Resideo Technologies, Inc. (REZI) — ESG & Values Scores

Environment story

Resideo's environmental score reflects undisclosed Scope 1, 2, and 3 emissions data, lack of explicit net-zero target year, and material environmental liabilities. The company recorded a $22 million environmental remediation liability as of December 31, 2025, indicating historical contamination issues. While the 10-K mentions environmental compliance programs and ISO 14001/45001 certifications at select manufacturing locations, no quantified emissions reductions, renewable energy percentage, or credible decarbonization pathway is disclosed. The company acknowledges climate-change related business risks (shift from fossil fuels affecting thermal solutions, extreme weather impacts on Mexican manufacturing facilities) but provides no measurable mitigation targets or interim emissions reporting. Without disclosed emissions metrics, net-zero commitment date, or documented physical decarbonization investments, the score reflects material gaps in environmental accountability.

Criticisms on file

Environmental Remediation Liability: $22 million liability recorded as of December 31, 2025, related to environmental investigation and remediation of sites owned and operated by Resideo.
Source: REZI 10-K Item 1A Risk Factors and MD&A, Note 15. Commitments and Contingencies
Water Stress Risk in Mexico: Several manufacturing facilities operate in water-stressed environments in Mexico; significant natural disaster or water scarcity event could materially disrupt production.
Source: REZI 10-K Item 1A Risk Factors, Seasonality and Business Risks sections
Undisclosed Scope 1, 2, and 3 Emissions: No quantified greenhouse gas emissions data, renewable electricity percentage, or net-zero target year disclosed in 10-K or MD&A.
Source: REZI 10-K and MD&A review—absence of standard ESG disclosures
Climate Change Vulnerability: Shift away from fossil fuels to alternative power sources could adversely impact business if company fails to adapt thermal solutions; regulations on fuel efficiency could shift business away from company.
Source: REZI 10-K Item 1A Risk Factors, 'Regulations and societal actions to respond to global climate change'

Disclosed initiatives

ISO 14001:2015 Environmental Management Systems Certification

Successfully achieved certification at 10 manufacturing locations for ISO 14001:2015 (Environmental Management Systems) in 2025.

Establishes formal environmental management framework but does not quantify emissions reductions or renewable energy adoption.
ISO 45001:2018 Occupational Health and Safety Management Systems

Achieved certification at 8 manufacturing locations for ISO 45001:2018 in 2025.

Addresses workplace safety rather than environmental emissions or decarbonization.
Environmental Compliance Programs and Capital Expenditures

Ongoing environmental compliance programs result in capital expenditures to design, maintain, and upgrade products and operations. No material expenditures solely for regulatory compliance were reported in 2025.

Demonstrates commitment to compliance but lacks quantified environmental benefits or emissions trajectory.

Social story

Resideo's social score of 75 reflects mixed labor practices and moderate diversity efforts. The company employs approximately 14,800 employees globally, with only 3% of U.S. and 7% of non-U.S. employees covered by collective bargaining agreements, indicating minimal unionization and reported good labor relations. CEO-to-worker pay ratio is not disclosed, precluding assessment of pay equity against the 200:1 threshold. The company reports establishment of six employee resource groups (Women, LGBTQIA+, Black, Latino, Veterans, People with Differing Abilities), LinkedIn Learning access, and formal succession planning, signaling commitment to talent development. However, specific leadership diversity percentages are not quantified in the filing. Safety performance is strong: global Total Case Incident Rate (TCIR) of 0.26 per 100 employees in 2025 demonstrates effective occupational health and safety management. The company reports no union-suppression activities or major strikes in the past 24 months. Supply-chain human-rights risks are not explicitly addressed; the company operates six manufacturing facilities in Mexico without disclosed third-party audits for labor compliance. No modern slavery statement or conflict minerals policy is disclosed.

