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Livingour ValuesMaking an impact2020 ENVIRONMENTAL, SOCIALAND GOVERNANCE REVIEW

WelcomeTable ofcontentsOur customersOur peopleWelcome3Approach to ESG9Our customers12Our people19Our society26Environment and climate change31Corporate governance and practices36Data and references42Materiality Assessment process43Data and disclosures46GRI Standards Index47Contact2020 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REVIEWApproach to ESGOur societyEnvironment and climate changeCorporate governance and practicesData and referencesContactUnited Nations Sustainable Development GoalsStakeholders increasingly expect global businesses to address global developmentchallenges. The United Nations Sustainable Development Goals (SDG's) provide ablueprint for achieving a more sustainable future. Learn more about the SDG's here.542

WelcomeApproach to ESGAbout this reportOur customersA message from David LongOur peopleOur societyA discussion with Francis HyattEnvironment and climate changeOur Identity & ValuesOur businessCorporate governance and practicesOur products and servicesData and referencesContact2020 by the numbersReference the GRI StandardsIndex and the TCFD Report for adetailed overview of disclosures.A message fromDavid LongAbout this reportAt Liberty Mutual, we believe progresshappens when people feel secure.As one of the largest global property and casualtyinsurers, we operate according to high standardsof governance and behavior. Underpinnedby our conviction that insurance is a force forsocial good, we are well positioned to addressenvironmental and social challenges and deliversecurity for employees, customers, businesses,communities and the environment.2020 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REVIEWThis is Liberty Mutual's second annualEnvironmental, Social and Governance (ESG)report, and was published in April 2021. Asour ESG strategy and approach matures anddevelops, so does the evolution of our reportingapproach. In 2020, we conducted our first formalESG materiality assessment, and this reportdiscloses how our key stakeholders rated ESGtopics relevant to our business. It documentsLiberty Mutual’s activities and impact in calendaryear 2020, unless otherwise noted, and isprepared in accordance with the Global ReportingInitiative (GRI) Standards: Core option andcontains select indicators from the SustainabilityAccounting Standards Board (SASB) framework.This year, for the first time, we have also begunreporting on our climate change approach withreference to guidance from the Task Force onClimate-related Financial Disclosures (TCFD).Please email us your thoughts, questions andfeedback at Sustainability@LibertyMutual.com.2020 was a year of remarkablechallenges, but it was also ayear of resilience and strengthfor Liberty Mutual.racial equity; built on our Diversity, Equity andInclusion (DEI) foundation by announcing ourmulti-year DEI plan; continued to innovate tomeet our customers’ needs; and furthered ourcommitment to addressing climate change.Guided by our Identity & Values, we focused onputting people first when they needed us most.I have never felt prouder of this company, ourpeople and the countless ways we came togetherto be there for our customers, our partners andeach other — even when we were physically apart.I’m proud of what we accomplished in 2020 andI’m thankful to every Liberty Mutual employeewho helped us get to where we are today. Aswe embrace this next decade, we are moremotivated than ever to ensuring Liberty Mutualcontinues to make a difference as we tackle theworld’s most pressing environmental, social andeconomic challenges.Even in the face of these unprecedentedchallenges, our commitment to ESG did notwaver. This report reflects how our Valuesguided our ESG journey and highlights how weadvanced efforts to support our customers,employees, partners and communities wherewe live and work. It demonstrates how weresponded to the COVID-19 pandemic; supportedDavid H. LongChairman & CEO3

