Boohoo should link bonuses to workers' rights and sustainability improvements
5 March 2021
The Environmental Audit Committee has asked Boohoo Group Chairman Mahmud Kamani to link its bonus scheme for senior executives to achievement of its pledges on workers' rights and environmental sustainability.
- Read the letter: Chair to Boohoo Group Chairman
- Inquiry: Fixing fashion: follow up
- Environmental Audit Committee
The Committee has written to Boohoo seeking updates on its commitments to environmental and social responsibilities made during the company's appearance before the Committee in December.
The letter welcomes a number of positive steps that the fashion group is taking. For example signing up to three leading sustainability initiatives.
At the evidence session the Committee was disappointed that Mr Kamani was unable to provide sufficient detail in response to a number of highly pertinent questions about the company's governance.
The Committee has pressed Mr Kamani for updates around Boohoo's measures to ensure minimum wage compliance within its supply chain.
It has also pressed for a list of the 64 businesses that Boohoo told the Committee it had severed ties with as a result of their apparent failure to comply with the company's new code of conduct.
Information is sought on whether the Board of Boohoo has agreed to link remuneration incentives to Environmental, Societal and Governance improvements.
This could include the environmental sustainability of its products and the welfare of workers. Mr Kamani agreed to consider this when giving evidence to the Committee.
Environmental Audit Committee Chairman, Rt Hon Philip Dunne MP, said:
"Boohoo's rapid growth has taken the UK garment industry by storm.
"It has been linked to poor pay and conditions in UK garment factories. But to its credit, it has pledged to clean up its act.
"We have written to Mr Kamani to seek updates on a range of issues, including on supply chain transparency.
"We are asking Boohoo to put its money where its mouth is and link the multi-million pound bonuses it has lined up for its bosses to the achievement of its ethical and environmental pledges."