We set science-based targets to fight climate change – both within our operations and in collaboration with our suppliers and partners.
Our Emissions Reduction Roadmap & Initiatives
SHEIN is committed to reduce absolute greenhouse gas (GHG) emissions across our entire value chain by 25% by 2030. This science-based target covers every stage – from sourcing, production and processing of materials, product assembly, own operations, logistics, to the disposal of our products at their end of life.
SHEIN 2021 GHG Emissions
| Scope | Description | GHG Emissions (tCO2e) (in thousands) | Proportion |
|---|---|---|---|
| Scope 1 | Emissions generated by SHEIN facilities | 18 | < 0.1% |
| Scope 2 | Emissions from energy we purchase to power SHEIN facilities | 24 | 0.4% |
| Scope 3 | Emissions from the entire supply chain | 6,257 | 99.6% |
| Total GHG Emissions (tCO2e) (in thousands) | 6,283 |
In 2022, production volume increased by 57% and our emissions increased by 52%. The change in our absolute emissions from 6.04 to 9.17 million tons CO2e from 2021 to 2022 comes from the strong growth of our business. We are at the beginning of our mitigation journey and began implementing decarbonization programs at the end of fiscal year 2022.
To guide our work, we have identified three areas to minimize our impact and make change:
- To reduce our Scope 1 emissions, we will increase investments in energy-saving efforts across our business and through improved measurement techniques.
- To reduce Scope 2 emissions, we will purchase Renewable Energy Certificates from the utilities where we operate warehouses, mostly in southern China.
- To reduce our Scope 3 emissions, we’ll work closely with our supply chain and expert partners to collaborate on carbon reduction plans and to transition to renewable energy sources.
Through new partnerships with the Apparel Impact Institute (Aii) and Brookfield Renewable Partners, we’ve begun to promote renewable energy use and energy efficiency projects aimed at reducing carbon emissions. We have committed to investing US $7.6 million in Aii programs to help us achieve our supply chain carbon reduction goals. Acting on our commitment made in the fall of 2022, we engaged with our suppliers to start implementing our decarbonization programs in 2023.
RisilienceTM Climate risk study
SHEIN’s business model is focused on resilience. To better understand our climate risks in the transition to a low-carbon future, we partnered with Risilience™ – a SaaS platform provider that works closely with its academic partner, the Centre for Risk Studies at the University of Cambridge Judge Business School, to tackle complex issues of management science and business risk. Risilience™ uses a rigorous, scenario-based framework that integrates a wide range of risk classes with the latest international standards in climate science to provide a comprehensive view of a corporation’s balance sheet risk relative to climate change. Together we conducted a climate risk modeling exercise to help explore and prioritize several initiatives in our carbon-reduction roadmap: use of sustainable aviation fuels (SAFs), nearshoring of production to cut down on transportation and air freight, and switching to preferred materials for products and packaging.