British online retailer Boohoo is facing pressure from MPs to link its bonus schemes for executives to its pledges on workers’ rights and environmental sustainability.
The Environmental Audit Committee (EAC) has asked Boohoo to update on the commitments the retailer had made to EAC last December.
In this regard, EAC has asked the e-tailer to link its long-term remuneration incentives with improvements in its supply chain, which could include not only the welfare of its workers, but also environmental sustainability of its products.
It is worth mentioning that the long-term remuneration incentives value £150 million to big bosses of the Group and are based on growth in share prices.
Importantly, EAC has asked Boohoo to also update about the 64 supply chain partners that the online retailer, reportedly, plans to ditch owing to failure to comply with Boohoo’s new code of conduct.
The new code of conduct was started last year after Boohoo was mired in major controversy over human right violation cases found in its Leicester-based factories amidst the pandemic crisis.
Though EAC has recognised Boohoo’s pledge to clean up the mess, it now wants the online retailer to update on all issues including transparency in supply chain.
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