MillerKnoll, Inc. (MLKN) — ESG & Values Scores

Environment story

MillerKnoll has announced sustainability goals including science-based targets for Scope 1, 2, and 3 emissions reductions, but the 10-K filing provides no quantified baseline emissions data, no disclosed net-zero target year, and no evidence of operational decarbonization investments. The company acknowledges significant costs to implement sustainability goals and recognize evolving regulatory risks but offers no transparency on current emissions levels, renewable energy percentage, or concrete infrastructure investments. Scope 3 supply-chain emissions are undisclosed, creating material greenwashing risk. Lack of specificity on targets and timelines, combined with absence of verified emissions data or physical decarbonization initiatives, results in a substantial penalty.

Criticisms on file

Undisclosed Scope 1, 2, and 3 Emissions Data: No baseline emissions reported in 10-K filing. No renewable energy percentage disclosed. Scope 3 supply-chain emissions unaddressed despite company acknowledging they are material component of footprint.
Source: MLKN 10-K MD&A Risk Factors section on climate change costs and sustainability goal implementation
No Specified Net-Zero Target Year: Company states commitment to sustainability goals but provides no disclosure of target net-zero year, creating compliance and credibility risk.
Source: MLKN 10-K Item 1A Risk Factors: 'We may incur significant increased costs and become subject to additional potential liabilities related to regulatory, market and or legal related measures to address climate change.'
Absence of Physical Decarbonization Infrastructure: Company does not disclose investments in renewable energy procurement, electrification, or other operational carbon-reduction infrastructure. Only lean manufacturing mentioned.
Source: MLKN 10-K MD&A and Risk Factors sections
Global Manufacturing Footprint with Unquantified Carbon Impact: Company operates manufacturing in eight countries (UK, China, India, Italy, Canada, Mexico, Brazil, and multiple U.S. locations) with no disclosed emissions by facility or region.
Source: MLKN 10-K MD&A: 'The Company is globally positioned in terms of manufacturing operations' with facilities enumerated but no environmental impact data.

Disclosed initiatives

Sustainability Goals and Science-Based Targets

Company has established and publicly announced sustainability goals including science-based targets for reduction of Scope 1, 2, and 3 greenhouse gas emissions. Goals were announced in fiscal year 2025.

Stated commitment exists but lacks quantification, baseline data, and timeline specificity. No verification of progress or methodology disclosure.
Lean Manufacturing (MillerKnoll Performance System - MKPS)

Company uses system of lean manufacturing techniques to improve efficiencies and reduce waste in manufacturing operations across global facilities.

Operational efficiency gains may reduce per-unit emissions intensity but impact is unquantified and not explicitly linked to carbon reduction targets.

Social story

MillerKnoll recognizes employee recruitment, development, and retention as critical to success and identifies labor shortage as a material risk. However, the 10-K provides no disclosure of CEO-to-median-worker pay ratio, workforce turnover rate, diversity metrics (gender, race, ethnicity), or union-standing information. Company acknowledges global labor practices risk but offers no evidence of labor-relations audits, supply-chain ethics audits, or human-rights due diligence. Self-insurance for health benefits with aggregate stop-loss coverage suggests limited transparency on workforce welfare. Absence of quantified diversity data, union statements, or pay-equity commitments results in moderate deduction.

Criticisms on file

No Diversity Metrics Disclosed: 10-K filing contains no quantified data on workforce gender diversity, racial/ethnic diversity, or leadership representation by demographics.
Source: MLKN 10-K MD&A and all exhibits; no EEO-1 or diversity disclosure found
CEO Pay Ratio and Turnover Undisclosed: No CEO-to-median-worker pay ratio or workforce turnover rate provided. Limits assessment of pay equity and workforce stability.
Source: MLKN 10-K filing; CEO compensation not disclosed in this document extract
Global Labor Practices Risk Without Remediation: Company acknowledges that 'doing business internationally exposes us to certain risks...labor and employment practices' but provides no evidence of labor-relations audits or union-standing statements.
Source: MLKN 10-K Item 1A Risk Factors: 'Our business presence outside the United States exposes us to certain risks...'
Supply-Chain Human-Rights Due Diligence Absent: No disclosure of supply-chain audits, conflict-minerals policy, forced-labor screening, or modern-slavery statement in 10-K.
Source: MLKN 10-K filing; human-rights disclosure not found
Manufacturing Operations in High-Risk Geographies: Company operates facilities in China, India, and Brazil with no documented labor-rights audits or human-rights certifications mentioned.
Source: MLKN 10-K MD&A: 'In North America...Europe...manufacturing operations globally also include facilities located in Brazil, China, and India.'

