Over $1 billion spent with minority, women, disabled veteran, and/or LGBT-owned businesses; nearly 87% of businesses based in California
LOS ANGELES, March 6, 2024 /PRNewswire/ -- Today, SoCalGas announced the company exceeded the 2023 California Public Utilities Commission's (CPUC) diverse spending goal* for a 31st consecutive year, purchasing over 44% of all goods and services from 618 diverse suppliers – enterprises owned by minorities, women, LGBT individuals, and disabled veterans, according to the company's annual Supplier Diversity Report submitted recently to the CPUC. This achievement was reached through the company's continuing efforts to help increase the pool of diverse suppliers through broad outreach and education.
"As SoCalGas advances its mission to build the cleanest, safest, most innovative energy infrastructure company in America, we are proud that our supplier network reflects the diversity of the customers we serve," said Scott Drury, CEO of SoCalGas. "With so many diverse business enterprises in California, we are committed to expanding opportunity as we advance cleaner energy innovations. Our strong supplier diversity program increases competitiveness, enhances innovation, and supports our customers."
"As the Department of Energy prepares to invest billions of dollars in the nation's energy infrastructure, there is a monumental opportunity for minority businesses to engage in contracts and grants. SoCalGas serves as a leading example in its ongoing partnerships and commitment to fostering and encouraging diverse business enterprises to become eligible suppliers of products and services, which resulted in 44% ($1.02 billion) of its annual spend with diverse suppliers last year. These dollars have a significant impact in helping small businesses grow and in job creation across diverse communities," said Shalaya Morissette, Chief, Minority Business and Workforce Division, U.S. Department of Energy Office of Energy Justice and Equity.
Over the last seven years, SoCalGas has spent nearly $6 billion with diverse business enterprises.
"With a record of surpassing the state's supplier diversity goals for 31 consecutive years, SoCalGas has demonstrated a strong commitment to championing diverse businesses. While there is still more work to be done, their partnerships with diverse businesses, from mom-and-pop catering enterprises to construction firms, have created opportunities, jobs and a positive impact that is vital to California's economy," said Senator Steven Bradford.
2023 report highlights:
- 618 diverse suppliers worked with SoCalGas
- 86.9% of diverse business suppliers based in California
- 2,693 businesses received technical assistance
- 152 new diverse firms, totaling $54 million
- $716 million Minority Business Enterprises (MBE) – exceeded CPUC's 15% (about $347 million) minority business enterprise MBE goal for the 25th straight year
- $229 million Women Business Enterprises (WBE) – surpassed CPUC's goal 5% (about $116 million) for 36th consecutive year
- $74 million Disabled Veteran Business Enterprises (DVBE) – up 34.5% from 2022
- $277 million Diverse Subcontracting
"Our company has provided construction services since 1991, working on major projects throughout the state. As a proud Native American owned business and a certified Minority Business Enterprise, working with companies like SoCalGas allows us to continue expanding our projects and supporting infrastructure that directly impacts California residents," said Kirby Hays, President and Chief Executive Officer of Hal Hays Construction Inc.
"BuildOUT California, the LGBTQ+ community's first construction industry association, shares SoCalGas' mission to expand opportunities for diverse businesses throughout the state. By developing partnerships with small, diverse businesses, we uplift communities leading their industries," said Paul Pendergast, President of BuildOUT California.
"The Veterans in Business Network helps connect Veteran businesses with Corporations and Government Agencies for contracting opportunities, we also provide a variety of resources to support owners. We are so thankful that companies like SoCalGas provide us with opportunities that support our mission and uplift Veterans facing the challenges of owning a business," said Rebecca Aguilera-Gardiner, CEO of Veterans in Business Network.
SoCalGas' ASPIRE 2045 sustainability strategy includes a goal of achieving 45% spending with diverse business enterprises by 2025. ASPIRE 2045 sets forth SoCalGas' goal to achieve net zero greenhouse gas emissions in the company's operations and delivery of energy by 2045, as well as goals related to safety, DE&I in the workplace, and investment in underserved communities.
Many companies benefit from business development programs and services offered by SoCalGas' supplier diversity team, such as:
- SoCalGas' Smaller Contractor Opportunity Realization Effort (SCORE) program helps prepare smaller diverse suppliers with revenues of under $5 million and less than 25 employees, to participate in SoCalGas procurement opportunities.
- In 2023, SoCalGas' expenditures with 107 SCORE suppliers were over $129 million.
- Scholarships for 10 diverse business owners to attend the Management Development for Entrepreneurs Program at UCLA Anderson School of Management's Harold and Pauline Price Center for Entrepreneurship & Innovation each year.
To learn more about SoCalGas' supplier diversity programs, visit https://www.socalgas.com/for-your-business/supplier-diversity.
*California Public Utilities Commission Supplier Diversity Program, see General Order 156
https://www.cpuc.ca.gov/supplierdiversity/
About SoCalGas
Headquartered in Los Angeles, SoCalGas is the largest gas distribution utility in the United States. SoCalGas aims to deliver affordable, reliable, and increasingly renewable gas service to approximately 21 million consumers across approximately 24,000 square miles of Central and Southern California. We believe gas delivered through our pipelines plays a key role in California's clean energy transition by supporting energy system reliability and resiliency and enabling integration of renewable resources.
