A Summary of Allstate's Responsible Supply Chain Management Process

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Sustainable Procurement

At Allstate, environmental and social leadership in our purchasing decisions helps us live Our Shared Purpose.

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We realize 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 whom we source the various products and services required to operate our enterprise. We are proud of our business practices, and our work in sustainable procurement is one of the many ways we demonstrate our commitment to sustainability and corporate responsibility. We will continue to hold ourselves and our suppliers accountable for how we affect our stakeholders.

Definition

Screening suppliers for ethical and sustainable practices; helping suppliers adopt ethical and sustainable behaviors.

Risk

Sustainably managing our supply chain helps mitigate risk. By understanding how suppliers are managing topics such as emissions, waste, regulatory compliance and cybersecurity, we can better articulate Allstate’s expectations of them.

HIGHLIGHT STORY

Making a Difference for Small Business Owners

Allstate’s Mentoring Program is one standout aspect of our Supplier Diversity Program.

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Each year, more than 10,000 Allstate employees travel for business. To manage our carbon footprint, it is important that we choose travel partners who exhibit sustainable business practices. In 2016, through our supplier sustainability check-ins, Allstate worked closely with one of our preferred airlines to help drive innovative sustainability solutions.

By introducing fuel-efficient technology onto the airline routes, our supplier’s program to replace older, less fuel-efficient aircraft with newer models that produce fewer emissions and less noise helped Allstate to lower our carbon footprint while meeting the business needs of our employees.

The new fuel-efficient technology, combined with Allstate’s new focus on on-demand management, or traveling only when the trip is a business necessity, produced the following results:

  • Reduced emissions by 249 metric tons of CO2e compared to the previous year.
  • Allstate employees took fewer airline trips, resulting in better flight mix efficiency.

Sustainably managing our supply chain helps mitigate risk. By understanding how suppliers are managing topics such as emissions, waste, regulatory compliance and cybersecurity, we can better articulate Allstate’s expectations of them. By actively managing these risks, we enhance our reputation and align procurement decisions with environmental and social responsibility, increasing the confidence of stakeholders who depend on Allstate’s performance.

Supplier Impacts

We manage environmental and social impacts in our supply chain through a combination of agreements, surveys, scorecards, resource reduction programs and policies (such as our Supplier Code of Ethics). All suppliers doing business with Allstate must adhere to our requirements—stated in the Supplier Code of Ethics—regarding human rights, environmental stewardship, diversity and inclusion, child labor and more. We are in the process of developing key performance indicators and targets to more effectively monitor the influence of our sourcing efforts.

Cybersecurity

Just as reliance on information technology has increased for organizations, 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 courses 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. Starting in 2017, Allstate is now requiring all vendors to complete this course.

Read more about Privacy and Information Security practices.

Resource Reduction and Sustainability Road Map for Suppliers

In 2015, our Sourcing & Procurement Solutions department identified and prioritized the most important sustainable procurement initiatives through a rigorous analysis of resources used at Allstate. As a result of this assessment, we focused our responsible purchasing program on computer equipment, furniture, leased properties, paper products, professional services, software, utilities and our corporate vehicle fleet. For each resource, we identified key performance indicators to include in the supplier scorecard and created Sustainable Procurement Playbooks that provide detailed rationale behind assessing material impacts and how suppliers should respond to the KPIs. We distributed the playbooks to Allstate’s commodity managers in each spend 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.

Supplier Diversity

Allstate is committed to achieving its long-term goal to have 9 percent of the company’s total procurement spend with diverse businesses. Allstate recognizes diverse businesses as enterprises that are at least 51 percent owned and operated by minorities, women, veterans, LGBTQ and disabled. Minority suppliers include: African-American, Hispanic-American, Native American and Asian- and Pacific Islander-American (Asian-Indian included).

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

  • Minority / Women-Owned Business Enterprises
  • Minority-Owned Business Enterprises
  • Women-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

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:

  • The National Minority Supplier Development Council
  • Women’s Business Enterprise National Council
  • National Veteran-Owned Business Association
  • National Gay and Lesbian 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 2016, a number of external organizations recognized our supply chain diversity efforts. We received the following awards:

  • 2016 Corporation of the Year—Chicago Minority Supplier Development Council
  • Top 50 Best Companies for Supplier Diversity 2016—Black Enterprise Magazine
  • Best-of-the-Best Corporations for Inclusion—National Gay & Lesbian Chamber of Commerce and the National Business Inclusion Consortium
  • WE 100 Corporations of the Year—Women’s Enterprise USA Magazine
  • 2016 America’s Top Corporations – Silver—Women’s Business Enterprise National Council

Training the Next Generation of Diverse Suppliers

Allstate is committed to helping develop diverse suppliers through our various Supplier Diversity initiatives. Every year, we host the Allstate Supplier Diversity Exchange. This event gives diverse suppliers and start-up companies 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 contract opportunities. Since the inception of the Exchange in 2006, Allstate has spent over $850 million with diverse suppliers that have participated in the event through 2016.

In addition to the Supplier Diversity Exchange, we also support diverse businesses through the Allstate Mentoring Program. Through the Allstate Mentoring Program, diverse companies are selected to receive training, resources, and networking opportunities aimed at building their business capacity.