ASOS plc (ASOS) 2024年年度報告「LSE」.pdf

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1、ASOS Plc Annual Report and Accounts 2024STRATEGIC REPORTGOVERNANCE REPORTFINANCIAL STATEMENTS02ASOS PLC ANNUAL REPORT AND ACCOUNTS 2024Our mission is to be the worlds number one fashion destination for fashion-loving 20-somethings.We are customer-firstOur behavioursWe are in it togetherWe are honest

2、 and transparentWe bring our authentic self to workWe inspireWe move fast and innovate at speedWe keep it simple and lead with dataWe take ownership and aim for excellenceOur valuesCreativeDeliverWe challenge each other(with kindness)We aim highBraveAuthenticASOS PLC ANNUAL REPORT AND ACCOUNTS 20240

3、3STRATEGIC REPORT02 Our mission,values and behaviours03 Contents04 ASOS brands and labels06 Partner brands08 2024 highlights 09 Chairs statement10 Chief Executive Officers statement12 Business model14 Strategic review 18 Our people22 Stakeholder engagement28 Fashion with Integrity 34 Task Force on C

4、limate-related Financial Disclosures46 Streamlined Energy&Carbon Reporting54 Key performance indicators56 Financial review62 Risk management at ASOS 64 Principal risks and opportunities70 Long-term viability statementGOVERNANCE REPORT72 Board of Directors76 Management Committee78 Corporate Governanc

5、e Report90 Nomination Committee Report94 Sustainability Committee Report96 Audit Committee Report102 Directors Remuneration Report104 Annual Report on Remuneration116 Directors Report119 Non-financial and sustainability informationstatement120 Statement of Directors responsibilitiesFINANCIAL STATEME

6、NTS122 Independent Auditors Report to the members of ASOS Plc130 Consolidated Income Statement131 Consolidated Statement of Comprehensive Income132 Consolidated Balance Sheet133 Consolidated Statement of Changes in Equity134 Consolidated Cash Flow Statement135 Notes to the Consolidated Financial Sta

7、tements180 Company Balance Sheet181 Company Statement of Changes in Equity182 Notes to the Company Financial Statements186 Related Undertakings of the ASOS Group188 Alternative Performance Measures(APMs)194 Company Information195 Shareholder InformationWe believe in a world where you have the freedo

8、m to explore andexpress yourself without judgement,no matter who you are or where youre from.That is why our purpose is to give fashion-loving 20-somethings the confidence to be whoever they want to be.STRATEGIC REPORTGOVERNANCE REPORTFINANCIAL STATEMENTS04ASOS PLC ANNUAL REPORT AND ACCOUNTS 2024ASO

9、S brands and labelsOur largest in-house brand,designed and sold exclusively for ASOS.com.Serving up all the major trends of the season for our fashion-loving 20-somethings,this is the go-to destination for your fashion fix.We create trends,head to toe looks and the ultimate pieces for your wardrobe.

10、As our in-house premium brand,we create timeless essentials andunique occasion pieces with afeminine slant.From the perfect white tee to floor-sweeping showstoppers,everything is designed,draped and pattern cut in-house.Elevated but accessible too,in sizes 4-30.Its all in the detail.Bold embellishme

11、nts,hand-painted prints,clean lines,premium fabrics.Craftsmanship and considered design run through every piece.Asos Luxe is serving elevated glam looks for those“standout”moments.Whether its a birthday outfit or a poolside look ASOS Luxe is the go-to brand for making a showstopping entrance.ASOS PL

12、C ANNUAL REPORT AND ACCOUNTS 202405Leading fashion authority.Iconic brands deeply rooted in fashion and culture alike.The creative direction ensures the brand heritage is cherished and evolved into the new era,remaining relevant to our customers.Miss Selfridge is about embracing your vibe with effor

13、tless feminine dreamy casual silhouettes,designed for a new generation.Soft girl meets blends of heritage boho with a fresh girl next door aesthetic.We take the latest trends and make them fun,wearable and a representation of you.Weekend Collective is the brand that personifies off-duty glam leisure

14、wear.Our range of quality everyday essentials are perfect for the“it”girl of today,focusing on signature logo branded pieces.A brand for the coming of age,created for a new generation,pioneered for everyone.Collusion is diverse,authentic,fashion creditable and is competitively priced,delivering good

15、 quality.At the heart of the brand is inclusivity.4505 is our in-house activewear brand that covers your everyday uniform of workout essentials across studio,gym,run and winter sports.Inspired by the latest workout trends and culture,our fashion forward active product is designed for functionality,p

16、erformance,andversatility its everything you need to keep you motivated,looking great,and feeling great on your wellness and fitness journey.Throwing it back to past eras,inspired by nostalgia,encouraging individualism and creativity.Each piece is created to be loved,worn and worn again,filling your

17、 wardrobe with eclectic favourites and forever pieces.STRATEGIC REPORTGOVERNANCE REPORTFINANCIAL STATEMENTS06ASOS PLC ANNUAL REPORT AND ACCOUNTS 2024Partner brandsASOS PLC ANNUAL REPORT AND ACCOUNTS 202407Face+BodySTRATEGIC REPORTGOVERNANCE REPORTFINANCIAL STATEMENTS08ASOS PLC ANNUAL REPORT AND ACCO

18、UNTS 2024Revenue2.9bn2023:3.5bnOperating(loss)(331.9m)2023:(248.5m)2024 highlights67.2m2023:83.7mTotal orders2023:40.33Net average basket value41.072023:2.7bn2.3bnTotal visitsWe invested in impactful marketing activity including our first-ever ASOS pop-up shop,as well as brand partner and ASOS Media

19、 Group initiatives with the likes of adidas,Nike,On Running,and Sol de Janeiro.Plus,weve grown our gifted influencer base to c.1,500 influencers across the UK,US and EU all helping us grow our connection with our customers.We rolled out AI tools to improve productivity and efficiency across the busi

20、ness including better demand forecasting,data-driven decision-making,and testing a customer-facing AI Stylist all adding to our use of AI for the billions of product recommendations we deliver to our customers every day.We enhanced our customer experience with improvements to sizing,how we display p

21、roducts,and greater use of videos and 360 imagery.We reduced our returns rate,while continuing to make free returns available to all customers in all our core markets subject to our fair use policy.Reaching our Reaching our community of community of fashion loversfashion loversWe launched our new Bu

22、y the Look feature,allowing customers to shop for entire outfits curated by ASOS in one click.Over 124,000 Looks have been created to date,with c.14 million unique visitors to ASOS interacting with the feature since itlaunched,driving higher basket size and value.Building a destination for styleOur

23、Test&React programme,which brings product from design to site in less than three weeks,met its FY24 target with over 10%of own-brand sales.We introduced over 50new partner brands including customer favourites like Veja,TALA,Hugo Blue,Murci,and Laneige.Plus,weve expanded Partner Fulfils to reach c.5%

24、of Gross Merchandise Value across c.100 brands,bringing customers even greater breadth and depth of products,fulfilled directly by our brand partners.Delivering the best productUsing data and AIReducing cost to serve80.1mAdjusted EBITDA12023:124.5m1 Adjusted EBITDA is an alternative performance meas

25、ure.Refer to pages 188 to 193 for reconciliation to statutory measures.19.6m2023:23.3mActive customersASOS PLC ANNUAL REPORT AND ACCOUNTS 202409FY24 was about delivering on the next stage of ASOS Driving Change agenda,and accelerating the transition to becoming a faster,more agile,and more profitabl

26、e business.Some of these changes haveimpacted revenue growth in the short-term,but we have made considerable progress towards becoming a business that can deliver sustainably profitable growth in the future.A detailed analysis of our performance in the year is contained in the following pages,but I

27、am pleased that ASOS has delivered on its profitability and strategic targets for the year.Notably:Delivering positive adjusted EBITDA of 80.1m,and reaching a second half adjusted EBITDA margin of 6.9%,despite significant volume de-leverage.Reducing the cost to serve through fundamental efficiency i

28、mprovements,particularly across both our fixed and variable warehousing and distribution costs.Reducing stock levels by c.30%since the start of the year as a result of more disciplined buying and strong clearance through ASOS.com and third-party channels.Further embedding a faster stock model and im

29、proving speed to market,including achieving our target of scaling Test&React to 10%of own-brand sales,bringing product from design to site within three weeks.Scaling flexible models to bring customers even greater breadth and depth of products,including doubling our flexible fulfilment business to c

30、.5%of third-party GMV1 across c.100 brands.Reviewing and revising our approach to Fashion with Integrity to ensure were aligning with the latest best practice,focusing on the right issues,and preparing the business for future regulation.Strengthening our balance sheet by improving our financial flex

31、ibility through our re-financing and demonstrating our efficient and disciplined capital allocation with the recent Topshop and Topman joint venture2 in early FY25.Chairs statement”FY24 was about delivering on the next stage of ASOS Driving Change agenda,and accelerating the transition to becoming a

32、 faster,more agile,and more profitable business.”Jrgen LindemannChair Reinvigorating our company leadership,both at the Management Committee and Board levels.I would like to thank our ASOSers for their hard work and passion which are the driving force behind the considerable progress ASOS has made o

33、ver the last 12 months,and our shareholders for their support.I would also like to take this opportunity to thank Mai Fyfield who stepped down from the Board on 7 February 2024 and welcome the new Board members who have joined us during the year.More details on our Board changes are included on page

34、s 90 to 91.Our Right to Win comes from leveraging our unique capabilities having the best product,providing a destination for style,having a compelling and distinct brand,offering competitive convenience,andall underpinned by disciplined capital allocation.Having the best product is at the heart of

35、this flywheel and,following two years of significant focus and hard work,we leave FY24 with stock in the best position it has been in many years.At the same time,weve fundamentally improved the foundations of our business to be able to deliver sustainably profitable growth.This transition away from

36、our old operating model while scaling our new commercial model has been our greatest challenge over the last two years,but it now represents our greatest opportunity.Fashion has the power to excite and inspire,and into FY25,we look forward to providing our c.20m customers with a market-leading desti

37、nation for style.Jrgen Lindemann Chair 5 November 20241 Gross Merchandise Value.2 The arrangement with Heartland,whilst referred to as a joint venture throughout thisreport,will be accounted for as an associate,as detailed in Note 30 of the FinancialStatements.This journey of rebuilding ASOS started

38、 two years ago.In previous letters,Ive described some of the challenges facing the business and some of the actions were taking to build ourselves back faster,more agile,and better able to serve our fashion-loving 20-something customers.We know that by having the most exciting product,by focusing on

39、 inspiration over transaction,by providing an exciting customer journey enabled by a fast and agile operation,we can build asustainable,profitable business and return to growth.From the start of this journey,weve been determined to take the medicine required and face our problems head on,even when i

