Download pdf - OUR COMMITMENT TO CORPORATE CITIZENSHIP...HERC HOLDINGS INC OUR COMMITMENT TO CORPORATE CITIZENSHIP 20191 Herc Rentals Inc. is a subsidiary of Herc Holdings Inc., shares of which are

OUR COMMITMENT TO CORPORATE CITIZENSHIP2 0 1 9

H E R C H O L D I N G S I N C .

ABOUT HERC RENTALS …………………………………... 1A MESSAGE FROM OUR CEO …………………………. 3WE DO WHAT’S RIGHT …………………………………… 4SAFETY FIRST …………………………………………………… 5COMMITMENT TO SUSTAINABILITY ……….. 10SUPPORTING TEAM HERC ………………………….. 13SERVING COMMUNITIES …………………………….. 17

TABLE OF CONTENTS

1O U R C O M M I T M E N T T O C O R P O R A T E C I T I Z E N S H I P | 2 0 1 9H E R C H O L D I N G S I N C .

Herc Rentals Inc. is a subsidiary of Herc Holdings Inc., shares of which are listed on the New York Stock Exchange under the stock symbol HRI.

ABOUT HERC RENTALS

* Original equipment cost (OEC) based on American Rental Association guidelines. OEC as of December 31, 2018.

OUR VISIONWe aspire to be the supplier, employer and investment of choice in our industry.

OUR VALUESWe do what’s right.

We’re in this together.

We take responsibility.

We achieve results.

We prove ourselves every day.

OUR MISSIONTo ensure that end users of our equipment and services achieve optimal performance safely, efficiently and effectively.

We have approximately 270 company operated locations, principally in North America.

2018 KEY FACTS1 One of the leading North American

equipment rental companies.

1 Estimated 3% market share in a highly fragmented market.

1 $1.98 billion in total revenues.

1 $3.78 billion in fleet (OEC).*

1 Approximately 4,900 employees.

1 Approximately 270 company operated locations, principally in North America.


OUR CORPORATE CITIZENSHIP CHARTER

1 Prioritize the safety and well-being of our employees, customers and communities.

1 Minimize and continuously seek to reduce environmental impacts associated with our business activities.

1 Align business practices and policies to reflect our responsibilities as a corporate citizen and to support mutually beneficial outcomes across our stakeholder groups.


A MESSAGE FROM OUR CEO

Larry Silber President and Chief Executive Officer Herc Holdings Inc.

April 21, 2019

Larry Silber President and Chief Executive Officer

Photo: Robert Sciarrino/ROI-NJ

Herc Rentals embraces its obligation to act as a responsible organization every day and everywhere we operate. With approximately 270 locations, principally in North America, our company is a citizen of many communities, each of which deserves our full commitment to safe, healthy and environmentally sound operations.

Our commitment is rooted in the concept of Responsible Value Creation. As a for-profit business enterprise, we continuously seek to create value for customers, employees and shareholders. While engaging in our for-profit mission, we understand and embrace our social, environmental and people-related obligations to create value in a responsible manner.

Our minimum standard is to comply with all applicable laws and regulations in the jurisdictions in which we operate and conduct business. Additionally, our values demand an elevated commitment to operate ethically and with integrity, and this consideration directly informs our business practices. And, ultimately, our business success depends on earning and maintaining the trust and goodwill of customers, communities and entities that influence our operational standing.

The tenets of Responsible Value Creation provide the framework for continuously evaluating and refining our business practices to reflect our obligations as a responsible corporate citizen and enable us to create long-term value.

They also guide our decision making and policies across the principle dimensions of corporate citizenship, including ethics and integrity; safety; environmental practices; our people; the workplace; and community involvement.

This report sets forth the company’s commitment to business practices that reflect our responsibilities as a corporate citizen and represents Herc Rentals’ environmental, social and people-related business practices as currently structured. We hope to inspire our team members, customers and other stakeholders about the company’s long-term commitment to operating in a manner that is profitable for the business and our shareholders, while also attending to our obligations as a trusted and responsible corporate citizen.

OurMission

To ensure that end users of our equipment

and services achieve optimal performance safely, e�ciently

and e�ectively.

OurValues

We do what’s right.We’re in this together.We take responsibility.

We achieve results.We prove ourselves every day.

OurVision

We aspire to be the supplier, employer and

investment of choicein our industry.


Our foremost value, "We do what’s right," sets the expectation that all team members will uphold both the letter and the spirit of the law and treat everyone with respect. By extension, we are committed to a culture of ethics and integrity and to operating our business in a manner that earns and keeps the trust of our customers, investors, employees, communities and other key stakeholders.

