The fashion sector has a lot to answer for and has been heavily criticised in relation to the environment and workers rights.
Ethical Consumer has also found that the companies behind many fashion brands, including the leaders of the fast fashion world, are either incorporated, or own high-risk subsidiaries in jurisdictions considered by Ethical Consumer to be tax havens.
Tax avoidance is worth a lot: according to the Tax Justice Network, an estimated that $500 billion in tax globally is avoided by multinational corporations annually.
It is important to state that the incorporation of a company in a tax haven does not necessarily mean that the company or group in question is avoiding tax. However, it does allow for the possibility of tax avoidance and so it is important to highlight it.
Ethical Consumer’s rating assesses whether a company is likely to be using tax avoidance strategies. If a company receives Ethical Consumer’s worst rating it has two or more high-risk company types, or its ultimate holding company, registered in countries on our current list of tax havens, which do not serve the local population.
For more details about our tax avoidance rating, see the bottom of this page.
Ethical Consumer rating for likely use of tax avoidance strategies
|Worst (whole mark lost)||Middle (half mark lost)||No marks lost|
|Amazon (Amazon.com Inc)||American Apparel (Gildan Activewear Inc)|| ASOS (ASOS Plc)
|Arcadia Group: Burton, Dorothy Perkins, Evans, Miss Selfridge, Topshop, Wallis (Taveta Investments Ltd)||Inditex: Zara, Pull & Bear (Inditex Group)||Forever 21 (Forever21 International Holdings Ltd)|
|ASDA (Wal-Mart Stores Inc)||H&M (H&M Hennes & Mauritz)|
|Boohoo, Pretty Little Thing, Nasty Gal (Boohoo Group Plc)||John Lewis (John Lewis Partnership Trust Ltd)|
|Fat Face (Bridgepoint Group Ltd)||Next Plc|
|Gap (Gap Inc)||Patagonia|
|Sainsbury’s (J Sainsbury Plc)||Uniqlo (Nippon Life Insurance)|
|Matalan (Missouri Topco ltd)||Marks & Spencer (Marks & Spencer Group Plc)|
|Missguided (Nakai Investments Ltd)||White Stuff (White Stuff group Ltd)|
|Monsoon (Balmain Invest & Trade Inc)|
|New Look (Brait SE)|
|Primark (Associated British Foods)|
|Tesco (Tesco Plc)|
|TK Maxx (TJX Companies Inc)|