40、t has been painful or unpopular.Id like to describe that journey what wevedone as well as whats next and why Im more confident than ever that were on the right path to be the number one destination forfashion-loving 20-somethings.What have we achieved so far?Since October 2022,with our Driving Chang

41、e agenda,we were determined to make ASOS a healthy business ensuring that our operations were efficient and effective,and that all our efforts were creating value for our customers,our brand partners,our ASOSers and our shareholders.Internally,I spoke about this as a two-step plan:starting with Back

42、 to Basics,which was about bringing stability and laying solid foundations both operationally and financially,and Back to Fashion which is focused on recapturing the hearts and minds of our target customers.ASOS needed time to cleanse and rebuild such a transformation could only be built over a disc

43、iplined revision of everything we do,bringing arefreshed level of rigour to each process in our value creation chain.Onlythen would we be in a position to grow again.At the core of this process has been the transformation of our stock model and we can be proud that today our stock is in the stronges

44、t position it has been for many years.Two years ago,we had far too much inventory c.1bn for c.4bn of sales,with a very large intake of new inventory arriving over the following year.We faced the problem head on and cut intake dramatically,we restructured the way that we buy,we prioritised speed and

45、net realised margin,we incubated new commercial models like Test&React,which we have scaled to over 10%of our own brand mix,and scaled our flexible fulfilment models Partner Fulfils and ASOS Fulfilment Services to c.5%of partner brand Gross Merchandise Value(GMV).We have reduced stock levels by c.50

46、%over the last two years,and completely refreshed our offering now with c.80%of fashion stock being product that has been on site for less than six months.Weve also fundamentally restructured the way we buy and manage our inventory so that we never find ourselves back in such a heavily overstocked p

47、osition.At the same time,weve cut our over-reliance on discounting and built a business focused on selling the best fashion at full-price.This has helped us attract exciting new brands for our customers like Arket,Laneige and Veja,all joining in recent months.We have cleansed our logistics operation

48、,rationalising excess space to increase efficiency,rebuilding our processes with increased visibility and speed to bring our customers a better experience.Over the last two years we have improved our missed customer delivery promise byhalving the share of parcels delivered late.We transformed our pe

49、rformance marketing model,removing inefficient spend to increase return on advertising spend(ROAS)by+18%in Q4.We rethought the economics of our international markets last year and all of our markets now deliver a positive contribution profit,with dedicated efforts in North America to restore profita

50、bility.In order toachieve this,we had to make changes to our propositions targeted at unprofitable customers and revenues.This resulted in a shrinking ofthe business,but was the right decision so that we can build from thestrongest possible foundations.We also continued the evolution of our leadersh

51、ip team to prepare for the next phase of our journey.We welcomed Anthony Ben Sadoun as Executive Vice President(EVP)Digital Product in February,Dave Murray as Chief Financial Officer in April,and Ras Vaghjiani as EVP of People Experience in July.We also welcomed Rishi Sharma as Interim General Couns

52、el and Company Secretary in May(Emma Whyte is on maternity leave)and Hugh Williams as Interim EVP Technology in June.Chief Executive Officers statement“From the start of this journey,weve been determined to take the medicine required and face our problems head on,even when it has been painful or unp

53、opular.Id like to describe that journey what weve done aswell as whats next and why Im more confident than ever that were on the right path to be the number one destination forfashion-loving 20-somethings.”CEOJos Antonio Ramos CalamonteGOVERNANCE REPORTSTRATEGIC REPORTFINANCIAL STATEMENTS10ASOS PLC

54、ANNUAL REPORT AND ACCOUNTS 2024In recent months,we have seen signs that the changes we have implemented are starting to bear fruit.We have seen a consistent evolution on Key Performance Indicators(KPIs)with 24%growth in sales of new product over the last 3 months from 6%higher stock,30%faster stock

55、turn,and variable contribution margin up c.4ppts.InSeptember,we also delivered a major milestone in this journey with the strengthening of our balance sheet through the formation of a Topshop Topman joint venture and our successful refinancing,bringing to ASOS the right level of balance sheet flexib

56、ilityto complete this journey.Whats next?As we enter FY25,we now feel that the major blocks of our foundations are largely built.While we will maintain our obsession with operational efficiency and speed,our focus shifts to relentlessly improving on the pillars of our“Right to Win”the best&most rele

57、vant product,being adestination for style,delivering an engaging customer journey and competitive convenience.Clearly,the logical consequence of completing this journey will be to bring the company back to revenue growth,but thismust be sustainable,profitable growth.In the past,ASOS growth was built

58、 over an ambitious geographic expansion,with a wide base of customers globally,but a relatively small share of wallet.In my opinion,the future growth of ASOS should be built over different pillars with agreater focus on share of wallet from our core customers in our coremarkets.Our ultimate goal is

59、to delight our customers so much that they give us more of their time,love,and fashion spend.We believe this is the best way to build a good economic business and cannot be delivered through a solitary action,but by putting customers at the heart of everything we do.Internally,we now talk about our

60、growth strategy by planting seeds.We want to model bamboo,with strong roots that first grow deep andallow the plant to then grow sustainably for many years,and stay strong.These seeds can be something as small as a new feature on our site such as Buy the Look(which 14m customers engaged with last ye

61、ar)orthe addition of an exciting new brand.And we have begun to develop aculture of innovation,instilling in our teams the desire to plant seeds,minimising risk by testing before committing.We have already begun planting the seeds that will underpin the next chapter of our transformation.Test&React

62、transforms our own brand model to ensure we are the first place that customers can access the best product.Our shift from performance marketing to social media&influencer marketing,which weve already scaled to working with c.1,500 influencers per month over the last year,ensures we can communicate o

63、ur fashion message efficiently and consistently off-site as well as on-site.Were excited to re-launch T which will provide customers a destination for the brand beyond the current ASOS ecosystem.Following the appointment of our first EVP of Digital Product,we have also begun transforming our Technol

64、ogy and Digital Product models,simplifying our structure,reorganising into smaller,autonomous units aligned to customer focus areas.Were adding 100 software engineers,increasing our capacity by 25%to empower faster innovation of our on-site customer experience with the cost off-set through the simpl

65、ification of our structure.Understandably,we will be asked by analysts or investors,“when will ASOS grow again?”so I wanted to share my framing here.At ASOS wehave to focus on the inputs which for the last two years has been weighted towards taking the painful medicine of reducing stock,exiting unpr

66、ofitable activities and the disciplined revision of everything we do.As we move into Phase 2 of our journey,the year ahead and beyond willbe increasingly weighted towards taking actions that delight our customers to win more of their time,love and fashion spend.However,from experience we know that e

67、xactly when that results in growth inrevenue is not something we should try to manage.We could,for example,decide to grow next month by re-engaging promotional marketing or discounting product,but that would not be in the long-term interests of the business.We want to spend our time and energy build

68、ing experiences that deserve for our customers to say“wow”.We will do things in the right way and were going to be patient.We have already seen the green shoots in the performance of our new stock in recent months,providing confirmation that we have taken the right action forour customers.While ther

69、e is still work to do,I am energised by the progress we have made so far and am excited for the next stage of our journey.I am absolutely convinced that ASOS can grow again,that we have something incredibly unique to offer our customers,and that we now have the right team,the right foundations and t

70、he necessary rigour,passion and the energy to do so.Jos Antonio Ramos Calamonte Chief Executive Officer 5 November 202411ASOS PLC ANNUAL REPORT AND ACCOUNTS 2024Business modelOperational excellence in all parts of our business,from buying and managing stock through the value chain to our products ar

71、riving with our customers,all underpinned by our commitment to Fashion with Integrity.Our tech and data with continuous innovation at the right level of cost.Our international model which efficiently allocates capital to generate the best returns from our overseas operations,influencing decisions su

72、ch as the degree of localisation in the assortment to the level of investment in marketing in non-UK markets.Our people,culture and values with a refreshed leadership team,a strong Board and disruptive mindset at all levels of the business,and a focus on driving positive change,diversity,equity and

73、inclusion forall our people.Disciplined capital allocation Our distinct model is enabled by disciplined allocation of capital with a focus on four key areas:Our proposition is unique in the world of mass market fashion,set apart from peers by the combination of our strategic priorities:Our right to

74、winThe best and most relevant productfrom both exclusive own brands manufactured to strong ethical standards,and a curated assortment from selected partner brands which resonate with our target audience.02030104A compelling and distinctbrand famous for fashion,with widespread recognition,a clear poi

75、nt of difference,and a high level of engagement with our customers.A destination for stylewith items from different brands styled into outfits,in context,and in our differentiated visual language.Competitive convenienceoffering a delivery,returns and payment experience at least comparable with our b

76、est competitors.05ASOS is a leading global destination for fashion-loving 20-somethings,with 20m active customers in over 200 markets worldwide.GOVERNANCE REPORTSTRATEGIC REPORTFINANCIAL STATEMENTS12ASOS PLC ANNUAL REPORT AND ACCOUNTS 202413 Stakeholder engagement on pages 22 to 27.Financial review

77、on pages 56 to 61.Creating stakeholder valueDelivering on our right to win creates value for our stakeholders.Our CustomersOur Shareholderswho benefit from access to quality fashion at an attractive price,a market-leading selection of brands and inspirational,targeted styling.who will benefit from a

78、 focus on delivering profitable growthand sustainable cash generation through the efficientallocation ofcapital.Our ASOSersOur Communitieswho are empowered to contribute,learn,and grow through our open and entrepreneurial culture.both through our work on human rights and modern slavery inpartnership

79、 with NGOs and unions in our sourcing countries,and through the ASOS Foundation and long-term charity partnerships aimed at breaking down barriers for young people by instilling confidence and unlocking talent.Our Supplierswith whom we collaborate to foster trusted,mutually beneficial partnerships o

80、ver the long term and support incontinuous improvement to meet our FWI standards.Our Brand Partnersawho gain access to a large,global and often hard-to-reach customer base as well as the flexibility to work with us under arange of different models,including our direct-to-consumer offering,and the op

81、portunity to work and learn from other brands on sustainability and ethical trade.13ASOS PLC ANNUAL REPORT AND ACCOUNTS 2024Strategic reviewOur mission is to be the number one destination for fashion-loving 20-somethings.We know that by having the most exciting product,by focusing on inspiration ove

82、r transaction and by providing anexciting customer journey enabled by a fast and agile operation,we canbuild a sustainable,profitable business and return to growth.What have we achieved?ASOS is unequivocally a faster,more agile and more efficient business than when we started our Driving Change tran

