SHEIN's Supply Chain Dilemma: Fast Fashion vs Sustainability

SHEIN, the world’s largest fast fashion brand, reported an estimated revenue of US$32.5bn in 2023.

With up to 10,000 new items listed daily, the company’s rapid growth—more than 1,000% from 2019 to 2023—has been nothing short of extraordinary.

However, this scale comes with significant ESG challenges, raising the question: Can SHEIN balance fast fashion with sustainability?

SHEIN’s meteoric rise hasn’t gone unnoticed, especially regarding its ESG impact. Between 2022 and 2023, the company’s absolute emissions grew by 81%, outpacing its revenue growth of 43% over the same period.

In its 2023 sustainability report, SHEIN acknowledges: “We recognise that we still have much more work to do on our climate mitigation journey and are committed to driving progress.”

However, the company has faced repeated accusations of greenwashing. In 2022, Greenpeace accused SHEIN of “taking greenwashing to a new low” after it pledged US$14m to an NGO supporting textile waste workers, despite its continued production of what critics label as "disposable" clothing.

The scrutiny didn’t stop there. In 2021, SHEIN faced backlash after falsely claiming its factories were certified by the International Organisation for Standardisation (ISO) and the labour standards organisation SA8000, as reported by Reuters. More recently, in September 2024, the Italian Competition Authority launched an investigation into potentially misleading environmental claims on SHEIN’s website.

Labour practices have also been under the microscope. In January 2025, SHEIN representatives faced questions in the UK House of Commons about sourcing cotton from China, amid concerns over forced labour in Xinjiang. Yinan Zhu, SHEIN’s EMEA General Counsel, initially declined to clarify but later submitted written evidence stating that SHEIN does not source cotton from China for products sold in the US.

Steps towards a more sustainable model

Despite these controversies, SHEIN has taken steps to address its sustainability challenges. In January 2025, the company appointed Mustan Lalani as Global Head of Sustainability. “My focus will be on embedding circularity, decarbonisation and strategic partnerships into the core of the business,” Mustan shared in a LinkedIn post.

“The scale and complexity of this challenge are immense, but so is the opportunity to set a new standard for sustainability in the industry.”

Mustan's task is clear: lead SHEIN’s efforts to cut emissions across all scopes by 25% by 2030, using 2023 as the baseline.

To tackle Scope 3 emissions, those generated across the supply chain, SHEIN is promoting rooftop solar panel adoption and offering financial incentives to encourage uptake.

The company is also making moves in the circular economy space. Since 2022, it has been a signatory of the World Circular Textiles Day coalition. In 2023, SHEIN reported that 16.2% of its packaging contained at least 50% preferred materials, up from just 4.1% the previous year.

“At SHEIN, our mission is to make the beauty of fashion accessible for all,” says Chris Xu, CEO of SHEIN.

“However, we recognise that producing affordable apparel and delivering it quickly to our customers all over the world comes with significant challenges that we, along with the rest of the industry, must address.”

SHEIN’s broader ESG initiatives include developing a polyester recycling process with Donghua University, launching a €200m (US$205m) Circularity Fund in the UK and EU, and supporting disaster relief efforts. Its SHEIN X Rescued collection, made from deadstock materials, is another nod to sustainability.

Can SHEIN’s efforts offset its impact?

While SHEIN’s sustainability efforts are notable, critics question whether they are enough. The company’s 2023 emissions reached 16.7 million tonnes of CO₂.

Ken Pucker, Professor of the Practice at The Fletcher School at Tufts University, highlighted this on social media: “Assuming that carbon dioxide emissions were SHEIN’s only negative externality and assuming that SHEIN had to pay US$100/mt of CO₂... then its US$5.3m donation represents 1/3 of 1% of what SHEIN should have paid humanity for the societal costs of its annual CO₂ emissions.

"In fairness to SHEIN, no fashion company currently pays society for its negative externalities.”

Despite the criticism, SHEIN insists it is committed to positive change.

Maggie Gu, Co-Founder and General Manager of SHEIN, stated in 2023: “We know we have an important role to play in preserving the resources we all share. We’ve come a long way and we are evolving to ensure that our business practices are aligned with our customers’ goals and values.”

The fast fashion giant’s sustainability journey is complex, marked by both progress and persistent challenges. As SHEIN continues to grow, the pressure to turn pledges into tangible outcomes will only intensify.

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