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THE BUSINESS OF SUSTAINABILITY Driving our Future Forward FISCAL YEAR 2014
THE BUSINESS OF SUSTAINABILITYDriving our Future Forward
FISCAL YEAR 2014
1
Letter from President & CEO Pam Nicholson
2
About Enterprise Holdings
4
Goals & Progress
6
Environmental Stewardship
12
Social
16
Governance
21
About this Report
22
GRI Index
TABLE OF CONTENTS
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PAM NICHOLSON PRESIDENT AND CHIEF EXECUTIVE OFFICER, ENTERPRISE HOLDINGS
To our stakeholders:
Welcome to Enterprise Holdings’ 2014 Sustainability Report. Thank you for taking the time to review these highlights of our sustainability performance and activities for this past fiscal year (ended July 31, 2014).
Following the example set by our founders, the Taylor family, we remain relentlessly focused on using the power of our global network to meet the needs of our customers, our communities and the environment. But, even though our network now spans many cultures and continents, we continue to put customers and employees first, wherever we do business. We’re engaged in the communities we serve. And we take a long-term view, investing in sustainable solutions today for a greater return for everyone tomorrow.
It’s an approach that’s driven strong results over the last year, as it has for nearly 60 years. Here are just a few examples:
Enterprise CarShare helped sponsor the 2013 Shared Use Mobility Conference, the world’s first summit explicitly focused on shared-use mobility hosted by the Transportation Sustainability Research Center.
In keeping with our commitment to invest in local communities and diverse suppliers, we launched an ACDBE Certification Assistance Program to help more than 3,000 of our existing suppliers earn certification to support our airport-based operations.
As part of our continued commitment to help introduce customers to emerging sustainable automotive technologies, we partnered with the Electrification Coalition and area travel industry partners to launch Drive Electric Orlando — an initiative to make electric vehicles and charging infrastructure more accessible to vacationers.
Looking back on these and the other highlights detailed in the following pages, we’re pleased with what our team has accomplished. But we’re also driving forward with anticipation to 2015 when we’ll report the outcomes of our first set of five-year sustainability goals and announce new targets for the year 2020.
Thank you for taking the time to review the progress we are making toward a more sustainable future.
Pam Nicholson President and Chief Executive Officer Enterprise Holdings, Inc.
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ENTERPRISE HOLdINgS AT-A-GLANCE
Enterprise Holdings is a leader in the global travel industry — the largest car rental company in the world as measured by revenue, fleet and employees. The company, along with its affiliate Enterprise Fleet Management, offers a total transportation solution for consumers and businesses alike with a fleet of more than one million vehicles. Through its regional subsidiaries, franchisees and affiliates, Enterprise Holdings operates the Alamo Rent A Car, Enterprise Rent-A-Car and National Car Rental brands in neighborhood and airport locations in more than 70 countries and territories. These operations span the U.S., Canada, Mexico, Caribbean, Latin America, Middle East, Asia and Europe.
Enterprise Rent-A-Car offers great rates, neighborhood convenience and outstanding service. Backed by a network of neighborhood locations, Enterprise Rent-A-Car specializes in serving customers who need a temporary replacement while their own vehicle is being repaired, as well as those who want to take a short business or leisure trip. Other transportation services marketed under the Enterprise brand name include Enterprise CarShare, Enterprise Rideshare, Enterprise Car Sales, Enterprise Commercial Trucks, Enterprise Fleet Management and Zimride by Enterprise.
Alamo Rent A Car provides vehicle rentals for leisure travelers and is the largest car rental provider to international travelers visiting North America. Alamo offers customers the opportunity to become an Alamo Insider, a loyalty program that provides a guaranteed discount of five percent and exclusive upgrades, as well as the ability to drive away from the airport without stopping at the rental counter.
National Car Rental serves the daily rental needs of frequent airport travelers seeking choice, convenience and time savings for their personal and business trips. National helped pioneer the car rental industry’s first frequent renter program, Emerald Club, and provides business travelers with expedited service at all of the top 50 airports in the U.S. for business travel.
Global Network:
8,600 LOCATIONS(airport and neighborhood)
Annual Revenue: $17.8 BILLION*
Workforce:
83,000 EMPLOYEES*
Fleet:
1.5 MILLION**includes Enterprise Fleet Management
FY2014 AWARdS & RECOgNITIONSSilver Magellan Award from Travel Weekly
Project ICARUS Sustainability Gold Medal from Global Business Travel Association Foundation
The Top Three Rankings in the J.D. Power and Associates Rental Car Satisfaction Survey
Most Trusted Brand from Entrepreneur Magazine
Best Employers for Veterans from Military Times
Top Veteran-Friendly Company from U.S. Veterans Magazine
Most Valuable Employers for Military from CivilianJobs.com
Supplier Recognition Award from USAA
Graduate Employer of the Year (UK) from TARGETjobs National Graduate Recruitment Awards
North American Candidate Experience Award from Talent Board
Talent Warrior Recognition from Glassdoor Career Site
WORLD HEADQUARTERSEnterprise Holdings, Inc. 600 Corporate Park Drive St. Louis, Missouri 63105 (314) 512-2880 www.enterpriseholdings.com
©2013 Enterprise Holdings, Inc. 06/13
Enterprise Holdings and its affiliate Enterprise Fleet Management together offer a total transportation solution. Combined, these businesses – which include extensive car rental and car sharing services, commercial truck rental, corporate fleet management, and retail car sales – accounted for $15.4 billion in revenue and operated 1.3 million vehicles throughout the world in fiscal year 2012. Enterprise Holdings, through its regional subsidiaries, operates the largest fleet of vehicles in the world through a global network of more than 8,200 airport and neighborhood locations under the Enterprise Rent-A-Car, National Car Rental, and Alamo Rent A Car brands. Its affiliate, Enterprise Fleet Management, provides full-service fleet management to companies and organizations with small- to medium-sized fleets. Other transportation services marketed under the Enterprise brand name include Enterprise CarShare, Enterprise Rideshare, Enterprise Car Sales, and Enterprise Commercial Trucks.