83、sformation two years ago.This has been made possible by a significant effort from ASOSers to deliver against our strategic priorities.1.Product is in a great place,through disciplined stock management and anobsession with speedOur mission is to be the worlds number onefashion destination for fashion

84、-loving 20-somethings.Having the best product isat the core of our flywheel.We want to delight our customers with the hottest and freshest products and brands,at the right price,delivered in a reliable and consistent way-great products lead to positive customer experiences and inspire loyalty.We can

85、 drive better unit economics from selling full-price products,and a better return on marketing investment when directing people to the best product.Themore efficient we get,the better theexperience we are able to deliver.At the core of this process has been the transformation of our stock model and

86、the transition to our new commercial model.Wecan be proud that today our stock position is in the strongest position it has been for many years.At the beginning of our transformation,our stock levels had more than doubled to over 1bn due to Covid-related disruption and poor commercial practices whic

87、h led to the build-up of old andaged stock.Over the last two years,wehave reduced stock levels by c.50%to 520m and c.80%of our current fashion stockholding is in product that has been onsite for less than six months.This hasnt been an easy journey,and we have operated through peak pain over FY23 and

88、 FY24 as weve cleared through high levels of excess aged inventory built up under our old operating model,reduced ourintake of new and exciting product and shifted to a model ofclearing through any underperforming stockas we go.During the second half of the year,we began testing the removal of the r

89、emaining old stock on oursite to see how it would affect customer engagement and sales.The trial was a success:sell through of new stock increased dramatically,conversion rates improved,and we almost halved discounting on site.InQ4,we decided to permanently remove the remaining excess stock from sit

90、e,which we subsequently wrote-down and will clear through alternative channels.This write-down mainly relates to stock over 12months old,andmeans that we finished FY24 with a more compelling customer proposition and the right level of newness toexcite our customers again.The results are clear.Over t

91、he last 3 months(July-September)sales of newness increased 24%year-on-year(YoY)with only 6%more stock,turning 30%faster,and with c.4ppts higher variable contribution margin.Our new commercial model ensures this build-up of old inventory never happens again.We have significantly improved our speed to

92、market(the lead time between buying andselling stock),meaning we can make better choices on our intake.We focus on selling the best fashion at full-price and clearing through any underperforming stock in-season,improving gross margin,avoiding deeper discounts,releasing cash to invest innew GOVERNANC

93、E REPORTSTRATEGIC REPORTFINANCIAL STATEMENTS14ASOS PLC ANNUAL REPORT AND ACCOUNTS 202415Strategic review15stock,and ensuring a better customer experience by presenting more fresh and relevant product.Our market-leading Test&React model is fundamental to our new commercial model,bringing product from

94、 design to site within three weeks,ensuring our own brands always offer the most exciting product and set the trends for our fashion-loving customers.Having developed the model during FY23,wehave now successfully scaled to more than10%of our own-brand sales mix at the end of FY24 and remain on track

95、 to scale to 30%over the mid-term.We test product before reacting and committing to volume.When we do commit,given the speed to market,we typically aimto hold just three weeks ofstock,supporting a cleaner stock profile.Despite the higher sourcing costs that small batch sizes incur,the high customer

96、demand and full-price mix means the product generates higher gross margin.Our obsession with speed spans our entire portfolio,and is indicative of an evolution in our broader culture.The development of flexible fulfilment models,Partner Fulfils and ASOS Fulfilment Services(AFS),enable us to be more

97、agile in how we collaborate with our third party brands while bringing our customers increased width(i.e.expanding the product range available on the ASOS platform)and depth(i.e.allowing us to continue fulfilling orders on our bestsellers when our wholesale stock is depleted).As planned,we successfu

98、lly doubled the share of third-party GMV to c.5%and the number of brands using flexible fulfilment to c.100 over FY24.2.Were faster and more agile,after reducing our cost to serve,removing waste and improving our use of dataIt is critical that we invest in the areas thatmatter most to our customers.

99、Wehave simplified processes and removed wasted time and cost to reinvest into productive commercial activities.This has laid the foundations for future growth without sacrificing margins in other words,to be able to deliver sustainable,profitablegrowth.While there are many initiatives driving improv

100、ement,it is worth highlighting our progress in two particular areas our logistics operations and customer returns which helped improve our distribution and warehousing cost ratios by a combined c.2ppts YoY,despite volume deleverage.In logistics,we have undertaken a significant transformation rationa

101、lising excess space and re-building our processes with increased visibility and speed to bringour customers a better experience.This was driven by a range of initiatives,reflecting our shift in business culture prioritising continuous improvements,suchas:Improved customer experience:Through better u

102、se of granular and near-time data to identify trends and patterns in our delivery experience,we have halved the percentage of orders that were missing our customer delivery promise over the last eighteen months,significantly improving our customer experience while reducing our costs.Warehouse optimi

103、sation:We lowered ourvariable warehousing costs through increased automation,reducing our labour cost per unit by c.10%,whilst the reduction in stock levels has enabled the consolidation of our warehouse infrastructure,reducing fixed costs by c.25%.Delivery cost efficiencies:Through optimising our d

104、elivery partners and renegotiating contracted rates,we have lowered our variable delivery costs.The cessation of split orders from our two UK distribution centres in H1 FY23,alongside improved rates from carriers,has further reduced our distribution costs.Minimising unnecessary returns remains acent

105、ral focus for ASOS.During our rapid expansion period,we focused on reducing thefriction in the returns process to maximise the customer experience.More recently,we have turned our attention to lowering the returns rate and eliminating needless pain points for our customers.This has involved making i

106、mprovements to our size and fit and how clothing and accessories are displayed onproduct pages,including greater use of videos and 360 imagery as well as introducing AI to better understand and address reasons for returns,creating a feedback loop for improvement.As an e-commerce business,weunderstan

107、d that there is such a thing as good returns that enhance the customer experience,and wecontinue to offer free returns to all customers in our core markets.For customers with an exceptionally high returnsrate,this is now subject to keeping to a minimum net order threshold.There is still work to do i

108、n this area,but we have been pleased to see these initiatives begin to have a positive impact for our customers,reducing our underlying returns rate by more than 1ppt YoY.ASOS PLC ANNUAL REPORT AND ACCOUNTS 2024Strategic review continued3.Were better placed to deliver great customer experiences In t

109、he past,ASOS built its growth through an ambitious geographic expansion.This created a wide base of customers globally,but with a relatively small share of wallet.The growth engine of the coming years will be our core customers in our core markets.This means strengthening our relationship with custo

110、mers,bringing more engagement and excitement totake a greater share of wallet and greater penetration of our core demographic.In the UK,we have our highest brand awareness,our greatest penetration of our core demographic and our highest share of wallet.On average our UK customers spend 214 per annum

111、 at ASOS and our returning customers(i.e.excluding customers acquired during the year)shop on average seven times per annum.In the initial stages of our transformation,we saw two clear headwinds to order frequency and churn:i)reduction in intake to clear through excess stock carried forward,meaning

112、less new andexciting product;ii)heightened levels of clearance which detracted from the overall experience and attracted non-core ASOS shoppers making one-off purchases to take advantage of discounts being offered.Outside the UK,our brand awareness is significantly lower as is our order frequency an

113、d average customer spend.In these markets we have also undertaken a more significant rebalancing of the customer proposition to invest in the areas that really matter to our customers.This has meant ashift away from differentiating through our delivery and returns proposition and into product and in

114、spiration.This journey will take time to bear fruit,but we believe by creating win-win relationships with our customers we can both improve our profitability and grow.These headwinds also made our marketing investment less efficient during this transition,driving traffic towards a sub-optimal custom

115、er experience.However,we made significant optimisations in our performance media model,allowing us to reduce investment year-on-year while delivering a net positive impact on variable contribution generated through performance channels.We were able to identify and remove the tail of inefficient spen

116、d from paid search,social and affiliate channels leading to an increase in media return on advertising spend(ROAS)at Group level of+18%in Q4.Concurrently,we have rebalanced our marketing investment towards brand marketing.In order to build lasting,engaged relationships with our core customers we nee

117、d to deliver consistent brand messaging both on-and-off-site.Having tested a variety of marketing approaches earlier in the year,including full funnel campaigns,we found our always-on influencer programme to be the most effective and efficient,which following successful testing,we scaled to working

118、with c.1,500 influencers per month by the end of the year.This meant we spent less than the 30m incremental brand budget initially planned.In recent months,we have also seen improved customer engagement.As we have removed clearance stock from our site,increased newness and rolled out our social medi

119、a and influencer marketing programme,we have seen improving customer reactivations and retention.As we haveimproved the reliability of our deliveryproposition,we have also seen improvements in our corresponding Net Promoter Scores(NPS)which demonstrates the focus on strengthening our core customer p

120、roposition.Underpinned by efficient and disciplined capital allocationOur strategy is underpinned by efficient capital allocation,allowing us to invest behindour strengths in a disciplined way,andrelentlessly removing waste to invest intoopportunity.At the beginning of FY25 weannounced three key upd

121、ates which significantly increased our balance sheet strength and financial flexibility:i)TSTM JV:In October 2024,we formed ajoint venture(JV)1 with Heartland A/S thatpurchased the Topshop and Topman brands,with Heartland taking a 75%stake for 135m cash consideration.Through the JV,we continue to be

122、 part of the brands future potential while improving the efficiency of our capital allocation today.We will explore new opportunities,both online and offline,to bring the best of TSTM to customers globally,providing an exciting growth avenue.Through either partner or owned stores,we will strive to r

123、eturn TSTM to the high street and,within the next six months,will re-launch T,giving the brand an opportunity to further expand its customer base.GOVERNANCE REPORTSTRATEGIC REPORTFINANCIAL STATEMENTS16ASOS PLC ANNUAL REPORT AND ACCOUNTS 202417ii)Convertible bond re-financing:We successfully extended

124、 our maturity profile while reducing our net debt through the placement of convertible bonds due 2028 and concurrent repurchase of outstanding convertible bonds due 2026 at a discount to par.This was funded,in part,by the sale of a majority stake in TSTM,demonstrating our focus on efficient capital

125、allocation.iii)Bantry Bay re-financing:We also announced an amendment and extension of our existing facilities agreement with Bantry Bay Capital to May 2027,with an option for a 12 month extension.As part of the amendment,weswitched 50m of term loan into a revolving facility to effectively reduce ou

126、rblended interest rate as we improve ourfinancial flexibility.During the year we also continued the evolution of our leadership team to prepare for the next Phase of our journey.We welcomed Anthony Ben Sadoun as our first EVP Digital Product inFebruary,Dave Murray as CFO in April,andRas Vaghjiani as

