Boohoo Group PLC (AIM:BOO) has met the targets of its agenda for change targeting transparent supply chains, according to the latest report into the company.
The fifth and final update report, overseen by judge Sir Brian Levinson, tracked the progress of Boohoo, which also owns PrettyLittleThing and Nasty Gal, against recommendations laid out by Alison Levitt QC.
Under the group’s Supplier Hub plan, suppliers of Boohoo will now require independent approval on their sourcing, ethical compliance, factory approver and finance, with buyers unable to raise a purchase order from suppliers outside the system.
“In a few respects, it continues to be work in progress, but the transformation is such that it is now at the point at which it can move into business as usual,” Levinson said in his report.
“The engagement of all at boohoo with all involved in providing independent oversight has been exemplary.”
Levinson highlighted improvements including the embodiment of the Garment and Textile Workers Trust and its new manufacturing facility in Leicester, where it was reported by the Times that workers were paid just £3.50 an hour and offered minimal safeguards against Covid.
Boohoo intends to launch 23 key performance indicators to manage against modern slavery practices.
Levinson’s fifth Agenda for Change update follows the last report in September 2021, assessing Boohoo’s work in its supply chain, responsible purchasing practices, sustainability, ethical compliance and training programmes related to modern slavery.
It followed the Levitt Review, which criticized Boohoo’s opaque supply chain practices and cost-cutting approach to workers’ rights from its Leicester hub.
Last year Boohoo linked executive pay to ESG targets, with the company recently rated AA by MSCI, highlighting issues with transparency in the ESG reporting system.
Boohoo’s share price fell 5.7% yesterday to 65.61p as fears of a recession in the wake of the Russian invasion of Ukraine grow.