Honda Philosophy

The Honda Philosophy consists of Fundamental Beliefs (including "Respect for the Individual" and "The Three Joys"), the Company Principle, and Management Policies. This philosophy is not only shared by all associates, but also forms the basis for all company activities and sets the standard for the conduct and decision-making of all associates throughout the Honda Group. Driven by its dreams and reflecting its values, Honda will continue taking on challenges to share joy and excitement with customers and communities around the world to strive to become a company society wants to exist.

Fundamental Beliefs

Respect for the Individual

Initiative

Initiative means not to be bound by preconceived ideas but to think creatively and act on your own initiative and judgment, while understanding that you must take responsibility for the results of those actions.

Equality

Equality is at the heart of everything we do. Our people are not employees; they are associates and they all have exactly the same opportunities to progress. We recognize and respect the individual differences in one another and treat each other fairly. An individual’s race, gender, age, religion, national origin, educational background, social or economic status has no bearing on the individual’s opportunities.

Trust

The relationship among associates at Honda should be based on mutual trust. Trust is created by recognizing each other as individuals, helping out where others are deficient, accepting help where we are deficient, sharing our knowledge, and making a sincere effort to fulfill our responsibilities

The Three Joys

The Joy of Buying

The joy of buying is achieved through providing products and services that exceed the needs and expectations of each customer.

The Joy of Selling

The joy of selling occurs when those who are engaged in selling and servicing Honda products develop relationships with a customer based on mutual trust. Through this relationship, Honda associates, dealers, and distributors experience pride and joy in satisfying the customer and in representing Honda to the customer.

The Joy of Creating

The joy of creating occurs when Honda associates and suppliers involved in the design, development, engineering, and manufacturing of Honda products recognize a sense of joy in our customers and dealers. The joy of creating occurs when quality products exceed expectations, and we experience pride in a job well done.

Corporate Philosophy

Maintaining a global viewpoint, we are dedicated to supplying products of the highest quality, yet at a reasonable price for worldwide customer satisfaction.

Management Policy

1. Proceed always with ambition and youthfulness.
2. Respect sound theory, develop fresh ideas, and make the most effective use of time.
3. Enjoy your work and encourage open communication.
4. Strive constantly for a harmonious flow of work.
5. Be ever mindful of the value of research and endeavor.

Honda Vision 2030

Serve people worldwide with the “Joy of expanding their life’s potential” Lead the advancement of mobility and enable people everywhere in the world to improve their daily lives

Sustainability Policy

Honda Atlas Cars (Pakistan) Limited (HACPL) is committed to sustainable business practices that integrate Environmental, Social and Governance (ESG) principles. This ESG Policy establishes a framework for HACPL's commitment to environmental stewardship, social responsibility, and corporate governance. The policy addresses the growing challenges of climate change, resource scarcity, community well-being, and corporate integrity, and ensures long-term value creation for all stakeholders. This policy aligns with Honda's philosophy and its vision for the 21st century: 'striving to be a company society wants to exist,' which emphasizes 'Creating the Joys,' 'Expanding the Joys,' and 'Ensuring the Joys for the Next Generations.' The 'Honda 2030 Vision' serves as a key milestones, providing clear guidance for HACPL to achieve its objectives.
In order to achieve these objectives, HACPL shall focus on the following core principles:

Health, Safety and Environmental Policy

Honda Atlas Cars (Pakistan) Limited, being a leading car manufacturing company in Pakistan, is committed to produce Honda Cars with sustainable performance in Health, Safety and Environment (HSE). In order to achieve this, the company shall:

• Provide a safe and healthy workplace to all stakeholders affected by its operations, for the prevention of injury and ill health.
• Assign responsibilities for effective implementation of HSE management systems.
• Comply with all applicable HSE legal, regulatory, and other requirements.
• Create awareness and understanding of health, safety, and environmental issues among our associates.
• Empower workers to participate in and be consulted on health and safety–related matters.
• Identify and evaluate risks and opportunities to eliminate, reduce, or manage risks related to the company’s operations proactively, ensuring that health and safety hazards and environmental impacts are prevented.
• Formulate objectives and targets to eliminate workplace hazards, prevent environmental pollution, and continually improve HSE management systems as much as possible.
• Keep the public and other interested parties informed of our HSE performance wherever required.

