Fast-fashion giant Shein under investigation over misleading practices: 'Shein should have to pay'
The combination of the rise of TikTok, as recounted by the BBC, and the lack of in-person shopping became its recipe for success in 2020. It grew over 1000% between 2019 and 2023, raking in over $32.5 billion in 2023 alone.
Shein has been making headlines for its attempts to list itself on the New York Stock Exchange and London Stock Exchange. However, there has been pushback on both due to concerns about links to China and the company's ESG practices.
Multiple organizations have launched investigations or made accusations about Shein's corporate behavior, Sustainability Magazine revealed. The Italian Competition Authority launched an investigation into Shein regarding its misleading advertising claims regarding sustainability, Greenpeace shined a light on the irresponsibility of producing disposable clothing, and there was backlash regarding labor standards at some of its factories.
Since these accusations, Shein has created a Global External ESG Advisory Board and Regional Strategy and Corporate Responsibility Committees, donated $5.3 million to the Africa Collect Textiles Foundation, launched collections using deadstock materials, and developed a new polyester recycling process.
However, many people are saying that this is a drop in the bucket compared to the damage the brand does every year.
"Assuming that carbon dioxide emissions were Shein's only negative externality and assuming that Shein had to pay $100 per metric tonne of carbon dioxide, then its $5.3 million donation represents 1/3 of 1% of what Shein should have to pay humanity for the societal costs of its annual carbon dioxide emissions," Ken Pucker, Professor of the Practice at The Fletcher School at Tufts University, wrote on his social media, according to Sustainability Magazine.
Shein started off 2025 by appointing a new global head of sustainability, Mustan Lalani.
"The scale and complexity of this challenge are immense, but so is the opportunity to set a new standard for sustainability in the industry," he shared in a LinkedIn post. His goal is to reduce Shein's pollution by 25% by 2030, according to Sustainability Magazine.
What should the government do about the fast fashion industry?
Set strict regulations
Incentivize sustainable options
Use both regulations and incentives
Nothing
Click your choice to see results and speak your mind.
However, Shein launches 2,000 to 10,000 new pieces on its site every day and emitted 18.4 million tons of carbon dioxide in 2023 alone, according to Shein's Sustainability and Social Impact Report. While 25% would be great for a smaller company, Shein needs to take more responsibility for its environmental impact — from its use of textiles to its labor practices.
It's important to educate yourself more about greenwashing so you can spot it in the wild. You can also make a difference by thrifting instead of buying new, repairing clothing instead of discarding, and unfollowing brands that are not transparent about ESG practices.
Join our free newsletter for good news and useful tips, and don't miss this cool list of easy ways to help yourself while helping the planet.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
4 hours ago
- Yahoo
Shein releases alarming report about its business practices and products — here's what you need to know
Shein releases alarming report about its business practices and products — here's what you need to know While fast fashion giant Shein is making efforts to become more sustainable, a report shows its carbon pollution has increased by over 20% compared to 2023. What's happening? Shein has been in the spotlight for various issues, including its massive impact on the environment from high levels of pollution and waste. Shein's 2024 Sustainability and Social Impact Report outlined several areas the company is focusing on to improve: Equitable Empowerment (People), Collective Resilience (Planet), and Waste-Less Innovation (Process). These three pillars include goals such as sourcing responsible materials, decarbonizing its supply chain, designing circular systems, and expanding sustainable innovation. These are impressive strategies, but Shein has a long way to go before it can hit those targets. As Sustainability Magazine detailed, the report revealed that even though it's taking steps to cut carbon pollution, its Scope 3 emissions — indirect air pollution within a company's value chain — increased by 23.1% from 2023. Meanwhile, its Scope 1 and 2 pollution, direct and indirect air pollution from purchased electricity, respectively, soared to over 94% for dirty energy and nearly 33% for location-based pollution. The company's total heat-trapping air pollution in 2024 was roughly 28.9 million tons. "Like many companies, we face the complex challenge of decoupling our growth from resource consumption," the report noted. Shein said it is "actively" working on reducing its planet-warming pollution production in both its day-to-day operations and throughout its supply chain. Do you worry about the quality of the air inside your home? Yes — often Yes — but only sometimes Only when it's bad outside No — I never do Click your choice to see results and speak your mind. "As of May 2025, we have approved near- and long-term science-based emissions reduction targets with the Science Based Targets Initiative, and the SBTi has verified our net zero science-based target by 2050," the report continued. Why is Shein's pollution output concerning? Pollution released from manufacturing and other industrial activities contributes to poor air quality and higher global temperatures, which can result in more extreme weather, displacement for people impacted by disasters, and greater strain on the health of communities. As extreme weather events are becoming stronger, longer, and more frequent worldwide, it's concerning that Shein's pollution levels are moving in the wrong direction. Aside from the negative effects of pollution on people and the planet, fast fashion also creates massive amounts of textile waste and requires tons of resources to support its operations. According to 100 billion garments are produced each year, and more than 101 million end up in landfills (sometimes after just seven to 10 uses). That's not entirely the fault of companies, but they do encourage people to constantly replace garments because they're typically of poor quality and don't last long. Because most fast fashion clothing is made of synthetic fibers that shed easily, the industry is a huge source of microplastic pollution, which ends up in waterways, the soil, and other areas in the environment. Since the industry prioritizes the rapid production of trendy, inexpensive clothing, it also requires the use of immense amounts of water, chemical dyes, and energy. What is Shein doing to help