On January 7, 2025, online retailer Shein’s General Counsel for EMEA went before the UK Parliament’s Business and Trade Committee to answer questions about the possibility of forced labor in the company’s supply chain and compliance with the UK Modern Slavery Act. It is worth noting that Shein is pursuing an IPO on the London Exchange. Her testimony starts at approximately the 15:57:59 mark. The best words to describe what happened: “painful” and “awkward.” I don’t see a valid excuse for not being prepared to answer some of the questions – and she gets called out for it.
Perhaps the highlight is when she is asked about her possible personal liability under UK law for knowing information that was contained in a recent report to the company from UK law firm Leigh Day. Or maybe the Chairman’s scathing summary that includes phrases like “horrified by the lack of evidence you have provided”, “zero confidence in the integrity of your supply chains” and “reluctance to answer basic questions has frankly bordered on contempt.”
That’s gonna leave a mark…
ESG/sustainability leaders, staff and advisors – watch this video (at least Shein’s part) and ask your General Counsel to watch it as well. Come up with a plan for ensuring your legal team understands fundamentals of your company’s ESG/sustainability program – including supplier management, basic statistics/metrics, the content of ESG/sustainability reports and updates on important NGO/media reports.
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