127、 EVP of People Experience in July.We also welcomed Rishi Sharma asInterim General Counsel and Company Secretary in May(Emma Whyte is on maternity leave),and Hugh Williams as Interim EVP Technology in June.Where are we going?The last two years have necessarily been focused on putting the right founda

128、tions in place.As we enter FY25,we now feel that themajor blocks of our foundations are largely in place.While we will maintain our obsession with operational efficiency and speed,our focus now shifts to relentlessly improving on the pillars of our Right to Win the best&most relevant product,being a

129、destination for style,delivering an engagingcustomer journey,and competitive convenience in order to delight our customers so much that they give us more oftheir time,love and fashion spend.We believe that delighting our customers isthe best way to build a good economic business.Delighting customers

130、 is not delivered through a solitary action,but by putting customers at the heart of everything we do.Internally,we now talk about our growth strategy by planting seeds.We want to model bamboo,with strong roots that first grow deep and allow the plant to then grow sustainably for many years,and stay

131、 strong.These seeds can be something as small as a new feature on our site such as Buy the Look(which 14m customers engaged with last year)or the addition of an exciting new brand.We have also begun to cultivate a culture of innovation,instilling in our teams the desire to plant seeds,minimising ris

132、k by testing before committing.We have already begun to plant many of the seeds across our four pillars thatwill underpin the next chapter of our transformation:1.Best&most relevant product:While Test&React has been pivotal to improving inventory management,it also transforms our fashion offering,en

133、suring we are the first place that customers can access the best product.With the support of AI,we willfurther scale Test&React from 10%to20%of own-brand sales over FY25.Wesuccessfully tested AFS with our first brand over FY24 and will expand further in FY25.We recently appointed a new Partner Brand

134、s Director,Shazmeen Malik,to lead our partner brand team and will create a brand acquisition team to focus on bringing exciting new partners to our platform following the launch of Arket,Veja and Mango Man.2.Destination for style:Following the appointment of Anthony Ben Sadoun,our first EVP of Digit

135、al Product,we have begun to transform our Technology and Digital Product models,reorganising into smaller,autonomous units aligned to customer focus areas.Were adding 100 software engineers,increasing our capacity by 25%to empower faster innovation of our on-site customer experience with the cost of

136、f-set through the simplification of our structure.3.Engaging customer journey:We have improved the efficiency of our marketing activity through the optimisation of our performance marketing model and already begun deploying these savings into our social media and influencer marketing tocommunicate o

137、ur fashion message efficiently and consistently off-site as well as on-site.Over Q4,we have seen a 14%increase in our earned media value and will continue to scale our programme over the next 12 months.We will also test incentives to improve customer loyalty,including the launch of a new loyalty pro

138、gramme in H2.Finally,the launch of T will provide the brand a destination for customers beyond the current ASOS ecosystem.4.Competitive convenience:Our work on size and fit and the use of AI to learn from our customer experience has had a positive impact on our underlying returns rate.We will contin

139、ue to improve the convenience of our customer experience by tackling the causes of unnecessary returns.Our goal is to build a business that delights customers so much that they give us more of their time,love and fashion spend.We know that by having the most exciting product,by focusing on inspirati

140、on over transaction,and by providing an exciting customer journey,enabled by a fast and agile operation,we can build a sustainable,profitable business and return to growth.Ourbusiness model affords us competitive advantages in these areas,which has been core to our success.However,we must continue t

141、orelentlessly improve across each of them.Whilethere is still work to do,we are motivated by the progress we have made so far and areexcited for the next stage of our journey.Wehave something incredibly unique to offer our customers,and now have the right team,the right foundations and the necessary

142、 rigour,passion and the energy to do so.1 The arrangement with Heartland,whilst referred to as ajoint venture throughout this report,will be accounted for as an associate,as detailed in Note 30 of the FinancialStatements.ASOS PLC ANNUAL REPORT AND ACCOUNTS 2024STRATEGIC REPORTGOVERNANCE REPORTFINANC

143、IAL STATEMENTS18ASOS PLC ANNUAL REPORT AND ACCOUNTS 2024Our peopleGreat work doesnt happen by chance.It takes facts and data to help us make decisions with conviction.Its about doing what we say and owning what we do until its done,and using data to bring everyone on the journey with us.Its a strate

144、gy that allows us to create an ASOS thats built for future success.Learning In October 2023,we rebranded learning and development activities under LearningASOS for a refreshed learning experience that was relevant,accessible,inclusive and engaging.LearningASOS includes a wide range of activities and

145、 programmes,such as our ASOS Develops learning events,which we run twice ayear for all ASOSers.Our April 2024 edition spanned three days and included 80 sessions across six sites.One of our focus areas over the year was to increase our expertise in using data.As well asdelivering 19 Data Apprentices

146、hips,we upskilled over 1,200 ASOSers on tools such as Excel,Power Bi,and SQL,covering everything from planning and governing to gaining insights and storytelling with data.To help drive innovation,productivity,and efficiencies,we launched an internal Work Smarter campaign,delivering learning content

147、 on new and existing tools within AI,automation,and virtual workshop tooling across Microsoft and Miro.We also delivered over 70 sessions inCommercial Tech,AI&Data Science,Customer Experience,and Core Services to 140 engineers,including several cycles of the eight-module“Software Crafters”training,t

148、eaching software development best practices and further enhancing technical knowledge across our teams.To keep the knowledge of our Tech teams up to the minute,stand-alone Tech Develops sessions were run monthly by the Tech team to share new skills and learning,sponsored by our Executive Vice Presid

149、ent-Technology.New learning to support new systems roll-outs,processes,or business issues isalways key to support our day-to-day operations.Over the year we ran learning programmes for ASOSers and key partners on Intake,Product Lifecycle Management,Customer Care,Returns,and more.In December 2023,we

150、launched our leadership curriculum,Liberating Leaders,and our development curriculum,Liberating Self,providing a mix of personal,career and business skills development.Wesaw over 350 ASOSers take part in the foundation programme,Self-Leadership,which was highly successful:those taking partgave it an

151、 effectiveness rating of 97%,and we saw a significant shift in competence and confidence in their development mindset,helping them to identify potential development blockers.We also run business skills sessions every six weeks,giving all ASOSers a great foundational learning on what they need to do

152、their jobs well.This curriculum is reviewed annually in line with our ASOS-wide Skills Gap employee survey.Finally,we launched our new learning management system,Thrive,in July 2024 providing a platform that is much more modern,accessible and relevant.This new system now provides a far more personal

153、 learning experience for ASOSers enabling learning to be part of their day-to-day.ASOS PLC ANNUAL REPORT AND ACCOUNTS 202419ApprenticeshipsFY24 saw the launch of our route-to-hire programmes,providing a much-needed access point for young adults and those who face barriers to work to begin their care

154、ers.Our 13 new hires joining us under this programme did so through a variety of pathways including creative,commercial,business administration,and finance.They joined the 566 ASOSers wehave enrolled on the programme since 2017,and the 130 currently studying across 15apprenticeship standards.This ye

155、ar we enhanced our offering for emerging talent by creating opportunities to experience more of ASOS,from getting hands on in our supply chain operations through to understanding life in studios.This combined with workplace application of learning and study towards recognised qualifications increase

156、d our apprenticeship completion rate.Were passionate about recognising success and raising the profile of apprenticeships across the UK.In the year,we hosted our biggest National Apprenticeship Week celebration to date,attended by our CEO,Jos,recognising and celebrating our apprentices achievements.

157、Our commitment in this area was recognised inJuly 2024 as we were listed 79th in the Best100 Apprenticeship Employers by Rate My Apprenticeship.Our position was based on the reviews and experiences of our apprentices and it was the first time weve appeared in these rankings.Over 3,500 employers are

158、on the platform,with only 100 being shortlisted,demonstrating the quality of our delivery and success in this space.Were the only online fashion retailer to make the list.We believe in the power of apprenticeships tounlock potential and build future capability.Weve pledged to invest further in this

159、space by continuing to create new opportunities andprovide education for all,supporting the growth of lifelong skills for our ASOSers.Attracting and retaining amazing peopleWe have continued to focus on retaining high-performing talent.Our internal-first approach provides our people with a platform

160、to grow and develop in their career and weve seen a 5%rise in internal moves from the previous financial year.We piloted our first internal talent event,Shape Your Career,where over 1,600 of our people registered andattended a range of talks and coaching sessions with the objective to empower career

161、 development.We also delivered workshops on the ASOS behaviours and values across teams,reaching over 2,000 ASOSers to further embed and embrace our culture.A key part of our attraction and retention strategy is to engage and attract diverse,international talent.We developed our existing partnership

162、s this year to enable us to connect with and inspire diverse talent communities.Our internal Talent Acquisition team and Diversity,Equity&Inclusion team collaborated to ensure ASOS is an inclusive employer of choice,bringing to life our brand purpose giving potential hires the confidence to be whoev

163、er they want to be.Weve upskilled ourexisting people leaders on best practices inhiring,and weve continued to add to our interview committee,through which individuals can volunteer to take part in interviews and help ensure a diverse interview panel.Celebrating successJuly saw the return of the“ASOS

164、 Aces”Annual Awards ceremony,celebrating success across the business.We introduced a total of 11 award categories geared to individuals that over the financial year demonstrated our values and behaviours,exhibited strong leadership and delivered results successfully as a team.All employees could nom

165、inate any ASOSer under categories such as,“Leader of the Year”,“Customer Champion”,“Authentic”,“Brave”,“Team of the Year”,and“Ace of Aces”.Over 850 nominations were received over 10 working days,with finalists shortlisted by a community of ASOSers and winners determined by the Management Committee.A

166、SOSers from around the world gathered for the celebratory event in our London HQ,which was a great success.STRATEGIC REPORTGOVERNANCE REPORTFINANCIAL STATEMENTS20ASOS PLC ANNUAL REPORT AND ACCOUNTS 2024Diversity,Equity&Inclusion(DEI)Over FY24,we invested time and resource into strengthening the foun

167、dation of our DEI networks with a redesign and relaunch,adding two new networks:Fertility&Baby Loss and Womens+.Our nine DEI networks now have full core operational teams,including Chair and Co-Chair positions,alongside an allocated budget and clear targets that align to our central strategic focus

168、as a business todrive change.Key activities carried out bythese groups since their refresh include campaigns in recognition of International Womens Day,Mental Health Awareness Week,Pride Month,and more.Our newest network,Fertility&Baby Loss,has already made a significant impact by inputting into cru

169、cial policy work and improvements.Were dedicated to enhancing our policies and benefits to support ASOSers,and weve recently enhanced our parental leave policy.Well continue to review our overall offering.Were committed to inclusive hiring practices where interview panels must have diverse represent

