Environmental

Carbon footprint management: ODP has implemented energy efficiency initiatives and set reduction targets for greenhouse gas emissions, but its overall carbon footprint remains significant due to its large retail and logistics operations compared to peers.

Sustainable sourcing: The company has made progress in sourcing FSC-certified and recycled paper products, yet a substantial portion of its product mix still relies on conventional supply chains, limiting its sustainability impact.

Waste reduction and recycling: ODP operates recycling programs for office products and packaging, but participation rates and total waste diversion lag behind industry leaders.

ODP demonstrates moderate progress on environmental initiatives, with clear targets and some sustainable sourcing, but its large operational footprint and lagging waste diversion constrain its performance relative to best-in-class peers.

Social

Workforce management and safety: ODP maintains standard workplace safety protocols and offers basic employee benefits, but has not disclosed advanced programs or industry-leading safety metrics.

Diversity, equity, and inclusion (DEI): The company reports on workforce diversity and has set some DEI goals, but representation in management and board roles remains below sector averages.

Community engagement: ODP supports education and local community initiatives, yet its social investment as a percentage of revenue is modest compared to leading retailers.

ODP’s social performance is stable, with basic workforce and community programs in place, but it lacks the depth and scale of social impact seen in top-tier peers.

Governance

Board independence and diversity: ODP’s board is majority independent and includes some diverse members, but overall diversity and tenure mix are not industry-leading.

Executive compensation alignment: Executive pay is moderately aligned with performance, with stock-based compensation at 0.37% of revenue, which is reasonable for the sector.

Risk oversight and compliance: The company maintains standard compliance and risk oversight structures, but recent strategic shifts and restructuring increase governance complexity.

ODP’s governance is generally sound, with independent oversight and reasonable pay practices, but board diversity and the complexity of ongoing restructuring present moderate risks.

Overall Score

ODP’s ESG profile is moderate across all pillars. The company shows commitment to environmental and social initiatives and maintains adequate governance, but it trails best-in-class peers in execution and transparency. Ongoing operational complexity and limited leadership in sustainability and DEI constrain its overall ESG standing.