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1、2023 Sustainability and Social Impact Report3 A Note From Our CEO4 About Us6 Materiality:Identifying PriorityAreas7 Our Approach:evoluSHEIN 8 Targets and Aspirations9 2023 ESG Highlights EQUITABLE EMPOWERMENT 12 Enable Self-Expression for All12 Putting Customers First:Our Commitment to Inclusivity14

2、 Provide Access to Talent14 Uncovering Top Global Talent14 Clear Pathways to Growth15 Nurturing Feelings of Belonging16 A Culture of Shared Safety Responsibility17 Improve Lives in Communities17 Our Commitment to Human Rights18 Supply Chain Governance23 Empowering Our Suppliers23 Marketplace Seller

3、Governance24 Empowering Communities WeReach24 Supplier Community Empowerment Program26 SHEIN X Designer Incubator Program:Discover,Design,Empower28 SHEIN Cares COLLECTIVE RESILIENCE 31 Decarbonize Our Supply Chain 31 Our Carbon Footprint 34 Source Responsible Materials 34 An Established System for Q

4、uality and Safety35 Quality and Durability35 Chemical Safety36 Sourcing Lower-Impact Materials37 evoluSHEIN by Design 39 Protect Biodiversity and Animal Welfare 39 Material Traceability39 Making a Commitment to Our Forests39 Animal WelfareWASTE-LESS INNOVATION 42 Optimize Resource Efficiency42 Tech-

5、Driven Waste Reduction42 Conserving Water 43 Design Circular Systems 43 Building a Circular Ecosystem 44 Circular Production44 Engaging on Circularity45 Keeping Clothing in Circulation Longer45 Extended Producer Responsibility46 Accelerate Sustainable Innovation 46 The Test-and-Scale Approach46 Inno

6、vation at SHEIN48 ESG Governance Approach49 Responsible Business Practices50 United Nations Sustainable Development Goals52 Disclaimer and Forward-Looking Statements53 External AssuranceINTRODUCTIONPEOPLEPLANETPROCESSGOVERNANCEANNEXABOUT THIS REPORT Assurance for select information,to the limited as

7、surance standard,by an external independent assurer as per International Standard on Assurance Engagements(ISAE)3000.Our commitment to the Ten Principles of the UN Global Compact and our progress against these principles.Welcome to our third annual Sustainability and Social Impact Report,where we sh

8、are:Our environmental,social and governance(ESG)goals,progress and performance metrics for financial year 2023(Jan.1,2023 to Dec.31,2023).A detailed account of how our evoluSHEIN roadmap drives our environmental and social impact initiatives and how we are evolving for the future.Select information

9、reported with reference to the Global Reporting Initiative(GRI)2021 Standard for certain report sections.Additional context,where relevant,is provided in our GRI Index.Table of ContentsINTRODUCTION A Note From Our CEOAbout UsMateriality:Identifying Priority AreasOur Approach:evoluSHEINTargets and As

10、pirations2023 ESG HighlightsPEOPLE PLANETPROCESSGOVERNANCE ANNEX22023 SUSTAINABILITY AND SOCIAL IMPACT REPORTA Note From Our CEOI am honored to present SHEINs third annual Sustainability and SocialImpact Report.As my team and I reviewed our progress this year,it prompted us to deeply reflect on the

11、impact we have on the world aroundus.At SHEIN,our mission is to make the beauty of fashion accessible for all.However,we recognize that producing affordable apparel and delivering it quickly to our customers all over the world comes with significant challenges that we,along with the rest of the indu

12、stry,must address.I am proud of our teams efforts to date in mitigating our environmental impact and promoting positive social change,but we acknowledge that we are still early in this journey and have much to improve.This report demonstrates our serious commitment to these responsibilities,which is

13、 backed by our dedication of substantial resources to addressing our biggest challenges.We are just getting started.SHEINs on-demand business model gives us a strong foundation to bring technology and efficiency to the traditional retail sector.Our technology-driven supply chain helps to reduce inve

14、ntory waste,a critical driver for us to offer affordable prices to consumers.We strive to instill a mindset of waste minimization across our partner ecosystem,from initial design to the final product.We believe this on-demand model is not only our competitive advantage for delighting consumers but a

15、lso key to mitigating our environmental impact.Since launching our evoluSHEIN social and sustainability strategy,we have taken fundamental steps in 2023 to drive progress towards our targets,enhance our governance systems,and build a network of partners to support our sustainability journey.Looking

16、ahead,two areas will continue to be particularly critical for our team:further improving supply chain governance,and managing our carbon footprint,particularly in our Scope 3 emissions.On supply chain governance,we have continued to strengthen programs for both enforcement and empowerment.As signato

17、ries of the UN Global Compact(UNGC),we support the Ten Principles focused on human rights,labor,environment,and anti-corruption,and expect our suppliers to share our commitment to such principles.To address labor and human rights risks,we have tightened standards under our Supplier Code of Conduct a

18、nd SHEIN Responsible Sourcing(SRS)Policy,and stepped up our supplier audit program,in partnership with third-party verification agencies,to ensure that our suppliers comply with our standards.Balancing remediation and penalization,we have supported our suppliers with training to address compliance r

19、isks within their operations,while taking the firm but necessary step to terminate working relationships where warranted.We also continue to invest in programs that support our suppliers in continually improving the wellbeing of their workers,their families,and their communities.On our carbon footpr

20、int and impact on the environment,we have continued our efforts to manage our impact across our value chain,and advance our circularity ambitions,leveraging our technological edge.We work directly with our suppliers to transition to renewable energy and implement more efficient processes to reduce e

21、nergy,water and chemical usage,as well as with our logistics partners to offer more green options in last-mile delivery.We are using more responsible materials in our garments and packaging,and are engaged in research to scale the use of textile-to-textile recycled polyester and water-saving process

22、es in our supply chain.We are also engaging more of our customers in circularity,by expanding our circular platforms and programs to more geographies.Our work in 2023 has laid the groundwork for further improvements in the years ahead.Since then,we have already made progress establishing our ESG ext

23、ernal advisory board,expanding our SHEIN X independent designer program,and announcing a significant Circularity Fund that will accelerate our sustainability progress while supporting other innovative start-ups in the UK and Europe ecosystems.While we are still in the early stages of our journey,we

24、have a strong foundation and will build on the momentum from each accomplishment,no matter how modest.We are committed to getting better every day and will remain anchored by the fundamentals in our evoluSHEIN roadmap.Our goal is to build a resilient business that contributes to a more equitable and

25、 sustainable future for all.Sky Xu,CEO,SHEININTRODUCTION A Note From Our CEOAbout UsMateriality:Identifying Priority AreasOur Approach:evoluSHEINTargets and Aspirations2023 ESG HighlightsPEOPLE PLANETPROCESSGOVERNANCE ANNEX32023 SUSTAINABILITY AND SOCIAL IMPACT REPORT Just over a decade ago,SHEIN wa

26、s launched with the mission to make the beauty of fashion accessible to all.SHEIN has since established a truly global presence,serving customers in more than 150 countries from key centers of operation including Brazil,China,Ireland,Singapore and the USA.SHEIN is all about offering the products peo

27、ple want at more affordable prices.Our product offerings are ever evolving to meet the diverse needs and preferences of our customers,as we aim for every customer who visits our platform to feel seen,included and valued by finding products that express their individuality.We have a full range of pro

28、ducts under SHEIN and our sub-brands1(collectively,“SHEIN-branded”products),covering womens,mens and childrens apparel,footwear,cosmetics and home productcategories.With the launch of our integrated marketplace across select markets in 2023,we are,for the first time,also enabling third-party sellers

29、 to list items on our site,supporting them in reaching customers globally.16,000 employees worldwide24,600SHEIN X designers and artists empowered20offices globallyApproximately5,800contract manufacturers31 Refers to sub-brands that SHEIN directly controls.We also license some brands owned by us to e

30、xternal parties and have limited control over the usage of these brands.2 Refers to full-time employees across all countries who signed an employment contract directly with SHEIN.3 DefinedasTier1suppliersoffinishedSHEIN-brandedproducts holding direct procurement contracts with SHEIN entities.languag

31、es available on the SHEIN app and website20markets served150Approximately49%of employees are under 30 years oldApproximately55%of employees and 40%of senior management are womenAbout UsINTRODUCTION A Note From Our CEOAbout UsMateriality:Identifying Priority AreasOur Approach:evoluSHEINTargets and As

32、pirations2023 ESG HighlightsPEOPLE PLANETPROCESSGOVERNANCE ANNEX42023 SUSTAINABILITY AND SOCIAL IMPACT REPORTOn-Demand Business ModelWe analyze demand signals from the way users engage with our app or website,and use these insights to make the products we know our customers want,when they want them.

33、We continuously monitor and track the gap between existing stock and projected customers needs to understand where and when we need to procure additional units.This digitalized process ensures that we obtain the appropriate number and types of products from our suppliers based on our customers order

34、s.By adopting an on-demand business model,we strive to offer diverse products at accessible prices,while also seeking to reduce inventory waste left over from unsold products in SHEINs warehouses.For more details on our business model,please visit .Elevating Customer Experience,Empowering Businesses

35、In May 2023,we announced the launch of our global integrated marketplace,hosting local and international third-party sellers on our site alongside SHEIN brands.This new marketplace is set to enhance the customer experience,providing access to an increased variety of products and improved logistics,w

36、ith shorter delivery times and lower costs.Our integrated platform also empowers small and independent businesses to grow,connecting them with our extensive global customer base and equipping them with the tools to succeed.Sellers can leverage SHEINs social media and marketing expertise,gain access

37、to real-time market insights and utilize SHEINs global logistics and distribution ecosystem for order fulfillment.They can also participate in our AcceleraSHEIN seller-empowerment program,which offers weekly training sessions and workshops conducted by professional consultants and unlocks incentives

38、 like product showcases and traffic boosts.INTRODUCTION A Note From Our CEOAbout UsMateriality:Identifying Priority AreasOur Approach:evoluSHEINTargets and Aspirations2023 ESG HighlightsPEOPLE PLANETPROCESSGOVERNANCE ANNEX52023 SUSTAINABILITY AND SOCIAL IMPACT REPORTA materiality assessment serves a

39、s a strategic compass,identifying areas of risk and opportunity and guiding companies through the most appropriate strategy for their organization.SHEINs approach to sustainability and social impact is guided by our ongoing efforts to understand and address specific ESG issues that impact our organi

40、zation and the key stakeholders in our ecosystem.We first conducted a double materiality assessment in 2022 with BSR,which informed our annual reporting for the year and the development of our evoluSHEIN roadmap.During 2023,we leveraged Datamaran,a cloud-based software analytics platform,to undergo

41、an updated materiality assessment process that leveraged machine learning to analyze material issue trends in the ESG reports of similar companies.We also conducted a survey involving SHEINs senior leadership,company operational teams and external ESG groups including business partners and civil soc

42、iety representatives,and incorporated these stakeholders views on key ESG-related issues with impact to the company into our assessment.The findings from the 2023 materiality assessment,together with the strategic pillars and key priorities in our evoluSHEIN roadmap,have guided SHEINs social and sus

43、tainability work in 2023,and informed our disclosures in this annual report.SHEIN will continue to update and refine our materiality assessment process in the coming years to better align our social and sustainability goals to emerging trends and ensure that our efforts are focused on our most signi

