Environmental

Carbon footprint and energy use: Victoria's Secret & Co. operates a global retail and supply chain footprint, but provides limited public disclosure on its greenhouse gas emissions, energy efficiency initiatives, or science-based targets, lagging best-in-class apparel peers in transparency and ambition.

Sustainable sourcing and materials: The company has not articulated a comprehensive sustainable materials policy or third-party certifications for its core product lines, which is increasingly expected in the apparel sector to mitigate environmental and reputational risks.

Waste and circularity initiatives: There is minimal evidence of large-scale waste reduction, recycling, or circularity programs, placing Victoria's Secret behind leading peers who have adopted closed-loop initiatives and public waste reduction targets.

Victoria's Secret & Co. demonstrates moderate environmental performance, with significant gaps in emissions disclosure, sustainable sourcing, and waste management relative to leading apparel retailers. The lack of robust, public-facing environmental targets and programs is a material risk as stakeholder expectations rise.

Social

Workforce diversity and inclusion: The company has made progress in rebranding and promoting diversity and inclusion, particularly in marketing and product representation, but workforce demographic data and pay equity disclosures remain limited compared to best-in-class peers.

Labor practices and supply chain oversight: Victoria's Secret relies on a global, partner-led supply chain model, but provides limited detail on supplier labor standards, audit frequency, or remediation processes, which is a key risk area in apparel.

Community engagement and brand impact: Recent brand revitalization efforts, including the 'Path to Potential' strategy and enhanced store experiences, have improved customer engagement and broadened appeal, supporting social license and market share gains.

Victoria's Secret & Co. is in transition on social factors, with notable improvements in brand inclusivity and customer engagement. However, limited transparency on workforce and supply chain practices constrains its social score relative to sector leaders.

Governance

Board independence and diversity: The company has an independent board structure post-spin-off, but board diversity and refreshment lag some apparel peers, and there is limited disclosure on board-level ESG oversight.

Capital discipline and leverage: Victoria's Secret maintains high financial leverage, with a debt-to-equity ratio of 4.88 and net debt to EBITDA of 5.23, which elevates financial risk and limits flexibility for long-term investment.

Executive compensation and alignment: Stock-based compensation is low relative to revenue (0.45%), suggesting some alignment with shareholder interests, but there is limited disclosure on ESG-linked pay metrics.

Governance practices at Victoria's Secret & Co. are moderate, with an independent board and reasonable executive pay alignment. However, high leverage and limited ESG oversight at the board level are key risks compared to sector best practices.

Overall Score

Victoria's Secret & Co. demonstrates moderate ESG performance, with strengths in brand revitalization and customer engagement but material gaps in environmental transparency, supply chain oversight, and financial leverage. The company is in transition, with improvement potential if it addresses disclosure and risk management in key ESG areas.