Honda Motor Company

Companies in Honda’s group have alternative business activities that will help the group remain profitable in a low-carbon economy, including motorcycle and power product activities. The motorcycle business activities could support a passenger modal shift from cars to last mile e-bikes and scooters. The companies with power product business activities already produce Mobile Power Pack units that can be used in electric scooter sharing schemes and sell compact-sized, high-pressure water electrolysis hydrogen stations. Honda has joint venture projects to accelerate provision of charging solutions for hydrogen fuel cell and electric vehicles.

Honda’s share of sales from low-carbon vehicle is almost none. However, mainly due to hybrid technologies, the company managed to reduce its fleet emissions by around 8 percent from 2012 to 2017. Honda could rapidly increase its share of sales from low-carbon vehicles in the US with its new Clarity series available in battery, plug-in hybrid and fuel cell electric versions, though charging infrastructure support will be key for success. Honda also has plans to market new battery electric vehicles in China, an increasingly significant region which accounted for 16 percent of its sales in 2012 and 27 percent in 2017.

Honda has reported a Triple Zero policy to eliminate carbon dioxide emissions from its products, including motorcycles and power products, as well as from its business activities across the company. However, specific target details such as baseline levels have not been disclosed. More detailed public emissions reduction commitments would help Honda to drive short, medium and long-term low-carbon action to reduce both fleet emissions and manufacturing emissions.

Under its Triple Zero policy, Honda plans to eliminate carbon dioxide emissions from its products, including motorcycles and power products, and from its business activities across the company. The 2050 commitment is to cut total carbon dioxide emissions in half by 2050, compared to 2000 levels.

Underpinned by a strong focus on hybrid vehicles, Honda plans to electrify two-thirds of all its vehicles sold globally by 2030. It will also strengthen the development of its fuel cell electric and battery electric vehicles. Honda will also facilitate inter-regional information sharing while continuing its current regional production approach in order to evolve vehicles more efficiently and expand the potential of regional models.

Honda’s current global fleet emissions average is estimated to be 136 grams of carbon dioxide emissions per kilometre. However, less than 0.05 percent of its sales in 2017 come from low-carbon vehicles, which is very low compared to the 2.7 percent required for the automotive industry’s low-carbon pathway. Moreover, though climate change oversight sits at the highest level of management, the company’s Sustainability Strategy Committee meets only once a year. Also, expertise regarding the science and economics of climate change was not identified at the board level.

Manufacturing emissions per vehicle produced have decreased, even while production has increased. This is partly related to increased renewable energy use. These emissions efficiency improvements need to increase further to align with the reduction pathway required for the low-carbon transition. The company’s fleet emissions are also steadily decreasing, but still need to be further reduced to remain on the automotive industry’s low-carbon pathway. Honda has initiated projects for low-carbon mobility alternatives in areas not directly related to passenger vehicle manufacturing.

Honda continues to be committed to internal combustion engine development. It is unclear how the company will sufficiently reduce its fleet emission without rapidly increasing its share of sales from battery electric and/or fuel cell electric vehicles. While Honda’s overall climate mitigation research and development spending levels are aligned with the automotive industry’s low-carbon pathway, it is not clear to what extent this spending covers non-mature low-carbon technologies. Honda has joint research agreements on automated driving and joint ventures to mass produce an advanced hydrogen fuel cell system, as well as to develop, manufacture and sell electric vehicle motors.