Chair comments on Boohoo to link exec bonuses to environmental, social and governance improvements improvements
19 May 2021
Reacting to the announcement that Boohoo Group will link executive bonuses to environmental, social and governance (ESG) improvements, Environmental Audit Committee Chairman, Rt Hon Philip Dunne MP, said:
"It is incredibly welcome news that senior Boohoo executives have accepted our Committee’s recommendation to link bonuses with improvements to their supply chain.
“While it appears that only 15% of the bonus will be tied to ESG improvements, it is encouraging that Boohoo’s Remuneration Committee will have the discretion to scrap the entire bonus if these much-needed changes are not implemented. I hope these powers are used to keep Boohoo’s management on track.
“Bonuses shouldn’t just be linked to breakneck growth. Today’s action, alongside a commitment to join the Textiles 2030 climate targets, demonstrates Boohoo’s commitment to becoming a responsible corporate citizen. I hope we are reaching a turning point in fast fashion's awareness of its environmental and social responsibilities and would encourage other firms to follow suit.
“My Committee will continue to monitor fast fashion’s attempts to clean up their supply chains and improve their environmental credentials, not least in Leicester’s garment factories, where last summer we heard appalling allegations of poor pay and unsafe working conditions.”
The EAC recommended the move following an evidence session in December, attended virtually by Mahmud Kamani, founder and CEO of Boohoo Group, and executives.
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