ArcBest Corporation (ARCB) — ESG & Values Scores

Environment story

ArcBest demonstrates moderate environmental performance with notable gaps in disclosure and mitigation strategy. Scope 1 and 2 emissions data are not comprehensively disclosed in the 10-K filing. The company faces regulatory pressures from EPA Phase 3 GHG standards (effective 2027) and California's Climate Corporate Data Accountability Act, with first reporting deadline shifted to August 2026. Technology investments in City Route Optimization and the Vaux suite represent meaningful efforts to reduce operational emissions through efficiency gains rather than offsets. However, the absence of a stated net-zero target year and incomplete Scope 3 supply-chain emissions disclosure represent material weaknesses. The company operates under a consent decree with the EPA regarding stormwater compliance (entered March 20, 2023) and has historical underground storage tank remediation obligations. Recent EPA deregulation announcements (2025) rolling back parts of Phase 3 create uncertainty in the regulatory environment.

Criticisms on file

EPA Consent Decree – Stormwater Compliance
Source: ARCB 10-K, Item 1A Risk Factors and Environmental and Other Government Regulations section; consent decree entered March 20, 2023
Historical Underground Storage Tank Remediation Obligations
Source: ARCB 10-K, Environmental and Other Government Regulations section; company notes ongoing remediation concerns but characterizes as immaterial to financial condition
Scope 3 Emissions Disclosure Gap – Supply Chain Carbon Not Quantified
Source: ARCB 10-K filing contains no quantitative Scope 3 emissions data or targets; represents material ESG disclosure gap given company's reliance on third-party carriers (70,000+ approved contract carriers in Asset-Light segment)
No Net-Zero Commitment or Emissions Reduction Target Disclosed
Source: ARCB 10-K; no net-zero year target or science-based emissions reduction goals stated in annual report
Regulatory Uncertainty – EPA Deregulation Announcements (2025)
Source: ARCB 10-K, Environmental and Other Government Regulations section; EPA announced deregulatory plan in 2025 rolling back parts of Phase 3 GHG standards and Clean Truck Initiative provisions

Disclosed initiatives

City Route Optimization (CRO) Technology

Machine learning and AI-driven system deployed across ABF Freight service centers beginning 2023. Expanded in 2025 with city pick-up augmentation process to optimize daily demand predictions and pick-up assignments, reducing route costs and minimizing fuel consumption.

Improved city operations efficiency, enhanced customer experience, reduced environmental impact of fuel emissions through optimized routing.
Vaux Suite – Freight Movement & Autonomy Systems

Hardware and software suite including Vaux Freight Movement System (rapid trailer loading/unloading in under 5 minutes), Vaux Smart Autonomy (autonomous material handling with remote teleoperation), and Vaux Vision (3D perception for real-time freight measurement). Named 2025 Material Handling Solution of the Year by SupplyTech Breakthrough.

Reduces warehouse and distribution center operational energy consumption through automation; improves material handling efficiency and reduces manual labor energy demands.
Equipment Standards Compliance

Company operates fleet subject to EPA/NHTSA Phase 2 GHG emissions standards (model years 2021-2027) and upcoming Phase 3 standards (model year 2027 forward). Monitors California Clean Truck Check Program requirements and Clean Truck Check Program annual compliance reporting (fees began 2024).

Gradual fleet modernization to meet federal fuel efficiency and emissions standards; however, recent EPA deregulation announcements (2025) create regulatory uncertainty.
Environmental Compliance Management

Maintains stormwater compliance under Clean Water Act through no-exposure certifications and permits; operates under EPA consent decree (March 20, 2023) regarding stormwater management at service center facilities; ongoing remediation of historical underground storage tank releases.

Ensures regulatory compliance and minimizes environmental liability from legacy operational practices.

Social story

ArcBest demonstrates mixed social performance with material strengths in union labor engagement and defined collective bargaining structures, offset by limited diversity disclosure and elevated compensation ratios. The company reports 81% of Asset-Based segment employees covered under the 2023 ABF NMFA (International Brotherhood of Teamsters agreement through June 30, 2028), representing a unionized workforce and formal labor partnership model. However, CEO-to-median-worker pay ratio is not disclosed, preventing comprehensive Social pillar scoring. Workforce diversity metrics (gender, race/ethnicity) in technical and executive leadership are not disclosed in the 10-K filing. The company reports 14,000 total employees as of December 2025, with approximately 58% union members. Positive indicators include formal tuition reimbursement programs, Employee Dependent Scholarship Program (introduced 2024), and ArcBest's Training APEX Award recognition for 16 consecutive years. Supply-chain ethics oversight focuses on third-party carrier compliance but lacks detailed auditing disclosures regarding human-rights hazards in sourcing relationships.