44、ficant areas of material impact.Materiality:Identifying Priority AreasIMPACTONTHEBUSINESSIMPACTONSTAKEHOLDERSLOW PRIORITYLOW PRIORITYHIGH PRIORITYHIGH PRIORITYPhysical&sociopolitical risksSelling practices&product labelingAccess&affordabilityCommunity relationsResponsible consumption&productionManag

45、ement of local impactsEmployee diversity&inclusionEmployee health&safetyNatural capitalAir emissionsEcological impactsEnergy managementGHG emissionsWaste&hazardous materials managementTransition to renewables&alternative energies Water&wastewater managementSourcing efficiency&managementTransparencyA

46、nti-competitive behaviorBusiness model resilienceInnovation&technologyGovernance structures&mechanismsEthical corporate behaviorHuman rightsLabor practicesCustomer practicesProduct&service safety&qualityCustomer privacy&data securityManagement of the legal®ulatory environmentClimate change risks&

47、managementSOCIALKEYENVIRONMENTALGOVERNANCEKEEP UNDER OBSERVATIONCONTINUE/EXPAND INTERNAL EFFORTSCOMMUNICATE INTERNALLYDEVELOP STRATEGY&COMMUNICATE EXTERNALLYProduct design&lifecycle managementGraphic from DatamaranINTRODUCTION A Note From Our CEOAbout UsMateriality:Identifying Priority AreasOur Appr

48、oach:evoluSHEINTargets and Aspirations2023 ESG HighlightsPEOPLE PLANETPROCESSGOVERNANCE ANNEX62023 SUSTAINABILITY AND SOCIAL IMPACT REPORTAccelerating the Evolution Towards a Desirable Future Accessible to All Our mission is clear to bring inclusive and affordable fashion to everyone,regardless of c

49、ulture,gender,age,body type,ability or economic status.We believe our three-pillar ESG strategy,the evoluSHEIN roadmap,will be critical in getting us there while also guiding us towards a more desirable and sustainable future.Our evoluSHEIN roadmap represents a comprehensive strategy for delivering

50、positive impact across key social,environmental and governance issues,and making continual improvements across our value chain.The roadmap is designed to address the critical challenges facing the wider fashion industry,as well as ESG areas that present the most material risks and opportunities for

51、SHEIN and stakeholders within our ecosystem.Building on three strategic pillars:Equitable Empowerment(People),Collective Resilience(Planet)and Waste-Less Innovation(Process),our evoluSHEIN strategy anchors our commitment to being a responsible corporate citizen,improving lives in the communities we

52、reach and protecting the environment we all share.Our Approach:evoluSHEINFOR ALLDECARBONIZE OURSUPPLY CHAINENABLE SELF-EXPRESSIONPROVIDE ACCESSTO TALENTIMPROVE LIVESIN COMMUNITIESINTRODUCTION A Note From Our CEOAbout UsMateriality:Identifying Priority AreasOur Approach:evoluSHEINTargets and Aspirati

53、ons2023 ESG HighlightsPEOPLE PLANETPROCESSGOVERNANCE ANNEX72023 SUSTAINABILITY AND SOCIAL IMPACT REPORTOUR PEOPLE PILLAR:EQUITABLE EMPOWERMENTOUR PLANET PILLAR:COLLECTIVE RESILIENCEOUR PROCESS PILLAR:WASTE-LESS INNOVATIONTargets and AspirationsPeople are at the center of everything we do.Wherever ou

54、r business has an impact,we strive to empower our customers,employees,brand partners,suppliers and members of the larger global community to achieve their full potential.We have set aspirations that empower these stakeholders to hold us accountable to be a:Preferred brand for customer self-expressio

55、n.Top-ranked employer for employee talent.Preferred brand partner for creative talent collaborations.Preferred responsible purchasing partner for suppliers.Responsible corporate citizen that improves lives in the communities we reach.Through collective action,we strive to decarbonize our supply chai

56、n,source responsible materials and protect biodiversity and animal welfare.Our operational teams and supply chain partners are working to reduce the environmental footprint of our products and facilities,guided by the following goals:Reduce our greenhouse gas(GHG)emissions(Scope 1,2 and3)by 25%by 20

57、30.Reach net-zero emissions by no later than 2050,in line with the Science Based Targets initiative(SBTi)Net-Zero Standard.Use electricity only from renewable sources for operations directly managed by SHEIN by 2030.Source 100%forest-safe viscose and paper-based packaging for SHEIN-branded products

58、by 2025.Ensure all packaging sourced for SHEIN-branded products contains 50%preferred materials4 by 2030.Transition 31%of the polyester used for SHEIN-branded products to recycled polyester by 2030.Source 50%of SHEIN-branded products through our evoluSHEIN by Design initiative by 2030.We are committ

59、ed to continually improving our processes to reduce waste and enable a circular future.This means designing systems that help close the loop on todays linear processes and using our rapid test-and-scale methodology to drive sustainable innovation in our own operations and in the industry.We have set

60、 goals to drive these alternative businessmodels:Engage the majority of SHEINs customers in circularity by 2025.Become a global leader in rescuing deadstock materials from becoming waste.Establish a fully circular textile supply chain by 2050 in alignment with our World Circular Textiles Day commitm

61、ent.4 Preferred materials used for packaging are recycled polyethylene and paper packaging not sourced from Ancient and Endangered Forests(for more information on Ancient and Endangered Forests,please refer to Canopys Forest Mapper).INTRODUCTION A Note From Our CEOAbout UsMateriality:Identifying Pri

62、ority AreasOur Approach:evoluSHEINTargets and Aspirations2023 ESG HighlightsPEOPLE PLANETPROCESSGOVERNANCE ANNEX82023 SUSTAINABILITY AND SOCIAL IMPACT REPORTPEOPLEPLANETPROCESS51.6MWof solar capacity installed or being installed across 41 supplier sites,and 43.6MW installed across seven SHEIN wareho

63、uses.438,000metric tons of emissions potentially saved through localization strategy and green logistics projects.Up to US$155Mcommitted over five years towards the“Equitable Empowerment”pillar of our evoluSHEIN roadmap.US$50 million for emerging designers under our SHEIN X Designer Incubator Progra

64、m.US$70 million for our suppliers through the Supplier Community Empowerment Program(SCEP).US$35 million for social impact activities supporting women,young people and the underprivileged.10supplier facilities equipped with childcare centers to support workers and their families.165worker families s

65、upported with financial assistance through our SHEIN Spotlight Program.11%of our fiber portfolio5 for SHEIN-branded products consisted of recycled polyester and forest-safe viscose.16.2%of packaging used for SHEIN-branded products contained at least 50%GRS-certified recycled PE plastic or was made o

66、f forest-safe paper.Nearly46,000 metric tons of emissions reduced through energy-efficiency projects at 28 supplier sites,with over 217 water-and energy-efficiency improvement measures.170,000training hours across approximately 3,500 training sessions to support professional development of SHEIN emp

67、loyees.2023 ESG Highlights14of our facilities are undergoing industrial waste recycling projects.Two facilities also underwent Zero Waste to Landfill certification in 2023.4.2Munique users registered on SHEIN Exchange,with over 115,000 pre-loved items listed.Nearly 20,000meters of deadstock fabric r

68、escued through partnership with Queen of Raw.290,000m3 of water and 32,600 MWh of electricity estimated to have been saved through digital thermal transfer printing,amounting to over 60,000 metric tons of emissions reduced.101,000kg of textile-to-textile recycled polyester fabric utilized in SHEIN-b

69、randed apparelproducts.5 ThisreferstothetextilesdesignatedbySHEINforusebycontractmanufacturers.2,000global artists and designers launched products and collections through SHEIN X Designer Incubator program in 2023.3,990on-site SHEIN Responsible Sourcing audits conducted on China-based suppliers in 2

70、023.SRS audits conducted on 2,796 contract manufacturers that represent approximately 95%of SHEIN-branded products by procurement value in 2023.INTRODUCTION A Note From Our CEOAbout UsMateriality:Identifying Priority AreasOur Approach:evoluSHEINTargets and Aspirations2023 ESG HighlightsPEOPLE PLANET

71、PROCESSGOVERNANCE ANNEX92023 SUSTAINABILITY AND SOCIAL IMPACT REPORTOUR THREE STRATEGIC PRIORITIES:Improve Lives in Communities Provide Access to Talent Enable Self-Expression for All EQUITABLE EMPOWERMENTPROCESSPEOPLEPLANETEquitable Empowerment underlies our commitment to improve the lives of our e

72、cosystem partners;it is a catalyst for building more sustainable,inclusive and resilient communities and societies.INTRODUCTION PEOPLE:EQUITABLE EMPOWERMENTEnable Self-Expression for All Provide Access to TalentImprove Lives in CommunitiesPLANETPROCESSGOVERNANCE ANNEX102023 SUSTAINABILITY AND SOCIAL

73、 IMPACT REPORTWe recognize true progress can only be achieved when all individuals,regardless of their backgrounds,have proper access to opportunities and resources.In striving for equitable empowerment,we are committing to serve every customer,regardless of their socioeconomic status,geographic loc

74、ation,body shape or style preference.We also acknowledge that each person working at SHEIN holds potential and we seek to provide a safe and stimulating environment for them to grow professionally.Equitable empowerment also means creating conditions for our ecosystem partners to thrive.We believe th

75、at every individual has the right to economic advancement,and we work to provide a global platform for our brand and creative partners to access economic opportunities while being treated fairly and respectfully.This commitment makes us accountable and drives our work towards a more inclusive global

76、 community.Our ApproachOur three strategic priorities for driving impact are to:Enable Self-Expression for All Provide Access to Talent Improve Lives in Communities Aligning our actions with these three areas enables us to contribute to a more equitable industry,helping to uplift people and communit

77、ies across our SHEIN ecosystem.By opening access and creating diverse opportunities,we harness a broad spectrum of talents and perspectives to drive our innovation and growth while maintaining integrity,inclusivity and respect for all.Why It Matters112023 SUSTAINABILITY AND SOCIAL IMPACT REPORTINTRO

78、DUCTION PEOPLE:EQUITABLE EMPOWERMENTEnable Self-Expression for All Provide Access to TalentImprove Lives in CommunitiesPLANETPROCESSGOVERNANCE ANNEXOur mission is to ensure customers everywhere have access to affordable means of self-expression,regardless of culture,gender,age,body type,ability or e

79、conomic status.Putting Customers First:Our Commitment to Inclusivity At SHEIN,we attract and nurture a customer community that is passionate about self-expression.With an agile,on-demand business model,we help customers curate a diverse,vibrant wardrobe that lets them wear what they want,when they w

80、ant it.With our products and services available online in more than 150 countries globally and a mobile app and website available in 20 languages we are well placed to meet our customers wheretheyare.For All BudgetsBy leveraging our agile supply chain to keep SHEINs unsold inventory rate low,and the

81、 cost advantages of being an e-commerce retailer without brick-and-mortar stores,we have been able to offer fashion and lifestyle products to consumers at affordable prices.A Style for EveryoneWe want every customer who visits our platform to feel seen,included and valued.Its the driving force behin

82、d our commitment to ensure the SHEIN shopping experience respects and represents customers in all their diverse dimensions.We apply a customer-centric,variety-over-volume approach,leveraging real-time insights and customer engagement to identify trends and offer styles that suit a range of tastes.Cl

