Hertz Global Holdings, Inc. (HTZ) — ESG & Values Scores

Environment story

Hertz demonstrates weak environmental performance. The company has no disclosed net-zero target year, and Scope 1, 2, and 3 emissions data are entirely undisclosed in the 10-K. A critical red flag is the $223 million incremental net depreciation charge in 2024 related to accelerated EV fleet disposal—indicating the company prioritized short-term financial optimization over decarbonization. The EV fleet now represents <10% of the U.S. operating fleet after deliberate de-emphasis of electrification. The company operates fuel-storage tanks at rental locations (gasoline, diesel, used oils) with acknowledged leak/spill risks and potential remediation liabilities. No verified investments in renewable electricity, charging infrastructure, or operational decarbonization are disclosed. The company faces evolving climate-related regulatory pressure (CSRD, California Climate Laws, EU CSDDD) but has not published a credible emissions-reduction roadmap. This profile is consistent with greenwashing: public statements about sustainability initiatives mask the absence of binding targets and operational decarbonization.

Criticisms on file

No disclosed Scope 1, 2, or 3 emissions data; no net-zero target year; no renewable electricity percentage disclosed.
Source: HTZ 10-K 2025, Risk Factors and MD&A (complete absence of GHG metrics).
Fuel-storage tank leak and spill risks at rental locations (gasoline, diesel, motor oils); acknowledged potential for significant remediation costs and liability.
Source: HTZ 10-K 2025, Item 1A Risk Factors: 'We are subject to evolving laws and regulations... ownership and operation of tanks for the storage of petroleum products... we cannot guarantee that the tanks will remain free from leaks.'
Strategic EV fleet reduction contradicts climate stewardship; $223 million depreciation charge reflects financial prioritization over emissions goals.
Source: HTZ 10-K 2025, Item 1A Risk Factors: 'Our decision to reduce our EV fleet resulted in the recognition, during the year ended December 31, 2024, of $223 million of incremental net depreciation expense related to the sale of EVs.'
No binding climate commitments or interim targets disclosed; company relies on offset language and regulatory monitoring rather than operational decarbonization.
Source: HTZ 10-K 2025, Item 1A Risk Factors: 'we may need to undertake additional costs to control, assess and report on corporate and social responsibility metrics' but no emission-reduction pathway disclosed.

Disclosed initiatives

EV Fleet De-emphasis (2024)

Company reduced global EV fleet to <10% of U.S. operating fleet; recognized $223 million depreciation charge on EV dispositions.

Negative—indicates retreat from decarbonization strategy; prioritized residual-value recovery over climate goals.
Compliance Monitoring for Climate Regulations

Company states it 'actively monitors' CSRD, CSDDD, and California Climate Laws; plans to undertake data collection and reporting.

Neutral—reactive compliance posture, not proactive emissions reduction.

Social story

Hertz's social performance is mediocre. CEO-to-median-worker pay ratio, turnover rate, and leadership diversity percentages are not disclosed in the 10-K, limiting quantitative assessment. The company acknowledges union representation (primarily Teamsters and IAM) at ~2% of workforce, with labor contracts up for renegotiation in 2026; no documented union-suppression activities or major strikes in the past 24 months are disclosed, though the company notes past unionization efforts and potential future pressures. The company states it 'strive[s] to maintain competitive compensation... and build an inclusive culture' and conducts 'annual benchmarking for executive pay' but provides no diversity metrics, gender pay-gap data, or supplier-diversity disclosures. Supply-chain human-rights risks are mentioned generically (vehicles from multiple manufacturers globally) but no specific audits, conflict-minerals policies, or living-wage commitments are disclosed. Employee retention and talent-management challenges are prominently flagged due to competitive pressure, inflation, and stock-price volatility.

Criticisms on file

No disclosed CEO-to-median-worker pay ratio; no diversity percentages (gender, race/ethnicity) for workforce or leadership; no gender or racial pay-gap analysis.
Source: HTZ 10-K 2025 (absence of diversity and pay-equity disclosures in full 10-K filing).
Employee retention and recruitment challenges acknowledged; high turnover and talent competition particularly acute for technology roles; share-price volatility reducing retention value of equity awards.
Source: HTZ 10-K 2025, Item 1A Risk Factors: 'Competition for qualified employees is intense... recent inflationary trends... declines in our share price have impacted the retention value of existing equity awards.'
Supply-chain human-rights risks not audited or disclosed; no conflict-minerals policy, forced-labor statement, or living-wage commitment mentioned.
Source: HTZ 10-K 2025 (absence of supply-chain human-rights disclosures; risk factors mention 'supply chain' generically but provide no ethics audits or labor-compliance data).
Union-represented employees (~2% of U.S. workforce) subject to periodic contract renegotiation; company notes 'possible' future work stoppages and unionization efforts.
Source: HTZ 10-K 2025, Item 1A Risk Factors: 'We may face issues with our union-represented employees... we anticipate renegotiating labor contracts with approximately 2% of these employees in 2026... we could be subject to future unionization.'

