ASOS plc

Is ASOS ethical?

Our research highlights several ethical issues with Asos, including accusations of greenwashing and animal welfare concerns. 

Below we outline of some of these issues. To see the full detailed stories, and ASOS overall ethical rating, please sign in or subscribe.

People

Asos receives 50/100 in Ethical Consumer’s rating for workers’ rights.

Its Code of Conduct outlines crucial expectations for suppliers, including payment of living wages and no discrimination. In 2018, Asos published a comprehensive list of its suppliers, making a call for more transparency in the fashion industry.

The company has also made active steps to address abuses in difficult areas, for example funding a Migrant Resource Centre in Mauritius to enable workers to raise grievances and access remedy, targeting modern slavery risks.

However, Asos has also faced criticism in its supply chains. In December 2021, the Guardian published an article reporting that, “More than 400,000 garment workers in Karnataka have not been paid the state’s legal minimum wage since April 2020, according to an international labour rights organisation that monitors working conditions in factories.”

In January 2022, the human rights organisation Business & Human Rights Resource Centre (BHRRC) invited 22 brands and retailers sourcing garments from Karnataka to respond, which included Asos. Asos said that it had contacted all suppliers and planned to conduct on-the-group site visits and workers’ interviews in the coming months. 
 

Environment

Asos reports in detail on its climate impacts, including setting targets for its entire supply chain in line with international climate goals. The company says that it is increasing its use of renewable energy and focusing on more sustainable materials.

Unfortunately, though, Asos is not without criticism when it comes to environmental issues. The company received 0/100 in Ethical Consumer’s sustainable materials rating. In 2022, the UK regulator the Competition and Markets Authority launched an investigation into whether its eco-friendly and sustainability claims constituted greenwashing. In March 2024, the regulator forced Asos, along with Boohoo and George, to change their green claims, including dropping the unexplained use of terms like ‘eco’, ‘responsible’, or ‘sustainable’.

Animals

Asos receives 0/100 in Ethical Consumer animals rating. The company and its brands, Topshop, Topman and Miss Selfridge, use wool, leather and animal skin in their products, and do not have adequate animal welfare policies, according to Ethical Consumer’s rating.

In 2023, an investigation by the advocacy groups Collective Fashion Justice and World Animal Protection, found that Asos and several other brands had inaccurately labelled real animal feathers as ‘faux’ or synthetic on a number of products.

Politics and finances

When it comes to financial ethics, Asos has a mixed track record.

In 2022, the company paid its highest earning director £1,726,859. Ethical Consumer considers any payment over £1 million to be excessive.

Asos has published a tax strategy in 2023. However, it only prohibits "aggressive" use of tax havens, and "wholly artificial" tax structures, and does not explain how these are defined.

The text above was written June 2024, and most research was conducted in November and December 2023.