SHEIN, a prominent player in the fast fashion industry, has made a significant contribution of US $55 million to improve working conditions at its third-party manufacturing suppliers. This funding will be utilized to modernize facilities and enhance worker skills, benefiting the company’s Supplier Community Empowerment Programme (SCEP). The SCEP, initiated last year, aims to revolutionize traditional production models through technology and bring about a modern era in supply chains.
These additional funds increase SHEIN’s total commitments to US $70 million, which will be distributed over the next five years to manufacturers within its supplier network. This is a substantial increase from the US $15 million that the company disclosed last year.
The announcement comes at a time when US lawmakers are seeking to prevent SHEIN from going public unless it demonstrates increased transparency in its supply chain and proves that it does not utilize forced labor from Xinjiang, specifically coerced Uyghur labor.
In December, the SCEP received US $15 million for factory modernization. SHEIN has committed to upgrading “hundreds” of factories, with more than 100 scheduled for modernization in 2023 alone. Currently, the company has already upgraded 31 factories.
SHEIN plans to allocate US $40 million to the recently constructed Centre of Innovation for Garment Manufacturing. This investment aims to create sustainable production ecosystems and improve workflow within the center.
Furthermore, the allocated funds will be utilized to provide housing options for supply chain workers, as well as childcare facilities and lifestyle amenities such as recreation areas.
Tony Ren, the general manager of the supply chain at SHEIN, emphasized that the company has been at the forefront of cutting-edge production models.
In conclusion, SHEIN’s commitment to enhancing working conditions and investing in its supplier network demonstrates its dedication to responsible and sustainable practices in the fast fashion industry. By utilizing technology and modernizing facilities, SHEIN aims to create a more transparent and ethical supply chain.
