1、2021 Sustainabilityand Social Impact ReportCEO Letter 3Business-at-a-Glance 4Our Approach and Governance 6Stakeholder Engagement 8 Supply Chain 10 People 13 Employees 13 Diversity,Equity and Inclusion 14 Protecting Our Planet 15 Digital Printing 15 Circularity 15 Waste 16 Materials 17 Partnerships 1

2、8Supporting Communities 19 SHEIN Cares 19 Empowering Entreprenuers 23Cybersecurity and Data Privacy 24Global Head of ESG Q&A 25Contents3Since SHEIN was founded in 2012,we have worked tirelessly toward our primary mission:making the beauty of fashion accessible to all.Throughout the past decade,we de

3、veloped tools to help us fulfill that goal by implementing automation to optimize production efficiency and our supply chain,we were able to provide customers with an affordable range of hyper-trendy styles.We know that our customers appreciate the wide range of fashion and lifestyle products we pro

4、vide.More importantly,they value the opportunity to express their unique perspectives on beauty through fashion.We are truly grateful for the support of our customers and are committed to ensuring that SHEINs business practices are aligned with their goals and values.As a major global e-tailer,we kn

5、ow that we have an important role to play in supporting the communities where we work,source,and live,and a responsibility to preserve the larger environment and planet we all share.We seek to take ownership of all the impacts of our business and operate for the long term in a way that benefits busi

6、ness and society.We will collaborate with governments,civil society and NGOs to drive systemic change.We look to the 17 Sustainable Development Goals(SDGs)to guide our sustainability and social impact work.We are working to assess the impact of SHEINs business socially and environmentally at all lev

7、els of our value chain.As we take ownership of SHEINs impact in the world,we can seize opportunities to use the company as a driver for social good,leveraging the SHEIN Cares Fund to support organizations tackling critical issues,financially supporting fashion entrepreneurs and investing in emerging

8、 technologies to reduce our environmental impact and make circularity a reality.We believe that we currently stand in a moment of opportunity.Stakeholders are more vocal than ever and there is a high demand for change across the fashion industry,which gives us a chance to develop initiatives that pr

9、ove our commitment to responsible corporate citizenship.We are piloting a number of exciting first-of-its-kind initiatives from logistics to recycling,which will reduce waste at every stage of the product lifecycle.In addition,we are growing our partnerships with NGOs to support on-the-ground work a

10、ligned with our values.As we continue advancing sustainability and social impact,we understand that it is crucial to provide transparent communication about our progress,values and plan for the future.The following report is a first step toward providing that transparency an overview of who we are,t

11、he way we do business,and our commitment to the interests of our employees,suppliers,our shared planet and the fashion industry as a whole.Future reports will provide regular updates on the further development of SHEINs sustainability and social impact initiatives through all levels of our business

12、and external corporate stewardship.Chris XuCEO of SHEINOur commitment to advancing sustainability and social impactCEO LetterBusiness-at-a-Glance Our Approach and GovernanceStakeholder EngagementPeopleProtecting Our PlanetSupporting CommunitiesEmpowering EntreprenuersCybersecurity and Data PrivacyGl

13、obal Head of ESG Q&A4SHEIN is a digital first fashion and lifestyle e-tailer with key operation centers in Singapore,China,the U.S.and other major global markets.We employ cutting-edge technologies and processes in our design and sourcing to stay well informed of what is in-demand by consumers,produ

14、ce goods in a timely manner and deliver our products quickly to anywhere in the world.Our approach has led to widespread rapid growth our mobile apps have ranked within the top five most popular shopping apps in 10 markets and we have more than 250 million followers on our social media channels.SHEI

15、N was founded in 2012 and has since grown to a team of nearly 10,000 employees selling to more than 150 countries.Women make up 58 percent of our global workforce and represent 40 percent of senior management.We believe that our workforce should mirror the diversity and creativity of our customers,w

16、hich is why we set up local operations in key markets to build authentic connections with our global consumer base.CEO LetterBusiness-at-a-Glance Our Approach and GovernanceStakeholder EngagementPeopleProtecting Our PlanetSupporting CommunitiesEmpowering EntreprenuersCybersecurity and Data PrivacyGl

