Shein has fallen short of international guidelines on human rights, wages and the environment, according to the Organisation for Economic Co-operation and Development (OECD).
The French organisation said that Shein “does not comply” with several of its guidelines regarding corporate social responsibility (CSR).
It comes after French Socialist MPs referred the matter to the OECD’s National Contact Point (NCP) in 2023 to raise questions over several aspects of the fashion retailer’s supply chain.
The NCP accused the business of failing to comply with France’s anti-waste law for a circular economy (AGEC), where brands are required to indicate, for each product the percentage of recycled materials used and the countries where weaving, dyeing and printing, and manufacturing are carried out.
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The National Contact Point alleged that Shein was hiding behind Chinese legislation, where the majority of the brand’s clothes are produced.
Additionally, it highlighted that the company did not publish its factory audit grid, any mapping of its activities or supply chain, nor any account of its social and environmental impacts, apart from calculations of greenhouse gas emissions.
The OECD recommended Shein publish its financial results, capital structure, ownership structure and governance.
The intergovernmental organisation acknowledged that “since receiving the referral, efforts have been made by Shein to formalise a sustainability policy and communicate its initial results”.
In a statement, Shein said: “As recognised by the French NCP, Shein has engaged constructively in this process for over two years (June 2023 to September 2025), sharing extensive information and remaining open to dialogue.
“However, we regret that the process at times did not reflect the neutral mediation intended by the OECD framework, notably through consultations limited to known critics of Shein.
“We further reject the claims that Shein is in breach of various EU legislations, specifically those that are not yet applicable. These assertions are premature and misleading as OECD guidelines do not require compliance with laws not yet applicable.”
They added: “We remain committed to constructive dialogue and respectfully request that the NCP’s final communication reflect a balanced and impartial approach.”
In September, Shein was accused of shifting its UK income to Singapore to cut its tax bill.
Accounts filed at Companies House showed that Shein Distribution UK generated sales of £2bn in 2024 but paid just £9.6m in corporation tax.
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