Spotify

Spotify logo

Spotify is a leading audio streaming service that offers access to over 100 million tracks, nearly 7 million podcast titles, and 350,000 audiobooks worldwide, providing personalized discovery and streaming on demand across multiple devices.

Positive signals

Sustainalytics rates Spotify as 'Medium Risk' for ESG, with a score of 22.3 on a 0-40+ scale, indicating that while there are material ESG risks, the company is managing them at an average level for its sector as of 2025.

Spotify's general impact score is +0.18 (on a scale from -5 to +5), with its impact spread across seven UN Sustainable Development Goals and five topics, reflecting some positive alignment with global sustainability frameworks.

Concerns

Controversy over fake artists on the platform

Mass layoffs impacting employee morale and productivity

Spotify emits over 280,000 tonnes of CO2 equivalent annually, which is comparable to the electricity use of 55,260 homes per year, and the company does not report other environmental metrics, suggesting limited transparency and a significant carbon footprint for a digital service.

Spotify is ranked 6th among major streaming platforms for artist compensation, paying among the lowest fees per stream, which has led to ongoing criticism from artists and advocacy groups regarding fair pay and social responsibility.

Allegations of creating 'fake artists' for playlist placement