17、obal Head of ESG Q&ABusiness-at-a-GlanceTotal female employees58%Women in senior management40%6,000+suppliersWomen in line management41%countries150+selling to10,000employees worldwidenearly5By developing proprietary logistics and e-commerce technology,we are innovating the fashion space and improvi

18、ng outcomes for manufacturers and consumers.We use on-demand manufacturing technology to connect suppliers to our supply chain,enabling us to reduce inventory waste and deliver quality products at affordable prices to customers around the world.We work with more than 6,000 suppliers,many of whom are

19、 small businesses,to produce SHEIN-branded products and source additional third-party items to sell on the SHEIN platform.CEO LetterBusiness-at-a-Glance Our Approach and GovernanceStakeholder EngagementPeopleProtecting Our PlanetSupporting CommunitiesEmpowering EntreprenuersCybersecurity and Data Pr

20、ivacyGlobal Head of ESG Q&AA fully-integrated supply chain6On our journey to build a thriving fashion ecosystem where the beauty of fashion is accessible to all,we recognize the role SHEIN must play in supporting the communities where we work and live,and the larger environment and planet we all sha

21、re.The United Nations Sustainable Development Goals(SDGs)provide a framework for our environmental sustainability and social impact strategy.We support all 17 SDGs,which help guide our priorities and programs,and which will guide our future goal setting and reporting.Our Approach and GovernanceCEO L

22、etterBusiness-at-a-Glance Our Approach and GovernanceStakeholder EngagementPeopleProtecting Our PlanetSupporting CommunitiesEmpowering EntreprenuersCybersecurity and Data PrivacyGlobal Head of ESG Q&AUnited Nations Sustainable Development Goals(SDGs)We are a signatory to the United Nations Global Co

23、mpact(UNGC)and support the ten principles focused on human rights,labor,environment,and anti-corruption.7CEO LetterBusiness-at-a-Glance Our Approach and GovernanceStakeholder EngagementPeopleProtecting Our PlanetSupporting CommunitiesEmpowering EntreprenuersCybersecurity and Data PrivacyGlobal Head

24、of ESG Q&AWe have identified three pillars for our sustainability and social impact strategy:protecting our planet,supporting communities and empowering entrepreneurs.Weve already made progress on each pillar through a number of initiatives,including philanthropic and in-kind giving,awareness-raisin

25、g campaigns and our SHEIN X incubator.We recognize there is always more to be done,and we look forward to showing you our continued progress.ESG Accountability Addressing our impact on the environment and our society as a whole is not only important to SHEIN,it is our responsibility.This responsibil

26、ity starts with our corporate structure.SHEINs global head of ESG reports directly to our CEO and leads a combination of full-time ESG professionals and other employees from various SHEIN departments.These employees have some intersection with ESG functions,such as buyers who are trained to identify

27、 safety violations when they visit factories for commercial purposes.Our senior leadership team meets monthly to discuss ESG initiatives and progress,including new partnerships and initiatives,goals and reporting.This report is a snapshot of how we do business,the initiatives weve activated in pursu

28、it of our sustainability and social impact goals,and our vision for the future.This is the first of many reports SHEIN will release publicly to provide a transparent look at the companys business model and share updates on the positive impact we are making on people,our planet and the fashion indust

29、ry.Our global head of ESG shares his thoughts on SHEINs sustainability and social impact journey on page 25.We developed a three pillar sustainability and social impact strategy to pursue initiatives focused on:Empowering EntrepreneursProtectingour PlanetSupportingCommunities8We actively seek ways t

30、o make sure that we positivelyimpact entities that interact with SHEIN across the value chain,directly or indirectly and help them succeed.When assessing sustainability and social impact programs,we always consider how our choices and actions affect our stakeholders,including but not limited to:Cust

31、omersOur customers are incredibly supportive and drive SHEINs continuous growth and success.We strive to reflect their diversity and creativity in our product offerings and always look for opportunities to support the causes they care about,from product design and material choice to product end-of-l

32、ife,circularity and charitable giving.EmployeesOur global workforce is nearly 10,000 strong we value the hard work of every employee and implement policies to promote a workplace that is safe,secure and free from harassment and discrimination,and one that operates in compliance with relevant local l

