By Tony Khing
PG&E spent a record $2.85 billion with diverse suppliers in 2016, accounting for 44 percent of its total procurement, the energy company announced today (March 9). For the fifth straight year, diverse suppliers accounted for $2 billion-plus of the company’s spend and more than 40 percent of PG&E’s total spend for the fourth consecutive year.
In addition, PG&E eclipsed the California Public Utilities Commission’s diverse spending goal of 21.5 percent for the 11th year in a row.
“For PG&E to effectively meet the needs of our customers in today’s evolving energy landscape, more than ever we need to work with our diverse suppliers to build a better California together,” said PG&E President and Chief Operating Officer Nick Stavropoulos. ”We’re ‘all in’ when it comes to building on the 36 years of success of our supplier diversity program.”
In 2016, PG&E achieved new spending records in the following reporting categories:
- Spending with Minority Business Enterprises increased from nearly $1.6 billion in 2015 to $1.8 billion in 2016
- Spending with Women Business Enterprises increased from $723 million in 2015 to nearly $7987 million in 2016.
- Spending with Service Disabled Veteran businesses increased from $154 million in 2015 to nearly $224 million in 2016.
Over the past 36 years, PG&E has been committed to supporting a diverse supply chain. The company has developed one of the leading supplier diversity programs in the energy industry.
In addition to maintaining high levels of spend with diverse suppliers, PG&E has focused on elevating the quality of its supplier diversity program by addressing key success factors for suppliers.
For example, PG&E has held multiple workshops throughout the year to educate small and diverse businesses on how to compete for utility business. PG&E’s technical assistance and capacity building initiatives have helped businesses become more competitive.
The company has actively supported the development of its diverse suppliers through mentorship, scholarships, opportunity identification and value chain analysis. In addition, PG&E’s Supplier Development Program has matched 30 diverse suppliers with PG&E senior executive mentors.
PG&E’s Supply Chain Responsibility website contains more information about the program. The site also provides details on how to become a certified diverse supplier.
In 2016, PG&E received numerous national accolades for its supplier diversity efforts:
- The company received an “A” for its work in 2015 from the nationally-known Greenlining Institute, an organization dedicated to racial and economic justice.
- The enterprise was named as the Corporation of the Year by the National Gay and Lesbian Chamber of Commerce for its support and dedication to ensuring fairness and equal opportunity for LGBT suppliers, customers and employees.
- For the third consecutive year, PG&E was named to the United States Hispanic Chamber of Commerce’s “Million Dollar Club” for its spend with Hispanic-owned businesses in 2015.
- PG&E was inducted into the Women’s Business Enterprise Hall of Fame for its support of supplier diversity and women’s business development.
- The company received the Gazelle Award from the National Minority Supplier Development Council for accelerating the growth of minority-owned business.
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