170、ation,supported by an Interview Committee made up of ASOSers from underrepresented groups.Hiring managers receive Hiring ASOS training,with learnings about how to run an inclusive and equitable process.Our external partners are crucial to this work.Weve signed up to the Race at Work Charter and are

171、working with The Outsiders Perspective,who support people from ethnically diverse backgrounds getting into the fashion industry.Our people continuedCelebrating PrideIn June 2024,our THEYSOSers(our internal LGBTQIA+network)once again led ASOS representation for the Pride inLondon and Belfast Pride pa

172、rades.Additionally,our Studios team conducted an internal shoot campaign in our HQ and Leavesden offices,featuring around 50 ASOSers who are members of the LGBTQIA+community as part of our annual Pride celebrations.We also launched an ASOS Design Pride range created in collaboration with LGBTQIA+art

173、ists and insupport of Just Like Us,LGBTQIA+young peoples charity.20ASOS PLC ANNUAL REPORT AND ACCOUNTS 202421Our THEYSOSers network for LGBTQIA+inclusion is backed up by a partnership with myGwork,the largest business community for LGBTQIA+professionals,where we advertise jobs and have access to tra

174、ining and event opportunities.This includes an Employee Resource Group Workshop,delivered to our network core teams,to set them up for success.We are level 1 Disability Confident Committed and are continuing to work with Scope to attract talent by advertising all jobs on its job board,to reach the d

175、isability and neurodiversity community.Weve also had training delivered by Autism NI,our charity partner in Belfast which has helped to train an additional 26 ASOSers across different site locations as Autism Champions.Wellbeing and mental health are still a huge focus for us.Weve recently introduce

176、d Unum,a new Employee Assistance Programme which provides mental and physical health support.We now have over 30 ASOSers trained to a Mental Health First Aid standard,through Mental Health England and Byrne-Dean.Our Mental Health First Aiders support ASOSers and work to break down the stigma about m

177、ental health through our Reach Out Rep community.1 The gender data is taken from legal sex data disclosed by employees in out Workday people platform.Thisdata is available for 100%of employees.Were working towards being able to measure and report ongender data more accurately through gender identity

178、 with internal DEI data disclosure campaigns.2 Data includes both Emma Whyte,General Counsel and Company Secretary(maternity leave)and RishiSharma,Interim General Counsel&Company Secretary.3 Defined as“Head of”and above positions.Please see pages 92 to 93 of our Nomination Committee Report for furth

179、er information on our Senior Leaders diversity.Female MaleGender diversity1As at 1 September 2024Senior Leadership341%59%226 rolesAll ASOSers63%37%2,968Management Committee47%53%15 members2 White Ethnically diverse Not specifiedEthnic diversityAs at 1 September 2024Senior Leadership380%12%8%226 role

180、sAll ASOSers71%24%5%2,968 Management Committee53%27%20%15 members2STRATEGIC REPORTGOVERNANCE REPORTFINANCIAL STATEMENTS22ASOS PLC ANNUAL REPORT AND ACCOUNTS 2024Stakeholder engagementOur mission is to be the worlds number one destination for fashion-loving 20-somethings.Our key stakeholders play a f

181、undamental role in helping us achieve this mission,and therefore strong stakeholder engagement is pivotal in achieving our long-term objectives and driving long-term value creation.Details of how we engaged with our stakeholders,considering the long-term goals for each,are set out on pages 23 to 27

182、and 88 to 89.How the Board considered our key stakeholders in their principal decision-making during the year can be found on page 86.S.172(1)statement and stakeholder engagement The Directors continue to ensure they act in a way which is in good faith and most likely to promote the success of the G

183、roup over the long term for the benefit of shareholders,and in doing so,also having regard for the Groups key stakeholders and other matters set out in section 172(1)(a)to(f)of the Companies Act 2006,being:the likely consequences of any decision in the long term;the interests of the Groups employees

184、;the need to foster the Groups business relationships with suppliers,customers and others;the impact of the Groups operations on the community and the environment;the desirability of the Group maintaining a reputation for high standards of business conduct;and the need to act fairly as between membe

185、rs of the Company.The Board is accountable to its stakeholders and understands the importance of incorporating stakeholder considerations into the Board discussions and decision-making.The Directors have identified the Groups keystakeholders to be our customers,ASOSers,shareholders,suppliers and com

186、munities.Each stakeholder group has their own individual priorities,of which the Directors are aware and have regard to.These priorities are considered,where appropriate,in the Boards decision-making.This is not only the right thing to do but is also vital in achieving the Groups long-term objective

187、s.ASOS PLC ANNUAL REPORT AND ACCOUNTS 202423How ASOS engaged during the year We invited customers to engage with ASOS in real life through:Our first pop-up store in London;Curated fashion-focused events for our Premier customers such as an ASOS Design new season catwalk preview and Face&Body days at

188、 our London HQ;Our ASOS Media Group partners tapped into ASOS engaged customer base to invite brand superfans to various events including a creative workshop with Nike.Engaging with our customers face-to-face helps us to gain a better understanding of what they love about ASOS,and how to build exper

189、iences thatbetter meet their needs.We continued to engage with customers through various Net Promoter Score(NPS)Customer Experience surveys capturing satisfaction data on our end-to-end journey and post customer care interaction.Ourend-to-end journey survey has now expanded to include all four core

190、markets UK,France,Germany,and US.Our Customer Care team provides help for customers and gathered feedback through our Virtual Assistant and advisors across c.6.5m contacts in FY24 to help improve the shopping experience.Insights have been shared with our Management Committee through immersive Custom

191、er Experience sessions and initiatives taken have resulted in improvements in customer satisfaction,NPS and customer resolution rates.To further understand our customers,we conducted bi-annual market surveys to capture perceptions and behaviours across core markets.We also conducted ad-hoc surveying

192、 and focus groups to gain additional insights to answer key business questions.We launched our As Seen on You user generated content program on-site to showcase our customers style choices inaddition to expanding our influencer programme on social media platforms toact as further outfit inspiration

193、for customers.Our design teams continue to use insights from social and from our Test&React products to lead on emerging trends andstay in touch with customers.How the Board engaged during theyear Throughout the year,our Board received periodic updates on brand performance and customer health metric

194、s at Board meetings and at the Board Strategy Day.The Board tracks progress against actions and initiatives in this area to improve performance.Why they are importantOur goal is to create and curate products and experiences to inspire fashion-loving 20-somethings.To stay relevant to our 20-something

195、 audience,it is essential we never lose touch with what matters to them,whoever and wherever they are.Its vital we engage frequently with our customers to ensure we can provide them with what they want,when they want it.Being in regular contact with our customers helps us to tailor our product offer

196、ing and content to stay relevant to our customers,which is key to our long-term success.Our CustomersSTRATEGIC REPORTGOVERNANCE REPORTFINANCIAL STATEMENTS24ASOS PLC ANNUAL REPORT AND ACCOUNTS 2024Stakeholder engagement continuedOur ASOSersWhy they are importantWere determined to create an employee e

197、xperience like no other,where our ASOSers can be whoever they want to be.An experience that ASOSers love,where they learn,collaborate,embrace change,and can be authentic,brave,creative and deliver ineverything they do.Where ASOSers can push boundaries,challenge expectations andhelp drive our journey

198、 to becoming the worlds number one destination for fashion-loving 20-somethings and,ultimately,our long-term success.How ASOS engaged during the year We received feedback through our bi-annual ASOS Vibe employee engagement survey which helped us to identify key focus areas for improvements.A full AS

199、OS Townhall was held to share the ASOS Vibe results with immediate quick wins and a wider action planto act on the feedback received.We continued to work with our employee forum,the Voices Network,on both a company-wide and a functional level,providing a platform for two-way conversations and amplif

200、ying ASOSers voices to Senior Leaders.We refreshed and rolled out ASOS Values and Behaviours and embedded these across the business through functional workshops with every ASOSer,with teams drawing up a manifesto of how they will embody the Values and Behaviours.Members of the Management Committee h

201、osted Leaders Connect sessions with the leadership community,focusing on key strategic moments throughout the year.We continued to strengthen digital internal communications,with“The Edit”weekly newsletter sent direct to all ASOSers,and a Management Committee Weekly Update published on Viva Engage b

202、y a different leader each week,sharing highlights ofdiscussions at the Management Committee,personal reflections,and key business updates.How the Board engaged during theyear Our CEO,Jos Antonio Ramos Calamonte,hosted regular townhall meetings,supported by the Management Committee,connecting with AS

203、OSers on our strategic goals,providing organisational and company updates,and offering an opportunity forlive Q&A.Townhalls were streamed toenable all ASOSers to join regardless oftheir location,and recorded for anyone not able to attend live.Our recently appointed CFO,Dave Murray,hosted two CFO Tow

204、nhalls with his team,which will continue on a quarterly basis.At one of the CFO Townhalls,Dave Murray hosted a fireside chat with Natasja Laheij,ourSenior Independent Director and Audit Committee Chair.Natasja shared her insights of being a senior leader in the Finance industry and ASOSers were invi

205、ted to ask questions.In April 2024,we held our first“Meet the Board”event,where Jos Antonio Ramos Calamonte held a fireside chat style session with William Barker,in conversation about Williams career and his thoughts on our strategy,focusing on waste elimination and Test&React.A significant proport

206、ion of the event was dedicated to ASOSers Q&A.In July 2024,our CEO hosted another “Meet the Board”session with Jose Manuel Martnez Gutirrez.This was a live session that focused on Jose Manuels career inretail,including his reflections on the industry and how it has evolved over the years.They also d

207、iscussed what it means tobe a leader in fashion,and what growth anddevelopment may mean other than linear career paths.In April 2024,Jrgen Lindemann,in his capacity as designated employee engagement representative,and Christine Ierakidis,Reward and DEI Director,met with our employee representative g

208、roup,the Voices Network,to discuss Executive pay and remuneration.Key views were fed back fromthe representatives,which were in turnfed back to the Board by Jrgen at thenext Board meeting.Our Board received updates on employee engagement and action planning throughout the year,following a Vibe pulse

209、 survey in October and a full Vibe survey inApril.Key actions highlighted included changes to performance management practice,improved family leave provision,and updates to the staff discount benefit.Several of our Directors conducted site visits outside of HQ in London.In January 2024,Jos Antonio R

210、amos Calamonte visited our USfulfilment centre in Atlanta,Georgia;inOctober 2023,Jos Antonio Ramos Calamonte,JoseManuel Martnez Gutirrez,Wei Gao and William Barker visited our fulfilment centre in Barnsley,U.K;in June 2024,JosAntonio Ramos Calamonte,Dave Murray and Jose Manuel Martnez Gutirrez condu

