Illinois Utilities Report 44 Percent Diverse Spend in 2021

The 2021 supplier diversity spend reported by Illinois’ six investor-owned utilities showed that of the $5.1 billion spent among the utility companies, 2.2 billion – 44 percent –  was diverse spend. The largest investor owned electric, natural gas, water, and sewer companies in Illinois on Sept. 16, presented progress reports at the Annual Utility Supplier Diversity Policy Session about their supplier diversity expenditure in 2021 and identified procurement goals for 2022.

In 2014, the General Assembly approved Section 5-117 of the Public Utilities Act which established annual reporting obligations involving investor-owned utilities’ supplier diversity outreach and enclosure by the Illinois Commerce Commission, or ICC. The Supplier Diversity Statute established the Office of Diversity and Community Affairs to focus on the annual reporting and policy session needs and to work with the regulated utilities to enhance their supplier diversity. Illinois continues to be one of few states where the legislature has acknowledged the value of supplier diversity through statutory reporting requirements.

Illinois in 2017 became the first state to require suppliers of wind and solar to report their efforts to broaden their supply chains. The commission introduced outreach endeavours to the renewable energy sector to create a structure of reporting and verify conformity.

The report stated that over the last seven years, utility spending with minority, women and veteran owned companies has gradually increased from an average of 15 percent to over 33 percent, with some utilities reporting benefits of nearly 50 percent.

The companies that took part in the two-panel policy session were Ameren Illinois, Aqua Illinois, Commonwealth Edison, Illinois American Water, Nicor Gas, and People’s Gas/North Shore Gas. The first panel discussed supplier diversity enhancements within individual companies. All six companies reported robust gains in diverse spending and emphasised accomplishments to expand diverse spend for professional services.

The second panel consisted of several executives from the utilities and their associated businesses. During this discussion, they delved into measures they are taking to expand diversity within the professional services industry such as banking and finance, legal services and engineering, among others. The key theme from the discussion was the significance of matchmaking through group outreach and interacting across organisations that assist distinct specialists to develop relationships and enhance skills required by the utilities.