Fast fashion giant SHEIN faces scrutiny over London flotation plans – Scottish Business News

Chinese online retailer SHEIN has reportedly filed papers with UK regulators ahead of a potential London Stock Exchange listing, sparking concerns over its labour practices and environmental impact.

The ultra-fast fashion company has been accused of paying workers in its supply chain less than 4 US cents per garment and using cotton harvested by forced labour.

Amnesty International has called on UK authorities to block SHEIN’s listing unless it can prove compliance with human rights standards throughout its supply chain.

Dominique Muller, Amensty International researcher specialising in the garment industry said: “It’s essential the new UK government does not allow a race to the bottom in terms of corporate and human rights standards.”

SHEIN’s production model relies on subcontracting to smaller manufacturers in China, with little transparency over working conditions.

‘Where SHEIN goes, others will follow’

Reacting to the prospective flotation of the ultra-fast fashion clothing manufacturer SHEIN on the London Stock Exchange Muller, said: “It’s deeply troubling that a company with questionable labour and human rights standards and an unsustainable fast fashion business model could be set to reap hundreds of millions of pounds via a sale of shares and a listing on the London Stock Exchange.

“The UK authorities and the London Stock Exchange should not facilitate SHEIN’s listing until transparent and binding safeguards regarding internationally accepted human rights standards covering its entire supply chain are agreed and applied, and any abuses identified fully remedied.”

“Rewarding SHEIN’s current methods via a flotation would be a badge of shame for the London Stock Exchange, the bankers helping bring it to market, and any investors set to profit from it.

“It would be an appalling example of a process which delivers for the rich by squeezing the poor. It validates the view that it is acceptable to regard workers and their rights, company products and the environment as expendable – which cheapens us all.

“It’s essential the new UK government does not allow a race to the bottom in terms of corporate and human rights standards.

“It should require companies to prevent serious environmental harms and human rights abuses occurring throughout their entire operations and supply chains.

“It should enable workers whose rights are abused by company activities anywhere in the world recourse to justice through UK courts.”

A broken business model 

Founded in 2008, SHEIN has become one of the world’s largest online fashion retailers, popular among young consumers for its low prices and trendy styles.

Many of SHEIN’s garments are made from synthetic fibres derived from fossil fuels, which is environmentally damaging and unsustainable.

Much of this fast fashion rapidly ends up being dumped in landfills, often polluting communities in the Global South.

The company claims it uses independent auditors to assess suppliers but does not publish details or explain how it addresses abuses.

SHEIN executives recently met with Amnesty representatives and subsequently responded in writing to a series of human rights-related questions, including providing some details of its supplier auditing and garment recycling schemes, and its Supplier Community Empowerment Programme.

The company provided some information on supplier auditing and recycling schemes in response.

​