How brands are graded and ranked
Every company gets one of four grades, decided by fixed rules. Each brand page lists the Good requirements it meets and any red flags, and says in plain words why that adds up to its grade.
The four grades
Good
A responsible choice. Workers are paid a living wage or covered by a strong fair-pay scheme, and can stand up for their rights. The supply chain is independently checked, or made in countries with rigorous labour laws, and no forced or child labour is confirmed. Good companies that go further earn 3 to 6 stars.
Full breakdown of GoodOn Track
Heading the right way, but not there yet. Workers are paid a living wage, or the company is credibly working towards one. There's no confirmed forced or child labour, documented abuse or failing rating, but at least one Good standard is still missing. Small businesses that trade directly with named farms can be On Track on their own word. Until a living wage is proven, workers may still be paid less than they need.
Full breakdown of On TrackLacks transparency, A poor grade
The company doesn't show that the people who make its products are paid and treated fairly. There's no recent confirmed harm on its record that it hasn't put right, though older problems, links through suppliers and problems it found itself and is fixing may be listed. In the countries and industries involved, a supply chain nobody checks usually means workers are underpaid or unprotected.
Full breakdown of Lacks transparencyHarm on record, A poor grade
Recent harm to workers is confirmed and on the record, and the company hasn't shown it has fully put it right: a forced or child labour finding, clear abuses of labour rights, or serious pay, rights or safety problems. Look for a better-graded alternative.
Full breakdown of Harm on recordMost brands land in the two poor grades.
What a poor grade means
Most companies can't show that the people who make their products are paid enough to live on, and many have confirmed problems.
Lacks transparency and Harm on record are both poor grades, shown in orange and red. The difference is what we found. Harm on record means recent harm to workers is confirmed and on the record, and the company hasn't shown it has fully put it right. Lacks transparency means the company doesn't show that workers are treated fairly. In the countries and industries these companies buy from, a supply chain that nobody checks usually hides low pay and weak protections.
We grade against a fixed standard, not on a curve.
Treat Lacks transparency as a warning, not a clean bill of health.
How lists are ranked
Lists are sorted by grade first (Good, On Track, Lacks transparency, Harm on record). Within a grade, companies with stronger evidence, fewer confirmed problems and lower labour risk where they make things come first, and stars move Good companies up. Companies that can't be told apart are listed by name.
The number beside each brand is its place in the list you're looking at.
Stars and other marks
Good is the top grade. A Good company that does one of these earns 3 stars, and one more for each of the others, up to 6.
Stars only show on Good companies; the checklist on every brand page shows which ones a company would earn.
- Pays above a living wagePublished wage data showing pay above the living wage benchmark.
- Gives workers a real voiceUnion agreements, worker committees, worker ownership, or membership of WFTO, Fair Wear or the Fair Labor Association (whose members must run grievance channels workers can use).
- Open supply chainGoes further than Good's transparency test: publishes its own supplier list, named farms or its own factories for its whole range (not only part of it), and fully traces, certifies or upcycles every high-risk raw material it uses, even in a few products. For coffee, tea, cocoa and other crops, it also names its farms, grows the crop itself or is fully certified by Fairtrade, Fair for Life or WFTO.
- Finds and fixes problems, or invests in communitiesPublicly reports and fixes problems such as child labour, invests directly in workers' communities, or is worker-owned or WFTO.
Second-hand, rental, repair and refurbished businesses are Good by rule, because they create no new demand for factory or mining labour. They don't earn stars, which are for what a company does for the people who make new goods.
Marks you'll see
- Stars. 3 to 6 on a Good company that goes above and beyond: 3 for the first way, one more for each further way. What earns a star
- Self-reported. A small, independent coffee or chocolate business graded On Track on its own direct-trade claims. The rules
- Best available. The strongest On Track brand in a category where no brand is Good yet. It has its own mark, a rosette, because a star only ever means one earned by a Good company. How we pick
- Est. Nothing was found about the company itself, so the grade is assumed from where the industry usually makes its goods. Evidence levels
- Little disclosed. We researched the company but found little about where it makes things, its certifications or its suppliers, so the grade assumes where its industry usually makes its goods. Evidence levels
What each grade needs
Any red flag means a poor grade, unless the company pays (or is certified as working towards) a living wage and its only problem is a gap in supply chain checks.