83、othing for Every Body TypeWe believe everyone should have access to clothing that makes them feel good.In 2023,we made various updates to our product lines based on customer review feedback to advance inclusivity.For example,we increased localized size displays on our website,establishing SHEIN size

84、s for Brazil,Mexico,Spain,France,Japan and Singapore to help more of our global customers find the right size for them.Based on after-sales customer feedback,we continue to adapt styles for womens,mens and childrens clothing.This includes adjusting mannequin body shapes for mens clothing,maternity w

85、ear and underwear,so more customers can better relate to the body shapes represented.DESIGNING FOR INCLUSIVITY6 Includes Curve,Maternity,Extended Sizes,SHEIN Tall,SHEINFitandManfinityUnisex.Alternative fit collections6 Traditional fit collections22%78%2023Enable Self-Expression for AllUsing mannequi

86、ns that represent varying body types and sizes helps SHEINs designers create size-inclusive designs that fit well.This is especially important for form-fitting styles like clothes from our GLOWMODE activewear brand.122023 SUSTAINABILITY AND SOCIAL IMPACT REPORTINTRODUCTION PEOPLE:EQUITABLE EMPOWERME

87、NTEnable Self-Expression for All Provide Access to TalentImprove Lives in CommunitiesPLANETPROCESSGOVERNANCE ANNEXOver the last four years,SHEIN has proudly partnered with Dress for Success Greater London,a London-based affiliate of Dress for Success Worldwide.Dress for Success Greater London is ded

88、icated to empowering women to achieve financial independence by providing professional clothing and styling,interview coaching and ongoing support once they rejoin the workplace.Securing employment starts with making a great first impression.Thats why,through this collaboration,we are working to mak

89、e a real difference to the lives of women from positions of disadvantage,equipping them with the perfect outfits and tools needed to feel confident in interviews.Through the collaboration with SHEIN,Dress for Success Greater London has been able to carry out inspiring work offering specialized clien

90、t appointments,career-development days and pop-up shops all tailored towards boosting womens confidence as they search for a job.Eighty percent of Dress for Success Greater Londons clients go on to secure employment.Since the start of the partnership,SHEIN has donated over 110,000 to Dress for Succe

91、ss,helping over 400 women.In 2023,in addition to a donation of 45,000,we also worked closely with Dress for Success to launch a bespoke curve collection to enable Dress for Success to provide professional clothing for clients with a variety of body types and sizes.Now even more women can access an a

92、ffordable range of professional clothes,helping to boost their opportunities and achieve their career goals.In 2023,SHEIN collaborated with Dress for Success Greater London on a dedicated capsule curve collection specially crafted for women ranging from UK sizes 16 to 24.SHEIN designed a new curve c

93、ollection and capsule wardrobe,donating 1,000 pieces to style our curvier clients and raising theirself-confidence.Our analysis of our client numbers and trends showed that an increasing number of women are within the curvier range,and the partnership with SHEIN responded to this by providing an imp

94、actful community investment to ourwomenaspartofourempowermentprogram.Juanita Ingram,Founder and Chair of the Board of Trustees,Dress for Success Greater LondonEMPOWERING WOMEN THROUGH FASHION132023 SUSTAINABILITY AND SOCIAL IMPACT REPORTINTRODUCTION PEOPLE:EQUITABLE EMPOWERMENTEnable Self-Expression

95、 for All Provide Access to TalentImprove Lives in CommunitiesPLANETPROCESSGOVERNANCE ANNEXWe offer development and career-growth opportunities to our employees around the world,respecting all cultures,abilities and lifestyles.To empower our people to reach their full potential,we need to equip them

96、with the necessary resources and training to advance in their careers while nurturing a safe working environment.We also support our people in defining and achieving personal career goals.Uncovering Top Global Talent SHEIN has a diverse,young and talented pool of over 16,000 employees globally.We be

97、lieve in the limitless potential of every employee and recently updated our employer value proposition to reflect this,adopting“Live Your Possible”as our slogan.We are committed to creating an environment in which employees can boldly realize their creative ideas,continually explore new career oppor

98、tunities and embrace challenges.These comprised 170K training hoursOur multichannel recruitment strategy,coupled with a diverse range of university collaborations and graduate and internship programs,allows us to cultivate a robust talent pipeline and nurture the next generation of global business l

99、eaders and professionals.We hired new employees from 17 nationalities in 2023,and at least 30 different nationalities were represented within our global workforce for the year.7 We also provide opportunities for young talent to thrive across various levels of the organization employees under 30 make

100、 up 49%of our global workforce8 and comprise 5%of senior management,17%of middle management9 and 52%of other employee levels.Clear Pathways to GrowthAt SHEIN,continuous improvement is a core value.Through both offline training sessions and our online learning management system,the SHEIN Academy,we p

101、rovide flexible learning resources to bolster our talent development and business empowerment efforts.In 2023,SHEIN invested approximately US$2.36 million in training and upskilling initiatives for our employees.We organized approximately 3,500 training sessions covering nearly 16,000 employees acro

102、ss our global offices,with a cumulative total of 170,073 training hours and an average of 11 training hours per person.SHEINs holistic performance system,utilizing objective-setting methodologies for goal alignment twice a year,drives engagement and recognizes exceptional performance with promotions

103、 and rewards.Our compensation plan,ensuring fair global salaries and accompanied by performance-based bonuses,is reviewed annually to maintain competitiveness and support employee wellbeing.This compensation is supported by an extensive leave policy,accommodating various life situations,including an

104、nual,sick,parental care,bereavement,unpaid and special leaves.Career growth at SHEIN includes biannual promotions for grade progression and career advancement to maintain fairness and objectivity.In 2023,over 5,100 of our employees across the globe received promotions and corresponding salary adjust

105、ments.Provide Access to Talent7 It is not mandatory for SHEIN employees to provide their nationality information to the company.8 Analysisondiversitymetrics(e.g.,ageandgender)includesonlyemployeesfromBrazil,China,Ireland,SingaporeandtheUSA,whichareourkeycentersofoperation.Employeesfromthesefivecount

106、riesaccountfor93%ofourtotalemployeenumbersglobally.9 Senior management refers to department heads and above,while middle management comprises other team leaders within departments with supervisory responsibilities.28,892hours for newcomer orientation and training17,147hours for general competencies

107、workshops(e.g.,communications,problem-solving,presentation skills)41,439hours for leadership development courses82,595hours for technical skills upgrading(e.g.,marketing,data analysis,customer service,warehouse management,supplier management)142023 SUSTAINABILITY AND SOCIAL IMPACT REPORTINTRODUCTION

108、 PEOPLE:EQUITABLE EMPOWERMENTEnable Self-Expression for All Provide Access to TalentImprove Lives in CommunitiesPLANETPROCESSGOVERNANCE ANNEXNurturing Feelings of Belonging We are dedicated to fostering an inclusive work environment where all team members feel encouraged to thrive.Employee Engagemen

109、tOur in-house-developed platform LINK serves as an employee engagement tool,gathering real-time feedback from our global workforce.Through this,employees can answer a daily voluntary question about their experience with SHEIN.The questions cover dimensions such as working relationships with peers an

110、d supervisors,performance and development,corporate culture,working environment and overall job satisfaction.The responses,which are aggregated at team level to preserve respondents anonymity and ensure a safe environment for sharing of feedback,are then provided to managers,along with actionable in

111、sights for managers to enhance their employees experiences.We piloted LINK across several countries in 2023,and gathered a total of over 920,000 survey responses.Based on the results collated through our LINK Dashboard,SHEIN conducted over 40 workshops for managers across our global offices,with act

112、ion planning to address key areas of feedback such as performance management,leadership,communication and collaboration,and job fit.Fostering a Culture of Respect SHEINs inclusive talent management system strives to facilitate equal access to learning,development and advancement opportunities,regard

113、less of nationality,race,religion,ethnicity,age,gender,gender identity and expression,sexual orientation,family background,marital status or other personal characteristics.We believe everyone should feel safe in their workplace,and this is embedded in our Global Code of Ethics(CoE),which prohibits a

114、ny form of harassment or discrimination.We deliver comprehensive employee training on related company policies and maintain a global communications channel for reporting concerns and complaints,with all reports directed to SHEINs human resources and internal audit departments for review and follow-u

115、p.Gender EqualitySince we were founded back in 2012,SHEIN has been an active advocate for women in leadership.In fact,two of our four founders are women,and today,women comprise approximately 55%of our workforce,nearly 40%of senior management and approximately 56%of middle management.At SHEIN,we tak

116、e several measures to achieve pay equity,including committing to transparent pay practices,conducting regular pay analysis against global market standards and making job listings gender-neutral.We conduct regular pay reviews of employee compensation,including to ensure that decisions on pay are not

117、biased based on gender or other personal characteristics.Disability InclusionSHEIN strives to support employees with disabilities and has implemented various measures to ensure an inclusive environment,starting with our corporate offices in the USA,Brazil and Canada.These include creating physically

118、 accessible workplaces,providing accessible parking,offering flexible work arrangements,SHEINs inclusive work environments encourage engagement among all team members and create opportunities for them to thrive.developing individual accommodation plans,fostering open communication,restructuring job

119、roles and offering mental health support.These initiatives aim to accommodate diverse needs and encourage all employees to thrive in the workplace.152023 SUSTAINABILITY AND SOCIAL IMPACT REPORTINTRODUCTION PEOPLE:EQUITABLE EMPOWERMENTEnable Self-Expression for All Provide Access to TalentImprove Liv

120、es in CommunitiesPLANETPROCESSGOVERNANCE ANNEXA Culture of Shared Safety ResponsibilityKeeping our people safe and healthy is paramount and is a principle we embed throughout our operations.We offer annual health checkups,business insurance,various employee resource groups and a flexible,collaborati

121、ve work environment to enhance employee wellbeing and experience.Our Workplace Health and Safety Statement guides all work-related health,safety and environment(HSE)measures across every SHEIN warehouse,distribution and supplier manufacturing facility,and corporate office.The statement details our H

122、SE approach and responsibilities to stakeholders,in line with our CoE.We adopt a range of risk management measures and interventions to protect workplace health and safety at SHEIN-operated facilities.These include monthly cross-departmental safety inspections,regular safety meetings and reporting c

123、hannels for employees to flag potential safety hazards.In 2023,across all our warehouses in China,10 we also enhanced several initiatives targeted at improving fire safety:Fire emergency plans:Reviewed evacuation plans to achieve evacuation of all workers within three minutes;conducted evacuation dr

124、ills at every warehouse.Fire alerts:Upgraded personal digital assistant(PDA)terminals with added functionality to push fire emergency notifications to all workers devices and facilitate quicker evacuation response.Volunteer fire brigades:Established volunteer firefighting brigades to cover all wareh

125、ouses,with each brigade equipped with its own fire station as a base for operations(e.g.,training,rescue operations).Risk-based monitoring:Identified key areas of vulnerability with the highest risk of fire safety accidents,and institutionalized more frequent inspections of these areas by the wareho

126、use safety managers.In 2023,we also worked with our third-party verification agencies,TV Rheinland and Openview,to conduct comprehensive SHEIN Responsible Sourcing(SRS)audits of 16 SHEIN-operated facilities in China under our SRS program including 15 warehouses and the Center of Innovation for Garme

