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November 2007

Honda issues environmental report

Honda released its third annual report on the company’s environmental performance in North America. The report placed special emphasis on global warming and energy sustainability as two of the most critical environmental challenges.

The report primarily covers the company’s operations during the period from April 1, 2006 to March 31, 2007 (FY 2007). The report looks at the environmental performance of the company’s automobile, power sports and power equipment products, its 14 major manufacturing plants in North America, and the corporate activities of 15 Honda group companies in the region.

Following are highlights of the report:

Honda and Acura automobiles

•The company maintained its position as America’s most fuel-efficient car company with an average fuel economy (CAFE) for model year 2006 Honda and Acura cars and light trucks of 29.1 miles per gallon. The company is seeking to increase its CAFE by five percent over 2005 levels by model year 2010.

•Every model year 2007 Honda and Acura automobile designed and assembled in North America has achieved 90 percent or greater design recyclability.

•Honda expanded sales of its natural gas-powered Civic GX and the Phill™ home refueling appliance to additional Honda dealers in California and 20 dealers in New York.

•The company has committed to the introduction of new, more efficient gasoline, gas-electric hybrid, and clean diesel powertrain technologies over the next several years.

•100 percent of model year 2007 Honda and Acura automobiles sold in the United States met or exceeded both California’s and the EPA’s Tier 2 Bin 5 exhaust emissions standards, without the use of fleet averaging.

Power sports products

•The company has applied cleaner, more efficient four-stroke engine technology to its North American power sports lineup and is expanding the use of programmable fuel injection (PGM-FI) for further improvements.

Power equipment, marine products

•The company has applied four-stroke engine technology to its North American power equipment line and is applying the more stringent California emissions standards to products sold in all 50 states.

North American manufacturing •Of the 14 major North American manufacturing plants operating during FY2007, 13 were third-party certified to the I­SO 14001:2004 environmental management standard.

•CO2 emissions from automobile manufacturing increased about 37 percent to 1.07 million metric tons from an FY2001 baseline of 0.78 million metric tons, due in large part to increased production activity.

•CO2 emissions intensity, as measured by average CO2 emissions per automobile produced, increased slightly from the FY2001 baseline of 709 kg to 711 kg in FY2007, but fell significantly from a seven-year high of 761 kg in FY2005, as the company moved to increase the utilization of its production capacity in the region.

•Emissions of volatile organic compounds from auto body painting (roughly 60 percent of all manufacturing-related VOC emissions) continued their decline from 28.7 grams/meter2 (g/m2) in FY2001 to 15.6 g/m2 in FY 2007.

•Water consumed for each automobile produced in North America fell 7.6 percent to 730 gallons in FY2007 from 790 gallons in FY2006, but was up slightly from the FY2001 baseline of 700 gallons.

•Waste to landfills per automobile produced fell 66 percent to 5.9 kg in FY2007 from a seven-year high of 17.4 kg in FY2001.

•As a result of Honda’s Green Purchasing program, 80 percent of Honda’s suppliers are now third-party certified to the ISO 14001 environmental management standard.

Minimization of waste and toxic substances

•Two Honda facilities in North America attained Leadership in Energy and Environmental Design (LEED) Gold certification from the U.S. Green Building Council: Honda R&D Americas’ central plant in Raymond, Ohio; and, American Honda’s Northwest Regional Facility in Gresham, Oregon.

•Honda is engaged in projects to further reduce the end-of-life impact of its products, including hybrid battery recycling. The company is also researching ways to reduce automobile shredder residue (ASR); improve the recycling of catalytic converters; and, methods for end-of-life treatment of plastic fuel tanks.