Creating Diversity & Inclusion Within the Exelon Corporate Supply Chain

Rapid Conference 2019

Exelon: An Industry Leader

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EDBE Journey: Diversity = Growth

• Exelon consistently surpasses its annual supplier

diversity goals—focusing on Tier 1 and Tier 2

opportunities.

• In 2018, Exelon surpassed its goals for the

inclusion of diverse suppliers:

• Purchasing $2.2 billion in goods and services

from diversity-certified suppliers

• Representing 25 percent of supply-managed

expenditures for services and materials

• Exelon Nuclear’s 2018 diverse supplier spend

totaled $179M, representing 10% of total Opco

spending, exceeding its 8% goal.

• In, 2017 Exelon became the 27th overall company

inducted in the Billon Dollar Roundtable—and the

first energy / utility company.

+105%

Diversity Certified Supplier Spend ($M)

$1,067

$1,360

$1,933 $1,982

$2,192

$-

$500

$1,000

$1,500

$2,000

$2,500

EXELON

2014 2015 2016 2017 2018

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Exelon Diverse Business Empowerment Glossary of Terms

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Diversity Certified Suppliers A business holding a diversity certification from an approved third party certification

organization

Prime Contractor/Supplier Any party or person (who is not an employee of the company) who enters into any

agreement or arrangement with the company for the furnishing of supplies or

services for the use of real or personal property that, in whole or in part, is necessary

to the performance of any one or more contracts.

Tier 1 Prime contract spend with a diverse supplier

Tier 2 Subcontracted spend by T1 with a non-diverse supplier

WBE Woman Business Enterprise

MWBE Minority/Woman Business Enterprise

MBE Minority Business Enterprise

Veteran Veteran Owned Business

Service Disabled Veteran Service Disabled Veteran Owned Business

LGBT Lesbian, Gay, Bisexual, and Transgender-Owned Business EnterpriseEDBE

Leadership Engagement – The Value Proposition for Supplier Diversity

Market Access

• Provide access to new growth to strategically important diverse market segments• Ensures value added and talented diverse supplier base• Achieve a diverse range of suppliers, vendors and service providers

SupplyChain

Flexibility

• Provides second sourcing alternative in supply chain• Reduces supplier concentration risks (single source)• Potential lower cost alternatives to certain suppliers and business processes

CommunityImpact

• Enhance Exelon brand recognition and corporate image• Demonstrate Exelon’s values for community and customers commitment• Enables increased and sustained profitability for diverse customer base• Provides opportunities for new revenue sources to diverse supplier community• Connecting with the diverse consumer base

RegulatoryValue

• Enhances ability to meet government mandate/compliance without sacrificing profits or increasing cost

• Satisfy regulatory requirements per regional jurisdictions

Economic Impact

• Proactive approach toward influencing economic recovery and job creation• Stimulate and grow local businesses enterprises

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Strategy #1 – Leadership Engagement/Executive Comittment

Executive Commitment is Key!

Supplier Diversity initiatives succeed when the company

“C-Suite” endorses and commits; When supplier diversity

is important to the CEO and top management, it becomes

important to the entire team.

Exelon’s Supplier Diversity Program is designed to engage

certified women-owned businesses, minority-owned

businesses and other businesses with recognized diversity

classifications. Diversity is an Exelon core value and a

business imperative. In fact, achieving a diverse range of

suppliers, vendors and service providers is among our

formal, strategic goals.

Exelon’s Chief Supply Officer (CSO) and Diverse Business

Empowerment Director present annually to the Exelon CEO

and Board of Directors. Presenting to the Corporate Board

of Directors re-iterates the importance of supplier diversity

across the corporation, not just the Supply Chain

Having a written supplier diversity policy statement

communicates corporate definition of supplier diversity and

the corporate process for tracking, reporting and managing

the process

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Strategy #2 – Integrate Diverse Suppliers in the Sourcing Process

Ensure that diverse suppliers are integrated into the overall sourcing process

What are the areas (categories) of opportunity? What is the low-hanging fruit?

