Macy's, Inc. (M) — ESG & Values Scores

Environment story

Macy's environmental performance is significantly constrained by undisclosed Scope 1, 2, and 3 emissions, absent net-zero targets, and limited verified decarbonization infrastructure. The company acknowledges climate change risks including acute and chronic physical risks to facilities, regulatory compliance costs under SEC and California climate rules, and reputational pressure. However, no quantitative emissions baselines, reduction pathways, or operational decarbonization investments are disclosed in the 10-K. The company references third-party certifications (OEKO-TEX, USCTP) and 'curated sitelets' for environmental products but provides no measurable impact. Supply chain climate vulnerability is noted but unquantified. Compliance with emerging climate disclosure rules (SB-253, SB-261) is expected to increase costs rather than drive emissions reductions.

Criticisms on file

No disclosed Scope 1, 2, or 3 emissions baseline or net-zero commitment
Source: M_10k.txt - Risk Factors; Climate Change-Related Risks section
Regulatory compliance burden expected to increase costs rather than drive operational decarbonization
Source: M_10k.txt - Climate Change-Related Risks; Regulatory Risks subsection
Acute and chronic physical climate risks to stores and distribution infrastructure acknowledged but no quantified mitigation plan disclosed
Source: M_10k.txt - Acute Physical Risk and Chronic Physical Risk subsections

Disclosed initiatives

OEKO-TEX® and USCTP Certified Products

Macy's and Bloomingdale's leverage third-party certifications for environmentally-friendly materials and traceability in cotton sourcing.
Curated Environmental Sitelets

Online sitelets designed to position Macy's as a responsible retailer committed to climate and environmental topics.
Supply Chain Environmental Risk Monitoring

Company acknowledges climate change impacts on private brand supply chain and commits to monitoring weather-related supply disruptions.

Social story

Macy's social performance reflects persistent labor market pressures, high employee turnover, and unresolved union dynamics, offset somewhat by diversity initiatives. The company explicitly identifies 'historically high rates of turnover' in entry-level and part-time positions, driven by tight labor markets and wage competition. CEO-to-worker pay ratio is undisclosed. Leadership diversity metrics are not quantified in the 10-K. The company acknowledges labor cost increases from minimum wage legislation and benefit inflation. No documented union-suppression activities or major strikes within 24 months are disclosed, but supply-chain labor-rights compliance relies on third-party vendor monitoring with acknowledged limitations ('there can be no assurance that our vendors...will not violate such laws and regulations'). Forced-labor and conflict-minerals risks are identified but not addressed with explicit policies.

Criticisms on file

High turnover in entry-level and part-time positions; historically documented issue
Source: M_10k.txt - Risk Factors; 'We depend on our ability to attract, train, develop and retain quality colleagues' section
Limited assurance over supply-chain labor-rights compliance; vendors may violate labor laws or company policies with reputational consequences
Source: M_10k.txt - Supply Chain and Third-Party Risks section
No disclosed CEO-to-worker pay ratio or leadership diversity metrics
Source: M_10k.txt - absence of quantitative social metrics in filing

Disclosed initiatives

Talent Attraction and Retention Programs

Company invests in competitive wages and benefits to attract and retain skilled personnel amid tight labor market.

Ongoing; success not quantified
Third-Party Supply-Chain Labor Monitoring

Vendors screened, trained and monitored to confirm safe and ethical treatment of workers; policies address human rights, working conditions, and labor rights.

Compliance assurance limited; reputational risk acknowledged
Employee Health Benefits and Training

Company provides health insurance, training programs, and employee development to support workforce at all organizational levels.

Acknowledged as costly; no quantified outcome metrics

Governance story

Macy's governance structure exhibits moderate independence and standard regulatory compliance, but lacks transparency on board composition percentages and faces material debt-covenant and leverage risks. No dual-class voting structure is disclosed. Board independence percentage is not explicitly stated; company acknowledges board includes members expressing stakeholder concerns on climate and ESG. No evidence of active climate-deregulation lobbying is disclosed; however, the company is subject to SEC climate disclosure rules (voluntarily stayed pending judicial review) and California climate laws, indicating regulatory engagement. Material financial risks include $2,432 million in outstanding indebtedness as of Jan 31, 2026, debt-covenant compliance requirements, and potential covenant breaches if results deteriorate. The company faces ongoing antitrust and consumer-protection regulatory scrutiny typical of large retailers (credit card operations, data privacy, consumer protection violations). No recent major regulatory proceedings or fines are disclosed in the 10-K Risk Factors.

Criticisms on file

Material indebtedness ($2,432 million as of Jan 31, 2026) limits financial flexibility and increases vulnerability to economic downturns and covenant breaches
Source: M_10k.txt - Financial Risks; Inability to access capital markets and Level of indebtedness sections
Board independence percentage not disclosed; unable to verify compliance with >75% threshold
Source: M_10k.txt - absence of specific board composition metrics in filing
Lobbying expenditures and political contributions not disclosed; unable to assess alignment with climate regulation or consumer protection
Source: M_10k.txt - absence of political/lobbying disclosures in Risk Factors

Disclosed initiatives

Board Oversight of ESG and Climate Risks

Board members and internal stakeholders monitor climate-related reputational and regulatory risks; company acknowledges stakeholder pressure on environmental and governance matters.

Governance structure in place; effectiveness not quantified
Compliance with Evolving Data Privacy and Consumer-Protection Laws

Company subject to FTC, state attorney general, and SEC oversight; policies updated to address California, Colorado, Connecticut, and other state privacy laws.

Compliance costs increasing; specific impacts not quantified
Debt Covenant Management and Capital-Access Strategies

Company maintains asset-based credit facility with fixed charge coverage ratio requirements; active monitoring of debt capacity and refinancing options.

Risk mitigation ongoing; vulnerability to economic downturns remains

These are Missionomics' own editorial scores — directional signals built from disclosed facts under a published method, not certifications or definitive ratings of Macy's, Inc.. Coverage and confidence vary by data point, and figures can lag real-world changes. Read the full Methodology for sourcing, scoring, and correction details — or open Macy's, Inc. in the app for interactive charts and portfolio building.

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