About Our Sustainability: Stakeholder Engagement & Topic Prioritization

We regularly engage with our investors, our customers, our employees, our agents and brokers, regulators, rating agencies and other stakeholders on business issues and environmental, social and governance (ESG) topics of interest to them. In 2023, we again took an integrated approach to our shareholder engagement efforts, including with respect to governance, compensation practices, financial performance, corporate strategy and sustainability matters. Through these efforts, in 2023, we engaged with shareholders representing more than 40% of the company’s outstanding shares. Topics of discussion included, among others, board composition and refreshment; our comprehensive climate strategy and the board’s oversight of that strategy; our disciplined risk/reward approach to underwriting; our thoughtful investment philosophy that focuses on stable and appropriate risk-adjusted returns; the robust governance, processes and controls we have in place with respect to underwriting and pricing; our long-term approach to human capital management, including our numerous diversity and inclusion initiatives; our unique corporate culture; and our executive compensation program. We also continued to solicit feedback from our institutional investors with respect to our sustainability reporting.

Our approach to sustainability reporting, the frameworks and standards with which we have aligned our disclosures and the specific topics we cover on our site were informed by our extensive engagements with our shareholders. In advance of preparing our first sustainability site, which we launched in May 2019, we engaged with institutional investors representing approximately 50% of the company’s outstanding shares at the time to understand their views with respect to ESG disclosure.

We also conducted a prioritization exercise at that time to help focus our ESG reporting on the topics most relevant to our industry, our business and our stakeholders. To identify a universe of ESG topics potentially relevant to our industry, we reviewed internal documents, industry and peer reporting, analyses by prominent ESG data providers and sustainability reporting frameworks (SASB Standards, GRI Standards). After identifying the potentially relevant topics, we prioritized them based on a series of internal group discussions, each dedicated to a distinct stakeholder group – Travelers, investors, customers, employees, and agents and brokers. The dialogues were supplemented by evidence from industry sources and results of prior stakeholder feedback (e.g., customer, agent and broker, and employee engagement surveys), including feedback from our investor interviews.

Working with our management-level ESG Committee, as well as the internal dialogue participants, we then refined the list of priority topics to the following 16 topics:

Our 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
• Safety & Health

Click on the above links for a discussion of how each topic contributes to sustained value creation at Travelers.