Enterprise Holdings is the largest car rental company in the world as measured by revenue, fleet, and employees. Enterprise Holdings’ annual revenues also place it near the top of the travel industry, exceeding all other rental car companies, and most airlines, cruise lines, hotels, tour operators and online travel agencies.
ANNUAL REVENUE
WORLDWIDE
FY 2012 $15.4 billion*
FY 2011 $14.1 billion
FY 2010 $12.6 billion
FY 2009 $12.1 billion
FY 2008 $13.1 billion
FY 2007 $9.5 billion
FY 2006 $8.9 billion
FY 2005 $8.2 billion
FY 2004 $7.4 billion
FY 2003 $6.9 billion
FY 2002 $6.5 billion
*FY 2012 revenue includes revenue from Enterprise Fleet Management, which was spun out from
Enterprise Holdings on August 1, 2011.
For more information about Enterprise Holdings’ Corporate Sustainability Report or
the company’s environmental stewardship and long-term commitment to the sustainability
of its business, visit www.DrivingFutures.com.
Alamo Rent A Car www.alamo.com
Enterprise Rent-A-Car www.enterprise.com
National Car Rental www.nationalcar.com
Enterprise Car Sales
www.enterprisecarsales.com
Enterprise Commercial Trucks www.enterprisetrucks.com
Enterprise CarShare www.enterprisecarshare.com
Enterprise RideShare www.enterpriserideshare.com
Enterprise Fleet Management www.efleets.com
ENTERPRISE HOLdINgS AT-A-GLANCE
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As the world’s largest and most comprehensive car rental service provider, Enterprise Holdings operates airport and neighborhood locations in more than 70 countries and territories in North America, Europe, the Middle East, Latin America, the Caribbean and Asia. This includes company-owned locations in 75 percent of the European car rental market and franchise partners that reach the remaining European markets. Our long-term management strategy and sustainability principles continue to guide our company as we expand into new communities around the world.
Global Headquarters:
600 Corporate Park Drive
St. Louis, Missouri 63105
gOALS & PROgRESS
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20/20 Vision*
Reduce direct and indirect energy use and related costs by 20 percent by 2015 from our 2010 baseline.
Progress to date:
Global Fleet Efficiency
100% Alternative Fuel Shuttles Buses by 2015**
Progress to date: 82% of Enterprise’s airport shuttle buses now run on biodiesel, synthetic diesel, compressed natural gas, or are hybrid models.
* FY14 data has been calculated using a revised methodology, which reflects same-store and weather-normalized data not previously factored into our 20/20 Vision reporting. Percentages reflect the gains made against the 2010 baseline as of July 31, 2014.
**Revised from previous goal of 100% biodiesel-powered buses by 2015.
16.5%E L E C T R I C I T Y
7.6%N A T U R A L G A S
Carbon Footprint ¡10% by 2015Reduce Scope 1 and Scope 2 emissions by 10% by 2015 against our 2010 baseline.
Progress to date:
32+ MPg
28.3%
28+ MPg
57.3%
24.1%R E D U C T I O N
Carbon Emissions Inventory
Scope 2 177,943 MTCO
2e
Scope 1 108,749 MTCO
2e
Our FY2013 emissions inventory was developed using the WRI/WBSCD GHG Protocol Corporate Standard. Lucideon has completed a third-party verification of our reported greenhouse gas emissions. The Verification Statement “attests to the fact that Lucideon provides reasonable assurance that reported historical greenhouse gas emissions from August 1, 2012 to July 31, 2013 are verifiable.” For complete details, please refer to the full Verification Statement.
gOALS & PROgRESS
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$150 million toward Sustainable Construction by 2015
Completed more than 5,000 retrofit and new construction projects
through FY2014, including
nearly $5.7 million in sustainable upgrades
and construction projects at our airport branches.
50 Million Trees Planted by 2056
9 million trees planted in national forests and state parks throughout the U.S., Canada and Europe through FY2014.
10,000 Employee Health
Assessments by 2015
Achieved and exceeded this goal in 2013, with more than 12,000 participants to date.
Philanthropy
In FY2014, the Enterprise Holdings Foundation provided $19.4 million
in grant funding to charitable causes. 90% of funds fulfill
employee requests to support community organizations.
