"Entergy's supply chain organization procures everything from office supplies to large-scale equipment and services. We play a key role in meeting Entergy's commitment of achieving net-zero emissions by 2050. We're committed to securing effective partnerships, managing risk and ensuring that suppliers share our vision of a bright future."
Senior Manager, Supplier Diversity, Inclusion and Sustainability
Building collaborative relationships with our suppliers is a fundamental step towards succeeding in our company’s mission and climate goals. To achieve this, Entergy expects its suppliers to provide goods and services in a safe and environmentally conscientious manner consistent with our Supplier Code of Conduct. To learn more about Entergy’s environmental, social and governance, or ESG, commitments, please see our annual Integrated report.
Local and diverse supplier development and enablement
Entergy's local and diverse supplier development and sourcing initiative is designed to identify and develop a robust group of safe, competent and competitive suppliers capable of meeting the company’s business needs and elevating ESG performance. Our focus on including local and diverse suppliers benefits the communities we serve while providing Entergy with a higher level of personalized service, quality products and flexibility. Our employees make a concerted effort to ensure that diverse suppliers are included in all applicable sourcing opportunities. See an overview of our supplier diversity program here.
Procurement bidding process
In addition to diverse, local and safety criteria, Entergy includes sustainability questions in its procurement bidding process. Together, these questions now represent 25% of the total points available in the supplier selection process. The addition of sustainability criteria illustrates our understanding of the important role suppliers play in achieving Entergy's ESG objectives.
Mapping to United Nation Sustainable Development Goals
We embrace the UNSDGs and have identified primary impact areas that align most closely with our overarching supply chain sustainability strategy. Aligning to these goals gives Entergy a consistent strategy unaffected by political shifts within the United States. In addition, it provides a shared impact framework that makes results easier to communicate across our stakeholder groups. To learn more about how our activities align with these primary impact areas, visit here. While Entergy has mapped to all 17 of the UNSDGs across the enterprise, Entergy's supply chain has specific initiatives and targets supporting to following UNSDGs:
Our key initiatives
Through our strategic partnership with PrintReleaf, a company measuring and offsetting paper consumption by planting trees, Entergy has offset the use of approximately 208,698,000 sheets of paper. To achieve this, we contributed funding to plant more than 25,000 trees in Brazil, India, Ireland, Madagascar, Mexico, the Dominican Republic and the United States.
- Investment recovery
Entergy’s investment recovery commitments divert waste from landfills while simultaneously obtaining the best return on the dollar for assets that Entergy no longer requires. Re-selling our investments also helps facilitate Entergy's transition to a circular economy, an essential step for meeting our 2030 and 2050 climate goals. To learn more about this program, visit here.
- Facilitates recycling/repurposing retired assets and components.
- Sells surplus assets.
- Assesses market conditions and trends.
In 2021, our investment recovery sales totaled $14.6 million, and our cumulative sales over the last five years totaled $63.6 million. We recycled approximately 850,000 pounds of metals damaged by Hurricane Ida, with a total of 11.2 million pounds of metal recycled. In addition, almost 22,500 wood poles were donated to members of our communities. Through our transformer recycling program we recycled 1.1 million gallons of oil and over 27 million pounds of metals.
- Fly ash
Strong demand for fly ash led to a strategic marketing solution that will improve landfill maintenance at Entergy’s coal sites. Our strategic five-year agreement will result in improved landfill maintenance at Entergy’s coal sites and increased fly ash sales revenues. Sales are expected to increase from $13 million to $38 million over the five years. This improved revenue stream goes directly back to Entergy’s customers, which helps us remain a low-cost and low-impact provider.
- Green fleet
Launched in 2008, Entergy’s Green Fleet strategy sought to reduce the environmental impact of the company’s vehicles and equipment by using more efficient options, with a goal of achieving a 20% reduction in greenhouse gas emissions and fuel consumption from 2008 levels by 2020. Entergy achieved its target in 2015, five years ahead of schedule.
The strategy focused on creating more efficient replacement practices, purchasing more fuel-efficient engines and installing new emission systems. These practices improved the safety and efficiency of our operations to the benefits of our stakeholders.
Since achieving our reduction goal, Entergy has continued to modernize its fleet with increasingly sustainable vehicles. This effort was recognized in 2020, when Entergy was given the award for operating the most diverse clean fleet portfolio for companies located in southeast Louisiana. Our fleet consists of:
On-road alternative fuel vehicles
- Ethanol cars and pickup trucks.
- CNG pickup truck.
- Hybrid electric cars.
- Plug-in hybrid cars.
- All-electric cars.
Off-road alternative fuel vehicles
- Propane forklifts.
- Electric forklifts.
Engine idle reduction technology
- Auxiliary power units.
By operating external vehicle functions through auxiliary power units, the driver can turn off the engine of the main vehicle, reducing idling time and greenhouse gas emissions.
The future of our fleet
Beginning in 2023, Entergy's fleet plan is for all passenger vehicles, forklifts, pallet jacks, and other applicable equipment to be all-electric where readily available from the manufacturer. In addition to this, 80% of the company's aerial units will be electrically powered by 2031.
- Sustainable Supply Chain Alliance
We're an active member of the Sustainable Supply Chain Alliance. SSCA is composed of 30 electric utility members across North America and includes over 60 supplier affiliate members. Its combined electric utility supplier spend is more than $120 billion. The members of SSCA contribute the equivalent of 35 million tons of carbon dioxide into the atmosphere through their operations. Collectively, the members annually divert over one billion pounds of material from landfill. All are working together across utilities and suppliers to reach climate and net-zero goals in the next few years. See the 2022 SSCA State of the Industry Report to learn more.
Entergy's supply chain and sustainability and environmental policy leaders have served on several key committees, subcommittees and working teams, including those focusing on:
- Social aspects of sustainability.
- Measurement of key suppliers’ sustainability performance.
- Investment recovery.
- Embedding sustainability questions in the utility sourcing processes.
- Scope three emissions.
- Methane gas.
- Construction and renewables.
In 2020 and 2022, Entergy received the Sustainable Supply Chain Alliance Utility Member of the Year award in recognition of leadership in transforming its supply chain organization to help current and future generations address and mitigate science-based climate change.
- The Electric Highway Coalition
The Electric Highway Coalition’s goal is to offer electric vehicle users seamless travel across major regions of the country through a network of direct current fast chargers. The network is setting the framework for future engagements and partnerships to advance the sustainability of our supply chain. To achieve this, Entergy has partnered with American Electric Power, Dominion Energy, Duke Energy, Southern Company, and the Tennessee Valley Authority. Each service provider is actively working in their region to install charging stations:
This coalition represents an unprecedented effort to offer EV drivers convenient and uninterrupted travel across the South-Eastern United States. The charging stations will provide DC fast chargers that are capable of getting drivers back on the road in approximately 20 to 30 minutes.
The Electric Highway Coalition welcomes interested utilities to join as we seek to extend the reach of our charging network.
Key performance indicators
For more information about Entergy's performance, please see our Performance Data Table. Entergy's supply chain consistently ranks in the top quartile of the supply chain management section of the Dow Jones Sustainability Index, or DJSI. To learn more, visit here.
In 2022, 116 of our suppliers completed an annual sustainability assessment representing 52% of Entergy’s total managed spend.
Note: “Planning phase” indicates a supplier completed the assessment.