UK watchdog secures changes from Asos, Boohoo, Asda on green claims
Millions of consumers can expect to see accurate and clear green claims when shopping for fashion items with Asos, Boohoo and George at Asda, Britain’s competition watchdog said.
The Competition and Markets Authority (CMA) said the companies had signed formal agreements to change the way they display, describe, and promote their green credentials.
The CMA launched an investigation into ASOS, Boohoo and George at Asda in July 2022, having identified concerns of possible greenwashing during an initial review of the fashion sector.
Sarah Cardell, the CMA’s chief executive, said:
Following our action, the millions of people who shop with these well-known businesses can now have confidence in the green claims they see.
This also marks a turning point for the industry. The commitments set a benchmark for how fashion retailers should be marketing their products, and we expect the sector as a whole – from high street to designer brands – to take note and review their own practices.
The undertakings include:
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Green claims: ASOS, Boohoo and George at Asda must ensure all green claims are accurate and not misleading, in plain language
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Statements regarding fabrics: Statements made about materials in green ranges must be specific and clear, such as ‘organic’ or ‘recycled’, rather than ambiguous – using terms like ‘eco’, ‘responsible’, or ‘sustainable’. The percentage of recycled or organic fibres must be clearly displayed and easy for customers to see.
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Criteria for green ranges: The criteria used to decide which products are included in environmental collections – such as ASOS’s former ‘Responsible edit’, Boohoo’s ‘Ready for the Future’ range, and George at Asda’s ‘George for Good’, and any further ranges – must be clearly set out and detail any minimum requirements.
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Use of imagery: The firms must not use ‘natural’ imagery – such as green leaves – logos, or icons in a way that suggests a product is more environmentally friendly than it actually is.
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Product filters: Search filters must be accurate, only showing items that meet the filter requirements – for example, if a consumer uses a filter to show ‘recycled’ trousers, only trousers made from mainly recycled materials should be shown.
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Environmental targets: Any claims made to consumers about environmental targets must be supported by a clear and verifiable strategy, and customers must be able to access more details about it. Such information should include what the target is aiming to achieve, the date by which it is expected to be met, and how the company in question will seek to achieve that target.
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Accreditation schemes: Statements made by the companies about accreditation schemes and standards must not be misleading. For example, statements must make clear whether an accreditation applies to particular products or to the firm’s wider practices.
Key events
DS Smith shares rise after new takeover offer
Shares in the British packaging group DS Smith rose after it announced that it is in discussions with a New York-listed paper producer over a £5.7bn takeover offer.
London-based DS Smith confirmed that it is in talks with International Paper, the largest paper and pulp company in the world, over an all-stock offer from the US company, which gatecrashed an agreed £5.1bn deal between DS Smith and Mondi, another London-listed group.
DS Smith shares rose 7.4% to 386.50p today.
Under the terms of the proposal, DS Smith shareholders would receive 0.1285 shares in International Paper for each share they own in DS Smith. If the proposed deal goes through, DS Smith shareholders will own about 33.8% of the combined company.
The proposal values each DS Smith share at 415p, based on based on International Paper’s closing price of $40.85 on Monday, the UK company said.
The offer from International Paper, based in Memphis, Tennessee, represents a premium of 48% to DS Smith’s closing price on 7 February, the day before Mondi, based in Weybridge, announced its preliminary bid.
DS Smith said:
The board acknowledges the strategic merits and potential for value creation through a combination with International Paper. Accordingly, the board is progressing its discussions with International Paper regarding the proposal.
The CMA has also issued an open letter to the sector, urging fashion retailers to review their claims and practices in light of the changes, which set a benchmark for the industry.
UK watchdog secures changes from Asos, Boohoo, Asda on green claims
Millions of consumers can expect to see accurate and clear green claims when shopping for fashion items with Asos, Boohoo and George at Asda, Britain’s competition watchdog said.
The Competition and Markets Authority (CMA) said the companies had signed formal agreements to change the way they display, describe, and promote their green credentials.