33、aws.Designers and StudentsIndependent designers and students define the future of fashion,but often compete for limited opportunities to build their business and personal brand.SHEIN has created programs and opportunities to afford emerging creatives an entry point into the fashion industry and will

34、 soon announce new initiatives to elevate promising talent.Stakeholder EngagementCEO LetterBusiness-at-a-Glance Our Approach and GovernanceStakeholder EngagementPeopleProtecting Our PlanetSupporting CommunitiesEmpowering EntreprenuersCybersecurity and Data PrivacyGlobal Head of ESG Q&A9CommunitySHEI

35、Ns impact extends far beyond the individuals we directly interact with.By supporting the communities in which our employees,customers and partners live and work,we create meaningful positive outcomes around the world.This work includes donating unsold merchandise to local charities and financially s

36、upporting employees with scholarships and emergency funding.Non-governmental Organizations(NGOs)NGOs play an important role in monitoring compliance with international labor and environmental standards.We engage with organizations who can provide meaningful perspectives and value their critical feed

37、back as a catalyst for strengthening our program.Policy Makers and RegulatorsWe actively engage and strive to build collaborative relationships with key policy makers and regulators.CEO LetterBusiness-at-a-Glance Our Approach and GovernanceStakeholder EngagementPeopleProtecting Our PlanetSupporting

38、CommunitiesEmpowering EntreprenuersCybersecurity and Data PrivacyGlobal Head of ESG Q&A10Supply Chain We contract the manufacturing of our products with independently operated suppliers.We also sell other products and brands from finished goods vendors on our platform.We are committed to creating a

39、sustainable business ecosystem where our suppliers thrive as a result of their partnership with SHEIN.Part of that work includes providing our suppliers with technology and operational support that enables them to be more competitive and profitable.Many SHEIN suppliers see supply and demand for each

40、 style through our proprietary supplier platform,allowing them to have real-time insight into sales and inventory.This helps them adopt modern best practices for planning and production,such as maximizing efficiency.Additionally,we provide thousands of small and medium-sized merchants with brand and

41、 store setup,logistics support and access to new customers helping them to grow their businesses.SHEIN SpotlightWe launched the“SHEIN Spotlight”program,available to 14,000 employees of 120 suppliers,to help cover childcare and education costs.In the future,we plan to expand this program and increase

42、 its scope.Code of Conduct SHEIN enforces a strict Code of Conduct for all product manufacturing and raw material suppliers.The principles embodied in the SHEIN Code are consistent with the core conventions of the International Labour Organization(ILO).Our Code includes compliance requirements relat

43、ed to health and safety,environment,labor and social welfare,and we require our suppliers to comply with local laws.Responsible Sourcing Program We have created the SHEIN Responsible Sourcing(SRS)evaluation system and conduct regular supplier audits.SHEINs Responsible Sourcing Program assigns grades

44、 of A,B,C,D and Zero Tolerance Violations(ZTVs)to factories based on audit results.Examples of ZTVs include forced labor,serious environmental pollution,severe health and safety violations,and underage labor.SHEIN provides capacity building training to suppliers to support the remediation of ZTV and

45、 other major Code violations.Should suppliers fail to remediate violations within the allowed timeframe(immediately in severe cases,such as underage labor),we take further action,including termination.In 2021,we contracted third-party agencies,such as Openview and ITS,and used our trained staff to c

46、onduct nearly 700 audits of SHEIN supplier facilities using SEDEX SMETA and SRS Program standards.We will continue to conduct regular audits to ensure that all levels of the supply chain are compliant with the SHEIN Code of Conduct,accessible here.CEO LetterBusiness-at-a-Glance Our Approach and Gove

47、rnanceStakeholder EngagementPeopleProtecting Our PlanetSupporting CommunitiesEmpowering EntreprenuersCybersecurity and Data PrivacyGlobal Head of ESG Q&A1166%15%5%2%12%SHEIN regularly audits its suppliers factories and warehouses.In 2021,out of nearly 700 suppliers audited,the company found:We take