127、nt Manufacturing(CIGM)in Guangzhou.All 16 performed well,receiving a grade of either A or B,and we continue to remain diligent in upholding strong social and environmental standards in our facilities.The CIGM is certified with the ISO 45001 health and safety management standard and ISO 14001 environ

128、mental management systems standard by SGS.To find out more about the SRS program and how we conduct SRS audits,see page 19.SHEINs range of risk management measures and interventions create conducive work environments and promote a culture of workplace health and safety at SHEIN-operated facilities g

129、lobally.10 SHEIN operated 21 warehouses in China in 2023,all located in Guangdong province.162023 SUSTAINABILITY AND SOCIAL IMPACT REPORTINTRODUCTION PEOPLE:EQUITABLE EMPOWERMENTEnable Self-Expression for All Provide Access to TalentImprove Lives in CommunitiesPLANETPROCESSGOVERNANCE ANNEXRespecting

130、 human rights is notonly critical for our long-term business success;its a fundamental responsibility.Across all our operations,we are committed to treating individuals fairly and ethically.Our companys global operations impact many lives every day.We have a responsibility to leverage that scale to

131、uphold and advance human rights through responsible business practices.This is enabled by key policies for SHEIN employees and our supply chain,including our CoE,Supplier Code of Conduct(SCoC),SHEIN Supplier Responsibility Standards and SHEIN Responsible Sourcing(SRS)Policy.As SHEIN and the wider fa

132、shion industry works to realize increasingly robust ethical standards,we also aim to meet the various expectations of governments,investors,civil society and customers.Our Commitment to Human Rights SHEINs approach to human rights is guided by our Human Rights Policy,developed in line with the Unite

133、d Nations Guiding Principles Reporting Framework and covering several of the issues highlighted in our materiality matrix(seepage6).By identifying and evaluating risks,we prioritize the most relevant actions so that people and communities can exercise their fundamental human rights.We recognize the

134、importance of mitigating risks to worker wellbeing through robust policies,defined grievance mechanisms and clear remediation processes,relying on third-party verification to support our efforts.To address key social challenges in the fashion industry,we work closely with suppliers on enhancing thei

135、r performance clearly communicating supply chain policies and investing in training,compliance enforcement and workplace improvement programs.Read more about how we empower our suppliers at page 23.Improve Lives in Communities172023 SUSTAINABILITY AND SOCIAL IMPACT REPORTINTRODUCTION PEOPLE:EQUITABL

136、E EMPOWERMENTEnable Self-Expression for All Provide Access to TalentImprove Lives in CommunitiesPLANETPROCESSGOVERNANCE ANNEXSupply Chain GovernanceBusinesses do not succeed alone;to achieve our vision,SHEIN works with a large network of global suppliers.11 With our scale,SHEIN is fully committed to

137、 managing our supply chain responsibly,and to supporting our suppliers in further improving working conditions in their facilities.Using industry best practices and guidance from regulators,we have developed and implemented a robust set of supply chain management policies and programs.Through these

138、mechanisms,we enforce stringent requirements on our suppliers to comply with health and safety,labor and social welfare,and environmental standards,as well as applicable laws and regulations.Supplier Code of ConductWe expect suppliers to share our commitment to human rights.SHEIN is a signatory to t

139、he UN Global Compact(UNGC)and supports the Ten Principles focused on human rights,labor,environment and anti-corruption.To work with SHEIN,all suppliers must sign and agree to abide by our SCoC.The SCoC is informed by the core conventions of the International Labour Organization(ILO)and the United N

140、ations Universal Declaration of Human Rights(UDHR)and prohibits the use of forced labor and child labor,wages and working hours abuses,and employee discrimination and harassment,among other issues.It is periodically updated to ensure continued relevance against a backdrop of changing supply chain co

141、nditions and evolving regulatory requirements.By signing the SCoC,suppliers also agree to hold their third-party labor agents or brokers and subcontractors to these samestandards.11 ThesupplychainpoliciesandprogramsdescribedwithintheSupplyChainGovernancesectionapplytoTier1andTier2suppliersofproducts

142、undertheSHEINbrandanditssub-brands.Tier1suppliers,alsoknownas“contractmanufacturers,”aresuppliersoffinishedSHEIN-brandedproductsholdingdirectprocurementcontractswithSHEINentities.Tier2suppliersinclude,withoutlimitation,suppliers of textiles,packaging and other accessories for use by contract manufac

143、turers.In 2023,we strengthened SCoC language regarding the prohibition of forced labor by specifying unacceptable labor practices such as collecting recruitment fees and requiring workers to surrender government-issued identification.We also detailed clearer restrictions on subcontracting to tighten

144、 oversight of suppliers upstream partners and mitigate risks;it is now specified in our policy that suppliers shall not subcontract,partially subcontract or assign provision of products,services,rights and obligations to a third party without prior written consent of SHEIN.We also updated our assess

145、ment checklist for supplier audits to assess our suppliers compliance with this requirement.Supplier Responsibility StandardsThe SCoC is complemented by a set of comprehensive Supplier Responsibility Standards,which we published in 2023.This document details the standards we expect from suppliers ac

146、ross our global supply chain in areas such as labor rights,health and safety,environment and ethics.These standards were developed with reference to internationally recognized standards such as the ILO conventions,UDHR,and UN Guiding Principles on Business and Human Rights.We have a range of policie

147、s in place to support workers across the supply chain and prioritize their wellbeing.For example,we have clear policies on workers freedom of movement and right to leave employment,as well as to have at least one day off every seven days,in alignment with ILO standards.To further enhance the worker

148、experience,we also have detailed disclosures on grievance mechanisms and provisions on special protection for women in the workplace.SUPPORT TRAINING AND UPSKILLINGINVEST IN FACILITIES ENHANCEMENTSPROMOTE WORKER AND COMMUNITY WELLBEINGEmpowermentEnforcementESTABLISH STRICT COMPLIANCE REQUIREMENTSENF

149、ORCE RISK-BASED SUPPLY CHAIN AUDITSVALIDATE REMEDIATION AND CORRECTIVE ACTIONSUPPLIER ENGAGEMENT182023 SUSTAINABILITY AND SOCIAL IMPACT REPORTINTRODUCTION PEOPLE:EQUITABLE EMPOWERMENTEnable Self-Expression for All Provide Access to TalentImprove Lives in CommunitiesPLANETPROCESSGOVERNANCE ANNEXSHEIN

150、 Responsible Sourcing(SRS)PolicyWe continue to enforce supplier compliance through our SRS Policy,which establishes clear definitions and penalties for violations of SHEINs SCoC.Within our SRS Policy,all new suppliers must submit to an SRS audit assessment as part of the onboarding process with SHEI

151、N.Prospective suppliers that receive the lowest SRS audit grade are notapproved to work with SHEIN.Existing suppliers are subject to full on-site SRS audits on an annual basis thereafter,depending on and prioritized based on a risk assessment that takes into account the suppliers order volume with S

152、HEIN as well as previous SRS grades.Failure to cooperate with these SRS audits will result in termination.These SRS audits are typically conducted without prior notice,ensuring that the SRS auditors assessment captures the reality of working conditions at the facility.Suppliers are assessed based on

153、 an extensive assessment checklist that evaluates their compliance with SHEINs SCoC and SRS Policy.Aswell as interviewing their workers,SRS auditors require that suppliers provide supporting documentation such as payslips and employment records.Nearly all SRS audits are conducted by third-party veri

154、fication agencies.In 2023,the agencies we worked with were Bureau Veritas,Intertek,Openview,SGS,TV Rheinland and QIMA,all of which are member firms of the Association of Professional Social Compliance Auditors(APSCA).Individuals from these firms must be APSCA certified and submit documentary proof o

155、f certification beforecarrying out SRS audits.SHEIN also has a team of in-house SRS auditors who undergo training developed by TV Rheinland and attend courses on labor topics (e.g.,anti-forced labor and anti-child labor)through the UNGC Academy and ILO Academy.Addressing SRS Audit FindingsIn all cas

156、es,suppliers receive a copy of their SRS audit report together with a set of remediation suggestions to facilitate improvements.Suppliers who perform well on SRS audits and receive an A or B grade can be considered for additional incentives;these include expanded training access and opportunities to

157、 supply for our evoluSHEIN by Design product initiative.On the other hand,suppliers discovered to have committed the most severe violations under our framework,i.e.,Immediate Termination Violations(ITVs)or Immediate Remediation Violations(IRVs),and who are consequently assigned the lowest grade of E

158、,are dealt with very seriously.Under our latest SRS Policy,first published in October 2023 and subsequently updated with refinements to our nomenclature for severe violation categories for greater clarity,12 suppliers found with ITVs face immediate termination of their business relationship with SHE

159、IN.Suppliers found with IRVs are required to remediate their practices within a strict timeline of 30 days,or likewise face termination.Those who correct their violations in line with SHEINs requirements are allowed to resume business with us,but we do not tolerate repeat offences,and suppliers that

160、 are rated E for two consecutive SRS audits will also be terminated.Representative from QIMA conducting SRS audit of supplier facility in Dongguan City,Guangdong province.12 We renamed the most severe violation categories in our frameworkto“ImmediateTerminationViolations”(ITVs)and“ImmediateRemediati

161、onViolations”(IRVs).Withthis renaming,we aim to provide greater clarity to both our suppliers and external stakeholders on the penalties and actions taken by SHEIN for any violations within the twocategories.Thedefinitions,criteriaandpenaltiesforviolations that had been established remain the same.1

162、92023 SUSTAINABILITY AND SOCIAL IMPACT REPORTINTRODUCTION PEOPLE:EQUITABLE EMPOWERMENTEnable Self-Expression for All Provide Access to TalentImprove Lives in CommunitiesPLANETPROCESSGOVERNANCE ANNEXBalancing Remediation and PenalizationSince October 2023,we have applied a firmer stance against sever

163、e violations identified through SRS audits.Immediate Termination Violations(ITVs)ITVs are the most severe violations in contravention of SHEINs compliance requirements,including ethics and transparency issues(e.g.,bribery and refusal to cooperate with SRS audits),forced labor and child labor.For suc

164、h violations,our approach prior to October 2023 was to immediately suspend orders from the supplier and give them 30 days for remediation,failing which SHEIN would terminate our business relationship with them.Now,however,we will immediately proceed to terminate the business relationship with the su

165、pplier upon discovering the violation.Immediate Remediation Violations(IRVs)IRVs are serious violations that warrant urgent rectification in order for SHEIN to continue our business relationship with the suppliers.These include other labor violations(e.g.,failure to pay minimum wage),workplace healt

166、h and safety issues,and serious environmental pollution.For such violations,our previous approach was to issue a warning letter if the violation was not resolved within 30 days,suspend orders if it was not resolved within 60 days and only terminate the business relationship if the supplier failed to

167、 take action within 90 days.Now,however,suppliers only have 30 days for remediation,failing which they will be terminated.We previously focused on educating our suppliers and giving them an opportunity for remediation before termination.As suppliers are generally not exclusively contracted by SHEIN,

168、this benefits the wider fashion ecosystem by instilling standards and best practices across the supply chain.It also helps to protect workers and their livelihoods.As our supply chain and suppliers have matured over time,we believe that we should now take a stricter stance on severe violations.Never

