Increase in Shein's Emissions: Planet-polluting Fashion Brand Experiences a 9.7% Surge in Emissions
Fast fashion retailer Shein, one of the world's largest clothing sellers with an estimated value of $30 billion, has come under scrutiny for its carbon footprint. According to recent reports, Shein is classified as the most polluting fast fashion retailer, with its annual emissions from manufacturing, dyeing, assembly, and transportation increasing by 13.7% compared to 2023. If Shein were a country, it would emit as much as Lebanon.
However, Shein is not standing still in its efforts to reduce its carbon emissions and improve sustainability. The company has unveiled a comprehensive sustainability strategy, complete with specific measures and initiatives aimed at addressing its environmental impact.
At the heart of Shein's strategy is a commitment to achieving net-zero emissions across its entire value chain by 2050. This ambitious goal has been approved by the Science-Based Targets initiative (SBTi), a credible international standard for emissions reduction targets. To reach this target, Shein plans to reduce Scope 1 and 2 emissions (direct operations and energy use) by 42% and Scope 3 emissions (supply chain and logistics) by 25% by 2030.
Shein's approach encompasses a variety of strategies. The company is expanding renewable energy use and improving energy efficiency at supplier factories, conducting energy audits and making efficiency upgrades at 28 supplier sites, which reduces emissions by about 46,000 tonnes of CO₂ annually. Furthermore, Shein has encouraged rooftop solar installations at 31 factories (with 10 more in progress), cutting an estimated 12,140 tonnes of CO₂ equivalent.
To tackle transportation emissions, Shein is reducing its reliance on air freight (which is very carbon-intensive) and increasing the use of rail and sea freight. Nearshoring production to countries like Turkey and Brazil has already cut emissions by over 314,000 tonnes of CO₂, plus a further 49,578 tonnes saved from cutting air transport.
In terms of material innovation, Shein is increasing the use of high-quality deadstock materials and scaling textile-to-textile recycled fiber use, helping to reduce waste and resource consumption.
Shein's sustainability efforts also include strengthening governance and transparency. The company established an External ESG Advisory Board of independent experts and created the SHEIN Foundation to consolidate philanthropic and sustainability efforts under one structure, aiming to strengthen oversight.
Despite these efforts, Shein's overall emissions increased significantly in 2024, with supply chain emissions rising nearly 10%, and transport emissions up almost 14%. The company acknowledges more work is needed to meet its ambitious climate goals.
In summary, Shein is pursuing a multi-faceted sustainability approach involving carbon reduction targets, operational efficiency, renewable energy, supply chain improvements, material innovation, and governance enhancements. However, the scale and pace of its growth continue to pose significant challenges to drastically reducing its carbon footprint in the near term.
The fashion industry, including Shein, faces global scrutiny over its environmental impact, particularly in markets like the U.S. and Europe. Fast fashion contributes to the depletion of aquifers and the dumping of dyes into rivers. The fashion industry generates 92 million tons of textile waste each year and is responsible for 10% of global CO2 emissions.
Shein's rapid production cycles and reliance on air transport have been criticised for their deep social and environmental impacts. The use of air transport by Shein is equivalent to the annual use of almost 2 million gasoline cars, according to U.S. Environmental Protection Agency estimates.
Shein's annual sustainability report was published on June 14, 2025, providing a comprehensive overview of the company's progress and challenges in its sustainability journey. As Shein continues to grow, it will be crucial for the company to address its environmental impact and work towards a more sustainable future.
- Shein's comprehensive sustainability strategy includes a commitment to achieving net-zero emissions across its entire value chain by 2050, demonstrated through specific measures and initiatives aimed at reducing its carbon emissions and improving sustainability.
- To reach this target, Shein plans to reduce Scope 1 and 2 emissions (direct operations and energy use) by 42% and Scope 3 emissions (supply chain and logistics) by 25% by 2030, using various strategies such as expanding renewable energy use, improving energy efficiency at supplier factories, and reducing reliance on air freight.
- In terms of environmental science and finance, Shein's efforts to address climate-change are significant, considering the fashion industry's contribution to 10% of global CO2 emissions, making it a critical aspect of the industry's future in the face of growing environmental concerns and regulations.