48、pride in helping our suppliers reach global markets,and in doing so,many of these suppliers may need to adjust to international workplace standards.Through initiatives such as training and capacity building programs on factory compliance,SHEIN is committed to supporting the transition of many of our

49、 suppliers.A:90 points and above.Outstanding performance with minor flaws.Continued improvement is advised.B:80 to 90 points.Moderate performance with some general risks.Continued improvement is advised.C:60 to 80 points.Mediocre performance with 1-3 major risks.Corrective action is required.D:Below

50、 60 points.Poor performance with over 3 major risks.Corrective action is required.ZTV:Below zero.Very poor with ZTV risks.Immediate corrective action is required.CEO LetterBusiness-at-a-Glance Our Approach and GovernanceStakeholder EngagementPeopleProtecting Our PlanetSupporting CommunitiesEmpowerin

51、g EntreprenuersCybersecurity and Data PrivacyGlobal Head of ESG Q&AZTV and major violations mustbe remediated in 30,60,or 90days depending on severity.Failure to remediate results in factory termination.12CEO LetterBusiness-at-a-Glance Our Approach and GovernanceStakeholder EngagementPeopleProtectin

52、g Our PlanetSupporting CommunitiesEmpowering EntreprenuersCybersecurity and Data PrivacyGlobal Head of ESG Q&APercentage of nearly 700 audits where these violations were detectedTop Violation CategoriesOne of the most frequent violations we detect through our supply chain audit program is insufficie

53、nt fire and emergency preparedness.This can pose serious risk to workers and is something we address through regular capacity building exercises.Our goal is to reduce this violation rate every year through on-site management and worker trainings.Regarding the other violation categories,we also condu

54、ct capacity building trainings to ensure management systems are put in place to prevent future violations.Fire and emergency preparedness 27%Working hours 14%Recruitment compliance 14%Grievance management 9%General working environment 8%Workplace safety 7%Environmental protection 5%Electrical safety

55、 4%Medical and emergency services 4%Chemical management 3%Occupational health 3%Worker housing 2%Underage labor 1%13From suppliers to employees in over a dozen global offices people are the most important part of our business.Our global team has grown significantly over 2021,and the examples below o

56、utline some of our recent initiatives.We are committed to investing in the success of SHEIN employees everywhere,and we have a number of programs to promote training,development and growth opportunities.Employees:Undergo a comprehensive annual review process Participate in Security Awareness trainin

57、g sessions Certify to an employee handbook which contains corporate policies on important topics,including:-Discrimination and harrassment-Our Code of Ethics-Health and Safety-Weapons Policy and Workplace Violence Receive generous family leave,healthcare and childcare benefitsPeopleCEO LetterBusines

58、s-at-a-Glance Our Approach and GovernanceStakeholder EngagementPeopleProtecting Our PlanetSupporting CommunitiesEmpowering EntreprenuersCybersecurity and Data PrivacyGlobal Head of ESG Q&A141.https:/ named SHEIN the most inclusive retailer available in the UK with sizes ranging from a UK size 6 up t

59、o a UK size 26 an nearly 90,000 plus size options 1CEO LetterBusiness-at-a-Glance Our Approach and GovernanceStakeholder EngagementPeopleProtecting Our PlanetSupporting CommunitiesEmpowering EntreprenuersCybersecurity and Data PrivacyGlobal Head of ESG Q&ADiversity,Equity and InclusionSHEIN is built

60、 on a philosophy of respecting each persons individuality.We believe there is no one standard of beauty.Beauty is unique and personal.To deliver on this promise,we are proud to employ a global community of diverse colleagues,have strict anti-discrimination policies and are continually expanding our

61、training programs for employees.In 2021,SHEIN worked with nearly 1,500 designers frommore than 25 countries,including Australia,France,Italy,Malaysia,Mexico,Spain,UAE and UK.SHEIN X 100 Challenge finalists15Every year retailers overproduce tens of millions ofgarments so that their stores and supply

62、chains can remain full of product for customers to browse.As an e-commerce-only retailer,SHEIN avoids the need for this overproduction.It also prevents much of the waste and environmental impact associated with running a traditional retail store such as flooring,energy consuming lighting,fixtures fo