169、theless,even for suppliers that SHEIN has decided to terminate,we send them action plans with guidance on how to remediate their identified ITVs/IRVs,so as to educate and empower the suppliers to take steps to improve conditions in their facilities.We will continue to carefully balance remediation a

170、nd penalization and ensure our supply chain governance approach is calibrated to protect workers and their rights.By attending the training,I have not only improved my SRS rating,but have also learned technical skills to better manage my factory and achieve sustainablegrowth.Mr.Wang,a supplier who a

171、ttended the SHEIN Supplier SRS Management Specialist Certification Workshop in August 2023The remediation process for such severe violations is managed through a“Corrective Action Plan”module on our digital supplier management system,through which we record and monitor suppliers implementation of re

172、quired rectification measures.Overseeing the SRS SHEINs ESG operations team provides monthly updates on SRS audit findings to key members of our executive leadership,including our Executive Chairman and CEO.This ensures consistent high-level oversight over the implementation of our compliance progra

173、ms.Capacity BuildingSHEIN makes significant efforts to strengthen awareness of our SRS Policy among suppliers and equip them with tools and knowledge to act responsibly in compliance with our requirements.In 2023,we organized 133 group workshops and 276 one-on-one training sessions,with participant

174、numbers totaling over 5,200.13 Through these interactive sessions,suppliers sharpen their understanding of SHEINs supply chain governance policies,learn best practices for compliance with local labor laws and gain a better understanding of compliance risks in their own operations.They also deepen th

175、eir knowledge on specific topics such as wages and working hours,fire safety and occupational health and safety.While the SRS program is managed by our ESG team,we also train employees from other departments,such as procurement,on key supply chain actions to inspire a culture of shared responsibilit

176、y.We conducted a total of 20 such training sessions for SHEIN employees in 2023,with 674 participants in total.1413 Some suppliers attended multiple workshops and training sessions.14 Some employees attended multiple training sessions.202023 SUSTAINABILITY AND SOCIAL IMPACT REPORTINTRODUCTION PEOPLE

177、:EQUITABLE EMPOWERMENTEnable Self-Expression for All Provide Access to TalentImprove Lives in CommunitiesPLANETPROCESSGOVERNANCE ANNEX2023 SRS Audit InsightsWe continue to expand our supplier audit coverage in line with a risk-based sampling approach that prioritizes SHEINs largest suppliers by proc

178、urement value.We also conduct additional SRS audits on selected subcontractors,to verify that our contract manufacturers are enforcing our compliance requirements through their supply chain.In 2023,a total of 3,990 on-site SRS audits were conducted on suppliers and subcontractors based in China.15 9

179、2%of these SRS audits were performed by third-party verification agencies.3,365 SRS audits were conducted on 2,796 contract manufacturers that represent approximately 95%of SHEIN-branded products by procurement value in 2023.16 The other 625 SRS audits were of textile suppliers,packaging suppliers a

180、nd subcontractors of our finished goodssuppliers.We are pleased to report better performance on SRS audits overall in 2023.Based on annual SRS audits conducted,the proportion of SRS audits where suppliers or subcontractors received an A or B grade increased from 18%in 2022 to 29%in 2023,while the pr

181、oportion of audits where suppliers or subcontractors received a D or E grade decreased from 35%in 2022 to 20%in 2023.A total of five suppliers were terminated by SHEIN in 2023 for contravening our SRS Policy.Three were terminated for failing to remediate violative practices identified through SRS au

182、dits,one was terminated for refusing to undergo SRS audits and one was terminated for receiving two consecutive E grades.The table to the right discloses further details on the ITVs and IRVs that were identified through our annual SRS audits of existing suppliers and subcontractors in China.17 All I

183、TVs and IRVs identified in 2023 have either been remediated within required timelines or resulted in the termination of SHEINs business relationship with the supplier,in line with the prevailing SRS Policy at the time.As we diversify our manufacturing supply chains to Brazil and Trkiye,we are progre

184、ssively implementing SRS audits in those countries as well.In Brazil,we contracted a third-party agency to conduct a total of 218 SRS audits from October to December 2023.We will continue to expand our SRS audit and remediation programs in Brazil and Trkiye in 2024.2023 ANNUAL SRS AUDIT FINDINGS FIG

185、URES REPRESENT THE PROPORTION OF ANNUAL SRS AUDITS WHERE EACH VIOLATION TYPE WAS FOUND20222023IRV categories(%of total annual SRS audits where this IRV was identified)Co-Located Living/Working Spaces:Dormitories are located in the same building as the production workplace or warehouse4.5 0.4Wage Vio

186、lations:Supplier is paying employees under the local minimum wage,or delayed payment of wages to employees2.3 0.5Emergency Exit Violations:Presence of locked emergency exits in the workplace,warehouse or dormitoryInsufficient emergency exits in the production workshop,warehouse or dormitory2.14.20.3

187、0.2Workplace Safety Hazards:Falling risk,signs of structural damage to the building or other risks to worker safetyCharging electric vehicles or their batteries inside the production workshop,warehouse or dormitoryEmployees smoking or using open flames in production workshop or warehouseDirect or fl

188、ue-type gas water heaters are used in employee dormitories 0.7 0.52.20.4 0.1 0.10.10.1Environmental Hazards:Illegal disposal of hazardous waste,discharging of untreated wastewater or discharging of waste gas 0.1 0.0ITV categories(%of total annual SRS audits where this ITV was identified)Age Violatio

189、n:The presence of workers or persons in the workplace under the statutory working age 0.3 0.1Involuntary Labor:All forms of coercion(e.g.,requirement to pay deposits to start work,confiscation of workers documents)0.1 0.0Attempted Bribery:Offering bribes to SRS evaluators 0.1 0.0Supplier refuses SRS

190、 audit0.24,6002,00020Partnership With Fashion Institute of Design&Merchandising(FIDM)In 2023,we started SHEIN X Project Launchpad in partnership with FIDM in Los Angeles,setting up a new scholarship program and curriculum for FIDM students giving them the opportunity to create a five-to 10-piece col

191、lection to be sold on our platform.Through the 20-week curriculum,these students gained insights into the production and business side of the fashion industry and got a head start on their careers,without some of the barriers aspiring designers typically face.Like any SHEIN X designer,students also

192、earned commission and kept ownership of theircreations.First SHEIN X Design Summit in April 2023,with over 250 SHEIN X designers invited to network and engage with industry leadersFirst SHEIN X collections under evoluSHEIN by Design in September 2023SHEIN X designers from Brazil,Ireland,Japan,Mexico

193、,Poland,South Africa,the UK and the USA at a showcase of their creations during the SHEIN Global Reception in Singapore in September 2023.262023 SUSTAINABILITY AND SOCIAL IMPACT REPORTINTRODUCTION PEOPLE:EQUITABLE EMPOWERMENTEnable Self-Expression for All Provide Access to TalentImprove Lives in Com

194、munitiesPLANETPROCESSGOVERNANCE ANNEXA Chicago native,Kaori Semaj is the designer behind SHEIN X GAUTII.Since he joined the SHEIN X program in 2021,he has launched four collections,with his latest dropping in October 2023.Kaori,who aims to bring concepts such as opulence and grandeur to functional e

195、veryday silhouettes,draws influence from nature,art,various cultures and the performative nature of fashion.One of his favorite parts about working with SHEIN is the ability to offer his designs at a more affordable price point.“My interest in the SHEIN X program stemmed from my belief in what colla

196、boration can offer,”said Kaori.“I looked at the collaboration as an opportunity to gain experience working with a large brand,and an opportunity to see how a successful brand balances creativity and practical business concepts.”French designer Mathilde Lhomme emerged as one of 10 winners of a SHEIN

197、X competition in 2021.Three years later,shes still part of the SHEIN family.After having struggled to break into the fashion industry as an independent designer,and losing her job during the COVID-19 pandemic,Mathilde found SHEIN X to be an invaluable platform to inject new momentum into her career.

198、It empowered her to bring her creative visions to life and launch her own collections,reigniting her passion for fashion.In 2022,Mathilde was given the opportunity to showcase her designs at the SHEIN X Runway Show organized during Paris Fashion Week.A year later,she was invited to visit SHEINs head

199、quarters in Singapore,meeting and learning from designers from all over the world.Mathilde continues to grow and develop her skills with SHEIN,and through the masterclasses and activities planned by SHEIN,expanded her industry network.She has also found the courage to start her own business and is w

200、orking on developing her own clothing brand.Ihadtofightforyearstofindmyplaceinthefashionworld in Paris,coming from theFrenchcountryside.Before SHEIN X,I have only worked for others,never for myownideas.TheSHEINteam helped me to bring my ideas into reality without ever questioning my vision offashion

201、.Iwillbeforevergrateful to SHEIN for believing in me and continuing to support me!Mathilde LhommeFROM DREAM TO REALITYTHE POWER OF COLLABORATION Working with SHEIN has been such a blessing in many ways.Ivebeengiventheopportunitytosharemyvisionandmyworkwithcustomersonaglobalscale.Asaluxurydesignbrand

202、,many of my independent works are too expensive for the everydayconsumer.ThroughtheSHEINXprogram,Ivebeenabletosharemyworkandmybrandwithsomanymorepeople.Myfollowersandfanbasehavegrowntremendously.Kaori Semaj272023 SUSTAINABILITY AND SOCIAL IMPACT REPORTINTRODUCTION PEOPLE:EQUITABLE EMPOWERMENTEnable

203、Self-Expression for All Provide Access to TalentImprove Lives in CommunitiesPLANETPROCESSGOVERNANCE ANNEXSHEIN CaresWe want to amplify our impact,working closely with global communities to deliver positive change for the world.SHEIN Cares is our philanthropic commitment to supporting important cause

204、s and organizations in the communities where we live and operate.Throughout 2023,weve partnered with various organizations worldwide,finding creative ways to support their missions through global and in-country cash and in-kind donations,collaborations on awareness campaigns and co-organizing commun

205、ity support activities.In 2023,we spent over US$4 million on causes related to empowering aspiring designers,promoting womens empowerment and gender equality,supporting the holistic development of our children,alleviating poverty and protecting biodiversity.As announced in September 2023,SHEIN will

206、set aside up to US$35 million over the next five years to expand or fund new global or in-country social impact activities,focusing on creating opportunities for women,youth and disadvantaged communities to access their full potential.Theillustration on the right highlights some of ourimpact initiat

207、ives across our global community in2023.United KingdomWe sponsored the Football for Change Charity Gala,bringing together soccer stars and business leaders to support educational and employment programs,uplifting youths from neighborhoods in the UK affected by low educational attainment and high lev

208、els of youth unemployment.Saudi ArabiaIn collaboration with Charitable Society of Autism Families,we donated over US$106,000 to support rehabilitation programs for 20 children with autism,launched a dedicated SHEIN X collection with 50%of sales proceeds donated and raised US$124,000 to benefit child

209、ren with autism and their families.FranceIn support of Pink October,SHEIN donated 20,000 to French association RoseUp,which provides information and daily support to women suffering from all types of cancer.We also launched a special SHEIN X RoseUp collection to raise money and organized a photoshoo

210、t for women recovering from cancer.United StatesWe partnered with Girls Inc.of Greater Indianapolis,donating US$100,000 to support young womens academic and social development.This included supporting their 2023 STEM summer camp,offering local high school girls opportunities in real-life career sett

