Entergy’s supply chain 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 are committed to securing effective partnerships, managing risk and ensuring that suppliers share our vision of a bright future.

Marlon Merritt - Vice President and Chief Supply Chain Officer


Our Approach

Supplier Relationships

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 (ESG) commitments, please see our Annual Integrated Report. 

Local & Diverse Supplier Development & Enablement

Entergy’s local and diverse supplier development and sourcing initiative is designed to identify and develop a robust population of safe, competent, and competitive suppliers capable of meeting our procurement needs. Diverse and local suppliers provide a variety of products and services and support investments across our business. Entergy makes a concerted effort to ensure that diverse suppliers are included in all applicable sourcing opportunities.

In 2020, it was increasingly important to provide additional opportunities to this supplier base in the communities we serve, especially during the challenging economic environment resulting from the pandemic. Each sourcing event is required to include at least one qualified diverse supplier, if available. In 2020, Entergy spent more than $865 million with approximately 780 diverse firms. In addition, an Entergy buyer was recognized as the Buyer of the Year by the Southern Region Minority Supplier Development Council. See our Supplier Diversity Program here.

    Entergy has already reached its diverse spend target for 2021 of 17% of managed spend. Our goal is to reach 30% by 2025.

    Procurement Bidding Process

    In 2020, in addition to diverse, local and safety criteria, Entergy began including sustainability questions in its procurement bidding process. Together, these questions now represent 25 percent 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 sustainability objectives. 

    Mapping to United Nation Sustainable Development Goals (UN SDG’s)

    We embrace the UN SDG’s 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, click here. While Entergy has mapped to all 17 of the UNSDG’s across the enterprise, Entergy’s Supply Chain has specific initiatives and targets supporting to following UNSDG’s:

     

    Vendor Management and Risk Oversight (VMOS)

    The vendor management oversight strategy (VMOS) created a standardized framework for yearly, strategic meetings at the executive level for our top-tier vendors. Executives collaborate to deepen relationships and focus on strategic issues such as shared company objectives, diversity, sustainability, safety strategy, etc. While not all subjects are discussed in every meeting, we are creating senior level relationships to guide the priorities of our supplier partners. 

    Our Partners:

          • Electric Utility Supply Chain Sustainability Alliance

            We are an active member of the Electric Utility Industry Sustainable Supply Chain Alliance. EUISSCA is known as the leader in establishing and promoting sustainability best practices in the electric utility supply chain in North America. Our chief supply officer served on the executive committee in 2019 and was elected as the vice chair for 2020. In addition, Entergy supply chain members have served on several key subcommittees including:

            • Social aspects of sustainability.

            • A supplier survey/assessment committee to measure key suppliers’ sustainability performance.

            • Investment recovery.

            • A committee created to embed sustainability questions in the utility sourcing processes.

            • Scope three emission working team.

            • Methane gas working team.

            • Construction and renewables.

            In 2020, Entergy received the Utility Member of the Year award out of a group of 20 utilities in the U.S. Entergy received the award due to our engagement in advancing the mission and goals of the Alliance.

                • In 2020, Entergy received the Utility Member of the Year award out of a group of 20 utilities in the U.S. Entergy received the award due to our engagement in advancing the mission and goals of the Alliance.

                • 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. 

        Our Key Initiatives:

                      • PrintReleaf

                        Through our strategic partnership with PrintReleaf, a company measuring and offsetting paper consumption by planting trees, Entergy has offset the use of approximately 86,577,000 sheets of paper. To achieve this, we contributed funding to plant over 10,300 trees in Brazil, India, Ireland, Madagascar, Mexico, the Dominican Republic and the United States (2019). 

                        Through our related Print Smart partner, we have achieved a net positive imprint on the environment through the following reductions:

                      • 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, click here.

                        This program:

                        • Facilitates recycling/repurposing retired assets and components.

                        • Sells surplus assets.

                        • Assesses market conditions and trends.

                        In 2019, investment recovery sales totaled $18.8 million for a cumulative total in sales of $64.6 million since 2015. Additionally, Entergy was able to recycle 14,503,000 pounds of metals in our distribution operations organization. This included recycling legacy meters from Entergy’s grid modernization project.

                      • Fly Ash

                        Strong demand for fly ash led to a strategic marketing solution that will improve landfill maintenance at Entergy’s coal sites. This new by-product partnership will increase revenues from fly ash sales from $13 million to $38 million over the five-year agreement while supporting stringent environmental compliance. Increased sales of fly ash benefit the environment and our communities by delivering less waste to landfills.

                      • Green Fleet

                        Since 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 out of companies located in Southeast Louisiana. Our fleet consists of:

                        On-Road Alt Fuel Vehicles

                        • Ethanol cars and pickup trucks.

                        • CNG pickup truck.

                        • Hybrid Electric cars.

                        • Plug-in Hybrid cars.

                        • All-Electric cars.

                        Off-Road Alt Fuel Vehicles

                        • Propane forklifts.

                        • Electric forklifts.

                        Engine Idle Reduction Technology

                        • Auxiliary Power Units (APU’s).

                        By operating external vehicle functions through APU’s, the driver can turn off the engine of the main vehicle, reducing idling time and GHG emissions.

                        The Future of Our Fleet:

                        Beginning in 2023, Entergy’s fleet plan is for all passenger vehicles, fork-lifts, pallet jacks, etc., 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.

                      • KeyString Labs

                        KeyString Labs was formed in 2019 to achieve innovation across our company and our industry. It is headquartered in the Warehouse District of New Orleans and is home to over 40 employees. KeyString Labs embodies innovation through working teams that tackle big problems, using technology, data, design, and customer insights. 

                        Distributed Energy Resources and Resiliency

                        Ensuring reliable power options to customers and essential businesses who are impacted by unpredictable weather and environmental events.

                        Backup generators to help Mississippi customers "power through" storms.

                        Reducing Our Carbon Footprint

                        Extending low carbon energy generation opportunities to make it possible for our customers, businesses, and communities to create energy in a cleaner way, together.

                        Our residential rooftop solar initiative in New Orleans.

                        Beneficial Electrification

                        Adding electric options for our customers to simultaneously reach sustainability goals and reduce their operations costs.

                        The Shore Power initiative allows marine vessels to plug into the land-based electrical power grid while at berth. Marine vessels at dock typically rely on diesel auxiliary engines to generate electrical power for on-board services and equipment, which creates significant air emissions. Using these diesel engines also creates vibration and noise pollution in port areas and causes wear and tear on shipside equipment. Converting marine vessels to electrical power while at berth reduces GHG emissions and significantly increases the sustainability of ours and other’s supply chains. Per vessel, shore power is estimated to result in significant reductions of net emissions:

                        • 98% reduction in NOx

                        • 48% reduction in SOx

                        • 42% reduction in CO2

                        Electrifying marine vessels in Louisiana.

                        Our first shore-power installation went into service in early 2020. Entergy believes there is more opportunities for shore-power projects as we have 37 ports in our service area, seven of which are among the 20 largest in the United States.

                         

        Key Performance Indicators:

        For more information about Entergy’s performance, please see our Performance Data Table. To learn more about the Dow Jones Sustainability Index (DJSI,) click here.