The ESG scandal that engulfed UK fast fashion brand Boohoo last summer was dubbed one of the “worst” to hit the UK by one British MP.
Shocking revelations about practices in the online retailer’s UK supply chain around worker pay and conditions resulted in its share price plummeting from £413 on 19 June 2020 to £229 on 17 July 2020 (it’s currently trading at around £309).
The scandal prompted investment manager Standard Life Aberdeen to drop the company from its impact and responsible investment funds – although questions were asked by some commentators at the time what a fast fashion brand such as Boohoo was doing in ESG funds in the first place.
But despite the controversy, Boohoo’s share price has recovered as online sales during lockdown boomed. And last week - at the first annual vote since the scandal broke - just 12% of investors opposed the reelection of Boohoo’s co-founder and Executive Director, Carol Kane, who served as CEO of …