Asda has improved its external ESG (environmental, social and governance) rating score as it remains “committed to responsible retailing”.

Following an external assessment by financial services ratings’ agency Sustainable Fitch, for the second year in a row, the supermarket received an entity rating of three (with one being excellent and five being poor).

The grocer’s entity score improved to 57 from 54, with the score taking into account “Asda’s continued efforts to mitigate material environmental and social impacts from its wide range of consumer products”.

Sustainable Fitch positively rated Asda’s actions to increase volume share of healthier products, as well as improvements made to food nutrition labelling, utilising its Live Better logo.

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The retailer’s robust human and labour rights policies also contributed to the score improvement, with the agency noting that Asda’s balanced workforce supported its social profile, with 52% of employees being women.

The rating, which assesses a company’s ESG performance and reflects how environmental and social initiatives are interwoven into the business strategy, is relative to competitors and the wider industry and is a way for investors to easily understand its profile, risks and opportunities.

Asda chief financial officer Michael Gleeson said: “We’re pleased that Sustainable Fitch has recognised our ESG progress for the second year in a row. Over the last year, we’ve not only improved how we report with greater transparency, but we have continued to integrate ESG considerations into our business strategy.

“This score highlights to investors that we remain committed to responsible retailing and to acting on the issues that matter most to our customers.”