AHM Carbon Disclosure Statement for California Bill AB 1305
American Honda Motor Co., Inc. recognizes the importance of addressing climate change and reducing our greenhouse gas (GHG) emissions. We are working toward our long-term goal of decarbonizing products and operations by 2050, and we aim to significantly reduce reliance on carbon offset credits, using them only for emissions that currently are difficult to eliminate. To achieve our 2050 goals, we are taking our first steps to reduce emissions from our products and operations. This includes introducing battery electric and fuel cell electric zero emission vehicles as we phase out the sale of internal combustion engines. We regularly update our global strategy for the overall transition and disclose such changes in our global reports, which are accessible to all stakeholders.
We report our GHG emissions in accordance with the Greenhouse Gas Protocol, the most widely adopted international accounting tool used by government and business organizations. We verify our global Scope 1, Scope 2, and Scope 3 Category 11 (use of sold products) GHG emissions data through independent third-party audits and assurance.
We also disclose our global carbon emissions and climate actions to external stakeholders. Among such stakeholders are the CDP (formerly the Carbon Disclosure Project), a global non-profit organization that runs the world’s largest environmental disclosure platform, and the Task Force on Climate-Related Financial Disclosures (TCFD), which provides information to investors about what companies are doing to mitigate the risks of climate change.
Our decarbonization strategy prioritizes the avoidance of emissions in the first place as the primary objective, followed by the reduction of emissions as a mitigating step (our second strategic pillar). We are actively implementing a broad range of initiatives across global and North American operations to identify and deploy the most effective solutions within these strategic pillars.
Our third strategic pillar centers on buying clean energy. To advance this we integrate clean energy directly into our operations where it is most optimal. When it is not feasible to directly use clean energy, we have executed Virtual Power Purchase Agreements (VPPAs), which are financial arrangements that secure Renewable Energy Credits from designated renewable projects. These credits enable us to match clean energy to a substantial portion of our North American energy use.
Carbon offset credit procurement represents our fourth, and least emphasized, approach. Our primary focus remains on the first three strategies. When American Honda Motor purchases offsets, we follow a strict policy to purchase only high‑integrity removal offsets that are independently verified and issued through recognized standards and registries. Consistent with its policy, AHM will not purchase avoidance offsets or hybrid offsets. A cross-functional working group governs the North American Policy on carbon offsets. The group monitors risks associated with the purchase of these removal offsets, such as the risks of leakage or reversal, among other risks, and develops contingency plans.
As of January 1, 2026, AHM only has made one purchase of carbon removal credits. This purchase was made for the Torrance Innovation Site, a 100-acre campus for our administrative and sales headquarters in Torrance, CA. Honda first implemented our three primary strategies, which decreased overall carbon emissions at the campus by over 2,000 metric tons. The high-quality carbon removal credits that AHM purchased were from a regenerative agriculture project developed by Carbon by Indigo using the CAR U.S. Soil Enrichment Protocol. They were independently verified by Aster Global Environmental Solutions and issued by the Climate Action Reserve, and resulted in the removal of 1,800 metric tons of carbon dioxide. These 2023 vintage credits1 were retired on August 15, 2025.
These avoidance and reduction efforts, when combined with the purchase of the carbon offsets, resulted in the third-party certification of the Torrance Innovation Site as carbon neutral according to the Carbon Neutral Protocol. This carbon neutrality designation is only for Scope 1 and Scope 2 emissions and applies exclusively to the Torrance Innovation Site; it does not extend to American Honda Motor’s other facilities, operations, products, or value chain. A cross-functional project team is implementing additional projects with the intention to nearly fully decarbonize the campus and decrease our reliance on carbon offsets credits.
We believe that transparency and accountability are essential for building trust and credibility with our stakeholders. We annually publish detailed information, including our interim milestones, about our global carbon emissions in the Honda ESG Data Book and the Honda Integrated Report. We update, at least on an annual basis, this disclosure statement to satisfy California’s AB 1305 disclosure requirements.
The serial numbers are: CAR-1-US-1459-47-1002-MA-2023-8761-39055 to 40854