Global Reporting Initiative Performance Indicators (Progressive Fiscal 2009)
Strategy and Analysis Explanation
1.1 CEO statement See the CEO Message
1.2 Description of purpose Our 2009 social responsibility focus was to capture all current activity, measure it, and push it forward. We concentrated on understanding what we are doing now and assessing opportunity areas. In 2010, we will more clearly define these opportunities and establish goals while also recognizing areas of potential risk and putting more effective measurement processes and business practices in place.


Organizational Profile Explanation
2.1 Name of organization The Progressive Group of Insurance Companies are wholly owned subsidiaries or affiliates of The Progressive Corporation. See http://www.progressive.com/ for more information.
2.2 Primary brands, products, and services Information on our products, services, and brand can be found on our company Web site at these links:
http://www.progressive.com/progressive-insurance/products-brands.aspx
and
http://www.progressive.com/progressive-insurance/progressive-companies.aspx
2.3 Operational structure Our organizational structure is explained in our 2009 10-K.
2.4 Headquarters location We are headquartered in Mayfield Heights, Ohio. See the Contact Us section on our company Web site.
http://www.progressive.com/address.aspx
2.5 Countries of operation We operate in the United States and Australia.
2.6 Nature of ownership and legal form See our 2009 10-K
2.7 Markets served See our 2009 10-K
2.8 Scale of organization http://investors.progressive.com/09Q3_quarterly/fr_tenyr.html
2.9 Significant changes during the reporting period re: size, etc. Not applicable. This is our first year of GRI reporting.
2.10 Awards received during the reporting period See Awards and Recognition section on the site


Report Parameters Explanation
Report Profile
3.1 Reporting Period See the About Our Report section.
3.2 Date of most recent previous report Not applicable. This is our first year of GRI reporting.
3.3 Reporting Cycle See the About Our Report section.
3.4 Contact See the About Our Report section.
Report Scope and Boundary
3.5 Process for defining report content See the About Our Report section.
3.6 Boundary of the report See the About Our Report section.
3.7 Limitations of scope or boundary of report See the About Our Report section.
3.9 Data measurement techniques and assumptions See the About Our Report section.
3.10 Explanation of effect of any restatements of info in earlier reports Not applicable. This is our first year of GRI reporting.
3.11 Significant changes from previous reporting period Not applicable. This is our first year of GRI reporting.
3.13 Policy and current practice with regard to external assurance Progressive’s management is responsible for the preparation and integrity of the information being reported on for fiscal year 2009. Based on a comprehensive review by internal subject matter experts, we believe this information fairly represents our social responsibility activities and related financial performance for fiscal year 2009. No external assurance has been done.


Governance, Commitments, and Engagements Explanation
Governance
4.1 Governance structure See our current proxy statement.

http://investors.progressive.com/governance.aspx
4.2 Indicate whether the Chair of the highest governance body is an executive

The Chairman of our Board of Directors is not an employee.

http://investors.progressive.com/board.aspx
4.3 State number of members of highest governance body that are independent and/or nonexecutive members See our current proxy statement.

http://investors.progressive.com/governance.aspx
4.4 Mechanism for shareholders and employees to provide recommendations or direction to board Procedures for contacting the board:
http://investors.progressive.com/procedures-contact-board.aspx.

Security Exchange Commission regulations also provide an alternative mechanism for shareholders to make a proposal.
4.5 Linkage between compensation for board members, senior managers, and executives and the organization's performance Members of our Board of Directors are currently paid all in company stock. Executive and employee cash bonuses are determined on an annual basis based on objective performance criteria. Senior managers receive equity-based compensation. A smaller group of senior managers also receive performance-based equity-based compensation, the vesting of which is determined by company performance. For more details, go to (see our current proxy statement)
4.6 Processes in place for the board to ensure conflicts of interest are avoided

http://investors.progressive.com/code.aspx is our Code of Conduct and Business Ethics for employees; and

http://investors.progressive.com/ethics.aspx are additional ethics guidelines for senior officers.
4.7 Process for determining the qualifications/expertise of board members for guiding organizational strategy on economic, environmental, and social topics Prospective board members are identified by the Nominating & Governance Committee and recommended to the full Board of Directors. http://investors.progressive.com/charter-governance.aspx

Shareholders can also propose candidates who will be considered by the committee. http://investors.progressive.com/propose-candidates.aspx
4.9 Board procedures to oversee organization's identification and management of economic, environmental, and social performance, including risks/opposition, and adherence/compliance with international standards, codes, and principles Our Board of Directors meets regularly to oversee business performance and procedures. Here are the board meeting dates: http://investors.progressive.com/board-meetings.aspx.

