In a significant move, Italy’s Competition Authority (AGCM) launched a greenwashing investigation against Shein in September 2024. The probe, focusing on Shein’s environmental claims, especially through its evoluSHEIN line and marketing materials, comes amid growing scrutiny of fast fashion’s environmental impact. This investigation highlights broader concerns over the fashion industry’s contributions to climate change, waste, and transparency.
The Italian investigation was prompted by growing concerns that Shein's sustainability claims might be misleading. In particular, Italian regulators allege that Shein may have exaggerated its efforts to reduce environmental damage, using vague and ambiguous language on its website under sections like “#SHEINTHEKNOW,” “Social Responsibility,” and its sustainability reports. These claims focus on initiatives such as recycling materials and circular production, which are under scrutiny for being potentially deceptive.
One focal point is Shein's use of the term “sustainable fibers,” where it has been suggested that the company fails to disclose that the vast majority of their clothes are not recyclable. For instance, Shein markets its evoluSHEIN collection as more eco-friendly, but the investigation will assess how much of this clothing is genuinely made from recycled or sustainably sourced materials.
• Carbon Emissions: The fashion industry accounts for around 10% of global carbon emissions, with fast fashion brands like Shein producing vast quantities of low-cost clothing to meet consumer demand.
• Waste Generation: The European Union estimates that less than 22% of textile waste is collected for reuse or recycling. The remaining 78% ends up in landfills or is incinerated. Fast fashion's low-cost, high-volume production model contributes heavily to this waste, producing garments with shorter life spans.
• Water Use and Pollution: Producing a single cotton shirt requires approximately 2,700 liters of water. Fashion’s supply chain also significantly contributes to water pollution through chemical dyes and treatments used in mass production.
Shein's rapid release of thousands of new items daily exacerbates these issues, encouraging disposable fashion consumption. Italian regulators are particularly concerned that Shein’s sustainability initiatives are insufficient to offset the significant environmental damage caused by their broader business model.
Italy's action reflects broader European efforts to crack down on greenwashing across industries. The European Commission recently introduced the Green Claims Directive, which mandates that companies provide verifiable evidence for any environmental claims they make about products or services. This move followed a study revealing that 42% of green claims made by companies in the EU were unsubstantiated, vague, or entirely false.
Furthermore, the European Ecodesign Framework targets industries with high environmental footprints, including fashion, and introduces stricter rules for product lifecycle responsibility. Shein is not the only brand feeling the heat—many global fashion brands have faced scrutiny over their sustainability claims, forcing the industry to rethink its practices.
In response to the Italian probe, Shein issued a statement confirming its cooperation with authorities and reiterated its commitment to sustainability. The company highlighted its climate goals, including a 25% reduction in Scope 3 emissions by 2030, which primarily targets emissions from its supply chain. However, sustainability experts argue that these goals are undermined by the sheer scale of Shein’s production and the company’s reliance on synthetic materials that are often not recyclable.
Shein’s past sustainability reports, despite these goals, have shown rising greenhouse gas emissions, raising doubts about the brand’s ability to meet its targets.
The outcome of this investigation could set a precedent for how fashion brands are held accountable for their environmental claims. If Shein is found guilty of greenwashing, it could lead to significant financial penalties and force the company to rethink its marketing strategies. More importantly, the case may catalyze stricter regulations across the fashion industry globally, pressuring companies to adopt genuine sustainability practices.
For consumers, this serves as a reminder to approach environmental claims with caution and demand more transparency. Many brands, particularly in fast fashion, promote their green credentials to attract environmentally conscious buyers, even if their overall business models remain unsustainable.
Fast fashion brands like Shein have reshaped the retail landscape by providing affordable, trendy clothing, but at what cost? As the demand for transparency and corporate responsibility grows, companies will need to balance profitability with genuine environmental stewardship.
The Italian greenwashing probe is part of a larger trend towards holding companies accountable, not just for the sustainability claims they make, but for their entire environmental impact. Moving forward, fashion brands may need to adopt more circular economy principles—designing clothes that last longer, using fewer resources, and creating systems for effective recycling and reuse—to maintain consumer trust and comply with tightening regulations.
The Shein investigation represents a crucial step toward addressing greenwashing in the fashion industry. As consumers, regulators, and environmental groups push for greater transparency, the pressure on brands like Shein will only intensify. Whether this leads to substantial changes in fast fashion practices remains to be seen, but it’s clear that business-as-usual is no longer an option in an increasingly eco-conscious market.
