Fast-fashion retailer Shein's transport emissions jump 13.7% in 2024
Shein uses mainly air freight to send cheap clothes directly from suppliers in China to shoppers around the world, a more carbon-intensive supply chain model compared with traditional apparel retailers that ship more of their products on container vessels.
Shein said it plans to produce, package, and ship closer to its customers as a way to lower emissions and cut delivery times and shipping costs. It increased its use of sea freight and trucking in 2024, according to the report.
Emissions from transporting products to and between Shein facilities, and to customers, including returns, were 8.52 million metric tons of CO2 equivalent in 2024, up from 7.49 million metric tons of CO2e in 2023, according to the report.
Shein's transport emissions for 2024 are more than three times those of Zara owner Inditex, which reported 2.61 million tons of CO2e for its 2024 financial year.
Shein said its 2023 emissions were recalculated after an update to its methodology. Last year it reported a 2023 figure of 6.35 million metric tons.
Founded in China and headquartered in Singapore, Shein sources most of its products from 7,000 suppliers in China, but also has a growing network of suppliers in Brazil and Turkey.
Steep tariffs imposed by the United States on Chinese goods have made it more urgent for Shein to diversify its supplier base, as the U.S. is its biggest market.
The company aims to go public and has shifted its focus to a Hong Kong initial public offering after failing to win Chinese securities' regulatory approval to proceed with a planned London listing.
Shein's emissions reduction targets, approved last month by the Science-Based Targets Initiative, are for a 25% reduction in Scope 3 (indirect) emissions by 2030, compared with 2023.
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