63、r displaying merchandise and plastic hangers,just to mention a few.PlanetFashion has an undeniable impact on the health of our environment.To protect our shared home,SHEIN is committed to lowering emissions and reducing waste at every stage of the value chain.This includes increasing our use of sust

64、ainable materials,adopting production techniques that save water and working with suppliers to implement responsible chemical management.Digital Printing to Reduce Water UseWe look for innovative ways to reduce our environmental impact.We also invested in thermal digital transfer and digital direct

65、printing technologies in an effort to reduce water use throughout the production process of SHEIN-branded items.Protecting Our PlanetCircular Economy and Product End-of-LifeSHEIN is currently developing innovative solutions and working with strategic partners to develop garment recycling programs an

66、d other initiatives to reduce post-consumer waste.Managing Greenhouse Gas Emissions(GHG)SHEIN is currently baselining energy consumption and establishing goals around renewable energy use in our own operations.We look forward to publicly disclosing our baseline GHG emissions calculations.In an effor

67、t to reduce GHG emissions while enabling a seamless customer experience,SHEIN partners with last-mile delivery services providers,to offer order pickup services at local merchants.The last-mile shipping providers often use electric vehicles to drop packages at a central location such as grocery stor

68、es,gas stations or salons making retrieval convenient for customers while reducing the environmental impact that would be required to deliver every order to customers homes.CEO LetterBusiness-at-a-Glance Our Approach and GovernanceStakeholder EngagementPeopleProtecting Our PlanetSupporting Communiti

69、esEmpowering EntreprenuersCybersecurity and Data PrivacyGlobal Head of ESG Q&A16Striving for Zero Waste in Our OperationsWe plan to announce a waste goal by the end of 2022 and have engaged with a leading waste management partner to help us achieve this goal.SHEIN Cares In-kind DonationsWe donate re

70、turned items that are in good shape but cannot be resold to customers or wholesalers for a variety of reasons.Through these programs,we simultaneously divert waste from landfills and provide clothing to underserved populations.CEO LetterBusiness-at-a-Glance Our Approach and GovernanceStakeholder Eng

71、agementPeopleProtecting Our PlanetSupporting CommunitiesEmpowering EntreprenuersCybersecurity and Data PrivacyGlobal Head of ESG Q&ASHEIN donates approximately 10,000 pairs of shoes per year.The majority are distributed to Soles4Souls,a U.S.-based non-profit organization that donates shoes to disast

72、er relief victims and supports micro-entrepreneurs who earn a living by selling donated shoes in their communities.SHEIN regularly donates unused clothing to The Midnight Mission,a leading homeless services organization in Los Angeles.We recently committed to donating 20 pallets of clothing at the e

73、nd of 2023,valued between$10,000-$20,000.17Responsible Materials Shifting towards more sustainable materials such as recycled polyester and increasing recycled materials in packaging are important components of our sustainability strategy.PolyesterSHEIN is incorporating more recycled polyester into

74、our products and intends to join leading organizations who provide oversight of standards and supplier certification.Wool and DownSHEIN will increase our sourcing of materials from certified suppliers of responsible wool and down,ensuring that animals are treated humanely in the production of these

75、fibers.Man-made Cellulosic Fibers(MMCF)SHEIN intends to source viscose from more certified suppliers,protecting ancient and endangered forests from destruction associated with MMCF production.ChemicalsSHEINs strict Code of Conduct clearly outlines proper chemical management in factories and in accor

76、dance with local regulations.The company is baselining current supply chain practices and plans to establish goals for achieving reductions in waste water discharge.PackagingSHEIN is increasing the use of recycled materials in packaging,as well as identifying opportunities to reduce the amount of pl

77、astic in packaging and evaluating alternative materials.CEO LetterBusiness-at-a-Glance Our Approach and GovernanceStakeholder EngagementPeopleProtecting Our PlanetSupporting CommunitiesEmpowering EntreprenuersCybersecurity and Data PrivacyGlobal Head of ESG Q&A18SHEIN and its beauty brand,SHEGLAM,su

78、pported the International Fund for Animal Welfare(IFAW)as part of the Wild Heart campaign.IFAW supports local organizations that trap,rehabilitate and release endangered animals across the world.IFAW additionally provides relief for animals in areas affected by natural disaster and fights against an

