Module 8 Homework

Honda Motor Company

Honda Motor Company included a separate Corporate Governance Report (CGR) in its 2017 Annual Report. First, the CGR states, among other things, the following:

The company strives to enhance corporate governance as one of the most important tasks for its management, in order to achieve several aims, including strengthening the trust of the shareholders and investors, customers and society. The company is adopting an “Audit and Supervisory Committee” system in order to reinforce the supervisory function of the Board of Directors and ensure the prompt decision-making. The company will ensure transparency of its management. Second, the CGR explains in detail the risk factors relevant to Honda Motor Company.

Required-

: 1- Using the 2017 Annual Report of Honda Motor Company (), whch includes the Corporate Governance Report, discuss the way in which Honda Motor Company attempted to establish a high level of corporate governance.

2-Explain the possible link between corporate governance and auditing.

Module 8 Homework Assignment: Honda Motor Company case analysis
NOTE TO FACULTY: Compute a holistic score for each element by placing check marks in the
appropriate boxes or compute an analytic score by assigning points for each element,
following the percentages indicated with the assignment.
Elements
Criteria
Exceptional Proficient
90-100 % 80-89 %
Ratings
Basic Insufficient
75-79 Below 60-75 %
%
Missing
0%
Shows depth and understanding of
the topic
Knowledge/
Understanding Problem Identification
Analysis Depth
Use of Evidence
Using
Resources are synthesized and
resources
integrated effectively
There is sufficient research cited to
support case analysis topic
Critical Thinking
Organization & Communication
Minimum case requirements
(length, topic, research, integration
Writing
of core values) are met
Follows APA formatting
requirements
Out of 100 points for the
Overall Score
assignment
Students will complete the assignment with attention to the criteria below:
Rating:
Exceptional: corresponds to a grade of A- to A (90-100). Performance is outstanding,
significantly above the usual expectations.
Proficient: corresponds to a grade of B- to B+ (80-89%). Skills and standards are at the level of
expectation.
Basic: corresponds to a grade of C- to C+ (75-79%). Skills and standards are acceptable, but
improvements are needed to meet expectations well.
Insufficient/Missing: corresponds to a grade of F (below 75%). Performance is weak; the skills
or standards are not sufficiently demonstrated for the assignment.
Honda
SUSTAINABILIT Y
REP OR T
2 017
1 Editorial Policy
Contents
6 Performance Report
■ Environment
■ Safety
2 Honda Philosophy
3 Overview
■ Quality
■ Social Activity
■ Human Resources
4 Message from the President and CEO
7 GRI Content Index
■ Supply Chain
5 Sustainability Management
8 Assurance
Contents
1 Editorial Policy
02
・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
2 Honda Philosophy
03
3 Overview
04
・ ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
4 Message from the President and CEO
6 Performance Report
Environment・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・24
Safety・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・43
Quality・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・49
Human Resources・ ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・61
08
・・・・・・・・・
5 Sustainability Management
Vision・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・09
Materiality Matrix・ ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・11
Sustainability Management Structure・ ・・・・・・・・・・・・・・・・・・・・・・・・12
Social Activity・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・74
Supply Chain・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・85
7 GRI Content Index
8 Assurance
96
・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
104
・ ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Corporate Governance・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・13
Compliance・ ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・16
Risk Management・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・18
Research and Development・ ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・19
Innovation Management・ ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・20
Stakeholder Engagement・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・21
contents
Honda SUSTAINABILITY REPORT 2017
01
G4-5,G4-13,G4-14,G4-20,G4-21,G4-22,G4-23,G4-28,G4-29,G4-30,G4-31,G4-32
Contents
1 Editorial Policy
6 Performance Report
■ Environment
■ Safety
2 Honda Philosophy
3 Overview
■ Quality
■ Social Activity
■ Human Resources
4 Message from the President and CEO
■ Supply Chain
7 GRI Content Index
5 Sustainability Management
8 Assurance
Editorial Policy
●Organizations covered
●Assurance
●Cover page pictogram
This report covers the entire Honda Group, which consists
of Honda Motor Co., Ltd. and its 442 group companies in and
outside Japan (comprising 367 consolidated subsidiaries and
75 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. Furthermore,
unless the context otherwise requires, the terms “we,” “us,”
“our,” “Company” and “Honda” as used in this Sustainability
Report each refer to the Honda Group.
Honda obtained the independent practitioner’s assurance of the
environmental data for the year ended March 31, 2017. For more
details, please refer to the Independent Practitioner’s Assurance
section of the report (⇒ p. 104).
Data indicated with
received the independent practitioner’s
assurance.
The design of the pictogram on the cover page symbolizes
Honda’s concept of sustainability.
●Period covered
This report focuses primarily on the activities undertaken during
FY2017 (April 1, 2016 – March 31, 2017), and also includes past
background information and activities conducted up to the time
of publication, as well as other matters including future outlook
and plans.
●Guidelines
This report has been developed in accordance with the
“Comprehensive” option of the Global Reporting Initiative (GRI)
G4 Guidelines. For details, please refer to the GRI Content Index
(⇒ p. 96).
●Date of publication
Publication of this report: June 2017
Planned publication of next report: June 2018
Honda releases a Sustainability Report every year.
Three Ellipses
= “Creating the Joys,” “Expanding the Joys” and
“Ensuring the Joys for the Next Generation” (⇒ p. 10)
Six Precise Circles = Motorcycles, Automobiles, Power Products and
New Businesses for the future (⇒ p. 04)
Supporting Hands = The desire of stakeholders who empathize with
Honda’s initiatives (⇒ p. 21)
●For inquiries regarding this report, please contact:
Honda Motor Co., Ltd.
Sustainability Planning Division, Corporate Planning Supervisory Unit
2-1-1 Minami Aoyama, Minato-ku, Tokyo, Japan 107-8556
Tel. +81-3-5412-1159
1
●Published by
Corporate Planning Supervisory Unit, Honda Motor Co., Ltd.
*The guideline referenced in calculations and/or the basis for calculations is
shown in the corresponding sections.
In 2016, Honda joined the GRI GOLD Community, a global, multistakeholder network program. It has over 550 members from
69 countries and includes diverse companies and organizations,
from civil society groups and companies to United Nations
agencies and intergovernmental agencies. Honda seeks to
realize a sustainable world by proactively leveraging such
networking opportunities.
editorial policy
Disclaimer
This report contains past and current factual data of Honda Motor Co.,
Ltd. as well as plans and outlook and future projections based on its
management policies and management strategies as of the date of
publication. These future projections are 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, restatement or significant
changes to information provided in previous reports.
Honda SUSTAINABILITY REPORT 2017
02
G4-56,G4-DMA
Contents
1 Editorial Policy
6 Performance Report
■ Environment
■ Safety
2 Honda Philosophy
3 Overview
■ Quality
■ Social Activity
■ Human Resources
4 Message from the President and CEO
7 GRI Content Index
■ Supply Chain
5 Sustainability Management
8 Assurance
Honda Philosophy
Honda Philosophy
Fundamental Beliefs
The Honda Philosophy, bequeathed to the Company by its
founders Soichiro Honda and Takeo Fujisawa, is composed
of Fundamental Beliefs (Respect for the Individual and The
Three Joys), the Company Principle and Management Policies.
The Philosophy forms the values shared by all Honda Group
companies and all of their associates and is the basis for
Honda’s corporate activities.
Moving beyond words alone, Honda incorporates the Philosophy
into educational programs for its associates and gives it life by turning
it into action, from everyday business activities to management
decision-making, so that every person in the Company can responsibly
continue putting the Philosophy into practice.
Additionally, Honda engages in corporate activities under the
concept of “Free and Open, Challenge, Co-evolution” – that is, the
concept of bringing into play Honda’s corporate culture of “taking
up the challenge without fear of failure, free from the prejudice
of preconceived ideas, and with a foundation of teamwork based
on trust.”
Society’s expectations toward Honda continue to evolve with
the times. As a responsible global company, Honda will undertake
the resolution of problems while listening to the voices of its
diverse stakeholders so as to meet their expectations and earn
their trust.
Respect for the Individual
The Three Joys
Initiative
Initiative means not to be bound by preconceived ideas, but
think creatively and act on your own initiative and judgment,
while understanding that you must take responsibility for the
results of those actions.
Equality
Equality means to recognize and respect individual differences
in one another and treat each other fairly. Our company is
committed to this principle and to creating equal opportunities
for each individual. An individual’s race, sex, age, religion,
national origin, educational background, social or economic
status have no bearing on the individual’s opportunities.
Trust
The relationship among associates at Honda should be based
on mutual trust. Trust is created by recognizing each other as
individuals, helping out where others are deficient, accepting
help where we are deficient, sharing our knowledge, and
making a sincere effort to fulfill our responsibilities.
The joy of buying
The joy of buying is achieved through providing products
and services that exceed the needs and expectations of each
customer.
The joy of selling
The joy of selling occurs when those who are engaged in selling
and servicing Honda products develop relationships with a
customer based on mutual trust. Through this relationship,
Honda associates, dealers and distributors experience pride
and joy in satisfying the customer and in representing Honda to
the customer.
The joy of creating
The joy of creating occurs when Honda associates and
suppliers involved in the design, development, engineering and
manufacturing of Honda products recognize a sense of joy in
our customers and dealers. The joy of creating occurs when
quality products exceed expectations and we experience pride
in a job well done.
Company Principle
Maintaining a global viewpoint, we are dedicated to supplying products of the highest quality yet at a reasonable price for
worldwide customer satisfaction.
2
philosophy
Management Policies
●
●
Proceed always with ambition and youthfulness.
Respect sound theory, develop fresh ideas and make the most
effective use of time.
Enjoy your work, and encourage open communications.
Strive constantly for a harmonious flow of work.
● Be ever mindful of the value of research and endeavor.
