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Officials launch investigation into alleged shady business practices of fashion giant — here's what the brand may be hiding

According to the European Parliament, textile production is responsible for 20% of global clean water pollution.

According to the European Parliament, textile production is responsible for 20% of global clean water pollution.

Photo Credit: iStock

Shein is under the microscope in Europe for potentially misleading claims about the brand's environmentally conscious efforts.

What's happening?

As Fast Company reported, the fast fashion business is under investigation by Italy's antitrust agency, with the focus specifically on a Dublin-based company that operates Shein's website and app. Shein has been accused of making misleading and vague claims about the sustainability credentials of its products. 

For example, Shein's "evoluShein" range is thought to be overplaying the amount of "green" fabrics used in garments, and customers are not being told that the items cannot be recycled

Furthermore, Fast Company noted that Shein's website displays a commitment to decarbonization, but what it doesn't disclose is that the company's own sustainability reports from 2022 and 2023 show that its production of planet-warming pollution actually increased during those years.


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Why is this concerning?

This all seems to be a classic example of "greenwashing," in which companies claim to be implementing environmentally friendly or sustainable practices to encourage sales but are not putting these policies into action or, worse yet, are doing the complete opposite. 

The European Union is cracking down on greenwashing, introducing laws that ban companies from making vague claims about their intentions when it comes to reducing their polluting impact. 

Italy can levy fines on companies breaching consumer rights rules, with punishments ranging between $5,590 and $11.2 million.

What can be done about greenwashing?

Fast fashion businesses like Shein are among the more commonly accused companies when it comes to greenwashing, with the clothing industry among the world's biggest polluters.

According to the European Parliament, textile production is responsible for 20% of global clean water pollution from dyeing and finishing items. Meanwhile, it cited data from the European Environment Agency that said the textile sector was the "third largest source of water degradation and land use in 2020." The EEA added that the sector is fifth-highest for raw material use and the production of planet-warming pollution. 

With consumers becoming more knowledgeable about where their products come from, how they are made, and the impact materials have on the environment, it's perhaps not surprising that brands are making claims they can't back up to sell more stock.

That's why supporting companies that can demonstrate a tangible level of care for the environment is so important. Making your voice heard with your wallet is perhaps the best way to make global businesses pay attention. 

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