Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Community
• Diversity & Inclusion
• Cybersecurity
• Customer Experience
• Governance
• Employee Well-being

Environmental Achievements

• Reduced absolute Scope 1 and 2 emissions by 39% since 2011
• Achieved 97% of the goal to reduce absolute Scope 1 and 2 emissions by 40% by 2020 (based on a 2011 base year)
• Planted one million trees through a partnership with American Forests to offset paper usage from paperless billing conversion.

Social Achievements

• More than 130,000 employee volunteer hours in 2019
• Over $24 million in cash charitable giving in 2019
• Launched Travelers EDGE® program to support underrepresented students
• Launched Travelers Insuring Futures program to promote insurance careers
• Improved employee engagement survey results, exceeding the 50th percentile in the survey administrator’s overall company database.
• Launched mental health anti-stigma campaign
• Introduced Travelers Paying It Forward Savings Program to assist employees with student loan debt.

Governance Achievements

• All directors, other than the Chairman and CEO, are independent
• Robust corporate governance practices designed to support sustained value creation
• Board regularly reviews ESG risks and opportunities
• Executive compensation linked to ESG performance (pay-for-performance philosophy)

Climate Goals & Targets

Environmental Challenges

• Unpredictability of weather trends and changing climate conditions impacting the frequency and severity of natural disasters
• Cyber risks to businesses and organizations
• Evolving consumer and business expectations
• Opioid addiction among workers compensation claimants

Mitigation Strategies

• Sound governance and risk selection, products, services, and public policy to mitigate the impact of severe weather events
• Multifaceted approach to protect information and provide innovative cyber solutions for customers
• Investing in technologies, capabilities, and talent to deliver fast, personalized service
• Early Severity Predictor® model to identify injured employees at greater risk for chronic pain and opioid addiction, recommending appropriate medical and behavioral interventions

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct requiring compliance with environmental laws and minimizing negative environmental impact

Climate-Related Risks & Opportunities

Physical Risks

• Natural catastrophes (hurricanes, wildfires)

Opportunities

• Growth of renewable energy industry

Reporting Standards

Frameworks Used: SASB, TCFD, IIRC, GRI

Certifications: ENERGY STAR®

Sustainable Products & Innovation

• Green Building Coverages
• Green Home Discount
• Windstorm Mitigation Discount
• Hybrid/Electric Vehicle Discount
• Hybrid Boat Discount
• Electric Boat Discount

Awards & Recognition

• Newsweek: One of America’s best companies for customer service (2019)
• U.S. News: Second-best car insurance company (2019)
• J.D. Power: Top-10 carrier for auto and property claim satisfaction (2018)
• Marsh ProBroker: Insurer of the Year (2019)
• Glassdoor Best Places to Work Awards (2019)
• Glassdoor Top CEOs Awards (2019)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Inclusion
• Governance
• Community
• Customer Experience
• Data Privacy & Cybersecurity
• Disaster Preparedness & Response
• Eco-Efficient Operations
• Ethics & Values
• Human Capital Management
• Innovation
• Investment Management
• Public Policy
• Safety & Health

Environmental Achievements

• Exceeded goal to reduce absolute Scope 1 and 2 emissions by 40% by 2020 (based on a 2011 base year), achieving a 54% reduction.
• Planted 1 million trees through paperless billing conversion campaign.
• Committed to becoming carbon neutral across owned operations by 2030.

Social Achievements

• Provided more than $5.5 million to assist families, communities, and small businesses impacted by the COVID-19 pandemic.
• Launched Travelers EDGE® program, supporting underrepresented students in higher education and career readiness.
• Maintained strong employee engagement levels despite the pandemic.

Governance Achievements

• Implemented robust corporate governance practices, including Board independence and diversity.
• Incorporated ESG factors into investment decisions.
• Aligned executive compensation with long-term financial goals and strategic objectives.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic and its impact on business operations, employee well-being, and customer needs.
• Increased frequency and severity of natural disasters due to changing climate conditions.
• Cybersecurity risks associated with remote work environments.

Mitigation Strategies

• Activated business resiliency plans, enabling seamless transition to remote work.
• Implemented enhanced safety protocols for worksite-essential employees.
• Provided billing relief and premium refunds to customers.
• Strengthened technology infrastructure and cybersecurity measures.
• Developed and deployed virtual claim inspection tools and telemedicine options.
• Incorporated climate-related risks into underwriting strategies and pricing decisions.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Code of Conduct requiring compliance with applicable environmental laws and ethical business practices.
• Tracking of Tier 1 and Tier 2 spend with diverse suppliers.

