Fast fashion retailer Shein has found two cases of child labour in its supply chain, according to its 2023 sustainability report.
Shein said it had temporarily suspended orders from the suppliers involved and did not resume business with them until they had begun to tackle the issue.
“Both cases were resolved swiftly, with remediation steps including terminating contracts with underage employees, ensuring the payment of any outstanding wages, arranging medical checkups and facilitating repatriation to parents/legal guardians as needed,” the report said.
Sustainability
“Following appropriate remediation, the contract manufacturers were permitted to resume business.”
The Chinese retail giant has been planning a listing on the London Stock Exchange, according to papers filed with the Financial Conduct Authority, although this is not guaranteed.
As a listed company it will come under greater scrutiny for its environmental, social and governance (ESG) policies.
In its report, Shein said it had recently strengthened its supply chain governance policies to protect against unacceptable labour practices such as child labour, working hours abuses and employee discrimination.
However, a report by Swiss advocacy organisation Public Eye in May this year found that some workers at its suppliers were working 75 hours a week, despite promises by Shein to improve workplace conditions.
The two cases of child labour were discovered during the first nine months of 2023 and there were none in the latter part of the year.
In 2021, UK fast fashion retailer Boohoo said it would link its executive bonus schemes to hitting ESG targets, after coming under scrutiny for its own supply chain practices.
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