Shein touts sustainability efforts and philanthropy, but its fast-fashion model raises questions about environmental and labor practices.
Shein, the global online fashion retailer, is best known for its excessive amounts of cheap products. Widely criticized for its connection to forced labor and toxic manufacturing processes, the Chinese-owned label recently announced several initiatives aimed at enhancing its environmental and social responsibility.
Shein’s sustainable manufacturing promises
In collaboration with Donghua University, Shein says it has developed a new polyester recycling process that accepts a wider range of materials, including both pre- and post-consumer polyester feedstock, such as textile waste and polyethylene terephthalate (PET) bottles. This process can offer greater flexibility in sourcing feedstock and improved cost efficiency compared to the recycled polyester options currently used in Shein’s products, according to the company.
Testing by Donghua’s team of researchers has shown that the recycled polyester fabrics produced through this process can be recycled repeatedly without significant impact on the material properties of the resulting fabric, as the inputs are chemically broken down, refined, and reconstituted at the polymer level. Shein plans to scale this technology for large-scale production by June, with an annual target production output of 3,000 metric tons. It’s part of Shein’s commitment to transition 31 percent of the polyester used in Shein-branded products to recycled polyester by 2030.
Shein is also increasing its adoption of cool transfer denim printing, a technology that consumes less water and energy compared to traditional denim manufacturing methods while simplifying the production process. Approximately 380,000 pieces of Shein’s denim apparel produced in 2024 were made using this process, which the company says saved more than 10,000 metric tons of water compared to traditional denim production techniques. This marked a 90 percent increase from 2023 when Shein made 200,000 denim pieces using this method.
Since introducing cool transfer denim printing in 2022, Shein says it has saved nearly 19,500 metric tons of water. Traditional denim manufacturing requires water and energy for processes such as dyeing, bleaching, and washing. Shein partnered with NTX in 2021 to introduce cool transfer denim printing. This process involves a digital printer using reactive ink to print denim textures, artwork, or patterns onto a transfer film.
The designs on the transfer film are then imprinted onto white denim fabric using cold transfer equipment, replicating the effects of washing denim to produce features like faded finishes, whiskering, and retro-worn effects. Verified by global inspection and certification provider Bureau Veritas in October 2023, the process reduces water usage by 70.5 percent compared to conventional denim washing methods and also eliminates the need for workers to be in contact with harmful chemicals, such as chlorine and caustic soda, which may be used in traditional denim production.
Philanthropic efforts
The platform is also working to shake its forced labor image with the establishment of Shein Foundation, focusing on improving lives in communities, protecting biodiversity, and advancing sustainable change. The company has previously launched initiatives such as the Extended Producer Responsibility Fund and provided grants to boost education opportunities in various communities. Shein donated $430,000 to six Dress for Success affiliates in the U.S., U.K., Italy, and Singapore, supporting underemployed women seeking jobs.
Donald Tang, Shein’s executive chairman, stated that organizing the company’s charitable efforts in a foundation brings greater accountability and transparency to its donations. The Africa Collect Textiles Foundation, a recent grant recipient, will use the funds to promote textile donation and post-consumer recycling in Kenya and the broader Africa region. This project aims to install drop-off points for used clothing donations and create jobs for collectors, sorters, and artisans who upcycle textile waste.
“Empowering and giving back to the communities we reach has always been core to our operating philosophy. Establishing the Shein Foundation, and thereby consolidating our charitable efforts under a formal philanthropic structure, brings greater accountability and transparency to our donations,” Tang said in a statement. “This also strengthens our ability to direct our charitable giving in a more impactful and sustained manner to better support causes and organizations that align with our values.”
Greenwashing allegations
However, despite these initiatives, Shein continues to face scrutiny over its environmental claims and labor practices. The Italian Competition Authority has launched an investigation into Shein’s website operator, Infinite Styles Services Co., over potentially misleading advertising claims regarding the environmental sustainability of Shein-branded clothing. The investigation focuses on the possible misleading nature of environmental claims in several sections of the website, including “#SHEINTHEKNOW,” “evoluSHEIN,” and “Social Responsibility.”
The Authority alleges that the company “would try to convey an image of production and commercial sustainability of its clothing through generic, vague, confusing and/or misleading environmental claims regarding ‘circularity’ and product quality and their responsible consumption,” to benefit from increased consumer sensitivity on the environmental impact of their consumption choices. The investigation comes as E.U. regulators and lawmakers have taken a series of actions aimed at addressing greenwashing and protecting consumers from misleading sustainability claims. The fashion sector, in particular, has come under pressure to address the climate and environmental impact of its activities and to tackle misleading green claims in its advertising.
