WE ARE THE GOOD HANDS
SUSTAINABLE PROCUREMENT
The magnitude of our global purchasing activity means our procurement practices have far-ranging effects. This offers Allstate the opportunity to positively influence the businesses from which we source products and services. By understanding how suppliers are managing factors such as emissions, waste, regulatory compliance and cybersecurity, we can better articulate Allstate’s expectations. By actively managing these risks, we enhance our reputation and align procurement decisions with environmental and social responsibility, which increases the confidence of stakeholders who depend on Allstate’s performance.

What Sustainable Procurement Means at Allstate

At Allstate, environmental and social leadership in our purchasing decisions helps us demonstrate Our Shared Purpose. We screen suppliers for ethical and sustainable practices and help them adopt ethical and sustainable behaviors.

SUPPLIER IMPACTS

We manage environmental and social impacts in our supply chain through a combination of agreements, surveys, scorecards, resource reduction programs and policies.

As stated in the Supplier Code of Ethics, all suppliers doing business with Allstate must adhere to our requirements regarding human rights, environmental stewardship, diversity and inclusion, child labor and more.

The Allstate Sustainable Procurement Program aims to enhance Allstate’s reputation, mitigate corporate risks and align purchasing decisions with environmental and social sustainability. In 2015, our Sourcing & Procurement Solutions department analyzed our most-used supplier resources and prioritized the key commodity areas. As a result, we focused our responsible purchasing program on computer equipment, furniture, leased properties, paper products, professional services, software, utilities and our corporate vehicle fleet.

The main elements of the responsible purchasing program include:

  • Sustainable procurement road maps: Category-specific procurement guidance with a phased process, timelines and key considerations for using our supplier evaluation tools.
  • Sustainability questionnaires: Category-specific surveys containing KPIs (key performance indicators) to benchmark suppliers on the most relevant sustainability risks for eight commodity areas.
  • Sustainable procurement playbooks: Procurement category-specific guidance providing detailed rationale behind assessing material impacts and how suppliers should respond to the KPIs.

In 2018, the Allstate Sustainable Procurement Program is planning to benchmark Allstate suppliers on our most relevant sustainability risks.

Sustainability Questionnaires

The sustainability questionnaire contains KPIs to assess a supplier against the most material impacts related to that resource. Questionnaires are distributed to suppliers for data collection. Each KPI has a dedicated subsection.

  • Rationale & best practices: ​Provides the commodity manager with the context for asking suppliers to respond to the specific KPI. Where relevant, best practices to describe how suppliers should address the KPI are also provided.
  • Supporting documentation: ​Lists ​optional​ documentation for commodity managers to request from suppliers to verify responses to the KPI.
  • Case study: Provides either a demonstration of the rationale behind asking the question or an example of how a company addresses the material impact. The intent is to give commodity managers real-world context.
  • Additional resources: ​Provides links for commodity managers to access additional research or guidance, should the manager receive questions from suppliers that are not addressed in the playbook. Managers can also share these directly with suppliers.

Sustainability Playbooks

Sustainable procurement playbooks provide a detailed rationale behind assessing material impacts and how suppliers should respond to the KPIs. We distribute the playbooks to Allstate’s commodity managers in each spending category, who then use the tools to help suppliers provide required information for each KPI. We continue to mature our process to accurately and consistently track supplier KPIs.

Cybersecurity

Just as organizations’ reliance on information technology has increased, so has the importance of customer privacy and data security. To mitigate the potential risks of an information security breach arising from a supplier relationship, we provide vendor-specific training on Allstate’s security standards. We train suppliers to recognize behaviors that increase risk, familiarize them with Allstate’s corporate values and evaluate security protocols of every supplier with access to sensitive data. Since 2017, Allstate has required all vendors to complete this course.

SUPPLIER DIVERSITY

We spent $450 million with minority, woman, veteran, LGBTQ and disabled-owned businesses in 2017.

In 2017, Allstate achieved our long-term goal to have 9% of the company’s total procurement spending be with diverse businesses. These enterprises are at least 51% owned and operated by minorities, women, veterans, LGBTQ and disabled. Minority suppliers include: African-American, Hispanic-American, Native American, Asian-American and Pacific Islander-American.

