Policy

1

Honda’s

Sustainability

2

Environment

3

Governance

5

Performance

Data

6

Data

7

Social

4

Europe [Addressing Local Community Needs and

Disaster Relief]

Asia and Oceania [Supporting Our Youth for the

Future]

Support for Earthquake Relief in Turkey and Syria

More than 200 generators have been donated by Honda Motor Europe Ltd. – our

regional headquarters in Europe – to aid the areas affected by the earthquake that

hit the Turkish and Syrian borders on February 6, 2023. Meanwhile, Honda Turkey

A.S. donated approximately JPY 20 million in emergency relief supplies and

humanitarian aid.

Additionally, Honda Motor Co., Ltd. donated JPY 10 million in relief funds via the

Japanese Red Cross Society. Also, the American Honda Motor Co., Inc. and Honda

Development and Manufacturing of America, LLC conducted an associate donation

program and made a matching donation from the Company.

Establishment of a Girl’s Senior Secondary School in India

In India, over 60% of the population lives in rural areas, so cultivating the next

generation is critical for the development of villages. A government survey found that

half of the students in the classroom were unable to read and write, which presents a

challenge to the educational environment.

Honda Cars India Ltd. has established a school for female students in Tapukara,

Rajasthan, where the company’s vehicle assembly plant is located. The aim is to aid

the development of female students who have had limited educational opportunities

compared to their male counterparts.

We started the project by ﬁnding the land. The new building was completed in

March 2020, ﬁtted with spacious classrooms, a clean and well-equipped cafeteria,

and restrooms. In terms of education, the program focuses on a wide range of areas,

including classes that incorporate STEM education, together with moral and

leadership training.

In total, approximately INR 83 million has been provided so far, with 1,253

students enrolled in the program in FY2023.

Providing assistance on site

Girl’s Senior Secondary School in Tapukara The award from the Education Minister

Initiatives for Social Contribution Activities

4 Social

Safety

��

33

Quality

��

47

Human Resources

��

63

Supply Chain

��

87

Social Contribution

Activities

��

103

Basic Approach

��

104

Global Management

��

105

Initiatives for Social

Contribution Activities

��

106

413-1, 413-2

108

Honda ESG Data Book

2023

Contents Editorial Policy

1

Honda’s

Sustainability

2

Environment

3

Governance

5

Performance

Data

6

Data

7

Social

4

China [Protecting the Global Environment] Africa and the Middle East [Addressing Local

Community Needs]

Food Program in the United Arab Emirates Special Economic

Zone

There are about 9,000 companies operating in the Jebel Ali Free Zone (a special

economic zone in the United Arab Emirates), where more than 30,000 people stay in

workers’ accommodations. As a member of this community, Honda Gulf FZE wishes

to express its gratitude to those who work so hard to support local industries and

businesses. To this aim, in July 2022, Honda Gulf FZE collected internal donations

and its volunteer associates distributed 113 lunches to workers’ accommodations in

the neighborhood.

We plan to continue such activities in the future as we strive to be a company

society wants to exist.

Long-Term Afforestation Activities in the Severe

Desertiﬁcation of the Inner Mongolia Autonomous Region

For 15 years, since 2008, the Honda Group in China has been conducting tree-

planting activities in the Inner Mongolia Autonomous Region. To date, more than

2,000 Honda associates have participated in the project, planting 1.96 million trees

over 14.33 million m

2

of land.

Over the years, we have studied climatic and soil characteristics to accumulate

knowledge of afforestation in arid regions, which has allowed us to meet afforestation

survival rates well above the national standard.

This project has been carried out for the past 3 terms of 15 years, with the

fourth term set to begin in 2023. In the fourth term, the goal is to plant approximately

3.33 million square meters of forest area over a ﬁve-year period. The aim is to

expand forest areas, manage water and soil loss, improve local environments, and

contribute to sustainable development in rural areas and even in North China.

Land now covered with greenery as a result of the afforestation activities

Initiatives for Social Contribution Activities

Distribution of food by associates

4 Social

Safety

��

33

Quality

��

47

Human Resources

��

63

Supply Chain

��

87

Social Contribution

Activities

��

103

Basic Approach

��

104

Global Management

��

105

Initiatives for Social

Contribution Activities

��

106

413-1, 413-2

109

Honda ESG Data Book

2023

Contents Editorial Policy

1

Honda’s

Sustainability

2

Environment

3

Governance

5

Performance

Data

6

Data

7

Social

4

Governance

5

Material issues

Strengthening corporate governance

110

Honda ESG Data Book

2023

Honda is making efforts to appropriately disclose corporate information

including the release and disclosure of quarterly ﬁnancial results and management

policies in a timely and accurate manner to bolster the trust and appreciation of

shareholders/investors and society. Going forward, Honda will continue to strive to

ensure the transparency of its management.

Please see “Honda Corporate Governance Basic Policies” and “Corporate

Governance Report” for information on Honda’s corporate governance policy.

(Please use the link below.)

Overview of corporate governance

p. 150

“Honda Corporate Governance Basic Policies” “Corporate Governance Report”

https://global.honda/investors/policy/governance.html

Corporate governance structure (as of June 21, 2023)

Supervisory

function

Execution

Audit Division

Respective Operations and Supervisory Units (Regional/Business/Functional)/Subsidiaries

Compliance Officer

Compliance Committee

Compliance

Risk Management Officer

Risk Management Committee

Risk Management

Business Ethics

Kaizen

Proposal Line

Resolution for the election/dismissal of directors Election/Dismissal

Election/Dismissal

AuditAssistance

Audit

Report

Report Report

Audit

Report

Proposal

Proposal/

Report

Supervision/

Delegation

of authority

Supervision/

Evaluation

Election/Dismissal/Supervision/Delegation of authority of Executive Ofﬁcers

Election/Dismissal/Supervision of committee members

Determining

compensation

Determining

compensation

Resolution for the

election/dismissal of

accounting auditors

Supervision

Internal audit

General Meeting of Shareholders

Accounting Auditors

Executive Council

(Representative Executive Officers and Executive Directors)

Nominating Committee

4 Directors (including 3 Outside Directors)

Board of Directors

11 Directors (including 5 Outside Directors)

Compensation Committee

4 Directors (including 3 Outside Directors)

Audit Committee

5 Directors (including 3 Outside Directors)

As a key task for management, Honda strives to enhance its corporate governance

based on the Company’s basic principle to strengthen the trust of its shareholders/

investors, customers, and society; encourage timely, decisive, and risk-considered

decision-making; seek sustainable growth and enhance corporate value over the

medium- to long-term; and become “a company society wants to exist.”

To clearly segregate the supervisory and execution functions of management,

strengthen the supervisory function, and enable prompt and ﬂexible decisions,

Honda has created a Nominating Committee, Audit Committee, and Compensation

Committee, each of which is composed of over 50% Outside Directors. Honda has

also adopted a “company with three committees” structure, which allows the broad

delegation of the business execution authority from the Board of Directors to the

Executive Ofﬁcers.

Basic Approach

Office of the Board

of Directors

5 Governance

Corporate Governance

��

111

Compliance

��

124

Risk Management

��

127

2-9, 2-15, 2-16, 2-17, 405-1

111

Honda ESG Data Book

2023

Contents Editorial Policy

1

Honda’s

Sustainability

2

Environment

3

Social

4

Performance

Data

6

Data

7

Governance

5

Speciﬁc discussion topics at the Board of Directors in FY2023

Medium-term management plan and its progress

Quarterly consolidated ﬁnancial statements and business outlook

Quarterly operational execution status

Duty execution statuses of committees

Maintenance and operation of the internal control system

Internal audit results, etc.

To fulﬁll the above roles, the candidates for Director, regardless of gender,

nationality, or other personal attributes, shall be persons of superior character and

insight who are experts in company management, laws, politics, accounting,

education, or the Company’s business. The Nominating Committee shall consider

the balance of gender, nationality, knowledge, and related experience among the

candidates.

Nominating Committee, Audit Committee, and Compensation Committee

To reinforce its supervisory function, the Company has established the Nominating

Committee, Audit Committee, and Compensation Committee, all of which are

comprised of a majority of Outside Directors.

1. Nominating Committee

The Nominating Committee determines the content of the proposals for the

appointment or removal of Directors to be submitted to the shareholders’ meeting

and performs other duties prescribed by laws and regulations and the Articles of

Incorporation. The Nominating Committee is composed of four Directors, including

three Outside Directors. The Chairperson of the Nominating Committee is selected

from among Independent Directors.

Honda has adopted a “company with three committees” system to delegate the

decision-making authority of the Board of Directors to execute important business

matters to the Executive Ofﬁcers in accordance with the provisions of the Company’s

Articles of Incorporation and resolutions approved by the Board. This system enables

quick decision-making and prompt business execution while clearly separating the

functions of management supervision and business execution so that the Board is

focused on overseeing business execution.

The Board of Directors has established criteria for deliberation and has

delegated some of its authority to the Executive Council, which, in turn, delegates

some of its authority to the Business Operating Board.

The Executive Council conducts preliminary deliberations on matters to be

resolved by the Board of Directors and deliberates on important management

matters within the scope of authority delegated by the Board of Directors. The

Business Operating Board deliberates important management matters in each area

within the scope of authority delegated by the Executive Council.

Board of Directors

The Board of Directors is comprised of six Inside Directors and ﬁve Outside

Directors.

To respond to the mandate of the shareholders to achieve sustainable growth

and enhance the corporate value of the Company over the medium to long term, the

duties of the Board of Directors include making decisions concerning key Company

matters such as its basic management policies and the monitoring of operations by

Directors and Executive Ofﬁcers. Additionally, the Board of Directors discusses and

makes decisions concerning matters speciﬁed in the regulations of the Board of

Directors, as well as matters set forth in the Articles of Incorporation and applicable

laws. All other matters are delegated to the Representative Executive Ofﬁcers or the

Executive Ofﬁcers.

Corporate Governance

Decision-Making and Supervision of

Business Execution

5 Governance

Corporate Governance

��

111

Compliance

��

124

Risk Management

��

127

2-9, 2-15, 2-16, 2-17, 405-1

112

Honda ESG Data Book

2023

Contents Editorial Policy

1

Honda’s

Sustainability

2

Environment

3

Social

4

Performance

Data

6

Data

7

Governance

5

2. Audit Committee

To respond to the mandate of the shareholders, the Audit Committee conducts

audits of the execution of duties by the Directors and Executive Ofﬁcers and

performs other duties as prescribed by laws and regulations and the Articles of

Incorporation to ensure the sound and sustainable growth of the Honda Group.

