The Hague, 20 August 2024 – ASN Impact Investors has sold all of its investments in the clothing industry. This decision was made in connection with the impact investor’s tightened policy. Moving forward, ASN Impact Investors will exclude all companies that produce fast fashion and do not take sufficient steps to achieve a circular business model. The block of shares sold had a value of approximately EUR 70 million.
ASN Impact Investors no longer invests in Hennes & Mauritz, Next, Marks & Spencer Group, Puma, Lojas Renner S.A., Gildan Active Wear, Asos, Kontoor Brands Inc., Asics Corporation, Inditex, Hanesbrands or VF Corporation, as none of these companies currently meet its stricter requirements. Previously, ASN Impact Investors invested in these companies through ASN Duurzaam Aandelenfonds, ASN Duurzaam Small & Midcapfonds and ASN Duurzaam Mixfondsen.
‘Despite our engagement efforts, the companies have failed to take sufficient steps to improve the situation in recent years,’ said San Lie, director of ASN Impact Investors. ‘These clothing companies are now also competing with Chinese players such as Shein and Temu, which produce garments even more quickly. This hinders sustainability, which is why we have taken the drastic decision to stop investing in them.’
San Lie continued, ‘In the financial sector – which includes banks, investment funds and pension companies – we have a huge responsibility to help build a more sustainable world. We can and must ensure that money goes to the right places and is used to build a more sustainable future. This divestment sends a strong signal to clothing companies and other investors that they really need to make headway when it comes to improving sustainability in the clothing industry. We need to be moving forwards, not backwards.’
In contrast to the fossil fuel industry, which ASN Impact Investors has excluded since its formation, the impact investor sees clothing as a basic necessity, both now and in the future. That is why ASN Impact Investors is not ruling out any future investments in the clothing industry. However, in order for such investments to be made, clothing companies will have to meet our tightened criteria and move towards a circular clothing industry.
Increasing negative impact clothing industry
Fast fashion is having an increasing negative impact on the climate, biodiversity and human rights,
and clothing companies are not taking sufficient steps to make their entire business model more sustainable. Research by the European Environment Agency shows that the clothing industry is estimated to be responsible for 10% of global greenhouse gas emissions.
In addition, the textiles industry causes the third-highest pressures on water and land use, through the use of paint and chemicals, among other things, and the release of microplastics. Finally, the clothing industry is far from circular: despite all the promises made by the industry, only 1% of discarded clothing is used to produce new garments.
About ASN Impact Investors
For the past 31 years, ASN Impact Investors’ investment funds and strategies have focused on companies, institutions and projects that seek to make a positive contribution in the areas of climate change, biodiversity and human rights in addition to pursuing financial returns. The fund management firm was established in 1993 and has €4.2 billion in assets under management (as at 30 June 2024).
Commitment to Living wage
In recent years, ASN Impact Investors has been committed to putting a living wage on the agenda and promoting a living wage in the clothing industry. The ASN Bank Expertise Centre for Sustainability conducted the engagement with clothing brands on behalf of ASN Impact Investors regarding the implementation of a living wage. In addition, ASN Bank has campaigned for European legislation for a living wage in the entire international production chains of clothing companies. ASN Bank continues to work towards legislation aimed at good working conditions in international production chains.