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Shein reports two more child labor cases in supplier audits amid IPO plans

by February 26, 2025
written by February 26, 2025

As it prepares for a potential initial public offering (IPO) in London, fast-fashion retailer Shein is facing renewed scrutiny over its supply chain practices.

The company disclosed to British lawmakers that it uncovered two cases of child labor at its suppliers in 2024, the same number as in 2023, despite increasing the number of audits conducted at its primarily China-based third-party manufacturers.

The revelation was made in a February 7 letter from Yinan Zhu, Shein’s general counsel for Europe, Middle East, and Africa, to the British parliament’s Business and Trade Committee.

The letter, which was published late Tuesday, was a response to questions posed by the committee following a January hearing where Zhu was questioned about allegations of worker abuses in Shein’s supply chain.

In the letter, Zhu described one incident involving a child aged 11 years and 8 months, whom the audit found spent time during the summer holiday at a factory where her father was the general manager and her mother worked, and “helped with tasks.”

“Nonetheless, and irrespective of these details, we took the issue extremely seriously, including designating the incident as child labour and immediately terminating our relationship with the supplier,” Zhu wrote.

The second case involved a 15-year-old who was 3 months over the limit, as well as providing the ages of the children Shein previously said it found working at suppliers in 2023 as 15 years and 11 months, and 15 years and 9 months.

Shein reported conducting approximately 4,300 audits in 2024, covering about 317,000 workers.

This represents an increase from 4,000 audits in 2023, which covered 285,000 workers, according to the letter.

“We take a strict zero tolerance approach to child labour,” Zhu wrote.

We will continue to work tirelessly to ensure that these isolated cases are removed from our supply chain entirely in future, bringing our network of third-party suppliers globally, including in China, Brazil and Turkey, along with us.

However, the fact that child labor cases persist despite increased audits raises questions about the effectiveness of Shein’s efforts to ensure ethical sourcing.

As Shein prepares for its potential IPO, the company will likely face continued pressure from lawmakers, advocacy groups, and investors to demonstrate a genuine commitment to eliminating worker abuses from its supply chain.

The post Shein reports two more child labor cases in supplier audits amid IPO plans appeared first on Invezz

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