Company also publishes significantly enhanced Task Force on Climate-related Financial Disclosures Report
HARTFORD, Conn.–(BUSINESS WIRE)–The Travelers Companies, Inc. (NYSE: TRV) today published its 2022 Sustainability Report, which discusses the inextricable link between the company’s mission of creating shareholder value and its purpose of taking care of the people it is privileged to serve – its customers, communities and employees. The report features a number of corporate initiatives, as well as the company’s latest reports consistent with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) and the Sustainability Accounting Standards Board (SASB) Insurance Industry Standard.
“We take a holistic approach to sustained value creation by managing the risks and capitalizing on the opportunities associated with a broad array of economic, operational, environmental, social and governance factors relevant to our company and industry,” said Yafit Cohn, Chief Sustainability Officer at Travelers. “Our report showcases this thoughtful approach, which we believe helps us create inclusive prosperity.”
The report provides an in-depth review of the 16 topics the company has identified as its key drivers of sustained value: Business Strategy & Competitive Advantages, Capital & Risk Management, Climate Strategy, Community, Customer Experience, Data Privacy & Cybersecurity, Disaster Preparedness & Response, Diversity & Inclusion, Eco-Efficient Operations, Ethics & Responsible Business Practices, Governance Practices, Human Capital Management, Innovation, Investment Management, Public Policy and Safety & Health.
Notably, Travelers’ 2022 Sustainability Report includes a new section titled “Responsible Business Practices,” which details the company’s robust governance and controls designed to ensure that its pricing is actuarially sound and that its underwriting and pricing practices comply with all applicable laws. Among other things, this section includes the company’s Responsible Artificial Intelligence (AI) Framework, which sets forth the foundational principles guiding Travelers’ development and use of AI, advanced analytics and modeling.
Additional highlights from this year’s report include:
- The company has reduced its Scope 1 (direct) and Scope 2 (indirect) emissions by 55% since 2011, reinforcing its commitment to become carbon neutral across its owned operations by 2030.
- The company responded to 64 catastrophe events and more than 100,000 catastrophe notices of loss during 2022, and approximately 90% of property claims arising out of those events were resolved within 30 days.
- Travelers is one of the largest investors in municipal bonds, providing funding to approximately 950 different municipal issuers across the United States. These bonds support water and sewer projects ($5 billion), K-12 education ($10 billion) and higher education ($4.2 billion). The company also owns $2.8 billion in fixed income securities classified as “green,” “sustainability” and “sustainability-linked” bonds by Bloomberg L.P.
- Over the past decade, Travelers and the Travelers Foundation have provided more than $230 million in gifts to local communities.
- Of the corporate carriers evaluated for customer experience by Marsh McLennan, the largest insurance broker in the world, Travelers received the highest Net Promoter Score for overall experience.
- More than 12,000 employees – close to 40% of the company’s total population – belong to at least one of the company’s eight Diversity Networks, which are voluntary groups led by employees dedicated to fostering a diverse and inclusive work environment.
Travelers also meaningfully expanded its TCFD Report to include, among other things:
- Enhanced disclosure with respect to the composition of the company’s investment portfolio, including a quantification of the greenhouse gas (GHG) emissions for the portion of the portfolio where some data is available, as well as a discussion of the company’s multipronged approach to addressing financial risks posed by GHG emissions on its investment portfolio.
- Enhanced disclosure with respect to the composition of the company’s business mix, particularly as it relates to the energy industry.
- An alternative view to understanding the GHG emissions related to the company’s underwriting portfolio by disclosing the company’s premiums over time with respect to the four most carbon-intensive sectors as classified by Standard & Poor’s, which have consistently represented a very low percentage of the company’s underwriting portfolio and have meaningfully declined over time.
In addition, Travelers’ latest TCFD Report discusses the company’s ongoing efforts to pursue business related to renewable energy as trends toward clean energy sources continue to accelerate. The company’s Global Renewable Energy Practice, which is designed to facilitate innovation and the growth of renewable energy businesses, has grown at a compound annual rate of 27% over the past four years, with revenue up more than 107% since 2019.
Cohn added: “With our 2022 TCFD Report, we’re pleased to provide shareholders with additional information, building on already comprehensive disclosures regarding how we manage climate risk on both sides of our balance sheet while supporting the transition to a lower-carbon economy.”
To learn more about Travelers’ sustainability efforts, visit sustainability.travelers.com.
The Travelers Companies, Inc. (NYSE: TRV) is a leading provider of property casualty insurance for auto, home and business. A component of the Dow Jones Industrial Average, Travelers has more than 30,000 employees and generated revenues of approximately $37 billion in 2022. For more information, visit Travelers.com.
Courtney Garro, 860-277-8719