General
The Environment General section focuses on how well a company manages environmental risks and demonstrates its commitment to reducing its impact on the planet. In this section, companies are evaluated on their ability to identify and mitigate environmental risks, such as carbon emissions, water usage, and waste management, and what environmental policies exist within the company and their importance.
Helpful Resources
About this question
By carrying out a business-wide risk assessment, companies can identify and prioritize the most significant environmental risks they face and take appropriate measures to prevent and mitigate those risks. This can help a company to avoid legal liabilities, reputational damage, and operational disruptions, while fulfilling their environmental responsibilities and meeting stakeholder expectations.
An environmental risk assessment of a company should include a thorough analysis of the potential risks associated with the company’s operations, products, services, and supply chains. The assessment should consider the company’s impact on the environment, and should also evaluate the effectiveness of the company’s policies and procedures. The assessment should include input from internal and external stakeholders. The output of the assessment should be a prioritized list of the most significant environmental risks, along with recommendations for mitigating and managing those risks.
- Answer yes if your company has assessed actual and potential environmental impact and risks and has prioritized the most salient risks and impact to be acted upon
- Answer no if your company has not conducted an environmental risk assessment
Applicability: Brand, Retailer, Brand and Retailer
Reference ID: eg_MQ
Evidence
Either
- Link to published outputs of environmental risk assessment process (e.g., ESG strategy or report, sustainability report, corporate website, Annual Report and Accounts)
or
- Internal risk assessment documentation
and
- Evidence of oversight by board/senior leadership (e.g., ESG Committee minutes, board meeting papers etc.)
About this question
The environmental risk assessment should cover risks that your company may cause or contribute to through its own activities, or directly linked to your company’s operations, products or services by its business relationships. This question tests the breadth of the environmental risk assessment carried out, reflecting the five impact areas in the environment pillar defined within this assessment.
- Select one or more impact areas that your company has assessed during its risk assessment process
- Select none if your company has not assessed any impact in your risk assessment process or you have not have an environmental rights risk assessment
Applicability: Brand, Retailer, Brand and Retailer
Reference ID: eg_Mg
Evidence
Either
- Link to published outputs of environmental risk assessment process (e.g., ESG strategy or report, sustainability report, corporate website, Annual Report and Accounts) including impact areas covered
or
- Internal risk assessment documentation and
- Evidence of oversight by board/senior leadership (e.g., ESG Committee minutes, board meeting papers)
About this question
Conducting a comprehensive environmental risk assessment is critical to developing effective risk management strategies. The environmental risk assessment should cover risks that your company may cause or contribute to through its own activities, or directly linked to your company’s operations, products or services by its business relationships. This detailed evaluation should not only consider direct impacts but also encompass the broader implications along the entire value chain. When assessing risks at each stage of the value chain, it is essential to clearly identify and specify these risks. Accurate identification of risks at each tier is crucial for developing precise and effective risk mitigation strategies. This question provides an opportunity to demonstrate the depth and precision of the environmental risk assessment carried out by your company.
- Select one or more value chain stages that your company has assessed to develop your environmental risk assessment
- Select none if your company has not engaged with any stakeholders in your risk assessment process or you have not have an environmental risk assessment
Applicability: Brand, Retailer, Brand and Retailer
Reference ID: eg_Mw_b (For: Brand, Brand and Retailer)
Reference ID: eg_Mw_r (For: Retailer)
Evidence
Either
- Link to published outputs of environmental risk assessment process (e.g., ESG strategy or report, sustainability report, corporate website, Annual Report and Accounts)
and
- Indication to where the published document demonstrates risk assessment of the value chain stages selected in your answer
or
- Internal risk assessment documentation
and
- Indication to where the documentation demonstrates risk assessment of the value chain stages selected in your answer
and
- Evidence of oversight by board/senior leadership (e.g., ESG Committee minutes, board meeting papers)
About this question
This question tests the robustness of your company’s risk assessment process by measuring to what extent it refers to relevant frameworks. Examples of relevant frameworks include Global Biodiversity Score, ZDHC, WWF Water Risk Filter, GHG protocol, etc. In all cases you should be able to evidence use of references.
- Answer yes if your company has assessed actual and potential impact and risks against key frameworks
- Answer no if your company has not assessed actual and potential impact and risks against key frameworks
Applicability: Brand, Retailer, Brand and Retailer
Reference ID: eg_NA
Evidence
Either
- Link to published risk assessment (e.g., ESG strategy or report, corporate website, Annual Report and accounts) demonstrating alignment with international standards
or
- Internal risk assessment documentation demonstrating alignment with international standards
and
- Evidence of oversight by board/senior leadership (e.g., ESG Committee minutes, board/senior management resolutions or meeting minutes)
About this question
Risk assessments in companies should be reviewed periodically, at least once a year or whenever significant changes occur in the company’s operations, supply chain, or regulatory landscape that may impact environmental risks. This question asks if you have a mechanism or process in place to ensure these updates are undertaken regularly.
Examples of changing circumstances include amongst others: opening a new sourcing country, entering a new market, new national or international regulation, (geo) political developments, and/or impact of climate change or other geographical crises.
- Answer yes if your company has a process in place that defines how and when environmental risks assessments should be updated
- Answer no if your company has no process in place for updating environmental risks assessments
Applicability: Brand, Retailer, Brand and Retailer
Reference ID: eg_NQ
Evidence
Either
- Link to published risk assessment policy indicating how often and when risk assessments are carried out (e.g., Corporate governance/sustainability section of company website, Annual Report and accounts)
or
- Internal risk assessment policy and process documents, indicating how often and when risk assessments will be carried out
and
- Evidence of oversight by board/senior leadership (e.g., Director/General Counsel signature, ESG Committee minutes, board/senior management resolutions or meeting minutes
About this question
Environmental impacts often intersect with social aspects, affecting workers and community rights . This question seeks to determine whether your environmental risk assessments also consider social risks that arise from your company’s activities, operations, and value chain and how both dimensions (environmental and social) are interrelated.
