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Allstate Asks Suppliers for Environmental Impact Data

Every year, Allstate shares data about its greenhouse gas emissions — and strategy for reducing carbon use — in the name of transparency, operational efficiency and improved disclosures.

In 2020, the company has taken its concern for the environment a step further, requesting that companies in its supply chain disclose environmental data and increase transparency around their environmental impact. Reporting will be done through CDP Supply Chain (formerly known as the Carbon Disclosure Project), a global organization that urges businesses and governments to reduce their carbon footprints.

“This milestone is a signal to suppliers, investors and other stakeholders that we take climate risk and environmental transparency seriously across our business,” said Michael Thomas, Allstate Vice President of Administration & Real Estate.

Allstate used more than 7,000 suppliers in 2019. They provided goods and services such as IT equipment, office supplies, digital printing, travel accommodations and more. The data Allstate’s suppliers provide beginning this year will shed light on impacts, risks, opportunities and strategies related to climate change. This increased focus on suppliers’ sustainable practices allows Allstate to play a larger role in reducing environmental risks and thinking about its own energy reduction goals.

“With a large global supply chain, we know that continuously working to mitigate our emissions and improve environmental disclosures extends to those we do business with,” said Cheryl Harris, Allstate Senior Vice President of Sourcing & Procurement Solutions. “This decision was the natural next step in our environmental, social and governance reporting journey.”

Allstate spent more than $4 billion with suppliers in 2019. For several years, the company has worked to diversify its supply chain by supporting minority-, woman-, veteran-, LGBTQ- and disabled-owned businesses. The added focus on sustainability provides another avenue for Allstate to make a difference in its local communities and beyond.

“With emissions in the supply chain being on average 5.5 times higher than a company’s direct emissions, the buyer-supplier dynamic will make or break whether our economy can reach net zero by 2050, as the science demands,” said Dexter Galvin, Global Director of Corporations & Supply Chains at CDP.

Allstate has reported its own data to CDP since 2007. It is one of about 30 companies worldwide newly requesting that its suppliers report environmental data this year. Its suppliers will be among more than 15,000 to receive requests from CDP members this year.

Read more about Allstate’s supply chain.