Kiwi brands have come out on top in this year's Tearfund ethical fashion guide.

More than 110 companies have received grades on their ethical fashion practices, with three of the five highest-rated brands from New Zealand.

Icebreaker's proved to be the most improved retail brand, jumping from a D-minus grade in last year's report to an A-plus.

Meanwhile, Trelise Cooper was the lowest graded Kiwi retailer - with an F grade.

Tearfund project manager Claire Hart told Kate Hawkesby consumers want to know how products are made - and Trelise Cooper hasn't got that information at hand.

"The F does not mean the company is doing a bad job, it means we have no way of verifying what they're doing."

Trelise Cooper's hit back at the bad grade, saying they did their best to cooperate, but in the end could not meet the "arbitrary deadlines" set by Tearfund.

Overall, Hart says it's a great result, given the global average sits at a C-plus.

"To have our small, niche, ethical companies, and to have Icebreaker leading the charge globally, that's something we should all be proud of."

LISTEN TO CLAIRE HART TALK WITH KATE HAWKESBY ABOVE