The IDA has refused to say what assurances controversial fast fashion retailer SHEIN gave it on sustainability and workers' rights before opening its European headquarters in Dublin.
It was announced earlier this month that SHEIN had launched its EMA headquarters in Dublin. Minister for Enterprise, Simon Coveney said that he “warmly welcomed” the announcement that could create 30 new jobs in 2023. The company has also run several pop-up shops across the country.
There has been regular criticism of the Chinese fast-fashion company SHEIN’s environmental impact. There have also been concerns raised over their workers’ rights.
READ MORE: Eamon Ryan admits he's 'not fully aware' of SHEIN as he defends fast-fashion firm's Dublin launch
Social Democrats’ TD Catherine Murphy asked Minister Coveney in a parliamentary question if the Department of Enterprise or the IDA carried out “due diligence in advance of delivering support to SHEIN”.
She also questioned if either “discussed corporate responsibility with the organisation and or agents acting on its behalf” and Minister Coveney’s attention had been “drawn to industrial relations and environmental concerns” about SHEIN.
In response, Minister Coveney stated that SHEIN was an “IDA Ireland client”.
He said: “Sustainability considerations, including the company’s corporate level approach to the environment, formed part of the IDA’s due diligence process in assessing the investment project for approval.
“Environmental sustainability is a key consideration for the IDA when assessing an investment project for Ireland.
“While engaging with the company, the IDA sought and received assurances in relation to the company’s commitment to environmental sustainability and transformation in the fashion industry, an area in which the company says it is heavily investing.”
Minister Coveney also stated that SHEIN had demonstrated to the IDA that it had “signed international pledges and committed funding to improve worker conditions”.
When asked by the Irish Mirror what assurances had been given to them by SHEIN on environmental issues and workers' rights, the IDA refused to provide information.
A spokesman said: “The response by the Minister to the PQ regarding SHEIN outlines the process followed by IDA Ireland.
“The details of this process are confidential between IDA Ireland and its client companies.”
Deputy Murphy said that there should not be secrecy around these matters.
“The whole issue of commercial confidentiality is routinely pulled out. It cloaks accountability in some respects. If there isn’t transparency, how can there be accountability?”
Ms Murphy also said that there needs to be more awareness about the dangers of fast fashion and its impact on the environment.
“People need to understand where it is coming from, how it is produced and how exploitative it can be.”
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