We are dedicated to being good environmental stewards of the resources required to run our business. With most of our employees working remotely for the foreseeable future, we’re incorporating more digital capabilities into our business activities and significantly reducing our physical footprint.
Policies and practices
Over the past several years, we launched many resource reduction and recycling programs related to our buildings, vehicles and business supplies.
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-aligned target, which will help ensure our business goals are in line with a lower-carbon future and reduce greenhouse gas emissions (GHG).
GHG emissions in metric tonnes*
Bar graph with tonnes of emissions (scope 1, 2, and 3) from 2017-2020
*Scope 3 (Business Travel) includes air travel, rental cars, US hotels and employee personal vehicle mileage. Reported values may be impacted by rounding.
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 40% of owned facilities with 100% renewable energy credits and Carbon Offsets 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 465,674 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. As of 2021, we have made great progress on this goal and are on track to complete it ahead of schedule.
We ensure the safety of employees and contractors at all Allstate locations. Refer to our website for more information on our response to COVID-19.
Programs and performance
Allstate’s vehicle fleet
Allstate operates a fleet of approximately 3,000 sedans and SUVs to support business travel requirements across the company. Several years ago, we started to use more hybrid vehicles to improve fuel economy and reduce our CO2 output, and 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. Allstate’s goal is to have 100% hybrid vehicles by 2025. As of 2021, our fleet is about 50% hybrid.
Allstate makes every effort to keep documents and communications electronic. Initiatives including eDelivery, Digital Transformation, the Digital Claim File program, Record Center reduction and many others highlight Allstate’s paper reduction.
Allstate’s eDelivery and Document Management teams work together with our Allstate Print Center and business unit leaders across all of our market-facing businesses, adding digital capabilities and reducing printing and paper use. In 2019-21, mailings were reduced by 12% (18 million mailings), paper use by 20% (1.3 million pounds of paper) and envelope use by 17% (33 million envelopes).
Allstate has also made significant progress toward eliminating paper consumption by digitizing the procurement process that supports Allstate’s $14 billion of spending with suppliers and other third parties. Allstate suppliers can submit invoices electronically instead of on paper. An e-signature system is used for electronic execution of 4,000 contracts each year. Our e-sourcing system enables us to solicit and receive proposals from suppliers electronically, and our e-catalog capabilities have replaced paper-based supplier catalogs. In the future, suppliers will be able to electronically submit supporting documentation, such as certificates of insurance.
Allstate maintains a secure program to shred and recycle. In 2019, record retention for claim files was reduced from 25 to 7 years, shrinking our Record Center footprint. Allstate shredded 1.5 million boxes of records (30 million pounds of paper) and minimized Record Center operating costs from $6.2 million in 2016 to $1.6 million in 2021. Allstate continually reviews record retention policies. In 2020-21, 3.3 million pounds of paper was recycled. The transition to a work-from-home model has dropped employee printing by 80% vs. pre-pandemic levels.
Customer satisfaction increases by 30 points when paperless options are offered. Allstate’s eDelivery and Document Management teams therefore offer three paperless initiatives for customers: eSignature, ePolicy and eBill. Customers are prompted through the “Finish Your Policy Set-up” email to use the link to our online self-service hub to sign up for these free services. At the end of 2021, 57.9% of all customers’ Allstate Property-Liability policies were enrolled in ePolicy, and 47.5% in eBill. In the same time period, of all new customers, 64.4% enrolled in ePolicy, 46.5% enrolled in eBill and 67.8% used eSignature and upload functionality when this was required.
Allstate redesigned documents to reduce the number of pages mailed and since 2015 has invested $11 million improving customers’ digital, paperless experience.
Small electronics recycling
Allstate replaces about 2,400 small electronic items each month, totaling 28,000 in 2021. Of these, approximately 150 items are in condition to be salvaged or recycled. Allstate partners with Clover Wireless to salvage small electronics. 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 that end up in a landfill.
The magnitude of our global procurement 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 environmental stewardship, diversity, equity & inclusion, regulatory compliance and operational risks, 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 procurement decisions with environmental and social sustainability. The Sourcing & Procurement Solutions department focuses our responsible procurement program on 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 procurement program include:
- Integrating environmental, social and governance (ESG) criteria in our end-to-end procurement processes and systems.
- Measuring, managing, and reporting on supplier key performance indicators (KPIs) and metrics.
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 2021, Sourcing & Procurement Solutions engaged CDP Supply Chain, a global disclosure system that enables corporate purchasers to measure and manage their suppliers’ environmental impact. This will help us better understand our carbon footprint. We invited 164 suppliers to disclose their environmental data via the CDP Climate Change questionnaire and the response rate was 90%. Of the responding suppliers, 61% have made a commitment to setting an emissions reduction target.
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.