Climate Change Data

Environmental Metrics

ESG Focus Areas

• Protecting our planet
• Supporting communities
• Empowering entrepreneurs

Environmental Achievements

• Invested in thermal digital transfer and digital direct printing technologies to reduce water use
• Donated approximately 10,000 pairs of shoes per year to Soles4Souls and The Midnight Mission
• Planted 606,175 trees through Ecologi
• Increased use of recycled materials in packaging
• Incorporating more recycled polyester into products
• Increasing sourcing of materials from certified suppliers of responsible wool and down
• Intending to source viscose from more certified suppliers

Social Achievements

• Launched SHEIN X, an incubator program for up-and-coming designers
• Contributed $100,000 to the NAACP Legal Defense Fund and $100,000 to Together We Rise
• Provided grants to Youth Emerging Stronger, National Action Network, Girls Who Code, The Trevor Project, and Stand Up to Cancer
• Launched SHEIN Spotlight program to help cover childcare and education costs for 14,000 employees of 120 suppliers
• Formed a two-year partnership with Vital Voices, committing $500,000 to support their advocacy work

Governance Achievements

• Global Head of ESG reports directly to the CEO
• Senior leadership team meets monthly to discuss ESG initiatives
• Enforces a strict Code of Conduct for all suppliers, consistent with ILO conventions
• Conducts regular supplier audits using SEDEX SMETA and SRS Program standards

Climate Goals & Targets

Environmental Challenges

• Insufficient fire and emergency preparedness in some supplier factories
• Other violations detected through supply chain audits (working hours, recruitment compliance, grievance management, etc.)
• Reducing GHG emissions and waste

Mitigation Strategies

• Regular capacity building exercises to address fire and emergency preparedness
• Capacity building trainings to prevent future violations
• Developing circular economy programs to divert waste from landfills
• Collaborating with designers to promote the use of sustainable fibers
• Assessing operations to reduce emissions and waste footprint
• Working across the supply chain to identify and remediate workplace safety and labor violations

Supply Chain Management

Supplier Audits: Nearly 700 audits in 2021

Responsible Procurement

• Strict Code of Conduct
• SHEIN Responsible Sourcing (SRS) evaluation system

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Sustainable Development Goals (SDGs), UN Global Compact (UNGC)

UN Sustainable Development Goals

• All 17 SDGs

The SDGs provide a framework for SHEIN's environmental sustainability and social impact strategy.

Sustainable Products & Innovation

• Products incorporating recycled polyester

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Launched evoluSHEIN by Design product initiative, introducing pieces made with responsibly-sourced materials and manufacturing processes.
• Became members of Textile Exchange to support our adoption of preferred fibers and participate in collective action for a more sustainable textile industry.
• Joined the CanopyStyle and Pack4Good initiatives to end the use of vital forests in our fabric and paper-based packaging by 2025.
• Announced carbon baseline and 2030 targets, and launched partnerships with Apparel Impact Institute (Aii) and Brookfield Renewables to support emissions reduction strategy.
• Launched SHEIN Exchange, a peer-to-peer resale marketplace to encourage customers to engage with the circular economy.
• Expanded the use of Digital Transfer Printing (DTP), a zero-water-waste printing method, converting over 50% of directly-sourced printed fabric to this method.

Social Achievements

• Invested more than US $55 million to empower nearly 3,000 aspiring designers and artists from more than 20 countries through the SHEIN X Program.
• Conducted 2,425 audits covering 1,941 contract manufacturers (approximately 84% of SHEIN-branded products by procurement value).
• Launched the Supplier Community Empowerment Program with a US $15 million commitment over four years to facilitate material improvements to factories.
• Spent US $1.3 million to upgrade 83,000 m2 of supplier workspace covering 29 facilities and approximately 4,500 workers.
• Conducted over 380 training sessions for workers in the supply chain.
• Established the SHEIN Spotlight program, awarding grants to 251 families totaling US $378,000.

Governance Achievements

• Completed an impact-based materiality assessment in partnership with BSR.
• Strengthened ESG policies and made them more accessible on the corporate site.
• Built a dedicated team of over 60 people to support IP compliance.

Climate Goals & Targets

Environmental Challenges

• More than 99% of emissions are from scope 3 (supply chain partners, transportation, use of products, etc.).
• Increased production volume (57%) led to increased emissions (52%).
• Managing climate risks related to weather patterns impacting operations and supply chain.
• Managing transition risks from increased pressure to secure reputation, changes in consumer preferences, and policy/regulation constraints.

Mitigation Strategies

• Partnership with Apparel Impact Institute (Aii) and Brookfield Renewable Partners to promote renewable energy use and energy efficiency projects.
• Investment of US $7.6 million in Aii programs.
• Implementation of decarbonization programs in 2023.
• Climate risk study using Risilience™ platform to model climate mitigation strategies (sustainable aviation fuels, nearshoring, preferred materials).

Supply Chain Management

Supplier Audits: 2,812 in 2022

Responsible Procurement

• SHEIN Supplier Code of Conduct; SHEIN Responsible Sourcing (SRS) Program; regular, unannounced SRS audits; supplier training and compliance enforcement; multi-channel feedback system for workers.

Climate-Related Risks & Opportunities

Physical Risks

• Disruption in raw material supply and market demand; operational downtime; damage to physical assets.

