Month: January 2025

Read the 2024 Wesco Sustainability Report here

Cybersecurity and Data Protection

Cybersecurity and data protection is an enterprise wide priority and is reflected in engagements with our customers and suppliers. Our comprehensive approach to securing our data and business systems from attack, compromise, or loss includes a combination of leading technologies, policies and procedures and a 24/7 cybersecurity operations team monitoring our environment for signs of attack and responding in real time.

We conduct mandatory information security awareness training for our employees at least annually and enhanced training for specialized personnel. We have instituted regular attack or malicious activity simulations for employees to enhance awareness and responsiveness to such possible threats, and we also employ third parties to perform penetration and vulnerability tests.

Our security policies are evaluated and updated annually to address changes in the regulatory and threat landscapes and evolving best practices. We identify potential cybersecurity risks using internal measures and external resources. Identified risks are captured and prioritized on our risk register. Results are regularly reported back to a cross-functional, executive cybersecurity risk committee which then validates risks. While we focus heavily on prevention and detection, response and recovery plans, service agreements and partner engagements are in place should there be a need for us to respond to an attack. We have adopted a security incident response plan that provides controls and procedures for timely and accurate reporting of material cybersecurity incidents. We also maintain cyber liability insurance coverage.

To more effectively prevent, detect and respond to information security threats, we have a dedicated Chief Information Security Officer whose team is responsible for leading enterprise-wide information security strategy, policy, standards, architecture and processes. As part of its oversight of cybersecurity risk, the Audit Committee of our Board of Directors meets at least quarterly with our Chief Information Security Officer, Chief Information and Digital Officer and other senior leaders to receive updates on cybersecurity risks and threats, the status of initiatives to strengthen our information security systems and management’s assessments of our security program. Wesco has achieved ISO 27001 certification for its Information Security Management System.

With these security measures in place, we did not experience any material data breaches in 2023. We also finalized our planned three-year infrastructure and security integration between Wesco and Anixter, making significant progress in Zero Trust configuration and data loss prevention implementation.

To learn more, download the 2024 Wesco Sustainability Report here.

About This Report

Unless otherwise stated, this report covers activities, data and initiatives from our fiscal year 2023.

ESG Disclosure and Framework Alignment

The topics covered in this report include those that we have determined to be material for our business and stakeholders as noted on page 12. Wesco aligns with several ESG frameworks and disclosures in support of our commitment to transparency and our fulfillment of stakeholder needs and expectations. We leverage the following frameworks and standards to provide robust ESG information disclosure:

Global Reporting Initiative (GRI): GRI offers a list of global standards and guidelines around sustainability reporting.Sustainability Accounting Standards Board (SASB): SASB provides a comprehensive set of industry-specific disclosure topics and guidelines.Task Force on Climate-Related Financial Disclosures (TCFD): TCFD provides disclosure recommendations on thematic ESG topics such as governance, strategy, risk management, metrics and targets to provide stakeholders with fuller information surrounding climate risks.CDP: Formerly the Carbon Disclosure Project, CDP is an international organization that helps companies and cities measure and disclose important environmental impact information through an annual questionnaire and rating system.United Nations Global Compact (UNGC): UNGC is an initiative that aims to help businesses align their strategies and work toward the U.N.’s Sustainable Development Goals.United Nations Sustainable Development Goals (U.N. SDGs): U.N. SDGs provide a shared set of 17 toward peace and prosperity for people and planet goals and create a call to action by all countries in a global partnership.

We also regularly engage with our investors, employees, customers, regulators, ratings agencies and others on ESG and business issues. Additional information about Wesco can be found in our public financial filings—including our annual report and proxy filings—as well as on the Security and Exchange Commission’s website at www.sec.gov or on the Investors page of our website at Wesco.com.

Wesco plans to continue to report annually as we monitor, measure, and deepen our ESG initiatives and disclosures.

Wesco endorses the United Nations Sustainable Development Goals (SDGs), which are a call to action to end poverty, protect the planet, and ensure that all people enjoy peace and prosperity.

More information about our SDG aligned initiatives is included throughout this report.

Assurance 
We did not seek third-party assurance for this report; however, we will consider doing so for future reporting. The information and data contained in this report was vetted by internal subject matter experts on the various ESG topics included in this report.

Contact Us 
We appreciate and welcome feedback on our ESG initiatives and reporting and invite you to contact us directly via email at Sustainability@Wesco.com. 

