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Corporate Message on Environmental Activities

Toward the realization of a sustainable society

Atypical weather patterns have become the new normal in recent years. Our average global temperature hit another record high in 2016, and abnormal heat is frequently being reported around the globe. At events like the 42nd G7 Ise-Shima Summit held in May, world leaders have talked about pushing ahead with actions to promote rapid buy-ins to the Paris Agreement (an accord that defines initiatives to combat climate change in 2020 and beyond) and encouraging efforts to make low-carbon economies a reality. In the automotive industry, Germany has even adopted a resolution to prohibit the sale of new internal combustion engine vehicles by 2030. It has been a year when environmental awareness has reached new heights.

The automotive industry has a heavy environmental impact, and as a member of that industry, we believe that it is our corporate social responsibility to develop eco-friendly business operations. And the year 2016 was no exception in terms of our efforts to mitigate our negative impacts on the environment.

In the area of motorcycles and general-purpose products, Keihin electronic fuel systems (FI systems) for compact motorcycles were installed on Honda Scoopy-i bikes launched in Thailand and on the Suzuki Gixxer released in India. These FI systems include our newly developed electronic control units featuring on-board drive circuits for LED headlights. They offer superior environmental performance and are catching on in developing markets with booming motorcycle markets.

Turning to automotive parts, our new power control units (the core component in hybrid vehicles) were installed in the Honda Accord, evidence that we are keeping pace with the ongoing electrification of motor vehicles. The Honda Freed, released in the Japan market, is also equipped with Keihin electronic control and fuel supply parts—most notably the electronic control unit that regulates the hybrid vehicle battery. We’re also responding to increased environmental awareness by putting our fuel efficiency–enhancing system components for gasoline direct injection engines in vehicles around the world. These components are just one example of Keihin’s global rollout of numerous eco-friendly products, including the V6 direct injection engine components installed on the Honda Ridgeline released in the US.

When it comes to general operations, we’ve taken bold strides towards more environmentally-conscious production activities not only in Japan, but also in India—where we’ve reduced CO2 emissions by introducing renewable energy sources, for example. Initiatives like these have allowed us to maintain the basic unit that indicates our fundamental environmental load at about the same level as last year.

Meanwhile, increases in production volume have resulted in higher total CO2 output and water usage than last year—but we are taking steps to further improve our operational foundations in these areas as well. We are also promoting CSR activities through initiatives that allow us to share uplifting experiences with communities, customers, business partners, and shareholders as we come together as a global team to support environmental conservation and social contribution. In recognition of these activities, Michigan has named Keihin Michigan Manufacturing a Clean Corporate Citizen as evidence of the positive way that communities are responding to our efforts.

Keihin is still striving to take its environmental conservation activities to the next level. In an effort to achieve sustainable growth and help create a greener future for our planet, we’ve set forth a new 2030 vision to become a global brand providing eco-friendly mobility solutions for the next generation. Under our 13th Midterm Global Policy, which took effect in April 2017, we stated our intention to build a strong company with healthy growth and a good company we can be proud of. As we continue to work towards reducing our environmental impact, we will keep developing products and conducting business while actively engaging in initiatives that make the world a better place.

This report provides a summary of our environmental activities. After reading through it, we hope you will share your thoughts on what we have accomplished so far and any ideas you may have for how we can do better in the future.

Chitoshi Yokota, President & CEO