Thirteen Article 9 funds hold fast fashion brands under government investigation

'Fast fashion does not help society'

Fund houses making disclosures under SFDR could be failing to carry out their obligations to investors, as data seen by Investment Week reveals funds with sustainable objectives continue to hold high risk, fast fashion stocks.

As the Competition and Markets Authority's greenwashing investigations into fast fashion houses ASOS and Boohoo continues, Morningstar data revealed that 13 SFDR Article 9 funds remain invested in either or both retailers. Over the years, both brands have launched lines claiming to be environmentally conscious and made from recycled materials. ASOS and Boohoo among firms investigated over greenwashing claims Boohoo has also been the subject of scrutiny by human rights groups and in July 2020 was at the centre of a Labour Behind the Label report detailing labour rights abuses, worke...