Climate Change Data

The Auto Club Group

Climate Impact & Sustainability Data (2016, 2021)

Reporting Period: 2016

Environmental Metrics

ESG Focus Areas

  • Environmental

Environmental Achievements

  • Reduced intake valve deposits by 19 times using TOP TIER gasoline compared to non-TOP TIER gasoline (34.1mg vs 660.6mg per intake valve on average).

Climate Goals & Targets

Environmental Challenges

  • Long-term use of gasoline without enhanced additive packages leads to reduced fuel economy (2-4%), drivability issues, and increased emissions.
  • Consumer unawareness of fuel quality differences and detergent additive packages; most drivers prioritize location and price over fuel quality.
Mitigation Strategies
  • Promoting the use of TOP TIER gasoline, which helps prevent and reduce carbon deposits, improving fuel economy and emissions.
  • Educating consumers about the benefits of TOP TIER gasoline and its minimal additional cost.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Period: 2021

Environmental Metrics

ESG Focus Areas

  • Environmental
  • Social
  • Governance

Environmental Achievements

  • Conversion to LED bulbs at the Dearborn Administrative Office Building resulted in a 10 percent reduction in that facility’s electricity usage.
  • Employees working from home avoided roughly 73 metric tons of CO2 weekly.
  • Fins car washes recycle 80 percent of water used.
  • Proper disposal of oil, gasoline and other vehicle fluids at Car Care locations.
  • Recycling program for batteries and electronic equipment.

Social Achievements

  • Successful Idea Jams generating over 100 ideas on sustainability.
  • Established Office of Diversity, Equity & Inclusion.
  • Nine Employee Resource Groups (ERGs) supporting workplace inclusivity.
  • Social Justice Initiative addressing racial injustice and socioeconomic disparities.

Governance Achievements

  • AM Best upgraded Auto Club Insurance Association's Financial Strength Rating to “A” (Excellent).
  • Biennial Code of Conduct training for all employees.
  • Fraud & Ethics Reporting Line for reporting misconduct.
  • Most diverse Board of Directors in the organization’s history.

Climate Goals & Targets

Long-term Goals:
  • Buy alternative energy vehicles to minimize climate impacts from internal combustion vehicles
  • Actively work to understand climate change impacts on members and business
Medium-term Goals:
  • Innovate products & services to create a more sustainable future for communities
  • Engage employees by providing an environment where they can make an even greater impact
Short-term Goals:
  • Change the way we work by supporting digital transformation and operational effectiveness
  • Create a more sustainable footprint by reducing emissions across all locations
  • Strengthen transparency by adhering to standard reporting frameworks

Environmental Challenges

  • Climate change impacts on operations and members.
  • Reducing greenhouse gas emissions across all locations.
  • Meeting future regulatory requirements.
Mitigation Strategies
  • Assessing and preparing for climate change impacts through materiality assessments.
  • Developing standard and automated reporting.
  • Investing in alternative energy vehicles.
  • Providing sustainability guidelines to partners and investing in sustainable companies.

Supply Chain Management

Responsible Procurement
  • Sustainability guidelines for partners; investing in sustainable companies.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: The GHG Protocol Corporate Accounting and Reporting Standard

Third-party Assurance: An accredited 3rd party, independent firm