211、cted a tour of ourfulfilment centre inBerlin,Germany andour returns centre inPoznan,Poland.During site visits,our Directors received a tour and meet with our ASOSers to better understand the ways of working and the culture at each location.ASOS PLC ANNUAL REPORT AND ACCOUNTS 202425How ASOS engaged d

212、uring the year We held meetings with institutional investors and analysts meetings following release of our full-year and half-year results,hosted by the CEO,Interim CFO and the Investor Relations team.Our Board members and/or our Investor Relations team held further meetings with major shareholders

213、 throughout the year asand when required.Throughout the year,all shareholders havean opportunity to ask questions or represent their views at any time through the dedicated Investor Enquiries email address.How the Board engaged during theyear In September 2023,Mai Fyfield,in her role as Remuneration

214、 Committee Chair at that time,conducted a shareholder consultation to seek their views on how we proposed to implement the Directors Remuneration Policy in FY24.Christine Cross,Remuneration Committee Chair,led a shareholder consultation process in July 2024 to gauge investor sentiment regarding the

215、introduction of anew Value Creation Plan,as detailed further on page 103.Our Board received feedback from our corporate brokers and Investor Relations team regarding market reaction and investor views after announcements androadshows.Our Investor Relations team provided theBoard with a market update

216、 at each scheduled Board meeting,which includes shareholder feedback as and when appropriate.Following any investor engagement by aBoard member,that Board member provides shareholder feedback at Board meetings.Our shareholders have an opportunity to ask questions or represent their views formally to

217、 the Board at the Annual General Meeting.How ASOS engaged during the year In November,we hosted our supplier conference at our London HQ.Over 40 suppliers from around the world joined us todiscuss our strategy and plans for the future.It was a great opportunity for our suppliers to hear from key sta

218、keholders from across the business and engage in round table discussions where they could share their experiences and feedback.Throughout the year,we collaborated with our suppliers as part of our speed to market initiatives,reviewing all our processes to identify and remove inefficiencies.We mainta

219、ined ongoing communications with our suppliers through direct engagement and our regular supplier newsletters.We continued to engage with existing keybrands to maintain solid relationships and onboarded new brands to enhance ouroffering.Our dedicated Human Rights team operates globally to manage reg

220、ion-specific social risks in our supply chain.Over the year,we carried out audits of 485 sites supplying ASOS,ensuring corrective action plans were developed to address anyissues within factories.We extended our partnership with GoodWeave International from India to Bangladesh.GoodWeave is a non-pro

221、fit organisation that promotes transparency in global supply chains.For our brand partners,we launched theFashion with Integity Learning Hub,a comprehensive learning resource centre,offering targeted learning opportunities,guidance,and resources on various topics including the importance of clear po

222、licy,transparency,auditing and corrective action planning,and how to identify and remediate modern slavery related risks.Developed with input from our critical friends,Anti-Slavery International,the hubaims to support our brand partners in developing and implementing best practice in the management

223、of their supply chains.In May,the Fast Forward audit initiative launched the Brand Associate programme,anew initiative designed specifically for UK small and medium-sized brands with a turnover under 36m.The Brand Associate programme is a collaborative effort between Fast Forward,ASOS,and other bran

224、ds,aimed at addressing the challenges that SMEs encounter.It seeks to provide a comprehensive solution by offering a step-by-step journey for brands to enhance their knowledge and understanding around decent working conditions and how businesses can operate on a level playing field with accountabili

225、ty and transparency.How the Board engaged during theyear Through our Sustainability Committee,theBoard monitors the way we manage oursupply chain to ensure we continue to operate responsibly in line with our Fashion with Integrity commitments.Our Board received updates on our supply chain network an

226、d brand partnerships.Our Board reviewed our supply chain challenges and opportunities.Why they are importantA key objective for the Board is to create value for shareholders.Our mission,purpose,values and strategy strive to deliver long-term,profitable growth for our shareholders.Our ShareholdersWhy

227、 they are importantMaintaining close working relationships and open dialogue with our suppliers and brand partners is key to offering our customers the best fashion.Our SuppliersSTRATEGIC REPORTGOVERNANCE REPORTFINANCIAL STATEMENTS26ASOS PLC ANNUAL REPORT AND ACCOUNTS 2024How ASOS engaged during the

228、 year To celebrate Pride,our THEYSOSers(our internal LGBTQIA+network)once again ledASOS representation for the Pride inLondon and Belfast Pride parades.Our Studios team also facilitated an internal shoot campaign in HQ and Leavesden offices,featuring around 50 ASOSers who are members of the LGBTQIA+

229、community.Why they are importantOperating responsibly in everything we do is not just incredibly important to our business and our people,it is also key to driving positive outcomes for thecommunities in which we operate.From the way we manage our supply chain,to how we address environmental challen

230、ges such as plastic waste,it all matters.We want to be a force for good,so we can support the people who support us.Thats why weve continued to actively engage with local communities and charities helping drive positive change.Our CommunitiesStakeholder engagement continuedThe ASOS Foundation was es

231、tablished as a charity in 2013 with the aim to open doors,remove barriers and help young people change their lives for the better.The ASOS Foundation(“The Foundation”)invests in high impact projects which focus on instilling confidence and unlocking talent,and utilises our expertise in fashion and t

232、echnology to create life changing interventions for young people.Since 2013,The Foundation has donated c.7.5m and has built impactful,strategic partnerships with charitable organisations who are playing a key role in breaking down barriers faced by young people.The Foundation works in collaboration

233、with long-term trusted partners who help us ensure that funding is used appropriately,effectively,and sustainably,and ultimately reaches the young people who rely on their support the most.The Trustees visit projects funded by The Foundation and meet with the partners,community stakeholders and youn

234、g people supported by these programmes.The Foundation also engages directly with young people at a grass roots level and maximise the benefits of sharing skills and expertise from our corporate funder,ASOS.com Limited.All of The Foundations internal fundraising activities and initiatives aredelivere

235、d directly by ASOS Corporate Responsibility team.The Trustees review fundraising activities on acase-by-case basis,and only approve events which support The Foundations strategy andare in keeping with its values,ethics and reputation.In FY24,ASOS.com Limited donated 300,000 to The Foundation.Through

236、out the year,external fundraising events included a gala dinner and a golf event.Funds generated from ASOS office sample sales,personal training sessions and beauty treatments are also donated to The Foundation.We relaunched Give a Day Away,our employee volunteering scheme,which offers ASOSers one d

237、ay of paid volunteering a year.We highlighted a range of opportunities,including some ASOS Foundation partners,resulting in 70 ASOSers using their day tosupport charitable initiatives.We continued our partnership with(Fashion)Minority Report to support theprofessional development of young creatives

238、across theUK.26ASOS PLC ANNUAL REPORT AND ACCOUNTS 2024FoundationASOS PLC ANNUAL REPORT AND ACCOUNTS 202427 After celebrating our 2m milestone with Centrepoint last year,The Foundation committed another 240,000 to the expansion of the helpline,their main homelessness prevention tool and where the AS

239、OS partnership began.By developing the helplines capacity and raising awareness ofit amongst young people,Centrepoint canmeet the rising demand for support and reduce the number of young people facing homelessness in the UK.The Foundation continued to partner with charities to provide infrastructure

240、,training and support to enable underprivileged young people to reach their potential in the UK,Kenya and India.The Foundation delivered its second year ofpartnership with East London Fashion Education charity Caramel Rock.The funding enabled 43 young people to access a BTEC fashion course as well a

241、s additional guidance to help them break into the industry.Eight ASOSers have been actively involved in mentoring Caramel Rock students this year.In Barnsley,The Foundation continued our partnership with OnSide,a national youth charity determined to make sure that all young people have the opportuni

242、ty to shine,committing 1.5m to support the building and operational costs of a state-of-the-art youth centre for young people aged 8-19.The centre aims to be a safe and aspirational place for young people,with first class sports,arts,performance and enterprise facilities.The public opening is schedu

243、led for 2025.The Foundation celebrated its 14th year with the Princes Trust as we empowered young people with essential STEM skills and insights into tech.Through the Princes Trust,The Foundation invested 180,000 in digital skillsfor underrepresented youth in high deprivation areas and delivered mul

244、tiple insight days across our offices in London andBelfast,reaching 51 young people and introducing them to the world of tech and what a career in the sector could look like.The Foundation celebrated another impactful year with its international partner Udayan Care,which has continued to nurture and

245、 care for orphaned children in India,with 74children being supported in the five homes that The Foundation is funding.Alongside theprovision of education,wellbeing support and entertainment,we also invested in maintenance projects to ensure the living environments are a standard the young people can

246、 be proud of.The Foundation also continued its support of the Soko Community Trust inKenya,which provides training and womens empowerment in local schools.TheFoundations funding ensured the local community received training on Menstrual Hygiene Management,helping young women to manage their menstrua

247、l cycle without stigma or embarrassment.How the Board engaged during theyear The Board received an update on the work of The Foundation from Nick Robertson,Chair of the The Foundation.The Board keeps up to date with the progress against community projects delivered by The Foundation through theSusta

248、inability Committee.Nick Robertson visited one of OnSides youth centres in London in his capacity as Trustee and Chair of The Foundation.Nick was able to see first-hand the great work that the charity is doing with the support ofThe Foundation.STRATEGIC REPORTGOVERNANCE REPORTFINANCIAL STATEMENTS28A

249、SOS PLC ANNUAL REPORT AND ACCOUNTS 2024Fashion with Integrity28ASOS PLC ANNUAL REPORT AND ACCOUNTS 2024Progress update:our strategic pillarsFashion with Integrity(FWI)is our strategy for managing sustainability and corporate responsibility at ASOS.As disclosed in last years annual report,our focus i

250、n FY24 has been on reviewing and,where necessary,revising our FWI goals and targets.Were pleased to have now published our updated FWI Strategy,available on inform our review of the Strategy,during the period wecompleted a new impact materiality assessment to ensure that our focus aligns to the area

251、s where we have the biggest impact.Read our updated Fashion with Integrity Strategy.Weve integrated our annual FWI Progress Update with our annual report this period.Aswith our last FWI Progress Update,weve reported in reference to Sustainability Accounting Standards Board(SASB)and Global Reporting

252、Index(GRI)metrics.We continue to monitor the developments of sustainability reporting standards in the UK and EU in preparation for future reporting requirements.An explanation of our FWI Strategy,our targets and commitments,definitions,and methodologies is available on our plc site at set a mixture

253、 of targets and commitments against each of our FWI pillars.Where relevant,weve set measurable,data-led targets,backed by clear methodologies,and operational roadmaps to help us achieve our aims.Its not always appropriate to set data-led targets,for example when considering progress on human rights.

