For a company that appears to be lacking so many elements of an effective decarbonization plan, SHEIN’s claim to set “science-based targets to fight climate change” could be considered seriously misleading. The e-retailing giant reported staggering growth and a sky-high absolute emissions figure which threatens to derail the progress made by other, more traditional fashion retailers. SHEIN must drastically and immediately increase its supply chain transparency, publish a detailed, time-bound and ambitious plan to cut emissions and advance a renewable energy transition, and invest deeply and equitably in decarbonization across its supply chains.
Total Score
2.5/100 / 100
Emissions
45.6%
About the Clean Energy Analysis
The 2024 Clean Energy Close-Up builds on the foundation of the 2023 Scorecards. It provides an in-depth analysis of the tangible progress of 11 of the most influential global fashion brands. Their performance is measured against the runway to an equitable fossil fuel phase-out by 2030 on criteria related to energy efficiency and renewable energy, drawing in data shared publicly by manufacturers in their supply chains.
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* Category 1 not disclosed. Total Scope 3 emissions increased 45.6%
Score Breakdown
Score
1.5/40
| Stores and offices GHG Emission reduction target (Scope 1 & 2) | Reduce Scope 1 emissions by 42% by 2030, carbon neutral in Scope 2 by 2030 | ❌ |
| Stores and offices Renewable Electricity target (Scope 2) | 100% renewable energy by 2030, inclusive of RECS [118] | ✔ |
| Manufacturing emissions target (Scope 3) | Reduce absolute GHG emissions across entire value chain by 25% by 2030 | ❌ |
| Manufacturing Renewable Energy target (Scope 3) | No | ❌ |
| Public commitment to phase out thermal coal and transition to electrification/avoid harmful biomass | No | ❌ |
Score
0/10
SHEIN has published data for its market-based Scope 1, 2 and 3 emissions for 2021 and 2022. The company does not break down Scope 3 emissions by category. It is the only company in the research to have not disclosed its environmental footprint and supply chain data to the CDP.
SHEIN does not publicly share data on the portion of renewable energy used in its own operations, nor does it share the portion of supply chain electricity or thermal energy consumption. No transparency is given on supplier lists for the fast fashion brand. For these reasons, the company scored the lowest of all brands in this category.
Score
0/40
SHEIN’s emissions continue to grow at a staggering and alarming rate with Scope 3 emissions reaching 9,150,000 tons of CO2e, a 45% increase on the previous year. The company discloses that its production volume increased by 57% from 2021 to 2022 – a statistic that does not correlate with the company’s claims that it ‘sets science-based targets to fight climate change. [119]
As it stands, SHEIN is dangerously off track to meet the 2030 emissions reduction benchmark. This is not surprising given the overall low level of ambition to reduce GHG emissions across the entire value chain by 25% by 2030, instead of the required 55%.
What’s more, with no evidence of movement to embark on a coal phase-out with its suppliers nor engage them on the issues of burning alternative fuels like biomass, much progress is yet to be made before 2030.
The company’s goal to achieve 100% renewable energy in its own operations by 2030 is reliant on RECS. Instead, SHEIN should focus on high-integrity methods of decarbonization, not only for its own operations, but for its suppliers too.
Score
1/40
Step 1: There were few examples or specifics on how SHEIN is providing training, feasibility studies and non-financial resources to its supply base to help them improve on energy efficiency performance and the uptake of renewable energy. The company did report a one-off commitment of up to $7.6 million in programmatic funding to the Aii to design a strategy for energy efficiency implementation for over 500 of SHEIN’s partner facilities, in the hope of generating a 10% GHG reduction per facility each year. [120]
Step 2: It is reported that in 2023 SHEIN made over $2 billion in profits. [121] Despite this, there are scant examples of how it is currently financing the energy transition in order to reach its emissions reduction targets. The company reported in 2022 that it has started to work with Brookfield Renewable Partners to address GHG emissions in its supply chain and help them transition to renewable energy. Since this announcement, there has been no update on impact or progress.[122]
Step 3: With no disclosure to the CDP nor in-depth detail from the brand on supplier engagement, it is hard to ascertain if SHEIN’s procurement policies are supportive of a just energy transition. The company’s Environmental Impact Statement outlines that “Supplier Partners are encouraged to track, manage, and mitigate the environmental impact of their operations and strategies, including those of their suppliers.”[123] However, this is not written as a condition of supplier contracts, nor is it incorporated into a vendor scorecard like with other brands.
There was no evidence of SHEIN’s renewable energy advocacy efforts in China or the other countries where its supply base operates. However, in the US SHEIN has come under fire for spending hundreds of thousands of dollars lobbying the US government. [124]
Supply Chain Movement
Due to the lack of visibility on SHEIN’s supply chain and partner facilities, this analysis was unable to determine the energy performance and climate ambitions of its suppliers.