211、ings.GermanySHEIN donated 15,000 to support the operations of Fellkinder in Not e.V.,a nonprofit animal welfare organization carrying out neutering operations,food and material donations,medical treatment and adoption programs.SingaporeIn September 2023,at SHEINs global headquarters,we pledged up to

212、 S$6.4 million to advance education opportunities for lower-income students.This includes collaborating with universities and nonprofits to provide bursaries,digital upskilling programs,internships and workshops for professional development.BrazilSHEIN collaborated with Central nica das Favelas,an o

213、rganization supporting social assistance and community development in favelas,to amplify its natural disaster response,donating a total of 6,200 pieces of clothing.MexicoTo support children with cancer and other serious related illnesses,we partnered with the Asociacin Mexicana de Ayuda a Nios con C

214、ncer and Fundacin Dr.Sonrisas to co-organize activities that bring cheer to terminally ill children and emotional and mental health support workshops for caregivers.282023 SUSTAINABILITY AND SOCIAL IMPACT REPORTINTRODUCTION PEOPLE:EQUITABLE EMPOWERMENTEnable Self-Expression for All Provide Access to

215、 TalentImprove Lives in CommunitiesPLANETPROCESSGOVERNANCE ANNEXCOLLECTIVE RESILIENCEFor SHEIN,collaboration across our shared ecosystem is of paramount importance.Its what enables us to meet the needs of the present without compromising our future.OUR THREE STRATEGIC PRIORITIES:Protect Biodiversity

216、and Animal Welfare Decarbonize Our Supply Chain Source Responsible Materials PROCESSPEOPLEPLANETINTRODUCTION PEOPLEPLANET:COLLECTIVE RESILIENCE Decarbonize Our Supply ChainSource Responsible MaterialsProtect Biodiversity and Animal WelfarePROCESSGOVERNANCE ANNEX292023 SUSTAINABILITY AND SOCIAL IMPAC

217、T REPORTFactoring long-term sustainability into our practices is crucial for the sake of our planet.Prioritizing Collective Resilience across our business and supply chains,we continue to invest in solutions to mitigate climate change challenges and future-proof our value chain.Our ApproachOur three

218、 strategic priorities for driving impact are to:Decarbonize Our Supply Chain Source Responsible Materials Protect Biodiversity and Animal Welfare Together,addressing these priority areas helps us uphold environmental integrity and tackle critical global challenges.Decarbonization efforts help combat

219、 climate change by reducing GHG emissions;responsible sourcing helps to protect ecosystems and communities by promoting preferred supply chain practices;and incorporating conservation efforts helps protect natural resources and biodiversity.Why It MattersImage credit:Andy Wright Photography.302023 S

220、USTAINABILITY AND SOCIAL IMPACT REPORTINTRODUCTION PEOPLEPLANET:COLLECTIVE RESILIENCE Decarbonize Our Supply ChainSource Responsible MaterialsProtect Biodiversity and Animal WelfarePROCESSGOVERNANCE ANNEXWe are working to mitigate climate change both within our operations and in collaboration with o

221、ur suppliers towards our target of reducing emissions(Scope 1,2 and 3)by 25%by 2030.20 Setting science-based targets and partnering with third-party experts in the process ensures that we set clear goals and have a concrete strategy to achieve them.We collaborate with industry experts to quantify an

222、d monitor climate impacts across each stage of our value chain sourcing,production and processing of materials,product assembly,in-house operations,logistics and end-of-life product management.Particularly,our work with Intertek has been instrumental in understanding our GHG emissions and setting ap

223、propriate reduction targets.It also helps us track and measure our progress and conduct scenario analyses to drive fact-based decision-making.CATEGORYDESCRIPTION2022(metric tons CO2e)2023(metric tons CO2e)SCOPE 1Fossil fuel combustion,CH4 fugitive,HFCs fugitive and CO2 fugitive in our direct operati

224、ons3,7817,514SCOPE 2Market-based emissions from purchased electricity2219,50525,788SCOPE 3 GHG Protocol CategoriesTransportation and DistributionTransportation of products to and between SHEIN facilities and to customers,and of returns3,234,5396,354,029Business TravelTransportation of employees to b

225、usiness-related activities1,0115,356Purchased Goods and Services Supply chain emissions of SHEIN-branded products and consumables in operations;purchased data services5,853,37610,209,730Capital GoodsTangible and intangible assets purchased60,92475,847Waste Generated in Operations Industrial waste ge

226、nerated in SHEIN-operated warehouses3526,045Decarbonize Our Supply ChainOur Carbon FootprintValue chain analysis has shown most of our emissions occur outside of our direct operations.Scope 3 emissions make up nearly all of our carbon footprint,with less than 1%attributed to Scope 1 and 2.Scope 3 em

227、issions arise primarily from supply chain,transportation and other activities outside SHEINs direct control.Our absolute emissions grew from 9.17 million metric tons of CO2e in 2022 to 16.68 million metric tons of CO2e.In 2023,our business continued to experience strong growth,and our operations div

228、ersified with the introduction of SHEIN Marketplace.21 We recognize that we still have much more work to do on our climate mitigation journey and are committed to driving progress.We continue to take steps to demonstrate greater accountability in our decarbonization journey.In 2022,we completed a st

229、udy of our 2021 emissions and announced our ambition to reduce GHG emissions across our value chain by 25%by 2030.In 2023,we committed to setting near-term targets with the Science Based Targets initiative(SBTi).We will submit our targets for SBTis validation in 2024 and are partnering closely with

230、well-known consultants in the industry,including Anthesis,to ensure that we have a detailed and practical roadmap towards decarbonizing our value chain.We are also reviewing the scope of our climate ambitions and will commit to reach net-zero emissions by no later than 2050,in line with the SBTi Net

231、-Zero Standard.20 Our2030near-termemissionsreductiontargetiswithreferencetoabaselineyearof2023,inlinewithSBTisguidancetochoosethemostrecentyearforwhichdataisavailable,andwhichisrepresentativeofourbusiness activity.21 Wecontinuetoimprovetheaccuracyofourcarbonaccountingasweprogressinourjourney.In2023,

232、refinementsmadetoourmethodologyincluded:(a)expandingourinventorytoincludeallSHEIN-operatedsitesworldwide;(b)expandingthescopeofourinventory,toincludeintra-warehousetransportationandotherconsumablesinadditiontopackaging;and(c)refiningourdatacollectionandcalculationmethodology.22 Location-basedScope2e

233、missionswere91,505metrictonsofCO2e in 2023.312023 SUSTAINABILITY AND SOCIAL IMPACT REPORTINTRODUCTION PEOPLEPLANET:COLLECTIVE RESILIENCE Decarbonize Our Supply ChainSource Responsible MaterialsProtect Biodiversity and Animal WelfarePROCESSGOVERNANCE ANNEXReducing SHEINs Direct ImpactOur Scope 1 and

234、2 emissions account for only a small proportion of total emissions and are mainly linked to electricity usage.We are implementing programs to better manage and reduce the electricity we use in our offices and warehouses,as well as expand our use of renewable energy.In 2023,SHEIN used a total of 165,

235、206 MWh of electricity across the operations that we directly manage globally.23 Seventy-two percent of this was from renewable sources,up from 68%in 2022.Were on track to achieving our target of having 100%of the electricity used in operations directly managed by SHEIN from renewable sources by 203

236、0.Key Initiatives in 2023:We installed 43.6MW of capacity in seven of our warehouses,which generated 3,953 MWh of electricity,reducing 2,255 metric tons of CO2e.We carried out energy-efficiency improvement projects in three representative SHEIN facilities,namely a warehouse in Zhaoqing,our SHEIN off

237、ice in Guangzhou and the SHEIN CIGM in Guangzhou,which helped us develop energy-efficiency recommendations for such facilities.We are switching from procuring heptafluoropropane fire extinguishers to IG-541 or dry powder extinguishers,with 99%lower emissions,for all our data centers.Reducing SHEINs

238、Indirect ImpactWe acknowledge that,with over 99%of our emissions coming from Scope 3,we must collaborate with our suppliers and other value chain partners to address these areas.Significant work remains,but we have launched several programs in 2023 to support our suppliers in their decarbonization j

239、ourneys.In partnership with Apparel Impact Institute(Aii),we initiated Clean by Design(CbD)projects,which focus on improving process efficiencies to reduce energy,water and chemical usage and waste generated in the manufacturing process.These projects,implemented across 28 supplier sites,collectivel

240、y introduced 217 improvement actions,saving 14,046 MWh of electricity and nearly 46,000 metric tons of CO2e per year.We also promote the adoption of rooftop solar energy in our supply chain,establishing partnerships to design customized solarization plans for our suppliers.These are complemented by

241、cash incentives to encourage adoption by our suppliers.We also reached out to over 300 suppliers to share about rooftop solar alternatives.As of end 2023,31 suppliers have installed and 10 suppliers are in the process of installing photovoltaic solar panels for their factories,totaling 51.6MW of sol

242、ar capacity.These solar panels generated 21,290 MWh in electricity,reducing CO2e by 12,140 metric tons.24In 2023,we began exploring initiatives to reduce emissions in our logistics and transportation operations.For example,in Europe,we introduced lower-impact delivery options,offering self-pickup op

243、tions for our customers so that they may collect their purchases from a pickup point instead of opting for doorstep delivery,which is estimated to have saved 19,468 metric tons of CO2e across eight countries.By working with logistics partners who use electric cars and hybrid or natural gas vans,we s

244、aved 54,614 metric tons of CO2e across six countries in Europe.We are also building partnerships with suppliers in Brazil and Trkiye to bring production closer to key consumer regions,and expanding the number of warehousing facilities globally in countries such as the USA and Poland.This nearshoring

245、 and onshoring strategy will help us to reduce delivery times,shipping costs and our Scope 3 carbon footprint.In nearshoring inventory,we managed to shift more air transportation to sea and ground modes for routes to Europe and the USA,saving us 49,578 metric tons of CO2e.In localizing procurement,w

246、e significantly reduced air transportation distance,resulting in an emissions reduction of 314,805 metric tons of CO2e.2523 Thisincludesspecificfacilitieswherewewereunabletotrackelectricityconsumption,forwhichtheelectricityconsumptionof other similar facilities was used as proxy.24 We use a shifted

247、reporting year to account for solar energy use by our supply chain,covering the period from September 2022 to August2023.OurGHGemissionsaccountingandreportingarealignedwiththeGHGProtocol.25 Thepotentialemissionreductionsfromtheinitiativestoreduceemissionsinourlogisticsandtransportationoperationswere

248、estimatedworkingwiththeCarbonTrust,basedonavailableinformationandassumptions.322023 SUSTAINABILITY AND SOCIAL IMPACT REPORTINTRODUCTION PEOPLEPLANET:COLLECTIVE RESILIENCE Decarbonize Our Supply ChainSource Responsible MaterialsProtect Biodiversity and Animal WelfarePROCESSGOVERNANCE ANNEXSHEIN Suppl

249、ier in Zhongshan CityUnder the CbD initiative,SHEINs team of specialists helped a supplier based in Zhongshan City devise a customized blueprint to improve energy efficiency,recommending measures tailored to their unique needs.These measures include establishing a condensate-reuse system,enhancing a

