The world’s leading luxury fashion conglomerate, LVMH, and the largest ultra-fast fashion retailer, SHEIN, are facing significant scrutiny regarding their business models and environmental, social, and governance (ESG) practices, despite their contrasting positions in the fashion industry.
LVMH, renowned for its high-end brands and recent role as a prominent sponsor of the Paris Olympic Games and the upcoming Paralympics, is grappling with allegations of labor exploitation and unethical practices at its Christian Dior operations in Italy. The investigation into these claims underscores growing concerns about labor conditions within high-fashion sectors.
On the other end of the spectrum, SHEIN, a major player in the ultra-fast fashion industry and recently headquartered in Singapore, is preparing for an initial public offering (IPO) on the London Stock Exchange (LSE). The IPO could value the company at £50 billion ($97 billion). Despite its rapid growth and market dominance, SHEIN is under fire from advocacy groups and critics for various issues. These include allegations of human rights abuses related to cotton sourced from China’s Xinjiang province, a substantial carbon footprint, and accusations of copyright infringement.
Both LVMH and SHEIN are now facing increased pressure to address these ESG concerns as they navigate their respective business strategies and reputations in the global market.
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