Avis Budget Group - Water Security 2023
W0. Introduction
W0.1
(W0.1) Give a general description of and introduction to your organization.
Avis Budget Group is leading global provider of mobility solutions through our three most recognized brands, Avis, Budget and Zipcar, as well as several other brands, well
recognized in their respective markets. Our brands offer a range of options, from car and truck rental to car sharing. We license the use of the Avis, Budget, Zipcar and other
brands’ trademarks to licensees in areas in which we do not operate directly. We and our licensees operate our brands in approximately 180 countries throughout the world.
We generally maintain a leading share of airport car rental revenues in North America, Europe and Australasia, and we operate a leading car sharing network, and one of the
leading commercial truck rental businesses in the United States.
On average, our global rental fleet totaled approximately 655,000 vehicles in 2022. We completed more than 36 million vehicle rental transactions worldwide and generated
total revenues of approximately $12 billion during 2022. Our brands and mobility solutions have an extended global reach with nearly 10,250 rental locations throughout the
world, including approximately 3,900 locations operated by our licensees.
FORWARD LOOKING STATEMENTS: Certain statements contained in this CDP 2023 Water Security disclosure may be considered “forward-looking statements” as that
term is defined in the Private Securities Litigation Reform Act of 1995. The forward-looking statements contained herein are subject to known and unknown risks,
uncertainties, assumptions and other factors that may cause our actual results, performance or achievements to be materially different from those expressed or implied by
any such forward-looking statements. Forward-looking statements include information concerning our future financial performance, business strategy, projected plans and
objectives. These statements may be identified by the fact that they do not relate to historical or current facts and may use words such as “believes,” “expects,” “anticipates,”
“will,” “should,” “could,” “may,” “would,” “intends,” “projects,” “estimates,” “plans,” and similar words, expressions or phrases. The following important factors and assumptions
could affect our future results and could cause actual results to differ materially from those expressed in such forward-looking statements.
W0.2
(W0.2) State the start and end date of the year for which you are reporting data.
Start date End date
Reporting year January 1 2022 December 31 2022
W0.3
(W0.3) Select the countries/areas in which you operate.
United States of America
W0.4
(W0.4) Select the currency used for all financial information disclosed throughout your response.
USD
W0.5
(W0.5) Select the option that best describes the reporting boundary for companies, entities, or groups for which water impacts on your business are being
reported.
Companies, entities or groups over which operational control is exercised
W0.6
(W0.6) Within this boundary, are there any geographies, facilities, water aspects, or other exclusions from your disclosure?
Yes
CDP Page of 251
W0.6a
(W0.6a) Please report the exclusions.
Exclusion Please explain
Company-operated locations outside of
the United States
Due to limited data availability, Avis Budget Group does not report on water withdrawals for international locations outside of the United States. We plan to report water
withdrawals for international locations within the next two years.
W0.7
(W0.7) Does your organization have an ISIN code or another unique identifier (e.g., Ticker, CUSIP, etc.)?
Indicate whether you are able to provide a unique identifier for your organization. Provide your unique identifier
Yes, a Ticker symbol CAR
W1. Current state
W1.1
(W1.1) Rate the importance (current and future) of water quality and water quantity to the success of your business.
Direct use
importance
rating
Indirect
use
importance
rating
Please explain
Sufficient amounts of good
quality freshwater available for
use
Neutral Vital Avis Budget Group is a leading global provider of mobility solutions, and as such, the availability of water is important to our business and stakeholders,
including local communities. Although our operations do depend on freshwater to be available to clean our rental vehicles and also for our employees,
the availability of recycled water is significantly more vital to our business.
For example, at our major facilities, we continue to maintain and install water saving car wash systems that recycle and reuse up to 80% of their
wastewater. Our suppliers and their workers also require access to quality freshwater for production, sanitation and health purposes.
We do not expect the future water dependency of sufficient amounts of good quality freshwater available for use to differ for either direct or indirect use,
as we do not expect our business requirements to change.
Sufficient amounts of recycled,
brackish and/or produced water
available for use
Vital Important Sufficient amounts of recycled, brackish and/or produced water available for use is vital for our business. For example, across our major facilities, we
continue to maintain and install water saving car
wash systems, that recycle and reuse up to 80% of their wastewater.
Sufficient amounts of recycled, brackish and/or produced water is also important to our indirect operations and value chain, as our suppliers may need
recycled, brackish and/or produced water to produce items within our supplier chain.
Sufficient amounts of recycled, brackish and/or produced water may become even more vital for our business in the future as we aim to increase the use
of recycled water in the car wash systems. Sufficient amount of recycled, brackish and/or produced water may become more important as areas of water
stress increase, reducing the amount of freshwater available.
W1.2
CDP Page of 252
(W1.2) Across all your operations, what proportion of the following water aspects are regularly measured and monitored?
% of
sites/facilities/operations
Frequency of
measurement
Method of measurement Please explain
Water withdrawals – total
volumes
76-99 Monthly We monitor water withdrawals – total volume
monthly through our utility invoice systems.
Please note, we utilize two different invoice
systems (one system for leased sites and
one system where the utility invoices is paid
by ABG).
In 2022, our data boundary included all of our company-operated U.S. operating
locations. This data is monitored on a monthly basis through our utility invoice
monitoring system and reported annually in our ESG Report.
Water withdrawals – volumes
by source
76-99 Monthly We monitor water withdrawals – volumes by
source monthly through our utility invoice
systems. Please note, we utilize two different
invoice systems (one system for leased sites
and one system where the utility invoices is
paid by ABG).
In 2022, our primary withdrawal source was municipal water, and our data boundary
included all of our company-operated U.S. operating locations. This data is monitored
on a monthly basis through our utility invoice monitoring system and reported annually
in our ESG Report. Please note, other sources of water withdrawals such as
groundwater such are either not used or estimated to not be a significant source of
overall water withdrawals.
Entrained water associated with
your metals & mining and/or
coal sector activities - total
volumes [only metals and
mining and coal sectors]
<Not Applicable> <Not
Applicable>
<Not Applicable> <Not Applicable>
Produced water associated with
your oil & gas sector activities -
total volumes [only oil and gas
sector]
<Not Applicable> <Not
Applicable>
<Not Applicable> <Not Applicable>
Water withdrawals quality Not relevant <Not
Applicable>
<Not Applicable> Water withdrawals quality, is not relevant for our business because most of our water
withdrawals are attributed to car washing at our operating locations.
Water discharges – total
volumes
76-99 Monthly We monitor water discharges – total volume
monthly through our utility invoice systems.
Please note, we utilize two different invoice
systems (one system for leased sites and
one system where the utility invoices is paid
by ABG).
Avis Budget Group monitors water discharges on a monthly basis through our utility
invoice monitoring system. Water discharges are also monitored per our municipal, state
and/or federal compliance requirements.
Water discharges – volumes by
destination
Not monitored <Not
Applicable>
<Not Applicable> Water discharges are believed to be the returned to the source, namely sewers for our
withdrawals of municipal water; therefore water discharges – volumes by destination
are not monitored.
Water discharges – volumes by
treatment method
Not relevant <Not
Applicable>
<Not Applicable> Water discharges by treatment method are applicable to local municipalities (and not
our business) once our water withdrawals are returned to the source, namely sewers for
our withdrawals of municipal water.
Water discharge quality – by
standard effluent parameters
Not relevant <Not
Applicable>
<Not Applicable> Water discharge quality by standard effluent parameters are typically addressed by local
municipalities once our water withdrawals are returned to the source, namely sewers for
our withdrawals of municipal water; and are therefore not relevant to our business.
Water discharge quality –
emissions to water (nitrates,
phosphates, pesticides, and/or
other priority substances)
Not relevant <Not
Applicable>
<Not Applicable> Discharge quality, including discharge quality is typically addressed by local
municipalities once our water withdrawals are returned to the source, namely sewers for
our withdrawals of municipal water; and is therefore not relevant to our business.
Water discharge quality –
temperature
Not relevant <Not
Applicable>
<Not Applicable> Discharge quality, including temperatures, is typically addressed by local municipalities
once our water withdrawals are returned to the source, namely sewers for our
withdrawals of municipal water; and is therefore not relevant to our business.
Water consumption – total
volume
76-99 Monthly We monitor water consumption – total volume
monthly through our utility invoice systems.
Please note, we utilize two different invoice
systems (one system for leased sites and
one system where the utility invoices is paid
by ABG).
We currently assume that our water withdrawn is consumed. In 2022, our data
boundary included all of our company-operated U.S. operating locations. This data is
monitored on a monthly basis through our utility invoice monitoring system and reported
annually in our ESG Report.
