Sofidel Nets Top Marks for ESG Risk Management
Household products supplier Sofidel has received top marks from Morningstar Sustainalytics in its ESG Risk Ratings.
Sofidel's rating of 13.6 places it first among 120 companies included on Morningstar’s Household Products Industry list. The rating recognizes the company for its strong commitment to the preservation of biodiversity, anti-corruption strategies, transparency, and efforts to fight climate change and global warming.
With 1,500 employees across the U.S., Sofidel also placed in the “Low Risk” category as of August 2022, that lists companies with a strong ability to manage the environmental, social and governance risks that characterize the three areas of a company’s responsibility.
“Once again, Sustainalytics’ ESG Risk Rating attests to the rigor of our commitment to ESG sustainability and risk management policies,” commented Luigi Lazzareschi, CEO of the Sofidel Group. “These analyses, in addition to traditional financial ratings, represent a benchmark for investors, external observers, and worldwide stakeholders whose choices are increasingly guided by companies’ abilities to develop and implement effective sustainability strategies.”
Sofidel excelled in the material categories ranking of Land Use – Biodiversity and Business Ethics. For risk management related to Land Use – Biodiversity, the company received a score of 97/100, thanks to a strict forestry procurement policy, developed in collaboration with World Wildlife Fund (WWF), whose only goal is zero deforestation.
The company uses pulp that is (100%) certified under forest chain-of-custody schemes and is committed to the active monitoring of high-risk countries and the introduction of control measures on the second and third levels of its supply chain. Additionally, Sofidel is among the first companies in the world to join the “Forests Forward” platform launched by WWF to protect forests and ecosystems.
In the category of Business Ethics, Sofidel achieved a score of 86.9/100 for its continued commitment to promoting models of integrity, anti-corruption and transparency. The company said it has recently established a new internal audit process to ensure that everyone in the company follows the procedures and acts/operates in an ethical way.
The company also received positive feedback on decarbonization. The residual risk assessment for the Carbon – Own Operations category, Sofidel achieved a ‘negligible risk’ rating (1.3 Negligible), which recognizes the company’s decarbonization strategy.