Sustainable Procurement

We work with fuel and nonfuel suppliers at the local, regional and national levels to drive continuous improvement and efficiencies within the supply chain while improving environmental and safety performance. We ask suppliers about their sustainability strategy and activities through our procurement process. We are also asked by our customers about our own sustainability because we are in their supply chain.

Learn About Supplier Diversity

Non-fuel Suppliers

AEP buys billions of dollars in goods and services every year, ranging from chemical solvents and office supplies to vehicles and industrial equipment from national, regional and local suppliers. As a large company, we are able to manage costs by negotiating prices, being strategic about sourcing and managing inventory. By applying a procurement category management model in a just and reasonable manner, we are able to look at the whole value chain from sourcing through inventory. Our goal is to be an industry leader in procurement performance, cost and value by 2018.

One way we are improving efficiency is through strategic sourcing - optimizing what we buy and how we buy it. Our procurement team is getting involved earlier in the purchasing process and standardizing the process by educating employees on best procurement practices.

We are also leveraging technology through e-commerce solutions that allow us to communicate, solicit bids and electronically exchange purchase order and invoice transactions.

Cybersecurity poses an increasing risk within our supply chain. As data breaches increase, so does the concern for how to protect our systems, to which many of our suppliers have access.

Learn More About Cybersecurity In Our Supply Chain

Sustainability in the Supply Chain

We respond annually to the Carbon Disclosure Project’s (CDP) Supply Chain Survey. This survey aims to drive action on climate change among both purchasing companies and their suppliers. The survey provides us with a different platform forbeing transparent about our sustainable supply chain efforts and collects business-related climate change information from our suppliers.

In 2017, AEP committed to conducting an online sustainability assessment of our company, at the request of two of our largest customers. It is the first time we have received this type of request.