Human rights organisation Stop Uyghur Genocide has initiated a legal campaign to prevent the fast-fashion retailer Shein from listing on the London Stock Exchange (LSE) in the UK.
Represented by the law firm Leigh Day, the group has written to the Financial Conduct Authority (FCA), highlighting concerns about Shein’s labour practices in its supply chain.
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The campaign emphasises that the US Securities and Exchange Commission has previously declined to recommend Shein for listing on a US stock exchange due to similar labour concerns.
In its letter to the FCA, the group outlined several reasons for blocking Shein’s listing.
It pointed out that the UK, as a signatory to International Labour Organization (ILO) conventions, has a responsibility to ensure that companies comply with minimum labour standards.
The FCA also has a statutory duty to maintain integrity and protect investors, which could be compromised by allegations of forced labour in Shein’s supply chain.
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By GlobalDataStop Uyghur Genocide’s concerns extend to the LSE’s capacity to detect and address forced labour issues within Shein’s operations.
As a regulated investment exchange, the LSE would be responsible for overseeing Shein and ensuring compliance with laws prohibiting the trade of goods produced through forced labour.
The group is preparing a detailed submission to support its position and has requested that the FCA:
- Obtain more information from Shein regarding the accuracy of its Modern Slavery statement.
- Clarify the measures the FCA believes the LSE has in place to prevent the trading of goods produced under forced labour conditions.
- Consider the submissions from Stop Uyghur Genocide before deciding on Shein’s listing application.
- Refuse Shein’s listing application unless it is satisfied that Shein’s products are free from forced labour.
“At Stop Uyghur Genocide, we have been highlighting reports from national security and human rights experts which suggest state-linked companies such as Shein could be associated with egregious human rights abuses, including modern slavery, and pose ethical and security risks to businesses and citizens,” said Rahima Mahmut, executive director of Stop Uyghur Genocide.
“Our investment community must not support companies like Shein who are reportedly linked to the Chinese State and which we believe may enable the ongoing genocidal policies against Uyghurs.”
