SHEIN has become one of the biggest names in fast fashion, selling affordable clothes online to customers around the world. The company had revenues of around US$30–32 billion in 2023 and offered nearly 600,000 items for sale at any given time. However, SHEIN is also facing criticisms over its rising carbon footprint and net-zero initiatives.
The Fast Fashion Industry’s Environmental and Carbon Footprint
SHEIN’s business model uses artificial intelligence (AI) to spot fashion trends and produce clothes quickly in small batches. Items are then shipped directly to consumers, often by air. This model helps reduce the amount of unsold inventory, giving the company huge revenues. However, this approach also adds significantly to the company’s carbon footprint.
SHEIN’s 2023 Sustainability Report shows that total greenhouse gas emissions increased. They rose from 9.17 million metric tons of carbon dioxide equivalent (Mt CO₂e) in 2022 to 16.68 Mt CO₂e in 2023. That’s an 81% increase in just one year.
To put that into perspective, this is more than the annual emissions from 4 average coal-fired power plants. Most emissions come from the company’s supply chain and transportation. These areas are hard to control, but they cause most of its environmental impact.
Where SHEIN’s Carbon Emissions Come From
Greenhouse gas emissions are categorized into three groups or “scopes.” Scope 1 refers to emissions from a company’s direct operations, like its offices and warehouses. Scope 2 covers indirect emissions from the energy it purchases, like electricity. Together, these made up less than 1% of SHEIN’s total emissions in 2023.
The company reports that 72% of the electricity used at its facilities came from renewable sources last year, an increase from 68% in 2022. However, the bulk of SHEIN’s emissions—over 99%—fall under Scope 3. These emissions happen indirectly in the company’s value chain. They occur during manufacturing, shipping, and packaging.
In 2023, 61% of emissions came from supply-chain operations, while 38% were linked to transportation. To reduce these, SHEIN has begun sourcing more products from regions closer to its customers, like Brazil and Turkey. This “nearshoring” helped the company save over 314,000 tons of CO₂e by avoiding long-distance shipping routes.
Net-Zero Goals and Emissions Strategy
In response to growing environmental concerns, SHEIN has made several public commitments to reduce its carbon footprint. The company plans to reduce its Scope 1, 2, and 3 emissions by 25% by 2030, using 2023 levels as a starting point. It also aims to use only renewable electricity in its direct operations by the same year.
Longer-term, SHEIN has committed to achieving net-zero emissions across its value chain by 2050. These goals have been submitted to the Science-Based Targets initiative (SBTi) and were recently approved.
- The path to net zero includes a 42% reduction in Scope 1 and 2 emissions and a 25% reduction in Scope 3 emissions by 2030.
The company aims to reach its climate goals by:
- Expanding renewable energy use
- Improving energy efficiency at supplier sites
- Reducing transportation emissions
In addition, SHEIN is preparing to rely less on air freight and more on rail and sea, which are less carbon-intensive. While these steps show progress, they will need to be scaled up to significantly lower the company’s total emissions in the coming years.
Supply‑Chain Initiatives and Efficiency Improvements
SHEIN has launched several projects aimed at cutting emissions across its supply chain:
- Energy audits and efficiency upgrades at 28 supplier sites—cutting about 46,000 t CO₂e/year.
- Encouraging rooftop solar at 31 factories, with 10 in progress—cutting around 12,140 t CO₂e.
- Nearshoring to Turkey and Brazil reduced emissions by 314,805 t CO₂e, and cutting air transport saved another 49,578 t CO₂e.
- Logistics partnerships using electric or hybrid vehicles, saving about 54,614 t CO₂e.
These actions are aimed at tackling Scope 3 emissions, which are harder to manage but represent the majority of SHEIN’s carbon output. By supporting its suppliers and improving logistics, the company is starting to take responsibility for its broader environmental impact.
Criticism and Greenwashing Concerns
Despite its climate pledges, SHEIN has faced strong criticism from environmental groups and industry observers. The company has a key issue: its emissions are increasing more quickly than revenue. This shows that its business model doesn’t match its climate goals.
Critics also argue that SHEIN’s reliance on Scope 3 reductions, which are outside of its direct control, makes its net-zero targets difficult to achieve in practice.
There are also concerns about labor practices and the credibility of some of its sustainability claims. In 2024, SHEIN disclosed child labor violations found during supplier audits. Labor watchdogs still report bad working conditions and very long hours at some factories.
In Italy, regulators are looking into the company for possible greenwashing. This means they may have misled consumers about their environmental achievements. SHEIN got a low score of 2.5 out of 100 in a recent ranking by Stand.earth. The report noted that the company’s emissions increased by almost 50% in just one year.
These issues show that while SHEIN is making some progress, it still has a long way to go in proving that its climate promises are genuine and effective.
Can SHEIN Match Its Speed With Sustainability?
SHEIN’s efforts to reduce emissions and improve sustainability are a step in the right direction. The company is starting to work with suppliers, cut transportation emissions, and invest in cleaner energy. Getting its net-zero targets approved by SBTi adds credibility to its climate strategy.
However, the real test will be whether SHEIN can turn its goals into measurable reductions. Emissions continue to rise, which means the company must scale up its efforts quickly to stay on track. Expanding renewable energy, improving factory efficiency, and reducing overproduction will be key.
Fast fashion, by nature, is resource-intensive. For SHEIN to become a leader in sustainability, it must go beyond statements and show that net-zero efforts can match the speed and scale of its business.
