Stella International Holdings Receives 'AA' MSCI ESG Rating Upgrade

Stella International Holdings has received an upgraded MSCI ESG Rating of 'AA' from 'A', marking its second consecutive annual upgrade. The rating recognizes the company's progress in environmental performance, particularly in Raw Material Sourcing and Product Carbon Footprint management. Stella's scores across all six key ESG issues in the Textiles, Apparel & Luxury Goods sector now exceed the industry average. The company aims to continue improving transparency and working with partners to deliver measurable progress in sustainability.

Stella International Holdings Limited, a leading developer and manufacturer of quality footwear and leather goods, has received an upgraded MSCI ESG Rating of 'AA', up from its previous 'A' rating. This marks the company's second consecutive annual upgrade, reflecting significant progress in environmental performance, particularly in Raw Material Sourcing and Product Carbon Footprint management [1].

The upgraded rating recognizes Stella's ongoing efforts to strengthen its supply chain sustainability. The company achieved 100% Leather Working Group (LWG) certification among core leather suppliers in 2024, demonstrating a commitment to ethical sourcing [1]. Additionally, improvements in Product Carbon Footprint were supported by enhanced data transparency and management, including the completion of annual Scope 1, 2, and 3 carbon inventories with ISO 14064 certification and public disclosure of emissions data [1].

Stella International has also set Near-term Science Based Targets (SBT) covering all three scopes of its greenhouse gas (GHG) emissions, which are currently under review by the Science Based Targets initiative (SBTi) [1]. These targets aim to support the company's long-term decarbonization efforts.

The company's Chief Executive Officer, Mr. Chi Lo-Jen, emphasized that while the upgrade is a testament to the Group's enhanced sustainability disclosures and proactive management of key ESG issues, sustainability remains a long-term journey. Stella International will continue to focus on improving transparency and working closely with its partners to deliver steady, measurable progress [1].

The MSCI ESG Ratings provide a comprehensive assessment of a company's exposure to industry-specific ESG risks and its ability to manage those risks relative to peers. The upgrade to 'AA' signifies that Stella International's ESG performance is now among the best in its sector, reflecting its dedication to sustainable practices [1].

References:
[1] https://finance.yahoo.com/news/stella-international-secures-aa-msci-080000818.html