Honda lowers CO2 targets and changes emissions measurement

By halving its 2031 CO2 targets and lowering its EV sales metric, Honda is signaling a pullback from its electrification calendar Honda has released its 2026 sustainability report, detailing downward revisions to CO2 intensity targets across three product divisions and a shift away from electric vehicle sales rates as a management indicator. The environment, social and governance (ESG) report also reveals a revised governance structure, with target changes reflecting changes in market conditions and trade policy. CO2 intensity reductions for the financial year ending March 2031 have been significantly reduced across all three segments. The motorcycle target was revised from 34% to 15%, the automobile target was revised from 27.2% to 13.6%, and the power products target was revised from 28.2% to 13.4%, all on a fiscal 2020 basis. Honda is also abandoning the sales rate of electric products as a management indicator, replacing it with a measure of total greenhouse gas emissions over the entire product lifecycle. The automaker said the change reflects a more fundamental approach to emissions accountability and that 2036 financial targets will be set on that basis. On governance, Honda’s board currently consists of 11 directors, six of whom are outsiders. The nominating, audit and compensation committees each have over 50% non-executive representation under a three-committee structure intended to sharpen oversight and streamline executive decision-making. Honda’s carbon neutrality target for 2050 has not changed.

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