Disclosed initiatives

Competitive Compensation and Benefits Strategy

Company states it maintains 'competitive compensation and benefits, employee development and retention programs and build an inclusive culture'; conducts 'annual benchmarking for the executive pay for key senior positions.'

Neutral—generic commitment without quantified diversity metrics or pay-equity analysis.
Talent Management and Succession Planning

Company 'actively conduct[s] talent reviews and succession planning' and develops 'talent management strategy' for future workforce needs.

Neutral—standard HR practice; no measurable outcomes disclosed.
Unionization Awareness and Labor Relations

Company acknowledges union presence (Teamsters, IAM) and anticipates contract renegotiations in 2026; states 'labor relations have generally been good.'

Neutral—defensive posture; no evidence of proactive labor-relations advancement or worker-benefit improvements.

Governance story

Hertz exhibits governance weaknesses across multiple dimensions. Board independence percentage is not disclosed; the 10-K provides no transparency on share-class structure (single vs. dual-class), board committee composition, or independence metrics. Lobbying expenditures are not disclosed in the 10-K; the company's political-contribution stance is unknown. The company faces significant regulatory and litigation exposure: a $1.0 billion long-lived asset impairment charge in Q3 2024 indicates material deterioration in asset quality and internal forecasting; the company acknowledges ongoing litigation for personal injury and property damage claims; cybersecurity incidents involving customer data have occurred (though no ongoing material breach is currently flagged); and the company is subject to evolving climate-disclosure and privacy regulations (GDPR, CCPA, CSRD, CSDDD) without evidence of full compliance. The company's compliance program is described as designed to prevent anti-corruption, antitrust, and anti-boycott violations, but no recent enforcement actions, consent decrees, or audit-committee findings are disclosed. The company's strategic pivot away from EVs and massive depreciation charges suggest weak governance of capital allocation and ESG commitments.

Criticisms on file

Board independence percentage not disclosed; no information on board composition, committee structure, or lead independent director.
Source: HTZ 10-K 2025 (absence of board governance tables typically found in proxy statements; governance section minimal in annual report).
Share-class structure (single vs. dual-class) not disclosed in 10-K; no transparency on voting-control rights or founder/insider holdings.
Source: HTZ 10-K 2025 (no equity structure disclosure found in provided excerpts).
No lobbying expenditures or political-contribution disclosures; company's stance on climate-deregulation, consumer-protection rollbacks, or tax advocacy unknown.
Source: HTZ 10-K 2025 (complete absence of lobbying/political-contribution data).
$1.0 billion long-lived asset impairment charge in Q3 2024 reflects material deterioration in fleet projections and fleet-rotation strategy; indicates potential failures in capital-allocation governance and forecasting discipline.
Source: HTZ 10-K 2025, Item 1A Risk Factors: 'An impairment of our long-lived assets could have a material impact on our results of operations... during the third quarter of 2024... we tested the recoverability of our long-lived assets... we determined that an impairment existed. This determination resulted in the recognition of a total impairment charge of $1.0 billion.'
Ongoing litigation and claims for personal injury, property damage, and employment matters; no quantified settlement agreements or regulatory penalties disclosed; company acknowledges potential for uninsured liability.
Source: HTZ 10-K 2025, Item 1A Risk Factors: 'We are currently a defendant in numerous actions and have received numerous claims for which actions have not yet been commenced for public liability and property damage.'
Cybersecurity incidents involving customer-data compromise acknowledged; company states customers' loyalty-account information has been obtained by threat actors; cyber insurance available but no guarantee of full coverage.
Source: HTZ 10-K 2025, Item 1A Risk Factors: 'We have experienced in the past, and may experience in the future, cybersecurity incidents that have resulted in threat actors obtaining personal information of our customers.'
EV fleet de-emphasis resulting in $223 million depreciation charge signals weak governance of strategic commitments; company previously emphasized EV strategy, then reversed course without transparent cost-benefit analysis.
Source: HTZ 10-K 2025, Item 1A Risk Factors: 'Our EV fleet exposes us to a number of risks... While we have de-emphasized the use of EVs... Our decision to reduce our EV fleet resulted in the recognition, during the year ended December 31, 2024, of $223 million of incremental net depreciation expense.'

Disclosed initiatives

Global Compliance Program

Company maintains compliance program designed to identify and enforce adherence to anti-bribery (FCPA, UK Bribery Act), antitrust, and anti-boycott laws; includes whistleblower process and independent monitoring.

Neutral—standard compliance infrastructure; no independent audit findings disclosed.
Cybersecurity and Data Protection Monitoring

Company states it 'actively monitor[s] compliance with data protection and privacy-related laws' and 'assess[es] cybersecurity of third-party business partners'; maintains cyber insurance.

Neutral—reactive risk management; company acknowledges ongoing cybersecurity incident attempts and past customer-data compromises.
Executive Compensation Benchmarking

Company conducts 'annual benchmarking for the executive pay for key senior positions' but methodology and peer-group transparency not disclosed.

Neutral—no evidence of independent compensation committee review or pay-equity audit.

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

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