The Audit Committee is composed of two Inside Directors and three Outside

Directors. The Chairperson of the Audit Committee is selected from among

Independent Directors. To ensure the effectiveness of the audit, full-time member(s)

of the Audit Committee are elected by resolutions of the Board of Directors.

Mr. Yoichiro Ogawa, a Director, has abundant experience and considerable

knowledge as a certiﬁed public accountant, and Mr. Masafumi Suzuki, also a

Director, has had sufﬁcient operating experience in the ﬁnance and accounting

departments of the Company and its subsidiaries. Both qualify as “persons with

considerable knowledge related to ﬁnance and accounting,” as speciﬁed under

Article 121-9 of the Regulation for Enforcement of the Companies Act of Japan.

Additionally, the Company’s Audit Committee has recognized Messrs. Yoichiro

Ogawa and Masafumi Suzuki as “specialists in ﬁnance in the Audit Committee” as

speciﬁed in the regulations of the U.S. Securities and Exchange Commission,

based on Article 407 of the U.S. Public Company Accounting Reform and Investor

Protection Act of 2002 (Sarbanes-Oxley Act of 2002). All ﬁve members of the Audit

Committee remain independent as speciﬁed by the regulations of the U.S.

Securities and Exchange Commission.

Nominating Committee Members (as of June 21, 2023)

Fumiya Kokubu (Chairperson) (Outside Director)

Toshihiro Mibe

Kunihiko Sakai (Outside Director)

Kazuhiro Higashi (Outside Director)

Speciﬁc discussion topics at the Nominating Committee in FY2023

Basic policy/annual activity plan

The way of being a leader

Succession plan for Directors

Prospective Director candidates, etc.

Audit Committee Members (as of June 21, 2023)

Yoichiro Ogawa (Chairperson) (Outside Director)

Asako Suzuki (Full-time Audit Committee Member)

Masafumi Suzuki (Full-time Audit Committee Member)

Kunihiko Sakai (Outside Director)

Ryoko Nagata (Outside Director)

Speciﬁc discussion topics at the Audit Committee in FY2023

Basic policy/annual activity plan

Quarterly audit implementation status

Quarterly review of consolidated ﬁnancial statements by the Accounting Auditor

Implementation status of internal audits, etc.

Corporate Governance

5 Governance

Corporate Governance

��

111

Compliance

��

124

Risk Management

��

127

2-9, 2-10, 2-13, 2-15, 2-17

113

Honda ESG Data Book

2023

Contents Editorial Policy

1

Honda’s

Sustainability

2

Environment

3

Social

4

Performance

Data

6

Data

7

Governance

5

Each member of the Audit Committee audits the execution of duties by Directors and

Executive Ofﬁcers in accordance with the auditing criteria for the Audit Committee,

auditing policies, division of duties, etc., as determined by the Audit Committee. The

audit is carried out through the following main activities using online tools such as

web conferencing systems.

Standards for Audit Committee reports have been established to ensure the

Committee receives timely and accurate reports. Based on these standards, reports

are made periodically to the Audit Committee on the status of the business

operations of the Company and its subsidiaries, the status of the implementation and

operation of internal control systems, and other matters. Also, reporting is required

whenever an issue arises that has a major impact on the Company.

The Company has formed the Board of Directors Ofﬁce as a dedicated

organization to support the Board of Directors, Nominating Committee, Audit

Committee, and Compensation Committee in their duties.

Employees of the Board of Directors Ofﬁce execute their duties under the

supervision of the Board of Directors and the three committees. For matters such as

performance evaluations, personnel changes, etc., the consent of the Audit

Committee is required to ensure independence from Executive Ofﬁcers and the

effective implementation of instructions by the Audit Committee.

The Audit Division, organized as an internal audit division directly under the

President and CEO, conducts internal audits of each division of the Company. It also

provides supervision and guidance to internal audit divisions in major subsidiaries,

and when necessary, audits subsidiaries directly.

The Audit Division regularly reports to the Audit Committee on audit policy, audit

plans, and audit results, and when necessary, make additional reports on audit

results at the request of the Audit Committee. Also, the Audit Committee and the

Audit Division implement audits independently or in collaboration.

Corporate Governance

Main activities of the Audit Committee

Initiative Details

Dialogue with Executive

Ofﬁcers

Exchange opinions in meetings with Executive Ofﬁcers regarding

the management and business environments (75 meetings held

during FY2023 of which Outside Directors participated 15 times).

Attendance at important

meetings

Monitor and verify the status of the execution of duties by

Directors and Executive Ofﬁcers by attending the Executive

Council and expressing opinions as necessary (full-time members).

Implementation of on-site

audits

Implement on-site audits based on the annual audit plan. For

certain subsidiaries in Japan and overseas Group companies,

remote audits are conducted via web conferencing systems and

videos.

FY2023

Honda headquarters/business sites

19 areas (1 area with the participation of Outside Directors)

Group companies in Japan

19 companies (5 companies with the participation of Outside

Directors)

Group companies outside Japan

25 sites (6 sites with the participation of Outside Directors)

Collaboration with the

Accounting Auditor and the

Audit Division

Exchange opinions in meetings regarding the accounting audit

plan and results (eight meetings held with the Accounting Auditor

in FY2023). Also, implement audits in collaboration with the

internal Audit Division.

Strengthening the Group’s

governance structure

Maintain and strengthen the Group’s governance structure by

sharing information and exchanging opinions with the auditors of

Group companies in Japan and by hosting lectures by Outside

Directors.

5 Governance

Corporate Governance

��

111

Compliance

��

124

Risk Management

��

127

2-9, 2-10, 2-15, 2-17

114

Honda ESG Data Book

2023

Contents Editorial Policy

1

Honda’s

Sustainability

2

Environment

3

Social

4

Performance

Data

6

Data

7

Governance

5

3. Compensation Committee

The Compensation Committee makes determinations regarding the details of

compensation for each Director and Executive Ofﬁcer and carries out other duties as

prescribed by laws and regulations and the Articles of Incorporation. The

Compensation Committee is composed of one Inside Director and three Outside

Directors. The Chairperson is selected from among Independent Directors.

Compensation Committee Members (as of June 21, 2023)

Kazuhiro Higashi (Chairperson) (Outside Director)

Shinji Aoyama

Fumiya Kokubu (Outside Director)

Yoichiro Ogawa (Outside Director)

Speciﬁc items considered by the Compensation Committee in FY2023

Basic policy/annual activity plan

Executive performance evaluation

Long-term incentive (LTI) and stock delivery regulations

Evaluation of the Effectiveness of the Board of Directors

Each ﬁscal year, the Company evaluates the overall effectiveness of the Board of

Directors to conﬁrm the current status of the Board’s functions and with the aim of

further improving its effectiveness and promoting understanding among shareholders

and stakeholders.

Evaluation results

Evaluation process

Survey of all Directors

(self-assessment).

External lawyers conduct

hearings and collect the

results.

Under the Chairperson’s

supervision, the Board of Directors

discusses the evaluation results

submitted by the Secretariat and

issues a resolution.

Corporate Governance

Summary of evaluation results

The results of the effectiveness evaluation conﬁrmed that the effectiveness of the

Board of Directors has been adequately ensured through the following initiatives:

setting appropriate items for deliberation and frequency of meetings, providing

information to outside directors and enhancing opportunities for exchange of

opinions, including business site visits, as well as the appropriate operation of the

three committees.

Going forward, the Company will further enhance the effectiveness of the

monitoring-type Board of Directors by stimulating discussion both within and outside

the Board of Directors and by further strengthening cooperation between the Board

of Directors and the three committees.

Tasks for FY2022

Main initiatives for

FY2023

Evaluation for FY2023

Tasks and initiatives

for the future

Composition

Continued examination of

the composition of the

Board of Directors for further

functional enhancement

Discussing the need for

formulating, disclosing, and

revising the skill matrix in the

Nominating Committee

The current composition

of the Board of Directors

is appropriate

Further deepening the

discussion on the

expertise and diversity of

future Directors.

Shared information

Further enhancement of

timely information sharing

and opportunities for

business site visits for

Outside Directors

� Additional information

sharing matters for

Outside Directors

� Enhancement of

opportunities for Outside

Directors to visit

business sites and

events

� The information

provided is substantial.

� It was meaningful to

have ample opportunities

for external directors to

visit business sites and

events, which deepened

their understanding of

the business and allowed

them to experience the

corporate culture.

Provide information and

inspection opportunities

with a greater focus

Agenda items for

deliberation, etc.

Further enhance

opportunities to share

information and exchange

opinions about the

progress status of the

medium-term management

plan and the direction of

the next term plan

� Setting up opportunities

for information sharing

and discussion regarding

the direction of the next

management plan.

� Conduct a meeting to

exchange views on

management-related

concerns

� Discussion items are

narrowed down to

important matters.

� Information sharing/

opinion exchange

opportunities are

effective

Enhancing board

discussions through

effective setup of

information sharing/

exchange opportunities

Deliberation

at meetings

Further revitalization of

discussions in the Board

of Directors

Update proposals and

explanations on the day of

the event as appropriate,

based on questions and

discussions raised at the

pre-brieﬁng

� Active debates are

underway

� Each director provides

insightful opinions and

questions

Further revitalization of

discussions in the Board

of Directors (Continued)

Committee

Maintaining and

enhancing coordination

between committees and

the Board of Directors

Report the deliberation

status of each committee

at the Board of Directors

meeting immediately

following the committee

meeting

The deliberation status of

each committee is being

properly reported to the

Board of Directors.

Maintaining and

enhancing coordination

between committees and

the Board of Directors

(Continued)

5 Governance

Corporate Governance

��

111

Compliance

��

124

Risk Management

��

127

2-9, 2-15, 2-17, 2-18, 2-19, 2-20

Overview of corporate governance

p. 150

115

Honda ESG Data Book

2023

Contents Editorial Policy

1

Honda’s

Sustainability

2

Environment

3

Social

4

Performance

Data

6

Data

7

Governance

5

Support Systems for Outside Directors

Honda’s Board of Directors Ofﬁce plays a central role in providing the following

support to Outside Directors to ensure they can maximize their functions as Outside

Directors.

