Amnesty International has issued a stern warning over SHEIN’s potential listing on the London Stock Exchange, highlighting serious concerns.
- The fashion giant has been criticised for reportedly paying workers less than 4 US cents per garment.
- There are allegations of forced labour in the company’s supply chain, specifically in cotton harvesting.
- Critics argue that SHEIN’s impending flotation reflects poorly on the London Stock Exchange and its investors.
- Calls are being made for stringent safeguards on human rights and environmental protection before any listing proceeds.
Amnesty International has voiced serious concerns regarding SHEIN’s prospective listing on the London Stock Exchange, citing troubling labour and human rights practices. According to reports, workers in SHEIN’s supply chain are paid less than 4 US cents per garment. This excessive cost-cutting measure has drawn significant criticism from various human rights organisations.
Dominique Muller, an Amnesty International researcher specialising in the garment industry, stated, “It’s deeply troubling that a company with questionable labour and human rights standards and an unsustainable fast fashion business model could be set to reap hundreds of millions of pounds via a sale of shares and a listing on the London Stock Exchange.” Muller further argued that facilitating SHEIN’s flotation without transparent and binding safeguards would be a “badge of shame” for all parties involved.
Muller also highlighted that the company’s business model perpetuates a system where wealth is amassed through the exploitation of vulnerable workers. This devaluation of workers, products, and the environment undermines core societal values. Accordingly, the UK authorities and the London Stock Exchange are urged to implement stringent human rights standards across SHEIN’s entire supply chain before any listing.
SHEIN’s operational model involves subcontracting garment production to numerous smaller manufacturers in China, often lacking transparency and accountability regarding worker pay and conditions. Furthermore, the use of synthetic fibres made from fossil fuels contributes to significant environmental degradation. Despite claims of using independent auditors to monitor conditions, SHEIN does not disclose crucial details such as supplier identities or remediation processes for worker abuses.
Muller also called for the new UK government to take a firm stance against a ‘race to the bottom’ in corporate and human rights standards. She stressed the necessity for companies to be held wholly accountable for preventing severe environmental damage and human rights violations within their operations and supply chains. Additionally, impacted workers worldwide should have access to justice through UK courts.
Despite engaging with Amnesty International and providing some information on its supplier auditing and garment recycling initiatives, SHEIN’s lack of transparency about its raw material sourcing and traceability remains a significant concern. As the scrutiny of SHEIN’s labour practices intensifies, Amnesty International demands rigorous safeguards and accountability measures be established before any potential listing.
Amnesty International’s condemnation of SHEIN’s potential London listing underscores the urgent need for stringent human rights and environmental safeguards.
