![\"allstate-svg\"](\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/Allstate.svg_.png\")
<\/a><\/h5>\n<\/h5>\nExhibit 1: Allstate\u2019s Relative Materiality \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0<\/strong><\/h5>\n <\/p>\n
Climate change is projected to increase the frequency and severity of extreme weather events. As ![\"allsate\"](\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/Allsate-1.jpg\")
<\/a>a consequence, economic losses caused by natural catastrophes could increase significantly. [1]\u00a0Given its operating model, increased frequency and severity of natural catastrophes and weather events impact not only the short-term profitability of Allstate, as claims increase for floods, hurricanes and fires, but also the long-term profitability, as historical risk models become obsolete. Allstate\u2019s success depends on their ability to properly price, model, and underwrite climate-related risks, and thus climate change is a critical and timely issue for Allstate and its stakeholders.<\/p>\n <\/p>\n
<\/h6>\nSource:\u00a0Allstate Corporate Responsibility. http:\/\/corporateresponsibility.allstate.com\/corporate-responsibility-strategy\/materiality-and-stakeholder-engagement.<\/h6>\n
Allstate’s first response to climate change risks has been to limit their exposure to high-risk areas. As part of their catastrophe management plan, Allstate has decreased their exposure of personal homeowners and landlord package policy in coastal areas. For example, Allstate ceased writing new homeowner and landlord package policy business in California in 2007, and in Florida in 2011. [2] Allstate’s CEO\u00a0Tom Wilson predicted losses from natural disasters such as Hurricane Mathew, will likely be lower than its competitors, given its prior decision to lower marker share in Florida, thus reducing exposure. [3]\u00a0This is an undesirable solution, since it merely limits Allstate’s’ insurance availability and shifts risk to households.<\/p>\n
Therefore, Allstate has decided to go beyond risk-management and take a a more active stance against climate change through three initiatives: (1) Improve, (2) Innovate, and (3) Influence.<\/p>\n
Can Allstate, which touches 16 million households nationwide, be the advocate and role model for climate-reducing tactics we’ve been hoping for?<\/strong><\/span><\/em><\/h4>\nImprove: Reduce Emissions\u00a0Through Business Operations<\/span><\/u><\/strong><\/h3>\nExhibit 2: Allstate\u2019s Energy Reduction<\/h5>\n
![\"capture-2\"](\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/capture-2.jpg\")
<\/a>Allstate created a Sustainability Council, composed of senior leaders from across the company, which meet 3 times a year, to guide environmental efforts and to provide opportunities for its employees to engage in sustainability strategies. In 2010, Allstate pledge to reduce its energy use by 20%, and the company surpassed this goal in 2014, six-years ahead of scheduled.\u00a0\u00a0[4]<\/p>\n<\/h5>\n<\/h6>\n<\/h6>\nSource:\u00a0Allstate Corporate Responsibility | Energy, Emissions and Waste. http:\/\/corporateresponsibility.allstate.com\/environment\/energy-emissions-and-waste.<\/h6>\n
Exhibit 3: Allstate\u2019s Customer Paperless Initiative (% of Usage)<\/strong><\/p>\nIn addition to energy conservation, Allstate identified paper as its largest source of potential waste and thus has focused o![\"capture\"](\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/Capture.jpg\")
<\/a>n significantly reducing paper usage. It\u2019s reduced internal paper use through awareness campaigns and tracking mechanism. It has also reduced customers\u2019 use through three paperless initiatives (ePolicy, eBill, My Account). All of these initiatives not only reduce Allstate’s environmental footprint and its costs, but also incentivizes\u00a0consumers to reduce their own footprint. [4]<\/p>\n\u00a0Source:\u00a0Allstate Corporate Responsibility | Energy, Emissions and Waste. http:\/\/corporateresponsibility.allstate.com\/environment\/energy-emissions-and-waste.<\/h6>\n
In 2015, Newsweek<\/em> magazine named Allstate one of the World\u2019s Greenest Companies (#81) for the sixth time. Allstate was also recognized as a leader among S&P 500 companies for their disclosure of climate change data by CDP, the world\u2019s only global environmental disclosure system. They scored 97 out of 100 in 2014 report, the highest score the company has received since it started reporting in 2007.<\/p>\n <\/p>\n
