Climate Change Data

Environmental Metrics

ESG Focus Areas

• Customers
• People
• Communities
• Shareholders

Environmental Achievements

• Reduced VOC emissions by 424 pounds by migrating the CSR report online and printing the Summary Annual Report on 100% post-consumer recycled paper at a sustainable printing facility.
• Allstate’s irrigation system at the headquarters campus is 100% self-sustained.

Social Achievements

• Launched a consumer education campaign to raise awareness about the role of the insurance industry in America.
• Settled more than 98% of claims resulting from Hurricane Katrina and Rita.
• Made contributions to the Gulf Coast region totaling nearly $6.5 million through employee, corporate and Allstate Foundation donations.
• Increased customer loyalty score in 2006.
• Channeled $195.7 million to 2,110 women- and minority-owned businesses.

Governance Achievements

• Established a Corporate Ethics and Compliance Office.
• Conducted employee focus groups to assess the company's ethical culture.
• Introduced a new ethics and integrity training course.
• Implemented a Voluntary Termination Offer (VTO) program for employees.

Climate Goals & Targets

Environmental Challenges

• Mega-catastrophes presenting serious risks for consumers, insurers, and the economy.
• Decreasing availability of homeowner insurance in catastrophe-prone areas.
• The need to balance protecting customers in high-risk areas with protecting the remaining insured households.

Mitigation Strategies

• Established the ProtectingAmerica.org coalition to address mega-catastrophes.
• Invested in new system technology, renewed emphasis on Retiree-Catastrophe Program, expanded local radio advertisement programs, and gave claim adjusters greater flexibility to improve catastrophe response.
• Purchased more than $800 million in reinsurance to offset catastrophe risk.
• Revised some homeowner insurance policies and decided not to renew others in high-risk areas, helping affected customers find coverage through other carriers.
• Actively working on public/private legislative solutions to make insurance affordable in catastrophe-prone areas.

Supply Chain Management

Responsible Procurement

• Supplier diversity program actively seeking out diverse suppliers.

Climate-Related Risks & Opportunities

Physical Risks

• Natural catastrophes (hurricanes)

Awards & Recognition

• Most shareholder-friendly company in the "insurance/non-life" sector

Environmental Metrics

ESG Focus Areas

• Community
• Environment
• People

Environmental Achievements

• 100% of the company’s electricity usage generated through renewable sources, resulting in a £15,000 annual saving from reduced climate change levy.
• Successful Bike to Work scheme, car share website, interest-free travel loans, bus ticket salary sacrifice scheme, and work-from-home policy to reduce fossil fuel consumption.

Social Achievements

• £84,840.78 raised for various charities in 2011.
• Over 4,000 hours donated through volunteering (XtheTXT, Time to Read, Time to Compute, Special Olympics, Prince’s Trust).
• Numerous awards received for employee engagement and family-friendly policies (e.g., Family Friendly Employer of Choice Award).

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Concern that the same charities were being selected year after year for donations.

Mitigation Strategies

• Built leeway into the charity selection process to allow for more local and community-related requests.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Investors in People Gold Status

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• 2012 Translink Corporate Challenge Winner
• 2012 Belfast Telegraph Responsible Company of the Year
• 2011 Responsible Company of the Year (Business in the Community)
• 2011 Irish News Best Place to Work Award
• 2011 Family Friendly Employer of Choice Award
• 2012 Business in the Community Ways2Work Award
• 2011 Business in the Community Environmental Improvement Award (Highly Commended)
• 2010 Business in the Community’s ARENA Network Platinum Environment Award
• 2008 Green Dragon Environmental Standard Level 2

Environmental Metrics

ESG Focus Areas

• Environment
• Communities
• Employees
• Supply Chain
• Governance
• Products & Services

Environmental Achievements

• Reduced energy use in owned facilities by 19.39% compared to 2007 baseline (10.87% reduction from 2012)
• Reduced carbon footprint by 6.3% versus 2012 and nearly 27% since 2007
• Reduced customer paper use by 33% since 2009 baseline
• Reduced employee paper use by 31% since 2010 baseline

Social Achievements

• Achieved a favorable response from at least 75 percent of employees on 10 of 11 key measures of satisfaction
• Increased agency owner satisfaction with heightened support resulting in a 20-point increase in their satisfaction
• Engaged more than 1.2 million teens in Teen Safe Driving programs
• Financially empowered more than 171,000 domestic violence survivors

