nisource inclusion and diversity report 2012

InclusionDiversity&NiSource

2012 NiSourceINCLUSION &

DIVERSITY REPORT

OUR�ASPIRATION

AT�NISOURCE,�WE�ASPIRE�

TO�BE�AMERICA’S�PREMIER

REGULATED�ENERGY�COMPANY,

PROVIDING�CUSTOMER-FOCUSED

ENERGY�SOLUTIONS,�

INVESTMENT-DRIVEN�GROWTH

OPPORTUNITIES�and�

SUSTAINABLE�VALUE FOR

CUSTOMERS,�INVESTORS�AND

EMPLOYEES.

CONTENTS

Letter from NiSource President & CEO Bob Skaggs

Our Inclusion & Diversity Commitment

Dimensions of Inclusion & Diversity

Fostering an Inclusive Employee Culture

Cultivating an Inclusive Culture with Our Customers

Engaging Community Partners Through Inclusion &Diversity

Championing Supplier Diversity

Our Journey Continues

OUR�COMMITMENT

LEARNING�FROM�ONE�ANOTHER,

BUILDING�A�GREAT�ORGANIZATION

Being North America’s Premier Regulated EnergyCompany means conducting ourselves in a way thatearns respect, supports our goals, and inspires us all todo our best work.

In that regard, Inclusion and Diversity (I&D) is central toour efforts to build a stronger company that respectsand values everyone’s unique contributions, views andfundamental desire to do good work.

This commitment is more than just the right thing to do. Itdrives tangible benefits for our company, our customersand all our stakeholders, including:

• Enhanced employee engagement • Improved customer service and satisfaction• Stronger communities, stakeholder relationships andregulatory outcomes

• High performance teams and results• A stronger NiSource brand and sustainability rating

This is an unprecedented time at NiSource, as we areliterally rebuilding vast amounts of our infrastructure andour organization. We are investing in training anddevelopment for our employees to grow the capabilitieswe need to succeed. And we are creating new teams,with great people, great attitudes and broadly diversebackgrounds, experiences and cultures. This effort ishelping create a strategic business advantage that willsustain us for decades.

Building America’s Premier Energy Company with a trulyinclusive and diverse culture takes understanding,commitment and time. We are proud of how far we’vecome and excited about the road ahead.

Robert C. Skaggs, Jr.President & CEO

A�LETTER�FROM�THE�PRESIDENT�&�CEO

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“BEING�NORTH�AMERICA’S

PREMIER�REGULATED

ENERGY�COMPANY�

MEANS�CONDUCTING

OURSELVES�IN�A�WAY�

THAT�EARNS�RESPECT,

SUPPORTS�OUR�GOALS�

AND�INSPIRES�US�ALL�TO

DO�OUR�BEST�WORK.”

Robert�C.�Skaggs,�Jr.

President�&�CEO

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SHARING�OUR�I&D�STORY

We are excited to share our I&D story. More than 1,000 employees across the organization are activelyinvolved in our I&D efforts through diversity councils,employee resource groups, mentoring programs and I&Dcommunity events. We are proud of our achievementsand it is this progress that tells the story of what I&Dmeans to NiSource.

Our I&D story extends beyond the numbers. It capturesthe full scope of I&D at NiSource through fourdimensions:

• Employee• Customer• Community• Supplier Diversity

These dimensions highlight the work we are doingtogether to deepen our understanding and acceptanceof I&D at NiSource.

We are committed to advancing and expanding I&D atevery level of our company. This inaugural reportrepresents a small sampling from the numerous effortsthat have inspired us along our journey. We areenergized about our path forward and invite you to sharein the wonderful ways that our diverse employees arelearning from one another, succeeding together andbuilding a great organization.

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SHARING�OUR�I&D�STORY

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Columbia�Gas�of�Maryland

employees�at�Hagerstown

United�Way�Day�of�Caring

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Columbia�Gas�of�Virginia

I&D�Council

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OUR�MISSION

To foster and advance an inclusive environment,creating a culture of acceptance and accountability thatrecognizes, values and celebrates differences amongour employees, customers and communities.

