INDITEX.
IXD1.XETRA | Retail sale of clothing, footwear and leather articles in specialized stores
Industria de Diseño Textil, S.A. (Inditex) is a Spanish multinational clothing company headquartered in Arteixo, Galicia. Inditex is best known for its fast-fashion brand Zara, but it also owns other brands such as Massimo Dutti, Pull&Bear, Bershka, Stradivarius, Oysho, and Uterqüe. The company desi...Show More
Better Health for All
-20
Inditex's core products (clothing) have no significant positive or negative health impact. The company's 'Workers at the Centre' strategy aims to reach three million people in its supply chain by 2025.
1
In 2023, the Health Priority Impact Area of this strategy reached 1,125,665 people, which is 37.5% of the 2025 target.
2
Inditex has Product Health and Safety Standards, including 'Safe to Wear' and 'Clear to Wear' standards, and its Green to Wear standard includes oversight of chemicals like potassium permanganate, DMF, and Chromium VI prevention.
3
The company's Occupational Health & Safety Policy, approved in December 2022, aims to prevent work injury and occupational disease among its employees.
4
Inditex supported 953 social and environmental projects in 2024, investing €135 million, which directly benefited over 4.6 million people and included initiatives for improving access to health services.
5
The company has a project on mental health promotion in Portugal.
6
Inditex provides training to suppliers to ensure they understand and properly apply traceability requirements and responsible sourcing, and offers staff theoretical and hands-on training in occupational health and safety.
7
During the COVID-19 pandemic, Inditex mentioned the importance of a flexible sustainability strategy and participated in the 'Covid-19: Action in the Global Garment Industry' initiative.
8
Fair Money & Economic Opportunity
0
The provided articles do not contain specific, concrete data points relevant to any of the KPIs under the 'Fair Money & Economic Opportunity' value. Inditex is a clothing retailer, and the articles primarily focus on its supply chain, worker wages, and transparency practices. There is no evidence that the company offers lending, insurance, money movement, or deposit services to consumers, which are the core activities evaluated by this value.
1
Therefore, all KPIs are omitted due to a lack of direct evidence.
Fair Pay & Worker Respect
20
In 2023, 59% of the global workforce was covered by collective bargaining agreements.
1
The company reported zero fatalities in both 2022 and 2023.
2
A wage audit in Spain in 2023 verified wage parity.
3
Globally in 2022, women were paid 0.4% more than men in total salary.
4
For ITX UK Limited, the median gender pay gap was 0.1% in 2024, meaning women earned 99.9% of men's pay.
5
In 2023, 19% of the workforce was on temporary contracts, a slight increase from 18% in 2022.
6
The company had one product recall in 2023 and two in 2022.
7
Fair Trade & Ethical Sourcing
-40
In 2024, Inditex conducted 19,030 social, traceability, and pre-assessment audits across its 6,615 factories, averaging approximately one audit every 4.18 months per factory.
1
The company states a zero-tolerance policy towards child and forced labor.
2
In 2022, compliance for no forced labor was 100% in Africa, Americas, and the EU, 99.43% in Asia, and 99.87% in Europe outside the EU.
3
For no child labor, compliance was 99.54% in Africa, 100% in Americas, 99.13% in Asia, 90.84% in Europe outside the EU, and 99.93% in the EU.
4
Inditex worked with 1,729 direct suppliers and 8,271 factories in 2022, obliging all suppliers to disclose their entire supply chain.
5
However, it only publishes the number of suppliers in 12 core countries, not individual factory details, and was given a lower overall score by Know The Chain in 2023 compared to 2021.
6
Corrective Action Plans (CAPs) for the most sensitive breaches typically last approximately six months.
7
All manufacturers and suppliers must comply with Inditex's Code of Conduct, which establishes mandatory standards for labor rights, health, safety, and environmental aspects.
8
The company sources high-risk raw materials including Cashmere, Cotton, Leather (cattle), Rubber (natural) (less than 1% of total consumption in 2022), Silk, Viscose, and Wool.
9
Honest & Fair Business
-30
Inditex has an Ethics Line, which serves as a confidential communication channel, and a zero-tolerance policy against retaliation for whistle-blowers.
1
However, there is no evidence provided regarding independent investigation processes for these reports. The company also maintains a zero-tolerance anti-corruption policy, supported by internal regulations, third-party due diligence, and reporting channels, indicating a comprehensive policy with risk assessments and third-party due diligence.
2
Kind to Animals
0
Insufficient evidence to determine a value score for INDITEX regarding Kind to Animals. No articles or relevant information found. A neutral score of 0 is assigned.
Materiality Analysis: Company Summary (75-100 words): Inditex is a multinational fashion retailer operating primarily through its Zara brand, but also owning Massimo Dutti, Pull&Bear, Bershka, Stradivarius, Oysho, and Uterqüe. It designs, manufactures, distributes, and retails clothing, footwear, accessories, and home textiles. Inditex utilizes a vertically integrated, fast-fashion business model with a global network of stores and online platforms. Its core business revolves around the retail sale of apparel and related products, responding rapidly to fashion trends.
Peer Comparison (50-75 words): Compared to other fast-fashion retailers, Inditex's performance regarding animal welfare is mixed. Some competitors have made stronger public commitments to cruelty-free practices and alternative materials. However, Inditex has taken steps to address animal welfare concerns, such as banning angora wool. Overall, Inditex performs around the industry standard.
Materiality Assessment (1-2 clear sentences): Inditex's business model is fundamentally neutral to slightly in conflict with the "Kind to Animals" value, with medium materiality.
