Con Edison of New York and Orange and Rockland Utilities continued to contribute to the economic vitality of the communities we serve by creating opportunities for minority- and women-owned businesses. These suppliers helped our company deliver safe, reliable, and sustainable energy services to our customers. In 2015, we purchased more than $280 million in goods and services from diverse businesses. Over the past decade, we have spent close to $3 billion with minority- and women-owned businesses.
Supplier Diversity expenditures increased 12 percent for transmission and distribution materials and 102 percent for professional services contracts in 2015. We are growing our Supplier Diversity Program by better aligning our efforts in support of our company's strategic priorities of safety, operational excellence, and the customer experience.
Notable examples of 2015 contract awards include:
- $6.8 million in contracts to a minority-owned business for safety equipment and clothing
- $10 million in contracts to minority-owned businesses for site-safety work
- $25 million in contracts to a woman-owned business for information-technology staffing
- $18 million contract to a woman-owned business for freight-logistics services
- $1.5 million contract to a minority-owned business for live gas-construction work
- $3.4 million contract to a woman-owned business for demand-management advisory services to enable our customers to reduce their energy usage
We expanded our support of diverse suppliers in nontraditional areas such as financial services. Two minority-owned firms managed $1 billion of U.S. small-cap and U.S. largecap equity funds for Con Edison. We also hired two minority firms as co-managers/underwriters in bond transactions worth $650 million. Expenditures in the financial services sector also included insurance services. We retained one broker to handle our business travel and employee crime insurance, and another to handle our liability and property insurance.
DEVELOPING DIVERSE SUPPLIERS
In order to develop the capacity of diverse vendors and build a pipeline of minority- and women-owned businesses that can compete on the basis of cost, quality, and innovation, we continued to work with local community stakeholder groups as well as local and national trade associations including:
- New York and New Jersey Minority Supplier Development Council
- Women Presidents' Educational Organization
- New York City Department of Small Business Services' Corporate Alliance Program/Columbia University Construction Mentorship Program
- Regional Alliance Clearinghouse for Small Contractors
- Goldman Sachs 10,000 Small Businesses program and Procurement Technical Assistance Centers affiliated with LaGuardia College
- South Bronx Overall Economic Development Corporation
- Orange County Chamber of Commerce
In 2015, we partnered with these organizations to host and/or participate in outreach events to recruit diverse vendors. We also helped diverse vendors to learn how they can better serve the needs of our customers by facilitating targeted matchmaker sessions with our procurement team and our internal subject matter experts.
LEADERSHIP IN SUSTAINABILITY
Con Edison continued to provide leadership in the utility industry in the areas of supplier diversity and sustainability through various initiatives and the vendors that it recruited.
Members of our Supplier Diversity team served in leadership roles locally, as vice president of the New Jersey Board of Public Utilities' Supplier Diversity Development Council, and nationally, as co-chair of the Edison Electric Institute's Supplier Diversity Industry Trends Group. We hosted and participated in forums that provided minority- and women-owned businesses with insights for how they can support our company's priorities and enhance their own competitiveness by incorporating best practices related to safety, ethics, and sustainable business practices.
The Supplier Diversity Program's collaborations with our company's Energy Efficiency group has resulted in contract opportunities for minority- and women-owned businesses that are reducing energy usage and energy costs for our customers and creating jobs for community residents.
In support of our company's commitment to being responsible stewards of the environment, the Supplier Diversity Program also successfully recruited a woman-owned business in 2015 that won a contract providing resource-recovery advisory services. This woman-owned business is helping us to improve our sustainability by helping to reduce, reuse, and recycle materials within our supply chain.