OUR�I&D�PHILOSOPHY

Our success depends on our ability to be open to newways of thinking that help make us a better communitypartner and strong company. Unique ideas, perspectivesand talents are encouraged and respected.

I&D is an essential part of who we are at NiSource. We promote inclusive behaviors that includecommunication, mutual respect, teamwork, valuingdifferences and acceptance. It’s these behaviors thathelp us meet our commitment to customers, and createsa richer, more rewarding workplace experience foreveryone on our team.

OUR�VISION

An inclusive environment built on mutual respect, whereour employees are selected, developed, valued andgiven the opportunity to achieve their full potential. Werecognize that an inclusive environment depends on afirm commitment to attract and retain talent that reflectsthe communities and customers we serve.

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OUR�COMMITMENT�TO�I&D

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DIMENSIONS�OF�I&D

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FOUR�PRIMARY�DIMENSIONS�OF�

INCLUSION�&�DIVERSITY

THE�FOLLOWING�PAGES�ILLUSTRATE�THE�KEY�INITIATIVES

ACROSS�OUR�COMPANY�IN�EACH�OF�THESE�AREAS.

EMPLOYEE CUSTOMERS

COMMUNITY SUPPLIERDIVERSITY

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DIMENSIONS�OF�I&D:�EMPLOYEE

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“to�execute�on�our�business�strategy,

we�need�every�nisource�team�member�to

have�a�seat�at�the�table,�to�be�engaged,

involved�and�know�that�their�ideas�and

opinions�matter.”

JIMMY�STATON

EVP�&�Group�CEO

Columbia�Pipeline�Group

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DIMENSIONS�OF�I&D:

EMPLOYEE

I&D is an essential part of our workforcestrategy–helping us meet our commitment tocustomers and creating richer, more rewardingcareers for everyone on our team.

FOCUS�ON�STRATEGIC

TALENT�MANAGEMENT�Competitive advantage isn’t just about who has the bestproduct or uses the most innovative technologies. AtNiSource, we believe strong teams are also adifferentiating force. That’s why we focus on developinga workforce that broadly reflects the diversity in thecommunities where we live, work and serve.

This strategic talent management approach provides aframework that fits our business strategy, the changingdemographics of the communities we serve, and ourlong-term talent needs. And it’s helped us build a diverseteam across more than a dozen states and hundreds oflocal communities.

REACHING�DIVERSE

CANDIDATES:�ONLINE,�ON

CAMPUS,�IN�YOUR

COMMUNITYWe use a variety of methods to reach out to people whomay be interested in joining the NiSource team. Thoseinclude traditional and online recruiting methods,campus and diversity-focused job fairs andinternship programs, as well as special effortstargeted toward diverse candidates.

One successful example is our partnership withDirectEmployers, a third-party vendor that assists us intargeting job postings to national diversity job sites.Along with recruiting from Historically Black Colleges

NISOURCE�

WORKFORCE�STATS*

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Total Employees: 8, 2796,164 (74%) Men2,115 (24%) Women991 (12%) Minorities

Total Management Team: 1,325190 (14%) Women (Mgr. & Above)51 ( 4%) Minorities (Mgr. & Above)

Total Generations Represented150 ( 2%) Traditionalists (1925-48)4,064 (49%) Baby Boomers (1949-64)2,179 (26%) Generation X (1965-76)1,886 (23%) Millennials (1977-Present)

Total Executive Leadership Team: 108 Men2 Women10 Caucasian

Total Board of Directors: 118 Men3 Women2 Minorities

* As of December 31, 2012

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and Universities (HBCUs), we also leverage other online diversity resources such as VetSuccess,DiversityJobsUSA and many more.

We also partner with national and regional organizationssuch as the National Association of Women inConstruction, ARC Bridges, ethnic-based Chambersof Commerce, as well as industry-specific associationssuch as the American Association of Blacks inEnergy (AABE) and Women’s International Networkof Utility Professionals (WiNUP) to help strengthenthe diversity of our candidate pools and provideNiSource leaders the opportunity to develop personallyand professionally.