Read the 2024 Wesco Sustainability Report here

Cybersecurity and Data Protection

Cybersecurity and data protection is an enterprise wide priority and is reflected in engagements with our customers and suppliers. Our comprehensive approach to securing our data and business systems from attack, compromise, or loss includes a combination of leading technologies, policies and procedures and a 24/7 cybersecurity operations team monitoring our environment for signs of attack and responding in real time.

We conduct mandatory information security awareness training for our employees at least annually and enhanced training for specialized personnel. We have instituted regular attack or malicious activity simulations for employees to enhance awareness and responsiveness to such possible threats, and we also employ third parties to perform penetration and vulnerability tests.

Our security policies are evaluated and updated annually to address changes in the regulatory and threat landscapes and evolving best practices. We identify potential cybersecurity risks using internal measures and external resources. Identified risks are captured and prioritized on our risk register. Results are regularly reported back to a cross-functional, executive cybersecurity risk committee which then validates risks. While we focus heavily on prevention and detection, response and recovery plans, service agreements and partner engagements are in place should there be a need for us to respond to an attack. We have adopted a security incident response plan that provides controls and procedures for timely and accurate reporting of material cybersecurity incidents. We also maintain cyber liability insurance coverage.

To more effectively prevent, detect and respond to information security threats, we have a dedicated Chief Information Security Officer whose team is responsible for leading enterprise-wide information security strategy, policy, standards, architecture and processes. As part of its oversight of cybersecurity risk, the Audit Committee of our Board of Directors meets at least quarterly with our Chief Information Security Officer, Chief Information and Digital Officer and other senior leaders to receive updates on cybersecurity risks and threats, the status of initiatives to strengthen our information security systems and management’s assessments of our security program. Wesco has achieved ISO 27001 certification for its Information Security Management System.

With these security measures in place, we did not experience any material data breaches in 2023. We also finalized our planned three-year infrastructure and security integration between Wesco and Anixter, making significant progress in Zero Trust configuration and data loss prevention implementation.

To learn more, download the 2024 Wesco Sustainability Report here.

About This Report

Unless otherwise stated, this report covers activities, data and initiatives from our fiscal year 2023.

ESG Disclosure and Framework Alignment

The topics covered in this report include those that we have determined to be material for our business and stakeholders as noted on page 12. Wesco aligns with several ESG frameworks and disclosures in support of our commitment to transparency and our fulfillment of stakeholder needs and expectations. We leverage the following frameworks and standards to provide robust ESG information disclosure:

Global Reporting Initiative (GRI): GRI offers a list of global standards and guidelines around sustainability reporting.Sustainability Accounting Standards Board (SASB): SASB provides a comprehensive set of industry-specific disclosure topics and guidelines.Task Force on Climate-Related Financial Disclosures (TCFD): TCFD provides disclosure recommendations on thematic ESG topics such as governance, strategy, risk management, metrics and targets to provide stakeholders with fuller information surrounding climate risks.CDP: Formerly the Carbon Disclosure Project, CDP is an international organization that helps companies and cities measure and disclose important environmental impact information through an annual questionnaire and rating system.United Nations Global Compact (UNGC): UNGC is an initiative that aims to help businesses align their strategies and work toward the U.N.’s Sustainable Development Goals.United Nations Sustainable Development Goals (U.N. SDGs): U.N. SDGs provide a shared set of 17 toward peace and prosperity for people and planet goals and create a call to action by all countries in a global partnership.

We also regularly engage with our investors, employees, customers, regulators, ratings agencies and others on ESG and business issues. Additional information about Wesco can be found in our public financial filings—including our annual report and proxy filings—as well as on the Security and Exchange Commission’s website at www.sec.gov or on the Investors page of our website at Wesco.com.

Wesco plans to continue to report annually as we monitor, measure, and deepen our ESG initiatives and disclosures.

Wesco endorses the United Nations Sustainable Development Goals (SDGs), which are a call to action to end poverty, protect the planet, and ensure that all people enjoy peace and prosperity.

More information about our SDG aligned initiatives is included throughout this report.

Assurance 
We did not seek third-party assurance for this report; however, we will consider doing so for future reporting. The information and data contained in this report was vetted by internal subject matter experts on the various ESG topics included in this report.

Contact Us 
We appreciate and welcome feedback on our ESG initiatives and reporting and invite you to contact us directly via email at Sustainability@Wesco.com. 

Originally published by Northwestern Mutual on January 3, 2025

What is a mutual insurance company? 

A mutual insurance company is an insurance company that is owned by policyholders—the very people who purchase coverage from the company. 