We formalize this commitment: All team members must complete online ethics training and certify annually that they have read and understand our company’s Code of Ethics, which governs conduct across many areas of our business and offers guidance on asking questions or reporting concerns about potential violations of the law or company policies. All newly hired team members are also required to acknowledge our Code of Ethics as part of their onboarding process.

WE DO WHAT’S RIGHT

To further enable a culture of ethics and integrity, every company facility posts information about our Compliance HelpLine, a confidential third-party service that team members can call to report suspected unethical behavior or violations of our company’s policies, to seek guidance on our policies and procedures, or to offer suggestions. Team members can do all this anonymously if they choose.


SAFETY FIRST

SAFETY COMMITMENTHerc Rentals requires an active commitment to, and personal accountability for, safety and safety compliance from all employees and contractors. Operations leaders have a key role in the communication and implementation of, and ensuring adherence to, Safety and compliance policies and standards.

As part of our ongoing commitment to Safety, we will:

1 Protect and strive for improvement in the safety and health of our teammates at all times;

1 Eliminate accidents and non-conformance to safety policies, procedures and practices;

1 Safely meet specified customer requirements and ensure continuous customer satisfaction;

1 Set safety performance objectives, measure results, assess and continually improve processes and services through the use of effective safety programs and processes;

1 Responsibly plan for, and swiftly respond to and resolve safety-related events;

1 Communicate openly with internal and external stakeholders and ensure an understanding of our safety policies, standards, programs and performance;

1 Recognize and reward outstanding safety performance;

1 Improve our performance on safety issues relevant to our internal and external stakeholders that are of concern and on which we can have an impact, and share with them our knowledge of successful Safety programs and initiatives;

1 Comply with applicable safety laws, regulations, and industry standards;

1 Promote a culture where Stop Work is an individual obligation and company responsibility;

1 Identify and implement effective management related to safety risks;

1 Allocate appropriate resources to honor our safety commitment;

1 Commit to making everyday a "Perfect Day."


THE PERFECT DAYIn 2018 we adopted the concept of the "Perfect Day," which is defined as a working day across our entire company in which we have:

1 No OSHA recordable incidents;

1 No Department of Transportation violations; and

1 No "at fault" motor vehicle accidents.

All our operating regions achieved at least 85% Perfect Days in 2018. We are committed to improving our Perfect Day performance and achieving the 100% mark we aspire to.

Leading safety performance is recognized each year at our annual ProExpo company-wide business meeting and individual and team safety achievements are celebrated throughout the year on location and through our weekly Herc Wire publication. Our professional drivers and technicians who have demonstrated positive safety behaviors are presented with a "Think Safety" sticker, which they proudly display on their vehicle or toolboxes.

BUILDING A SAFETY FIRST CULTUREOur safety culture is predicated on training, communications, empowerment, measurement and recognition. Training includes more than 300 online, on-demand courses available to all team members; weekly branch "Toolbox Safety Meetings" centered on a key safety area of focus; Safety Guides; and a “Lessons Learned” library of incidents and preventative recommendations.

Safety communications include an annual commitment to safety and ongoing safety reminders from the CEO of the company; monthly "Safety Thoughts" messages that reinforce safety awareness and behaviors at work and at home; safety boards at every branch that serve as dedicated resource for safety-related information; and morning stretch and safety huddles at all locations to help get every working day off to a safe start.

All team members are empowered to intervene with a Stop Work Authority (SWA) when they perceive an unacceptable safety condition, act or situation where an individual’s lack of understanding could result in an incident. The SWA is supported through a daily observation program at our locations that prepares team members to assess their work environment and tasks for potential hazards.

In addition to tracking and sharing standard safety performance metrics, we have established a Safety Dashboard that measures all branch locations on leading safety indicators, including training, monthly branch inspections, Toolbox Safety Meetings, employee observations and total safety inspection findings, we share Safety Dashboard performance internally every quarter.


Across our operations team members take time to focus on safety awareness and behaviors that help make every day the "Perfect Day."


ELECTRICKWh (millions )

2017 20182016

26.9

22.2

27.2

20

25

30

WATERGallons (millions )

2017 20182016

49.0 47.745.7

20

40

60

WASTE WATERGallons (millions )

2017 20182016

36.7

33.733.0

20

30

40

NATURAL GASMMBTU (thousands )

2017 20182016

123

92

132

80

120

160

RECYCLED OILGallons (thousands )

2017 20182016

229 232241

100

200

300

TRIRTotal RecordableIncident Rate

2017 20182016

1.11 1.05

1.35

0

2.00

1.00

DARTDays Away/Restricted,Transfer Rate

2017 20182016

.65.73

.82

0

1.00

0.50

LTCLost TimeCase Rate

2017 20182016

.39

.53.56

0

1.00

0.50

SAFETY PERFORMANCEWe expect to achieve annual safety performance levels equal to or better than the industry average and we are committed to ensuring we have the training, tools and time necessary to keep safety at the forefront of everything we do.