Disclosed initiatives

Employee Recruitment, Development, and Retention

Company identifies recruitment, development and retention of qualified and talented individuals as key success factor. States commitment to identifying, hiring, developing, motivating and retaining best employees.

No quantified diversity, turnover, or wage data disclosed. Commitment stated but not substantiated with metrics or third-party verification.
Global Supply Chain and Manufacturing Operations

Company operates manufacturing and supply chain across eight countries with order-driven, lean-manufacturing-based production model. Strategic sourcing of component parts from external suppliers to balance cost and proprietary control.

No supply-chain labor audits, human-rights assessments, or conflict-minerals policies disclosed in 10-K filing.
Health Benefits Self-Insurance

Company is self-insured for health benefits and maintains per-employee stop-loss coverage with aggregate level retention.

Self-insurance model increases financial risk to company but does not directly disclose employee health outcomes or wellness program details.

Governance story

MillerKnoll operates under a single share-class structure (no dual-class penalty). Board independence percentage is undisclosed in the 10-K filing, preventing direct assessment against the 75% threshold. Company acknowledges material debt obligations ($1.31 billion as of May 31, 2025) and associated covenants that restrict operational flexibility, including affirmative and negative covenants on liens, indebtedness, asset sales, dividends, and share repurchases. Company discloses 4% U.S. federal government sales and acknowledges budgetary risks. No specific lobbying expenditure or political contribution data disclosed in 10-K. No active antitrust proceedings, SEC consent decrees, or shareholder litigation noted. Lack of board-independence disclosure and absence of explicit lobbying/political-stance data result in moderate deductions; absence of documented governance controversies provides stability.

Criticisms on file

Board Independence Not Disclosed: 10-K filing does not provide board independence percentage, preventing verification against 75% governance benchmark.
Source: MLKN 10-K filing; board composition data not found in MD&A or Risk Factors
Material Debt Burden and Covenant Restrictions: $1.31 billion in long-term debt incurred via July 2021 Knoll acquisition has substantially increased leverage and created affirmative/negative covenants that restrict flexibility on liens, indebtedness, asset sales, dividends, and equity repurchases.
Source: MLKN 10-K Item 1A Risk Factors: 'In connection with the July 2021 acquisition of Knoll, we incurred significant additional indebtedness...The indebtedness incurred in connection with the acquisition of Knoll contains various covenants...'
No Lobbying Expenditure Disclosure: 10-K does not disclose annual lobbying spend or political contributions, preventing assessment of lobbying alignment with climate or consumer-protection policy.
Source: MLKN 10-K filing; lobbying and PAC contribution data not disclosed
Federal Government Budget Risk: Sales to U.S. federal government represent 4% of total sales. Company acknowledges material adverse impact risk from 'Department of Government Efficiency' budgetary reforms announced January 20, 2025, creating dependence on discretionary federal spending.
Source: MLKN 10-K Item 1A Risk Factors: 'Sales to the U.S. federal government represented approximately 4% of total Company net sales in fiscal year 2025. On January 20, 2025, President Trump signed an executive order creating...the Department of Government Efficiency...'
Cybersecurity and Data Privacy Risk: Company acknowledges heightened risk of IT breaches, malware, and cyber-attacks related to Russia-Ukraine conflict and processing of customer credit-card and personal data via eCommerce and retail channels. No third-party security audit or certification disclosed.
Source: MLKN 10-K Item 1A Risk Factors: 'We are subject to risks and costs associated with protecting the integrity and security of our systems and confidential information...Due to the political uncertainty and military actions involving Russia, Ukraine, and surrounding regions...'

Disclosed initiatives

Debt Covenant Compliance Framework

Company maintains comprehensive financial maintenance covenants including leverage ratio limits and restrictions on liens, indebtedness, asset sales, and dividends to ensure creditor protections and financial discipline.

Covenant structure imposes operational constraints but demonstrates institutional financial controls. Compliance failure risk if business conditions deteriorate.
Multi-Channel Distribution and Dealer Network Governance

Company manages independent dealership network through standard trade credit terms (30-45 days) and selective financial support mechanisms including term loans and guarantees to viable dealers.

Dealer governance reduces direct control but enables market reach. Financial support decisions increase executive discretion and require oversight.

These are Missionomics' own editorial scores — directional signals built from disclosed facts under a published method, not certifications or definitive ratings of MillerKnoll, 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 MillerKnoll, Inc. in the app for interactive charts and portfolio building.

More in Consumer Cyclical

SharkNinja, Inc. (SN) Burlington Stores, Inc. (BURL) DICK'S Sporting Goods, Inc. (DKS) Hyatt Hotels Corporation (H) Somnigroup International Inc (SGI) Toll Brothers, Inc. (TOL)