The Australian fashion industry is at crossroads. The cost of living crisis has led many companies to strip back what they consider to be ‘non-essential’ spending, which too often includes environmental, social and governance (ESG) actions, says the 2024 Ethical Fashion Report.
THE RESEARCH: The report by Baptist World Aid Australia researched 120 fashion companies representing over 450 brands.
- It covers five sections across policies, tracing, supplier relationships, worker empowerment, and environmental sustainability—collectively analysing 13,000 data points.
- To provide transparency, companies were scored out of 100 based on how they were going about protecting workers and the environment.
KEY FINDINGS: The average score increased from 29.2 in 2022 to 31.3 in 2024
- While a two-point increase is a small step in the right direction, the scores fall far short of the maximum score that can be awarded—100 points—and only the top-scoring 20% of companies managed to receive a score higher than 50 out of 100.
- 88.6% of the companies assessed do not pay a living wage in final stage facilities.
- Only 35% have responsible purchasing practices, policy and strategy.
- 51.2% don’t have any policy or strategy to address gender inequality.
- While 62.6% of the companies use sustainable fibres in less than half of product volume, 16.3% use none.
- Apparel companies outperformed the footwear players.
- Top 5 companies that showed better performance include Retail Apparel Group, Lorna Jane, Munro Footwear Group, R.M. Williams.
The gap between company performance and best practice scores highlights significant failings within the fashion industry, including: the failure to assess and protect against key supply chain risks; preventing human and environmental exploitation; and paying workers a living wage.
- Additionally, companies are not adequately safeguarding the environment through sustainable fibre use, responsible water and chemical management and circularity practices.
- All companies, even those in the top quintile of the 2024 assessment, have gaps in their ethical sourcing approach and must commit to continuous improvement and industry best practices.
At the same time, the industry has been subject to increased scrutiny as consumers demand more from brands that they support and governments tighten regulations. As companies respond to pressure to reduce their environmental footprint, they must pursue a just transition by ensuring that these efforts do not come at the cost of advancing human rights—especially given that the communities most impacted by a changing environment are often the same ones exploited by the industry’s supply chains
- As it stands, the fashion industry is failing the workers and environment that support it. Companies must make real change, moving away from models of exploitation and towards empowerment and sustainability.
THE STUDY: The Ethical Fashion Report examines the fashion industry’s practices regarding worker rights and environmental sustainability throughout supply chains, providing a comprehensive, industry-wide snapshot.
- The Ethical Fashion Report was first created in 2013 in response to widespread worker exploitation and a lack of ethical practices. It followed the tragic Rana Plaza collapse which exposed the conditions in which many garments are made and ignited the ethical fashion movement.
- Authors: Gina Snodgrass, Katherine Halliday, Ethical Fashion Research & Report Contributors: Ellyse McCallum, Sarah Knop, Sophia Russell, Glyndwr Rhys Stamnas, Bonnie Graham, Carolyn Kitto.
