Fast Fashion, ESG & GHG Emissions: Is SHEIN Greenwashing?

The world’s largest fast fashion brand SHEIN had an estimated US$32.5bn revenue in 2023 and lists between 2,000 and 10,000 new items on its site every day.
The company’s enormous growth, more than 1,000% from 2019 to 2023, has also come with increased ESG impact.
“At SHEIN, our mission is to make the beauty of fashion accessible for all," says Chris Xu, CEO at SHEIN.
“However, we recognise that producing affordable apparel and delivering it quickly to our customers all over the world comes with significant challenges that we, along with the rest of the industry, must address.”
ESG controversies
Between 2022 and 2023, SHEIN reported absolute emissions growth of 81% alongside estimated revenue growth of 43% in the same period.
SHEIN’s 2023 sustainability report reads: “We recognise that we still have much more work to do on our climate mitigation journey and are committed to driving progress.”
The company has faced a number of greenwashing accusations since its rise to the top of fast fashion.
In September 2024, the Italian Competition Authority announced that it would launch an investigation into SHEIN’s website operator over possibly misleading environmental sustainability advertising claims.
Greenpeace accused SHEIN of “taking greenwashing to a new low” in 2022 over a pledge it made to donate US$14m to an NGO working with textile waste workers whilst still producing “disposable” clothing.
In 2021, SHEIN faced backlash over falsely stating its factories were certified by the International Organisation for Standardisation (ISO) and labour standards organisation SA8000 according to Reuters.
Representatives from SHEIN and Temu faced questions in the UK House of Commons on 7 January 2025.
Yinan Zhu, EMEA General Counsel at SHEIN, did not answer if the company uses cotton sourced from China amid questions over potential forced labour in Xinjiang.
A few weeks later, Yinan Zhu provided written evidence to the parliamentary committee chair that said SHEIN does not use cotton sourced from China in products it sells in the US.
SHEIN’s steps towards sustainability
In January 2025, SHEIN appointed a new Global Head of Sustainability, Mustan Lalani.
“My focus will be on embedding circularity, decarbonisation and strategic partnerships into the core of the business,” he wrote in a LinkedIn post.
“The scale and complexity of this challenge are immense, but so is the opportunity to set a new standard for sustainability in the industry.”
Mustan will lead the charge in hitting SHEIN’s target of reducing emissions across all scopes by 25% by 2030 from a 2023 baseline.
To reduce its Scope 3 emissions, the company is promoting the adoption of rooftop solar panels across its supply chain and is complementing this approach with cash incentives.
SHEIN is also looking to contribute to the circular economy movement – it has been a signatory of the World Circular Textiles Day coalition since 2022.
Overall, the proportion of packaging SHEIN procured that contained at least 50% preferred materials increased from 4.1% in 2022 to 16.2% in 2023.
Is SHEIN going public?
Reports say SHEIN filed papers to list on the New York Stock Exchange in late 2023, but faced concerns from politicians about its links to China.
In June 2024, it was reported that SHEIN filed initial paperwork to list on the London Stock Exchange.
At a UK parliamentary hearing in January, Yinan Zhou said she is "not able to comment on any IPO speculation".
Since these reports emerged, the company has made a lot of ESG announcements, including:
- Developed an innovative polyester recycling process with Donghua University
- Established the SHEIN Foundation and committed US$5.3m to the Africa Collect Textiles (ACT) Foundation
- Created a Global External ESG Advisory Board (EEAB) and Regional Strategy and Corporate Responsibility Committees
- Supported relief efforts for Hurricane Helene and Hurricane Milton
- Achieved Zero Waste to Landfill Certification for its Centre of Innovation for Garment Manufacturing
- Launched a €200m (US$208.5m) Circularity Fund in the UK and the EU and committed to investing €50m (US$52m) in broader ESG efforts
- Released the SHEIN X Rescued collection made using deadstock materials
Do SHEIN’s sustainability efforts make up for its ESG impact?
According to SHEIN’s Sustainability and Social Impact Report, the company emitted 16.7mt of CO₂ in 2023.
Ken Pucker, Professor of the Practice at The Fletcher School at Tufts University, wrote on social media: “Assuming that carbon dioxide emissions were SHEIN’s only negative externality and assuming that SHEIN had to pay US$100 / mt of CO₂ (which is far less than most credible estimates of the cost of carbon), then its US$5.3m donation represents 1/3 of 1% of what SHEIN should have pay humanity for the societal costs of its annual CO₂ emissions.
“In fairness to SHEIN, no fashion company currently pays society for its negative externalities (carbon, chemicals, water or unfair labour practices to name but a few).”
Maggie Gu, Co-Founder and General Manager of SHEIN, said in 2023: “We know we have an important role to play in preserving the resources we all share.”
“We’ve come a long way and we are evolving to ensure that our business practices are aligned with our customers’ goals and values.”
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