Sustainability Issue Prioritization
Identifying our most relevant and significant issues
To ensure we are addressing the issues with the most potential to impact our business, society and the environment, we prioritize sustainability issues through a process in which we engage a broad group of internal and external stakeholders for feedback on key environmental, social and governance topics. This includes a detailed assessment every few years, complemented by annual reviews to assess emerging issues and make sure we continue to focus on issues of greatest relevance. We conducted a detailed assessment in 2021 as part of our first sustainability report, and in early 2022, conducted our first annual review.
Desk Research of Frameworks and Standards
In our most recent review, we worked with an independent consultant, GlobeScan, to review our previous sustainability issues prioritization, sustainability strategy documents, key consumer insights and our supplier Sustainability Guidebook. GlobeScan also analyzed the priority issues identified by our peers as well as public reporting organizations and frameworks, such as sustainability ratings agencies, SASB standards, UN SDGs, GRI Standards and issues identified for the apparel industry by peers and others.
Internal and External Validation
We assess sustainability issues through two lenses: their impact on society and the environment, and their impact on our business and success. For our 2022 assessment, a cross-functional group of about 50 internal stakeholders provided direct input, identifying those they view as most critical for us to address in the next five years. All the internal and external data was then scored, standardized and weighted, along with the results of the previous 2021 research, to confirm the priority issues and determine their priority relative to each other. While some issues shifted to a slightly higher priority — such as greenhouse gas emissions and circularity in product design — the assessment confirmed that the most significant issues remain consistent and that overall, LS&Co. is focused on the most important and relevant issues.
Sustainability Issues Matrix
The highest priority issues, shown in the top right three boxes, are in line with the highest priority issues identified by apparel industry peers, NGOs and associations. We know that many of the issues identified in this assessment are interdependent and require a holistic approach. Therefore, while some issues are relatively lower in impact, all remain significant to LS&Co., and we continue managing them through a variety of initiatives. For our priority sustainability issues, we have created time-bound and measurable goals to address the impact on our business and to create transparency around our performance and management approaches.
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Explore into the matrix or select a topic or category
Advocacy and public policy practices
Supporting or advancing public policy practices that align with LS&Co. environmental, social and governance practices and values.
Read more: Using Our Platform
Biodiversity and land use
Addressing impacts on biodiversity and ecosystems through transformation of habitats, land use and other business activities; reliance on biodiversity for raw materials (e.g., bees pollinating cotton flowers).
Read more: Biodiversity
Supplier chemicals management
Managing chemicals used in making materials, products and other substances released to the environment (air and water) that are toxic to humans and ecosystems; robust processes to manage risks and maintain supplier compliance associated with hazardous chemicals.
Read more: Safer Chemicals
Circularity in product design
Designing and innovating products, manufacturing processes and materials selection for quality, durability, repair, reuse and recycling.
Read more: Circular Economy
Climate change risks and adaptation
Building resilience to impacts and risks associated with climate change, including droughts, flooding and inundation and storms; adapting and managing the business to climate change impacts throughout the value chain.
Read more: Climate Action
Community impact
Addressing impacts on local communities from operations and supply chain; programs and practices that assess and manage the impacts on communities; efforts to improve economic well-being and resiliency in local communities; philanthropic efforts and employee volunteering.
Read more: Using Our Platform
Consumer engagement on sustainability and social responsibility
Engaging consumers on sustainability and social responsibility; promoting sustainable actions (clothes washing, reuse, recycling, etc.) through communication, certifications and marketing.
Read more: Circular Economy
Consumer transparency and safety
Making disclosures to customers and users about products and services; materials transparency; responsible marketing and labeling.
Read more: Product Quality and Safety
Data privacy and protection
Safeguarding privacy and personal data of customers, employees and business partners.
Read more: Data Privacy and Security
Employee diversity, equity & inclusion
Providing for fairness of treatment and compensation across all levels of the business; representation of female and underrepresented employees in workforce,
management and board.
Read more: A Look at Our Diversity, Equity & Inclusion
Employee engagement and development
Attracting and retaining talent; offering training and development for employees to build capability and career opportunities; ability for employees to be heard, present, focused and energized.
Read more: Employee Support and Development
Employee health, safety and well-being
Providing for employee health and safety practices in LS&Co. operations; workplace wellness and engagement initiatives; employee benefits.
Read more: Employee Health and Safety
Ethical and transparent business practices
Ensuring ethical and transparent corporate behavior by combating dishonest or fraudulent behavior; responsible tax behavior; oversight and accountability for managing ESG risk; compliance with government sanctions, customs import bans and public disclosure requirements.
Read more: Ethics and Integrity
Forced labor
Identifying operations and suppliers as having significant risk for incidents of forced or compulsory labor; managing and mitigating risks through robust supply chain policies, supply chain mapping, traceability and Code of Conduct compliance.
Read more: Supply Chain
Gender equity in the supply chain
Promoting women’s advancement to management and representation in worker-management committees; ensuring clear contract and payment terms; encouraging a respectful culture with zero tolerance against all kinds of illegal harassment, including gender-based violence.
Read more: Supply Chain
Greenhouse gas emissions
Addressing greenhouse gas emissions in LS&Co. operations and supply chain from material sourcing, manufacturing, transportation, workplaces and other business activities.
Read more: Climate Action
Health, safety and well-being of workers in the supply chain
Promoting worker health, safety and well-being throughout the supply chain.
Read more: Supply Chain
Labor rights in the supply chain
Protecting and monitoring labor rights in the supply chain, including a living wage; freedom of association and collective bargaining; independent grievance channels for workers and worker voice; prevention of union-busting.
Read more: Supply Chain
Materials sourcing
Considering social and environmental impacts associated with materials used; prioritizing options with lower environmental footprint and third-party certifications; ethical sourcing and traceability of materials such as cotton, leather, wool and conflict minerals.
Read more: Sustainable Fibers
Packaging design, recycling and waste
Designing packaging material for increased recovery and recyclability and reduced waste and environmental impact.
Read more: Toward Zero Waste
Product material waste
Managing waste generated throughout LS&Co.’s value chain; activities to reduce, reuse or recycle and responsibly manage/dispose of waste; includes policy engagement on waste, take-back, recycling infrastructure.
Read more: Toward Zero Waste
Public health and natural disaster risks
Promoting solutions and managing disruptions and impacts in the value chain associated with epidemics, communicable and non-communicable diseases and natural disasters.
Read more: Climate
Renewables and energy use
Managing energy consumption and efficiency; using renewable energy sources.
Read more: Climate Action
Social inclusion
Designing and promoting inclusivity through LS&Co. products, services, marketing and public communications to reflect the wide diversity of LS&Co.’s consumer base and LS&Co.’s social values.
Read more: Responsible, Inclusive Marketing
Supply chain management and transparency
Implementing transparent processes and systems to enable visibility into deeper supply chain tiers; ensuring suppliers uphold standards on environmental, social and ethical business practice issues; enabling supplier sustainability with longer-term contracts; considering the impacts of automation in supplier selection.
Read more: Supply Chain
Sustainable workplaces and practices
Addressing impacts on the environment and local communities of LS&Co. employees, buildings and workplace practices.
Read more: Climate Action
Water pollution
Addressing water pollution from LS&Co. operations, products and services and supply chain; impacts of wastewater discharge in supply chain, consumer use and end of life.
Read more: Safer Chemicals
Water use and replenishment
Managing water used and withdrawn throughout LS&Co.’s value chain; specifically monitoring and mitigating impacts and replenishing in water-stressed regions.
Read more: Water Stewardship