Our Total Recordable Incident Rate (TRIR) has improved by 22% since 2016 despite two successive years of higher work activity associated with revenue growth and supporting multiple natural disasters across North America.

Team members across the company signed their commitment to safety and the "Perfect Day." The banners are prominently displayed at each location as a constant reminder of our safety commitment.


SAFETY TRAININGOur safety mission extends to helping our customers’ worksites and people operate safely. We offer training on our equipment to ensure safe operating practices; we perform safety assessments at customer worksites and offer suggestions for improvement; we participate in customers’ safety teams as a partner in reducing workplace hazards; and we apply our own required safety protocols whenever we visit a customer worksite.


COMMITMENT TO SUSTAINABILITY

ENVIRONMENTAL MANAGEMENT POLICYWe are committed to minimizing the impact of our equipment rental operations on the environment by implementing programs that incorporate sound environmental policy. We will operate in accordance with all relevant local, state, and federal regulations and will strive to use pollution prevention and best management practices throughout our branches to:

1 Handle, store, and dispose of substances that are defined as hazardous material in compliance with local, state, and federal regulation;

1 Reduce, reuse, and recycle our waste products as much as possible;

1 Minimize water consumption and ensure safe water treatment within our branches by incorporating innovative design of waste water treatment systems;

1 Minimize energy consumption by employing energy reducing initiatives;

1 Conduct regular training for staff working in and around petroleum storage tanks to inform on hazardous materials stored onsite, as well as regular inspections of storage tanks, dispensers, and critical safety devices;

1 When required by local, state, and federal regulations, develop and maintain appropriate emergency and spill response programs;

1 Whenever possible, purchase products and services that do the least damage to the environment and communicating this commitment to our vendors;

1 Monitor the environmental impact of our business practices and review our progress on a continual basis; and

1 Promote environmental stewardship and best management practices to our customers that utilize rental equipment.


ELECTRICKWh (millions )

2017 20182016

26.9

22.2

27.2

20

25

30

WATERGallons (millions )

2017 20182016

49.0 47.745.7

20

40

60

WASTE WATERGallons (millions )

2017 20182016

36.7

33.733.0

20

30

40

NATURAL GASMMBTU (thousands )

2017 20182016

123

92

132

80

120

160

RECYCLED OILGallons (thousands )

2017 20182016

229 232241

100

200

300

TRIRTotal RecordableIncident Rate

2017 20182016

1.11 1.05

1.35

0

2.00

1.00

DARTDays Away/Restricted,Transfer Rate

2017 20182016

.65.73

.82

0

1.00

0.50

LTCLost TimeCase Rate

2017 20182016

.39

.53.56

0

1.00

0.50

OPERATIONSWe continue to focus on reducing electricity, natural gas and water consumption and wastewater across our facilities. We achieved year-over-year reductions in all four areas in 2018 despite a higher level of business compared to 2017.

We also have deployed a closed-loop recycling program for used oil through a third-party partner. In 2018, this program recycled approximately 232,000 gallons of oil.


A MORE ENERGY–EFFICIENT FLEETApproximately 40% of our applicable equipment rental fleet is Tier 4 compliant, with that percentage expected to increase each year through normal fleet rotation. We expect our entire applicable fleet to achieve Tier 4 standards by 2022. Overall, our fleet composition continues to evolve toward more efficient compact equipment and a smaller proportion of emissions-generating gear.

We are increasing the number of energy-efficient products in our fleet, such as LED-light equipped portable light towers, electric-powered industrial forklifts, a range of battery-powered and hybrid aerial equipment, fuel-efficient and electric air compressors, and zero-emission demolition robots. We continuously look for opportunities to add fleet with zero emissions, as several leading OEMs develop extended-life battery-powered, hybrid and fully electric solutions.

We also offer equipment that reduces noise and dust associated with their use or from other sources. Our CitySilent™ sound attenuation system for continuous-duty gear, such as generators and light towers, as well as our noise-mitigation panels significantly reduce worksite noise pollution. Our containment systems keeps noise and dust out of the work environment. And our dust-control solutions help protect concrete and masonry workers and comply with OSHA regulations pertaining to respirable silica dust, while our dust suppression fog cannons keep worksite particulates in check.

Clockwise from top left: Dust-control solutions, zero-emission electric portable LED-light towers and electric industrial forklifts are among our growing fleet of equipment offering environmental and worker-safety advantages.


