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News

Shein and Lufthansa Cargo Sign MoU to Scale Sustainable Aviation Fuel

On 19 August 2025 Shein and Lufthansa Cargo signed an MoU to pilot and scale SAF on Shein air routes, aiming to finalize adoption by February 2026. The plan includes verified SAF certificates, emissions data sharing, and logistical measures to reduce air freight emissions; challenges include SAF supply, cost, and infrastructure.

Last updated: August 27, 2025 1:12 pm
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Key takeaways
Shein and Lufthansa Cargo signed an MoU on 19 August 2025 to scale SAF use on Shein air cargo routes.
Target set to finalize SAF adoption within six months, with an initial implementation deadline of February 2026.
Shein reported 8.52 million tonnes CO2e from transport in 2024, over half of its 16.7 million tonnes total.

Shein has signed a wide-ranging deal with Lufthansa Cargo to cut the climate impact of its global air shipments, with a focus on scaling the use of Sustainable aviation fuel (SAF). The two companies signed a Memorandum of Understanding on August 19, 2025, and set a near-term target to finalize SAF adoption within six months, by February 2026. The move matters because air transport makes up more than half of Shein’s transport emissions, and the retailer’s air-heavy model has pushed its pollution far above peers.

In its latest figures for 2024, Shein reported 8.52 million tonnes CO₂e from transport, out of 16.7 million tonnes CO₂e overall. Transport emissions rose 13.7% year over year, and they are now more than three times those of Inditex, Zara’s parent company. The new agreement aims to shift part of Shein’s air cargo to SAF and to add operational changes that can slow that growth without slowing deliveries.

Shein and Lufthansa Cargo Sign MoU to Scale Sustainable Aviation Fuel
Shein and Lufthansa Cargo Sign MoU to Scale Sustainable Aviation Fuel

Under the plan, Lufthansa Cargo will track SAF use on Shein routes and issue externally verified “Proof of Sustainability” certificates that show the related, traceable emission reductions. The companies will share emissions data, improve reporting, and expand SAF volumes where supply, cost, and operations allow. They will also study other low-carbon steps, from fleet efficiency to logistics improvements, to cut fuel burn and waste along the route.

Shein’s Ethan Shen, General Manager of Global Fulfilment, said the company will pilot SAF on select lanes and expand use where it works, while looking for more ways to lower the footprint of deliveries. Lufthansa Cargo CEO Ashwin Bhat called the tie-up a model for “concrete measures and reliable implementation” in international freight and said the airline wants to support more sustainable supply chains at scale.

Policy and timeline

The MoU’s scope goes beyond fuel. It covers joint work on low-carbon and renewable energy options, better demand planning to reduce last-minute air lifts, and process changes that can move more goods by sea or truck when time allows.

The parties set a firm initial adoption window ending February 2026; progress will be reviewed and expanded after that, with SAF use tracked and certified on agreed routes. The agreement also includes:

  • Knowledge sharing
  • Stronger traceability of shipments
  • Improved environmental and operational reporting across the network

For Lufthansa Cargo, this partnership fits a larger pathway to cut net carbon emissions by 50% by 2030 (vs. 2019) and to reach net-zero by 2050. The carrier points to a mix of SAF, operational tweaks, and technical upgrades—such as aerodynamic films that reduce drag—to squeeze more distance from each tonne of fuel. Details of the group’s climate program are posted on its site: Lufthansa Cargo Sustainability.

For Shein, the numbers tell a hard story. The fast fashion model relies on speed, frequent restocks, and wide global reach, all of which have favored air freight. The company has shifted some volume to sea freight and trucking, but the need for speed-to-market keeps air as a key lever. That is why SAF, though still limited in global supply, is central to this pilot.

Sustainability specialists see SAF as a helpful step but stress that the biggest wins come from cutting the need for air in the first place. That means:

  • Better inventory planning
  • More local production
  • Fewer emergency flights triggered by stock-outs

The MoU nods to these ideas by calling for logistics improvements and stronger forecasting to reduce rush shipments.