What is your sourcing strategy? Local and Diverse?

What are the categories of spend where there is a high percentage of available diversity

certified suppliers?

What are the resources available to identify diverse suppliers?

Link supplier diversity to overall corporate sourcing strategies

Focus on building capacity and developing diverse suppliers in core areas of spend

Focus on integrating diverse suppliers across all categories of spend

Focus on your company’s largest categories of spend

Benchmark against the best in class (supplier diversity) in your industry

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Exelon Best Practice:

Exelon’s Executive Vice President, Chief Supply Officer and Supply Chain leadership team

meet weekly with Category Managers and Supplier Diversity representatives to review and

discuss sourcing initiatives that are upcoming and in-flight to ensure a diverse slate of

bidders/suppliers.

Strategy #3 – Goal Setting, Tracking and Reporting Spend

“What gets measured gets managed “ – Peter Drucker Establish corporate supplier diversity performance goals

At Exelon, annual supplier diversity spend goals are established for our Operating Companies including

Nuclear and the Utilities.

The goal setting process includes a review of historical spend data and upcoming sourcing

initiatives/opportunities.

Proposed goals are socialized with each Opco leadership teams.

Starting in 2017, Exelon Nuclear established aggressive supplier diversity spend targets

Measure supplier diversity performance against goals

Review year over year performance $ and % (increase/decrease)

Review goals regularly (monthly, quarterly, annually)

Review key metrics regularly with senior management team, chief executive officer, chief supply officer

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Best Practice: Exelon supplier diversity metrics are tracked and reviewed monthly

with supply chain leadership ,operating company leadership and key stakeholders.

Strategy #3 – Goal Setting, Tracking and Reporting Spend

Track and report diverse supplier spend as T1 and Tier 2 within national diverse supplier

advocacy organization guidelines for large corporations.

Ensure that mechanisms exist to track and report diverse supplier spend data

Employ a third party organization for data enrichment activities

Are there “unknown” diverse suppliers already in your supply chain?

Identify areas of opportunity for non-diverse suppliers to optimize their use of diverse

subcontractors

- Establish Tier 2 (subcontracting) requirements? $/%s

- Establish mechanism for prime suppliers to report T2 spend

- Hold non-diverse suppliers accountable

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Tier 2 spend is to be reported by prime suppliers to Exelon through the P2P online reporting

platform

Tier 2 reporting is typically agreed upon prior to PO/Contract award

Direct spend will be reported by purchase order (PO) or contract

Exelon requires monthly reporting with the period opening on the 1st of each month and

reporting snapshot is taken on the 14th day of the month (or next business day) allowing for a

full 10 business day window to submit Tier 2 spend

Suppliers will be able to report Tier 2 spend for the previous month and has the ability to report

on any month that has already occurred within that calendar year

Reporting is HIGHLY encouraged to be submitted in a timely manner so that all Tier 2 spend is

captured for the previous month and accurately reflected in Exelon’s monthly reporting to

upper management

Direct and/or Indirect Spend is required of all reporting prime suppliers (if applicable)

For Exelon reporting purposes all diverse spend shall be submitted after payment is made to

the diverse subcontractors (not invoice date)

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Strategy # 3 - Goal Setting, Tracking and Reporting Spend

Exelon Best Practice – Tier 2 Institute

In addition to having contractual

language and mechanisms for non-

diverse suppliers to report subcontracting

spend, Exelon periodically hosts Tier 2

Institutes.

The Tier 2 Institute is a one-day

instructional seminar designed to assist

non-diverse prime suppliers in their

efforts to identify, work with and optimize

their relationships with diverse

subcontractors.

Program includes a presentation by the

Exelon Diverse Business Empowerment

team, a panel discussion with sourcing

leads and networking with pre-vetted

diversity certified suppliers.