79、imal abuse.In Celebration of Earth Day,SHEIN planted 606,175 trees through Ecologi as a small step to combat climate change through reforestation.Through this initiative,SHEIN helped restore 150 acres of rainforest in Madagascar and helped create 59 jobs for the local planters.At the end of 2021,SHE

80、IN ranked#3 in the Ecologi Business Tree Leaderboard for most trees planted.CEO LetterBusiness-at-a-Glance Our Approach and GovernanceStakeholder EngagementPeopleProtecting Our PlanetSupporting CommunitiesEmpowering EntreprenuersCybersecurity and Data PrivacyGlobal Head of ESG Q&ASHEIN supports seve

81、ral non-profit organizations focusedon addressing reforestation and preserving animal habitats.Photo:Donal Boyd/IFAW19CEO LetterBusiness-at-a-Glance Our Approach and GovernanceStakeholder EngagementPeopleProtecting Our PlanetSupporting CommunitiesEmpowering EntreprenuersCybersecurity and Data Privac

82、yGlobal Head of ESG Q&ASHEIN CaresThrough SHEIN Cares,the philanthropic arm of our greater social impact strategy,we make monetary and in-kind contributions to organizations aligned with our sustainability and social impact focus areas:empowering entrepreneurs,helping communities thrive and protecti

83、ng the environment.The Light-A-Wish Campaign,was oneof our key philanthropic activities this year.In 2021,we dedicated financial resources to the following organizations:SHEINs Light a Wish campaign contributed$100,000 to the NAACP Legal Defense Fund efforts to achieve racial justice,equality,and an

84、 inclusive society and$100,000 to Together We Rise(TWR)to support children in the foster care system by providing them with proper luggage and other essentials,as well as bikes and scholarship funding.SHEIN also supported TWR with an additional$21,000 on Giving Tuesday and in conjunction with its LA

85、 Pop Up.SHEINs Rock the Runway Fashion Show supported several charities across the United States:A$100,000 grant to the National Action Network,an organization that works within the spirit and tradition of Dr.Martin Luther King,Jr.to promote a modern civil rights agenda that includes the fight for o

86、ne standard of justice,decency and equal opportunities for all people.A$250,000 grant to Youth Emerging Stronger to provide runaway,homeless and foster youth with safety,stability and housing,along with the relationships and resources to thrive now and in the future.Supporting Communities20CEO Lette

87、rBusiness-at-a-Glance Our Approach and GovernanceStakeholder EngagementPeopleProtecting Our PlanetSupporting CommunitiesEmpowering EntreprenuersCybersecurity and Data PrivacyGlobal Head of ESG Q&ASHEIN provided a first grant of$250,000 grant to Vital Voices,an organization focused on investing in wo

88、men leaders who are solving the worlds greatest challenges.A second grant in the same amount is slated for 2022.SHEIN provided a donation match up to$50,000 to Stand Up to Cancer(SU2C)in support of the development of the newest and most promising cancer treatments to help patients today.SHEINs Holid

89、ay Pop Up and cause campaign supported Girls Who Code with a grant of over$13,000 to help close the gender gap in technology and to change the image of what a programmer looks like and does.In celebration of Pride Month,SHEIN provided a$100,000 grant to The Trevor Project,the worlds largest suicide

90、prevention and crisis intervention organization for LGBTQ young people,providing free,confidential and secure 24/7 service when they are struggling with issues such as coming out,LGBTQ identity,depression,and suicide.21Together We Rise(TWR)works with hundreds of foster agencies,social workers,CASA a

91、dvocates and other partners to bring their programs to foster youth across the United States.TWR has provided thousands of foster youth across the country with new bicycles,college supplies and suitcases so that children do not have to travel from home to home with their belongings in a trash bag.CE

92、O LetterBusiness-at-a-Glance Our Approach and GovernanceStakeholder EngagementPeopleProtecting Our PlanetSupporting CommunitiesEmpowering EntreprenuersCybersecurity and Data PrivacyGlobal Head of ESG Q&APartner Spotlight22Vital Voices Global Partnership supports women leaders who are solving the wor

