About this question

By carrying out a comprehensive, systematic business-wide risk assessment, companies can identify and prioritize the most significant environmental risks they face and take appropriate measures to prevent, mitigate, and manage those risks. This process should evaluate the company’s operations, products, services, and supply chains, considering both upstream and downstream impacts. The assessment should include both physical risks (e.g., resource scarcity, ecosystem degradation) and transition risks (e.g., regulatory, market, reputational). Materiality should guide the prioritization of risks, based on their likelihood, severity, and irreversibility.

Stakeholder input, especially from those potentially affected, is crucial in ensuring the assessment is inclusive. Additionally, companies should use the assessment not only to mitigate risks but also to identify potential opportunities for positive environmental impacts. The assessment’s outcomes should be integrated into the company’s overall risk management strategy, informing decision-making and policy development. The ultimate output should be a prioritized list of the most salient environmental risks, accompanied by actionable recommendations.

• 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 had an environmental rights risk assessment.

Answer options: Climate, Water, Waste, Biodiversity, Chemicals

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).

Some examples of granular following 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, understanding the types of climate-related risks (physical and/or transition risks) that are material to your business.

• •  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. This analysis may include examining the company’s operations within the value chain (including its own operations) that are located in or near biodiversity-sensitive areas. It involves assessing whether activities in these locations negatively affect these areas and determining the need for biodiversity mitigation measures. This assessment should also address impacts related to land degradation, desertification, soil sealing, and threats to endangered species.

• 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 meeting papers)
• Records of stakeholder engagement activities (e.g., meetings, workshops)
• Records of programs or strategies taken to mitigate negative impacts, together with monitoring and evaluation reports of their effectiveness.

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

Answer options: Climate, Water, Waste, Biodiversity, Chemicals.

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)

CSRD: below are some examples of expectations of what policies should cover:

Climate: A climate policy should address specific areas such as:

• Climate change mitigation (e.g., reducing greenhouse gas emissions across operations and the value chain).

• Climate change adaptation (e.g., managing physical climate risks like extreme weather events).

• Energy efficiency (e.g., improving energy use in manufacturing facilities and retail stores).

• Renewable energy deployment (e.g., sourcing renewable energy for operations).

Consider including commitments to manage GHG emissions, support renewable energy, enhance energy efficiency, and adapt to climate-related risks in both own operations and the value chain.

Chemicals: A chemicals policy should cover:

• Mitigating negative impacts related to pollution, including prevention and control measures.

• Substituting and minimizing the use of substances of concern, and phasing out substances of very high concern, particularly in consumer products.

• Avoiding incidents and emergency situations related to chemical use, and controlling and limiting their impact if they occur.

Include information on specific pollutants or substances covered, strategies for reducing hazardous chemicals in products and processes, and measures to prevent accidental releases.

Water: A water policy may encompass:

• Water management practices, including the use and sourcing of water in own operations and along the value chain.

• Measures to prevent and reduce water consumption, especially in water-stressed areas.

• Efforts to prevent and reduce water pollution resulting from activities.

• Commitments to sustainable water practices in product design and manufacturing.

If operating in areas of high-water stress, address how the policy mitigates risks related to water scarcity and quality.

Biodiversity: A biodiversity policy may include:

• Identification, management, and mitigation of material impacts on biodiversity and ecosystems.

• Traceability of products and materials across the value chain, particularly in areas sensitive to biodiversity loss.

• Approaches to limiting procurement from suppliers that cannot demonstrate they are not contributing to significant damage to protected areas or key biodiversity areas.

• Sourcing raw materials from ecosystems managed to maintain or enhance biodiversity, with regular monitoring and reporting.

• Commitments to avoid negative impacts, minimize unavoidable ones, restore degraded ecosystems, and mitigate contributions to biodiversity loss drivers (e.g., deforestation, pollution).

• Inclusion of sustainable land use, agriculture practices, and deforestation prevention strategies.

Consideration of social consequences, such as fair and equitable sharing of benefits arising from the use of genetic resources, and respecting the rights of local and indigenous communities.

Waste: A waste policy might address:

• Transitioning away from the use of virgin resources by increasing the use of recycled or secondary materials.

• Sustainable sourcing and use of renewable resources.