How common are mutual insurance companies? According to the American Council of Life Insurers 2023 Life Insurance Fact Book, a little more than 15 percent of all life insurers doing business in the United States in 2022 (110 out of 727) were mutual insurance companies. Despite making up such a small percentage of life insurers, mutual insurance companies had $8 trillion of life insurance in force in 2022—more than half as much as the stock insurance companies that make up most insurers.

How mutual insurance companies work 

As noted above, mutual insurance companies are owned by the policyholders. These policyholders elect a board, and the board directs the management of the company and is responsible for making decisions around risk management, coverage and investment strategies. 

A mutual insurance company makes money primarily in two ways. First, it sells insurance policies and collects premiums from its policyowners. Second, it uses the premiums collected to purchase various investments, which generate additional revenue. After paying insurance claims, taxes and operating expenses, the money that is left over is profit for the company. 

Unlike shareholders of a stock insurance company, who profit through buying and selling shares in the company, a mutual policyowner benefits from purchasing a policy and reaping the insurance benefits it generates, such as death benefit coverage, cash surrender value and/or dividends. 

What kinds of insurance do mutual insurance companies offer? 
Many mutual insurance companies offer participating life insurance. An example of participating life insurance is a whole life insurance policy that pays dividends1 to policyholders when the company performs better than the assumptions it made when setting the policy guarantees. These dividends are not guaranteed and can fluctuate from year to year as performance varies. A participating life insurance policy can also be called a “with-profits policy.” 

Other types of life insurance coverage are also commonly offered by mutual insurance companies, including: 

Term life insurance. Universal life insurance. Variable universal life insurance. 

Specific life insurance riders and endorsements may also be available, depending on the company. 

Mutual insurance companies vs. stock insurance companies 

The primary difference between mutual insurance companies and stock insurance companies lies in their ownership structure. 

Unlike a mutual insurance company, which is owned by policyholders, a stock insurance company is owned by shareholders. These are individuals who purchase the company stock on an exchange. 

With a stock insurance company, policyholders do not own any portion of the company by virtue of owning a policy. They also have more limited control over the direction of the company, as it’s the shareholders who elect the board of directors. In addition, when a stock insurance company performsbetter than its assumptions, it may choose to return that excess money to shareholders rather than to the policyholders. 

When a stock insurance company needs to raise funds for whatever reason, it has the ability to issue and sell new shares of stock. This means that stock insurance companies often have more flexibility than mutual insurance companies. 

Can a mutual insurance company become a stock insurance company? 
Yes. Through a process known as “demutualization,” a mutual insurance company can become a stock insurance company. When this happens, policyholders will typically receive shares of company stock as compensation for their ownership in the original mutual company. 

How to evaluate a mutual insurance company 

Ultimately, whether one chooses to purchase life insurance from a mutual insurance company or a stock insurance company, it’s important to carefully consider the company that one buys from. Some characteristics that should guide the decision include the company’s: 

Breadth of offerings 
If an insurance company doesn’t offer the type of coverage that one wants or needs, they may cross it off their list. In addition to policy types, one should consider riders and other endorsements that they may want to add to their policy to increase or modify the coverage. 

Financial stability 
Before one purchases life insurance from any company, they want to make sure that the company is financially stable and that it will be around for the long haul. In the U.S., four ratings agencies evaluate the financial strength of insurance companies. These ratings should carry a lot of weight in the final decision. 

Customer satisfaction 
One can learn a lot about an insurance company by the way current policyholders talk about their experience. Consider seeking out customer reviews and testimonials so one knows what to expect if they move forward with a particular insurer. 

Should one choose to work with a mutual insurance or a stock insurance company? 

There are many reasons to consider buying life insurance from a mutual insurance company rather than a stock insurance company. First, because policyholders own the company instead of shareholders, mutual insurance companies are not beholden to the quarterly earnings call. This means that mutual insurance companies can focus more on long-term success and stability over short-term profits. 

Second, because policyholders elect the board, one will have much more direct control over the direction of the company than they would with a stock insurance company. 

Finally, the possibility of receiving dividends is a major consideration for many individuals who ultimately decide to purchase life insurance through a mutual insurance company. Case in point: Northwestern Mutual’s foundation of mutuality and industry-leading long-term value allows us to expect to pay nearly $8.2B in dividends in 2025 to policyholders. 

More stories on our Life&Money blog

Originally published by Northwestern Mutual on January 3, 2025

What is a mutual insurance company? 

