Our efforts to reduce the environmental footprint of our products are guided by the following targets and aspirations:

• Reduce absolute Scope 1 and 2 GHG emissions by 42% by 2030^.
• Reduce absolute Scope 3 GHG emissions by 25% by 2030^.
• Reach net-zero GHG emissions across the value chain by 2050.
• Use electricity only from renewable sources for operations directly managed by SHEIN by 2030.
• Source 100% forest-safe viscose* and paper-based packaging** for SHEIN-branded products by 2025.
• Ensure all packaging sourced for SHEIN-branded products contains 50% preferred materials*** by 2030.
• Transition 31% of the polyester used for SHEIN-branded products to recycled polyester by 2030.
• Source 50% of SHEIN-branded products through our evoluSHEIN by Design initiative by 2030.

The Science Based Targets initiative (SBTi) has validated our net-zero science-based target by 2050 and approved our near and long-term science-based emissions reduction targets. SHEIN’s emissions reduction targets are from a 2023 base year.

“Scope 1” and “Scope 2” refer to emissions from SHEIN’s direct operations (including emissions from SHEIN-operated offices and warehouses, and emissions from our electricity purchases), while “Scope 3” refers to indirect emissions across SHEIN’s extended value chain, beyond our own operations (including emissions, which depend on our collaboration with our suppliers and other value chain partner).

We acknowledge that most of our emissions lie in Scope 3, and that we still have much work to do and are committed to driving progress, aligned to the company’s growth and expansion. In 2024, we partnered with sustainability consultant Anthesis Group to develop a decarbonisation roadmap to guide our progress toward meeting our near- and long-term emissions reduction targets

^ SHEIN’s emissions reduction targets are from a 2023 base year.

*SHEIN currently sources forest-safe viscose from producers awarded a ‘Green Shirt’ rating in Canopy’s Hot Button Report, indicating low risk of sourcing from Ancient and Endangered Forests (for more information on Ancient and Endangered Forests, please refer to Canopy’s Forest Mapper).

**SHEIN currently sources FSC-certified paper-based packaging for forest-safe paper-based packaging.

***Preferred materials used for packaging are recycled PE and paper packaging not sourced from Ancient and Endangered Forests.

Our strategic priorities for driving impact are to:

At SHEIN, we understand the role we have to play within our own operations and across our value chain in adapting to the impacts of climate change by supporting the transition to a low-carbon future. Addressing climate change will require systemic solutions and partnerships across multiple industries, bringing together governments, businesses, and local communities to transform how products are produced, transported, and consumed. We recognise that progress towards our net-zero ambitions will be a complex and long-term journey, one that will require significant time, resources, and close collaboration.

SHEIN is committed to reducing emissions across our value chain and has approved near and long-term science-based emissions reduction targets with the Science Based Targets initiative (SBTi); in 2025, the SBTi has also verified our net-zero science-based target by 2050 [1]. These targets are in line with the Paris Agreement’s goal of limiting global temperature rise to 1.5°C above pre-industrial levels, and are with reference to a baseline year of 2023:

Near-term targets (2030):

• Reduce absolute Scope 1 and Scope 2 emissions by 42% by 2030
• Reduce absolute Scope 3 emissions[2] by 25% by 2030
• Increase active annual sourcing of renewable electricity to 100% by 2030

Long-term targets (2050):

• Reduce absolute Scope 1 and Scope 2 GHG emissions by 90% by 2050
• Reduce absolute Scope 3 GHG emissions by 90% by 2050 [3]

Overall Net-Zero Target (2050)
• Reach net-zero[4] GHG emissions across our value chain by 2050

[1] Details of our targets can be found in the SBTi’s Target Dashboard, under Roadget Business Pte. Ltd. (owner of the SHEIN brand).