Good requires all of
- Pays a living wage, or holds a strong fair-pay certification
- Respects worker rights
- Supply chain independently audited or certified, or at least 80% made in countries with strong labour standards
- No child or forced labour findings or links
- Names the factories or farms that make its products, or is fully certified by a scheme that holds and audits that list
- If it passes the living wage or audit test only because of where it's made: shows where its earlier stages happen too (why this matters)
- Passes its category's raw-material check, where there is one (below)
- No red flags
On Track needs all of
- Pays a living wage, or is working towards one (below)
- No forced or child labour, clear breaches of labour conditions, or failing ratings
- No confirmed problems with workers' pay, rights or safety that it hasn't shown it is fixing
- No other red flags, or only one Good requirement missed
Red flags
- No evidence it pays a living wage
- Clear breaches of labour conditions
- Hidden or unaudited supply chain (no certification or documentation, or major production in countries with poor worker rights without a full independent audit)
- Forced, slave or child labour found in or linked to its supply chain
- Failing or very low scores on independent ratings
- A confirmed problem with pay, rights or safety not shown to be put right
- Relies on high-risk mined materials it can't trace
Also a poor grade
- Has a confirmed problem with workers' pay, rights or safety that it hasn't shown it is fixing, even if it's working towards a living wage.
- Relies on hazardous mined materials (cobalt, gold, tin, mica, gemstones) and has taken no steps to trace them. Tracing them to the mine, using recycled metal or selling refurbished goods lifts this. In electronics and jewellery, first steps such as a published smelter list lift it out of the poor grades but keep it at On Track at most.
Harm on recordrather than Lacks transparency
- A poor grade with at least one confirmed, counted problem that is serious (forced or child labour, a clear breach of labour conditions, or a serious wage, rights or safety problem), happened within the last 5 years and hasn't been fully put right, or has no public record of being put right.
- It must be a finding, not just a link: a problem found at a factory or farm that made its products (its own or a subsidiary's included), or a regulator acting on its goods. A link counts only if the company failed to act: a supplier that received transferred Uyghur workers, a report naming it among many brands, cotton or materials likely from Xinjiang, or a report on its group that doesn't say which brands were affected (even when it found abuse at the group's suppliers).
- Older or indirect problems, and ones only partly put right, stay listed on the brand page with their year, and the list note names them (for example "Forced labour link, 2019"), but the grade is Lacks transparency. A problem fully put right stays listed but no longer counts against the grade.
How each test is decided
- Living wage
Each brand page says which of these levels the company reached. The first four pass Good's living wage test.
- Proven. Passes Good's living wage test. WFTO Guaranteed Fair Trade, SA8000 certification of the company's own factories, award wages checked by Ethical Clothing Australia, or evidence that workers at its main factories are paid a living wage.
- Award wages independently checked. Passes Good's living wage test. Ethical Clothing Australia checks that every worker in the brand's Australian supply chain is paid award wages and entitlements. Australian award wages are about a living wage, so this passes Good's living wage test.
- Strong fair-pay scheme. Passes Good's living wage test. Fairtrade, Fair for Life or Fair Trade USA factory certification, or direct trade with published prices. These raise pay and are independently checked, but don't guarantee a full living wage.
- Presumed from country. Passes Good's living wage test. At least 80% made in countries whose legal minimum wages are about or close to a living wage. Not checked at the company itself.
- Working towards one. Certified or publicly committed to closing the living wage gap (Fair Wear, GOTS, Fair Labor Association, a top Chocolate Scorecard rating, or a time-bound plan), or proven for part of its supply chain only.
- No evidence. No living wage evidence found.
- Working towards a living wage
Brands at this level can reach On Track, but not Good. What counts as a plan
- Minimum wage
Paying the legal minimum wage is expected of every company, but doesn't earn On Track on its own. In Bangladesh, Cambodia or Pakistan it is a third to a half of a living wage.
- Pays above a living wage
Earns a star on a Good company. Published wage data showing pay above the living wage benchmark. Paying exactly a living wage, including through WFTO Guaranteed Fair Trade, is Good.
- Worker rights
Based on the ITUC Global Rights Index for the countries where products are made, raised by schemes that protect union rights, and failed by documented rights or safety breaches.