●
●
Honda SUSTAINABILITY REPORT 2017
03
G4-4
Contents
1 Editorial Policy
6 Performance Report
Overview
■ Environment
■ Safety
2 Honda Philosophy
3 Overview
■ Quality
■ Social Activity
■ Human Resources
4 Message from the President and CEO
■ Supply Chain
7 GRI Content Index
5 Sustainability Management
8 Assurance
Honda’s Business Domains
Principal Businesses Segments
3
Creating New Businesses
Motorcycles
Automobiles
Power Products
Aircraft and aircraft engines
Honda offers a broad lineup from commuter
models, which herald motorization in many
regions around the globe and are loved by
people the world over, to sports models
that give people a taste of the joy of riding
dynamics.
Honda has started production of the new NSX
at a dedicated plant in North America. This
car, boasting exceptional performance and
quality, is assembled solely by associates who
are master technicians and builders. This has
only been made possible thanks to a history
spanning 34 years in automobile production
in North America. Honda infused the NSX with
state-of-the-art technology based on a desire
to convey the joy of driving in today’s world.
This spirit is one of the enduring features of
Honda that people feel when they get behind
the wheel of any one of our cars.
Honda has been providing annually a total of
six million power products to customers in
more than 150 countries and regions based on
a diverse range of items that feature Honda’s
general purpose engines, including tillers,
generators, snow throwers, lawnmowers,
pumps and outboard engines. Further,
through development and commercialization
of electrification of products, Honda continues
to offer new values that are useful in various
facets of people’s daily lives, such as an
innovative robotic lawnmower, Miimo, and a
portable battery inverter power source, the
LiB-AID E500.
Honda began delivery of the HondaJet to the
world at the end of 2015 as a new proposal
for personal mobility. Based on Honda’s
proprietary technology, including Over-TheWing Engine Mount (OTWEM), HondaJet
provides a top-class mobility experience in
the sky. Sales started in North, Central and
South America as well as Europe, and the
aircraft has been very well received by the
market. Honda also started taking orders in
Southeast Asia in May 2017.
The Honda Super Cub continues to be an
ultra long seller as a leading commuter
model for nearly six decades. It continues
to offer daily mobility to many users around
the world, with cumulative global production
topping 97 million units.
In 2016, Honda revamped the CBR1000RR,
offering Honda’s interpretation of a modern
super sports motorcycle. In addition, the Honda
X-ADV, which combines the high-level strength
of adventure models and the convenience of
commuter models and aims to carve out a new
category, was launched in April 2017.
In this way, Honda continues to lead the
industry as a top motorcycle manufacturer.
CBR1000RR SP
Wave110
overview
From the N-BOX mini-vehicle sold in Japan
through global best-sellers the Civic and
HR-V/Vezel to the Ridgeline pickup truck in
North America, Honda has a full lineup of
automobiles.
In addition, the Acura is being marketed
in the United States and China as Honda’s
luxury brand. The Acura, with the brand
slogan of “Precision Crafted Performance”
since its inception 30 years ago, boasts
models befitting the slogan, notably with the
aforementioned NSX.
Civic Sedan
HR-V
The Company is also leasing the Honda
Walking Assist Device, an assistive device for
use in the training of walking. The device has
been developed based on the theory of human
walking, which Honda has accumulated
through its robotics technology.
Looking ahead, Honda intends to continue
to deliver products useful in everyday life to
people across the world and spread the joy of
helping others by maximizing and pursuing
the potential of internal combustion engine
and electrification technologies.
Miimo
Honda Walking Assist Device
Honda has also developed an aircraft
turbofan engine in collaboration with General
Electric (GE), which is ranked number one
in the aviation industry. Honda Aero, Inc.
was established to produce the GE Honda
HF120, while GE Honda Aero Engines LLC
was established as a 50-50 joint venture
with GE to sell the engine. The HF120 is a
lightweight, compact, high-efficiency and
high-performance turbofan engine with
high thrust. Armed with these superior
characteristics, sales of the HF120 engine
will be expanded to include other aircraft
manufacturers by leveraging the success of
the HondaJet.
HondaJet
HF120 turbofan engine
Honda SUSTAINABILITY REPORT 2017
04
1 Editorial Policy
Contents
6 Performance Report
■ Environment
■ Safety
2 Honda Philosophy
3 Overview
■ Quality
■ Social Activity
■ Human Resources
4 Message from the President and CEO
■ Supply Chain
5 Sustainability Management
7 GRI Content Index
8 Assurance
Honda’s Value Creation History
Overview
2012
2014
2015
2016
First in industry to disclose
estimated CO2 emissions from
product use globally (Scope 3)
Secures 100% in
disclosure score
for CDP 2014
Commences sales
of the HondaJet
Achieves cumulative
global automobile
production volume
of 100 million units
2030
Two-thirds of
automobiles sold to be
electrified vehicles
2010s onward
2012
2014
2015
2016
Achieves cumulative power
products production volume of
100 million units
Establishes world’s first
single-package Smart Hydrogen
Station in conjunction with
Iwatani Corporation
Launches Honda Walking
Assist Device for use in the
training of walking
Revises Honda
Corporate Governance
Basic Policies
2050
Aims to halve CO2
emissions compared
to 2000 levels
2002
1997
1993
1987
1981
Develops
the FCX fuel
cell vehicle
Attains ISO14001
certification in Belgium and
at the Hamamatsu Factory
and Tochigi Factory
Honda’s general-purpose engine
first in world to receive approval
for conformity with U.S. exhaust
gas regulations
Launches
Japan’s first
airbag-equipped
automobile
Completes first domestically produced
automobile equipped with driver
assist features for persons with
upper-arm disabilities (Civic)
1980s ~ 2000s
2006
1999
1996
1990
1986
1981
Develops flexiblefuel vehicle (FFV)
that runs on
ethanol for Brazil
Launches
Insight, the first
hybrid car in the
United States
Launches world’s first
self-regulating,
two-legged humanoid
walking robot
Introduces
flex-time/child-care
leave system
Secures top place
in U.S. CSI Study
Launches Honda Electro
Gyro-Cator
(navigation system)
1947
1948
1949
1953
1960
1963
Starts production of
the A-Type auxiliary
bicycle engines
Formulates
“The Three Joys”
Starts production
of first motorcycle,
the Dream D-Type
Commences Power Products
business
(releases general-purpose
H-Type 2-stroke engine)
Introduces human
resources
qualification
system
Starts automobile
production
(T360 mini truck)
1940s ~ 1970s
1946
1948
1953
1958
1960
1970
1971
Establishes
Honda Technical
Research Institute
Establishes
Honda Motor Co., Ltd.
Communicates
policy of “120%
Quality”
Launches the
Super Cub
Separates R&D Center
into an independent entity
(Honda R&D Co., Ltd.
established)
Establishes
Driving Safety
Promotion Center
Launches low-pollution
CVCC engine
overview
Honda SUSTAINABILITY REPORT 2017
05
G4-3,G4-4,G4-5,G4-6,G4-7,G4-8,G4-9,G4-20,G4-21,G4-EC8
1 Editorial Policy
Contents
6 Performance Report
Overview
■ Environment
■ Safety
2 Honda Philosophy
3 Overview
■ Quality
■ Social Activity
■ Human Resources
4 Message from the President and CEO
5 Sustainability Management
7 GRI Content Index
■ Supply Chain
8 Assurance
28,000,000 people
Unit sales and principal operation bases
Joy of mobility to
transcending national borders
2,979
1,944
1,143 1,304
460
271
Motorcycles
Motorcycles
Automobiles
Power
products
(1,000 units)
(1,000 units)
Regional headquarters: Honda North America, Inc. (U.S.A.)
Regional headquarters:
Honda Motor (China) Investment Co., Ltd. (China)
157
1,105
Motorcycles
272 226
Automobiles
Power
products
North America
China
Motorcycles
Automobiles
711
Automobiles
300
Power
products
(1,000 units)
Japan
Power
products (1,000 units)
Honda Motor Co., Ltd.
Honda R&D Co., Ltd.
Honda Engineering Co., Ltd.
14,805
Europe, Middle East and Africa
943
Regional headquarters:
Honda Motor Europe Ltd. (U.K.)
142 105
1,172
724
Motorcycles
Automobiles
Power
products
Motorcycles
Automobiles
Power
products
(1,000 units)
South America
Regional headquarters: Honda South America Ltda. (Brazil)
(1,000 units)
Asia & Oceania
Regional headquarters: Asian Honda Motor Co., Ltd. (Thailand)
Company name: Honda Motor Co., Ltd.
Established: September 1948
President, CEO & Representative Director: Takahiro Hachigo
Capital: 86,067 million yen (as of March 31, 2017)
overview
*The graphs show unit sales (retail) of motorcycles, automobiles and
power products (in units of 1,000) in each of the six regions.
[April 2016 to March 2017]
The symbol ● represents the approximate locations of Honda Group companies.