Quality Policy

We at Honda Atlas Cars (Pakistan) Limited, strive for supplying top quality Honda Cars to get ultimate customers satisfaction accomplished by

• Smart teamwork and dedicated individuals
• Complying with all applicable legal and regulatory requirements
• Continually improving our strategies and goals

Energy Policy

As an energy intensive Company, we at Honda Atlas Cars (Pakistan) Limited strives to reduce its energy consumption and promote the long-term environmental sustainability of its operations. We are committed to perform following roles:

• Identify and evaluate all energy-related activities and their environmental impacts to eliminate wastage and conserve energy.
• Establish objectives and targets aligned with Global Honda’s long-term vision of achieving 100% carbon-free energy usage.
• Comply with energy-related and other applicable requirements, and create awareness among associates on energy management.
• Introduce and increase the use of renewable energy.
• Continuously monitor and improve system performance based on the PDCA cycle.

Honda Human Rights Policy

Since Honda Motor was founded in 1948, Honda has continuously worked to provide value to help people and create a better society through our technologies, ideas, and designs. The starting points out such efforts is our desire to "help people and society" and "expand the potential of people's lives". The underlying basis of these efforts is the concept of "Respect for the Individual," which constitutes Honda's Fundamental Beliefs. Honda believes that human beings are born as free and unique individuals with the capacity to think, reason, and create - and the ability to dream.

Our wish is to nurture and promote these characteristics in Honda by respecting individual differences, trusting each other as equal partners, exercising abilities to the fullest, and sharing joy. From this standpoint, we adopt Respect for the Individual, consisting of the three elements of initiative, equality, and trust, as one of our Fundamental Beliefs. We believe this spirit should permeate all our relationships with everyone.

Based on the concept of Respect for the Individual, Honda has formulated the Honda Human Rights Policy ("the Policy") to fulfill our responsibility to respect the human rights of stakeholders who may be affected by our business activities. By putting the Policy into practice, we will cooperate with our stakeholders to undertake business activities in a sustainable manner to continue to be "a company that society wants to exist."

Honda Conduct Guidelines – Honda Code of Conduct

Guided by the fundamental beliefs of “Respect for the Individual” and “The Three Joys” (“The Joy of Buying,” “The Joy of Selling,” and “The Joy of Creating”), Honda endeavors to share joy with people around the world and aspires to be “a company society wants to exist.” A prerequisite to fulfilling this philosophy is to act with integrity to customers and society at all times. Failure in our duty to maintain sincerity would result in loss of the confidence and trust we have established over the years; a precious asset that would be extremely difficult to recover.

For this reason, in 2003 we announced and subsequently implemented the Honda Conduct Guidelines. During this time, Honda has expanded its business throughout the globe, and I feel that expectations from stakeholders, including customers, have grown greater as well. This also reflects the increasing importance for each of us to act responsibly, as expected by customers and society. In view of these trends, we have revised the Honda Conduct Guidelines as the “Honda Code of Conduct” covering acts of integrity for Honda associates around the world. Our founder Soichiro Honda once said, “What you make reflects you”. I also believe that a sincere attitude toward customers on the part of each individual Honda associate is what creates excellent products and services.

The continuous growth of Honda depends on the appropriate conduct of each Honda associate toward customers and society. Under the guidance of the Honda Philosophy and as a company empowered by its aspiration to realize people’s dreams, Honda has thus far been able to establish trust with its customers and society by engaging in global business operations and sharing joy with people around the world. As a result of our global deployment, Honda now has associates in numerous countries and regions around the world. Considered conduct grounded on the Honda Philosophy on the part of each individual associate is essential for Honda in reinforcing the trust established with our customers and society.

By sincere, we mean free from deceit (dishonesty) and hypocrisy (two-facedness) and being earnest. Recently, we have established the Honda Code of Conduct as a sincere action that we would like all persons working at Honda around the world to follow. To reinforce the trust of customers and society and make Honda “a company society wants to exist,” all associates including officers and directors of Honda and its subsidiaries (hereinafter referred to as “associates”) (where HM and its subsidiaries are collectively called as the “Honda Group”) should fully understand and comply with the Honda Code of Conduct, and practice sincere and ethical conduct that conforms to the Code. Acts in violation of the Code may be subject to discipline under company policies and applicable laws and regulations.

Business Ethic Proposal Line (BEPL)

Honda is committed to following fair business practices to safeguard the stakeholder's interest. These stakeholders are our shareholders, customers, suppliers, dealers, associates and the community. Stakeholder interest can be sustained if company runs business with transparency, fairly, efficiently and according to the Honda's Code of Conduct and Ethics Guidelines. Large companies need to implement internal control systems, in order to ensure the same, in response to both stakeholders and society's interest, at large.

