V.F. Corporation (VFC) — ESG & Values Scores

Environment story

VFC's environmental score reflects significant concerns regarding Scope 3 emissions disclosure and greenwashing risks. While the company acknowledges climate risks and has announced sustainability targets, there is no explicit net-zero commitment with a credible target year disclosed in the 10-K. Supply chain carbon (Scope 3) from apparel and footwear manufacturing—representing the majority of VFC's footprint—is undisclosed and rising with global expansion. The company emphasizes supply chain partnerships and compliance audits but does not report quantified Scope 1, 2, or 3 emissions reductions or renewable electricity percentages. VFC faces water-intensive manufacturing (textiles, leather) in emerging markets without transparent mitigation strategies. No evidence of major recent fines or toxic-waste lawsuits is documented; however, the 10-K extensively discusses climate risk to supply chain and retail operations without demonstrating operational decarbonization investments beyond compliance frameworks. Environmental scoring is capped at 55 due to absence of Scope 3 disclosure (-15), unspecified net-zero year target (-15), and lack of verified physical decarbonization infrastructure (+0).

Criticisms on file

Supply-chain labor and environmental practices in outsourced manufacturing: 10-K acknowledges risk that suppliers may fail to comply with labor laws, engage in unfavorable labor practices, or cause environmental pollution.
Source: VFC 10-K, Risk Factors section: 'actions by a third-party supplier or manufacturer that fail to comply could result in such third-party supplier failing to manufacture products that consistently meet our quality standards, violating human rights, engaging in unfavorable labor practices, causing environmental impacts such as pollution.'
Water and resource consumption risk in apparel and footwear manufacturing: 10-K identifies 'water supply quality and availability' as commodity/supply-chain risk factor affecting product costs, but no quantified water use or mitigation targets disclosed.
Source: VFC 10-K, Risk Factors: Fluctuations in 'water supply quality and availability' as commodity cost driver.

Disclosed initiatives

Global Compliance Principles & Supplier Audits

VFC audits third-party suppliers and contracted manufacturing facilities against compliance standards for labor, environmental, and safety practices. Licensees required to adhere to Global Compliance Principles.

Mitigates supply-chain reputational risk; does not quantify emissions reductions.
Supply Chain Diversification

VFC maintains geographically diverse sourcing (85% of U.S. products from Southeast Asia, Central/South America; <2% from China) to minimize sourcing concentration and climate-related disruption risk.

Risk mitigation; no direct carbon reduction.
Climate Risk Disclosure in 10-K

10-K extensively discusses physical and transitional climate risks (extreme weather, supply-chain disruption, tariffs, regulatory compliance, investor expectations). No quantified emissions baselines or reduction roadmaps.

Demonstrates climate risk awareness; lacks operational decarbonization transparency.

Social story

VFC's social score of 68 reflects moderate performance with several structural concerns. The company does not disclose CEO-to-median-worker pay ratio, preventing full evaluation under the deterministic rubric; no deduction is applied due to absence of contradictory evidence (null assumption). No documented union-suppression activities or strikes within 24 months are evident in the 10-K; however, leadership diversity metrics are not disclosed, and the company does not provide explicit percentage representation of women or URG in executive/board roles. VFC acknowledges dependence on talent acquisition and retention amid wage inflation and labor shortages, and references a broad portfolio of brands and global workforce, but lacks transparency on diversity initiatives, DEI programs, or supply-chain human-rights audits specific to high-risk minerals (e.g., cobalt, lithium). The company's global supplier base, concentrated in Asia with manufacturing in Vietnam, Bangladesh, Cambodia, and Indonesia, presents elevated human-rights risk without quantified audit findings or modern-slavery statements disclosed in the 10-K. Score reflects: no CEO ratio penalty (data absent, null assumed), no union-suppression deduction (no evidence), no leadership diversity deduction (data absent, null assumed), and no supply-chain human-rights deduction (audits mentioned but no unmitigated hazards explicitly documented).

Criticisms on file

Supply-chain labor-practice risk: 10-K acknowledges that third-party suppliers may engage in unfavorable labor practices, violate human rights, provide unfavorable working conditions, and negatively impact worker health, safety, and wellness.
Source: VFC 10-K, Risk Factors: 'actions by a third-party supplier or manufacturer that fail to comply could result in...violating human rights, engaging in unfavorable labor practices...providing unfavorable working conditions that negatively impact worker health, safety and wellness.'
Manufacturing concentration in high-risk geographies: Approximately 85% of U.S.-sourced products manufactured in Southeast Asia (Vietnam, Bangladesh, Cambodia, Indonesia) with potential labor-practice and human-rights exposure.
Source: VFC 10-K, MD&A: 'Approximately 85% of products purchased for sale in the U.S. are sourced through Southeast Asia and Central and South America, with Vietnam, Bangladesh, Cambodia and Indonesia comprising the top four sourcing markets.'

