Shein’s rapid ascent in the fast-fashion industry has brought with it a significant environmental footprint. As the company gears up for a potential £50 billion initial public offering (IPO) on the London Stock Exchange, questions are being raised about whether its soaring greenhouse gas emissions are receiving adequate scrutiny.
Between 2022 and 2023, Shein reported an 81% increase in absolute emissions, reaching 16.7 million metric tons of CO₂ in 2023. This surge outpaced its 43% revenue growth during the same period, highlighting the environmental cost of its business model .(Scope3 Magazine)
Despite pledging to reduce emissions across all scopes by 25% by 2030, Shein’s current trajectory raises concerns about the feasibility of this goal. The company’s reliance on low-cost, high-volume production, primarily in China, contributes significantly to its carbon footprint. Moreover, Shein’s use of artificial intelligence to predict consumer demand and manage inventory has been criticized for potentially exacerbating overproduction and environmental degradation .(Scope3 Magazine, AP News, Time)
In addition to environmental concerns, Shein faces scrutiny over its labor practices. The company has been investigated for potential links to forced labor in China’s Xinjiang region, particularly concerning cotton sourcing . While Shein has implemented measures such as isotopic testing to verify cotton origins and increased supplier audits, critics argue that these steps may not be sufficient to ensure ethical labor practices across its extensive supply chain .(Circulaire)
As Shein seeks to attract investors and gain regulatory approval for its IPO, the company faces mounting pressure to address these environmental and ethical challenges. Without substantial changes to its business model and greater transparency, Shein’s sustainability claims may continue to be met with skepticism.(The Times)
