Asos demands transparency from suppliers

Asos is demanding greater transparency from the brands whose clothes it stocks in the wake of a "sweatshop" scandal engulfing the fashion industry.

The fast fashion retailer is asking its partners for a pledge to make their manufacturing sites public, ensure they know who all their suppliers are and share details of any supply chain risks with Asos.

Asos said that this programme will initially focus on the UK, after rival Boohoo was accused of using a "sweatshop" factory in Leicester to make some of its clothes.

Boohoo said it was not aware it was using the facility, following allegations in the Sunday Times that it was paying staff illegally low wages and flouting safety measures. Boohoo has denied any wrongdoing.

The Telegraph revealed last month that Asos had ended contracts with several clothing suppliers after it uncovered possible serious threats to workers' health, safety or human rights.

According to a 2018 report, the company's inspectors found major ethical breaches at almost a quarter of suppliers visited in 16 countries, including seven sites in the UK. Asos routinely inspects suppliers and works with them to uphold high standards.

Chief executive Nick Beighton said: "When we launched our third-party brand engagement programme at the start of 2018, we set out 'Five Minimum Requirements' that we wanted the brands we sold on site to sign up to by 2020.

"We’ve been working hard to support our brand partners to achieve this aim, and with the target now in sight, we want to be even more ambitious – and ask those brands that manufacture in the UK to bring their supply chains in line with our own, if they are not already.

"We believe the four commitments we have set out this week are critical enablers to improving sourcing standards across the UK. We hope that our brand partners will join us in striving to reach this goal, with the continued support of Asos, Fast Forward, and other leading lights in UK manufacturing.”

In the last financial year, third-party brands accounted for about 60pc of the products sold by Asos.

Similar commitments for its international partners will follow in the coming months, the firm added.

Asos shares jumped 7pc to £43.09 in afternoon trading. They had fallen as low as £10.50 during the market sell-off in mid-March.