Why SHEIN is Under Scrutiny for Supply Chain Sustainability
Fast fashion giant SHEIN is under scrutiny for its environmental practices.
The Italian Competition Authority (AGCM) has fined Infinite Styles Services Co. Ltd. – the company responsible for SHEIN’s European online sales – €1 million (US$1.15m) for allegedly misleading consumers with deceptive sustainability claims.
According to AGCM, the penalty relates to the brand’s use of environmental messaging that constitutes greenwashing.
"The €1 million (US$1.15 million) fine is for the use of misleading and deceptive environmental messages and claims – known as greenwashing," states the AGCM.
The launch of the investigation
In September 2024, the AGCM initiated a probe into potential misleading advertisements concerning environmental sustainability claims made on SHEIN's website.
These claims related to sections including:
- #SHEINTHEKNOW
- evoluSHEIN
- Social Responsibility
According to the authority, these claims were, in some cases, "vague, generic and/or overly emphatic and in others, misleading or omissive".
France is simultaneously enforcing tighter regulations to reduce the environmental footprint of ultra-fast fashion.
Setting a precedent, the French Parliament moved forward with legislation in June 2025 that targets large fashion companies, such as SHEIN and Temu, with new eco-taxes, advertising restrictions and mandatory sustainability disclosures.
Is SHEIN greenwashing?
The investigation found that environmental statements in the #SHEINTHEKNOW segment about product recyclability and a "circular system design" were "either false or at least confusing".
SHEIN's claims about "green" fibres in the evoluSHEIN collection were also scrutinised for not detailing the specific environmental benefits.
The AGCM highlighted that SHEIN hasn't provided clarity on environmental benefits across the product lifecycle and acknowledged that the evoluSHEIN by Design range is a minor part of SHEIN's total product offering.
Mustan Lalani, SHEIN’s Global Head of Sustainability, stated in a LinkedIn post: “As one of the world’s largest fashion and retail platforms and a pioneer in on-demand fashion, SHEIN represents a disruptive model with the potential to drive sustainability at an unparalleled scale."
He emphasised the company's focus on "embedding circularity, decarbonisation and strategic partnerships into the core of the business".
Is SHEIN on track to net zero?
Despite SHEIN's assertions about its commitments to reducing GHG emissions by 25% by 2030 and aiming for zero emissions by 2050 as outlined in its Social Responsibility section, the AGCM criticised these targets as "vague and generic".
This was compounded by an actual increase in the company's GHG emissions during 2023 and 2024.
Europe’s fast fashion law
On 10 June 2025, the French Senate passed a bill to regulate ultra-fast fashion with overwhelming support.
The legislation, now heading for a joint committee review, aims to align with EU regulations and proposes environmental surcharges on fast fashion products.
The surcharge starts at €5 (around US$5.80) and will increase to €10 (roughly US$11.60) by 2030, with a cap at 50% of an item’s retail price, intending to encourage sustainable consumer behaviour.
Funds generated will support sustainable fashion initiatives in France.