Detailed Rationale (150-200 words): As a major fashion retailer, Inditex's supply chain involves the potential use of animal-derived materials like leather, wool, down feathers, and silk. The sourcing of these materials raises concerns about animal welfare practices in agriculture and production. While Inditex has policies against animal testing for cosmetics and fragrances, the potential for animal suffering exists within its broader textile supply chain. The company's fast-fashion model, which emphasizes rapid production and consumption, can exacerbate these issues by placing pressure on suppliers to prioritize speed and cost over animal welfare. Inditex's scale means that even small changes in sourcing practices can have a significant impact. The company has made some progress in banning specific materials like angora, but a more comprehensive approach to ethical sourcing and supply chain transparency is needed to fully align with the "Kind to Animals" value.
Value Interaction Notes (if applicable, 25-50 words): Inditex's pursuit of affordability and rapid trend cycles may create tension with the higher costs often associated with ethically sourced, animal-free materials.
Scoring Boundary Flags (if applicable, 25-50 words): Scores in the highest positive ranges would be illogical without substantial evidence of comprehensive cruelty-free certification across all relevant product lines and a complete transition to animal-free alternatives. A score above 7 is unlikely.
No War, No Weapons
-50
Inditex states it only works with companies and in markets that comply with embargoes, restrictions, or trade sanctions.
1
In response to the invasion of Ukraine and economic sanctions, the company halted trading in Russia, closing 502 shops and stopping online sales.
2
The company's Ethics Committee reports to the board of directors via the Audit and Compliance Committee.
3
Inditex invested €135 million in social and environmental projects in 2024, representing approximately 0.35% of its €38,632 million net sales for the same year.
4
In 2022, it invested €87.9 million in community initiatives, with 37% allocated to emergency relief, including a €3 million monetary contribution and 313,000 articles for Ukraine war relief.
5
Since 2008, Inditex has channeled over €37 million to Médecins Sans Frontières (MSF).
6
The company's Community Investment Policy, updated in 2022, aligns with best practices and recommendations.
7
Inditex was one of the first signatories of the United Nations Global Compact in 2001 and references UN Guiding Principles on Business and Human Rights (UNGP) in its annual report.
8
The company runs a strict compliance program based on continuous audits and action plans to ensure appropriate social and working conditions in factories.
9
Inditex's Corporate Community Investment program uses the Business for Societal Impact (B4SI) methodology to measure outputs and impacts of initiatives.
10
The company may use tools and software to monitor the use of resources and technological devices for legally permitted purposes, ensuring compliance with privacy and data protection guidelines.
11
Planet-Friendly Business
-50
Inditex's total Scope 1, 2, and 3 greenhouse gas emissions were approximately 16.43 million tCO₂e in 2023, with overall emissions flat in 2024 compared to 2023.
1
The company has SBTi-validated targets aligned with a 1.5°C pathway, aiming for a 90% reduction in Scope 1 and 2 emissions and a 51% reduction in Scope 3 emissions by 2030, with a net-zero target by 2040.
2
All of Inditex's own facilities have consumed 100% renewable electricity since 2022, and 92% of its total energy consumption came from renewable sources in 2024.
3
Water consumption per square meter was 177 litres/m² in 2024, down from 243 litres/m² in 2018.
4
Inditex aims to reduce water consumption in its supply chain by 25% by 2025.
5
The company diverts 91% of non-hazardous waste and 92% of hazardous waste from disposal.
6
In 2024, 7.8% of capital expenditure was aligned with the EU Taxonomy.
7
Inditex uses Life Cycle Assessments for materials and processes, and 33% of all fibers and raw materials used in products were recycled in 2024.
8
The company has committed to protecting, restoring, regenerating, or improving biodiversity across 5 million hectares by 2030 and has an Ecosystems and Biodiversity Policy.
9
Inditex reported no product recalls for health and safety reasons resulting in fines or penalties in 2024.
10
The company's approach to climate management and disclosure is underpinned by TCFD recommendations, and it performs climate scenario analysis.
11
Packaging CO₂ reduction efforts include eliminating 95% of single-use plastics by 2023 and reducing new paper bag consumption by over 50% in 2024.
12
Inditex supports social and environmental projects, investing €135 million in 2024, and has a 'Workers at the Centre' strategy for a just transition.
13
Respect for Cultures & Communities
-20
Zara (Inditex) was accused by Mexico's Ministry of Culture of cultural appropriation for using a pattern distinctive to the Indigenous Mixteca community of San Juan Colorado.
1
Inditex issued a statement denying intentional borrowing.
2
The company provides an Ethics Line, available in 21 languages, for employees, suppliers, and third parties to raise concerns.
3
In 2023, over 15,000 employees received training on sustainability, but specific cultural sensitivity training completion rates are not provided.
4
The company's PFAS-free Manufacturing Guidance is available in Spanish, Chinese, and Turkish, indicating limited language inclusivity in product-related communications.
5
Safe & Smart Tech
0
No evidence available to assess INDITEX on Safe & Smart Tech.
Zero Waste & Sustainable Products
-20
Inditex has eliminated 100% of single-use carrier bags.
1
In 2020, 62.3% of its plastic packaging was reusable, recyclable, or compostable.
2
The company has set several waste reduction targets, including a 50% reduction in virgin plastic and a 20% reduction in total plastic packaging by 2025, both compared to a 2019 baseline.
3
It also aims for 25% of textiles to be Next Gen by 2030 and 100% sustainable raw materials and fibers by 2030.
4
Inditex has implemented waste reduction initiatives such as the "Green to Pack" program, which reduced paper use in warehouse-to-retail boxes by nearly 80%, and a fee for paper bags and envelopes, which reduced consumption by 47%.
5
Additionally, 61.8 million plastic hangers were retrieved from stores for reuse in 2020.
6
The company promotes customer reuse through its "Bring Your Bag" initiative.
7