Industry context and human impact

Aviation fuel choices can feel abstract, but they influence real jobs and delivery timelines. A shift to SAF on Shein lanes can lower the climate impact of the same work done by pilots, ramp crews, dispatchers, and customs brokers.

If demand planning also improves, warehouse teams may face fewer overnight rushes and more predictable schedules. At the same time, the industry will watch prices: SAF remains costlier than conventional jet fuel, which can flow through to freight rates if used at scale.

Market forces and rules will shape how fast this deal grows. The companies flagged that changes in trade policy—such as the UK’s de minimis rules for low‑value imports—and Shein’s public market plans could affect logistics choices. Strong, transparent reporting tied to externally verified certificates can help regulators and investors judge whether claimed reductions are real.

Key potential impacts:
– For Shein: cut logistics emissions, respond to regulator and consumer pressure, and demonstrate that fast delivery can be compatible with lower-carbon air freight.
– For Lufthansa Cargo: expand SAF supply deals, refine booking and fueling processes, and attract large retail customers seeking certified emissions cuts.
– For the broader sector: increased pressure on fast fashion and freight providers to publish comparable data, test SAF, and shift more volume to sea when schedules allow.

SAF accounting and transparency

In practice, SAF adoption for a global retailer usually follows a “book-and-claim” model:

  1. Fuel is supplied and used within an airline’s network.
  2. A certificate assigns the climate benefit to the buyer.
  3. External verification prevents double counting.

The MoU confirms this path by highlighting Lufthansa Cargo’s Proof of Sustainability documents, which rely on external checks to maintain credible accounting. That approach lets Shein contract for a larger SAF share than may be physically available on any single flight while keeping emissions claims traceable.

Transparency is built into the agreement. The parties will share emissions data and improve reporting of operational and environmental metrics. That matters for independent review and for comparisons across companies, especially since Shein’s transport footprint already exceeds that of major rivals by a wide margin.

Sources and further reading

Both firms directed readers to official statements and climate reports for more detail. Shein’s announcement is posted here: Shein Corporate News. Press teams can be reached at [email protected] and [email protected].

For broader context on retail supply chains and policy debates, readers can also consult VisaVerge.com.

On policy and SAF production, the Federal Aviation Administration provides public resources explaining how Sustainable aviation fuel (SAF) is produced, certified, and blended into the fuel pool: FAA SAF information.

VisaVerge.com
Learn Today
Sustainable aviation fuel (SAF) → A low‑carbon alternative to conventional jet fuel made from renewable or waste feedstocks and blended into aviation fuel.
Memorandum of Understanding (MoU) → A non-binding agreement outlining intentions and cooperation areas between parties, often preceding formal contracts.
Proof of Sustainability → Externally verified certificates issued to document and trace claimed emission reductions from SAF use.
Book-and-claim → An accounting model where SAF usage in an airline network is certified and climate benefits are allocated to a buyer via certificates.
CO2e → Carbon dioxide equivalent, a metric that aggregates greenhouse gases into an equivalent amount of CO2 for comparison.
Fleet efficiency → Operational or technical measures—such as aerodynamic improvements or routing changes—that reduce fuel consumption per flight.
Last‑minute air lifts → Urgent shipments flown due to stockouts or sudden demand, which increase emissions compared with planned transport.
Traceability → The ability to track the origin and handling of fuels or emissions data to validate environmental claims.

This Article in a Nutshell

On 19 August 2025 Shein and Lufthansa Cargo signed an MoU to pilot and scale SAF on Shein air routes, aiming to finalize adoption by February 2026. The plan includes verified SAF certificates, emissions data sharing, and logistical measures to reduce air freight emissions; challenges include SAF supply, cost, and infrastructure.

— VisaVerge.com
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