Climate-Related Risks & Opportunities

Physical Risks

• Severe weather events (hurricanes, tornadoes, wildfires, etc.)

Transition Risks

• Regulatory changes impacting climate, energy, and the environment.
• Market-based policies putting a price on greenhouse gases.

Opportunities

• Growth in renewable energy and clean technology industries.
• Development of climate-resilient products and services.

Reporting Standards

Frameworks Used: SASB, TCFD, IIRC, GRI

Certifications: ENERGY STAR®

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Green building coverages
• Renewable energy insurance products
• Wildfire defense services

Awards & Recognition

• J.D. Power top-10 carrier for digital service
• CMO Club Customer Experience award finalist
• Clarabridge Customer Experience Luminary Award
• Newsweek America’s best companies for customer service
• US News second-best car insurance company
• Marsh ProBroker network Insurer of the Year

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Inclusion
• Governance
• Community
• Customer Experience
• Data Privacy & Cybersecurity
• Disaster Preparedness & Response
• Eco-Efficient Operations
• Ethics & Values
• Human Capital Management
• Innovation
• Investment Management
• Public Policy
• Safety & Health
• Supplier Diversity
• Responsible Investing

Environmental Achievements

• Exceeded goal of reducing absolute Scope 1 and 2 greenhouse gas emissions by 40% by 2020 (based on a 2011 base year), achieving a 60% reduction.
• Committed to becoming carbon neutral across owned operations by 2030.
• Funded the planting or conservation of over 3 million trees through a partnership with American Forests.

Social Achievements

• Launched Travelers EDGE® program, helping underrepresented students access higher education and career opportunities.
• Provided more than $228 million in gifts to local communities over the past decade.
• Maintained strong employee engagement levels, with approximately 80% of employees recommending Travelers to a friend.

Governance Achievements

• Implemented robust corporate governance practices, including an independent Lead Director and diverse Board of Directors.
• Linked executive compensation to the achievement of short-term and long-term financial goals and strategic objectives.
• Maintained strong credit ratings from four major rating agencies.

Climate Goals & Targets

Environmental Challenges

• Climate change impacts, including increased frequency and severity of natural disasters.
• Cybersecurity threats.
• Evolving customer expectations.
• COVID-19 pandemic.

Mitigation Strategies

• Developed a comprehensive climate strategy aligned with TCFD recommendations.
• Implemented robust cybersecurity policies and technologies.
• Invested in technologies and capabilities to deliver fast, personalized customer service.
• Activated business resiliency plans to manage the impacts of the COVID-19 pandemic.

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct requiring compliance with applicable environmental laws and ethical business practices.
• Tracking of Tier 1 and Tier 2 spend with diverse suppliers.

Climate-Related Risks & Opportunities

Physical Risks

• Severe weather events (hurricanes, wildfires, etc.)

Transition Risks

• Regulatory changes, market shifts towards renewable energy.

Opportunities

• Growth in renewable energy insurance.

Reporting Standards

Frameworks Used: SASB, TCFD, GRI

Certifications: ENERGY STAR®

Sustainable Products & Innovation

• Green building coverages
• Renewable energy insurance products
• Hybrid/electric vehicle discounts

Awards & Recognition

• Gartner’s “Gifted” in Insurance Digital IQ Index (2020)
• Forbes’ America’s Best Insurance Companies (2022)
• U.S. News’ Top 10 Best Car Insurance Companies (2021)
• Corporate Insight awards for Desktop Website and Mobile App (2021)
• J.D. Power Top 10 in Insurance Shopping process (2021)

Environmental Metrics

ESG Focus Areas

• Business Strategy & Competitive Advantages
• Capital & Risk Management
• Climate Strategy
• Community
• Customer Experience
• Data Privacy & Cybersecurity
• Disaster Preparedness & Response
• Diversity & Inclusion
• Eco-Efficient Operations
• Ethics & Responsible Business Practices
• Governance Practices
• Human Capital Management
• Innovation
• Investment Management
• Public Policy
• Safety & Health

Environmental Achievements

• 55% Reduction in the company’s Scope 1 and 2 emissions since 2011
• Funded the planting or conservation of over 4 million trees through our partnership with American Forests and the U.S. chapter of 1t.org