Water recycled/reused 26-50 Monthly At main locations with car washing, we
monitor water recycled / reused monthly
through onsite systems
We monitor water recycled / reused at certain locations to ensure the car washing
systems are running efficiently.
The provision of fully-
functioning, safely managed
WASH services to all workers
100% Monthly At all locations we track and provide safe,
clean, and potable drinking water for all
workers and available at all times from
sources compliant with municipal, state and
federal requirements.
Avis Budget Group aims to ensure the provision of fully-functioning, safely managed
WASH services to all workers as relevant and in compliance with any application
regulations.
W1.2b
CDP Page of 253
(W1.2b) What are the total volumes of water withdrawn, discharged, and consumed across all your operations, how do they compare to the previous reporting
year, and how are they forecasted to change?
Volume
(megaliters/year)
Comparison
with
previous
reporting
year
Primary reason
for comparison
with previous
reporting year
Five-
year
forecast
Primary reason
for forecast
Please explain
Total
withdrawals
1275.84 Lower Increase/decrease
in efficiency
Lower Increase/decrease
in efficiency
In 2022, Avis Budget Group’s total water withdrawals decreased by approximately 2.6%, due to increases in water
efficiency. For example, In 2022, we installed 10 water-saving car wash systems across our major facilities in the
U.S. A total of 45 water-saving car wash systems since 2021. These systems recycle and reuse up to 80% of their
wastewater, which not only saves water, but is also more cost-effective compared to tradition carwash systems.
Another example is ABG’s location in Copenhagen, Denmark, that piloted the installation of a closed loop
carwash.Through this system, 100% of the location’s water is recirculated and purified in a closed loop.This
system saves approximately 265,000 gallons (1 million liters) of water annually.
Additionally, begining in 2019, Spain piloted a Wash and Clean Quick Turn Around process to save water.
Returned vehicles under a short-term rental were visually inspected and when considered not dirty enough to go
through a cleaning circuit, their interiors are simply dry-cleaned with chemical products for a waterless process. In
2021, this program was deployed across Europe and Asia Pacific and it is planned to be piloted in desginated
locations in the U.S. in 2024.
As we continue to increase efficiencies, we expect total water withdrawals will continue to decrease.
Total
discharges
1275.84 Lower Increase/decrease
in efficiency
Lower Increase/decrease
in efficiency
In 2022, Avis Budget Group’s total water withdrawals decreased by approximately 2.6%, due to increases in water
efficiency. For example, In 2022, we installed 10 water-saving car wash systems across our major facilities in the
U.S. A total of 45 water-saving car wash systems since 2021. These systems recycle and reuse up to 80% of their
wastewater, which not only saves water, but is also more cost-effective compared to tradition carwash systems.
Another example is ABG’s location in Copenhagen, Denmark, that piloted the installation of a closed loop
carwash.Through this system, 100% of the location’s water is recirculated and purified in a closed loop.This
system saves approximately 265,000 gallons (1 million liters) of water annually.
Additionally, begining in 2019, Spain piloted a Wash and Clean Quick Turn Around process to save water.
Returned vehicles under a short-term rental were visually inspected and when considered not dirty enough to go
through a cleaning circuit, their interiors are simply dry-cleaned with chemical products for a waterless process. In
2021, this program was deployed across Europe and Asia Pacific and it is planned to be piloted in desginated
locations in the U.S. in 2024.
As we continue to increase efficiencies, we expect total water withdrawals will continue to decrease.
Total
consumption
1275.84 Lower Increase/decrease
in efficiency
Lower Increase/decrease
in efficiency
In 2022, Avis Budget Group’s total water withdrawals decreased by approximately 2.6%, due to increases in water
efficiency. For example, In 2022, we installed 10 water-saving car wash systems across our major facilities in the
U.S. A total of 45 water-saving car wash systems since 2021. These systems recycle and reuse up to 80% of their
wastewater, which not only saves water, but is also more cost-effective compared to tradition carwash systems.
Another example is ABG’s location in Copenhagen, Denmark, that piloted the installation of a closed loop
carwash.Through this system, 100% of the location’s water is recirculated and purified in a closed loop.This
system saves approximately 265,000 gallons (1 million liters) of water annually.
Additionally, begining in 2019, Spain piloted a Wash and Clean Quick Turn Around process to save water.
Returned vehicles under a short-term rental were visually inspected and when considered not dirty enough to go
through a cleaning circuit, their interiors are simply dry-cleaned with chemical products for a waterless process. In
2021, this program was deployed across Europe and Asia Pacific and it is planned to be piloted in desginated
locations in the U.S. in 2024.
As we continue to increase efficiencies, we expect total water withdrawals will continue to decrease.
W1.2d
(W1.2d) Indicate whether water is withdrawn from areas with water stress, provide the proportion, how it compares with the previous reporting year, and how it is
forecasted to change.
Withdrawals
are from
areas with
water stress
%
withdrawn
from
areas with
water
stress
Comparison
with
previous
reporting
year
Primary reason
for comparison
with previous
reporting year
Five-
year
forecast
Primary reason
for forecast
Identification
tool
Please explain
Row
1
Yes 26-50 Lower Increase/decrease
in efficiency
Lower Increase/decrease
in efficiency
WRI
Aqueduct
In 2022, we conducted our annual water assessment of Avis Budget Group’s U.S. operating
locations. The methodology for assessing our company’s exposure to water risks included mapping
properties using the World Resources Institute (WRI) Aqueduct tool to identify locations with
baseline water stress, riverine and coastal flood, drought and future water stress risks.
Approximately 30% of water withdrawn from U.S. operating locations located in areas of “high” or
“extremely high” stress using the WRI Aqueduct tool.
W1.2h
CDP Page of 254
(W1.2h) Provide total water withdrawal data by source.
Relevance Volume
(megaliters/year)
Comparison
with
previous
reporting
year
Primary reason
for comparison
with previous
reporting year
Please explain
Fresh surface
water, including
rainwater, water
from wetlands,
rivers, and lakes
Not
relevant
<Not Applicable> <Not
Applicable>
<Not Applicable> In 2022, the use of fresh surface water, including rainwater, water from wetlands, rivers and lakes was not material within our
data boundary
Brackish surface
water/Seawater
Not
relevant
<Not Applicable> <Not
Applicable>
<Not Applicable> There are no known instances where Avis Budget Group currently uses brackish surface water or seawater at our operating
locations in the United States.
Groundwater –
renewable
Not
relevant
<Not Applicable> <Not
Applicable>
<Not Applicable> There are no known instances where Avis Budget Group currently uses groundwater at our operating locations in the United
States.
Groundwater –
non-renewable
Not
relevant
<Not Applicable> <Not
Applicable>
<Not Applicable> There are no known instances where Avis Budget Group currently uses groundwater at our operating locations in the United
States.
Produced/Entrained
water
Not
relevant
<Not Applicable> <Not
Applicable>
<Not Applicable> There are no known instances where Avis Budget Group currently uses produced or entrained water at our operating
locations in the United States.
Third party sources Relevant 1275.84 Lower Increase/decrease
in efficiency
In 2022, Avis Budget Group’s total water withdrawals decreased by approximately 2.6%, due to increases in water efficiency.
For example, In 2022, we installed 10 water-saving car wash systems across our major facilities in the U.S. A total of 45
water-saving car wash systems since 2021. These systems recycle and reuse up to 80% of their wastewater, which not only
saves water, but is also more cost-effective compared to tradition carwash systems. Another example is ABG’s location in
Copenhagen, Denmark, that piloted the installation of a closed loop carwash.Through this system, 100% of the location’s
water is recirculated and purified in a closed loop.This system saves approximately 265,000 gallons (1 million liters) of water
annually. Additionally, begining in 2019, Spain piloted a Wash and Clean Quick Turn Around process to dry-clean vehicles
with chemical products for a waterless process. In 2024, this program is planned to be piloted in the U.S.
W1.3
(W1.3) Provide a figure for your organization’s total water withdrawal efficiency.
Revenue Total water
withdrawal volume
(megaliters)
Total water
withdrawal
efficiency
Anticipated forward trend
Row
1
1199400
0000
1275.84 In 2022, Avis Budget Group’s total water withdrawals decreased by approximately 2.6%, due to increases in water efficiency. For example, In 2022, we
installed 10 water-saving car wash systems across our major facilities in the U.S. A total of 45 water-saving car wash systems since 2021.
W1.4
(W1.4) Do any of your products contain substances classified as hazardous by a regulatory authority?
Products contain hazardous substances Comment
Row 1 No We do not sell products that contain substances classified as hazardous by a regulatory authority.