1. Orientation at the time the Director assumes this role

Honda provides training in industry trends, as well as the Company’s history,

business, ﬁnances, organizations, internal control system, and other matters to newly

appointed Outside Directors.

2. Preliminary brieﬁng sessions and information-sharing meetings

Preliminary brieﬁng sessions are held for Outside Directors in advance of each Board

of Directors’ meeting for the following purposes: to ensure that they fully understand

the details and background of each agenda item to be submitted to the Board of

Directors, its position in the medium- to long-term management plan, and other

relevant information, and to ensure that the Board of Directors holds substantial

deliberations. Honda also provides opportunities for information sharing and

discussion among Directors on important matters such as the status of company-

wide risk management and the progress of the medium- to long-term management

plan, as appropriate.

3. Opinion exchange meetings on matters of management concern

Honda holds opinion exchange meetings for Directors regarding matters of concern

to management. These meetings aim to share with Outside Directors an awareness

of the Honda Group’s long-term challenges and directions to be pursued and to

deepen their understanding of management initiatives. Such meetings are also

intended to utilize the knowledge of Outside Directors in discussing future

management policies.

4. Dialogue with Executive Ofﬁcers/dialogue among Outside Directors

To facilitate forthright communication among Directors, Honda provides opportunities

for dialogue between Outside Directors and Executive Ofﬁcers or Inside Directors, as

well as dialogue among Outside Directors as needed.

5. Inspection visits to business sites

Honda arranges inspection visits to its plants and other business sites as necessary

to promote Outside Directors’ understanding of the Company’s business.

Corporate Governance

Outside Directors

Honda appoints Outside Directors who have abundant experience and deep insight

and who are capable of overseeing the business management of the Company from

an objective, highly sophisticated, and broad viewpoint thanks to their independent

position outside the Company. The Company has at least two Outside Directors, and

at least one-third of the members of the Board of Directors are Independent

Directors who fulﬁll the Company’s Criteria for the Independence of Outside

Directors. All ﬁve Outside Directors currently in ofﬁce satisfy the Criteria for

Independence of Outside Directors and their interests are not in conﬂict with those of

the Company or the shareholders. The ﬁve Outside Directors are speciﬁed as

Independent Directors as prescribed by a provision of the Tokyo Stock Exchange

(TSE). The names of these Directors have been submitted to the TSE.

Please see “Honda Corporate Governance Basic Policies” for Honda’s Criteria

for the Independence of Outside Directors. (Please use the link below.) If any Outside

Director also serves as an ofﬁcer at another listed company, such Director shall only

serve at four companies other than the Company so that they can secure sufﬁcient

time to perform their duties for the Company.

“Honda Corporate Governance Basic Policies”

https://global.honda/investors/policy/governance.html

Inspection of the Saitama Factory’s assembly plant

5 Governance

Corporate Governance

��

111

Compliance

��

124

Risk Management

��

127

2-9, 2-15, 2-17

116

Honda ESG Data Book

2023

Contents Editorial Policy

1

Honda’s

Sustainability

2

Environment

3

Social

4

Performance

Data

6

Data

7

Governance

5

Corporate Governance Tax Policy

Honda provides training in the Companies Act, corporate governance, etc., to

Operating Ofﬁcers who are prospective Director candidates. After they assume their

positions as Directors, the Company also provides them with training to continually

update their knowledge as necessary. Honda provides training in industry trends, as

well as the Company’s history, business, ﬁnances, organizations, internal control

system, and other matters to newly appointed Outside Directors. After they assume

their positions as Directors, the Company also provides them with additional

opportunities, including visits to subsidiaries, to deepen their understanding of the

Honda Group’s business.

Director and Operating Ofﬁcer Training

Business Execution (Organizational

Management)

To strengthen regional and on-site business execution and to make prompt and

appropriate management decisions, Honda assigns Executive Ofﬁcers and other

business execution managers to each regional, business, and functional divisions

and key organizational units, who are delegated authority by the Representative

Executive Ofﬁcers and are responsible for executing operations in their areas of

responsibility.

The Honda Tax Policy prescribes the basic stance and idea regarding taxes for

Honda Motor Co., Ltd. and its consolidated subsidiaries. The policy aims to

contribute to society as well as maintain and increase corporate value by complying

with the tax laws and regulations, and their intent, for each country and region where

Honda conducts business activities, and by making proper tax payments.

Tax systems of each country and region and international taxation rules are

frequently changed. In this environment, to ensure the conducting of its business in a

stable and proper manner Honda carries out accurate and high-quality tax affairs and

responds to tax risks associated with its businesses in accordance with the Tax

Policy. For details, please refer to the Honda Tax Policy. (Please refer to the link

below.)

Honda Tax Policy

p. 152

5 Governance

Corporate Governance

��

111

Compliance

��

124

Risk Management

��

127

2-9, 2-15, 2-17, 207-1, 207-2, 207-3

117

Honda ESG Data Book

2023

Contents Editorial Policy

1

Honda’s

Sustainability

2

Environment

3

Social

4

Performance

Data

6

Data

7

Governance

5

Remuneration of Directors

The Company views remuneration for Directors and Executive Ofﬁcers, the key to its

corporate governance, as an important driving force in realizing our fundamental

beliefs, management policies, and aspirations. The Compensation Committee has

established the following decision-making policy to encourage appropriate risk-taking

and accurately reﬂect management responsibility to promote speedy reforms and

thus achieve our vision amidst a rapidly changing environment.

The Company’s remuneration structure for Directors and Executive Ofﬁcers is

designed to motivate employees to contribute to the improvement of the Company’s

business performance not only over the short-term but also over the medium- to

long-term so that the Company can continuously enhance its corporate value. The

structure consists of monthly remuneration, a ﬁxed amount paid each month as

remuneration for the execution of duties, a short-term incentive (STI) based on

business performance for the relevant ﬁscal year, and a long-term incentive (LTI)

based on medium- to long-term business performance.

Monthly remuneration shall be paid as a ﬁxed amount each month based on the

remuneration standards decided by the Compensation Committee.

STI shall be determined and paid by the resolution of the Compensation

Committee, taking into consideration the business’s performance in each ﬁscal year.

Based on the standards and procedures approved by the Compensation

Committee, LTI is based on the business’s medium- to long-term performance and

paid in the form of Company shares and cash to function as a sound incentive for

sustainable growth.

The remuneration paid to Directors who concurrently serve as Directors and

Executive Ofﬁcers shall consist of monthly remuneration, STI, and LTI. The

composition rate shall be determined based on the remuneration standards decided

by the Compensation Committee. The composition ratio of variable compensation

shall increase according to the responsibilities assumed by the individual.

The remuneration paid to Outside Directors and other Directors who do not

concurrently serve as Executive Ofﬁcers shall consist only of monthly remuneration.

To advance the Company’s sustainable growth and enhance its corporate value

over the medium-to long-term from shareholders’ perspectives, even Directors and

Executive Ofﬁcers who are ineligible for LTI shall acquire the Company’s stock by

contributing a certain portion of their remuneration to the Ofﬁcers Shareholding

Association.

Throughout their term of ofﬁce and for one year after their retirement, Directors

and Executive Ofﬁcers shall continuously hold Company stock acquired as LTI or

through the Ofﬁcers Shareholding Association.

Please see Article 13 of “Honda Corporate Governance Basic Policies” for

information on the policy for determining remuneration for Directors. (Please use the

link below.)

Total remuneration for Directors and Executive Ofﬁcers

p. 151

Annual total remuneration and bonuses for the highest-paid individual

(President and Representative Executive Ofﬁcer, Chief Executive Ofﬁcer) (Japan)

p. 151

Rate of increase in annual total remuneration and bonuses of the highest-paid individual

(President and Representative Executive Ofﬁcer, Chief Executive Ofﬁcer) (Japan)

p. 151

“Honda Corporate Governance Basic Policies”

https://global.honda/investors/policy/governance.html

The Company has had its ﬁnancial statements audited in accordance with the

Companies Act of Japan, the Financial Instruments and Exchange Act of Japan, the

Securities Exchange Act of 1934 (United States) and the Exchange Act of 1933

(United States) by KPMG AZSA LLC.

Within KPMG AZSA LLC, a total of 80 staff members conducted external audits

of the Company’s ﬁnancial statements. These accounting ﬁrm staff members are

composed of 3 certiﬁed public accountants (Masahiko Chino, Isao Kamizuka and

Takeshi Kamada), who are in overall charge of the Outside Audits, and 77

professional staff members (including 24 certiﬁed public accountants and 53 other

staff members).

In deciding the amount of remuneration for services rendered by the Accounting

Auditor, various factors are taken into consideration in discussions with the

accounting ﬁrm, including the Company’s size/characteristics, the time schedule for

the audit and other matters. In addition, to preserve the independence of the

Accounting Auditor, remuneration to be paid is required to obtain the prior approval

of the Audit Committee.

Remuneration of Accounting Auditors

5 Governance

Corporate Governance

��

111

Compliance

��

124

Risk Management

��

127

2-9, 2-15, 2-17

118

Honda ESG Data Book

2023

Contents Editorial Policy

1

Honda’s

Sustainability

2

Environment

3

Social

4

Performance

Data

6

Data

7

Governance

5

Directors

(as of June 21, 2023)

Apr. 1986 Joined Honda Motor Co., Ltd.

Apr. 2012 Operating Ofﬁcer

Apr. 2013 Chief Ofﬁcer for Motorcycle Operations

Jun. 2013 Operating Ofﬁcer and Director

Apr. 2017 Chief Ofﬁcer for Regional Operations

(Asia & Oceania)

Apr. 2017 President, Chief Executive Ofﬁcer and

Director of Asian Honda Motor Co., Ltd.

Jun. 2017 Operating Ofﬁcer of the Company

(resigned from position as Director)

Apr. 2018 Managing Ofﬁcer

Apr. 2018 Vice Chief Ofﬁcer for Regional

Operations (North America)

Apr. 2018 Senior Executive Vice President, Chief

Operating Ofﬁcer and Director of

Honda North America, Inc.

Apr. 2018 Senior Executive Vice President, Chief

Operating Ofﬁcer and Director of

American Honda Motor Co., Inc.

