Fashion Industry Neglects Living Wages for Indirect Staff in 2022

In 2022, not a single company in the clothing industry compensated all their indirect employees, which include garment and supply chain workers, warehouse workers, models, and drivers, with living wages, revealed the Fashion Accountability Report 2022 by Remake, a global advocacy organization focused on fair pay and climate justice within the industry. 

During the investigation, only 17 out of the 58 companies engaged with Remake’s process, while 67% did not respond. Regardless, the organization found that none of the companies achieved a perfect score out of the possible 150 points. The highest-rated brand was Burberry, scoring 38 points, H&M scored 31, Shein scored an 8, while URBN Group scored 2. 

The average score for companies in the industry is 14 out of 150 points, indicating significant variability in commitment to social and environmental sustainability. Scores ranged from zero to 38, showcasing diverse approaches within the industry. Notably, 35 companies (43%) scored 10 points or less, highlighting a prevalence of laggard companies making minimal commitments to progress.

The data presented revealed that only three undisclosed companies reported tangible progress in reducing their overall carbon footprint following fully approved science-based targets. These reductions, however, are speculated to be attributed to the lingering impact of the pandemic slump, according to the report. 

Concerning transparency, 27 companies (47%) disclosed a detailed list of their Tier 1, cut-and-sew garment factories, while 16 companies (28%) published a complete list of Tier 2, fabric mills. Only two companies (3%), ASOS and PUMA, provided supplier lists that trace down to Tier 3, processing facilities, aligning with The Transparency Pledge.

Regarding chemical management, 28 companies (48%) adopted a Manufacturing Restricted Substances List (MRSL) and wastewater guidelines equivalent to or more stringent than those compiled by Zero Discharge of Hazardous Chemicals (ZDHC).

While 30 companies (52%) adhere to a policy against using furs and exotic skins, only six companies (10%) showed consistent year-on-year progress in sourcing traceable and certified animal fibers. There are significant variations in the adoption of international agreements, with 17 companies (46%) signing the International Accord, while only two companies (3%), Reformation and Everlane, officially endorsed the FABRIC Act, a movement seeking to protect garment workers.

Mexican brands are not evaluated by Remake, but the Fashion Transparency Index noted that 58% of the 31 brands evaluated do not disclose their policies and commitments “to improve labor rights and environmental issues along their value chain.” In most cases, workers endure 10- to 12-hour workdays, sometimes extending to 14 hours during peak demand. 

The Mexico Center for Environmental Law (CEMDA) previously published a document titled “Promotion of Circular Economy in the Mexican Apparel Industry”, but concrete legislation within the sector is still pending.