Honda Motor Co., Ltd. today issued the Honda ESG Data Book 2024 and posted it on the company website. (See below for the link.)
For a diverse range of Honda stakeholders, the Honda ESG Data Book 2024 comprehensively summarizes the approach and initiatives Honda is taking concerning sustainability from the perspectives of ESG (Environment, Social, and Governance).
As one of the tools to enhance communication with its shareholders, Honda has been issuing the “Honda ESG Data Book” as well as the “Honda Report” on an annual basis. In contrast to the Honda Report which focuses on sharing stories about how Honda will enhance its corporate value into the future, the ESG Data Book primarily summarizes the basic approach Honda is taking to sustainability, the initiatives in each of the ESG areas and data related to the performance and achievements of Honda in each area.
Honda ESG Data Book 2024
Japanese language version: https://global.honda/jp/sustainability/report/
English language version: https://global.honda/en/sustainability/report.html
Honda is striving to evolve as a company to continue creating new value based on its unchanging desire since its founding – to “help people and society” and “expand people’s life’s potential.” By further enhancing opportunities to communicate with its stakeholders through the ESG data book and other communication materials, Honda will further advance its sustainability initiatives and strive to continue to be a company society wants to exist.
Main contents of the Honda ESG Data Book 2024:
Honda approach to sustainabilityEnvironmental initiativesSocial initiatives (safety, quality, human rights, human resources, supply chain management and social contribution activities)Governance initiatives (corporate governance, compliance and risk management)Performance data (data related to each of ESG areas).
Company contact: 2-1-1, Minami-Aoyama, Minato-ku, Tokyo 107-8556, Japan Tel: +81-(0)3-3423-1111 (main)
Honda Motor Co., Ltd. (Honda) and Mitsubishi Corporation (MC) today announced plans to establish a new 50/50 joint venture (JV) company, ALTNA Co., Ltd. (ALTNA), in July 2024. The new JV is based on the memorandum of understanding (MoU) the two companies signed in October 2023 to begin discussions toward the creation of new businesses in light of anticipated growth in the electric vehicle (EV) market toward a decarbonized future society.
The two companies decided to establish a joint venture company and work together to address challenges toward the societal implementation of EVs and the realization of decarbonized society such as the following:
1) Optimization of the EV usage cost; 2) Enhancement of the lifetime value of batteries, which contain various limited resources, and improvement of resource circulation within Japan; and 3) Accommodation of the increasing demand for adjustment capacities through grid storage batteries toward an increase in the proportion of renewable energy in the energy mix in Japan.
By combining Honda control and connected technologies for EVs and batteries and MC power-generation know-how, which extends to the administration of storage-battery systems and smart-charging operations, ALTNA will strive to offer new mobility services that reduce the total cost of ownership for EV users and create new power-supply operations that enable long-term utilization of EV batteries.
Businesses to be conducted by the new company
1. Battery Leasing Business
In collaboration with affiliated leasing companies of Honda and MC, ALTNA will begin sales of lease plans, starting with the Honda N-VAN e:, new commercial-use mini-EVs Honda is planning to launch in October 2024. When a vehicle is leased to a customer, ALTNA will retain ownership of the battery and monitor battery usage during the lease period. Continuous monitoring of the battery conditions, including predictions of future battery deterioration, will enhance the reliability of the battery measured by various parameters, including the battery state of health (SOH)*1. Based on such high reliability of batteries, ALTNA will conduct business that utilizes batteries for a long period of time, or for their entire life cycle, from the time of new vehicle sales through the ownership by second and subsequent owners.
After the end of automotive use, batteries will be recovered and utilized for ALTNA’s grid storage battery business (battery repurposing business). ALTNA will set leasing prices based on the assumption that batteries will be utilized for a long period of time, from on-vehicle to stationary applications, which will contribute to a reduction of the financial burden on EV users.
EV lease plans ALTNA will offer in collaboration with the affiliated leasing companies of Honda and MC
1) N-VAN e: Value Plan
A closed-end*2 lease ALTNA will offer to Honda EV users in collaboration with Honda and Honda affiliate companies. By assuming that EV batteries will be used later for its repurposed storage battery business, ALTNA will offer this plan at prices lower than those of similar lease plans currently available in the market. This lease plan will be available exclusively through the Honda online new vehicle store, Honda ON (https://on.honda.co.jp/), from October 10, 2024, simultaneously with the market launch of the N-VAN e: in Japan.
