Each day we strive to make progress reducing our carbon emissions and operate responsibly in all aspects of our business. In our view, reducing our environmental footprint — and pursuing energy and resource savings in the process — is the right thing to do for our stakeholders and the environment.
Our Real Estate, Corporate Services and Engineering teams lead our environmental stewardship efforts and guide our strategies to effectively manage our buildings, equipment, and fleet. We report our environmental efforts to inform our stakeholders of the efforts we're making, the initiatives and steps taken, and the forward movement on our commitments.
We are taking proactive measures to advance our environmental stewardship by seeking out green energy for our facilities, exploring opportunities to shift toward a lower emissions vehicle fleet, and reducing paper correspondence with our customers. We believe that if we can yield positive environmental results from our business operations, we can create a sustainable business in line with our Core Values.
Energy and carbon emissions management
In 2020, we established an aspirational goal of carbon neutrality by the end of 2025 for Scope 1 and 2, which we believe will help set the path to net-zero for Scope 1 and 2 in the following decade.
To achieve this, we're working to reduce our carbon footprint through several means, including investing in renewable energy and focusing on efficiency and conservation opportunities within our commercial real estate portfolio, an initiative started over 15 years ago. At our core campus locations, we transitioned from fluorescent to LED lighting, expanding to exterior parking lots in 2024 where we also replaced metal halide lights. We also focus on calibrated automation efforts to optimize and conserve heating, cooling, and lighting and consider other ways to operate our facilities more efficiently given the reduced in-office presence due to the hybrid workforce model.
Recently, an important part of our strategy has focused on optimizing our real estate portfolio by eliminating excess space to support operating efficiently. Since officially reopening our offices in early 2022, we're continuously evaluating our real estate portfolio needs and in late 2024, we consolidated our corporate locations near Cleveland, Ohio, to Progressive Corporate Headquarters (PCHQ), formerly known as Campus 2.
To modernize PCHQ's 25-year-old building automation system (BAS), we replaced approximately 200 outdated controllers with advanced technology. These upgrades supported adherence to American Society of Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE) comfort standards and support our long-standing commitment to energy efficiency. Furthermore, formerly stand-alone systems have been integrated into the BAS, enabling improved efficiency and flexible scheduling capabilities.
These modernizations are intended to support reliable operation, reduce energy consumption, and prevent potential disruptions caused by obsolete equipment, safeguarding the comfort of the building's occupants and the sustainability of our operations.
We've invested in green energy to further reduce our impact on the environment. In 2022, we completed construction of a 1.8-megawatt (MW) solar array at PCHQ as pictured above, which went live in 2023 and is contributing renewable energy to that location. Our solar array is verified as a qualified renewable energy source from the State of Ohio and, in March 2024, it was approved to generate Renewable Energy Certificates (RECs).
We also have an agreement in place which provided approximately 69,900 MWh of renewable energy for Progressive in 2024. As part of that agreement, in 2024, we sourced over 38,000 MWh from a wind farm in Pennsylvania. This agreement will provide Progressive with a source of renewable energy into 2026.
We believe that our renewable energy initiatives and investments in energy- and fuel-efficient facilities and equipment create shared value for our business and stakeholders.
Our carbon emissions reductions
In 2024, we expanded the way we manage, track, and report our carbon emissions, including, for the first time, reporting Scope 3 emissions for business travel and employee commuting. We continue to monitor electric and gas consumption at owned and leased locations, where possible, to minimize the use of estimated site readings in our calculations across the real estate portfolio.
Compared to 2023, our 2024 Scope 1 emissions increased about 2% while our Scope 2 location-based emissions decreased over 16%. We attribute the change in Scope 1 emissions to the increased use of our corporate jet and generators, as well as fleet vehicles, driven in part by response efforts to catastrophe events. Meanwhile, our ongoing real estate portfolio consolidation efforts contributed to the reduction in Scope 2 location-based emissions.
[1] Includes carbon emissions from electricity and natural gas consumption, fuel used by fleet vehicles, company aircraft, generators, and refrigerants. The volume of carbon emissions from these sources have been estimated using actual real estate portfolio information and industry standard calculation methods. Emission factors were adjusted for 2024 calculations to reflect updates to standards. Prior years were not retroactively updated. In 2021, Progressive began purchasing Renewable Energy Credits (RECs) to reduce emissions, which is reflected in the market-based figures. Emissions intensity factors were updated in 2024 to reflect U.S. Energy Information Administration (EIA) standards and will be reviewed annually as part of Progressive's emissions reporting efforts.
[2] Global Warming Potentials (GWP) were adjusted for 2024 calculations to reflect updates to standards. Prior years were not retroactively updated.
[3] We engaged PricewaterhouseCoopers LLP to perform an attest review engagement over our Scope 1 emissions and Scope 2 emissions (location-based and market-based), as represented in The Progressive Corporation Management Assertion, for the year ended December 31, 2024 (see their report in the Appendix of our 2024 Corporate Sustainability Report). For clarity, reported Scope 3 emissions and interim progress on our aspirational goals is outside the scope of the attestation.
[4] Intensity measure is per million policies in force (PIFs).
For 2024, we expanded reporting efforts to include select Scope 3 emissions categories, such as business travel and employee commuting. These figures were calculated using a combination of estimated and actual data. Business travel emissions encompass air, car, and hotel travel by employees, while employee commuting emissions capture travel by employees to reach their assigned offices.
| 2024 Scope 3 carbon emissions[5] (metric tons CO2e) |
| Category 6—Business travel |
11,643 |
| Category 7—Employee commuting[6] |
14,120 |
[5] Progressive leverages Greenhouse Gas Protocol standards and guidance.
