Honda's Environmentology


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Case Details:

Case Code : BECG069
Case Length : 21 Pages
Period : 1991-2006
Pub Date : 2007
Teaching Note :Not Available
Organization : Honda Motor Co. Ltd.
Industry : Auto and Ancillaries
Countries : Worldwide

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Excerpts

Honda's Environmentology

Honda was among the first automobile companies to take up environment conservation activities. In 1974, Honda launched the Civic CVCC, a fuel-efficient and a low emission vehicle, and became the frontrunner in environment-friendly automobiles. From then on, Honda worked consistently to bring about improvements in its products so that they became more fuel-efficient and less polluting.

In 1991, Honda constituted the Environmental Committee, a body which would take up "corporate environmental activities", in Japan.

In 1995, it was expanded to cover the Americas, Europe, Asia and the Oceania and was renamed the World Environmental Committee. Honda also appointed Green Environmental Administrators at all plants.

According to Honda, its commitment to the environment was long-term and pervasive. It called this commitment 'environmentology', defining the term as "an ongoing commitment to environmentally responsible technology".

The objectives included "world-changing advances in fuel economy, low emissions, and alternative energy sources for the future". Honda categorized its environmental initiatives under seven domains - product development, purchasing, production, transportation, sales, disposal and recycling, and administration...

Development of Products that run on Alternate Energy

In the 1990s, Honda began serious R&D efforts to develop vehicles that ran on alternate energy so that the environmental damage caused by burning gasoline/diesel could be reduced. The fact that gasoline reserves were fast depleting and the price of gasoline was going up also contributed to Honda's decision.

In 1994, Honda unveiled the CUV ES, an electric scooter (Refer Exhibit VI for photographs of Honda two-wheelers that run on alternate fuels)...

Fuel Cell Cars

Honda had a full-fledged research program for fuel-cell powered cars. In July 2002, the company's FCX became the first fuel cell car to be certified by the US Environmental Protection Agency (EPA) and the California Air Resources Board (CARB) for commercial use...

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