In July, Shein announced it would invest €200 million into startups in Europe that are working in textile-to-textile recycled materials innovation and related fields. It has also pledged to reduce its carbon dioxide emissions by 25 percent by 2030 and achieve net-zero emissions no later than 2050. However, climate advocates and researchers say the company’s lightning-fast manufacturing practices and online-only business model are inherently emissions-heavy.
Those concerns were amplified by Shein’s third annual sustainability report, which showed the company nearly doubled its carbon dioxide emissions between 2022 and 2023, much of that due to the use of AI. “AI enables fast fashion to become the ultra-fast fashion industry, Shein and Temu being the fore-leaders of this,” said Sage Lenier, the executive director of Sustainable and Just Future, a climate nonprofit. “They quite literally could not exist without AI.”
In the 12 years since Shein was founded, it has become known for its uniquely prolific manufacturing, reportedly generating over $30 billion in revenue in 2023. New designs can take as little as ten days to transform into ready-to-ship garments, with approximately 10,000 new items added to its website daily. This relentless production pace enables Shein to offer over 600,000 items at any given time, with the average price point hovering around $10. While affordable, this model comes at a steep cost to the environment.
Shein says its operations emitted 16.7 million metric tons of carbon dioxide, a figure that surpasses the annual output of four coal power plants. Furthermore, the report reveals that polyester — known for its significant environmental impact and contribution to microplastic pollution — accounts for 76 percent of Shein’s fabrics. Alarmingly, only six percent of that polyester is recycled. This heavy reliance on synthetic materials, coupled with the company’s rapid production cycle, exacerbates its environmental footprint.
The company’s air shipping practices also contribute heavily to its emissions. Unlike other fashion giants that consolidate shipments via ocean freight, Shein relies predominantly on air transport, with items often shipped individually to consumers. In July 2023 alone, the company reportedly shipped an astounding 900,000 packages daily to the U.S., adding to its emissions burden. According to Shein’s sustainability report, transportation accounts for 38 percent of its climate footprint, while the remaining 61 percent stems from its supply chain.
While Shein touts its AI-driven “on-demand” model as a waste-reduction strategy, critics argue it merely fuels overproduction and overconsumption. Sheng Lu, a professor of fashion and apparel studies at the University of Delaware, explained that the company’s approach ensures more “market-popular” items are made but simultaneously encourages consumers to purchase more than ever before. “Of course, the overall carbon impact will be higher,” Lu noted. Similarly, Sage Lenier of Sustainable and Just Future labeled the company’s practices as emblematic of “ultra-fast fashion,” powered by AI technologies that intensify environmental degradation.
IPO challenges
Shein has also faced heavy criticism over its labor practices, with allegations of unsafe working conditions and exploitative wages. In third-party audits conducted on over 3,000 suppliers, 71 percent received a grade of “C” or lower on Shein’s internal scale. This indicates significant room for improvement, despite the company’s claims of conducting thousands of supplier checks annually.
While the brand’s philanthropic endeavors, such as its $430,000 donation to Dress for Success affiliates and its partnership with the Africa Collect Textiles Foundation provide valuable resources for underemployed women and promote textile recycling, skeptics view them as surface-level gestures designed to deflect attention from deeper systemic issues.
Allegations of forced labor within its supply chain, particularly regarding cotton sourced from China’s Xinjiang region, have drawn criticism from human rights organizations and lawmakers. During a hearing before the U.K. Parliament’s Business and Trade Committee, Shein’s representatives were accused of “willful ignorance” for failing to provide clear answers about its sourcing practices. The company maintains it has a “zero-tolerance policy” for forced labor, yet it has faced ongoing pressure to prove its compliance with ethical labor standards.
Tang said that the company’s philanthropic initiatives aim to bring “greater accountability and transparency,” yet as Shein prepares for a potential London IPO, its environmental and labor practices remain under intense scrutiny. “If Shein can successfully achieve an IPO then it means they are recognised as a decent company,” Sheng Lu, a professor in Fashion and Apparel Studies at the University of Delaware told the BBC. “But if they are to keep the confidence of investors, they have to take some responsibility.”
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