Shein sets SBTi-approved emission reduction targets
Fast fashion giant lays out dramatic decarbonisation goals, but critics point to the reality of its fast-rising emissions.
Online fashion retailer Shein has had its climate goals approved by the Science Based Targets initiative (SBTi).
The Chinese firm, now based out of Singapore and operating under the name Roadget Business Pte, was added to SBTi’s database after its near- and long-term decarbonisation targets were deemed consistent with limiting global warming to 1.5°C.
It has pledged to reduce its absolute Scope 1 and 2 emissions by 42% and its Scope 3 value chain emissions by 25% by 2030.
All emissions will fall 90% by 2050 under the targets.
The cuts must be made against Shein’s performance in 2023, a year in which its emissions nearly doubled, from 9.17m metric tonnes in 2022, to 16.68m.
They rose 51% between 2021 and 2022, too, prompting some observers to question the viability of its new short-term targets.
Ken Pucker, a sustainable business professor at Tufts University in the US, said he was “dubious” about the firm’s ability to meet them.
“Assuming that emissions grew by 20% (conservative) in 2024 (which has yet to be reported), Scope 3 emission would actually have to decline by 37% in absolute terms in the next 5+ years,” he wrote on social media.
Shein plans to reach the goals with energy efficiency measures and a switch to 100% renewable energy.
It will decarbonise its value chain by recycling, transitioning to lower-carbon materials and shifting to greener transportation.
The company’s commitment to net zero may have been in part prompted by its ongoing efforts to list on the London Stock Exchange, where regulators and many investors are keen to see issuers become greener. However, Reuters reported today that Shein is now pursuing an IPO in Hong Kong after failing to get the green light from Chinese regulators on its UK plans.
Shein did not respond to a request for comment about the viability of its new climate targets.