CARING FOR THE ENVIRONMENT

As the first U.S. president to designate land for public use and preservation, our namesake Abraham Lincoln was a pioneer in conserving our nation’s natural resources. We follow his example in our work to manage our environmental impacts.

MANAGING OUR IMPACT

Lincoln Financial has been, and will continue to be, committed to understanding, assessing and reducing our energy use over time. Long before energy efficiency measures were reported in corporate responsibility reports, we were engaging in cutting-edge measures to reduce the energy we consume in our buildings.

Our first, large scale, centralized and automated energy management system was installed in 1972. From that point forward, we have focused on reducing our energy use and related expenses through a variety of systems, processes, construction techniques, engineering principles, technology and best practices. In this way, our energy efficiency measures have been mitigating our impact on climate change for decades.

A top green company

Lincoln was named a Top Green Company by Newsweek and ranked in the top third among companies assessed for the 2016 Newsweek Green Rankings.

Our environmental goals

In every aspect of our business, Lincoln Financial works to ensure that we meet the long-term needs of our policyholders, shareholders, employees and communities. This commitment to create a brighter future inspires us to set strategies and goals that are focused on the long-term. Even our actions related to the environment are focused on ensuring the ongoing health of our organization, so that we can deliver on all our promises. We have set and are working toward three measurable, time-bound goals that address our areas of greatest impact.

How we benefit people, the environment and our business

As Lincoln Financial works to achieve our goals of reducing energy use, lowering emissions and increasing building efficiency, we generate tangible social, environmental and economic benefits.

In 2015, Lincoln Financial began a major renovation of our largest owned property located on the three-building campus in downtown Greensboro, North Carolina. This campus is composed of the Greene Building (1990), Friendly Building (1974), and Elm Building (1922), also known as the Jefferson Standard Building, a local landmark listed on the National Register of Historic Places.

This five-year project will completely transform 270,962 square feet of office space in the historic Elm Building. The new infrastructure and state-of-the art building operating system, which will support both the Elm and Greene buildings, will provide a comfortable, modern workplace with cost-saving systems and technology that will serve Lincoln Financial well for many years into the future.

Social

A healthier

workplace for our

employees

Environmental

Reduced use of energy and natural resources; reduced emissions

Economic

Reduced

operational

costs

Our sustainability goal is to reduce electricity use across the Greensboro campus by 10 percent by 2020, against a 2014 baseline. With only the first of three phases completed, we had already achieved a 7.11 percent reduction at the end of 2016. But, improved environmental performance is just one positive outcome of this comprehensive project.

Goal

10% reduction in electricity use across our Greensboro campus by 2020

Progress

7.11% reduction since 2014

Building a better workplace

Saving energy, reducing expenses — Reduced energy use has already lowered related costs significantly. Replacing outdated boilers has lowered natural gas usage by 40 percent and a centralized chiller plant now cools the entire campus.

A healthier, more comfortable work environment — Most private offices have been replaced with window-facing open workspaces, allowing more natural light to enter employee work areas.

A new automated building management system monitors lighting, temperature, humidity, and carbon dioxide levels to regulate fresh air intake and maintain comfortable conditions.

Preserving the character of downtown Greensboro — Lincoln Financial worked with local craftsmen to restore existing cast iron windows on lower floors and design new energy-efficient interior storm windows that maintain the building’s historical appearance, in compliance with historical preservation standards. The upper floors feature historically accurate, high-efficiency replacement windows which also help meet our energy reduction goals. The new windows are expected to save 15,050 kilowatt-hours of electricity and 920 therms of natural gas per year on each floor as they are installed.

Protecting local history — In the historic lobby, hand-cleaned sculptural relief panels illustrating early streetscapes and locations in Greensboro are illuminated by energy-efficient LED portrait lighting. The original elevator doors with wood veneer, brass inlay and etched brass plates depicting Thomas Jefferson were carefully cleaned to maintain their historic patina, as was the checkered marble floor.