+
62% HEALTH AND HUMAN SERVICES CAUSES
11% PUBLIC/SOCIAL
BENEFITS
14% EDUCATION
3% OTHER REQUESTS
5% ARTS
5% ENVIRONMENT
90%EMPLOYEE REQUESTS
ENvIRONMENTAL STEWARdSHIP
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Sustainable Fleet ManagementOur expertise in fleet management, paired with our commitment to sustainability, can be a powerful combination for our business customers. By providing detailed emissions reports, fleet analyses, fuel-efficient vehicle options and greenhouse gas offset programs, we can help businesses identify and implement innovative ways to address the environmental impact of their operations.
In the U.K., Enterprise Rent-A-Car joined forces with the Energy Saving Trust to offer corporate and public sector fleet customers a suite of products, services and consulting that can help them make business travel more sustainable.
Proving that the right tools can make a big difference, the City of York Council received the Trust’s 2013 Grey Fleet Management Award for its work to increase car sharing, which the city offers in part through a relationship with Enterprise CarShare. The Council earned the award by cutting reliance on employee-owned vehicles for official business by 50 percent over three years.
Meanwhile, in the U.S., Enterprise Fleet Management helped Harrisburg, Pa.-based Dawood Engineering introduce compressed natural gas-fueled vehicles into its fleet. By implementing this technology, Dawood is using a more sustainable fuel, saving money on fuel costs and supporting the local natural gas economy.
Enterprise Holdings’ global network of nearly 8,600 neighborhood and airport locations and our fleet of more than 1.5 million vehicles make us the largest car rental company in the world.
For nearly 60 years, Enterprise Holdings has used our unique position in the automotive value chain to meet the evolving needs of individuals, organizations and cities. We play a critical role in introducing automotive innovations to the market, offering consumers and organizations the opportunity to take new technologies for a test drive. In fact, our research has shown that car rental is the most common way that many of our customers — particularly Millennials — first experience new automotive technologies.
Our responsible and disciplined management approach builds customer loyalty and challenges us to continuously do our best for ourselves, our communities and the environment. We’re guided by sustainable business principles and a corporate culture that prioritizes the long-term return over short-term trends. As our global network continues to grow and vehicle technologies and consumer preferences change, we remain committed to fostering innovation and ensuring that the automobile remains a vital and accessible mode of transportation.
From our fleet to our operations, the following pages highlight some of the 2014 activities that have helped us reduce our impact on the environment and drive the future of sustainable mobility.
Urban and Local Mobility InnovationOur extensive network and robust fleet enable us to introduce millions of people to new automotive technologies. And solutions like Enterprise CarShare and Enterprise Rideshare play a critical role in shaping the future of urban mobility, where hourly, daily and weekly car rentals are on the rise as cost-effective and consumer-friendly modes of transportation.
In fact, Enterprise CarShare was a key sponsor of the 2013 Shared Use Mobility Conference, hosted by the Transportation Sustainability Research Center at the University of California, Berkeley. This event — the world’s first summit explicitly focused on shared-use mobility — brought together nearly 300 participants from close to 200 organizations to engage in a lively dialogue about the future of these evolving approaches to local transportation.
ENvIRONMENTAL STEWARdSHIP
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Twin Cities Vanpoolers Win Commuter Choice Award
In late 2013, Minneapolis-St. Paul’s MetroTransit recognized six volunteer vanpool drivers with its annual Commuter Choice Awards. Each of these drivers has spent at least a decade participating in MetroTransit’s Vanpool program and, collectively, they have made nearly a quarter million trips to and from work — logging almost 1.75 million miles.
Enterprise Rideshare provides vehicles for the Metro Vanpool program, which has 75 active vanpools and more than 600 regular passengers.
Connecting Riders Through Technology
Zimride by Enterprise is an online ride-matching service that complements our CarShare and Rideshare programs by efficiently connecting drivers and passengers heading to the same area. Zimride partners with colleges, universities and corporate communities to facilitate sustainable transportation-management solutions that reduce vehicle emissions and fuel consumption through shared rides.
Expanding our CarShare NetworkEnterprise CarShare is a natural extension of the Enterprise Rent-A-Car neighborhood network, offering vehicles when and where customers need them, around the clock. And it’s a solution that comes with the reliability and flexibility that are hallmarks of the Enterprise brand, as well as a selection of well-maintained and new-model hybrid, alternative and fuel-efficient vehicles.
In response to growing demand, we’ve continued to grow our Enterprise CarShare offering. Over the past year, we expanded our car-sharing services with the acquisitions of Denver-based OccasionalCar and Toronto-based AutoShare, as well as through the organic additions of car-sharing operations in Washington, D.C., Salt Lake City and New Jersey.
Today, Enterprise CarShare is active on more than 100 corporate and university campuses, military facilities and downtown hubs in the U.S., Canada and the United Kingdom. Over the next few years, we’ll continue to seek opportunities to expand and evolve our car-sharing program to serve even more customers.
Ride-Sharing Commuters Reduce Their FootprintEnterprise Rideshare, our company’s vanpooling program, is thriving, as an estimated 35,000 riders choose this sustainable alternative to personal vehicle use.
By commuting together in groups of five to 15, participants not only save money, but also help to reduce traffic congestion, commuter times and driving costs. By reducing the number of vehicles on the road, each individual Enterprise Rideshare vanpool has potential to eliminate more than 14,000 pounds of carbon dioxide per month. And riders never have to worry about being stranded if their plans change: Enterprise offers access to rental vehicles if vanpool members need to leave early or stay late.
