SHEIN announces Plans to Reduce Emissions within its Operations
SHEIN, a global e-retailer of fashion, beauty and lifestyle products, has released targets to reduce overall emissions across its entire value chain by 25% by 2030 and its greenhouse gas (GHG) emissions inventory for 2021 – the year that will serve as the company’s baseline for achieving its Science-Based Targets. Embedding Science-Based Targets in sustainability management is crucial for the company’s efforts toward combating climate change and holding itself accountable for sustainability commitments.
SHEIN partnered with Intertek, an industry-leading Total Quality Assurance provider, to measure its 2021 carbon footprint impact, calculate its Scope 3 baseline emissions and identify Science-Based Targets through jointly conducted interactive workshops. This collaboration resulted in establishing the following 2030 goals which are being submitted via a commitment letter for validation by the Science Based Targets Initiative (SBTi):
- Scope 1, emissions generated from SHEIN operations, accountable for less than 0.05% of 2021 overall emissions: Reduce absolute emissions by 42% by 2030
- Scope 2, emissions from energy purchased to power SHEIN-owned facilities, accountable for less than 0.5% of 2021 overall emissions: Purchase renewable energy certificates (RECs) for 100% of electricity used in SHEIN operations by 2030
- Scope 3, emissions generated from SHEIN’s entire supply chain, accountable for more than 99% of 2021 overall emissions: Reduce absolute emissions by 25% by 2030
To reduce Scope 1 and 2 emissions, SHEIN will increase investments in energy-saving efforts across its operations, complemented by the purchase of renewable energy certificates (RECs). Given that Scope 3 generates the largest portion of SHEIN’s emissions, it is critical that SHEIN works closely with expert partners to collaborate on a transition to renewable energy sources and carbon reduction plans.
SHEIN announced today it is committing up to $7.6 million in programmatic funding to Apparel Impact Institute (Aii), a nonprofit organization dedicated to decarbonizing and modernizing the fashion industry supply chain, to build the roadmap for emissions reduction within SHEIN’s supply chain.
See related article: New York Could Pass the Nation’s First Sustainable Fashion Law
SHEIN’s contribution will go directly to two existing, proven Aii programs: Carbon Leadership, focused on carbon benchmarking, assessment and goal-setting, and Clean by Design, which helps textile production facilities reduce energy, water and chemistry use, while also reducing cost. Aii will design a strategy focused on implementing energy efficiency projects at over 500 of SHEIN’s partner facilities, generating an approximate 10% greenhouse gas emissions reduction per facility per year.
Lewis Perkins, President of Apparel Impact Institute, said: “Aii aims to reach as many suppliers as possible to decarbonize the fashion industry’s supply chain. We will be applying our proven programs and methodology to help SHEIN on its path towards bettering its supply chain.”
SHEIN has also begun working with Brookfield Renewable Partners (“Brookfield Renewable”), Brookfield’s leading global renewable power and decarbonization business, to address GHG emissions in its supply chain through the transition to powering the operations of SHEIN’s supply chain partners with renewable energy. Brookfield Renewable is one of the world’s largest owners, operators and developers of renewable power, with approximately 23,000 megawatts of generating capacity and 75,000 MW of development pipeline that include wind, solar, energy storage, distributed generation, carbon capture and other energy transition asset classes.
Brookfield Renewable Power Asia Pacific Managing Director Daniel Cheng said: “Brookfield has one of the largest renewable power and energy transition platforms in the world and has a long and proven track record of providing green power and decarbonization solutions globally across a wide range of sectors in the economy. Along with Brookfield Growth, the technology investing arm of Brookfield and an existing investor of SHEIN, we are pleased to extend our relationship with the company and support SHEIN’s newly announced decarbonization commitments. We look forward to applying our renewable and energy transition expertise to help bring those objectives to bear. The opportunity to decarbonize the fashion industry is immense.”
“Today we’re taking a significant step forward, announcing a new set of 2030 goals that will help us accomplish emissions reduction targets for our entire supply chain over the next seven years,” said Adam Whinston, Global Head of ESG at SHEIN. “Our partnerships with Brookfield and Aii further demonstrate our commitment to implementing long-term initiatives to empower suppliers and work to promote sustainable innovation focusing on reducing carbon emissions. This announcement further solidifies our commitment to sustainability and corporate responsibility initiatives at a company level.”
SHEIN’s carbon reduction efforts in Scope 3 also will be combined with transformative plans in both product manufacturing to accelerate the incorporation of recycled materials and supply chain transformation, focusing heavily on nearshoring and onshoring, which will work to dramatically reduce SHEIN’s reliance on airfreight.
As part of its sustainability journey, earlier this year SHEIN announced a $50 million Extended Producer Responsibility Fund, a commitment to the CanopyStyle Initiative to keep Ancient and Endangered Forests out of the viscose supply chain and the launch of a purpose-driven clothing label to foster responsible customer choices and behaviors.