Think tank gives PG&E high mark for diversity of suppliers

By: 10 years ago

• Utility’s minority business enterprise contracting spending is a record $1.5 billion

• “A-“ grade is utility’s highest ever, up from “B+” in 2012

BERKELEY, California – Policy think tank Greenlining Institute gave a grade of “A-” to utility corporation Pacific Gas and Electric Co. (PG&E) for its 2013 supplier diversity efforts.

The grade, recently released in the organization’s 2014 Supplier Diversity Report Card, is the highest the utility has received from the Berkeley, California-based policy, research, organizing and leadership group that advocates for racial and economic justice.

“We’re proud to receive this recognition from The Greenlining Institute,” said PG&E President Chris Johns. “Our supplier diversity program reflects our customer base, which is one of the most diverse in the nation. We’ve developed partnerships that have allowed many businesses to grow, hire and strengthen California’s economy.”

In its report card, Greenlining commended the utility for “improving from last year (“B+” in 2012) and increasing its contract spending in every category.” The institute also said, “Overall, PG&E’s absolute Minority Business Enterprise contracting dollar spending (a record $1.5 billion) continues to impress us.”

The organization commended PG&E’s efforts in spending with African American enterprises (7.87 percent, “A-”). Greenlining also recognized PG&E’s spending with Native American enterprises (3.32 percent, “A+”) for surpassing the group’s percentage of California’s population. The utility was also acknowledged for the 7.75 percent spend with woman-owned businesses as it “surpassed our previous high-water mark for this category.”

Greenlining’s report card scored 12 companies on their supplier diversity performance in California. PG&E’s grade placed the utility within the top five. Greenlining used three criteria in grading the companies:

Progress from previous years as demonstrated through percentage spent on diverse contracts;
Performance in relation to industry peers;
Progress relative to the California Public Utilities Commission’s overall goals of 15 percent of procurement from minority-owned businesses, five percent from woman-owned businesses and 1.5 percent from disabled veteran-owned businesses.

PG&E has supported a diverse supply chain for more than three decades. The company has developed one of the state’s leading supplier diversity programs, which has resulted in an 11-year trend of consecutive year-over-year growth in diverse spending. In 2013, PG&E spent $2.3 billion with diverse suppliers, accounting for 42.1 percent of its total procurement budget and an increase of $265.2 million from 2012.

PG&E’s Supplier Diversity program has also received honors in 2014 from the National Minority Supplier Development Council; DiversityInc.; DiversityBusiness.com; Women’s Business Enterprise National Council.

PG&E’s Supplier Diversity website contains more information about the program. The site also provides details on how to become a certified diverse supplier.

PG&E hikes spending on Asian-owned businesses and other diverse suppliers