Fashion Has A Big Problem

Nov 05, 2024
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Fashion Has A Big Problem

One decade on since the publication of the first Ethical Fashion Report, millions of workers in the global fashion industry continue to face injustice, abuse, low wages, and modern slavery. 

 

Hasina, a garment worker from Bangladesh is regularly forced to work overtime without pay. She recalls facing mistreatment at work and pressure to lie during audits. 

“We have to accept this because what will we eat if we lose our job? For us poor, we cannot be so choosy. No matter how they behave, we must go there to work,” she said. 

Her story is shared in the Ethical Fashion Report 20241, released by Baptist World Aid Australia in late October and available now online.

Baptist World Aid releases the 10th Ethical Fashion Report 20241

This is BWA’s 10th report and reveals slow progress in the Australian fashion industry’s ethical and sustainable practices. It shows 89 percent of companies assessed are failing to pay garment workers a living wage at any part of their supply chain and most are lacking policies for responsible purchasing and gender equality. 

One decade on since the publication of the first Ethical Fashion Report, millions of workers in the global fashion industry continue to face injustice, abuse, low wages, and modern slavery. The report is a powerful reminder of the harsh realities workers face in challenging conditions.

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Christians Called to Care

Gina Snodgrass is an Advocacy Specialist at Baptist World Aid. 

“As we release our 10th Edition Ethical Fashion Report on the Day for the Eradication of Poverty, it’s alarming to share that 89 percent of brands are failing to pay garment workers a living wage anywhere in their supply chain,” Ms Snodgrass said.  

“It’s time to call on companies to play their part and take meaningful action to ensure all workers in their supply chains earn enough to meet their family’s basic needs. As Christians, we are called to care about our global neighbours, including those who make our clothes, who are being exploited or working in unsafe conditions. 

“We hope our engagement with companies has helped highlight the areas where progress could be easily achieved, especially where some brands efforts remain lacklustre.
As fashion companies prioritise profit and the demands of production, addressing these critical issues can often take a backseat,” she said. 

Fashion Choices Come at a Cost

Kat Halliday, Advocacy Coordinator at Baptist World Aid, believes many consumers are justifying cheaper fashion purchases. 

“In today’s cost-of-living crisis… these choices come at a significant cost—particularly for garment workers who are already facing low wages,” said Ms Halliday.  

“I believe God gives all people value and dignity, and as followers of Him, we are called to model that in how we make decisions.

“Companies are only improving at the rate of one percent per year, meaning at this rate it will take 69 years for fashion companies to get to 100.

“They must accelerate their progress—not just for the millions of workers facing unsafe and forced labour conditions daily, or the environment suffering from pollution and overproduction, but also to meet their own ESG targets.

“We’re calling on Aussie Christians to buy less, buy better and expect more from the brands they love,” she said.

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Long Road Ahead

The 2024 report assessed 120 companies representing 460 brands in Australia and found an average score of just 31 out of 100, an increase of just two per cent in two years since the 2022 report. The report analysed six key issues in fashion supply chains: responsible purchasing practices, addressing gender inequality, payment of living wages, water stewardship, use of sustainable fibres and circularity. 

The report found the fashion industry has a long road ahead to eliminate labour exploitation from supply chains with only two out of 120 fashion companies able to confirm they pay a living wage at factories in the final stage of the supply chain.

Top scoring companies 2024

1. Mighty Good Basics (91) 
2. Patagonia (69) 
3. Rodd & Gunn (68) 
4. Inditex (66) 
5. Hanesbrand (65) 
6. Adidas (63) 
7. Puma (61) 
8. Forever New (60) 
9. KMD Brand (60) 
10. New Balance (60) 
11. Kmart and Target (58) 
12. Lululemon (58)  

Small steps in the right direction

Founded on a robust methodology that analyses company-provided information and/or publicly available documentation, the Ethical Fashion Report publishes scores out of 100 presenting a transparent assessment of each brand’s progress and performance. 

The overall results paint a bleak picture that shows progress is becoming stagnant for a large majority of fashion brands. But, encouragingly, some companies that have participated in the report for multiple years are showing positive change towards more ethical practices.

The average score for these brands increased from 34.8 in 2022 to 47.1.
In 2024, these brands demonstrated the strongest improvement in areas of supplier relationships and environmental sustainability.

Most improved companies 2024

1. Retail Apparel Group (+20.5) 
2. Lorna Jane (+20.3) 
3. Munro Footwear Group (+18.9) 
4. RM Williams (+16.1) 
5. Universal Store (+15.6) 
6. Sussan Group (+15.2) 
7. JD Sports (+14.7) 
8. Factory X (+13.7) 
9. Zimmermann (+13.5) 
10. Rodd & Gunn (+10.5)

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Lack Of Sustainable Practices Hurting The Planet

Fashion is also one of the most environmentally damaging industries for the planet, underlining the need for fashion companies to invest in sustainable fibres. In two years, there has been no improvement in this area. More than half of the companies or 52 percent, still only using sustainable fibres in 25 percent or less of their production, with some using none.  

What Australian Christians can Do

This year, Baptist World Aid is not only calling on the fashion industry to improve, but also encouraging Australian Christians to use their power to influence change.

Over the last 10 years there has been a significant shift in consumer trends, with Aussies overtaking the United States as the world’s biggest consumer of clothes, shoes and bags—with an average of 56 items and $2.5k per person being spent each year.

While companies maintain primary responsibility for supply chain conditions, Aussies can also help shift industry practice by engaging with the ethical fashion movement and speaking out to companies.

Baptist World Aid is urging people to use this year’s report and Ethical Fashion Guide as a tool to empower more ethical decisions, and to ultimately buy less, buy better and expect more from the brands they love. 

For more information visit Baptist World Aid Australia’s website here.

About Baptist World Aid Australia

Baptist World Aid Australia has been campaigning to end worker exploitation for over 11 years, beginning its research and reporting on the fashion industry in 2013. As one of Australia’s leading publications on ethical fashion, the Ethical Fashion Report and Guide helps consumers make better choices based on comprehensive data. 

Established in 1959, Baptist World Aid Australia works to create a better world for all with local Partners in 22 countries in the Pacific, Middle East, Southeast Asia, South Asia and Africa—dreaming of a world where poverty has ended, and all people enjoy the fullness of life God intends.

1 Methodology

The 10th Edition Ethical Fashion Report is based on data from 13,000 data points collected through the Ethical Fashion Surveys conducted with 120 companies between February and June 2024. 

The Report is the first full Ethical Fashion Report published since moving from an annual to a biennial cycle, a change made to give companies more time to implement and demonstrate meaningful improvements in their sustainability and ethical practices. It assesses evidence of company commitment and practices in areas of policies and governance, tracing and risk, supplier relationships and human rights monitoring, worker empowerment and environmental sustainability.

Companies are included in the research based on the criteria that they have a strong presence in Australian retail and generate over AUD $50 million in annual revenue. Companies that meet these criteria can either actively participate by completing the survey or have their publicly available information assessed by the Baptist World Aid Ethical Fashion team. 

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