Shein is preparing to go public in Hong Kong next month after earlier efforts to list in New York and London drew criticism over environmental impact, labor standards and governance. Ongoing investigations by the European Commission and the U.S. Federal Trade Commission, along with previous fines in France over alleged fake discounts and Italy over greenwashing, could weigh on the company’s valuation and expose it to further penalties. Shein has expanded its annual ESG (environmental, social and governance) report to 118 pages from 28 pages in 2021, hired consultants and established an external ESG advisory board in 2024. Its 2025 sustainability report said 53% of suppliers received the top audit grades, compared with 47% in 2024. Investors nonetheless cite labor conditions, supply-chain traceability, regulatory scrutiny, carbon emissions and governance risks. Shein’s dual-class share structure gives Class A shares 10 votes each and Class B shares one vote each, leaving its four co-founders with 59.6% of the shares but 90% of voting rights after the IPO. The co-founders also hold executive roles and board seats, while only three of seven directors are independent; the chief executive and chairman roles are combined. Shein reported greenhouse-gas emissions roughly twice those of Inditex in 2025, despite annual sales of $41.8 billion compared with Inditex’s €39.9 billion ($46.54 billion). The company says its demand-based production model limits unsold inventory, but critics argue its low prices, plastic-heavy garments and high-volume sales encourage disposable consumption. Its filing said the website adds 4,700 new styles daily and lists more than 2 million apparel styles. Investors are focused on whether Shein’s growth strategy can support a credible long-term sustainability transition.