The document discusses AGL Resources' supplier diversity program, which aims to connect minority- and women-owned businesses to opportunities in the natural gas industry. The program includes a business development program that helps new suppliers learn about the industry through mentorship and trial projects. AGL Resources works with suppliers that have a focus on environmental sustainability and spends over $20 million annually with minority- and women-owned suppliers. The supplier diversity program has helped businesses gain experience, hire new employees, and access new opportunities.

1. Winning Ad Campaigns I Signing Scorecards I Power of Approachability
Connecting Outstanding Women and Minority Businesses to Corporate America and the GovernmentThrough Supplier Diversity
November / December 2008 Vol. 5 I No.6 I www.diversityplus.com $ 4.95
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2. A
GL Resources - positioned to
become one of the nation's pre­
eminent distributors of natural
gas - is no stranger to the massive up­
tick in green thinking throughout the
energy industry.
Though the Georgia-based compa­
ny has deep roots and is parent to the
state's second oldest corporation - At­
lanta Gas Light - its strategies reflect
a thoroughly modern, progressive, and
environmentally conscious agenda.
Its line of work helps contribute to
en this outlook. Natural gas is widely re­
.0> garded as the cleanest-burning fuel,
c: producing less pollution and generat­co
a. ing a smaller carbon footprint than oil
E or coal.o
(.) As global energy demand skyrockets
and energy policy in the u.s. moves to­?D:l...
0>
wards expanding the role of natural gas
c: in the domestic energy mix, minority
LLJ
and women owned suppliers can look
.s:
~ for increasing opportunities to partner
3: with companies like AGL Resources.
en Since 2006, AGL Resources hasen
0> been steadily growing its supplier di­c:
versity program. X!ith a current annualen
~
minority and women-owned enter­
!:O
prises (MWBE) spend of twenty million'Q.O
c: dollars - as well as percentage goals of
o 3% for minority-owned businesses and
4% for women-owned businesses and
a two-year goal of 5% spend on each
group, the program is poised to con­
tinue ramping up MXfBE participation
over the next few years.
In an online statement on AGL Re­
sources' Xfeb site, a message from Pres­
ident and CEO John W. Somerhalder II
affirms, "All AGL Resources buyers are
encouraged to consider direct contracts
and recommend that prime suppliers
provide subcontracting opportunities
to diverse suppliers:'
In addition, AGL Resources' grow­
ing Business Development Program
helps certified MWBEs willing to cycle
through a mentorship and trial period
to learn the specifics of the natural gas
industry and form lasting partnerships
with the company.
Tarece Johnson Hassell, Manager
of Supplier Diversity for the company,
says that the Business Development
Program was developed to bring in
highly-skilled MWBEs who were new
to the field. Since the natural gas indus­
try is specialized, the program helps
AGL Resources meet a need that few
suppliers can readily fill.
"If we have a particular project or
opportunity, we're looking at partner­
ing the supplier with a relationship
Ta:rece Johnson Hassell
manager, helping them to understand
our business as well as the industry,
and then giving them a small part of
the project to provide some experi­
ence;' Hassell says. "As larger opportu­
nities come along, we'll feel confident
to progressively give them more and
more work:'
A green-friendly attitude is a very
large draw when AGL Resources is
considering a supplier for the program,
Hassell says. AGL's Web site says that
its passion for natural gas is in large
part due to the environmental benefits
30 DiversityPlus Magazine I November/December 2008 www.diversltyplus.com
C

3. Aworkshop sponsored by AGL Resources
associated with the fuel. Potential sup­
pliers who take a cue from this mental­
ity have a stronger chance of competing
for work with the ·company.
"If a diverse supplier already has a
going green initiative, that's one thing
we're going to look at;' Hassell says. "If
we're looking at one company that is
going green versus another that doesn't
have a green initiative, we'll end up go­
ing for the green company since that is a
quality we're really looking for:'
Construction and engineering,
which together comprise approximately
50% of the company's spend, are AGL
Resources' largest fields of opportunity
for diverse suppliers. although areas like
HR, professional services, and technol­
ogy are viable options as well.
When it comes to bridging an in­
dustry-knowledge gap for MWBEs with
construction and engineering experi­
ence' AGL Resources seeks out suppli­
ers who are both qualified at a related
field and willing to take the necessary
steps to ensure that they will successful­
ly be able to transition into the natural
gas industry.
One recent MWBE supplier under­
going this process is Integrated Con­
struction Management, Inc. company
with experience in the water industry
prior to entering gas industry work with
AGL Resources..
"At first we were a little wary;' says
Hassell, adding that although natural
gas and water depend on systems of
pipe, due to the chemical properties
of natural gas, individuals with certain
skill levels are required to perform our
work based on federal pipeline require­
ments which focus on safety and dam­
age prevention.
Per the Business Development Plan,
AGL Resources worked to mitigate as
many risks as possible and awarded the
company with a three-year contract to
paint its gas meters. Along the way, it
carefully monitored progress and de­
veloped a scorecard. The contract con­
tinues to proceed well. with excellent
service, quality and innovation.
Saurel Quettan. Vice- President at
Integrated Construction Management,
Inc., a minority supplier to AGL, says
that AGL is committed to growing sup­
pliers for the long term. "Our company
is a participant in the State of Georgia
Governor's IVIentor/Protege Program
and the AGL Resources Business De­
velopment Program. Both programs
are sponsored by AGL Resources and
designed to build the capacity required
to position our company as a viable
competitor and a supplier of choice;'
says Quettan.
Hassell says that AGL Resources'
emphasis on community relations and
economic development wherever it
conducts business is a major force be­
hind believing in and investing in new
MWBEs.
"One of the things the supplier said
to us was that he was able to hire new
people and that his new hire were then
better able to support their families;'
Hassell says. "By taking a risk on this
company even though they did not spe-
Corporate Feature
cifically have natural gas experience. by
them earning this project, we were able
to impact the community. We saw first­
hand something that we could do for
economic development:'
X!hen it comes to benchmarking its
Supplier Diversity practices. AGL Re­
sources looks both inside and outside
its industry at a comprehensive set of
examples. The group includes Georgia
Power, Coca Cola, Bank of America,
and JP Morgan Chase.
Best practices like mentoring. out­
reach, and ensuring that the goal of
Supplier Diversity is leveraged across
all sections of an organization have
helped AGL Resources shape their rel­
atively young program.
Barry Bennett, President of MME,
another minority supplier to AGL Re­
sources, says the company has provided
endless opportunities and growth for
his business. "The mentoring program
helped MME obtain a new contract
for our Engineering Sciences Division,
made many financial connections, and
access numerous resources that can
lead to more business opportunities for
MME. Besides those invaluable out­
comes, the workshop has also helped
MME recognize its strengths and
weaknesses, so that MME can continue
doing what we do well and improve in
areas where we are 'lacking:'
Hassell says that her goal for the
program is to continue its current ex­
pansion while keeping an eye on the
major focus of bridging the gap for
willing suppl iers in construction and
engineering through the Business De­
velopment Program, the arm of Sup­
plier Diversity that remains AGL Re­
sources' strongest priority.
"We would like to make this some­
thing we can do on a larger scale go­
ing forward because there are so many
businesses out there that just don't have
natural gas experience, Hassell says.
"Let's set them up to succeed and work
with them all the way as a partner:'
AGL Resources only forms Supplier
Diversity partnerships with recogniz­
ably certified MWB£ companies. An
official list of certifications, as well as
a summary of various opportunities at
the company, is available via www.agl­
resources.com/supplierdiversity.
www.dlversityplus.com DiversityPlus Magazine I November/December 2008 31