W1.5
(W1.5) Do you engage with your value chain on water-related issues?
Engagement Primary reason for no engagement Please explain
Suppliers Yes <Not Applicable> <Not Applicable>
Other value chain partners (e.g., customers) Yes <Not Applicable> <Not Applicable>
W1.5a
CDP Page of 255
(W1.5a) Do you assess your suppliers according to their impact on water security?
Row 1
Assessment of supplier impact
No, we do not currently assess the impact of our suppliers, but we plan to do so within the next two years
Considered in assessment
<Not Applicable>
Number of suppliers identified as having a substantive impact
<Not Applicable>
% of total suppliers identified as having a substantive impact
<Not Applicable>
Please explain
Although Avis Budget Group does not currently request that our suppliers report on their water use. We aim to conduct appropriate diligence including research and
analysis of a company or organization in the selection process to reduce risk and comply with the applicable laws. Our approach is to conduct a risk-based screening of our
business partners to ensure the ability to comply with our Third-Party Standards of Conduct.
W1.5b
(W1.5b) Do your suppliers have to meet water-related requirements as part of your organization’s purchasing process?
Suppliers have to meet specific water-related requirements Comment
Row 1 Yes, water-related requirements are included in our supplier contracts <Not Applicable>
W1.5c
(W1.5c) Provide details of the water-related requirements that suppliers have to meet as part of your organization’s purchasing process, and the compliance
measures in place.
Water-related requirement
Complying with going beyond water-related regulatory requirements
% of suppliers with a substantive impact required to comply with this water-related requirement
<Not Applicable>
% of suppliers with a substantive impact in compliance with this water-related requirement
<Not Applicable>
Mechanisms for monitoring compliance with this water-related requirement
Supplier self-assessment
Response to supplier non-compliance with this water-related requirement
Retain and engage
Comment
Avis Budget Group’s Third Party Standards of Conduct represents our company’s commitment to foster sustainable relationships with our business partners, agents,
consultants, suppliers and other third parties and ensure that they uphold ethical standards and adhere to social and environmental responsibilities for the good of the
communities that we serve. Avis Budget Group expects that Third Parties, in all their activities, will comply with all applicable laws, rules and regulations of the countries
and localities in which they operate, whether or not specifically referenced in the Third Party Standards of Conduct.
W1.5d
CDP Page of 256
(W1.5d) Provide details of any other water-related supplier engagement activity.
Type of engagement
Information collection
Details of engagement
Collect water management information at least annually from suppliers
% of suppliers by number
1-25
% of suppliers with a substantive impact
<Not Applicable>
Rationale for your engagement
Avis Budget Group engages with suppliers through actively communicating our ESG strategy.
Impact of the engagement and measures of success
Not yet evaluated
Comment
We partenered with SynESGy to assess the Environemental, Social and Governance strategy, oversight, and metrics from a selected group of suppliers in Europe. The
ESG assessment was launched in 2023 and data requested to suppliers covers information on water impacts and metrics. Our supplier's ESG assessment is planed to be
expanded to all major suppliers within the next two years.
W1.5e
(W1.5e) Provide details of any water-related engagement activity with customers or other value chain partners.
Type of stakeholder
Customers
Type of engagement
Education / information sharing
Details of engagement
Run an engagement campaign to educate stakeholders about your water-related performance and strategy
Rationale for your engagement
Avis Budget Group engages with customers through actively communicating our ESG strategy.
Impact of the engagement and measures of success
We get requests from customers to provide information on water impacts including related data. Customers not just requesting information, but they want to see results and
this has supproted our busniess case to continue retrofiting our car washes with water-efficient systems.
W2. Business impacts
W2.1
(W2.1) Has your organization experienced any detrimental water-related impacts?
No
W2.2
(W2.2) In the reporting year, was your organization subject to any fines, enforcement orders, and/or other penalties for water-related regulatory violations?
Water-related regulatory violations Fines, enforcement orders, and/or other penalties Comment
Row 1 No <Not Applicable>
W3. Procedures
W3.1
CDP Page of 257
(W3.1) Does your organization identify and classify potential water pollutants associated with its activities that could have a detrimental impact on water
ecosystems or human health?
Identification and classification of potential water
pollutants
How potential water pollutants are identified and
classified
Please explain
Row
1
No, we do not identify and classify our potential water
pollutants
<Not Applicable> We do not identify and classify our potential water pollutants as this is more relevant to
manufacturing industries.
W3.3
(W3.3) Does your organization undertake a water-related risk assessment?
Yes, water-related risks are assessed
W3.3a
(W3.3a) Select the options that best describe your procedures for identifying and assessing water-related risks.
Value chain stage
Direct operations
Coverage
Full
Risk assessment procedure
Water risks are assessed in an environmental risk assessment
Frequency of assessment
Annually
How far into the future are risks considered?
More than 6 years
Type of tools and methods used
Tools on the market
Enterprise risk management
Tools and methods used
WRI Aqueduct
Contextual issues considered
Water availability at a basin/catchment level
Water quality at a basin/catchment level
Stakeholders considered
Customers
Employees
Investors
Local communities
NGOs
Regulators
Suppliers
Water utilities at a local level
Comment
Avis Budget Group completed our first water risk assessment that covered our U.S. operating locations. The methodology for assessing our company’s exposure to water
risks included mapping properties using the World Resources Institute (WRI) Aqueduct tool to identify locations with baseline water stress, riverine and coastal flood,
drought and future water stress risks.
We assessed both current and future risks across numerous dimensions, including: (1) current water stress, (2) number of vehicle rentals at each location, (3) flood risk and
(4) drought risk.
Value chain stage
Supply chain
Coverage
Partial
Risk assessment procedure
Water risks are assessed as part of an established enterprise risk management framework
Frequency of assessment
More than once a year
How far into the future are risks considered?
More than 6 years
Type of tools and methods used
Tools on the market
Enterprise risk management
Tools and methods used
CDP Page of 258
COSO Enterprise Risk Management Framework
Contextual issues considered
Water availability at a basin/catchment level
Water quality at a basin/catchment level
Stakeholders considered
Customers
Employees
Investors
Local communities
Regulators
Suppliers
Comment
Supply chain risks, including those associated with extreme weather events and other water-related risks that may impact our company’s overall risk factors, are regularly
reviewed as part of our multi-disciplinary, company-wide risk management process.
Value chain stage
Other stages of the value chain
Coverage
Partial
Risk assessment procedure
Water risks are assessed as part of an established enterprise risk management framework
Frequency of assessment
More than once a year
How far into the future are risks considered?
More than 6 years
Type of tools and methods used
Enterprise risk management
Tools and methods used
COSO Enterprise Risk Management Framework
Contextual issues considered
Water availability at a basin/catchment level
Water quality at a basin/catchment level
Stakeholders considered
Customers
Employees
Investors
Local communities
Regulators
Suppliers
Comment
Value chain risks, including those associated with safety and other water-related risks may impact our company’s overall risk factors, are regularly reviewed as part of our
multi-disciplinary, company-wide risk management process.
W3.3b
CDP Page of 259
(W3.3b) Describe your organization’s process for identifying, assessing, and responding to water-related risks within your direct operations and other stages of
your value chain.
Rationale for approach to risk
assessment
Explanation of contextual
issues considered
Explanation of stakeholders considered Decision-making process for risk response
Row
1
Our processes at the company level,
our ESG team maintains daily
strategic oversight to identify and
manage risks related to water that
may impact our Company’s
reputation, profitability and access to
capital. Key methods include (1)
engagement with subject matter
experts within our organization, (2)
engagement with consultants and
industry experts, and (3) reviewing
sustainability-related questionnaires
and assessment criteria from the
investor community and our corporate
purchasers.
Our processes at the asset level are
location-based. We identify and
assess water-related risks and
opportunities by actively tracking
environmental performance and
water-related risks. Additionally, our
business continuity processes enable
us to identify and assess physical
water risks (including flooding and
drought risks).
In 2022, we updated our water risk
assessment which includes all of our
U.S. operating locations. We
assessed both current risks across
these locations, including: (1) current
baseline water stress, (2) number of
vehicle rentals at each location, (3)
flood risk, (4) drought risk and (5)
water usage. Avis Budget Group
assesses water availability at the
basin level and water quality at the
basin level, considering baseline
water stress using the WRI Aqueduct
tool. We also consider risks related to
the status of ecosystems and
habitats to be relevant to our
business model, particularly in the
context of our dependency on a
thriving travel and tourism industry.
