Shein uncovers multiple instances of child labour in supply chain
Published: 04:00 23 Aug 2024 EDT
Fast-fashion giant Shein Group has uncovered multiple instances of child labour being used in its supply chain.
The Chinese multinational, which is reportedly planning to list its shares on the London Stock Exchange, revealed the two instances in its 2023 Sustainability Report, which audits suppliers on the breadth of environmental, sustainability and governance issues.
Shein said it suspended orders from the contract manufacturers who engaged in child labour practices but following “remediation steps”, resumed business dealings with them.
Shein has faced considerable scrutiny of its human rights record.
Campaigners have called on UK regulators to block a London listing due to allegations that people in the Uyghur Muslim minority are being used as forced labour at some of Shein's suppliers.
Shein grades its suppliers under the ‘Shein Responsible Sourcing’ (SRS) policy, which “establishes clear definitions and penalties for violations of Shein’s SCoC (Supplier Code of Conduct)”.
Shein’s suppliers have improved their grades overall.
The proportion of SRS audits where suppliers or subcontractors received an A or B grade increased from 18% in 2022 to 29% in 2023, while the proportion of audits where suppliers or subcontractors received a D or E grade decreased from 35% in 2022 to 20% in 2023.
In 2022, 2.3% of SRS audits uncovered instances of ‘wage violations’ compared to 0.5% in 2023. Instances of ‘involuntary labour’ improved from 0.1% to 0%.
Credit: Shein
Shein terminated five supplier contracts in 2023 for contravening its SRS policy.
These SRS audits are conducted by independent third parties, including FTSE 100-listed Intertek Group PLC (LSE:ITRK).