• Application of the waste hierarchy, prioritizing prevention, re-use, repair, refurbishment, remanufacturing, and repurposing over recycling and disposal.

• Commitments to circular economy principles, such as eco-design and waste as a resource.

• Strategies to reduce waste generation in operations and across the product lifecycle, including end-of-life product management.

Answer options: Climate, Water, Waste, Biodiversity, Chemicals.

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

About this question 

Engaging meaningfully with stakeholders is an important part of the environmental risk assessment process. This question aims to measure the extent to which your company has engaged with its stakeholders during the identification and prioritization of environmental impacts and risks. To accurately assess environmental impacts and risks, companies should understand the concerns of potentially affected stakeholders by consulting them directly or, where that is not possible, by consulting credible and independent experts. During the engagement process, companies should be mindful of potential language and cultural differences.

• Answer yes if your company has involved a wide variety of stakeholder groups, including those across the value chain, in the delivery of its environmental risk assessment.
• Answer partial yes if your company has involved more than one stakeholder group (e.g., employees, suppliers, local communities) in the delivery of its environmental risk assessment.

• Answer no if your company has only involved one internal stakeholder group in its environmental risk assessment or if you have not conducted an environmental risk assessment.

Applicability: Brand, Retailer, Brand and Retailer

Reference ID: eg_MTb

Evidence

Either:

• Partnership Agreements or Contracts with external parties (e.g., NGOs, environmental consultants, community groups) engaged to carry out stakeholder engagement activities related to environmental risk assessment.

or:

• Links or screenshots of surveys, questionnaires, public consultation platforms, or grievance mechanisms used to gather stakeholder input.
• Internal Documents describing the process and outcomes of stakeholder consultations, verified by a senior leader (e.g., sustainability director, risk manager).

Optional Supplementary Evidence:

• Meeting minutes, attendance lists, agendas, or presentations from stakeholder engagement sessions.
• Summaries or reports compiling feedback received from stakeholders.
• Emails, newsletters, or reports sent to stakeholders regarding environmental risk assessment activities.
• Company policies outlining the approach to stakeholder engagement in environmental matters.

Note: unscored optional question

About this question 

A robust materiality assessment methodology is essential for determining which impacts, risks, and opportunities are significant enough to disclose in sustainability reporting. The materiality process ensures that stakeholders receive relevant and meaningful information about how a company addresses sustainability issues. This question asks whether your company has a formal and documented process in place to assess which impacts, risks, and opportunities are considered material for sustainability reporting.

• Answer yes if your company has a defined, documented methodology to assess material sustainability issues
• Answer no if your company does not have a formal materiality assessment process or lacks documented evidence of the methodology

Applicability: Brand, Retailer, Brand and Retailer

Reference ID: eg_MTc

Evidence

Either:

• Published materials (e.g., sustainability reports, materiality matrices) that outline the methodology used for assessing material impacts, risks, and opportunities, including criteria or thresholds for materiality determination.

or:

• Internal documents demonstrating the process of identifying material sustainability issues, the criteria used, and outcomes of the assessment, verified by a senior leader or sustainability committee.

Optional Supplementary evidence

• Screenshots or documents showcasing how stakeholder input was integrated into the materiality assessment process (e.g., surveys, engagement meetings, feedback mechanisms).
• External assurance reports or audits verifying the robustness of the materiality assessment methodology and its alignment with recognized frameworks such as ESRS.

Note: unscored question

About this question 

This question aims to determine whether your company actively monitors and assesses the effectiveness of its sustainability policies and actions, even without formal targets. It focuses on the existence of processes to evaluate performance and make improvements based on findings.

• Answer yes if your company has established methods or systems to track and evaluate the effectiveness of sustainability policies and actions, including regular reviews, audits, performance assessments, or stakeholder feedback mechanisms.

• Answer partially yes if your company has established some process to track and evaluate the effectiveness of sustainability policies and actions, but they need to be more comprehensive and fully implemented.
• Answer no if your company has not established any tracking system

Applicability: Brand, Retailer, Brand and Retailer

Reference ID: eg_MTd

Evidence

Provide:

• Descriptions of monitoring and evaluation processes.

and

• Examples of reports or analyses produced from these processes, records of findings and recommendations.

and

• Evidence of feedback mechanisms, such as surveys or meetings, used to evaluate policy effectiveness.

Note: unscored question