ESG Today writes that this measure comes as the fashion industry, especially fast-fashion, is under serious pressure to address the climate impact of their activity. SHEIN will thus use the funding to support startups and business in Europe that are developing new technologies and solutions aimed at implementing circularity in fashion.

The 200 million euros will go towards funding early-stage circular fashion startups, as well as establishing partnerships and offtake agreements with already established and proven businesses.

Donald Tang, SHEIN’s Executive Chairman, said that "SHEIN has both a responsibility and an opportunity to accelerate innovations that can address the environmental footprint of the fashion industry. The Circularity Fund will build on our support for entrepreneurs and businesses at the forefront of innovation in circular initiatives, with a focus on supporting entrepreneurship and innovation in the UK and the EU, where some of the most exciting work in this space is taking place."

Back in 2022, SHEIN also established value chain emission reduction targets, such as cutting Scope 3 emissions by 25% by 2030, as these account for 99% of the company's carbon footprint. Private investors, financial companies and other businesses are also encouraged to join the fund.