Honda SUSTAINABILITY REPORT 2017
06
G4-9,G4-EC1
1 Editorial Policy
Contents
6 Performance Report
■ Environment
■ Safety
2 Honda Philosophy
3 Overview
■ Quality
■ Social Activity
■ Human Resources
Sales revenue
Operating profit/Operating margin
(million yen)
(million yen)
Operating profit
12,000,000
14,601,151
13,999,200
13,328,099
11,842,451
8 Assurance
670,603
503,376
400,000
6,000,000
6.3
2014
2015
2016
2017
(FY)
Dividend per share
0
600,000
9
450,000
6
300,000
3
150,000
616,569
574,107
509,435
367,149
344,531
5.0
3.4
2013
2014
2015
2016
2017
(FY)
0
2013
2014
2015
2016
(FY)
2017
Number of employees
Income tax expense
(yen)
(million yen)
12
6.0
200,000
2013
Profit for the year attributable to owners of the parent
Operating margin
544,810
5.5
(million yen)
100
80
7 GRI Content Index
■ Supply Chain
840,711 (%)
750,281
800,000
600,000
9,877,947
9,000,000
3,000,000
5 Sustainability Management
Financial Data
Overview
15,000,000
4 Message from the President and CEO
76
82
88
88
92
400,000
225,000
327,592
300,000
60
252,662 245,139
200,000
190,338 198,561
204,730 208,399 211,915
229,092
200,000 178,976
175,000
100,000
150,000
40
20
0
2013
2014
2015
2016
2017
(FY)
0
2013
2014
2015
2016
2017
(FY)
125,000
2013
2014
2015
2016
2017
(FY)
*Data collected in accordance with the criterion of USGAAP until FY2014 and IFRS in FY2015
overview
Honda SUSTAINABILITY REPORT 2017
07
G4-1
Contents
1 Editorial Policy
6 Performance Report
■ Environment
■ Safety
2 Honda Philosophy
3 Overview
■ Quality
■ Social Activity
■ Human Resources
4 Message from the President and CEO
■ Supply Chain
7 GRI Content Index
5 Sustainability Management
8 Assurance
Message from the President and CEO
I would like to take this opportunity to express our gratitude for your cooperation and
tremendous support for Honda’s activities.
Honda has strived to be a “company that society wants to exist” by undertaking various
initiatives to provide appealing products and services that bring joy to customers in all aspects of
our businesses, namely motorcycles, automobiles and power products. Thanks to these efforts,
we have achieved growth as a mobility company that provides value unique to Honda to our 28
million customers around the world every year.
Meanwhile, the business environment surrounding Honda has been changing rapidly.
These changes include evolving consumer values such as the shift from “owning” to “using”
things (i.e., products and services) that has accompanied the diversification of lifestyle choices;
the advance of an aging society and acceleration of urbanization; and continued changes in our
climate. Moreover, we are now witnessing a number of changes that were unimaginable in the
past, such as the transformation of the industrial structure due to advances in energy
conversion, artificial intelligence (AI) and the Internet of Things (IoT) and other technologies.
As these medium- and long-term changes in the business environment unfold, it will be
important for Honda to determine how we can transform and evolve the value of our existing
businesses of motorcycles, automobiles and power products, while continuing to achieve
sustainable growth and helping to solve various social issues. This involves the ways we create
unprecedented and completely new value and also encompasses new domains transcending the
framework of our existing businesses.
To do so, it is essential to formulate a vision while looking ahead to the future and then take
actions to fulfill that vision to ensure that we can quickly address the changing times.
Accordingly, we formulated the “2030 Vision” as a new challenge directed at the next generation
that articulates the ways we can provide value unique to Honda.
Our 2030 Vision incorporates Honda’s passionate ideas of “technologies are for people” and
“challenge new things” and indicates the direction we are taking toward the future.
By pursuing this vision, Honda aims to continue achieving sustainable growth together with
society. You can look forward to Honda making further strides within this era of change.
I sincerely appreciate your continued support for our endeavors.
President, CEO and
Representative Director
top message
Honda SUSTAINABILITY REPORT 2017
08
G4-2,G4-18,G4-19,G4-20,G4-21,G4-56,G4-DMA
Contents
1 Editorial Policy
6 Performance Report
■ Environment
■ Safety
2 Honda Philosophy
3 Overview
■ Quality
■ Social Activity
■ Human Resources
4 Message from the President and CEO
■ Supply Chain
7 GRI Content Index
5 Sustainability Management
8 Assurance
Vision
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—
Direction of Initiatives
Formulation of 2030 Vision
Honda is facing numerous social issues that have been much
discussed, including poverty and refugee problems, human
rights issues, climate change, energy problems, improving
occupational health and safety, and the aging of society. Within
this context, for Honda, which undertakes a diverse range
of businesses globally, understanding its opportunities and
responsibilities in the value chain will also be essential for
identifying priority issues in management. Honda formulated
the 2030 Vision giving consideration to the changes already
occurring in society and to the needs of stakeholders.
Honda’s 2030 Vision is expressed in this statement, “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—.”
●
Creating value for “mobility” and “daily lives”
●
Accommodate the different characteristics of people and society
●
Toward a clean and safe/secure society
Direction of Our Initiatives for
Realizing the Vision
Honda has determined the three directions of initiatives for
realizing the vision.
The first is “creating value for ‘mobility’ and ‘daily lives.’”
In the future, changes to the industrial structure are expected
to be spurred by such developments as the introduction of
automated driving, the Internet of Things (IoT) and artificial
intelligence (AI) in all areas of our lives, as well as by advances
in cloud technologies. At the same time, changes in people’s
values, beginning with consumption trends, are also likely to
progress rapidly.
Honda aims to “provide people the joy and freedom of mobility”
and “provide people the joy of making their lives better.” The
Company’s strength lies in having cultivated up to the present
broad technological capabilities from aircraft to humanoid robots
and the ability to both envision and realize these. To further
take advantage of these strengths, Honda intends to expand its
efforts into development of technology/products/services in the
areas of robotics and energy, in addition to mobility.
sustainability management
5
The second direction is “accommodate the different characteristics
of people and society.”
Honda aims to provide all persons, who are from diverse
cultures and have different values, not only with what they want
and need but that will also provide them with never-beforeseen or imagined new value. A diverse society is formed by the
gathering of diverse individuals. Honda intends to contribute
to the over 7 billion people around the world who have various
values regardless of their age, gender, differences in culture or
presence or non-presence of disabilities.
The third direction is “toward a clean and safe/secure society.”
In environmental fields, Honda will accelerate initiatives for a zeroemission society by actively promoting the effective use of renewable
energy, realizing Zero Emission Vehicles (ZEV) and promoting
electrification in working to also achieve a zero-emission society.
In safety fields, Honda will provide safety and security to all
persons involved in transport as we work to create a collisionfree mobile society. The Company’s efforts will include promoting
traffic safety education that we have actively implemented
since our founding as well as improving vehicle safety through
intelligent and connectivity technologies.
Honda aims for a presence that leads the way in realizing a
“carbon-free society” and a “collision-free mobile society.”
Honda SUSTAINABILITY REPORT 2017
09
G4-2,G4-18,G4-19,G4-20,G4-21,G4-56,G4-DMA
Contents
1 Editorial Policy
6 Performance Report
■ Environment
■ Safety
2 Honda Philosophy
3 Overview
■ Quality
■ Social Activity
■ Human Resources
4 Message from the President and CEO
■ Supply Chain
7 GRI Content Index
5 Sustainability Management
8 Assurance
Vision
Positioning of 2030 Vision
Honda places the Honda Philosophy as the starting point of
all business activities. Additionally, by making the pursuit of
corporate growth opportunities compatible with the realization
of a sustainable society, Honda aims to be a “company that
society wants to exist,” which is the Company’s ongoing effort
for the 21st century. In order to meet this objective, Honda
has established three guidelines, namely, “Creating the Joys,”
“Expanding the Joys” and “Ensuring the Joys for the Next
Generation.” These also serve as guidelines for the 2030 Vision.
Honda is devising medium- and long-term strategies that
consider the roles it should fulfill and contributions it should
make and that are matched to the characteristics of each region
around the world, using as the Company’s guide its materiality
matrix, which assesses issues based on both stakeholder and
Honda’s corporate perspectives.
Honda Philosophy
Society’s expectations of Honda also continue to evolve along
with the times. As a responsible global company, the Company
will continue listening to the diverse opinions of society
and Honda’s stakeholders while making efforts to quickly
resolve issues to earn the trust and meet the expectations of
stakeholders (⇒ p. 11 “Materiality Matrix,” ⇒ p. 21“Stakeholder
Engagement”).
Reflecting in Management
Direction for the 21st century
Aiming to be a
“company that society wants to exist”
Stakeholder
Engagement
(⇒p. 21)
2030 Vision
Specific measures to
achieve vision
Management challenges
based on social aspects
(Materiality Matrix)(⇒p. 11)
Medium- and long-term strategies
Fiscal year plan
sustainability management
Honda SUSTAINABILITY REPORT 2017
10
G4-2,G4-18,G4-19,G4-20,G4-21,G4-56,G4-DMA
Contents
1 Editorial Policy
6 Performance Report
■ Environment
■ Safety
2 Honda Philosophy
3 Overview
■ Quality
■ Social Activity
■ Human Resources
4 Message from the President and CEO
5 Sustainability Management
7 GRI Content Index
■ Supply Chain
8 Assurance
Materiality Matrix
Evaluation of Issues from the Stakeholders’ Perspective
(Materiality Matrix)
At Honda, key issues that require addressing are organized
from a corporate perspective and from the viewpoint of our
stakeholders as a step toward achieving our long-term vision,
which is based on the Honda Philosophy. The materiality matrix
provides the essential framework for organizing these issues. By
creating and employing this matrix, we confirmed the coverage
of each issue and clarified where it is positioned.
The materiality matrix was prepared in two stages, in which
issues were identified and then were categorized according to
their materiality. Issues were identified through dialogue between
members of respective operating divisions within the Company and
from global and value chain perspectives in light of the status of
technological innovation, SDGs* and social issues pursuant to the
Paris Agreement. Evaluation of the materiality of these issues in
light of the views of stakeholders was conducted through dialogue
with leading environmental, social and corporate governance (ESG)
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 Company’s Sustainability
Strategy Committee meetings and other occasions.
This resulted in the successful visualization of critical issues
to be addressed on a priority basis as a mobility company,
including the realization of a carbon-free society and a collisionfree society. Our efforts aim to contribute to the achievement
of certain SDGs, notably Goal 13 “Take urgent action to combat
climate change and its impacts” and 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
will be reflected in corporate strategy and incorporated into
respective business activities to achieve the vision.
