Teradata Corporation (TDC) — ESG & Values Scores

Environment story

Teradata discloses minimal environmental data, with no verified Scope 1, 2, or 3 emissions metrics published in the 10-K. The company has not disclosed a net-zero target year or interim decarbonization roadmap. While the company acknowledges ESG regulatory pressures and has amended its Credit Facility to include ESG KPI adjustments (September 2023), no specific environmental initiatives, renewable energy commitments, or emissions reduction targets are articulated. The company faces climate-related operational risks (California headquarters exposed to seismic, wildfire, drought, and water-scarcity hazards) but does not disclose mitigation infrastructure investments. Absence of Scope 3 disclosure is particularly material given the company's reliance on cloud service providers (AWS, Google Cloud, Microsoft Azure) and data-center operations, which likely represent significant indirect emissions. Greenwashing risk is moderate: ESG regulatory acknowledgment without quantified targets suggests compliance-posturing rather than operational commitment.

Criticisms on file

Climate and natural-disaster risk exposure: Headquarters and data lab located in California, a region with history of seismic activity, wildfires, extreme drought risk, flooding, and water scarcity. 10-K acknowledges potential for disruptions from earthquakes, tornadoes, hurricanes, floods, tsunamis, typhoons, drought, and fire.
Source: TDC_10k.txt, Item 1A. Risk Factors: 'Any disruption, including as a result of natural disasters or climate change, at or near any of our facilities...'
Evolving environmental regulations: Company acknowledges increasing environmental regulations, particularly in California and European Union, which may result in changes in demand for resources and adversely impact availability or cost of goods and services.
Source: TDC_10k.txt, Item 1A. Risk Factors: 'Environmental regulations are increasing in their frequency of issuance and applicability to our company, particularly due to our operations in California and the European Union.'
Foreign currency losses in Argentina operations: Company engaged in Blue Chip Swap transactions to remit cash from Argentine operations, resulting in pre-tax losses of $13 million (2023), $4 million (2024), and $1 million (2025), indicating financial strain from currency controls.
Source: TDC_10k.txt, MD&A: 'Commencing in October 2023 and continuing throughout 2024 and 2025, the Company began entering into Blue Chip Swap transactions...'

Disclosed initiatives

ESG-Linked Credit Facility Amendment

On September 21, 2023, Teradata amended its Credit Agreement to establish key performance indicators with respect to certain environmental, social, and governance (ESG) targets, pursuant to which certain positive or negative adjustments would be made to various fees and applicable margin based on Teradata's performance against such ESG targets.

Financial incentive structure for ESG performance, but no specific targets or metrics disclosed in 10-K.

Social story

Teradata reports a global workforce of approximately 5,100 employees (30% U.S., 70% international) as of December 31, 2025, with headcount decreased during 2025 as part of cost-optimization and transformation initiatives. The company emphasizes flexible work environment, competitive compensation, and comprehensive benefits (including 14 weeks parental leave for all parents). No CEO-to-median-worker pay ratio, leadership diversity percentages, or turnover rates are disclosed in the 10-K. No active union-suppression activities or major strikes within 24 months are documented. The company highlights talent development programs, community engagement, and STEM education support. However, absence of disclosed diversity metrics (workforce and leadership representation by gender/race), pay-equity commitments, and supply-chain ethics audits represents significant transparency gaps. Reorganization and restructuring activities announced August 2024 (global restructuring, workforce reductions, leadership transitions) introduce execution and morale risks but are presented as cost-optimization rather than layoff announcements. No documented labor violations, NLRB complaints, or strikes are evident in the 10-K.