Governance Achievements

• Included on the DiversityInc Top 50 Companies for Diversity® list for the third year in a row
• Made great progress toward supplier diversity goal, spending 8.3% of Allstate’s total annual procurement with diverse suppliers

Climate Goals & Targets

Environmental Challenges

• Stakeholders asked Allstate to take a stronger stand on climate change
• Stakeholders requested Allstate to incorporate additional impact measures like human rights in its supply chain

Mitigation Strategies

• Allstate will take that commitment one step further with a formal climate change policy statement
• Allstate’s procurement team is planning to embed sustainability within all of their internal and external processes

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct
• Sustainability considerations during sourcing
• Environmental safety language in contracts for certain vendors

Climate-Related Risks & Opportunities

Physical Risks

• Severe weather events

Transition Risks

• Regulatory changes

Reporting Standards

Frameworks Used: GRI G4

Sustainable Products & Innovation

• eBill, ePolicy, eSignature

Awards & Recognition

• DiversityInc Top 50 Companies for Diversity®
• Working Mother 100 Best Companies
• National Safety Council’s Flame of Life Award

Environmental Metrics

ESG Focus Areas

• Climate strategy
• Advancing consumer disaster resiliency
• Customer-centric & responsible products
• Technology & digitization
• Privacy & information security
• Employee well-being & safety
• Employment relations
• Inclusive diversity
• Organizational culture
• Public Policy
• Responsible investing
• Community
• Talent recruitment
• Training & education

Environmental Achievements

• Reduced energy use beyond original targets and significantly reduced greenhouse gas emissions.
• Converted 50% of automobile fleet to hybrid vehicles.

Social Achievements

• Increased minimum compensation.
• Drove skills-based hiring without degree requirements.
• Maintained inclusive diversity index scores in mid-80’s.
• Established a dedicated impact portfolio for investments.
• Increased trading with MWVBEs more than 10-fold.
• Tripled annual spend with diverse suppliers to $4.7 billion.
• Invested more than $44 million and over 92,000 volunteer hours to support communities.

Governance Achievements

• Enhanced governance policies to align with best practices.
• Completed thorough independent privacy program maturity assessments.

Climate Goals & Targets

Environmental Challenges

• Severe weather and rising precipitation levels impacting loss trends for auto and homeowners insurance.
• Climate-related risks in investment portfolio.
• Evolving property construction trends and changing transportation system creating risks and opportunities.
• Potential changes in financial disclosure requirements increasing financial reporting risk.
• Regulatory compliance, model accuracy and business continuity.
• High stakeholder expectations for managing climate change response.

Mitigation Strategies

• Managing climate risks within integrated Enterprise Risk and Return Management (ERRM) Program.
• Evaluating climate risk across six key categories (strategic, insurance, financial, investment, operational, and cultural risk).
• Applying risk-return principles directly to climate risks.
• Enhancing risk scenarios to ensure implications are identified.
• Continuously evaluating products to ensure prices adequately reflect risks, including climate change.
• Monitoring state-specific risks and scientific consensus on climate change impacts.
• Continually evaluating pricing methodology.
• Using reinsurance and third-party products to continue providing protection to customers.
• Ensuring sufficient capital to remain viable and weather extreme scenarios.
• Analyzing scenarios to explore events not well represented in historical data, including Extremely Low Frequency Scenarios (ELFS).
• Using geocoding and machine learning techniques to increase the predictive power of data.
• Incorporating insights from high-resolution aerial photos to enhance underwriting and pricing.
• Partnering with industry leaders to sponsor research that improves resiliency to weather-related perils.
• Advocating for changes that address climate change by strengthening building codes, expanding emergency response capabilities, and creating catastrophe insurance pools.

Supply Chain Management

Supplier Audits: 147 suppliers disclosed environmental data via CDP (90% response rate)

Responsible Procurement

• Supplier Code of Business Conduct
• Security assessment program for suppliers
• Training for contingent workers
• Integrating ESG criteria in procurement processes
• Measuring and reporting on supplier KPIs

Climate-Related Risks & Opportunities

Physical Risks

• Severe weather
• Rising precipitation levels
• Increased frequency and severity of losses due to extreme weather and catastrophes

Transition Risks

• Changes to property construction trends and the transportation system
• Potential changes in financial disclosure requirements
• Regulatory compliance

Opportunities

• Development of energy-efficient products
• “Green” investments
• Emerging technologies

Reporting Standards

Frameworks Used: Integrated Reporting (IR) framework (IIRC), SASB, TCFD, GRI Standards (Core option), UN Sustainable Development Goals (UN SDGs)

