Latest news with #Chinese-founded
Yahoo
2 days ago
- Business
- Yahoo
Schroders chair Corley to join board of London Stock Exchange-owner
Dame Elizabeth Corley, the chair of asset management giant Schroders, is joining the board of London Stock Exchange Group (LSEG) - a move which puts her in a strong position to take the helm there in the coming years. Sky News has learnt that LSEG plans to announce later on Friday that Dame Elizabeth will become a non-executive director of the company. While there is no process underway to find a successor to Don Robert, who has chaired LSEG since May 2019, people close to the exchange-owner speculated that she would be an obvious candidate to do so. Money blog: Glastonbury fan to miss out despite spending more than £16,500 on stay One fund manager also suggested that her dual roles on the boards of Schroders and LSEG could raise questions about potential conflicts of interest given that Schroders is itself listed on the LSE and is a significant user of its services. That idea was rejected by insiders at LSEG on Friday morning. The issue of leadership succession at LSEG is coming into sharper focus for investors because David Schwimmer, its chief executive, has led the company since 2018. Leading shareholders are likely to prefer the appointment of a new chair ahead of Mr Schwimmer's eventual departure. LSEG now has a market capitalisation of over £60bn, with the London bourse representing only a small proportion of its income. The exchange is facing searching questions about its ability to attract new flotation candidates, with those doubts likely to be exacerbated by this week's reports that Shein, the Chinese-founded online fashion giant, is switching its focus to a listing in Hong Kong. LSEG declined to comment.
CNBC
2 days ago
- Business
- CNBC
Shein's embattled IPO signals mounting troubles for fast fashion giant
Fast fashion giant Shein's troubles continue to mount after its much anticipated London initial public offering (IPO) reportedly hit a fresh roadblock. The e-commerce behemoth is now aiming for a Hong Kong listing after failing to receive approval from Chinese regulators for its much hyped London IPO, Reuters reported Wednesday. A London listing had been seen as a boon for the 16-year-old Chinese-founded company, providing international legitimacy and access to a deep and mature pool of Western investors. Analysts nevertheless said they were unsurprised by the move given ongoing scrutiny surrounding the firm. "We've always said that we thought Hong Kong would be a safer IPO option for Shein," Samuel Kerr, head of global equity capital markets at Mergermarket, told CNBC's "Squawk Box Europe" on Thursday. "For international investors, this was always going to be an IPO that had a lot of hair on it, and perhaps it's going to play better to a domestic audience," he added. Neither Shein nor Chinese regulator China Securities Regulatory Commission (CSRC) responded to CNBC's request for comment on the plans. Hong Kong Exchanges and Clearing Limited said it does not comment on individual companies. Shein has faced an uphill battle in its listing ambitions as it seeks to shake allegations over the use of forced labor to produce its $5 t-shirts and $7 shoes. While it vehemently denies the claims, Shein last year shifted its focus from a New York listing to London after facing continued pushback on such issues from U.S. lawmakers. Meanwhile, concern over its commercial practices prompted an EU investigation, which earlier this week found the company in breach of consumer protection laws, including the use of fake discounts, pressure selling and misleading shoppers over sustainability claims. The closure this month of the U.S.'s de minimis loophole for low cost goods — and possible similar measures by the EU and the U.K. — have only added to the company's woes. "The barrage of criticism, which looked set to intensify leading up to a London listing, is considered to be partly why Chinese regulators were reluctant to give the IPO the green light," Susannah Streeter, head of money and markets at Hargreaves Lansdown, wrote in a note Wednesday. Shein's proposed London listing was also seen as providing a much needed boost to the U.K.'s lackluster IPO market after a string of delistings and defections amid intense competition from other financial markets. "This will be a blow for London's ambitions to attract bigger names to list in the capital, but given the obstacles piling up, it's not surprising [that] the company seems to be veering off in another direction," Streeter said. Still, some expressed worry that positioning the controversial listing as the face of London's IPO revival could send the wrong signal to investors. "There was a bit of concern from some in London that Shein would be seen as a benchmark barometer for the future of the London Stock Exchange and for IPOs coming back to London. I think that would have been problematic," Kerr said. Additional scrutiny in the U.K. was also seen as piling pressure on Shein's valuation amid comparisons to other listed retail peers, such as Asos, Next and Boohoo. The company was already reportedly under pressure to cut its London listing valuation to around $30 billion, according to Bloomberg, down from a previously estimated $50 billion. "Going away from the U.K. and away from those U.K. peers will probably allow it to get a higher valuation," Kerr noted. Meantime, a Shein listing could market a further boon for Hong Kong in what is shaping up to be a strong year for the market following fresh flows of capital from on- and offshore investors. "It would have been a meaningful milestone for Shein to list in either London or New York, given the maturity, depth, and valuation potential of those markets," Rui Ma, founder and analyst at Tech Buzz China, told CNBC via email. "That said, markets are ultimately shaped by the quality of their listings and participants. Shein's listing is a win for Hong Kong — but not yet a turning point," she added. Shein investors CNBC spoke to declined to comment on the listing's reported relocation.