HEALTH�&�WELFARE

WORKPLACE�EQUALITYReinforcing the NiSource commitment to I&D, we ensurethat Lesbian, Gay, Bi-Sexual and Transgender (LGBT)individuals are protected from discriminatory practicesand covered by domestic partner benefits. In addition tothese benefits, we provide adoption reimbursementassistance, cover mammograms at 100 percentregardless of diagnosis, and we also offer health carebenefits to our part-time employees.

EMPLOYEE�RESOURCE

GROUPS:�BUILDING

CONNECTIONS,

STRENGTHENING�TEAMSCommon interests and a shared sense of purpose arewhat fuel our employee resource groups (ERG). Open toall employees, these groups are chartered to promoteand advance development of their members. ERGs drivea number of activities that support employees such aswelcoming and mentoring new employees, sponsoringlunch and learns, giving feedback to our business unitleadership and providing community support throughscholarships and volunteerism.

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“GOLD�HAS�PROVIDED�AN

OPPORTUNITY�TO�NETWORK

WITH�THOSE�WITHIN�THE

COMPANY,�WHO�NOT�ONLY

SHARE�THE�SAME

HERITAGE,�BUT�ALSO

SHARE�THE�SAME�PASSION

TO�SEE�OUR�COMPANY

BECOME�MORE�DIVERSE

AND�INCLUSIVE.”

Juan�Rivera

Team�Leader,�Customer

Service�Center

GOLD�President

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Structurally, each group is sponsored by a NiSourcesenior leader who regularly meets as a team to executeCharter goals and objectives. Two of these corporate-sponsored employee resource groups are GeneratingOpportunities for Latinos and Diversity (GOLD) andDeveloping and Advancing Women at NiSource(DAWN).

Launched in 2010, GOLD provides a support system thatemphasizes cultural awareness, outreach andeducation, and professional development. The group isworking to form local chapters and conduct events andvolunteer efforts across the company. The group hasconducted volunteer activities at local service agencies,participated in Mexican and Puerto Rican IndependenceDay parades and sponsored local Special Olympicsactivities.

DAWN focuses on creating an environment thatattracts, retains and promotes women through a widerange of professional development and communityservice activities. DAWN also provides a forum forwomen to discuss shared issues and concerns.

Comprised of nearly 600 female and male NiSource team members, DAWN holds quarterly all-membervirtual meetings and local on-site events designed todevelop and advance women at the company. DAWNhas sponsored outside speakers, hosted professionaldevelopment workshops and led community serviceactivities including Dress for Success at our Columbia Pipeline Group locations in Houston andCharleston, W. Va.

INVOLVING�I&D�COUNCILSCultivating and advancing an inclusive environment forall NiSource employees is the goal of our I&D councils.

Employees on our I&D councils work to promotelearning, raise awareness and guide and providefeedback on company-wide I&D efforts. Our councils

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Developing & Advancing Women at NiSource

DAWN


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MENTORING:�

WOMEN�IN�LEADERSHIP

The�formal�Building�the

NextGen,�Women�in

Leadership�Mentoring

Program�is�designed�to

enhance�NiSource’s

pipeline�of�top�women

leaders�by�helping�attract,

grow,�develop�and�retain

talented,�high-potential

women.

Mentees�are�paired�with�

a�mentor�as�part�of�a�

12-month�program�that

includes�training,�

meetings�and�ongoing

guidance�and�support.�

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help us achieve our business objectives throughinitiatives that encourage diverse perspectives andinclusive behaviors, participating in and sponsoring localactivities and events.

Some recent successes by our councils have includedproviding recommendations on how our gas distributioncompanies can better understand and value ourcustomers' differences, hosting “Intern RecruitmentBlitzes” in Indiana for nearly 80 college students andacknowledging veterans through appreciation programsand donations to the Wounded Warrior Project.

BUILDING�‘THE�NEXT�GEN’Our Annual Building the NextGen Women in Leadership(WIL) Summit brings together more than 150 womenleaders from across the corporation. The summitfeatures nationally known speakers and workshopleaders, as well as professional development sessions,workshops and other opportunities for participants toshare perspectives and discuss challenges ofleadership.

The Annual WIL Summit is part of the larger Building theNextGen initiative that includes regional gatheringsacross our company, the DAWN affinity group open to allemployees, a pilot mentorship program, and focusedemployee professional development opportunities.

