Climate Change Data

Environmental Metrics

ESG Focus Areas

• Community
• Employees
• Environment
• Business Practices

Environmental Achievements

• Reduced electricity use across Greensboro campus by 7.11% since 2014
• Reduced Scope 2 greenhouse gas emissions intensity per employee by 6.57% since 2014
• Achieved U.S. EPA ENERGY STAR rating for 73% of eligible buildings
• Ranked in the top third of the 2016 Newsweek Green Ranking

Social Achievements

• Employees donated over $1 million to United Way
• Lincoln Financial matched employee gifts to nonprofits totaling $1,024,784
• Lincoln Financial Foundation distributed $10 million in corporate charitable contributions
• Achieved a perfect score and named “Best Places to Work for LGBT Equality” in the 2016 Human Rights Campaign Corporate Equality Index
• Achieved a perfect score and named “Best Place to Work” by the 2016 Disability Equality Index

Governance Achievements

• Listed on the FTSE4Good Index for 11 consecutive years
• Listed on the Dow Jones Sustainability Index North America in 2016
• Received the 2016 “Insurance Risk Management Team of the Year” award

Climate Goals & Targets

Environmental Challenges

• Potential risks to business operations and profitability from severe weather events (climate change)
• Managing mortality, morbidity, longevity, policyholder behavior and capital markets risk

Mitigation Strategies

• Business continuity and disaster recovery plans for critical business units
• Risk assessments conducted at sites with exposure to natural risks
• Reinsuring a significant amount of mortality risk on individual life insurance contracts
• Sophisticated in-house risk management computing infrastructure, trading strategies and risk metrics

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Severe weather events

Reporting Standards

Frameworks Used: Greenhouse Gas Protocol

Awards & Recognition

• 2016 Newsweek Green Rankings (Top Third)
• 2016 “Insurance Risk Management Team of the Year” award
• Human Rights Campaign’s Corporate Equality Index (Perfect Score)
• Disability Equality Index (Perfect Score)

Environmental Metrics

ESG Focus Areas

• Community Building
• Employee Empowerment and Engagement
• Environmental Stewardship
• Responsible Business Practices

Environmental Achievements

• Reduced electricity usage across Greensboro campus by 9.04% since 2014
• Reduced Scope 2 greenhouse gas emissions intensity per employee by 4.76% since 2014
• Achieved U.S. EPA ENERGY STAR rating for 100% of eligible buildings

Social Achievements

• Employee donations to United Way surpassed $1 million for the fifth consecutive year
• Received perfect scores and Best Places to Work awards in the Human Rights Campaign Corporate Equality Index and the Disability Equality Index
• Launched a new business resource group for veterans

Governance Achievements

• CEO signed the CEO Action for Diversity Pledge
• Named to the Dow Jones Sustainability Index (DJSI) North America for the second consecutive year

Climate Goals & Targets

Environmental Challenges

• Reducing energy use and related carbon emissions
• Improving building performance
• Addressing the company’s climate impacts

Mitigation Strategies

• Implemented a goal to reduce electricity use by 10% across Greensboro campus by 2020
• Achieved ENERGY STAR rating for 100% of Lincoln Financial-owned and -operated buildings by 2017
• Reduced Scope 2 greenhouse gas emissions intensity per employee by 4.76% since 2014

Supply Chain Management

Responsible Procurement

• Commitment to diversity in supply chain

Climate-Related Risks & Opportunities

Physical Risks

• Severe weather events

Reporting Standards

Frameworks Used: Greenhouse Gas Protocol

Certifications: ENERGY STAR

Third-party Assurance: Trucost

Awards & Recognition

• Celent Model Insurer Award
• Forbes 2017 Best Large Employers
• Insurance Risk Management Team of the Year

Environmental Metrics

ESG Focus Areas

• Education
• Human Services
• Financial Wellness
• Environmental Stewardship
• Employee Well-being
• Diversity and Inclusion
• Ethical Business Practices

Environmental Achievements

• Achieved a 27.42% reduction in greenhouse gas emissions intensity per employee from purchased electricity (Scope 2) against a 2014 baseline — exceeding our 2020 target of 20%
• Reduced electricity consumption by 10.90% at our Omaha, NE, location — surpassing our goal of 8% reduction by 2022 compared to a 2014 baseline
• Reduced electricity consumption by 23.11% at our Greensboro, NC, location since 2014
• Saved 8,175,556 pages of paper – equivalent of nearly 1,000 trees

