Europe Steps Up as the World’s ESG Sheriff

In June 2024, the fashion company Shein Group Ltd. began its second attempt to go public. An earlier effort to float on the New York Stock Exchange had failed after US politicians scrutinized the company’s links to China. Now Shein was looking for a £50 billion ($67.4 billion) valuation on the UK stock exchange, but there, too, it faced obstacles. Investors, lawmakers and nongovernmental organizations argued that the company had violated financial disclosure rules and greenwashing provisions through its alleged use of forced labor and its high-emissions fast-fashion model.

In response to the critique, Shein implemented a charm offensive ...