Policies and practices
Over the past several years, we implemented many resource reduction and recycling initiatives related to our buildings, vehicles and business supplies. We encourage electronic customer communications to cut costs and reduce paper waste.
In 2010, Allstate set a goal to achieve a 20% absolute energy-use reduction within our owned portfolio (approximately 39% of all locations at the time) against our 2007 baseline by 2020. Thanks to efforts across the enterprise, we surpassed that 2020 goal in 2014. Now, we’ve set our sights on a science-based target, which will help ensure our business goals are in line with a lower-carbon future.
In the meantime, we’re reducing consumption by consolidating office space, recapturing heat energy as a byproduct of Allstate’s data center operations and using energy-efficient equipment and systems. This effort will ultimately offset power at 50% of owned facilities with 100% renewable energy credits by 2023. Examples of this include HVAC equipment and controls, reduced-lighting power density designs and daylight harvesting in Allstate’s offices. We now lease or own more than 362,000 square feet of LEED-certified office space.
Allstate’s goal is to implement centralized waste, a system for properly separating and disposing of recyclables and landfill waste, across all new locations and 100% of existing locations by 2023.
We are taking every precaution to ensure the safety of our employees and contractors at all Allstate locations. We are reimagining workspaces with social distancing in mind. We expect that current density of employees in buildings could drop 50% when they return to offices. With many Allstaters being hybrid and home-based, we’ll use desk reservation systems rather than giving every employee a dedicated desk space.
Programs and Performance
Allstate’s vehicle fleet
Allstate operates a fleet of approximately 3,000 sedans and SUVs to support the business travel requirements of the Claims, Distribution and Service BusinessesMarket Facing Businesses teams. In 2020, we reduced the use of our fleet and relied more on aerial surveys for claims data, in order to reduce in-person interactions. Several years ago, we started to use more hybrid vehicles to improve fuel economy and reduce CO2 output. As of early 2020, our fleet was about 50% hybrid. We encourage employees to choose a hybrid sedan by lowering the associated personal use fee. Allstate’s goal is to have 100% hybrid vehicles by 2025.
We make every effort to keep documents electronic. Allstate has a Print Optimization and Paperless Task Force made up of business unit leaders from across the company. It monitors and tracks employee and customer printing and paper use and works with Corporate Brand to make employees aware of the operational and ecological costs of printing.
For necessary paper documents, Allstate maintains a secure program so these can be shredded and recycled. Through third-party vendors, Allstate employees recycled 3.84 million pounds of paper during 2019-2020. This helped save 32,878 trees from being used for new paper production.
In 2018, we implemented a “Follow Me Print” program that links all print jobs to employee badges. To have documents printed, the employee scans their badge at the printer. If a print job is not retrieved within 72 hours, it disappears from the system. In 2020, the number of abandoned and deleted print jobs equated to about 1,508,253 sheets, or 3,017 reams of paper.
We encourage electronic customer communications to help cut costs and reduce our footprint and theirs. Allstate has three paperless initiatives for customers: eSignature, ePolicy and eBill. Customers can sign up for these free services through MyAccount, our online customer self-service hub. Since 2015, Allstate has invested $9.5 million toward helping customers become more paperless by providing an improved digital experience and redesigning documents so they require fewer pages. Over 49.7% of customer policies are enrolled in ePolicy, and nearly 44.9% of customer policies are enrolled in eBill. New business trends higher toward digital adoption, where 68.7% of new customers are enrolled in ePolicy and 49.5% are enrolled in eBill.
Overall, we reduced paper usage by employees 98% and by customers 41% relative to our 2012 baseline. 2020 employee reductions were enhanced by fewer people working in office.
Small electronics recycling
Allstate replaces about 2,400 small electronic items each month, totaling 29,145 in 2020. Of these, approximately 140 items are in condition to be salvaged or recycled. Allstate partners with Clover Wireless to salvage small electronics. If there is no salvage value or the data cannot be removed, the item is recycled. More than 800 types of small electronics qualify to be salvaged. Clover recycles all items or parts that cannot be salvaged, reducing the number of small electronics we dispose of in landfills.
The magnitude of our global purchasing activity means our procurement practices have far-ranging effects and we can positively influence the businesses from which we source products and services. By understanding how suppliers manage 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.
We manage environmental and social impacts in our supply chain through agreements, surveys, scorecards, resource reduction programs and policies. We work with suppliers to accelerate environmental and social improvements across the value chain.
As stated in the Supplier Code of Business Conduct, 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. The Sourcing & Procurement Solutions department focuses our responsible purchasing program on our key commodity areas: computer equipment, furniture, leased properties, paper products, professional services, software, utilities and the corporate vehicle fleet.
The main elements of the responsible purchasing program include:
- Sustainability questionnaires: Category-specific surveys containing key performance indicators (KPIs) 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.
Sourcing & Procurement Solutions includes a sustainable procurement lead who develops and implements ESG-specific practices in our supply chain. This leader identifies sustainability risks and opportunities in the supply chain and develops best practices for product and service categories prioritized by the needs of the business.
In 2020, Sourcing & Procurement Solutions engaged CDP Supply Chain, a global disclosure system that enables corporate purchasers to measure and manage suppliers’ environmental impact. This will help us better understand our carbon footprint. We invited 126 suppliers to disclose their environmental data via the CDP Climate Change questionnaire and got an 85% response rate. By measuring suppliers’ greenhouse gas emissions as a contributor to our total carbon footprint, we can find ways to minimize our environmental impact. We plan to collaborate with select strategic suppliers on GHG emissions reduction projects that generate mutual business value in addition to potentially imposing incentives or penalties to reinforce accountability and desired behaviors by suppliers.
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.