P&G Commits to Increase Spending with Diverse Owned Businesses to $5 Billion Annually by 2030
Just as we know that a diverse organization leads to better problem-solving and innovation, so does a diverse supply chain. While equality and inclusion have long been integrated into P&G's buying principles, we’re proud to announce that we are accelerating our supplier diversity efforts. We are committed to increasing our global spend with diverse-owned and women-led businesses from our previous target of $3 billion to $5 billion annually by 2030.
“For more than 40 years, the company has had a progressive supplier diversity strategy, resulting in more than $2B per year of spend with diverse suppliers every year since 2008,” said Ana Elena Marziano, Chief Purchasing Officer. “And in FY20/21 we surpassed $3 billion globally for the first time. Yet we need to do more to keep growing our business.”
We aim to accelerate growth of our business and partners by strategically focusing our spend and advocacy of diverse owned and led businesses because we see firsthand what is possible when large corporations - like P&G - provide meaningful opportunities to diverse-owned suppliers. Expanding access, opportunity, and investment creates a powerful Force for Good and a Force for Growth.
To help us meet this aggressive $5 billion goal, we will continue to add diverse companies to our supply base and help suppliers diversify their own supply networks in the United States. Additionally, in the U.S. we are:
- Working with our business leaders to establish specific targets and plans to drive action,
- Modifying our sourcing systems to make it easier for buyers to identify diverse-owned businesses, and
- Proactively offering certified diverse-owned companies the ability to leverage our world-class Supply Chain Financing program so they can improve access to cash.
Increasing supplier diversity spend generates massive ripple effects in the communities touched, creating a positive economic impact on local businesses and their workforces. To grow that impact, we are announcing our commitment to double our spend with African American-owned businesses by 2030. Meet some of our Black-owned External Business Partners.
We will increase efforts to grow and develop our current AA-owned external business partners to expand their scope and business with P&G. We are continuing to work with councils, like the National Minority Supplier Diversity Council (NMSDC), to identify new External Business Partners (EBPs), like we did in Advertising Production with our Widen the Screen initiative. We have a growing focus on promoting and supporting the equality and inclusion efforts of all our EBPs to drive representation throughout their organizations.
These efforts have a ripple effect throughout our global supply chain. Over the past 12 months, as a part of P&G's Take on Race commitments, we have undertaken a number of initiatives that have the potential to make a meaningful impact here in Cincinnati, where we are globally headquartered:
- In partnership with Kroger, P&G is helping deliver Mortar’s capability-building-curriculum to 13 Cincinnati–based diverse entrepreneurs.
- We are mentoring three Cincinnati-based, diverse-owned businesses from the NMSDC Ohio chapter.
- P&G is committed to coaching the entrepreneurs of the future. A great example of this is the work we are doing with Cintrifuse's Entrepreneurs Change the World virtual program for high school and college students.
- We are sponsoring the Women’s Business Enterprise National Council's "Women of Color" program. In September, P&G expects to train hundreds of women using P&G’s sales techniques to help the entrepreneurs be even more effective.
We are hard at work beyond the US as well, increasing our investment with women-owned businesses throughout the world. We have many great partners to enable this, including WEConnect International and UN Women and Women's Forum. This has come to life in a meaningful way with the hard work our P&G team in South Africa is leading. P&G excels at working with Broad-based Black Economic Empowerment (B-BBEE) compliant businesses through more than 175 local suppliers currently. Additionally, we partner with WEConnect International to develop local diverse-owned businesses by leveraging the experience and know-how of local P&G employees, sharing best practices and tools with entrepreneurs in the country.
We have much work to do but are inspired and committed to doing more when we see the impact that is possible through our efforts with partners. Learn more about the ripple effect.
Are you a diverse-owned or led business interested in working with P&G? Please click here to learn about how your company can be assessed.