Nov. 2018 President, Chief Operating Ofﬁcer and

Director of Honda North America, Inc.

Nov. 2018 President, Chief Operating Ofﬁcer and

Director of American Honda Motor Co.,

Inc.

Apr. 2019 Chief Ofﬁcer for Regional Operations

(North America) of the Company

Apr. 2019 President, Chief Executive Ofﬁcer and

Director of Honda North America, Inc.

Apr. 2019 President, Chief Executive Ofﬁcer and

Director of American Honda Motor Co.,

Inc.

Jul. 2021 Managing Ofﬁcer in Charge of

Electriﬁcation of the Company

Oct. 2021 Managing Executive Ofﬁcer

Apr. 2022 Senior Managing Executive Ofﬁcer

Apr. 2022 Chief Ofﬁcer for Business Development

Operations

Apr. 2022 Corporate Brand Ofﬁcer

Jun. 2022 Chief Ofﬁcer for Automobile Operations

Jun. 2022 Director and Senior Managing

Executive Ofﬁcer

Apr. 2023 Director, Executive Vice President and

Representative Executive Ofﬁcer

(present)

Apr. 2023 Chief Operating Ofﬁcer (present)

Apr. 2023 Member of the Compensation

Committee (present)

Apr. 2023 Risk Management Ofﬁcer (present)

Apr. 2023 In Charge of Government and Industry

Relations (present)

Director, Executive Vice President and Representative Executive Ofﬁcer

Shinji Aoyama

Member of the Compensation Committee

Chief Operating Ofﬁcer

Risk Management Ofﬁcer

In Charge of Government and Industry Relations

Reasons for Appointment

Mr. Shinji Aoyama has broad experience primarily in the area of sales and marketing in the Motorcycle

Operations, as well as abundant international experience, and is familiar with the Company Group’s

business including overseas operations. In the ﬁscal year ended March 31, 2023, he has properly

fulﬁlled his duties as Chief Ofﬁcer for Automobile Operations and Chief Ofﬁcer for Business

Development Operations by demonstrating strong leadership and contributing to the business from a

global perspective, as well as overseeing business execution.

Apr. 1982 Joined Honda Motor Co., Ltd.

Jun. 2010 Director

Apr. 2011 Operating Ofﬁcer and Director

Jun. 2011 Operating Ofﬁcer (resigned from

position as Director)

Nov. 2013 President of Honda Motor (China)

Technology Co., Ltd.

Apr. 2014 Managing Ofﬁcer of the Company

Apr. 2016 Senior Managing Ofﬁcer

Jun. 2016 Executive Vice President, Executive

Ofﬁcer and Representative Director

Jun. 2016 Risk Management Ofﬁcer

Jun. 2016 Corporate Brand Ofﬁcer

Apr. 2017 Chief Operating Ofﬁcer

Apr. 2017 Ofﬁcer in Charge of Strategy, Business

Operations and Regional Operations

Jun. 2017 Executive Vice President and

Representative Director

Apr. 2019 Director in Charge of Strategy,

Business Operations and Regional

Operations

Apr. 2019 Chief Ofﬁcer for Automobile Operations

Jun. 2021 Director, Executive Vice President and

Representative Executive Ofﬁcer

Jun. 2021 Member of the Compensation

Committee

Apr. 2022 Chairman and Director (present)

Apr. 2022 Chairman of the Board of Directors

(present)

Chairman and Director

Seiji Kuraishi

Chairman of the Board of Directors

Reasons for Appointment

Mr. Seiji Kuraishi has broad experience primarily in the areas of supply chain management and sales

and marketing, as well as abundant international experience, and is familiar with the Company

Group’s business including overseas operations. In the ﬁscal year ended March 31, 2023, he has

properly fulﬁlled his duties as Chairman of the Board of Directors through managing the Board of

Directors and overseeing business execution from a global perspective.

Apr. 1987 Joined Honda Motor Co., Ltd.

Apr. 2014 Operating Ofﬁcer

Apr. 2014 Executive in Charge of Powertrain

Business for Automobile Operations

Apr. 2014 Head of Powertrain Production

Supervisory Unit of Automobile

Production for Automobile Operations

Apr. 2015 Executive in Charge of Powertrain

Business and Drivetrain Business for

Automobile Operations

Apr. 2015 Head of Drivetrain Business Unit in

Automobile Production for Automobile

Operations

Apr. 2016 Senior Managing Ofﬁcer and Director of

Honda R&D Co., Ltd.

Apr. 2018 Managing Ofﬁcer of the Company

Apr. 2018 Executive Vice President and Director

of Honda R&D Co., Ltd.

Apr. 2019 President and Representative Director

of Honda R&D Co., Ltd.

Apr. 2019 Ofﬁcer in Charge of Intellectual Property

and Standardization of the Company

Apr. 2020 Senior Managing Ofﬁcer

Apr. 2020 Ofﬁcer in Charge of Mono-zukuri (R&D,

Production, Purchasing, Quality, Parts,

Service, Intellectual Property,

Standardization and IT)

Apr. 2020 Risk Management Ofﬁcer

Jun. 2020 Senior Managing Director

Jun. 2020 Director in Charge of Mono-zukuri

(R&D, Production, Purchasing, Quality,

Parts, Service, Intellectual Property,

Standardization and IT)

Apr. 2021 President and Representative Director

Apr. 2021 Chief Executive Ofﬁcer (present)

Jun. 2021 Director, President and Representative

Executive Ofﬁcer (present)

Jun. 2021 Member of the Nominating Committee

(present)

Director, President and Representative Executive Ofﬁcer

Toshihiro Mibe

Member of the Nominating Committee

Chief Executive Ofﬁcer

Reasons for Appointment

Mr. Toshihiro Mibe has broad experience primarily in the areas of R&D and production, and is familiar

with the Company Group’s business including overseas operations. In the ﬁscal year ended March

31, 2023, he has properly fulﬁlled his duties as Director, President and Representative Executive

Ofﬁcer, and Chief Executive Ofﬁcer of the Company by demonstrating strong leadership and being

responsible for the management of the entire Company Group, as well as overseeing business

execution.

5 Governance

Corporate Governance

��

111

Compliance

��

124

Risk Management

��

127

2-9, 2-10, 2-11, 2-15, 2-17

119

Honda ESG Data Book

2023

Contents Editorial Policy

1

Honda’s

Sustainability

2

Environment

3

Social

4

Performance

Data

6

Data

7

Governance

5

Directors

(as of June 21, 2023)

Director, Senior Managing Executive Ofﬁcer

Noriya Kaihara

Chief Ofﬁcer for Regional Operations (North America)

President, Chief Executive Ofﬁcer and Director of American Honda Motor Co., Inc.

Reasons for Appointment

Mr. Noriya Kaihara has broad experience primarily in the areas of service, quality, and purchasing, as

well as abundant international experience, and is familiar with the Company Group’s business including

overseas operations. In the ﬁscal year ended March 31, 2023, he demonstrated strong leadership to

increase the joy of customers as an ofﬁcer responsible for North America, and has achieved

satisfactory results through contributing to the business from a global perspective.

Apr. 1984 Joined Honda Motor Co., Ltd.

Apr. 2012 General Manager of the Automobile

Quality Assurance Division

Apr. 2013 Operating Ofﬁcer

Apr. 2013 Chief Quality Ofﬁcer

Jun. 2013 Operating Ofﬁcer and Director

Apr. 2014 Chief Ofﬁcer for Customer Service

Operations

Apr. 2014 Head of Service Supervisory Unit for

Automobile Operations

Apr. 2016 Chief Ofﬁcer for Customer First

Operations

Jun. 2017 Operating Ofﬁcer (resigned from

position as Director)

Apr. 2018 Managing Ofﬁcer

Apr. 2018 Chief Ofﬁcer for Purchasing Operations

Apr. 2020 Head of the Business Supervisory Unit,

Automobile Operations

Apr. 2021 Chief Ofﬁcer for Customer First

Operations

Apr. 2021 Risk Management Ofﬁcer

Jun. 2021 Managing Executive Ofﬁcer

Oct. 2021 Managing Ofﬁcer

Oct. 2021 Chief Ofﬁcer for Regional Operations

(North America) (present)

Oct. 2021 President, Chief Executive Ofﬁcer and

Director, American Honda Motor Co.,

Inc. (present)

Apr. 2023 Senior Managing Executive Ofﬁcer of

the Company

Jun. 2023 Director, Senior Managing Executive

Ofﬁcer of the Company (present)

Director

Asako Suzuki

Member of the Audit Committee (Full-time)

Reasons for Appointment

Ms. Asako Suzuki has broad experience primarily in the areas of sales and marketing, accounting and

ﬁnance, human resources and corporate governance, as well as abundant international experience,

and is familiar with the Company Group’s business including overseas operations. In the ﬁscal year

ended March 31, 2023, she has properly fulﬁlled her duties as Director and a Member of the Audit

Committee by auditing and overseeing the execution of duties by Directors and Executive Ofﬁcers.

Apr. 1987 Joined Honda Motor Co., Ltd.

Apr. 2014 President of Dongfeng Honda

Automobile Co., Ltd.

Apr. 2016 Operating Ofﬁcer of the Company

Apr. 2018 Vice Chief Ofﬁcer for Regional

Operations (Japan)

Apr. 2019 Chief Ofﬁcer for Human Resources and

Corporate Governance Operations

Apr. 2020 Operating Executive

Jun. 2021 Director (present)

Jun. 2021 Member of the Audit Committee

(Full-time) (present)

Apr. 1979 Public Prosecutor of Tokyo District

Public Prosecutors’ Ofﬁce

Jun. 2012 President of Research and Training

Institute of Ministry of Justice

Jul. 2014 Superintending Prosecutor of

Takamatsu High Public Prosecutors’

Ofﬁce

Sep. 2016 Superintending Prosecutor of

Hiroshima High Public Prosecutors’

Ofﬁce (resigned in March 2017)

Apr. 2017 Registered with the Dai-Ichi Tokyo Bar

Association

Apr. 2017 Advisor Attorney to TMI Associates

(present)

Jun. 2018 Audit and Supervisory Board Member

(Outside) of Furukawa Electric Co., Ltd.

