Why is SHEIN Facing Scepticism Despite SBTi Approval?

Fast fashion companies are often associated with unethical practices, overconsumption and pollution.

Global fast fashion giant SHEIN has announced the validation of its net zero emissions targets by the Science Based Targets initiative (SBTi), marking what it calls a “milestone” in its climate journey. 

However, the company’s environmental and ethical record continues to draw criticism from both campaigners and regulators.

A step towards climate alignment

SHEIN’s science-based targets, officially approved by the SBTi, align with the Paris Agreement’s 1.5°C ambition. 

The fast fashion brand has committed to reaching net zero GHG emissions across its value chain by 2050.

By 2030, the company is aiming for a 42% reduction in Scope 1 and 2 emissions, 25% reduction in Scope 3 emissions and 100% renewable electricity across its operations.

By 2050, SHEIN is aiming for a 90% reduction in Scope 1, 2 and Scope 3 emissions.

"SBTi’s validation of our net-zero targets marks an important step in SHEIN’s decarbonisation journey,” says Mustan Lalani, Global Head of Sustainability at SHEIN. 

“We are committed to reducing emissions across our value chain and recognise that addressing Scope 3 emissions is a complex but critical part of that effort."

The road to decarbonisation

In collaboration with sustainability consultancy Anthesis Group, SHEIN has developed a detailed roadmap to meet its emissions reduction goals. 

The company outlines priority actions in two main areas: operational (Scope 1 and 2) and supply chain emissions (Scope 3).

To reduce emissions within and out of the company, SHEIN is aiming to transition to 100% renewable electricity by 2030, through on-site solar installations and verified Energy Attribute Certificates.

The company is also aiming to improve energy efficiency in SHEIN-run facilities and phase out fossil fuels in transport and operations – including EVs and reducing high-GWP refrigerant.

With 96% of emissions attributed to Scope 3, SHEIN aims to:

• Minimise use of virgin materials and scale use of lower-carbon alternatives like recycled polyester
• Invest in textile-to-textile recycling R&D through a partnership with Donghua University
• Support suppliers to shift to renewable energy and energy-saving production practices
• Reduce transport emissions via logistics optimisation and more efficient packaging.

Additional actions include stricter waste management protocols at directly managed facilities and the expansion of circular initiatives like SHEIN Exchange, its peer-to-peer resale platform.

Industry and regulatory challenges

Despite its public sustainability pledges, SHEIN’s broader operations remain controversial. 

In May 2025, the Irish Competition and Consumer Protection Commission (CCPC), along with EU partners, ordered SHEIN to rectify several platform practices that may breach EU law. 

These practices include fake discounts, pressure selling and obscured consumer rights.

The company is also under scrutiny for deeper structural issues, such as:

• Allegations of using child labour and enforcing excessive working hours in its supply chain
  
• Over-reliance on polyester, a high-emissions synthetic fabric
  
• Use of potentially toxic chemicals in garments
  
• Legal actions for copyright infringement by major fashion houses including Levi Strauss & Co., Dr Martens and Ralph Lauren
  
• A fine from New York State for privacy violations and warnings from EU regulators over deceptive marketing practices.

“If SHEIN delivers on its plan to grow approximately 25% over the near term, that would mean that carbon intensity / unit would have to fall by 85% to achieve their target,” Ken Pucker, Professor of the Practice at The Fletcher School at Tufts University, said on LinkedIn.

“I am dubious.”

SHEIN’s SBTi approval may represent an important symbolic shift for fast fashion. 

However, the road to authentic sustainability requires more than targets. 

Explore the latest edition of Sustainability Magazine and be part of the conversation at our global conference series, Sustainability LIVE. 

Discover all our upcoming events and secure your tickets today.

Sustainability Magazine is a BizClik brand