Shein faces criticism over labor and environmental standards ahead of London IPO

Amnesty International has raised concerns that workers in Shein's supply chain may receive less than 4 US cents per garment and that the company might use cotton harvested by forced labor. Dominique Muller, an Amnesty International Researcher, stated that allowing Shein's listing would be a 'badge of shame' for the London Stock Exchange, involved bankers, and prospective investors, arguing it perpetuates a system that exploits the poor and devalues workers, products, and the environment.

Muller also called on the new UK government to prevent a 'race to the bottom' in corporate and human rights standards, insisting that companies should be held accountable for environmental harms and human rights abuses throughout their supply chains, with affected workers having access to justice through UK courts.

Shein's business model involves subcontracting garment manufacturing to smaller producers in China, often with little transparency or accountability regarding worker pay or conditions. The company's garments, frequently made from synthetic fibers, contribute to environmental degradation. While Shein claims to use independent auditors, it does not disclose supplier details or remediation processes for worker abuses, and lacks transparency in raw material sourcing. Shein has engaged with Amnesty International, providing some details about its operations, but significant concerns remain unresolved.