Letter from President and CEO Tom Troy

Last year we shared with you our intent to fully transition to an ESG (Environmental, Social and Governance) framework for measurement and goal setting to ensure we are good stewards on behalf of our constituencies– employees, customers, suppliers, communities and the environment.

I’m proud to share that we made tremendous progress on all fronts, despite the ongoing challenges of the COVID-19 pandemic. This year’s report details our progress across existing programs and a number of new initiatives, including purchase of renewable energy; analysis of our efforts to promote equity, inclusion and belonging; and a Community Investments Program that funds development initiatives in low-income communities.

I am very excited about our momentum on the environment and the great strides we have made in that area. We have made it a strategic goal to establish a leadership position in the industry on environmental issues, reducing our emissions as much as possible on our journey to achieving carbon neutrality by 2025.

We want to lead by example and respond to the climate crisis with a sense of urgency. Our employees, our customers and the communities we serve are being impacted, as they experience more severe weather and the increased severity and frequency of wildfires. It is an ambitious target, and we have put in place tangible milestones and actions that we believe will get us there.

When you look at the totality of our efforts, I believe you’ll share my confidence in our ability to achieve our goals.

Here are a few of our initiatives covered in this year’s report:

• Enlarging our fleet of electric vehicles
• Quadrupling our investment in the Forest Resilience Bond
• Investing in technology to reduce business travel and to support employees working from home
• Surveying vendors’ commitment to reducing their carbon emissions
• Reaching our goal of 100% green electricity in 2021

We also recognize areas where we need greater improvement.

For example, while CSAA has built a great culture of inclusion, we have not made the progress we would like to see on increasing ethnic diversity among senior management and leadership. This is an important issue that our entire leadership team is focused on in 2022 and where we are dedicated to employing new strategies to achieve our goals.

More important to our success than these plans, however, are the people bringing them to fruition. Every day I am impressed by how much our people are invested in making CSAA a great company that they are proud to work for, and that our customers, partners and stakeholders are proud to work with. That pride and dedication gives me every confidence we will reach our goals and set new standards for our industry.

Thomas M. Troy

President and Chief Executive Officer