Criticisms on file

No Disclosed CEO-to-Median-Worker Pay Ratio: Executive compensation structure not disclosed in 10-K; inability to assess pay equity against social benchmarks.
Source: REZI 10-K review—absence of CEO pay ratio disclosure in compensation section
No Disclosed Leadership Diversity Metrics: Specific percentages of women and underrepresented groups in executive or board leadership not disclosed; only generic reference to 'inclusive workforce' efforts.
Source: REZI 10-K Item 1B, Human Capital section
Supply-Chain Labor Risk Not Quantified: Company operates six manufacturing facilities in Mexico and relies on third-party manufacturing partners without disclosed third-party labor audits or supply-chain human-rights assessments.
Source: REZI 10-K Item 2. Properties and Item 1A Risk Factors
No Modern Slavery Statement or Conflict Minerals Policy: 10-K does not disclose compliance with modern slavery legislation or conflict minerals sourcing policies.
Source: REZI 10-K review—absence of modern slavery or conflict minerals disclosures

Disclosed initiatives

Employee Resource Groups (ERGs)

Six ERGs established and available to all employees: Women, LGBTQIA+, Black, Latino, Veterans, and People with Differing Abilities. Inclusive outreach includes partnerships with Society of Women Engineers (SWE) and Direct Employers Association.

Supports diversity and inclusion in recruitment and employee engagement; ERG details do not disclose participation rates or measurable diversity outcomes.
Talent Development and Learning

LinkedIn Learning platform provides skills development through thousands of courses; monthly 'Empowering For Success' webinar series; formal mentor program; quarterly 'People Leadership Series' offering executive insights; annual 'Employee Voice Survey' with action planning by business unit.

Demonstrates commitment to employee growth but no quantified training participation or promotion/retention metrics disclosed.
Occupational Health and Safety

Global Total Case Incident Rate (TCIR) of 0.26 per 100 employees in 2025. Certified at 8 manufacturing locations for ISO 45001:2018 (Occupational Health and Safety Management Systems). Proactive safety measures including hazard observations, health and safety inspections, and incident investigations.

Strong safety performance; TCIR of 0.26 is materially better than industry benchmarks (typical range 2–4 per 100 employees), indicating effective occupational health governance.
Pay-for-Performance Compensation and Total Rewards

Compensation structure emphasizes 'pay-for-performance' on annual and long-term basis. Comprehensive benefits including paid time off, flexible work schedules, education assistance programs.

Reflects intention to align employee and shareholder interests; CEO-to-worker pay ratio not disclosed, limiting assessment against social benchmarks.
Forbes Recognition

Named to three Forbes 2026 corporate performance lists: America's Most Trusted Companies, America's Best Companies, and America's Best-in-State Companies for Arizona (2025).

Third-party recognition of employee trust and company culture but not a direct social metric.

Governance story

Resideo's governance score of 70 reflects a mixed governance profile with material structural and control concerns. Board independence is not explicitly disclosed, precluding precise assessment against the 75% threshold, but presence of two CD&R-designated directors and CD&R's ~19.9% voting stake introduces significant minority shareholder influence concerns. The company does not employ a dual-class share structure, mitigating voting-power concentration risks. However, the issuance of Series A Cumulative Convertible Participating Preferred Stock to CD&R Channel Holdings in June 2024 creates preferential rights and anti-dilution protections that diverge from common shareholder interests and effectively reduce common shareholder voting power. Lobbying expenditures are not disclosed; the company mentions environmental compliance obligations and regulatory risks but does not detail climate-deregulation lobbying or industry-association climate-misalignment positions. The company faces no material active antitrust, consumer-safety, or financial-fraud proceedings as of the 10-K filing date, though it maintains a $22 million environmental remediation liability and faces ongoing tax disputes with Honeywell under the Indemnification Agreement (terminated August 2025 for $1.59 billion). Internal controls are assessed as effective, with no material weaknesses identified. Governance risk is heightened by the proposed ADI Spin-Off (expected H2 2026), which creates separation complexity and management distraction.

