Fast fashion online retailer Shein plans to invest $15 million over the next three to four years to improve hundreds of factories in its supply chain.
In a statement, the controversial retailer said the investments would focus on physical improvements at suppliers’ factories as part of its Supplier Community Empower Program (SCEP).
More than 30 projects are to be completed by the end of the year; 100 by the end of 2023 and up to 300 within four years.
Shein also noted that all of its manufacturing operations have agreed to comply with Shein’s Responsible Sourcing (SRS) program, which ensures fair treatment of all workers under safe working conditions, and its Code of Conduct.
The company added that more than 2,600 independent audits were conducted in the past 12 months.
However, it said it was “determined to do more” and committed to doubling the $4 million a year it puts into its SRS program.
“We take our responsibility for the well-being of workers at all of our supplier operations very seriously,” said Adam Whinston, global head of ESG at Shein, in a statement.
“As part of Shein’s SRS program, we have worked diligently with our contractors to improve welfare and working conditions. We now aim to double our investment in the SRS program to further improve supplier farm management,” added Whinston.
The announcement follows a series of external investigations into Shein’s supply chain, including the recent investigation by Britain’s Channel 4, which aired a documentary on the Chinese company and the factories in its supply chain.
The investigation presented evidence that workers at two of Shein’s garment factories are working for less than threep apiece while working 18-hour shifts.
Independent investigation refutes previous reports
In response to Channel 4’s allegations, Shein said it conducted an independent investigation that disproved “most” of the claims made in the documentary.
Despite this, the company reduced orders from the two manufacturing companies by three quarters until they would comply with its code of conduct.
According to Shein’s own research, workers at both of these factories were paid wages that comply with local labor laws and regulations, the equivalent of between £1,162 and £1,212. Claims that wages are withheld or illegally deducted are also untrue.
In addition, the investigation found that the maximum daily working hours at both factories ranged from 12.5 to 13.5 hours, with workers having at least two to three days off per month.
Shein pointed out that while the number of hours is lower than claimed, it’s still above local regulations, giving suppliers until the end of December to rectify the situation.
As for the cent payment per finished garment, Shein said the number originally quoted referred to a per-step per-piece commission, rather than a full, finished garment.
Whinston added that the company has now rolled out a multi-channel feedback system for its workers at its contracted factories, allowing them to anonymously submit grievances and feedback across multiple channels.
This article originally appeared on FashionUnited.uk. Translated and edited by Simone Preuss.