Amnesty International stated on Tuesday (June 25) that given the “suspicious” issues of forced labor and human rights concerning the fast-fashion group SHEIN, the company’s upcoming initial public offering (IPO) in the UK may damage the reputation of the London Stock Exchange, becoming a “shame” for them.
According to Reuters, two sources reported that SHEIN has secretly submitted documents to the UK market regulators in June, initiating the process for its listing in London later this year.
In response to the possibility of SHEIN listing on the London Stock Exchange, Dominique Muller, a clothing industry researcher at Amnesty International, expressed in a press release issued by the organization on Tuesday, “The idea of a company with controversial labor and human rights standards, employing an unsustainable fast-fashion business model, being able to raise hundreds of millions of pounds through selling shares and listing on the London Stock Exchange is deeply concerning.”
The London-based Amnesty International warned that “rewarding SHEIN’s current practices through a stock market listing is a disgrace to the London Stock Exchange, the bankers facilitating its listing, and any investors profiting from it.”
The international organization called on the UK government to “require companies to prohibit severe environmental damage and human rights violations throughout their operations and supply chains.”
SHEIN did not immediately respond to Reuters’ request for comment. The London Stock Exchange Group declined to comment.
SHEIN previously stated that it is investing in enhancing governance and compliance across its entire supply chain.
Due to issues related to forced labor in its supply chain involving China, SHEIN’s plans for a US listing faced opposition from Marco Rubio and other members of Congress. Due to the lawmakers’ persistence, the U.S. Securities and Exchange Commission (SEC) intensified its scrutiny, leading to the obstruction of its listing plans.
On June 11, Marco Rubio, the Chief Republican on the Senate Intelligence Committee and a prominent China hawk in Washington, wrote to the UK Chancellor of the Exchequer Jeremy Hunt, urging the UK to investigate whether SHEIN had been using forced labor in its operations before its London listing.
Rubio stated that SHEIN is a fast-fashion company with close ties to China and reports of human rights violations and exploitation through trade loopholes, which could pose risks for companies and investors.
Amnesty International noted that SHEIN executives recently answered a series of human rights-related questions in writing after meeting with representatives of the organization.
In a press release, the organization stated that SHEIN faces allegations that workers in its supply chain are paid less than 4 cents for each garment produced and that the company is accused of using cotton harvested through forced labor in Xinjiang.