Yahoo
3 days ago
- Business
- Yahoo
Shein's Climate Ambitions Have Been Validated. Now What?
'I am dubious,' Kenneth Pucker wrote—succinctly and pointedly—on LinkedIn on Tuesday. The Fletcher School at Tufts University professor of the practice was expressing his feelings about Shein, which revealed the same day that it had attained a 'milestone' in its 'climate journey' following the Science Based Targets initiative's validation of its goal to reach net-zero greenhouse gas emissions across its entire value chain by 2050. This means it would remove more carbon dioxide from the air than it would release. More from Sourcing Journal EU Watchdog Says Shein Violated Bloc's Consumer Laws H&M Foundation's 10 Global Change Award Winners Have One Thing in Common Who Benefited From Shein, Temu Troubles? The Chinese-founded e-tail Goliath said it will achieve this through a 'decarbonization roadmap,' developed with advisory firm Anthesis Group, to reduce its absolute Scope 1 and 2 emissions—that is, those produced directly by Shein and the energy it purchases—by 42 percent and its absolute Scope 3 emissions—those produced by its suppliers—by 25 percent by 2030. Steps will include deploying only renewable energy at all directly managed facilities, phasing out fossil fuels in its operations by transitioning to electric vehicles, minimizing the adoption of virgin materials and cutting transportation distances by ramping up local procurement and optimizing logistical routes. 'SBTi's validation of our net-zero targets marks an important step in Shein's decarbonization journey,' Mustan Lalani, a Tetra Pak vet who joined the Singapore-headquartered company as its global head of sustainability in January, said in a statement. 'We are committed to reducing emissions across our value chain and recognize that addressing Scope 3 emissions is a complex but critical part of that effort. As we continue this work, we will build on our momentum and adapt our approach in line with evolving technologies, policies and industry best practices.' But Shein's planet-warming emissions have never declined year over year, Pucker noted. They have, in fact, nearly tripled over the past three years. In 2023, the Temu nemesis' carbon footprint swelled to 16.7 million metric tons of carbon dioxide, up 45 percent from the previous year and 175 percent from the year before that. The number outlaps not only the 16.4 million metric tons in emissions produced by Zara owner Inditex, fashion's previous top polluter, but also those of several countries. It wouldn't be hyperbole to say that Shein is the industry's biggest environmental offender. At best, Shein's plans are misleading because they focus on Scope 1 and 2 targets that account for less than 0.5 percent of its total emissions, said Rachel Kitchin, senior corporate climate campaigner at a Canadian watchdog group that ranks the ultra-fast-fashion purveyor last in its Fossil-Free Fashion Scorecard. At worst, its proposal is unattainable without severe changes to its production and distribution model, which is heavily reliant on coal-stoked power generation, high production volumes and extensive air freight, she said. 'We need to see Shein commit to concrete targets—with a goal to phase out on-site coal by 2030 and transition to renewable energy across supply chains—to take this plan seriously,' she said. 'Until the company stops flying millions of small packages around the world, commits to phasing out coal and actively supports a transition to renewable energy across its supply chain, we're deeply skeptical that this announcement is anything more than PR.' It's perhaps also worth noting that SBTi doesn't probe deeply into a company's underlying business model when reviewing a target, said Michael Sadowski, a climate and sustainability consultant and former Nike director of sustainable business and innovation. What the nonprofit looks at is the data shared voluntarily during target submissions to ensure that it meets the SBTi criteria. 'I don't have any inside info on Shein, and so observing their astronomical growth over the last decade, coupled with their business model, makes me question how they will reduce scope 3 emissions by 25 percent by 2030,' he said. 'I would like to see a detailed plan for how they will achieve this: Will they not ship individual packages by air? Will they fund renewable energy at suppliers or commit to long-term supplier relationships so these partners can invest in renewable energy? Will they invest in fuel switching at mills?' Sadowski said that fiber switching and 'supporting' manufacturers in transitioning to renewable energy alone won't help Shein reach 25 percent. He said he knows of only a 'small handful' of apparel and footwear brands that have reduced Scope 3 emissions on an absolute basis. They have done so only by investing a lot of money in manufacturers with which they have maintained longstanding relationships. Shein's announcement comes among rumors that it's pursuing a listing in Hong Kong after Chinese regulators, specifically the China Securities Regulatory Commission, failed to give it the go-ahead for a London IPO after Britain's Financial Conduct Authority greenlit the move. Unnamed sources told Reuters Wednesday that the company plans to go public in the special administrative region within the year. This would make it the third try at going public for Shein, which did not respond to a request for comment. Before its attempt in the United Kingdom, the Missguided owner was reportedly hoping for a New York debut. This was scuppered, it's been said, by a rare united front by Republican and Democratic lawmakers that threw conditions over concerns about China's influence and the potential forced labor of persecuted Muslim minorities. The retail giant has also had to grapple with questions of trustworthiness. Just this week, national consumer authorities in Belgium, France, Ireland and the Netherlands joined the European Commission to ask Shein to fix practices on its platform that appear to flout EU consumer law, including what they say are 'giving false or deceptive information about the sustainability benefits of certain products.' In 2024, Italy's antitrust agency opened an investigation into a company that manages Shein's online presence in the country over possible greenwashing. Shein has said that it is ready to cooperate openly with authorities. 