EVERY�EMPLOYEE�VOICE�IS

VALUEDI&D is a key component within the annual NiSourceEmployee Engagement Survey, where employees shareopinions about the workplace, and results are analyzedto identify areas for improvement and drive change.

I&D related questions continue to trend upwardpositively, with a 78 percent overall favorable scoreacross all employees, positively trending across 2010,2011 and 2012 surveys. Eighty percent of employees feelthe company’s practices and processes support I&D.

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I&D�COUNCILS�IN�ACTION

Our�Columbia�Gas�of�Ohio

Regional�I&D�Council�

helps�build�employee

understanding�of�the

organizational�diversity

through�their�“What�Do

They�Do�All�Day?”�events�at

our�Columbus�office

locations.�Nearly�20

departments�set�up

interactive�displays�to

showcase�their�teams�and

functions,�allowing

employees�to�build

understanding�and

collaboration.�their

efforts�helped�create

business�value�by�making�a

great�place�to�work�even

better.

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ACADEMY�OF

ENGINEERING:�

OPENING�DOORS

NiSource’s�Academy�of

Engineers�program�in�Ohio

is�helping�develop

tomorrow’s�talent�pool�of

skilled�and�diverse

engineering�and�technical

professionals.

NiSource�partners�with

Columbus�City�Schools

and�a�local�engineering

firm�to�provide�high

school�students�with�paid

internships�in�engineering,

mapping,�construction�and

operations,�with�a�special

focus�on�incorporating

the�interns�into�everyday

company�life.

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HELPING�BUILD

TOMORROW’S�TEAMOur Northern Indiana Public Service Company (NIPSCO)IN-POWER program pairs high school students withNIPSCO employees from 10 weeks in a range of fields,including engineering, communications, humanresources, operations and customer service. The highschool students learn about careers in the energyindustry while earning college credit in general coreclasses from a local college and receiving careercoaching from the Urban League of Northwest Indianaand Gary Life Education Initiative, Inc.

After their first semester of college, IN-POWER studentsare eligible to apply for a summer internship withNIPSCO. The Center for Mentors provides professionaltraining for the NIPSCO employee mentors, who areencouraged to provide ongoing guidance and support tothe students beyond the 10-week shadowing andsupport throughout their high school careers.

EDUCATING�TO�RAISE

AWARENESSCreating an inclusive work environment requires changeat both the organizational and individual level. AtNiSource, we take a blended approach to learningwhich includes computer-based, experiential andinstructor-led education. During 2012, more than 5,400 hours of focused I&D education and training wascompleted by our employees. Instructor-led programssuch as Building a House of Inclusion challengeassumptions about differences and focus learning onapplying inclusive work behaviors. In Mixing It Up: TheChanging Landscape of Work, participants exploredifference across four generations in the workplace anddevelop new skills to leverage generational differences.

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INTRODUCE�A�GIRL�TO�ENGINEERING�DAY

Female�NiSource�technical�and�operations�employees�take�part�in

Rosie’s�Girls,�a�camp�that�helps�middle�school�girls�gain�confidence

while�learning�about�a�wide�range�of�educational�and�career�options.

our�NiSource�team�members�brought�equipment�and�tools�and�talked

to�the�girls�about�how�THEY�have�successfully�taken�on�roles

traditionally�held�by��men.�Women�engineers�within�our�NiSource

Columbia�Pipeline�Group�spend�the�day�energizing�and�preparing

eighth�grade�girls�to�pursue�STEM-related�careers�during�Introduce

a�Girl�to�Engineering�Day.�Serving�as�mentors�for�a�day�to�nearly�80

girls,�our�employees�participated�in�team�building�activities,�round

table�discussions,�a�networking�luncheon�and�a�panel�discussion.

Photo�features�Columbia�Gas�of�Ohio�Engineer,�Tiffany�Woodyard�and

her�two�daughters

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DIMENSIONS�OF�I&D:�CUSTOMER

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“Strong�relationships�are�built�on

mutual�respect,�understanding�and

trust.�These�are�hallmarks�of�a�diverse

and�inclusive�culture,�and�essential�to

our�commitment�to�understand�our

customers’�expectations�while

delivering�energy�services�and

solutions�our�customers�need.”

