A report released by environmental organization Earthsight on Thursday (local time) said that the cotton used by fast fashion giants H&M and Zara comes from farms linked to large-scale deforestation, land grabbing, corruption and violence in Brazil.

The report, titled “Fashion Crimes,” based on satellite imagery, court rulings, shipping records and undercover investigations, found that the companies sourced “contaminated cotton” produced by two of Brazil’s largest agribusinesses, SLC Agricola and Hotta Group.

British environmental groups said the cotton had been ethically labeled by leading certification scheme Better Cotton despite abuses in its production, exposing “deep flaws” in the oversight scheme.

The Cerrado, the most biodiverse savanna on Earth, has been disappearing at an accelerated rate in recent decades as Brazil’s vast agribusiness has increasingly turned to the area.

Earthsight tracked at least 816,000 tons of cotton exported between 2014 and 2023 to farms operated by SLC and Horita, which “have court injunctions, corruption rulings and multi-million dollar fines related to the cleanup of approximately 100,000 hectares of Cerrado wilderness long-term record,” it said.

The report said the cotton in question was produced in the northeastern state of Bahia and shipped to eight Asian clothing manufacturers whose customers include Sweden’s H&M and Spain’s Zara.

Brazil is the world’s largest exporter of beef and soybeans and in recent years has also become a major cotton producer, now second only to the United States.

But this has exacerbated environmental damage in the Cerrado, where “a destructive mix of corruption, greed, violence and impunity has led to the blatant theft of public lands and the dispossession of local communities,” Earth Vision said.

Better Cotton said in a statement that it had conducted an independent audit into “the issues of high concern raised” in the report and would provide a summary of the findings.

Zara parent companies Inditex and H&M said they took the allegations seriously and urged Better Cotton to release the audit results.

The Brazilian Cotton Producers Association (ABRAPA) said it has worked with the growers involved to provide records and evidence that refutes the report’s allegations.

“Unfortunately, these have been largely ignored,” it said in a statement.

It added: “ABRAPA unequivocally condemns any practice that undermines environmental protection, violates human rights or harms local communities.”