// Boohoo is looking at linking senior executive bonuses to its environmental, social and governance improvements
// Chairman Mahmud Kamani told the Environmental Audit Committee (EAC) about the plan
Boohoo Group is considering linking senior executive bonuses to its environmental, social and governance (ESG) improvements.
The company’s chairman Mahmud Kamani has told the Environmental Audit Committee (EAC) about the retailer’s plan.
The EAC made the recommendation in a letter to the group following an evidence session in December, attended virtually by Kamani and executives.
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The committee said aligning executive remuneration to ESG improvements would demonstrate a “genuine commitment to environmental and social responsibility”.
EAC chairman Philip Dunne said: “Boohoo’s response to our committee’s letter sends promising signals that we are reaching a turning point in fast fashion’s awareness of its environmental and social responsibilities.
“It is welcome news that the board is considering aligning senior executive bonuses with making ESG improvements, and I look forward to hearing whether this is being taken forward.
“Bonuses shouldn’t just be linked to breakneck growth. Boohoo needs to demonstrate that it is delivering verifiable improvements in workers’ rights and the climate impact of its products.
“News last summer emanating from Leicester’s garment industry appalled us all, with allegations of modern slavery in supply chains and a lack of Covid-secure measures in factories.
“This spotlight on Leicester may have encouraged Boohoo to take steps to clean up its supply chain.
“Once the publicity dies down, I hope these changes remain in place for years to come with a renewed pride in ‘Made in Britain’ items and certainty on improved workers’ rights.”
The EAC’s evidence session on Fixing Fashion will be held on April 28, where it will be considering the government’s new Textiles 2030 initiative.
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