Shein faces criticism for failing to address forced labour concerns

10 January 2025

Elizabeth Pfeuti

EU regulation

Shein faces criticism for failing to address forced labour concerns

January 9th, 2025

Shein has faced backlash after MPs criticised the online fashion retailer for its lack of transparency regarding the origin of its cotton and raised concerns about potential links to forced labour practices, Investment Week reports.

During a Business and Trade Select Committee hearing, Yinan Zhu, general counsel for EMEA at Shein, was criticised for avoiding questions about forced labour concerns in the company’s supply chain and for failing to address the origins of its cotton sourcing.

While committee chair Liam Byrne said that the evidence session had been helpful, MPs were left “pretty horrified” by the Shein representatives' failure to provide evidence that addressed concerns over forced labour practices.

He also noted that representatives were unable to answer basic questions, such as where products were made or the working conditions workers face, adding that their reluctance to respond is "frankly bordered on contempt of the committee."

The backlash comes amid Shein’s plans to launch an IPO, which is awaiting approval from the Financial Conduct Authority. The fashion giant intends to list on the London Stock Exchange (LSE) in the first half of the year, with hopes of completing the IPO by Easter, though the timeline remains uncertain.

This criticism could present additional challenges for Shein’s listing, as Byrne remarked that for a company selling around £1 billion of products to UK consumers and seeking to list on the LSE, it has provided "almost zero confidence" in the integrity of its supply chain.

This is the latest criticism of Shein as the Italian Competition Authority opened an investigation into the retailer for misleading claims abouts sustainability practices on its website.

Minerva’s blog focuses on the latest developments in ESG investing and stewardship. Minerva is a global provider of sustainable stewardship solutions with over 25 years of expertise. Minerva empowers investors by providing essential tools, including ESG research and data, enabling them to navigate the intricate landscape of stewardship and proxy voting, whilst ensuring their decisions are well-informed and aligned with sustainable principles.

You can read more of our articles by clicking here.

Latest News

SHareholder meeting

IFRS Foundation reform: Can smaller IASB and ISSB boards preserve representation?

SHareholder meeting

ESMA ratchets up greenwashing scrutiny – stewardship claims now in scope

SHareholder meeting

EU proposed budget cuts put biodiversity stewardship and long-term risk management in focus

SHareholder meeting

US SEC warning chills investor stewardship

SHareholder meeting

US State officials raise stewardship concerns over Rule 14a-8 rescission

SHareholder meeting

Investment Association calls for hybrid formats in virtual AGM adoption

Featured Briefings

Minerva Briefing

US SEC Rule 14a-8 Rescission Proposal

Minerva Briefing

2026 Global Proxy Season Review

Minerva Briefing

Global IPOs: Growth, governance and risk

Minerva is a global provider of sustainable stewardship solutions with over 30 years of expertise. Minerva empowers investors by providing essential tools, including ESG research and data and expert insights, enabling them to navigate the intricate and ever-evolving landscape of stewardship and proxy voting, whilst ensuring their decisions are well-informed and aligned with sustainable principles.

Related Stories

ESMA ratchets up greenwashing scrutiny

ESMA ratchets up greenwashing scrutiny – stewardship claims now in scope

October 14, 2026
Read More
EU proposed budget cuts put biodiversity stewardship

EU proposed budget cuts put biodiversity stewardship and long-term risk management in focus

October 14, 2026
Read More
US SEC

US SEC warning chills investor stewardship

October 13, 2026
Read More
Shein lists in Hong Kong at reduced valuation after protracted IPO journey

Shein lists in Hong Kong at reduced valuation after protracted IPO journey

September 2, 2026
Read More
Democratic attorneys general defend credit ratings agencies against anti-ESG pressure

Democratic attorneys general defend credit ratings agencies against anti-ESG pressure

August 28, 2026
Read More
Two woke issues walk into Wall Street

Two woke issues walk into Wall Street

August 27, 2026
Read More