Shein’s Transport Emissions Surge Amid Fast Fashion Scrutiny and IPO Ambitions

by Adetoun Tade
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Shein’s Transport Emissions Surge Amid Fast Fashion Scrutiny and IPO Ambitions

Shein’s carbon emissions from transporting products jumped 13.7% in 2024, reaching 8.52 million metric tons of CO2 equivalent, according to the company’s newly released sustainability report. This figure is more than triple that of Zara-owner Inditex, as Shein continues to rely heavily on air freight to deliver low-cost garments from its vast network of Chinese suppliers to over 150 markets worldwide.

The 2024 update also included a recalculation of Shein’s 2023 transport emissions, which were revised upward by 18% to 7.49 million metric tons of CO2e, highlighting the intensity of its direct-to-consumer, air-shipping model compared to competitors who ship largely via container vessels.

In response, Shein says it’s taking steps to reduce its carbon footprint by expanding sea freight and localizing production in countries like Brazil and Turkey. “Are we fast enough? Are we perfect? Of course not,” said Executive Chairman Donald Tang at the VivaTech conference in Paris, acknowledging the complexity of cutting emissions at scale.

This effort comes as France moves to tighten fast fashion regulations. On Tuesday, the French Senate approved a revised law that could ban advertising by companies like Shein and Temu due to their environmental impact.

Despite criticism, Shein defends its on-demand model as waste-reducing, citing minimal unsold inventory compared to traditional retailers. The company has also committed to reducing its Scope 3 emissions by 25% by 2030, a target recently validated by the Science-Based Targets Initiative.

Facing U.S. tariffs on Chinese goods, Shein is accelerating supply chain diversification while shifting IPO ambitions to Hong Kong after setbacks in London and China. The company terminated 12 supplier contracts in 2024 over policy violations, up from five in 2023, amid ongoing scrutiny over labor conditions.

Swifteradio.com

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