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SHEIN Launches €200 Million Circularity Fund in the UK and the EU and Commits to Investing €50 Million in Broader ESG Efforts

SHEIN Launches €200 Million Circularity Fund in the UK and the EU and Commits to Investing €50 Million in Broader ESG Efforts

Listen to this story:
  • SHEIN invests €250M to boost sustainability and entrepreneurship in UK and EU.
  • €200M Circularity Fund to support start-ups in circular fashion solutions.
  • Additional €50M to empower local designers and artisans through SHEIN’s marketplace.

Investment for Future-Ready Fashion

SHEIN, the global online fashion giant, commits to a €250 million investment in the UK and EU over the next five years. This investment aims to create a sustainable fashion industry and support local businesses.

Circularity Fund: A €200M Initiative

The centerpiece of this investment is the €200 million Circularity Fund, designed to advance circularity solutions within the fashion industry. This fund will:

  • Invest in early-stage start-ups focusing on textile-to-textile recycled materials.
  • Form commercial partnerships with mature start-ups developing innovative materials.

Donald Tang, SHEIN’s Executive Chairman, stated, “As a global leader, SHEIN has both a responsibility and an opportunity to accelerate innovations that can address the environmental footprint of the fashion industry. The Circularity Fund will build on our support for entrepreneurs and businesses at the forefront of innovation in circular initiatives.

Supporting Sustainability Solutions

SHEIN’s Circularity Fund extends existing partnerships with innovative companies working on sustainable solutions. This includes:

  • Partnering with Queen of Raw to source surplus fabric, which is used to create new SHEIN garments.
  • Increasing the adoption of cool transfer denim printing technology among SHEIN suppliers, significantly reducing water usage.
  • A multi-year research partnership with academic institutions to develop recycled polyester fibers.

Empowering Local Designers and Artisans

€50 million of the total investment will support UK and EU brands, designers, and artisans. This will:

  • Fund the inclusion of more UK and European designers into the SHEIN X designer incubator program.
  • Create initiatives to help local businesses onboard onto SHEIN’s Marketplace platform.

Mr. Tang added, “Across Europe and the UK, we have identified a rich and diverse pool of designers, brands, and craftspeople who we know can reach a much wider audience on our platform and successfully scale up their businesses with SHEIN.

Related Article: SHEIN’s Bold Response to Explosive Labor Allegations: Massive Investments in Fair Practices

SHEIN’s commitment to sustainability and support for local businesses marks a significant step towards a greener fashion industry and a boost for entrepreneurship in the UK and EU.


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