Car Rental & Leasing

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Current language: English
Entities in this industry rent or lease passenger vehicles to customers. Consumers typically rent vehicles for periods of less than a month, whereas leases may last a year or more. The industry includes car-sharing business models in which rentals are measured hourly and typically include subscription fees. Car rental entities operate out of airport locations, which serve business and leisure travellers, and out of neighbourhood locations, which mostly provide repair-shop and weekend rentals. The industry is concentrated, with several dominant market players, who operate globally using a franchise model. The growth of public transit and ride-sharing services in major metropolitan areas may represent a threat to the long-term profitability of the Car Rental & Leasing industry if customers choose to hail rides or take public transit rather than rent vehicles.

Relevant Issues (2 of 26)

Why are some issues greyed out? The SASB Standards vary by industry based on the different sustainability-related risks and opportunities within an industry. The issues in grey were not identified during the standard-setting process as the most likely to be useful to investors, so they are not included in the Standard. Over time, as the ISSB continues to receive market feedback, some issues may be added or removed from the Standard. Each company determines which sustainability-related risks and opportunities are relevant to its business. The Standard is designed for the typical company in an industry, but individual companies may choose to report on different sustainability-related risks and opportunities based on their unique business model.
  • Environment
    • GHG Emissions
    • Air Quality
    • Energy Management
    • Water & Wastewater Management
    • Waste & Hazardous Materials Management
    • Ecological Impacts
  • Social Capital
    • Human Rights & Community Relations
    • Customer Privacy
    • Data Security
    • Access & Affordability
    • Product Quality & Safety The category addresses issues involving unintended characteristics of products sold or services provided that may create health or safety risks to end-users. It addresses a company’s ability to offer manufactured products and/or services that meet customer expectations with respect to their health and safety characteristics. It includes, but is not limited to, issues involving liability, management of recalls and market withdrawals, product testing, and chemicals/content/ingredient management in products.
    • Customer Welfare
    • Selling Practices & Product Labeling
  • Human Capital
    • Labor Practices
    • Employee Health & Safety
    • Employee Engagement, Diversity & Inclusion
  • Business Model and Innovation
    • Product Design & Lifecycle Management The category addresses incorporation of environmental, social, and governance (ESG) considerations in characteristics of products and services provided or sold by the company. It includes, but is not limited to, managing the lifecycle impacts of products and services, such as those related to packaging, distribution, use-phase resource intensity, and other environmental and social externalities that may occur during their use-phase or at the end of life. The category captures a company’s ability to address customer and societal demand for more sustainable products and services as well as to meet evolving environmental and social regulation. It does not address direct environmental or social impacts of the company’s operations nor does it address health and safety risks to consumers from product use, which are covered in other categories.
    • Business Model Resilience
    • Supply Chain Management
    • Materials Sourcing & Efficiency
    • Physical Impacts of Climate Change
  • Leadership and Governance
    • Business Ethics
    • Competitive Behavior
    • Management of the Legal & Regulatory Environment
    • Critical Incident Risk Management
    • Systemic Risk Management

Disclosure Topics

What is the relationship between General Issue Category and Disclosure Topics? The General Issue Category is an industry-agnostic version of the Disclosure Topics that appear in each SASB Standard. Disclosure topics represent the industry-specific impacts of General Issue Categories. The industry-specific Disclosure Topics ensure each SASB Standard is tailored to the industry, while the General Issue Categories enable comparability across industries. For example, Health & Nutrition is a disclosure topic in the Non-Alcoholic Beverages industry, representing an industry-specific measure of the general issue of Customer Welfare. The issue of Customer Welfare, however, manifests as the Counterfeit Drugs disclosure topic in the Biotechnology & Pharmaceuticals industry.
General Issue Category
(Industry agnostic)

Disclosure Topics (Industry specific) for: Car Rental & Leasing

Product Quality & Safety
  • Customer Safety

    Meeting customer satisfaction standards for the Car Rental & Leasing industry means ensuring that vehicles are in proper working condition and that customers understand how to safely operate the vehicles. Since rental vehicles accumulate significant mileage compared to private vehicles, frequent maintenance and repair are required, which can be costly. Vehicle recalls are of material significance to the industry, because the associated repairs can temporarily reduce entities’ available fleet, create customer service issues, and reduce the residual value of cars. In addition, if customers are involved in accidents and the car rental entity is found negligent, the entity may face legal fees, impaired brand value, and a higher risk profile. It can be complex to balance saving costs with ensuring safety. Adding to the complexity of the issue is the franchise model under which car rental and leasing entities operate, as franchisees separately own and manage their own fleets.
Product Design & Lifecycle Management
  • Fleet Fuel Economy & Utilisation

    By providing fuel-efficient and alternative fuel vehicles, car rental and leasing entities may improve the environmental sustainability of their operations while also achieving financial benefits. Consumer demand for more efficient vehicles is growing, motivated by both environmental stewardship and lower operating costs associated with fuel efficiency. In addition to providing fuel-efficient and low-emission fleets, entities in the industry are adapting to changing vehicle needs by providing car-sharing services. In urban settings, car sharing is an attractive alternative to vehicle ownership that reduces congestion and the environmental impacts associated with private ownership of vehicles. By maximising fleet utilisation rates through car-sharing, entities may improve operational efficiency.

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Current Industry: Car Rental & Leasing

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