Joe�Hamrock

EVP�&�Group�CEO,

NiSource�Gas�Distribution

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CUSTOMERS

Create and deliver customer programs andservices reflective of the unique and diverse needsof the communities we serve.

To succeed in the marketplace, we have to stayattuned to our customers and aware of thedifferences in their needs and ability to dobusiness with us. Understanding and valuing thosedifferences is important as we advance ourbusiness strategy and strive to improve as acompany.

ENHANCING�THE�

CUSTOMER�EXPERIENCENiSource has made a significant, long-term commitmentto modernizing our energy infrastructure; helping ourcustomers save energy and money; and making itconvenient and easy for people to do business with us.

One key area of focus is improving our online customerservice technology. To help enhance our online businesschannels, we engage customers in focus groups toprovide feedback on proposed improvements orchanges. That’s especially true of our newest mobilecustomer service channels, allowing customers toaccess information, make payments, and interact withus via smart phones, tablets and other mobile devices.As we developed these new capabilities, we engagedcustomers at concept, using survey feedback from ourcustomers; during design with usability testing tovalidate our initial design concepts; and duringdeployment to see how customers are adopting the newchannel.

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NIPSCO’s�Eddie�Melton�and

Rick�Calinski�present�

Rev.�Darnell�Johnson�with

a�$70,000�check�to�help

residents�of�Northwest

Indiana�stay�warm�and�

save�money.

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“In�light�of�the�economic

challenges�that�our

country�is�undergoing,�to

have�any�corporate

partner�still�showing

themselves�to�be�a

stakeholder�is�to�be

commended.�NIPSCO�has

shown�itself�to�still�be�a

partner�and�concerned

about�the�issues�in�the

community.”

Rev.�Darnell�Johnson

Founder,�Holistic

Community�Coalition

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Our business units also have developed and introduceda wide range of multilingual communication tools andinformation pieces tailored to the unique heritage andcultural backgrounds across our service areas. We alsohave developed new methods to alert our meter readersor customer service teams if a customer is blind, hard ofhearing or elderly.

HELPING�CUSTOMERS

MANAGE�ENERGY�USEOne way that we’re addressing the unique needs of ourcustomers is by helping them use less energy, whichsaves money on utility bills, reduces strain on energyinfrastructure, preserves natural resources and benefitsthe environment. During 2012, we continued to developand expand our portfolio of energy-efficiency programs.

Our effort to help customers manage energy use oftenextends to traditionally underserved communities. Forexample, our Indiana utility recently provided a $70,000grant to the Holistic Community Coalition's WorkforceDevelopment Weatherization Initiative. NIPSCO’s granthelped provide “do-it-yourself” energy conservation andeducation workshops for low-income seniors anddisabled residents in East Chicago, Gary and Hammond.The grant also helped in-home installations forweatherizing homes. The partnership assists more than200 residents a year.

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NIPSCO�Customer�Service

Representatives�Keenan

Hyatt�and�Jennifer

Alexander.

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UNDERSTANDING�

OUR�CUSTOMERSUnderstanding and valuing our customers’ differencesthrough improving company processes, policies andpractices is the focus of the NiSource Gas Distributioncompanies.

A customer demographic study identified Spanish,Portuguese and French as the preferred language withinour Columbia Gas of Massachusetts (CMA) serviceterritory. Recognizing the opportunity to increasecustomer satisfaction and awareness of our services,CMA developed a series of tools and services to assistnon-English speaking customers. These tools includedmulti-lingual door hangers used upon missing a routineor scheduled appointment and brochures that highlightservices available in the customer’s service area.

Field-based customer service representatives are nowable to access a Language Line and carry at-a-glancecards that feature common phrases in three languagesto reduce language barriers when assisting non-Englishspeaking customers. Managing customer relationshipsis a key approach to improved customer communicationat Columbia Gas of Kentucky (CKY). In response to agrowing number of diverse customers within our CKYservice area, English to Spanish door knob cards areused as a key approach to improve customercommunication. Meter readers and other field personneluse the cards to make customers aware of accessrequired to respond to service requests.

