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Summary
- The EAC committee has asked the company to link its remuneration incentives to environment and sustainability improvements.
- Mahmud Kamani, Chairman of Boohoo, has agreed to deliver on the promises made in a recent December meeting.
The UK government is trying to persuade Boohoo Group plc (LON: BOO) to connect its staff remuneration incentives to environment and sustainability improvement plans. This would help them meet the twin objectives – its pledge on the employee rights and environmental sustainability.
The UK government’s Environmental Audit Committee (EAC) has recently written to the fashion retail company in this regard. It had sought updates on promises made in a December meeting.
The company stock price (LON: BOO) was trading at GBX 322.10, lower by 2.28 percent points at 8.57 am on 5 March compared to its previous day’s close.
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The committee has requested the company to link its remuneration incentives for senior employees to its ESG (Environmental, Social, and Corporate Governance) improvements. These may which include the welfare of its staff and environmental sustainability of its products, it said.
Mahmud Kamani, Chairman of Boohoo, has agreed to consider implementation of these measures. He has been asked to update plans related to ensuring minimum wage compliance for the retailer’s supply chains.
The environment committee has also enquired about the details of the 64 businesses of the Boohoo group that may not be able to comply with the guidelines. Boohoo had informed that these segments could fail to comply with its new code of conduct.
Philip Dunne MP, chairman, EAC, said that the company’s fast growth had taken the national garment sector by storm. Critics linked the progress to poor salaries and unsatisfactory conditions in the garment factories. But the good thing is that the firm had promised to reverse things for the good and clean up its act, said Dunne.
The chairman informed that the EAC has written to the fashion firm seeking details of many issues including the transparency of its supply chain. The committee asked Boohoo to put the money where the mouth is, he said. It insisted that the company linked its lined-up hefty bonuses to senior executives with their accomplishment related to its environmental and ethical commitments.
Also Read: What led Boohoo’s to acquire three fashion brands of Arcadia
Share performance
The Boohoo company stock price (LON: BOO) was trading on the London Stock Exchange at GBX 322.10, lower by 2.28 per cent points at 8.57 am on 5 March compared to its previous day’s close. The volume of shares traded at that time were 1,254,467 with a YTD return of -6.18 per cent. The stock’s market capitalisation totalled to £4,157.21 million.
This year’s high price was reached on 15 February with a value of GBX 373.3. Since then, the stock is on a falling spree.
