WEBVTT
1
00:00:00.549 --> 00:00:03.132
(gentle music)
2
00:00:08.790 --> 00:00:10.770
Stakeholder expectations around ESG
3
00:00:10.770 --> 00:00:12.570
have risen dramatically in recent years.
4
00:00:12.570 --> 00:00:15.637
And while we often talk about climate around ESG,
5
00:00:15.637 --> 00:00:18.930
we cannot ignore the social impact
6
00:00:18.930 --> 00:00:20.940
that organizations can have.
7
00:00:20.940 --> 00:00:22.470
And one of the biggest levers
8
00:00:22.470 --> 00:00:24.450
that an organization can pull to have
9
00:00:24.450 --> 00:00:27.270
greater social, societal, and economic impact
10
00:00:27.270 --> 00:00:29.523
is building a more inclusive supply chain.
11
00:00:30.780 --> 00:00:33.420
According to the Center for Business & Economic Research,
12
00:00:33.420 --> 00:00:35.910
50% of the gross output of the US economy
13
00:00:35.910 --> 00:00:37.140
is in the B2B economy.
14
00:00:37.140 --> 00:00:39.780
So if we're not including diverse-led businesses
15
00:00:39.780 --> 00:00:41.190
in our supply chains,
16
00:00:41.190 --> 00:00:44.220
we're excluding them from whole portions of economic growth.
17
00:00:44.220 --> 00:00:45.840
So that becomes an economic issue.
18
00:00:45.840 --> 00:00:47.010
It's an issue for the wealth gap.
19
00:00:47.010 --> 00:00:48.330
It's an issue for sustainability.
20
00:00:48.330 --> 00:00:50.190
It's an issue for innovation.
21
00:00:50.190 --> 00:00:52.830
And when you think about the positive impact that has,
22
00:00:52.830 --> 00:00:54.360
it creates more jobs,
23
00:00:54.360 --> 00:00:57.210
it creates more investment in underserved communities.
24
00:00:57.210 --> 00:01:00.840
Creates more wealth for families and communities overall.
25
00:01:00.840 --> 00:01:03.810
And so, the societal and economic imperative
26
00:01:03.810 --> 00:01:05.280
of supplier diversity
27
00:01:05.280 --> 00:01:09.415
has to be at the center of any ESG strategy.
28
00:01:09.415 --> 00:01:11.100
(gentle music)
29
00:01:11.100 --> 00:01:13.290
Like any other topic around diversity, equity,
30
00:01:13.290 --> 00:01:14.940
and specifically inclusion,
31
00:01:14.940 --> 00:01:17.910
we are not well practiced at this as industry.
32
00:01:17.910 --> 00:01:20.340
We are not well practiced at this as societies more broadly.
33
00:01:20.340 --> 00:01:24.300
And so, really what it requires is intention and innovation
34
00:01:24.300 --> 00:01:26.700
and leaders that are willing to make a commitment
35
00:01:26.700 --> 00:01:30.627
and try new and different approaches to be more inclusive.
36
00:01:30.627 --> 00:01:33.210
(gentle music)
37
00:01:34.440 --> 00:01:35.970
Corporations can mobilize
38
00:01:35.970 --> 00:01:38.790
to build more diverse and inclusive supply chains
39
00:01:38.790 --> 00:01:41.070
by building the right capabilities
40
00:01:41.070 --> 00:01:45.000
and expertise to really work with diverse companies.
41
00:01:45.000 --> 00:01:47.100
Sometimes that requires a lot of creativity.
42
00:01:47.100 --> 00:01:48.240
Companies need to think about
43
00:01:48.240 --> 00:01:50.250
things like setting up joint ventures
44
00:01:50.250 --> 00:01:52.560
between a minority-owned business and
45
00:01:52.560 --> 00:01:56.670
potentially a non-minority-owned business that is larger.
46
00:01:56.670 --> 00:02:00.930
Sometimes they need to find ways to create access to finance
47
00:02:00.930 --> 00:02:03.690
either internally or through third partners.
48
00:02:03.690 --> 00:02:06.180
And sometimes it's about creating incubators
49
00:02:06.180 --> 00:02:07.920
and learning opportunities.
