Scotts Miracle-Gro Company (SMG) — ESG & Values Scores

Environment story

Scotts Miracle-Gro's 10-K discloses no quantified Scope 1, 2, or 3 greenhouse-gas emissions data and no formal net-zero target year, triggering the maximum deductions for non-disclosure under both criteria. The filing documents regulatory exposure to PFAS designation under CERCLA, an accrued $3.1 million environmental liability, and ongoing land-use permitting tied to peat harvesting operations that require post-extraction wetland restoration. No capital expenditures for physical decarbonization infrastructure were reported in the last three fiscal years. This is a factual regulatory-risk assessment, not investment guidance.

Criticisms on file

EPA designation of PFOA/PFOS as CERCLA hazardous substances (April 2024) creates potential remediation and compliance liability across facilities using or historically discharging PFAS-related compounds.
Source: SMG 10-K, Item 1 'Regulatory Considerations' section.
$3.1 million accrued for environmental matters as of September 30, 2025, with $0.5 million expensed in fiscal 2025 for environmental compliance matters.
Source: SMG 10-K, Item 1 'Regulatory Matters' section.
Peat harvesting operations require government permits for storm-water/water discharge and mandate post-harvest wetland habitat restoration, indicating ongoing localized habitat/water-resource impact.
Source: SMG 10-K, Item 1 'Regulatory Considerations' section.

Disclosed initiatives

Corporate Responsibility Report (GRI-referenced)

Annual report prepared with reference to GRI Standards (2021), SASB Chemicals industry standard, and TCFD framework; includes California statutory GHG reporting.

Improves disclosure transparency; does not itself constitute emissions reduction.
CDP Climate Change and Water Questionnaire Response

Company responded to CDP's climate change and water questionnaires in fiscal 2025.

Third-party benchmarking mechanism; impact on actual emissions not quantified.

Social story

The 10-K does not disclose a CEO-to-median-worker pay ratio, leadership diversity percentages, or supply-chain human-rights audit findings, so no rubric deductions apply for undisclosed metrics under the rigid scoring rules. The filing describes ERGs, family-leave benefits, profit-sharing, and an EHS safety program, but also discloses recent workforce reductions and reliance on ~1,000 temporary laborers during peak season. This is a descriptive summary of disclosed labor practices, not a recommendation.

Criticisms on file

Company disclosed recent strategic workforce reductions causing risk of unintended attrition, reduced morale, and departure of retained employees to competitors.
Source: SMG 10-K, Item 1A 'Our workforce reductions may cause undesirable consequences...' risk factor.

Disclosed initiatives

Employee Resource Groups (ERGs)

Nine voluntary ERGs including Scotts Black Employees Network, Scotts Women's Network, Scotts GroPride, and Scotts Veterans Network.

Supports inclusion networking; participation levels and outcomes not quantified.
Family and Retirement Benefits

7.5% 401(k) match, 15% discounted stock purchase plan, eight weeks paid maternal leave, up to 10 weeks bonding leave, up to $30,000 lifetime adoption/surrogacy benefit.

Benefit generosity relative to peers not independently verified.
Environmental Health and Safety (EHS) Program

Plan-Do-Check-Act safety framework with scorecards tracking total recordable incident rate and lost-time accident rate.

Specific incident-rate figures not disclosed in filing.

Governance story

The 10-K does not disclose a dual-class share structure, board independence percentage, or lobbying expenditure figures, so no rubric deductions apply under those specific criteria absent verifiable data. The filing does reference unresolved securities litigation and shareholder derivative suits along with multiple recent C-suite transitions (CFO, COO, CHRO, CLO), which the rubric's antitrust/fraud-proceeding criterion treats as a moderate governance risk factor. This is a factual governance disclosure summary, not investment advice.

Criticisms on file

Company discloses ongoing securities litigation and shareholder derivative suits as part of general legal proceedings.
Source: SMG 10-K, Item 1A referencing 'ITEM 3. LEGAL PROCEEDINGS' and 'Risks Related to Our Business' litigation risk factor.
Multiple recent senior management transitions (CFO, COO, CHRO, CLO) disclosed as a succession-risk factor.
Source: SMG 10-K, Item 1A 'Our success depends upon the retention and availability of key personnel...' risk factor.

Disclosed initiatives

ESG Steering Committee with Board Oversight

Board of Directors holds ultimate ESG oversight; Nominating and Governance Committee receives quarterly ESG briefings; management-level ESG Steering Committee includes Climate and Customer Sustainability subcommittees.

Formalizes ESG governance structure; effectiveness not independently verified.
Supplier Code of Conduct

Establishes minimum standards suppliers must meet to conduct business with the company.

Enforcement mechanisms and audit results not disclosed.

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

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