April 8, 2024 About ASOS
ASOS (As Seen On Screen) is a British online fashion and beauty retailer known for its extensive selection of clothing, accessories, and cosmetics. ASOS is headquartered in Greater London House, Hampstead Rd, London, NW1 7FB, GB.
United Kingdom
ASOS focuses on offering a diverse range of trendy clothing, accessories, and cosmetics through its digital platforms. ASOS places an emphasis on inclusivity, sustainability, and engaging with customers through social media and influencer collaborations. It caters to a wide range of budgets, from affordable to premium products, and is known for staying at the forefront of fashion trends.
ASOS Sustainability Rating is 4.1
This means ASOS are above average compared to other companies in the Apparel, Accessories & Footwear.
Industry positioning
ASOS positioning within the Apparel, Accessories & Footwear
Sustainability in the apparel, accessories, and footwear industry is challenging due to complex supply chains, the fast fashion culture, environmental impacts, ethical labor concerns, material sourcing difficulties, consumer behaviour factors, cost competitiveness, certification complexities, waste management issues, and the need for ongoing education and awareness. Despite these obstacles, the industry is making efforts to become more sustainable through innovations and collaborations, but achieving widespread sustainability remains a long-term endeavour that requires cooperation from various stakeholders.
ASOS's unique selling points include its vast and diverse selection of fashion and beauty products, trend-driven approach, commitment to inclusivity, global accessibility, convenient online shopping experience, sustainability initiatives, and active customer engagement. These factors set ASOS apart in the fashion industry and appeal to a broad range of consumers.
ASOS Sustainability Rating Breakdown:
ASOS Overall Sustainability Rating is 4.1 out of 5.0
ASOS has been actively working on its sustainability strategy, primarily under its "Fashion with Integrity" program, which was launched in 2010. Their efforts are focused on two main pillars: Planet and People, and aim to reduce their impact on the environment while caring for people involved in their supply chain.
Sustainability Goals and Strategies.
- Circularity Strategy: ASOS plans to publish a public-facing circularity strategy by 2023, aiming to embed circular design strategies by 2030. This includes ensuring that 100% of its own-brand packaging is made from certified sustainable or recycled materials and is widely recyclable by 2025.
- Human Rights Strategy: From 2023 onwards, ASOS commits to publishing a detailed human rights strategy and annual implementation reports. This is part of their broader goal to ensure transparency and ethical trade practices, including getting third-party brands to sign up to the Transparency Pledge and the ASOS Ethical Trade Policy by 2025. They aim to provide full public transparency for every ASOS own-brand product by 2030.
- Environmental Targets: ASOS has set ambitious environmental targets to be achieved by 2030. These include reaching net-zero carbon emissions and ensuring that 100% of their products are made from recycled or more sustainable materials, with a specific focus on using 100% responsible cotton by 2025.
- People and Planet: The Fashion with Integrity program underscores ASOS's commitment to being a company that not only cares for people but also works actively to reduce its environmental footprint. This initiative has been the guiding framework for their sustainability mission over the past decade.
Assessment
ASOS's approach to sustainability reflects a comprehensive strategy that encompasses environmental impact, ethical trade, human rights, and circularity. Their ambitious goals for 2030 demonstrate a commitment to continuous improvement in these areas.The focus on circular design and sustainable materials showcases their proactive approach to addressing the environmental challenges associated with the fashion industry.The emphasis on transparency and ethical trade practices highlights their commitment to responsible business conduct, not just within their own operations but also across their supply chain.
ASOS Environmental Rating is 4.2 out of 5.0
ASOS has an environmental rating score of 4.2, focusing in the following areas:
- Climate risk (4.2): This score reflects ASOS understanding and management of climate-related risks that could impact their operations. A score of 4.2 suggests an excellent awareness and management of these risks.
- Greenhouse Gas (GHG) Emissions (3.8): This score measures the emissions of greenhouse gases produced by ASOS and their efforts to reduce these emissions. A score of 3.8 indicates a strong effort is being put toward reducing emissions of greenhouse gases.
- Energy Management (4.9): This score demonstrates the effective management of energy consumption. s. A score of 4.9 indicates an excellent effort towards using sustainable energy sources.
- Land Use and Biodiversity (3.8): This score indicates how ASOS considers the impact of its operations on land use and biodiversity. A score of 3.8 suggests a strong level of commitment to minimising negative impacts.
- Materials Sourcing (3.7): Reflecting the sustainability and ethical considerations in sourcing materials for their products, a score of 3.7 suggests a strong effort in responsible sourcing of materials.
- Pollution Prevention and Management (5): This score represents the policies and impact of ASOS that aim to prevent and minimise pollution. ASOS has an excellent pollution prevention and management score.
- Waste Hazards and Management (4.2): A score of 4.2 assesses how ASOS handles waste and hazardous materials. This indicates an excellent waste management strategies and minimization of hazardous waste are in practice.
- Water Management (3.8): This score evaluates water usage and conservation efforts. A score of 3.8 suggests ASOS makes a strong effort in water management.
