2016 CORPORATE RESPONSIBILITY REPORTFOCUSED PLACEMAKING2016 CORPORATE RESPONSIBILITY REPORT<img alt="" src="/SiteCollectionImages/CSR/supplier_diversity.jpg" style="BORDER:0px solid;" />

 

 

Focused Placemaking > Supplier Diversity<div class="restrictInterior generalContent"><div class="ms-rtestate-read ms-rte-embedcode ms-rte-embedil ms-rtestate-notify"><div class="restrictInterior generalContent" unselectable="on"><h1 unselectable="on">Supplier Diversity</h1><div unselectable="on">Forest City’s focus on a diverse supplier base helps us better execute our strategy and benefits the neighborhoods we serve. By embracing diversity in both our operating properties and new construction projects, we are able to have a meaningful impact on the surrounding community and better respond to the needs of our tenants and residents.</div><div unselectable="on">Whenever possible, Forest City aims to exceed local or regional supplier requirements during both the construction and maintenance of our properties. For all new construction projects without a local requirement, we set our own internal supplier diversity and hiring goals.</div><div unselectable="on">We increasingly use our procurement contracts and community benefit agreements as instruments to achieve diversity and inclusion requirements in our projects. For example, in developing the Pacific Park project in Brooklyn, New York, our goal is to award 30 percent of our contracts to women- and minority-owned businesses.</div><div unselectable="on">Our supplier diversity program aligns with national organizations such as the National Minority Supplier Diversity Council and the Women’s Business Enterprise National Council. We set internal targets that support the growth and success of minority- and women-owned businesses. In 2016, we set a goal of eight percent for enterprisewide, Procurement-directed diversity spending. We are proud to have exceeded this goal, attaining 10.25 percent diversity spend with minority, women and/or veteran business enterprises. We achieved this diverse spending growth through our procurement initiatives, for example, we require at least one diverse contractor to be included in the bidding process for all projects larger than $10,000. Forest City also utilizes a supplier locator tool through CVM Solutions, which offers a database of diverse vendors that can be sorted by region to evaluate and select locally based suppliers for our projects. </div><div class="crreportHighlight" unselectable="on"> <a name="forest-city-exceeds-diversity-targets-at-the-yards" class="bookmark" id="forest-city-exceeds-diversity-targets-at-the-yards" unselectable="on"></a> <div class="crreportHighlightStory" unselectable="on"><h5 unselectable="on">Forest City Exceeds Diversity Targets at the Yards</h5><div class="crreportHighlightText" unselectable="on">The Yards is the largest public-private partnership in Washington, D.C., with a present-value local revenue impact of more than $1 billion. An estimated 10,500 full-time, permanent jobs and approximately 1,000 full-time construction jobs are expected to be created at The Yards, and we are pleased to see many of these jobs go to local residents and businesses.<br unselectable="on"> <br unselectable="on">In developing The Yards, Forest City met its goal of fulfilling 51 percent of all new jobs created through the First Source Hiring Program, which connects economically disadvantaged individuals to available jobs. We also continued our participation in the Certified Business Enterprise (CBE) Program, which provides contracting preference for local businesses. In 2016, we exceeded our goal of achieving 35 percent CBE contract participation. Forest City also facilitated a training program for D.C. residents to become qualified applicants for a variety of retail and service jobs offered by tenants. This program helped retailers at The Yards meet their local employment goals. For example, grocer Harris Teeter hired 300 local residents and exceeded their goal of retaining more than 70 percent of these new hires for more than six months. </div></div><div class="crreportHighlightImage hs-theyards" unselectable="on"></div></div></div></div></div>Supplier DiversityFocused Placemaking > Supplier Diversity