Clear vision, clear progress.

2015 Integrated Report

Supply Chain Management

We purchase approximately $3.4 billion annually in materials and services. A robust, sustainable supply chain is essential to our ability to serve our customers. We manage our supply chain using a defined supplier code of conduct, initiatives to build a more sustainable supply chain and a program for encouraging and facilitating greater supplier diversity and programs.

All suppliers are expected to conduct business in a manner consistent with our supplier code of conduct. We have incentive and non-incentive scorecards that target multiple performance indicators for the company and our key suppliers, including sustainability-related measures. Although specific scorecard measures differ based on the services and products provided, standard metrics used to align contractor performance with company objectives include safety, budget, radiation protection, schedule, reliability and human performance. Entergy is very active in the Electric Utility Industry Sustainable Supply Chain Alliance, serving on the executive committee and key subcommittees. EUISSCA is known as the leader in establishing a robust and sustainable electric utility industry supply chain.

Our Entergy supplier diversity and development initiative is designed to secure a diverse base of suppliers capable of meeting the company’s various procurement needs. In 2014 and 2015, our supplier diversity and development team hosted a series of diverse supplier forums in Arkansas, Louisiana, Mississippi and Texas to communicate what Entergy looks for in suppliers and to reaffirm our commitment to local suppliers. Since its inception in 1987, Entergy’s supplier diversity initiative has accounted for more than $3.5 billion in contracts and purchase orders awarded to diverse suppliers.