- Environmental Certifications (4.4): A score of 4.4 reflects an excellent commitment to obtaining environmental certifications, demonstrating adherence to recognized standards and practices in environmental stewardship.
- Environmental Opportunities (4): A score of 4 indicates that ASOS is good at identifying and taking advantage of opportunities to benefit the environment, potentially through innovative practices or sustainable growth strategies.
- Environmental Compliance (4.8): A score of 4.8 rates the level of compliance with environmental regulations and standards, indicating strong adherence to legal and ethical norms in environmental matters.
With a good environmental score, ASOS performs exceptionally well in certain areas like energy management, pollution prevention, and environmental compliance, however there are other areas, notably material sourcing and water management, where there is considerable room for improvement. This mixed performance indicates that while ASOS is making strides in environmental responsibility, there is still a journey ahead to achieve excellence across all facets of environmental impact.
ASOS Social Rating is 4.0 out of 5.0
ASOS has an overall social score of 4.0, which can be broken down into various components, reflecting the company's performance in relation to social challenges:
- Social-related Certifications (4.4): This score indicates an excellent level of certifications related to social issues.
- Community Engagement (4.4): This score assesses a company’s involvement in and contribution to local communities. A score of 4.4 indicates ASOS have a strong commitment to community engagement.
- Corporate Philanthropy (4.5): A score of 4.5 suggests ASOS make a significant contributions to philanthropic causes, demonstrating their measure of commitment to social responsibility through charitable endeavours.
- Data Privacy (2.4): This score is a measure of how vulnerable ASOS is to breaches related to personal and customer data. 2.4 indicates moderate ASOS Data Privacy protection policies.
- Products and Services (4.8): This score reflects the social impact of products and services provided by ASOS, indicating that they are designed and delivered with an excellent consideration for social responsibility.
- Diversity and Inclusion (5): This category indicates an excellent commitment level of ASOS to creating an inclusive and diverse workplace and culture.
- Health and Safety (4.3): The health and safety score reflects an excellent robustness of the measures in place at ASOS to protect the well-being of its employees and customers.
- Human Rights Abuses (3.8): This score reflects some risk of ASOS involvement in or exposure to human rights abuses in company operations.
- Labour Relations (3.3): This score reflects the company's relationship with its workforce, including aspects like union relations and employee treatment. A score of 3.3 indicates a strong level of performance in this area.
- Training and Education (5): ASOS training and education score represents an excellent the level of commitment to employee development through robust training and educational programs.
- Cyber Risk (3.5): This score assesses exposure to and management of cyber risks that may disrupt business operations. A score of 3.5 suggests a strong preparedness against cyber threats.
- Product Quality Management (3.8): This score reflects the quality and safety of current and future products and services provided by ASOS. A 3.8 indicates a strong standard in managing product quality.
- Supplier Engagement (3): This score assesses how ASOS engages with its suppliers on social issues. A score of 3 suggests a reasonable level of engagement and collaboration with suppliers in managing social risks.
ASOS demonstrates strong performance in several areas, such as diversity and inclusion, products and services, and training and education. However, there are notable areas for improvement, particularly in data privacy and supplier engagement. This performance indicates that while ASOS is making significant efforts in some social aspects, there is still room for improvement to achieve comprehensive excellence in social responsibility.
ASOS Governance Rating is 4.1 out of 5.0
ASOS has an overall governance score of 4.1, which encompasses various aspects of its corporate governance practices and structures:
- Business Resilience and Sustainability (4.1): This score reflects the capacity of ASOS to sustain its operations over the long term and adapt to business challenges. 4.1 suggests an excellent strategies for resilience and sustainability in the business model of ASOS.
- Corporate Compliance Behaviours (2.6): This score assesses adherence to laws, regulations, and internal policies. 2.6 shows a reasonable ASOS Corporate Compliance Behaviours.
- Governance-related Certifications (4.2): A score of 4.2 in this category reflects an excellent level of accountability and adherence to governance-related certifications.
- Board Accountability (4.8): This excellent score measures the accountability shown by the board of directors at ASOS relating to responsible governance, oversight of operations, and commitment to stakeholder interests.
- Business Ethics (3.7): This score evaluates ethical conduct in business operations. A score of 3.7 indicates a good standard of ethics.
- Business Transparency (4.3): This indicates the level of transparency in the business operations and disclosures of ASOS, suggesting a great communication with stakeholders and clear reporting of activities and financial information.
- Shareholder Rights (4.9): This score reflects an excellent company’s commitment to protecting the rights of shareholders, including ensuring fair treatment and providing appropriate information for shareholder decision-making.
With a moderate social score, ASOS's governance performance is mixed. While the company excels in areas like board accountability, shareholder rights, and governance-related certifications, there are significant gaps, especially in corporate compliance behaviors. This suggests that while ASOS has a strong framework in some areas of governance, there is a need for a more balanced approach to achieve high standards across all governance dimensions.
ASOS Supports These Sustainable Development Goals
So is ASOS sustainable?
Overall, ASOS has achieved a strong ESG score in comparison to its industry competitors, and this can be backed by its impressive repertoire of initiatives and certifications. It continues to move the fashion industry towards a more circular economy.
