We have created the SHEIN Responsible Sourcing (SRS) evaluation system and conduct regular supplier audits. SHEIN's Responsible Sourcing Program assigns grades of A, B, C, D and Zero Tolerance Violations (ZTVs) to factories based on audit results. Examples of ZTVs include forced labor, serious environmental pollution, severe health and safety violations, and underage labor. SHEIN provides capacity building training to suppliers to support the remediation of ZTV and other major Code violations. Should suppliers fail to remediate violations within the allowed timeframe (30 days in severe cases, such as underage labor), we take further action, including termination. In 2021, we contracted third-party agencies, such as Openview and ITS, and used our trained staff to conduct nearly 700 audits of SHEIN supplier facilities using SEDEX SMETA and SRS Program standards. We will continue to conduct regular audits to ensure that all levels of the supply chain are compliant with the SHEIN Code of Conduct , accessible here.

A: 90 points and above. Outstanding performance with minor flaws. Continued improvement is advised.

B: 80 to 90 points. Moderate performance with some general risks. Continued improvement is advised.

C: 60 to 80 points. Mediocre performance with 1-3 major risks. Corrective action is required.

D: Below 60 points. Poor performance with over 3 major risks. Corrective action is required.

ZTV: Below zero. Very poor with ZTV risks. Immediate corrective action is required.