Corporate Responsibility

Climate change could pose considerable challenges to the insurance industry due to increased volatility and frequency of extreme weather, and the effect it could have on pricing and availability of insurance products.

Introduction

Climate change could alter the business landscape. Our risk management takes into account the increasing severity and frequency of weather-related natural catastrophes. As an insurer, we will continue to provide our industry expertise in formulating public policy solutions that both mitigate weather-related risks and reduce impacts on those most vulnerable. The following are key components of our climate change statement:

Closing

As stakeholders become increasingly interested in companies’ environmental stewardship efforts and susceptibility to climate change, Allstate has embraced this opportunity to demonstrate leadership by committing to limit or reduce its impacts. In 2015, Newsweek magazine named Allstate one of the World’s Greenest Companies (#81) for the sixth time. Allstate has also reduced resource use in its customer interactions. Allstate’s paperless billing option, for example, is popular with customers who want to do their part to reduce their impact on the environment. Allstate believes its sustainability initiatives are intrinsically tied to its corporate citizenship and help strengthen employee and customer pride.

Allstate is committed to reducing our environmental footprint by operating as efficiently as possible.

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Introduction

As an industry with extensive climate-related risk, we believe it is in the world’s best interest to reduce our environmental footprint. Managing our footprint also makes good business sense because it reduces our cost of operation.

Today, energy and waste reduction efforts are table stakes for sound stakeholder relationships. By demonstrating stewardship of the earth, Allstate nurtures its reputation as an environmentally and socially responsible company while enabling greater opportunities for our business and our stakeholders.

Caption: Allstate’s daylight harvesting system uses daylight to offset the amount of electric lighting needed to light our office space and reduce energy consumption.

Energy and Emissions

In 2010, Allstate set a goal to achieve a 20 percent energy-use reduction against our 2007 baseline by the year 2020. Thanks to efforts across the enterprise, we surpassed this goal six years early in 2014. We are in the midst of setting new sustainability goals, including for our future energy use, all of which will be confirmed and shared on this report site. In the meantime, we continue to work toward reductions by consolidating office space, recapturing heat energy as a by-product of Allstate’s data center operations and optimizing the use of energy efficient equipment and systems. Examples of this include HVAC equipment and controls, reduced-lighting power density designs and daylight harvesting in Allstate’s offices. The cumulative effect of these efforts was a 5.1 percent drop in energy use from 2014 levels. In early 2016, we replaced two chillers at our headquarters in Northbrook, IL, which increased energy efficiency and cut operational costs.

Energy Reduction

Greenhouse Gas Emissions

Emission Reductions

Waste

At Allstate’s corporate headquarters in Northbrook, IL, we recycle PET (polyethylene terephthalate) plastic bottles, aluminum, lightbulbs, metal scrap and paper. In addition to Allstate’s recycling program, we manage waste through bottling stations, cafeteria waste dehydration and pulping, electronic communications offerings and secure shredding.

In 2015, Allstate recycled:
Waste Reduction(Pounds)

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chart-cans

Water Fountains and Bottling Stations

More than two million tons of disposable water bottles sit in U.S. landfills.1 To reduce the use of disposable water bottles, several years ago we launched an enterprise-wide bottling station program. Employees fill up their bottles with filtered tap water at bottle stations rather than purchasing disposable water bottles. In 2015, we prevented over 1.5 million disposable water bottles from entering the landfill. It takes four ounces of oil to manufacture a 16.9 ounce plastic water bottle. By this measure, Allstate indirectly prevented the equivalent use of 27,700 gallons of gasoline. Allstate maintains 230 bottling stations across our facilities, 30 of which were added in 2015.

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Reducing Employee Cafeteria Waste

In 2013, the United States generated more than 37 million tons of food waste, accounting for 21 percent of all solid waste. The U.S. Department of Agriculture estimates that Americans discarded more than a third of all food produced in 2010.2

Caption: Cafeteria waste is processed and dehydrated in the Somat machine. The remaining compost material is used as a mulch additive. The South Plaza cafeteria at our Northbrook office is now a zero-waste zone.

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Because food requires substantial resources to produce, discarding it wastes not only the food itself, but the resources that contributed to its production. Additionally, once food reaches the landfill, it begins to decompose. This process produces methane, a greenhouse gas that has an impact on the climate 25 times greater than CO2.3

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In order to address this international issue, in 2015, we installed a food pulper and dehydrator at our headquarters. The pulper grinds food waste which we then feed through the dehydrator system. After we process the food waste, only five percent of the volume remains, which serves as a rich soil amendment for our campus landscaping. Our home office cafeteria, which is also our largest, is now zero-waste.

Paper Reduction

Paper is Allstate’s largest source of potential waste. To this end, we have implemented numerous reduction initiatives. In the absence of a specific reduction target (which will be released in 2017), we aim to maintain or exceed prior-year employee paper reduction levels.

We have a Print Optimization and Paperless Task Force that is comprised of business unit leaders from across the company. The team monitors and tracks employee and customer printing and paper use and works with the enterprise communications team to run employee awareness campaigns on the costs of printing—operationally and to the planet.

We make every effort to keep documents in electronic form. When dealing with confidential documents, this is not always possible. To address this waste stream, Allstate maintains a secure shred program where paper documents are shredded and recycled.

We encourage reduction in customer paper use and are transitioning to electronic forms of communications. This helps cut costs and reduces both our footprint and our customers’ footprint. Allstate currently has three paperless initiatives available to our customers: eSignature, ePolicy and eBill. Customers can sign up for these free services through My Account, our online customer self-service hub.

CUSTOMER PAPERLESS INITIATIVES
(% USAGE)

Initiative
2013
2014
2015
Initiative ePolicy 2013 6 2014 11 2015 20
Initiative eBill 2013 22 2014 25 2015 32
Initiative My Account 2013 36 2014 44 2015 51