Diverse Spend

Business Terms

Definition

The total dollar value of purchases made from certified diverse suppliers.

More Information

Corporations track diverse spend to measure supplier diversity program performance. Spend is typically categorized by certification type (MBE, WBE, VBE, etc.) and reported as a percentage of total addressable spend. Many companies set diverse spend goals and report results publicly in sustainability or diversity reports.

Example

A Fortune 500 company reports $2 billion in diverse spend, representing 15% of their total U.S. procurement.