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SUSTAINABILITY ACCOUNTING STANDARD TRANSPORTATION SECTOR

CAR RENTAL & LEASING

Sustainability Accounting Standard

Sustainable Industry Classification SystemTM (SICSTM) #TR0103

Prepared by the Sustainability Accounting Standards Board?

September 2014 Provisional Standard

? 2014 SASBTM



CAR RENTAL & LEASING

Sustainability Accounting Standard

About SASB

The Sustainability Accounting Standards Board (SASB) provides sustainability accounting standards for use by publicly listed corporations in the U.S. in disclosing material sustainability information for the benefit of investors and the public. SASB standards are designed for disclosure in mandatory filings to the Securities and Exchange Commission (SEC), such as the Form 10-K and 20-F. SASB is an independent 501(c)3 non-profit organization. Through 2016, SASB is developing standards for more than 80 industries in 10 sectors.

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SUSTAINABILITY ACCOUNTING STANDARD | CAR RENTAL

Table of Contents

Purpose & Structure ....................................................................................................................................................................................................1 Industry Description ....................................................................................................................................................................................................1 Guidance for Disclosure of Material Sustainability Topics in SEC Filings...................................................................................................................2 Guidance on Accounting of Material Sustainability Topics ........................................................................................................................................4 Users of the SASB Standards.......................................................................................................................................................................................4 Scope of Disclosure .....................................................................................................................................................................................................5 Reporting Format ........................................................................................................................................................................................................5

Activity Metrics and Normalization ........................................................................................................................................................................................5 Units of Measure...................................................................................................................................................................................................................6 Uncertainty ...........................................................................................................................................................................................................................6 Estimates..............................................................................................................................................................................................................................6 T iming ..........................................................................................................................................................................................................................6 Limitations ...................................................................................................................................................................................................................6 Forward-looking Statements ......................................................................................................................................................................................7 Assurance.....................................................................................................................................................................................................................7 Table 1. Sustainability Disclosure Topics & Accounting Metrics.................................................................................................................................8 Customer Safety ..........................................................................................................................................................................................................9 Description ...........................................................................................................................................................................................................................9 Accounting Metrics ...............................................................................................................................................................................................................9 Fleet Fuel Economy & Utilization..............................................................................................................................................................................11 Description .........................................................................................................................................................................................................................11 Accounting Metrics .............................................................................................................................................................................................................11

INTRODUCTION

Purpose & Structure

This document contains the SASB Sustainability Accounting Standard (SASB Standard) for Car Rental & Leasing.

SASB Standards are comprised of (1) disclosure guidance and (2) accounting standards on sustainability topics for use by U.S. and foreign public companies in their annual filings (Form 10-K or 20-F) with the U.S. Securities and Exchange Commission (SEC). To the extent relevant, SASB Standards may also be applicable to other periodic mandatory filings with the SEC, such as the Form 10-Q, Form S-1, and Form 8-K.

SASB's disclosure guidance identifies sustainability topics at an industry level, which may be material-- depending on a company's specific operating context-- to a company within that industry.

Each company is ultimately responsible for determining which information is material and is therefore required to be included in its Form 10-K or 20-F and other periodic SEC filings.

SASB's accounting standards provide companies with standardized accounting metrics to account for performance on industry-level sustainability topics. When making disclosure on sustainability topics, companies adopting SASB's accounting standards will help to ensure that disclosure is standardized and therefore useful, relevant, comparable, and auditable.

Industry Description

Car Rental & Leasing companies rent or lease passenger vehicles to customers. Car rentals are typically for periods of less than a month, while leases are for a year or more. The industry includes car-sharing business models where rentals are measured hourly and typically include subscription fees. Car rental companies operate out of airport and neighborhood locations. Airport locations serve both business and leisure travelers. Neighborhood locations mostly provide repair-shop and weekend rentals. The industry is concentrated, with three dominant market players. Industry players operate globally and use a franchise model. Car rental companies use contracts with automobile manufacturers to manage their fleets. In some cases, these contracts have repurchase agreements requiring the manufacturer to repurchase the vehicle at a guaranteed depreciation rate during a specified time.

