Shein has established the Shein Foundation to streamline its prior charitable endeavours under a singular umbrella and ensuring they align with its objectives.
The foundation’s inaugural act is a commitment of $5.30m to the Africa Collect Textiles (ACT) Foundation, a subsidiary of the social enterprise ACT which is recognised for initiating a pilot project in Kenya that focuses on gathering and recycling previously owned textiles.
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Historically, Shein has been active in social and environmental philanthropy through its Shein Cares initiative and Extended Producer Responsibility (EPR) Fund. These programmes have collectively disbursed over $26m towards various causes between 2021 and 2024.
Shein executive chairman Donald Tang said: “Empowering and giving back to the communities we reach has always been core to our operating philosophy. Establishing the Shein Foundation, and thereby consolidating our charitable efforts under a formal philanthropic structure, brings greater accountability and transparency to our donations.
“This also strengthens our ability to direct our charitable giving in a more impactful and sustained manner to better support causes and organisations that align with our values.”
Key priorities of the Shein Foundation
1. Improving Lives in Communities: Targeting systemic barriers, this focus area aims to uplift women, youth, and marginalised groups to foster equitable opportunities and inclusivity.
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By GlobalData2. Protecting Biodiversity: This priority seeks to combat biodiversity loss due to climate change by championing the conservation and sustainable management of ecosystems.
3. Advancing Sustainable Change: The foundation will back research and innovation to drive scalable solutions for environmental and social sustainability within the fashion sector.
The ACT Foundation will use Shein’s grant to enhance textile donation systems and recycling capabilities in Kenya and across Africa. This includes establishing drop-off points for used clothing donations, creating employment opportunities in textile waste management, developing recycling infrastructure, and promoting community engagement through educational programmes.
ACT Foundation director Elmar Stroomer said: “This project will contribute immensely to our mission to reduce textile waste and close the loop on a more circular fashion ecosystem. 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. This journey will inspire hope for a more sustainable and equitable future for all.”
The ACT Foundation’s grant aligns with Shein’s EPR Fund objective of bolstering waste management in regions burdened by textile waste.
The EPR Fund has previously supported initiatives like The Or Foundation and the Untours Foundation, which have made strides in upcycling textile waste through collaborations with social enterprises such as Cambodia’s KaTik.
The launch follows experts warning that Shein’s lack of transparency regarding the use of Xinjiang cotton in its supply chain could hinder its IPO prospects in the UK.
In a recent UK hearing, Shein’s chief legal officer for the EMEA region, Yinan Zhu, could not guarantee British lawmakers that the company’s products are free from cotton sourced from China’s Xinjiang region.
A week later a BBC investigation claimed some garment workers in China often work 14-hour days, however Shein argued that it ensures “fair and dignified treatment of all its workers.”
