Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Responsible Sourcing
• Governance
• Community Engagement
• Employee Well-being

Environmental Achievements

• Reduced operational emissions by over 80%
• Achieved over 80% recycled content in dispatch bags
• Increased sourcing of more sustainable fabrics

Social Achievements

• Published UK manufacturing supply chain
• Established Garment and Textile Workers Trust with £1 million donation
• Donated £900,000 to charities
• Provided Covid-19 safety training for suppliers and invested over £350,000 in Covid-19 protection measures

Governance Achievements

• Strengthened governance processes through Agenda for Change
• Appointed Sir Brian Leveson and KPMG for independent oversight
• Published marketing principles

Climate Goals & Targets

Environmental Challenges

• Allegations of poor labor standards and wages in UK supply chain
• Complex and fast-paced global supply chains
• Need to improve transparency and stakeholder confidence

Mitigation Strategies

• Launched Agenda for Change program
• Improved supply chain visibility through mapping and audits
• Increased transparency through publishing reports and supplier lists
• Established Garment and Textile Workers Trust
• Developed new Responsible Purchasing Practices

Supply Chain Management

Supplier Audits: Around 500 audits completed since July 2020

Responsible Procurement

• Improved supplier management programme
• New Responsible Purchasing Practices
• Supplier code of conduct
• Sustainable Apparel Coalition’s Facilities Environment Module (FEM)

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Global Reporting Initiative (GRI), AA1000

UN Sustainable Development Goals

• 6
• 7
• 8
• 9
• 10
• 12
• 13
• 15
• 17

Boohoo's strategy contributes to these SDGs through initiatives related to responsible consumption and production, clean energy, decent work, industry innovation, reduced inequalities, and partnerships.

Sustainable Products & Innovation

• READY FOR THE FUTURE product lines
• Recycled collections

Environmental Metrics

ESG Focus Areas

• Sustainable Materials
• Supplier Ethics
• Responsible Business Practices

Environmental Achievements

• Despatch bags now contain over 80% recycled plastic

Social Achievements

• Established a Garment Workers Trust in Leicester
• Published Alison Levitt QC’s independent review of our supply chain
• Disclosed our list of UK suppliers

Governance Achievements

• Established a Supply Chain Compliance Committee reporting to the Risk Committee and board

Climate Goals & Targets

Environmental Challenges

• Rapid growth requiring strong supplier relationships and ethical standards
• Complexities of sustainable material sourcing and waste reduction in fashion
• Need for transparency and stakeholder confidence

Mitigation Strategies

• Building a dedicated team for supplier management and monitoring
• Developing guidelines for more sustainable materials
• Improving ordering, monitoring, and tracking systems
• Collaborating with industry groups (Sustainable Apparel Coalition, Textiles 2030, Microfibre Consortium)

Supply Chain Management

Responsible Procurement

• Improved supplier management programme
• Monitoring supplier performance against standards
• Mapping key raw material supply chains

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• READY FOR THE FUTURE product lines

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Converted 13% of cotton usage to Better Cotton certified cotton.
• Moved to totally renewable electricity.
• Reduced overall size of garment labels by 25%, saving 139,244 sheets of paper.
• Total market-based emissions decreased by 8% from 852,370 tCO2e to 781,146 tCO2e.

Social Achievements

• First British retailer to achieve Pride 365 certification.
• Launched a ‘Let’s Talk About’ series to discuss challenging topics.
• 168 garment workers in Leicester qualified with KTL training.
• Launched BeYou, social impact strategy with 1% of pre-tax profits donated to good causes.
• Garment and Textile Workers Trust issued grants of £300k+

Governance Achievements

• 89% year-on-year reduction in red-rated audits across supplier base.
• Executive compensation linked to ESG performance (non-financial targets in annual bonus scheme).

Climate Goals & Targets

Environmental Challenges

• Efficient systems to recycle textiles in the UK do not yet exist.
• Driving change at the affordable end of the fashion sector is challenging.
• Mapping and publishing raw material supply chain is ongoing.

Mitigation Strategies

• Partnered with Yellow Octopus for textile waste upcycling.
• Focusing on implementing changes that don't compromise affordability or style.
• Commenced pilot mapping of top China suppliers.

Supply Chain Management

Supplier Audits: 89% year-on-year reduction in red-rated audits

Responsible Procurement

• Supplier manual; regular supplier visits; webinars on ethical trading, modern slavery, etc.; partnership with Better Buying Institute.

Climate-Related Risks & Opportunities

Physical Risks

• Flooding (Pakistan)

Transition Risks

• Regulatory changes; market shifts

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: Science Based Targets initiative (SBTi), Task Force on Climate-related Financial Disclosures (TCFD)

Certifications: Pride 365

Sustainable Products & Innovation

• Vintage products; recycled materials; more sustainable fabrics.

Awards & Recognition

• Pride 365

Environmental Metrics

ESG Focus Areas

• Climate Change
• Supply Chain Ethics
• Sustainability
• Diversity & Inclusion
• Employee Wellbeing
• Governance

Environmental Achievements

• Reduced carbon footprint by 8% (market-based) due to reduction in fabric purchased and shift from air freight to road or sea freight.
• Launched PrettyLittleThing marketplace and Karen Millen Revolve resale platforms.
• Opened a new US distribution center to reduce air and road freight and shipping footprint.
• 89% year-on-year reduction in red-rated audits across supplier base (2022: 56; 2023: 6).

