Coty advances ESG credentials with upgraded ratings from MSCI and Sustainalytics

THE WHAT? Coty has received improved ESG scores from two leading ratings agencies—MSCI and Sustainalytics—reflecting stronger performance in environmental, social, and corporate governance areas relevant to its beauty business

THE DETAILS  MSCI upgraded Coty’s ESG Rating from BB to A, citing improvements in packaging waste, raw material sourcing, chemical safety, and governance. The company also maintained the highest rating for its carbon footprint.

Sustainalytics reclassified Coty as a low ESG risk company, with a new score of 18.1 (down from 23.9), ranking it third among 104 household product companies. Areas of advancement included human capital, biodiversity, water use, and product governance.

The ratings follow Coty’s A- score in the 2024 CDP Climate Change disclosure and results shared in its FY24 Sustainability Report, including an 82% cut in Scope 1 and 2 emissions, a 65% drop in air freight emissions, and 100% renewable electricity use in company-owned factories and distribution centers.

THE WHY? These ESG upgrades highlight Coty’s growing leadership in sustainable practices within the global cosmetics and personal care industry. As environmental performance and corporate transparency gain importance among stakeholders, Coty’s improvements help strengthen its position as a responsible beauty manufacturer across categories like fragrance, skin care, and color cosmetics.

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