SHEIN Achieves Landmark Approval for Climate Goals from SBTi
SHEIN, an international leader in online retail for fashion and lifestyle products, has taken a significant step towards sustainability. Recently, the Science Based Targets initiative (SBTi) has officially validated their ambitious objectives to achieve net-zero greenhouse gas (GHG) emissions by 2050. This approval not only reflects SHEIN's commitment to combating climate change but also aligns their targets with the most current scientific consensus and the goals of the Paris Agreement, specifically the aim to limit global warming to 1.5 degrees Celsius above pre-industrial levels.
SHEIN's climate action plan is structured around both near-term and long-term goals for GHG emissions reduction. The near-term objectives include:
For long-term sustainability, SHEIN is committed to:
In a statement, Mustan Lalani, Global Head of Sustainability at SHEIN, emphasized the importance of SBTi’s validation as a pivotal milestone in the company’s decarbonization journey. He acknowledged the complexities involved, especially in addressing Scope 3 emissions, and reiterated the company's dedication to adapting their strategies in line with emerging technologies and industry best practices.
To guide their strategy effectively, SHEIN collaborated with sustainability consultants from Anthesis Group to develop a detailed decarbonization roadmap. This plan prioritizes specific actions based on their potential to significantly cut emissions while considering operational feasibility and business growth.
Addressing Operational Emissions
SHEIN aims to mitigate emissions generated directly from operations and electricity usage through several initiatives, including:
Tackling Supply Chain Emissions
Given that the majority of SHEIN's emissions stem from supply chain activities, the retailer is focusing on its top two impact areas: Purchased Goods and Services, and Upstream Transportation and Distribution, which contributes to around 96% of their carbon footprint.
In addition to these measures, SHEIN is continually improving waste management at its facilities and encouraging sustainable practices among consumers. Initiatives like the SHEIN Exchange platform facilitate second-hand clothing resale, promoting a circular economy approach.
By embracing a holistic decarbonization strategy, SHEIN demonstrates a strong commitment to environmental stewardship and responsiveness to climate challenges. Their ongoing efforts not only set an example within the fashion industry but also resonate with a growing demand for corporate responsibility in combating climate change.
Key Components of SHEIN’s Climate Strategy
SHEIN's climate action plan is structured around both near-term and long-term goals for GHG emissions reduction. The near-term objectives include:
- - A reduction of absolute Scope 1 and 2 GHG emissions by 42% by 2030.
- - A 25% reduction in absolute Scope 3 GHG emissions by 2030, which encompasses indirect emissions throughout their supply chain.
- - Achieving 100% renewable electricity sourcing for their operations by 2030.
For long-term sustainability, SHEIN is committed to:
- - Reducing absolute Scope 1 and 2 GHG emissions by 90% by 2050.
- - Achieving a similar 90% reduction in absolute Scope 3 GHG emissions by 2050.
In a statement, Mustan Lalani, Global Head of Sustainability at SHEIN, emphasized the importance of SBTi’s validation as a pivotal milestone in the company’s decarbonization journey. He acknowledged the complexities involved, especially in addressing Scope 3 emissions, and reiterated the company's dedication to adapting their strategies in line with emerging technologies and industry best practices.
Concrete Steps Towards Decarbonization
To guide their strategy effectively, SHEIN collaborated with sustainability consultants from Anthesis Group to develop a detailed decarbonization roadmap. This plan prioritizes specific actions based on their potential to significantly cut emissions while considering operational feasibility and business growth.
Addressing Operational Emissions
SHEIN aims to mitigate emissions generated directly from operations and electricity usage through several initiatives, including:
- - Transitioning to renewable energy sources to power all SHEIN-operated facilities, contributing to a goal of 100% renewable electricity by 2030. This will involve both on-site solar energy production and the procurement of credible Energy Attribute Certificates.
- - Improving energy efficiency by continuously monitoring and upgrading equipment in their operational facilities.
- - Phasing out fossil fuel usage by adopting electric vehicles for logistics and reducing fugitive emissions through advanced fire suppression systems.
Tackling Supply Chain Emissions
Given that the majority of SHEIN's emissions stem from supply chain activities, the retailer is focusing on its top two impact areas: Purchased Goods and Services, and Upstream Transportation and Distribution, which contributes to around 96% of their carbon footprint.
- - Sustainable Production: SHEIN is prioritizing initiatives to minimize the use of virgin materials, actively researching alternatives like recycled polyester. Collaborations, such as those with Donghua University, aim to enhance the production of recycled materials on a commercial scale.
- - Enhancing Manufacturing Processes: They are working closely with suppliers to adopt renewable energy and improve production efficiencies.
- - Reducing Transportation Emissions: By optimizing logistics and route planning, SHEIN is looking to lessen transportation distances and improve load efficiency for reduced emissions.
Broader Initiatives to Minimize Waste
In addition to these measures, SHEIN is continually improving waste management at its facilities and encouraging sustainable practices among consumers. Initiatives like the SHEIN Exchange platform facilitate second-hand clothing resale, promoting a circular economy approach.
By embracing a holistic decarbonization strategy, SHEIN demonstrates a strong commitment to environmental stewardship and responsiveness to climate challenges. Their ongoing efforts not only set an example within the fashion industry but also resonate with a growing demand for corporate responsibility in combating climate change.
Topics Consumer Products & Retail）
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