Overview
Climate change within the Good On You methodology assesses how a brand understands, measures, and reduces its greenhouse gas (GHG) emissions across its value chain.
Greenhouse gas emissions are a primary driver of climate change, contributing to risks including rising sea levels, ecosystem disruption, and impacts on human livelihoods.
For most brands, particularly in fashion and related industries, the majority of emissions occur outside their direct operations and within supply chains such as material production and manufacturing. Emissions can also occur in the consumer-use phase and the end-of-life treatment of products.
The methodology evaluates whether brands are taking a structured and credible approach to climate change by assessing:
Measurement of emissions
Target setting
Actions to reduce emissions
This reflects a core principle: effective climate action progresses from measurement to accountability to reduction.
Industry verticals: Fashion, Beauty, Services, Retailer
Applicable for: small and large brands
What is assessed?
The methodology assesses three core components of climate performance:
1. Measurement of emissions
Brands are assessed on whether they measure their greenhouse gas emissions, particularly across:
Scope 1: Direct emissions from owned or controlled operations
Scope 2: Emissions from purchased energy
Scope 3: Emissions across the value chain not owned by the company
Scope 3 is especially important, as it typically represents the majority of a brand’s impact. Brands are expected to disclose whether they use primary data in their Scope 3 emissions calculations, and whether all mandated greenhouse gases as prescribed by the GHG Protocol are included in their inventory.
2. Emissions reduction targets
The methodology assesses whether brands set targets to reduce emissions, and the strength of those targets.
Stronger targets include:
Science-based targets (preferred)
Absolute reduction targets that cover Scope 3 emissions
Weaker targets include:
Intensity targets (eg emissions per unit), which may allow total emissions to increase with business growth
Absolute reduction targets that do not cover Scope 3 emissions
Brands are also assessed on whether they:
Disclose progress toward meeting their GHG emissions reduction targets
3. Actions to reduce emissions
Brands are assessed on actions they take to reduce emissions, including:
Transitioning to renewable energy, both in its direct operations and supply chain
Reducing emissions from transportation and distribution
Consumer behavioural change
Funding large green projects such as wind farms
Improving energy efficiency in its manufacturing
Agricultural practices that reduce emissions
Not all emissions reduction activities are given equal points. Emissions reduction activities that target hot spots in the supply chain are weighted more. Offsets are included in the methodology, but they are not considered to be best practice and are not weighted heavily.
Assessments in industry verticals
Climate change is assessed across the verticals: Fashion, Beauty, General Services, Retailers.
The core methodology is consistent, but there are differences in where emissions occur and how brands can influence them.
Product-based brands (e.g. Fashion, Beauty)
Emissions are primarily driven by the value chain, particularly the supply chain
Focus is on upstream production, as well as consumer use and end-of-life impacts where relevant
Material choices, ingredient selection, and product design play a significant role in emissions outcomes
General Services
A greater proportion of emissions typically sit within direct operations
More emphasis on how operational emissions are measured, managed, and reduced
Key areas include energy use, facilities, and service delivery
Multi-brand Retailers
Typically have less direct control over product manufacturing
Greater reliance on brand selection, engagement, and purchasing decisions to influence emissions
Operational emissions (eg stores, logistics) are also an important component
Conditional assessments
Large brands that have been asked to respond to CDP will receive a different question set.
They will not be asked the questions on measurement and greenhouse gas emissions reduction activities, as that is already covered sufficiently in their CDP response
They will still be asked to respond to the climate change target question
For these brands, their Good On You climate score is a combination of CDP and GOY methodology.
Other practices that contribute to the climate change score
Some practices are scored within the climate change section but originate from other parts of the methodology. These reflect actions that contribute to emissions reduction even if they are not explicitly framed as climate initiatives.
These may include:
Use of lower-impact materials/ingredients, such as organic materials
Certifications that cover a range of sustainability initiatives
These practices reduce emissions indirectly by lowering resource use and minimising lifecycle impacts.
Disclosure and data sources
Good On You primarily relies on a brand’s public website and formal sustainability, CSR, or ESG reports. In addition, for climate change:
CDP disclosure: Brands that are asked to respond to CDP are verified against CDP's latest disclosure scores.
Data verification: Analysts cross-reference a brand’s claims stating it has a science-based target against the SBTi database.
Relevance for different brands
The assessment criteria for climate change vary depending on a brand’s size.
Small brands
The assessment focuses more on the presence of initiatives, rather than exhaustive reporting data. Small brands are expected to initiate greenhouse gas emissions reduction activities. They are not expected to set targets and measure their emissions.
This reflects the principle that while small brands may lack resources for measurement, they can still take meaningful action.
Large brands
Larger brands are expected to have a full GHG emissions inventory, including Scope 3 emissions calculated with at least some primary data. They are also assessed on whether they have an ambitious climate change target, and are disclosing progress against it.
Best practice and common pitfalls
Best practice
Best practice generally reflects integration of climate considerations into core business strategy rather than standalone initiatives.
Measure emissions across scopes 1, 2 and 3
Set science-aligned targets
Demonstrate progress against their target
Prioritise emissions reductions over offsetting
Integrate climate considerations into procurement and product design
Engage suppliers in emissions reduction
Prioritising lower-impact alternatives to the materials or ingredients used in the products brands sell
Prioritise suppliers with existing emissions reduction initiatives, such as solar panels or local manufacturing
Common pitfalls
Focusing only on scopes 1 and 2: These often represent a small share of total emissions
Weak or misleading targets: Intensity targets or targets without a clear scope can overstate progress
Renewable energy in only direct operations: Brands might source renewables for their direct operations but not their supply chain
Isolated initiatives (eg energy-efficient lighting) without a broader strategy
Over-reliance on carbon offsets: Offsets should only be considered after meaningful emissions reductions