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Guidance for Disclosure of Material Sustainability Topics in SEC Filings

1 . Industry-Level Sustainability Disclosure Topics For the Car Rental & Leasing industry, SASB has identified the following sustainability disclosure topics:

? Customer Safety ? Fleet Fuel Economy & Utilization

2 . Company-Level Determination and Disclosure of Material Sustainability Topics Sustainability disclosures are governed by the same laws and regulations that govern disclosures by securities issuers generally. According to the U.S. Supreme Court, a fact is material if, in the event such fact is omitted from a particular disclosure, there is "a substantial likelihood that the disclosure of the omitted fact would have been viewed by the reasonable investor as having significantly altered the `total mix' of the information made available."1,2

SASB has attempted to identify those sustainability topics that it believes may be material for all companies within each SICS industry. SASB recognizes, however, that each company is ultimately responsible for determining what is material to it.

Regulation S-K, which sets forth certain disclosure requirements associated with Form 10-K and other SEC filings, requires companies, among other things, to describe in the Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A) section of Form 10-K "any known trends or uncertainties that have had or that the registrant reasonably expects will have a material favorable or unfavorable impact on net sales or revenues or income from continuing operations. If the registrant knows of events that will cause a material change in the relationship between costs and revenues (such as known future increases in costs of labor or materials or price increases or inventory adjustments), the change in the relationship shall be disclosed."2

Furthermore, Instructions to Item 303 state that the MD&A "shall focus specifically on material events and uncertainties known to management that would cause reported financial information not to be necessarily indicative of future operating results or of future financial condition."2

In determining whether a trend or uncertainty should be disclosed, the SEC has stated that management should use a two-part assessment based on probability and magnitude:

? First, a company is not required to make disclosure about a known trend or uncertainty if its management determines that such trend or uncertainty is not reasonably likely to occur.

? Second, if a company's management cannot make a reasonable determination of the likelihood of an event or uncertainty, then disclosure is required unless management determines that a material effect on the registrant's financial condition or results of operation is not reasonably likely to occur.

1 TSC Industries v. Northway, Inc., 426 U.S. 438 (1976). 2 C.F.R. 229.303(Item 303)(a)(3)(ii).

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3 . Sustainability Accounting Standard Disclosures in Form 10-K a . Management's Discussion and Analysis Companies should consider making disclosure on sustainability topics as a complete set in the MD&A, in a sub-section titled "Sustainability Accounting Standards Disclosures ."3

b . Other Relevant Sections of Form 10-K In addition to the MD&A section, companies should consider disclosing sustainability information in other sections of Form 10-K, as relevant, including:

? Description of business--Item 101 of Regulation S-K requires a company to provide a description of its business and its subsidiaries. Item 101(c)(1)(xii) expressly requires disclosure regarding certain costs of complying with environmental laws:

Appropriate disclosure also shall be made as to the material effects that compliance with Federal, State and local provisions which have been enacted or adopted regulating the discharge of materials into the environment, or otherwise relating to the protection of the environment, may have upon the capital expenditures, earnings and competitive position of the registrant and its subsidiaries.

? Legal proceedings--Item 103 of Regulation S-K requires companies to describe briefly any material pending or contemplated legal proceedings. Instructions to Item 103 provide specific disclosure requirements for administrative or judicial proceedings arising from laws and regulations that target discharge of materials into the environment or that are primarily for the purpose of protecting the environment.

? Risk factors--Item 503(c) of Regulation S-K requires filing companies to provide a discussion of the most significant factors that make an investment in the registrant speculative or risky, clearly stating the risk and specifying how a particular risk affects the particular filing company.

c . Rule 12b-20 Securities Act Rule 408 and Exchange Act Rule 12b-20 require a registrant to disclose, in addition to the information expressly required by law or regulation, "such further material information, if any, as may be necessary to make the required statements, in light of the circumstances under which they are made, not misleading."

More detailed guidance on disclosure of material sustainability topics can be found in the SASB Conceptual Framework, available for download via .

3 SEC [Release Nos. 33-8056; 34-45321; FR-61] Commission Statement about Management's Discussion and Analysis of Financial

Condition and Results of Operations: "We also want to remind registrants that disclosure must be both useful and understandable. That

is, management should provide the most relevant information and provide it using language and formats that investors can be expected

to understand. Registrants should be aware also that investors will often find information relating to a particular matter more meaningful

if it is disclosed in a single location, rather than presented in a fragmented manner throughout the filing."

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