The Board adheres to our Corporate Governance guidelines (link: http://investors.progressive.com/guidelines.aspx).

To find information on the various committees the board established to look at specific aspects of the company and associated risk, please see our Corporate Governance page on our company Web site: http://investors.progressive.com/governance.aspx
4.10 Processes for evaluating the board's own performance The Board of Directors evaluates itself annually as described in our Corporate Governance Guidelines (http://investors.progressive.com/guidelines.aspx). Each board committee also annually evaluates its own performance (also in the guidelines and in each committee charter).
Stakeholder Engagement
4.14 List of stakeholder groups engaged by the organization See Engaging Stakeholders section of site.
4.15 Basis for identification and selection of stakeholders with whom to engage See Engaging Stakeholders section of site.
4.16 Approaches to stakeholder engagement See Engaging Stakeholders section of site.


Economic Performance Indicators Explanation
Economic Performance
EC1 Direct economic value generated and distributed

See our 2009 financial statements

http://investors.progressive.com/sec.aspx and http://investors.progressive.com/annual.aspx

EC2 Financial implications and other risks and opportunities for organization's activities due to climate change

Theoretically, we are exposed to some regulatory and physical risks related to climate change, although we think those risks are not likely to affect our ability to sell and service insurance policies in a meaningful way. We also see opportunities related to climate change and have several relevant initiatives under way. See our responses to questions 1 through 6 in our 2009 Carbon Disclosure Project submission for additional information.

EC3 Coverage of the organization's defined benefit plan obligations Not applicable. We do not have a defined benefit plan. Our retirement plan is a defined contribution plan.


Environmental Performance Indicators Explanation
Energy
EN3 Direct energy consumption by primary energy source Our total consumption is 102,903 MWh in accordance with our response to Question 20.4 in our 2009 Carbon Disclosure Project submission.

EN4

 Indirect energy consumption by primary source Our total consumption is 132,823 MWh in accordance with our response to Question 20.3 in our 2009 Carbon Disclosure Project submission.
EN5 Energy saved due to conservation and efficiency improvements See our response to Question 23.10 in our 2009 Carbon Disclosure Project submission.

 

EN6

 Initiatives to provide energy-efficient or renewable energy-based products and services See our response to Question 6.1 in our 2009 Carbon Disclosure Project submission.
EN7 Initiatives to reduce indirect energy consumption and reductions achieved See our response to Question 23.8 in our 2009 Carbon Disclosure Project submission.
Emmissions, Effluents, and Waste
EN16 Total direct and indirect greenhouse gas emissions by weight See our responses to Questions 10.1 and 11.1 in our 2009 Carbon Disclosure Project submission.
EN17 Other relevant indirect greenhouse gas emissions by weight We do not assess this.
EN18 Initiatives to reduce greenhouse gas emissions and reductions achieved See our response to Question 6.1 in our 2009 Carbon Disclosure Project submission.
EN22 Total weight of waste by type and disposal method See Talkin' Trash story under Securing a Sustainable Future on site.


Social Performance Indicators Explanation
Employment
LA3 Benefits provided to full-time employees that are not provided to temporary or part-time employees We provide the same benefits to our full-time and part-time employees (defined as those who work 20 hours or more per week). We do not provide benefits to temporary employees.
Occupational Health and Safety
LA6 % of total workforce represented in formal joint management-worker H&S committees We formed a "Risk and Safety Committee" in 2009 that represents 100% of our workforce. Its mission is to ensure a physical workplace environment free from recognized safety hazards while promoting safety awareness and safe behaviors among all Progressive people. Through formal training and on-the-job programs, the overriding goal for the Committee is to guide employee behavior and Progressive’s corporate culture toward embracing safe business practices on a routine daily basis.
LA9 Health and safety topics covered in formal agreements with trade unions Not applicable.
Diversity and Equal Opportunity
LA13 Composition of governance bodies and breakdown of employees per indicators of diversity We have a Senior Diversity and Inclusion Council, led by our chief human resources officer and supported by four HR and Business directors. The council oversees business area councils who represent the needs of each part of the business.
Investment and Procurement Practices
HR3 Total hours of employee training on policies and procedures concerning HR All employees are required to complete annual Compliance training and acknowledge that they have read and understand our online policies.