Supplier Diversity

Supplier diversity is an American Water business imperative. National Supplier Diversity provides companies owned and operated by ethnic minorities, women, veterans, people with disabilities, members of the LGBTQ+ community the opportunity to compete for our sourcing needs. The value, innovation, flexibility, and customer-focused approach of diverse businesses serve as a true value proposition to American Water.

In our business operations, American Water offers opportunities for both prime suppliers and subcontractors. The coming year will represent the fourth year of our five-year plan for growth with specific goals tied to each state.

To further strengthen our commitment to supplier diversity, American Water hosts our Supplier Diversity Summit annually. This is our signature event to connect diverse suppliers to our business stakeholders. Our prospective suppliers meet and discuss opportunities with the decision-makers to align with our procurement needs.

Every employee is empowered to identify, qualify, select, and manage the procurement process for goods and services to ensure that qualified diverse suppliers are appropriately included. We also strongly encourage our prime contractors and major suppliers to support supplier diversity.

Our Supplier Diversity aligns with American Water’s overall Inclusion, Diversity & Equity efforts and is a critical component in maintaining our standards for excellence essential to Keep Life Flowing for our customers.

Metrics for 2021*

Our diverse supplier spend topped $417 million in 2021.

Supply Chain surpassed its goal in 2021 to increase diverse supplier spend to 18.9%.

2021 Diverse Supplier Goal: 18.9%
2021 Actual Diverse Supplier Spend: 19.3%

Our Diverse Suppliers