Environ­mental steward­ship

We pursue environmental stewardship opportunities that are intended to promote a sustainable, enduring business aligned with our Core Values. We're committed to making efforts to reduce our emissions and operate efficiently in all aspects of our business.

Our Real Estate, Corporate Services, and Engineering teams lead these 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.

Environmental stewardship efforts include seeking out green power for our facilities, exploring opportunities to shift toward a lower emissions vehicle fleet, and reducing paper correspondence with our customers, among others. Through collaboration with Case Western Reserve University, we're researching responsible approaches for recycling and reusing electric vehicle (EV) batteries from salvaged vehicles. The goal of this work is to help prevent EV components from polluting landfills and salvage yards. For more information on our other e-waste initiatives, please see the responsible waste management section.

Energy and carbon emissions manage­ment

We believe our energy and emissions initiatives have lowered costs, improved operational efficiency, supported reliable performance, and created workspaces that better serve Progressive's people.

Our Building Operations

An important part of our strategy has focused on optimizing our real estate portfolio by eliminating excess space to support operating efficiently. This includes consolidating our corporate locations near Cleveland, Ohio, to Progressive Corporate Headquarters (PCHQ), made possible by our move to a predominately remote/hybrid work model. For more information on our physical footprint, see Item 2, Properties in our 2025 Annual Report on Form 10-K.

We focus on efficiency and conservation opportunities within our commercial real estate portfolio, an initiative started over 15 years ago. These efforts have included investment in automated systems to optimize heating, cooling, and lighting based on occupancy, and implementing energy-efficient practices.

• At our core campus locations, fluorescent lighting systems are being retrofitted with LED lighting to improve energy efficiency, occupant comfort, and safety. In 2025, we completed exterior LED retrofits at our Ohio warehouse, as well as our training facility where we eliminated lamps that contain mercury. We also converted the interior lighting systems at our Carmel, IN facility to LED.
• Another area of focus is modernizing building automation systems (BAS) and control strategies. In 2025, we upgraded the BAS by replacing outdated controllers with advanced technology at our primary data center to further optimize cooling systems, improving reliability, operational efficiency, and energy performance. We also upgraded the controls in our office building in Riverview, FL with the latest technology, enabling improved efficiency and flexible scheduling capabilities. Additionally, we implemented new programming and control strategies at PCHQ in 2025 to optimize the HVAC cooling system and improve energy efficiency.

These modernizations are intended to support reliable operation, reduce energy consumption, and prevent potential disruptions caused by outdated equipment, and safeguard the comfort of the buildings' occupants.

Powering Progressive

We've invested in green power to contribute renewable energy to our headquarters. In 2022, we completed construction of a 1.8-megawatt (MW) solar array at PCHQ, which went live in 2023. Our solar array generates Renewable Energy Certificates (RECs) and supplies renewable solar-generated electricity for that location.

In 2025, Progressive held an agreement providing approximately 69,600 MWh of renewable energy. This agreement provided Progressive with a source of renewable energy through mid-2026. We’ve since signed a new agreement to purchase renewable energy through 2030.

FLEET OPERATIONS

Our fleet consisted of more than 6,400 vehicles at the end of 2025, and we continue to explore opportunities to shift towards lower emissions vehicles. Our fleet management strategy is focused on increasing the fleet's efficiency, including exploring hybrid alternatives in vehicle orders, and utilizing an all-electric vehicle at PCHQ. During 2025, nearly all of the vehicles we retired from our fleet were gasoline or diesel fuel-based and about 70% of the vehicles we added were hybrid vehicles.

Another example of our efforts to increase fleet efficiency is a focus on reducing miles driven by claims adjusters through technological and process advancements. This includes continued expansion of photo-based inspection processes and programs that enable qualified repair facilities to prepare damage estimates.

We believe that our commitment to innovation, reflected in our renewable energy initiatives and investments in energy- and fuel-efficient facilities, equipment, and fleet create shared value for our business and our stakeholders.

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 implemented in prior years and remain in place today. These programs are designed to reduce the amount of waste sent to landfills while encouraging recycling practices throughout our facilities. 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.

Through dedicated composting initiatives launched at the beginning of 2025 at PCHQ and our Discovery building near Cleveland, Ohio, we successfully diverted over 32 tons of organic material from landfills in 2025. By collaborating with Rust Belt Riders, food waste from our cafeteria operations and leftovers from catering programs are being responsibly composted, supporting the development of a circular and regional economy in Cuyahoga County.

This reflects our ongoing efforts to reduce waste and promote environmental stewardship. We've updated our waste diversion calculation methodology for 2025 to include composting programs, along with additional recycling streams used in our operations not previously included in reporting.

As a result of recycling and composting programs throughout our operations, approximately 71% (~2,100 tons) of the waste collected at Progressive locations was diverted from landfills in 2025.

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 2025, Progressive proudly donated workstations, chairs, miscellaneous office furniture, and kitchen equipment to 14 different 501(c)(3) organizations as well as other local organizations. As real estate portfolio consolidation continues into 2026 and beyond, we're committed to exploring future charitable donations to minimize used office furniture ending up in landfills.

For Earth Day, we work with local organizations in Cleveland to foster collaboration and build awareness around responsible resource consumption, disposal strategies, and recycling through virtual and in-person events.

TECHNOLOGY AND E-WASTE INITIATIVES

We have 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 2025 we donated more than 1,200 pieces of computer equipment to PCs for People and through our donations, we helped provide computers to an estimated 2,200 people,^[1] with about 41% 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 100 tons of e-waste in 2025, preventing it from ending up in landfills.

We also supplied laptops, desktops, printers, networking equipment, hard drives, and various other electronic devices to three IT asset disposition service providers for reuse and recycling, successfully diverting over 90 tons of e-waste from disposal.

[1] 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

For over a decade we have tracked water usage in all of our owned locations, expanding efforts in 2023 to include leased locations in our real estate portfolio where reporting was available.

For 2025, we used about 157,000 cubic meters (m3) of water, excluding sewer, in these locations. At the end of 2025, we had tracked water usage for approximately 78% 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 2025, more than 75% of our Personal Auto and 53% of our Special Lines policyholders were 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 additional meaningful reductions. These initiatives also help to minimize costs.

OUR EMISSIONS REPORTING

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. We are proud to announce that we achieved carbon neutrality by purchasing Renewable Energy Credits and retiring sufficient offsets to compensate for our total Scope 1 and 2 emissions for the year ended December 31, 2025. We endeavor to maintain carbon neutrality for Scope 1 and 2 emissions as we work towards our aspirational goal to reduce total Scope 1 and 2 emissions by 40% by 2030, when compared to the 2022 base year.

Compared to 2024, our 2025 total Scope 1 and 2 emissions decreased over 4%. Scope 1 emissions remained consistent year over year, while Scope 2 location-based emissions decreased over 9% due to ongoing real estate portfolio consolidation efforts.

We've reported select Scope 3 emissions categories, such as business travel and employee commuting, since 2024, 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.

^[8] Progressive leverages Greenhouse Gas Protocol standards and guidance.

^[9] Work from home emissions associated with Progressive employees are not included.

LOOKING FORWARD

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 investments in environmental stewardship initiatives reflect our commitment to driving sustained, long-term business value for our shareholders. 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 and by reviewing our Corporate Sustainability Report.