Transition Risks

• Reputational damage; changes in consumer preferences; policy and regulation constraints.

Opportunities

• Use of sustainable aviation fuels; nearshoring of production; switching to preferred materials.

Reporting Standards

Frameworks Used: GRI 2021

Certifications: ISAE 3000 (limited assurance)

Third-party Assurance: Deloitte Touche Tomatsu Hong Kong

UN Sustainable Development Goals

• 5, 6, 7, 8, 12, 13, 15, 17

The evoluSHEIN Roadmap is designed to support the UN SDGs.

Sustainable Products & Innovation

• evoluSHEIN by Design products; products from rescued deadstock fabrics; products from waste scraps (HOHILIFE initiative).

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Equitable Empowerment
• Collective Resilience
• Waste-Less Innovation

Environmental Achievements

• Installed 43.6MW of solar capacity in seven warehouses, generating 3,953 MWh of electricity and reducing 2,255 metric tons of CO2e.
• Implemented energy-efficiency improvement projects in three facilities, saving 14,046 MWh of electricity and nearly 46,000 metric tons of CO2e per year.
• 31 suppliers installed and 10 are installing photovoltaic solar panels, totaling 51.6MW of solar capacity, reducing CO2e by 12,140 metric tons.
• Introduced lower-impact delivery options in Europe, saving an estimated 19,468 metric tons of CO2e.
• Partnered with logistics partners using electric cars and hybrid/natural gas vans, saving 54,614 metric tons of CO2e in Europe.
• Nearshoring and onshoring strategy reduced delivery times, shipping costs, and Scope 3 carbon footprint, saving 49,578 metric tons of CO2e and 314,805 metric tons of CO2e.
• Over 52% of directly sourced printed fabric utilized digital thermal transfer printing (DTP), saving over 290,000 cubic meters of water and over 32,600 MWh of electricity, reducing 60,524 metric tons of CO2e.
• Increased use of recycled plastic and paper-based packaging, with 16.2% of packaging containing at least 50% preferred materials.
• 14 facilities undergoing industrial waste recycling projects, with two achieving Zero Waste to Landfill certification.
• Over 101,000kg of textile-to-textile recycled polyester fabric utilized in SHEIN-branded apparel products.

Social Achievements

• Partnered with Dress for Success Greater London, donating over £110,000 and launching a bespoke curve collection.
• Invested approximately US$2.36 million in training and upskilling initiatives for employees, with over 170,000 training hours.
• Over 5,100 employees received promotions.
• Launched childcare centers across 10 supplier facilities.
• Supported 165 worker families with financial assistance through the SHEIN Spotlight Program.
• Organized 620 training sessions for workers in the supply chain.
• Organized five summer camps for suppliers’ workers’ children.
• Allocated up to US$70 million for the Supplier Community Empowerment Program (SCEP).
• Allocated up to US$50 million for the SHEIN X Designer Incubator Program.
• Allocated up to US$35 million for social impact activities supporting women, young people, and the underprivileged.

Governance Achievements

• Established a Sustainability Committee at the Board level with independent members.
• Strengthened Supplier Code of Conduct (SCoC) and SHEIN Responsible Sourcing (SRS) Policy.
• Conducted 3,990 on-site SRS audits on China-based suppliers, with 92% performed by third-party agencies.
• Improved SRS audit performance, increasing the proportion of A or B grades from 18% in 2022 to 29% in 2023.
• Implemented a firmer stance against severe violations, resulting in the termination of five suppliers.
• Conducted training sessions on anti-corruption for 5,673 employees.
• Investigated 46 complaints, with 27 confirmed violations of the Global Code of Ethics.

Climate Goals & Targets

Environmental Challenges

• Improving supply chain governance.
• Managing carbon footprint, particularly Scope 3 emissions.
• Addressing child labor and forced labor in the supply chain.
• Ensuring compliance with quality and safety standards.
• Reducing textile waste and promoting circularity.

Mitigation Strategies

• Strengthened programs for supply chain enforcement and empowerment.
• Launched several programs to support suppliers in their decarbonization journeys (Clean by Design, solar energy promotion).
• Implemented stricter penalties for severe violations (ITVs and IRVs).
• Implemented a quality monitoring and control (QMC) system.
• Launched SHEIN Exchange platform for peer-to-peer resale, pilot take-back programs, and the SHEIN EPR Fund.

Supply Chain Management

Supplier Audits: 3,990/year

Responsible Procurement

• Supplier Code of Conduct
• SHEIN Responsible Sourcing (SRS) Policy
• Supplier Responsibility Standards

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products
• Expansion of renewable energy use

Reporting Standards

Frameworks Used: GRI Standards 2021, UN Global Compact

Certifications: ISO 45001, ISO 14001, ISO 27001, PCI DSS, Zero Waste to Landfill

Third-party Assurance: Deloitte Touche Tohmatsu Hong Kong (Limited Assurance)

UN Sustainable Development Goals

• Goal 5
• Goal 6
• Goal 7
• Goal 8
• Goal 12
• Goal 13
• Goal 15
• Goal 17

Initiatives aligned with various SDGs, including gender equality, water use efficiency, renewable energy, decent work, sustainable consumption and production, climate action, biodiversity, and global partnerships.

Sustainable Products & Innovation

• evoluSHEIN by Design products
• Products using recycled polyester and deadstock fabrics

Awards & Recognition

• Not disclosed