Environmental

Carbon footprint and energy use: Kohl's operates a large national retail footprint, resulting in significant energy consumption and associated emissions. The company has made some progress on energy efficiency and renewable sourcing, but disclosures on absolute emissions reductions and science-based targets remain limited compared to leading peers.

Sustainable sourcing and product stewardship: Kohl's has implemented some sustainable sourcing initiatives, such as offering select eco-friendly products and working with suppliers on responsible sourcing. However, the scale and impact of these programs are less comprehensive than those of best-in-class retailers.

Waste management and recycling: The company reports efforts to reduce waste through recycling programs and packaging initiatives, but lacks detailed quantitative targets or third-party verification, which limits transparency and comparability.

Kohl's demonstrates moderate progress on environmental issues, with some initiatives in energy efficiency and sustainable sourcing. However, the absence of robust targets and limited transparency on emissions and waste reduction place it behind sector leaders.

Social

Workforce management and restructuring: Kohl's executed workforce reductions and store closures in 2025 to improve operational efficiency, which may enhance margins but also raises concerns about employee morale and job security.

Diversity, equity, and inclusion (DEI): The company has publicized DEI commitments and some progress in workforce diversity, but disclosures and outcomes lag behind top retail peers, and there is limited evidence of measurable impact.

Community engagement and stakeholder relations: Kohl's maintains community investment programs and charitable giving, but the scale and strategic integration of these efforts are less developed than those of leading competitors.

Kohl's social performance is moderate, reflecting a balance between cost-cutting measures and ongoing community and DEI initiatives. The company faces challenges in workforce stability and lags sector leaders in transparency and impact.

Governance

Leadership stability and executive conduct: A recent scandal involving the former CEO and subsequent leadership changes have raised concerns about executive oversight and stability at the top.

Board independence and oversight: Kohl's board is majority independent, but recent events suggest potential weaknesses in risk oversight and succession planning compared to best-in-class governance frameworks.

Shareholder rights and capital allocation: The company cut its dividend in 2025 and has a high debt load (debt-to-equity ratio above 1.7), which may constrain future capital allocation flexibility and raises questions about long-term shareholder alignment.

Governance at Kohl's is moderate but faces material risks from recent executive turnover, board oversight challenges, and capital allocation constraints. Improvements in transparency and risk management are needed to restore investor confidence.

Overall Score

Kohl's ESG profile is moderate, with some progress on environmental and social initiatives but notable governance challenges and limited transparency. The company trails sector leaders on key ESG drivers, particularly in emissions disclosure, workforce stability, and board oversight. While operational improvements are underway, material risks remain, especially in governance and capital structure.