93、lds greatest challenges including gender-based violence,the climate crisis,economic inequities and more in their local communities.Vital Voices scales and accelerates the impact of these leaders work through long term investments to expand skills,connections,capacity and visibility.Over the last 24

94、years,they have built a network of 18,000 change makers across 185 countries,each of whom are daring to reimagine a more equitable world for all.In 2021,SHEIN formed a two-year partnership with Vital Voices,making a$500,000 commitment to support their advocacy work and programs intended to train the

95、 next generation of women advocates changing the world-at-large.CEO LetterBusiness-at-a-Glance Our Approach and GovernanceStakeholder EngagementPeopleProtecting Our PlanetSupporting CommunitiesEmpowering EntreprenuersCybersecurity and Data PrivacyGlobal Head of ESG Q&APartner Spotlight23As a large,g

96、lobal business,we have the opportunity and responsibility to create transformational change in the fashion industry and open the door for others.The examples here demonstrate the initiatives SHEIN pursued in 2021 to build a thriving fashion ecosystem and empower entrepreneurs.SHEIN XIn January 2021,

97、we launched SHEIN X,an incubator program that provides up-and-coming designers and creators the marketing,manufacturing,operational and financial support required to establish their brands on a global scale.SHEIN X allows designers to focus on what they love creating fashion while SHEIN helps them t

98、urn their designs into a business.Empowering EntreprenuersCEO LetterBusiness-at-a-Glance Our Approach and GovernanceStakeholder EngagementPeopleProtecting Our PlanetSupporting CommunitiesEmpowering EntreprenuersCybersecurity and Data PrivacyGlobal Head of ESG Q&ASHEIN X Designers by RegionUnited Sta

99、tesCanadaGermanyItalyFranceUnited KingdomSpainEuropean UnionArgentinaThailandSingaporePhilippinesIndiaMyanmarAustraliaMexico1,442designers in 2021SHEIN X launched3,000in 2022and we planto reach a total of24At SHEIN,cyber security is embedded in the DNA of our technology and supply chain ecosystems.W

100、e hold high standards in how we deploy and operate advanced security technologies and solutions to protect our global infrastructure,logistic networks,digital assets,and,most importantly,customer data.Our Global Security and Risk Management(GSRM)organization tackles global cyber threats and security

101、 challenges through process automation,operational excellence,and technological innovation.We commit to protecting our enterprise and customers by building cyber capabilities in the following key areas:Infrastructure and cloud security Secure software development Governance,compliance,and regulation

102、s Operational and technology risk management Disaster recovery and business continuity planning Enterprise and workforce protectionSHEIN also has a global Privacy Program aimed at protecting personal data in compliance with privacy laws and regulations,like the GDPR,LGPD and CCPA.Read our full data

103、privacy policy here.Cybersecurity and Data PrivacyCEO LetterBusiness-at-a-GlanceOur Approach and GovernanceStakeholder EngagementPeopleProtecting Our PlanetSupporting CommunitiesEmpowering EntreprenuersCybersecurity and Data PrivacyGlobal Head of ESG Q&A25Adam Whinston joined SHEIN as Global Head of

104、 Environmental,Social and Governance in 2021.Based in SHEINs Los Angeles office,Adam reports directly to SHEINs CEO and works with the companys global leadership and teams across the globe to establish and drive progress toward the companys comprehensive sustainability and social impact framework,as

105、 well as oversee the SHEIN Cares philanthropic programs.Adams wealth of experience in the ESG sector includes leadership positions at The Walt Disney Company,JCPenney and SGS.In the following interview,Adam discusses what brought him to SHEIN and his excitement about the companys future.Adam Whinsto

106、nGlobal Head of ESGQ&AHow did you decide to join SHEIN?What are some of the opportunities and challenges that interested you about SHEIN specifically?I made the decision to join SHEIN at a pivotal moment in the companys development,accepting the unique opportunity to develop robust long-term ESG pro

107、grams.SHEIN has emerged as a leader in the digital-first retail sector and,as such,a wide range of stakeholders are voicing interest in how we do business,including customers,investors,media and NGOs,not to mention the heightened regulatory environment retailers are experiencing globally.Im excited

