The Hartford

In April 2022, The Hartford, a venerable U.S. insurer with over 200 years of history, set an ambitious goal to achieve net-zero greenhouse gas emissions across its businesses by 2050. This commitment aligns with the Paris Climate Accords and is part of a broader shift in corporate America away from the Milton Friedman model of shareholder primacy to stakeholder capitalism. Recognizing that climate change could significantly impact its customers and business, The Hartford had already reduced its greenhouse gas emissions significantly since 2007 and had ceased insuring companies heavily involved in thermal coal mining and tar sands extraction by 2019.

To explore practical approaches to achieving its net-zero goal, Claire Burns, The Hartford’s Chief Marketing Officer, collaborated with Yale’s Program on Stakeholder Innovation and Management. This collaboration utilized a "stakeholder design lab" method, which involved mapping out relevant stakeholders' needs and expectations and considering constraints. The Hartford identified eight key stakeholder groups, including customers, investors, regulators, and employees, and aimed to develop solutions that balanced these diverse requirements.

The lab resulted in three innovative proposals that underscored the complexity and collaborative effort required to meet the net-zero challenge, as well as the value of integrating stakeholder perspectives into strategic planning.