In just over a decade, Shein has transformed the fast fashion landscape, becoming a global phenomenon known for its ultra-cheap clothing, vast online selection, and trend-driven styles. The company's business model hinges on a lightning-fast supply chain that leverages AI technology to predict consumer demand and rapidly produce new designs. 

This ‘ultra-fast fashion’ approach has given a boost to Shein’s revenue that reportedly exceeded $30 billion in 2023. The company has an estimated 600,000 items available for purchase at any time, with an average price of $10. Its appeal to Gen Z consumers is undeniable, with 44 per ent of American Gen Zs making at least one Shein purchase per month.

The environmental cost of speed

Indeed, Shein's extraordinary success comes at a steep environmental cost. The sheer volume of clothing it produces, combined with its reliance on fossil fuel-based materials and rapid shipping practices, contributes significantly to greenhouse gas emissions and pollution. Critics argue Shein's business model, while efficient and profitable, is inherently unsustainable.

The release of Shein's third annual sustainability report recently has intensified concerns about the company's environmental impact. The report revealed a near doubling of Shein's carbon dioxide emissions between 2022 and 2023, highlighting the challenges the company faces in balancing its growth with sustainability commitments.

Highlights on some concerns

Carbon footprint: The production and transport of Shein's vast inventory generates a significant carbon footprint. Estimates suggest Shein's annual carbon emissions could range from 6.3 million to 12.6 million metric tons of CO2 equivalent, rivaling the emissions of entire countries. The company's heavy reliance on synthetic fibers, primarily derived from fossil fuels, further contributes to its emissions.

Water usage: The textile industry is a major consumer of water, and Shein's high production volumes inevitably translate to substantial water usage. It is estimated that Shein's operations could consume upwards of 70 billion liters of water annually, enough to fill nearly 28,000 Olympic-sized swimming pools.

Waste generation: The short lifespan of fast fashion garments contributes to a global waste problem. Many Shein items end up in landfills after just a few wears. Shein's waste generation is estimated to be in the hundreds of thousands of tons per year, adding to the mounting problem of textile waste.

AI's role: The use of AI to accelerate production and shipping processes could be exacerbating Shein's environmental impact by encouraging even higher consumption and turnover rates.

Despite facing criticism, Shein has publicly committed to reducing its environmental footprint. The company has set ambitious goals, including a 25 per cent reduction in carbon dioxide emissions by 2030 and achieving net-zero emissions by 2050. Shein highlights several initiatives in its sustainability report.

Shein says it aims to transition its operations to renewable energy sources. The company is working with suppliers to implement energy-efficient practices. And Shein is researching ways to incorporate recycled materials into its products and encourage garment recycling.

Indeed, while Shein's sustainability commitments are laudable, the company faces significant hurdles in achieving these goals. Its business model remains fundamentally reliant on high consumption and rapid turnover, presenting inherent challenges to sustainability. The near doubling of its carbon emissions in a single year underscores the scale of the task ahead. Critics are skeptical about Shein's ability to reconcile its business model with meaningful environmental progress. 

In fact, Shein’s ambitious sustainability pledges face touch challenges against its rapid growth and insatiable consumer demand. The fashion industry's future hinges on finding a balance between affordability, style, and environmental responsibility, and Shein's path forward will undoubtedly be closely watched.