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Columbia�Gas�of�Kentucky

Service�Door�Knob�Cards

in�English�and�Spanish

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DIMENSIONS�OF�I&D:�COMMUNITY

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“For�more�than�a�century,�we’ve�been�an

integral�part�of�the�communities�we

serve.�From�investing�in�our

infrastructure�to�supporting�neighbors

in�times�of�need,�we’re�proud�partners�in

strengthening�the�places�our

customers�and�employees�call�home.”

Jim�Stanley

EVP�&�Group�CEO,

NIPSCO

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COMMUNITY

Engage community partners and stakeholders in acollaborative way, creating new opportunities forshared benefits and growth.

Volunteerism and philanthropic giving areimportant to our company and our team, providingopportunities to interact, understand and supportthe local community.

A�COLLABORATIVE

APPROACHAt NiSource, our commitment to diversity extendsbeyond our own organization to our community.Volunteerism and philanthropic giving are important tothe communities we serve, the company, and ouremployees. Community service provides opportunitiesfor NiSource to better interact with, understand andsupport local communities. This helps to support theneeds of the people in the communities we serve. It alsoallows NiSource to become actively involved in whatmatters.

OPPORTUNITIES�TO�

DO�GOOD�WORKIn Indiana, we partnered with The Arc of NorthwestIndiana and The Easter Seals Arc-Fort Wayne to employindividuals with physical or intellectual disabilities on along-term project involving scanning and indexingrecords associated with a vital compliance effort.

In Virginia, the Greater Richmond Arc and Columbia Gasof Virginia have a similar three-year partnership toprovide meaningful work for physically and intellectuallydisabled individuals through WarmWise, CGV’s energy

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BOYS�&�GIRLS�CLUBS�OF

NORTHWEST�INDIANA

NIPSCO�pledged�$1�million

to�help�turn�a�former

school�into�a�new�center

for�the�Boys�&�Girls�Clubs

of�Northwest�Indiana.�One

of�the�largest�corporate

donations�in�Boys�&�Girls

Clubs�of�Northwest

Indiana�history,�the�funds

will�be�used�to�rebuild�the

former�Tolleston

Junior/High�School�into�a

state-of-the-art�center.

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efficiency program. Arc employees package and mailfree energy efficiency materials to customers and otherstakeholders in support of our public awareness efforts.In both cases, these individuals bring solid skills to thejob, and have greatly benefitted our company.

DONATING�MONEY�AND�TIMEAs part of our philanthropic efforts, we provide morethan $5 million per year in charitable donations to local,regional and national non-profit organization spanningour service areas. Our employees play a critical role inthose philanthropic efforts donating significant time andmoney to causes and organizations they believe in.

We support and encourage this involvement through ourDollars for Doers program, which contributes up to$500 per employee to an organization in return forvolunteer time. In 2012, through this program, wecontributed over $100,000 in charitable donations tolocal, regional and national non-profit organizations.These contributions spanned our service area andengaged hundreds of employees and communitystakeholders.

TOUCHING�LIVES,�

IMPROVING�COMMUNITIESGoing beyond our walls with a pay-it-forward philosophyis how we fulfill the purpose of I&D in our communities.We partner with non-profit organizations and charitablecauses as a way to directly invest in the lives of ourcommunity members throughout our service territory.

In 2012, we were a company sponsor of the Ohio-basedUNCF Walk for Education, which raises money toprovide scholarships to low-income African Americanstudents seeking higher education. Over the past fewyears, NiSource has donated more than $80,000 to theUNCF through the Walk for Education, employee pledgesand raffles, as well as funds from the Dollars for Doersprogram. NiSource Columbia Pipeline Group employees

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Columbia�Pipeline�Group

employees�participated�in

the�Girls�Night�Out�event

in�Charleston,�W.�Va.�

to�raise�money�for�the

YWCA�Resolve�Shelter�

and�Hope�House.

