Outland Denim and Kowtow are two of the few brands awarded with an A+ grade in all five criteria of the 2019 Ethical Fashion Report published by Baptist World Aid.
It is the sixth consecutive report on labour rights and environmental management systems in the fashion industry published by the international aid and development organisation.
The report grades 130 companies representing 480 brands from A+ to F, based on the strength of their systems to mitigate against the risks of forced labour, child labour, exploitation and environmental degradation in their supply chains.
It has graded companies against five criteria - policies, transparency and traceability, auditing and supplier relationships, worker empowerment, and environmental management - with a median grade of C+.
Outland Denim CEO and founder James Bartle said the business was proud to be recognised for its ethical business model.
“We are so proud to have received an A+ grade in this year’s Ethical Fashion Report in recognition of not only Outland Denim’s supply chain transparency and social mission to provide training and employment opportunities for the vulnerable, but also for our environmental initiatives, too.
"In our experience, social and environmental sustainability initiatives need to go hand in hand to solve the global issues to which the fashion industry is a contributor.
"It’s a human rights issue that vulnerable people are often the most exposed to the negative impacts of fashion’s environmental negligence.
Outland Denim is also Australia’s first Certified B Corporation denim brand.
Kowtow collections are made from organic, renewable, biodegradable and regenerated fibres.
All its garments are certified by non-profit internationally recognised organisations.
Kowtow founder and creative director Gosia Piatek said the grade cemented the label as a leader in ethical and sustainable fashion.
“As designers, we’re responsible for the entire lifetime of a garment, and that starts with the conditions of how it was made.
"The report asks brands to look into their manufacturing and ensure best practices are followed, and we believe that by only positive change can come from that.
“We’re known for our wardrobe staples such as classic tees, crisp white shirts, denim and knitwear.
"Our entire collection is made without putting worker safety or the environment at risk, which goes to show the future of fashion is ethical and sustainable.”
Meanwhile, brands such as Bec & Bridge, Camilla & Marc, Lover, Ally Fashion, Lowes, Rebecca Vallance and Trelise Cooper were all awarded F's.