Honda announced the auto manufacturer plans to increase the number of carbon neutral factories it operates and electrify products to reduce emissions.
The company plans to prioritize the improvement of production efficiency through process enhancements and implementing energy-saving measures at its factories, according to Honda’s ESG Report. Honda will also continue the electrification of its factory equipment when equipment upgrades or automation are conducted.
Honda designated its Saitama Factory Automobile Plant as a leading facility for carbon neutrality and applied three key technologies. By advancing these initiatives, the company aims to achieve Honda’s first carbon-neutral factory in the fiscal year ending March 31, 2026.
The technologies and expertise accumulated through these efforts will be shared across other sites and expanded to achieve carbon neutrality tailored to regional characteristics. Honda will work toward realizing carbon-neutral factories at all of its automobile production sites worldwide by the late 2030s.
The manufacturer is also expanding the number of its electric products — including motorcycles, automobiles, and power products — as an effective measure to reduce CO2 emissions from product use.
To address CO2 emissions from the use of fossil fuel-based electricity, Honda is working on reductions through the procurement and utilization of renewable energy, including the installation of solar panels on factory premises, according to a statement.
Honda is actively installing solar panels on buildings, factory roofs and parking lots within its premises and is also implementing stationary battery storage systems. This approach aims to minimize the company’s own CO2 emissions from its operations and enhance its reduction efforts.
In regions such as Japan and North America, Honda is also advancing the procurement of renewable energy sourced from external suppliers. As a case example in Japan, Honda signed a virtual power purchase agreement (PPA) with Rusutsu Wind LLC in September 2024 and plans to acquire the non-fossil certificate, or environmental value, from the fiscal year ending March 31, 2026.
By increasing the sales ratio of electric products, Honda aims to achieve reductions in CO2 emissions for Scope 3 Category 11. While the electrification of products will contribute to reducing CO2 emissions, some emissions from the use of electric products may remain depending on the availability and adoption of renewable energy in different countries and regions.
Honda aims to achieve carbon neutrality by 2050. To achieve this, the company is prioritizing reductions in CO2 emissions from product use (Scope 3 Category 11) and from its own business activities (Scope 1 and 2), setting these as key milestones for its efforts.