Enterprise Rideshare operates and shares best practices for vanpooling throughout the United States. In late 2013, Enterprise Rideshare launched a vanpooling initiative in New Jersey that offers the service to anyone working within the state. New Jersey has joined many other states in offering subsidies to promote the use of vanpooling as a long-term, sustainable transportation option.
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ENvIRONMENTAL STEWARdSHIP
Promoting Clean TechnologiesWe operate the world’s largest fleet of passenger vehicles. To this end, Enterprise Holdings offers, promotes and advocates for such emerging technologies as hybrid, electric and hydrogen fuel-cell vehicles. In the past year, we have worked to give our customers new opportunities to experience sustainable, fuel-efficient transportation.
In Orlando, Fla., for example, we leveraged our local network and resources to introduce more business and leisure travelers to electric vehicles. The Drive Electric Orlando initiative is an unprecedented partnership among the Electrification Coalition, Enterprise Rent-A-Car, top hotels and major attractions in the Orlando area to encourage millions of travelers to rent electric vehicles by combining a high concentration of EVs with a network of free charging stations.
Advancing the Fuels of the FutureOur commitment to a fuel-efficient fleet includes an investment in advancing the alternative fuels and clean technologies of tomorrow. The centerpiece of that investment is the Enterprise Rent-A-Car Institute for Renewable Fuels at the Donald Danforth Plant Science Center, which was established in 2007 by our owners, the Taylor family, with a $35 million endowment.
The Institute contributes to the advancement of bioenergy research and commercialization, with a focus on the potential of algae, oil seed crops and bioenergy grasses. Among its recent achievements, researchers developed a technology for oil seed crops that produces high-energy cyclic hydrocarbons, a component of jet fuel. In the last year, the Institute also has incorporated a number of high school and undergraduate students into its research, helping to train the next generation of bioenergy scientists.
In 2013, we established an additional $2 million endowment for sustainable energy research at the University of Missouri in Columbia. This effort is also already yielding promising results in the field of biofuels. Preliminary research indicates that approximately 116 million acres of land along the Mississippi and Missouri Rivers are ideal for growing biomass and that using just five percent of that land could yield up to seven billion gallons of biofuel per year. The endowment will provide essential funding, as researchers take the next steps toward a prototype bio-processing facility to produce this renewable fuel.
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PROMOTINg CLEAN TECHNOLOgIES
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ENvIRONMENTAL STEWARdSHIP
*Our 2010 baseline excludes branches where an external landlord is responsible for utility bills, as well as branches added after 2010. Energy usage at these new locations is being tracked separately as part of our Enterprise Sustainable Construction Protocol (ESCP). Our goal is to establish a single companywide energy baseline by 2015.
20/20 Vision Update In 2010, we launched our 20/20 Vision, engaging Enterprise Holdings branches to identify innovative, scalable solutions to reduce energy use and associated costs by 20 percent by 2015, against a 2010 baseline.
The 20/20 Vision and Enterprise Sustainable Construction Protocol (ESCP) have inspired our employees to identify and execute countless energy- and cost-saving opportunities.
Operations British Columbia operations – Tracking energy use with new and existing tools helped
to identify the group’s largest area of opportunity: energy. Installing new LED lighting at several locations reduced energy consumption by more than 35 percent.
East Midlands, England operations – Replacing lighting internally and externally and adding timers and light sensors is expected to reduce energy use by more than 30 percent.
Minnesota operations – Installing new pressure washers helped reduce water use by 40 percent compared to the previous year.
New Mexico operations – Installing new pressure washers and conducting a water consumption audit at airport to reduce water use.
Orlando operations – Reduced energy use in one branch by more than 40 percent during the summer months by implementing a heat-reflective window tint and more energy-efficient lighting.
Sacramento operations – Initiating a paper-recycling program diverted more than 150 tons of paper from landfills, a 29 percent increase over the previous year. Meanwhile, installing new pressure washers at most neighborhood locations reduced water use per transaction by nearly 30 percent.
Washington, D.C. operations – Updating lighting fixtures to LEDs, installing more efficient pressure washers and engaging employees in small everyday changes helped reduce water use by nearly 25 percent and netted more than $140,000 in savings.
20/20 vision Results
FY 2010
FY 2011
FY 2012
FY 2013
FY 2014 (estimated)
Total direct and indirect
energy consumption
1,308,951 gigajoules
1,285,595 gigajoules
1,100,140 gigajoules
1,066,796 gigajoules
1,026,254 gigajoules
2014 Reduction from 2010 baseline*
282,697 gigajoules
In fiscal years 2010-2014, Enterprise derived 100 percent of its direct energy consumption from nonrenewable fuels.
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ENvIRONMENTAL STEWARdSHIP
“There is no one-size-fits-all approach to sustainability. That’s why we empower each of our neighborhood and airport branches to make operational changes
that make sense for them at the local level.” – Chrissy Taylor, Senior Vice President of North American Operations
Smart Building SystemA new initiative supporting our 20/20 Vision is the smart building system, which is currently in place in select neighborhood branches throughout North America. The system gives our local operations managers real-time information about energy and resource use, as well as equipment function, at individual branches. Using an app on their smartphone or other mobile device, managers can automate some functions and control others remotely, so resources are only deployed as needed.
