SHEIN, a global e-retailer of fashion, beauty and lifestyle products, on September 28 announced its target to reduce overall emissions across its entire value chain by 25% by 2030, as well as its greenhouse gas emissions inventory for 2021.
SHEIN has partnered with Intertek, a total quality assurance provider, to quantify and monitor its environmental impact. Greenhouse gas emissions are broken down into three categories, called scopes.
- Scope 1: emissions generated from SHEIN operations, accountable for less than 0.05% of overall emissions in 2021. The firm aims to reduce absolute emissions in this category by 42% by 2030.
- Scope 2: emissions from energy purchased to power SHEIN-owned facilities, accountable for less than 0.5% of 2021 overall emissions. The firm will purchase renewable energy certificates (RECs) for 100% of electricity used in SHEIN operations by 2030.
- Scope 3, emissions generated from SHEIN’s entire supply chain, accountable for more than 99% of 2021 overall emissions. The firm aims to reduce absolute emissions in this category by 25% by 2030.
SHEIN will work closely with expert partners to collaborate on a transition to renewable energy sources and carbon reduction plans.
The company is committing up to $7.6 million in programmatic funding to Apparel Impact Institute (Aii), a nonprofit organization dedicated to decarbonizing and modernizing the fashion industry supply chain, to build a roadmap for emissions reduction within SHEIN’s supply chain.
SHEIN has also begun working with Brookfield Renewable Partners, Brookfield’s leading global renewable power and decarbonization business, to address greenhouse gas emissions in its supply chain, powering the operations of SHEIN’s supply chain partners with renewable energy.
Carbon reduction efforts in Scope 3 also will be combined with transformative plans in both product manufacturing to accelerate the incorporation of recycled materials and supply chain transformation, focusing heavily on nearshoring and onshoring, which will work to dramatically reduce SHEIN’s reliance on airfreight.
As part of its sustainability journey, earlier this year SHEIN announced a $50 million Extended Producer Responsibility (EPR) fund, a commitment to the CanopyStyle Initiative to keep ancient and endangered forests out of the viscose supply chain and the launch of a purpose-driven clothing label to foster responsible customer choices and behavior.