250、ir-conditioning systems,steam pipe insulations and lighting management,and introducing energy-saving sewing machines.This helped the supplier realize 12.58%in water savings and 16.16%reduction in GHG emissions,and employees also reported significantly improved workshop conditions,especially on warme

251、r days.CLEAN BY DESIGN PARTNERINGOUR SUPPLIERS IN THEIR ENERGY TRANSFORMATIONSHEIN Supplier in Guangzhou City While one of the suppliers SHEIN works with in Guangzhou had explored energy-transformation initiatives previously,it did not achieve much success.With SHEINs help,the supplier installed new

252、,more efficient boilers and improved steam leakage management in boiler rooms,fine-tuned steam pressure levels and insulated steam pipelines,strengthened lighting management and refurbished standardized workshops.Within just six months,the supplier achieved a 13.93%reduction in electricity use,resul

253、ting in cost savings that could be reallocated to staff training or team-building initiatives.Through the collaboration with SHEIN,this SHEIN supplier was able to progress rapidly in their green transition journey.By fitting workspaces with LED lights,suppliers are able to eliminate common issues wi

254、th incandescent bulbs such as harsh lighting and low-frequency hum.LED lights like these use less energy than incandescent bulbs,last longer and offer higher-quality light output than incandescent bulbs.332023 SUSTAINABILITY AND SOCIAL IMPACT REPORTINTRODUCTION PEOPLEPLANET:COLLECTIVE RESILIENCE Dec

255、arbonize Our Supply ChainSource Responsible MaterialsProtect Biodiversity and Animal WelfarePROCESSGOVERNANCE ANNEXSourcing responsible materials means incorporating materials that meet our performance,quality and safety standards and materials that have a lower environmental impact.Were committed t

256、o identifying and using material solutions that can address bothexpectations.Sourcing responsible materials starts with the fundamentals:quality and safety.It continues with the responsibility to provide more product options manufactured from materials with lower environmental impact.SHEINs approach

257、 includes:Taking guidance from industry regulations and best practices to develop product quality and safety standards.Hiring experts to help establish and manage compliance protocols.Conducting training for both internal staff and suppliers on best practices for compliance.Requesting suppliers to p

258、rovide up-to-date product quality and safety documentation.Conducting material and finished product testing for harmful and restricted substances and quality control in partnership with third-party experts and independent labs.Accelerating the adoption of preferredmaterials.An Established System for

259、 Quality and Safety During 2023,we introduced a quality monitoring and control(QMC)system for SHEIN-branded apparel products.The system covers the full product lifecycle,from design and development,through production and inbound sales,to after-sales processing.Such oversight enables us to better man

260、age risks related to product compliance and safety.Throughout the year,we conduct inspections to ensure suppliers are compliant with our quality standards.To ensure that risks are identified and resolved as soon as possible,we take a risk-based approach,considering suppliers industry experience and

261、historical data.Where apparel products are found to be noncompliant with SHEINs quality and safety standards,we take necessary actions as relevant.These can include removing products from sale,returning bulk goods to suppliers,reducing orders and imposing fines on suppliers.Moving forward,we will co

262、ntinue to improve the QMC system to ensure greater compliance with SHEINs quality and safety standards.Source Responsible Materials342023 SUSTAINABILITY AND SOCIAL IMPACT REPORTINTRODUCTION PEOPLEPLANET:COLLECTIVE RESILIENCE Decarbonize Our Supply ChainSource Responsible MaterialsProtect Biodiversit

263、y and Animal WelfarePROCESSGOVERNANCE ANNEXQuality and Durability SHEIN adopts rigorous targets for the continual improvement of apparel product quality,drawing on standardized testing and customer feedback to guide our efforts.We have established internal standards for material factors like tear st

264、rength,pilling and color fastness,and require our textile suppliers to submit updated quality test reports for these factors.Our Product Quality team has developed protocols for testing compliance with our standards for any apparel products entering SHEINwarehouses.During 2023,we continued finding w

265、ays to improve apparel longevity.Based on customer reviews,we undertook efforts to source higher-performing zippers.We optimized and integrated our zipper supply chain,consolidating procurement activities to focus on three carefully selected companies whose products met our standards for high perfor

266、mance.Our surveys,which encompassed over 3,500 customers in six markets,show that customers do get good use out of our garments the majority of our customers surveyed reported that they generally wear SHEIN items over 10 times,with one-third of surveyed customers wearing their SHEIN items over 30 ti

267、mes.Chemical SafetyResponsible apparel products need to be designed with safety in mind.At SHEIN,we are building compliance control processes that uphold chemical and physical safety standards.SHEIN engages with industry experts to reinforce current practices for managing product compliance.We also

268、maintain a Restricted Substances List(RSL),which imposes restrictions on per-and polyfluoroalkyl substances(PFAS),taking guidance from international standards and regulations including but not restricted to:The Apparel and Footwear International RSL Management(AFIRM)Group.Registration,Evaluation,Aut

269、horisation and Restriction of Chemicals(REACH).The Stockholm Convention and Aarhus Protocol on Persistent Organic Pollutants(POPs).Other relevant national and regional regulations.In 2023,we updated our RSL for materials so that it remains up to date with revised PFAS regulations.We also developed a

270、nd launched a Manufacturing Restricted Substances List(MRSL)for materials used in manufacturing,compiling prohibited chemical substances that are often used in dyes,additives and finishing agents.SHEINs suppliers must agree with and ensure their raw materials,semi-finished and/or finished products m

271、eet our apparel product safety requirements.Additionally,our policies and procedures require fabric suppliers to provide test reports and Certificates of Conformance attesting to their compliance with our standards.Suppliers found to have manufactured noncompliant products may face penalties that in

272、clude fines or having their apparel products removed from sale.Before being listed for sale,SHEIN-branded childrens clothing must also undergo several safety risk assessments to ensure that relevant standards for hazardous substance control are met.The design and production of SHEIN-branded children

273、s clothing are governed by our Childrens Clothing Safety Standards an internal document that takes guidance from European standards.Meeting Customer Expectations As a customer-focused business,we are in conversation with our customers constantly about what they like,what works and how we can improve

274、.Customer feedback is gathered through our online platform in the form of product page comments,as well as through our customer service team.Any quality-related comments are passed to the quality and safety department to be addressed in a timely manner.This helps us to maintain a level of customer s

275、atisfaction in SHEIN-branded products.In 2023,the global proportion of negative reviews on our products(i.e.,three stars or less)decreased from 3.3%in 2022 to 2.6%,which is a 21.9%improvement.Based on reviews from customers in the USA,UK,Germany and France in 2023,customer product satisfaction avera

276、ged 97.4%SHEINs Quality Dojo in our CIGM provides free training to employees and suppliers on best practices in quality control and testing techniques,awarding a certification of completion for the course.352023 SUSTAINABILITY AND SOCIAL IMPACT REPORTINTRODUCTION PEOPLEPLANET:COLLECTIVE RESILIENCE D

277、ecarbonize Our Supply ChainSource Responsible MaterialsProtect Biodiversity and Animal WelfarePROCESSGOVERNANCE ANNEXSourcing Lower-Impact Materials SHEIN is a member of Textile Exchange a global nonprofit driving beneficial impacts on climate and nature across the fashion,textile and apparel indust

278、ry by guiding a growing community of brands,manufacturers and farmers towards more purposeful production along the supply chain.We look to their guidance as we develop our preferred fiber strategy and accelerate our sourcing of lower-impact materials.Recycled PolyesterPolyester accounts for the majo

279、rity of SHEINs fiber portfolio,which makes the transition to recycled polyester a vital step in our decarbonization journey.With recycled polyester accounting for 7.9%of polyester directly sourced for SHEIN-branded products in 2023,we are moving steadily towards our goal to transition 31%to recycled

280、 polyester by 2030.Man-Made Cellulosic Fibers(MMCFs)When sourced responsibly,MMCFs(including viscose,modal,lyocell and acetate)hold a significant opportunity for sustainable,regenerative and circular fiber production at an affordable price.To help us make progress in this fiber category,we look to C

281、anopy,an independent,solutions driven nonprofit organization,to identify Ancient and Endangered Forest-friendly suppliers and lower-impact fiber inputs and provide resources for taking collective action with supply chain partners and industry peers.In 2023,we made good progress on our goals,sourcing

282、 60%of our viscose fabrics from“green shirt”rated producers.26 This includes utilizing 6,800kg of Lenzing TENCEL Modal fabrics each of which contain at least 30%Lenzing TENCEL Modal fibers in the creation of SHEIN garments in 2023.TENCEL Modal fibers are made from wood,a natural raw material,sourced

283、 from controlled or certified origins meeting Forest Stewardship Council(FSC)or Programme for the Endorsement of Forest Certification(PEFC)standards,following the stringent guidelines of 26 According to Canopys 2023 HotButtonReport.27 Thischartprovidesthefiberbreakdownbyweightfortextilesdesignatedby

284、SHEINforusebycontractmanufacturers.28 In 2023,we switched the 6C garment polybags used in 2022 to 5.5C garment polybags.SHEINs Fiber Portfolio27Polyester75.7%Recycled polyester6.0%Cotton9.9%Viscose8.0%Forest-safe viscose5.0%Spandex3.6%Polyamide2.4%Other fiber categories(including linen,acrylic and m

285、etallics)0.3%the Lenzing Wood and Pulp Policy.For its highly responsible sourcing practices helping to protect Ancient and Endangered Forests,Lenzing has been recognized as one of the best performing companies worldwide in Canopys Hot Button Report in 2023.CottonWe have invested substantial resource

286、s to ensure cotton is sourced responsibly,and our policies and procedures require the submission of chain-of-custody documentation for SHEIN-branded cotton products to ensure traceability of raw cotton used.This is supported by our proprietary Traceability Management System that integrates supply ch

287、ain documentation and information from fabric and finished product suppliers,such as certificates of raw material origin,export/import documents and purchase orders.We also look to third-party cotton sample testing to verify origin for SHEIN-branded products.Yarn and fabric samples are collected by

288、independent third-party agencies and sent to Oritain,a global leader in isotopic analysis and cotton testing,for independent testing and origin verification.Packaging In pursuit of our goal to have 50%preferred materials in all our packaging for SHEIN-branded products by 2030,we are increasing use o

289、f recycled plastic and paper-based packaging.Since August 2022,nearly all express delivery packages procured for goods shipped to Europe have comprised 50%Global Recycled Standard(GRS)-certified recycled polyethylene(PE)plastic.In addition,all garment polybags procured for goods under our evoluSHEIN

290、 initiative and MOTF and Cozy Cub sub-brands have been designed to use 100%GRS-certified recycled PE plastic.in 2023.Overall,the proportion of packaging procured that contained at least 50%preferred materials increased from 4.1%in 2022 to16.2%Keeping in line with the specific regulatory requirements

291、 of each country we serve,SHEIN also ensures our packaging is properly labeled to help customers responsibly dispose of it.For example,all packaging bags are marked with the plastic type to support better waste separation.We have also included additional logos to support recycling efforts in line wi

292、th regulations:the French Triman logo,Spanish Green Dot and Italian environmental label.In 2023,we started to use thinner garment polybags for our SHEIN-branded products,which are each 1.34 g lighter than the earlier type of polybag used.28 This comprised over 60%of our garment polybags for SHEIN-br