108、to collaborate with senior leadership on initiatives that ensure SHEIN has a net-positive impact across the value chain.In addition,I am identifying ways for SHEIN to communicate the work that were doing in this area and increase transparency and communication.Because of SHEINs broad global reach,we

109、 have the chance to define the next era of socially conscious and sustainable business.I find that very exciting.CEO LetterBusiness-at-a-Glance Our Approach and GovernanceStakeholder EngagementPeopleProtecting Our PlanetSupporting CommunitiesEmpowering Entreprenuers Cybersecurity and Data PrivacyGlo

110、bal Head of ESG Q&A26What opportunities do you envision SHEIN pursuing to distinguish the company from other fast fashion brands when it comes to environmental sustainability and social impact?How can SHEIN become an industry leader?I believe that there is a lot of opportunity in the fashion industr

111、y to improve sustainability at all stages of the value chain.SHEIN has already set itself apart from other brands by developing automated supply chain technology to reduce deadstock and inventory waste.The fact that we dont operate physical stores significantly reduces the amount of waste created co

112、mpared to the traditional retail model.Sustainable material use is an area where I see a chance for growth,and I plan to incorporate more responsible fibers such as recycled polyester in SHEINs products.Were also working on programs to reduce waste at product end-of-life,including partnerships to ma

113、ke garment recycling more accessible.SHEIN partners with a large network of independent garment producers and lifestyle product suppliers,which creates a great opportunity to support sustainability and social impact work across a number of sectors.We plan to work with our partners to reduce the envi

114、ronmental impact of their operations and set science-based targets for greenhouse gas emissions and waste reduction.CEO LetterBusiness-at-a-Glance Our Approach and GovernanceStakeholder EngagementPeopleProtecting Our PlanetSupporting CommunitiesEmpowering Entreprenuers Cybersecurity and Data Privacy

115、Global Head of ESG Q&A27How can stakeholders ensure that this work is coming from a genuine place?I hope that our stakeholders understand that this report is a first step toward engaging with our community transparently and on a regular basis.We will be sharing additional information as new initiati

116、ves are set in place and we measure the impact of our existing programs.SHEINs commitment to sustainability and social impact will be proven through actions,not statements.We appreciate calls for continuous,meaningful progress and look forward to sharing details about our work as they become availab

117、le.What are some next steps that you envision in SHEINs sustainability journey?In the near future,we will be working with a number of partners to further improve our environmental footprint.Im specifically excited to develop circular economy programs by working with partners that will divert waste a

118、way from landfills at product end-of-life as much as possible.Our long-term work includes collaborating with designers to promote the use of sustainable fibers,assessing our operations on a broad scale to reduce our emissions and waste footprint,and working at all levels of the supply chain to ident

119、ify workplace safety and labor violations and develop corrective actions to remediate those non-compliances.How is ESG reflected within the culture of SHEIN?SHEINs leadership is very committed to developing sustainability and social impact programs in every aspect of the business.These programs are

120、not afterthoughts or isolated in their own sector theres a high degree of excitement and willingness to implement changes in the business that will create lasting positive impacts on communities and the environment.What do you like best about working at SHEIN?I was drawn to SHEIN because of the comm

121、itment of its leadership and the broad stakeholder support to make fundamental changes across our value chain and the understanding of the potential impact this will make across the globe.CEO LetterBusiness-at-a-Glance Our Approach and GovernanceStakeholder EngagementPeopleProtecting Our PlanetSuppo

122、rting CommunitiesEmpowering Entreprenuers Cybersecurity and Data PrivacyGlobal Head of ESG Q&A28About this report This report is a snapshot of how we do business,the initiatives we have activated in pursuit of our sustainability and social impact goals and our vision for the future.We recognize ther

123、e is always more to be done,and we look forward to showing you our continued progress.This is the first of many annual reports SHEIN plans to release publicly to provide a transparent look at the companys business model and share updates on the positive impact we are making on people,our planet and the fashion industry.Typically,SHEIN,we,us,our,and theCompany refer to SHEIN and all of its subsidiaries.This report covers the Companys activities between January 1 and December 31,2021.We welcome your questions and feedback viaCSRSHEIN.com.