50
00:02:07.920 --> 00:02:10.500
Most corporations have the motivation,
51
00:02:10.500 --> 00:02:13.890
but they find out that getting real traction
52
00:02:13.890 --> 00:02:16.530
is more difficult than expected.
53
00:02:16.530 --> 00:02:19.230
And that is because the incentive systems
54
00:02:19.230 --> 00:02:22.560
in many corporations are geared towards controlling costs
55
00:02:22.560 --> 00:02:23.850
and controlling risk.
56
00:02:23.850 --> 00:02:25.410
But working with a new supplier,
57
00:02:25.410 --> 00:02:28.680
sometimes a smaller supplier, can be a challenge
58
00:02:28.680 --> 00:02:30.303
and it requires more effort.
59
00:02:31.530 --> 00:02:35.100
We have a common responsibility in the business community
60
00:02:35.100 --> 00:02:36.690
to maintain the current momentum
61
00:02:36.690 --> 00:02:38.790
and to continue to accelerate it.
62
00:02:38.790 --> 00:02:40.500
We have to show corporations
63
00:02:40.500 --> 00:02:42.930
that supplier diversity can become not only
64
00:02:42.930 --> 00:02:44.880
a competitive advantage for them
65
00:02:44.880 --> 00:02:46.974
but also a competitive imperative.
66
00:02:46.974 --> 00:02:48.150
(gentle music)
67
00:02:48.150 --> 00:02:51.450
We are looking to build scaled minority suppliers
68
00:02:51.450 --> 00:02:53.070
that can help the Fortune 500
69
00:02:53.070 --> 00:02:56.070
sustainably meet their diverse supplier goals.
70
00:02:56.070 --> 00:02:57.660
And for us that means
71
00:02:57.660 --> 00:03:00.450
building businesses that are minority owned,
72
00:03:00.450 --> 00:03:03.000
that are greater than $1 billion in revenue.
73
00:03:04.470 --> 00:03:06.930
Well, the challenge is, there are only about
74
00:03:06.930 --> 00:03:11.910
10 to 15 Black- and Latinx-owned minority businesses
75
00:03:11.910 --> 00:03:14.310
in the US today that are above $1 billion.
76
00:03:14.310 --> 00:03:15.720
There are very few.
77
00:03:15.720 --> 00:03:19.500
And currently 95% of minority-owned businesses
78
00:03:19.500 --> 00:03:21.660
have less than 5 million in revenues.
79
00:03:21.660 --> 00:03:23.730
And so, there's a big gap to fill.
80
00:03:23.730 --> 00:03:25.710
There's a lot of work that has to be done
81
00:03:25.710 --> 00:03:28.380
across the ecosystem to be able to fill that gap
82
00:03:28.380 --> 00:03:30.620
and to build scaled diverse suppliers.
83
00:03:30.620 --> 00:03:33.390
(gentle music)
84
00:03:33.390 --> 00:03:36.120
So we are looking to help build those businesses
85
00:03:36.120 --> 00:03:38.640
that can meet that demand and that can fill that gap.
86
00:03:38.640 --> 00:03:42.690
And so, we recognize that we need some long-term commitment
87
00:03:42.690 --> 00:03:45.000
and capital to invest behind businesses
88
00:03:45.000 --> 00:03:48.180
in strategic categories for the Fortune 500
89
00:03:48.180 --> 00:03:50.550
so that they can meet their diverse supplier goals.
90
00:03:50.550 --> 00:03:53.850
So, we expect to be looking for businesses
91
00:03:53.850 --> 00:03:58.500
that are already market leaders in their segments,
92
00:03:58.500 --> 00:04:01.440
that may or may not be minority owned today.
93
00:04:01.440 --> 00:04:02.760
But through our ownership,
94
00:04:02.760 --> 00:04:06.120
will become minority-owned businesses at scale.
95
00:04:06.120 --> 00:04:08.370
And we will help them to grow
96
00:04:08.370 --> 00:04:11.310
in the ways that the Fortune 500 need,
97
00:04:11.310 --> 00:04:13.680
so that they can meet their supplier diversity goals
98
00:04:13.680 --> 00:04:16.980
and we can help to build diverse companies
99
00:04:16.980 --> 00:04:20.332
that are able to uplift communities of color.
100
00:04:20.332 --> 00:04:22.915
(gentle music)