Many major fashion brands are not adequately addressing forced labor in their supply chains, with luxury giant LVMH among the worst offender, says a new report by KnowTheChain.

The report analyses 65 companies based on their exposure to forced labor risk and their efforts to mitigate it. The average score across all companies was found to be only 21 out of 100, indicating significant shortcomings in their policies and practices.

Lululemon emerged as the leader with a score of 63, praised for its strong human rights due diligence practices. It was followed by Puma and Adidas who demonstrated their commitment to fair labor standards.

Foot Locker and LVMH scored poorly, highlighting the need for significant improvement. Amazon and Walmart both scored 32/100, placing them in the top third-performing of companies overall.

Walmart said it works with suppliers, non-governmental organisations, experts and others to address root causes of these issues, foster innovative solutions and accelerate adoption at scale.

The report concludes, many companies lack transparency about their supply chains, especially when it comes to sourcing high-risk materials like cotton. Few of them provide effective remedies for workers whose rights have been violated with engagement with unions and worker representation remaining low across the industry.

The report calls for stricter laws for companies to disclose and mitigate supply chain risks. It urges companies to provide more detailed information about their sourcing practices and potential risks. They need to establish clear procedures for addressing and remedying human rights violations, the report says

Further, the report calls for an integration of sustainable purchasing practices into price negotiations and sourcing decisions. It also urges companies to engage with workers and unions to ensure their rights are protected.