Environmental Disclosure Practices in the Car Rental Sector: Transatlantic Differences and Regulatory Influences

Abstract

International sustainability reporting has passed through significant changes over the past decade, marked by increasing alignment among global standards systems such as GRI, SASB, TCFD, and the Science Based Targets initiative (SBTi). In the European Union, this evolution has been institutionalised through the Corporate Sustainability Reporting Directive (CSRD) and its European Sustainability Reporting Standards (ESRS), which mandate double materiality, quantitative performance indicators, and external assurance. These advancements reflect an international progression through to unified reporting practices that combines financial and non-financial disclosing, emphasising carbon reduction, transparency, and circular economy principles. Despite this convergence, notable divergence persists between regions: European reporting remains compliance-driven and standardised, whereas U.S. practices continue to rely on voluntary disclosure and market-led innovation, resulting in more flexible and heterogeneous reporting structures.

Across the multinational car rental industry, sustainability reporting functions both as a strategic tool and as a mechanism of corporate accountability. The findings of this thesis show that firms navigate sustainability through a balance of regulatory expectations, investor demands, and internal environmental commitments. While European companies tend to embed sustainability within governance structures due to the influence of the CSRD, U.S. firms emphasise technological partnerships, operational innovation, and targeted initiatives. Nonetheless, the growing influence of the CSRD is expected to narrow this divide as non-EU companies operating in Europe adapt to mandatory disclosure requirements. Overall, sustainability reporting continues to evolve as a key instrument for advancing transparent, responsible, and competitive business practices in the transition toward low-carbon mobility.