Overview
The commodities impact area evaluates how a brand manages the sourcing of agricultural and mineral raw materials that are critical drivers of global environmental change. Agricultural commodities like palm oil, soy, and cocoa are ubiquitous in consumer products, yet their extraction often leads to deforestation, soil degradation, and habitat loss. Conversely, certain commodities, such as shea, offer pathways for community empowerment and land conservation when sourced responsibly.
This area focuses on the implementation of good practices that go beyond simple "free-from" claims, emphasising transparency, credible certifications, and direct engagement with suppliers to mitigate risks such as biodiversity loss. Most of the commodities selected are those with higher risks of environmental degradation associated with their production. Brands are held responsible for their impact at the primary production stage of the value chain, where the most severe environmental risks (including primary forest conversion) typically occur.
By focusing on verified outcomes and detailed ingredient transparency, the commodities impact area identifies brands that are genuinely transforming their most complex and high-risk supply chains.
Industry verticals: Beauty
Applicable for: small and large brands. Each commodity is assessed only where brands are using that commodity in their products.
What is assessed?
Good On You assesses commodities impact across four aspects of performance.
1. Environmental sourcing policy
A brand's foundational commitment is evaluated through the presence and depth of its sourcing policies. A high-performing brand will publish a comprehensive, company-wide policy that covers all key areas of risk management, including:
Traceability: Clear mechanisms to identify the origin of materials back to the farm or mine
Risk assessment: Processes for identifying environmental and social risks associated with specific regions or suppliers
Active monitoring: Regular verification of supplier compliance with the brand's standards
Progress reporting: Public updates on progress toward sourcing targets
2. Sourcing certifications
Certifications serve as essential third-party verification that commodities meet specific environmental and social standards.
For palm oil, for example, The Roundtable on Sustainable Palm Oil (RSPO) is the primary standard. The method differentiates between sourcing models such as Segregated (highest score), Mass Balance, and Credits/Book and Claim (lowest score).
3. Field-level initiatives and innovation
The methodology rewards brands that go beyond certification to implement direct interventions in the supply chain:
Smallholder support: Investing in programs that help independent smallholders adopt sustainable farming techniques and gain access to markets
Agroforestry: Sourcing from systems that integrate crops with trees and native vegetation to mimic natural ecosystems and enhance biodiversity
Landscape approaches: Participating in jurisdictional initiatives that address sustainability at a regional level rather than focusing only on individual farms
4. Targets
The methodology identifies whether a brand has set targets to:
Increase the level of certifications
Increase field-level initiatives
Increase the traceability of the commodity supply chain
Conditional assessments
Brands are only expected to report on commodities that they actually use in their products. If the brand does not clearly disclose which ingredients it uses in its products, the assumption is that the commodity is used and scored accordingly.
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 commodities impact we reference:
Transparency expectations: Brands are expected to publish their full ingredient list to determine which commodities are used in their products.
Data verification: Analysts cross-reference brand claims with third-party databases like RSPO, and the RSPO Annual Communication of Progress report to verify certifications and the proportion certified.
Relevance for different brands
The methodology adapts to the size and scale of a brand's operations.
Large brands
Large brands are expected to disclose their commodity-specific policies, which should include aspects such as risk assessment, traceability, and governance. In addition, large brands should also disclose targets to reduce the impact of these commodities on the environment.
Small brands
Small brands are not expected to have formal policies and targets. They are expected to focus on action, such as sourcing certified commodities.
Best practice and common pitfalls
Best practice principles
The most advanced large brands participate in landscape-level projects that involve collaboration with governments and NGOs to protect entire forest ecosystems
High-performing brands ensure their commodity policies address ecological risks (deforestation) and actions to minimise those risks
High-performing brands go beyond using mass-balanced schemes and hold certifications that can trace the supply chain to the raw production stage
Common pitfalls and greenwashing
Some brands label themselves as palm-oil free without clearly stating the alternative ingredients used, and if those ingredients are also high-risk, the measures they are taking to reduce risk
Statements such as "we are committed to the journey" or "we only work with ethical suppliers" are not credited unless backed by specific evidence of monitoring, third-party certification, or outcome data (e.g., number of hectares restored)
Brands often fail to update their public disclosures