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Yahoo
3 days ago
- Business
- Yahoo
Shein's Climate Ambitions Have Been Validated. Now What?
'I am dubious,' Kenneth Pucker wrote—succinctly and pointedly—on LinkedIn on Tuesday. The Fletcher School at Tufts University professor of the practice was expressing his feelings about Shein, which revealed the same day that it had attained a 'milestone' in its 'climate journey' following the Science Based Targets initiative's validation of its goal to reach net-zero greenhouse gas emissions across its entire value chain by 2050. This means it would remove more carbon dioxide from the air than it would release. More from Sourcing Journal EU Watchdog Says Shein Violated Bloc's Consumer Laws H&M Foundation's 10 Global Change Award Winners Have One Thing in Common Who Benefited From Shein, Temu Troubles? The Chinese-founded e-tail Goliath said it will achieve this through a 'decarbonization roadmap,' developed with advisory firm Anthesis Group, to reduce its absolute Scope 1 and 2 emissions—that is, those produced directly by Shein and the energy it purchases—by 42 percent and its absolute Scope 3 emissions—those produced by its suppliers—by 25 percent by 2030. Steps will include deploying only renewable energy at all directly managed facilities, phasing out fossil fuels in its operations by transitioning to electric vehicles, minimizing the adoption of virgin materials and cutting transportation distances by ramping up local procurement and optimizing logistical routes. 'SBTi's validation of our net-zero targets marks an important step in Shein's decarbonization journey,' Mustan Lalani, a Tetra Pak vet who joined the Singapore-headquartered company as its global head of sustainability in January, said in a statement. 'We are committed to reducing emissions across our value chain and recognize that addressing Scope 3 emissions is a complex but critical part of that effort. As we continue this work, we will build on our momentum and adapt our approach in line with evolving technologies, policies and industry best practices.' But Shein's planet-warming emissions have never declined year over year, Pucker noted. They have, in fact, nearly tripled over the past three years. In 2023, the Temu nemesis' carbon footprint swelled to 16.7 million metric tons of carbon dioxide, up 45 percent from the previous year and 175 percent from the year before that. The number outlaps not only the 16.4 million metric tons in emissions produced by Zara owner Inditex, fashion's previous top polluter, but also those of several countries. It wouldn't be hyperbole to say that Shein is the industry's biggest environmental offender. At best, Shein's plans are misleading because they focus on Scope 1 and 2 targets that account for less than 0.5 percent of its total emissions, said Rachel Kitchin, senior corporate climate campaigner at a Canadian watchdog group that ranks the ultra-fast-fashion purveyor last in its Fossil-Free Fashion Scorecard. At worst, its proposal is unattainable without severe changes to its production and distribution model, which is heavily reliant on coal-stoked power generation, high production volumes and extensive air freight, she said. 'We need to see Shein commit to concrete targets—with a goal to phase out on-site coal by 2030 and transition to renewable energy across supply chains—to take this plan seriously,' she said. 'Until the company stops flying millions of small packages around the world, commits to phasing out coal and actively supports a transition to renewable energy across its supply chain, we're deeply skeptical that this announcement is anything more than PR.' It's perhaps also worth noting that SBTi doesn't probe deeply into a company's underlying business model when reviewing a target, said Michael Sadowski, a climate and sustainability consultant and former Nike director of sustainable business and innovation. What the nonprofit looks at is the data shared voluntarily during target submissions to ensure that it meets the SBTi criteria. 'I don't have any inside info on Shein, and so observing their astronomical growth over the last decade, coupled with their business model, makes me question how they will reduce scope 3 emissions by 25 percent by 2030,' he said. 'I would like to see a detailed plan for how they will achieve this: Will they not ship individual packages by air? Will they fund renewable energy at suppliers or commit to long-term supplier relationships so these partners can invest in renewable energy? Will they invest in fuel switching at mills?' Sadowski said that fiber switching and 'supporting' manufacturers in transitioning to renewable energy alone won't help Shein reach 25 percent. He said he knows of only a 'small handful' of apparel and footwear brands that have reduced Scope 3 emissions on an absolute basis. They have done so only by investing a lot of money in manufacturers with which they have maintained longstanding relationships. Shein's announcement comes among rumors that it's pursuing a listing in Hong Kong after Chinese regulators, specifically the China Securities Regulatory Commission, failed to give it the go-ahead for a London IPO after Britain's Financial Conduct Authority greenlit the move. Unnamed sources told Reuters Wednesday that the company plans to go public in the special administrative region within the year. This would make it the third try at going public for Shein, which did not respond to a request for comment. Before its attempt in the United Kingdom, the Missguided owner was reportedly hoping for a New York debut. This was scuppered, it's been said, by a rare united front by Republican and Democratic lawmakers that threw conditions over concerns about China's influence and the potential forced labor of persecuted Muslim minorities. The retail giant has also had to grapple with questions of trustworthiness. Just this week, national consumer authorities in Belgium, France, Ireland and the Netherlands joined the European Commission to ask Shein to fix practices on its platform that appear to flout EU consumer law, including what they say are 'giving false or deceptive information about the sustainability benefits of certain products.' In 2024, Italy's antitrust agency opened an investigation into a company that manages Shein's online presence in the country over possible greenwashing. Shein has said that it is ready to cooperate openly with authorities. 'If Shein delivers on its plan to grow approximately 25 percent over the near term, that would mean that the carbon intensity unit would have to fall by 85 percent to achieve their target,' said Pucker, still unconvinced. 'Will they achieve their plan?' On the plus side, Shein's disclosure of SBTi-approved emissions reduction targets, when more than half of 250 major fashion brands fail to do so, is commendable in and of itself, said Liv Simpliciano, policy and research manager at Fashion Revolution, a grassroots organization that scores companies on their transparency—or lack thereof. But it's also what she calls the bare minimum. So far, Shein hasn't divulged its supplier list or annual production volumes, which activists say are necessary to verify brand claims and hold them to account. And by her estimation, only four brands—Asics, H&M Group, Marks & Spencer and Patagonia—have carbon reduction targets that meet the level of ambition that the Paris Agreement has determined will stave off the worst effects of climate change. 'That being said, targets are only as meaningful as the action that follows,' she said. 'The fashion industry remains far off track from delivering the rapid, large-scale emissions cuts that climate science makes unequivocally clear are needed. The polluter pays principle must apply: those with the largest footprints carry the greatest responsibility to act. Targets and ambition levels must match pollution levels.' More than anything, Peter Ford, a decarbonization consultant who previously worked at H&M Group, thinks that Shein whiffed a chance to have reduction goals with real bite. He said that while all companies need to interrogate their carbon emissions and set targets to reduce them, it is especially imperative that any company whose Scope 3 emissions account for 'practically all of its existing contributions to global heating' set targets that are 'high enough to be impactful.' 'The announced targets for Shein are small, and not even close to aligning with current industry-standard goal of 50 percent reduction by 2030 that UNFCCC Fashion Charter signatories have committed to,' he said, using an acronym for the United Nations Framework Convention on Climate Change. 'Industry giants H&M Group and Inditex have SBTis that are even more ambitious, and I feel Shein has missed an opportunity to highlight that it clearly understands the role it currently plays in contributing to global heating—and demonstrate a commitment to meaningfully reduce it.'
Yahoo
22-02-2025
- Business
- Yahoo
Fast-fashion giant Shein under investigation over misleading practices: 'Shein should have to pay'
Shein is now the most popular fast-fashion brand in the world. The brand launched in 2008 as other fast-fashion brands, like H&M and Forever 21, were dressing millennials in college. 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.
