Driving the news: A bipartisan group of 24 US lawmakers has requested the SEC to halt Chinese fast-fashion retailer Shein's potential IPO until it verifies the absence of forced Uyghur labor in its supply chain.
- This comes after the launch of the anonymous coalition "Shut Down Shein," which aims to increase scrutiny and remove the company from the US market.
Why it matters for the planet: The issue highlights concerns about human rights abuses and forced labor in China's Xinjiang region, affecting the global fashion industry.
- Fast fashion brands such as Shein are also under attack for their model, which critics claim is unsustainable and leads to resources over-consumption.
What’s next: Watch for the SEC's response to the lawmakers' request and any actions taken regarding Shein's potential IPO. Additionally, monitor Shein's efforts to demonstrate transparency in its supply chain and compliance with human rights regulations.
One quote: “We strongly believe that the ability to issue and trade securities on our domestic exchanges is a privilege and that foreign companies wishing to do so must uphold a demonstrated commitment to human rights across the globe.” (US lawmakers in a letter to SEC Chair Gary Gensler).
If you want to read more, click here to check out the shocking fast fashion statistics you need to know.