The details of the N-VAN e: Value Plan are available at the following page on the Honda ON website.
2) N-VAN e: Circular Lease Plan
This is a highly economical, closed-end plan that is currently being discussed in collaboration with Mitsubishi Auto Leasing Corporation (MALC). By taking advantage of MALC’s proprietary EV consultation program “EV4CHANGE,” this plan will offer corporate users end-to-end customer support to address challenges associated with the introduction of EVs, from establishing fleet electrification plans to setting up charging infrastructure and optimizing vehicle use.
Please click the link below for more information on the EV4CHANGE program.URL：https://mobitips.jp/service/ev
2. Battery Repurposing Business
ALTNA will also conduct an electric power business to repurpose end-of-life EV batteries and manage as grid storage batteries. This will provide the supply-demand adjustment capacities to enable greater grid stability and also contribute to widespread utilization of renewable energy. Through its battery leasing business, ALTNA will continuously monitor the use conditions of EV batteries, and then recover end-of-life EV batteries based on data obtained through the long-term monitoring. By fully utilizing such batteries, ALTNA will achieve long-term and stable operation of its grid storage batteries.
Moreover, ALTNA will ensure appropriate recycling of its end-of-life grid storage batteries to realize resource circulation-oriented manufacturing.
3. Smart Charging*3 Business
ALTNA also will offer EV charging plans that optimize electricity costs for EV users by leveraging advanced energy-control technologies to avoid charging EVs during on-peak hours on the grid. Through the linkage between its energy control system and customers’ EVs, charging will be automatically performed at the time of day when the procurement cost of electricity is lowest according to their vehicle usage schedule. This will eliminate the customer burden of identifying the optimal charging timing on their own and contribute to the reduction of their EV usage cost. In addition, ALTNA’s charging plans will contribute to the increased use of green (renewable) energy by charging EVs during times when there is a surplus of renewable energy on the power grid.
Moreover, ALTNA will proceed with consideration toward offering V2G*4 services with an eye toward the opening up of the electricity market in the future.
Comments by Toshihiro Mibe, Director, President and Representative Executive Officer of Honda:
“With an eye toward the future popularization of EVs, Honda is working toward the establishment of a vertically-integrated EV value chain that includes all aspects of EV business, from the procurement of raw materials to the production of finished EVs, as well as the repurposing and recycling of EV batteries. We are very pleased to establish a new company with MC, which has deep knowledge of electric power business and shares our aspiration to realize a decarbonized society. Starting with N-VAN e:, we will take a proactive approach to establish a sustainable business foundation not only for the sales of EVs as mobility products, but also to create an optimal EV business environment including full utilization of batteries, which we believe will be critical for the popularization of EVs.”
Comments by Katsuya Nakanishi, Representative Director, President and CEO of MC
“We are pleased to be working with Honda, which boasts outstanding technological capabilities and is committed to the realization of resource circulation. With its business model to integrate mobility, energy, services and data, our new joint venture will take on challenges to introduce a new scheme that separates the ownership of the vehicle and battery of a single EV unit. Working toward the realization of a carbon-neutral society through societal implementation of EVs, we will leverage MC’s broad range of industrial contacts and business expertise and continue to work on the establishment of cross-industrial business models.”
Comments by Seiichi Fukui, Representative Director, President and CEO (to be) of ALTNA
“ALTNA will be established with a mission to create solutions that maximize the lifetime value of limited resources and the efficiency of renewable energy utilization in order to enable people and the global environment to coexist for generations to come. Together with various partners, we will provide alternative options for a new future.”
(1) SOH (state of health): One of the parameters that indicate the state of battery deterioration. (2) Closed-end lease: A type of lease contract in which the leasing company guarantees the residual value at the end of the lease term. (3) Smart charging system automatically adjusts the timing of EV charging according to electricity supply and demand.* (4) V2G (Vehicle to Grid): Technology to charge EVs with electricity from the grid as well as to supply electricity stored in EVs to the grid.
Honda Motor Co., Ltd. (Honda) today announced that Honda and IBM have signed a Memorandum of Understanding (MOU) outlining their intent to collaborate on the long-term joint research and development of next-generation computing technologies(1) needed to overcome challenges related to processing capability, power consumption, and design complexity for the realization of the software-defined vehicles (SDV) of the future.