'If Shein delivers on its plan to grow approximately 25 percent over the near term, that would mean that the carbon intensity unit would have to fall by 85 percent to achieve their target,' said Pucker, still unconvinced. 'Will they achieve their plan?' On the plus side, Shein's disclosure of SBTi-approved emissions reduction targets, when more than half of 250 major fashion brands fail to do so, is commendable in and of itself, said Liv Simpliciano, policy and research manager at Fashion Revolution, a grassroots organization that scores companies on their transparency—or lack thereof. But it's also what she calls the bare minimum. So far, Shein hasn't divulged its supplier list or annual production volumes, which activists say are necessary to verify brand claims and hold them to account. And by her estimation, only four brands—Asics, H&M Group, Marks & Spencer and Patagonia—have carbon reduction targets that meet the level of ambition that the Paris Agreement has determined will stave off the worst effects of climate change. 'That being said, targets are only as meaningful as the action that follows,' she said. 'The fashion industry remains far off track from delivering the rapid, large-scale emissions cuts that climate science makes unequivocally clear are needed. The polluter pays principle must apply: those with the largest footprints carry the greatest responsibility to act. Targets and ambition levels must match pollution levels.' More than anything, Peter Ford, a decarbonization consultant who previously worked at H&M Group, thinks that Shein whiffed a chance to have reduction goals with real bite. He said that while all companies need to interrogate their carbon emissions and set targets to reduce them, it is especially imperative that any company whose Scope 3 emissions account for 'practically all of its existing contributions to global heating' set targets that are 'high enough to be impactful.' 'The announced targets for Shein are small, and not even close to aligning with current industry-standard goal of 50 percent reduction by 2030 that UNFCCC Fashion Charter signatories have committed to,' he said, using an acronym for the United Nations Framework Convention on Climate Change. 'Industry giants H&M Group and Inditex have SBTis that are even more ambitious, and I feel Shein has missed an opportunity to highlight that it clearly understands the role it currently plays in contributing to global heating—and demonstrate a commitment to meaningfully reduce it.'
Al Etihad
5 days ago
- Business
- Al Etihad
Shein risks fines over breaches of EU consumer law
26 May 2025 19:37 BRUSSELS (AFP)Shein risks potential fines after the EU warned the e-commerce platform Monday over a series of practices that infringe the bloc's consumer laws, from fake discount deals to misleading product Chinese-founded platform has a month to reply and offer commitments on addressing the issues found during a probe launched in February by the European Commission with consumer authorities in Belgium, France, Ireland and The said it was working with the authorities to tackle the using Shein faced a range of tactics including "false purchase deadlines" to put them under pressure to buy quickly from the platform, the commission also said there was "missing, incorrect and misleading information" about consumers' legal rights to return goods and receive refunds, and deceptive labels that suggested a product offered something special that was already required by EU also accused Shein of providing false information about the sustainability benefits of its products."EU consumer protection laws are not optional -- they must be applied in all cases," said the EU's top consumer protection official, Michael McGrath."It's now for Shein to step up, respect the rules and bring its practices fully in line with EU consumer standards," he added.A Shein spokesperson said: "We have been working constructively with national consumers authorities and the EU Commission to demonstrate our commitment to complying with EU laws and regulations, and we are continuing to engage in this process to address any concerns." The EU last week said it was preparing to impose a two-euro ($2.30) flat fee on the billions of low-value packages that flood into the bloc each year, which would affect popular platforms like Temu and Shein.
The Citizen
5 days ago
- Business
- The Citizen
Shein risks fines over breaches of EU consumer law
The European Commission has warned Shein to fix deceptive sales tactics, false eco-claims, and consumer rights violations. Shein risks potential fines after the EU warned the e-commerce platform Monday over a series of practices that infringe the bloc's consumer laws, from fake discount deals to misleading product information. The Chinese-founded platform has a month to reply and offer commitments on addressing the issues found during a probe launched in February by the European Commission with national consumer authorities in Belgium, France, Ireland and The Netherlands. Shein's alleged tactics Consumers using Shein faced a range of tactics including 'false purchase deadlines' to put them under pressure to buy quickly from the platform, the commission said. It also said there was 'missing, incorrect and misleading information' about consumers' legal rights to return goods and receive refunds, and deceptive labels that suggested a product offered something special that was already required by law. ALSO READ: Is your Shein order late? This might be why The EU also accused Shein of providing false information about the sustainability benefits of its products. EU laws 'not optional' 'EU consumer protection laws are not optional — they must be applied in all cases,' said the EU's top consumer protection official, Michael McGrath. 'It's now for Shein to step up, respect the rules and bring its practices fully in line with EU consumer standards,' he added. Shein did not immediately respond to AFP's request for comment. The EU last week said it was preparing to impose a two-euro ($2.30) flat fee on the billions of low-value packages that flood into the bloc each year, which would affect popular platforms like Temu and Shein. NOW READ: Shein feels pressure due to increase in import tax
