According to Shein’s sustainability report, which was made public on Friday, the fast-fashion retailer’s carbon emissions from product transportation increased by 13.7% in 2024. Compared to the 7.49 million metric tons in 2023, the amended 2024 total was 8.52 million metric tons of CO₂ equivalent. Following a methodological upgrade, the company also increased its 2023 transport emissions estimate by 18%. Shein reported 6.35 million metric tons for 2023 last year. Shein’s transport emissions surge reflects its growing environmental footprint.

Due to the increasing use of air freight, Shein’s 2024 transport emissions are more than three times greater than those of Inditex, the company that owns Zara. Inditex recorded 2.61 million tons of CO₂e in its 2024 fiscal year, a 10% increase from 2023.

The company wants to cut Scope 3 (indirect) emissions by 25% from 2023 levels by 2030. The Science-Based Targets Initiative approved these goals last month.

Changes in Sourcing and Logistics

Compared to traditional retailers relying more on container shipping, Shein employs air freight, a carbon-intensive approach, to deliver inexpensive apparel from China to customers in 150 worldwide markets. However, as part of its emissions reduction goal, the company stated that it increased the usage of road and marine freight in 2024.

To reduce emissions, delivery delays, and transportation expenses, the company also intends to produce, package, and ship closer to consumers. Although the company is increasing production in Brazil and Turkey, most of its products are sourced from 7,000 suppliers in China.

Following the report’s publication, Executive Chairman Donald Tang stated that localized production sites were being established in nations like Brazil and Turkey during a speech at the Viva Technology conference in Paris. He acknowledged that there was still more work and that progress was ongoing.

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Auditing and Policy Pressure

Citing environmental concerns, the French Senate approved an amended fast fashion law on Tuesday that prohibited Shein and Temu’s advertising.

Shein ended 12 supplier agreements in 2024 instead of just five in 2023 because of policy breaches. In 2024, the company carried out 4,288 on-site audits of Chinese suppliers and subcontractors, an increase from 3,990 in 2023.

Shein claims that its demand-driven production strategy reduces waste and unsold inventories. Shein’s transport emissions surge has added urgency to its need to diversify its supply base due to environmental pressures and U.S. taxes on Chinese goods, particularly because the U.S. market continues to be its largest.

Due to regulatory delays in China, Shein is now aiming for a Hong Kong IPO rather than a London listing, as was initially intended.

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