Koala
Partly verifiedKoala isn't doing enough to protect workers: there's no proof workers earn a living wage, and unions and workers' rights are heavily restricted in China and India.
Last researched 7 October 2026
Not doing enough. Workers in the supply chain are likely underpaid, unprotected or in danger, and in the worst cases face forced or child labour. Look for a better-graded alternative. What this grade means
Good: 1 of 5
- Pays a living wage
- Respects worker rights
- Full supply chain audit, or made only in countries with rigorous labour standards
- No child or forced labour findings
- Publishes where its products are made (supplier list, named farms or its own factories)
Great: 0 of 3
- Pays beyond a living wage
- Finds and fixes problems, or invests directly in workers' communities
- Actively empowers workers
Needs all Good requirements plus two of these.
Red flags: 1
- Hidden or unaudited supply chain (no certification or documentation, or major production in countries with poor worker rights without independent audits)
Where it's made
| Country | Worker rights | Legal wages | Forced labour risk |
|---|---|---|---|
| China 90% | Systematic violations | Below a living wage | Moderate |
| India 5% | Systematic violations | Well below a living wage | High |
| Thailand 5% | Systematic violations | Below a living wage | Moderate |
Country conditions from the ITUC Global Rights Index, Global Slavery Index and living wage benchmarks. Certifications and audits can raise a company above its countries' baseline.
Why this grade
- Timber, cotton textiles and ceramics carry moderate raw-material risk; illegal logging is linked to forced labour in some regions.
- Certified B Corp: Whole-company assessment. Labour is one part of the score, so it is supportive rather than proof.
- Modern slavery statement
Koala moved manufacturing to China in 2020, and its FY25 modern slavery statement lists 18 direct suppliers at 21 sites: 19 in China, one in India and one in Thailand. The statement reports 18 BSCI, SMETA or QIMA ethical audits at direct suppliers, Sedex membership for over 80% of supplier spend, a supplier code of conduct and a multilingual whistleblower line, and says audited sites pay at least the minimum wage. It does not publish a supplier list or any evidence or time-bound plan for paying a living wage.
What independent sources say
| Source | Result | Details |
|---|---|---|
| B Corp directory | Found | Certified B Corp since April 2018, with an overall score of 120.5 in 2025 (Workers 24.1). View ↗ |
| Australian Modern Slavery Register | Found | Lodges modern slavery statements, including one under K Sleep Holdings Pty Ltd for FY2023 and an FY25 statement under The Koala Company Limited. View ↗ |
| Business & Human Rights Resource Centre | Not listed | No allegations or company responses concerning Koala appear on the Business & Human Rights Resource Centre. View ↗ |
Sources (7)
- Koala Modern Slavery Statement FY25 · archived copy · 203 employees; 18 Tier 1 vendors at 21 sites (China 19, India 1, Thailand 1); 18 ethical audits (BSCI, SMETA or QIMA) at Tier 1; over 80% of spend with Sedex members; 100% of sites paying minimum wage
- Koala – Our Impact · archived copy · Links the FY25 modern slavery statement, states B Corp certification and FSC-certified timber in many products.
- Koala – B Corp directory profile · archived copy · Certified B Corp since April 2018; overall score 120.5 (Workers 24.1, Community 42.6); previous scores 91.9 (2022) and 83.9 (2018).
- Koala Sustainability Profile – Sustainability Tracker · archived copy · Koala recertified as a B Corp in 2025 with a score of 120.5.
- Koala (company) – Wikipedia · archived copy · Sydney-based, founded 2015; manufacturing moved to China in 2020; listed on the ASX on 31 March 2026.
- The Koala Company jumps to profit in FY26 – The Motley Fool Australia · archived copy · FY26 revenue of $332.3 million; operates in Australia, Japan, the US and the UK.
- Modern Slavery Statements Register – K Sleep Holdings Pty Ltd · archived copy · Koala's entity K Sleep Holdings Pty Ltd lodged a modern slavery statement for 1 July 2022 to 30 June 2023.
Last researched 7 October 2026 · details still being verified. Grades are opinions based on the evidence listed here. Represent this company and think something is wrong? A right-of-reply form is coming soon.