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Columbia�Gas�of�Virginia

President�Carl�Levander

presents�check�to�Patricia

Sigle�of�U.S.�Women’s

Museum�at�Fort�Lee

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regularly volunteer and support YWCA’s “Girls NightOut” in Charleston, W.Va. With a mission of women’sempowerment and raising awareness to eliminatedomestic violence, the funds go to provide counseling, food and other necessities to women and families inneed of relief from domestic abuse at the YWCA ResolveShelter and Hope House.

Employees at NiSource Columbia Gas of Pennsylvaniaand Columbia Gas of Maryland took part in the UnitedWay Day of Caring events. Volunteers visited theProvidence Care Center in Beaver Falls, Pa. and spenttime caring for elderly residents. Clean up projects andbeautification projects occurred through Maryland.Combined, more than 300 employees participated andraised nearly $100,000 in contributions through thecompany’s 2012 United Way campaign.

NIPSCO’s Hammond I&D team held a clothing andtoiletry drive for the Haven House domestic violenceshelter for women in Hammond, Ind. NIPSCO employeesdonated more than $5,500 in clothing, toiletries andmonetary gifts to the shelter.

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DIMENSIONS�OF�I&D:�SUPPLIER�DIVERSITY

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“DIVERSE�SUPPLIERS�AFFORD�US�THE

ABILITY�TO�TAP�INTO�A�WEALTH�OF

INNOVATIVE�IDEAS�AND�PROCESSES,�GAIN

COMPETITIVE�ADVANTAGE�AND�INVEST�IN

OUR�LOCAL�COMMUNITIES.”

Violet�Sistovaris

Chief�Information�Officer

NiSource

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SUPPLIER

DIVERSITY

Build utility best-in-class supplier diversity andcommunity economic inclusion programs.

Offering diverse suppliers an opportunity tosucceed affirms our commitment to I&D, supportsour business objectives and benefits theeconomies of the communities we serve.

BUILDING�ECONOMIC

INCLUSION�WITH�DIVERSE

SUPPLIERSCentral to our commitment to I&D is a fully integratedand operationally supported Supplier Diversity initiative.Diverse suppliers play a key role in local economics andare critical to job development, neighborhoodstabilization and economic growth throughout ourservice territory. Investing in these businesses not onlyreflects our core values, but positions us to respond tothe growing diversity in the communities we serve.

In 2009, NiSource launched the Supplier DiversityProgram establishing a baseline spend of $13 millionwith minority, women, veteran, disabled-ownedbusinesses and historically underutilized business zones.A year later, our diverse spend increased threefold. Our2011 direct spend with diverse suppliers exceeded $60 million, a 55 percent increase from 2010. In 2012,NiSource Supply Chain successfully met the directspend goal of $62.5 million, up nearly 4 percent from theprior year. Setting joint diverse spend goals throughoutour company will continue to strengthen the program inthe future.

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“FROM�THE�FIRST�MAP

CONVERSION�PROJECT�IN�2005

TO�THE�CURRENT�ENTERPRISE

CONTENT�MANAGEMENT

SOLUTION/METER/TAP�CARDS,

3SG�HAS�BEEN�ABLE�TO

ESTABLISH�A�SUCCESSFUL

BUSINESS�RELATIONSHIP�WITH

NISOURCE.�

PLEASED�WITH�OUR

PERFORMANCE,�DELIVERY�and

OUR�“RAVING�FAN”�PHILOSOPHY,

NISOURCE�SHARED�OUR

COLLABORATIVE�SUCCESS�STORY

WITH�ADVOCACY�ORGANIZATIONS

SUCH�AS�OHIO�GATE,�EDISON

ELECTRIC�INSTITUTE,�AND�OTHER

UTILITY�COMPANIES�WHICH�IN

TURN�HAS�HELPED�CREATE�NEW

OPPORTUNITIES�AND�BUILD�NEW

RELATIONSHIPS�WITHIN�THE

INDUSTRY.”

Nanda�Nair

3SG�President

NiSource�Diverse�Supplier

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IDENTIFYING�NEW�SUPPLIERSWe continue to reach out to diverse communities toidentify and qualify more vendors in technical andnontraditional areas. In 2012, 53 new diverse supplierswere identified and approved. We remain diligent withencouraging prime contractors to identify diversesuppliers as subcontractors for work.