[2] In line with SBTi’s requirements, and in conformance with the GHG Protocol Corporate Value Chain (Scope 3) Accounting and Reporting Standard, the scope of the target includes Category 1 (Purchased Goods and Services), Category 3 (Fuel- and Energy-Related Activities), Category 4 (Upstream Transportation and Distribution), Category 5 (Waste Generated in Operations), and Category 12 (End-of-Life Treatment of Sold Products).

[3] In line with SBTi’s Corporate Net Zero Standard criteria, our long-term targets cover at least 90% of our total Scope 3 emissions.

[4] Per the SBTi Corporate Net-Zero Standard, corporate net-zero is defined as (1) Reducing scope 1, 2, and 3 emissions to zero or a residual level consistent with reaching net-zero emissions at the global or sector level in eligible 1.5°C-aligned pathways; and (2) Permanently neutralising any residual emissions at the net-zero target year and any GHG emissions released into the atmosphere thereafter.

In 2024, with the support of Anthesis Group, we developed a decarbonisation roadmap to guide our progress towards our near- and long-term emissions reduction targets. Through this process, we identified priority decarbonisation actions, focusing on areas with potential for greater emissions reduction impact, and evaluated them based on their technical, operational, and financial feasibility.

This assessment considered SHEIN’s business activities and future growth plans, current and projected market availability of solutions, and the evolving landscape and impact of global and national decarbonisation commitments and regulations, among other factors.[5] Our priority actions aim to reduce:

• Direct emissions within own operations, i.e. Scope 1 and 2 emissions from SHEIN-operated offices and warehouses, and emissions from our electricity purchases and
• Indirect emissions across our entire value chain beyond our own operations, i.e. Scope 3 emissions, which depend on our collaboration with our suppliers and other value chain partners.

In line with the SBTi Corporate Net-Zero Standard[6] , SHEIN intends to neutralise any residual emissions that remain after achieving deep absolute emissions reductions across Scopes 1, 2, and 3 by the net-zero target year of 2050. For any residual emissions that cannot be eliminated by the net-zero target year, SHEIN may explore carbon removal solutions consistent with SBTi requirements. The scale and approach to any such neutralisation will be determined closer to that time, taking into account technological progress, market availability and updated SBTi guidance.

[5] The emissions reduction impact and feasibility analyses were conducted on a best-efforts basis using the information available at the time of the study and may require periodic updates to account for changes in technological advances, business priorities, legislation or other national decarbonisation commitments, and industry decarbonisation efforts.

[6]Under the SBTi Corporate Net-Zero Standard (V1.3), achieving net-zero requires deep absolute emissions reductions of at least 90% across Scopes 1, 2 and 3 by the net-zero target year, with only residual emissions thereafter eligible for neutralisation through carbon removals. Near-term targets (e.g., 2030) are defined separately and must be met through emissions reductions alone, without reliance on offsetting or removals.

To reduce our Scope 1 and 2 emissions, we are focusing on the following priority actions:

• Transition to Renewable Energy Source: We are working to source 100% of the electricity used in operations directly managed by SHEIN from renewable sources by 2030. To do so, we will increase on-site electricity production through on-site solar photovoltaic (PV) installations at SHEIN-operated offices, warehouses, and other facilities, and the purchase of high-integrity Energy Attribute Certificates (EACs). Where we procure EACs, we ensure that renewable energy from the EACs obtained is generated in the same market boundary as the consuming facility.
• Improve Energy Efficiency at SHEIN-Operated Sites: We will refine our energy consumption monitoring and implement measures to optimise energy consumption across SHEIN-managed facilities globally to improve energy efficiency and reduce consumption.
• Phase out Fossil Fuels and Reduce Fugitive Emissions: We are taking steps to gradually eliminate the use of fossil fuels, such as natural gas, and fuel-powered vehicles and equipment in our own operations by transitioning to electric vehicles for owned business vehicles and equipment, such as forklifts. We also seek to reduce fugitive emissions, for instance, by switching to fire suppression systems with a lower global warming potential.