We consider all markets
where our brands (including
affiliate-managed
operations) have a
presence We also consider
global environmental and
socioeconomic trends,
which may impact the value
of our assets in addition to
revenue and costs in our
key markets, including
those in the Americas
(North America, South
America, Central America,
and the Caribbean). Our
company considers ESG
risks and opportunities,
including those related to
water security, within a 10-
year time horizon.
Additional contextual issues
considered are included in
the WRI aqueduct tool.
these include overall water
risk, which includes
indicators from the physical
quantity, quality and
regulatory & reputational
risk categories.
All our customers are considered in our company’s water-related risk assessment.
Increasingly, sustainability is becoming an important factor that drives brand reputation.
Our corporate customers are also increasingly interested in reducing their environmental
impact. Employees are also considered in our company’s water-related risk
assessments. Our employees depend on access to water to clean our rental vehicles.
Investors are considered in our company’s water-related risk assessments. Through our
annual ESG reporting, we aim to increase our public disclosures to better demonstrate
to shareholders our strategy and actions taken to better mitigate risks and drive more
sustainable, responsible growth. Local communities where operating facilities are
located are considered in our company’s water-related risk assessments, as we aim to
strengthen community resilience. These communities may be affected by water-related
risks, including baseline water stress, droughts and flooding. We consider NGOs in our
company’s water-related risk assessments. This includes partnering with organizations
to support community resilience. We consider regulators in our company’s water-related
risk assessments, specifically in the markets where we operate. We consider suppliers in
our company’s water-related risk assessments. We actively partner with suppliers to
manage risks and create shared value. We consider water utilities at a local level in our
company’s water-related risk assessments.
If the results of the water risk assessment
indicate the potential for a substantial financial
and/or strategic impact, we utilize qualitative and
quantitative measures to determine next steps.
Qualitative measures consider correlations to our
business model, mission and value chain. The
criteria used to determine our priorities with
regards to water risks and opportunities is based
on the degree of potential market, physical,
regulatory and/or business model impacts. We
also consider our value chain impacts, industry
trends and level of stakeholder interest among
our employees, investors, customers, and
affiliates. Examples related to water-related
issues have influenced our business strategy and
planning process includes the establishment of
our 2030 water reduction target and initiatives to
improve water efficiency at our operating
locations.
Within the decision-making process, the following
internal stakeholders are engaged to collaborate
and determine the next steps necessary in order
to mitigate the water-related risks. At times, it
may also be necessary to engage external
stakeholders, including consultants to advise on
the best path of action. For example, if it is found
that an ABG location is at significant risk for
extremely high water stress-related impacts, the
company may work with an engineering team to
evaluate water efficiency measures that can be
implemented at a car wash.
W4. Risks and opportunities
W4.1
(W4.1) Have you identified any inherent water-related risks with the potential to have a substantive financial or strategic impact on your business?
Yes, only within our direct operations
W4.1a
(W4.1a) How does your organization define substantive financial or strategic impact on your business?
DEFINITION OF SUBSTANTIVE IMPACT: We define risk as having a substantial financial and strategic impact using both qualitative and quantitative measures.
Qualitative measures consider correlations to our business model, mission, and value chain. Quantitatively, we generally consider a risk to be substantive based
on a scenario where at least 0.5% of our operating costs could be impacted. In our CDP 2023 Water Security response, this threshold was approximately $24
million.
FACTORS CONSIDERED: To determine whether to risk is substantive, the risk probability and frequency over a 5-year time horizon are the most significant
factors. We also consider the potential magnitude of water-related risks.
METRICS USED: Operating costs is used as the primary metric to contextualize risk thresholds. To track our progress toward managing water-related risks,
current metrics used include (1) water consumption, (2) water intensity, and (3) progress towards our 2030 water reduction target. Our current target is to reduce
our water footprint by 30%, prioritizing water stressed locations.
W4.1b
CDP Page of 2510
(W4.1b) What is the total number of facilities exposed to water risks with the potential to have a substantive financial or strategic impact on your business, and
what proportion of your company-wide facilities does this represent?
Total number of
facilities exposed to
water risk
% company-wide
facilities this
represents
Comment
Row
1
2 Less than 1% We have prioritized two operating locations within our data boundary with notable water risk at based on the following factors: (2) located in “extremely high”
water stress areas, based on the WRI Aqueduct tool. One of these facilities is located in Arizona; and one of these facilities is located in Colorado.
W4.1c
(W4.1c) By river basin, what is the number and proportion of facilities exposed to water risks that could have a substantive financial or strategic impact on your
business, and what is the potential business impact associated with those facilities?
Country/Area & River basin
United States of America Colorado River (Pacific Ocean)
Number of facilities exposed to water risk
2
% company-wide facilities this represents
Less than 1%
Production value for the metals & mining activities associated with these facilities
<Not Applicable>
% company’s annual electricity generation that could be affected by these facilities
<Not Applicable>
% company’s global oil & gas production volume that could be affected by these facilities
<Not Applicable>
% company’s total global revenue that could be affected
Less than 1%
Comment
We have prioritized two operating locations within our data boundary with notable water risk at based on the following factors: Both located in “extremely high” water stress
areas, based on the WRI Aqueduct tool. One
of these facilities is located in Arizona; and one of these facilities is located in Colorado.
W4.2
CDP Page of 2511
(W4.2) Provide details of identified risks in your direct operations with the potential to have a substantive financial or strategic impact on your business, and your
response to those risks.
Country/Area & River basin
United States of America Other, please specify (Gulf of Mexico and North Atlantic Coast)
Type of risk & Primary risk driver
Acute physical Cyclone, hurricane, typhoon
Primary potential impact
Increased operating costs
Company-specific description
Increases in the frequency and severity of extreme weather events, such as hurricanes, floods, and wildfires, could impact travel demand in specific markets, lead to supply
chain interruptions and may cause damage to physical assets required for business continuity. For example, we rely heavily on the satisfactory performance and availability
of our information systems, including our reservation systems, websites and network infrastructure to attract and retain customers, accept reservations, process rental and
sales transactions, manage our fleet of vehicles, account for our activities and otherwise conduct our business. A failure or interruption that results in the unavailability of
any of our information systems, or a major disruption of communications between a system and the locations it serves, could cause a loss of reservations, interfere with our
fleet management, slow rental and sales processes, create negative publicity that damages our reputation or otherwise adversely impacts our ability to manage our
business effectively. For example, following Hurricanes Harvey, Irma and Maria, we experienced an impact of approximately $15 million in quarterly adjusted EBITDA
associated with lost revenue; lower utilization due to airport closures; incremental shuttling costs that we incurred to move vehicles to the impacted area; and property
damage. On an annual basis, we typically incur 5-20 extreme weather events that require us to execute upon our business continuity plans. Over the past decade, extreme
weather events have increased in both their severity and their reach. Historically, hurricanes were typically localized events, however, these extreme weather events are
becoming more regional.
Timeframe
More than 6 years
Magnitude of potential impact
Medium-low
Likelihood
More likely than not
Are you able to provide a potential financial impact figure?
Yes, a single figure estimate
Potential financial impact figure (currency)
48000000
Potential financial impact figure - minimum (currency)
<Not Applicable>
Potential financial impact figure - maximum (currency)
<Not Applicable>
Explanation of financial impact
Estimated financial impact assumes the potential for an approximate 1% increase in 2022 operating expenses (approximately $48 million) associated with variability in fuel
and/or energy costs.
Primary response to risk
Amend the Business Continuity Plan
Description of response
Over the past 75 years, we have developed strong competencies in how we are able to respond when extreme weather events, including those also associated with water
related risks, including flooding. Avis Budget Group’s business continuity processes are central to how we execute. Our number #1 focus is on protecting our people,
property and infrastructure; and we utilize an “all hands-on deck” approach to ensure that we can respond as rapidly and effectively as possible. For example, we are able
to quickly respond through our crisis management team to mitigate risks and impacts that may disrupt our operations. We have also developed longstanding partnerships
with leading national disaster agencies, which strengthen our ability to provide support to affected customers, employees and communities. Consistent with our “all hands
on deck” approach, our teams across the globe provide vehicles and volunteer time to help communities recover from hurricanes, floods and other disasters throughout the
year. We also manage risks to our fleet by self-insuring vehicles against property damage. The insurance policies supplement those that our customers also have in place
for rented vehicles. To also manage risks related to extreme weather events, Avis Budget Group conducted a water risks assessment, which highlighted our company’s
flood risks for our U.S. operating locations. We will use the results from this assessment to evaluate opportunities to implement additional mitigation measures at high-risk
locations.
Each year, we also conduct a water risk assessment. Through this assessment, approximately 30% of our locations face high- or extremely-high water related risks. This
assessment helps us to prioritize areas with high risk and implement additional mitigation measures.