WelcomeApproach to ESGAbout this reportOur customersA message from David LongSince taking the helm as Liberty Mutual’sfirst Chief Sustainability Officer inDecember 2019, Francis Hyatt reflectson progress made, lessons learned andhow Liberty Mutual continues to evolveits ESG journey.Q. How would you summarize LibertyMutual’s ESG efforts in 2020?A discussionwith FrancisHyattListening, alignment and integration were corepriorities in 2020. We worked with businessleaders across the enterprise to promote a betterunderstanding of what ESG means to our business.We laid the foundation to formalize our ESGstrategy and began developing a framework tofurther address the most complex issues facing ourstakeholders. I’m proud of the progress we made,and I look forward to being an agent for change aswe move the needle on our ESG priorities.Q. How has Liberty Mutual prioritizedsocial efforts in 2020?From the COVID-19 pandemic’s disparate impact oncommunities of color, particularly Pan-Asian, Blackand Latinx communities, to events of racial injustice,last year put a spotlight on many of the socialissues the world is still grappling with at a macroand individual level. As a CSO with a backgroundin human capital management, this weighed onme. I believe that agility, humanity and compassionare foundational for my role, especially regardingthe “S”. Our priority must be the wellbeing of ouremployees, customers and communities.In the summer of 2020, when we were remindedof the painful bigotry and racial inequities thatcontinue to exist in our society, we acted quicklyto support the Black community — from ouremployees, families and friends to our customers2020 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REVIEWOur peopleOur societyA discussion with Francis HyattEnvironment and climate changeOur Identity & Valuesand philanthropic partners. We announced aUS 1 million grant to the Equal Justice Initiative,doubled employee donations to nonprofitscommitted to advancing human rights, andintroduced our multi-year Diversity, Equity &Inclusion plan, which builds on our DEI foundationand has accountability and measurement asmarkers for our success. We also rolled out aneight-week program for U.S. employees to helpdisrupt bias and increase their skill collaboratingacross race and ethnicity.Q. How has Liberty Mutual innovated tomeet customer needs?At Liberty Mutual, we view every aspect of ourbusiness through the lens of innovation to bettersupport our customers. In 2020, we remainedfocused on innovating and designing productsto respond to new and emerging risks. Thisincluded the expansion of our ByMile programthat incentivizes individual policyholders todrive fewer miles and continuing to pursue newways of applying parametric insurance, whichcovers a variety of potentially disastrous naturaloccurrences. We also deployed technology anddigital advances such as drones and satelliteimages in ways we never have before to supportcustomers affected by the wildfires.Q. How has Liberty Mutual addressed theclimate crisis?Being in the insurance industry, we have longunderstood the risk the climate crisis poses toour planet. We see the impact of climate changefirsthand and how extreme weather events areaffecting our policyholders around the world.Climate action remains a steady priority forLiberty Mutual and we’re taking action in threeareas: 1) systemic discovery and mitigation ofrisk; 2) supporting a low-carbon future; and 3)Our businessCorporate governance and practicesOur products and servicesinvesting in enhanced data and analytics. Weknow the role we play in supporting climateresiliency and a low-carbon economy through ourrisk management, underwriting and investmentpractices. For example, we’re reducing theshare of fossil fuel investments within our totalinvestment portfolio, while simultaneously doingour due diligence to expand and improve ourpositions with alternative energy sources andother energy transition opportunities.In 2020 alone, we financed Sunnova EnergyInternational Inc. (Sunnova), a U.S. solar andenergy storage service provider, divested ourremaining thermal coal royalties and partneredwith Jupiter Intelligence Inc. (Jupiter) to betteridentify, measure, manage and mitigate climaterelated risks. These efforts are part of our journeyand are aligned with our coal policy introducedin December 2019, and they demonstrate ourcommitment to supporting a just transition to alow-carbon economy.We also engaged in innovative partnerships tooffer new climate resilience-focused products andto apply state-of-the-art risk analysis for weatherto our decision-making. We became the first U.S.property and casualty insurer to join the UnitedNations supported Principles for ResponsibleInvestment (PRI) as a signatory. We’re committedto continuing to take steps toward our overallenergy transition goals with the aim of achieving alow-carbon future.Data and referencesContact2020 by the numbersreimagine many aspects of our operations todeliver on our mission, and we did not let up onour commitment to continuing to develop thefoundations of our core ESG strategy.We supported our employees, customers andcommunities throughout the pandemic, includingshifting approximately 44,000 employees towork from home, while also providing support foremployees juggling caregiving responsibilities. Wegave more than US 15 million through emergencygrants to global non-profit organizations tosupport immediate COVID-19 relief efforts. Inresponse to COVID-19 lockdowns, we helped ourcustomers safely adapt, shut down and reopentheir operations by providing resources andregular communications.No one could have predicted the events of 2020.Without our strong foundation in ESG and ourcollaboration with stakeholders, our ESG journeycould have come to a disruptive halt. But despitethese unpredictable events, we continued withthe same level of intensity. We stayed our courseand remained dedicated to living our Values andworking towards a more sustainable and just world.In 2020, we ensured that the strongest voice ofinfluence was our motivation to do what we knowis right. I’m proud to have been at the helm of ournewly formed Office of Sustainability during thisunforgettable year and I’m proud of the differencewe all made together.Q. Did you have to adjust your 2020priorities due to COVID-19?Our response to the pandemic was shaped firstand foremost by our Values, and also drivenby input from employees, policyholders andcommunity partners who let us know whatmattered most to them. We quickly adjusted to4