Shein to invest $270 million in Europe and the UK over the next five years

Posted on 03/09/2024

$270 million for a Circularity Fund and $54 million intended to support local brands, designers and artisans: what really lies behind Shein's latest stunt

@Reuters

Shein has announced plans to allocate $270 million (approximately €250 million ) to the European Union and the United Kingdom over the next five years. This investment will be divided into two main initiatives: the creation of a €200 million ($216 million) Circularity Fund and an additional €50 million ($54 million) to support local brands, designers, and artisans.

Circularity fund to promote sustainable innovation

The Circularity Fund is designed to support European start-ups and businesses committed to developing innovative technologies and solutions focused on sustainability. This initiative is part of Shein’s broader strategy to promote circularity in the fashion industry, a critical issue given the significant environmental impact of the sector.

Shein aims to act as a catalyst to accelerate the widespread adoption of these solutions, facilitating the transition toward a more sustainable economy. Specific initiatives supported by the fund include collaborations to recover surplus fabrics destined for landfills, the adoption of low-water denim printing technologies, and research partnerships with academic institutions to develop recycled polyester fibers through chemical recycling.

Expanding the Shein exchange resale platform

In addition to the Circularity Fund, Shein will allocate$54 million (€50 million ) to initiatives supporting European brands, designers, and artisans, helping them grow in the online market through the marketplace services offered by the platform.

This includes funding for research and development projects, as well as support for production and commercialization through the Shein X program, which aims to provide visibility to emerging designers. Additionally, Shein is working to expand its resale platform, Shein Exchange, which was initially launched in the United States and is now being extended to France, the United Kingdom, and Germany.

With these initiatives, Shein aims to address criticisms it has faced in recent years regarding the environmental impact of fast fashion. The company also seeks to consolidate its presence in the European market by promoting a more sustainable and responsible business model.

However, it is important to not be misled by these promises. Behind these initiatives, there are often distractions that obscure the reality of a giant accused of greenwashing through projects that attempt to polish its brand image while hiding ongoing practices such as labor exploitation, the production of low-quality goods designed to be discarded quickly, and, above all, extensive pollution.

The struggle for recognition: amazonian indigenous guards demand government support

In July, the number of indigenous leaders murdered in Peru rose to 35 and, faced with the Government's continued ineffectiveness, the Shipibo and Kakataibo peoples are now trying to protect themselves and defend their territories from drug trafficking, mining illegal and other threats

Illegal mining and drug trafficking are just some of the hundreds of violent episodes that indigenous populations in the Peruvian Amazon face daily. To combat this, the indigenous guards, or “guardias indígenas”, have been established to defend native peoples.

But the problem? Indigenous leaders are being brutally murdered, with deaths often linked to illegal activities such as mining and logging. This has led the Shipibo and Kakataibo communities, natives of Loreto and Ucayali, to demand government recognition for their indigenous guards. Guards from 24 bases of the Shipibo and Kakataibo indigenous peoples, members of the Asháninka delegation for Amazon Indigenous Security (SIA), are now seeking official status from the State.

“We are ready to continue fighting for what is ours, for our territories. Now, we are more and must continue expanding the struggle to defend what is ours,” said Marco Tulio Guimaraes, commander of the Shipibo-Konibo-Xetebo people’s guard, during the Second International Meeting of Indigenous Guards.

In line with this, they are considering forming alliances with political forces, promoting a new law on Amazon Indigenous Security, and encouraging the participation of indigenous women in the guards.

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Why indigenous peoples are seeking self-protection

The emergence of indigenous guards comes in response to a lack of protection and extreme vulnerability faced by leaders of indigenous communities in regions such as Ucayali, Loreto, and San Martín, where illegal economies threaten their safety and territories.

As a reminder, in July of this year, the death of Kakataibo leader Mariano Isacama was reported, bringing the number of defenders killed in Peru to 35. As a result, many communities in the Amazon have chosen to seek self-protection and are now pursuing legal recognition.