Shein Fails OECD Human Rights Environmental Standards

Asian fashion giant Shein has been found non-compliant with several key recommendations of the OECD guidelines concerning human rights, wages, and environmental practices. This conclusion was issued by the Organisation for Economic Co-operation and Development (OECD) National Contact Point (NCP) in a press release on Monday, September 29, 2025, following a referral made by French Socialist MPs in 2023.

The referral to the OECD's NCP, a body dedicated to addressing such concerns, sought to investigate various aspects of the online retailer's extensive supply chain. Founded in China in 2012 and now based in Singapore, Shein has consistently faced widespread accusations ranging from significant environmental pollution to concerning, often unacceptable, working conditions within its manufacturing operations.

The NCP's recently published, non-binding conclusions highlight several areas of concern. Specifically, Shein is accused of failing to adhere to France's "AGEC" law. This legislation mandates that brands transparently indicate for each product the percentage of recycled materials utilized, as well as the specific countries where crucial processes such as weaving, dyeing, printing, and final manufacturing are carried out, a level of detail Shein has reportedly not provided.

Furthermore, the NCP suspects Shein of sidestepping its labour-law obligations, allegedly by invoking Chinese legislation, from which the majority of its sourcing originates. However, the OECD unequivocally states that it is the company's responsibility to "implement proactive measures to guarantee (...) compliance with applicable international standards." The NCP warns that without such measures, there remain significant risks, including obstacles to workers' freedom of association, precarious working conditions, and even the potential for forced labour within its supply chain.

A major point of contention raised by the OECD is Shein's lack of transparency. The organization expresses regret that Shein does not publicly disclose crucial information such as its "factory audit framework" or any comprehensive "mapping of its activities or its supply chain." Beyond calculations of greenhouse gas emissions, the company also fails to provide a detailed account of its broader social and environmental impacts.

To address these transparency deficits, the OECD has additionally recommended that Shein publish its financial results, a clear overview of its capital structure, and details regarding its governance framework. These recommendations aim to provide stakeholders with a more complete understanding of the company's operations and ethical commitments.

While the conclusions are critical, the OECD does acknowledge some progress. It notes that "since receiving the referral, efforts have been made by Shein to formalise a sustainability policy and communicate its initial results." Shein, in a statement to AFP on Monday, affirmed its constructive participation in the two-year process, from June 2023 to September 2025, stating it shared "a great deal of information and remaining open to dialogue." The company, however, expressed regret "that the procedure did not always reflect the spirit of neutral mediation envisaged by the OECD framework, due in particular to consultations limited to certain critics known to Shein."