The Energy Circle is an elite group of energy companies that recognize the importance of supplier diversity to their business success and have developed strong affirming mentoring, development and capacity building programs. The energy industry is underrepresented in terms of supplier diversity, and these programs are critical to minority and women business enterprises that want to participate. As the energy industry advances due to technology, it is also expanding in response to the need to address environmental sustainability. This has created even more opportunities for diverse business enterprises.

One of the main challenges faced by a large energy company is finding diverse suppliers with the capacity to handle their projects. There is a real need for diversity in the supply chain because finding solutions to today’s energy problems and needs will require innovative approaches and creative thinking. Adding diversity to the procurement process gives an energy company what it needs to stay fully connected with the community it serves. Even more importantly, quality programs promoting supplier diversity are economic growth engines and job creators. The corporation reaches out into the marketplace and finds talent in businesses that only need access to opportunities in order to reach full capability and capacity.

Each company in the Energy Circle has demonstrated excellence in their diversity programs. No two approaches are the same, which means the companies can learn from each other. DTE Energy developed an expansive Supplier Diversity Program that works with a broad group of diverse business enterprises through networking and mentoring. The Pacific Gas and Electric Company (PG&E) blends supplier diversity development with its innovative Diverse Suppliers Go Green Program.

A creative approach to supplier diversity development is found in the successful procurement fairs designed by the Public Service Enterprise Group (PSEG) to bring diverse suppliers and the company buying team together. National Grid’s unique approach involves working with its diverse supply chain to lower greenhouse gases emissions, reduce costs and increase competitiveness. Entergy has developed an aggressive Second-Tier Initiative to build much needed capacity in its diverse supply chain.

The Energy Circle represents five companies taking five different approaches to supplier diversity though all include networking, training, and above all, commitment. These programs represent opportunities for minority and women business enterprises (MWBEs), service disabled veterans and disadvantaged businesses. They also represent value propositions for the energy companies. Supplier diversity can improve competitiveness and economic vitality through cost reductions, new products and services, and different viewpoints.

The businesses in the Energy Circle want their supply chains to represent the demographics of their communities. That’s how it should be. Their leadership, outreach and commitment, ingredients needed for success, set the standard high, but it’s a standard worth reaching. Everyone benefits from supplier diversity. It really is that simple.