Honda's stated vision & goal is to become a company that society wants to exist. Therefore, it is important to establish a system & organization to guarantee fairness of the company's operations and to meet the expectations of the stakeholders and society, so as to enhance and protect the credibility and image of Honda. Consequently, Honda Corporate Governance (HCG) has been established to ensure the implementation of corporate management systems. HCG emphasizes the accountability of every Honda associate in establishing the standards of HCG through their daily operations.

Guidelines On Insider Information Control and
Insider Trading Regulation

Purpose

The purpose of these guidelines is to clarify the management standards of Honda Atlas Cars (Pakistan) Limited (the "HACPL") regarding insider information and the standards of conduct regarding the purchase, sales etc. of Shares, etc. of HACPL, and to prevent insider trading of Shares, etc. in breach of the Relevant Laws (defined below) in each jurisdiction.

Definitions

The definitions of terms specified in these guidelines shall be as follows:

• "Insider Information" means Material Facts about Honda Companies that have not been publicly disclosed.
• "Relevant Laws" means, individually and collectively, the following laws and ordinances, relevant government ordinances, and regulations of the Securities and Exchange Commission of Pakistan (SECP).
• The Listed Companies (Prohibition of Insiders Trading) Guidelines.
• The Listed Regulations of Pakistan Stock Exchange Limited; (the "Exchange").
• The Financial Instruments and Exchange Act of Japan (the "FIEA") and relevant government and ministerial ordinances.
• The U.S. Securities Exchange Act of 1934 and rules thereunder (including Rule lOb-5) and the New York Stock Exchange Listed Company Manual.
• Other applicable laws and ordinances, relevant government ordinances, and regulations, circulars, and guidelines issued by SECP from time to time.
• "Shares, etc." means common stocks, class stocks, warranties, stock acquisition rights, bonds with stock acquisition rights, partnerships investment trusts, or other securities specified as subject to insider trading regulations under the Relevant Laws, and securities representing options therefore.
• "Purchase, Sale, etc." means purchases, sales, other transfers or acquisitions for compensation, derivative transactions, and other acts of disposal that are subject to insider trading regulations under the Relevant Laws.
• Restriction On Purchase, Sale, Etc., Of Shares Etc.
• Director(s), CEO, executives, and associates of HACPL who come to know of any material fact in the course of their duties shall not Purchase, Sell, etc. any Shares, etc. of HACPL until such material fact is disclosed.
• Director(s), CEO, executives, and associates of HACPL who have received information about material facts from persons who come to know about the material facts in the course of their duties, shall not Purchase, Sell, etc. any Shares, etc. of HACPL until such material fact is disclosed.
• The purchase, sale, etc. of Shares, etc. of HACPL by any executive or employee shareholding association in compliance with the Relevant Laws is not prohibited.
• Director(s), CEO, executives, and associates of HACPL who come to know of any material fact of HACPL in the course of their duties, shall not newly join, withdraw from, or suspend, resume or change the volume of their contributions to the abovementioned executive or employee shareholding association until such material fact is disclosed.

Anti-Harassment Policy

This Anti-Harassment Policy is established under the Protection against Harassment of Women at the Workplace Act, 2010, to ensure a safe and respectful working environment for all associates of Honda Atlas Cars (Pakistan) Limited hereinafter referred as HACPL. This policy outlines the procedures for reporting, investigating, and addressing incidents of harassment at workplace.

Communications and Disclosure Policy

The objective of this Communications and Disclosure Policy (the “Policy”) is to establish a structured framework for communications with the investing public about Honda Atlas Cars (Pakistan) Limited., (the “Company”). The Policy outlines the procedures for disseminating information to various stakeholders, including shareholders, investors, lenders, Company’s associates, regulators, customers, and the general public. It is formulated to ensure transparency, consistency, and accuracy in all communication and disclosure practices.
This Policy extends to all Company’s associates, its Board of Directors, and its Sub-committee members, who are authorized to speak on its behalf.

Risk Management Policy

Purpose and Scope
This Risk Management Policy establishes a framework for identifying, assessing, and managing risks within Honda Atlas Cars (Pakistan) Ltd (the Company), a listed company. This policy applies to all levels of the organization and covers various types of risks that may impact the Company's operations, reputation, financial performance, and strategic objectives.