Rooted in ESG across the entire value chain, SHEIN's scientific net-zero emission target is approved.

Text by｜Li Xiaoxi

Cover image source｜Visual China

Recently, SHEIN, an online retailer of fashion and lifestyle products, announced that its goal of achieving scientific net-zero emissions by 2050, as well as its short - and long - term scientific emission reduction targets, have been approved by SBTi (Science Based Targets initiative).

The SBTi website has published details of the overall net-zero emissions target. Among them, the "short-term target for 2030" and the "long-term target for 2050" have been set. Mustan Lalani, the global head of sustainability at SHEIN, said: "SBTi's verification of the company's net-zero emissions target marks another important step in SHEIN's decarbonization process."

Since its inception, SHEIN's logic of small-batch and quick response has been a model of reducing waste at the source. This concept has set an efficient and sustainable example for the global fashion industry chain.

Moreover, it continues to promote the greening of the entire industrial chain, leading the transformation and upgrading of the fashion industry. Through measures such as using new energy trucks and installing rooftop photovoltaics, it truly promotes the comprehensive greening of the upstream and downstream industries.

The Thoroughly Ingrained ESG Concept

SHEIN's ESG concept has permeated every aspect, from product packaging bags to the manufacturing process.

Don't underestimate a small plastic bag. Although each one only reduces a few grams in weight, the cumulative carbon reduction is quite significant. By using a certain proportion of recycled materials in express delivery bags and garment bags to replace virgin plastics, SHEIN achieved a reduction of over 6,700 tons of plastics and over 21,000 tons of carbon emissions in 2024. It even optimized the size and thickness of the packaging bags to reduce the production and use of virgin plastics. These small changes and major iterations were not accomplished overnight. SHEIN's solution was to let a professional team conduct continuous experiments, simulations, and validations, and finally achieved continuous reduction of the quantity and use of packaging bags.

SHEIN's garment plastic packaging bags containing 100% recycled polyethylene (rPE)

Although there are many difficulties in implementing these green and sustainable concepts in practice, such persistence at SHEIN is not an exception. The on-demand flexible supply chain, based on the logic of "small-batch and quick response" through on-demand production, enables efficient matching of market supply and demand, avoiding waste at the source. This is a natural sustainable concept.

Moreover, SHEIN promotes the greening of the entire industrial chain through rooftop photovoltaics and new energy trucks.

For example, in the Guangzhou SHEIN Bay Area Supply Chain Project Park, by installing a rooftop solar photovoltaic power generation system, SHEIN expects to save about 8,121 tons of standard coal and reduce carbon dioxide emissions by about 22,000 tons annually. While installing rooftop photovoltaics in its self-operated facilities, SHEIN also actively promotes the use of renewable energy to its suppliers, customizes exclusive installation solutions for photovoltaic systems for them, and provides cash incentives. By the end of 2024, the number of SHEIN's supplier factories that introduced solar photovoltaics increased by about 180%.

SHEIN promotes the rooftop photovoltaic project for suppliers

That's why SHEIN has the confidence to put forward the goal of achieving scientific net-zero emissions by 2050. It should be noted that net-zero emissions does not mean zero emissions. Instead, through emission reduction and carbon removal technologies, it aims to balance all greenhouse gas emissions and removals within a specific scope, achieving a state where the net emissions are zero.

According to SHEIN's plan, its emission reduction targets for 2030 and 2050 are based on the year 2023 as the baseline year. By 2050, it aims to achieve net-zero greenhouse gas (GHG) emissions across the entire value chain. More specifically:

• In the short-term target for 2030, SHEIN will reduce the absolute greenhouse gas emissions from direct operations, i.e., Scope 1 and Scope 2 emissions, by 42%;
• It will reduce the absolute greenhouse gas emissions from the entire supply chain (including purchased goods and services, fuel and energy-related activities, transportation and distribution, waste generated during operations, and end-of-life treatment of sold products, etc.), i.e., Scope 3 emissions, by 25%.
• By 2030, it will gradually increase the proportion of actively purchased and used renewable electricity to 100% annually.
• As the long-term target for 2050, SHEIN will reduce the absolute greenhouse gas emissions of Scope 1, Scope 2, and Scope 3 by 90%.

According to 36Kr's understanding, in the roadmap for reducing Scope 1 and Scope 2 emissions, SHEIN has prioritized three actions: transitioning to renewable energy, improving energy efficiency, and gradually phasing out fossil fuels and reducing fugitive emissions. By 2030, SHEIN will use methods such as increasing photovoltaic power generation to provide 100% renewable electricity to all directly operated facilities.

It is not difficult to see from this plan disclosure that SHEIN is confident in achieving its net-zero emissions target.

When Technological Innovation Becomes the Engine of ESG

The "E" (environment) in ESG focuses on climate change, resource consumption, waste, pollution, and deforestation, etc. To achieve sustainable concepts in these aspects, SHEIN has never stopped exploring innovative technologies. As a global leading fashion enterprise, it has made leading attempts, especially in raw materials and textile printing and dyeing technologies.

This includes the establishment of the "SHEIN & Transfar Chemical Joint Laboratory" with Transfar Chemical, a leading enterprise in functional chemistry and new material technology, and the development of a new generation of recycling solutions for polyester oligomers in cooperation with Donghua University, a leading university in the industry.