In an effort to create greater awareness and providetools and resources to qualify diverse suppliers forcontractual opportunities, we launched a series of roadshow presentations for our employees who serve asdecision makers in the supplier selection process.

DIVERSE�SUPPLIER

OUTREACHAffirming our commitment to supplier diversity andcommunity economic inclusion, NiSource was one of sixutilities partnering with advocacy organizations and affinity groups in the first-ever Ohio-Based UtilityInvitational in Dayton, Ohio.

Sponsored by the Ohio GATE (Gaining Access ThroughEconomics with Ohio Utilities) and Indiana EnergyAssociation (IEA) Supplier Diversity Committee, theinvitational provided an opportunity for diverse suppliersto learn how to navigate through the utilities’procurement and bidding processes and explore thecurrent equipment and service needs.

Ohio GATE President and NiSource Supplier DiversityManager Vickie Davanzo helped design the event toforge working relationships that promote and enhancebusiness opportunities between diverse business andregulated utilities in Ohio and Indiana. At the event,nearly a dozen NiSource employees met with more than80 suppliers throughout the day. “Collaboration with Ohio GATE and IEA underscoresNiSource’s commitment to coach and develop suppliersto enhance their value to the corporation and increasetheir economic value in the community,” Davanzo noted.“It’s a win-win formula.”

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“OUTREACH�IS�A�MAJOR

TENANT�IN�OUR�MISSION�TO

IDENTIFY,�PROMOTE�AND

INCREASE�UTILIZATION�OF

DIVERSE�AND�LOCAL

SUPPLIERS.�WE�WANT�TO

PROVIDE�A�CONDUIT�TO

ESTABLISH�NEW

CONNECTIONS�AND�BUILD�A

PIPELINE�OF�QUALIFIED

SUPPLIERS�THAT�HAVE

UTILITY�EXPERIENCE�AND

ARE�READY�TO�COMPETE

FOR�UPCOMING

OPPORTUNITIES.”

Vickie�Davanzo

NiSource�Supplier

Diversity�Manager

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NISOURCE�DIVERSE�

SUPPLIER�SPEND

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2009 $12.5M2010 $39.0M2011 $60.3M2012 $75.7M

A�special�note�of�thanks�to�our�NiSource�leadership�team�for�their

support�and�commitment�to�this�journey.�Also,�to�Senior�I&D�Consultant

Deloras�Jones and�Corporate�Communications�Specialist�Tamika�Vinson

for�their�work�on�this�publication.

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•••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••

OUR�JOURNEY�CONTINUES

We�are�excited�about�the�traction�we�have�gained�through�our

I&D�journey�over�the�last�year.�However,�we�know�that�to�truly

transform�our�organization,�it�will�take�an�unrelenting

commitment�that�requires�strong�leadership�and�actively

engaged�employees.�As�our�customers,�communities�and

suppliers�continue�to�evolve,�there�will�always�be�an

opportunity�to�do�more.

Doing�more�means�aligning�ourselves�with�research�and

community�partners�who�ensure�we�always�put�our�best�foot

forward�in�creating�an�inclusive�culture�where�everyone�can

succeed.�NiSource�is�a�member�of�Catalyst,�a�leading

organization�on�gender�research,�and�subscriber�of�Diversity

Inc.,�the�leading�source�of�information�on�diversity�management.

Our�goal�is�to�be�progressive,�staying�continually�abreast�of

diversity�best�practices�as�we�shape�our�journey.

We�understand�that�maintaining�I&D�as�a�top�business�imperative

will�take�time,�and�there’s�a�lot�more�work�to�be�done.�Future-

focused�initiatives�include�expanded�educational�opportunities,

enhanced�communications�efforts,�continuation�of�annual�I&D

summits�throughout�our�business�units�and�continued�focus�on

the�NiSource�I&D�Scorecard.

With�much�of�the�groundwork�laid,�we�are�well�on�our�way�to

building�an�inclusive�culture�today�and�diverse�pipeline�for�the

future.

NISOURCE INC.801 East 86th AvenueMerrillville, IN 46410www.nisource.com

nisource inclusion and diversity report 2012

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