Parent company of Zara, Pull&Bear, Massimo Dutti
Inditex has committed no new thermal coal boilers in its supply chain from 2023 and required its suppliers to reduce thermal coal demand in their manufacturing. Inditex was one of the first apparel companies to commit to transitioning to zero emissions vessels with Cargo Owners for Zero Emission Vehicles. However, the target date for achieving this, which is currently 2040, should be brought forward. As one of the fashion companies with the largest GHG emissions, Inditex should set a stronger emissions reduction target for its supply chain. To keep pace with its competitor, H&M, the company should provide financial support and other incentives to suppliers to move forward with the energy transition in manufacturing. Inditex also needs to demonstrate progress in reducing its reliance on fossil fuel based materials and sourcing 100% cotton from regenerative agriculture by 2030.
Key Findings for Inditex
Inditex has set an emissions reduction target for its own operations of 90% by 2030, and the company has also set an emissions reduction target for its supply chain of 20% by 2030, which is not in line with the 55% reduction required to keep warming below 1.5°C.
Inditex has set a renewable energy target of 100% renewable energy in its own operations which it is close to meeting, but the energy is largely based on Renewable Energy Credits and not additional to the grid.
Inditex has yet to set a target of 100% renewable energy for its supply chain by 2030, which is an essential step for decarbonising its manufacturing.
Coal phase out:
As a signatory of the renewed UN Fashion Charter, Inditex has committed to phasing out coal-fired boilers from its supply chain by 2030 to reduce air pollution and cut emissions.
Inditex publicly reports GHG emissions in its own operations, and in its supply chain. The company does provide a full breakdown of its Scope 3 emissions.
Inditex publicly reports its energy use for its own operations, including a breakdown of its renewable energy use and how that energy is sourced.
For its supply chain, Inditex does not publicly report its energy use, a breakdown of its suppliers’ renewable energy use or how that energy is sourced.
Inditex provides an overview of its supply chain, but does not publish a list of suppliers.
Inditex provides its suppliers with training and resources to help them make energy efficiency improvements but it is not discernible that it provides its major suppliers with financial incentives for energy efficiency measures. Inditex does not require them to make energy savings as a condition of contract.
Inditex requires suppliers to reduce thermal coal demand in their manufacturing processes, including no new thermal coal boilers from 2023.
Inditex reports providing its suppliers with training and resources to help them transition to renewable energy, and promotes renewable and energy efficient manufacturing by recognizing suppliers’ emissions reductions measures through the Join Life standard. The company does not report providing financial support or incentives to make the energy transition, and does not require suppliers to use renewable energy as a condition of contract.
Inditex does not require its suppliers to set GHG emissions reduction targets or set science-based emissions reduction targets, but does consider reduction targets as part of internal sustainability ranking for the Green to Wear collection. Inditex does require suppliers to provide some supply chain transparency. But it is not clear if it requires suppliers to share facility level data and annually report GHG emissions.
Inditex has not made any commitments to phase out fossil fuel based materials.
Inditex has not made a public policy to ban the sourcing of leather from the Amazon Biome or taken measurable steps to ensure that Amazon leather is not contributing to deforestation, and does not have processes in place to avoid leather sourced from deforested regions. Inditex does have a general policy against contributing to deforestation through other materials including cellulose-based fabrics through its Forest Product Policy, in its material sourcing policy and through joining the LEAF coalition.
Inditex has committed to increase closed-loop apparel-to-apparel recycling for synthetics and plant-based materials by supporting pilot projects to scale up recycled fibres. Inditex has also committed to reduce the impact of its natural raw materials sourcing by switching to more sustainable cotton and cellulosics by 2023, but has not specifically committed to 100% organic cotton or cotton sourced from regenerative agriculture by 2030.
Inditex is acting partially to increase circularity by reusing garments and fibres, including collecting garments for reuse and recovery through its Closing the Loop program and Zara Pre-owned platform (UK only), including offering repair and donation options, but the volumes are still extremely small considering the scale of its impact. Inditex still needs to do more to address overproduction with policies to improve the repairability, resale, durability and recyclability of its clothes.
Inditex annually reports its material mix according to total tonnes of raw material used, broken down into fibres and non-fibres and natural, synthetic or man-made fibres, and reports on the percentage of materials from “more sustainable sources”, but not the material type. Inditex does not report its volume of deadstock or how it manages or disposes of waste material.
Inditex does report its shipping emissions annually, but does not provide a breakdown of its transportation methods. Inditex does include shipping emissions in its GHG reduction targets.
Inditex does not report having a policy to avoid aviation and commit to slower shipping methods such as maritime, rail and land. The company does report using packing efficiency and high-efficiency fuels to reduce emissions from freight, but does not report a near-term plan to ship its cargo via cleaner methods. Inditex reported a 1.1% increase in its upstream transportation and distribution emissions between 2019 and 2021.
Inditex was one of the first apparel companies to commit to transitioning to zero emissions vessels (ZEV) with Cargo Owners for Zero Emission Vehicles, although the target date of 2040 should be brought forward. The company has promoted Zero Emission shipping as part of the coalition, but has not publicly advocated for ports and infrastructure to support zero emission vessels.
Inditex has begun to transition its last mile delivery to zero emission vehicles in China, but not internationally.
Inditex signed on to a We Mean Business Coalition letter to the G20 to focus on keeping warming below 1.5°C, but did not engage in any discernible advocacy to promote renewable energy during the 2023 Scorecard period.
More About Inditex
EngagementInditex provided feedback on the 2023 Scorecard
- “About Zara Pre-Owned,”, https://www.zara.com/uk/en/preowned-about-mkt5795.html.
- “Clean Cargo Members,”, https://www.smartfreightcentre.org/en/clean-cargo-members/.
- “COP26: Businesses Urge World Leaders to Keep 1.5°C Alive – We Mean Business Coalition,” 2021. https://www.wemeanbusinesscoalition.org/g20-2021/.
- “EU Strategy for Sustainable Textiles,”, https://ec.europa.eu/info/law/better-regulation/have-your-say/initiatives/12822-EU-strategy-for-sustainable-textiles/public-consultation_zh.
- “Forest Product Policy to Protect Ancient and Endangered Forests,” 2020. https://www.inditex.com/itxcomweb/api/media/e0afb904-fc49-4995-af83-a2430931d43d/inditex_forest_product_policy.pdf?t=1655306505583.
- “Green to Wear 2.1 – Sustainability Standards for Wet Process Mills,” January 2023. https://www.inditex.com/itxcomweb/api/media/b070aace-da1a-496f-929e-12da33285c32/inditex_green_to_wear_standard.pdf?t=1666193628621.
- “Inditex CDP,” 2020.
- “Inditex CDP,” 2021.
- “Inditex CDP,” 2022.
- “Statement on Non-Financial Information 2021,” May 2, 2022. https://www.inditex.com/itxcomweb/api/media/8cae4f70-40ea-4152-9688-732c4fdd8d91/2021_inditex_statement_of_non_financial_information.pdf?t=1655306399672.
- “Sustainability,”, https://www.inditex.com/itxcomweb/en/sustainability.
- “Sustainability, the Basis for Transformation – 2021 Inditex Annual Report,” March 20, 2022. https://static.inditex.com/annual_report_2021/en/unique-model/sustainability-basis-transformation.html.