Improve Communities and Generate Attractive Risk Adjusted Returns
Allstate has historically incorporated sustainability considerations across our investment portfolio* to improve communities and generate attractive returns. We are a founding member of Impact Community Capital, which celebrated its 25th anniversary in 2022. As of year-end 2022, we have over $7 billion in responsible investments in segments such as affordable housing, diverse sponsors, education, green bonds, healthcare, natural capital, and renewable energy. Improving climate resilience and inclusive diversity and equity are important factors as we work to improve communities and generate attractive returns.
Where appropriate, we integrate sustainability considerations within our investments analysis and decision-making processes and have established Climate and Inclusive Diversity & Equity as two key pillars important to our investing approach while we continue to meet client and stockholder need by having a positive financial impact. In 2021, we created a dedicated impact investment portfolio for Allstate Insurance Company addressing these two pillars with a dual objective of attractive risk-adjusted returns and quantifiable impact.
Allstate is in the business of helping people recover from catastrophes and it’s in our interest as a business to reduce the impacts of natural disasters. In December 2022, Allstate announced a commitment to achieve net zero emissions for direct, indirect and value-chain greenhouse gas emissions by 2030, other than its investment portfolio and underwriting emissions. By the end of 2025, Allstate will establish a goal for financed emissions. Allstate wants to help the world transition to a lower-carbon economy by considering investments in companies that will provide capital for their transition.
Inclusive Diversity & Equity
Inclusive Diversity and Equity is required to achieve Our Shared Purpose of empowering customers with protection to help them achieve their hopes and dreams. Our investing approach supports this through:
- Diverse Sponsors and Managers: Allstate's investment with diverse managers (external asset managers at least 51-percent owned by minorities, women, veterans, people with disabilities or LGBTQ+ persons) demonstrates our dedication to diversity, equity, and inclusion in both the financial industry and their investment practices, with the aim of driving better outcomes and making a positive impact on society. Allstate’s investment with diverse managers is driven by several key objectives, including seeking enhanced investment outcomes. By working with diverse managers, Allstate aims to achieve superior performance in its investment strategies.
- Low-Income Housing Credits: Since 1997, Allstate has invested capital in Low-Income Housing Tax Credit funds through experienced managers. The primary objective of LIHTC funds is to address the affordable housing shortage by attracting private investment into the development or rehabilitation of rental properties for low-income households. Allstate contributes capital to the development project and, in return, receives an ownership interest in the project and tax credits for use to offset federal income tax liability. Allstate also invests in state LIHTC programs which, in exchange for capital invested, offers tax credits to offset state premium taxes.
*Subject to client investment objectives
For questions and more information about Allstate’s Responsible Investments, contact: