At Allstate, we believe every impact matters. So, while the environmental and social impacts and risks in our supply chain are relatively small compared to industrial or manufacturing companies, we require our suppliers to adhere to the same strict standards that we set for ourselves. We also build partnerships throughout our supply chain to further our sustainability priorities.
We ensure that 90% of our paper purchases meet leading certification standards, and we have several programs in place to responsibly dispose of ink cartridges and computers.
Our Sourcing & Procurement Solutions Department identifies environmentally responsible opportunities in the company’s supply chain streams, and encourages business partnerships with suppliers who implement their own environmental policies. Our procurement professionals purchase recyclable, recycled and refurbished products and materials whenever these products are available, economical and suitable. For example, we ensure that 90 percent of our paper purchases meet leading certification standards, and we have several programs in place to responsibly dispose of ink cartridges and computers.
We do not currently incorporate specific requirements in all supplier contracts; however, sustainable practices are taken into consideration while evaluating suppliers during the sourcing process. We expect all of our suppliers to operate in an ethical fashion and adhere to all national and international laws and standards as requirements for doing business with Allstate. In addition, we require some suppliers, such as auto-body shops, to provide certification that they have completed proper safety and pollution training.
Occasionally, we conduct on-site visits for our key suppliers. For example, when we visit repair shops that are part of The Good Hands Repair Network—which includes 3,500 prequalified repair shops across the country—we observe shop practices and look for safety hazards. If risks are identified, the shop is asked to immediately correct them.
We are working to strengthen our policies on sustainable procurement to guide both our internal and external procurement decisions. We will also continue to proactively ensure that our suppliers are investing in sustainable business practices such as energy-, emissions- and paper-reduction efforts, as well as community involvement activities. Suppliers are asked to report such efforts to us each year.
To learn more, visit our Supplier Code of Conduct.
Small and diverse businesses are the engine of the American economy, generating economic growth, jobs, training and innovation. To help support such companies, Allstate established a program in 2004 that actively seeks out diverse suppliers and invites them to compete for our business.
The program is led by a dedicated full-time, senior-level executive and is integrated across all levels of the company. When procurement-spend opportunities arise, Allstate managers scan the marketplace for qualified (well-established and financially stable) diverse suppliers and invite them to participate in the bidding process. If the suppliers are interested, they enter Allstate’s rigorous strategic sourcing process alongside all competing vendors, of which the most qualified will win the business.
To further broaden our diverse supplier-base, Allstate hosts annual Supplier Diversity Exchanges; face-to-face sessions bringing diverse companies and Allstate buyers together. We have initiated more than 60 business contracts as a result of these events.
In 2012, Allstate spent $304 million with 2,224 businesses owned by minorities, women, veterans, or members of the LGBT community.
This represents 6.6 percent of total supplier-spend. Our goal is to increase this percentage to 9 percent by 2015.
Because our greatest challenge is finding diverse suppliers that have capacity or can scale their services or products to meet our needs nationwide, a main focus of our mentoring program is giving suppliers the knowledge and resources they need to be able to compete and deliver on a corporate scale. In response to another challenge—that incumbent suppliers often have an advantage—we’ve expanded our procurement team dedicated to interacting with the diverse community.
For example, we have developed a process that enables us to identify suppliers owned by minorities, women, LGBT individuals or veterans that are qualified and/or certified to do business with Allstate, and ensure those companies are given fair and equal access to compete for business. This sourcing process has helped us greatly increase the number of diverse suppliers with which we do business.
Allstate’s diverse-supplier strategy creates healthy competition for the goods and services we buy. It also helps small and diverse businesses grow. Those companies, in turn, provide jobs and services that strengthen communities, increase prosperity for others and, eventually, spur greater demand for our products.
Allstate uses criteria established by the United States Small Business Administration (SBA) to define and target “diverse” suppliers. We evaluate progress by measuring our targeted spend in the first five of the 13 categories listed below. We also measure our inclusive spend in all 12 categories identified by the SBA as diverse and of special interest in meeting statutory obligations. These include:
- Minority/Women Business Enterprise (M/WBE)
- Minority-Owned Business Enterprise (MBE)
- Women-Owned Business Enterprise (WBE)
- Disabled Business Enterprises (DIS)
- Disabled Veterans Business Enterprises (DVET)
- Disadvantaged Business Enterprises (DBE)
- Historically Black Colleges or Universities (HBCU)
- Historically Underutilized Business Zone (HUB Zone)
- Small Business Administration 8(a) Program (SBA8(a))
- Small Disadvantaged Business Enterprise (SDB)
- Veteran-Owned Business Enterprise (VET)
- Small Business Enterprise (SBE)
- Gay Lesbian Bisexual Transgender-Owned Business Enterprises (GLBT)
Memberships related to supplier diversity
Allstate works with select organizations to help identify successful practices in supplier diversity, conduct national benchmarking and connect with diverse suppliers at a variety of forums. Allstate is a member of:
- National Minority Supplier Development Council
- Women Business Enterprise National Council
- National Hispanic Corporate Council
- Department of Veteran Affairs Center for Veteran Enterprise
- National Gay and Lesbian Chamber of Commerce
- United States Hispanic Chamber of Commerce