The application of intelligence/AI technologies is expected to accelerate widely in 2030 and beyond, creating new opportunities for the development of SDVs. Honda and IBM anticipate that SDVs will dramatically increase the design complexity, processing performance, and corresponding power consumption of semiconductors compared to conventional mobility products. In order to solve anticipated challenges and realize highly-competitive SDVs, it is critical to develop capabilities in the independent research and development of next-generation computing technologies. Based on this understanding, the two companies began considering long-term joint research and development opportunities.
In particular, the MOU outlines areas of potential joint research of specialized semiconductor technologies such as brain-inspired computing(2) and chiplet technologies, with the aim to dramatically improve processing performance while, simultaneously, decreasing power consumption. Hardware and software co-optimization is important to ensure high performance and fast time to market. To achieve such benefits and manage design complexity for future SDVs, the two companies also plan to explore open and flexible software solutions.
Through this collaboration, the two companies would strive to realize SDVs that feature the world’s top-level computing and power saving performance.
(1) Computing technology being developed with an aim to achieve both high processing performance and low power consumption in the 2030s and beyond. (2) Computer architecture and algorithms that mimic the brain’s structure and function while optimizing for silicon.
Honda R&D (India) Private Limited (HRID), a subsidiary of Honda Motor Co., Ltd. and functioning as Honda’s research and development arm for motorcycles & power products in India, today opened its new Solution R&D Center in Bengaluru, Karnataka.
Honda sets global target of achieving carbon neutrality in all of its products and corporate activities by 2050, and is working to make a wide range of its products carbon neutral in terms of their power sources. In the motorcycle business, Honda is aiming to achieve carbon neutrality for all of its motorcycle products during the 2040s.
Shifting to India where economic development continues, in 2021, the Indian government announced at the United Nations Framework Convention on Climate Change (also known as 26th Conference of the Parties, COP26) that the country will work toward achieving net zero greenhouse gas emissions by 2070.
Under such environmental change, Honda believes that in order to continue to be chosen by customers, the company needs not only to respond to electrification trends, but also to create new value outside of the established framework, and provide more attractive products and services.
The Solution R&D Center will incorporate advanced mobility technologies into electrified vehicle development more quickly, as well as work on software and connected services through ‘co-creating’ open innovation by adopting technologies and ideas of research and development companies. In addition, by taking advantages of ‘ecosystem*1’ from its geographical location, the Solution R&D Center will be partnering with companies with new ideas to develop new services and businesses that go beyond the scope of existing businesses and products from a long-term perspective.
Furthermore, Honda will actively work to solve social issues, such as the effective use of energy through Honda’s Triple Action to ZERO*2 initiative (carbon neutrality, clean energy, and resource circulation), and the prevention of traffic accidents to realize a society with zero traffic collision fatalities*3.
Honda will continue to provide products with new added value that is uniquely Honda, through various technological advancements and innovations, bringing ‘the joy of freedom of mobility’ to its customers.
(1) A common profit environment for products and services established by multiple companies. (2) Honda’s three pillars to achieve zero environmental impact throughout the life cycle of products and corporate activities by 2050. (3) Honda aims to achieve zero fatalities in traffic accidents involving Honda motorcycles and automobiles globally by 2050.
Honda Motor Co., Ltd. today announced that it plans to build a comprehensive EV value chain in Canada with an approximate investment of CAD$15 billion, including investment by joint venture partners, to strengthen its EV supply system and capability to prepare for a future increase in EV demand in North America. Honda has begun evaluating the requirements to build an innovative and environmentally responsible Honda EV plant and a stand-alone Honda EV battery plant in Alliston, Ontario. The proposed Honda EV value chain will also include a cathode active material and precursor (CAM/pCAM) processing plant through a joint venture partnership with POSCO Future M Co., Ltd. and a separator plant through a joint venture partnership with Asahi Kasei Corporation, with announcements to follow in their respective Ontario communities.
Honda expects that electric vehicle production will begin in 2028. Once fully operational, the EV plant will have a production capacity of 240,000 EVs per year and the EV battery plant will have a capacity of 36 GWh per year. In addition to securing the current employment level of 4,200 associates at its two existing manufacturing facilities in Ontario, Honda estimates it will add a minimum of 1,000 new associates for the EV and EV battery manufacturing facilities. The investment in the new facilities will also create significant spinoff jobs across all sites, including in the construction sector.
Honda has begun the process of evaluating the scope of its investment and completing negotiations with its joint venture partners. This work is expected to be finalized during the next six months and more details will be shared at that time.