Criticisms on file

CD&R Preferred Stock and Minority Shareholder Influence: CD&R Channel Holdings holds Series A Cumulative Convertible Participating Preferred Stock with anti-dilution rights, preference over common stock, and ~19.9% total voting power; entitled to designate up to two board directors; certain corporate actions require CD&R approval, creating potential conflicts with common shareholder interests.
Source: REZI 10-K Item 5 (Stock Performance section) and Item 1A Risk Factors, 'The preferred stock issued in connection with the Snap One transaction...'
Board Independence Not Disclosed: Specific board independence percentage not stated in 10-K; presence of two CD&R-designated directors (Sleeper and Stroup) represents 22% of an apparent nine-member board, but full independence metrics unavailable for assessment against governance best practices.
Source: REZI 10-K Item 1A Risk Factors and governance structure disclosure
Lobbying Expenditure and Climate-Policy Engagement Not Disclosed: 10-K does not disclose annual lobbying spend or identify specific positions on climate regulation, environmental deregulation, or trade policy advocacy.
Source: REZI 10-K review—absence of lobbying and political engagement disclosures
Honeywell Trademark License and Tax Matters Agreement Termination Risk: Company relies on Honeywell Home trademark and intellectual property under license; Trademark Agreement is terminable by Honeywell under specified circumstances and automatically terminates upon change of control not approved by Honeywell. August 2025 termination of Indemnification Agreement required $1.59 billion one-time payment, materially impacting cash position and debt levels.
Source: REZI 10-K Item 1A Risk Factors, 'Risks related to the Honeywell Spin-Off' and MD&A Liquidity section
Proposed ADI Spin-Off Complexity and Execution Risk: Announced separation of ADI Global Distribution into independent publicly traded company expected H2 2026; spin-off is complex, time-consuming, subject to regulatory approval and tax ruling, and poses material risks of delay, higher costs than anticipated, management distraction, and failure to realize strategic benefits.
Source: REZI 10-K Item 1A Risk Factors, 'Risks Associated with the Proposed ADI Spin-Off'
Restricted Share Buyback Program: As of December 31, 2025, company had $108 million remaining under authorized share repurchase program; no repurchases executed in 2025, indicating constraints on capital allocation flexibility due to debt service obligations and Indemnification Agreement termination.
Source: REZI 10-K Item 5, Issuer Purchases of Equity Securities

Disclosed initiatives

Board and Committee Oversight of Cybersecurity

Audit Committee charged with oversight of cybersecurity risks, policies, and programs. Chief Information Security Officer (CISO) reports regularly to Audit Committee and full Board on operational, business cyber risks, emerging threats, and strategic security initiatives. Cybersecurity review is a standing calendar item.

Demonstrates board-level governance of material cyber and data risks; detailed NIST-based security framework and incident response procedures disclosed.
Enterprise Risk Management (ERM) Program

ERM program managed by senior management, aligned with strategic and business objectives; policies and processes based on NIST and ISO standards. Risk assessments and incident management follow structured frameworks.

Establishes formal risk governance but effectiveness depends on Board's actual oversight and management execution.
Internal Control Assessment

Company maintains effective internal controls over financial reporting as of December 31, 2025; no material weaknesses identified. Complies with Sarbanes-Oxley Section 404 requirements.

Financial reporting reliability supported; no material control deficiencies disclosed.
Compliance with Debt Covenants

As of December 31, 2025, company was in compliance with all covenants related to A&R Credit Agreement, Senior Notes due 2029, and Senior Notes due 2032.

No covenant breaches or lender acceleration risk; demonstrates financial discipline.

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

More in Industrials

Space Exploration Technologies Corp. (SPCX) Caterpillar Inc. (CAT) GE Aerospace (GE) RTX Corporation (RTX) Union Pacific Corporation (UNP) The Boeing Company (BA)