Ultra-fast fashion business models rely on practices that can cause substantial financial strain on suppliers, leading to increased human and labour rights risks for workers. Rapid turnaround times and unpredictable production schedules, aggressively low price points and associated cost expectations of suppliers, and extensive outsourcing have all been found to exacerbate the risks of worker exploitation – including forced labour – increasing reputational and supply chain risks for companies, their investors and the industry.

Shein is one of the major players driving the acceleration of ultra-fast fashion. Ahead of the company’s anticipated IPO in London, we assessed the company’s public disclosure on addressing forced labour in global supply chains against the KnowTheChain benchmark methodology. The findings illustrate that Shein falls significantly short of leaders in the apparel and footwear benchmark – a red flag for investors given the company’s scope for human rights harm due to its size, speed and purchasing power.

This briefing outlines KnowTheChain’s key findings and their implications for investor due diligence, along with suggested questions for investors in engagements with ultra-fast fashion companies

Shein’s scorecard, additional disclosure and full data are available on the Business and Human Resource Centre website. Shein’s response can be found here.