Rockefeller Foundation Welcomes New Economic Opportunity Coalition Member: Xcel Energy

Xcel Energy, first energy company to join the EOC, pledges to allocate 15% of U.S.-based contract spending in high impact areas to underserved businesses by 2025

NEW YORK | February 12, 2024 ― The Rockefeller Foundation announced today that Xcel Energy has joined the Economic Opportunity Coalition (EOC). Facilitated by RF Catalytic Capital Inc. (RFCC), The Rockefeller Foundation’s public charity, the EOC is a public-private partnership with the U.S. government designed to align and catalyze investments in underserved communities and create wealth, with a priority placed on supporting small businesses and expanding access to capital. Xcel Energy, which is headquartered in Minneapolis, Minn., and active in eight Western and Midwestern states, also committed to allocating 15% of its U.S.-based contract spending in the areas of energy supply, distribution and transmission, and clean energy to small and underserved businesses by 2025.

“As we transition toward a cleaner energy economy, it’s critical to not leave communities behind. Xcel Energy is proud to lead the way among energy companies in enhancing our supplier diversity commitment,” said Bob Frenzel, Chairman, President, and CEO of Xcel Energy. “We are joining the EOC to bolster a national effort to support small and diverse-owned businesses.”

In July 2022, The Rockefeller Foundation announced it would incubate the Coalition, which was unveiled by Vice President Kamala Harris a year earlier, so that it could eventually spin out as an independent entity. In 2023, EOC members collectively purchased more than $8 billion in products and services from small and diverse suppliers. Deposit commitments from EOC members could also leverage more than $9 billion in capital investments authorized by the U.S. Department of Treasury’s Emergency Capital Investment Program to expand Community Development Financial Institutions (CDFIs) and Minority Depository Institutions (MDIs) – connecting more small businesses from underserved communities with more trusted resources.

“One of the priorities of the EOC is to increase opportunities for small businesses across the country,” said Christopher Weaver, Executive Director of the Economic Opportunity Coalition Secretariat at The Rockefeller Foundation. “Xcel Energy shares our belief that small businesses are vehicles for wealth creation in underserved communities and our commitment to helping these businesses access both capital and customers.”

With its success bolstering community development finance in rural and urban low-income communities, The Rockefeller Foundation increased the EOC’s initial goal from $1 billion in committed deposits from the nation’s largest corporations for community lenders to $3 billion. The EOC also issued a call to large corporations in October to strengthen domestic supply chains and build wealth for underserved communities. The Coalition specifically asked semiconductor, clean energy, battery/EV, heavy industry, and biomanufacturing companies that are part of “Investing in America” sectors to do three things:

1. Commit 15% of procurement spend to small and disadvantaged businesses in these sectors;
2. Provide these businesses technical assistance to support their success; and
3. Submit disaggregated data reporting of their activities toward achieving those outcomes.

Xcel Energy, alongside Air Products and Micron Technology, was among the first to sign up. A leading provider of clean energy in the Midwestern and Western United States, Xcel Energy has also established a broader supplier diversity goal of 25% of spending on materials and services by 2025, up from 11% in 2022. In addition, the company spent over $1.2 billion in 2022 with businesses owned by women, minorities, veterans, LGBTQ+ individuals, and people with disabilities, as well as small businesses, resulting in a $2.2 billion economic impact to the U.S. economy and supporting over 11,500 jobs.

As the first energy company in the EOC, Xcel Energy joins nearly three dozen corporations and foundations: Ariel Investments, Bank of America, BMO Financial Group, BNY Mellon, Capital One, Citi, Discover, Fidelity, Ford Foundation, Goldman Sachs, Google, H&R Block, Intercontinental Exchange, Key Bank, Kresge Foundation, Mastercard, McDonald’s, McKinsey & Company, Micron Technology, Momentus Capital, Moody’s, Netflix, Next Street, PayPal, PNC, TIAA, The Rockefeller Foundation, Upstart, and Wells Fargo.

For more information about the Economic Opportunity Coalition, visit: https://www.rockefellerfoundation.org/initiative/economic-opportunity-coalition.

About Xcel Energy

Xcel Energy (NASDAQ: XEL) provides the energy that powers millions of homes and businesses across eight Western and Midwestern states. Headquartered in Minneapolis, the company is an industry leader in responsibly reducing carbon emissions and producing and delivering clean energy solutions from a variety of renewable sources at competitive prices. For more information, visit xcelenergy.com or follow us on X, formerly known as Twitter, and Facebook.

About The Rockefeller Foundation

The Rockefeller Foundation is a pioneering philanthropy built on collaborative partnerships at the frontiers of science, technology, and innovation that enable individuals, families, and communities to flourish. We make big bets to promote the well-being of humanity. Today, we are focused on advancing human opportunity and reversing the climate crisis by transforming systems in food, health, energy, and finance. For more information, sign up for our newsletter at rockefellerfoundation.org and follow us on X @RockefellerFdn.