The Hague, The Netherlands – 20 August, 2024 – Anyone who invests in ASN funds no longer invests in the clothing industry. Because ASN Impact Investors – the company that manages the ASN Investment Funds – has sold all investments in the clothing industry. The reason for this is that the clothing companies are not doing enough to become more sustainable and are not using a circular business model.
The fund manager invested in international clothing companies and brands through the ASN Sustainable Equity Fund, ASN Sustainable Small & Midcap Fund and the ASN Sustainable Mix Funds. Think of Hennes & Mauritz, Zara, Puma, and Asics.
Too little progress made
"In recent years, we have conducted extensive research into the clothing industry and have entered into discussions with clothing companies on several occasions. Despite this, too little progress has been made. The competition with Chinese parties such as Shein and Temu does not help with this," says San Lie, director of ASN Impact Investors. Because the companies are not taking enough steps to become more sustainable, it has been decided to stop investing in the clothing industry.
"With our investments, we want to make sure that the money rolls in the right direction. Towards a more sustainable future," San Lie continues. "With the sale of the investments, we are sending a strong signal to the clothing companies to really speed up their efforts to become more sustainable. We don't have to go backwards, we have to move forwards."
ASN Impact Investors has been excluding investments in the fossil fuel industry since its inception. The impact investor, however, sees clothing as a basic need. Now and in the future. San Lie: "This means that we will be able to invest in the clothing industry again in the future. But for that to happen, the companies have to be on their way to a circular clothing industry."
Commitment to a living wage
In recent years, ASN Bank has been committed to putting a living wage on the agenda and promoting a living wage in the clothing industry. ASN Bank's Sustainability Expertise Centre was commissioned by ASN Impact Investors to engage with clothing brands on the implementation of a living wage. In addition, ASN Bank made efforts to implement European legislation to enable clothing companies to earn a living wage. We remain committed to legislation aimed at good working conditions in international production chains.
Kirsten Kossen, human rights expert at ASN Bank: "Despite the steps taken in the field of living wages, the clothing industry is not making enough efforts to become more sustainable. In addition to the signal that we are sending to clothing companies and the financial sector, new laws and regulations will also be needed to get the clothing industry to take action."