- Full supply chain audit
Independent supply chain schemes (Fairtrade, Fair Wear, GOTS, WFTO and similar, and SA8000 where it certifies the company's own factories), a published supplier list backed by third-party audits, or direct trade. Otherwise, at least 80% made in countries with strong labour standards, and the brand page marks this as presumed from where it's made. Country labour ratings
- Where the country presumption doesn't hold
For clothes and shoes made in Italy, being made there doesn't count towards the living wage or audit tests unless the company publishes its suppliers or has them independently audited. This covers Italian fashion and leather goods, where Milan prosecutors have found luxury brands' subcontractors exploiting migrant workers.
For own-brand and fresh food made in Australia, being made there doesn't count towards the living wage or audit tests unless the company publishes its suppliers or has them independently audited. This covers Australian farm and meat work, where a NSW parliamentary inquiry, the Fair Work Ombudsman and the supermarkets' own audits have found labour hire firms underpaying migrant workers.
- "Made in" covers the final stage
Customs and consumer law in the EU, Australia and elsewhere give a product the origin of its last substantial transformation, so "Made in Italy" or "Made in Australia" can mean only the last stage happened there, while yarn, fabric, shoe uppers, parts or watch movements were made somewhere else.
So where a company passes the living wage or audit test only because of where it makes things, Good also needs it to show where its earlier stages happen, and that they're in countries with strong labour standards or independently audited. Without that, where it's made still counts towards On Track.
A few labels do cover the earlier stages by law and count: "100% Made in Italy" (every stage in Italy) and "Product of Canada" (98% of costs in Canada). "Swiss Made" doesn't on its own, because only 60% of the cost has to be Swiss, and nor does the Australian Made logo. Packing, labelling or simple assembly never make a product "made" somewhere. Coffee, tea, chocolate and other crops are recorded where they're grown, so this doesn't apply to them.
- Transparency
Good companies name the factories or farms that make their products: a supplier list, the farms or co-operatives they buy from, or their own factories. A product fully certified by Fairtrade, Fair for Life, WFTO or Ethical Clothing Australia also counts, because the certifier holds and audits every farm or workshop. The "Open supply chain" star needs the company to name them itself, and for coffee, tea and cocoa to name its farms, grow the crop itself or be fully certified by Fairtrade, Fair for Life or WFTO. Naming only the countries it makes in doesn't count, because a country can't be checked the way a factory can.
- Problems on record
Only confirmed problems count, and old ones drop off after 10 to 15 years. A problem the company has fully put right for the people affected stops counting straight away, so it no longer stands between a company and Good. The company still has to pass every other test, such as showing its workers are now paid a living wage. A problem it has only partly put right, for example with an action plan, part-payment or by leaving the supplier, still counts until it's fully put right. A link through a supplier stops counting once the company ends it by leaving the supplier or region. A policy, pledge or investigation isn't enough. Problems a company finds, publishes and is fixing itself don't count against it either. The same goes for problems found by an independent scheme it belongs to, such as Fair Wear or the Fair Labor Association, so joining a scheme that audits you never counts against you. If it found a problem but hasn't shown it is fixing it, it counts, and the brand page says so next to the problem. How problems are counted
- Parent companies
A parent company's findings and ratings count against a brand when the brand shares the parent's supply chain for the products rated. A brand whose products are fully certified by Fairtrade, Fair for Life, WFTO or Ethical Clothing Australia has its own certified supply chain, so a parent's failing rating isn't counted against it, and the brand page says so. Who owns what
- Red flags and Good
A Good company has no red flags at all. Any red flag means a poor grade, unless the company pays (or is working towards) a living wage and its only problem is a gap in supply chain checks, which can still be On Track.
- Second-hand, rental and repair
Op shops, resale, refurbished electronics, clothing rental and repair services are graded Good when there are no red flags, because buying from them creates no new demand for factory or mining labour. They don't earn stars. Refurbished electronics pages note that refurbishing still needs new batteries, screens and parts.
- No information?
Companies we found nothing about are graded on the labour standards expected in the countries where their industry usually makes its products. These grades are marked Est. A company we've researched is never Est., even if what we found is thin. If we couldn't find where it makes things, its grade is marked Little disclosed.
