Better Health for All

Kohl's core business, which includes apparel, footwear, accessories, beauty, and home products, has a neutral health impact. The company demonstrates a positive impact through its comprehensive health and wellness initiatives. The Kohl's Healthy at Home initiative, rooted in health equity, provides multimedia resources, tips, and activities for parents and caregivers, impacting 3.8 million families, 7.6 million students, and over 12,000 schools.

This initiative aims to support Black, Indigenous, and People of Color (BIPOC) populations and under-resourced communities, with 71% of impacted schools being Title I schools. Kohl's also supports mental health through partnerships with NAMI, counseling for associates, and by addressing mental well-being, stress, and social-emotional health within the Healthy at Home program. Furthermore, the Healthy at Home program emphasizes healthy eating and activity, demonstrating a strong focus on preventative health measures. Kohl's Cares programs have donated over $425 million nationwide to family health initiatives.

Fair Pay & Worker Respect

Kohl's CEO to median employee pay ratio for Fiscal Year 2024 was 1416:1

, with CEO Ashley Buchanan's compensation at $20 million and the median employee's annual income at $15,763 . In the past three years, the company incurred two substantiated workplace safety or health violations from OSHA , with penalties of $11,500 in 2022 and $30,000 in 2024 .

Fair Trade & Ethical Sourcing

Kohl's requires all vendors to comply with its Terms of Engagement as a condition of doing business

, ensuring 100% of contracts include ethical sourcing clauses. These clauses cover child/forced labor, wages, working hours, health and safety, and align with international human rights principles. Compliance is enforced through audits by independent, third-party social compliance monitoring firms. In 2024, Kohl's conducted 814 audits for 1,059 production facilities , resulting in an average audit frequency of approximately 15.6 months per facility. The company maintains a zero-tolerance policy for certain violations , which can lead to immediate termination of the business relationship.

Honest & Fair Business

Kohl's former CEO, Ashley Buchanan, was terminated following an investigation by outside counsel and the Audit Committee.

The investigation found he directed the company to conduct business with a vendor founded by an individual with whom he had an undisclosed personal relationship, on unusual terms, and involving a multi-million dollar consulting agreement. Buchanan forfeited equity awards and reimbursed a portion of his signing incentive. Separately, board member Christine Day resigned, citing concerns about the company's governance process and a lack of transparency regarding an Institutional Shareholder Services (ISS) report on executive compensation. Kohl's issued conflicting SEC filings concerning the reasons for Day's departure. ISS had previously expressed concerns about the size, disclosure, and lack of performance criteria for Buchanan's $2.5 million signing bonus, which was subsequently rescinded. Kohl's Code of Ethics requires disclosure of conflicts of interest.

Kind to Animals

Kohl's has repeatedly violated the Federal Trade Commission Act and the FTC's Fur Products Labeling Act, selling real raccoon dog fur and rabbit fur products mislabeled as "faux" fur on at least two occasions.

This indicates the use of animal-derived materials with very low or no substitution efforts and deceptive practices. In contrast, the company states it conducts no animal testing, implying zero animals used in testing.

No War, No Weapons

No specific, quantitative evidence was found in the provided articles to assess Kohl's (KSS.US) against the 'No War, No Weapons' ethical value. The articles focus on general ESG initiatives

, environmental sustainability goals , and local philanthropic donations , none of which directly address the company's involvement in arms manufacturing, military contracts, dual-use technologies, sales to sanctioned regimes, or peacebuilding investments.

Planet-Friendly Business

Kohl's total Scope 1, 2, and 3 greenhouse gas emissions were approximately 9.1 million tCO2e in 2023.

The company achieved a 54.94% reduction in Scope 1 and 2 emissions versus a 2014 baseline by the end of 2024. Kohl's joined the Science Based Targets initiative (SBTi) in July 2021. and has established SBTi-aligned emissions reduction targets, including a 32% absolute Scope 1, 2, and 3 reduction by 2031 from a 2021 baseline, and a 46.2% reduction for Scope 1 and 2 emissions by 2031 from a 2021 baseline. In 2024, nearly 7% of electricity used to power the business came from renewable sources, including 22,295 MWh from on-site solar arrays. In the same year, 98% of Kohl's stores were ENERGY STAR-certified, and 82.4% of waste was diverted from landfills. Kohl's has a goal of reaching net-zero emissions by at least 2050. The company's climate-related disclosures are guided by the TCFD framework, and it considers different climate-related scenarios, including a 2°C or lower scenario. For supply chain climate transparency, 85% of approved facilities completed the Higg Index Facility Environmental Module in CY 2024. Nearly 100% of branded apparel packaging paper has been converted to Forest Stewardship Council-certified paper. Approximately 33.2% of water withdrawal is sourced from high or extremely high-stress basins.

Respect for Cultures & Communities

The provided articles do not contain specific, quantitative data points relevant to any of the KPIs for 'Respect for Cultures & Communities'. Information available focuses on general charitable giving

, internal diversity initiatives like Business Resource Groups , and celebrations of cultural months , but lacks metrics such as formal partnership numbers with community groups, percentages of revenue reinvested locally or for cultural preservation, details on cultural appropriation incidents or protocols, local employment ratios, or specific grievance mechanism coverage and resolution times. Therefore, no KPIs can be scored based on the evidence provided.

Safe & Smart Tech

A data breach impacted over 4.2 million people (4,253,394) associated with Kohl's credit card services, handled by its vendor FBCS, between February 14 and 26, 2024.

Kohl's notifications were sent around August 15, 2024, following FBCS's notices on April 26, 2024. A class action lawsuit was filed on October 9, 2024, alleging Kohl's failed to protect customer data and ensure its vendor implemented adequate security protocols.

Zero Waste & Sustainable Products

Kohl's currently diverts 83% of its operational waste from landfills

, with a 2020 rate of 85%. For product components, 100% of Kohl's private-branded shoe boxes are recyclable. In terms of packaging, 95% of shipping bags and boxes and 100% of in-store shopping bags are recyclable. The company also uses 100% recycled content for gift boxes and restroom paper. Kohl's has implemented several waste reduction initiatives, including plastic and cardboard recycling, paperless billing, beauty product and fabric scrap repurposing, shipping efficiencies, and a partnership with How2Recycle. The company has set targets for 2025, aiming to divert 85% of U.S. operational waste , label 100% of owned branded packaging with How2Recycle , and ensure 50% of polyester styles in proprietary brands contain recycled materials. There are no reported waste disposal violations. Kohl's requires all approved facilities producing its "only-at-Kohl's" brand products to complete the Higg Index Environmental Module by 2025. Customer waste education is supported through How2Recycle labeling on packaging , paperless billing options , and the availability of reusable bags.