254、When thats the case weve set clear commitments instead.As with our targets,these commitments are supported by operational plans and interim milestones which well be using to measure and report against our progress.Targets relating to the volume and proportion ofsustainable materials used and our Sco

255、pe 3.1a emissions data are based on a series of documented estimates and assumptions,such as product weight and overall composition.More detail is available at have conducted sensitivity analysis on our estimates and assumptions to determine the risk ofpotential errors in our reported figures.This w

256、ork identified that no reasonable possible change in ourestimates and assumptions would result in ourreported figures changing by 5%or more(ourESG materiality based on the SBTis triggered recalculation criteria thresholds).As a result,we do not consider these estimates or assumptions to be materiall

257、y sensitive.STRATEGIC REPORTGOVERNANCE REPORTFINANCIAL STATEMENTSASOS PLC ANNUAL REPORT AND ACCOUNTS 202429 Emissions(tCO2e)CategoryFY24FY23%change YoY%change vs baselineFY22 baseline(restated)FY22(previously reported)Scope 1 Fugitive Emissions366372-2%-34%557N/ANatural Gas2,4162,695-10%-33%3,6083,3

258、51Scope 2 Electricity(Market Based)2,3722,259+5%+6%2,2322,860Electricity(Location Based)9,1258,743+4%-10%10,09611,497Scope 3 3.1a Purchased Goods for resale(Products and Packaging)766,749896,023-14%-37%1,224,272913,108ASOS own-brands and labels340,485375,532-9%-38%548,438332,757Partner brands426,264

259、520,491-18%-37%675,834580,3513.1b Purchased Goods and Services not for-resale43,43951,322-15%-57%101,96323,0153.2 Capital Goods34,28848,464-29%-35%52,59853,7803.3 Energy-Related Activities Not in Scopes 1 and 24,8434,291+13%0%4,8633,6093.4 Upstream Transportation and Distribution206,792308,596-33%-5

260、1%422,036349,9793.5 Waste(Operations)11,80013,424-12%-8%12,7575193.6 Business Travel2,0251,242+63%+46%1,3831,5353.7 Employee Commuting1,3241,439-8%-44%2,3679,8693.8 Upstream Leased Assets23230%-8%25N/A3.9 Downstream Transportation and Distribution1,6223,550-54%N/A0N/A3.11 Use of Sold Products90,9811

261、10,585-18%-30%130,639349,1253.12 End-of-Life of Sold Products43,66551,634-15%-31%63,13827,958Total1,212,7051,495,920-19%-40%2,022,4381,738,708PlanetTargetBy FY27,procure 100%renewable electricity across the ASOS estate.FY24 performance:82.2%FY23 performance:80.3%YoY(year on year)change:+1.9ppts Targ

262、etBy FY30,reduce the absolute emissions generated by the manufacture of ASOS own-brands and labels products by 42%compared to a FY22 baseline.FY24 performance:-38%FY23 performance:-32%YoY change:-6ppts Climate&NatureGreenhouse gas inventoryTargetBy FY30,ensure 90%of emissions generated by brand part

263、ner products sold on ASOS come from brands who have set science-based targets.FY24 performance:67.4%FY23 performance:60.3%YoY change:+7.1pptsTargetBy FY50,reduce 90%of the absolute emissions generated by our entire value chain compared to a FY22 baseline.FY24 performance:-41%FY23 performance:-27%YoY

264、 change:-14pptsOur emissions have fallen significantly in FY24 against our FY22 baseline.We see two main drivers of this trend:first,the work we delivered to become a more efficient business,including reducing our stock intake and prioritising speed to market;and second,a reduction in the number of

265、customer orders over the same period.As the business returns to growth over the medium term,we expect stock intake and customer orders to increase from FY24 volumes.Our challenge is to decouple this volume growth from our emissions footprint.Weve updated our carbon calculation methodology in partner

266、ship with a third-party provider.This has resulted in a restatement of our FY22 carbon emissions figures,originally published in our FWI FY22 Progress Update and our FY23 Annual Report.Our restated FY22 footprint below is+16%higher than previously reported.Our previously reported emissions are discl

267、osed below for comparison purposes.More detail on our restatement is available in our FWI Strategy Update on REPORTGOVERNANCE REPORTFINANCIAL STATEMENTS30ASOS PLC ANNUAL REPORT AND ACCOUNTS 2024MaterialTonnes acquired%of overall mix(to nearest.1%)%of material more sustainable1Cotton6,06949.5%49%Bett

268、er Cotton2,4%recycled,1%organicPolyester3,79030.9%13%recycled Man-made cellulosic fibres(MMCFs)1,0398.5%33%more sustainable Acrylic5204.3%0%Nylon3713.0%1%recycled Other(including elastane,linen,polyurethane,wool,leather,and suede)4673.8%0%Total12,257100.0%34%Progress update:our strategic pillars con

269、tinuedCommitmentIncrease our use of more sustainable materials in our ASOS own brand clothing products.Each year,well set a target for the proportion of the materials in our products that wed liketo be more sustainable,and report back on our progress.FY24 achievement:34%FY25 minimum target:45%To inc

270、rease uptake of sustainable materials weve started to set seasonal targets for each product category across our three main fibres(cotton,polyester,and man-made cellulosic fibres).Weve also enhanced engagement with our key suppliers on materials.Our top suppliers are now set KPIs and scored on their

271、use of more sustainable materials.This is supported by individual supplier meetings,enabling us to monitor their sustainable materials capabilities and usage.1 Defined broadly as a material whose production has on average a lower environmental impact than the production of the conventional form of t

272、hat material.For a full definition and a list of the materials and certifications we accept,head to page 54 of our Fashion with Integrity Strategy Update on Although Better Cotton is not physically traceable to end product and operates on a mass balance system,the movement of Better Cotton through t

273、he supply chain is tracked by a system of credits which ensures that,for every 1kg of Better Cotton that ASOS sources,an equivalent amount of raw cotton is being grown somewhere in the world using Better Cotton Production Principles.Read more about the mass balance system at bettercotton.org/massbal

274、ance.ProductAll material calculations below,except Better Cotton2,are based on our internal tonnage methodology,which uses a series of documented estimates and assumptions,such as product weight and overall composition.More detail is available at have conducted sensitivity analysis on our estimates

275、and assumptions to determine the risk of potential errors in our reported figures.This work identified that no reasonable possible change in our estimates and assumptions would result in our reported figures changing by 5%or more(our ESG materiality based on the SBTis triggered recalculation criteri

276、a thresholds).As a result,we do not consider these estimates or assumptions to be materially sensitive.CommitmentTest and introduce innovative packaging materials and solutions,reducing overall usage where appropriate.By FY26,well increase recycled content in mailing and garment bags to a minimum of

277、 95%.Our mailing bags currently contain at least 80%post-consumer recycled material,and our garment bags(for ASOS own-brands and labels)contain at least 90%post-consumer recycled material.We use Low Density Polyethylene in our garment and mailing bags.This is certified to Recycled Claim Standard(RCS

278、)or Global Recycled Standard(GRS)orISO 14021.Projects delivered this period include a three-month staff trial of paper mailing bags for ASOS staff orders.Weve also switched tolinerless labels in our UK returns centre,estimated to reduce general waste collections at the site by approximately 30metric

279、 tonnes per year.Working with ourpartners,we capture approximately 400metric tonnes of plastic waste per yearwithin our supply chain for recycling.Raw MaterialsASOS PLC ANNUAL REPORT AND ACCOUNTS 202431CommitmentTrain the manufacturers of our ASOS own brand clothing products on our ASOS Circular Des

280、ign Strategies.By FY27,well have launched a phased training programme prioritising suppliers based on their level of business with ASOS.Over the period,we worked closely with five key suppliers and delivered bespoke training on circular design,which was instrumental in developing the capability of t

281、hese suppliers.This has directly informed our new commitment to train our supply base on circular design.We also tested a new circular design tool,developed in collaboration with the Centre forSustainable Fashion in 2023.The tool walksour internal product development teams through a step-by-step pro

282、cess to develop a product that adheres to our circular design techniques,with the ambition that this can be used to scale up our circular design assortment.CommitmentFacilitate recovery programmes to keep products in use at their highest value.By FY27,well pilot or launch new circular business model

283、s across resale,rental,takeback,and repair.Our focus this period has been on scaling our rental proposition with Hirestreet.Over the period we added over 2,000 new products to the platform from ASOS DESIGN,ASOS LUXE,and ASOS EDITION.The top 10 styles have each been rented an average of 110 times,whi

284、le the most popular dress style has been rented over 176 times.Design&ProductionUse&RecoverySTRATEGIC REPORTGOVERNANCE REPORTFINANCIAL STATEMENTS32ASOS PLC ANNUAL REPORT AND ACCOUNTS 2024Progress update:our strategic pillars continuedCommitmentImplement our human rights strategy to enhance the human

285、 rights of workers across our value chain.1.Develop a modern slavery strategy for Goods Not For Resale(GNFR)suppliers and a toolkit for suppliers,factories,partner brands and non-stock partners.Weve started working with Anti-Slavery International to develop a programme of work relating to GNFR.It wi

286、ll cover key risk areas across our supply chain,our head office operations,our procurement practices,and our key strategic partners.Activities delivered so far include:Revising a self-assessment questionnaire to identify human rights risks in our third-party operated fulfilment centres.We have also

287、developed a Warehousing Social Standard to support the SAQ rollout.Reviewing human rights risks associated with land transport and shipping activities linked to ASOS,and identifying a partner tosupport with due diligence in this area.Developing interview questions and tools to assess human rights ri

288、sks within our head office operations,with a focus on security and cleaning contractors.Launching a new partnership with Unseen,allowing us to gain visibility of trends in modern slavery,access opportunities for collaboration,and receive advice,guidance and monitoring on safeguarding for any cases l

289、inked to ASOS.People2.Renew Global Framework Agreement(GFA)with IndustriALL Global Trade Union.We have an ongoing GFA with IndustriALL Global Union,signed in 2017.This agreement provides a robust framework for protecting and strengthening the rights of workers within our global supply chain and high

290、lights the importance of freedom of association and collective bargaining infostering positive industrial relations.Wehave opened conversations with IndustriALL regarding a renewal of ourGFA.3.Develop a methodology to collect wage data during audits.Work on this strand will commence in FY25.4.Develo

291、p and pilot a Gender Programme at factory level to empower women workers in our supply chain.During the period we started the pilot phase of an innovative womens empowerment initiative in two factories in Morocco,in collaboration with our programme partner,Mobilising for Rights Associates(MRA).The p

