"SHEIN is committed to operating and managing its business in a responsible and ethical manner, and to adhering to all relevant laws and regulations, including those concerning the upholding of labour and human rights within its operations and supply chain.

SHEIN complies with the laws and regulations of each market we operate in and prohibits the use of forced labour in our supply chain.

SHEIN has developed and implemented robust supply chain governance policies, including a Code of Ethics, Human Rights Policy, Supplier Code of Conduct (CoC), Supplier Responsibility Standards, and SHEIN Responsible Sourcing (SRS) Policy, which were developed following guidance from international standards such as the United Nations’ Universal Declaration of Human Rights and the core conventions of the International Labour Organisation, industry best practices, as well as applicable local laws and regulations.

Currently, SHEIN’s key mechanism for identifying non-compliance with its supply chain governance policies and requirements is through the conduct of its SRS social compliance audits. Nearly all SRS audits are conducted by third-party verification agencies such as Bureau Veritas, Intertek, Openview, SGS, TÜV Rheinland and QIMA, all of which are member firms of the Association of Professional Social Compliance Auditors (APSCA).

In 2023, a total of 3,990 on-site SRS audits were conducted on suppliers and subcontractors that represented approximately 95% of procurement value of SHEIN branded products. These on-site SRS audits are typically conducted without prior notice to suppliers, ensuring that auditors can assess the reality of working conditions at suppliers’ facilities. Suppliers are assessed against an extensive checklist that evaluates for their compliance with SHEIN’s requirements across various areas, including forced labour and child labour violations, infringements related to wages and benefits, working hours, freedom of association and right to collective bargaining, as well as workplace health and safety.

Specific forced labour risks that our SRS audits assess include: bonded (including debt bondage) or indentured labour; involuntary or exploitative prison labour, slavery or trafficking; recruitment by means of threat, violence, coercion, or abduction; requirements for employees to pay deposits, security or recruitment fees; and possessing, destroying, concealing or confiscating employee identification or immigration documents. In 2023, there were no instances of forced labour found in SHEIN's supply chain.

Our SRS Policy also sets out clear definitions and penalties for violations of SHEIN’s requirements. Violations involving forced labour, child labour, harassment and abuse of employees (including gender-based violence and harassment), ethics and transparency issues (e.g., bribery and refusal to cooperate with SRS audits) are the most severe violations, and any such violations uncovered in audits would result in the immediate termination of the business relationship with the supplier. For serious violations involving violations of workplace labour standards (e.g. engaging in discriminatory recruitment or management practices, or interfering with employees’ right to form or join a union organisation), violations of standards for payment of salary (e.g. failure to pay minimum wages or delay in salary payment), workplace health and safety issues (e.g. insufficient emergency exits, or other facilities issues that could lead to accidents), and serious environmental pollution (e.g. unlawful discharge of hazardous waste), suppliers are required to implement remediating measures within a strict timeline of 30 days, or face termination. For such violations, SHEIN monitors and verifies that the suppliers have taken appropriate remediation actions to rectify the violation and prevent future occurrences, and records these actions within a “Corrective Action Plan” module on our digital supplier management system.

As part of SHEIN’s continuous efforts to ensure that manufacturing suppliers are providing their workers with fair and competitive compensation, we work with our independent audit partners to conduct wage investigations. The findings show that workers at SHEIN's manufacturing supplier facilities earned basic salaries that are, on average, more than double that of the local minimum wage released by China’s National Bureau of Statistics. It is also almost 50% higher than the living wage in Shenzhen, as defined by the Global Living Wage Coalition.

SHEIN also regularly conducts introductory and refresher training sessions that detail and explain the standards within the CoC, providing clear examples, outlining steps for remediation and penalties in cases of non-compliance. In 2023, SHEIN organised 133 group SRS workshops, and 276 one-on-one SRS training sessions, with participant numbers totalling 5,200.

SHEIN aims to ensure that all employees, contractors, and suppliers’ workers have the right to raise grievances and make their voices heard. SHEIN’s Supplier Responsibility Standards require suppliers to implement appropriate, effective and easy-to-use feedback channels, at least one of which must allow for anonymous complaints and appeals. These must also be made available to all employees in a language they understand. During on-site SRS audits, SRS auditors further check that such channels have been adequately established and that workers are aware of them. To facilitate open communication, SHEIN maintains a multichannel feedback system for reporting concerns via email, call or text. SHEIN requires suppliers of SHEINbranded products to put up posters in their factories publicizing these channels. To further raise awareness, auditors have begun to hand out grievance cards, in workers’ local language, during their audits, with information on how to submit complaints to SHEIN. Workers can anonymously submit complaints, feedback and suggestions to SHEIN’s ESG team, which is trained in managing worker grievance cases. Discriminating against whistleblowers is strictly prohibited under SHEIN’s policies, including the Human Rights Policy and Supplier Responsibility Standards.

SHEIN is committed to continuously enhancing its supply chain governance frameworks and efforts. We will study the opportunities for improvement highlighted by KnowTheChain and consider how to incorporate them to strengthen SHEIN’s policies and programmes. For more comprehensive information on our supply chain governance policies, commitments and programmes, we encourage readers to refer to our UK Modern Slavery Statement which can be found here."