(present)

Jun. 2019 Outside Director (Audit and Supervisory

Committee Member) of the Company

Jun. 2021 Outside Director (present)

Jun. 2021 Member of the Nominating Committee

(present)

Jun. 2021 Member of the Audit Committee

(present)

Director

Kunihiko Sakai

Member of the Nominating Committee

Member of the Audit Committee

Reasons for Appointment

Mr. Kunihiko Sakai has high expertise and abundant experience as a legal affairs specialist having

served as Public Prosecutor and a lawyer, including posts of Superintending Prosecutor at High Public

Prosecutors’ Ofﬁces from July 2014 to March 2017. He has properly fulﬁlled his duties as Outside

Director who is an Audit and Supervisory Committee Member since June 2019, and as Outside

Director and a Member of the Nominating Committee and the Audit Committee since June 2021, by

auditing and overseeing the entire business management of the Company from an independent

standpoint.

Director

Masafumi Suzuki

Member of the Audit Committee (Full-time)

Reasons for Appointment

Mr. Masafumi Suzuki held the position of General Manager of Accounting Division for Business

Management Operations of the Company. He has high expertise and abundant experience in the areas

of accounting and ﬁnance, and is familiar with the Company Group’s business including overseas

operations. In the ﬁscal year ended March 31, 2023, he has properly fulﬁlled his duties as Director and

a Member of the Audit Committee by auditing and overseeing the execution of duties by Directors and

Executive Ofﬁcers.

Apr. 1987 Joined Honda Motor Co., Ltd.

Apr. 2012 General Manager of Regional Operation

Planning Ofﬁce for Regional Operations

(Europe, CIS, the Middle & Near East

and Africa)

Apr. 2013 General Manager of Accounting

Division for Business Management

Operations

Jun. 2017 Director (Full-time Audit and

Supervisory Committee Member)

Jun. 2021 Director (present)

Jun. 2021 Member of the Audit Committee

(Full-time) (present)

5 Governance

Corporate Governance

��

111

Compliance

��

124

Risk Management

��

127

2-9, 2-10, 2-15, 2-17

120

Honda ESG Data Book

2023

Contents Editorial Policy

1

Honda’s

Sustainability

2

Environment

3

Social

4

Performance

Data

6

Data

7

Governance

5

Directors

(as of June 21, 2023)

5 Governance

Corporate Governance

��

111

Compliance

��

124

Risk Management

��

127

2-9, 2-10, 2-15, 2-17

Director

Fumiya Kokubu

Member of the Nominating Committee (Chairperson)

Member of the Compensation Committee

Reasons for Appointment

Mr. Fumiya Kokubu held positions of President and CEO, and Chairman of the Board of Marubeni

Corporation from 2013, and has abundant experience and deep insight regarding corporate

management. He has properly fulﬁlled his duties as Outside Director since June 2020, and as Outside

Director, the Chairperson of the Nominating Committee and a Member of the Compensation

Committee since June 2021 by overseeing the entire business management of the Company from an

independent standpoint.

Apr. 1975 Joined Marubeni Corporation

Apr. 2013 President and CEO, Member of the

Board of Marubeni Corporation

Apr. 2019 Chairman of the Board of Marubeni

Corporation (present)

Jun. 2019 Outside Director of Taisei Corporation

(present)

Jun. 2020 Outside Director of the Company

(present)

Jun. 2021 Member of the Nominating Committee

(Chairperson) (present)

Jun. 2021 Member of the Compensation

Committee (present)

May 2022 Chairman of Japan Machinery Center

for Trade and Investment (present)

May 2022 Chairman of Japan Foreign Trade

Council, Inc. (present)

Director

Ryoko Nagata

Member of the Audit Committee

Reasons for Appointment

Ms. Ryoko Nagata held positions of Executive Ofﬁcer and Audit & Supervisory Board Member of Japan

Tobacco Inc. from 2008 to March 2023, and has abundant experience and deep insight regarding

corporate management and audit. She has properly fulﬁlled her duties as Outside Director and a

Member of the Audit Committee since June 2021 by auditing and overseeing the entire business

management of the Company from an independent standpoint.

Apr. 1987 Joined Japan Tobacco Inc.

Jun. 2008 Executive Ofﬁcer of Japan Tobacco Inc.

Mar. 2018 Standing Audit & Supervisory Board

Member of Japan Tobacco Inc.

(resigned in March 2023)

Jun. 2021 Outside Director of the Company

(present)

Jun. 2021 Member of the Audit Committee

(present)

Mar. 2023 External Corporate Auditor of Medley,

Inc. (present)

Director

Yoichiro Ogawa

Member of the Audit Committee (Chairperson)

Member of the Compensation Committee

Reasons for Appointment

Mr. Yoichiro Ogawa has high expertise and abundant experience as an accounting specialist having

served as a Certiﬁed Public Accountant for many years, including posts of CEO of Deloitte Tohmatsu

Group from July 2015 to May 2018. He has properly fulﬁlled his duties as Outside Director, the

Chairperson of the Audit Committee and a Member of the Compensation Committee since June 2021

by auditing and overseeing the entire business management of the Company from an independent

standpoint.

Oct. 1980 Joined Tohmatsu & Aoki Audit

Corporation (currently Deloitte Touche

Tohmatsu LLC)

Mar. 1984 Registered as Japanese Certiﬁed Public

Accountant

Oct. 2013 Deputy CEO of Deloitte Touche

Tohmatsu LLC

Oct. 2013 Deputy CEO of Tohmatsu Group

(currently Deloitte Tohmatsu Group)

Jun. 2015 Global Managing Director for Asia

Paciﬁc of Deloitte Touche Tohmatsu

Limited (United Kingdom) (resigned in

May 2018)

Jul. 2015 CEO of Deloitte Tohmatsu Group

Jun. 2018 Senior Advisor of Deloitte Tohmatsu

Group (resigned in October 2018)

Nov. 2018 Founder of Yoichiro Ogawa CPA Ofﬁce

(present)

Jun. 2020 Outside Audit & Supervisory Board

Member of Recruit Holdings Co., Ltd.

(present)

Jun. 2021 Outside Director of the Company

(present)

Jun. 2021 Member of the Audit Committee

(Chairperson) (present)

Jun. 2021 Member of the Compensation

Committee (present)

Director

Kazuhiro Higashi

Member of the Nominating Committee

Member of the Compensation Committee (Chairperson)

Reasons for Appointment

Mr. Kazuhiro Higashi held positions of President and Chairman of Resona Holdings, Inc. from April

2013 to June 2022, and has abundant experience and deep insight regarding corporate management.

He has properly fulﬁlled his duties as Outside Director, the Chairperson of the Compensation

Committee and a Member of the Nominating Committee since June 2021 by overseeing the entire

business management of the Company from an independent standpoint.

Apr. 1982 Joined Resona Group

Apr. 2013 Director of Resona Holdings Inc.

Apr. 2013 President and Representative, Executive

Ofﬁcer of Resona Holdings, Inc.

Apr. 2013 Representative Director, President and

Executive Ofﬁcer of Resona Bank,

Limited

Jun. 2013 Chairman of Osaka Bankers

Association (resigned in June 2014)

Apr. 2017 Chairman of the Board, President and

Representative Director of Resona

Bank, Limited

Jun. 2017 Chairman of Osaka Bankers

Association (resigned in June 2018)

Apr. 2018 Chairman of the Board, President,

Representative Director and Executive

Ofﬁcer of Resona Bank, Limited

Apr. 2020 Chairman and Director of Resona

Holdings, Inc. (resigned in June 2022)

Apr. 2020 Chairman and Director of Resona

Bank, Limited (resigned in June 2022)

Jun. 2020 Outside Director of Sompo Holdings,

Inc. (present)

Jun. 2021 Outside Director of the Company

(present)

Jun. 2021 Member of the Nominating Committee

(present)

Jun. 2021 Member of the Compensation

Committee (Chairperson) (present)

Jun. 2022 Senior Advisor of Resona Holdings, Inc.

(present)

Jun. 2022 Senior Advisor of Resona Bank, Limited

(present)

121

Honda ESG Data Book

2023

Contents Editorial Policy

1

Honda’s

Sustainability

2

Environment

3

Social

4

Performance

Data

6

Data

7

Governance

5

Skills Matrix

Name Position

Committee

* Chairperson

indicated in red

Corporate

management Internationality

Industrial

experience

New business

strategies HR

Accounting &

ﬁnance

Legal & risk

management

ESG &

sustainability

Seiji Kuraishi

Chairman and Director -

Toshihiro Mibe

Director,

President and Representative

Executive Ofﬁcer

Nominating

Shinji Aoyama

Director,

Executive Vice President and

Representative Executive Ofﬁcer

Compensation

Noriya Kaihara

Director,

Senior Managing Executive

Ofﬁcer

-

Asako Suzuki

Director (inside) Audit

Masafumi Suzuki

Director (inside) Audit

Kunihiko Sakai

Director (outside)

Nominating/

Audit

Fumiya Kokubu

Director (outside)

Nominating/

Compensation

Yoichiro Ogawa

Director (outside)

Audit/

Compensation

Kazuhiro Higashi

Director (outside)

Nominating/

Compensation

Ryoko Nagata

Director (outside) Audit

5 Governance

Corporate Governance

��

111

Compliance

��

124

Risk Management

��

127

2-9, 2-10, 2-15, 2-17

122

Honda ESG Data Book

2023

Contents Editorial Policy

1

Honda’s

Sustainability

2

Environment

3

Social

4

Performance

Data

6

Data

7

Governance

5

Executive Ofﬁcers

(as of April 1, 2023)

Executive Ofﬁcer

Eiji Fujimura

Chief Financial Ofﬁcer

Chief Ofﬁcer, Corporate Management

Operations

Managing Executive Ofﬁcer

Keiji Ohtsu

President and Representative Director,

Honda R&D Co., Ltd.

Managing Executive Ofﬁcer

Hironao Ito

Head, BEV Development Center,

Electriﬁcation Business Development

Operations

Head, Automobile Development Center,

Automobile Operations

Director, Honda R&D Co., Ltd.

