SUPPLIER DIVERSITY
Our internal Procurement Policy aligns with our corporate strategy and takes a risk-based approach on controls while driving increased value to the company. Supply Chain maintains a Vendor Risk Management Program with – among other important criteria, such as safety and compliance risks – environmental, social and governance (ESG) evaluation criteria. Our Ethics and Compliance Code of Conduct for Consultants, Contractors, Suppliers and Vendors explains our expectations for service providers.
Supply Chain Governance
CenterPoint Energy’s Supply Chain organization oversees our robust supplier diversity program, which is guided by our internal Procurement Policy and Supplier Diversity Policy Statement.
The Board receives reports on the company’s supplier diversity program.
2022 SUPPLIER DIVERSITY SPEND PROFILE
- Total Supply Chain Sourceable Spend: $5.05 billion
- Total Diverse Supplier Spend: $620 million
- Percent Spend with Diverse Suppliers: 12% +
CenterPoint Energy recognizes the importance of diverse suppliers, such as minority-owned, women-owned, veteran-owned, HUBZone certified and all categories of small businesses. We strive to develop strong working relationships with a diverse supplier base and using innovative approaches designed to continually improve business opportunities through:
- Participation in local, state and national diversity councils
- Sponsorship of diversity trade shows, networking events and educational workshops for diverse and prime suppliers
- Sponsorship of scholarships to diverse suppliers through funding to local diversity business councils and Edison Electric Institute
- Supplier mentoring
- Partnering with prime suppliers to create Tier 2 business opportunities for our suppliers’ spend with diverse businesses
CenterPoint Energy engages with various supplier diversity advocacy organizations in capacities ranging from board, committee and organizational memberships, as well as sponsorships. Some of these organizations include:
- Edison Electric Institute Business Diversity Committee
- Golden Triangle Minority Business Council
- Greater Houston Business Procurement Forum
- Great Lakes Women’s Business Council
- Houston Minority Supplier Development Council
- Indiana Energy Association
- Mid-States Minority Supplier Development Council
- National Association of Women Business Owners
- National Minority Supplier Development Council
- National Veteran-owned Business Association
- North Central Minority Supplier Development Council
- Southern Region Minority Supplier Development Council
- Southwest Minority Supplier Development Council
- Women’s Business Council Ohio River Valley Women’s Business Council Southwest
- Women’s Business Development Center Midwest
- Women’s Business Enterprise Alliance
- Women’s Business Enterprise Council South
- Women’s Business Enterprise National Council
Recognized as the 2022 Local Corporation of the Year
by the Houston Minority Supplier Development Council
CenterPoint Energy was honored as the Local Corporation of the Year by the Houston Minority Supplier Development Council (HMSDC) and the Asian Chamber of Commerce Houston for its demonstrated commitment to supporting minority business enterprise development in the region, partnering with prime suppliers to enhance support for minority business development, and more.
Supply Chain
CenterPoint Energy’s Supply Chain organization partners with business units to develop strategic relationships that provide the best value to the company.
Our collaborative, comprehensive approach supports the goal that supplier agreements are reflections of our core values and commitment to diversity, equity and inclusion.
We strive to maintain a forward-leaning position focusing on continuous improvement and collaboration to enhance the performance, resiliency and efficiency of our operations by:
- Implementing an improved digital procurement platform to enhance operations across our sourcing and material management processes.
- Joining the Sustainable Supply Chain Alliance to engage in sustainability-focused working groups, share best practices and develop strategies for effective supplier engagements.
- Mitigating risks relative to sole source strategies in consideration of multisource opportunities to procure services and materials.
- Developing a supplier relationship management framework to better facilitate supplier partnerships; engaging with key suppliers as needed to address supply allocations to meet surging demand.
- Upskilling our vendor risk management team and retooling the risk assessment process to strengthen our overall vendor risk assessment protocols.