The prospect of Chinese fast-fashion retailer Shein listing on the London Stock Exchange (LSE) has drawn sharp criticism from human rights organisation Amnesty International.

The group warns that such a move could set a worrying precedent for corporate responsibility and human rights standards in the UK financial markets.

Shein, headquartered in Singapore but founded in China, has reportedly filed confidential documents with British market regulators, initiating the process for a potential London initial public offering (IPO) later this year. This development comes after the company's plans for a US listing faced political opposition due to labour concerns.

Dominique Muller, an Amnesty International researcher specialising in the garment industry, expressed deep concern about the potential flotation. "It's deeply troubling that a company with questionable labour and human rights standards and an unsustainable fast fashion business model could be set to reap hundreds of millions of pounds via a sale of shares and a listing on the London Stock Exchange," Muller stated.

Amnesty International argues that Shein's business model, which involves subcontracting garment manufacturing to smaller producers in China, lacks transparency and accountability regarding workers' pay and conditions. The organisation also highlighted environmental concerns, noting that many of Shein's garments are made from synthetic fibres derived from fossil fuels.

Muller warned that allowing Shein's listing without addressing these issues could have far-reaching consequences: "Where Shein goes, others will try to follow. The UK authorities and the London Stock Exchange should not facilitate Shein's listing until transparent and binding safeguards regarding internationally accepted human rights standards covering its entire supply chain are agreed and applied, and any abuses identified fully remedied."

The human rights group called on the UK government to prevent a "race to the bottom" in corporate and human rights standards. They urged authorities to require companies to prevent serious environmental harms and human rights abuses throughout their operations and supply chains.

Shein has faced accusations of worker exploitation, including reports of employees receiving less than 4 US cents per garment produced, and allegations of using cotton harvested by forced labour. While the company has stated it is investing in strengthening governance and compliance across its supply chain, critics argue that more substantial changes are necessary.

As the potential IPO moves forward, all eyes will be on the London Stock Exchange, UK regulators, and Shein itself to see how these concerns are addressed. The outcome of this situation could have significant implications for the future of corporate responsibility in global financial markets.

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