SHEIN's actions not only benefit itself but also the industry. In cooperation with Transfar Chemical, it is committed to helping Transfar Chemical connect with more regional textile printing and dyeing enterprises, so as to translate relevant R & D results into broader applications.

The new generation of recycling solutions for polyester oligomers jointly launched by SHEIN and Donghua University focuses on expanding the scope of recycled materials. Tests by Donghua University show that this process can repeatedly recycle recycled polyester without significantly affecting the material properties of textiles. By expanding the scope of recyclable materials + the logic of on-demand production, SHEIN is truly promoting the development of the fashion circular economy industry. According to its plan, this solution can be mass-produced among industrial suppliers in 2025, which will completely change the industry rules at that time.

For example, denim, an important category in the fashion industry, has faced many environmental challenges due to its long - term reliance on water - intensive traditional washing and dyeing processes.

SHEIN has changed the production mode of denim clothing by promoting and applying the digital cold transfer printing technology for denim. Compared with traditional denim manufacturing methods, this technology consumes less water and energy. Its clever part is that it naturally fits the "small-batch and quick response" model, giving designers more room for creativity. On the premise of avoiding waste, it allows for more attempts at complex prints and bright colors, which greatly meets consumers' demands in today's increasingly personalized market.

Verified by Bureau Veritas (BV) in October 2023, this process can reduce water consumption by 70.5% compared with traditional denim washing methods. It is truly both environmentally friendly and scientific.

Previously, SHEIN has also been vigorously promoting the application of digital thermal transfer printing technology, which is a printing technology that prints dyes on thermal transfer paper and then transfers them to fabrics to form patterns. According to verification by Bureau Veritas (BV), the digital thermal transfer printing technology applied by SHEIN is a printing process with zero water consumption. Statistics show that from 2018 to June 2024, products using digital thermal transfer printing technology accounted for more than 65% of SHEIN's total products.

The Sustainable Concept Not Only Serves as a Public Welfare but Also Boosts Energy Efficiency

The ESG concept originated in the 1970s. Initially, it was a green consumption and environmental protection initiative to address environmental issues in developed countries, but it soon brought more economic surprises. Although ESG investment does not solely focus on the financial performance of the invested enterprises, the high positive correlation between ESG indicators and financial performance has made people realize that enterprises meeting ESG standards are often more worthy of investment.

Just as SHEIN has introduced the sustainable ESG concept into the industrial chain, it has effectively boosted the energy efficiency of the industrial chain.

"Previously, we didn't realize that the energy efficiency improvement brought by green carbon reduction in the factory would eventually have a positive impact on employee income and talent recruitment," said a relevant person in charge of an enterprise in SHEIN's industrial chain. Whether it's a printing and dyeing factory in Foshan or a garment factory in Zhongshan, SHEIN's upstream and downstream suppliers are experiencing the unexpected benefits of the sustainable concept.

"At first, we didn't know how to improve energy efficiency. SHEIN invited our factory to participate in an energy efficiency improvement project and helped us find an expert team to customize an improvement plan according to our factory's actual situation. This plan was very helpful to us. For example, in lighting management, we only installed a few motion - activated switches, and we recovered the cost of the transformation in just one month," said the person in charge of a garment factory in Zhongshan, Guangdong. In addition to lighting management, they also replaced energy - saving water valves and established a condensate water recycling system. The factory achieved a water - saving rate of 12.6% and a power - saving rate of 16.2% within a year. "The cost savings have already covered the cost of participating in the project."

Initially, no one realized that the upgrading and transformation in line with the sustainable green concept itself had great efficiency value. Through a series of supplier energy efficiency improvement projects launched by SHEIN, more and more factories have achieved sustainable and positive growth.

Zhou Yining, a fabric supplier from Panyu, Guangzhou, was deeply impressed by his own great transformation. He started working with SHEIN in 2018. As someone used to "large - volume, few - style, one - month delivery cycle" orders, Zhou Yining was even a bit "disdainful" of SHEIN at first. "Because the initial order was too small, only 100 meters of fabric were printed for one order. It didn't seem cost - effective, not even enough to cover the designer's drawing salary." But soon, Zhou Yining realized that he had found a treasure. Digital transformation made everything possible, and the cost of digital printing has been halved from the initial high of 15 yuan per meter. More and more people are actively embracing this useful, flexible, and environmentally friendly technology.

A supplier factory using an automatic clothing hanging system

In Guangzhou, numerous innovative factories like this have emerged. Different from traditional factories in the past, these factories often apply new technologies, do not rely solely on labor, and maximize the use of resources. According to media statistics, SHEIN has continuously invested over 10 billion yuan in expanding its smart supply chain in China, and all of these supply chain projects have fully integrated the concepts of greenness and environmental protection. For example, the Guangzhou SHEIN Bay Area Supply Chain Project aims to obtain the highest - level Platinum certification of LEED.

It not only sets up a centralized water - storage air - conditioning system, which effectively saves energy through the peak - shaving and valley - filling model, but also installs a rooftop solar photovoltaic power generation system, which is expected to save about 8,121 tons of standard coal and reduce carbon dioxide emissions by about 22,000 tons annually.

Thanks to these efforts, a new, more green, energy - saving, and environmentally friendly supply chain is emerging. These various green supply chain systems make net - zero emissions and decarbonization no longer distant slogans and concepts.