Key highlights: 

• State Farm Where We Work is part of our commitment to creating a work environment where everyone can be their best.
• As an insurance company, we’re uniquely positioned to be able to help build safer communities – whether on the roads or in homes.
• Thriving communities are where neighbors can realize their dreams. Our community development giving encompasses job training, neighborhood reinvestment, affordable housing, food insecurities, personal financial literacy, and sustainable housing and transportation. 
• Education is one pathway toward building robust communities for today and tomorrow by creating opportunities for economic security. Our education funding is directed toward initiatives that support higher education, K-12 STEM and academic performance, college, and career success.
• Being a good steward of our environmental resources just makes sense. In 2023, we advanced our efforts of preserving resources and reducing waste, while helping our customers do the same.
• We’re in the business of keeping our promises to our customers. Building trust is imperative to fostering an ethical culture with an inclusive environment that cultivates a sense of belonging for all. 

The State Farm Impact Report helps us share what matters most to us with those who are making decisions about their insurance, financial services, employment and more.

As a mutual company we do what is in the best, long-term interest of those we serve, knowing that a better world tomorrow starts with a stronger neighborhood today.

To help address the impact of tree loss on communities across the country, State Farm® and the Arbor Day Foundation are announcing a new collaboration to replant trees and help build more resilience in disaster-impacted areas.

State Farm is committing $1 million to the Arbor Day Foundation in support of tree planting and reforestation projects throughout the remainder of 2021.

“Trees play a vital role in the stability of our communities and their resilience against disaster,” said State Farm Vice President of Administrative Services Jenny Greminger, who oversees the company’s environmental sustainability team. “Replanting in a strategic way will help impacted areas recover and potentially better withstand severe weather in the future.”

In consultation with the Arbor Day Foundation, key areas impacted by natural disasters have been identified in fifteen states (Arizona, California, Colorado, Florida, Iowa, Idaho, Maryland, Michigan, North Carolina, New Jersey, New York, Ohio, Oregon, Texas, and Utah). These areas, including several national forests, will host reforestation, tree planting, and tree giveaway events starting this spring and running through the fall.

Specific events will be announced as they are confirmed. Events will address local challenges including losses from wildfires, hurricanes and tornadoes, as well as urban heat islands and emerald ash borer infestation.

This new collaboration follows the recent announcement from State Farm of a commitment to cut its greenhouse gas emissions by 50% by the end of 2030, and the release of the company’s first-ever Environmental, Social, and Governance report. These efforts are the first announced by State Farm as part of its “Good Neighbors. Better World.” initiative, in which the company is emphasizing social and environmental responsibility as essential aspects of doing business.
 

Did You Know? Quick facts on trees from the Arbor Day Foundation

Click the images below to learn more about some of the many benefits of trees for health, the economy, and everyday life.

Those actions are shared in our first-ever annual report detailing our progress in environmental, social, and governance areas. One example is how in 2020, our national and local philanthropic giving totaled nearly $57 million—with more than $16 million supporting pandemic relief. State Farm invested an additional $10 million in minority and women small business owners in the Company’s home state of Illinois.

And—because cleaner air helps make a better world—State Farm is committing to reduce its greenhouse gas emissions by 50 percent by the end of 2030.

We have renewable or carbon-free power purchase agreements for several of our main employee campuses and we’re actively exploring sustainable solutions for fleet vehicles, energy efficiency capital projects, green natural gas – plus how to engage employees individually toward this target.

This step is just the first in our continuing efforts to being good stewards of the neighborhoods we serve.

Download the 2020 ESG Highlights infographic

Initially, State Farm will focus its efforts on reducing two types of emissions:

• Direct GHG emissions, such as those from company facilities and vehicles (Scope 1 emissions)
• Indirect GHG emissions, such as those from the generation of electricity supplied to the Company (Scope 2 emissions)

“As a company, our mission is to help people manage the risks of everyday life, recover from the unexpected, and realize their dreams,” said State Farm Chairman, President & CEO Michael Tipsord. “We also believe we have a responsibility to promote, influence, and engage in environmentally sustainable behaviors on behalf of our current and future customers and associates.”

This 50-percent reduction goal aligns with the Science-Based Target initiative (SBTi) goal of keeping global temperature rise below 1.5 degrees Celsius by 2050.

State Farm is currently working with a third party to validate its GHG assessment and obtain Independent Assurance Statements for 2019 and 2020 GHG baseline data.

State Farm has already made progress toward this goal, with recent facility efficiency measures detailed in its ESG report along with a recently-finalized renewable power purchase commitment for its Richardson, Texas office and data center facilities.

State Farm is also exploring sustainable solutions for fleet vehicles, energy efficiency capital projects, virtual power purchase agreements, and green natural gas.

This ESG report, the first of its kind in the Company’s history, summarizes 2020 State Farm work in the areas of environmental sustainability, social impact, and responsible governance of company operations.

“For nearly one hundred years, State Farm has functioned on the belief that being a good neighbor means being good stewards of the neighborhoods we serve,” said State Farm Chairman, President & CEO Michael Tipsord. “We want to help make a better world by building resilient futures, empowering good neighbors, and protecting what matters.”

Highlights of the new report include:

• Increased energy efficiency: More than 80% of State Farm facilities have an Energy Star Score of 75 or higher.
• $100 million committed in support for minority communities for issues of racial equity and justice over the next 5 years.
• 98,000 hours of employee & agent volunteering, which generated $647,500 in related grant funding
• Evolving workforce demographics: women comprise 57% of employees and 37% of executive roles. Minorities hold 24% of executive roles.

To accompany this report on 2020 activity, State Farm is also announcing a new environmental commitment to reduce its greenhouse gas (GHG) emissions by 50% by the end of 2030.

State Farm is the largest auto and homeowner insurance provider in the U.S., with more than 85 million policies and accounts.

Download the 2020 ESG Highlights infographic