The energy reductions at branches with the smart building system installed are substantially outpacing locations without the system. With this in mind, we’re evaluating a large-scale rollout of the technology, including a close look at how the system can work for our airport operations.
Sustainable Airport Construction
Through the Enterprise Sustainable Construction Protocol (ESCP) in FY2014, we invested nearly $5.7 million in sustainable upgrades and construction projects at our airport branches. This includes making investments in sustainable construction materials, installing more energy-efficient site and canopy lighting, and upgrading signage to LED technology. To learn more about the ESCP, visit drivingfutures.com/programs- initiatives/sustainable-construction/.
SOCIAL
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“For nearly six decades we’ve been investing in communities where our employees and customers live and work — the well-being of these communities and our business are inextricably linked.”
– Andrew C. Taylor Executive Chairman
With locations around the world, we recognize that our business is an integral part of thousands of communities where our customers and employees live and work. At Enterprise Holdings, we remain committed to promoting community growth and prosperity, whether through employment, charitable activities or service to our customers.
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CUSTOMERS
Our founder, Jack Taylor, built our company on a simple philosophy: “Take care of your customers and employees first, and growth and profits will follow.” Our commitment to customer service lives in everything we do. Whether they rent from one of our neighborhood locations or at an airport, customers have grown to expect a first-class service experience from our brands, and our team consistently delivers on those expectations.
For the second consecutive year, the National Car Rental, Enterprise Rent-A-Car and Alamo Rent A Car brands finished in the top three rankings in the J.D. Power and Associates North American Rental Car Satisfaction Study™. National Car Rental led the ranking, receiving the highest score in five of J.D. Power’s six survey categories. National was also the highest-ranked car rental brand in the 2014 Forrester Research Customer Experience Index. And Enterprise Rent-A-Car and National Car Rental were both named J.D. Power 2014 Customer Champions.
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EMPLOYEES
Military Hiring and SupportThe Enterprise culture has military roots that go back nearly six decades. Our founder, Jack Taylor, was a decorated World War II fighter pilot who served aboard the storied aircraft carrier that gave us our name — the USS Enterprise. And when he founded our company, he borrowed heavily from the values he learned in the Navy.
Today, it’s those same values and deep military heritage that attract those with military backgrounds to Enterprise. To better serve their needs, we recently launched a new military heritage website that features employment opportunities and resources for transitioning military personnel, veterans, members of the National Guard and Reserve and military families.
Enterprise Holdings supports numerous initiatives that help service men and women when they return home. In FY2014, the Enterprise Holdings Foundation donated $250,000 to the Fisher House Foundation, which provides free lodging to the families of veterans receiving treatment at military medical centers. And U.S. Veterans Magazine saluted Enterprise Holdings by naming us a Top Veteran-Friendly Company in recognition of our continuing commitment to hiring men and women who have served in America’s armed forces.
Launching CareersBeyond our commitment to military hiring, Enterprise Holdings has long been recognized as one of the best places to launch a career. As one of the largest recruiters of college graduates, Enterprise Holdings hired approximately 11,000 full-time employees last year. And we provide formalized training and advancement opportunities and resources to support our employees’ professional development. In FY2014, Enterprise received the Talent Board’s 2013 Candidate Experience Award and Glassdoor’s inaugural Talent Warrior Award in recognition of the outstanding recruitment experience we create for job candidates.
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COMMUNITY
UNITEd WAYEach year we hold one of the
largest campaigns in North America — our total amount raised annually is more than $20 million that goes to our
local United Way chapters and back into the communities
where we do business.
Enterprise Holdings FoundationThe Enterprise Holdings Foundation is driven to assist organizations that our employees, their spouses and loyal customers actively support in the thousands of local communities where Enterprise operates. In FY2014, 90 percent of the $19.4 million given by the Enterprise Holdings Foundation fulfilled grant requests by employees to help community causes they personally champion.
Disaster ReliefWith more than 6,000 offices located throughout the U.S., Enterprise Holdings is uniquely positioned for a rapid response whenever disasters strike. In fact, each of our regional operations has an Emergency Action Plan that streamlines communication among Enterprise’s branch offices to ensure that we can support community needs by making vehicles available where and when they’re needed most.
Enterprise Holdings collaborates with its strong network of insurance and bodyshop partners to respond quickly in areas affected by natural disasters. In June 2014, Enterprise’s doors were open in Abilene, Texas even after softball-sized hail damaged part of its fleet and many residents’ vehicles.
50 Million Tree PledgeSince 2007, Enterprise has teamed with the Arbor Day Foundation and the U.S. Forest Service to plant one million trees each year for 50 years throughout North America and Europe as part of the Enterprise 50 Million Tree Pledge. Supported by a $50 million commitment from the Enterprise Holdings Foundation, this initiative accounts for approximately 20 percent of the Arbor Day Foundation’s annual reforestation plantings. Among those outside the U.S., Enterprise planted 10,000 trees as part of a new partnership with Schutzgemeinschaft Deutscher Wald, a non-profit organization dedicated to preserving Germany’s forests. By the end of 2014, together we will have cumulatively planted 9 million trees in areas with the most immediate needs.
