Peloton Interactive, Inc.
Climate Impact & Sustainability Data (2024)
Reporting Period: 2024
Environmental Metrics
ESG Focus Areas
- Diversity, Equity, and Inclusion
- Team Member Safety
- Environmental, Social, and Governance (ESG)
Social Achievements
- Improved Member satisfaction scores (MSAT) from 3.4 to 4.1 (22% increase) since December 2023.
- Launched a pilot program with the YMCA of Metropolitan Chicago, integrating Peloton equipment and app content.
Governance Achievements
- Successfully refinanced balance sheet, reducing debt by $200 million and extending average maturity to 2029.
Climate Goals & Targets
Environmental Challenges
- Reduced consumer demand for Connected Fitness Products.
- Material weaknesses in internal control over financial reporting related to inventory, Precor's business processes, and IT general controls.
- Product recalls (Tread+ and Bike seat post).
- Increased scrutiny related to ESG practices and reporting.
Mitigation Strategies
- Implemented 2022 and 2024 Restructuring Plans, including headcount reductions, facility closures, and a shift to third-party logistics.
- Taking steps to remediate material weaknesses in internal control.
- Offering free replacement parts for recalled products.
- Investing in and enhancing cybersecurity program and internal controls.