To adequately respond, consider if your environmental risk assessment process:
Identifies both direct and indirect social risks that may arise from environmental impacts of your company’s activities, including operations and supply chain.
Incorporates a systematic approach for evaluating and integrating these social risks into your environmental risk assessment.
Has defined protocols for how and when to include social risks in environmental assessments, ensuring a holistic view of sustainability.
- Answer yes if your company has a process in place that defines how and when social risks should be included in your environmental risk assessments
- Answer no if your company has no process in place that defines how and when social risks should be included in your environmental risk assessments
Applicability: Brand, Retailer, Brand and Retailer
Reference ID: eg_Ng
Evidence
Either
- Link to published outputs of environmental risk assessment process demonstrating the integration of associated social risks (e.g., ESG strategy or report, corporate website, Annual Report and accounts)
or
- Internal environmental risk assessment documentation demonstrating the integration of associated social risks
and
- Evidence of oversight by board/senior leadership (e.g., ESG Committee minutes, board/senior management resolutions or meeting minutes)
About this question
Once your company has identified the most salient risks, it should determine more specifically the details of these risks and whether there are actual or potential impacts. This question aims to measure to what extent your company is undertaking a more thorough analysis of the most salient risks.
In certain cases, additional assessments are necessary to determine the exact scope, nature and incidence of risks and adverse impact. It will also inform the relationships to your company’s operations with the risks and impact (has your company caused or contributed to the risks and adverse impacts identified).
Below are some granular examples, but not limited to:
- Climate: Detailed analysis of the carbon footprint of production processes, assessment of the impact of climate change on raw material availability, and evaluation of the company’s contribution to greenhouse gas emissions.
- Water: Assessing water usage and efficiency in manufacturing processes, analyzing impacts on local water resources in production areas, and identifying risks related to water scarcity.
- Waste: Evaluating the lifecycle of products to identify waste generation points, analyzing waste management practices, and assessing opportunities for recycling and circular economy initiatives.
- Chemicals: Conducting in-depth assessments of chemicals used in production, their impact on workers’ health and the environment, and exploring safer alternatives.
- Biodiversity: Evaluating the impact of sourcing practices on ecosystems, analyzing the effect of production on local biodiversity, and assessing the company’s role in habitat destruction or conservation.
- Answer yes if your company has carried out more detailed assessment on identified key risks to determine, amongst others, nature and scope
- Answer no if your company has not carried out more detailed assessments for the identified salient risks
Applicability: Brand, Retailer, Brand and Retailer
Reference ID: eg_Nw
Evidence
Either
- Link to published outputs of detailed environmental risk assessment processes demonstrating deeper examination of salient environmental risks identified (e.g., ESG strategy or report, corporate website, Annual Report and accounts)
or
- Internal environmental risk assessment documentation demonstrating deeper examination of salient environmental risks identified
and
- Evidence of oversight by board/senior leadership (e.g., ESG Committee minutes, board/senior management resolutions or meeting minutes)
About this question
An Environmental policy is a company’s public expression of its commitment to meet its responsibility to respect internationally recognized environmental standards. Policies that state a corporate commitment are a critical component of corporate governance. This question asks for a high level commitment to a corporate environmental policy approved by the board or senior management, that describes how the company will identify, prevent and address environmental risks it has identified.
The policy is likely to include an overview of the steps taken to develop the policy, information on priority areas, commitment to make resources available, allocating a responsible team, defining the process by which salient environmental risks will be assessed or mitigated, and how they will be reported on.
- Answer yes if you can provide a link to your company’s published environmental policy as described above
- Answer no if there is no environmental policy or if the policy is not in the public domain
Applicability: Brand, Retailer, Brand and Retailer
Reference ID: eg_OA
Evidence
Provide:
- Link to published policy, statement or group of policies on company website
About this question
A company’s environmental policy sets the standard for responsible business practices and should include specific impact areas. This question aims to measure the extent of your company’s commitment around certain key impact areas.
- Select one or more related impact areas covered by your company’s environmental policy
- Select none if you cannot provide evidence of your environmental policy covering any of the impact areas listed
Applicability: Brand, Retailer, Brand and Retailer
Reference ID: eg_OQ
Evidence
Provide:
- Link to published policy, statement or group of policies on company website
About this question
The company’s environmental policy sets the standard for responsible business practices, but certain impact areas may pose specific challenges that require tailored policies to address them. This question aims to determine your commitment to respecting the environment across various impact areas.
- Select one or more related impact areas if you can provide evidence of a tailored policy (or equivalent document) developed to cover a given impact area with specific challenges
- Select none if you cannot provide evidence of a tailored policy (or equivalent document) developed to cover a given impact area with specific challenges)
Applicability: Brand, Retailer, Brand and Retailer
Reference ID: eg_MTA
Evidence
Either
- Link to published policies, statements or group of policies on company website
or
- Internal (unpublished) policies dated and signed on behalf of the board / senior leadership
and
- Screenshots demonstrating how unpublished policies are made available to stakeholders (e.g. employee intranet, supplier portal)
Note: Policies can be standalone or combined, for example a company’s published Environmental Policy could be a standalone statement, but could also contain within it, policies on water or waste. The relevant section of the document should be indicated to the verifier, e.g., page or section number