Fast fashion retailer Shein identified two instances of child labour within its supply chain, as revealed in its 2023 sustainability report.
In response, Shein temporarily halted orders from the implicated suppliers, resuming business only after the suppliers began addressing the issue.
“Both cases were resolved swiftly,” the report stated, “with remediation measures including terminating contracts with underage workers, ensuring the payment of any outstanding wages, arranging medical checkups, and facilitating repatriation to parents or legal guardians as needed.”
The two child labour cases were discovered in the first nine months of 2023.
The Chinese retail giant has been preparing for a potential listing on the London Stock Exchange, according to documents submitted to the Financial Conduct Authority, though this is not yet confirmed. As a publicly listed company, Shein would face increased scrutiny over its environmental, social, and governance (ESG) policies.
The company had not previously disclosed the specific number of child labor cases, only reporting the percentage of audits that uncovered minors in the workplace. In 2021, the violation was found in 1.8% of supplier audits, decreasing to 0.3% in 2022 and 0.1% in 2023.
“We remain vigilant in preventing such violations and, in accordance with our current policies, will terminate any suppliers found to be noncompliant,” Shein stated in the report.
A report by Swiss advocacy group Public Eye in May 2023 found that some workers at Shein’s suppliers were still working 75 hours per week, despite the company’s pledges to improve working conditions.
