Corporate Responsibility

Allstaters share a common commitment to helping others. Every day, we’re focused on three things:

  • Helping people who are our customers
  • Building a business that provides good returns to shareholders
  • Improving our local communities

These commitments come together in our corporate responsibility efforts.

Allstate is working to create the 22nd century corporation. One that is a Force For Good. Customers, shareholders and employees will be well served. The people, capabilities and resources that are driving this transformation will also be focused on improving the local communities where we work and live. Customers will do business with us because of who we are, not just what we sell.

Allstate’s approach to corporate responsibility is innovative, focused and long-term. Following are a few highlights:

  • We have taken innovative approaches to reducing teen driving fatalities and reducing inner-city violence.
  • Over the past decade, our many new approaches to helping victims of domestic violence have been recognized for their meaningful impact.
  • To date, our programs have helped more than 1.5 million young drivers and 580,000 survivors of domestic violence.
  • We are partnering with Free The Children to support and reward youth for volunteering all across America.
  • Some 67 percent of agency owners and employees are involved in community service.
  • In 2014, The Allstate Foundation, Allstate Corporation, employees and agency owners gave $34 million to support local communities. Over the past decade, Allstate’s total giving reached nearly $300 million.

Our commitment to be a leading corporate citizen includes Allstate’s business practices as well. Our strong focus on a multicultural workplace and supplier network was recognized by Diversity Inc., which named Allstate to its Top 50 Companies for Diversity list for the fourth consecutive year. In addition, Allstate was recently recognized by Ethisphere Institute, the global leader in defining and advancing the standards of ethical business practices, as a 2015 World’s Most Ethical Company. We also continued to lead in the fight against insurance fraud, leveraging our big data capabilities to detect criminal activity and to help avoid passing on these costs to consumers. Finally, in the past year we surpassed our long-term goal to reduce energy use in our owned facilities by 20 percent—six years ahead of schedule.

Through our actions we’re helping people live a good life—today and for years to come. I hope you will take a closer look at our achievements and ongoing opportunity areas on our new Corporate Responsibility Report website.

Tom Wilson
Chairman and Chief Executive Officer

Allstaters share a common commitment to helping others. Every day, we’re focused on three things: helping people who are our customers, building a business that provides good returns to shareholders and improving our local communities.

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Allstate’s Purpose

I’ve had the privilege of telling Allstate’s corporate responsibility story for nearly a decade. It’s a story inspired by Our Shared Purpose, Allstaters’ caring nature, and our Chairman’s deep belief that corporations can — and should — do more to proactively address issues challenging society.

It’s a story about one company committed to being a force for good in people’s lives, today and in the lives of future generations. And it’s a story about how innovation, focus, and a systems-thinking mind-set can drive real change. We’re particularly proud of our contributions to our country’s youth and to the movement to end domestic violence.

Good Starts Young is our comprehensive program shining a light on America’s youth and their role in society as problem solvers. We invest in social and emotional learning experiences that develop character and inspire youth to serve their community. In doing so, we believe we can help enable the next generation of leaders to reach their full potential and take part in causes greater than themselves. Last year, we contributed to programs that enabled 1 million youth to complete 2.6 million hours of service and raise $3.8 million for charitable causes across the globe.

Over the past decade, we’ve helped transform the domestic violence issue through Allstate Foundation Purple Purse, our nation’s longest-running program, focused on ending abuse through a proven solution: financial empowerment services for survivors. We’ve invested more than $50 million in programs designed to offer solutions to reduce financial abuse, which is — in 99 percent of all domestic violence cases — a significant factor in victims’ ability to break free and stay free of their abusers. And in the last two years, we’ve raised nearly $5.5 million to help nonprofits build their capacity to meet survivors’ needs.

Our overall corporate responsibility strategy extends far beyond these two signature areas. We regularly ask our stakeholders to tell us how we’re doing on a variety of sustainability and business topics. This year, from our Materiality Analysis, we learned that we have several opportunities to improve our work:

Talent Attraction, Retention and Development. America’s transitioning workforce tests conventional wisdom regarding talent management, and enables us to reinvent what it means to be an insurance company.

Climate Change. A changing climate could affect claims and pricing, and offers us a chance to build more partnerships and demonstrate our commitment to operating responsibly.

Customer Privacy and Data Security. New data technology will help us protect the privacy of our customers, and could lead to an era of more seamless and fluid customer experience.

Community Presence. Our communities continue to face social, environmental, and economic challenges, and these challenges provide us with the opportunity to revitalize the relationship between the private and the public sector.