292、rogramme is dedicated to fostering an environment where women can thrive and assert their rights,with a focus on creating sustainable and meaningful change by helping to establish womens committees in garment supplier factories.The committees,formed by freely elected women workers and representative

293、s from independent womens rights organisations,serve as a support mechanism for women workers,facilitating their empowerment and promoting their rights.CommitmentMaintain and build our foundation of effective own-brand and partner brand due diligence.1.Review and enhance current due diligence mechan

294、isms and introduce a global grievance channel structure with the aim of maximum accessibility,transparency,confidentiality,and enhanced remedy for workers.If the pilot initiative for establishing womens committees in factories proves successful,well review our supply chain to select another strategi

295、cally appropriate region and begin to scale the model accordingly.This will serve as a grievance mechanism that is easily accessible to all workers,ensuring their concerns can be addressed promptly and effectively.2.Ensure that partner brands sold on our platform are committed to transparency.This p

296、eriod weve continued to engage with brand partners to ask them to disclose their factory lists,either to us,on their own website,or preferably through the Open Supply Hub.As of August 2024,85%of apparel and footwear brands have shared their lists with us directly or publicly,aligning with the Transp

297、arency Pledge.New brands being onboarded are required to provide us with evidence of their Ethical Trade Policy,Modern Slavery Statement,Restricted Substances List,and animal welfare policy,and how these have been applied in their supply chain.Human RightsASOS PLC ANNUAL REPORT AND ACCOUNTS 202433 C

298、ommitmentImplement our external Diversity,Equity&Inclusion strategy to drive a safer society for women,girls,and LGBTQIA+people;create fairer economic opportunity for global majority creatives;and ensure an inclusive product offering for customers with disabilities and neurodiversity.1.Establish new

299、 charitable partnerships delivering change for those of marginalised gender identities and sexual orientations.Weve selected two partners to support our work in this area.First,Beyond Equality,a UK-based charity engaging men in the UK in working towards gender justice,preventing gender-based violenc

300、e,and creating a safer and more equitable society.Second,Just Like Us,a UK-based charity focused on preventing bullying,creating safe spaces and building allyship for LGBTQIA+young people.In June 2024 we launched an ASOS Design Pride range created in collaboration with LGBTQIA+artists,in support of

301、Just Like Us.2.Develop a plan and process to support and grow our network of global majority-owned brand partners,including scaling our annual incubator programme.Working with our partner the(Fashion)Minority Report,weve delivered our annual incubator programme for global majority-owned brands.The c

302、ohort of six brands received a senior industry mentor,a programme of workshops and panel talks covering key topics in the industry,and a press event to showcase their brand and products.Two of the six brands received additional opportunities,including a grant of 20k each to upscale their business,an

303、d support developing a new range to be stocked on ASOS in FY25.Weve also finalised our approach to support the collection of data on global-majority owned brands on ASOS.In FY25,our brand partners will be able to disclose whether they are global majority-owned in our onboarding process and in our an

304、nual ASOS Self-Assessment Questionnaire(SAQ).3.Launch the first ASOS Design adaptive collection.Weve established an internal working group for the ASOS Design adaptive collection and have selected a disability inclusion consultancy to support with its development.TargetBy FY30,achieve 50%female and

305、15%ethnically diverse representation across our senior leadership team.1FY24 performance:Female:41%Ethnically diverse:12%FY23 performance:Female:42%Ethnically diverse:11%1 Defined as“Head of”and above positions.Please see pages 92 to 93 of our Nomination Committee Report for further information on o

306、ur Senior Leadership diversity.Diversity,Equity&InclusionSTRATEGIC REPORTGOVERNANCE REPORTFINANCIAL STATEMENTS34ASOS PLC ANNUAL REPORT AND ACCOUNTS 2024Task Force on Climate-related Financial Disclosures(TCFD)We recognise our role in addressing climate change and reducing our environmental impact.As

307、 we face the tangible effects of global warming,we understand that this could influence our operations,strategic decisions,and financial planning.Since 2010,our Fashion with Integrity(FWI)programme has defined our approach to sustainability and corporate responsibility.This financial period,weve upd

308、ated our FWI Strategy to better position us for compliance with emerging sustainability legislation as it applies to ASOS.Additional information on our FWI Strategy can be found on page 28 to 33.We actively assess and monitor our climate risks to ensure we have the right controls in the right places

309、 and that these are working effectively.Weve established targets to reduce both our impact on the planet,and the risk of climate change on our business.Maintaining transparency in tracking our progress and providing clear climate-related disclosures is crucial for earning and retaining the trust of

310、our stakeholders.Were fully supportive of the Task Force on Climate-Related Financial Disclosures(TCFD)recommendations and their role in improving the credibility and comparability of corporate climate reporting.TCFD Guidance 11 Disclosure RecommendationsRecommendation Description ConsistencyPagesGo

311、vernance a)Describe the Boards oversight of climate-related risks and opportunities.36b)Describe managements role in assessing and managing climate-related risks and opportunities.36Strategy a)Describe the climate-related risks and opportunities the organisation has identified over the short,medium,

312、and long term.36 to 43b)Describe the impact of climate-related risks and opportunities on the organisations businesses,strategy,and financial planning.36 to 43c)Describe the resilience of the organisations strategy,taking into consideration different climate-related scenarios,including a 2C or lower

313、 scenario.36 to 43Risk Management a)Describe the organisations processes for identifying and assessing climate-related risks.37b)Describe the organisations processes for managing climate-related risks.37c)Describe how processes for identifying,assessing,and managing climate-related risks are integra

314、ted into the organisations overall risk management.37Metrics and Targetsa)Disclose the metrics used by the organisation to assess climate-related risks and opportunities in line with its strategy and risk management process.37 to 38b)Disclose Scope 1,Scope 2,and,if appropriate,Scope 3 greenhouse gas

315、(GHG)emissions,and the related risks.37 to 38c)Describe the targets used by the organisation to manage climate-related risks and opportunities and performance against targets.37 to 38KeyFullPartial as we have not reported certain metrics or targets outlined in the TCFD Guidance as explained within o

316、ur Consistency Statement on page 35.ASOS PLC ANNUAL REPORT AND ACCOUNTS 202435Consistency StatementOur climate-related financial disclosures below are set out with reference to Sections 1 4 ofthe TCFD Recommended Disclosures fromchapter C.Guidance for All Sectors within the TCFDs publication,Impleme

317、nting the Recommendations of the Task Force on Climate-related Financial Disclosures(2021)(referred to here as the TCFD Guidance).Wehave achieved consistency with nine of 11Recommended Disclosures and partial consistency with Metrics and Targets recommended disclosures a)and c).We are onlypartially

318、consistent here as we have not reported certain metrics or targets outlined inTables A1.1 and 1.2 of the TCFD Guidance formeasuring and/or managing our climate related risks and opportunities.We have also not disclosed certain specific cross-industry climate-related category metrics or targets relat

319、ing to Transition Risks,Physical Risks,Climate-Related Opportunities,Capital Deployment,Internal Carbon Pricing orRemuneration(shown in Table A2.1 of the TCFD Guidance).We have made good progress in the period against our plan towards full consistency whichwe set out in our FY23 Annual Report.Since

320、then we have:Improved our understanding of our climate-related risks and opportunities through refreshing our deep dive scenario analysis.Finalised and published updates to our FWI Strategy including updating certain metrics and targets.Continued to embed our new commercial model(improved speed to m

321、arket and reducing stockholding and product volumes),and enhanced our understanding of the impact this has on the metrics needed for monitoring and managing our climate-related risk and opportunities.We are improving our processes,systems,andcontrols under business activities,including those working

322、 towards future compliance withnew control reporting obligations under the Corporate Governance Code(2024).These willenable better monitoring and reporting ofthe remaining metrics and targets we need for full conformance.We are still working towards full consistency with the recommended disclosures

323、for our FY25 Annual Report.Inmaking this Consistency Statement,we consider that these disclosures meet the requirements of LR 9.8.6(8)(UK Listing Rules).PLC BoardHolds accountability for the long-term success of the Group and oversight of all risks and opportunities.The Board has delegated oversight

324、 of certain ESG matters to the Sustainability Committee and receives updates from the Committee following each meeting.Sustainability CommitteeAudit CommitteeRemuneration CommitteeOur Sustainability Committee shapes and provides governance over our FWI Strategy and related activities.It is chaired b

325、y an Independent Non-executive Director and meets at least bi-annually.Our Audit Committee oversees and ensures the appropriateness of our governance,risk management,and external reporting.It is chaired by an Independent Non-executive Director and meets quarterly.Our Remuneration Committee oversees

326、the remuneration of our Senior Leaders including approving any ESG related targets within bonus and share schemes.Itis chaired by an Independent Non-executive Director and meets at leastquarterly.Management CommitteeWeekly meeting of our senior leadership including our CEO and CFO.Holds day-to-day r

327、esponsibility for the management of climate-related risks and opportunities.FWI Steering CommitteeGovernance Working Group(GWG)Cross-functional management team responsible for providing oversight for all FWI activities including monitoring the implementation and maintenance of appropriate environmen

328、tal and social controls.Chaired by our Senior Vice President(SVP)Operations and reports to the Management Committee and the Sustainability Committee.Meets bi-monthly to ensure effective oversight,management,and accountability of key governance processes,procedures,and controls across ASOS.Chaired by

329、 our General Counsel&Company Secretary and reports to the Management Committee and the Audit Committee.FWI Supporting Working Groups GovernanceCross-functional groups responsible for delivering and supporting operational delivery in related areas (risk,operations,and reporting).Cross-functional team

330、s responsible for delivering and supporting operational delivery in related areas.Planet*Product*People*Climate&Nature Raw materials Design&Production Use&RecoveryHuman RightsDiversity,Equity&Inclusion*The three pillars are set out in our FWI Strategy further details are available on pages 28 to 33.

331、STRATEGIC REPORTGOVERNANCE REPORTFINANCIAL STATEMENTS36ASOS PLC ANNUAL REPORT AND ACCOUNTS 2024Task Force on Climate-related Financial Disclosures(TCFD)continuedSection 1:Governance Disclose the organisations governance around climate-related risks and opportunities.a)Describe the Boards oversight o

332、f climate-related risks and opportunities.b)Describe managements role in assessing and managing climate-related risks and opportunities.Board oversightPLC Board:Climate change risks and opportunities continue to be a key part of our strategic agenda and are identified and monitored as one of our pri

333、ncipal risks(see page 68).Our Board has established a dedicated Sustainability Committee to provide oversight of ESG matters and ensure the effective implementation of our FWI Strategy.Activities relating to climate change this period have been focused around reviewing,and where necessary revising,our FWI goals and targets,and developing related operational plans.Further details are provided in th