Shein, the fast-fashion retailer known for its incredibly low prices, has revealed that it found two cases of child labor among its suppliers last year, according to its 2023 sustainability report.
Child Labor Cases
The company has intensified its audits of manufacturers in China in response to growing criticism, particularly as it prepares for a planned initial public offering (IPO), according to Ziare.
In a report published on August 22, Shein stated that it suspended orders from suppliers who employed workers under the age of 16. Orders will resume only after these suppliers enhance their processes, which now include verifying workers' identification documents. '
Shein addressed the child labor cases promptly, terminating contracts with underage workers, arranging medical checkups, and facilitating the repatriation of their guardians when necessary.
Since October 2022, Shein has implemented a stricter policy regarding supplier violations. Any serious breach, termed an “immediate termination violation,” will result in the instant termination of the supplier relationship. Previously, suppliers had 30 days to rectify issues related to child labor before facing termination.
Working on CO2 Emmisions
The report indicates that Shein conducted 3,990 audits in 2023, up from 2,812 in 2022, in an effort to improve compliance.
This year, only 0.1% of audits found underage workers, down from 0.3% in 2022 and 1.8% in 2021. Shein aims to ensure that 100% of its audits are conducted by third-party agencies.
In addition to addressing labor practices, Shein is also focusing on its carbon footprint. The company reported that its emissions from product transportation doubled in 2023 to 6.35 million tons of CO2 equivalent.
To reduce these emissions, Shein is sourcing products from suppliers closer to consumers, such as those in Turkey and Brazil, and shifting from air to sea and land transport, which helped save 49,578 tons of CO2 last year.