In recent years, we’ve delivered strong progress toward our Key Performance Indicators (KPIs). In 2010, we pledged to reduce Allstate’s energy use by 20 percent by 2020. I’m pleased to report that the company actually surpassed this goal in 2014, a full six years ahead of schedule. Additionally, over the last eight years, we’ve significantly reduced paper mailings to customers, as well as paper use by employees. In the area of supplier diversity, we set a goal of achieving 9 percent of Allstate’s total procurement spend with businesses owned by minorities, women, veterans, or members of the lesbian, gay, bisexual, and transgender community. In 2015, we moved closer to that goal with an 8.4 percent diverse-supplier spend.

I believe it’s imperative to build strong cross-functional partnerships within the company to help address and manage our priority issues and KPIs. That’s why we actively engage the Allstate Sustainability Council, composed of business unit leaders across the company, to help drive the transparency and authenticity of Allstate’s environmental stewardship and steer the company’s overall sustainability strategy. In the coming year, the council will be instrumental in setting new goals and targets, which we will post on this report site.

As Allstaters, we hold ourselves to the highest ethical standards while making positive contributions to our workforce, to society, and to the environment. We’re honored to have been named as a World’s Most Ethical Company® by the Ethisphere Institute in 2015 and 2016. It’s an absolute privilege to work alongside teammates who care deeply about doing the right thing and building trust with our stakeholders. The Allstate team is diverse and highly driven to contribute in unique ways. We currently house 10 different Employee Resource Groups — each with its own value proposition and goals. Our employee population consists of roughly 56 percent women and 33 percent minorities, earning us a place on DiversityInc’s list of the Top 50 Companies for Diversity® for the fifth consecutive year. These types of recognition from Ethisphere and DiversityInc affirm our philosophy and practices and build an incredible amount of employee pride.

Every year I look forward to preparing and sharing the content in this report. We commit to providing our stakeholders with transparent and meaningful reporting by adhering to internationally recognized standards, as evidenced by this GRI-G4 core-level disclosure. I encourage you to explore our interactive Corporate Responsibility Report site to learn more about Allstate’s purpose and how we’re strengthening communities in the U.S. and beyond.

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Victoria Dinges
Senior Vice President, Corporate Responsibility

We continually seek stakeholder input to ensure we are focusing on what matters most within the vast universe of sustainability and corporate responsibility topics.

Stakeholder Engagement

Stakeholder inclusiveness is a core principle of GRI sustainability reports, and we do our best to identify all of Allstate’s stakeholders and respond to their expectations and interests. We regularly engage the following stakeholder groups: agency owners, financial specialists, customers and consumers, employees, investors, nongovernmental organizations (NGOs), opinion leaders, policy makers and suppliers. We identify stakeholder groups by engaging with senior leaders, consulting our Sustainability Council, collecting feedback from employees and examining our value chain. We select stakeholders according to their knowledge and understanding of our company as a whole, orientation relative to or within the financial services industry and the extent to which they can impact or be impacted by Allstate. For this year’s sustainability materiality assessment, we engaged our stakeholders through interviews, surveys and industry research.

In addition to engaging stakeholders for the purpose of our materiality assessment, we have many other ongoing engagement efforts. We engage customers and consumers, investors, agency owners, employees, policy makers and opinion leaders primarily through our annual reputation study. We administer this study in partnership with the Reputation Institute. During the assessment, we collect feedback from 8,000 individuals across these seven stakeholder groups, identify key topics and develop strategies to address gaps we may uncover. While this study constitutes one of our primary modes of stakeholder engagement, many are stakeholder-specific. To learn more about how we engage agencies, employees and suppliers in particular, click on each respective link.

Our Sustainability Materiality Process

Our 2015 sustainability materiality assessment followed the Global Reporting Initiative’s (GRI) guidelines. The process begins with topic identification, followed by a prioritization of the resulting topics and concludes with an internal validation session.

Topic Identification
Because of the dynamic and rapidly evolving nature of our industry, Allstate is committed to refreshing our materiality assessment from time to time. Our most recent assessment began with an exploration of potentially relevant topics to Allstate and our stakeholders. We collected this list of topics by compiling sector-specific and public lists provided by various transparency-focused sustainability organizations, including GRI and the Sustainability Accounting Standards Board (SASB). We also reviewed peers, industry research and other publicly available resources.

Topic Prioritization
After collecting a preliminary list of sustainability topics relating to the insurance industry, we began to engage our internal and external stakeholders. Following each engagement, we assessed evidence of each stakeholder’s concern for a given topic. We ultimately translated this information into the matrix found below.