Cost of response
10000000
Explanation of cost of response
Annually, we typically incur expenditures in excess of $10 million associated with our insurance programs, business continuity processes and disaster response and relief
efforts.
W4.2c
CDP Page of 2512
(W4.2c) Why does your organization not consider itself exposed to water risks in its value chain (beyond direct operations) with the potential to have a
substantive financial or strategic impact?
Primary reason Please explain
Row
1
Risks exist, but
no substantive
impact
anticipated
Avis Budget Group has not identified any substantial impacts from water-related risks in our value chain. Quantitatively, we generally consider a risk to be substantive based on a scenario
where at least 1% of our revenue can be impacted. Potential risks within our value chain include potential (1) supply chain disruptions as a result of extreme weather events, such as
hurricanes and floods; (2) increased costs in good that we procure; and (3) local community health risks associated with declining water quality.
W4.3
(W4.3) Have you identified any water-related opportunities with the potential to have a substantive financial or strategic impact on your business?
Yes, we have identified opportunities, and some/all are being realized
W4.3a
(W4.3a) Provide details of opportunities currently being realized that could have a substantive financial or strategic impact on your business.
Type of opportunity
Efficiency
Primary water-related opportunity
Improved water efficiency in operations
Company-specific description & strategy to realize opportunity
Water is a vital resource for the world, and for Avis Budget Group. Limited or irregular water supply can have an impact on our operations, specifically where our locations
include car washes. Therefore, we are focused on being responsible, efficient stewards of local water resources. To minimize ABG’s water footprint, the company focuses
on the areas with the greatest opportunities. These include water consumption and wastewater associated with cleaning and maintaining its fleet. The company also
prioritizes reductions and efficiency measures at operating locations which experience the highest level of water stress. These measures include implementation of closed
loop and waterless car washing.
OUR STRATEGY: Avis Budget group has set a water reduction target to reduce our water footprint by 30% by 2030, prioritizing water stressed locations. Each year, we
conduct a water risk assessment to also evaluate water-related risks. Based on this assessment, approximately 30% our water consumption is withdrawn from locations
with at least “high” baseline water stress.
We are also committed to evaluating opportunities to increase water efficiency measures, including installing water savings car wash systems. We are also committed to
finding alternative waterless cleaning processes. For example, in 2022 we installed 10 car wash systems across our major facilities in the U.S. that recycle and reuse up to
80% of their wastewater. We have installed 45 of this car wash sytems since 2021. Also, in ABG’s location in Copenhagen, Denmark, piloted the installation of a closed
loop carwash, which not only saves water, but is also more cost-effective compared to tradition carwash systems. Through this system, 100% of the location’s water is
recirculated and purified in a closed loop. This system saves pproximately 265,000 gallons (1 million liters) of water annually.
Estimated timeframe for realization
4 to 6 years
Magnitude of potential financial impact
Low-medium
Are you able to provide a potential financial impact figure?
Yes, a single figure estimate
Potential financial impact figure (currency)
150000
Potential financial impact figure – minimum (currency)
<Not Applicable>
Potential financial impact figure – maximum (currency)
<Not Applicable>
Explanation of financial impact
Estimated financial impact assumes the cost of one water efficient car wash system potential of approximately $150,000, In 2022, we spent $1,500,000 to purchase 10 of
this car wash systems.
W5. Facility-level water accounting
W5.1
(W5.1) For each facility referenced in W4.1c, provide coordinates, water accounting data, and a comparison with the previous reporting year.
Facility reference number
Facility 1
Facility name (optional)
Phoenix, Az
CDP Page of 2513
Country/Area & River basin
United States of America Colorado River (Pacific Ocean)
Latitude
33.435867
Longitude
-112.049313
Located in area with water stress
Yes
Primary power generation source for your electricity generation at this facility
<Not Applicable>
Oil & gas sector business division
<Not Applicable>
Total water withdrawals at this facility (megaliters/year)
81.98
Comparison of total withdrawals with previous reporting year
Higher
Withdrawals from fresh surface water, including rainwater, water from wetlands, rivers and lakes
0
Withdrawals from brackish surface water/seawater
0
Withdrawals from groundwater - renewable
0
Withdrawals from groundwater - non-renewable
0
Withdrawals from produced/entrained water
0
Withdrawals from third party sources
81.98
Total water discharges at this facility (megaliters/year)
81.98
Comparison of total discharges with previous reporting year
Higher
Discharges to fresh surface water
0
Discharges to brackish surface water/seawater
0
Discharges to groundwater
0
Discharges to third party destinations
81.98
Total water consumption at this facility (megaliters/year)
81.98
Comparison of total consumption with previous reporting year
Higher
Please explain
Our total water consumption at our airport location in Phoenix, AZ location increased 25% compared to 2021. This increase was primarily due to strong demand for vehicle
rental as a result of COVID-19 travel restrictions being lifted and an increase in global travel demand compared to pre-pandemic levels.
This location is currently identified as having “extremely high” water stress using the WRI Aqueduct Tool. This site has been prioritized for water risk based on total water
withdrawals compared to other U.S. operating locations. At this location, we operate a water saving carwash system that recycle and reuse up to 80% of their wastewater.
Facility reference number
Facility 2
Facility name (optional)
Denver, Co
Country/Area & River basin
United States of America Mississippi River
Latitude
39.836151
CDP Page of 2514
Longitude
-104.692819
Located in area with water stress
Yes
Primary power generation source for your electricity generation at this facility
<Not Applicable>
Oil & gas sector business division
<Not Applicable>
Total water withdrawals at this facility (megaliters/year)
74.51
Comparison of total withdrawals with previous reporting year
Lower
Withdrawals from fresh surface water, including rainwater, water from wetlands, rivers and lakes
0
Withdrawals from brackish surface water/seawater
0
Withdrawals from groundwater - renewable
0
Withdrawals from groundwater - non-renewable
0
Withdrawals from produced/entrained water
0
Withdrawals from third party sources
74.51
Total water discharges at this facility (megaliters/year)
74.51
Comparison of total discharges with previous reporting year
Lower
Discharges to fresh surface water
0
Discharges to brackish surface water/seawater
0
Discharges to groundwater
0
Discharges to third party destinations
74.51
Total water consumption at this facility (megaliters/year)
74.51
Comparison of total consumption with previous reporting year
Lower
Please explain
Our airport location in Denver, CO is currently identified as having “extremely high” water stress using the WRI Aqueduct Tool. This site has been prioritized for water risk
based on total water withdrawals compared to other U.S. operating locations. At this location, we operate a water saving carwash system that recycle and reuse up to 80%
of their wastewater. Total water consumption at this facility decreased 18.5% in 2022 compared to 2021.
W5.1a
(W5.1a) For the facilities referenced in W5.1, what proportion of water accounting data has been third party verified?
Water withdrawals – total volumes
% verified
Not verified
Verification standard used
<Not Applicable>
Please explain
We do not currently have data associated with water withdrawals third-party assured.
CDP Page of 2515
Water withdrawals – volume by source
% verified
Not verified
Verification standard used
<Not Applicable>
Please explain
We do not currently have data associated with water withdrawals third-party assured.
Water withdrawals – quality by standard water quality parameters
% verified
Not verified
Verification standard used
<Not Applicable>
Please explain
We do not currently have data associated with water withdrawals third-party assured.
Water discharges – total volumes
% verified
Not verified
Verification standard used
<Not Applicable>
Please explain
We do not currently have data associated with water discharges third-party assured.
Water discharges – volume by destination
% verified
Not verified
Verification standard used
<Not Applicable>
Please explain
We do not currently have data associated with water discharges third-party assured.
Water discharges – volume by final treatment level
% verified
Not verified
Verification standard used
<Not Applicable>
Please explain
We do not currently have data associated with water discharges third-party assured.
Water discharges – quality by standard water quality parameters
% verified
Not verified
Verification standard used
<Not Applicable>
Please explain
We do not currently have data associated with water discharges third-party assured.
Water consumption – total volume
% verified
Not verified
Verification standard used
<Not Applicable>
Please explain
We do not currently have data associated with water consumption third-party assured.
W6. Governance
W6.1
(W6.1) Does your organization have a water policy?
Yes, we have a documented water policy that is publicly available
CDP Page of 2516
W6.1a
(W6.1a) Select the options that best describe the scope and content of your water policy.
