Environmental

Fleet Emissions Profile: Hertz operates a large rental fleet with a significant proportion of internal combustion engine vehicles, resulting in a high overall carbon footprint relative to peers. Recent efforts to electrify the fleet have been scaled back, limiting near-term emissions reductions.

Resource Efficiency: The company has implemented some initiatives to improve vehicle utilization and reduce waste, but lacks comprehensive public targets or disclosures on energy or water usage compared to industry leaders.

Regulatory Exposure: Hertz faces moderate regulatory risk from evolving emissions standards and potential future restrictions on high-emission vehicles in key markets, which could impact fleet costs and asset values.

Hertz’s environmental performance is constrained by a high-emission fleet and limited progress on electrification. While some efficiency measures exist, the company lags peers with more ambitious sustainability targets and disclosures.

Social

Workforce Management: Hertz has experienced significant workforce reductions and restructuring in recent years, with ongoing challenges in employee retention and engagement following its bankruptcy and recovery.

Customer Relations: The company has faced reputational risks from high-profile customer service incidents and litigation, though it has taken steps to improve complaint resolution and transparency.

Community Impact: Hertz participates in some local community initiatives, but its social impact programs are less developed and less visible than those of leading peers.

Social performance is moderate, with workforce and customer relations remaining key risks. While Hertz has made some improvements post-bankruptcy, its social programs and stakeholder engagement are not yet industry leading.

Governance

Board Independence and Oversight: Hertz’s board composition has improved post-bankruptcy, with increased independence and relevant industry expertise, but board refreshment and diversity still lag best practices.

Financial Discipline: The company maintains high leverage (net debt/EBITDA ~2.9x) and a negative debt-to-equity ratio, reflecting a capital structure that remains a risk factor compared to peers.

Risk Management and Compliance: Hertz has strengthened compliance and risk controls since its restructuring, but legacy issues and ongoing litigation continue to pose governance challenges.

Governance has improved since restructuring, but financial leverage and legacy risk exposures remain. Board structure and risk management are adequate but not best-in-class.

Overall Score

Hertz’s ESG profile is moderate, reflecting persistent environmental and social risks and only incremental governance improvements post-bankruptcy. The company trails industry leaders in emissions reduction, workforce stability, and board diversity, with financial leverage and legacy issues constraining further progress.