Topic Validation
After finalizing the critical topics identified by our stakeholders, we hosted a validation session. During this session and after multiple one-on-one conversations, the Allstate Sustainability Council reviewed the results of the prioritization, offered comments and confirmed the findings.

Key Topics Raised in Our 2015 Sustainability Materiality Assessment

By conducting this assessment, we gained invaluable feedback regarding what matters most to Allstate and our stakeholders. In particular, the assessment found the following four topics to be the most significant to both Allstate and our stakeholders:

Climate Change
Stakeholders driving topic: Investors, Opinion Leaders, NGOs, Agencies, Allstate
Stakeholder Feedback: Climate change has the potential to affect Allstate’s profitability due to the increasing number of weather-related catastrophic events. In particular, these events could increase the number of claims customers file and affect the stability of Allstate’s investment portfolio. The rising number of claims could impact customer experience. Further, accurate integration of climate change into risk modeling continues to be important for the industry as a whole. Allstate has an opportunity to contribute to climate change mitigation using the extensive climate-related data that it collects, promoting sustainable policies and expanding the number of sustainable investments the company makes through its portfolio.

To find out more about how Allstate is managing this topic, see Climate Change.

Community Presence
Stakeholders driving topic: NGOs, Agencies, Allstate
Stakeholder Feedback: While reputation is important to any company, it is particularly important for Allstate since the company promises to be there during some of the most trying times of customers’ lives. Because Allstate believes in being a force for good in its communities, the company is better positioned to achieve its social impact goals and substantially improve trust with stakeholders—driving shared value.

To find out more about how Allstate is managing this topic, see Community Presence.

Customer Privacy and Data Security
Stakeholders driving topic: Opinion Leaders, Agencies, Allstate
Stakeholder Feedback: This topic is linked to Allstate’s reputation and commitment to ethics and integrity. Allstate should continue to train employees on data security and privacy practices; promote flexible, risk-based legislation and serve as a leader in its approach to cybersecurity for stakeholders.

To find out more about how Allstate is managing this topic, see Customer Privacy and Data Security.

Talent Management
Stakeholders driving topic: Investors, Employees, NGOs, Agencies, Suppliers, Allstate
Stakeholder Feedback: Finding innovative ways to overcome the shortage of science, technology, engineering and math (STEM) professionals and adapt to an increasingly diverse world is vital to the future of Allstate’s workforce. Generational differences also present new challenges; Allstate has an opportunity to further align corporate activity and messaging with the importance millennials place on corporate responsibility. Allstate should continue to emphasize retention by promoting professional development and engagement opportunities. It is important for the company to also provide agency owners and financial specialists with the support they need to maintain a healthy talent pipeline.

To find out more about how Allstate is managing this topic, see Talent Management.

Materiality and Boundary

Topics



The table below outlines the scope of topics (17) included in this assessment and where Allstate’s impact occurs with respect to each (positive or negative). See the value chain map for additional context.

Topic
Internal
External
Environment
TopicClimate Change InternalAllstate Business, Claims, Investments ExternalAgencies, Customers, Investors
TopicEnergy and Emissions InternalBuilding Operations ExternalThe Environment
TopicWaste InternalBuilding Operations ExternalThe Environment
Topic
Internal
External
Society
TopicCommunity Presence InternalAllstate Business ExternalAgencies, Communities, Customers, NGOs
TopicCustomer Privacy and 
Data Security InternalAllstate Business ExternalAgencies, Customers, Suppliers
TopicFinancial Inclusion Internal—— ExternalCommunities
TopicSustainable Procurement InternalAllstate Business ExternalSuppliers
TopicTransparent Communications Internal—— ExternalCustomers, Investors, Regulators
Topic
Internal
External
Business Practices
TopicCorporate Governance InternalAllstate Business ExternalAgencies, Investors
TopicEthics and Integrity InternalClaims, Employees ExternalAgencies, Investors
TopicProduct and Claims Innovation InternalAllstate Business ExternalAgencies, Customers, Investors
TopicPublic Policy InternalAllstate Business ExternalInvestors, Regulators
TopicResponsible Investment InternalInvestments ExternalCommunities, The Environment, Investors
Topic
Internal
External
Workforce
TopicAgency Engagement InternalAllstate Business ExternalAgencies, Communities
TopicEmployee Safety and Wellness InternalEmployees External——
TopicInclusive Diversity InternalEmployees External——
TopicTalent Management InternalEmployees External——

Allstate Value Chain Map

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