Scope Content Please explain
Row
1
Company-
wide
Description of the scope
(including value chain stages)
covered by the policy
Description of business
dependency on water
Description of business impact
on water
Commitment to reduce water
withdrawal and/or consumption
volumes in supply chain
Commitments beyond regulatory
compliance
Reference to company water-
related targets
Acknowledgement of the human
right to water and sanitation
Avis Budget Group’s Environmental Policy describes our company-wide commitment to water stewardship. This policy is publicly available at:
https://avisbudgetgroup.com/wpcontent/uploads/2019/06/ABG-Environmental-Policy-2019.pdf.
We believe that access to clean, potable water is a fundamental right for all. We are focused on being responsible, efficient stewards of local water resources.
Water is a precious resource for the world, and for Avis Budget Group. Limited or irregular water supply can have an impact on our operations. Therefore, we are
focused on being responsible, efficient stewards of local water resources.
To minimize our water footprint, we are targeting our greatest impacts, which includes consumption and wastewater associated with cleaning and maintaining our
vehicles. We are also prioritizing reductions and efficiency measures at our operating locations with the highest level of water stress and scarcity risks. We have
set a goal to reduce our water footprint by 30%, prioritizing water stressed locations.
W6.2
(W6.2) Is there board level oversight of water-related issues within your organization?
Yes
W6.2a
(W6.2a) Identify the position(s) (do not include any names) of the individual(s) on the board with responsibility for water-related issues.
Position
of
individual
or
committee
Responsibilities for water-related issues
Board-level
committee
The highest level of responsibility within Avis Budget Group Corporation for the management of water-related issues is held by the Corporate Governance Committee of our Board of Directors. The
Corporate Governance Committee’s responsibilities include (1) reviewing and discussing emerging best practices, trends and key issues related to ESG matters and (2) overseeing the Company’s
strategy and governance of ESG matters and to advise the Board on such matters. The Corporate Governance Committee also oversees the Company’s risks and disclosure related to ESG and
annual ESG reporting, which includes water-related risks. In addition, the Corporate Governance Committee conducts periodic reviews of the Company’s programs, policies and procedures in the area
of ESG. This includes, among other things, directing senior management to report to the Corporate Governance Committee, on a periodic basis, assessments and progress against both longer- and
shorter-term key objectives, metrics and program enhancements set by senior management and reviewed by the Committee. An example of a water-related decision that the Board-level reviewed over
the past two years was the setting of the company’s water reduction target. Further oversight on water-related issues is provided by our Audit Committee, which is tasked with oversight for (1) and (2)
the steps management has undertaken to control these risks.
W6.2b
(W6.2b) Provide further details on the board’s oversight of water-related issues.
Frequency that
water-related
issues are a
scheduled
agenda item
Governance
mechanisms into
which water-
related issues
are integrated
Please explain
Row
1
Scheduled -
some meetings
Monitoring
implementation
and performance
Monitoring
progress towards
corporate targets
Reviewing and
guiding annual
budgets
Reviewing and
guiding corporate
responsibility
strategy
Reviewing and
guiding major
plans of action
Reviewing and
guiding risk
management
policies
Reviewing and
guiding strategy
Other, please
specify
(monitoring
policies and
procedures )
The Corporate Governance Committee of our Board of Directors is tasked with oversight of specific ESG-related risks including water-related risks. Our Corporate Social
Responsibility team provides updates to our entire Board on our progress against annual milestones and key objectives.
The Corporate Governance Committee conducts periodic reviews of the Company’s programs, policies and procedures in the area of ESG. This includes, among other
things, directing senior management to report to the Corporate Governance Committee, on a periodic basis, assessments and progress against both longer- and shorter-
term key objectives, metrics and program enhancements set by senior management and reviewed by the Committee.
Additionally, the Audit Committee oversees risks related to application laws and regulations. Our full Board of Directors receives reports from our committees (including
our Audit and Corporate Governance Committees) at every regular Board meeting and receives regular reports from members of senior management that include
discussion of the risks and exposures involved in their respective areas of responsibility. Such reports are provided in connection with and discussed at Board meetings.
For example, topics covered in these reports may include business continuity and strategic initiatives (including sustainable mobility and related ESG strategies).
CDP Page of 2517
W6.2d
(W6.2d) Does your organization have at least one board member with competence on water-related issues?
Board member(s) have
competence on water-
related issues
Criteria used to assess competence of
board member(s) on water-related
issues
Primary reason for no board-level
competence on water-related
issues
Explain why your organization does not have at least one board member with
competence on water-related issues and any plans to address board-level competence
in the future
Row
1
No, but we plan to address this
within the next two years
<Not Applicable> Important but not an immediate
priority
Avis Budget Group will continue to evaluate Board qualifications, attributes, skills and
experience including building competence on water-related issues.
W6.3
CDP Page of 2518
(W6.3) Provide the highest management-level position(s) or committee(s) with responsibility for water-related issues (do not include the names of individuals).
Name of the position(s) and/or committee(s)
Other C-Suite Officer, please specify (Chief Human Resources Officer (CHRO))
Water-related responsibilities of this position
Assessing water-related risks and opportunities
Managing water-related risks and opportunities
Setting water-related corporate targets
Monitoring progress against water-related corporate targets
Managing value chain engagement on water-related issues
Integrating water-related issues into business strategy
Frequency of reporting to the board on water-related issues
Quarterly
Please explain
RESPONSIBILITIES: Our Chief Human Resources Officer is responsible for (1) engaging our Board of Directors, leadership team and relevant departments to advance our
environmental initiatives and the management of substantive water-related risks and opportunities; (2) overseeing the execution of our global, company-wide Environmental
Policy and (3) assessing the sustainability-related needs and expectations of our investors, corporate customers, retail customers, employees, and communities.
MONITORING OF WATER-RELATED ISSUES: Examples of current processes whereby our Chief Human Resources Officer monitors water-related issues include the
following: (1) reviewing emerging topics of greatest interest to our stakeholders (as evidenced by investor ratings and corporate customer requests for information) and (2)
measuring and tracking our global operational environmental footprint and progress against our water reduction target.
Name of the position(s) and/or committee(s)
Other, please specify (Senior Vice President, General Counsel & Corporate Secretary (SVP))
Water-related responsibilities of this position
Assessing water-related risks and opportunities
Managing water-related risks and opportunities
Setting water-related corporate targets
Monitoring progress against water-related corporate targets
Managing value chain engagement on water-related issues
Integrating water-related issues into business strategy
Frequency of reporting to the board on water-related issues
Quarterly
Please explain
RESPONSIBILITIES: Avis Budget Group’s SVP, General Counsel, Chief Compliance Officer & Corporate Secretary (General Counsel) is responsible for (1) engaging our
Board of Directors, leadership team and relevant departments within our Company to advance our environmental initiatives and the management of substantive water
related risks and opportunities; (2) overseeing the execution of our global, company-wide Environmental Policy and (3) assessing the sustainability-related needs and
expectations of our investors, corporate customers, retail customers, employees, and communities. MONITORING OF WATER-RELATED ISSUES: Examples of current
processes whereby our General Counsel monitors water-related issues include: (1) reviewing emerging topics of greatest interest to our stakeholders (as evidenced by
investor ratings and corporate customer requests for information) and (2) measuring and tracking our global operational environmental footprint and progress against our
water reduction target.
Name of the position(s) and/or committee(s)
Sustainability committee
Water-related responsibilities of this position
Assessing water-related risks and opportunities
Managing water-related risks and opportunities
Conducting water-related scenario analysis
Setting water-related corporate targets
Monitoring progress against water-related corporate targets
Managing value chain engagement on water-related issues
Integrating water-related issues into business strategy
Managing annual budgets relating to water security
Managing major capital and/or operational expenditures related to low water impact products or services (including R&D)
Frequency of reporting to the board on water-related issues
Quarterly
Please explain
RESPONSIBILITIES: Avis Budget Group’s ESG Steering Committee, includes a Water & Waste Steering Committee. This Committee is responsible for monitoring water-
related impacts and performance. This includes Avis Budget Group’s water consumption metrics, and progress against our goals and targets.
MONITORING OF WATER-RELATED ISSUES: Examples of processes whereby our Water & Waste Steering Committee monitors water-related issues include the
following: (1) reviewing emerging topics of greatest interest to our stakeholders (as evidenced by investor ratings and corporate customer requests for information), (2)
measuring and tracking our water footprint; and (3) continuing to enhance our water strategy, including efficiency measures.
W6.4
CDP Page of 2519
(W6.4) Do you provide incentives to C-suite employees or board members for the management of water-related issues?
Provide incentives
for management of
water-related issues
Comment
Row
1
Yes Progress toward Avis Budget Group’s corporate ESG strategy is directly linked to compensation for our Chief Human Resources Officer and Senior Vice President, General Counsel,
Chief Compliance Officer & Corporate Secretary. Progress toward Avis Budget Group’s ESG strategy – notably our focus on advancing the future of sustainable mobility solutions – is
indirectly linked and highly correlated to compensation for our company’s named executive officers, including our Chief Executive Officer.
