From greenwashing to net zero

ASOS was founded in 2000 by Nicholas Jon Robertson and Quentin John Griffiths in London (Forbes, 2022). The brand is also considered one of the giants in the fast-fashion industry, now selling hundreds of third-party brands, including their own, and ships to all 196 countries (fashionabc, 2021).

ASOS have faced a lot of scrutiny over their contribution to fast-fashion and its negative effect on the environment. They have since listened to this feedback and created plan to ensure they are net zero by 2030. They started future proofing by listening to what their consumers want from a fashion retailer. Future proofing is the process of anticipating the future to minimise the shocks and stresses of future events (MGI, 2016). Much like H&M, ASOS has previously undergone investigations over greenwashing claims for their Responsible edit. CMA investigated this edit and found that not only were their own garments not meeting suitability standards, they were including garments from other brands in the edit who were also not meeting these standards. In response to this Asos removed the edit and any mention of it from their webpage. They expressed that they were working closely and proactively with CMA, to see how they can meet the standards to be able to call the line sustainable (Fresen, 2022).

Since then, they have listened to CMA and consumer feedback and launched their own climate action plan, where their goal is to reach net zero by 2030. The plan is called Fashion with Integrity and has 4 key point areas:

· Be net zero – they aim to be carbon neutral by 2025 and net zero by 2030

· Be more circular – they aim to ensure that all Asos branded products and packaging be made using recycled materials.

· Be transparent – they plan to release a report annually on their human rights strategy and implementation.

· Be diverse – they promise to ensure at least 50% representation from females and over 15% ethnic minority representation, at every leadership level within their company.

(Asos 2022a).

They have already made huge strides since launching Fashion with Integrity in 2020. The partnered with companies and charities to ensure that all the garments sold on their webpage, whether they are Asos own brand or other brands, meet a certain criteria in order to be sold on their webpage. The criteria includes sustainability efforts, animal welfare, safety, transparency, and anti-slavery. They have also begun to change the materials they use to make their garments, to recycled materials in efforts to be more sustainable (Asos 2022b).

Many studies have been taken to understand consumer behaviour in relation to sustainable purchases. SmartEstEnergy found that 4 out of 5 people would be more likely to buy from a brand that has a positive approach to the environment. Plus, 87% of people want brands to act now in order to encourage future sustainability (Recycling Lives, 2019). Another study by Deloitte found that there was a 40% rise in the amount of people shopping for second-hand goods, including clothing, from charities and online marketplaces (Deloitte, 2022). Lastly, a study from Simon-Kucher & Partners, concluded that 33% of the UK population would be willing to pay more for sustainable products and that 86% said they have become greener with their purchases (Consultancy.uk, 2021). These studies show that there is a push from consumers for brands to make real efforts to become more sustainable.

SWOT analysis of ASOS’ Fashion with Integrity programme

Strengths

Asos have clearly listened to their consumers and what they want from the brand and are making real efforts to meet those demands. They have recognised that they have not been as sustainable has they claimed to have been but are in the process of rectifying this. They have a clear programme that shows what steps they are going to take, that everyone can access. It is brave to make so many promises publicly, they will need to stick to them in order to retain trust and respect from their consumers.

Weaknesses

One of the weaknesses Asos faces is their timeline of action, consumers want to buy from sustainable brands now, not necessarily brands that promise to be sustainable in 10 years’ time. The climate crisis is happening now and is only getting worse each year. Consumers may not want to wait around for them to become sustainable. Instead, they may take their purchases to rival brands that are already sustainable or are further along their sustainability journey. The statistics above show that consumers are more willing to buy purchases from brands that are sustainable, it is unclear whether Asos can currently fit within this category. They need to push their Fashion with Integrity plan with their marketing campaign to show consumers that they are actively trying to be more sustainable.

Opportunities

There are many opportunities from Asos now that they have embarked on this journey to net zero. They can grow their consumer base and reach people that will only buy sustainable products, make positive changes for the environment and ultimately future proof their business. Asos has shown they are working with a number of companies to ensure they meet these goals and are being transparent with the steps they are taking.

Threats

Threats that Asos face are that of their competitors and being able to keep their promises. There are sustainable clothing brands outside of the fast-fashion industry that are big competitors for Asos such as Afends, whose garments are made of 100% eco-conscious materials (Robertson, 2019). They also have to compete with brands such as Vinted and Depop, marketplaces where consumers buy second hand clothes. As the Deloitte study showed, there has been a big rise in people opting to shop on marketplaces rather than with fashion retailers. They also have to ensure that they meet all of their goals in order to retain trust within consumers.

Retaining trust can be difficult when the brand relies on third-party brands as a majority of their income. They need to encourage the third-party brands to make the same steps, in order to continue to be sold on their webpage. Although they have stated they have a list of requirements these brand shave to meet in order to be in partnership with them, this list does not meet the criteria for their 2030 goals. Asos will need to encourage these brands to reach net zero to continue their partnerships. They should also focus on their own branded items to make this their primary source of income.

Currently you cannot say that Asos is a sustainable company, however you may be able to in 2030 if they meet their goals of being net zero. They are clearly making big strides to be able to label themselves as sustainable and future-proof their company. Due to the ongoing climate crisis, sustainability will likely become a large factor in brands being able to future-proof. Many brands can learn from Asos and their transparency through this process, as well as their willingness to learn and improve. It is not clear yet whether sustainability and fast fashion can eventually work hand in hand, if they can, the term fast fashion may have to be redefined.

References

Asos (2022a). ASOS Announces Ambitious New 2030 ESG Goals. [online] ASOS plc. Available at: https://www.asosplc.com/news/asos-announces-ambitious-new-2030-esg-goals/.

Asos (2022b). RESPONSIBLE FASHION: OUR JOURNEY TO A MORE SUSTAINABLE FUTURE. [online] Asos. Available at: https://www.asos.com/responsible-fashion/.

Consultancy.uk (2021). Third of consumers willing to pay more for sustainable products. [online] www.consultancy.uk. Available at: https://www.consultancy.uk/news/29424/third-of-consumers-willing-to-pay-more-for-sustainable-products.

Deloitte (2022). Shifting sands: Are Consumers Still Embracing sustainability? [online] Deloitte. Available at: https://www2.deloitte.com/uk/en/pages/consumer-business/articles/sustainable-consumer.html.

fashionabc (2021). ASOS. [online] fashionabc. Available at: https://www.fashionabc.org/wiki/asos/.

Forbes (2022). ASOS | Company Overview & News. [online] Forbes. Available at: https://www.forbes.com/companies/asos/?sh=1512d0ce3cb9 [Accessed 30 Oct. 2022].

Fresen, N. (2022). Asos removes ‘Responsible Edit’ amid greenwashing probe | Retail Bulletin. [online] Retail Bulletin | Daily UK Retail News. Available at: https://www.theretailbulletin.com/fashion/asos-removes-responsible-edit-amid-greenwashing-probe-30-08-2022/.

MGI (2016). My top 4 tips to future proof your business. [online] MGI Auckland. Available at: https://mginz.co.nz/growth/top-4-tips-future-proof-business/ [Accessed 30 Oct. 2022].

Recycling Lives (2019). Report Reveals That 81% of People Prefer to Buy from Sustainable Sellers. [online] Recycling Lives. Available at: https://www.recyclinglives.com/news/general/report-reveals-81-people-prefer-buy-sustainable-sellers.

Robertson, L. (2019). How Ethical is ASOS? [online] Good On You. Available at: https://goodonyou.eco/how-ethical-is-asos/.