chain governance, including workplace conditions and wages, being accessed. However, despite 65 per cent of Australian consumers actively taking into account ethical factors when making purchases, the 2023 World Baptist Aid report found that there was a “huge gap” between the promises made and the conditions actually faced by garment workers. According to key findings, at the current rate, it would take 75 years for all companies to pay a living wage at a minimum of one factory each, and 30 years for all companies to achieve traceability of more than 75 per cent on raw materials and fibre producers. While there has been progress made by certain brands, the retailers involved in the report reached an average, ethical benchmark of 43.6 out of 100.   Further, just five per cent of the retailers assessed could provide evidence of unions or collective bargaining agreements for over three quarters of their suppliers. Pivotal role to play While the criteria used to determine World Baptist Aid findings has been scrutinised by certain industry players, a brand that was found to have significantly reformed its supply chain governance was Kmart. A Kmart spokesperson told Inside Retail that the brand is proud of the improvements it has made over the years, and has promised to continue making improvements in this space.  The department store also acknowledged that it has more work to do to ensure that it is living up to the broader community’s standards and expectations. “We know through insights from our customers that [they] want to know that we are making meaningful change, [and] that the products they buy aren’t negatively impacting the workers who make them, [as well as] the local communities and the planet,” the spokesperson said. “People and planet considerations are in every decision we make in our supply chain.” Kmart – which has a “not good enough” brand ranking on Good on You, last updated in January 2021 – is working to improve traceability through its supply chain.  According to the spokesperson, it is deepening its disclosure policies around the gender breakdown of workers in supplier factories, as well as the audit programs it adopts. “[We are committed to] strengthening our human rights monitoring across our supply chain through key partnerships, increasing our use of sustainable fibres in our product ranges, and improving our purchasing practices [by] implementing a more transparent open costing system,” the spokesperson said. “Moving forward will require industry wide solutions, the application of new technology and a willingness by us to evolve the way we operate. We know we have a pivotal role to play here, and we are actively engaged.” Distressing reality Managing partner of The Growth Activists, Rosanna Iacono affirmed that there is a significant gap between the promises made by the retail industry and the actions implemented by fashion and retail brands to improve worker conditions within retail supply chains. She told Inside Retail that after the Rana Plaza collapse, businesses, governments and NGOs mobilised to drive change, with a distinct focus on improving the safety of garment workers. This consequently saw the emergence of initiatives including the Alliance for Bangladesh Worker Safety and the Accord on Fire and Building Safety, as well as legislation such the Modern Slavery Act, and laws in the EU and US which focused on preventing forced labour. Leading retailers also implemented strict codes of conduct, audits and other mechanisms to ensure that there was greater supply chain transparency. Despite these commitments, Iacono believes there are several reasons as to why the needle hasn’t moved to a greater extent – despite the wishes of consumers. This included the economic impact of Covid-19, with brands – particularly those in poorer countries – prioritising making up lost revenue due to cancellations by western retailers  “The ultimate losers here are garment workers, whose wages have not increased despite rising costs around them. Retailers [are] of course complicit in the harm caused to these underpaid workers,” Iacono said. Another key factor is the prevalence of forced labour, which is generating about $150 billion in organised crime revenue each year. She explained that the number of people who are subject to a form of modern slavery increased by 10 million since 2016, to 49.6 million victims as of last year.  This demonstrates a “distressing reality,” regarding the exploitation of garment workers. Iacono also pointed to the slow progress of retailers to drive more meaningful change in these areas, and that brands, many of which are facing significant economic headwinds, are reluctant to enhance their supply chain compliance practices, and pay a price per garment that would enable supply chain workers to be paid a living wage. “Value channel players in particular have not faced the responsibility to restore true cost,” Iacono said. Halo effect With younger generations typically being more conscious of ethical consumption, there’s the presumption that retailers will face more pressure to improve their supply chain governance in years to come. According to Iacono, pressure from both consumers and investors are providing a “pincer effect,” and forcing them to move more rapidly toward implementing stronger ESG practices. “Despite the cost of living challenges they are facing, we are seeing Gen Z and Gen Alpha vote with their wallets,” she said. “Millennials are also ethically-oriented, and as the ‘great wealth transfer’ happens – and this generation inherits their baby-boomer parents’ wealth –  they will also be investing with more ethical principles than previous generations.” She cautioned that a large number of businesses have adopted ESG as a “box ticking exercise,” but that other brands are committed to transforming their operations. This can be more accurately reflected by retailers undergoing the B Corp certification process, which requires brands to rigorously measure, report and provide evidence of good practice. “We have several clients who are fully committed to or have already achieved the goal of factory workers being paid a living wage. [I] believe these leaders will have a halo effect on the rest of the industry who will eventually need to step up to keep up,” she said. She added that ultra-fast fashion brands that are less committed to improving practices aren’t being punished by consumers as yet, as “price and novelty-effect still trumps ethics.” “[But] we are seeing every sign that this consumer group is shrinking, especially as trends show that re-sale is set to surpass fast fashion in terms of overall market size within the next 3 years,” Iacono said. “The conscious consumer segment is growing quickly.” Engage directly with brands For consumers who want to buy from brands who align with their personal values, Iacono believes that they should do their own research – and examine the rigour of reports, including the Baptist World Aid fashion guide – which might be limited by its guidelines. She also said that consumers should engage directly with brands on their directly controlled channels and platforms, and not be afraid to ask all the hard questions. “A brand with excellent practice will generally have a very comprehensive section on their website, driven by data and evidence, and with clear goals outlined,” she said. “They will have very well-informed store staff, and will not be afraid to answer challenging questions honestly.”