Fast fashion giant Shein has released its targets to reduce overall emissions across its entire value chain by 25% by 2030 and its greenhouse gas (GHG) emissions inventory for 2021—the year that will serve as the company's baseline for achieving its Science-Based Targets.
The stated targets: The 2030 goals, being submitted via a commitment letter for validation by the Science Based Targets Initiative (SBTi) and announced on Wednesday, are:
- Scope 1, emissions generated from Shein operations, accountable for less than 0.05% of 2021 overall emissions: Reduce absolute emissions 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: 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: Reduce absolute emissions by 25% by 2030.
For renewable energy: To reduce Scope 1 and 2 emissions, Shein plans to increase investments in energy-saving efforts across its operations, complemented by the purchase of renewable energy certificates (RECs).
- Since Scope 3 generates the largest portion of the emissions, Shein wants to works with expert partners to collaborate on a transition to renewable energy sources and carbon reduction plans.
- Shein has also begun working with Brookfield Renewable Partners for a transition to powering the operations of the company's supply chain partners with renewable energy.
- Brookfield Renewable is a leading player in renewable power, with 23,000 megawatts of generating capacity and 75,000 MW of development pipelines that include wind, solar, energy storage, distributed generation, carbon capture and other energy transition asset classes.
Making grants: Shein has also committed up to $7.6 million in programmatic funding to the Apparel Impact Institute (AII), a nonprofit dedicated to decarbonising and modernising the fashion industry supply chain, to help it build a roadmap for emissions reduction within Shein's supply chain.
- Shein's contribution will go directly to two existing AII programmes: Carbon Leadership, focused on carbon benchmarking, assessment and goal-setting, and Clean by Design, which helps textile production facilities reduce energy, water and chemistry use, while also reducing cost.
- AII will design a strategy focused on implementing energy efficiency projects at over 500 of Shein's partner facilities, generating an approximate 10% GHG emissions reduction per facility per year.
Distributing largesse: Shein, under intense criticism for its fast fashion promotion and practices, has been aligning with a number of initiatives:
- In June, Shein announced a $50 million Extended Producer Responsibility (EPR) Fund to Or Foundation for "the design and implementation of ecological and social sustainability strategies focused on clothing that has entered the global secondhand clothing trade and often leaves the secondhand trade as waste." The fund would be used over five years.
- In April, Shein joined the CanopyStyle initiative to keep Ancient and Endangered Forests out of the viscose supply chain and help conserve the world’s most vital forests, biodiversity, and climate.
What they said:
Today we're taking a significant step forward, announcing a new set of 2030 goals that will help us accomplish emissions reduction targets for our entire supply chain over the next seven year. Our partnerships with Brookfield and AII further demonstrate our commitment to implementing long-term initiatives to empower suppliers and work to promote sustainable innovation focusing on reducing carbon emissions. This announcement further solidifies our commitment to sustainability and corporate responsibility initiatives at a company level.
— Adam Whinston
Global Head of ESG
Shein
AII aims to reach as many suppliers as possible to decarbonise the fashion industry's supply chain. We will be applying our proven programmes and methodology to help Shein on its path towards bettering its supply chain.
— Lewis Perkins
President
Apparel Impact Institute