Innovate: Products and Services<\/u><\/strong><\/span><\/h3>\nA unique opportunity arises for insurance companies to become more than just low-emission companies. Allstate has begun developing creative insurance products that will further incentivize clients to reduce emissions, while benefiting from the product sales.<\/p>\n
<\/p>\n
Climate change is projected to increase the frequency and severity of extreme weather events. As <\/p>\n Allstate’s first response to climate change risks has been to limit their exposure to high-risk areas. As part of their catastrophe management plan, Allstate has decreased their exposure of personal homeowners and landlord package policy in coastal areas. For example, Allstate ceased writing new homeowner and landlord package policy business in California in 2007, and in Florida in 2011. [2] Allstate’s CEO\u00a0Tom Wilson predicted losses from natural disasters such as Hurricane Mathew, will likely be lower than its competitors, given its prior decision to lower marker share in Florida, thus reducing exposure. [3]\u00a0This is an undesirable solution, since it merely limits Allstate’s’ insurance availability and shifts risk to households.<\/p>\n Therefore, Allstate has decided to go beyond risk-management and take a a more active stance against climate change through three initiatives: (1) Improve, (2) Innovate, and (3) Influence.<\/p>\n Exhibit 3: Allstate\u2019s Customer Paperless Initiative (% of Usage)<\/strong><\/p>\n In addition to energy conservation, Allstate identified paper as its largest source of potential waste and thus has focused o In 2015, Newsweek<\/em> magazine named Allstate one of the World\u2019s Greenest Companies (#81) for the sixth time. Allstate was also recognized as a leader among S&P 500 companies for their disclosure of climate change data by CDP, the world\u2019s only global environmental disclosure system. They scored 97 out of 100 in 2014 report, the highest score the company has received since it started reporting in 2007.<\/p>\n <\/p>\n A unique opportunity arises for insurance companies to become more than just low-emission companies. Allstate has begun developing creative insurance products that will further incentivize clients to reduce emissions, while benefiting from the product sales.<\/p>\n<\/a>a consequence, economic losses caused by natural catastrophes could increase significantly. [1]\u00a0Given its operating model, increased frequency and severity of natural catastrophes and weather events impact not only the short-term profitability of Allstate, as claims increase for floods, hurricanes and fires, but also the long-term profitability, as historical risk models become obsolete. Allstate\u2019s success depends on their ability to properly price, model, and underwrite climate-related risks, and thus climate change is a critical and timely issue for Allstate and its stakeholders.<\/p>\n<\/h6>\n
Source:\u00a0Allstate Corporate Responsibility. http:\/\/corporateresponsibility.allstate.com\/corporate-responsibility-strategy\/materiality-and-stakeholder-engagement.<\/h6>\n
Can Allstate, which touches 16 million households nationwide, be the advocate and role model for climate-reducing tactics we’ve been hoping for?<\/strong><\/span><\/em><\/h4>\n
Improve: Reduce Emissions\u00a0Through Business Operations<\/span><\/u><\/strong><\/h3>\n
Exhibit 2: Allstate\u2019s Energy Reduction<\/h5>\n
<\/a>Allstate created a Sustainability Council, composed of senior leaders from across the company, which meet 3 times a year, to guide environmental efforts and to provide opportunities for its employees to engage in sustainability strategies. In 2010, Allstate pledge to reduce its energy use by 20%, and the company surpassed this goal in 2014, six-years ahead of scheduled.\u00a0\u00a0[4]<\/p>\n<\/h5>\n
<\/h6>\n
<\/h6>\n
Source:\u00a0Allstate Corporate Responsibility | Energy, Emissions and Waste. http:\/\/corporateresponsibility.allstate.com\/environment\/energy-emissions-and-waste.<\/h6>\n
<\/a>n significantly reducing paper usage. It\u2019s reduced internal paper use through awareness campaigns and tracking mechanism. It has also reduced customers\u2019 use through three paperless initiatives (ePolicy, eBill, My Account). All of these initiatives not only reduce Allstate’s environmental footprint and its costs, but also incentivizes\u00a0consumers to reduce their own footprint. [4]<\/p>\n\u00a0Source:\u00a0Allstate Corporate Responsibility | Energy, Emissions and Waste. http:\/\/corporateresponsibility.allstate.com\/environment\/energy-emissions-and-waste.<\/h6>\n
Innovate: Products and Services<\/u><\/strong><\/span><\/h3>\n