SUPPORTING TEAM HERC

COMMITMENT TO A SAFE, INCLUSIVE AND RESPONSIBLE CULTUREOur Labor and Workplace Policy outlines our commitment to providing a working environment that recognizes the dignity and value of all team members.

We seek to advance the diversity of the people on our team and to provide an inclusive environment where all contributions and perspectives are valued.

We are committed to equal opportunity and to maintaining workplaces that are free from discrimination or harassment. We do not tolerate disrespectful or inappropriate behavior, unfair treatment or retaliation of any kind.

We are committed to complying with all applicable safety and health laws and regulations and providing a safe and healthy workplace, including one that is free from violence, harassment, intimidation and other unsafe or disruptive conditions due to physical, verbal or online threats.

We are committed to complying with applicable labor and employment laws wherever we operate and adhering to and promoting human rights in accordance with the UN Guiding Principles on Business and Human Rights.


BUILDING AN INCLUSIVE TEAMWe have expanded our strategic focus to underscore the understanding that our success depends on the dedication and capability of our team members.

Our strategic pillar relating to "Develop Our People and Culture" reflects our ongoing effort to enable and empower our team members in support of a culture that powerfully executes our long-term strategy.

We are focused on attracting, retaining and empowering talented and dedicated people as part of building the best team in the equipment industry. We also seek to build a team that reflects the variety of people, cultures and communities we interact with every day and to create an inclusive, productive environment in which all team members feel valued and respected.

In keeping with our commitment to diversity and inclusion, we seek to advance opportunities for women in our company and, by extension, the equipment rental industry. As of the date of this report, Herc Rentals’ workforce included 536 women, or nearly 11% of our workforce.

We are committed to hiring veterans across all areas of our business. In support of that commitment, we are proud to be recognized as a 2019 Military Friendly® employer and to participate in the U.S. Army Partnership for Youth Success, a program that helps veterans transition into the civil work force following their service. As of the end of 2018, we had more than 350 veterans in our workforce.


INVESTING IN OUR PEOPLEWe offer team members a host of learning and development opportunities spanning instructor-led and online, on-demand courses that support improved performance and effectiveness as well as personal and professional growth. These opportunities apply to all team members across all stages of career progression and job responsibilities.

More than a dozen instructor-led courses enhance team members’ sales, managerial, leadership and role-specific skills, such as our ProDriver Academy, Shop and Counter Operations, and Branch Manager programs. At the same time, more than 3,000 courses available through our online, on-demand Herc University catalog drive team members’ safety awareness, equipment familiarity, professional development and technical proficiency.

Overall, Herc Rentals team members benefited from more than 95,000 hours of training in 2018.

We continue to expand our instructor-led and online course catalog to support our continued focus on safety, operational excellence, customer service and team member development.


THE VOICE OF OUR TEAM MEMBERSIn the fourth quarter of 2018 we engaged a third-party firm to conduct our first team member survey as an independent company. With a response rate of just over 50% of full-time team members, we scored above benchmark averages across six dimensions of workplace culture, but below aspirational targets in each area. We have already acted on opportunities to improve team member engagement and workplace culture, including expanded learning and development programs, more targeted and relevant communications and more frequent and visible recognition of team members’ successes.


SERVING COMMUNITIES

With approximately 270 locations, principally in North America, we play an important role economic and social role wherever we work and live. We believe that our philanthropic and volunteer activities are best managed at the local level, with each of our equipment-rental branches basing their efforts on available resources and community needs.

Team members also provide ongoing support to community programs across North America, such as volunteering for litter removal, serving as youth recreation coaches, giving blood, organizing food drives, and mentoring disadvantaged youths.

On a more formal basis, the company has established a philanthropic partnership with Youth Haven, which offers a safe harbor for traumatized, abused, neglected and homeless children in Southwest Florida.

Bonita Springs, FL, team members prepare delivery of donations to a local food bank.


READY TO RESPONDIn 2018, Herc Rentals branches and team members responded to flooding, hurricanes, wildfires and severe winter weather by staging and rapidly deploying equipment where urgently needed, ensuring a rapid response to devastated communities. Our response often meant the difference in saving homes, businesses and possessions; restoring a sense of normalcy in the aftermath of disasters; and providing peace of mind and comfort to the many lives we touched. In less than a week following Hurricane Michael’s October 2018 landfall in

the Florida panhandle, our team established a fully equipped and staffed temporary "pop-up" branch to support customers and local communities with the equipment needed in the lengthy recovery and rebuilding effort.

©2019 Herc Rentals Inc.DRAFT – 190419

Herc Holdings Inc.27500 Riverview Center Blvd.Bonita Springs, FL 34134

HercRentals.com