The CMA launched an investigation into ASOS, Boohoo and George at Asda in July 2022, having identified concerns of possible greenwashing during an initial review of the fashion sector.
Sarah Cardell, the CMA’s chief executive, said:
Following our action, the millions of people who shop with these well-known businesses can now have confidence in the green claims they see.
This also marks a turning point for the industry. The commitments set a benchmark for how fashion retailers should be marketing their products, and we expect the sector as a whole – from high street to designer brands – to take note and review their own practices.
The undertakings include:
-
Green claims: ASOS, Boohoo and George at Asda must ensure all green claims are accurate and not misleading, in plain language
-
Statements regarding fabrics: Statements made about materials in green ranges must be specific and clear, such as ‘organic’ or ‘recycled’, rather than ambiguous – using terms like ‘eco’, ‘responsible’, or ‘sustainable’. The percentage of recycled or organic fibres must be clearly displayed and easy for customers to see.
-
Criteria for green ranges: The criteria used to decide which products are included in environmental collections – such as ASOS’s former ‘Responsible edit’, Boohoo’s ‘Ready for the Future’ range, and George at Asda’s ‘George for Good’, and any further ranges – must be clearly set out and detail any minimum requirements.
-
Use of imagery: The firms must not use ‘natural’ imagery – such as green leaves – logos, or icons in a way that suggests a product is more environmentally friendly than it actually is.
-
Product filters: Search filters must be accurate, only showing items that meet the filter requirements – for example, if a consumer uses a filter to show ‘recycled’ trousers, only trousers made from mainly recycled materials should be shown.
-
Environmental targets: Any claims made to consumers about environmental targets must be supported by a clear and verifiable strategy, and customers must be able to access more details about it. Such information should include what the target is aiming to achieve, the date by which it is expected to be met, and how the company in question will seek to achieve that target.
-
Accreditation schemes: Statements made by the companies about accreditation schemes and standards must not be misleading. For example, statements must make clear whether an accreditation applies to particular products or to the firm’s wider practices.
Introduction: China’s president Xi meets US bosses to mend ties
Good morning, and welcome to our rolling coverage of business, the financial markets and the world economy.
China’s president Xi Jinping has met a group of US chief executives in Beijing amid efforts to mend ties frayed by geopolitical and trade tensions between the two countries.
The business bosses include private equity firm Blackstone’s Stephen Schwarzman and the semiconductor company Qualcomm’s Cristiano Amon. China is keen to show it welcomes foreign businesses, restore confidence in the economy amid a shaky recovery and keep relations with the US stable.
State broadcaster CCTV named a number of executives present at the meeting and said Xi took a group photo with them before the event.
Other attendees include Raj Subramaniam, chief executive of the transport firm FedEx; Evan Greenberg, CEO of the insurer Chubb; Stephen Orlins, president of the National Committee on US-China Relations; Craig Allen, president of the US-China Business Council; and Mark Carney, chairman of Bloomberg, according to CCTV.
Japan’s finance minister has issued its strongest warning to date on the weaker yen, as the currency sank to a 34-year low against the dollar, saying authorities could take “decisive steps” – language previously used before intervention.
Shunichi Suzuki previously used the phrase “decisive steps’ in the autumn of 2022 when Japan last intervened in the market to stem the slide in its currency.
The yen traded at 151.97 per dollar, down 0.2% and weaker than the 151.94 level when Japanese authorities stepped in during October 2022 to buy the currency.
The Bank of Japan governor, Kazuo Ueda, said it was important to support the economy with easy policy for the time being, a week after the central bank moved away from negative interest rates, which it had for eight years.
He told parliament:
Japan’s medium to long-term inflation expectations, and trend inflation, are still in the process of heading towards 2%.
He said the likelihood of achieving the BOJ’s 2% inflation target was high as growth in average real wages is likely to turn positive soon.
The Agenda
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8.30am GMT: Sweden’s Riksbank interest rate decision
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10.30am GMT: Bank of England financial policy committee releases its March summary and report on risks to financial stability
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11am GMT: US MBA Mortgage applications for week of 22 March