Managing Executive Ofﬁcer

Taro Kobayashi

Chief Ofﬁcer, Automobile Operations

Chief Ofﬁcer, Regional Operations

(Associated Regions)

Managing Executive Ofﬁcer

Manabu Ozawa

Chief Ofﬁcer, Corporate Strategy

Operations

Senior Managing Executive Ofﬁcer

Katsushi Inoue

Chief Ofﬁcer, Electriﬁcation Business

Development Operations

Managing Executive Ofﬁcer

Mitsugu Matsukawa

President and Director, Honda Development

& Manufacturing of America, LLC

Managing Executive Ofﬁcer

Noriaki Abe

Chief Ofﬁcer, Motorcycle and Power

Products Operations

Chief Ofﬁcer, Trafﬁc Safety Promotion

Operations

Compliance Ofﬁcer

Managing Executive Ofﬁcer

Masayuki Igarashi

Chief Ofﬁcer, Regional Operations (China)

President, Honda Motor (China)

Investment Co., Ltd.

President, Honda Motor (China)

Technology Co., Ltd.

Managing Executive Ofﬁcer

Kensuke Oe

Head, Production Unit, Automobile

Operations

5 Governance

Corporate Governance

��

111

Compliance

��

124

Risk Management

��

127

2-9, 2-10, 2-15, 2-17

123

Honda ESG Data Book

2023

Contents Editorial Policy

1

Honda’s

Sustainability

2

Environment

3

Social

4

Performance

Data

6

Data

7

Governance

5

Honda 1 行動規範

社長メッセージ

　創業以来、Hondaは、基本理念である「人間尊重」と「三つの喜び」を基軸に世界の人々と喜びを

分かち合い、「存在を期待される企業」となることを目指してきました。今では、二輪・四輪・ライフ

クリエーションそれぞれの領域で、世界中の多くのお客様にさまざまな製品を通じた価値を提供する

ことができるようになっています。このように成長できたのも、わたしたちが常にお客様や社会に

対し誠実に接してきた結果と考えています。Hondaは、2016年に世界中のHondaで働く全ての人々

が実践するべき誠実な行動をまとめたものとして「Honda行動規範」を制定しました。皆さんが

「Honda行動規範」を理解し、日々の業務や行動で実践されていると感じています。

　Hondaの事業を取り巻く環境は大きな変革期を迎え、環境や安全へのさらなる取り組みが喫緊の課

題となっています。Hondaも社会からの期待に早いスピードで応えていかなければなりません。また、

将来に向けては、Hondaの強みである「独創性」を最大限に生かして、空、海洋、宇宙、ロボットと

いった領域へも挑戦し、新たな価値を提供し続けていきます。

　これらの実現においても、まずお客様や社会に対し誠実で倫理的であることが重要です。たとえ、

どんなに優れた製品やサービスを提供できたとしても、わたしたちの行動が誠実で倫理的でなければ、

お客様や社会からの信頼や共感を得ることはできず、Hondaのさらなる成長は見込めません。

　どのような環境の中であっても、常にお客様や社会に誠実であることがHondaを支える原点であり、

不変の考え方です。引き続き、一人ひとりの行動がHondaを代表しているとの自覚を強く持ち、「Honda

行動規範」に従った誠実で倫理的な行動を実践していただくようお願いします。

取締役代表執行役社長

010_0771569932110.indd 1010_0771569932110.indd 1 2021/08/02 18:51:352021/08/02 18:51:35

Honda

行動規範

010_0771569932110.indd 1010_0771569932110.indd 1 2021/08/02 18:51:352021/08/02 18:51:35

Honda Code of Conduct In-house newsletters

Honda Code of Conduct

https://global.honda/about/codeofconduct.html

5 Governance

Corporate Governance

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Compliance

��

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Risk Management

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127

2-27, 206-1, 406-1, 417-3

Honda Code of Conduct Compliance Committee

To earn the trust of customers and society and achieve sustainable growth, we must

not only comply with laws and regulations but also practice sincere and ethical

conduct.

Recognizing this, Honda has formulated the Honda Code of Conduct, which

summarizes the integrity of conduct to be practiced by all Honda associates around

the world, and shares it throughout the Group, including subsidiaries in Japan and

overseas.

The Company works to instill the Honda Code of Conduct in each and every

associate through awareness-raising activities such as distribution of leaﬂets and

posters, publication of in-house newsletters, distributing educational videos, and

introducing case studies and other information on the intranet, as well as conducting

training sessions. The status of these activities is regularly reported to the

Compliance Committee after conﬁrmation by each division and subsidiary of the

Company.

To improve compliance in the Honda Group, Honda has established a Compliance

Committee, headed by a Compliance Ofﬁcer designated by the Board of Directors.

This Committee is composed of the Compliance Ofﬁcer as well as Executive Ofﬁcers

and other Executives who are appointed by the Executive Council. The Committee

determines important measures for the internal control system, including the

formulation and revision of compliance policies, checks the status of the

development and operation of the internal control system, supervises the proper

operation of the Business Ethics Kaizen Proposal Line, and decides measures to

prevent recurrences of serious compliance-related matters when they arise. When a

particularly important compliance-related matter arises, it will be deliberated or

reported at a meeting of the Executive Council or the Board of Directors, depending

on the nature of the matter.

The Compliance Committee met ﬁve times (four regular meetings and one

extraordinary meeting) in FY2023 to report on the status of development and

operation of internal control systems as well as the operation status of the Business

Ethics Kaizen Proposal Line, among other things. There were no major violations of

laws or regulations in FY2023.

124

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Contents Editorial Policy

1

Honda’s

Sustainability

2

Environment

3

Social

4

Performance

Data

6

Data

7

Governance

5

5 Governance

Corporate Governance

��

111

Compliance

��

124

Risk Management

��

127

2-25, 2-26, 2-27, 205-1, 205-2, 205-3, 406-1, 417-3, 419-1

Business Ethics Kaizen Proposal Line Initiatives to Prevent Bribery and

Corruption

Honda established the Business Ethics Kaizen Proposal Line as a structure for

improving corporate ethics issues. This hotline accepts proposals and provides

consultation from a fair and neutral standpoint, for any violations of laws/regulations

or internal rules in the workplace, and issues that are difﬁcult for associates to

remedy or resolve in the workplace for some reason, such as difﬁculties in consulting

with their superiors.

Furthermore, in addition to cases of a clear violation of laws/regulations or

internal rules, this hotline provides consultation and responds to inquiries about the

details of internal rules when questionable cases have occurred and engages in fact

checking related to such cases. Proposals are accepted by email, letter, telephone or

fax from all subsidiaries and suppliers in Japan and overseas, as well as from the

parent company. This hotline ensures protection of the Kaizen proposers and

accepts also anonymous proposals.

Moreover, the Company established a point of contact within an external law

ofﬁce to facilitate associates to submit proposals. As for overseas, local points of

contact have been established in all Regional Operations, while some subsidiaries

set up their own points of contact.

In FY2023, 333 proposals and consultations were handled by the Business

Ethics Kaizen Proposal Line (including points of contact outside the Company).

Among these, 164 concerned the parent company, 160 concerned subsidiaries and

9 concerned other matters.

Following investigations of the proposals and consultations submitted,

disciplinary action was taken in four cases in the parent company and six cases in

subsidiaries. There was no case involving the Company that resulted in punitive

dismissal. None of the cases involved violations of the Honda Policy on the

Prevention of Bribery.

In order to raise internal awareness of the points of contact, Honda provides

notice on its intranet, distributes information cards to all associates, including ﬁxed-

term employees and temporary workers, and displays information posters in each

workplace. These tools clearly state that the Kaizen proposers are protected. In

addition, Honda observes how well these points of contact are recognized through

an annual associate vitality survey for all associates. For departments found in these

surveys to have low recognition of the points of contact, the Company makes

additional efforts to increase their awareness.

Honda prohibits bribery and corruption.

The Honda Code of Conduct requires that the Company complies with laws

and regulations, and states that “as an independent corporate entity, Honda

maintains appropriate relationships with political entities (political organizations and

politicians) and administrative entities (governmental agencies and government

ofﬁcials)” and “will interact with political and administrative entities in an appropriate

manner in compliance with laws, regulations and company policies and will not offer

politicians or government ofﬁcials entertainment or gifts (both monetary and non-

monetary) that are prohibited by laws, regulations and company policies.” Moreover,

the Code stipulates that the associates “will not receive from or provide to business

partners beneﬁts in the form of goods (both monetary and non-monetary) or

entertainment beyond what is generally considered appropriate by society.”

In addition to the above, the Company also established the Honda Policy on the

Prevention of Bribery and Corruption, which stipulates basic policy about bribery and

corruption, and the Honda Guideline for the Prevention of Bribery and Corruption,

which stipulates speciﬁc compliance items and prohibited items. These are posted

on the intranet for Honda associates along with related educational content.

Honda strives to further reduce the risk of bribery and corruption by educating

all associates on the bribery and corruption prevention through awareness-raising

activities in accordance with the Honda Code of Conduct, and by providing training

to personnel stationed overseas and newly appointed managers based on their

positions and roles. Regarding its subsidiaries, Honda has launched training

programs, matched to conditions in each company, aimed at raising awareness.

125

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1

Honda’s

Sustainability

2

Environment

3

Social

4

Performance

Data

6

Data

7

Governance

5

From the IR Library website “Form SD/Conﬂict Minerals Report”

https://global.honda/investors/library.html

Honda Supplier Sustainability Guidelines

https://global.honda/sustainability/cq_img/report/pdf/supply-chain/supplier-sustainability-guidelines.pdf

The rules for disclosure on conﬂict minerals adopted by the U.S. Securities and

Exchange Commission (SEC) and mandated by the Dodd-Frank Wall Street Reform

and the Consumer Protection Act (Dodd-Frank Act) require corporations to conﬁrm

that the purchase and use of conﬂict minerals from the Democratic Republic of the

Congo and adjoining countries are not contributing to the funding of armed groups

or the abuse of human rights in the region.

Honda aims to be ‘conﬂict-free’ by not using conﬂict minerals associated with

illicit activities such as funding armed groups and human rights violations in conﬂict

zones.

Rules on Conﬂict Minerals

Accordingly, Honda conducts surveys based on the standards prescribed in the

OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from

Conﬂict-Affected and High-Risk Areas. To achieve this goal and help resolve the

global problem of conﬂict minerals, the Company is actively engaged with domestic

and international industry organizations and its suppliers.

To conduct the surveys, Japan Automobile Manufacturers Association, Inc. has

created a manual for suppliers to help them complete the survey forms, as well as

tools to tabulate the survey results.

