• Educational system investments to improve performance results and reduce drop-out rates;

• Diversity initiatives to promote an inclusive workplace and business environment;

• Public safety initiatives and partnerships to promote safe vehicles, highways, homes and businesses.

We support innovative, long-term, self-sustaining and results-based strategies that bring about systemic improvements to our educational system. We are a corporate leader in promoting a stronger educational system for all through our work with groups such as our National Service Learning partnerships, the State Farm Learning and Teaching Exchange initiative and our Youth Advisory Board. One of our newest efforts involves working with the America’s Promise Alliance to reduce high school drop-out rates significantly.

We work to promote diversity and inclusion holistically; in the workplace, marketplace, our communities and throughout our supplier network. We have received numerous awards in recognition of our commitment to diversity.

We are the largest business community supporter of auto and highway safety efforts through our work with the Advocates for Highway and Auto Safety, the Insurance Institute for Highway Safety, Children’s Hospital of Philadelphia, Meharry Medical College, Mothers Against Drunk Driving and our own Auto Technology Research program. Our past efforts have been critical to advances such as the installation of life saving air bags in vehicles, as well as more protective child safety restraint laws. We will expand our leadership role in advocating for the safety of teen drivers, including support for the enactment of enhanced graduated licensing laws throughout the country.

We are the largest corporate sponsor of business and home safety efforts through our support of the Institute for Business & Home Safety, the Federal Alliance for Safe Homes and our Arson Dog and Building Technology Research programs. We strongly support the adoption and enforcement of statewide building codes based on nationally-recognized standards that can greatly reduce the personal injury and property damage resulting from catastrophes.

• Waste reduction and recycling program efforts;

• Greenhouse gas emissions intensity reductions;

• Operational efficiencies;

• Environmentally responsible fleet management practices.

In 2002, we became a member of the Business Roundtable’s Climate RESOLVE initiative. We voluntarily report our progress on managing our greenhouse gas emissions and have reduced our greenhouse gas emissions intensity by 38.7 percent between 2002 and 2006. Our goal is to reduce our greenhouse gas emissions intensity to 13.0 pounds of CO2 per policy in-force by the year 2012.

We have greatly increased our average building efficiency ratings. Between 1999 and 2006, State Farm increased its average "Energy Star" building efficiency rating from 49 to 76. A 76 score indicates that a building operates more efficiently than 76 percent of all comparable buildings. More than half of State Farm’s operations centers now qualify for the “Energy Star” label – indicating a score of 75 or higher – with several buildings being added to that list every year since 2000.

We have reduced the size of our vehicle fleet in recent years while increasing the number of hybrid and flexible-fuel vehicles that make up our fleet. State Farm now has about 100 hybrid vehicles, 3,000 flexible fuel vehicles, and an increasing percentage of cars with four-cylinder engines to help control gasoline consumption. State Farm was recently recognized by a national automotive trade publication as having the third largest non-governmental alternative-fuel commercial fleet in the United States.

• Investments in municipal bonds to develop critical community infrastructure;

• Sponsorship of affordable housing, homeownership and economic development partnerships;

• Sponsorship of financial literacy programs;

• Sponsorship of disaster preparedness and recovery programs and initiatives.

We are consistently one of the largest investors in municipal bonds, with current holdings in excess of $30 billion. These investments are critical to the development of community infrastructure such as water treatment plants, waste water treatment systems and other public safety projects.

We work with national organizations such as the League of United Latin American Citizens (LULAC) National Housing Commission, to promote affordable housing, economic development and job creation opportunities for disadvantaged and low- to moderate-income families in the United States. State Farm is a National Corporate Sponsor of the LULAC National Housing Commission. We also promote economic empowerment in our communities through our partnerships with the National Urban League and the National Council of La Raza.

We sponsor programs to overcome the threat of financial illiteracy. This threat is not nearly as loud or visible as a car crash, but it’s real and it can rob young adults of their dreams and aspirations. In 2006, State Farm contributed more than $1.3 million dollars to Financial Literacy Programs; in 2007, we'll contribute nearly $2 million. Our programs target the issue of financial literacy in different ways – from grassroots efforts led by youth, to training for teachers, to training kits that parents can use at home.

State Farm is the largest corporate contributor to the Federal Alliance for Safe Homes (FLASH), one of the fastest growing disaster preparedness organizations in the nation. Through this relationship, State Farm provides safety education to homebuilders, inspectors, architects and engineers about the need for safer, better built homes. With the support of companies such as State Farm, FLASH has helped hundreds of thousands homeowners prepare for and recover from disasters.

We are a major corporate sponsor of American Red Cross initiatives and also work with the Red Cross to meet the logistical challenges of getting communities back on their feet following disasters. Our Disaster Relief Fund efforts include nearly $4.7 million after the Sept. 11, 2001 terrorist attacks, an additional $1.1 million in 2004 in response to the hurricanes in the Southeast, and more than $7.2 million to aid Hurricane Katrina Relief Efforts in 2005 which included a company match of $2.6 million of associates’ and retirees’ contributions. We also support the creation of state catastrophe funds, as well as a federal government backstop for events exceeding the capacity of state funds.