Chinese fast-fashion giant Shein announced it is allocating an additional USD 85 million over five years towards initiatives that support the firm’s environmental, social, and governance (ESG) efforts.
Dubbed ‘EvoluShein’, Shein’s ESG strategy addresses social and environmental challenges and aims to make “a positive impact on society,” according to a press release.
The ESG roadmap comprises nine priorities organized under three strategic pillars – ‘People’, ‘Planet’ and ‘Process’.
Under its People pillar, Shein said hopes to improve the lives of communities of importance in regards to its business, and create opportunities for people in these communities to reach their full potential. This includes focusing on aspiring designers, Shein’s supplier community, and women, young people and the underprivileged.
“At Shein, we aim to empower our different stakeholder communities with the tools, capabilities and funding to improve and change lives, whether in their personal or professional capacity,” said Molly Miao, chief operating officer at Shein.
“This fund will support these communities to grow alongside Shein, towards a more equitable future.”
The latest investment from Shein is in addition to its USD 70 million, already committed back in April.
As a result, Shein said the USD 155 million in total funding will be broken down over five years. Aspiring designers will receive USD 50 million; Shein’s manufacturing supplier community will receive USD 70 million; some USD 35 million will be allocated to women, young people and the underprivileged.
The renewed commitment comes after Shein continues to come under fire from American lawmakers over its labour practices, as it heads toward a potential IPO in the U.S.