As the global fashion industry grapples with its environmental impact, the ultra-fast-fashion retailer Shein has surged ahead in generating carbon emissions, surpassing all major competitors. The unprecedented scale of Shein’s carbon footprint raises urgent questions about sustainability in the retail sector, especially as the company positions itself for further growth amid growing criticism.
In its most recent sustainability report, Shein highlights its carbon emissions as a critical concern. Over the past three years, these planet-warming emissions have nearly tripled, a staggering increase that has outpaced even its rapid sales growth. In 2023, Shein’s carbon emissions reached an astonishing 16.7 million tonnes of carbon dioxide equivalent. For perspective, this figure is comparable to the annual emissions of well-sized nations, prompting widespread scrutiny and calls for accountability.
Shein vs. The Competition
The sheer scale of Shein’s emissions is significant when compared to other fashion giants. For the first time in 2023, Shein generated more emissions than Inditex, the parent company of Zara, which had previously held the title as the largest carbon emitter in the fashion industry. Shein’s emissions were roughly double those of established competitors such as Nike, H&M Group, and LVMH. This rapid increase in impact raises alarm bells about sustainable practices within the fast fashion business model, which emphasizes quick production cycles and low prices.
However, comparisons regarding emissions require caution. Each company measures and reports its carbon footprint differently, often resulting in inconsistencies that can complicate analysis. This disparity fosters debate about the true environmental impact of ultra-fast fashion, yet it does not diminish Shein’s current role as a leader in emissions.
Growing Scrutiny and Responsibility
Despite the company’s growth, its environmental impact has become a focal point for scrutiny, particularly as Shein plans for a public offering. CEO Sky Xu acknowledged the necessity of addressing emissions in the company’s latest report, calling this challenge “particularly critical.”
In response to mounting pressures, Shein has begun to implement measures aimed at improving sustainability. These efforts include supporting suppliers in enhancing manufacturing efficiency and reducing shipment-induced emissions by localizing production closer to consumer markets. Moreover, the company launched a €200 million ($222 million) initiative focused on promoting textile-to-textile recycling—a move indicative of its willingness to invest in sustainable practices.
Yet the effectiveness of these measures remains to be seen. As Shein rapidly expands, the environmental benefits of its initiatives have been vastly overshadowed by its growth momentum. The journey towards substantial sustainability will require more than short-term efforts; it demands a fundamental reassessment of the ultra-fast fashion business model.
Looking Toward a Sustainable Future
Shein’s ambitious commitment to reducing emissions by 25% by 2030, validated through the Science Based Targets Initiative (SBTi), signals a recognition of its responsibilities. However, the challenge lies not just in setting targets but in transparently implementing the necessary changes to achieve them. It will be essential for the company to communicate its progress clearly, maintaining trust with consumers and stakeholders alike.
As the fashion industry collectively grapples with its sustainability challenges, the actions of leading companies like Shein will be closely monitored. Stakeholders from consumers to investors increasingly demand accountability, pushing brands to prioritize environmental stewardship. With Shein’s rapid growth juxtaposed against its massive carbon footprint, the pressure to evolve has never been greater.
The narrative of fashion’s sustainability is far from complete, and Shein’s next steps could set important precedents for the sector. The pathway to change may be arduous, but the repercussion of inaction could be catastrophic, not only for the industry but for the planet as a whole.
