Diverse Businesses Awarded Over $884 Million in SoCalGas Contracts in 2020, 42% of Total Spending

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Southern California Gas Co. (SoCalGas) reported a record year in 2020, spending over $884.2 million with more than 550 diverse businesses, exceeding the California Public Utilities Commission's goal of 21.5% for the 28th consecutive year. The company procured nearly 42% of total goods from women and minority-owned enterprises. Additionally, SoCalGas marked significant contributions, including $568 million with minority-owned businesses and $243 million with women-owned firms. The company emphasized its continuing commitment to supplier diversity and plans for further investments in diverse suppliers.

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Record spending of $884.2 million with diverse suppliers in 2020.
42% of total spending allocated to women, minority, service-disabled veteran, and LGBT-owned businesses.
$568 million spent with minority-owned businesses.
$192 million spent with diverse subcontractors.
135 new diverse firms added as suppliers.

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03/08/2021 - 01:20 PM

LOS ANGELES, March 8, 2021 /PRNewswire/ -- Southern California Gas Co. (SoCalGas) announced today the company achieved another record year of spending with over 550 diverse business enterprises in 2020—at $884.2 million, the highest in company history. SoCalGas exceeded the California Public Utilities Commission's (CPUC) goal of 21.5% for the 28^th consecutive year by procuring nearly 42% of total goods and services from women, minority, service-disabled veteran, and LGBT-owned businesses.

"During these unprecedented times where our world grapples with the COVID-19 pandemic, massive economic challenges and glaring racial inequities, SoCalGas is proud to have worked with over 550 diverse suppliers in 2020," said Jeff Walker, chief administrative and diversity officer and senior vice president at SoCalGas. "As SoCalGas looks to build the cleanest, safest and most innovative energy company in North America, our diverse suppliers will be a crucial part of our mission and we look forward to continuing our work with these business enterprises for years to come."

"I commend SoCalGas for their continued commitment to supplier diversity, thus supporting the growth and development of diverse business enterprises," said California State Senator Steven Bradford (D-Gardena). "Supplier diversity is a critical component of the business environment in California. The late Honorable Gwen Moore worked tirelessly to create focus on this issue, emphasizing the importance of utilizing diverse businesses and helping them to build a sustainable business. SoCalGas is a true leader in this space."

In addition to spending with diverse enterprises, SoCalGas also invests in the development of these firms. Development opportunities include business assessment programs, entrepreneurship courses, organizational and operation strategy programs, mentorship and technical assistance. The programs are designed to help diverse suppliers enhance their operations and help ensure success in their business partnerships.

"Things really took off for us when we began providing services for SoCalGas' Pipeline Integrity Management Program and Pipeline Safety Enhancement Plan and were awarded a master service agreement to provide engineering and surveying services," said Mary Josenhans, co-founder, president and CEO at WestLAND.

"In 2014, we had 70 employees; now, we have about 100 employees. The increase is almost entirely due to SoCalGas — more than half of our employees are working on the company's projects," said Craig Bingham, vice president at Johnson-Peltier.

In 2020, SoCalGas purchases with women-owned businesses were surpassed for the 32^nd consecutive year, totaling nearly $243 million. The company also marked spend with 135 new diverse firms as well as $192 million in spend with diverse subcontractors. Other 2020 highlights include:

$568 million spent with minority-owned businesses (category includes both minority men and women-owned)
41.3% total purchases with diverse suppliers
$61 million spent with disabled-veteran business enterprises
15 firms among the top 25 SoCalGas suppliers are diverse firms
92% of suppliers are based in SoCalGas' home state of California

In 2021, SoCalGas plans to continue its best practices in supplier diversity and identifying opportunities for diverse suppliers as the company looks toward the future of energy in California. More information on the company's mission and strategic priorities can be found at socalgas.com/mission.

More information about SoCalGas' commitment to supplier diversity can be found in the newly released 2020 Supplier Diversity Annual Report. To apply to the SoCalGas Supplier Diversity Program please visit socalgas.com/for-your-business/supplier-diversity.

About SoCalGas

Headquartered in Los Angeles, SoCalGas® is the largest gas distribution utility in the United States. SoCalGas delivers affordable, reliable, clean and increasingly renewable gas service to 21.8 million customers across 24,000 square miles of Central and Southern California, where more than 90 percent of residents use natural gas for heating, hot water, cooking, drying clothes or other uses. Gas delivered through the company's pipelines also plays a key role in providing electricity to Californians— about 45 percent of electric power generated in the state comes from gas-fired power plants.

SoCalGas' vision is to be the cleanest gas utility in North America, delivering affordable and increasingly renewable energy to its customers. In support of that vision, SoCalGas is committed to helping homes and businesses decarbonize their energy usage by delivering 5% renewable gas by 2022 and 20% by 2030. Renewable natural gas is made from waste created by dairy farms, landfills and wastewater treatment plants. SoCalGas is also committed to investing in its gas delivery infrastructure while keeping bills affordable for our customers. From 2015 through 2019, the company invested nearly $7 billion to upgrade and modernize its pipeline system to enhance safety and reliability. SoCalGas is a subsidiary of Sempra Energy (NYSE: SRE), an energy services holding company based in San Diego. For more information visit socalgas.com/newsroom or connect with SoCalGas on Twitter (@SoCalGas), Instagram (@SoCalGas) and Facebook.