SoCalGas’ long history of supporting diverse business enterprises resulted in another record year of spending with this subset of vendors. Last year, SoCalGas spent $884.2 million with more than 550 minority, women-owned, service-disabled veteran or LGBT-owned businesses. This total represents 42 percent of the company’s spending in 2020 and marks the 28th consecutive year SoCalGas exceeded the California Public Utilities Commission (CPUC) goal of procuring 21.5 percent of total goods and services from diverse suppliers.
"During these unprecedented times where our world grapples with the COVID-19 pandemic, massive economic challenges and glaring racial inequities, SoCalGas is proud to have worked with over 550 diverse suppliers in 2020," said Jeff Walker, chief administrative and diversity officer and senior vice president at SoCalGas. "As SoCalGas looks to build the cleanest, safest and most innovative energy company in North America, our diverse suppliers will be a crucial part of our mission and we look forward to continuing our work with these business enterprises for years to come."
"I commend SoCalGas for their continued commitment to supplier diversity, thus supporting the growth and development of diverse business enterprises," said California State Senator Steven Bradford (D-Gardena). "Supplier diversity is a critical component of the business environment in California. The late Honorable Gwen Moore worked tirelessly to create focus on this issue, emphasizing the importance of utilizing diverse businesses and helping them to build a sustainable business. SoCalGas is a true leader in this space."
In addition to spending with diverse enterprises, SoCalGas also invests in the development of these firms. Development opportunities include business assessment programs, entrepreneurship courses, organizational and operation strategy programs, mentorship and technical assistance. The programs are designed to help diverse suppliers enhance their operations and help ensure success in their business partnerships.
"Things really took off for us when we began providing services for SoCalGas' Pipeline Integrity Management Program and Pipeline Safety Enhancement Plan and were awarded a master service agreement to provide engineering and surveying services," said Mary Josenhans, co-founder, president and CEO at WestLAND.
"In 2014, we had 70 employees; now, we have about 100 employees. The increase is almost entirely due to SoCalGas — more than half of our employees are working on the company's projects," said Craig Bingham, vice president at Johnson-Peltier.
In 2020, SoCalGas purchases with women-owned businesses were surpassed for the 32nd consecutive year, totaling nearly $243 million. The company also marked spend with 135 new diverse firms as well as $192 million in spend with diverse subcontractors. Other 2020 highlights include:
• $568 million spent with minority-owned businesses (category includes both minority men and women-owned)
• 41.3% total purchases with diverse suppliers
• $61 million spent with disabled-veteran business enterprises
• 15 firms among the top 25 SoCalGas suppliers are diverse firms
• 92% of suppliers are based in SoCalGas' home state of California
In 2021, SoCalGas plans to continue its best practices in supplier diversity and identifying opportunities for diverse suppliers as the company looks toward the future of energy in California. More information on the company's mission and strategic priorities can be found at socalgas.com/mission.
More information about SoCalGas' commitment to supplier diversity can be found in the newly released 2020 Supplier Diversity Annual Report. To apply to the SoCalGas Supplier Diversity Program please visit socalgas.com/for-your-business/supplier-diversity.
