ASOS taps TrusTrace to help meet ESG targets

Fast fashion giant ASOS has turned to traceability specialist TrusTrace to give it more visibility over its supply chain and meet its sustainable development goals.

The alliance will provide ASOS with end-to-end supply chain visibility down to the farm level (tier 5), product level traceability, centralised compliance documentation, and an analytics dashboard for environmental, social, and governance (ESG) reporting. According to a joint statement from the two companies.

ASOS was set up 25 years ago as As Seen On Screen, initially selling clothing and accessories sported by public figures in the media before eventually expanding into one of the leading fast fashion companies.

The company grew swiftly on the back of its business model, selling its own lines as well as other companies' ranges under license, such as Adidas and Mango, all while making it easy for customers to buy items and return them if they were not suitable.

Latterly, however, it has come under pressure from upstart rivals like China's Shein and Temu, offering cut-price competition. Sales declined 13 per cent in the first half of this year to £1.29 billion ($1.73bn), although a shift in business focus to more-profitable full-price sales and a 'test and react' model to strip out underperforming lines meant underlying earnings rose nearly 59 per cent to £42.5m.

One part of ASOS' drive to differentiate from its rivals has been to try to position itself as a sustainable force within fast fashion. For example, in 2021 it partnered with the Centre for Sustainable Fashion to publish the Circular Design Guidebook, followed that a year later with the launch of a 'circular design collection'.

Since then, competitive pressures appear to have driven the sustainability objectives down the list of priorities a bit, although ASOS has maintained a 'Fashion with Integrity' strategy, with its latest version unveiled in 2024.

The policy has three pillars, namely Planet (reducing impact on climate and nature), Product (ensuring its range is circular and more sustainable), and People (safeguarding the human rights of its clothes producers and supporting diversity, equity, and inclusion for communities and customers.

That's easier said than achieved, of course, and last year ASOS – along with rivals Boohoo and George at Asda – agreed to tighten up policies on 'green' claims after a two-year investigation by the UK Competition and Markets Authority (CMA).

Tapping into TrusTrace artificial intelligence-powered platform could make it easier to fulfil those commitments.

"Our partnership with TrusTrace is a key milestone in our updated Fashion with Integrity programme,” said Elena Martínez Ortiz, head of product at ASOS.

“TrusTrace enables us to improve product traceability, helping us meet compliance standards, understand and address risks, and boost resilience in our supply chain by supporting our suppliers to implement improvements," she added.