SHEIN focuses our Scope 3 decarbonisation efforts in areas where we have the largest emissions, in particular Purchased Goods and Services (Category 1) and Upstream Transportation and Distribution (Category 4), which account for approximately 96% of emissions under our near-term targets in 2025.

Purchased Goods and Services (Category 1)

Across the life cycle of our products, the largest proportion of emissions can be attributed to the production phase i.e., during raw material production, fabric and garment production, and packaging production. Key actions to reduce this category of emissions are as follows:

• Minimise the Use of Virgin Materials and Transition to Lower-Impact Alternatives: We are working to decrease emissions from product manufacturing by reducing the amount of virgin materials used in garment and packaging production and switching to alternatives with lower carbon footprints than conventional or status quo materials. We have also set the following near-term targets for our transition towards lower-impact materials, and will continue to review and update these as appropriate:
  1. Source 100% forest-safe viscose[7] and paper-based packaging[8] for SHEIN-branded products by 2025
  2. Ensure all packaging sourced for SHEIN-branded products contains 50% preferred materials[9] by 2030
  3. Transition 31% of the polyester used for SHEIN-branded products to recycled polyester by 2030
  4. Source 50% of SHEIN-branded products through our evoluSHEIN by Design initiative by 2030

In particular, scaling textile-to-textile recycling will be an important part of our circular transition – to this end, we had launched a multi-year research partnership with Donghua University, a university specialising in engineering and material sciences, to study how to drive commercially scalable production of recycled polyester fibres.

• Promote Lower-Impact Manufacturing Processes: We believe our suppliers are critical to our decarbonisation journey in reducing our Scope 3 emissions. We focus on (1) encouraging our suppliers to transition to renewable energy, and (2) working with our suppliers to drive efficiency and to deploy lower-energy processes such as thermal digital printing to help reduce their carbon footprint.

Upstream Transportation and Distribution (Category 4)

Like many online retailers, a significant portion of our emissions can be attributed to the transportation and distribution of our products to customers. To reduce our transportation and distribution emissions, we will focus on the following actions:

• Reduce Transportation Distances: This includes optimising our global logistics network and route planning to promote the greater use of land, sea, or multimodal routes, thereby reducing the need for air freight. In addition, we are working to produce, package, and ship closer to our customers, with the aim of lowering emissions, delivery times, and shipping costs.
• Improve Transport Efficiency: This includes working with our logistics partners to transition to lower-emission transport alternatives, such as electric or hybrid vehicles and more fuel-efficient vehicles. In addition, we work to improve load and packaging efficiency, which maximises single-load capacity and reduces the number of loads required.

Other Areas of Decarbonisation

Beyond focusing on areas where most of our emissions lie, our decarbonisation roadmap also includes the following actions:

• Waste Generated in Operations (Category 5): While emissions from waste generated in operations represent a smaller share of SHEIN’s overall Scope 3 footprint, reducing waste-related emissions supports both near-term efficiency gains and longer-term circularity objectives. SHEIN’s focus is on waste prevention and improved waste management practices across operations. We have updated our SHEIN Industrial Waste Management Guidelines[10], which apply to all sites under our direct management, including offices, distribution warehouses, and SHEIN’s Centre of Innovation for Garment Manufacturing (CIGM), to require closed-loop recycling of all industrial waste generated within these facilities, as well as the redirection of all non-recyclable waste towards energy recovery or non-hazardous treatment processes.
• End-of-Life Treatment of Sold Products (Category 12): End-of-life emissions are influenced by consumer behaviour, product design and the availability of recycling infrastructure. SHEIN’s approach focuses on enabling longer product use and improving end-of-life outcomes, recognising the indirect nature of influence in this category.
  To encourage our customers to engage in circular behaviour, we have launched initiatives such as SHEIN Exchange, a peer-to-peer resale platform, and continue to promote customer engagement content to raise awareness about the importance of the circular transition.