Social Achievements

• Contributions to nonprofit education organizations helped more than 575,000 children and teenagers
• Employees contributed more than $1 million to United Way for the seventh consecutive year
• Launched Autism2Work program to hire a more neurodiverse workforce
• Second Women’s Leadership Summit reinforced dedication to developing and supporting women (61% of workforce, 50% of management positions, 27% of board of directors)
• 2.2 million services helped people develop vital skills and improve their quality of life through Foundation grants

Governance Achievements

• 100% of employees trained in our Code of Conduct and related policies
• Established an 85% Balanced-Slate participation rate for externally filled positions (at least one woman and one person of color among a final slate of five candidates)

Climate Goals & Targets

Environmental Challenges

• Frequent power outages in Greensboro, double the normal snowfall in Omaha, and construction and landscaping projects in Ft. Wayne impacting Scope 1 emissions
• Construction waste from departmental clean outs of equipment in Concord impacting landfill waste

Mitigation Strategies

• Business continuity and disaster recovery plans for critical business units to mitigate severe weather impacts
• Risk assessments conducted at specific sites with greater exposure to natural risks
• Reinsurance to mitigate financial risks associated with adverse mortality or morbidity events
• Comprehensive, company-wide Office Operations and Business Print Policy to reduce paper usage

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Severe weather events

Reporting Standards

Frameworks Used: Greenhouse Gas Protocol

Third-party Assurance: Trucost

Sustainable Products & Innovation

• YourPathSM alternative target date portfolio
• Lincoln WellnessPATH® financial wellness tool

Awards & Recognition

• Forbes 2019 Best Employers for Diversity
• Forbes 2019 Best Employers for Women
• Forbes 2019 Best Large Employers
• Disability Equality Index Best Place to Work (100% score)
• Best Place to Work for LGBTQ Equality (100% score)
• Dow Jones Sustainability Index (DJSI) North America
• FTSE4Good Index

Environmental Metrics

ESG Focus Areas

• Community Support
• Employee Well-being
• Racial Justice and Equity
• Environmental Sustainability
• Ethical Business Practices
• Diversity and Inclusion

Environmental Achievements

• Reduced Scope 2 greenhouse gas emissions intensity per employee by 45% compared to 2014 baseline.
• Reduced electricity consumption by 34% and 32% at Greensboro, NC, and Omaha, NE, locations respectively, since 2014.
• Reduced paper purchase by 43%, saving 37,000 reams of paper.

Social Achievements

• Donated $10 million to nonprofit partners, including $2 million for COVID-19 relief efforts.
• Employees contributed over $765,000 to United Way.
• Implemented a racial justice action plan with a $1 million contribution to The HistoryMakers.
• Launched weekly "Feedback Fridays" employee surveys.
• Provided premium pay to essential employees during the pandemic.
• Offered flexible working arrangements, emergency leave, mental health resources, and financial counseling to employees.

Governance Achievements

• 100% of employees trained in the Code of Conduct.
• Established a Chairman’s Diversity Committee.
• Embedded diversity and inclusion goal as a performance measure for long-term incentive compensation for senior leaders.
• Developed and implemented a Sustainability Management System (SMS).

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting operations, employees, customers, and communities.
• Rising food insecurity and housing crises.
• Racial injustice and inequality.
• Potential climate change risks to business operations and profitability.

Mitigation Strategies

• Increased contributions to food banks, pantries, and emergency housing.
• Implemented a racial justice action plan.
• Provided employees with flexible work arrangements, emergency leave, and mental health resources.
• Developed a dedicated clinical team to handle COVID-19 claims.
• Created a dedicated COVID-19 resource page on the website.
• Set new GHG reduction target to reduce Scope 1 and 2 emissions by 25% from 2019 baseline by 2025.
• Developed business continuity and disaster recovery plans for critical business units.

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Severe weather events

Reporting Standards

Frameworks Used: CDP, Task Force for Climate-related Financial Disclosure (TCFD), Sustainability Accounting Standards Board (SASB)

Third-party Assurance: Trucost

UN Sustainable Development Goals

• SDG 2: Zero Hunger
• SDG 4: Quality Education
• SDG 8: Decent Work and Economic Growth

Support for nonprofits focused on human services, education, and financial wellness.

Awards & Recognition

• Best Place to Work for Disability Inclusion
• Best Place to Work for LGBTQ Equality
• Diversity Lab Mansfield Certification
• Forbes 2020 Best Employers for Women
• Dow Jones Sustainability Index (DJSI) North America
• FTSE4Good Index
• Newsweek America’s Most Responsible Companies

Environmental Metrics

ESG Focus Areas

• Community
• Environment
• Employees
• Responsible Business

Environmental Achievements

• Reduced Scope 1 and 2 greenhouse gas emissions by 38% from a 2019 baseline.
• Achieved a 30% reduction in paper purchase through increased use of digital documents.

