Pay, human rights and the environment: the OECD puts Shein on notice

Asian fashion brand Shein “does not comply with several recommendations of the OECD guidelines” concerning human rights, wages and the environment, according to a press release issued by the organisation on Monday.

In 2023, French Socialist MPs referred the matter to the OECD’s National Contact Point (NCP), a body affiliated with the Organisation for Economic Co-operation and Development, to raise questions about several aspects of the online retailer’s supply chain.

Founded in 2012 in China and based in Singapore, Shein has regularly faced accusations of environmental pollution and unacceptable working conditions.

The NCP has just issued its non-binding conclusions. It accuses Shein of failing to comply with France’s “AGEC” law, which requires brands to indicate, for each product, the percentage of recycled materials used and the countries where weaving, dyeing and printing, and manufacturing are carried out.

In addition, it suspects Shein of shirking its labour-law obligations by hiding behind Chinese legislation, from which the majority of its sourcing originates. However, “it is up to the company to implement proactive measures to guarantee (…) compliance with applicable international standards”, failing which there remain risks of hindering workers’ freedom of association, precarious working conditions and even forced labour.

The OECD also regrets that Shein publishes neither “its factory audit framework” nor “any mapping of its activities or its supply chain”, nor any account of its social and environmental impacts, aside from calculations of greenhouse gas emissions.

The organisation also recommends that the company publish its financial results, capital structure and governance.

It acknowledges that “since receiving the referral, efforts have been made by Shein to formalise a sustainability policy and communicate its initial results”.

Shein “has participated constructively in this process for more than two years (from June 2023 to September 2025), sharing a great deal of information and remaining open to dialogue”, the company told AFP on Monday.

It said it regretted “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”.

Paris, 29 September 2025 (AFP)