Approach & Strategy
Liberty Mutual’s purpose to help people embrace today and confidently pursue tomorrow extends to all our stakeholders — customers, employees, investors, regulators and the communities where we work and live. To fulfill this purpose, we rely on a thoughtful and thorough approach to managing sustainability.
Strategic Pillars
Our sustainability approach is guided by four strategic pillars of focus:
| Increase Customer ResilienceHelp our customers adapt to and mitigate the risks affecting their lives and businesses. |
| Enable Sustainable GrowthSupport a more equitable and responsible climate transition and integrate ESG into our day-to-day decision making. |
| Improve Lives & CommunitiesAdvance security, further opportunity and strengthen communities. |
| Advance Diversity, Equity & Inclusion (DEI)Embed DEI across all aspects of our business. |
Sustainability Principles
Based on our Identity & Values, we articulated five principles that codify our approach to sustainability. We are applying these principles as we continue to embed ESG factors across our operations, businesses and investments.
Learn more about our Sustainability Principles
Materiality Assessment
In 2023, we revisited our material topics through a survey of internal experts representing Liberty Mutual’s global sustainability working groups and extensive external research. Over the past three years, our sustainability infrastructure has matured with cross-functional working groups embedded throughout the business, reporting into our central sustainability governance structure. Members of these working groups have a deep and sophisticated understanding of our sustainability impacts, risks and opportunities and those of the insurance industry as a whole. Their feedback provided valuable insight from this new bank of global knowledge, representing views from 12 countries across four continents, spread across each of our business units, as well as core business functions including Risk Management, Finance, Legal and Talent & Enterprise Services.
The results confirmed the continued relevance of the set of 14 material topics we assessed in 2020, but also underscored the growing urgency of two of those topics: Climate Change and Global Compliance & Ethics. Since the last analysis in 2020, the impacts of climate change on our business and on communities globally have grown more acute and our internal experts confirmed the topic’s place at the top of our sustainability priorities. We continue to see Global Compliance & Ethics as the bedrock of our approach and as a prerequisite to performance in all other areas of the business.
Looking toward the future, two new subjects emerged from the survey, as well as from our regular dialogue with external stakeholders – both related to, but importantly distinct from, the topic of climate change: Climate Justice and Nature-Related Risks. Cross-functional teams at Liberty Mutual are exploring both issues and working to build more formal strategies to address them. Both issues will be on the agenda for the ESG Executive Committee in 2024.
Learn more about Materiality Assessment
Employee Development and Well-being
We take pride in investing in the learning, development, training and mentorship of our employees. We do this through opportunities for personalized training and development and targeted outreach to ensure a diverse pipeline of talent.
Career development is a lifelong process, made up of continuous learning, connections and work experiences. We equip our employees with the tools they need to continue their career trajectories through coaching, mentorship and resources for learning.
We support fair and equitable performance evaluations while enabling Liberty Mutual’s Identity & Values and pay for performance philosophy. In 2023, we looked extensively at external best-in-class performance practices. Together with over 500 managers and employees, we then co-designed an enhanced performance experience to link each employee’s work directly to our common enterprise purpose and goals.