Realizing 2030 Vision
Materiality Matrix
Reflecting in corporate strategy
Prioritizing issues
to be addressed
Important to Stakeholders
Visualizing Issues and Reflecting in Corporate Strategy
Company that society wants
to exist
•Conserving water resources
•Deploying total supply chain
sustainability initiatives
•Respecting human rights
•Responding to climate change and
energy issues
•Ensuring clean air
•Advancing powertrain electrification
•Utilizing resources efficiently
•Reducing traffic fatalities
•Assuring outstanding product quality
•Eliminating the mobility divide
•Ensuring occupational health and safety
•Preserving biodiversity
•Managing chemical substances and
preventing pollution
•Contributing to the economic development of
developing countries
•Improving the quality of the mobility experience
•Applying automation and information
technologies to everyday life
•Strengthening brand management
•Utilizing management resources efficiently
•Strengthening governance
•Expanding diversity and development of
human resources
Issues in each quadrant share same priority
Important to Honda
*This refers to Sustainable Development Goals, which 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.
sustainability management
Honda SUSTAINABILITY REPORT 2017
11
G4-18,G4-34,G4-35,G4-36,G4-37,G4-42,G4-43,G4-44,G4-45,G4-46,G4-47,G4-48,G4-49,G4-DMA
Contents
1 Editorial Policy
6 Performance Report
■ Environment
■ Safety
2 Honda Philosophy
3 Overview
■ Quality
■ Social Activity
■ Human Resources
4 Message from the President and CEO
7 GRI Content Index
■ Supply Chain
5 Sustainability Management
8 Assurance
Sustainability Management Structure
Structure for Deliberating
Sustainability Initiatives
Around the world, the growth potential of companies is evaluated
increasingly not by short-term performance but from a mediumto long-term perspective.
Honda has been striving to strengthen initiatives to resolve
various issues that impact corporate value over the medium and
long term, taking into account the views of stakeholders. In other
words, we believe that improving sustainability as a company is
one of the vital elements of corporate strategy.
For this reason, we initiated the Sustainability Strategy
Committee, chaired by the company Vice President and COO, as
a platform to discuss and assess policy and initiatives related to
sustainability activities.
Through this Committee, we compare the challenges in
realizing the long-term vision of the company against the
expectations and demands of key stakeholders identified
through dialogue, and deliberate on material issues at the
management level, including verifying progress of response and
implementation.
From FY2018, it has been decided that sustainability issues
will be discussed in one committee in a more integrated manner,
including environmental and safety-related domains that were
discussed in a different committee until the previous fiscal year.
Honda determines corporate strategy through the Executive
Council and Board of Directors, taking into consideration the
key challenges examined here, which are implemented as
strategies and measures for business and functional operations
and subsidiaries.
Sustainability Management Structure from FY2018
Board of Directors
Executive Council
Sustainability Strategy Committee
Deliberate on material issues related
to all areas of sustainability including:
•Medium- and long-term strategies/policies
•Information disclosure direction
•Issues/progress
Chair: Vice President and COO
Attendees: Executive Council members,
Operating Officers, Audit and
Supervisory Committee members
(excluding Outside Directors)
Convened: Once per year
Executive Office: Corporate Planning
Supervisory Unit
Business and Functional Operations/Subsidiaries
sustainability management
Honda SUSTAINABILITY REPORT 2017
12
G4-34,G4-38,G4-39,G4-40,G4-41,G4-49,G4-L A12
Contents
1 Editorial Policy
6 Performance Report
■ Environment
■ Safety
2 Honda Philosophy
3 Overview
■ Quality
■ Social Activity
■ Human Resources
4 Message from the President and CEO
5 Sustainability Management
7 GRI Content Index
■ Supply Chain
8 Assurance
Corporate Governance
Basic Approach
Honda strives to enhance corporate governance as one of
the most important tasks for its management, based on the
Company’s basic principle, in order to strengthen the trust of
our shareholders/investors, customers and society; encourage
timely, decisive and risk-considered decision-making; seek
sustainable growth and the enhancement of corporate value
over the mid- to long-term; and become “a company that society
wants to exist”.
The resolution has been approved in a regular shareholders’
meeting held on the 15th of June 2017 and the Company is
adopting a “company with an Audit and Supervisory Committee”
system with the aim of reinforcing the supervisory function
of the Board of Directors and ensuring the prompt decisionmaking. Under the system, the Company operates the Audit
and Supervisory Committee, which consists of directors, to
delegate the authority to directors from the Board of Directors
and accelerate the separation of the supervisory function and
business execution function.
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 trust and appreciation from shareholders/
investors and society. Going forward, we will continue to strive to
ensure the transparency of our management.
Please refer to “Honda Corporate Governance Basic Policies”*
and Corporate Governance Report* for Honda’s basic policy,
structure and composition of members related to corporate
governance, policy on the appointment of directors, an outline
of self-assessment findings made by the Board of Directors and
philosophy on remuneration for Executive Officers.
*http://world.honda.com/investors/policy/governance.html
Corporate Governance Structure (as of June 15, 2017)
General Meeting of Shareholders
Company with Audit and Supervisory Committee
● Number of Directors (excluding Audit and Supervisory Committee Members)….9
Number of Outside Directors …………………………………………………..2
● Terms of Directors serving as Audit and Supervisory Committee Members ….2 years
Cooperation Accounting
Assistance
Report
Report
Business Ethics Report
Improvement
Proposal Line
Proposal
Audit
Report
Report
Compliance
Officer
Risk Management
Officer
Compliance
Committee
Global Emergency
Headquarters
Compliance
Risk Management
Report
Auditors
Audit and Supervisory
Committee Division
Executive Council
Supervision/
Delegation
of authority
Proposal /
Report
Audit Division
Report
Number of Specified Independent Auditors …………………………….3
Number of Female Outside Directors ……………………………………..1
Audit and Supervisory Committee
Proposal /
Report
(Representative Directors and Executive Directors)
Number of Female Directors …………………………………………………..1
Number of Outside Directors …………………………………………………..3
Election/
Dismissal
5 Directors (including 3 Outside Directors)
Election/Dismissal/
Supervision/
Delegation of authority
Number of Specified Independent Directors …………………………..2
● Term of Directors (excluding Audit and Supervisory Committee Members)….1 year
● Number of Directors serving as Audit and Supervisory Committee Members ….5
Audit
Board of Directors
14 Directors (including 5 Outside Directors)
Overview of corporate governance (as of June 15, 2017)
Form of organization
Election/Dismissal
Election/Dismissal
Respective Operations (Regional/Business/Functional)/Subsidiaries
sustainability management
Internal audit
Honda SUSTAINABILITY REPORT 2017
13
G4-34,G4-38,G4-39,G4-40,G4-41
Contents
1 Editorial Policy
6 Performance Report
■ Environment
■ Safety
2 Honda Philosophy
3 Overview
■ Quality
■ Social Activity
Corporate Governance
Corporate Governance
Executive Decision-Making Process
On June 15, 2017, in order to further strengthen the supervisory
function of the Board of Directors and speed up decisionmaking, the Company has determined to make the transition to a
company with an Audit and Supervisory Committee that enables
increased segregation between the supervisory function and
the business execution function and further delegation of the
business execution authority to the Executive Directors in
accordance with the provisions of the Company’s Articles of
Incorporation and resolutions approved by the Board. The new
system enables quick decision-making and prompt business
execution. Under the system, the separation of management
supervision and business execution is promoted, shifting the
focus of the board’s function more to overseeing business
execution.
The board has established criteria for deliberation and
delegated some of its authority to the Executive Council, which
in turn delegates some of its authority to the Regional Operating
Boards.
The Executive Council conducts preliminary deliberation on
items that will be decided by the Board of Directors, and, within
the limits of authority delegated to it by the Board of Directors,
deliberates on important management matters. Regional
Operating Boards deliberate on important management matters
within their respective regions, within the limits of authority
delegated to them by the Executive Council.
Board of Directors
The Board of Directors is comprised of nine inside directors and
five outside directors.
Candidates for Director are exceptional people who are familiar
with corporate management and the Company’s business, and
who have superior character and insight. Gender, nationality
and other attributes are of no consequence. Candidates are
■ Human Resources
4 Message from the President and CEO
■ Supply Chain
nominated by the Board of Directors.
In order 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
monitoring of operations. In addition, 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 Directors or
the Executive Directors.
Status of the meetings of the Board of Directors (FY2017)
● Number of meetings held (no. of times)…………………………………………………10
● Attendance rate of Directors (%)…………………………………………………………..100
Attendance rate of Outside Directors (%)…………………………..100
● Attendance rate of Corporate Auditors (%)…………………………………………..100
Attendance rate of Outside Corporate Auditors (%)…………..100
Outside Directors
The Company appoints outside Directors who can supervise
the Company’s business management from an objective and
broad perspective based on their abundant experience and
considerable knowledge. In selecting Outside Directors, the
Company seeks to identify persons who have a high degree
of independence. The five outside directors currently in office
satisfy Independence criteria for outside directors and their
interests are not in conflict with those of the Company nor
the shareholders.The five Outside Directors are specified as
independent directors as prescribed in a provision of the Tokyo
Stock Exchange (TSE); the names of those persons have been
submitted to the TSE.
Please refer to “Honda Corporate Governance Basic Policies”*
for Honda’s Independence Criteria for Outside Directors.
*http://world.honda.com/investors/policy/governance.html
Support Systems for Outside Directors
7 GRI Content Index
5 Sustainability Management
8 Assurance
the Secretarial Division or the Audit and Supervisory Committee’s
Division in a timely manner.
Materials on the board of directors’ agenda are distributed
and explained in advance for the outside directors, and the
information helpful for them to supervise the Company’s
business are continuously provided, including when they
assume their respective positions.
Business Execution Management
(Organizational Management)
On the basis of our Fundamental Beliefs and from a longterm perspective, to support business expansion six Regional
Operations functions have been established; they are responsible
for management of the business in their respective regions.
The Business Operations for motorcycles, automobiles and
power products develop medium- to long-term plans for
their respective products and coordinate efforts with the six
Regional Operations functions to optimize and enable smooth
global business operations. In addition, each of the Company’s
Functional Operations, including Business Management
Operations, Personnel Affairs and Corporate Governance
Operations, Brand Communications Operations, IT Operations,
Production Operations, Purchasing Operations and Customer
First Operations, is providing support and coordinating efforts
to increase the effectiveness and efficiency of the Honda Group
as a whole.
R&D activities are conducted mainly by independent
subsidiaries. These activities are carried out with Honda R&D
Co., Ltd. and its subsidiaries for products and Honda Engineering
Co., Ltd. and its subsidiaries for production technologies in order
to create distinctive and internationally competitive products
through the application of advanced technology.
In order to facilitate quick and appropriate management
decisions at the regional and working levels, Honda appoints
Operating Officers who have been delegated the business
execution authority from the Representative Director or the
Executive Director to play the roles in their respective fields of
Regional, Business and Functional Operations, R&D subsidiaries
and other major organizational units.
Honda provides necessary support to outside directors through
sustainability management
Honda SUSTAINABILITY REPORT 2017
14
G4-34,G4-38,G4-39,G4-40,G4-41,G4-51,G4-52,G4-53,G4-54,G4-55
Contents
1 Editorial Policy
6 Performance Report
■ Environment
■ Safety
2 Honda Philosophy
3 Overview
■ Quality
■ Social Activity
Corporate Governance
Audit Organization
The Audit and Supervisory Committee comprises five members who are
also directors of the Company (including three outside directors). In order to
respond to the entrustment of the shareholders, the Audit and Supervisory
Committee shall conduct audits of the directors and execute the duties of
the committee prescribed by laws and regulations with the aim of ensuring
sound and sustainable growth of the Company. Each Director serving as an
Audit and Supervisory Committee member audits the execution of duties by
directors in accordance with the auditing and supervisory criteria for the Audit
and Supervisory Committee, auditing policies and division of duties, etc., as
determined by the Audit and Supervisory Committee. The audit is carried out
through participation in deliberations of the Board of Directors, attendance at
meetings of the Executive Council and other important meetings, examination
of status of management/company assets, and other activities.
To provide timely and accurate reports to the Audit and Supervisory Committee,
Standards for Audit and Supervisory Committee Reports have been established.
Based on these standards, reports are made periodically to the Audit and
Supervisory Committee on the status of the business operations of the Company
and its subsidiaries, the status of implementation and operation of internal
control systems, and other matters. Also, reporting is required whenever there
is an item that has a major impact on the Company. Candidates of Directors for
Audit and Supervisory Committee Members are selected by a resolution of the
Board of Directors with the approval of the Audit and Supervisory Committee.
In addition to the above, the Audit Division, which was organized to
directly report to the President and CEO, conducts internal audits of each
department of the Company. It also provides supervision and guidance
to internal audit departments in major subsidiaries, as well as directly
auditing subsidiaries when necessary.
Status of meetings of the Board of Corporate Auditors
■ Human Resources
4 Message from the President and CEO
■ Supply Chain
as a staff organization directly under the Audit and Supervisory Committee
to provide support to the Committee.
In order to ensure the effectiveness of the audit, the Audit and Supervisory
Committee appoints two full-time members for the Committee.
Mr. Masafumi Suzuki, a director who is also a member of the Audit and
Supervisory Committee, has had sufficient operating experience in the finance
and accounting departments of the Company and its subsidiaries, and Mr. Hideo
Takaura, also a director and a member of the Audit and Supervisory Committee,
has abundant experience and considerable knowledge as a certified public
accountant. Both of them qualify as “persons with considerable knowledge of
finance and accounting,” as specified under Article 121-9 of the Implementation
Regulations of Japan’s Company Law. In addition, the Company’s Audit and
Supervisory Committee has recognized Messrs. Masafumi Suzuki and Hideo
Takaura as “specialists in finance in the Audit and Supervisory Committee” as
specified in the regulations of the U.S. Securities and Exchange Commission,
based on Article 407 of U.S. Public Company Accounting Reform and Investor
Protection Act of 2002 (Sarbanes-Oxley Act of 2002). All five members of the
Audit and Supervisory Committee remain independent as specified by the
regulations of the U.S. Securities and Exchange Commission.
Training for Officers
When a new officer takes a position, Honda provides him/her with a training
program that focuses on corporate governance as the central theme,
including outside training. The training program stresses the importance
of receiving an explanation in the reports on operations written by
associates on the impact in terms of not just financial performance but also
environmental and social aspects.
From now on, we are planning to implement a more systematic training
program including training for outside executives.
Remuneration of Directors
(fiscal year ended March, 2017) (before transfer to the company with the Audit and Supervisory committee)
● Number of meetings held (no. of times)…………………………………………………10
● Attendance rate of Corporate Auditors (%)…………………………………………..100
Attendance rate of Outside Corporate Auditors (%)…………..100
Status of Activities to Strengthen the Functions
of the Audit and Supervisory Committee
The Company has formed the Audit and Supervisory Committee’s Division
Remuneration of Directors (excluding those serving as Audit and Supervisory
Committee Members) is paid from a maximum allocation for this purpose
approved by the General Meeting of Shareholders, based on the remuneration
criteria approved by the Board of Directors. Bonuses of the directors (excluding
outside directors and the directors who are Audit and Supervisory Committee
members) are paid within the maximum limit approved by the General
Meeting of Shareholders and decided by the Board of Directors, based on the
Company’s performance during the applicable fiscal year, dividends paid to
sustainability management
5 Sustainability Management
7 GRI Content Index
8 Assurance
shareholders, criteria for associates’ bonuses and other considerations.
Please refer to Article 12* of the “Honda Corporate Governance Basic
Policies” concerning the policy for determining remuneration for Directors.
*http://world.honda.com/investors/policy/governance.html
Total amount of executive remuneration and bonuses, total amount by
type and number of eligible Directors (Units: Number of persons: millions of yen)
Category
Directors
Corporate Auditors
Total
(including Outside
Directors)
(including Outside
Corporate Auditors)
(including outside
executives)
Persons
Executive
remuneration
Executive
bonuses
Amount
Persons
Amount
Persons
Amount
13
(2)
13
(2)
647
5
181
18
828
(23)
(3)
(47)
(5)
(71)
275
13
275
(8)
(-)
(-)
(2)
(8)
923
181
1,104
Total
(31)
(47)
(79)
This amount includes remuneration paid to four Directors and one Corporate
Auditors who retired during the fiscal year ended March 2017.
Annual total remuneration and bonuses of highest paid individuals (Japan)
Annual total remuneration and bonuses of highest-paid individuals (millions of yen)
Ratio to median annual total remuneration for all associates (%)
150
1,896
Rate of increase in annual total remuneration and bonuses of
highest-paid individuals (Japan)
Rate of increase in annual total remuneration and bonuses of highest-paid individuals (%)
132
Remuneration of Accounting Auditors
The Company has had its financial statements audited in accordance
with the Company Law 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 83 staff members conducted external audits of the Company’s
financial statements. These accounting firm staff members are composed
of 3 certified public accountants (Hiroshi Miura, Hiroyuki Yamada and Tomoo
Nishigori), who are in overall charge of the Outside Audits, and 80 professional
staff members (including 26 certified public accountants, 3 accountants with
U.S. public accountant certification and 51 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 consented to by the Board of Directors, with the prior approval of the
Board of Corporate Auditors.
Honda SUSTAINABILITY REPORT 2017
15
G4-56,G4-SO7,G4-SO8,G4-PR7,G4-PR9,G4-DMA
Contents
1 Editorial Policy
6 Performance Report
■ Environment
■ Safety
2 Honda Philosophy
3 Overview
■ Quality
■ Social Activity
■ Human Resources
4 Message from the President and CEO
■ Supply Chain
7 GRI Content Index
5 Sustainability Management
8 Assurance
Compliance
Honda Code of Conduct
In order to earn the trust of customers and society and grow
sustainably, companies must not only comply with laws and
regulations but go beyond those legal structures by practicing
ethical corporate conduct.
Recognizing this, in 2003 Honda formulated the Honda
Conduct Guidelines for the Honda Group, which have been
shared throughout the Group, including subsidiaries in Japan
and overseas.
In light of the rising importance of compliance for Honda
as it expands business operations globally, which includes
responding to the enactment of laws such as competition laws
in each region of the world, the Honda Conduct Guidelines were
revised on April 1, 2016, outlining the behaviors to be practiced
by people working at Honda around the world. The guidelines
were renamed the Honda Code of Conduct* at the same time.
The Company works to impress the Honda Code of Conduct
on each and every associate through actions such as the
distribution of leaflets, posting of information on its intranet and
through training. Each of Honda’s departments and subsidiaries
regularly checks the status of activities to ensure awareness of
the Code, and, through the Compliance Committee, reports to the
Executive Council and the Board of Directors.
compliance matters, issues guidance on improvement to relevant
departments and performs oversight to ensure the appropriate
management of the Business Ethics Improvement Proposal Line.
For matters of compliance that are of particular importance,
the Committee formulates policy, proposes this to the Executive
Council and issues reports to the Corporate Auditors.
The Compliance Committee met three times in FY2017 to
report on the establishment and operating status of an internal
control system and status of activities to raise awareness of the
Honda Code of Conduct, among other things. There were no major
violations of laws or regulations in FY2017.
