The fashion industry continues to lag in addressing the ethical and environmental issues, as perthe 10th edition of Ethical Fashion Report by Australian non-profit, Baptist World Aid. The report evaluated460 brands, based on supplier relationships, sustainability, worker empowerment, risk management, and governance. Each company received a score out of 100, with factors like ‘supplier relationships’ and ‘worker empowerment; carrying more weight.
On average, apparel brands scored 32.9 points, while footwear companies lagged behind at 24.2, reflecting weaker safeguards against labor and environmental exploitation in the footwear sector. A significant finding show, that 89 per cent of companies still do not pay a living wage in their final-stage facilities. Only 10 per cent of companies paid a living wage in some facilities, and there was a slight decrease from 2022 in the number of companies committed to addressing this issue.
Sustainability records modest improvements. The use of sustainable fibers has increased from 15 per cent of brands in 2022 to 21 per cent in 2024, and 68 per cent of brands now offer consumers advice on reducing environmental impact, up from 57 per cent. However, half of the companies assessed in 2024 lacked any commitment to climate action. Brands like Temu, Stussy, and Nine West scored 0 in the sustainability assessment.
Despite this, some major brands performed well. Patagonia and Inditex (Zara’s parent company) earned the highest scores of 69 and 66, respectively, followed by Adidas (63), Puma (61), New Balance (60), and Lululemon (58). Interestingly, fast fashion giants H&M and Levi Strauss scored 57 and 56, despite not participating directly in the assessment.
While fast fashion brands like Inditex and H&M ranked in the top 20 per cent, researchers acknowledged criticism, explaining that the report evaluates companies based on their systems to mitigate risks, not their contribution to broader fashion culture. The report will now be released bi-annually to reflect the slow pace of industry progress.
