Travelers

Travelers performs fairly well in areas such as governance and stewardship. Not only does it assign decision-making and oversight responsibility for its sustainability strategy to its highest governance body, it also assigns responsibility for implementing its sustainability strategy to specific functions, teams or committees. In terms of stewardship, it has a stewardship policy that supports environmental transitions and social best practices in line with its sustainability strategy and covers client and other stakeholder engagement as well as advocacy and partnerships. Travelers also transparently identifies the key sectors, clients and investees to engage with on climate issues.

While Travelers does not necessarily demonstrate leading practices in other areas such as lobbying, human rights etc., it does have some level of disclosures in these aspects. For instance, it discloses its approach to lobbying and political engagement in a policy statement and has a publicly available policy statement committing it to respect human rights. Climate-wise, it monitors its Scope 1-2 emissions and provides at least one example of how its products, services and capital supports the climate adaptation and resilience of society.

There is scope for Travelers to enhance its disclosures in various areas, particularly with regards to its organisational carbon footprint, provision of financing towards underrepresented groups and sectors, low and lower-middle income countries and fossil fuels. While Travelers monitors scope 3 emissions beyond financed emissions, it could cover additional categories and provide a rationale for those excluded. Additionally, Travelers does provide some details regarding the methodology applied in their carbon footprint calculation but has the opportunity to cover all aspects including emissions coverage for each category, data types, sources for applied emission factors and reference to applied standard. It is also recommended for Travelers to disclose that it has established a transition plan covering its own operations, supply chain and portfolio. Financing-wise, it could consider disclosing the breakdown of clients and/or beneficiaries by income group and its processes for avoiding divestment from low-income and lower-middle countries as unintended consequences of its sustainability strategies and targets. While it discloses the % of fuels in its domestic written premiums, it has an opportunity to disclose the figures for the entirety of its operations (e.g. global) as well.

Another area of opportunity for Travelers to improve its disclosures is in relation to the ILO Fundamental Rights at work. While Travelers has a publicly available policy statement committing it to respect specific workers’ rights, it has an opportunity to reference all the ILO fundamental rights at work. Similarly, although Travelers expects its suppliers to respect specific workers’ right, it has an opportunity to reference all the ILO fundamental rights at work. Lastly, it is recommended that Travelers discloses that its risk assessment process includes risks associated with the ILO fundamental rights at work for those impacted by its provision of products, services and capital and its process for mitigating such risks when identified.

This scorecard refers to information in English which was publicly available by July 15 2024. AuM and Total assets are stated in USD for comparability and have been calculated based on reported local currency values multiplied by applicable IMF currency converter values.