Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced CO2 emissions through the adoption of hybrid and electric vehicle body parts and improved production processes.
• Utilized green energy, including solar power, in the construction of a new factory.

Social Achievements

• Established a genderless workplace environment in the new factory.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Semiconductor shortages leading to reduced production by major clients.
• Rising raw material prices.
• Increased labor costs due to fluctuations in major client production.
• COVID-19 pandemic impact (though recovering).

Mitigation Strategies

• Continuous cost reduction activities through production efficiency improvements and logistics efficiency improvements.
• Structural reforms to improve profitability.
• Strengthening business base through production efficiency and cost reduction activities.
• Actively working on establishing technology for processing different materials.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• CO2 emissions reduction
• Waste reduction
• Resource efficiency
• Diversity
• Work-life balance
• Occupational safety and health
• Corporate governance

Environmental Achievements

• Not disclosed

Social Achievements

• Launched initiatives for work-life balance and excellent company certification
• Health management excellent company certification
• Industry-academia collaboration with Gifu University

Governance Achievements

• Established a Sustainability Promotion Office
• Compliance with the Corporate Governance Code

Climate Goals & Targets

Environmental Challenges

• Semiconductor supply shortages impacting customer production
• Rising raw material prices
• Production and order fluctuations

Mitigation Strategies

• Cost reduction measures
• Strategic investments in new factories and equipment

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Honda Excellent Supplier Award (Japan)
• Dongfeng Honda Excellent Supplier Award (Wuhan)

Environmental Metrics

ESG Focus Areas

• CO2 emissions reduction
• Waste reduction
• Growth of sales of electric vehicle parts
• Diversity (women managers, foreign employees, disabled employees)
• Human resource development
• Work-life balance
• Occupational safety and health
• Contribution to the regional economy
• Strengthening corporate governance

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Decreased production of major customers in China
• Raw material price increases
• Exchange rate fluctuations
• Decreased production in Wuhan due to major customer's reduced production
• Increased fixed costs due to sales decrease
• Rising raw material prices

Mitigation Strategies

• Logistics efficiency improvement and material yield improvement to reduce transportation costs and purchase costs
• Staff optimization according to production trends
• Labor-saving and automation line construction to improve production efficiency
• Cost reduction efforts focused on fixed costs
• Recovery of unrecovered funds from die investment costs associated with the end of mass-production models

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• CO2 emissions reduction
• Waste reduction
• Resource efficiency
• Diversity (women in management, foreign employees, disabled employees)
• Human resource development
• Work-life balance
• Occupational safety and health
• Contribution to the regional economy
• Corporate governance

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Decreased production at Chinese bases
• Uncertainty in production trends
• Shrinking domestic market size
• Increased EV demand in China
• Changes in the business environment in the Tokai region

Mitigation Strategies

• Expansion of production capacity in China (Fujian)
• New press line introduction
• Focus on CATL business
• Expansion of sales in Okayama region through new factory
• Strengthening competitiveness through QCD improvement
• Development of new products and businesses
• Digital transformation to improve processes and core technologies
• Construction of next-generation factories
• Automation of production processes
• Smart factory realization
• System utilization for business process transformation
• Effective use of external resources (alliances and M&A)
• Business selection and concentration
• Strengthening ESG initiatives
• Optimal capital policy implementation

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• CO2 emissions reduction
• Waste reduction & resource reuse
• Technological innovation using company technology
• Diversity
• Human resource education & training
• Work style reform
• Occupational safety and health
• Contribution to regional economy
• Corporate governance strengthening

Environmental Achievements

• CO2 emission reduction rate of 13.0%
• Waste emission reduction rate of 19.1%
• Reduction in spoilage cost ratio of 21.4%

Social Achievements

• Increased sales of electric vehicle-related parts by 13.6%
• Implementation of various initiatives contributing to regional contribution, including food drives, clean-up activities, and support for a BMX indoor practice facility in a former elementary school.
• Zero overtime workers
• Health and Wellbeing Management Excellent Company certification obtained

Governance Achievements

• Corporate governance code compliance rate of 100%

Climate Goals & Targets

Environmental Challenges

• Major customer production decrease in China
• Decreased production volume in Thailand and general-purpose engines

Mitigation Strategies

• Structural reforms including workforce and production capacity optimization, production factory consolidation, cost reduction activities, and transportation costs

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• EV battery related parts