Topics in the report include:

• Progress toward our goal of reducing greenhouse gas emissions by 50% by 2030 (using 2019 as a baseline year); we’re on track to meet that goal.
• Progress toward our supplier diversity goal.
• An update on our $100 million pledge with Business Roundtable over a 5-year period to help minority communities and address issues of racial equity and justice.
• More context on our data privacy and security efforts and the governance structures we have in place to ensure we keep our promises to customers and protect the information they’ve entrusted us with.
• Continued reach and breadth of our philanthropy efforts – over $55 million in grants given in 2021 and 202,000 hours volunteered by agents and employees.
• Efforts to use less paper – 70 million paper communications reduced last year alone.

As our ESG strategy matures, State Farm will identify the appropriate industry standards to track and validate progress.

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