Dáil Éireann Debate, Tuesday - 3 October 2023
286. Deputy Ivana Bacik asked the Minister for Enterprise, Trade and Employment if he will report on his representations to the IDA in relation to environmental and workers' rights concerns in respect of a company with EMEA headquarters in Dublin (details supplied). [42751/23]
View answerAs the Deputy will be aware, in May 2023, IDA Ireland client, SHEIN officially launched its Europe, Middle East and Africa (EMEA) headquarters, based in Dublin City Centre. The Dublin office will host SHEIN’s strategic IT hub for EMEA and will function as the centre of SHEIN’s operations in the region. SHEIN plans to increase their workforce in Dublin by filing roles in big data and analytics, security engineering, finance management and legal, as well as expanding SHEIN's graduate programme in Ireland. SHEIN aims to fill 30 key roles in the Ireland office by end 2023, with a view to increasing that number as the company grows.
SHEIN uses what it describes as a unique mobile-first, on-demand production model enabling them to identify trends and anticipate consumer demands. SHEIN then says it only produces an ultra-small batch of each style (100-200 pieces), gauges market response in real-time, and only responds with larger-scale production to meet demand if warranted. This results in significantly less waste and excess inventory in that the average unsold inventory level of the industry is between 25%–40%, whereas SHEIN states that it has reduced this to single digit levels.
Further, in April this year, SHEIN announced its US $70 million investment for the “empowerment” of the supply chain. Through the investments, the company aims to bolster efforts to continuously transform traditional production models with technology advancements, provide upskilling initiatives for workers, facilities enhancements, as well as services for the communities within the supplier ecosystem.
While IDA Ireland’s mission is, in essence, to attract and embed Foreign Direct Investment to Ireland in support of employment opportunities for our people, IDA Ireland’s 2021-24 strategy includes a focus on sustainable growth in all its forms, including the promotion of responsible and environmentally sustainable business practices among the Agency’s client base. Sustainability considerations, including a company’s corporate level approach to the environment, form part of IDA’s due diligence process in assessing investment projects for approval. In this regard, while engaging with SHEIN, the IDA sought and received assurances in relation to the company’s commitment to environmental sustainability transformation in the fashion industry, an area in which the company is heavily investing. The company demonstrated to the IDA that it has signed international pledges as well as committing funding to improve worker conditions in their partner companies and is a signatory to the United Nations Global Compact Agreement (UNGC) and supports its ten principles focused on human rights, labour, the environment, and anti-corruption.
More generally, in Ireland, a whole-of-Government approach has been adopted for the implementation of the UN Sustainable Development Goals (SDGs). In that respect, I wish to assure you that my Department is fully committed to the United Nation Member States' 2030 Agenda and the 17 Sustainable Development Goals (SDGs) and their 169 targets.
