Dive Brief:
- Shein has launched a charitable arm called the Shein Foundation, which is designed to foster “inclusive and sustainable communities” in regions where the fast fashion company operates, according to a press release Friday.
- The nonprofit’s first grant is a 5 million euro donation, or about $5.2 million, to the Africa Collect Textiles Foundation for its used textile collecting and recycling program in Kenya.
- The establishment of the Shein Foundation adds to the fast fashion giant’s previous donations of about $26 million between 2021 and 2024, according to the release. Those grants primarily focused on social and environmental initiatives.
Dive Insight:
The Shein Foundation will focus on three primary areas: improving lives in communities, protecting biodiversity and advancing sustainable change, per the release.
The company said its previous charitable contributions focused on these areas as well, including the 2022 launch of the Extended Producer Responsibility Fund and a 2023 grant that boosted education opportunities in Singapore among other communities. Last year, it donated $430,000 to six Dress for Success affiliates in the U.S., U.K., Italy and Singapore, which provides clothing and support to underemployed women looking for jobs.
Donald Tang, Shein’s executive chairman, said in the release that organizing the company’s charitable efforts in a foundation brings greater accountability and transparency to its donations.
“Empowering and giving back to the communities we reach has always been core to our operating philosophy,” Tang said. “...This also strengthens our ability to direct our charitable giving in a more impactful and sustained manner to better support causes and organizations that align with our values.”
The Africa Collect Textiles Foundation, the recipient of the latest grant, will use the money to continue to promote textile donation and post-consumer recycling in Kenya and in the broader Africa region, per the release.
The ACT Foundation plans to install drop-off points to facilitate used clothing donations and create jobs for the collectors, sorters and artisans who upcycle textile waste. Shein said this grant is consistent with its previous EPR Fund goals.
“This project will contribute immensely to our mission to reduce textile waste and close the loop on a more circular fashion ecosystem,” Elmar Stroomer, director of the ACT Foundation, said in the release. “Through this project, we are not only protecting our planet but also creating jobs that will transform lives and provide opportunities to those in need.”
Developing a philanthropic arm is another step Shein is taking to diversify its reach.
Last October, Shein launched its first credit card, primarily targeting the Mexico market.
Earlier this month, Shein entered a joint venture with Sparc Group and Simon Property Group to form Catalyst Brands with J.C. Penney. The deal expanded Shein’s relationship with the Sparc Group, which includes a partnership with Forever 21 where both brands will distribute each other’s products.
When that deal was signed, analysts suggested that partnering with a U.S.-based company would give credibility to Shein.
Shein’s labor and environmental practices have been challenged by various regulatory agencies in the U.S., EU and Vietnam. It has recently taken steps to clean up its image, including launching two independent advisory boards for ESG and corporate responsibility issues.