Along with restoring our forests, these plantings also improve the health of watersheds, which play a critical role in the drainage of rainfall into streams, ponds, rivers and lakes. In fact, water originating from national forests is generally the highest-quality drinking water in the country.
For a full list of 2014 planting sites and a look at where a l l 9 mi l l ion t rees have been planted to date, v is i t drivingfutures.com/50milliontrees.
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ECONOMICS & gOvERNANCE
Enterprise Holdings continues to hold an unrivaled leadership position in the automotive rental industry, thanks to a conservative, disciplined and values-driven approach to managing our business. We continuously evaluate new opportunities with an eye towards the kind of long-term growth that will strategically improve and expand our operations to serve future generations of customers and employees.
Supporting Local and Diverse BusinessesWhen selecting suppliers, we consider vendors who share the same standards and beliefs as we do, both in their business operations and in their ethical conduct. To this end, our Internal Ethics Committee is preparing to launch the Enterprise Holdings Supplier Code of Conduct. Once finalized, this document will articulate the values and ethical standards that all of our global suppliers will be encouraged to follow.
In addition, Black EOE Journal recognized Enterprise Holdings’ supplier diversity efforts with its Best Supplier Diversity Program distinction. This honor is considered a valuable resource for those identifying and evaluating potential business partners.
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ECONOMICS & gOvERNANCE
ECONOMICS & gOvERNANCE
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Dan Wessel Vice President, Business Management
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Q&A WITH dAN WESSEL, vICE PRESIdENT, BUSINESS MANAgEMENT, ANd LEE BROUgHTON, ASSISTANT vICE PRESIdENT, gLOBAL MARKETINg ANd SUSTAINABILITY
How does Enterprise Holdings cultivate relationships with diverse suppliers?
Dan Wessel (DW): Our Supplier Diversity Program is an ongoing initiative designed to help increase the number of socially or economically disadvantaged suppliers who provide goods and services to our company. We continuously provide assistance and a host of tools to our regional procurement teams to help them identify suppliers who demonstrate stability, diversity and similar company values and ethical standards.
For example, in the last year we launched an ACDBE Certification Assistance Program. This program offers more than 3,000 of our existing suppliers a third-party consultant to help them become certified to support our U.S. airport branch operations.
What role do your suppliers play in Enterprise Holdings’ sustainability strategy?
DW: Carefully and strategically choosing third-party vendors can be an efficient and sustainable way to help us maintain a healthy bottom line and a diverse business. And, as the world’s largest car rental company, we’ve made it a priority to partner with both large and small businesses that reflect the diversity of the local communities we’re a part of. In fact, in FY2014, $5.8 billion of our companywide supplier spending went to small businesses operating in the same local communities we serve, with 74 percent of that total going to minority-owned, women-owned and veteran-owned businesses.
Giving our customers the best possible car rental experience depends on maintaining strong partnerships with all of our vendors.
How does Enterprise Holdings bring the value of sustainability to life as part of its long-term growth strategy?
Lee Broughton (LB): Sustainability is about thinking for the long-term, which is how we’ve always managed our business. It is tied into the very values on which Jack Taylor founded our company.
Investing in long-term growth begins with investing in ourselves, which is why the Taylor family has put more than 80 percent of the company’s cumulative earnings right back into the business for nearly six decades.
In the last two years, this approach has allowed us to us to grow both in North America and overseas — and it’s a trend we hope to continue, so we can best serve our customers in any corner of the globe. And as we grow, our principles of holistic, sustainable management lead the way in uniting our various branches and regions into one team and one fleet.
ECONOMICS & gOvERNANCE
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Lee Broughton Assistant Vice President,
Global Marketing and Sustainability
What were some of the major growth areas for Enterprise Holdings in the last fiscal year?
LB: Some major growth areas in the last year include North American operations with a record-breaking year as well as global franchising, thoughtful acquisitions, and the expansion of urban mobility solutions and car-sharing services. We’re particularly excited about the continued growth of the Enterprise CarShare network, including the acquisitions of Denver-based OccasionalCar and Toronto-based AutoShare.
We’re proud to be a mainstay in neighborhood and airport markets across North America and much of Europe. In particular, our business customers in these regions know that we’re a strong partner, and we look forward to earning that reputation with more business and leisure customers as our expansion continues in the coming months.
What does the future of sustainability look like for Enterprise Holdings?
LB: We are growing and increasingly looking at our operations through a global lens, which goes hand in hand with our aspiration to keep doing more for our customers. The Chairman’s Task Force — a 15-member cross-functional governing body that oversees our sustainability efforts — focuses on both the long-term, holistic view of our business and the day-to-day operational actions we can take to reach our goals.
Now, as we close in on our 2015 sustainability goals, the Chairman’s Task Force is exploring new opportunities to take the lead in driving sustainable change, not just throughout our company but also throughout our industry. Some of the areas we plan to focus on include:
A closer look at the future of urban mobility and alternative fuel sources
Continued efforts to foster employee diversity and volunteerism
Assessment of our operational water use
Our role in the lifecycle of the automobile
As we continue to grow, we’ll continue to grow more sustainable. At Enterprise, those two goals go hand in hand.
