Jacobs Solutions Inc. (J) — ESG & Values Scores

Environment story

Jacobs Solutions scores 58/100 on Environmental criteria, reflecting material gaps in emissions transparency and net-zero credibility. The company discloses climate change as a material risk factor and acknowledges inability to achieve climate commitments, but provides no quantified Scope 1, 2, or 3 emissions data in the 10-K. No explicit net-zero target year is disclosed. The company does not report renewable energy percentages or direct decarbonization infrastructure investments. Risk factors identify climate regulation compliance costs and climate-related litigation exposure. The company references PFAS services and environmental remediation work as service offerings but does not quantify its own operational carbon footprint or supply-chain emissions. Heavy reliance on contract-based advisory/infrastructure work means Scope 3 exposure is largely embedded in client projects rather than company operations, but this is not transparently reported. Absence of disclosed emissions targets, third-party validation, or operational decarbonization milestones results in a score capped below 70.

Criticisms on file

No Disclosed Emissions Data or Net-Zero Targets
Source: J_10k.txt - Item 1A Risk Factors: 'We may be unable to achieve our climate commitments and targets' and 'Climate change and related environmental issues, including those related to compliance with new and evolving federal, state, local and foreign laws and regulations, could have a material adverse impact on our business, financial condition and results of operations.' No Scope 1, 2, 3 emissions or target year disclosed.
Climate Regulation Compliance Risk Acknowledged
Source: J_10k.txt - Item 1A Risk Factors: Climate change and related environmental issues listed as material risk; compliance with evolving federal, state, local and foreign environmental laws identified as potential cost driver.

Disclosed initiatives

Climate Response Technology & Solutions Development

Company references strategy to invest in, develop and promote innovative climate response technologies and solutions to meet demands of public and private sector clients; described as a business strategy, not an operational decarbonization commitment.
Environmental Services Offerings

Provides environmental remediation, PFAS services, and water-related services to clients; these are revenue-generating service lines rather than company-wide carbon reduction initiatives.

Social story

Jacobs Solutions scores 72/100 on Social criteria. The company employs approximately 43,000 people globally and acknowledges workforce challenges including union negotiations, remote/hybrid work management, and succession planning. The 10-K discloses union representation in portions of the workforce and identifies ongoing labor negotiations and potential work actions as material risks. No CEO-to-median-worker pay ratio is disclosed; the absence of this metric prevents full assessment but does not trigger automatic penalty given no evidence of extreme ratios. Workforce diversity metrics and leadership diversity percentages are not disclosed in the filing, preventing quantitative assessment. The company references labor and employment claims including allegations of harassment, discrimination, and pay equity issues pursued on individual and class-action bases, indicating potential social compliance gaps. Supply-chain ethical issues are not extensively detailed; the company acknowledges dependence on third-party subcontractors and suppliers but provides limited disclosure of labor standards audits or human-rights due diligence. No serious documented union-suppression activities or major strikes within 24 months are disclosed. Gross margin of 24.8% and company size suggest potential for adequate worker protections, but lack of transparent diversity and pay-equity disclosures result in a moderate score.

Criticisms on file

Labor and Employment Claims Including Discrimination and Pay Equity Allegations
Source: J_10k.txt - Item 1A Risk Factors: 'Certain of these claims relate to allegations of harassment and discrimination, pay equity, denial of benefits, wage and hour violations, whistleblower protections, concerted protected activity, and other employment protections, and may be pursued on an individual or class action basis depending on applicable laws and regulations.'
Union Negotiations and Work Action Risk
Source: J_10k.txt - Item 1A Risk Factors: 'Negotiations with labor unions and possible work actions could disrupt operations and increase labor costs and operating expenses. A certain portion of our work force has entered into, and additional portions may in the future enter into, collective bargaining agreements... If we are unable to negotiate acceptable collective bargaining agreements, we may have to address union-related work actions, including work slowdowns, lockouts and strikes.'
Consolidated Joint Venture Litigation Reserve
Source: J_10k.txt - Segment Financial Information (September 26, 2025): Reserve recorded in Q2 fiscal 2025 'in connection with an unfavorable interim ruling against a consolidated joint venture in which the Company holds a 50% interest' (Consolidated JV Matter); details of the underlying dispute not disclosed in provided excerpts.

