Is Temu Bad for the Environment? An In-depth Examination

Temu, a recently launched e-commerce platform, has gained significant traction for its low prices and extensive product selection. However, the environmental impact due to excessive packaging waste, carbon emissions from transportation, and potential overconsumption is a rising concern. 

Its parent company, PDD Holdings, having already captured markets with Pinduoduo, now aims to dominate the e-commerce landscape with Temu, marrying affordability with an extensive product range. This approach has propelled the platform to outshine giants like Amazon and Shein in app downloads, highlighting its quick ascension to prominence in fast-fashion retail.

Questions surface as Temu weaves into daily shopping habits, especially when the company dispatches more than a million packages globally daily.

As the digital marketplace continues to expand, the environmental impact of online shopping platforms like Temu becomes a critical topic of discussion. The question "Is Temu Bad For The Environment?" 

We will explore various aspects of Temu's operations, from its supply chain logistics to its packaging methods and the overall sustainability of its business model. This article provides a comprehensive overview of Temu's environmental footprint by examining relevant statistics, current trends, and factual insights. 

Temu, launched in August 2022 by PDD Holdings Inc., is a Boston-based e-commerce platform quickly becoming one of the most downloaded shopping apps in the US alone. It offers a wide range of products at very low prices, from electronics to fashion and home essentials. 

Temu connects consumers directly with manufacturers, primarily in China, allowing for significantly reduced prices through economies of scale and minimised intermediary costs.

Temu's approach to e-commerce is deeply intertwined with its origins and operational strategies. This has quickly escalated to a significant player by connecting buyers directly with manufacturers, predominantly in China. 

It is centred around providing products at near-wholesale prices by leveraging a vast network of over 11 million merchants available through PDD Holdings. This model, known as Next-Gen Manufacturing (NGM), optimises everything from product development to delivery, ensuring cost savings passed on to consumers.

This model allows for significantly reduced prices as it eliminates middlemen, providing goods directly from factories to consumers.

By examining these facets of Temu's business model, we gain insights into how the company maintains low prices and rapid growth, albeit with significant environmental and ethical challenges that need addressing.

Despite its popularity, Temu has faced criticism for its environmental footprint, a common concern for fast fashion and e-commerce entities. The rapid turnover and low-cost nature of products encourage overconsumption, leading to significant waste and increased carbon emissions from transportation.

According to a study by Brightly, online shopping generates 4.8 times more packaging waste than offline shopping. With Temu shipping over 1.6 million parcels daily, packaging waste accumulates rapidly. Individual shipments create more packaging waste than traditional retail. 

Another aspect is the cross-border shipping model, where products are transported directly from China to consumers worldwide, contributes significantly to carbon emissions. As reported by the International Air Transport Association (IATA), 131 billion parcels, or 80% of cross-border e-commerce, are now transported by air, a mode of transportation with a higher carbon footprint than shipping.

The company's operations, heavily reliant on fast fashion, contribute to substantial resource depletion and pollution. Annually, the fast fashion sector, which includes Temu, is responsible for producing approximately 92 million tons of waste and consuming nearly 79 trillion litres of water. This massive consumption exacerbates the strain on our planet's resources, leading to severe environmental degradation.

Additionally, the need for more transparency regarding Temu's sustainability practices and the impact of its rapid growth on the environment is alarming. 

Total annual impact: Based on estimates, if Temu maintains its current volume of 1.6 million parcels daily, the company will facilitate over 584 million shipments annually. With each air shipment from China producing roughly 10kg of CO2, Temu's operations could generate over 5.8 million tonnes of CO2 emissions per year, not including other sources like packaging waste and energy usage. 

The platform's business model encourages overconsumption, increasing packaging waste and contributing to landfill overflow. 

Impact per day: Temu's 1.6 million daily parcels translate to approximately 16,000 tonnes of CO2 emissions from air transportation alone, in addition to vast amounts of packaging waste and other environmental costs.

Impact per usage: Each Temu order contributes to overconsumption, packaging waste, and carbon emissions from manufacturing and air freight transportation. A single Temu purchase can produce over 10kg of CO2, not accounting for the environmental toll of the product itself. The low cost and high volume of transactions encourage more frequent purchases and, consequently, a more significant cumulative environmental impact. 

Various sources show Temu has made significant inroads in several key global markets. The United States, United Kingdom, and Australia are among the top consumers of Temu's offerings. This rapid growth has been fueled by Temu's £696 million annual marketing budget. 

Here’s a quick look at Temu's reach and its top purchasing countries:

Here's a breakdown of the top countries by region

While Temu's primary focus has been the North American and European markets, the company has been actively broadening its reach to other regions. 

