Burberry and Hugo Boss first to be assigned sustainability ratings by Standard Ethics
Burberry and Hugo Boss are the first among a selection of European fashion houses being analysed by the agency Standard Ethics prior to the launch of the SE European Fashion&Luxury Index.
The Index, due to be published in the first semester of 2023, will be reviewed every six months at end of March and the end of September.
Sustainability has become a priority for many shoppers and retailers alike. There is a growing pressure to align with the international indications established by organisations including the EU, UN and OECD, and this has ultimately accelerated the positioning of cutting-edge fashion brands and groups.
The SE European Fashion & Luxury Index aims to provide an overview of the level of sustainability within the fashion industry and to assess its progress. The analysis will allow companies to compare their current sustainability strategies with those of other players in the sector and consider ways of improving their ESG approach in line with global guidelines.
The ratings will be classified as follows:
On 15 February, Standard Ethics issued an “EE-”1 (adequate) Corporate Standard Ethics Rating (SER) to Hugo Boss.
According to the Standard Ethics methodology, the analysts' overall assessment is positive. The global fashion brand has adopted some ESG policies, which take into consideration the main issues afflicting the sector. Its socio-environmental targets are in line with international requirements.
In addition, today, the Standard Ethics assigned the Corporate Standard Ethics Rating (SER) “EE”1 (strong) to Burberry.
Burberry Group PLC's ESG strategy appears to be well coordinated, with adequate governance of sustainability.
Similarly to the case with Hugo Boss, analysts would welcome improvement achievement of gender equality within Burberry's Board of Directors. In addition, the group could make a clearer distinction between ethical-philanthropic commitments and those regarding sustainability - a science-based matter.