Our company is committed to understanding and managing our greenhouse gas emissions by calculating our greenhouse gas inventory annually and by working to reduce our emissions. We are proud to report that since this effort began in 2011, we have already achieved significant results. We have advanced our measurement and management of emissions from the sources we control or own (Scope 1) and from the energy we purchase (Scope 2).

Goal

Reduce Scope 2 greenhouse gas emissions intensity per employee by 20% by 2020, against a 2014 baseline

Progress

6.57% reduction since our base year

In 2011 we formally calculated our first companywide greenhouse gas inventory. This identified the energy used to operate our buildings as our greatest contributor to greenhouse gases, accounting for about 70 percent of our emissions.

In 2014 we set our first carbon target of reducing Scope 2 emissions, which result from the energy we purchase.

Given our business activities, a major portion of our environmental impact results from energy use in our buildings. For several years, we have been tracking and benchmarking our energy consumption using the U.S. Environmental Protection Agency’s (EPA) ENERGY STAR Portfolio Manager, an industry leading energy measurement and tracking tool for commercial buildings. At the beginning of 2016, we set a goal to have all owned or operated Lincoln properties ENERGY STAR-rated by the end of 2017.* One year into our effort, we have already obtained a rating for 73 percent of buildings included in this goal.

Goal

100% of Lincoln-owned and -operated buildings ENERGY STAR-rated by 2017

Progress

73% of buildings are now ENERGY STAR-rated

* As a tenant in many of the buildings we occupy, this goal encompasses those buildings at which Lincoln receives and pays the utility bills and for which a rating can be obtained based on the building type.

MEASURING OUR FOOTPRINT

* Scope 3 include commercial air travel, personal vehicle travel, and upstream leased assets.

* For locations where actual data was not available, estimates were used.

INVOLVING EMPLOYEES

Lincoln Financial encourages our employees to practice environmentally friendly behaviors in the workplace, at home and in their communities.

Reducing waste

Employee participation is critical to the success of our corporate-wide recycling efforts. Through their conscientious support of our recycling initiatives, employees help Lincoln Financial better manage our waste and conserve natural resources.

Creating a cleaner world

In our key cities, employee groups work to create a cleaner, healthier world at events on Earth Day and throughout the year. Last year, our employees participated in a variety of activities, including community and park cleanups, recycling drives and environmental education.

© 2017 Lincoln Financial Group

2016 Corporate Social Responsibility Report

Social

A healthier

workplace for our

employees

Environmental

Reduced use of energy and natural resources; reduced emissions

Economic

Reduced

operational

costs

Environmental

Reduced use of energy and natural resources; reduced emissions

Social

A healthier

workplace for our

employees

Economic

Reduced

operational

costs

Environmental

Reduced use of energy and natural resources; reduced emissions

Economic

Reduced

operational

costs

Social

A healthier

workplace for our

employees

Environmental

Reduced use of energy and natural resources; reduced emissions

Social

A healthier

workplace for our

employees

Economic

Reduced

operational

costs

A top green company

Lincoln was named a Top Green Company by Newsweek and ranked in the top third among companies assessed for the 2016 Newsweek Green Rankings.

In 2011 we formally calculated our first companywide greenhouse gas inventory. This identified the energy used to operate our buildings
as our greatest contributor
to greenhouse gases,
accounting for about
70 percent of our emissions.

In 2014 we set our first carbon target
of reducing Scope 2 emissions,
which result from the energy
we purchase.

Goal

100% of Lincoln-owned and
-operated buildings ENERGY STAR-rated by 2017

Progress

73% of buildings are now ENERGY STAR-rated

In 2011 we formally calculated our first companywide greenhouse gas inventory. This identified the energy used to operate our buildings as our greatest contributor to greenhouse gases, accounting for about
70 percent of our emissions.

In 2014 we set our first carbon target of reducing Scope 2 emissions, which result from the energy we purchase.