SHEIN’s London IPO faces delays due to supply chain concerns and advocacy group challenges.
IPO Approval Delays
SHEIN’s plans for a London Stock Exchange listing are postponed as the UK’s Financial Conduct Authority (FCA) examines the company’s supply chain practices. The advocacy group Stop Uyghur Genocide has raised concerns about potential links to forced labor in China’s Xinjiang region, prompting the FCA to assess legal risks and supply chain oversight. SHEIN asserts a zero-tolerance policy for forced labor and employs isotopic testing to verify cotton origins. The company reports no forced labor cases in 2023. (Source: Reuters)
Advocacy Group Challenges
Stop Uyghur Genocide’s allegations have intensified scrutiny of SHEIN’s supply chain, particularly regarding cotton sourcing from Xinjiang. The FCA’s thorough review aims to ensure comprehensive disclosures, balancing market interests with ethical considerations. SHEIN maintains its commitment to human rights and compliance with labor regulations. (Source: Reuters)
Isotopic Testing for Cotton Verification
To address concerns about cotton sourcing, SHEIN utilizes isotopic testing to determine the geographical origin of cotton fibers. This scientific method helps ensure that materials are not linked to regions with reported human rights abuses, reinforcing SHEIN’s commitment to ethical sourcing. (Source: The Wall Street Journal)