TLDR:
- SHEIN launches €200 million Textile Circularity Fund to support startups in Europe and the UK focusing on circularity solutions.
- The fund aims to address the environmental impact of the fast-fashion sector and promote innovation in textile-to-textile recycled materials.
Global fashion online retailer SHEIN has introduced a new Circularity Fund with an initial investment of €200 million to support startups in Europe and the UK dedicated to developing textile-to-textile circularity solutions. The fashion industry, particularly fast fashion, is under increasing pressure to tackle the climate impact of their operations. The European Commission has proposed regulations to manage textile waste more sustainably and shift responsibility for product lifecycle to producers.
SHEIN’s fund will focus on investing in early-stage startups working on textile-to-textile recycled materials innovation. Additionally, the company will collaborate with mature startups with existing production capacity in textile-to-textile recycled materials or new preferred fibers. The initiative follows SHEIN’s establishment of value chain emissions targets in 2022, including a goal to reduce Scope 3 emissions by 25% by 2030. Scope 3 emissions account for over 99% of SHEIN’s greenhouse gas footprint, mainly originating in the product supply chain.
Donald Tang, SHEIN’s Executive Chairman, emphasized the company’s commitment to accelerating innovations in the fashion industry’s environmental footprint. The Circularity Fund aims to support entrepreneurship and innovation in circular initiatives in the UK and the EU, where significant progress in this field is happening. SHEIN invites businesses, financial institutions, and sovereign wealth funds worldwide to co-invest in the fund.
