Rockefeller Foundation's Economic Opportunity Coalition Announces New Chair & 3 Additional Fortune 500 Companies

Rhea-AI Summary

The Rockefeller Foundation announced John W. Rogers Jr. as the new Chair of the Economic Opportunity Coalition's (EOC) Management Committee. Edison International, Exelon (EXC), and Southern Company have joined the EOC with new procurement commitments, alongside existing members Xcel Energy, Micron, and Air Products. The EOC aims to strengthen domestic supply chains and build wealth in underserved communities through targeted procurement practices.

Companies partnering with the EOC have collectively purchased over $10 billion in products and services from small and historically underutilized businesses. The EOC Business Procurement pledge includes sponsoring technical assistance programs and allocating at least 15% of U.S.-based contracting spending to small and underutilized businesses by 2026. EOC members also committed more than $1 billion in deposits to Community Development Financial Institutions and Minority Depository Institutions in 2023.

Positive

• Exelon (EXC) joined the Economic Opportunity Coalition, potentially expanding its business opportunities
• Exelon spends approximately 40% of its procurement dollars with diverse-certified businesses annually
• EOC members collectively committed over $1 billion in deposits to CDFIs and MDIs in 2023
• Companies partnering with EOC have purchased over $10 billion from small and historically underutilized businesses

Negative

• None.

John W. Rogers Jr., Chairman and co-CEO of Ariel Investments, LLC, to join the EOC Management Committee as Chair, plus Edison International, Exelon Corporation, and Southern Company join Xcel Energy, Micron, and Air Products to help expand U.S. procurement and supply chain opportunities for small and historically underutilized businesses

NEW YORK, July 18, 2024 /PRNewswire/ -- The Rockefeller Foundation announced today that John W. Rogers Jr., Chairman and co-CEO of Ariel Investments, LLC, has joined the Economic Opportunity Coalition's (EOC) Management Committee as Chair. In addition, the EOC is an innovative initiative that has received new procurement commitments from Edison International, Exelon Corporation, and Southern Company. The three companies join Xcel Energy, Micron, and Air Product in advancing the EOC's goal of partnering with the private sector to strengthen domestic supply chains and build wealth in underserved communities through targeted procurement practices. The new developments come ahead of the two-year anniversary event for the EOC next week.

In July 2023, The Rockefeller Foundation announced it would incubate the Coalition, which was initially unveiled by Vice President Kamala Harris a year earlier, so that it could eventually spin out as an independent entity through the Foundation's public charity, RF Catalytic Capital Inc. (RFCC).

"Two years ago I announced the formation of the Economic Opportunity Coalition to bring together the strength of the public and private sectors to accelerate economic opportunity in communities of color and in all underserved communities," said Vice President Kamala Harris. "Last year, we called on the private sector to increase their commitments to use diverse suppliers. Today three additional companies have answered that call. There is more work to be done—and we will continue to work together to unlock the economic potential of all Americans." 

As a longtime champion of business diversity and economic justice, Mr. Rogers brings extensive experience and leadership to guide the EOC's efforts to partner with the private sector to strengthen domestic supply chains and build wealth in underserved communities by encouraging EOC members to do business with diverse-owned businesses in high-margin sectors of the economy. 

"The racial and gender wealth gap is a perpetual issue that must be addressed by thoughtful public-private partnerships. This historic initiative recognizes that government alone cannot substantially increase the capital available to minority- and women-owned businesses.  By investing in organizations across the spectrum – especially those in high-growth sectors where the most jobs and wealth are created – we will get closer to economic equality. I couldn't be more honored to help lead such an important organization aiming to solve this problem for our society," said Mr. Rogers, whose distinguished career includes founding Ariel Investments in 1983 and serving on corporate and nonprofit boards including NIKE, Inc., The New York Times Company, Ryan Specialty Holdings, Inc., the University of Chicago, and the Obama Foundation.

Last fall, the EOC issued a call to action for companies in emerging domestic sectors (semiconductors, clean energy, batteries, electric vehicles (EVs), heavy industry, and biomanufacturing), as well as the financial and professional services industry, to expand procurement and supply chain opportunities for small and historically underutilized businesses. Edison International, Exelon Corporation, and Southern Company join as signatories, alongside Xcel Energy, Micron, and Air Products, which signed on to this commitment as first movers last year. 

"Edison International recognizes how critical diverse suppliers are to the clean energy transition. It's vital that we work with business partners who represent the communities we serve. Over the past six years, Southern California Edison, our electric utility, has spent more than $2 billion annually with diverse suppliers," said Pedro J. Pizarro, president and CEO of Edison International. "By joining the Economic Opportunity Coalition, we look forward to building and expanding these partnerships." 

"Exelon believes that reflecting the customers and communities we serve in all aspects of our business is the only way we can be successful. We spend approximately 40 percent of our procurement dollars with diverse-certified businesses each year, and we're excited to join this collaborative effort of like-minded organizations to continue providing opportunities to these small businesses that are the economic engines of our communities," said Calvin Butler, President and CEO of Exelon Corporation.

"At Southern Company, intentional inclusion is one of our core values. We are proud to join the Economic Opportunity Coalition to deliver on our shared mission of enabling economic inclusion in the communities we are privileged to serve through our business procurement," said Christopher C. Womack, Chairman, President, and CEO of Southern Company.

Companies that have partnered with the EOC to make this pledge have collectively purchased more than $10 billion in products and services from small and historically underutilized businesses. The EOC Business Procurement pledge commitment includes:

1. Sponsor technical assistance programs for small and/or historically underutilized businesses to help them access high-margin contracts.
2. Pledge to allocate at least 15% of U.S.-based contracting spending on external goods and services from small and/or underutilized businesses by 2026, with energy and utilities companies committing to higher targets.
3. Expand the number of private companies committed to the collaborative effort to enhance access to high-margin contracts and foster supply chain resilience.

