We created the SHEIN Responsible Sourcing (SRS) evaluation system and conduct regular supplier audits as part of our robust, multi-step approach to ensure manufacturing supplier compliance with our standards. SHEIN's Responsible Sourcing Program assigns grades of A, B, C, D, and E based on audit results and performance. An A grade is the highest grade to be achieved, and an E grade includes any one of the Zero Tolerance Violations (ZTVs) and Critical Violations (CVs).

Examples of ZTVs include underaged labour, violations against ethics and transparency, such as bribery or refusal to undertake an SRS audit. Any ZTV identified with a supplier will result in a termination of cooperation.

Examples of CVs include health and safety violations, serious environmental pollution and violations against SHEIN's labor policies and standards. In the event of a CV, SHEIN requires complete remediation within a specified timeframe.

In 2022, together with our contracted third-party agencies, such as Openview and Intertek, SHEIN conducted 2,425 audits covering 1,941 contract manufacturers. We continue to conduct regular audits to ensure that all levels of the supply chain are compliant with the SHEIN Code of Conduct .

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

B: 75 to 90 points. Moderate performance with some general risks. Continued improvement is advised.

C: 60 to 75 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.

E: Any facility found with ZTVs or CVs. In the case of CVs, immediate corrective action is required. In the case of ZTVs, SHEIN terminates the partnership.