How the report scores companies

The 11th edition of the Baptist World Aid ethical fashion report, released on Tuesday, surveyed 138 Australian and international companies that together represent 543 fashion brands. Firms are graded out of 100 across five broad supply chain topics, among them worker empowerment and environmental sustainability. To build those grades, researchers analysed more than 15,000 data points generated by assessing company policies, practices and performance.

The bar for proving decent pay remains hard to clear. Across all the companies surveyed, only 13% could show evidence of paying a living wage to any of the workers in their supply chain, and the report found overproduction particularly remains a growing challenge to sustainability.

The highest-scoring brands showed practical measures such as:

• •conducting factory audits
• •providing workers' rights training
• •assessing the environmental effects of their top three fibres

The low scores behind Shein's rankings

Shein's score of 28 sits below the report average of 31.5, yet it outperformed Myer, Windsor Smith, Ghanda and Boardriders, the owner of Quiksilver, Roxy and Billabong. Several household Australian names landed near the bottom of the table:

• •Ghanda and Windsor Smith each scored zero
• •Temu, the Chinese e-commerce site and Shein competitor, also scored zero
• •Seafolly scored one
• •Activewear maker 2XU scored two
• •Boardriders and Bec and Bridge scored three
• •Myer scored 20 for its retail arm and its apparel business

Participation and the transparency gap

The gap between the Chinese fast-fashion group and the Australian companies is partly explained by engagement. Shein supplied Baptist World Aid with additional information, whereas Myer, Seafolly, Ghanda, Windsor Smith, Boardriders, 2XU and Bec and Bridge did not. Companies that decline to take part are assessed only on publicly available information, which tends to yield lower rankings. In this edition, 58% of businesses were assessed solely on their public information, compared with 42% who provided more.

The process is extensive regardless of participation. Over a 13-month engagement period, companies were contacted by email on approximately 16 occasions, including with their final score, according to a spokesperson, who said: "This process includes a series of bulk communications sent to all assessed companies, regardless of their level of participation or responsiveness."

Ethical fashion lead Katherine Halliday defended the methodology, saying some companies had a bigger "appetite for transparency" than others. She framed the report's purpose this way: "[The report] is designed to answer the question: 'How strong are the systems a company has to protect exploitation of workers across the supply chain?'"

Some brand owners have previously objected that a focus on living wages can mean international fast-fashion brands rank higher in sustainability reports. Halliday defended that approach alongside the rest of the methodology.

Temu, for its part, said all its sellers had to "comply with a third-party code of conduct, which prohibits forced, penal or child labour" and requires compliance with wage, working hours and safety laws. Shein has been criticised for its environmental impact and accused of facilitating or even encouraging overconsumption through its very cheap prices.

What the report says about progress

Progress across the industry is slow. Since the previous report was released in 2024, the average overall score improved by just 0.2%. Halliday said she was "heartened" that Shein's score had improved from previous years, which she attributed to public scrutiny leading to changed practices.

At the top of the table, the Australian underwear label Mighty Good Basics received the highest score of 94, though the report called the company an "outlier". Denim brands were among the strongest performers, alongside intimates, outdoor and technical performance gear and some luxury labels.

The report also flagged Australia's consumption habits: the country ranks as the world's highest consumer of textiles per person, with more than 200,000 tonnes of clothing ending up in landfill every year.

Halliday said stagnating scores show more government action is needed. "A modern slavery statement, for example, isn't enough to move the needle on these practices," she said, adding that "everyone has a lot of room to improve."