"The EOC envisions a competitive and inclusive U.S. economy that provides wealth creation opportunities for underserved individuals, businesses, and communities.  With the leadership of John Rogers, and his years of experience advocating for economic opportunity, the EOC is well positioned to advances its vision.  In addition, commitments made by EOC partners like Edison International, Exelon, and Southern Company are involving underserved businesses and communities in the industries that will drive our future economy," said Christopher Weaver, Executive Director of the Economic Opportunity Coalition. 

In addition to its procurement commitments, EOC members collectively committed more than $1 billion in deposits in 2023 to Community Development Financial Institutions (CDFIs) and Minority Depository Institutions (MDIs), as part of an effort to leverage the more than $8.5 billion dollars of equity investments made by the U.S. Department of Treasury's Emergency Capital Investment Program. With its success bolstering access to capital and procurement opportunities for small businesses, the EOC is creating opportunities in underserved communities.

The EOC, with support from Next Street, organizes a working group comprised of companies making the Business Procurement pledge to share best practices, align investments and strategies, and track progress toward meeting procurement commitments. The newly committed companies join the more than two dozen founding corporations and foundations advancing the EOC's initiatives: Ariel Investments, Bank of America, BNY Mellon, Capital One, Citi, Discover, Ford Foundation, Goldman Sachs, Google, Key Bank, Kresge Foundation, Mastercard, McDonald's, McKinsey & Company, Micron, Momentus Capital, Moody's, Next Street, PayPal, PNC, TIAA, The Rockefeller Foundation, and Upstart.

"In our role facilitating the EOC's Business Procurement working group, we commend Edison International, Exelon Corporation, and Southern Company for their commitment to supply chain inclusion within the country's clean energy future," said Michael Roth, Co-CEO of Next Street.

For more information about the Economic Opportunity Coalition, a fiscally sponsored project of RF Catalytic Capital, Inc., visit: https://www.rockefellerfoundation.org/initiative/economic-opportunity-coalition.

About Edison International

Edison International (NYSE: EIX) is one of the nation's largest electric utility holding companies, focused on providing clean and reliable energy and energy services through its independent companies. Headquartered in Rosemead, California, Edison International is the parent company of Southern California Edison Company, a utility delivering electricity to 15 million people across Southern, Central and Coastal California. Edison International is also the parent company of Trio (formerly Edison Energy), a portfolio of nonregulated competitive businesses providing integrated sustainability and energy advisory services to large commercial, industrial and institutional organizations in North America and Europe.

About Exelon Corporation

Exelon (Nasdaq: EXC) is a Fortune 200 company and the nation's largest utility company, serving more than 10.5 million customers through six fully regulated transmission and distribution utilities — Atlantic City Electric, BGE, ComEd, Delmarva Power, PECO and Pepco. Nearly 20,000 Exelon employees dedicate their time and expertise to supporting our communities through reliable, affordable and efficient energy delivery, workforce development, equity, economic development and volunteerism.

About Southern Company

Southern Company (NYSE: SO) is a leading energy provider serving 9 million customers across the Southeast and beyond through its family of companies. Providing clean, safe, reliable and affordable energy with excellent service is our mission. The company has electric operating companies in three states, natural gas distribution companies in four states, a competitive generation company, a leading distributed energy distribution company with national capabilities, a fiber optics network and telecommunications services. Through an industry-leading commitment to innovation, resilience and sustainability, we are taking action to meet customers' and communities' needs while advancing our goal of net zero greenhouse gas emissions by 2050. Our uncompromising values ensure we put the needs of those we serve at the center of everything we do and are the key to our sustained success. We are transforming energy into economic, environmental and social progress for tomorrow. Our corporate culture and hiring practices have earned the company national awards and recognition from numerous organizations, including Forbes, The Military Times, DiversityInc, Black Enterprise, J.D. Power, Fortune, Human Rights Campaign and more. To learn more, visit www.southerncompany.com.

About The Rockefeller Foundation

The Rockefeller Foundation is a pioneering philanthropy built on collaborative partnerships at the frontiers of science, technology, and innovation that enable individuals, families, and communities to flourish. We make big bets to promote the well-being of humanity. Today, we are focused on advancing human opportunity and reversing the climate crisis by transforming systems in food, health, energy, and finance. For more information, sign up for our newsletter at www.rockefellerfoundation.org/subscribe and follow us on X @RockefellerFdn and LI @the-rockefeller-foundation.

 

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SOURCE The Rockefeller Foundation

FAQ

What is Exelon 's (EXC) commitment to the Economic Opportunity Coalition?

Exelon (EXC) has joined the Economic Opportunity Coalition, pledging to allocate at least 15% of U.S.-based contracting spending to small and underutilized businesses by 2026. Exelon already spends approximately 40% of its procurement dollars with diverse-certified businesses annually.

How much have EOC partner companies spent with small and historically underutilized businesses?

Companies partnering with the Economic Opportunity Coalition have collectively purchased more than $10 billion in products and services from small and historically underutilized businesses.

What is the EOC Business Procurement pledge commitment for Exelon (EXC) and other energy companies?

The EOC Business Procurement pledge commitment for energy companies like Exelon (EXC) includes allocating at least 15% of U.S.-based contracting spending on external goods and services from small and/or underutilized businesses by 2026, with energy and utilities companies committing to higher targets.

How much did EOC members commit in deposits to CDFIs and MDIs in 2023?

EOC members collectively committed more than $1 billion in deposits to Community Development Financial Institutions (CDFIs) and Minority Depository Institutions (MDIs) in 2023.