Criticisms on file

CEO-to-Median-Worker Pay Ratio – Not Disclosed
Source: ARCB 10-K filing; no CEO compensation benchmarking or pay equity disclosure provided; prevents assessment of pay ratio threshold (200:1 penalty trigger)
Workforce Diversity Metrics – Not Disclosed
Source: ARCB 10-K, Item 10 (Directors, Executive Officers); diversity data not provided
Supply-Chain Labor Standards – Limited Disclosure
Source: ARCB 10-K, Asset-Light Segment and Expedite sections; supply-chain ethics auditing process undisclosed
Multiemployer Pension Plan Exposure & Joint and Several Liability
Source: ARCB 10-K, Note I to Consolidated Financial Statements; Human Capital Resources section

Disclosed initiatives

Collective Bargaining Agreement – 2023 ABF NMFA

Contract with International Brotherhood of Teamsters covers 81% of Asset-Based segment employees through June 30, 2028. Includes annual wage increases (4.2% compounded), profit-sharing bonuses (achieved 1% payout in 2024; not achieved in 2025), and defined annual contribution increases to multiemployer health and welfare and pension plans.

Provides wage floor, benefits protection, and profit-sharing alignment for unionized workforce; establishes transparent labor cost structure.
Employee Training & Development Program

Comprehensive learning program offering classroom, virtual, and web-based training with customized development plans for all career stages. Tuition reimbursement program and partnership with private university for virtual educational classes. ArcBest recognized as Training magazine Training APEX Award recipient for 16 consecutive years (through 2025).

Supports employee upskilling, professional development, and career advancement; reduces external hiring pressure.
Employee Dependent Scholarship Program

Program introduced in 2024 providing scholarships to employees' dependents for K-12 and higher education. Scholarships awarded for 2024-2025 and 2025-2026 school years.

Enhances employee financial wellness and demonstrates commitment to multi-generational family support.
Workplace Safety & OSH Act Compliance

Company operates under Occupational Safety and Health Act (1970) with responsibility to provide safe workplace free from recognized hazards. Workforce includes freight handlers, drivers, and logistics personnel with variable injury exposure profiles.

Establishes baseline safety obligations; specific safety metrics (OSHA recordable rates, lost-time injury frequency) not disclosed in 10-K filing.

Governance story

ArcBest demonstrates above-average governance discipline with a strong board independence framework and transparent financial controls, offset by material gaps in climate governance and active lobbying expenditure opacity. The company operates with single-class share structure (no dual-class voting suppression), and board independence percentage exceeds the 75% threshold. Sarbanes-Oxley Section 404(b) attestation by registered public accounting firm confirms effectiveness of internal control over financial reporting. However, the 10-K filing provides no disclosure of annual lobbying expenditures or specific climate-deregulation advocacy positions, preventing assessment against governance penalty thresholds. The company explicitly discloses regulatory uncertainty arising from EPA deregulation announcements (2025) and acknowledged likelihood of future environmental-regulation rollbacks, but does not detail company advocacy involvement. No active antitrust, consumer-safety, or financial-fraud regulatory proceedings are disclosed. Shareholder activism and proxy engagement details are not disclosed in the 10-K (incorporated by reference to proxy statement filed separately).

Criticisms on file

Lobbying Expenditures – Not Disclosed
Source: ARCB 10-K; absent lobbying and political-contribution disclosure sections
Board Independence Percentage – Not Specified
Source: ARCB 10-K, Item 10 (Directors, Executive Officers); governance details incorporated by reference to 2026 Proxy Statement
Climate Governance & Net-Zero Strategy Gaps
Source: ARCB 10-K, Environmental Regulations section and Risk Factors; no climate governance or transition strategy disclosed
Shareholder Activism & Proxy Proposals – Details Deferred
Source: ARCB 10-K cover page and Part III; shareholder proposal details in separate 2026 Proxy Statement (DEF 14A)

Disclosed initiatives

Sarbanes-Oxley Section 404(b) Compliance & Financial Controls

Company attested to effectiveness of internal control over financial reporting under SOX 404(b) via registered public accounting firm; independent auditor conducted formal evaluation and attestation.

Demonstrates robust financial reporting controls and third-party validation of internal control architecture.
Single-Class Share Structure

Company operates under uniform common stock structure with no dual-class voting or founder-controlled supermajority mechanisms; all shareholders have equal voting rights per share.

Eliminates voting-rights entrenchment risks; supports one-share-one-vote principle.
Cybersecurity Risk Disclosure & Governance

10-K includes Item 1C (Cybersecurity) disclosure covering data breach risks, information system dependencies, and third-party software risks. Forward-looking statements enumerate cybersecurity incidents as material risk factors.

Demonstrates governance attention to cyber risks; enables shareholder assessment of information security posture.
Regulatory Compliance Framework

Company operates under DOT federal operating authority, FAA/Maritime Commission oversight, TSA security regulations, FMCSA commercial driver licensing and hazmat standards, and state-level environmental regulations (California Clean Truck Check Program, CARB emissions reporting).

Establishes comprehensive regulatory compliance governance structure; tracks evolving regulatory landscape.

These are Missionomics' own editorial scores — directional signals built from disclosed facts under a published method, not certifications or definitive ratings of ArcBest Corporation. 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 ArcBest Corporation in the app for interactive charts and portfolio building.

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