A mutual insurance company is an insurance company that is owned by policyholders—the very people who purchase coverage from the company. 

How common are mutual insurance companies? According to the American Council of Life Insurers 2023 Life Insurance Fact Book, a little more than 15 percent of all life insurers doing business in the United States in 2022 (110 out of 727) were mutual insurance companies. Despite making up such a small percentage of life insurers, mutual insurance companies had $8 trillion of life insurance in force in 2022—more than half as much as the stock insurance companies that make up most insurers.

How mutual insurance companies work 

As noted above, mutual insurance companies are owned by the policyholders. These policyholders elect a board, and the board directs the management of the company and is responsible for making decisions around risk management, coverage and investment strategies. 

A mutual insurance company makes money primarily in two ways. First, it sells insurance policies and collects premiums from its policyowners. Second, it uses the premiums collected to purchase various investments, which generate additional revenue. After paying insurance claims, taxes and operating expenses, the money that is left over is profit for the company. 

Unlike shareholders of a stock insurance company, who profit through buying and selling shares in the company, a mutual policyowner benefits from purchasing a policy and reaping the insurance benefits it generates, such as death benefit coverage, cash surrender value and/or dividends. 

What kinds of insurance do mutual insurance companies offer? 
Many mutual insurance companies offer participating life insurance. An example of participating life insurance is a whole life insurance policy that pays dividends1 to policyholders when the company performs better than the assumptions it made when setting the policy guarantees. These dividends are not guaranteed and can fluctuate from year to year as performance varies. A participating life insurance policy can also be called a “with-profits policy.” 

Other types of life insurance coverage are also commonly offered by mutual insurance companies, including: 

Term life insurance. Universal life insurance. Variable universal life insurance. 

Specific life insurance riders and endorsements may also be available, depending on the company. 

Mutual insurance companies vs. stock insurance companies 

The primary difference between mutual insurance companies and stock insurance companies lies in their ownership structure. 

Unlike a mutual insurance company, which is owned by policyholders, a stock insurance company is owned by shareholders. These are individuals who purchase the company stock on an exchange. 

With a stock insurance company, policyholders do not own any portion of the company by virtue of owning a policy. They also have more limited control over the direction of the company, as it’s the shareholders who elect the board of directors. In addition, when a stock insurance company performsbetter than its assumptions, it may choose to return that excess money to shareholders rather than to the policyholders. 

When a stock insurance company needs to raise funds for whatever reason, it has the ability to issue and sell new shares of stock. This means that stock insurance companies often have more flexibility than mutual insurance companies. 

Can a mutual insurance company become a stock insurance company? 
Yes. Through a process known as “demutualization,” a mutual insurance company can become a stock insurance company. When this happens, policyholders will typically receive shares of company stock as compensation for their ownership in the original mutual company. 

How to evaluate a mutual insurance company 

Ultimately, whether one chooses to purchase life insurance from a mutual insurance company or a stock insurance company, it’s important to carefully consider the company that one buys from. Some characteristics that should guide the decision include the company’s: 

Breadth of offerings 
If an insurance company doesn’t offer the type of coverage that one wants or needs, they may cross it off their list. In addition to policy types, one should consider riders and other endorsements that they may want to add to their policy to increase or modify the coverage. 

Financial stability 
Before one purchases life insurance from any company, they want to make sure that the company is financially stable and that it will be around for the long haul. In the U.S., four ratings agencies evaluate the financial strength of insurance companies. These ratings should carry a lot of weight in the final decision. 

Customer satisfaction 
One can learn a lot about an insurance company by the way current policyholders talk about their experience. Consider seeking out customer reviews and testimonials so one knows what to expect if they move forward with a particular insurer. 

Should one choose to work with a mutual insurance or a stock insurance company? 

There are many reasons to consider buying life insurance from a mutual insurance company rather than a stock insurance company. First, because policyholders own the company instead of shareholders, mutual insurance companies are not beholden to the quarterly earnings call. This means that mutual insurance companies can focus more on long-term success and stability over short-term profits. 

Second, because policyholders elect the board, one will have much more direct control over the direction of the company than they would with a stock insurance company. 

Finally, the possibility of receiving dividends is a major consideration for many individuals who ultimately decide to purchase life insurance through a mutual insurance company. Case in point: Northwestern Mutual’s foundation of mutuality and industry-leading long-term value allows us to expect to pay nearly $8.2B in dividends in 2025 to policyholders. 

More stories on our Life&Money blog