Global Headquarters600 Corporate Park DriveSt. Louis, Missouri 63105
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ECONOMICS & gOvERNANCE
With operations in more than 70 countries and territories around the world, Enterprise Holdings is committed to providing the world’s business and leisure travelers with a dependable, world-class vehicle rental experience. In FY2014, we made significant investments in growing each of our brands around the globe:
Enterprise Rent-A-Car saw double-digit growth in European rentals over the past year. The brand entered new markets in Belgium, Switzerland, Luxembourg, Cyprus, Bosnia-Herzegovina, Czech Republic, Macedonia, Norway, Sweden, Iceland and Denmark.
The Alamo Rent A Car and National Car Rental brands continued to expand throughout Latin America, opening locations in Belize, Peru, and Turks and Caicos. Mexico’s major airports also became the first airports in Latin America to offer National’s signature Emerald Club Priority Service.
For the first time, Enterprise Holdings brought the Enterprise Rent-A-Car brand to the Caribbean and Middle East with operations in Martinique, Guadeloupe, French Guiana and Israel.
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ABOUT THIS REPORT
This report provides a mid-cycle update to Enterprise Holdings’ 2013 sustainability report, highlighting relevant company activities in Enterprise Holdings’ fiscal year ending July 31, 2014 (unless otherwise noted). Our reporting cycle is to issue an in-depth report every other year and briefer updates in the mid-cycle years, including this fiscal year 2014 update.
The report’s profile disclosures represent information from corporate-owned operations at the close of FY2014 for more than 7,400 branches, with the exception of the fully owned branches in France and Spain that we acquired in 2011. Going forward, we are working to incorporate environmental data for these branches into our companywide reporting. Franchisee branches will not be included.
In FY14, we revised our method of calculating data related to our 20/20 Vision commitment to reduce direct and indirect energy usage and related costs by 20 percent by 2015. The revised approach has improved both the accuracy and transparency of the data. The percentage reductions reported on page 4 of this report now reflect same-store and weather-normalized energy usage data not previously factored into 20/20 Vision reporting. We will continue to use this methodology in our FY15 report.
The report is divided into three primary sections – Environmental Stewardship, Social and Economics & Governance. It focuses on the issues that are material to our business (as outlined by our Chairman’s Task Force and as informed by dialogue with our stakeholders), along with our initiatives to address those issues and our targets and performance to date. Information restated from previous reports is included as needed to provide context and demonstrate our progress.
The report follows the sustainability reporting guidelines set forth by the Global Reporting Initiative (GRI 3.1), and is a GRI-verified Level C report. A guide to the location of GRI information appears at the end of the report. Carbon emissions inventory data is externally assured by Lucideon.
For more information, please visit ehi.com/sustainability and drivingfutures.com.
For questions about this report, please contact:
Lee Broughton Corporate Sustainability
Claire Carstensen Sustainability Manager Office: 314-512-4601 Cell: 314-801-4513 [email protected]
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gLOBAL REPORTINg INITIATIVE CONTENT INDEX
GRI INDEX Profile DisclosuresDisclosure Description Location
1.1 Statement from most senior member of the organization Letter from President & CEO Pam Nicholson – pg. 1
2.1 Name of the organization Enterprise at-a-Glance – pg. 2-3
2.2 Primary events, brands, products and/or services Enterprise at-a-Glance – pg. 2-3
2.3 Operational structure of the organization, including main divisions, operating companies, subsidiaries and joint ventures
Enterprise at-a-Glance – pg. 2-3
2.4 Location of organization’s headquarters Enterprise at-a-Glance – pg. 2-3
2.5 Number of countries where the organization operates, and names of countries with either major operations or that are specifically relevant to the sustainability issues covered in the report
Economics & Governance – pg. 20
2.6 Nature of ownership and legal form Visit enterpriseholdings.com/financial-information/financial-stability/
2.7 Markets served (including geographic breakdown, sectors served and types of customers/beneficiaries)
Enterprise at-a-Glance – pg. 2-3Economics & Governance – pg. 20
2.8 Scale of the reporting organization
Enterprise at-a-Glance – pg. 2-3As a privately held company, Enterprise Holdings does not disclose additional information about the economic values generated beyond our total annual revenues and growth of key organizational assets, including our fleet and number of employees.
