Shein Outperforms Australian Retailers on Ethical Fashion Standards 2026

Shein, the online fast-fashion giant, has outperformed several well-known Australian retailers on ethical standards, according to the 11th Baptist World Aid ethical fashion report. The report, released on Tuesday, assessed 138 Australian and international companies representing 543 fashion brands, and found that Shein scored 28 out of 100, beating local names like Myer, Windsor Smith, Ghanda, and Quiksilver owner Boardriders.

The finding may surprise consumers who associate Shein with ultra-low prices and frequent criticism over its environmental impact. Yet the report highlights that many Australian high street retailers are lagging even further behind on supply chain ethics.

What the Ethical Fashion Report Measured

Baptist World Aid surveys companies on five broad supply chain topics: worker empowerment, environmental sustainability, paying a living wage, transparency, and auditing. Each company receives a score out of 100 based on the evidence it provides.

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. This means the vast majority of brands, including many household names, are not yet ensuring that garment workers earn enough to meet basic needs.

Shein’s Score Compared to Australian Retailers

Shein’s score of 28 was below the industry average of 31.5, but it still surpassed several prominent Australian retailers. Myer, Windsor Smith, Ghanda, and Boardriders all received lower scores, indicating weaker ethical practices according to the report’s criteria.

The report noted that Shein has faced criticism for its environmental impact and accused of facilitating overconsumption through very cheap prices. However, on the specific measures used by Baptist World Aid, the company demonstrated more evidence of ethical practices than some local competitors.

The table above shows the relative performance based on the report’s findings. Exact scores for the Australian retailers were not disclosed in the excerpt, but all were below Shein’s 28.

Why This Matters for Australian Shoppers

Australia 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. This statistic underscores the environmental pressure created by fast fashion consumption.

The report stated that “overproduction particularly remains a growing challenge to sustainability.” As Australian shoppers continue to buy large volumes of clothing, the ethical and environmental implications of those purchases become increasingly significant.

For consumers who care about ethical fashion, the report suggests that choosing between brands is not straightforward. A company with a low score overall may still outperform others on specific issues, and local retailers are not automatically more ethical than international giants.

Key Takeaways from the Report

• Only 13% of surveyed fashion companies could show evidence of paying a living wage to any supply chain workers.
• Shein scored 28 out of 100, below the average of 31.5 but higher than Myer, Windsor Smith, Ghanda, and Boardriders.
• Australia has the highest textile consumption per person globally, with over 200,000 tonnes of clothing sent to landfill annually.
• Overproduction remains a major sustainability challenge, according to the report.
• Consumers should look beyond brand reputation and examine specific ethical criteria when making purchasing decisions.

The Broader Context of Fast Fashion Ethics

Shein’s business model relies on producing thousands of new styles rapidly and selling them at very low prices. This approach has made it a dominant player in global fast fashion but has also drawn scrutiny over labor practices and environmental footprint.

The Baptist World Aid report does not absolve Shein of these concerns; its score of 28 is still below average. However, the comparison with Australian retailers reveals that many local companies have even less evidence of ethical practices in their supply chains.

This raises questions about how Australian consumers can hold retailers accountable. Transparency and disclosure are critical, as companies that do not report on their supply chains cannot be assessed fairly.

What to Watch Next

The report’s findings may prompt Australian retailers to improve their ethical standards and increase transparency. Consumer pressure and investor attention could drive changes in supply chain management.

Baptist World Aid’s annual report serves as a benchmark, and future editions will show whether the lower-scoring Australian brands take steps to improve. Shoppers can use the report to make more informed choices and advocate for better practices in the fashion industry. The background to this story is set out in Fashion: latest articles.