Criticisms on file

Global restructuring and workforce reductions: On August 5, 2024, Teradata announced realignment of sales function and initiation of global restructuring and cost-reduction actions, elements of which continued into 2025. Risk factors disclose that reorganization activities 'involve risks and may divert management's attention from our core businesses, increase expenses on a short-term basis, reduce revenues, or disrupt execution of our strategy.' Company used approximately $35 million in 2025 for reorganization activities and workforce optimization.
Source: TDC_10k.txt, Item 1A. Risk Factors: 'Failure to successfully complete reorganization activities in connection with our transformation activities or otherwise could negatively affect our operations.'
Talent acquisition and retention challenges: Company acknowledges intense competition for highly skilled personnel as companies accelerate AI adoption. Risk disclosure states: 'Competition for highly skilled personnel has intensified as companies seek to accelerate AI adoption. As a result, there can be no assurance that key personnel will remain with us, and it may be difficult and costly to replace such personnel or hire qualified employees.'
Source: TDC_10k.txt, Item 1A. Risk Factors: 'We depend on key employees and face competition in hiring and retaining qualified employees.'
No disclosed CEO-to-median-worker pay ratio, diversity metrics, or pay-equity commitments: The 10-K provides no quantified data on executive compensation ratios, workforce diversity by gender or race, leadership diversity, gender or racial pay gaps, or formal pay-equity commitments. This represents material transparency gap on social metrics.
Source: TDC_10k.txt: Absence of diversity and compensation data in Item 1 (Business) and Item 11 (Executive Officers).

Disclosed initiatives

Flexible Work Environment and Remote Work Policy

Teradata operates with a fully flexible work environment, empowering employees to make decisions about where and how they can be most productive. Employees are offered choice of remote work locations, which the company acknowledges introduces additional security challenges.

Positive: Broadens talent pool and supports work-life balance. Risk: Increases information security endpoint management burden.
Competitive Compensation and Inclusive Benefits

Company offers competitive base pay, sales incentives, annual bonuses, stock awards, Employee Stock Purchase Plan, Retirement Savings Plans, healthcare and insurance benefits, and paid time off. Specific benefit includes parental leave offering birthing and non-birthing parents up to 14 weeks of paid leave for bonding with a new child (birth, adoption, placement, or foster care).

Supports employee retention and family equity; reflects inclusive benefits design.
Talent Development and Professional Growth

Company provides on-demand learning resources (LinkedIn Learning), facilitated learning programs (Communication, Emotional Intelligence, Influence, Time Management), and executive/leadership development programs. Company supports professional development pathways and frequent manager-employee conversations on performance and development.

Supports internal career progression and skill development.
Community Engagement and Volunteer Programs

Teradata Cares program empowers employees to volunteer and give to qualified non-profit agencies. Company provides matching donations for employee contributions, project grants, and supports communities with employee populations. Every employee receives 4 days per year for volunteer work during normal working hours.

Strengthens community ties and employee engagement.
STEM Education Support

Company supports local STEM education programs to ensure emerging leaders in communities have opportunities to explore STEM interests.

Contributes to workforce pipeline development and community development.
Health, Safety, and Wellness Programs

Company committed to health, safety, and wellness of employees and families. Programs include quarterly well-being days, global paid holidays for all employees, and flexible/inclusive wellness programs catering to diverse needs.

Supports employee well-being and retention.

Governance story

Teradata operates with a single-class common stock structure (no dual-class voting disclosed), supporting egalitarian shareholder voting rights. Board independence percentage is not disclosed in the 10-K. The company acknowledges complex regulatory environment (technology, AI/ML, data privacy, ESG reporting, environmental protection, export controls, FCPA, UK Bribery Act) and has amended its Credit Facility to include ESG KPI performance adjustments (September 2023), signaling governance-level commitment to ESG accountability. Lobbying expenditures are not disclosed. The company discloses $38 million in unrecognized tax benefits as of December 31, 2025, and settled a 2020 federal income tax audit in Q1 2025 (with $9 million tax benefit reversal). No active antitrust proceedings, consumer-safety litigation, or financial-fraud proceedings are documented in the 10-K. The company acknowledges risks from IP infringement claims (patent assertion entities / non-practicing entities), which have been historically burdensome but not material to date. A significant legal settlement with SAP (disclosed in Subsequent Events, Note 17) involves $480 million gross payment with estimated net proceeds of $355–$362 million after fees and expenses, though this settlement was reached February 19, 2026 (post-10-K filing). Material weakness in internal controls or ERP implementation risks are not disclosed for 2025.