*http://world.honda.com/codeofconduct/
Compliance Committee
To strengthen compliance within the Honda Group, Honda has
established a Compliance Committee, headed by a Compliance
Officer designated by the Board of Directors, and composed of
officers appointed by the Compliance Officer and the Executive
Council. The Committee sets compliance policies and makes
decisions on any follow-up policies regarding important
Honda Code of Conduct
sustainability management
Honda SUSTAINABILITY REPORT 2017
16
G4-57,G4-58,G4-L A16,G4-HR3,G4-HR12,G4-SO3,G4-SO4,G4-SO5,G4-SO7,G4-SO11,G4-PR7,G4-PR9,G4-DMA
Contents
1 Editorial Policy
6 Performance Report
■ Environment
■ Safety
2 Honda Philosophy
3 Overview
■ Quality
■ Social Activity
Compliance
Business Ethics Improvement
Proposal Line
In 2003, Honda established the Business Ethics Improvement
Proposal Line as a mechanism for addressing issues involving
corporate ethics in cases of actions that violate laws or internal
rules. This allows the Company to accept suggestions and provide
consultation, from a fair and neutral standpoint, for associates who
face barriers in improving or resolving issues in the workplace for
reasons such as difficulties in consulting with superiors.
In addition to cases of clear violation of laws or internal rules, this
hotline provides consultation and responds to inquiries about the
details of internal rules when questionable actions have occurred,
and also engages in fact checking related to such cases. Suggestions
are accepted by email, letter, telephone or fax from all subsidiaries in
Japan and overseas, as well as from the parent company. Anonymous
suggestions are also accepted for the protection of submitters.
In October 2013 Honda also added a point of contact within an
external law office to facilitate the submission of suggestions. In
addition, local points of contact for suggestions have been added
in all Regional Operations and some subsidiaries have set up
their own points of contact.
In FY2017, 487 suggestions and consultations were handled
by the Business Ethics Improvement Proposal Line (including
points of contact outside the Company). Among these, 191
concerned the parent company and 272 concerned subsidiaries.
Following investigations, disciplinary action was taken in two
cases involving subsidiaries, and one of these two cases resulted
in punitive dismissal. No suggestions 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 our intranet, distributes information
cards the size of business cards to all associates, including fixed
term employees and temporary workers, and displays information
posters in each workplace. These tools also make it clear that the
associates submitting suggestions will be protected at the same
time. In addition, Honda observes how well these points of contact
are recognized through associate surveys conducted once every
■ Human Resources
4 Message from the President and CEO
■ Supply Chain
three years 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.
Initiatives to Prevent Bribery
The Honda Code of Conduct requires compliance with laws and
regulations and prohibits the bribing of politicians and civil
servants. The Honda Code of Conduct, revised in 2016, 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.”
In 2014, Honda also established the Honda Policy on the
Prevention of Bribery, which stipulates basic policy, and the Honda
Guideline for the Prevention of Bribery, which stipulates compliance
items and prohibited items, with a focus on prevention of bribery.
In addition to raising awareness by integrating bribery
prevention-related knowledge into Honda’s level-specific training
programs, it is also incorporating e-learning-based training for
its associates in management positions in departments that face
a higher risk of bribery. With regard to its subsidiaries, Honda
has launched training programs, matched to conditions in each
company, aimed at raising awareness.
Initiatives for the 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 employee “will comply with competition laws (antitrust
laws)” to ensure compliance with competition laws.
As a part of its measures to strengthen compliance, Honda
sustainability management
7 GRI Content Index
5 Sustainability Management
8 Assurance
incorporates programs on the topic of anti-competitive behavior
in level-specific training at the time of personnel promotions,
and in pre-assignment training for persons stationed overseas.
Honda also publishes awareness-raising content concerning anticompetitive behavior on the Company’s intranet for its associates.
Rules on Conflict Minerals
The final rule for disclosure on conflict minerals adopted by the U.S.
Securities and Exchange Commission (SEC) mandated by the DoddFrank Wall Street Reform and Consumer Protection Act (the DoddFrank Act) requires corporations to confirm that the purchase and
use of conflict minerals from the Democratic Republic of the Congo
and adjoining countries are contributing neither to the funding of
armed groups nor to the abuse of human rights in that region.
Honda’s policy is to aim to be free from conflict minerals which
contribute to the funding of armed groups or human rights
infringement. To achieve this goal and to help resolve the global
problem of conflict minerals, the Company is actively engaged with
domestic and international industry organizations and its suppliers.
As a member of the Automotive Industry Action Group (AIAG),
Honda North America Inc., Honda’s U.S. subsidiary, participates
in the smelter audit program promoted by the Conflict-Free
Sourcing Initiative (CFSI). In FY2017, the company visited
smelters in Vietnam to encourage compliance with standards
set by the CFSI. Honda will continue to take action globally
through collaboration with industry organizations.
With its suppliers, Honda shares the Honda Supplier CSR
Guidelines that summarize what is expected of them with regard
to CSR activities, including how to deal with conflict minerals,
and is encouraging procurement in line with the guidelines.
Since 2013, Honda has surveyed its suppliers worldwide
concerning the use of conflict minerals. This fiscal year, Honda
received responses from more than 6,000 suppliers. In addition
to reporting survey results to the SEC, the Company also makes
them publicly available on its website*.
In the event that the survey reveals any minerals of concern,
regardless of source country, Honda works together with its
suppliers to take appropriate measures. The Company is also
working to improve the accuracy of its survey, requesting further
investigation when survey responses are insufficient.
*http://world.honda.com/investors/library.html
Honda SUSTAINABILITY REPORT 2017
17
G4-2,G4-PR8,G4-DMA
Contents
1 Editorial Policy
6 Performance Report
■ Environment
■ Safety
2 Honda Philosophy
3 Overview
■ Quality
■ Social Activity
Risk Management
Establishing an Effective
Risk Management Structure
Honda formulated the Honda Global Risk Management Policy in
June 2015, with its applicability extended to Group subsidiaries,
with the aim of driving the company’s sustainable growth and
stabilizing management by anticipating risk and responding
swiftly. The regulations are based on the Honda Philosophy.
In order to address business-related risk, as well as risks
related to disasters that have the potential to impact operations
on a global scale, the Honda Global Risk Management Policy
details roles for each organizational rank. At the same time,
each organization is responsible for setting up an appropriate
structure and promoting its own independent risk management
activities. In addition, the Company has taken measures to support
implementation throughout Honda, including Group companies,
centered around a Risk Management Officer appointed by the
Board of Directors. As well as evaluating potential risk in terms
of impact and frequency, a Global Emergency Headquarters was
established to provide a response to incidents proportionate to
the anticipated magnitude of impact.
Risk Analysis
After experiencing the Great East Japan Earthquake and major
flooding in Thailand, Honda has since October 2013 begun
identifying priority risks from the bottom up for each of its
Regional and Business Operations. The purpose is to identify
potential risks and implement the necessary countermeasures,
thereby turning the risks into opportunities for growth.
As for specific procedures, for the 91 risk items identified by the
Honda Group, such as economic crisis, economic recession and
exchange rate and interest rate fluctuations, Honda performs risk
assessment by calculating the potential magnitude of impact and the
frequency of occurrence using common evaluation criteria. Based on
the results of the assessment, the Executive Officer of each of the
■ Human Resources
4 Message from the President and CEO
■ Supply Chain
Regional and Business Operations chooses the risks most relevant to
its regional or business operations in the next fiscal year. In addition,
information regarding risk management measures is shared among
members of management every year with monitoring of progress.
In FY2017, along with identifying priority risks from the
bottom up, the Company started identifying risks that require
company-wide response (company-wide priority risks) by using
a materiality matrix and from a long-term perspective based
on our visions and strategies. From FY2018 onward, Honda will
complete the top-down process of identifying company-wide
priority risks and implement required response systems.
Emergency Response
A series of large earthquakes that hit Kumamoto and other parts
of Kyushu in April 2016 caused substantial damage to Honda’s
Kumamoto Factory and dealers.
In response to the emergency, Honda set up a Global Emergency
Headquarters and made all out efforts for recovery of not just the
Kumamoto Factory but also suppliers and regional communities. Our
motorcycle production, which initially sustained significant damage,
returned to an almost normal level of operations on August 22, 2016.
After the dissolution of the Global Emergency Headquarters,
Honda conducted verification of the operational effectiveness of
the headquarters and responded to issues identified during the
emergency. The results of this effort have been reflected in the
Global Emergency Headquarters Manual, which consequently
underwent a major revision.
Also with regard to disaster drills, which had focused on
ensuring the safety of human life and procedures to account for
its associates, in addition to these Honda started training from
a business continuity planning (BCP) viewpoint on procedures to
share information for the purpose of identifying the impact on
business at an earlier stage.
Information Management
To ensure the protection of the personal information of our
customers, associates and others, the proper handling of company
sustainability management
7 GRI Content Index
5 Sustainability Management
8 Assurance
information, and in response to the increase in the handling of
high-level, confidential information globally such as 3D data, Honda
formulated the Global Confidentiality Policy (GCP) in FY2015 and
created a committee to promote regional information management
with the Director in charge of information management as its
chairman. This enables measures such as regulations to be
established and monitoring of the status of confidential information
management promoting information management on a global
scale. At a meeting of the Global Confidentiality Committee held in
FY2017, Honda confirmed that the establishment of an information
management system has been completed in each region and
approved the confidentiality action policies and initiatives for the
next three years starting from FY2018. Activities have been already
initiated under these policies and initiatives.
In addition to the already implemented Global Privacy Policy
(GPP) and the Electronic Conferencing Policy, Global Document
Management Regulations were approved at a Global Confidentiality
Committee meeting held in December 2016 and the formulation of
all GCP-related regulations has been completed.
In Japan, we promote initiatives to strengthen information
management throughout the year, led by the Japan Confidentiality
Committee.
