Honda has revised its interim carbon reduction targets and removed electrified vehicle sales as a key management metric in its 2026 Sustainability Report, signaling a slower pace for its decarbonization roadmap while maintaining its long-term goal of achieving carbon neutrality by 2050.
The updated targets reflect changing market conditions, evolving trade policies and a broader shift toward measuring total lifecycle greenhouse gas emissions.
Interim CO₂ Targets Reduced
Honda lowered its fiscal 2031 carbon dioxide intensity reduction targets across all three of its major business segments compared with fiscal 2020 levels.
The motorcycle division’s target was reduced from 34% to 15%, while the automobile division’s target was cut from 27.2% to 13.6%.
For power products, the target was revised from 28.2% to 13.4%.
Despite the lower interim goals, Honda said its objective of achieving company-wide carbon neutrality by 2050 remains unchanged.
New Focus on Lifecycle Emissions
Honda will no longer use the sales ratio of electrified vehicles as a management performance indicator.
Instead, the company will measure progress based on total greenhouse gas emissions generated throughout a vehicle’s lifecycle.
Honda said future emissions targets for fiscal 2036 will be established using this broader lifecycle approach, which accounts for emissions from manufacturing, vehicle operation and end-of-life processing.
Governance Changes
The sustainability report also outlines updates to Honda’s corporate governance structure.
The company’s board now consists of 11 directors, including six independent outside directors.
Its nomination, audit and compensation committees each have majority outside director representation under a three-committee governance model designed to strengthen oversight while supporting faster executive decision-making.
Strategy Reflects Changing Market Conditions
The revised sustainability targets indicate Honda is adjusting the pace of its electrification strategy in response to slower-than-expected electric vehicle adoption and evolving market conditions.
By replacing EV sales targets with lifecycle emissions measurements, the company broadens the scope of its environmental performance metrics, allowing emissions reductions from hybrid technologies, manufacturing improvements and more efficient internal combustion engines to contribute toward its climate objectives while maintaining its long-term carbon neutrality commitment.