Fast-fashion retailer Shein has revealed in its latest sustainability report that it uncovered two instances of child labor within its supply chain last year. The company, known for mainly sourcing its products from China, did not specify the exact location where the child labor was found. However, Shein took immediate action by halting product orders from the concerned suppliers upon discovery of the violations.
Both cases of child labor were swiftly addressed by Shein, which involved remedial actions such as terminating contracts with underage workers and ensuring they received any unpaid wages. After the manufacturers implemented stricter screening processes for new hires, Shein resumed its collaboration with them.
This disclosure comes amidst mounting concerns from advocacy groups like Amnesty International UK regarding Shein’s labor practices and environmental impact, potentially complicating its bid to be listed on the London Stock Exchange. Despite being originally founded in China, Shein is currently headquartered in Singapore and reportedly made efforts to submit a confidential IPO application to the U.S. Securities and Exchange Commission last year.
In response to the child labor incidents, Shein updated its labor violation policies in October 2023. While previously giving suppliers 30 days to address issues of child or forced labor before resuming orders, the company now states it will immediately sever ties with any suppliers found to engage in such practices.