Standard Ethics issues first sustainability ratings to Burberry and Hugo Boss

Standard Ethics, the self-regulated sustainability rating company, has announced that Burberry and Hugo Boss are among the first fashion brands to be analysed and rated for the SE European Fashion and Luxury Index.

In a press release, Standard Ethics assigned the Corporate Standard Ethics Rating (SER) “EE” to the British heritage label Burberry. The rating indicates “strong” sustainability compliance.

Burberry’s ESG strategy appears to be “well coordinated,” explains Standard Ethics in the rating, and that “there is an adequate governance of sustainability, an integrated extra-financial reporting and medium- to long-term environmental objectives that are shared on a global scale”.

While Hugo Boss was issued with an “EE-” rating, indicating “adequate” sustainability compliance, but added that the according to its methodology, the analysts' overall assessment “is positive”.

Standard Ethics commenting on Hugo Boss, added: “The Company has adopted ESG policies which take into consideration the main issues afflicting the sector (among others, production chain and quality control, but also attention to local communities and the circular economy); its socio-environmental targets are in line with international requirements, and extra-financial reporting reflects industry best practices.”

The rating is based on sustainability and governance guidelines published by the United Nations, the Organisation for Economic Co-operation and Development (OECD) and the European Union. Scores range from F for the lowest level of compliance to EEE for full compliance, with the Standard Ethics adding that all ratings equal to or higher than “EE-” indicate “good compliance”.

The SE European Fashion and Luxury Index, which aims to provide an overview of the level of sustainability within the industry and to assess its progress to date, is due to be published in the first half of 2023 and will be reviewed every six months at end of March and the end of September.

Other fashion companies shortlisted to be on the index include Adidas, Capri Holdings, Compagnie Financière, H&M, Kering, LVMH, Moncler, Next, Prada, Puma, and Superdry.