TXU continues to be a leader in supplier diversity, committed to the development and use of companies owned and operated by women and minorities. A successful supplier-diversity initiative broadens the economic vitality and prosperity of communities. Affording all qualified suppliers an opportunity to participate in the procurement and sourcing processes makes good business sense and contributes to TXU's corporate journey toward being a leading high-performance industrial company. In 2005, TXU's first-tier, or direct, expenditures with diversity suppliers reached $210 million, bringing cumulative first-tier spending since 1991 with companies owned by women and minorities to over $2.6 billion. Second-tier spending with diversity suppliers through subcontractors continues to increase in importance following TXU's Capgemini Energy outsourcing joint venture in 2004. These growing expenditures totaled $45 million in 2005. (see chart)
In 2005, TXU continued its best-in-class initiatives in supplier diversity, including the 14th year of recognizing employees and suppliers for their contributions through the Gold Star Recognition program. The second-tier program was enhanced to include new outsourced business partners. Mentoring of small businesses continued to be an outreach objective, along with participation and support of organizations that nurture the development and growth of companies owned by women and minorities including the Dallas/Fort Worth Minority Business Council, the Women's Business Council - Southwest, and the Central and South Texas Minority Business Council.
As a result of these efforts, TXU's supplier-diversity success was recognized for the seventh-consecutive year by the Women's Business Enterprise National Council as one of America's Top Corporations for Women Business Enterprises. TXU was also honored with the Sustaining Champion Award from the Minority Business News MCompany Awards.
Supplier diversity at TXU continues to win on two tracks: economic development of the communities it serves and positive contributions to TXU's competitive advantage by utilizing capable minority - and womenowned companies that provide quality goods and services competently and competitively.
