American Honda Motor Co., Inc., today released its fourth annual report on the company’s environmental performance in North America. This year’s report adopts a lifecycle assessment (LCA) model for the reporting of Honda’s environmental footprint.

The 2008 North American Environmental Report covers the company’s operations during the period April 1, 2007 to March 31, 2008 (FY2008). The report looks at the environmental performance of the company’s automobile, powersports, and power equipment products, its 14 major manufacturing plants in North America, and the corporate activities of 15 Honda group companies in the region.

“We are pleased to provide our customers and stakeholders with this report on Honda’s ongoing efforts to reduce the environmental footprint of its operations in the North American region,” said Tetsuo Iwamura, chief operating officer of Honda’s North American Regional Operation. “Next year will mark the first 50 years of Honda’s operations in North America. As we look forward to the next half-century, we are fundamentally assessing the value we bring to our customers and the communities where we do business, and rededicating ourselves to our goal of preserving ‘blue skies for our children.’”

The 2008 North American Environmental Report is available for viewing and download at the company’s corporate Web site at http://www.corporate.honda.com, and its online media newsroom at http://www.hondanews.com.

Following are highlights of the 2008 report:

Honda and Acura Automobiles

• The U.S. corporate average fuel economy (CAFE) for model year 2007 Honda and Acura cars and light trucks rose to 29.5 miles per gallon, the highest level in five years, based in part on the expanded application of fuel-efficient technologies like i-VTEC® variable valve control for 4- and 6-cylinder engines, and second-generation VCM™ (Variable Cylinder Management™) for V-6 engines.
• Every model year 2008 Honda and Acura automobiles sold in the U.S. and Canada met or exceeded both California’s and the U.S. EPA’s stringent Tier 2 Bin 5 exhaust emissions standards on an individual model basis, without the use of fleet averaging.
• Every model year 2008 Honda and Acura automobile designed and assembled in North America has achieved 90 percent or greater level of design recyclability¹.

Powersports Products

• Cleaner, quieter, and more efficient 4-stroke engine technology has been applied to the entire North American lineup of powersports products, including all motorcycles, scooters, all-terrain vehicles, and personal watercraft.

Power Equipment and Marine Products

• 4-stroke OHV engine technology has been applied to the entire North American power equipment product line, including all general purpose engines, outboard marine engines, and lawn and garden products.

Purchasing

• Promotion of “green factory” practices to more than 650 North American OEM supplier partners helped lead 85% of suppliers to be third-party certified to ISO 14001 environmental management standards in FY2008, up from 80% in the previous fiscal year.
• A new hub-and-spoke shipping logistics process was implemented in the U.S. to reduce the environmental impact of transporting parts, reducing truck travel by more than 3 million miles in FY2008.

Manufacturing (“Green Factory”)

• Thirteen of 14 manufacturing plants operating during FY2008 were third-party certified to ISO 14001:2004 environmental management standards.
• Average per-unit CO₂ emissions from the production of automobiles was reduced 1.7% from the previous fiscal year to 699 kg/auto, the lowest level since the company began tracking and reporting this data in FY2001.
• Average per-unit energy² consumed in the production of automobiles fell 1.5% from the previous year to 6.5 gigajoules, the lowest level in eight years.
• Waste to landfills for each automobile produced was reduced 78.7% from the FY2001 baseline to just 1.9 kilograms, as six Honda plants in North America earned the designation of zero-waste-to-landfill production facilities.
• Emissions of volatile organic compounds from auto body painting (accounting for roughly 60 percent of all manufacturing-related VOC emissions) rose 0.4% over the previous fiscal year to 15.7 grams/m², well below the company’s target of 20 grams/m² and 45.3% below the FY2001 baseline.

Product Distribution

• An industry-high 81% of automobile were shipped by rail, the most fuel-efficient means of product transportation.

• CO₂ emissions from automobile transport were reduced by 5,493 metric tons through the use of more fuel-efficient Auto-Max rail cars.
• A $7 million renovation of Honda's Ohio product distribution center improved efficiency and reduced consumption of diesel fuel by more than 500,000 gallons.

Sales and Service

• Initiatives to reduce packaging material for service parts were further enhanced with the consolidation of three packaging operations into one, helping to eliminate 1.45 million pounds of corrugated cardboard in FY2008.

Product Recycling (End of Life)

• 32 new parts were added to the companies list of more affordable and environmentally-responsible remanufactured service parts.
• Efforts to reduce waste from the disposal of automobiles, including recycling of all catalytic converters and hybrid vehicle batteries collected from Honda and Acura dealers in the U.S. and Canada.

Green Building

• Three Honda facilities in North America attained Leadership in Energy and Environmental Design (LEED) certification from the U.S. Green Building Council in FY2008, joining two existing green buildings. Three additional facilities – two in the United States and one in Canada – will seek LEED certification in FY2009.

Additional information on Honda’s environmental performance outside of North America can be found in Honda Motor Company’s Environmental Report, published annually since 1999, with a focus on Honda’s activities in Japan – available at world.honda.com.

¹ Vehicle recyclability calculated using Honda’s own internal methods, based on ISO standard 22628, titled “Road Vehicle Recyclability and Recoverability Calculation Method”

² From the consumption of electricity and natural gas

American Honda Motor Co., Inc.
Marcos Frommer: 310-781-5542
Jeffrey Smith: 310-781-5542