Disclosed initiatives

Hybrid and Remote Work Programs

Company operates hybrid working model with requirements for certain employees to work in assigned office or client sites for minimum number of days per week; aims to balance remote flexibility with in-person collaboration and team building.
Workforce Succession Planning

Company identifies need to develop succession plans for key personnel and to recruit and retain qualified technical and leadership personnel; described as critical to business continuity.
Employee Safety & HSSE Programs

Company maintains functional groups to ensure effective HSSE (Health, Safety, Security, Environment) work procedures across organization; many clients require HSSE criteria for contract eligibility.

Governance story

Jacobs Solutions scores 68/100 on Governance criteria. The company operates with a unitary board structure (single class of shares) with no evidence of dual-class voting control, supporting a higher score. However, board independence percentage is not explicitly disclosed in the 10-K provided, preventing precise assessment against the 75% threshold. The company is a holding company with substantially all business conducted through subsidiaries, creating structural complexity. Government contracts represent approximately 8% of fiscal 2025 revenue, exposing the company to regulatory oversight audits, cost controls, and profit restrictions. The 10-K discloses multiple active litigation matters, including professional liability claims, breach of contract claims, labor/employment claims, and government contract audits. A significant 'Consolidated JV Matter' litigation reserve was recorded in Q2 FY2025 (amount not fully disclosed in excerpts but appears material). The company does not disclose specific lobbying expenditures in the provided 10-K excerpt. Cybersecurity and data breach risks are extensively documented, including exposure to state-sponsored attacks and ransomware, though no major breach is disclosed. The company references compliance with Foreign Corrupt Practices Act, export controls, and federal procurement regulations but does not detail any major enforcement actions or fines beyond those accrued in litigation reserves. No evidence of shareholder litigation over governance or climate proposals blocking is present in the filing. The moderate score reflects adequate structural governance but lack of transparency on board independence, lobbying spend, and ongoing regulatory/litigation exposure.

Criticisms on file

Consolidated Joint Venture Litigation Reserve - Undisclosed Material Matter
Source: J_10k.txt - Segment Financial Information (September 26, 2025): 'I&AF revenue and operating profit for the year ended September 26, 2025 were impacted by a reserve in connection with an unfavorable interim ruling against a consolidated joint venture in which the Company holds a 50% interest, with the noncontrolling partner's share included in noncontrolling interests in the Consolidated Statements of Earnings for the respective period.' Specific nature and amount of reserve not disclosed in 10-K excerpt provided.
Cybersecurity and Data Breach Risk Exposure
Source: J_10k.txt - Item 1A Risk Factors: Extensive disclosure of cyber-attack risks including unauthorized access, state-sponsored attacks, ransomware, phishing, and social engineering; risks to operational technology (OT) systems and industrial IoT; no major breach disclosed but 'techniques used to obtain unauthorized access or sabotage systems change frequently' and breaches 'are not identified until they are launched against a target.'
Multiple Pending Litigation and Claims
Source: J_10k.txt - Item 1A Risk Factors and MD&A: Company is party to claims and litigation in normal course of business including personal injury, professional liability, breach of contract, labor/employment claims, and government contract audits; company states litigation 'should not have a material adverse effect on our consolidated financial statements, beyond amounts currently accrued.'
U.S. Government Contracting Regulatory Risk
Source: J_10k.txt - Item 1A Risk Factors: 'Our contracts with governmental agencies and our contracts which receive government funding are subject to audit, investigations and proceedings which could result in adjustments to reimbursable contract costs or, if we are charged with wrongdoing, possible temporary or permanent suspension from participating in government programs, and a variety of penalties can be imposed on us including monetary damages and criminal and civil penalties.'

Disclosed initiatives

Government Contract Compliance Programs

Company operates under Federal Acquisition Regulation, Truth in Negotiations Act, Cost Accounting Standards, and environmental protection and employment practice regulations for U.S. federal government contracts; maintains security clearances and procurement compliance infrastructure.
Cybersecurity and Data Protection Controls

Company implements security measures and technology to protect proprietary, classified, and protected information; addresses GDPR, CCPA, CPRA, and emerging privacy laws; manages data sovereignty requirements for government and client contracts.
Anti-Corruption and Legal Compliance Framework

Company maintains programs to prevent misconduct, fraud, and non-compliance with FCPA, anti-bribery laws, export controls, and lobbying regulations; acknowledges risk of employee, agent, and partner misconduct.

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

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