Climate Change Data

ASOS Plc

Climate Impact & Sustainability Data (2021, 2022)

Reporting Period: 2021

Environmental Metrics

Total Carbon Emissions:1,342,670 tCO2e (2018/19 baseline)
Scope 1 Emissions:<1%
Scope 2 Emissions:1%
Scope 3 Emissions:98%
Renewable Energy Share:75% (2020)

ESG Focus Areas

  • Climate Change
  • Circular Economy
  • Transparency and Human Rights
  • Diversity, Equity, and Inclusion

Environmental Achievements

  • Reduced operational carbon emissions per order by 45% since 2015
  • Reduced carbon emissions associated with products sold in the UK by 20% from 2013 to 2019
  • Achieved a 30% reduction in emissions per order by the end of 2019 financial year through Carbon 2020 program
  • Delivered a further 21% year-on-year reduction in operational emissions per order in 2020

Social Achievements

  • Launched Future Leaders programme
  • Signed up to the Business in the Community Race at Work Charter
  • Established a ‘Race Equality Heads and Hearts Group’
  • Signed up to the Government’s Disability Confident scheme
  • Established a dedicated LGBTQ+ workplace equality network
  • Partnering with ParalympicsGB since 2015

Governance Achievements

  • Established a new ESG Committee chaired by the CEO
  • Created FWI and Governance working groups under the ESG Committee
  • Linking FWI objectives to executive team remuneration from FY22

Climate Goals & Targets

Long-term Goals:
  • Net zero emissions across value chain by 2030
Medium-term Goals:
  • Reduce Scope 1 and 2 emissions/order by 87% by 2030
  • Reduce own-brand product emissions/£profit by 58% by 2030
  • Reduce transportation emissions/£profit by 58% by 2030
  • 100% of own-brand products made from recycled or more sustainable materials by 2030
  • Over 40% female representation in engineering, product and science roles by 2030
Short-term Goals:
  • Carbon neutral in direct operations by 2025
  • 100% of third-party brands signed up to the Transparency Pledge by 2025
  • 50% female and over 15% ethnic minority representation across combined leadership team by 2023

Environmental Challenges

  • Challenges in achieving circularity ambitions due to recycling infrastructure, material availability, and behavioral change
  • Challenges in achieving full supply chain transparency down to Tier 5
Mitigation Strategies
  • Investing in textile recovery programmes
  • Investing in technology and working with partners to achieve full supply chain transparency
  • Working with partners to implement lower carbon logistics and transport alternatives

Supply Chain Management

Supplier Audits: At least once per year for Tier 1 and Tier 2 facilities

Responsible Procurement
  • Ethical Trade programme
  • Transparency Pledge
  • Fast Forward auditing programme (UK)

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, SASB, TCFD

UN Sustainable Development Goals

  • 1
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 12
  • 13
  • 15
  • 16
  • 17

See Figure 8 in the report for details

Sustainable Products & Innovation

  • ASOS Design Circular Collection

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:14,848 tCO2e (location based)
Scope 1 Emissions:3,351 tCO2e
Scope 2 Emissions:11,497 tCO2e (location based)
Scope 3 Emissions:1,506,834 tCO2e (FY21)

ESG Focus Areas

  • Climate Change
  • Diversity, Equity & Inclusion
  • Ethical Trade
  • Transparency

Environmental Achievements

  • Rolled out an energy management system across all key operational sites.
  • Over 70% of Tier 1 and 22% of Tier 4 factories by volume completed the Higg FEM.
  • Launched a partnership with Maersk for inbound goods, developing a sustainability roadmap.
  • Engaged over 300 partner brands through a sustainability self-assessment questionnaire.
  • Developed and rolled out a new sustainable material certification database.
  • Expanded approved sustainable materials to include ECONYL® and TENCEL™ x REFIBRA™.
  • Completed 536 audits, covering 73% of the supply chain.
  • Mapped 75% of the viscose supply chain (Tiers 1-5).
  • Removed unnecessary product packaging from Topshop and Topman ranges.
  • Launched a partnership with Thrift+ for clothing resale.

Social Achievements

  • Launched health-related life events policies.
  • Signed a three-year partnership with Anti-Slavery International.
  • Launched a customer resale trial with Thrift+.
  • Extended the Data Academy with Multiverse.
  • Opened a new Tech Hub in Belfast, creating over 180 roles.
  • Published ethnicity pay gap data for the first time.
  • Female representation in combined leadership team increased to 45%.
  • Ethnic minority representation in combined leadership team increased to 10%.
  • Launched the ASOS Aces recognition platform.
  • Hosted ASOS Aces awards.