Social Achievements

• Increased minority officer representation by 20%.
• 70% of external hires were female and 44% were minorities.
• Contributed $9.5 million to nonprofit partners, providing services for 1.2 million people.
• Expanded parental leave policy to ten weeks.
• Launched several employee well-being initiatives, including a new digital tool for mindfulness and resilience.

Governance Achievements

• Delivered Code of Conduct training to all employees.
• Tied leadership compensation to DEI objectives.
• Implemented a robust enterprise risk management system, including assessment of climate-related risks.

Climate Goals & Targets

Environmental Challenges

• The evolving impact of the pandemic on work arrangements.
• Managing climate change risks to business operations and profitability.
• Transition risks associated with a low-carbon economy.

Mitigation Strategies

• Developed a new hybrid work model.
• Implemented business continuity and disaster recovery plans for critical business units.
• Actively manage and monitor investment risks related to climate change.
• Incorporated ESG considerations into investment decisions.

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Severe weather events

Transition Risks

• Policy changes, reputation impacts, market shifts, technological changes

Reporting Standards

Frameworks Used: Greenhouse Gas Protocol, Task Force on Climate-related Financial Disclosures (TCFD), Sustainability Accounting Standards Board (SASB)

Third-party Assurance: Trucost (for 2020 GHG emissions data)

Sustainable Products & Innovation

• Outcome-based fund strategies within variable annuity products.
• Hybrid variable universal life insurance policy with long-term care rider.
• Lincoln PathBuilder Income® group variable annuity contracts.

Awards & Recognition

• Best Place to Work for Disability Inclusion (100% score on Disability Equality Index®)
• Best Place to Work for LGBTQ Equality (100% score on Corporate Equality Index)
• Diversity Lab Mansfield Certification
• FTSE4Good Index
• Newsweek: America’s Most Responsible Companies
• Dow Jones Sustainability Index (DJSI) North America
• Two 2021 Ragan’s Workplace Wellness Awards

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity, Equity and Inclusion
• Community Engagement
• Employee Experience
• Responsible Investing
• Governance

Environmental Achievements

• 26% reduction of Scope 1 and 2 emissions
• 21% reduction in paper purchase
• On track to reach 2025 target of reducing Scope 1 and 2 emissions by 25% compared to 2019

Social Achievements

• Reached 1 million people through work with 285 organizations
• Charitable contributions exceeded $9.2 million
• 76% of K-12 students in academic enrichment programs improved proficiency on standardized assessments
• 85% of students in college access programs attained college readiness skills
• 90% of financial wellness program participants gained core personal finance concepts
• 78% of skill-based program participants received credentials or achieved meaningful employment
• Over 3,000 employees volunteered over 10,000 hours
• Launched UNCF Lincoln Scholars program
• Contributed over $1.5 million through United Way
• Supported Eagles Autism Challenge

Governance Achievements

• Scored 100% on the 2022 Corporate Equality Index for the seventh consecutive year
• Received a perfect 100% score on the Disability Equality Index® for the seventh consecutive year
• Named to Dow Jones Sustainability Index for seventh consecutive year
• Recognized by Ethisphere as one of the 2022 World’s Most Ethical Companies®
• Mandatory Code of Conduct training for all employees
• ESG factors integrated into investment decisions

Climate Goals & Targets

Environmental Challenges

• Scope 3 emissions reporting complexity
• Increased emissions due to return to office and increased travel

Mitigation Strategies

• Continuous improvement of Scope 3 reporting
• Focus on reducing GHG emissions in line with Paris Agreement
• Digital-first model in marketing to reduce paper use
• Encouraging suppliers to pursue energy efficiency and reduce waste

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Code of Conduct
• ESG questions incorporated into Supplier Relationship Management (SRM) Plans

Climate-Related Risks & Opportunities

Physical Risks

• Severe weather events

Transition Risks

• Carbon pricing
• Policy changes
• Market shifts
• Emerging technologies

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Greenhouse Gas Protocol, TCFD (under consideration), CDP

Certifications: Null

Third-party Assurance: LRQA (Limited Assurance for Scope 1, 2, and 3 Category 8)

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Newsweek — America’s Most Responsible Companies 2022
• Bloomberg Gender-Equality Index 2022
• Forbes — List of Best Employers for Women
• Newsweek — Most Trustworthy Companies 2022
• Ethisphere: World’s Most Ethical Companies 2022
• Philadelphia Business Journal Healthiest Employer 2022 Award