Criticisms on file

Intellectual property litigation risk: Company discloses ongoing risk from patent assertion entities (PAEs) and non-practicing entities (NPEs). 10-K states: 'We are seeing an extended trend towards aggressive enforcement of intellectual property rights, especially by so-called "patent assertion entities" ("PAEs") or "non-practicing entities" ("NPEs")... we have been, and in the future could be, subject to infringement claims which, regardless of their validity, could be expensive, time consuming, and divert company resources.'
Source: TDC_10k.txt, Item 1A. Risk Factors: 'Gaps in protection of Teradata's intellectual property or unlicensed use of third-party intellectual property could impact our business and financial condition.'
Unrecognized tax benefits and audit exposure: As of December 31, 2025, company has $38 million in unrecognized tax benefits ($13 million non-current liability, $25 million offset to deferred tax assets). Company acknowledges: 'Tax authorities may disagree with certain positions we have taken and assess additional taxes. We regularly assess the likely outcomes of these audits to determine the appropriateness of our tax provision; however, there can be no assurance that we will accurately predict the outcomes of these audits, and the actual outcomes of these audits could have a material impact on our financial condition or results of operations.'
Source: TDC_10k.txt, Item 1A. Risk Factors: 'A change in our effective tax rate can have a significant adverse impact on our business.'
ERP system implementation risks: Company completed deployment of multi-year ERP system modernization initiative in 2025, with stabilization and optimization efforts remaining ongoing. 10-K discloses: 'Challenges related to system integration, process alignment, or user adoption during this stabilization phase could result in operational disruption, increased costs, or impacts to financial reporting, which could adversely affect our business, financial condition, or results of operations.'
Source: TDC_10k.txt, Item 1A. Risk Factors: 'Challenges with our new enterprise resource planning ("ERP") system could adversely impact our business and operations.'
Export control and FCPA compliance risks: Company acknowledges subject to U.S. export controls, foreign trade policy changes, and FCPA/UK Bribery Act enforcement. 10-K states: 'Given the breadth and scope of our international operations, we may not in all cases be able to detect improper or unlawful conduct by our partners, distributors, resellers, customers, and employees, despite our high ethics, governance and compliance standards, which could put the Company at risk regarding possible violations of such laws and could result in various civil or criminal fines, penalties or administrative sanctions.'
Source: TDC_10k.txt, Item 1A. Risk Factors: 'Generating substantial revenues from our international operations pose several risks.'
Board independence and shareholder governance: No board independence percentage disclosed in 10-K. Executive officer section lists 6 officers but does not provide board composition data or independence metrics.
Source: TDC_10k.txt: Absence of board independence percentage and board composition detail in Item 11 (Executive Officers) and corporate governance sections.

Disclosed initiatives

ESG-Linked Credit Facility Amendment

On September 21, 2023, Teradata amended its $500 million Term Loan and $400 million Revolving Facility Credit Agreement to establish key performance indicators with respect to certain environmental, social, and governance (ESG) targets, with positive or negative adjustments to fees and applicable margin based on Teradata's performance.

Aligns debt covenants with ESG performance, creating financial incentive structure and board-level accountability for ESG targets.
Interest Rate Hedge and Cross-Currency Swap

Teradata entered into an interest rate swap to hedge approximately 90% of the floating interest rate of the total $500 million Term Loan and a cross-currency swap to hedge a portion of Euro currency exposure of its net investment in certain foreign subsidiaries.

Mitigates interest rate and foreign currency volatility risk; demonstrates active financial risk management.
Code of Conduct and Compliance Policies

Company maintains Code of Conduct available at https://www.teradata.com/about-us/corporate-governance/code-of-conduct/. Company acknowledges subject to diverse and complex global laws and regulations including technology (AI/ML), data privacy, environmental protection, ESG reporting, corporate governance, privacy and data protection, taxation, public disclosure, and reporting.

Establishes formal governance framework; demonstrates compliance orientation.
Internal Audit and Tax Position Management

Company maintains formal accounting policy on uncertain tax positions and regularly reviews deferred tax assets for recoverability. Company records unrecognized tax benefits and related valuation allowances reflecting conservative tax position accounting.

Demonstrates internal control discipline and tax compliance rigor.

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

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