Online fashion retailer ASOS said it aims to cut its environmental impact, use more sustainable materials and appoint more diverse corporate leaders.

The retailer has joined a growing list of apparel companies setting new ESG targets.

ASOS also said its environmental, social and governance (ESG) goals include becoming carbon neutral in its direct operations by 2025 and achieving net-zero carbon emissions across its value chain by 2030.

Clothing companies globally are stepping up their focus on ESG as they cater to a growing class of environmentally and socially conscious consumers and investors demand more action from them.

The fashion industry in particular, known for its heavy use of water and chemicals, is facing mounting criticism for causing an estimated 10% of all greenhouse gas emissions.

ASOS said it would also ensure all of its own-brand products and packaging are made from more sustainable or recycled materials by 2030. It already uses "over 80% recycled material" across mailing and garment bags.

The company also vowed to ensure at least 50% female representation and over 15% ethnic minority representation at every leadership level by 2030.

Primark, one of Europe's biggest fast fashion chains, yesterday became the latest apparel company to announce new sustainability targets, vowing to cut its environmental impact by using more recyclable materials.

Primark, which trades as Penneys here, said it is aiming to reduce fashion waste, halve carbon emissions across its value chain and improve the lives of the people who make Primark products.

The new strategy commits the retailer to change the way its clothes are made without changing its prices, which it said will allow everyone to make more sustainable choices when shopping.

Primark has also committed to ensuring that all its clothing is made from recycled or more sustainably sourced materials by 2030. This now accounts for 25% of all clothes sold.