Within each vertical, Good On You operates separate methodologies for large brands and small-to-medium-sized enterprises (SMEs).
A brand is classified as large or small based on its annual turnover or that of its parent company using the definition set out by the European Commission. Size classification is determined at intake and documented in the rating record. The methodology applied to each brand is consistent with its size classification.
Why Good On You applies methodology variations to small and large brands
The size classifications help determine the issues that each brand is expected to address. Many issues are the same for the large and small brand methodologies, but the issues will be weighted proportionally.
The methodology variation reflects:
Different consumer, business and regulatory expectations; capacity for, and appropriateness of certain practices related to sustainability. Ie large brands are assessed on practices that are not relevant or not reasonably achievable for small brands.
Different consumer, business and regulatory expectations and capacity for disclosure. Ie large brands have a higher expectation and capacity for more forensic reporting related to their sustainability impact.
Different assessment of the relative sustainability impact of brands due to the size of their operations. Ie large brands have a greater relative potential sustainability impact and therefore responsibility, just because their operations are greater at all levels.
Small brands methodology
The standards for Good On You’s small brand methodology remain rigorous. But the assessment is also relative to these brands’ overall impacts and what is considered best practice for brands that have access to fewer resources and have less influence on the supply chain.
The methodology is also designed to reflect the different types of small brands that exist, with pathways for each type to achieve high scores on a range of issues. While small brands of different types will still be asked to answer a wide range of questions on key issues, brands don’t need to do everything to achieve a high score on many of these issues, as the methodology takes into account the nuances of different types of brands and the limitations many small brands face.
Large brands methodology
Large brands have more influence, resources, and control over their supply chain. This is reflected in Good On You’s methodology for large brands, which expects them to address a wider range of sustainability issues—including deforestation, biodiversity, and climate change targets—and to respond to more data points within some issues.
Good On You also expects large brands to have proportionately more comprehensive public disclosure, reflecting the greater number of data points factored into a large brand’s rating.