MPs demand action from Boohoo on supplier issues

By

Nigel TAYLOR

Published
Mar 5, 2021

Fast fashion retailer Boohoo is facing additional pressure to address issues linked to its supply chain working practices.

The UK government’s Environmental Audit Committee (EAC) has written to the group’s chairman Mahmud Kamani asking for an update on Boohoo’s commitments to its environmental and social practices. 

The letter also includes a request that its senior executives’ bonuses should be linked to the progress made on its commitment to improving working conditions and rights within its supply chain.

The long-term bonus scheme, announced last year, is linked to share price growth and potentially worth £150 million to key executives. Boohoo has yet to comment on the EAC’s request.

Meanwhile, Boohoo was forced to defend its supplier practices again earlier in the week after a Sky News report said the online fashion retailer faced the possibility of a US import ban due to allegations over poor working practices in supplier factories.

The report said the retailer's operations had come to the attention of US Customs and Border Protection.

The agency, which said it had seen enough evidence to launch its own investigation, has the power to seize goods deemed to have been produced under any type of "forced" or sub-standard conditions.

Claims of poor working practices linked to Boohoo that surfaced last summer have failed to subside. In December, the retailer faced fresh allegations that workers in Pakistan were being paid just 29p per hour to produce its clothing.

The company earlier launched an independent review which led to the introduction of its ‘Agenda for Change’ programme. In November, it also appointed Sir Brian Leveson to provide independent oversight of the programme.

The company, which said it has already taken action by severing ties with more than 60 businesses and improving oversight controls of its activities, is scheduled to publish its UK supplier list this month and its global supplier list by September.