[6] Work-from-home emissions associated with Progressive employees are not included.
Fleet operations
Our fleet consisted of more than 6,500 vehicles at the end of 2024, and we're looking for opportunities to reduce our fleet's carbon emissions. Within Progressive, we partner with our procurement team to help identify new vehicle options, and we're shifting our fleet toward lower emissions vehicles. Our fleet management strategy implements changes toward more fuel-efficient vehicles, includes hybrid alternatives in vehicle orders, and utilizes an all-electric vehicle at PCHQ. In 2024, nearly all of the vehicles we retired from our fleet utilized only gasoline or diesel fuel and, during 2024, over 20% of the vehicles we added were hybrid vehicles.
Another example of our efforts to increase fleet efficiency is the offering and expansion of photo estimating to our customer base, which reduces the miles driven by our claims adjusters. The Claims organization also partners with auto repair centers to participate in our Shop Written Estimates (SWE) program. By utilizing SWE and network shops as estimating tools, we've been able to reduce our dependency on our fleet.
Responsible waste management
We're committed to reducing and responsibly managing the waste generated by our building operations. Recycling programs for office paper, cardboard, aluminum cans, and plastic and glass bottles were developed in the past and remain in place today. The programs were developed to reduce the waste we send to landfills and encourage recycling at our campus locations.
As a result of these initiatives, approximately 19% (187 tons) of the waste collected at non-Ohio locations was diverted from landfills to recycling centers in 2024. In Ohio locations, a change in waste vendors resulted in the diversion of 7% (12 tons) of waste. We actively collaborate with our vendors to enhance recycling processes. We continuously evaluate our waste management strategies as changes occur within our real estate portfolio.
We're excited to announce a new composting program at PCHQ. By partnering with a local Cleveland company, the food waste from preparation in our cafeteria operations and leftovers from our catering programs will be composted, when possible. This, in turn, will be shared with local farmers and residents.
As we transitioned to a hybrid workplace and consolidated our office locations over the past few years, we amassed a surplus of furniture and equipment. To minimize waste, Progressive has actively sought out organizations in need of furniture or equipment for their operations. Throughout 2024, Progressive has proudly donated workstations, chairs, miscellaneous office furniture, and kitchen equipment to 14 different 501(c)(3) organizations as well as other local organizations. Compared to 2023, we donated nearly 1.5x[7] the amount of furniture and equipment during 2024, in large part due to the closure of our Campus 1 location in Ohio. As real estate portfolio consolidation continues into 2025 and beyond, we're committed to exploring future charitable donations to minimize used office furniture ending up in landfills.
We've donated personal computer (PC) equipment to people in need since 2011. As of 2022, we started making donations to PCs for People, a nonprofit organization specializing in refurbishing and upgrading computers for students and those in need. During 2024, we donated more than 800 pieces of computer equipment to PCs for People and through our donations, we helped provide computers to an estimated 2,100 people,[8] with about 45% going to children. In addition to computer donations, PCs for People also accepts and recycles e-waste and other electronic equipment. Progressive's involvement in this initiative resulted in recycling or reusing more than 214,200 pounds of e-waste in 2024, thereby preventing it from ending up in landfills.
For Earth Day, we partner with a local organization in Cleveland to foster collaboration and build awareness around responsible resource consumption, disposal strategies, and recycling through virtual and in-person events.
[7] Factor calculated based on historic cost of donated assets.
[8] A single computer can serve an entire household. Not all donations are redistributed because some may not pass stress testing/refurbishment standards or be used for parts.
Tracking water in our buildings
Progressive constantly looks for ways to improve on how and what we report. For over a decade we tracked water usage in all of our owned locations. In 2023, we expanded efforts to include leased locations in our real estate portfolio where reporting was available. Over the past two years, we used about 165,000 and 186,000 cubic meters (m3) of water, excluding sewer, in these locations in 2023 and 2024, respectively. At the end of 2024, we tracked water usage directly for approximately 80% of our total rentable square footage (RSF) and 100% of our owned locations.
Paper reduction efforts
Our efforts to encourage a paperless environment include offering paperless policies and electronic document options to our customers. At the end of 2024, more than 75% of our Personal Auto and 51% of our Special Lines policyholders are enrolled in our paperless policy program. This program reduces the need for paper correspondence by allowing e-signatures for policy documents and access to policy information via the Progressive mobile app.
Since the beginning of 2023, we've provided Personal Auto new business policy booklets and renewals electronically in states that allow us to do so. Our paperless efforts continue to evolve as we seek out meaningful reductions. These initiatives also help to minimize costs.
Looking forward
Progressing toward our future goals, we are continually seeking opportunities within our real estate portfolio to reduce emissions, enhance efficiency, and create spaces that better serve our people. Through these efforts, we hope to build an even more sustainable business.
An important part of our culture is to work toward creating a better future for not only our employees but also for our communities, shareholders, and the millions of customers who trust us to protect what is most important to them. We believe our goal of carbon neutrality by the end of 2025 for Scope 1 and 2 honors that commitment, and we're working to chart a course with the goal of being net-zero for Scope 1 and 2 in the following decade.
We expect that Progressive's plan to be net-zero for Scope 1 and 2 will leverage the continued application of operational efficiencies and ongoing efforts to reduce emission outputs. We look forward to exploring new ways to optimize our approach to emissions reduction, fleet operations, waste management, and water usage in our buildings. We believe our commitment to sustainability will continue to help us operate more efficiently.
Learn more about Progressive's Sustainability efforts by visiting our Investor Relations site. We also have full reporting on all of our Environmental, Social, and Governance efforts in our Corporate Sustainability Report.