Social Achievements

• Travelers – directly and through the Travelers Foundation – has provided more than $230 million in gifts to local communities over the past decade
• 74% of Travelers EDGE graduates were hired full time by Travelers from the 2021-2022 academic year
• 115 FORTIFIED homes were built with our support across Louisiana, Texas, Florida, South Carolina, and Puerto Rico
• Employee volunteer hours increased significantly as COVID-19 restrictions were lifted

Governance Achievements

• 13 of 14 Directors on our Board are independent
• Executive compensation linked to core return on equity

Climate Goals & Targets

Environmental Challenges

• GHG emissions data for the substantial majority of segments of our investment portfolio is unavailable
• Cyber threats are the No. 1 concern across all businesses
• Elevated level of attrition during the Great Resignation

Mitigation Strategies

• Incorporated relevant risks into investment analysis
• Offer cyber liability insurance and risk management resources
• Improved employee experience and inclusion efforts

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct
• Review of climate and environmental considerations

Climate-Related Risks & Opportunities

Physical Risks

• Severe weather events
• Wildfires
• Hurricanes

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Growth in renewable energy and clean technology industries

Reporting Standards

Frameworks Used: SASB, TCFD, GRI

Certifications: ENERGY STAR®

Sustainable Products & Innovation

• Green Building Coverages
• Green Home Discount
• Wind Mitigation Discount
• Hybrid/Electric Vehicle Discount

Awards & Recognition

• Forbes Best Small Business Insurance Carriers
• U.S. News Best Car Insurance Companies
• U.S. News Best Workers Compensation Insurance Companies
• TrustedChoice.com Best Small Business Insurance for Professional Liability
• Corporate Insight awards for Desktop Website and Mobile App
• Verint Experience Index top 10 for customer satisfaction
• Insurance Business America 5-Star Excellence Award

Environmental Metrics

ESG Focus Areas

• Business Strategy & Competitive Advantages
• Capital & Risk Management
• Climate Strategy
• Community
• Customer Experience
• Data Privacy & Cybersecurity
• Disaster Preparedness & Response
• Diversity & Inclusion
• Eco-Efficient Operations
• Ethics & Responsible Business Practices
• Governance Practices
• Human Capital Management
• Innovation
• Investment Management
• Public Policy
• Safety & Health

Environmental Achievements

• 54% Reduction in the company's Scope 1 and 2 emissions for owned operations since 2011
• Funded the planting or conservation of more than five million trees in 17 U.S. states and Canada through our partnership with American Forests and the U.S. chapter of 1t.org

Social Achievements

• Travelers and the Travelers Foundation provided more than $230 million in gifts to local communities over the past decade
• 62% of Travelers EDGE graduates were hired full time by Travelers in the 2022-2023 academic year
• Travelers employees logged more than 6,800 hours on Habitat builds in 2023
• More than 130 FORTIFIED homes were built with our support across the country in partnership with Habitat for Humanity®, SBP and Team Rubicon in 2023

Governance Achievements

• 10 of 11 Directors on our Board are independent
• Executive compensation linked to ESG performance (pay-for-performance philosophy)

Climate Goals & Targets

Environmental Challenges

• Elevated industrywide catastrophe losses
• Difficult personal lines operating environment
• Unavailable or inconsistent GHG emissions data for a substantial majority of segments of our investment portfolio
• Cyber threats

Mitigation Strategies

• Disciplined approach to terms and conditions, risk control initiatives, proprietary underwriting, reinsurance
• Incorporation of climate-related risks into investment analysis
• Implementation of technologies and tools to evaluate cybersecurity protections and maintain a cyber risk management strategy
• Annual cybersecurity risk and control assessment

Supply Chain Management

Responsible Procurement

• Travelers Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Severe weather events (hurricanes, tornadoes, hail, wildfires)
• Flooding
• Drought

Transition Risks

• Regulatory changes
• Market shifts
• Climate-related litigation

Opportunities

• Growth of renewable energy insurance
• Development of climate-resilient products and services

Reporting Standards

Frameworks Used: SASB Insurance (FN-IN) Industry Standard, TCFD

Certifications: ENERGY STAR®

Sustainable Products & Innovation

• Green Building Coverages
• Green Home Discount
• Wind Mitigation Discount
• Hybrid/Electric Vehicle Discount
• Wildfire Defense Services Endorsement

Awards & Recognition

• Forbes Best Small Business Insurance Carriers
• U.S. News Best Car Insurance Companies
• U.S. News Best Workers Compensation Insurance Companies
• TrustedChoice.com Best Small Business Insurance for Professional Liability
• Insurance Business America 5-Star designations
• Plug and Play InsurTech Corporate Innovation Award