MANCHESTER – The chairman of fast fashion giant Boohoo, Mahmud Kamani, has told the Environmental Audit Committee (EAC) he is “looking into” its proposal of linking executive bonuses with Environmental, Social and Governance (ESG) improvements.
It comes after the EAC wrote to Boohoo at the start of March in relation to its bonus scheme – through which senior executives are in line to receive a combined £150 million if shares rise by 66 per cent over the coming years – suggesting the brand should use the cash only as a reward for meeting its targets on environmental sustainability and worker welfare.
EAC chairman, Philip Dunne MP, 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. 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.”