Hub Group, Inc. (HUBG) — ESG & Values Scores

Environment story

Hub Group operates in the transportation and logistics sector, which is inherently carbon-intensive. The company acknowledges climate change risks, regulatory pressures (EPA, CARB, California GHG disclosure laws), and customer demand for lower-emission services. However, critical emissions data is absent from filings: Scope 1, 2, and 3 emissions are not disclosed; no net-zero target year is stated; no substantive decarbonization initiatives (fleet electrification, renewable energy adoption) are documented. The company mentions potential capital expenditures to meet 'climate change-focused regulatory requirements' but provides no quantified commitments. Risk factors disclose dependency on fossil fuel and vulnerability to climate-related service disruptions, yet no offsetting mitigation strategy is evident. Greenwashing risk is high: the company references 'lower emission equipment' as a competitive differentiator but does not report baseline or target GHG reductions. Without disclosed emissions baselines, targets, or transition plans, the Environmental score reflects substantial uncertainty and lack of transparency.

Criticisms on file

No disclosed Scope 1, 2, or 3 GHG emissions; no net-zero target year; absence of quantified decarbonization roadmap despite regulatory and customer pressure.
Source: HUBG 10-K Risk Factors; MD&A sections acknowledge climate change regulations and customer demand but provide no emissions data or targets.
Dependency on fossil fuel supply and price volatility; fleet comprises approximately 2,300 tractors and 4,700 trailers with no disclosed electrification or alternative-fuel transition plan.
Source: HUBG 10-K Risk Factors: 'Our business depends on the availability of fuel. Fuel availability and cost are affected by natural or man-made disasters...government actions including climate change regulations.'

Disclosed initiatives

Climate Regulation Compliance Monitoring

Company acknowledges EPA, CARB, and California GHG disclosure regulations; cites potential capital expenditure requirements to comply with climate-focused regulatory requirements.

No quantified impact; regulatory response framed as risk rather than proactive strategy.
Lower-Emission Equipment Offerings

Risk factors note that customers may prefer carriers offering lower GHG emissions with competitive pricing; company references this as a competitive factor.

Acknowledged as market driver but no company-specific decarbonization targets or fleet transition plan disclosed.

Social story

Hub Group operates a mixed workforce model combining company employees, independent contractors (owner-operators, contract carriers), and third-party service providers. Headcount as of December 31, 2024 was 6,471 (including 477 EASO employees), up from 5,956 in 2023. The company explicitly states that no employees are represented by collective bargaining agreements in the United States, positioning unionization as a risk factor rather than a normalized labor arrangement. CEO-to-worker pay ratio is not disclosed. Diversity metrics (gender, race/ethnicity) at leadership or workforce level are not reported in the filing. Turnover rates are not disclosed. Supply-chain labor practices are addressed only generically: the 10-K acknowledges independent contractor classification risks and potential litigation but provides no evidence of living-wage commitments, modern slavery statements, or audits of third-party carrier or warehouse labor conditions. The company relies heavily on purchased transportation (74% of revenue in 2024), meaning labor outcomes at third parties are material but not transparently monitored. Social score reflects limited transparency and absence of proactive labor/diversity initiatives.

Criticisms on file

No disclosed CEO-to-median-worker pay ratio; no diversity metrics (workforce or leadership) reported; no gender or racial pay-gap analysis disclosed.
Source: HUBG 10-K filings; Compensation and Benefits, DEI, and Diversity disclosures absent or not detailed.
Heavy reliance on independent contractors and third-party carriers (74% of revenue); no documented labor audits, living-wage commitments, or modern slavery statement for supply chain.
Source: HUBG 10-K: 'We depend on third parties for transportation equipment...and certain services such as transportation, warehousing and cross docks...We use a significant number of contingent workers, including independent contractors, such as owner operators, independent service providers, contract carriers and warehouse staff.'
Unionization explicitly framed as operational risk; no evidence of labor-management dialogue, union neutrality, or proactive labor-standards engagement.
Source: HUBG 10-K Risk Factors: 'Currently, none of our employees are represented by a collective bargaining agreement in the United States. If in the future our employees decide to unionize, this would increase our operating costs...'

Disclosed initiatives

Independent Contractor Litigation Management

Company acknowledges class-action and individual lawsuits challenging independent contractor classifications; risk factor addresses potential reclassification liability.

Reactive legal defense; no proactive reclassification or worker-benefit expansion disclosed.
Driver Recruitment & Retention

10-K notes 'significant competition for qualified drivers' and 'increases to drivers' compensation' in response to shortages; company operates 3,200 employee drivers and contracts with ~500 owner-operators.

Market-driven wage adjustments; no evidence of above-market compensation or benefits programs.

Governance story

Hub Group has a dual-class share structure (Class A Common Stock with voting rights; Class B Common Stock with limited voting), creating unequal shareholder voting power. The 10-K does not disclose board independence percentage, board composition, or whether a founder/insider controls supermajority voting rights via dual-class structure. Board meeting frequency, committee composition, and independence policies are not detailed in the provided filing. Lobbying expenditures and PAC contributions are not disclosed. The company has not reported significant antitrust, consumer-safety, or financial-fraud regulatory proceedings, though it is subject to DOT, EPA, CARB, and state-level regulatory oversight and audits. No explicit conflicts-of-interest, executive-compensation misalignment, or SEC consent decrees are noted in the 10-K excerpts provided. The absence of specific governance metrics (board independence %, lobbying spend, dual-class voting concentration) precludes a higher score despite the absence of disclosed major violations. The dual-class structure alone triggers a 20-point deduction per the rubric.

Criticisms on file

Dual-class share structure present; voting-power concentration and board independence percentage not disclosed in filing.
Source: HUBG 10-K: References to 'Class A Common Stock' and 'Class B Common Stock' but specific voting-rights breakdown and independence metrics absent from provided excerpts.
No disclosed lobbying expenditures or PAC contributions; no statement of political alignment or trade-association policy positions on climate/environmental regulation.
Source: HUBG 10-K filings do not include lobbying-spend, PAC-contribution, or political-alignment disclosures in provided sections.
Cybersecurity risk acknowledged (ransomware, data breaches, AI threats); no disclosed cybersecurity fines or SEC-enforcement actions, but insurance is acknowledged as potentially insufficient.
Source: HUBG 10-K Technology and Cybersecurity Risks section: 'While we and our third-party service providers have experienced cyber-attacks and attempted breaches...no such incidents have been, individually or in the aggregate, material to us.'

Disclosed initiatives

Regulatory Compliance Monitoring

Company acknowledges DOT, EPA, CARB, and state-level regulatory oversight; periodic audits mentioned; risk factors address potential fines and restrictions.

Compliance is framed as operational risk; no proactive governance innovation disclosed.

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

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