To support this project, Honda is collaborating with the governments of Canada and Ontario to drive innovation in low-emissions manufacturing by accessing performance-based initiatives available through the federal government’s new Investment Tax Credits and provincial direct and indirect incentives.
North American EV strategy
Striving to realize carbon neutrality for all its products and corporate activities by 2050, Honda has set a goal to make BEVs and FCEVs represent 100% of vehicle sales by 2040. To achieve this goal, Honda will continue offering attractive products in this electrified era globally, including its largest market of North America.
As the first step in achieving this electrification goal in North America, Honda positioned its existing auto production plants in the state of Ohio in the U.S. as its EV Hub for production, including the retooling of existing plants, an investment of USD$700 million, and the construction of a joint venture EV battery plant with LG Energy Solution, with an expected investment of USD$4.4 billion.
The Ohio EV hub will serve as the foundation for future EV and EV battery production, sharing knowledge and expertise with other Honda plants in North America, including the new EV assembly and battery plants in Ontario, Canada. Honda expects EV production to begin at the Marysville Auto Plant in late 2025.
As a second step in this initiative, Honda will strive to establish a comprehensive EV value chain that includes all aspects of EV production in Canada, from the procurement of raw materials mainly for batteries, to the production of finished EVs. Honda will leverage EV production knowledge learned at the Ohio EV Hub, combined with the abundant resources and clean energy available in Canada, to establish a stable supply system for batteries, the key component of EVs, and increase cost competitiveness of its EVs as a whole.
Furthermore, with an eye toward secondary use and the recycling of batteries, Honda will realize low-carbon value creation throughout the entire battery life cycle, through which Honda will establish a highly profitable business foundation and contribute to the realization of a carbon-neutral society.
For more information and future updates, please visit www.hondanews.ca.
Comments by Toshihiro Mibe, Global CEO of Honda:
“Honda is making progress in our global initiatives toward the realization of our 2050 carbon neutrality goal. In North America, following the initiative to establish our EV production system capability in the U.S., we will now begin formal discussions toward the establishment of a comprehensive EV value chain here in Canada, with the support of the governments of Canada and Ontario. We will strengthen our EV supply system and capability with an eye toward a future increase in EV demand in North America.”
Comments by Jean Marc Leclerc, President and CEO of Honda Canada Inc.:
“Honda of Canada Manufacturing is one of the premier automotive manufacturing facilities in the world and for nearly forty years, our work has been guided by determination, innovation, and a relentless drive to evolve. Today’s announcement is a historic investment by a manufacturer in the Canadian auto industry. It proudly honours the highly skilled associates who have earned a global reputation for manufacturing excellence and represents Honda’s recognition of the long-term attractiveness of the Canadian electric vehicle manufacturing ecosystem.”
About Honda Motor Co., Ltd.
Honda Motor Co., Ltd. is responsible for the development, production and sales of automobiles, motorcycles, power products and aviation products worldwide. Honda now delivers over 28 million products annually through its three product lines. Honda and its partners build products in more than 60 manufacturing plants in 27 countries, employing about 197,000 associates globally. On a global basis by 2050, Honda is striving to achieve carbon neutrality for all products and corporate activities, as well as zero traffic collision fatalities involving Honda automobiles and motorcycles.
About Honda Canada Inc.
Honda Canada Inc. was founded in 1969 and is the parent company for both Honda and Acura vehicle brands in Canada. Since 1986, the company has produced Honda engines and more than 10 million cars and light trucks at its Alliston, Ontario manufacturing facilities, where Honda Civic and Honda CR-V are currently built. Honda has invested over $6.5 billion in Canadian operations, and each year sources over $3 billion in goods and services from Canadian suppliers. Since its inception, Honda Canada has sold over five million Honda and Acura passenger cars and light trucks in Canada through a dealer network of more than 280 dealerships across the country. For more information, please visit www.hondacanada.ca.
About Honda of Canada Manufacturing
Honda of Canada Manufacturing (HCM) began production in Alliston, Ontario in November 1986 and is Honda’s only manufacturing facility in Canada. HCM’s two plants sit on 890 acres, encompass approximately 4 million square feet, and employ 4,200 associates. The plants have the capacity to produce more than 400,000 vehicles each year combined. HCM manufactures two of Honda’s best-selling models, the Honda Civic and the CR-V, and produced its 10 millionth vehicle in 2023. For more information, please visit www.hondacanadamfg.ca.
