Coty’s ESG Rating Improves

Coty Inc. has made improvements in its Environmental, Social and Governance (ESG) ratings from both MSCI and Sustainalytics.

Its MSCI ESG Rating has been upgraded to A from BB; Sustainalytics ESG rating now at low risk and third among household product companies.

The achievement underscores Coty’s dedication to advancing sustainability across all aspects of its business, officials said.

The improvement reflects enhanced performance across several key ESG areas, including: packaging material and waste; raw material sourcing; chemical safety; and corporate governance.

Carbon Footprint Score Remains High

Coty’s MSCI Carbon Footprint score remains at the maximum level, demonstrating the company’s ongoing commitment to minimizing its environmental impact.

Coty improved its Sustainalytics ESG Risk Rating, moving from 23.9 (medium risk) to 18.1 (low risk). Officials say this progress places Coty as the lead amongst global beauty companies and 3rd out of 104 in Household Products companies as rated by Sustainalytics.

The company’s Sustainalytics improvement is attributed to advancements in seven key areas:
Environmental & Social Impact of Products and Services;
Land Use and Biodiversity;
Water Use;
Human Capital;
Product Governance;
Data Privacy and Security; and
Corporate Governance.

The upgrades follow Coty’s strong progress in the 2024 CDP Climate Change disclosure, with the company scoring A-, an increase from B in 2023. Coty’s FY24 Sustainability Report highlighted key achievements including surpassing 2030 Scope 1 and 2 emissions targets with an 82% reduction since 2019, cutting air freight emissions by 65%, and using 100% renewable electricity in its owned factories and distribution centers.