Allison Transmission Holdings, Inc. (ALSN) — ESG & Values Scores

Environment story

Allison operates in the commercial vehicle transmission sector with significant exposure to internal combustion engines and traditional drivetrain systems. The company acknowledges climate regulation pressure and has begun developing electric and hybrid propulsion solutions, but disclosure of Scope 1, 2, and 3 emissions is absent from the 10-K. No verified net-zero target year is disclosed. The company faces material risk from accelerated EV adoption and acknowledges this as a competitive threat. No detailed decarbonization infrastructure investments or renewable energy commitments are evident in the filing. Greenwashing concerns apply: the company touts hybrid/electric development but offers no quantified emissions baseline, reduction targets, or supply-chain Scope 3 assessment. Environmental compliance costs are noted as significant but no concrete mitigation spend is detailed.

Criticisms on file

No disclosed Scope 1, 2, or 3 emissions baseline or targets; absence of net-zero commitment
Source: ALSN 10-K 2025, Item 1A Risk Factors & MD&A; no ESG or sustainability report referenced
Acknowledgment of competitive risk from accelerated EV adoption; company states 'if the pace of adoption of electric vehicles proceeds faster than we are anticipating, we may not be in a position to meet customer demand'
Source: ALSN 10-K 2025, Item 1A Risk Factors, 'Risks Related to Our Business and Operations'
Environmental remediation liabilities at potentially contaminated sites; company notes 'we or our predecessors have been named potentially responsible parties at contaminated sites from time to time'
Source: ALSN 10-K 2025, Item 1A Risk Factors, 'Environmental, health and safety laws and regulations'

Disclosed initiatives

Electric and Hybrid Propulsion Development

Company is developing fully electric and electric hybrid propulsion solutions for commercial vehicles and off-highway equipment. Allison Off-Highway offers both conventional and electrified powertrain options.

Diversifies product portfolio toward lower-carbon propulsion but no quantified emissions reduction or timeline disclosed.
Compliance with Environmental Regulations

Company acknowledges CSRD, California Climate Corporate Data Accountability Act, and California Climate-Related Financial Risk Act compliance obligations and associated increased costs.

Reactive posture; company describes compliance as a burden and cost rather than strategic opportunity.

Social story

Allison has a unionized workforce (approximately 49% of U.S. employees and 43% of total employees represented by UAW as of Dec 31, 2025). Current UAW collective bargaining agreement runs through November 2027; the 10-K discloses significant labor cost inflation from the UAW agreement and acknowledges ongoing wage pressures. The company notes 'good' labor relations overall but faces labor attraction and retention challenges in a tight labor market. No detailed CEO-to-median-worker pay ratio, turnover rate, or diversity metrics are provided in the 10-K. Leadership and board diversity percentages are not disclosed. The company acquired the Off-Highway Business with 68% unionized workforce. Supplier diversity and human-rights audit disclosures are absent. No evidence of union suppression; relations appear collaborative on surface.

Criticisms on file

Significant labor cost inflation under collective bargaining agreements, particularly with UAW, impacting margins and operating results
Source: ALSN 10-K 2025, Item 1A Risk Factors, 'Labor cost inflation and employee attraction and retention'; MD&A
Labor shortages and wage inflation cited as ongoing headwinds to recruitment and retention of qualified personnel
Source: ALSN 10-K 2025, Item 1A Risk Factors, 'Labor cost inflation and employee attraction and retention'
No disclosure of diversity metrics (gender, race/ethnicity) in executive or board composition; no diversity or supplier-diversity programs mentioned
Source: ALSN 10-K 2025; absence of EEO-1 or diversity disclosures

Disclosed initiatives

Labor Relations and Collective Bargaining

Company maintains collective bargaining agreement with UAW Local 933 through November 2027. Acknowledges labor cost inflation and wage pressures as material business driver.

Structured engagement with organized labor; no major disputes reported in recent period.
Talent Attraction and Retention Programs

Company acknowledges increased competition for skilled talent and labor shortages; succession planning in place for executive management.

Proactive but reactive; no specific quantified initiatives disclosed for diversity, training, or retention beyond succession planning.

Governance story

Allison's governance structure includes anti-takeover provisions (blank check preferred stock authorization, restricted special meetings, no written consent, two-thirds supermajority for bylaw amendments). Board independence percentage is not disclosed in the 10-K. The company has significant indebtedness ($2.909 billion as of Dec 31, 2025) with restrictive covenants limiting operational flexibility. No active antitrust or consumer-safety regulatory proceedings are disclosed, but the company discloses government contracting risks and compliance with FCPA, export controls, and federal acquisition regulations. No explicit lobbying expenditure figures or targets supporting environmental deregulation are disclosed in the filing. Governance is defensive in character; no evidence of active climate-regulation opposition lobbying, but also no transparency on political spending or board composition.

Criticisms on file

Significant anti-takeover defenses in corporate charter and bylaws, including blank check preferred stock, prohibition on special meetings, prohibition on written consent, and two-thirds supermajority amendment requirement
Source: ALSN 10-K 2025, Item 1A Risk Factors, 'Provisions of our amended and restated certificate of incorporation and amended and restated bylaws'
High financial leverage ($2.909 billion debt as of Dec 31, 2025) with restrictive covenants limiting strategic flexibility; maximum senior secured leverage ratio covenant in place
Source: ALSN 10-K 2025, Item 1A Risk Factors, 'Our indebtedness could adversely affect our financial health'; Debt section of MD&A
Board independence percentage not disclosed; no transparency on independent director composition relative to 75% or 80% benchmarks
Source: ALSN 10-K 2025; proxy/DEF 14A required for board composition detail
Government contracting compliance risks including heightened audit exposure, whistleblower litigation risk, and civil/criminal prosecution risk under FCPA and export controls
Source: ALSN 10-K 2025, Item 1A Risk Factors, 'Our business and financial results may be adversely affected by government contracting risks'

Disclosed initiatives

Board Governance and Succession Planning

Company maintains succession plans for executive management and key officers; severance and change-in-control arrangements in place for select executives.

Standard governance practice; no strategic governance innovations disclosed.
Compliance with Government Contracting Regulations

Company registered with Central Contractor Registration Database; subject to periodic U.S. government audits of contract costs and Federal Acquisition Regulation compliance.

Compliance function active; results of audits could impact reported liabilities and cash flow.

These are Missionomics' own editorial scores — directional signals built from disclosed facts under a published method, not certifications or definitive ratings of Allison Transmission Holdings, Inc.. Coverage and confidence vary by data point, and figures can lag real-world changes. Read the full Methodology for sourcing, scoring, and correction details — or open Allison Transmission Holdings, Inc. in the app for interactive charts and portfolio building.

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