Expedia Group, Inc. (EXPE) — ESG & Values Scores

Environment story

Expedia Group has not disclosed comprehensive Scope 1, 2, or 3 emissions data or net-zero targets in the provided filings. The 10-K filing makes no reference to carbon emissions, renewable energy commitments, or environmental sustainability metrics. The company mentions climate-related risks (hurricanes, extreme weather) as business threats but does not articulate decarbonization strategy, emissions reduction targets, or climate-related commitments. Without verified environmental initiatives or credible net-zero targets, the Environmental score reflects significant disclosure gaps and presumed weak performance on climate commitments. The company's exposure to travel-industry carbon footprint (high Scope 3 from customer travel) remains unaddressed in disclosures.

Criticisms on file

No disclosed environmental policy or carbon emissions reporting; company acknowledges climate risks (hurricanes, extreme weather) but does not quantify own operational emissions or commit to emission reduction.
Source: EXPE_10k.txt, Item 1A Risk Factors - 'Declines or disruptions in the travel industry'; MD&A Trends section acknowledges macroeconomic pressures but no climate commitments stated.

Disclosed initiatives

Travel as a Force for Good Mission

Company states mission is to 'power global travel for everyone, everywhere' and believes 'travel is a force for good.' However, this is not a quantified environmental initiative.

Social story

Expedia Group employs approximately 16,000 employees across nearly 50 countries as of December 31, 2025. The company emphasizes diversity and inclusion as core values, stating 'we are deeply committed to diversity because we believe it drives innovation.' The company offers competitive compensation, benefits (healthcare, retirement, wellness, travel allowance, parental leave resources), and stock purchase programs. However, the 10-K does not disclose: CEO-to-median-worker pay ratio, workforce diversity percentages by gender or race, executive-leadership diversity metrics, documented union-suppression activities, or supply-chain labor-rights audits. The company notes Employee Representative Bodies (ERBs) in certain countries (primarily European) representing works councils and trade unions, which it is required to consult on restructurings and acquisitions. In 2025, the company undertook restructuring actions resulting in $107 million in severance and benefits charges. No labor strikes, documented NLRB complaints, or union disputes are mentioned. Supply-chain ethics specific to human rights hazards (e.g., cobalt mining) are not disclosed.

Criticisms on file

No disclosed CEO-to-median-worker pay ratio; diversity metrics (gender, race, ethnicity) for workforce and leadership not provided in 10-K.
Source: EXPE_10k.txt, Item 1B Human Capital Management; no EEO-1 or diversity percentages disclosed.
Restructuring and layoffs totaling $107 million in severance (2025) and $80 million (2024); additional ~$60 million expected in Q1 2026.
Source: EXPE_10k.txt, MD&A Restructuring and Related Reorganization Charges section.
Company notes reliance on Employee Representative Bodies in European jurisdictions; required to engage on restructurings and acquisitions, which 'may not result in terms satisfactory to us,' potentially delaying initiatives.
Source: EXPE_10k.txt, Item 1A Risk Factors - 'We rely on the performance of our employees...'

Disclosed initiatives

Diversity and Inclusion Commitment

Company states commitment to diversity as driver of innovation and stronger customer relationships. Offers inclusive workplace and values operational diversity reflecting traveler populations globally.

Qualitative commitment; quantified metrics not disclosed.
Competitive Compensation and Benefits

Offers competitive pay, healthcare, retirement programs, expanded telehealth, wellness and travel allowance, employee assistance program, financial education, parental leave resources, stock purchase plan, volunteer days off, transportation programs, and travel discounts.

Supports employee retention and well-being; specific pay ratios and equity gaps not disclosed.
Restructuring and Cost Optimization (2024-2025)

Company undertook restructuring in February 2024 to recalibrate resources post-transformation; expanded actions in 2025 resulting in $107 million restructuring charges (2025) and $80 million (2024), predominantly severance and benefits. Expected ~$60 million additional charges in Q1 2026.

Headcount reductions; cost savings achieved but workforce reduction impact not quantified.