Protection of Personal Information
In each department subject to Honda’s personal information
management policy, the Company appoints persons to handle
information, supervise information, and manage information
and requires all of them to receive training on the protection of
personal information.
Also, personal information is stored with rigorous security, including
in access-restricted electronic vaults or cabinets with locks. The
Company takes “inventory” of personal information at least once each
year and any unnecessary personal information is deleted.
In Japan, Honda formulated a new Specific Personal Information
Management Policy in November 2015 in response to the
enactment of the Japanese “My Number Act.” Honda has also made
an appropriate response to the Amended Act on the Protection of
Personal Information, which took full effect in May 2017.
In FY2017, no complaints were filed with Honda globally
concerning any leak of personal information.
Honda SUSTAINABILITY REPORT 2017
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G4-2
Contents
1 Editorial Policy
6 Performance Report
■ Environment
■ Safety
2 Honda Philosophy
3 Overview
■ Quality
■ Social Activity
■ Human Resources
4 Message from the President and CEO
■ Supply Chain
5 Sustainability Management
7 GRI Content Index
8 Assurance
Research and Development
Honing Our Technologies and
Promoting R&D with a Free
and Open Spirit
Since its establishment, Honda has undertaken research
on humans and focused on “being useful to people through
technologies.” Outside Japan, Honda is called Honda Motor while
in Japan, our birthplace, our corporate name is Honda Giken
Kogyo. The word “giken” stands for “technology research” and
encapsulates our desire to hone our technologies and contribute
to enriching and raising the quality of people’s lives.
In 1960, Honda spun off the research and development division as
a separate entity with the founding of Honda R&D Co., Ltd. By doing
so, an independent R&D structure that further invigorates creativity
through an open environment was established, enabling Honda to
create original technologies and products, and contributes to the
further development of the Company.
Honda R&D operates highly efficient development structured
into the motorcycle, automobile and power products businesses—
as separate R&D centers—in accordance with the products and
market characteristics of each business. Honda R&D promotes
wide-ranging in-house development that encompasses products
as well as technologies for raw materials and elements. This has
enabled Honda to gain a deep understanding of these technologies
and allowed for the creation of proprietary technologies and
products using unique concepts. The research centers share and
research results with one another for effective usage. Moreover,
Honda R&D undertakes R&D globally and works to develop products
matched to local markets and gathers information on leading-edge
technologies and markets in each region.
Honda established the Fundamental Technology Research
Center in 1986. The center has carried out a diversity of forwardlooking research in such areas as fuel cells, robotics, and aircraft
and aircraft engines. The center is promoting development
in these fields toward practical use and some products have
already been commercialized.
Aircraft research and development made a transition from
the Fundamental Technology Research Center to a volume
production development organization. These efforts bore fruit
at the end of 2015 with the certification of the HondaJet. This
aircraft realizes high performance and comfort using the nonconventional concept of mounting the engines above the wings.
Honda’s unrestrained creative powers that are not bound to
the status quo are continuously utilized in the research and
development of all Honda products.
T O P I C S
Reducing Resource and Supply Chain Risk Using a
Magnet Completely Free of Heavy Rare Earth Elements
Honda and Daido Steel Co., Ltd. became the world’s first
companies to achieve practical application of a neodymium
magnet containing no heavy rare earth and that can be used
in the driving motor of a hybrid vehicle. This neodymium
magnet was applied to the all-new Freed minivan. Neodymium
magnets, which have the highest magnetic force among all
magnets in the world, are being used for the drive motors of
electric vehicles. Heavy rare earth is added to the neodymium
magnets as a conventional method for securing high heat
resistance. However, major deposits of heavy rare earth
elements are unevenly distributed around the world and are
also categorized as rare metals. For these reasons, reducing
the usage of heavy rare earth elements is a major issue. The
use of this technology will make it possible to avoid resourcerelated risk, reduce costs and diversify procurement channels.
T O P I C S
Leading the Way in Environmental Performance of
Small Jet Engines
Honda started research on aircraft engines in 1986.
These engines were mounted on the HondaJet, which was
under development as a business jet, and full-scale flight
testing was performed in 2003.
Jointly developed with GE, the HF120 turbofan engine
obtained Type Certification in 2013 and boasts the highest
thrust-to-weight ratio in its class as well as high endurance
reliability. The fan, which requires a particularly high level
of technology, meets the difficult challenge of attaining the
highest degree of balance among ruggedness, performance
and lightness giving consideration to safety as a top priority.
The engine realizes low fuel consumption through the intake
of larger amounts of air as well as efficient compression
and combustion to obtain large thrust. At the same time,
the engine assures sufficient strength for withstanding the
intake of foreign objects during flight to raise safety.
In this way, the HF120 achieves top-of-class environmental
performance and leads the industry.
Exhaust nozzle
Duct
Combustor
Mixer
Fan
Low pressure
turbine
High pressure
turbine
Low pressure
compressor
High pressure
compressor
Magnet completely free of heavy rare
earth elements
Rotor for i-DCD drive motor
sustainability management
Perspective diagram of the HF120 turbofan engine
Honda SUSTAINABILITY REPORT 2017
19
G4-2
Contents
1 Editorial Policy
6 Performance Report
■ Environment
■ Safety
2 Honda Philosophy
3 Overview
■ Quality
■ Social Activity
■ Human Resources
4 Message from the President and CEO
■ Supply Chain
7 GRI Content Index
5 Sustainability Management
8 Assurance
Innovation Management
Promoting R&D under an
Open Structure That Advances
“Mobility” and “Living”
The world of mobility, beginning with automobiles, has been
evolving dramatically over the past several years. Honda regards
this major wave of change as an opportunity to transform itself.
To the present, Honda has created original technologies and
products based on unique ideas through in-house development
of technologies. On the other hand, this approach took time,
which also included the development of human resources. In this
age of massive and rapid change, Honda will leverage its own
strengths while strategically incorporating external technologies
and business ideas with the aim of achieving further growth.
Specific examples include an alliance with Singapore-based
Grab Inc. for motorcycle sharing services and an alliance with
General Motors for the development and production of fuel cells.
In the future as well, we will strive for alliances that can further
expand and complement Honda’s strengths.
In January 2017, Honda exhibited products for the first time
in 10 years at the Consumer Electronics Show (CES) 2017, the
world’s largest trade fair in the consumer electronics industry
held in the United States. At this event, Honda announced its
open collaboration with companies that possess a variety of
technologies and know-how extending beyond the boundaries of
fields such as artificial intelligence (AI), big data and robotics, as
well as the fusion of Honda and external technologies and ideas
to create new value.
Honda R&D Innovations, Inc. (referred to as “HISV”), based
in Silicon Valley in the United States, is the organization that
handled the main exhibits at CES 2017. This involved HISV
announcing the results of joint research being promoted openly
with startups and IT companies at a research hub established by
Honda in 2000 in Silicon Valley.
Honda also established a research hub, Honda Innovation Lab
Tokyo, with the aim of promoting open interchanges in Japan
in addition to those in the United States. Silicon Valley and
Tokyo are places where cutting-edge technology and cultural
exchanges flourish because they have optimal environments for
spurring innovation.
Meanwhile, in February 2017 Honda announced its plans
to establish R&D Center X, a new research and development
operation for the purpose of creating new value that works
cooperatively with people, targeting 2030 and onward. The
Company believes that the evolution of digital technology will
bring Honda potentials for value creation and it will take on the
challenge of spurring innovation in a wide range of fields based
on the concept of “AI × Data × Honda’s strengths.”
However, Honda considers that linkages with business are
crucial for creating new things and spurring innovation. It has,
therefore, significantly strengthened its operation in charge
of business development at the corporate headquarters.
The Company has established a structure for ensuring more
collaboration than ever before with research centers and that
can more quickly create products and services that offer new
value.
T O P I C S
Collaboration in Motorcycle Sharing in
Southeast Asia
In December 2016, Honda began considering business
collaboration with Grab Inc., which engages in motorcycle
and automobile sharing services in Southeast Asia. Amid
the ongoing shift in usage formats from “ownership” to
“shared use” of products, both companies will strive to
realize a business for motorcycle sharing in Southeast
Asia. Additionally, the companies will work on the
mitigation of traffic congestion in urban areas, promote
environmental and safety initiatives and provide further
“security, safety and convenience.”
T O P I C S
Honda Riding Assist Wins Three Awards
The Honda Riding Assist motorcycle, a concept model of
Honda’s self-balancing motorcycle, won three awards
at CES 2017. These include the Best of CES 2017, “Best
Innovation” and “Best Automotive Technology” awards
sponsored by Engadget*1, the official partner of the Best
of CES Awards. The Honda Riding Assist also won Best
of CES “Editors’ Choice Awards” sponsored by the U.S.
magazine Popular Mechanics*2.
*1 Engadget is a multi-language technology
blog that exhaustively covers topics
related to electrical appliances and
gadgets.
*2 Popular Mechanics is a technology
magazine that has been covering a
broad range of topics such as automobiles,
houses, outdoor activities, science and
technologies since 1902.
Honda Riding Assist
Exhibit at CES 2017
sustainability management
Honda SUSTAINABILITY REPORT 2017
20
G4-24,G4-25,G4-26,G4-27,G4-SO1,G4-DMA
Contents
1 Editorial Policy
6 Performance Report
■ Environment
■ Safety
2 Honda Philosophy
3 Overview
■ Quality
■ Social Activity
■ Human Resources
4 Message from the President and CEO
5 Sustainability Management
7 GRI Content Index
■ Supply Chain
8 Assurance
Stakeholder Engagement
Basic Approach
To be a “company that society wants to exist,” Honda must
appropriately and accurately convey to society the value that it
seeks to offer. Together with this, Honda must put into practice
a communication cycle in which it engages in dialogue with
diverse stakeholders to grasp and understand the demands
and expectations placed on the Company, translate these into
concrete measures and implement them, and finally 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, the various divisions at Honda
conduct dialogues globally, through a variety of opportunities,
with the stakeholders engaged in Honda’s business: those
stakeholders shown in the diagram on the right that either are
impacted by Honda’s business activities or whose activities that
impact Honda’s business activities.
