Shein's transport carbon emissions rise in 2024
The retailer also disclosed that its 2023 transport emissions were 18% higher than previous estimates following a recalculation. The recalculated 2023 emissions, previously reported at 6.35 million tonnes (mt), reflect an updated methodology.
The company is shifting towards producing, packaging and shipping closer to its customers to reduce emissions and improve efficiency.
The company states that its strategic approach to reducing emissions is concentrated on the two categories that contribute most significantly to its carbon footprint: purchased goods and services, and upstream transportation and distribution.
These sectors are jointly responsible for 96% of its emissions, according to its short-term goals set for 2024.
In addressing transportation and distribution emissions, Shein will implement measures in two key areas.
The first is minimising transportation distances. It plans to refine the company's global logistics network and enhance route planning to favour land, sea or combined transport methods over air freight.
The goal is to localise production, packaging and shipping processes in proximity to the customer base. This strategy is intended not only to reduce emissions but also to cut down on delivery times and shipping expenses.
The second area is the enhancement of transport efficiency. It aims to transport its products more efficiently by adopting vehicles with lower emissions, such as electric or hybrid options, and by optimising load and packaging efficiency, maximising the capacity of each shipment and decreasing the total number of shipments.
The company's emissions reduction targets, which havea been approved by the Science-Based Targets Initiative (SBTi), aim for a 25% reduction in its Scope 3 emissions [indirect greenhouse gas emissions that occur in a company's value chain, but are not directly controlled by the company] by 2030 from 2023 levels.
In addressing supply chain concerns, Shein terminated 12 supplier relationships in 2024 due to policy violations - an increase from five in 2023.
The company also conducted 4,288 on-site audits of suppliers and subcontractors in China, up from 3,990 the previous year.
"Shein's transport carbon emissions rise in 2024" was originally created and published by Retail Insight Network, a GlobalData owned brand.
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