W6.4a
(W6.4a) What incentives are provided to C-suite employees or board members for the management of water-related issues (do not include the names of
individuals)?
Role(s)
entitled
to
incentive
Performance
indicator
Contribution of incentives to the achievement of your organization’s water commitments Please explain
Monetary
reward
Chief
Executive
Officer
(CEO)
Reduction of
water
withdrawals –
direct
operations
Progress toward Avis Budget Group’s ESG strategy (i.e., the reduction of water withdrawals) – notably our focus on advancing the future
of sustainable mobility solutions – is indirectly linked and highly correlated to compensation for our company’s named executive officers,
including our Chief Executive Officer. A redesigned annual incentive program containing a more heavily weighted individual performance
component, to be based on key metrics and measurable targets utilizing a “scorecard” approach, subject to the Company’s attainment
of financial performance goals. Part of the annual objectives for our Chief Human Resources Officer and Senior Vice President, General
Counsel, Chief Compliance Officer & Corporate Secretary is to oversee and advance our strategy and communication of ABG’s
environmental initiatives and overarching corporate ESG platform. This also includes progress towards our water and climate-related
strategies.
Progress toward Avis Budget Group’s
ESG strategy – notably our focus on
advancing the future of sustainable
mobility solutions – is indirectly linked
and highly correlated to compensation
for our company’s named executive
officers, including our Chief Executive
Officer.
Non-
monetary
reward
General
Counsel
Reduction of
water
withdrawals –
direct
operations
Progress toward Avis Budget Group’s ESG strategy (i.e., the reduction of water withdrawals) – notably our focus on advancing the future
of sustainable mobility solutions – is indirectly linked and highly correlated to compensation for our company’s named executive officers,
including our Chief Executive Officer. A redesigned annual incentive program containing a more heavily weighted individual performance
component, to be based on key metrics and measurable targets utilizing a “scorecard” approach, subject to the Company’s attainment
of financial performance goals. Part of the annual objectives for our Chief Human Resources Officer and Senior Vice President, General
Counsel, Chief Compliance Officer & Corporate Secretary is to oversee and advance our strategy and communication of ABG’s
environmental initiatives and overarching corporate ESG platform. This also includes progress towards our water and climate-related
strategies.
Progress toward Avis Budget Group’s
corporate ESG strategy is directly
linked to compensation for our Senior
Vice President, General Counsel,
Chief Compliance Officer & Corporate
Secretary.
W6.5
(W6.5) Do you engage in activities that could either directly or indirectly influence public policy on water through any of the following?
Yes, trade associations
W6.5a
(W6.5a) What processes do you have in place to ensure that all of your direct and indirect activities seeking to influence policy are consistent with your water
policy/water commitments?
Our processes to ensure that indirect activities are consistent with our overall water change strategy are as follows: (1) Prior to entering into new affiliations or
expanding the scope of current affiliations, an organization’s policy positions are among the several factors that we would consider. (2) Through membership
and participation, we would be able to monitor whether their activities are consistent with our climate and water strategy. (3) Additionally, we utilize our annual
disclosures to the CDP Water Security program as an opportunity to further review and assess whether the public policy positions of trade associations for
which Avis Budget Group has an affiliation are consistent with our own ESG strategy. If any inconsistencies are found, Avis Budget Group will further investigate
these indirect activities.
W6.6
(W6.6) Did your organization include information about its response to water-related risks in its most recent mainstream financial report?
Yes (you may attach the report - this is optional)
Avis Budget Group 2022 10-K.pdf
W7. Business strategy
W7.1
CDP Page of 2520
(W7.1) Are water-related issues integrated into any aspects of your long-term strategic business plan, and if so how?
Are water-
related
issues
integrated?
Long-
term
time
horizon
(years)
Please explain
Long-
term
business
objectives
Yes, water-
related
issues are
integrated
11-15 ISSUES INTEGRATED: Avis Budget Group considers the management of water-related risks and opportunities, including access water to support our operations, throughout our
long-term strategic planning of at least 11-15 years. INFLUENCE ON PLANNING: The decision-making process with regards to strategy and financial planning considers the
following materiality-based factors: (1) greatest business impacts; (2) our degree of control and/or influence; and (3) the needs, concerns, and key business drivers of our
stakeholders. Water-related issues have directly influenced our business strategy in the following ways: (1) as part of strategy, it is important to deliver long-term sustainable value
for our stakeholders and (2) implementing sustainability practices will also help strengthen our brand reputation. As such, we actively report on our water-related performance and
evaluate opportunities to communicate our ESG strategy to our stakeholders. This includes reporting water metrics and risks and opportunities. Examples of actions taken to
integrate the water-related issues identified include our investments into waterless and closed loop car washing. In 2022, we installed 10 water-saving car wash systems across
our major facilities in the U.S. A total of 45 water-saving car wash systems since 2021. These systems recycle and reuse up to 80% of their wastewater, which not only saves
water, but is also more cost-effective compared to tradition carwash systems.
Strategy
for
achieving
long-term
objectives
Yes, water-
related
issues are
integrated
11-15 ISSUES INTEGRATED: We aim to deliver sustainable, responsible growth to our shareholders, demonstrating our commitment to best-in-class environmental, social and
governance (ESG) practices. As such, Avis Budget Group considers water-related issues, extreme weather events and associated impacts (including flooding) and other physical
risks (including droughts) throughout our long-term strategic planning of at least 11-15 years. INFLUENCE ON PLANNING: We remain committed to increasing water efficiency
measures at our operating locations. This includes evaluating opportunities for waterless cleaning processes at our car wash locations. Additionally, we set a water reduction
target, which aims to reduce our water footprint by 30% by 2030, prioritizing water stressed locations. Examples of actions taken to integrate the water-related issues identified
include our investments into waterless and closed loop car washing. In 2022, we installed 10 water-saving car wash systems across our major facilities in the U.S. A total of 45
water-saving car wash systems since 2021. These systems recycle and reuse up to 80% of their wastewater, which not only saves water, but is also more cost-effective compared
to tradition carwash systems. ABG’s location in Copenhagen, Denmark, piloted a closed loop carwash, through this system, 100% of the location’s water is recirculated and
purified in a closed loop. This system saves approximately 265,000 gallons (1 million liters) of water annually
Financial
planning
Yes, water-
related
issues are
integrated
11-15 ISSUES INTEGRATED: The most significant risk identified as having a potential impact to our revenues is related to reputation, as our stakeholders are increasingly interested in
ESG-related issues. The management of these risks also presents the potential opportunity to increase revenue through competitive differentiation. INFLUENCE ON PLANNING:
We remain committed to increasing water efficiency measures at the company’s operating locations. This includes evaluating opportunities for waterless cleaning processes.
Additionally, we set a provisional water reduction target, which aims to reduce our water footprint by 30% by 2030, prioritizing water stressed locations. Using the World Resources
Institute’s Aqueduct Tool we conduct an annual water risk assessment of our U.S. operating locations. The result from the assessment informs of how we prioritize our water
efficiency at these locations in areas with high water stress and future water-related risks. Examples of actions taken to integrate the water-related issues identified include our
investments into waterless and closed loop car washing. ABG’s location in Copenhagen, Denmark, piloted the installation of a closed loop carwash, which not only saves water,
but is also more cost-effective compared to tradition carwash systems. Through this system, 100% of the location’s water is recirculated and purified in a closed loop. This system
saves approximately 265,000 gallons (1 million liters) of water annually.
W7.2
(W7.2) What is the trend in your organization’s water-related capital expenditure (CAPEX) and operating expenditure (OPEX) for the reporting year, and the
anticipated trend for the next reporting year?
Row 1
Water-related CAPEX (+/- % change)
70
Anticipated forward trend for CAPEX (+/- % change)
0
Water-related OPEX (+/- % change)
0
Anticipated forward trend for OPEX (+/- % change)
1
Please explain
Water-related CAPEX decreased by 70% from 2022 to 2021. In 2021, we retrofited most of our car wash systems wit water -efficient systems across our major facilities and
in 2022 there was less facilities to retrofit.
In 2022, Avis Budget Group invested approximately $1.4million in water-related projects. Water-related OPEX increased by 2% from 2022 to 2021 following the increased
demand in global travel. In 2022, water-related OPEX increased due to the increased demand for rental vehicles, which contributed to an increase in the use of our car
washes.
W7.3
(W7.3) Does your organization use scenario analysis to inform its business strategy?
