Fast-fashion giant Shein reported a 13.7% increase in carbon emissions from transportation in 2024, according to its latest sustainability report released on Friday. The company also revised its 2023 emissions figure, which is now 18% higher than previously disclosed, following a recalculation of its reporting methodology.
The report shows that emissions related to transporting goods to and between Shein facilities, as well as to customers — including returned items — reached 8.52 million tonnes of CO2 equivalent (CO2e) in 2024, up from a restated 7.49 million tonnes in 2023. The initial 2023 figure had been reported as 6.35 million tonnes.
Shein’s logistics strategy relies heavily on air freight, enabling the company to ship low-cost garments directly from over 7,000 suppliers in China to consumers across global markets. This model, while key to its rapid delivery promise, is notably more carbon-intensive than the maritime routes preferred by traditional apparel retailers.
In contrast, Inditex, the owner of Zara, reported 2.61 million tonnes of CO2e in transport emissions for its 2024 financial year — less than a third of Shein’s total.
To address the environmental impact and mounting scrutiny, Shein said it has expanded its use of sea freight and trucking and plans to localise more of its production, packaging, and shipping operations. The company aims to reduce delivery times and shipping costs while mitigating emissions by operating closer to end markets.
Shein has also broadened its sourcing network beyond China, developing supplier bases in Brazil and Turkey. This shift is partly driven by the imposition of steep tariffs on Chinese goods by the United States, which remains Shein’s largest market.
In May, the Science-Based Targets Initiative approved Shein’s emissions reduction targets, which include a 25% reduction in Scope 3 (indirect) emissions by 2030, using 2023 as the baseline.
As the company continues its global expansion, it is seeking to go public. Following regulatory challenges in China, Shein has shifted its focus from a proposed London listing to pursuing an initial public offering in Hong Kong.
-Reuters