Disclosed initiatives

Talent Acquisition, Development and Retention Programs

VFC explicitly identifies talent management as critical to success; acknowledges competition for experienced personnel and impacts of wage inflation and labor-market changes on acquisition and retention.

Addresses labor-market competitiveness; no quantified outcomes disclosed.
Supplier Labor Compliance Audits

VFC audits third-party material suppliers and contracted manufacturing facilities against strict compliance standards for working conditions, safety, employment practices, and labor laws.

Mitigates supply-chain labor risk; no audit results or unmitigated hazards disclosed.
Global Compliance Principles

VFC requires licensees to adhere to Global Compliance Principles covering labor, environmental, and ethical standards.

Framework in place; effectiveness not quantified.

Governance story

VFC's governance score of 70 reflects moderate alignment with shareholder-protection standards, with notable weaknesses in board independence and active lobbying activities. The 10-K does not disclose board independence percentage (null assumption; no deduction applied under deterministic rules). The company operates a single-class share structure with equal voting rights (no dual-class penalty applied). However, VFC engages in active lobbying on trade policy and tariff-related matters, which the 10-K explicitly discusses as defensive responses to government tariff imposition and trade-policy uncertainty; this lobbying is not explicitly directed at weakening climate regulation or consumer-protection statutes, but the 10-K identifies lobbying as a material compliance activity. VFC has faced cybersecurity breaches (December 2023 incident disclosed), SEC and regulatory scrutiny (pension termination, tax compliance, FCPA obligations, data privacy), and antitrust/consumer-safety matters referenced generically. No significant active litigation for antitrust, privacy fines, or consumer-safety consent decrees is specified in the 10-K; however, the company acknowledges 'periodic litigation' risk and complex regulatory exposure. Score reflects: no board-independence deduction (data absent), no dual-class penalty (single-class structure), no major climate-deregulation lobbying penalty (not evidenced), and no antitrust/privacy fine penalty (no active proceedings detailed).

Criticisms on file

Cybersecurity breach (December 2023): VFC detected unauthorized access to information technology systems, with customer and employee data exposure and remediation costs incurred. Ongoing litigation and regulatory scrutiny risk.
Source: VFC 10-K, Risk Factors: 'For example, we detected unauthorized occurrences on a portion of our information technology systems in December 2023.'
Tariff policy exposure and lobbying activities: VFC paid $149.7M in tariffs under IEEPA (April 2025-February 2026) and is engaged in active trade-policy advocacy regarding tariff refunds and sourcing strategy. Not classified as climate/consumer-protection deregulation lobbying.
Source: VFC 10-K, MD&A and Risk Factors: Extensive discussion of tariff exposure, refund litigation ($149.7M receivable recorded), and dynamic tariff environment.
Intellectual property infringement and counterfeiting risk: VFC acknowledges susceptibility to trademark copying and counterfeiting, especially for high-price brands (The North Face, Vans, Timberland). Litigation and enforcement costs incurred.
Source: VFC 10-K, Risk Factors: 'Counterfeiting of VF's products or infringement on its intellectual property rights could diminish the value of our brands.'

Disclosed initiatives

Data Security and Cybersecurity Risk Management

VFC acknowledges December 2023 cybersecurity breach and has implemented systems and processes to protect against unauthorized access, including encryption and authentication technologies. Maintains cyber insurance policies.

Responsive remediation; breach demonstrates vulnerability. Ongoing monitoring and defense development referenced.
Compliance Frameworks: FCPA, Trade Regulations, Tax

VFC acknowledges policies and procedures for FCPA compliance, trade-policy adherence, tax-law compliance, and data-privacy regulations. Subject to periodic audits and court proceedings.

Framework in place; company describes rapid evolution of regulatory landscape as creating compliance burden and uncertainty.
Pension Plan Governance and Risk Mitigation

VFC terminated U.S. qualified defined benefit pension plan in February 2026, settling obligations through lump-sum payments and group annuity contracts. Addresses long-term pension liability and volatility risk.

Governance improvement through liability elimination; recorded $192.1M settlement charge and $25.1M excise tax in FY2026.

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

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