Also, in collaboration with entities such as the Japan Auto Parts Industries

Association and the Japan Electronics and Information Technology Industries

Association, Honda is examining efﬁcient survey methods and is working to

understand and analyze survey results while regularly implementing various working

activities.

In North America, Honda is working with the Responsible Minerals Initiative

(RMI), an international initiative promoting responsible mineral procurement, to

encourage smelters and reﬁners to participate in the Responsible Minerals Assurance

Process (RMAP).

Honda shares the Honda Supplier Sustainability Guidelines with its suppliers,

which summarize what is expected of them regarding Sustainability activities,

including how to deal with conﬂict minerals, and encourages procurement in line with

the guidelines. Honda is encouraging its tier 1 suppliers to implement the same

initiatives toward their sub-tier suppliers.

Since 2013, Honda has surveyed its suppliers worldwide concerning the use of

conﬂict minerals. In FY2023, Honda received responses from over 7,000 suppliers. In

addition to reporting the survey results to the SEC, the Company also makes them

publicly available on its website. (Please use the link below.)

If the survey reveals any minerals of concern, regardless of the source country,

Honda works together with its suppliers to take appropriate measures. The

Company is also working to improve the accuracy of its survey and requests further

investigation when survey responses are insufﬁcient.

5 Governance

Corporate Governance

��

111

Compliance

��

124

Risk Management

��

127

406-1, 408-1, 409-1, 417-3

Initiatives for Prevention of

Anti-Competitive Behavior

As a company engaged in business globally, Honda takes great care in its daily

business activities to comply with competition laws in the countries where it

operates.

The Honda Code of Conduct states that “Honda will engage in free and open

competition with competitors to maintain its stance as a company trusted by

customers and society” and that each associate “will comply with competition laws

(antitrust laws)” to ensure compliance with competition laws.

As a part of its measures to strengthen compliance, Honda implements

individual training for related departments on anti-competitive behavior. It also

incorporates programs on the topic of anti-competitive behavior in training for

personnel stationed overseas and for newly appointed managers. Additionally,

Honda publishes awareness-raising content concerning anti-competitive behavior on

the Company’s intranet for its associates.

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Contents Editorial Policy

1

Honda’s

Sustainability

2

Environment

3

Social

4

Performance

Data

6

Data

7

Governance

5

Risk Management Committee

The business environment has undergone drastic changes in recent years in all

business categories. Accordingly, the complexity and uncertainty of risks are rising,

which requires effective risk management activities. Honda set up the Risk

Management Committee chaired by a company-wide Risk Management Ofﬁcer

(RMO), to identify, discuss, and monitor important risks from a holistic perspective.

The Risk Management Committee not only identiﬁes internal risks but also

gathers and monitors information on external risk trends associated with changes in

the external environment. The Committee uses internal and external information to

ascertain speciﬁc risk scenarios and conduct impact analyses in relation to Honda’s

business strategies. Based on this objective risk analysis, management members

engage in discussions to determine the response policies and structures for the

company-wide risks that Honda should address that are consistent with its

management strategies.

Of these, risks that are particularly important in terms of business strategy are

designated as company-wide priority risks, and the status of response to these risks

is regularly checked and discussed.

The discussions and monitoring activities of the Risk Management Committee

are reported to the Executive Council in a timely and appropriate manner.

Establishing an Effective Risk

Management Structure

Honda formulated the Honda Global Risk Management Policy with Group

subsidiaries included in its scope of application.

The Honda Global Risk Management Policy aims to drive the Company’s

sustainable growth and stabilize management based on the Honda Philosophy. The

Policy targets all risks with the potential to impact operations on a global scale.

In implementing risk management activities, a company-wide Risk Management

Ofﬁcer, who is elected by the Board of Directors, plays a central role in creating a

relevant framework and taking follow-up measures to ensure that the activities take

root. Honda has established the Risk Management Committee to conduct

deliberations on important matters related to risk management.

In addition, each organization in the Company has set up a risk management

secretariat and established an independent risk management system in accordance

with the basic policies of the regulations, thereby promoting risk management

activities under its own responsibility.

As a key initiative, each organization undertakes risk assessment activities to

identify, evaluate, and address risks using common methods.

Additionally, when a crisis occurs, the Company establishes a Global

Emergency Headquarters proportionate to the anticipated magnitude of the crisis’s

impact to manage the crisis response.

Risk Management Committee

Executive Council

Risk Management Committee

Operations and

Supervisory

Units

(8)

Implementing

response

measures

(2) Specifying risk scenarios /

Setting priority scenarios

(1)

Information

gathering/

monitoring

(1)

Information

gathering/

monitoring

(7) Instructions

for policies

(9)

Proposal/

reporting

(5)

Specifying

response

measures

(4)

Impact

analysis

(3)

Risk

scenario

reﬁnement

External risk

information

Internal risk

information

(6) Determination of response

policies and structures

5 Governance

Corporate Governance

��

111

Compliance

��

124

Risk Management

��

127

Honda ESG Data Book

2023

Contents Editorial Policy

1

Honda’s

Sustainability

2

Environment

3

Social

4

Performance

Data

6

Data

7

Governance

5

Risk Assessment Activity Structure

Executive Council

Risk Management Committee

Operations and Supervisory Units

Operations and

Supervisory Units

Operations and

Supervisory Units

Company-wide priority risks

Risk awareness by top

management (Risks associated

with changes in the external

environment)

Discussion and decision by the Risk Management Committee

Priority risks

Decision of Risk Management Ofﬁcer

Priority risks

Identify and assess risks

Identify priority risks

Risk response

Priority risks

Identify and assess risks

Identify priority risks

Risk response

Business risk

Environmental risk

Legal risk, etc.

Risk items

Status of countermeasures

Frequency of occurrence

Magnitude of impact

Common evaluation criteria

Each Division Each Division

Risk Management Committee

In FY 2023, Honda also identiﬁed company-wide priority risks, which have been

addressed mainly by the responsible departments. In the meantime, the status of

progress have been conﬁrmed and discussed by the Risk Management Committee.

Honda globally carries out risk assessment activities.

The purpose of these activities is to foresee the potential risks to Honda’s

business and respond pre-emptively to minimize these risks.

Risk Assessment Activities

Each department performs an annual risk evaluation using the Group’s common

risk items and evaluation criteria to identify the divisional priority risks.

Each of the Operations and Supervisory Units carries out repeated discussions

based on the results of the risk assessments of each department. They then identify

and respond to priority risks of the Operations and Supervisory Units based on the

judgment of Risk Management Ofﬁcer of the Operations and Supervisory Units.

Additionally, the status of priority risks of the Operations and Supervisory Units

based on the risk awareness of the Operations and Supervisory Units is reported to

the Risk Management Committee. Internal and external risk trends are then

considered in order to identify and respond to company-wide priority risks.

Through these efforts, Honda aims to ﬁrmly establish risk management activities

within each Operations and Supervisory Unit, reduce the risk faced by the entire

Group, and raise the risk awareness of every associate.

Company-wide

priority risk items

Risk perspectives

Geopolitical risk

Stoppages or delays of business activities due to the strengthening

of economic security policies and human rights laws and

regulations, or the conﬂicts between nations or regional conﬂicts

Purchasing and

procurement risk

Stoppages or delays of production activities due to difﬁculties in

receiving parts supplies from suppliers or increases in the prices

of raw materials and parts, etc.

Information security risk

Suspension of important operations/services due to cyberattacks

and other incidents, leakage of conﬁdential or personal

information

Business Alliances and

Joint Ventures Risk

Disagreements among partners regarding business, leakage of

proﬁt or technology, delays in decision-making

Environmental risk

Costs incurred in response to climate change regulations and fuel

consumption and emissions regulations in various countries

Intellectual property risk

Infringement of Honda’s intellectual property rights or payment of

expensive compensation or licensing fees

Natural disaster risk

Stoppages or delays of business activities due to natural disasters

(earthquakes, ﬂoods, etc.) or spread of infectious diseases

Financial and economic

risk

Business impact from economic trends, economic ﬂuctuations, or

Currency ﬂuctuations

Risk related to brand image Business impact associated with damage to brand image

Company-wide priority risks

5 Governance

Corporate Governance

��

111

Compliance

��

124

Risk Management

��

127

128

Honda ESG Data Book

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Contents Editorial Policy

1

Honda’s

Sustainability

2

Environment

3

Social

4

Performance

Data

6

Data

7

Governance

5

Global Emergency Headquarters Structure

Operations

Response

Group

Relevant

Divisions

Public

Relations

Response

Group

Disaster Area

Response

Group

Financial

Response

Group

Associate

Response

Group

Global Emergency Headquarters Manager

Company-wide Risk Management Ofﬁcer

Head of Secretariat

Risk Manager

Crisis Response

Honda carries out risk-sensing activities to monitor and report on signs of a crisis.

While collecting a wide range of crisis information that may have an impact on

Honda, the Company is also establishing an information coordination system in case

a crisis becomes apparent.

When a crisis occurs, the Company establishes a Global Emergency

Headquarters proportionate to the anticipated magnitude of the crisis’s impact to

manage the crisis response. In this way, Honda creates a structure to prevent the

crisis from spreading and to quickly bring the situation under control.

Through its initiatives and experience, Honda’s Global Emergency Headquarters

is working to strengthen its functions to better cope with future events.

Honda regularly holds Emergency Headquarters drills to verify its crisis response

capabilities. Honda has held drills to simulate responses to an earthquake directly

under the Tokyo metropolitan area and the Nankai Trough earthquake. The Company

has also reafﬁrmed (conﬁrming cooperation between groups) how to respond to a

crisis occurring at multiple bases, as well as basic actions in its crisis response.

Also, concerning disaster drills, besides ensuring the safety of human life and

procedures to account for its associates, Honda continuously holds training on

procedures from a business continuity planning (BCP) viewpoint to share information

and identify the impact of a crisis on business at an earlier stage.

As a recent example of its crisis response, to counter COVID-19, Honda

launched a Global Emergency Headquarters. The Company promotes company-

wide, cross-sectional responses and strengthens functions by reﬂecting on these

responses.

ln terms of COVID-19 status, the resumption of socio-economic activities is

accelerating and the normalization of production, development, purchasing, sales,

and other business activities is also underway at Honda.

