Boohoo Sparks Fast Fashion Ethics Question for ESG Funds

The transcript discusses the underpayment of wages in the fashion industry, particularly in fast fashion, and its implications for ESG investing. It highlights the challenges of investing in fast fashion due to its reliance on cheap, disposable products and labor exploitation, especially of women. The discussion includes investor reactions, divestment trends, and the difficulty of changing fast fashion business models. It concludes by suggesting sustainable alternatives in the fashion value chain.

What are the two main characteristics of fast fashion that conflict with sustainability?

• Eco-friendly and ethical

• Expensive and durable

• High quality and long-lasting

• Cheap and disposable

Why has there been a recent backlash against fast fashion investments?

• Due to increased demand for fast fashion

• Because of ethical concerns and underpayment issues

• Because of improved working conditions

• Due to high profits

What recent event in the UK has brought attention to fast fashion's labor practices?

• A celebrity endorsement

• A new fashion trend

• A factory collapse

• Underpayment issues in Leicester

What is a major challenge in changing the business model of fast fashion companies?

• High production costs

• Dependence on being cheap and disposable

• Limited market reach

• Lack of consumer interest

What alternative does the speaker suggest for ESG investors interested in the fashion industry?

• Investing in high-end luxury brands

• Investing in fast fashion

• Investing in sustainable fashion companies

• Avoiding the fashion industry altogether