293、anded products in 2023.We are also using FSC-certified paper-based packaging for twoof our sub-brands.362023 SUSTAINABILITY AND SOCIAL IMPACT REPORTINTRODUCTION PEOPLEPLANET:COLLECTIVE RESILIENCE Decarbonize Our Supply ChainSource Responsible MaterialsProtect Biodiversity and Animal WelfarePROCESSGO

294、VERNANCE ANNEXAs demand grows from customers and the wider apparel industry for responsible,circular production practices,we consider it our duty to champion this evolution designing and sourcing with a goal to mitigate our environmental footprint and empower stakeholders across the communities we s

295、erve and operate in.How do we do this?By:Using preferred materials with a lower carbon footprint compared to conventional equivalents.Finding creative ways to repurpose textile surplus from cutting scraps to rescued deadstock fabrics from other fashion brands otherwise destined for landfill or incin

296、eration tooptimize and conserve resources.Shipping products in packaging containing more sustainable content,such as recycled PE.Encouraging conservation of water and energyresources.Seeking to utilize more facilities powered by renewable energy.Its also why we created evoluSHEIN by Design,a product

297、 initiative aimed at accelerating the use of responsible materials and manufacturing processes.For a garment to be recognized as an evoluSHEIN by Design product,it must meet our evoluSHEIN Standard.The standard specifies that qualifying garments must include a minimum of 30%preferred materials i.e.,

298、recycled polyester,forest-safe viscose and rescued deadstock and be manufactured by suppliers who have achieved an above-average rating on their SRS audit(i.e.,A or B in our current grading scale)conducted by an accredited third party or be certified to an independent third-party standard that inclu

299、des criteria for social compliance(e.g.,SA8000,GRS).Products are then shipped with packaging comprising preferred materials.In 2023,approximately 2.2%of SHEIN-branded products made with textiles designated by SHEIN were produced in accordance with our evoluSHEIN Standard.This progress was a combined

300、 effort from internal design teams and external brand partners,including fashion influencers,IP partners and SHEIN X designers who took up the mantle of incorporating sustainable design principles into their collections.We will continue this push for more responsible and circular production practice

301、s,and work with our ecosystem of partners towards sourcing 50%of SHEIN-branded products through our evoluSHEIN by Design initiative by 2030.evoluSHEIN by DesignIn 2023,SHEIN worked with six US-based SHEIN X designers,handpicked based on their passion for sustainable fashion,to launch evoluSHEIN by D

302、esign collections.b y D e s i g n372023 SUSTAINABILITY AND SOCIAL IMPACT REPORTINTRODUCTION PEOPLEPLANET:COLLECTIVE RESILIENCE Decarbonize Our Supply ChainSource Responsible MaterialsProtect Biodiversity and Animal WelfarePROCESSGOVERNANCE ANNEXSUSTAINABLE,INCLUSIVE FASHIONLauren Flagg,founder of Ob

303、viously Vintage and graduate of the Art Institute of Raleigh-Durham,champions sustainable fashion.Hailing from North Carolina,she launched her brand in 2018,inspired by nostalgic 1980s and 90s designs and her earlier years spent thrifting and repurposing clothes.Her clothing line incorporates recycl

304、ed fabric both for the clothes themselves and for their packaging.After five years of running her business locally,Lauren was one of the six US-based designers in the initial cohort selected to join our evoluSHEIN by Design initiative.This brings global exposure for Laurens sustainable pieces not on

305、ly across SHEINs website,but also to her own independent brand.I went from making one of one piece to having fullcollectionsonSHEINsworldwide e-commerce site.Itchangedmylife.Iwouldspotmyownpiecesbeing worn at events,someone doing a get ready with me on Instagram and even doing clothing hauls withmyp

306、ieces.Lauren Flagg,Founder,Obviously Vintage382023 SUSTAINABILITY AND SOCIAL IMPACT REPORTINTRODUCTION PEOPLEPLANET:COLLECTIVE RESILIENCE Decarbonize Our Supply ChainSource Responsible MaterialsProtect Biodiversity and Animal WelfarePROCESSGOVERNANCE ANNEXAddressing our impact on the environment mea

307、ns digging deeper into our value chain to track down potential risks to natural ecosystems.It requires making a conscious effort to take responsibility beyond our own operations to protect biodiversity and uphold animal rights.Material TraceabilityBefore we can address our impacts,we need to underst

308、and where and how they occur at different points across the supply chain.Accurately tracing our operations impacts on biodiversity and animal welfare requires identifying and understanding the sources of our materials.To do so,we are undertaking efforts to strengthen supply chain coordination and co

309、llaboration with external organizations,across non-governmental organizations(NGOs),public authorities and testing certification bodies.SHEIN has partnered with TV Rheinland to develop our proprietary Traceability Management System,aimed at tracing material quality and verifying sustainable material

310、 sources along our supply chain.Through integration with SHEINs digital supplier management system,SHEINs policies and procedures require suppliers to reconstruct their physical supply chain in digital form,uploading documentation to track the flow of materials.This includes chain of custody documen

311、tation,test reports and transaction certifications for raw materials used.SHEIN also conducts routine sampling of yarn,fabrics and finished products,in partnership with independent testing labs in different markets,to verify the efficacy of our material traceability system and to help ensure the mat

312、erials used in our products comply with the required product quality standards in the markets we operate in.Making a Commitment to Our ForestsIn 2022,SHEIN became a signatory to the CanopyStyle and Pack4Good initiatives,joining forces with Canopy to reduce the fashion industrys contribution to defor

313、estation and degradation.Canopy works with its brand partners and local allies to protect these irreplaceable forest ecosystems that support rich biodiversity of life and the livelihoods of many Indigenous communities.To protect these vital Ancient and Endangered Forests,we have committed to:Transit

314、ion all directly sourced MMCFs to come from sources that do not endanger vital ancient forests by 2025.Transition all paper-based packaging to forest-safe sources and prefer the use of recycled content by 2025.Accelerate next-generation fiber solutions.Promote forest conservation.Protect Biodiversit

315、y and Animal WelfareAnimal WelfareWe seek to offer vegan-friendly and cruelty-free product options to our customers and are committed to promoting the importance of animal welfare within our supply chain.SHEINs Animal Welfare policy follows the“Five Freedoms”laid out by the World Organisation for An

316、imal Health,namely freedom:From hunger,malnutrition and thirst From heat stress or physical discomfort From pain,injury and disease To express normal patterns of behavior From fear and distress 392023 SUSTAINABILITY AND SOCIAL IMPACT REPORTINTRODUCTION PEOPLEPLANET:COLLECTIVE RESILIENCE Decarbonize

317、Our Supply ChainSource Responsible MaterialsProtect Biodiversity and Animal WelfarePROCESSGOVERNANCE ANNEXWASTE-LESSINNOVATIONInnovation is what will propel the fashion industry towards a more sustainable and ethical future.We look to embed circularity principles and resource-saving technologies int

318、o our operations to enable a future where we can close theloop.PROCESSPEOPLEPLANETOUR THREE STRATEGIC PRIORITIES:Accelerate Sustainable Innovation Optimize Resource Efficiency Design Circular Systems INTRODUCTION PEOPLEPLANET PROCESS:WASTE-LESS INNOVATIONOptimize Resource EfficiencyDesign Circular S

319、ystemsAccelerate Sustainable InnovationGOVERNANCE ANNEX2023 SUSTAINABILITY AND SOCIAL IMPACT REPORT40By seeking innovative solutions,we can significantly decrease our environmental footprint and preserve our planet and its resources.Transforming how we produce and manage resources at all stages acro

320、ss the entire value chain,and empowering our customers to come along on this journey,will help us close the loop in the fashion industry.Our ApproachOur three strategic priorities for driving impact are to:Optimize Resource Efficiency Design Circular Systems Accelerate Sustainable Innovation We are

321、optimizing efficiency along the value chain to conserve resources,leaning on circular systems of product reuse,refurbishing and recycling to minimize the environmental impact of our consumption patterns.At the same time,we are accelerating sustainable innovation by testing and scaling effective solu

322、tions to drive positive change in the fashion industry.Why It Matters412023 SUSTAINABILITY AND SOCIAL IMPACT REPORTINTRODUCTION PEOPLEPLANET PROCESS:WASTE-LESS INNOVATIONOptimize Resource EfficiencyDesign Circular SystemsAccelerate Sustainable InnovationGOVERNANCE ANNEXWe constantly seek to enhance

323、efficiency throughout our value chain,conserving essential resources like water,energy and raw materials.By minimizing consumption and waste,we ensure that we use only what is necessary.Tech-Driven Waste ReductionWaste of resources from overproduction is a systemic challenge that the retail sector f

324、aces.Acknowledging this problem,our innovative on-demand business model strives to minimize waste from the start,which also reduces costs for customers.Utilizing small-batch ordering based on trend research and direct feedback,SHEIN seeks to maintain consistently low unsold inventory rates.Additiona

325、lly,our digital supplier management system equips our partners with real-time insights,to aid in more accurate production planning and minimize resource wastage.Conserving Water Water is an essential resource at every stage of the apparel value chain,and we are committed to optimizing its use within

326、 our supply chain.Many of our suppliers already use closed-loop water treatment and reuse processes that help reduce water consumption.We also invest in research and development of manufacturing technology and production processes that consume less water,and encourage our suppliers to adopt these pr

327、actices.Our CbD projects for supplier facilities,implemented in collaboration with Apparel Impact Institute,have also targeted improving water efficiency.Our projects in 2023 are estimated to have saved around 1 million cubic meters of water.In 2023,over 52%of directly sourced printed fabric utilize

328、d digital thermal transfer printing(DTP),which is a zero-water-waste printing method verified by Bureau Veritas.The DTP initiative is estimated to have saved over 290,000 cubic meters of water and over 32,600 MWh of electricity compared to traditional screen-printing in 2023,which also results in a

329、reduction of 60,524metric tons of CO2e.SHEIN is also working with suppliers to increase adoption of cool transfer denim printing technology,which uses innovative high-fixation ink in place of conventional indigo colorants.This method was verified by Bureau Veritas in October 2023 to use 70.5%less wa

330、ter than traditional denim apparel washing methods.This also provides our designers with more flexibility to create designs with a variety of colors and style accents,since they can print the pattern onto the denim fabric directly using a digital printer.SHEIN has integrated the cool transfer denim

331、production process into our agile supply chain,allowing our suppliers to produce innovative denim designs in a more water-efficient manner.Optimize Resource EfficiencyCLEANBYDESIGNSUPPORTING WATER CONSERVATION SHEIN Supplier in Zhaoqing CityThrough the CbD initiative,with the support of SHEINs team

332、of experts,a SHEIN supplier in Zhaoqing City enhanced their motor energy efficiency and switched to energy-efficient machinery like dyeing machines,shaping devices and air compressors.They also developed a system to monitor and mitigate water and stream runoff and leaks and pioneered research into e

333、nergy-conserving,short-duration dyeing processes.This not only reduced their energy footprint,but also resulted in a 19.7%reduction in water usage.SHEIN Supplier in Foshan CityWith SHEINs experts assessing and evaluating production methods and providing technical support,our supplier in Foshan City managed to achieve an 18.2%reduction in water usage and a 15.4%reduction in wastewater discharge by