Shein Tightens Supplier Policies After Child Labour Cases, Emissions Surge

Fast fashion giant Shein reported two child labour cases in its supply chain in 2023, enforcing stricter supplier audits and updated policies. The company aims to improve its supply chain governance and reduce carbon emissions, particularly as it approaches a potential IPO. A new sustainability committee has been established.

Fast fashion retailer Shein identified two instances of child labour at its suppliers last year, according to its 2023 sustainability report. The company has increased audits of manufacturers in China to address criticisms of its low-cost business model ahead of a planned IPO.

Shein suspended orders from the suppliers found employing children under 16, allowing resumption only after improved verification processes. The company swiftly resolved both cases with remedial steps including medical checkups and repatriation for the underage employees. A revamped supplier policy, introduced in October, mandates immediate termination for severe breaches.

Senior Director of Global Government Relations Annabella Ng noted that feedback from regulators and suppliers influenced the new policy. The updated report showed a decline in child labour violations, with increased third-party audits. Despite these efforts, Shein's carbon emissions doubled due to the direct shipment model, highlighting the need for improved environmental policies as the company gears up for a possible public listing.

(With inputs from agencies.)