Coty

No leading practices were identified in the governance and strategy area.

GHG emissions
The company actively reduces its scope 1 and 2 greenhouse gas emissions and has established time-bound targets for their reduction. It consistently reports progress against these targets. The company also sets a time-bound target for its scope 3 emissions. All of its targets are aligned with a 1.5-degree trajectory.

Solid and air pollution
The company discloses quantitative reductions in hazardous waste, as well as some activities aimed at reducing plastic use production.

Water
The company demonstrates it is reducing water withdrawal in its own operations.

No leading practices were identified in the social inclusion and community impact area.

Act ethically
The company prohibits both public and private sector bribery, including facilitation payments, through its publicly available policy statement. It extends these prohibitions to its business relationships, embedding anti-bribery and anti-corruption clauses in contracts with partners. The company maintains a strict stance against retaliation towards anyone raising concerns in good faith, as detailed in its Code of Conduct. It encourages employees and third parties to use its Ethics and Compliance Hotline for reporting potential breaches, providing options for anonymity. Additionally, the company explicitly states it does not make political contributions.

Provide and promote decent work
The company maintains a publicly available policy that commits to respecting the health and safety of workers and expects the same commitment from its business relationships. It enforces compliance through SEDEX self-assessments, risk assessment tools, and audits, including those on labor and human rights, across its supply chain. The company also uses EcoVadis to assess suppliers’ environmental and social performance. As a WEPs signatory since 2021, it commits to gender equality and women’s empowerment, setting a goal for gender-balanced leadership by 2025. The company discloses that 54.54% of its board members are female.

Respect human rights
Coty commits to respecting all internationally recognised human rights standards with approval from its highest governance body, as detailed in their publicly available human rights policy statement.

Lobbying
The company does not report on its lobbying and advocacy practices on nature-related issues, nor whether these activities align with its sustainability strategy.

Stakeholder engagement
While the company discloses an overview of its stakeholder engagement plan, it has an opportunity to disclose more comprehensive details including an overview of the issues raised or its process for engaging with stakeholder groups, including frequency and channels.

Sustainability strategy and accountability
While the company discloses a materiality assessment process, it does not disclose evidence of double materiality. While the company discloses some sustainability targets, it has an opportunity to establish group-wide, time-bound targets for the most material parts of its value chain. No evidence was found that the company links remuneration with sustainability performance, nor whether its highest governance body has expertise on nature-related issues.

Ecosystem conversion and restoration
No evidence was found regarding the company’s efforts to avoid ecosystem conversion, including deforestation, or promote restoration. The company has an opportunity to develop a strategy and publicly report on specific, time-bound targets.

GHG emissions
The company reports an increase in its scope 3 emissions.

Impact and dependencies assessment
The company has not holistically assessed its impacts or how it depends on nature, including biodiversity. It has an opportunity to start such an assessment across its value chains, focused on quantification of its impacts or dependencies.

Invasive species
The company has not identified any activities that could lead to the introduction of invasive alien species in its own operations.

Key areas and species
The company does not disclose key species or areas important for biodiversity affected by its operations or suppliers. It has an opportunity to increase its transparency.

Resource exploitation and circularity performance
No evidence was found regarding the company’s efforts to work towards a circular economy or which organisms it exploits. The company has an opportunity to develop a strategy and publicly report on specific, time-bound targets.

Solid and air pollution
The company is not reducing the production of hazardous substances. The company does not commit to avoid developing or marketing new chemicals or products with SVHC (substance of very high concern) properties. The company does not report on the amount of plastic waste generated and proportions directed from or to disposal. It also does not report metrics on air pollutants, nor set time-bound targets to reduce them.

Water
The company does not provide a time-bound target to reduce water withdrawal or report the amount of water withdrawn for its operations in water-stressed areas, nor engages with suppliers to reduce water withdrawal. The company does not report relevant information on water pollution. The company has an opportunity to publicly commit to the right to water and to provide its processes for implementing preventive and corrective action plans for identified specific risks to the right to water and sanitation in its own operations.

Indigenous Peoples’ and land rights
The company does not show if it is committed to respecting Indigenous Peoples’ rights or land rights of local communities.

Safe, clean, healthy and sustainable environment
The company has an opportunity to commit to respecting local communities’ right to a safe, clean, healthy and sustainable environment, and to zero tolerance for acts of violence, threats, intimidation or judicial harassment committed against land and environmental rights defenders. Moreover, it should track its actual or potential negative impacts on the health of local communities.

Act ethically
The company lacks a documented process to identify bribery and corruption risks and impacts in specific locations or activities. It has not disclosed any publicly available policy on lobbying and political engagement and does not show its expenditures on lobbying activities. The company has an opportunity to create and disclose policies and processes regarding anti-bribery and anti-corruption efforts, and transparently outline its approach to political engagement.

Provide and promote decent work
The company reports on certain safety metrics but does not provide comprehensive data on work-related injuries, fatalities, or the number of hours worked. There is no disclosure of a time-bound target or achievement in paying all workers a living wage, nor details on determining living wages regionally. Additionally, while expecting business partners to comply with wage laws, it does not ensure these wages support a decent standard of living. The company reveals gender pay equity across management but lacks detailed disclosure on the salary and remuneration ratio of women to men across its workforce. The company has an opportunity to expand its reporting on work-related injuries, establish and disclose strategies for achieving living wage payments, and enhance transparency in gender pay equity across all employee categories.

Respect human rights
The company has policies against forced labour, child labour, and discrimination but does not have a strong commitment to freedom of association and collective bargaining, only ensuring these rights “in accordance with applicable laws”. It uses tools like SEDEX and EcoVadis for supplier assessments, but there is no detailed disclosure of the processes for identifying human rights risks. Although involved in the Responsible Mica Initiative to address child labour in its supply chain, the company does not sufficiently disclose its own salient human rights issues or its global system for addressing them. The company has an opportunity to formalise and strengthen its policy commitments across all fundamental human rights and enhance its risk assessment transparency.