increase in U.S. Tier 1 and 2 diversity spend in 2022 from 20211
increase in U.S. Tier 1 and 2 diverse suppliers in 2022 from 20211
Engaging a diverse pool of suppliers can have a transformative positive impact on our business and on the communities we serve. By providing access to economic opportunities for suppliers of all backgrounds, supplier diversity can create jobs, close wage gaps, improve impoverished communities and change lives. In the past year, we continued to accelerate our supplier diversity program, promote an inclusive approach to procurement and nurture relationships with traditionally underrepresented or underserved suppliers.2
Our approach is proactive—we help underrepresented groups navigate the requirements to qualify for the tendering process and for certification as a diverse supplier. We partner with external organizations, such as the National Minority Supplier Development Council (NMSDC), National Gay & Lesbian Chamber of Commerce (NGLCC) and Women’s Business Enterprise National Council (WBENC) development councils. We also engage our colleagues in our supplier diversity initiatives to ensure fairness and equality across the business landscape. In 2022, our supplier diversity team presented at the Zoetis Global Diversity Summit to help us raise awareness companywide.
Advancing Gender Equality within our Supply Chain
Zoetis is now part of a growing coalition of companies advancing gender equality in communities around the world. In 2022, we joined the Coalition for Gender Fair Procurement, an organization working to inspire progress toward UN SDG 5: Gender Equality and establish a new industry standard for gender fair procurement. To become certified as a Gender Fair company, a business must complete the Gender Fair assessment, which scores organizations’ progress against the United Nations Women’s Empowerment Principles.
In 2022, Zoetis took the assessment and became certified as a Gender Fair company, with an independently verified score of 88/100, putting the company in the top six percent of 800 companies in the Gender Fair Database. We encourage our suppliers to take the assessment, too. Our plan is to reassess our progress year on year and to encourage our high-impact suppliers to be Gender Fair assessed. Longer term, as the Coalition grows, we aim to integrate the Gender Fair assessment as a standard procurement requirement to evaluate our supplier landscape.
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1 Zoetis diverse supplier spend increase is based on all procurement spend with diverse suppliers located in the United States. The increase in diversity spend and supplier count is based on both Tier 1 and Tier 2 diverse spend. Tier 1 diverse spend is defined as a direct expenditure with a certified diverse supplier. Tier 2 is defined as spend attributable to Zoetis, either directly or indirectly, through a primary supplier to a diverse supplier (certified or self-certified), but the diverse supplier has no direct contract with Zoetis.
2 Zoetis defines diverse suppliers as women-owned, minority-owned, small business, LGBTQ-owned, veteran-owned and other disadvantaged enterprises. To qualify, a supplier must apply to one or more certifying organizations.