Fair Pay & Worker Respect

Peloton states it is not a signatory to any agreements with any labor organization or a party to any collective bargaining agreements, indicating 0% collective bargaining coverage.

The company conducted its second global pay equity study at the close of the 2023 fiscal year, confirming it has maintained pay equity across race and gender. Peloton offers comprehensive health benefits, family and lifestyle services, and support, but the percentage of the workforce covered by these benefits is not specified.

Fair Trade & Ethical Sourcing

Peloton reported no identified instances of modern slavery within its operations for the fiscal year ended June 30, 2022, and no specific incidents were reported for the fiscal year ended June 30, 2023.

The company's Supplier Code of Conduct (SCoC), effective December 2022, prohibits forced labor, human trafficking, and child labor, requiring workers to be at least 16 years old. The SCoC is cascaded to all direct and indirect suppliers, with signed acknowledgments obtained from Peloton's three major direct connected fitness suppliers, provided to all apparel suppliers, and to the top 20 indirect suppliers by spend. Terms and conditions are updated to incorporate the SCoC by reference. Peloton maintains a Conflict Minerals Policy and uses a third-party supply chain risk intelligence platform to screen suppliers against global government lists of sanctioned and restricted parties, including those known to use modern slavery, convict, and/or child labor.

Honest & Fair Business

Peloton incurred a $19.1 million civil penalty in 2023 as part of a settlement with the CPSC regarding the Tread+ recall.

This fine was for failing to promptly report a defect and knowingly distributing recalled treadmills, which resulted in injuries and one fatality. The company has a comprehensive Code of Conduct, last updated July 29, 2025, which includes an open-door policy, non-retaliation for good faith reporting, and confidentiality for whistleblowers, with reporting mechanisms via HR and a Compliance Officer. Peloton has not had any financial restatements in the past five years. The company has an Anti-Bribery Compliance Policy, effective April 5, 2016, which includes annual mandatory anti-bribery compliance training for all representatives and third-party due diligence items. Peloton's alignment with NIST standards has been reviewed by an industry-leading auditing firm, and its Integrity Helpline is maintained by an external third-party platform.

Kind to Animals

The provided articles do not contain specific, quantifiable evidence to score Peloton against any of the 'Kind to Animals' KPIs. While one article notes Peloton uses animal-derived materials like wool and exotic animal hair and states there is no evidence of a policy to minimize animal suffering in its supply chain, this information does not map to the quantitative thresholds required by the rubric for any specific KPI, such such as the percentage of ethical input substitution or cruelty-free certification share.

The mention of 'dk active' being a PETA-approved vegan brand refers to a different entity, not Peloton itself. Therefore, all KPIs are omitted due to a lack of direct, quantifiable evidence that aligns with the rubric's scoring criteria.

Planet-Friendly Business

Peloton's total Scope 1, 2, and 3 greenhouse gas emissions for FY23 were 731,071 tCO₂e, representing a 46.27% decline from FY22.

The company has committed to setting science-based carbon reduction targets by 2025, with submission to the SBTi planned by the end of that year. In FY24, 80% of Peloton's global energy use was sourced from renewable energy certificates, with a goal to reach 100% by FY26. The company started developing carbon footprint reports for key products (Tread, Bike, and Row) in FY23, with completion planned for FY24. No environmental regulatory violations were reported in FY23. Peloton is engaged in TCFD climate risk analysis and reporting and conducted a climate scenario assessment considering 1.5°C, 2°C, and 3°C+ pathways for selected sites and supply chain locations. A Tier-2 reporting program with select suppliers was initiated in FY23.

Safe & Smart Tech

The provided articles mention a data breach experienced by Peloton in 2021.

However, the articles do not provide specific details regarding the scale of the breach, the number of users affected, the company's response, or any information about its security program or preventative measures. As the assessment date is 2025, a breach in 2021 falls outside the 'past 3 years' timeframe for most relevant scoring tiers. Without further details on the breach's severity, the company's security posture, or any other relevant cybersecurity and privacy metrics, there is insufficient evidence to score any of the KPIs against the provided rubric.

Zero Waste & Sustainable Products

Peloton has integrated circular economy principles into its business through the establishment of Peloton Certified Refurbished and Rental programs, which aim to extend product life by reusing and recycling components.

These programs demonstrate circular design principles applied to several product categories. The company also has waste reduction initiatives, including the refurbished program which reuses and recycles components, and landfill diversion efforts at a distribution center. No waste disposal violations or citations were mentioned in the 2023 or 2024 ESG reports.