Going forward, Honda will continue to strengthen our business foundation in

areas such as production, development, procurement, and sales. In the event of a

resurgence of infections, we will prioritize the safety of stakeholders including our

customers, business partners, and associates, and take measures to minimize the

negative impact on our business and performance from a business continuity

perspective.

Additionally, Honda is actively promoting company-wide, cross-sectional

measures in collaboration with our suppliers to minimize the impact of the

semiconductor supply issue.

5 Governance

Corporate Governance

��

111

Compliance

��

124

Risk Management

��

127

129

Honda ESG Data Book

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Contents Editorial Policy

1

Honda’s

Sustainability

2

Environment

3

Social

4

Performance

Data

6

Data

7

Governance

5

Global Information Management Structure

Global Conﬁdentiality Committee

(Chairperson: Head of the Human Resources and

Corporate Governance Supervisory Unit)

Regional

Conﬁdentiality

Committee

Conﬁdentiality

Committee at

each business

site/subsidiary

Japan

North

America

South

America

Europe,

Africa, and the

Middle East

Asia and

Oceania

China

Local

subsidiaries

Business

sites

Information Management

To protect information assets, including conﬁdential information and personal

information, Honda has formulated the Global Conﬁdentiality Policy and the Global IT

Security Policy, the scope of which extends to Group subsidiaries. These policies

stipulate the adoption of a systematic response structure, the use of compliance

items when handling conﬁdential information and personal information, and the

implementation of security standards for information systems and networks. They

also specify the line of reporting in the event of an information leak.

As part of its efforts to effectively implement these policies, Honda has set up

the Global Conﬁdentiality Committee chaired by the Head of the Human Resources

and Corporate Governance Supervisory Unit to ensure timely responses to changes

in information ﬂows and other issues.

The Global Conﬁdentiality Committee determines globally common medium-

term policies and an annual activity plan. Based on this plan, each Regional

Conﬁdentiality Committee takes the lead in promoting activities to safely handle

information obtained through Honda’s business activities, including personal

information and conﬁdential information.

Besides continuously strengthening its activities to ensure information security

against cyberattacks, which are becoming increasingly sophisticated and complex,

the Company performs daily monitoring while establishing systems capable of

immediately responding to events that must be addressed.

Protection of Personal Information

Honda recognizes the importance of protecting personal information and regards

prioritizing the protection of customer information as its social responsibility. To

ensure the proper handling of customer information, Honda has formulated the

Global Privacy Policy, which covers Group subsidiaries. The policy prescribes

matters that must be universally complied with by subsidiaries worldwide, as well as

an implementation structure, and is operated accordingly.

The Company has appointed information supervisors and information managers

in departments handling personal information and provides training on the protection

of personal information. Moreover, Honda reports the methods for managing the

personal information it holds and the information management status of outsourced

contractors to the Conﬁdentiality Committee of each business site and company. To

ensure the details of these reports are updated, the Company conducts a review of

information security in all departments at least once a year. Additionally, Honda sets

stricter security standards for information systems containing customer information

while regularly conﬁrming the implementation of security measures.

Honda has built a structure for collaboration between the Global Conﬁdentiality

Committee and each Regional Conﬁdentiality Committee to respond to national

personal information protection regulations, which are being established at an

accelerating pace. The Company is steadily formulating comprehensive responses to

regulations while closely monitoring trends.

Additionally, Honda utilizes data to help solve social issues and provide its

customers with even better products and services. Honda has formulated the Risk

Management Guidelines for Data Utilization to handle data properly, reduce related

risks, and promote effective data utilization. It has also established the Board for

Judging Data Utilization Risks with the Head of the Intellectual Property and Legal

Supervisory Unit serving as the decision-making authority. Honda deliberates on the

risk response status concerning data collection, data storage management, and data

utilization and decides whether to implement relevant measures.

Honda is putting into place structures that will respond quickly to an information

leak or request for the disclosure of personal information in accordance with the laws

and regulations of the relevant country. In FY2023, there were no major losses or

leaks of personal information or serious complaints about customer privacy.

5 Governance

Corporate Governance

��

111

Compliance

��

124

Risk Management

��

127

418-1

Subsidiaries

130

Honda ESG Data Book

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Contents Editorial Policy

1

Honda’s

Sustainability

2

Environment

3

Social

4

Performance

Data

6

Data

7

Governance

5

Information Management

Product Cybersecurity

Honda participates in the Automotive Information Sharing & Analysis Center (Auto-

ISAC), which has begun operations in Japan and the United States, to share and

analyze information related to automotive cybersecurity. The Auto-ISAC collects

information on incidences detected within the industry.

Moreover, Honda obtains information independently, including information on

relevant laws and speciﬁcations, as well as industry standards. By using this

information in its response to security issues, Honda is proactively taking steps to

promote the safety and security of its products.

Additionally, Honda reorganized the Cybersecurity Committee to further

accelerate decision-making and execution across all related departments, including

strengthening cooperation between management. Through the Committee’s

activities, the Company will continue to ensure the safety and security of the

products it provides to customers.

5 Governance

Corporate Governance

��

111

Compliance

��

124

Risk Management

��

127

131

Honda ESG Data Book

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Contents Editorial Policy

1

Honda’s

Sustainability

2

Environment

3

Social

4

Performance

Data

6

Data

7

Governance

5

6

Performance

Data

132

Honda ESG Data Book

2023

Scope of Coverage

6 Performance Data

Environmental Data

��

133

Social Data

��

143

Governance Data

��

150

List of Targets

Organizations Covered

Honda Motor Co., Ltd. and its 397 group companies in and outside of Japan

(comprising 327 consolidated subsidiaries and 70 afﬁliated companies accounted for

by the equity method). The number of companies is as of the end of December

2022.

Period Covered

FY2023 (April 1, 2022 – March 31, 2023)

Environmental Data

Target Items Targets for 2030 Targets for 2050

Reduction rate of total CO

2

emissions from corporate activities (compared to FY2020)

46%

CO

2

emissions, net zero

Sales ratio of electriﬁed products

Motorcycles

15%

Automobiles

30%

Power products

36%

Reduction rate of CO

2

emissions intensity of product use

(compared to FY2020)

Motorcycles

34.0%

Automobiles

27.2%

Power products

28.2%

Reduction rate of total water intake in corporate activities (compared to BAU)

14.5%

Zero industrial water intake and industrial waste

Reduction rate of total waste generation in corporate activities (compared to BAU)

14.5%

Product resource circulation

(Set internal milestones)

100% use of sustainable materials

201-2

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Sustainability

2

Environment

3

Social

4

Governance

5

Data

7

Performance

Data

6

Reduction rate of total CO

2

emissions from corporate activities (compared to FY2020)

202320222020

(baseline)

2021

Japan

North America

South America

Europe

China

(FY)

(%)

46

%

2031

(target)

2051

(goal)

Asia & Oceania

0

20

40

60

80

100

14.5

%

10.5

%

24.1

%

Reduction rate of CO

2

emissions intensity of product use (compared to FY2020)

Motorcycles

28.2

%

(%)

12.8

%

2020

(baseline)

2031

(target)

2023

0

20

40

60

80

100

(%)

3.4

%

34.0

%

2031

(target)

0

20

40

60

80

100

2020

(baseline)

2023 2024 2025

27. 2

%

(%)

0.6

%

2020

(baseline)

2031

(target)

2023

0

20

40

60

80

100

2024 20 25 2024 20 25

(FY) (FY)

(FY)

Automobiles Power products

Power products

Sales ratio of electriﬁed products

Motorcycles Automobiles

(%)

15

%

0

.

01

%

0

.

62

%

0

10

20

30

40

2022 2031

(target)

2023 2024 2025

(FY)

(%)

30

%

0

.

37

%

0.66

%

0

10

20

30

40

2022 2031

(target)

2023 2024 2025

(FY)

(%)

36

%

0.52

%

0.71

%

0

10

20

30

40

2022 2031

(target)

2023 2024 2025

(FY)

Environmental Data

6 Performance Data

Environmental Data

��

133

Social Data

��

143

Governance Data

��

150

305-1, 305-2, 305-3, 305-4, 305-5

134

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Contents Editorial Policy

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Honda’s

Sustainability

2

Environment

3

Social

4

Governance

5

Data

7

Performance

Data

6

Amount of water intake

Waste generated

2023

Japan

North America

South America

Europe

Asia & Oceania

China

32,500

20222020

29,300

2021

(FY)

36,200

2019

(1,000 m

3

)

0

10,000

20,000

30,000

40,000

33,200

34,10 0

1,420

Japan

North America

South America

Europe

Asia & Oceania

China

1,410

1,360

1,550

1,690

202320222020 20212019

(1,000

t)

0

300

600

900

1,200

1,500

(FY)

Calculation method: Volume amount = (Wastewater processed by other companies + Discharge directly into public

waters)

· Figures include some estimated values.

· Expressed in three signiﬁcant digits

Wastewater volume

Environmental Data

Calculation method: Emissions amount = (Industrial waste + general administrative waste +

valuable resources

emission)

· However, regions outside of Japan are beyond the scope of data for industrial waste (excluding harmful waste deﬁned in

accordance with regulations in respective countries) and general administrative waste.

· Expressed in three signiﬁcant digits

Calculation method: Amount of water intake = (Purchased from the water facilities + Groundwater intake + Rainwater

utilization amount + Surface such as rivers water intake)

· Expressed in three signiﬁcant digits

19,10 0

2023

Japan

South America

Europe

Asia & Oceania

China

19,600

2022

20,000

2020

17,10 0

2021

21,300

2019

(FY)

(1,000 m

3

)

0

10,000

20,000

30,000

40,000

6 Performance Data

Environmental Data

��

133

Social Data

��

143

Governance Data

��

150

303-3, 303-4, 303-5, 306-1, 306-2, 306-3, 306-4, 306-5

135

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Contents Editorial Policy

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Honda’s

Sustainability

2

Environment

3

Social

4

Governance

5

Data

7

Performance

Data

6

Environmental Data

Total GHG emissions

(million t-CO

2

e)

Scope 2 0.9%

Scope 1 0.4%

Scope 3

category 11

78.7%

Scope 3,

other categories

20.0%

(FY)

288

.

23

2023

280.02

2022

254.48

2021

303.12

2020

315.29

2019

Scope 3 *

2

,

category 11

Scope 3 *

1

,

other