- Evidence levels
Verified, Graded by rule, Partly verified, Little disclosed, Self-reported, Estimated. These say how much to trust a grade, separately from the grade itself. Second-hand and refurbished businesses are "Graded by rule", because their grade comes from reuse, not from evidence about their workers. Evidence levels
- Company size
Labour Lens only rates companies with 10 or more employees. Below that, a business is usually one or a few people making things themselves, there's rarely any public information to grade, and a public grade would weigh on individuals rather than a company.
Category checks
The worst harm often sits in raw materials that factory audits never reach, and that differs by category. So some categories have one extra check.
Pay, rights and supply chain checks mean the same thing in every category, so grades stay comparable.
- Electronics: minerals
Good needs cobalt, gold and other conflict minerals traced to the mine. Publishing its smelter list, a conflict-minerals programme or some recycled metal counts as working towards it (On Track at best). With none of these it's Lacks transparency.
- Jewellery: conflict-free stones and gold
The Kimberley Process alone isn't enough: it only covers diamonds that fund rebel wars, not abuses by governments or forced labour. Responsible Jewellery Council certification, lab-grown stones, recycled gold or Fairmined gold count as working towards it. Good needs diamonds, gems and gold traced to the mine, or lab-grown stones with recycled or Fairmined gold. With none of these it's Lacks transparency.
- Fish & seafood: boats, farms and crews
Forced labour on fishing boats happens at sea, out of reach of factory audits. Good needs the catch traced to the boat or farm and crews' or farm workers' conditions checked independently, for example through Fair Trade USA seafood or a vessel standard such as RFVS. Tracing alone, or environmental labels such as MSC, ASC or BAP, counts as working towards it (On Track at best). With none of these it's Lacks transparency.
- Supermarkets & grocers: farms and labour hire
Underpayment and visa-linked exploitation on Australian farms, in meatworks and through labour hire firms sit below the audits supermarkets rely on. Good needs the supermarket to have the farms, meatworks and labour hire firms behind its fresh and own-brand food checked independently, and to publish what the checks find and what workers were repaid. Requiring audits or Fair Farms certification without publishing the results counts as working towards it (On Track at best). With none of these it's Lacks transparency.
- Cars, bikes & e-mobility: battery metals and aluminium
The worst harm is in cobalt, nickel and lithium mines and in aluminium smelted in Xinjiang, where audits can't go. Good needs battery metals traced to the mine and aluminium traced to smelters outside Xinjiang (a car without a big battery needs only the aluminium). Membership of IRMA or the Aluminium Stewardship Initiative, a published refiner list or some traced metal counts as working towards it. With none of these it's Lacks transparency.
- Solar & batteries: silicon
Much of the world's solar silicon is made in Xinjiang under state-run forced labour. Good needs the silicon in the panels sold here traced to the smelter or quartz mine, outside Xinjiang, for example through Solar Stewardship Initiative Silver or Gold traceability. Tracing only to the polysilicon plant, or for some panels, counts as working towards it. Home batteries and inverters are checked on their battery metals instead, like electronics. With none of these it's Lacks transparency.
- Beauty & personal care: mica
Children mine much of the natural mica that gives make-up its shimmer, in India and Madagascar. Good needs only synthetic mica or none, or natural mica traced to mines that are checked independently. Responsible Mica Initiative membership counts as working towards it. A brand that uses natural mica it can't trace is Lacks transparency; toothpaste, razor and other brands with no mica aren't affected.
- Chocolate: child labour
Good needs farm-level child labour monitoring and fixing, through Fairtrade, Fair for Life or the company's own published system.
- Clothing, homewares, chocolate, beauty and supermarkets: high-risk raw materials
Cotton, leather, natural rubber, silk, cashmere, timber, hazelnuts, palm oil, tomato paste, and carnauba wax, jasmine and vanilla are linked to forced or child labour. Good needs most of each material that makes up a major part of the range to be traced or certified; a material used in only a few products doesn't hold a brand back. The "Open supply chain" star needs every high-risk material fully traced, certified or upcycled. An untraced material caps the grade at On Track. The materials and what counts
Each industry guide walks through these rules for one industry, with a made-up company you can grade yourself.
The lists and sources behind these rules: which countries count, the high-risk raw materials, every evidence source we check, and what each certification is worth.
Go to Resources