👉 Background: Shein is the online fashion retailer catering to Gen Z that popped off in 2020 thanks to TikTok. It’s known for its scarily low prices...and questionable environmental impact and labour practices.

👉 What happened: Shein has announced that it will invest $270 million USD in a Circularity Fund in the UK and Europe to tackle fashion waste - and this has come just a month after Shein quietly filed an IPO application in London.

👉 What else: The fund, which is Shein's first major step into the circular economy, will go towards businesses and startups that are building textile-recycling technology, as well as regional brands and designers.

What's the key learning?

💡Circular economic models aim to minimise waste and are taking the fashion industry by storm. They enable fashion brands to generate revenue from more than just selling new clothes like reselling, renting, or recycling.

💡A global switch to the circular economy could unlock $560 billion USD of economic opportunity for the industry. Major brands are already getting behind the circular business model like Ted Baker, Patagonia, Primark, and even the H&M Group.

💡 Shein’s doing things differently by investing in businesses that are already in the space. But until we see results, it's hard to know if this is meaningful effort or a way to offload responsibility and also claim credit for sustainability efforts.