To be eligible for our Supplier Diversity Program, a company must provide certification as a minority-, woman-, veteran-, LGBTQ- or disabled-owned business by one of the following councils:

  • National LGBT Chamber of Commerce
  • National Minority Supplier Development Council
  • U.S. Pan Asian American Chamber of Commerce
  • Women’s Business Enterprise National Council
  • Department of Veterans Affairs Center for Veterans Enterprise Vendor Information
  • U.S. Business Leadership Network

We evaluate progress by measuring our targeted spending in the first five categories listed below. We also measure our inclusive spending in all 13 categories identified by the Small Business Administration as diverse and of special interest in meeting statutory obligations. These include:

  • Minority/woman-owned business enterprises
  • Minority-owned business enterprises
  • Woman-owned business enterprises
  • Lesbian-, gay-, bisexual-, transgender-, questioning-owned business enterprises
  • Disabled business enterprises
  • Disabled veterans business enterprises
  • Disadvantaged business enterprises
  • Historically black colleges and universities
  • Historically underutilized business zone
  • Small Business Administration 8(a) program
  • Small disadvantaged business enterprises
  • Veteran-owned business enterprises
  • Small-business enterprises

Supplier diversity spend (Millions of $)

Diverse supplier spend as percent of purchasing

Building Ties with Diverse Groups Through Memberships

Allstate works with select organizations to conduct national benchmarking, connect with diverse suppliers and identify successful practices in supplier diversity. Allstate is a member of the following organizations:

  • National Minority Supplier Development Council
  • Women’s Business Enterprise National Council
  • National Veteran-Owned Business Association
  • National LGBT Chamber of Commerce
  • United States Hispanic Chamber of Commerce
  • United States Pan Asian Chamber of Commerce
  • Financial Services Roundtable for Supplier Diversity

Industry Recognition

In 2017, we were recognized for our supply chain diversity efforts:

  • 2017 Top Corporation for Women Business Enterprises – Women’s Business Enterprise National Council
  • 50 Top Companies for Supplier Diversity 2017 – Black Enterprise Magazine
  • Top 50 Companies for Diversity 2017 – DiversityInc Magazine (12-time award winner)
  • 2017 “Best-of-the-Best” Corporation for Inclusion – National LGBT Chamber of Commerce

Training the Next Generation of Diverse Suppliers

Allstate is committed to helping develop diverse suppliers through our supplier diversity initiatives. Every year, we host the Allstate Supplier Diversity Exchange, which gives diverse suppliers and startups the opportunity to network with key Allstate decision makers and our major suppliers and strategic partners. The program creates a mutually beneficial relationship: Allstate helps support businesses in underserved areas, and participating companies become better positioned to compete for contracts. While attendance at this event does not guarantee business, since its inception, more than 100 participants have had the opportunity to compete for Allstate’s business, with over 50% having been awarded contracts. Since the exchange started in 2008. Allstate has spent over $850 million with diverse suppliers that have participated in the event through 2017.

We also support diverse businesses through the Allstate Mentoring Program. Diverse companies are selected to receive training, resources and networking opportunities aimed at building their business capacity.

Highlight Stories
Lurie Children’s Hospital
Impact Community Capital
Allstate Supplier Diversity Mentoring Program
Investing in the Land
Allstate’s Zero Waste Zone
American Municipal Power, Ohio
Nashville Water and Sewer
Big Data and Innovation
The Perspectives Charter Schools and Allstate Partnership
Free Financial Management Curriculum for Survivors
Providing Opportunities for Veterans
Allstate’s National Catastrophe Team
Privacy Awareness Campaign
Recognized as Being an Employer of Choice for Veterans and Military Families
Lurie Children’s Hospital
Big Data and Innovation
Training Domestic Violence Counselors
Allstate Good Life Sprint and Stride 5K Walk/Run
American Municipal Power, Ohio
Lost Purse Short Film
2017 Renewal Award Winner - Lost Boyz
Supporting State and Regional Domestic Violence Coalitions and Service
Security Awareness Campaign
Building the Cybersecurity Workforce of the Future
The Perspectives Charter Schools and Allstate Partnership