Social Achievements

• Established the Garment and Textile Workers Trust with a £1 million donation, awarding over £350,000 in grants.
• Became the first British retailer to achieve Pride 365 certification.
• Launched a new social impact program, 'Be You,' committing 1% of top-line profits to fund it.
• Delivered over 200 learning lab sessions with employee groups, with over 5,000 hours of learning undertaken at distribution centers.

Governance Achievements

• Completed the Agenda for Change program and embedded a new governance framework.
• Appointed Shaun McCabe as CFO.
• Established additional risk-focused governance structures.
• Implemented standardized controls documentation standards and attestations.

Climate Goals & Targets

Environmental Challenges

• Macroeconomic challenges affecting the retail sector (inflation, consumer demand impacted by cost-of-living pressures).
• Elevated return rates above pre-pandemic levels.
• Extended delivery times impacting customer proposition (particularly in the US).
• Inefficiencies in acquired brands.
• Elevated freight costs and high distribution costs.

Mitigation Strategies

• Implemented a transformational cost-reduction program.
• Tightly managed and significantly reduced inventory (down 36% year-on-year).
• Invested in automation at Sheffield distribution center and opened a new US distribution center.
• Launched new wholesale partnerships.
• Addressed inefficiencies in acquired brands through a cost-reduction program.
• Introduced chargeable returns for non-Premier/Royalty customers in the UK.

Supply Chain Management

Supplier Audits: 89% year-on-year reduction in red-rated audits (2022: 56; 2023: 6)

Responsible Procurement

• Fast Forward ethical auditing program
• Supplier Code of Conduct
• Modern Slavery training
• Health and Safety training
• Collaboration with suppliers on textile waste trials

Climate-Related Risks & Opportunities

Physical Risks

• Risks to own facilities
• Risk to raw material availability and cost
• Risks to revenue

Transition Risks

• Liability risk (climate change litigation)
• Market risk (investor prioritization of low-carbon companies)
• Policy risk (legislation penalizing GHG emissions)
• Technology risk (disruptive technology changes)
• Customer risk (changes in consumer preferences)

Opportunities

• Development of energy-efficient products
• Increased use of recycled and more sustainable materials

Reporting Standards

Frameworks Used: TCFD

Certifications: Pride 365

Sustainable Products & Innovation

• Ready for the Future range

Awards & Recognition

• Pride 365 certification

Environmental Metrics

ESG Focus Areas

• Climate Change
• Supply Chain Ethics
• Human Rights
• Employee Welfare
• Community Engagement
• Governance

Environmental Achievements

• Market-based carbon footprint decreased by 34% since the previous reporting year (779,887 tCO2e to 514,591 tCO2e), largely due to a reduction in the quantity of materials purchased and the quantity of goods sold.
• Achieved a HIGG verification score of 19.6%, progressing from foundation level to progressive level.
• Diverted 276 tonnes of textile waste from landfill in the UK through partnerships.
• Mailer bags are made up of 80% recycled materials and recyclable.

Social Achievements

• Delivered data science program to over 3,000 children aged 13-16.
• Partnered with Northern Power Women to promote gender equality and community engagement.
• Supported BikeStormz to combat knife crime.
• Achieved ISO 45001 health and safety management accreditation at its Manchester Head Office.

Governance Achievements

• Strengthened leadership team with the appointment of Stephen Morana as CFO.
• Implemented a transformational cost savings program.
• Completed a gap analysis against the new 2023 UK Corporate Governance Code.
• Published a new unapproved sub-contracting policy in 2024.

Climate Goals & Targets

Environmental Challenges

• Difficult macroeconomic environment impacting consumer demand.
• Extended delivery times impacting customer proposition.
• Decarbonisation progress slower than desired.
• Supply chain decarbonisation requiring collaboration.
• Credit transferring challenges with Better Cotton Initiative.
• Brand engagement challenges with Better Cotton Initiative.

Mitigation Strategies

• Implemented a clear brand strategy with a focus on five core brands.
• Completed Sheffield automation project, delivering enhanced efficiency and capacity.
• Launched US distribution center, upgrading delivery options for US customers.
• Delivered more than £125 million of annualised cost savings.
• Partnered with Capgemini to improve data accuracy and streamline carbon data collection.
• Engaged with CottonConnect and other retailers on ethical issues, supply chain, raw materials, and traceability.
• Implemented supplier engagement strategies to reduce water consumption for dyehouses.
• Launched WASH program in conjunction with the group’s social impact strategy.
• Developed new ethical trade supplier guidelines.

Supply Chain Management

Supplier Audits: 878 factory spot checks and 688 3rd party audits in 2024

Responsible Procurement

• Supplier Code of Conduct
• Responsible Purchasing Practices
• Better Cotton Initiative (BCI) cotton mandated by core brands
• Higg Facility Environmental Module (FEM) data collection from tier 1 suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events impacting own facilities, raw material availability, and revenue.

Transition Risks

• Changing customer behavior, market disruption, regulatory changes, and reputational risks.

Opportunities

• Development of energy-efficient products and processes.
• Resale and recycling programs.
• Use of recycled materials.
• Reduced energy consumption in operations.

Reporting Standards

Frameworks Used: TCFD, GRI, Science Based Targets initiative (SBTi)

Certifications: ISO 45001

Sustainable Products & Innovation

• Increased use of recycled polyester and Better Cotton Initiative cotton.