In July 2023, Temu introduced its services in Japan and South Korea, expanding its Asian footprint. The following month, Chile became the first South American country to gain access to the Temu platform.

Their rapid expansion can be attributed to their unique business model, Next-Gen Manufacturing, which leverages data-driven insights to match supply with demand efficiently. However, the high volume of shipments contributes to substantial carbon emissions, while the demand for fast fashion accelerates resource depletion and waste production.

The e-commerce platform has made waves in the global market due to its competitive pricing and vast product range. However, its impact extends beyond consumer savings, raising concerns about environmental sustainability and carbon footprint. 

Here's a closer look at Temu's statistics and their implications on a global scale. Sourced from different environmental impact studies

Temu's primary draw lies in its shockingly low prices, often undercutting competitors like Amazon by significant margins:

Temu achieves these prices by cutting out middlemen and shipping directly from manufacturers in China to consumers. 

The e-commerce platform has sparked a global debate over its ethical standing. Recent scrutiny by US lawmakers has brought to light serious ethical concerns regarding their business practices, particularly the risk of forced labour in its supply chain. A US Congressional Report from June 2023 highlighted an "extremely high risk" of products being sourced from regions like Xinjiang, known for human rights violations.

Currently, the answer is no. The business model promotes overconsumption due to its aggressive marketing of low-priced items, leading to excessive waste and increased landfill contributions. Moreover, using cheap materials often results in quickly discarded products, exacerbating compounding waste issues​. 

Investigations have highlighted that Temu needs to adequately audit its suppliers to ensure adherence to ethical standards, particularly those preventing forced labour.

Despite claims of sustainability efforts, Temu must provide more public information on its actual environmental and social governance (ESG) actions. This lack of transparency raises questions about the authenticity of its sustainability claims. The term "greenwashing" appears relevant here, as Temu's public relations efforts prioritise appearances over substantial environmental action​. 

However, as the demand for greener practices grows, there is a significant opportunity for Temu to further its sustainability efforts by incorporating renewable energy sources into its operations. For an e-commerce giant like Temu, transitioning to renewable energy aligns with environmental goals and positions the company as a leader in sustainable business practices.

One typical example would be on-site renewable energy generation, which can be done by installing solar panels at their warehouses. This on-site generation can significantly reduce the company's reliance on fossil fuels for electricity, lowering its carbon footprint. It could also be said that the company can encourage or even require its partners to adopt renewable energy practices.

This approach supports the growth of renewable energy and provides Temu with cost predictability.

Many products sold on Temu are made from plastics and synthetic fibres, which are difficult to recycle. For instance, acrylic, commonly used in inexpensive clothing and accessories, is a form of plastic that can take hundreds of years to decompose and is rarely recycled effectively.

The company's use of materials often associated with fast fashion and consumer electronics suggests a complex recycling scenario.

How does Temu's CO2 level stack up against the items we use most often?

To put this into perspective, let's compare Temu's carbon footprint to everyday items and activities that are part of our daily lives.

While exact figures for Temu's CO2 emissions per package are not public, the company has initiated carbon offset programs to mitigate its impact. In comparison, commuting or using household appliances often results in significant carbon emissions.

However, air freight, which Temu relies on heavily, emits approximately 50 times more CO2 for a 1 kg package than sea freight. The sheer volume of deliveries compounds this high carbon shipping cost. The environmental impact is significant, especially compared to everyday activities contributing to our carbon footprint.

Let's consider the carbon footprint of everyday daily activities:

CO2 Emissions

This data reveals Temu's substantial environmental impact. Producing a single dress emits over 200 times more CO2 than a plastic bottle. Even a cheeseburger has half the emissions of a Temu garment. Driving one mile in a car produces 15 times less CO2 than manufacturing a Temu dress.

Note that in terms of their CO2, the fashion industry alone, a significant part of Temu's offerings, is responsible for 10% of annual global carbon emissions. This is more than all international flights and maritime shipping combined.

Temu has several alternatives for affordable online shopping. Some popular options include:

While Temu offers low prices and a broad selection of products, its alternatives often excel in customer protection, product quality, and niche offerings. Platforms like AliExpress provide competitive pricing with benefits such as free shipping and buyer protection, which might appeal more to consumers looking for value beyond low prices​. 

However, when it comes to product quality, customer service, and shipping times, some alternatives offer better experiences. For instance, Amazon is known for its fast delivery and customer service, while eBay provides a platform for unique and second-hand items. 

Temu may present cost savings, but established competitors balance affordability and dependability better.  Remember, actual value encompasses more than just the initial price tag.