Governance story

Expedia Group maintains a dual-class share structure with significant concentration of voting power. Barry Diller, Chairman and Senior Executive, controls 100% of outstanding Class B common stock (5.5 million shares) through trusts and family foundation, representing approximately 32% of total voting power despite owning only ~4.6% of common stock on a fully diluted basis. The Class B shares carry 10 votes per share versus 1 vote per share for common stock. This structure materially limits shareholder rights and board independence. A November 2021 Settlement Agreement following shareholder litigation imposed post-Diller-departure voting caps (20% voting limit on extraordinary transactions) and family-member board restrictions, but these do not apply during Diller's tenure. Board independence percentage not disclosed. The company does not disclose active lobbying spend targeting environmental or consumer-protection deregulation. However, the company faces significant regulatory scrutiny including tax investigations (IRS transfer-pricing adjustments for 2011-2016 totaling ~$675 million in potential federal income tax), Italian VAT and withholding tax settlements ($107 million in 2025, $107 million in 2024), Canadian digital service tax retroactive assessments ($30 million in 2024), and ongoing competition/antitrust investigations by international regulators related to parity clauses. The company has settled or committed to voluntary undertakings with regulatory authorities on pricing-transparency and anti-competitive conduct. No significant active antitrust litigation, consumer-fraud proceedings, or SEC consent decrees are detailed, but occupancy tax disputes and transfer-pricing defense costs represent material ongoing legal exposure.

Criticisms on file

Dual-class share structure with supermajority founder voting power (32% control via 4.6% equity stake). Barry Diller controls 100% of Class B shares (5.5M) carrying 10 votes each; common shares carry 1 vote each. This creates extreme voting inequality and limits minority shareholder influence.
Source: EXPE_10k.txt, Item 1B Equity Ownership and Vote; Stockholders are entitled to one vote per common share and ten votes per Class B share; Diller trusts and family foundation collectively own 100% of Class B shares.
Significant tax exposure: IRS transfer-pricing adjustments totaling ~$675 million in potential federal income tax (2011-2016) under dispute; company disputing and under examination for 2017-2020. Italian withholding tax settlement ($178M, 2025); Italian VAT settlement ($107M, 2024); Canadian retroactive digital service tax ($30M, 2024).
Source: EXPE_10k.txt, MD&A Provision for Income Taxes section; Legal Reserves, Occupancy Tax and Other section.
Multiple ongoing regulatory investigations by international competition authorities regarding parity clauses in supplier contracts and website information display practices. Australian Competition and Consumer Commission found trivago subsidiary breached Australian Consumer Law (2020).
Source: EXPE_10k.txt, Item 1A Risk Factors - 'A failure to comply with current laws'; MD&A Provision for Income Taxes and Legal Proceedings sections.
Occupancy tax litigation: Company disputing claims that it must collect and remit occupancy and transactional taxes on lodging services. Multiple jurisdictions have asserted claims; company has established reserves for potential settlements.
Source: EXPE_10k.txt, MD&A Critical Accounting Policies - Occupancy and Other Taxes section; Item 1A Risk Factors - 'Application of existing tax laws...'
Board independence percentage not disclosed in 10-K; unable to verify compliance with 75% independence threshold.
Source: EXPE_10k.txt does not provide board composition or independence metrics.

Disclosed initiatives

Governance Settlement Agreement (November 2021)

Settlement of shareholder litigation related to Liberty Expedia Transaction; limits Diller family board members post-Diller departure; caps Diller-related voting power at 20% on extraordinary transactions post-departure; right of first offer on Class B share sales >10% voting power.

Restricts future founder control post-Diller; does not currently limit voting power during tenure.
Regulatory Cooperation and Voluntary Undertakings

Company has worked collaboratively with competition authorities and offered voluntary commitments and undertakings to address regulatory concerns regarding parity clauses and website information display.

Demonstrates regulatory cooperation; ongoing investigations suggest unresolved competition concerns.
Compliance with Revolving Credit Facility and Debt Covenants

Company reports compliance with covenants and conditions in $2.5 billion revolving credit facility and outstanding debt as of December 31, 2025.

Maintains access to liquidity; no covenant breaches reported.

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

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