Shein discloses it found 2 cases of child labor in its supply chain last year

Fast-fashion giant Shein discloses child labor cases in its supply chain

Fast-fashion giant Shein said it discovered two cases of child labor in its supply chain last year.

In its annual sustainability report, Shein disclosed this week that it found minors under age 15 employed by manufacturers that make products for the company. Shein, which mainly sources its products from China, did not say where it found the child labor cases.

The company said it suspended product orders from the suppliers when it discovered the violations. Both cases were resolved “swiftly” and involved remediation steps, such as ending contracts with underage employees and paying them any outstanding wages, Shein said. The online retailer resumed working with the manufacturers after they beefed up screening for new hires.

The disclosure comes as some advocacy groups – such as Amnesty International UK – are pushing back on a possible listing of Shein on the London Stock Exchange due to labor and environmental concerns.

The company, which was founded in China but is now based in Singapore, had also reportedly attempted to file a confidential IPO application to the U.S. Securities and Exchange Commission last year.

Shein said in its report that it updated its policies around labor violations in October 2023.

Before, suppliers engaging in practices like child or forced labor had their orders suspended and were given 30 days for remediation. Now, the company says it will “immediately proceed to terminate” ties with suppliers who engage in these violations.

SDGs, Targets, and Indicators

1. SDG 8: Decent Work and Economic Growth

   • Target 8.7: Take immediate and effective measures to eradicate forced labor, end modern slavery and human trafficking, and secure the prohibition and elimination of the worst forms of child labor.
   • Indicator: Number of cases of child labor and forced labor identified and resolved in the supply chain.

2. SDG 12: Responsible Consumption and Production

   • Target 12.6: Encourage companies, especially large and transnational companies, to adopt sustainable practices and to integrate sustainability information into their reporting cycle.
   • Indicator: Disclosure of sustainability practices and labor violations in the annual sustainability report.

Analysis

The article highlights the issue of child labor in Shein’s supply chain, which is connected to SDG 8: Decent Work and Economic Growth. Specifically, Target 8.7 aims to eradicate forced labor and child labor. Shein’s discovery of child labor cases in its supply chain aligns with this target.

Additionally, the article mentions Shein’s annual sustainability report, which indicates the company’s commitment to SDG 12: Responsible Consumption and Production. Target 12.6 encourages companies to adopt sustainable practices and disclose sustainability information. Shein’s disclosure of the child labor cases in its report demonstrates its efforts to integrate sustainability practices into its operations.

The article also implies indicators that can be used to measure progress towards the identified targets. The number of child labor cases identified and resolved in the supply chain serves as an indicator for Target 8.7. Shein’s disclosure of the cases in its sustainability report can be considered an indicator for Target 12.6.

SDGs, Targets, and Indicators

Source: abcnews.go.com