Together, these priority actions form the core of SHEIN’s decarbonisation strategy and underpin progress toward its near-term and long-term science-based emissions reduction targets.

[7] SHEIN currently sources forest-safe viscose from producers awarded a ‘Green Shirt’ rating in Canopy’s Hot Button Report, indicating low risk of sourcing from Ancient and Endangered Forests (for more information on Ancient and Endangered Forests, please refer to Canopy’s Forest Mapper).

[8] SHEIN currently sources FSC-certified paper-based packaging for forest-safe paper-based packaging.

[9] Preferred materials used for packaging are recycled PE and paper packaging not sourced from Ancient and Endangered Forests.

[10] These guidelines require the classification, recycling, weighing, and record-keeping of all industrial waste, as well as the documentation of downstream recycling operations and the redirection of all non-recyclable waste towards energy recovery or non-hazardous treatment processes. In addition, the guidelines set out requirements and procedures for the treatment and management of industrial waste at each stage of the process.

We report our emissions in accordance with the GHG Protocol Corporate Accounting and Reporting Standard. Our 2025 GHG emissions inventory (Scopes 1 to 3) were independently verified by Bureau Veritas, in accordance with ISO 14064-1:2018 and the GHG Protocol.

2025 GHG Emissions Inventory

Scope 1 and 2 Emissions

Our Scope 1 and 2 emissions are mainly linked to electricity usage in SHEIN-operated offices, warehouses, and logistics centres.

Our 2025 Progress

• In 2025, our total electricity consumption across globally managed operations was 275,723.2 MWh, an increase of 13.3% from 243,340 MWh in 2024. 85.1% of the electricity purchased for our own operations was derived from renewable sources, up from 76% in 2024. This includes 197,704 MWh from RE100-compliant EACs issued within the same market boundaries as the consuming facilities. Total energy consumption intensity was 15.0 MWh per Full-Time Equivalent (FTE). We also increased our on-site electricity production from solar energy, with 93.9 MW of capacity coming from solar photovoltaic installations installed or under installation across 16 of our facilities – a 66.8% increase in capacity compared to 2024. In 2025, we consumed 36,909.5 MWh of solar energy, corresponding to an estimated reduction of 19,576.4 metric tons of CO₂e.
• Since 2024, we have implemented 78 energy efficiency measures across 22 SHEIN-operated facilities in China, such as upgrading to high-efficiency lighting, optimising air‑conditioning operations, installing timer switches for fans and air compressors, enhancing energy management systems, and training employees in sustainable facility management practices. In 2025, these measures resulted in estimated electricity savings of 33,581 MWh of electricity, corresponding to an estimated CO₂e reduction of 19,934.1 tCO₂e.

Scope 3 Emissions

Analysis of our GHG emissions inventory shows that the majority of our emissions continue to occur beyond our direct operations, with nearly all of our carbon footprint attributed to Scope 3 emissions.

Our 2025 Progress

Category 1 – Making Our Products

Our emissions reduction initiatives in 2025 led to an estimated 316,842.8 tCO₂e avoided for Category 1. This represents an increase of 59.2% compared with an estimated 198,921 tCO₂e avoided in 2024, reflecting the expanded scope and implementation of targeted reduction measures in 2025.

1. Minimising the use of virgin materials and transitioning to lower-impact alternatives

• 9.2% of polyester directly sourced for SHEIN-branded products in 2025 was recycled, an increase from 6.7% in 2024, corresponding to an estimated reduction of 48,664.2 tCO₂e. Of this, 13.4% was textile-to-textile recycled polyester, up from 12.1% in 2024.
• We continued to find ways to reduce the use of virgin plastic by optimising express delivery bags and garment polybags, and increasing the use of recycled PE—19.7% of plastic packaging procured for SHEIN-branded products in 2025 contained at least 50% recycled PE (an increase from 17.0% in 2024). These efforts have helped to avoid 5,647 tonnes of virgin plastic. In total, our packaging initiatives have led to an estimated emissions reduction of 22,406.0 tCO₂e.

