The Honda F1 car for the 2007 season has been stripped of all corporate colours and advertising. Why? Honda has always been conscious of the environment and minimising our impact on the environment is a cornerstone of our philosophy. As a corporation, we have pioneered many automotive developments, including the VTEC engine, clean diesel and fuel cell technologies, to name a few. Our ‘Earth Car’ is a call to action for environmental awareness. During the course of the season, Formula One has a reach similar to that of the FIFA World Cup. Therefore, we are using the sport to promote a very important issue to a global audience. We hope to encourage people to make small lifestyle changes that, when combined, will reduce large amounts of CO2 globally.
How do you compensate for the lost revenue? We have also launched an exciting new licensing model, a first for Formula One. Rather than companies placing their logos on our cars, we have created a campaign logo that can be applied to their products and services. We believe this builds a stronger association with the team, highlights environmental issues and is a more cost effective and versatile marketing tool. We conducted some comprehensive research about how companies are approaching global environmental issues and we found that 90% of the blue chip companies we questioned consider taking action on the environment as one of their corporate objectives. The new marketing model has been successful and I’m pleased to say that, as a result, we have more team sponsors for the 2007 season than ever before.
What was the reaction of your staff, corporate partners and competitors? F1 is an extremely competitive environment and the pinnacle of global motor sport. Something as new and different as our environmental concept inevitably raised many eyebrows in the pit lane. You would have to ask our competitors what they really think of the new car livery! Our environmental concept has, however, been received very positively by our staff and the wider Honda Corporation. We obviously value their involvement and opinions greatly and so it was immensely pleasing that the concept was viewed as a positive and inspirational initiative. Our employees fully embrace our parent company’s environmental ethos and they believe that F1 and our racing team can play an important part in raising awareness and developing new technologies for the future. For this to work on a global level, we all need to work together and I believe there is a nice fit between that requirement and the examples of teamwork demonstrated by Formula One and its constituent teams. All of our existing team partners have also enthusiastically embraced the idea and several of them have already commenced plans to produce licensed products.
Do you see active engagement on global environmental issues as an imperative for the 21 C business leader? It should be no surprise that many of the companies at the forefront of recognising the effect of climate change are also the most successful in their field. They are not taking action on the environment because they can afford to do so, but because they are the first to see the benefits for their customers and their business. There is no business to be done on a dead planet, so the environment is the biggest issue for leaders in business today. What can we learn form this experience for biodiversity? I think business will change if it’s profitable to do so. If customers demand products of a certain environmental standard then business will find a way of supplying them, regardless of how difficult that might first appear. Change the ‘demand’ parameter and you will always, ultimately, change the ‘supply’ side.
How are fans encouraged to contribute to the initiative? Firstly, we want to engage our fans and bring them closer to the team — we felt that being able to put their names on the car addressed this nicely. Secondly, fans and the general public have the option to support our environmental concept by making a donation and an environmental pledge online (1). The donations will go in a central charitable fund and a board of experts will then decide which charities will receive the money at the end of the season. The pledges vary but there is something for everyone and we strongly believe that if everyone pledges to make small lifestyle changes then, together, we can have a large impact on the environmental issues facing the earth today. This goes back to the theme of teamwork which I was talking about earlier.
Some will probably view this initiative as little more than a PR stunt... Overall, the response to our new initiative has been positive but we were not surprised to see a few negative comments appearing in the press following the launch. Our objective was always to generate interest and debate and we have stated that from the outset. Encouraging people to question the accepted norms, make small changes to their lifestyle and raising funds for charities addressing climate change remains our priority. The Honda Racing F1 Team worked with Carbon Sense (a climate change and carbon emission consultancy) to find ways to make a difference at our factory in Brackley (UK) and to assist in drawing up a long term plan to address this issue. Some of the measures which have been introduced so far include: • A pilot energy awareness scheme encouraging employees to turn off computers and lights at the end of the day which led to a 6% energy reduction; • A ‘cycle to work’ policy where employees are offered large subsidies on bicycles; • A car share scheme (currently being drawn up); • Solar panels to be fitted on the roofs of the team’s motorhome to run the lighting this season.
Where do you see the threats of climate change for the F1 industry? Climate change is probably the biggest single issue facing our planet and Formula One is not immune from it. On the contrary, we believe that F1, with its huge global profile and cutting-edge technology, can play an important role in not only highlighting the issues but also playing our part in developing the solutions. F1 and the environment may not seem natural bedfellows. However, Formula One has to change if it is to succeed in the long term. The changes that we make to our sport should be relevant to the continued environmental development of road cars and we must use our position to act as a laboratory for change.
How does this initiative relate to efforts currently underway in the rest of the Honda group? Honda has always made great efforts to contribute to the preservation of the environment in its corporate activity. The F1 concept is consistent with this philosophy and is another example of Honda’s forward thinking. Honda has established new voluntary CO2 reduction targets for 2010 that build on the targets the company set itself in 1999 and achieved in 2005. Honda is the first company in the automobile industry to announce a global CO2 reduction target for products and facilities. Honda is also working on new alternative technologies, such as hybrid vehicles and hydrogen fuel cell vehicles, which emit only water. We have made progress in these areas, with the ultimate target of becoming a hydrogen-based society.
What should we expect for the rest of 2007? Our car, the Honda RA107, will run in its new earth livery throughout the 2007 season as a sign of the commitment that the Honda Racing F1 Team is undertaking to raise awareness of climate change. Our car is a ‘call to action’ to race fans and the general public to help us in addressing the environmental issues facing the world today. On the race track, we have had a tough start to the season and it is evident that our car is not currently on the same pace as the front-running teams. So our focus for now is on addressing these issues and improving the car over the next few races to take us back to the position where we want and expect to be competing in. I have every confidence that this team has the knowledge and resources to do this.
Nick Fry is Chief Executive Officer,
Honda GP Ltd.
(1)
MyEarthDream.com