Sustainable Products & Innovation

• Drivewise (telematics-based insurance)
• Milewise (pay-per-mile auto insurance)
• QuickFoto Claim (digital claims assessment)
• Virtual Assist (live video claims assessment)
• Allstate Identity Protection
• Homeowners Policy Green Improvement Reimbursement Endorsement

Awards & Recognition

• Forbes’ America’s Best Employers
• Fortune’s World’s Most Admired Companies
• Fortune’s “Measure Up” list
• Fortune’s Change the World
• Newsweek’s America’s Best Customer Service
• Transparency Awards Best Overall Transparency
• Wall Street Journal/Drucker Institute’s Management Top 250
• 3BL’s 100 Best Corporate Citizens
• CDP’s A List
• Dow Jones Sustainability Index Member
• Ethisphere Institute’s World’s Most Ethical Companies
• Forbes’ Green Growth 50
• Forbes’ Just Companies
• International Financing Review North America Investment-Grade Bond of the Year
• Newsweek’s America’s Most Responsible Companies
• Newsweek’s Top 100 Green Companies
• Points of Light The Civic 50
• DiversityInc’s Top 50 Companies for Diversity
• Black Enterprise’s Best Companies for Diversity
• Disability Equality Index (DEI) Top Scoring Companies
• Diversity Best Practices Inclusion Index
• DiversityJobs Top Diversity Employers
• Forbes’ America’s Best Employers for Diversity
• Forbes’ America’s Best Employers for New Grads
• Forbes’ America’s Best Employers for Women
• Hispanic Association on Corporate Responsibility’s 5 Star Company
• Human Rights Campaign’s Corporate Equality Index
• LATINA Style Magazine’s 50 Best Companies
• Leadership Council on Legal Diversity’s Top Performer
• Military Friendly Company’s Military Friendly Employer
• National Association for Female Executives’ Top Companies
• Anita Borg Institute’s Top Companies
• Belfast Telegraph IT Awards’ Cybersecurity Project of the Year
• Computing Security Excellence Awards’ Security Team of the Year
• CSO50 Award’s Supplier Security Risk Management
• Digital DNA’s Best Tech for Good Innovation
• CIO 100
• International Association of Business Communicators’ Gold Quill Award
• Black Enterprise’s Top 50 Companies for Supplier Diversity
• Chicago Minority Supplier Development Council’s Corporation of the Year
• National Gay & Lesbian Chamber of Commerce’s “Best-of-the-Best” Corporation
• Walmart Services Supplier of the Year
• Women’s Business Enterprise National Council’s Top Corporation

Environmental Metrics

ESG Focus Areas

• Climate Change
• Environmental, Social, and Governance (ESG)

Environmental Achievements

• Reduced real estate footprint from over 9 million square feet to under 7 million square feet
• 85% of legacy fleet is hybrid vehicles
• Installed solar panels at Pune, India office

Social Achievements

• Named to the World’s Most Ethical Companies® list for the eighth year in a row
• Increased engagement with suppliers on climate-related issues

Governance Achievements

• Board-level oversight of climate-related issues
• Incentives for management of climate-related issues

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to climate events
• Increased frequency and severity of weather events affecting claims costs
• Regulatory changes impacting operating costs
• Reputational risks from inadequate climate change response

Mitigation Strategies

• Integrated Enterprise Risk and Return Management (ERRM) framework
• Catastrophe modeling and analytics
• Reinsurance coverage
• Limiting new business in high-risk areas
• Investing in climate mitigation and adaptation
• Supplier engagement on climate-related issues
• Sustainability initiatives in procurement

Supply Chain Management

Supplier Audits: 100% of suppliers in RFP process

Responsible Procurement

• Supplier Code of Business Conduct
• Sustainability initiatives in procurement
• ESG criteria in supplier agreements

Climate-Related Risks & Opportunities

Physical Risks

• Hurricanes
• Wildfires
• Severe weather
• Sea level rise
• Changing precipitation patterns

Transition Risks

• Regulatory changes
• Market shifts
• Changes in consumer preferences

Opportunities

• Growth in electric vehicle insurance market
• Returns on investment in low-emission technology

Reporting Standards

Frameworks Used: CDP, TCFD, Greenhouse Gas Protocol

Sustainable Products & Innovation

• Homeowners Policy Green Improvement Reimbursement Endorsement
• Milewise pay-per-mile auto insurance
• Drivewise telematics-based auto insurance

Awards & Recognition

• Fortune Magazine’s World’s Most Admired Companies (2022)
• World’s Most Ethical Companies® list