SoCalGas' mission is to build the cleanest, safest and most innovative energy infrastructure company in America. In support of that mission, SoCalGas aspires to achieve net-zero greenhouse gas emissions in its operations and delivery of energy by 2045 and to replace 20 percent of its traditional natural gas supply to core customers with renewable natural gas (RNG) by 2030. RNG can be made from waste created by landfills and wastewater treatment plants. SoCalGas is also investing in its gas delivery infrastructure while working to keep bills affordable for customers. SoCalGas is a subsidiary of Sempra (NYSE: SRE), an energy infrastructure company based in San Diego.
For more information visit socalgas.com/newsroom or connect with SoCalGas on X (formerly Twitter) (@SoCalGas), Instagram (@SoCalGas) and Facebook.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on assumptions about the future, involve risks and uncertainties, and are not guarantees. Future results may differ materially from those expressed or implied in any forward-looking statement. These forward-looking statements represent our estimates and assumptions only as of the date of this press release. We assume no obligation to update or revise any forward-looking statement as a result of new information, future events or otherwise.
In this press release, forward-looking statements can be identified by words such as "believe," "expect," "intend," "anticipate," "contemplate," "plan," "estimate," "project," "forecast," "envision," "should," "could," "would," "will," "confident," "may," "can," "potential," "possible," "proposed," "in process," "construct," "develop," "opportunity," "preliminary," "initiative," "target," "outlook," "optimistic," "poised," "maintain," "continue," "progress," "advance," "goal," "aim," "commit," or similar expressions, or when we discuss our guidance, priorities, strategy, goals, vision, mission, opportunities, projections, intentions or expectations.
Factors, among others, that could cause actual results and events to differ materially from those expressed or implied in any forward-looking statement include: decisions, investigations, inquiries, regulations, denials or revocations of permits, consents, approvals or other authorizations, renewals of franchises, and other actions, including the failure to honor contracts and commitments, by the (i) California Public Utilities Commission (CPUC), U.S. Department of Energy, U.S. Internal Revenue Service and other regulatory bodies and (ii) U.S. and states, counties, cities and other jurisdictions therein where we do business; the success of business development efforts and construction projects, including risks related to (i) completing construction projects or other transactions on schedule and budget, (ii) realizing anticipated benefits from any of these efforts if completed, (iii) obtaining third-party consents and approvals, and (iv) third parties honoring their contracts and commitments; macroeconomic trends or other factors that could change our capital expenditure plans and their potential impact on rate base or other growth; litigation, arbitrations and other proceedings, and changes to laws and regulations, including those related to tax and trade policy; cybersecurity threats, including by state and state-sponsored actors, of ransomware or other attacks on our systems or the systems of third parties with which we conduct business, including the energy grid or other energy infrastructure; the availability, uses, sufficiency, and cost of capital resources and our ability to borrow money on favorable terms and meet our obligations, including due to (i) actions by credit rating agencies to downgrade our credit ratings or place those ratings on negative outlook, (ii) instability in the capital markets, or (iii) rising interest rates and inflation; the impact on affordability of our customer rates and our cost of capital and on our ability to pass through higher costs to customers due to (i) volatility in inflation, interest rates and commodity prices and (ii) the cost of meeting the demand for lower carbon and reliable energy in California; the impact of climate and sustainability policies, laws, rules, regulations, disclosures and trends, including actions to reduce or eliminate reliance on natural gas, increased uncertainty in the political or regulatory environment for California natural gas distribution companies, the risk of nonrecovery for stranded assets, and uncertainty related to relevant emerging and early-stage technologies; weather, natural disasters, pandemics, accidents, equipment failures, explosions, terrorism, information system outages or other events, such as work stoppages, that disrupt our operations, damage our facilities or systems, cause the release of harmful materials or fires or subject us to liability for damages, fines and penalties, some of which may not be recoverable through regulatory mechanisms or insurance or may impact our ability to obtain satisfactory levels of affordable insurance; the availability of natural gas and natural gas storage capacity, including disruptions caused by failures in the pipeline system or limitations on the withdrawal of natural gas from storage facilities; and other uncertainties, some of which are difficult to predict and beyond our control.
These risks and uncertainties are further discussed in the reports that the company has filed with the U.S. Securities and Exchange Commission (SEC). These reports are available through the EDGAR system free-of-charge on the SEC's website, www.sec.gov, and on Sempra's website, www.sempra.com. Investors should not rely unduly on any forward-looking statements.
Sempra Infrastructure, Sempra Infrastructure Partners, Sempra Texas, Sempra Texas Utilities, Oncor Electric Delivery Company LLC (Oncor) and Infraestructura Energética Nova, S.A.P.I. de C.V. (IEnova) are not the same companies as the California utilities, San Diego Gas & Electric Company or Southern California Gas Company, and Sempra Infrastructure, Sempra Infrastructure Partners, Sempra Texas, Sempra Texas Utilities, Oncor and IEnova are not regulated by the CPUC.
SOURCE Southern California Gas Company
