*

Shein transport emissions up 13.7% in 2024

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2023 emissions updated to 18% more than previously

reported

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Shein's 2024 transport emissions more than triple

Inditex's

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Shein plans to produce, package, and ship closer to

customers

(Adds executive chairman quote in paragraph 4, France bill in

paragraph 5, supplier audits in paragraphs 14 and 15)

By Helen Reid

LONDON, June 13 (Reuters) - Shein's carbon emissions

from transporting products climbed 13.7% in 2024, the online

fast-fashion retailer's sustainability report showed on Friday,

and its 2023 transport emissions were 18% higher than previously

reported after a recalculation.

Shein uses mainly air freight to send cheap clothes directly

from suppliers in China to shoppers in 150 markets worldwide, a

more carbon-intensive supply chain model compared with

traditional apparel retailers that ship more of their products

on container vessels.

Shein said it planned to produce, package, and ship closer

to its customers as a way to lower emissions and cut delivery

times and shipping costs. It increased its use of sea freight

and trucking in 2024, according to the report.

"We do have localised places like Brazil, like Turkey ... so

all these things are in the works. Are we fast enough? Are we

perfect? Of course not. There are a lot of things that we have

to do," Shein executive chairman Donald Tang said, speaking at

the Viva Technology conference in Paris on Friday after the

report was published.

France's Senate on Tuesday approved a revised version of a

fast fashion law that, if implemented, would ban advertising by

Shein and its rival Temu, with French lawmakers criticising

Shein's environmental footprint.

Shein argues its business model allows it to produce

according to demand and leaves it with less unsold inventory

than traditional clothing retailers, minimising waste.

Founded in China and headquartered in Singapore, Shein

sources most of its products from 7,000 suppliers in China, but

also has a growing network of factories in Brazil and Turkey.

EMISSIONS TARGETS

Emissions from transporting products to and between Shein

facilities, and to customers, including returns, were 8.52

million metric tons of CO2 equivalent in 2024, up from 7.49

million metric tons of CO2e in 2023, according to the report.

Shein's transport emissions for 2024 are more than three

times those of Zara owner Inditex, which reported 2.61 million

tons of CO2e for its 2024 financial year, a 10% increase on 2023

as the Spanish firm also used more air freight.

Shein said its 2023 emissions were recalculated after an

update to its methodology. Last year it reported a 2023 figure

of 6.35 million metric tons.

Steep tariffs imposed by the United States on Chinese goods

have made it more urgent for Shein to diversify its supplier

base, as the U.S. is its biggest market.

The company aims to go public and has shifted its focus to a

Hong Kong initial public offering after failing to win Chinese

securities' regulatory approval to proceed with a planned London

listing.

Shein's emissions reduction targets, approved last month by

the Science-Based Targets Initiative, are for a 25% reduction in

Scope 3 (indirect) emissions by 2030, compared with 2023.

In the sustainability report Shein, which has also faced

criticism over working conditions in its supply chain, said it

ended 12 supplier relationships in 2024 due to violations of its

policies, up from five in 2023.

Shein conducted 4,288 on-site audits on its suppliers and

subcontractors in China over the year, up from 3,990 in 2023.