Mar 6, 2024

LOS ANGELES - 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/