2. Reducing manufacturing emissions by supporting supplier decarbonisation

• We identified opportunities for fabric production factories to enhance resource efficiency, through measures such as the installation of low-energy dyeing and finishing technologies, low-bath-ratio dyeing machines and condensate heat-recovery systems, as well as energy efficiency measures including LED lighting upgrades, high-efficiency air compressors, intelligent stenter exhaust control and rooftop solar installations. The implementation of such measures, rolled out across 22 fabric production factories in 2025, led to estimated annual reductions of 6,778.4 MWh of electricity, 872,582 m³ of natural gas and 65,303.6 tonnes of steam, equivalent to an estimated reduction of 91,982.4 metric tons of CO₂e. As of the end of 2025, 123 suppliers in total have adopted measures in line with our energy efficiency guidelines.
• We continued to promote the use of lower-impact manufacturing processes such as Digital Thermal Transfer Printing in supplier facilities. Which reduced electricity use by 48,051.2 MWh, resulting in an estimated emissions reduction of 88,983.8 tCO₂e.
• As of the end of 2025, 142 Tier 1 and 2 suppliers had installed rooftop solar photovoltaic systems by the end of 2025, with installed capacity since 2023 totalling 139.6 MWp. During the year, the associated consumption of solar energy in 2025 resulted in an estimated emissions reduction of 64,806.4 metric tons of CO₂e.

Category 4 – Transporting Our Products

Our continued emissions reduction initiatives in 2025 led to an estimated 604,868.0 tCO₂e avoided for Category 4, compared with an estimated 668,800 tCO₂e avoided in 2024.

• By optimising air routes and switching to trucking for shorter routes, we were able to optimise air freight, and increase the use of sea freight and trucking. This shift resulted in an estimated reduction of approximately 240,451.9 metric tons of CO₂e.
• We continued to expand the use of sea freight and expanded trucking routes, resulting in reduced transport emissions by an estimated 22,622.6 metric tons of CO₂e.
• To improve packaging and loading efficiency, we implemented initiatives such as redesigning carton dimensions, optimising pallet frames, and using sacks in place of selected cartons to increase aircraft loading rates and reduce shipment frequency. This resulted in an estimated 331,070.5 tCO₂e in avoided emissions.
• We continued to expand the use of electric or lower-fuel-consumption vehicles, with 125 such vehicles deployed across warehousing and distribution activities in 2025, resulting in an estimated 10,143.8 tCO₂e reduction.
• In 2025, SHEIN piloted the procurement and use of 187.3 tonnes of SAF across 14 Atlas Air charter flights, achieving an estimated emissions reduction of 579.1 tCO₂e.

More information about SHEIN’s carbon-reduction initiatives and our progress towards our SBTi targets is available in SHEIN’s 2025 Sustainability and Social Impact report.

In 2022, SHEIN launched evoluSHEIN by Design, our product initiative which aims to introduce and promote greater awareness and adoption of aspects of our evoluSHEIN sustainability and social impact strategy within the SHEIN ecosystem. Products developed under this initiative form a portion of our overall collection. In 2024, around 8.3% of SHEIN-branded products made with textiles designated by SHEIN were produced in accordance with our evoluSHEIN standard.

Garments sold under this initiative must fulfil the following three criteria:

• Consist of at least 30% preferred materials (refer to the “Preferred Material Sourcing” section below)
• Be produced by suppliers who have achieved an above average rating on our SHEIN Responsible Sourcing (SRS) Audits.
• Use packaging comprising at least 50% preferred materials*, such as recycled polyethylene.

While evoluSHEIN by Design is a SHEIN product initiative that aims to reduce certain environmental impacts relating to materials and packaging, it should be not interpreted as a claim that all products produced and sold as part of that initiative are sustainable.

*Preferred materials used for packaging are recycled polyethylene and FSC-labelled paper packaging.