Use of
scenario
analysis
Comment
Row
1
Yes
CLIMATE-RELATED SCENARIO ANALYSIS: Avis Budget Group identified and evaluated two climate-related scenarios based on a 2-degree scenario and 4-degree scenario. Additionally, our
2030 Scope 1 and 2 emissions reduction target is based on a decarbonization pathway in the excess of the 2.5% annual decreases expected for alignment with the 2-degree level of ambition for
science-based targets. WATER-RELATED OUTCOMES: Our provisional 2030 water efficiency target is complementary to our emission reduction target, as we aim to mitigate physical risks,
including droughts. We also consider the nexus between current and future water-related risks within our climate-related strategy.
WATER-RELATED OUTCOMES: Our provisional 2030 water efficiency target is complementary to our emission reduction target, as we aim to mitigate physical risks, including droughts. We also
consider the nexus between current and future water-related risks within our climate-related strategy.
W7.3a
CDP Page of 2521
(W7.3a) Provide details of the scenario analysis, what water-related outcomes were identified, and how they have influenced your organization’s business
strategy.
Type of
scenario
analysis
used
Parameters,
assumptions, analytical
choices
Description of possible water-related outcomes Influence on business strategy
Row
1
Climate-
related
Avis Budget Group’s
climate-related scenarios
analysis utilized the
TCFD risk and
opportunity categories.
This includes the
transition scenario – IEA
2DS and physical
scenario – RCP2.6
Avis Budget Group considers a wide range of ESG-related issues, including physical risks, such flooding and
drought. We consider the potential for changes in physical climate parameters to present a broader series of
challenges, such as those relating to (1) extreme weather events, (2) decreases in water supply, and (3) heat
exposure. In the short-term, extreme weather events have been prioritized as our greatest physical risk, due
to (1) potential business disruptions, (2) impacts to demand for travel in key markets and (3) potential
increases in insurance premiums. To prioritize our greatest physical and transition risks, we consider the risks
that are most applicable to our industry, which includes reputational risks. We also consider impacts across
our value chain.
As a result of water related outcomes, we have set a
water reduction target to minimize water footprint by 30%
by 2030 prioritizing water stressed locations. We conduct
an annual water risk assessment to identify locations in
high or extremely high baseline water stress. We invest in
water efficiency measures to support the reduction of our
water footprint. The anticipated timescale for our response
is 8 to 10 years.
W7.4
(W7.4) Does your company use an internal price on water?
Row 1
Does your company use an internal price on water?
No, and we do not anticipate doing so within the next two years
Please explain
Compared to industrial and agricultural users, Avis Budget Group is not considered a water-intensive company, therefore we do not expect to introduce an internal price of
carbon in the next two years. However, we will continue monitoring climate- and water-related risks, including the intersectionality of water access, water quality, climate
change and human health. In 2022, we continued prioritizing reductions and efficiency measures at our operating locations with the highest level of water stress and
scarcity risks.
W7.5
(W7.5) Do you classify any of your current products and/or services as low water impact?
Products and/or services
classified as low water
impact
Definition used to
classify low water
impact
Primary reason for not classifying any of your
current products and/or services as low water
impact
Please explain
Row
1
No, and we do not plan to
address this within the next two
years
<Not Applicable> Important but not an immediate business priority Low water impact products and services are less relevant to our business model. We will
continue to evaluate opportunities to reduce water consumption at the car washes used by the
company.
W8. Targets
W8.1
(W8.1) Do you have any water-related targets?
Yes
W8.1a
(W8.1a) Indicate whether you have targets relating to water pollution, water withdrawals, WASH, or other water-related categories.
Target set in this category Please explain
Water pollution No, but we plan to within the next two years Not applicable
Water withdrawals Yes <Not Applicable>
Water, Sanitation, and Hygiene (WASH) services No, and we do not plan to within the next two years Not applicable
Other No, and we do not plan to within the next two years Not applicable
W8.1b
CDP Page of 2522
(W8.1b) Provide details of your water-related targets and the progress made.
Target reference number
Target 1
Category of target
Water withdrawals
Target coverage
Company-wide (direct operations only)
Quantitative metric
Reduction in total water withdrawals
Year target was set
2020
Base year
2018
Base year figure
1138.8
Target year
2030
Target year figure
798
Reporting year figure
1275.84
% of target achieved relative to base year
Target status in reporting year
Underway
Please explain
In 2022, total water consumption was 2.6% lower compared to 2021. Additionally, our water intensity per revenue decreased by 24% (from 0.0000001402 to
0.0000001064). This decrease in total consumption and intensity per revenue was in part due to the water efficiency measures implemented at select locations.
During 2021, we invested $1,500,000 to replace 10 car wash systems across the United States with new car washes that are expected to recycle and reuse at least 80% of
the water at these facilities. A total of 45 new water-efficient car wash sytems since 2021.
To achieve this target, we will continue to prioritize reductions and efficiency measures at our operating locations with the highest level of water stress and scarcity risks.
This also includes focusing our water efficiency measures associated with our largest water consumption processes, including cleaning and maintaining our vehicles.
W9. Verification
W9.1
(W9.1) Do you verify any other water information reported in your CDP disclosure (not already covered by W5.1a)?
No, but we are actively considering verifying within the next two years
W10. Plastics
W10.1
(W10.1) Have you mapped where in your value chain plastics are used and/or produced?
Plastics mapping Value chain stage Please explain
Row 1 Not mapped – and we do not plan to within the next two years <Not Applicable> Not applicable
W10.2
(W10.2) Across your value chain, have you assessed the potential environmental and human health impacts of your use and/or production of plastics?
Impact assessment Value chain stage Please explain
Row 1 Not assessed – and we do not plan to within the next two years <Not Applicable> Not applicable
CDP Page of 2523
W10.3
(W10.3) Across your value chain, are you exposed to plastics-related risks with the potential to have a substantive financial or strategic impact on your business?
If so, provide details.
Risk exposure Value chain stage Type of risk Please explain
Row 1 Not assessed – and we do not plan to within the next two years <Not Applicable> <Not Applicable> Not applicable
W10.4
(W10.4) Do you have plastics-related targets, and if so what type?
Targets in place Target type Target metric Please explain
Row 1 No – and we do not plan to within the next two years <Not Applicable> <Not Applicable> Not applicable
W10.5
(W10.5) Indicate whether your organization engages in the following activities.
Activity applies Comment
Production of plastic polymers No
Production of durable plastic components No
Production / commercialization of durable plastic goods (including mixed materials) No
Production / commercialization of plastic packaging No
Production of goods packaged in plastics No
Provision / commercialization of services or goods that use plastic packaging (e.g., retail and food services) No
W11. Sign off
W-FI
(W-FI) Use this field to provide any additional information or context that you feel is relevant to your organization's response. Please note that this field is optional
and is not scored.
W11.1
(W11.1) Provide details for the person that has signed off (approved) your CDP water response.
Job title Corresponding job category
Row 1 Director – Global ESG Environment/Sustainability manager
SW. Supply chain module
SW0.1
(SW0.1) What is your organization’s annual revenue for the reporting period?
Annual revenue
Row 1 11994000000
SW1.1
(SW1.1) Could any of your facilities reported in W5.1 have an impact on a requesting CDP supply chain member?
SW1.2
CDP Page of 2524
(SW1.2) Are you able to provide geolocation data for your facilities?
Are you able to provide geolocation data for your facilities? Comment
Row 1 Please select
SW2.1
(SW2.1) Please propose any mutually beneficial water-related projects you could collaborate on with specific CDP supply chain members.
SW2.2
(SW2.2) Have any water projects been implemented due to CDP supply chain member engagement?
Please select
SW3.1
(SW3.1) Provide any available water intensity values for your organization’s products or services.
Product name
Car Rental Revenues
Water intensity value
1275.84
Numerator: Water aspect
Water withdrawn
Denominator
$11,994,000,000
Comment
In 2022, total water consumption was 2.6% lower compared to 2021. Additionally, our water intensity per revenue decreased by 24% (from 0.0000001402 to
0.0000001064). This decrease in total consumption and intensity per revenue was in part due to the water efficiency measures implemented at select locations.
During 2021, we invested $1,500,000 to replace 10 car wash systems across the United States with new car washes that are expected to recycle and reuse at least 80% of
the water at these facilities. A total of 45 new water-efficient car wash sytems since 2021.
To achieve this target, we will continue to prioritize reductions and efficiency measures at our operating locations with the highest level of water stress and scarcity risks.
This also includes focusing our water efficiency measures associated with our largest water consumption processes, including cleaning and maintaining our vehicles.
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