About Our Sustainability Reporting
Approach
At Travelers, we recognize that our long-term success – our ability to create long-term value for our shareholders – depends not only on our financial strategy, business objectives and competitive advantages but also on keeping our promise to be there for our customers, communities and employees. For this reason, we take an integrated approach to sustained value creation. We articulate that approach throughout this website.
Except where noted, the information covered on this site highlights our performance and initiatives in fiscal year 2022. We used multiple frameworks to guide our disclosures. Based on extensive discussions with investors, we have decided to generally align our disclosures with the Sustainability Accounting Standards Board (SASB) Insurance (FN-IN) Industry Standard (maintained by the International Financial Reporting Standards (IFRS) Foundation), the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) and the Global Reporting Initiative (GRI) Standards. In addition, our approach to reporting is informed by the Integrated Reporting Framework (maintained by the IFRS Foundation). Integrated reporting aligns closely with our approach to long-term value creation, in which our business strategy and performance are inextricably linked with fulfilling our commitment to our customers, our communities and our employees. In addition to publishing standalone SASB and TCFD Reports, we provide a Content Index that directs users to disclosures on our integrated website relevant to the GRI standards and Integrated Reporting Framework.
In addition to being vetted and confirmed by our relevant internal subject matter experts, the content on this site was reviewed by our ESG Committee, Disclosure Committee and Legal and Finance departments.
We appreciate all feedback related to this site. If you have any comments or questions, we encourage you to contact Sustainability@Travelers.com.
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 2022, we again took an integrated approach to our shareholder engagement efforts, including with respect to governance, compensation, financial performance and sustainability matters. Through these efforts, in 2022, we engaged with shareholders representing more than 44% of the company’s outstanding shares. Topics of discussion included, among others, our compensation programs; board composition; our comprehensive climate 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 approach to human capital management, including our numerous diversity and inclusion efforts; and our unique corporate culture. 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.
Reporting Frameworks & Standards
This website communicates our company’s value creation story holistically. In addition to being informed by the Integrated Reporting Framework (maintained by the IFRS Foundation), the reporting on this site is generally aligned with several leading frameworks and standards.
Sustainability Accounting Standards Board (SASB) Standards
The SASB standards (maintained by the IFRS Foundation) are industry-specific sustainability accounting standards designed to guide public companies in their disclosure of relevant ESG information to investors. We have included on our site a standalone report corresponding to the SASB Insurance (FN-IN) Industry Standard.
Task Force on Climate-related Financial Disclosures (TCFD) Recommendations
The Financial Stability Board’s TCFD has developed recommendations aimed to produce more effective climate-related disclosures for the benefit of investors, lenders, insurers and other stakeholders. In this standalone report, we provide disclosure consistent with the TCFD recommendations.
Global Reporting Initiative (GRI) Standards
The GRI provides a set of principles and standards by which organizations can report on sustainability issues. See our Content Index for our GRI disclosures.
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