Shein has scored just 28 out of 100 in a major ethical fashion assessment, yet still finished ahead of Louis Vuitton, Dior and Fendi. The three luxury houses each scored 21 in the 2026 Ethical Fashion Guide, released by Baptist World Aid Australia on Tuesday, 20 October.
The findings form part of the organisation's 11th Ethical Fashion Report, which evaluated 138 companies representing 543 brands. The industry average was 31.5 out of 100, leaving Shein below the overall benchmark despite its lead over the three designer names.
Louis Vuitton, Dior and Fendi share the same score because they belong to luxury conglomerate LVMH, which was assessed at company level. The results are not separate investigations of each fashion house or proof that Shein's factories offer better working conditions.
Why Did Shein Outscore Louis Vuitton, Dior and Fendi?
Researchers examined 48 questions covering supplier tracing, workers' rights, company policies, monitoring and environmental sustainability. Assessments drew on public disclosures and evidence companies provided directly. Baptist World Aid does not inspect factories as part of the research, meaning the scores measure documented management systems rather than conditions verified on production floors.
Shein improved from 20 points in the 2024 report to 28 this year, an eight-point rise. The retailer supplied additional information to researchers, while companies assessed solely on public disclosures could lose credit when supporting evidence was unavailable. Participation and transparency can therefore influence a score without establishing that labour abuses have disappeared.
In an article updated on 9 October, Baptist World Aid warned, 'Remember a blue circle does not mean a green light', referring to the report's colour-coded rankings, which show how companies compare with one another. Even higher-scoring businesses can fall short of the survey's standards.
Luxury Labels Face the Same Supply Chain Scrutiny
LVMH's 21-point result extends beyond the three brands in the headline. Its other fashion houses, including Givenchy, Loewe and Marc Jacobs, also inherit the group score in the guide. That places several names associated with luxury craftsmanship beneath an ultra-fast-fashion retailer on this particular assessment.
Across the report, luxury and premium companies averaged 38.63 points, compared with 37.91 for fast-fashion businesses. The gap between those categories was less than one point, although both averages exceeded Shein's result. The figures do not assess garment quality or establish that expensive clothing is necessarily produced ethically.
LVMH said in its 2025 report that all its employees received at least a living wage and outlined supplier audits under its responsible purchasing framework. However, that commitment does not necessarily extend to workers employed by external suppliers. The score reflects publicly disclosed safeguards rather than independently verified factory conditions. Shein's supplier rules also ban forced and child labour, although the existence of these policies does not confirm compliance.
Most Fashion Companies Still Fall Short on Wages
The broader results reveal a substantial gap between companies' commitments and what they can demonstrate. Some 87% of assessed businesses could not provide evidence of a living wage being paid at any supply chain facility. Only 4% had made a credible commitment to living wages across all final-stage production facilities.
'A living wage is not a luxury,' Halliday said in a Baptist World Aid podcast cited by the organisation this month. She explained that it should cover everyday necessities, including food and children's schooling. Worker empowerment was the weakest-performing of the report's five assessment areas.
Elsewhere in the rankings, Patagonia scored 70 out of 100, Australian underwear brand Mighty Good Basics received 94 and shopping platform Temu scored zero. Shein's 28 remains a low score, but it was still enough to outperform Louis Vuitton, Dior and Fendi. The results show that even some of fashion's most expensive labels lag behind fast-fashion retailers when it comes to publicly disclosing labour safeguards.
