Smart Energy Voices - Episode 15

Smart Energy Voices- Episode 15

Tackling Scope 3 Emissions at Honda of America Manufacturing Inc with Alissa Yakali & Joey Lange

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In this episode, we'll be in conversation with Alissa Yakali, Supply Chain Sustainability Manager at Honda of America Manufacturing, Inc., and Joey Lange, Senior Director of Client Services at Edison Energy, for an inside look at Honda's 10 years of experience in working with their supply chain to reduce emissions and how they're currently working with Edison Energy to take their supply chain program to the next level. You won’t want to miss out on the great information within today’s show.

You will want to hear this episode if you are interested in...

  • Meeting Alissa [1:45]
  • Meeting Joey [2:39]
  • How Honda has evolved its commitment to sustainability over the years [4:36]
  • What drives Honda’s commitment to sustainability? [6:18]
  • How Honda’s approach compares to what Joey sees in the market [7:14]
  • Emission reduction commitments vs renewable energy goals vs other factors [9:27]
  • How Honda is engaging their supply chain to reduce its scope three emissions [14:39]
  • Mistakes & secrets to getting suppliers to engage in a sustainability program [16:13]
  • Biggest challenges Alissa faced in the beginning that you may be facing now [19:39]
  • Building trust with suppliers [21:54]
  • How scorecards help with transparency and accountability [23:15]
  • Tools Honda has in place to set suppliers up for success then vs now [26:37]
  • The cloud-based energy management system Honda is developing [29:55]
  • Why Honda needs a partner like Edison Energy [36:05]
  • How Edison is meeting suppliers where they are and educating them on options [37:47]
  • What Joey sees going forward in terms of supply chain sustainability? [40:54]
  • Using green bonds to help suppliers with efficiency programs [42:46]
  • What does the future of the program look like for Honda? [45:10]

Getting supply chains engaged through education in lieu of force

These days, there are many people that are interested in and working their supply chains and reducing emissions because it's a large portion of the overall emissions. Sometimes it's as much as 10 times their own Scope 2 emissions. It's something that people need to tackle if they're working toward their sustainability and carbon goals. The way Honda has gone about it has shown great leadership.

Why will suppliers want to get involved? In this case, it's because they're getting something out of it. Honda is not just setting a mandate and saying, “Hey, you've got to cut your emissions or we're going to take credit for your emissions reductions.” Their message is, “We're going to help you. We're going to educate you on your opportunities and this is going to be good for YOUR company and here’s why.”

Building trust with the supplier by giving instead of taking away

Thinking about Honda and the building of trust in the early years of their program, Alissa says she doesn’t want to know how much money suppliers are saving - she only wants to know how much CO2 they're reducing. They’ll ask, “You're not going to ask for that money back?” and Alissa responds, “No, please keep your money. Don't share that with me. That is your confidential information, just show me the CO2.” That has been a huge point of success.

Keeping score for transparency

Honda is the first automotive manufacturer in North America to have a sustainability scorecard. As suppliers start giving data and reporting, Alissa can share back with them where they stand in relation to the targets and where they stand versus their peers so it’s not just submitting data and not getting anything in return. This sustainability scorecard can then be shared with their top executives and with their stakeholders to show how they're doing in Honda's eyes.

Honda wanted to show the suppliers that they are not just taking your data and putting it into a dark hole that's never being used. They do this for many different aspects of sustainability, not just for environmental sustainability, so it's a full gamut on this scorecard. First, it is for transparency, then maybe two or three years from now, Alissa hopes they will be able to use this scorecard with purchasing associates and let them know when a supplier is not meeting the target. It's not about taking away the business, but it's going to start a conversation.

Resources & People Mentioned

Connect with Alissa

Alissa Yakali, Honda of America Manufacturing Inc, Supply Chain Sustainability Manager

Alissa Yakali the Supply Chain Sustainability Manager for Honda of America Manufacturing INC. She has been with Honda for 18 years. The last eight years with the Sustainability Team and previously with Honda North American Purchasing as a Senior Buyer. Alissa’s Honda experience, commodity and supplier knowledge is a strong asset while working with the 750+ suppliers in the areas of CO2 data collection and reduction. Alissa holds a BA from Western Michigan University in Supply Chain Management.

Connect with Joey

Joey Lange, Edison Energy, Senior Director of Client Services

Joey advises renewable energy strategy development and execution for Edison Energy’s clients. As the Senior Director of the Client Services team he oversees all client strategy and works directly with clients from early-stage market assessment through competitive solicitations, finance and risk evaluations, internal approvals, and commercial negotiations.
Prior to Edison Energy, Joey was on the Walmart Renewable Energy team, where he led the development of battery storage projects, electric vehicle infrastructure, and energy efficiency finance models. Before project development, he was responsible for the feasibility analysis, design guidance, and project implementation of over 80 rooftop and 20 carport solar installations as well as 20 hydrogen fuel cells for Walmart’s portfolio.
Joey graduated from the University of Tennessee with a degree in Aerospace Engineering and earned a MBA from the University of Texas.

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