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T2 SPOCs

BU Sourcing Group Leader T2 SPOC

Corporate Services & Materials Lisa Mason Jeanne Haran

Corporate IT/Telecom Erin LangstonJuliette Munnerlynn-

Jenkins

Nuclear ExGen Services Ryan Fitz-Patrick Erika Wiese

Nuclear ExGen Materials Ryan Fitz-Patrick Elaine Myers

Utilities EED Services Jim Gregory Brandi Pittman

Utilities EED Materials Bill Gallagher Chris Simcox

Power Strategic Sourcing Scott Donner Jackie Bonkoski

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Strategy #4 – Supplier Development

Identify supplier development

opportunities through the analysis of

underrepresented spend categories

Identify opportunity for supplier

mentoring

Identify diversity certified suppliers

that align with your sourcing strategy

Partner with non-diverse large

companies with industry expertise to

also mentor suppliers

Support external diverse supplier

technical assistance programs

National Minority Supplier

Development Council(NMSDC’s)

and affiliates Centers of Excellence

Program

Chicago United Five Forward

Program

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Exelon Best Practices

Exelon’s utilities to equip select diversity

certified suppliers with the tools and

knowledge to attain their next level of business

growth business through on-going and

meaningful one-on-one mentorship,

educational workshops on business skills,

safety policies, the Exelon bidding process,

and hands on support of resources.

ACE Target 25

BGE’s Focus Forward Academy

ComEd’s Enterprise All-In

DPL Target 25

PECO’s Power 25

Pepco Target 25

Strategy #5 – Supplier Outreach

The EDBE Office constantly builds relationships with diverse suppliers and ensures our active involvement with

minority business development and advocacy organizations. As a result, Exelon maintains a large database of

qualified diverse suppliers. Our participation in local, regional and national diverse-supplier advocacy

organizations also enhances our knowledge of diversity-certified suppliers. In 2018, we expanded opportunities

in categories in which diverse suppliers were historically underrepresented. The supply sourcing teams worked

with regional organizations to leverage their resources and ensure local diverse contractors were positioned for

meaningful participation in future bid opportunities in these categories. National and regional organizations that

Exelon partners with include:

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National Organizations

• American Association of Blacks in Energy

• Edison Electric Institute

• Human Rights Campaign

• Rainbow PUSH Trade Bureau

• The Women’s Business Enterprise National Council

(and regional affiliates)

• Billion Dollar Roundtable

• National Utilities Diversity Council

Regional Organizations

• Capital Region Minority Supplier Development Council (CRMSDC)

• Chicago Minority Supplier Development Council (CMSDC)

• Chicago United (The Five Forward Program)

• Eastern Minority Supplier Development Council (EMSDC)

• Hispanic American Construction Industry Association

• Illinois African American Chamber of Commerce

• Illinois Hispanic Chamber of Commerce

• Illinois Utilities Business Diversity Council

• Maryland Chamber of Commerce

• Maryland Governor’s Office of Minority Affairs

• Maryland Hispanic Chamber of Commerce

• Maryland Minority Contractors Association

• New Jersey African American Chamber of Commerce

• New Jersey Supplier Diversity Development Council

• Philadelphia African American Chamber of Commerce

• Philadelphia Gay and Lesbian Chamber of Commerce

• Philadelphia Hispanic Chamber of Commerce

• Philadelphia Independence Business Alliance

• Maryland Washington Minority Companies Association

National Minority Supplier Development Council (NMSDC) Affiliates

National Minority Supplier Development Council

(NMSDC) Affiliates

The National Minority Supplier Development

Council advances business opportunities for

certified minority business enterprises and

connects them to corporate members. To achieve

their mission, NMSDC:

work through the NMSDC Network to support

and facilitate MBE integration into corporate

and public-sector supply chains;

build MBE capacity and capabilities through our

programs and other education offerings; and

facilitate MBE-to-MBE partnerships to meet the

needs of our corporate members.

The National Minority Supplier Development

Council Inc ® (NMSDC®) is one of the country’s

leading corporate membership organizations.

