Shein has received a higher ethical rating than several well-known Australian high street retailers in a new industry review, according to the 11th Baptist World Aid ethical fashion report released on Tuesday. The Chinese e-commerce giant scored 28 out of 100, beating companies such as Myer, Windsor Smith, Ghanda, and Boardriders, the owner of Quiksilver.
Shein ethics report scores and comparisons
The report assessed 138 Australian and international companies representing 543 fashion brands. It evaluated them on five broad supply chain topics, including worker empowerment and environmental sustainability. While Shein’s score of 28 was below the average of 31.5, it still outperformed several domestic retailers that received zero points.
Ghanda and Windsor Smith were among the worst-rated companies with scores of zero. Shein competitor Temu also received a zero. Other low scorers included activewear maker 2XU with two points, and Boardriders alongside formal wear brand Bec and Bridge, both scoring three.
Baptist World Aid noted that Shein supplied additional information to researchers, whereas Myer, Seafolly, Ghanda, Windsor Smith, Boardriders, 2XU, and Bec and Bridge did not participate. Companies that did not respond were assessed solely on publicly available information, which typically results in lower rankings.
The organisation stated it engaged in a rigorous 13-month process, contacting companies via email approximately 16 times. Despite this, 58% of the businesses were assessed only on public data, while 42% provided more detailed information.
Stagnating industry standards
Overall, the report found that only 13% of the fashion companies surveyed could show evidence of paying a living wage to any workers in their supply chain. Australia ranks as the world’s highest consumer of textiles per person, with more than 200,000 tonnes of clothing ending up in landfill annually.
Katherine Halliday, the ethical fashion lead at Baptist World Aid, said the report is designed to answer how strong a company’s systems are to protect against worker exploitation. She noted that Shein’s score had improved from previous years, attributing this to public scrutiny and resulting changes in the company’s practices.
However, Halliday expressed concern over the broader industry. Since the previous report in 2024, the average overall score improved by just 0.2%. She argued that a modern slavery statement is not enough to move the needle on actual practices and called for more government action to compel fashion companies to improve.
Denim brands, intimates apparel, outdoor gear, and some luxury labels were among the top performers. The Australian underwear label Mighty Good Basics received the highest score of 94, though the report described the company as an outlier.
Temu responded to the findings by stating that all its sellers must comply with a third-party code of conduct. This code prohibits forced, penal, or child labour and requires compliance with applicable laws on wages, working hours, and safe working conditions.
Source: The Guardian
