Service Corporation International (SCI) — ESG & Values Scores

Environment story

SCI operates in the deathcare industry (funeral homes and cemeteries) with minimal disclosed environmental impact metrics. The 10-K contains no quantified Scope 1, 2, or 3 emissions data, no renewable energy percentage, and no net-zero target year. Cremation operations are regulated by state environmental authorities but no proactive decarbonization initiatives are documented. The company acknowledges exposure to climate risks (natural disasters in California, Texas, Florida) but does not demonstrate a comprehensive climate strategy. No carbon offsets or renewable investments are mentioned. The absence of material environmental disclosures and the reliance on trust-fund investments create uncertainty regarding actual environmental performance.

Criticisms on file

No quantified emissions reporting or climate targets disclosed in 10-K.
Source: SCI 10-K 2025, Risk Factors and MD&A sections
Exposure to climate-related business interruption risks (wildfires, natural disasters in high-concentration states).
Source: SCI 10-K 2025, Risk Factor: 'Results may be adversely affected by significant weather events, natural disasters, catastrophic events or public health crises'

Disclosed initiatives

Regulatory Compliance on Cremation & Embalming

Cremation and embalming facilities subject to stringent state health and environmental regulations with risk of regulatory investigations.

Maintains operational compliance but does not represent proactive decarbonization.

Social story

SCI's 10-K does not disclose CEO-to-median-worker pay ratios, workforce turnover rates, or formal diversity metrics (gender or racial composition of leadership/workforce). The company identifies attraction and retention of licensed funeral professionals as a critical challenge due to stringent state licensing requirements. No documented union-suppression activities or major strikes within 24 months are mentioned. No supply-chain human-rights audits or labor practice controversies are disclosed. The company operates in a high-touch, customer-sensitive business requiring trained professionals, but lacks transparent diversity and compensation disclosures typical of ESG reporting.

Criticisms on file

No CEO-to-worker pay ratio disclosed.
Source: SCI 10-K 2025 — absence of disclosure in executive compensation section
No workforce diversity metrics (gender, racial composition) disclosed.
Source: SCI 10-K 2025 — absence of diversity disclosure in risk factors or MD&A
High barriers to entry due to state licensing requirements for funeral professionals.
Source: SCI 10-K 2025, Risk Factor: 'Our failure to attract and retain qualified sales personnel and licensed funeral professionals'

Disclosed initiatives

Talent Attraction and Retention Programs

Company acknowledges need to attract and retain qualified sales personnel and licensed funeral professionals to maintain service quality and customer trust.

Addresses workforce stability but no quantified outcomes or diversity targets disclosed.

Governance story

SCI's governance structure and board independence percentage are not disclosed in the provided 10-K excerpts. The company operates under standard debt covenants with affirmative and negative restrictions typical of leveraged companies. No dual-class share structure, lobbying expenditures targeting environmental deregulation, or material antitrust proceedings are mentioned. The company is subject to FTC review since 2020 regarding funeral industry practices and regulations, and faces ongoing litigation and regulatory compliance risks. Data privacy and cybersecurity governance is acknowledged as important but no board-level committee structure is disclosed. The governance disclosure is limited and does not meet modern ESG transparency standards.

Criticisms on file

FTC review of funeral industry practices ongoing since 2020 with potential for future regulatory action.
Source: SCI 10-K 2025, Risk Factor: 'Regulation and compliance could have a material adverse impact on our financial results'
Significant indebtedness and complex bank credit facility covenants limit strategic flexibility and capital allocation.
Source: SCI 10-K 2025, Risk Factor: 'Our level of indebtedness could adversely affect our cash flows'
Unclaimed property audit proceedings and potential escheatment liability for preneed contracts.
Source: SCI 10-K 2025, Risk Factor: 'The application of unclaimed property laws by certain states to our preneed funeral and cemetery backlog'
Cemetery burial practice litigation based on historical burial practices and alleged violations of procedures.
Source: SCI 10-K 2025, Risk Factor: 'Cemetery burial practice claims could have a material adverse impact on our financial results'

Disclosed initiatives

Data Security and Cybersecurity Governance

Company maintains substantial security measures and data backup systems to protect customer and employee personal information; acknowledges AI technology risks.

Mitigates but does not eliminate cybersecurity and data-privacy risks.
Regulatory Compliance Infrastructure

Subject to FTC oversight, state licensing and trust-fund audits, environmental permitting, and preneed sales compliance audits.

Ensures minimum compliance but does not indicate best-in-class governance.

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

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