Governance Achievements

  • Launched an ESG Committee.
  • Created FWI and Governance Working Groups.
  • Completed the first TCFD risk assessment.
  • Responded to CDP Climate & Water questionnaires.
  • Responded to Sustainable Apparel Coalition Brand and Retail Module.
  • Established a new Head of Compliance role.
  • Co-operating with the CMA investigation.

Climate Goals & Targets

Long-term Goals:
  • Be Net Zero by 2030
  • Be More Circular by 2030
  • Be Transparent by 2030
  • Be Diverse by 2030
Medium-term Goals:
  • Over 40% female representation in Technology, Product Management and Data Science roles by 2030
  • Zero statistically significant differences in engagement scores and functional attrition rates across all demographics from 2030
  • Facilitate programmes for recycling and reuse in key markets by 2030
Short-term Goals:
  • Reduce Scope 1 and 2 emissions/order by 87% by 2030 vs 2018/19 baseline
  • Reduce own-brand product emissions/£profit by 58% by 2030 vs 2018/19 baseline
  • Reduce transportation emissions/£profit by 58% by 2030 vs 2018/19 baseline
  • Two-thirds of partner brands (by emissions) signed up to setting targets in line with Science Based Targets initiative requirements by 2025
  • 100% of own-brand products made from recycled or more sustainable materials by 2030
  • 100% of ASOS own-brand products will have supply chains mapped to raw material level by 2030
  • At least 50% female and over 15% ethnic minority representation across our combined leadership team by 2023
  • 100% of partner brands on ASOS will have committed to the Transparency Pledge and ASOS Ethical Trading policy by 2025
  • 100% of own-brand packaging will be made from recycled materials and be widely recyclable by 2025
  • Customers will easily be able to view and interact with information on the sustainability credentials of 100% of ASOS brand products by 2030

Environmental Challenges

  • Turbulent external environment.
  • Highly uncertain economic and geopolitical environment.
  • Self-imposed operational issues.
  • Lack of meaningful growth and scale in international markets (US, France, Germany).
  • Increased cost and complexity in supply chain.
  • Underinvestment in marketing.
  • Reliance on markdown and promotions.
  • CMA investigation into green claims.
  • Increased return rates.
  • Higher inventory levels.
  • Significant inflationary pressures.
  • Slowdown in demand.
  • Supply chain delays.
  • Economic downturn and loss of market share.
  • Global supply pressures.
  • Working capital cash shock.
  • Climate change.
Mitigation Strategies
  • Sharpening focus on improving operations, performance, flexibility and relevance.
  • Building upon core strengths (ASOS brand, customer offer).
  • Becoming less complex and more agile.
  • Implementing a change agenda focused on simplicity, speed to market, operational excellence, and flexibility and resilience.
  • Comprehensive review of capital and resource allocation.
  • Renewed commercial model and improved inventory management.
  • Secured additional financial flexibility.
  • Non-cash stock write-off.
  • Co-operating with CMA investigation.
  • Cost mitigation (£120m).
  • Renegotiation of core banking covenants.
  • Right-sizing stock portfolio.
  • Reducing capital expenditure.
  • Reviewing phasing of automation projects.
  • Purposeful technology investments.
  • Diversification of sales.
  • Increase in recycled and sustainably sourced products.

Supply Chain Management

Supplier Audits: 536 audits since September 2021 (73% coverage)

Responsible Procurement
  • Ethical Trade programme
  • Higg FEM assessments
  • Supplier sustainability requirements
  • ASOS Third-party Brands Ethical Policy
  • Global Modern Slavery Handbook

Climate-Related Risks & Opportunities

Physical Risks
  • Drought
  • Heat stress
  • Wildfire
  • Flooding
  • Climate migration
Transition Risks
  • Pricing of GHG emissions
  • Climate change litigation
  • Mandates and regulation of products
  • Enhanced emissions-reporting obligations
  • Substitution of existing technologies
  • Changing consumer preferences
  • Increased cost of raw materials
  • Cost of capital
  • Emissions offset
  • Investment risk
  • Stakeholder risk
  • Employee risk
Opportunities
  • Lower-emission technologies
  • Increased demand for sustainable products
  • Reduced cost of capital
  • Improved reputation

Reporting Standards

Frameworks Used: TCFD

Third-party Assurance: PricewaterhouseCoopers LLP (PwC) (limited assurance on selected GHG emissions data)

Sustainable Products & Innovation

  • Circular design collections
  • Products made from recycled or more sustainable materials

Awards & Recognition

  • Top-scoring British company in the 2022 Fashion Transparency Index
  • Gold award at the 2022 New York Festivals TV & Film Awards