the planet? Sustainability Magazine explained that the company set a goal to supply all of its energy for operations from renewable sources by 2030, through both on-site solar panel installation and the purchase of energy attribute certificates. It has already made impressive strides, as 76% of its electricity for operations came from renewables last year. In addition, it plans to deploy hundreds of electric vehicles for warehousing and logistics needs in China. As far as reducing waste, Shein has implemented recycling at all 33 of its warehouses in China and its Center of Innovation for Garment Manufacturing. According to the report, these measures have led to a 95% recycling rate. It appears the fashion world could be slowly becoming more sustainable, but in the meantime, there are plenty of thrift stores and eco-friendly clothing brands that offer high-quality items at major discounts, and you can feel good knowing they benefit the planet. Join our free newsletter for good news and useful tips, and don't miss this cool list of easy ways to help yourself while helping the planet. Solve the daily Crossword
Yahoo
16 hours ago
- Yahoo
Fashion giants Shein and Temu in hot water after secret shopper investigation: 'Shocked'
Fashion giants Shein and Temu in hot water after secret shopper investigation: 'Shocked' Online fast-fashion giants Shein and Temu are facing pressure from European regulators after a secret shopper investigation uncovered serious safety violations in a range of their products. What's happening? The European Commission is cracking down on Shein and Temu after discovering dangerous and noncompliant products sold through the platforms. These include baby teethers with choking hazards, sunglasses with no UV protection, and children's raincoats laced with toxic chemicals. A report from members of the European Parliament also found banned substances linked to fertility and developmental harm in cosmetics sold on the sites. EU Justice Commissioner Michael McGrath said he was "shocked" by the findings, as reported by Euro Weekly News. This news is surfacing as the EU struggles to manage an overwhelming influx of imported goods. In 2024, the bloc received 4.6 billion cheap shipments under €150, double the number from the year before. Why are discount and fast-fashion retailers such as Temu and Shein concerning? These violations are putting people at risk. From toxic chemicals to unsafe children's products, the quality issues show how ultra-cheap imports are more dangerous and problematic than people think. In 2023, the EU issued a record 4,137 alerts for unsafe nonfood products. Shein's and Temu's business models are also concerning. Many of their items aren't made to last, feeding into the global mountain of landfill waste. About 101 million tons of textile waste are generated every year. And in the U.S., about 85% of all textiles end up in the dump each year. To make things worse, European companies that play by the rules face higher compliance costs, putting them at a disadvantage compared with low-cost international sellers skirting regulations. What's being done about it? In response, the EU is considering removing the €150 duty-free threshold and introducing a per-package fee to better fund customs, which is already being overwhelmed by the sheer number of orders. McGrath also plans to raise the issue with Chinese officials at the upcoming EU-China summit. Shein has responded by pointing to its compliance investments, and Temu shared a report about its seller vetting and compliance checks. But so far, EU officials remain unconvinced. Consumers can do plenty to curb the environmental effects of fast fashion and cheap retailers. First, rethink your shopping habits. Shopping secondhand can save money while cutting waste. Plus, thrifters often find luxury or valuable items at dirt-cheap prices. Learn about better alternatives in this guide to breaking up with fast fashion. While the scale of the issue is massive, awareness and action from everyday shoppers can help hold retailers accountable for the true cost of cheap goods. Which of these factors would most effectively motivate you to recycle old clothes and electronics? Giving me money back Letting me trade for new stuff Making it as easy as possible Keeping my stuff out of landfills Click your choice to see results and speak your mind. Join our free newsletter for good news and useful tips, and don't miss this cool list of easy ways to help yourself while helping the planet. Solve the daily Crossword
Yahoo
a day ago
- Yahoo
Shein, Temu expected to raise prices as de minimis loophole closes this month
A trade loophole that allows for low-value goods to be shipped to the U.S. duty-free is set to end on Aug. 29 after President Donald Trump signed an executive order last month to sunset the de minimis trade agreement. Packages valued at $800 or less sent to the U.S. outside of the international postal network will now face "all applicable duties," the White House said in July. Shein and Temu are two popular fast fashion brands that have attracted American shoppers looking to place large orders at heavily discounted costs and often with free shipping. With the trade loophole ending, U.S. consumers are bracing to see rising prices, including in their once-cheap fast fashion orders. Here's how consumers could be affected by the policy change: Shein and Temu sell a range of products, including clothing, furniture and more that arrive quickly and cheaply. Over half of all packages with de minimis exemptions come from China, and more than 30% of all daily packages shipped under de minimis are from Temu and Shein, Reuters reported in February. A provision in the Tariff Act of 1930 allows for de minimis exemptions, which has become the primary route for e-commerce imports from China to enter the U.S. According to a congressional report from February, between 2018 and 2023, Chinese exports of low-value, single packages increased dramatically from $5.3 billion to $66 billion. Shein, Temu prices have gone up: We tracked some items to see how much. Shein and Temu announced in early April that prices would be rising on both platforms in response to changing trade policy between the U.S. and China. They have yet to announce how much their prices will increase once the de minimis trade loophole ends at the end of August. Eliminating the loophole for China would have "far-reaching negative effects for Americans, particularly poorer consumers," according to libertarian think tank the Cato Institute. Republican U.S. Senator Jim Banks of Indiana hailed the executive order, saying "for too long, countries like China have flooded our markets with duty-free, cheap imports." Contributing: Kinsey Crowley and staff, USA TODAY; Reuters This article originally appeared on USA TODAY: Why Shein, Temu could raise prices as de minimis ends in August
