Shein’s Sustainability Report 2023: Tackling Child Labour and Emissions Surge

Shein's latest sustainability report reveals two child labor cases, leading to a review and tightening of supply chain policies. The company also addressed significant carbon emissions, especially from product transportation, and enhanced its governance structures with a new sustainability committee, while preparing for a future IPO.

Shein's 2023 sustainability report has revealed two instances of child labor at its suppliers, leading to a swift response and change in supply chain policies. The fast fashion retailer suspended orders from implicated suppliers, only resuming business post-process improvements.

Both incidents were addressed quickly, with the company terminating the children's contracts, arranging medical exams, and ensuring their return to guardians. Since last October, Shein has adopted a zero-tolerance policy for severe supply chain breaches, immediately severing ties with non-compliant suppliers.

Despite these challenges, the audit results indicated fewer serious violations compared to the previous year. The report, crucial for potential investors ahead of Shein's prospective London IPO, highlighted a significant rise in emissions linked to product transport. CEO Sky Xu underscores that improving governance and managing the carbon footprint are top priorities for the company's future.

(With inputs from agencies.)