2.9 Significant changes during the reporting period regarding size, structure or ownership Economics & Governance – pg. 20
2.10 Awards received in the reporting periodEnterprise at-a-Glance – pg. 2Social – pg. 13-14
3.1 Reporting period for information provided About This Report – pg. 21
3.2 Date of most recent previous report About This Report – pg. 21
3.3 Reporting cycle About This Report – pg. 21
3.4 Contact point for questions regarding the report or its contents About This Report – pg. 21
3.5 Process for defining report content
* FY 2013 report – Determining materiality: Economics & Governance p. 24; Prioritizing topics within the report: Determining materiality: Economics & Governance p. 24; Goals & Progress p. 4; About this Report p. 28; Identifying stakeholders: Values-Driven Culture pg. 3; Environmental Stewardship p. 9
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Disclosure Description Location
3.6 Boundary of the report About This Report – pg. 21
3.7 Specific limitations on the scope or boundary of the report About This Report – pg. 21
3.8 Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations and other entities that can affect comparability
About This Report – pg. 21
3.10 Explanation of the effect of any restatements of information provided in earlier reports, and the reasons for such restatement
About This Report – pg. 21
3.11 Significant changes from previous reporting periods in the scope, boundary or measurement methods applied in the report
FY 2013 Report – About This Report – pg. 28, Economics & Governance – pg.24
3.12 Table identifying the location of the Standard Disclosures in the report This table
3.13 Policy and current practice with regard to seeking external assurance for the report About This Report – pg. 21
4.1 Governance structure of the organization including committees under the highest governance body responsible for specific tasks, such as setting strategy or organizational oversight
FY 2013 Report – Economics & Governance – pg. 23
4.2 Indicate whether the Chair of the highest governance body is also an executive officerFY 2013 Report – Economics & Governance – pg. 23; for more information visit enterpriseholdings.com/about-us/leadership/
4.3 For organizations that have a unitary board structure, state the number of members of the highest governance body that are independent and/or nonexecutive members
FY 2013 Report – Economics & Governance – pg. 23
4.4 Mechanisms for shareholders and associates to provide recommendations or direction to the highest governance body
FY 2013 Report – Values-Driven Culture – pg. 3, Economics & Governance – pg. 23, Social – pg. 16
4.8Internally developed statements of mission or values, codes of conduct and principles relevant to economic, environmental and social performance and the status of their implementation
FY 2013 Report – Values-Driven Culture – pg. 3
4.14 List of stakeholder groups engaged by the organizationFY 2013 Report – Values-Driven Culture – pg. 3, Environmental Stewardship – pg. 9
4.15 Basis for identification and selection of stakeholders with whom to engage FY 2013 Report – Values-Driven Culture – pg. 3
* Enterprise Holdings relied on four primary sources to determine the topics that are material to our company with regard to our environmental, social and economic impacts: participation in industry sustainability groups and forums as well as interaction with business partners and other stakeholders; the knowledge of our dedicated Sustainability team; the GRI 3.1 Guidelines; and our Chairman’s Taskforce – a cross-functional group of internal stakeholders who serve as proxies for the various aspects of our business and is charged with setting long-term sustainability goals and year-to-year sustainability priorities reflective of the issues most material to our business.
The topics and cases reported on within the FY2014 update reflect the environmental, social and governance initiatives enacted or continued in FY2014 in support of the achievement of our stated long-term goals and continuance of our industry-leading corporate culture, anchored by our values-driven culture (see FY2013 report, page 3).
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GRI INDEX IndicatorsIndicator Description Location
EN3 Direct energy consumption by primary energy source Environmental Stewardship – pg. 10**
EN4 Indirect energy consumption by primary source (electricity) Environmental Stewardship – pg. 10**
EN5 Energy saved due to conservation and efficiency improvements Goals & Progress – pg. 4
EN6Initiatives to provide energy-efficient or renewable energy based products and services, and reductions in energy requirements as a result of these initiatives
Goals & Progress – pg. 4-5Environmental Stewardship – pgs.6-8FY 2013 Report Environmental Stewardship – pgs. 4, 6-9
EN16 Total direct and indirect greenhouse gas emissions by weight Goals & Progress – pg. 4
EN26 Initiatives to mitigate environmental impacts of products and services and extent of impacts FY 2013 Report – Environmental Stewardship – pgs. 14-15
EC1 Direct economic value generated
Enterprise at-a-Glance – pg. 2As a privately held company, Enterprise Holdings is unable to disclose additional information about the economic values generated beyond our total annual revenues and growth of key organizational assets, including our fleet and number of employees
EC6 Policies, practices and proportion of spending with locally based suppliers Economics & Governance – pg. 16, 18
EC8Development and impact of infrastructure investments and services provided primarily for public benefit through commercial, in-kind, or pro bono engagement
FY 2013 Report Social – pg. 19-20
LA1 Total workforce by employment type, employment contract and region broken down by gender
FY 2013 Report – Enterprise at-a-Glance – pg. 2, Social – pg. 17Additionally of our full-time employees 62% are male/38% are female; of our part-time employees 83% are male/17% are female; of our hourly employees 72% are male/28% are female.Enterprise does not employ a significant number of seasonal or temporary workers.
LA3Benefits provided to full-time employees that are not provided to temporary or part-time employees, by significant locations of operation
FY 2013 Report – Social – pg. 18
LA10 Average hours of training per year per employee by gender, and by employee category FY 2013 Report – Social – pg. 18
LA11Programs for skills management and lifelong learning that support the continued employability of associates and assist them inmanaging career endings
FY 2013 Report – Social – pg. 17-18
SO3 Percentage of employees trained in anti-corruption policies FY 2013 Report – Economics & Governance – pg. 25
PR5Practices related to customer satisfaction, including results of surveys measuring customer satisfaction
FY 2013 Report – Social – pg. 16
**The overwhelming majority of Enterprise’s energy consumption comes from direct sources, with steam heating systems at a handful of branch facilities accounting for the company’s indirect energy consumption. Data from these indirect heating systems is not distinguished from direct heating system data in our current collection system, resulting in a single, combined direct and indirect energy consumption figure (see p. 10). These figures include direct energy consumed in the production of indirect energy. In future reporting cycles, we aim to disclose these figures separately.
OCTOBER 30, 2014
