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boohoo asked to link management bonus scheme to ESG goals by MPs

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boohoo Group PLC (LON:BOO) is pressured by MPs to link its bonus scheme for senior executives to the achievement of its pledges on workers’ rights and environmental sustainability.

The Environmental Audit Committee has written to the fast-fashion retailer seeking updates on commitments made in a December meeting.

READ: Boohoo faces potential US investigation, import ban over allegations of slave labour in UK

It asked to link remuneration incentives to ESG improvements, which “could include the environmental sustainability of its products and the welfare of workers”, the Committee said.

Chairman Mahmud Kamani, who agreed to consider implementing these measures, is also being asked to update on plans to ensure minimum wage compliance within the online retailer’s supply chain.

The Committee said it also enquired about a list of the 64 businesses that boohoo said would ditch “as a result of their apparent failure to comply with the company’s new code of conduct”.

“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,” said the Committee’s chairman, Philip Dunne MP.

“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.”

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