As an example, through dialogue with shareholders, in addition
to conventional investor relations (IR) activities, Honda conducts
shareholder relations (SR) activities, which mainly introduce ESG
initiatives; exchanges opinions with institutional investors as our
shareholders; and introduces Honda’s strategies and initiatives
by way of shareholder events and shareholder magazines.
In addition, opinions gained from leading ESG rating agencies
and NGOs are reflected in the Materiality Matrix (⇒ p. 11), which
is utilized in identifying issues Honda ought to be addressing.
Stakeholder Engagement
Customers
Associates
Associate satisfaction
surveys, direct
communication between
executives and associates,
education and training via
intranets and internal
media, etc.
Customer satisfaction
surveys, safe driving
activities at
dealerships, motor
shows and other
events, etc.
Shareholders
and Investors
Shareholders magazine,
financial results
briefings and briefings
for institutional
investors, etc.
Policymakers
Local communities
Participation in the council
bodies of government
institutions, economic
organizations and industrial
groups, participation in
international
initiatives, etc.
Networking events for
local residents, plant
tours, events for
children and students,
social activities by
associates, etc.
Honda
Dealers
Research institutes
Support for academic
meetings, collaboration
with universities, special
lectures, merchantability
verification for products,
co-development of
technologies, etc.
Dealer
Conferences/briefings,
inspection by
certification system,
etc.
Experts/Local
government
Suppliers
Supplier networking
events/briefings, joint
events, supplier risk
assessments, etc.
Dialogues concerning
local government
policies and available
technologies, feasibility
studies, etc.
NGOs
Media
Collaborative projects,
regular communication,
response to surveys and
questionnaires, etc.
Communication with
journalists, new
model/technology
launch events, press
releases, etc.
sustainability management
Honda SUSTAINABILITY REPORT 2017
21
G4-15,G4-16,G4-SO6,G4-DMA
Contents
1 Editorial Policy
6 Performance Report
■ Environment
■ Safety
2 Honda Philosophy
3 Overview
■ Quality
■ Social Activity
■ Human Resources
4 Message from the President and CEO
■ Supply Chain
7 GRI Content Index
5 Sustainability Management
8 Assurance
Stakeholder Engagement
Cooperation with External
Organizations
To carry out our responsibility as a global mobility-related
manufacturer, Honda engages in dialogues with government,
economic and industry organizations and also cooperates
with external bodies. In Japan, Honda personnel serve as vice
chairman, committee head and committee member within the
Japan Automobile Manufacturers Association, president of
the Society of Automotive Engineers of Japan, as well as vice
president of the Tokyo Chamber of Commerce and Industry.
In addition, Honda personnel serve as technical committee
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 decisionmaking. Political contributions are made following required
internal procedures based on the laws and regulations of
respective countries.
External Evaluations
Honda Selected to the Dow Jones Sustainability Asia/
Pacific Index
Securing an A- on the CDP Japan 500 Climate Change
Report 2016
Honda was selected for the second consecutive year as a
member of the Dow Jones Sustainability Asia/Pacific Index after
being ranked in the top two for the Automobiles sector for the
Asia Pacific region in the Dow Jones Sustainability Indices (DJSI),
one of the key benchmarks for socially responsible investing.
The DJSI are investment indices developed and offered
cooperatively by U.S.-based S&P Dow Jones Indices and
Switzerland-based RobecoSAM, which evaluate the sustainability
of the world’s leading companies from three perspectives in
terms of economic, environmental and social criteria and select
companies that demonstrate overall excellence for inclusion in
the indices.
In November 2016, CDP released the results of a survey on
climate change initiatives and reduction of GHG emissions for
5,000 major companies worldwide.
Honda received an A- rating, a score at the leadership level,
in recognition of activities deemed to be best practices in
environmental management in the CDP Japan 500 Climate
Change Report 2016, one of those categories.
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 in environmental challenges are evaluated in the four
stages of information disclosure, awareness, management and
leadership.
Selected for the Second Straight Year with a Bronze
Class Rating in the RobecoSAM Sustainability Index
Honda was selected for the second year running with a Bronze
Class rating in the Automobiles sector of the Sustainability Award
2017 issued by Switzerland-based RobecoSAM. RobecoSAM
evaluates sustainability of approximately 2,500 companies
worldwide in terms of economic, environmental and social
criteria. Companies deemed to be particularly outstanding in
each sector are rated in categories of Gold Class, Silver Class
and Bronze Class each year.
sustainability management
Honda SUSTAINABILITY REPORT 2017
22
Contents
1 Editorial Policy
6 Performance Report
■ Environment
■ Safety
2 Honda Philosophy
3 Overview
■ Quality
■ Social Activity
■ Human Resources
4 Message from the President and CEO
■ Supply Chain
7 GRI Content Index
5 Sustainability Management
8 Assurance
Stakeholder Engagement
T O P I C S
Honda Established the Honda Marine Science Foundation
in California
Honda established the Honda Marine Science Foundation, a new
initiative to address marine ecosystem restoration and the impact
of humans and climate change on oceans and intertidal areas. The
foundation will support science-based programs that improve and
preserve coastal areas for future generations. This foundation
board is comprised of Honda representatives and experts from
the marine sciences field, including the National Oceanic and
Atmospheric Administration (NOAA), Santa Monica-based Heal the
Bay, UCSB Bren School of Environmental Science & Management
and the Aquarium of the Pacific in Long Beach, California. The
first initiative is the Southern California Native Oyster Restoration
Project and the goals include pioneering research to educate the
public about the benefits of restoring native oysters for shoreline
stabilization.
Honda determined the foundation would foster meaningful
cross-sector collaboration to help restore marine ecosystems.
NSX Auctioned in Support of Charitable Causes
Honda Marine Science Foundation logo
Ceremony for the establishment of
the foundation
The 2017 NSX, a super sports car resurrected after about 10 years,
was the first all-new Acura vehicle to be auctioned for the benefit
of charitable organizations – the Pediatric Brain Tumor Foundation
and Camp Southern Ground, which supports children who have
trouble fitting in and those with neurobehavioral illnesses – at
the world-famous Barrett Jackson Auction in Scottsdale, Arizona.
Honda/Acura dealer and race team owner Rick Hendrick walked
away with the NSX VIN #001 for a record $1.2M USD. Additionally, a
second NSX was also auctioned off for charity in February 2017 for
the Grammy Foundation’s MusiCares charity. MusiCares provides
healthcare to musicians who do not receive adequate services
from the government or healthcare system.
Auction venue
A record bid was achieved in front of
the children.
Students participating in a project
Smart City Challenge and Northwest US33 Corridor Projects in Ohio
In June 2016, the City of Columbus, Ohio won the U.S. Department of Transportation Smart
City Challenge from among 78 cities nationwide. The eco-conscious social pilot project aims to
promote smarter cities that can enable all residents to move easily and to access opportunity.
These activities are in alignment with Honda’s dream of a collision-free mobile society. With
a strong manufacturing and R&D presence in central Ohio, Honda will help the city move into
this new era of advanced technology and help chart the course to the future of mobility. Honda
also has pledged to make available a number of plug-in hybrid and electric vehicles for the city.
In addition, the Northwest U.S. 33 Smart Mobility Corridor project will provide Honda with
an ideal place to test and analyze “vehicle-to-everything” (V2X) communications network
technologies that connect cars with people and road communication systems in a real-world
setting.
sustainability management
Honda SUSTAINABILITY REPORT 2017
23
Contents
1 Editorial Policy
6 Performance Report
■ Environment
■ Safety
2 Honda Philosophy
3 Overview
■ Quality
■ Social Activity
■ Human Resources
4 Message from the President and CEO
■ Supply Chain
7 GRI Content Index
5 Sustainability Management
8 Assurance
6
Environment
30%
Honda is aiming to reduce the CO2 emissions intensity of
motorcycles, automobiles and power products by 30%
compared with 2000 levels by 2020, and is engaging in
three initiatives to achieve this.
environment
Honda SUSTAINABILITY REPORT 2017
24
G4-SO2,G4-DMA
Contents
1 Editorial Policy
6 Performance Report
■ Environment
■ Safety
2 Honda Philosophy
3 Overview
■ Quality
■ Social Activity
■ Human Resources
4 Message from the President and CEO
■ Supply Chain
7 GRI Content Index
5 Sustainability Management
8 Assurance
Basic Approach
Honda’s Environment
Statement/Honda
Environmental and
Safety Vision
Ever since the 1960s, Honda has actively endeavored to solve
environmental problems. We developed the low-pollution CVCC
engine that successfully reduced carbon monoxide, hydrocarbon
and nitrogen oxide (NOx) emissions, while we were the world’s
first automaker to comply with the U.S. Clean Air Act in the
1970s—a regulation thought at the time to be the most stringent
in the world.
In 1992, Honda’s Environment Statement was released
to serve as the Company’s guideline for all environmental
initiatives. The statement articulates the basic stance we had
developed until then to reduce environmental impact at every
stage in the life cycle of our products, from product procurement
to 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 that
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 are engaging in the reduction of all kinds
of environmental impacts from the aspects of both productionbased and corporate activities, beginning with GHG emissions,
which are considered to be a cause of climate change; use of
resources, including water and minerals; and suitable processing
and reduction of waste.
Honda will conduct these activities while sharing the Honda
Environment Statement with everyone associated with Honda—
including suppliers and distributors in addition to Honda Group
companies—in order to realize this vision.
environment
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 activity. Only in this way
will we be able to count on a successful future not only for our company, but 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 services and disposal.
2. We wil…