Global high street fashion company SHEIN has reportedly submitted documents to the UK market regulator, indicating an imminent flotation on the London Stock Exchange. The move sparked intense criticism from Amnesty International, which highlighted questionable labor and human rights standards at the company.
Sheen, known for its low-cost production, has faced allegations that workers in its supply chain are paid less than 4 US cents per garment. In addition, there are allegations that the company uses cotton harvested with forced labour.
Dominique Muller, a clothing industry researcher at Amnesty International, reacted strongly to the news:
“It is deeply worrying that a company with questionable labor and human rights standards and an unsustainable fast fashion business model can make hundreds of millions of pounds by selling shares and listing on the London Stock Exchange. Where SHEIN goes, others will try to follow. The authorities must The UK and the London Stock Exchange will not facilitate the listing of SHEIN until transparent and binding safeguards regarding internationally accepted human rights standards covering the entire supply chain are agreed and implemented, and any identified violations are fully addressed.
Mueller stressed that allowing SHEIN to float would be a “badge of shame” for the London Stock Exchange, the bankers involved, and potential investors, suggesting that it perpetuates a system in which the rich benefit by exploiting the poor. She said this process devalues workers, products and the environment, and undermines societal values.
The Financial Services Study highlighted the UK’s high level of debt, near-record high taxes, and increased public spending, all while public services are clearly suffering. Despite significant spending on debt interest and rising social care costs, demand on the health system is expected to continue due to an aging population and increased defense funding.
Mueller also called on the new UK government to prevent a “race to the bottom” in corporate standards and human rights. She stressed the need to hold companies accountable for preventing serious environmental damage and human rights violations throughout their operations and supply chains. Furthermore, workers affected by the company’s activities around the world should be able to access justice through the UK courts.
Shein’s business model involves subcontracting clothing manufacturing to small producers in China, often with little transparency or accountability regarding workers’ wages or conditions. The company’s clothing, which is often made from synthetic fibers derived from fossil fuels, contributes to environmental degradation and rapidly accumulates in landfills, polluting communities in the Global South.
While Shein claims to use independent auditors to evaluate conditions at subcontractors, it does not disclose supplier details or processes for remediating worker abuses. The company also lacks transparency in sourcing and traceability of raw materials used in the supply chain.
SHEIN, originally founded in China and now based in Singapore, recently teamed up with Amnesty International representatives, providing some details about its supplier audits, clothing recycling plans, and supplier community empowerment program. However, major concerns remain unresolved.
As Sheen prepares for its potential London listing, scrutiny of its labor practices and environmental impact continues, with Amnesty International urging strict safeguards and accountability measures before any rollout goes ahead.