Whether you’re a small minority-owned

organization or a billion dollar powerhouse, we’re

committed to helping you solve the growing need

for supplier diversity.

With more than 12,000 certified minority-owned

businesses, the NMSDC links them with corporate

members who wish to purchase their products,

services and solutions.

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The NMSDC has 22 affiliates across the country and Puerto

Rico, Below is contact info for the affiliates to which Exelon is

a member:

Capital Region Minority Supplier Development Council

Serving the District of Columbia, Maryland and Northern

Virginia Ms. Sharon Pinder

President/CEO

Silver Spring, MD 20901

(301) 593-5860

Chicago Minority Supplier

Development Council

Serving Metro Chicago and NW Indiana

Ms. Shelia Morgan, President/CEO

105 West Adams Street

Suite 2300

Chicago, IL 60603

(312) 755-8880

Eastern Minority Supplier

Development Council

Serving Pennsylvania, Southern

New Jersey and Delaware

Ms. Valerie Cofield, CEO

Rodin Place

2000 Hamilton Street, Suite 300

Philadelphia, PA 19130

(215) 569-1005

Women’s Business Enterprise National Council (WBENC) Affiliates

WBENC Affiliates

• The Women’s Business Enterprise National

Council (WBENC) is the largest certifier of

women-owned businesses in the U.S. and a

leading advocate for women business owners

and entrepreneurs.

• WBENC’s mission is to fuel economic growth

globally by identifying, certifying, and facilitating

the development of women-owned businesses.

• WBENC Certification validates that a business is

at least 51 percent owned, controlled, operated

and managed by a woman or women. Our world-

class certification standard is accepted by more

than 1,000 corporations representing America's

most prestigious brands, in addition to many

states, cities and government entities.

• We provide best-in-class programming, events

and networking opportunities for women-owned

businesses, supplier diversity experts,

government and corporate procurement

professionals, and other industry and thought

leaders throughout the U.S.

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WBENC has 14 affiliates across the country.

Below are the WBENC affiliates to which

Exelon utilities are a member:

Women’s Business Development Center – Midwest

Illinois, Iowa, Kansas, Minnesota, Missouri, Nebraska, North &

South Dakota, Wisconsin

EMILIA DIMENCO

President & CEO

8 South Michigan, 4th Floor

Suite 400

Chicago, IL 60603

tel: (312) 853-3477

Women's Business Enterprise Center East

Delaware, South New Jersey, Pennsylvania

ELIZABETH WALSH

President

1315 Walnut Street, Suite 1116

Philadelphia, PA 19107-4711

tel: (877) 790-9232

Women Presidents' Educational Organization-DC

District of Columbia, Maryland, Virginia

SANDRA EBERHARD

Executive Director

1120 Connecticut Ave. NW, Suite 1000

Washington, DC 20036-3951

tel: (202) 595-2637

ResourcesContact Information

Keisha Parker Director, Diverse Business Empowerment Exelon CorporationPhone: 312-394-4934Email: Keisha.parker@exeloncorp.com

Frank Kelly Manager, Diverse Business EmpowermentExelon/BGEPhone: 410-470-7811Email: frank.kelly@exeloncorp.com

Michael CabreraManager, Diverse Business EmpowermentExelon/ComEdPhone: 630-437-2231Email: Michael.Cabrera@exeloncorp.com

Vernice Lewis Senior Manager, Diverse Business EmpowermentExelon/PECOPhone: 215-841-6027Email: vernice.lewis@exeloncorp.com

Charlie Partridge Senior, Diverse Business Empowerment SpecialistExelon/PepcoPhone: 202-872-3171Email: cmpartridge@pepco.com

Wendy Mann FloresSenior, Diverse Business Empowerment SpecialistExelon/ACE/DPLPhone: 302-429-3224Email: wendy.mannflores@exeloncorp.com

Nikki BigelowAssociate Diverse Business Empowerment SpecialistExelon Corporation Phone: 410-470-7809Email: Nikki.Bigelow@exeloncorp.com

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