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Total Score

C

Manufacturing Emissions Change

-8%

2023 Score

D+
* Baseline year for emissions comparison: 2018

Emissions change of Scope 3 Category 1 emissions when compared with the brand’s baseline year. Emissions change of -27% is used as the benchmark for alignment with 1.5C, based on 50% total reduction by 2030 compared with 2018 levels.

It was one of the only companies in the 2025 Scorecard to set a 100% renewable electricity for its supply chain, aiming to do so by 2040. Inditex does well to set a specific target for its own 100% renewable energy target, ensuring that at least 40% will come from the companies own supply, plus PPAs and VPPAs.

When it comes to renewable and energy efficient manufacturing, Inditex falls short in comparison to its competitor H&M Group, as it fails to provide evidence on how it is supporting supplier decarbonization through financing mechanisms for the majority of its suppliers. Positively, its Environmental Improvement Plan is working with a number of suppliers to increase the purchase and generation of electricity coming from 100% renewable sources and reduce thermal energy consumption.

Inditex does not provide any strong examples of direct renewable energy advocacy in nations like Bangladesh.

A critical area for Inditex to address is its blooming upstream shipping emissions (24% increase against its baseline and 10% year-on-year) and frequent use of air freight as a shipping mode.

Score Breakdown

Climate and Net Zero Targets
Scope 1 and 2: Yes – Reduce Scope 1 and 2 emissions by 90% by 2030 compared to 2018 baseline

Scope 3: Yes – Reduce Scope 3 emissions by 51% by 2030 compared to 2018 baseline

Mid-term (2035/2040) milestones: Yes. Company has a roadmap 2040 with different goals on materials, water, community investment programme, Workers at the Centre Strategy programme, regeneration of 5 million hectares.

Net Zero Roadmap: Aims to be net zero by 2040. Has published a transition plan.

Renewable Energy Targets
Own operations RE target: Yes – has a 100% target. Communicates it has already achieved this and states that by 2026, 40% will come from own supply and schemes like PPAs and VPPAs.

Supply chain RE target: Yes – 100% renewable electricity target in supply chain and manufacturing process by 2040.

Thermal Coal Phase Out
2030 Coal Phase-out Target: Yes. Company is committed to a coal phase out by 2030.

Thermal energy transition/ electrification: The company is committed to phasing out coal by 2030. For production processes requiring steam, it encourages suppliers to electrify equipment or use alternative fuels like certified biomass from agricultural waste when needed. It also ensures that no facilities in its supply chain install new coal-burning boilers through tools like the pre-assessment audit or the Green to Wear standard.

Transparency
Emissions data: Shares this information by Scope 1-3 against baseline. It shares a category breakdown for Scope 3 for two years plus baseline. Does not provide information by country or supply tier in reports.

Supply chain energy data: No clear data on this.

Supplier lists published: No, continues to be opaque about supply chain, questions consistently raised in media. A previous 2022 report has details on supply list clusters but that’s it.

Supplier list link
https://static.inditex.com/annual_report_2022/pdf/SUPPLIERS.pdf and https://sourcingjournal.com/sustainability/sustainability-news/inditex-zara-supplier-list-fashion-revolution-transparency-499238/

Training, feasibility studies, and non-financial support for climate action
According to previous CDP disclosure and reports, Inditex worked with suppliers to provide information and training through its knowledge platform. This includes efficiency in manufacturing. The company launched the Collaboration Program for Environmental Improvement in 2022 to look at supply chains focusing on energy, water and chemicals. In 2024 launched the Supply Chain Environmental Transformation Plan 2024-2027, aimed at fostering environmental best practices. Includes gradual increase in minimum requirements, adding requirements for dry processing facilities, and adds support and evaluation tools through specialist consulting. The 2024 Transformation Plan also adds tools to support with information on solutions for various processes. Worked with We Mean Business coalition on creation of Business Action Checklists to provide information on near term actions.

Additional, targeted support for transition planning: Through the Environmental Improvement Plan, company has launched as a pilot with a selected group of key suppliers to increase the purchase and/or generation of electricity coming from 100% renewable sources and reduce thermal energy consumption in relation to stationary thermal sources. Provides technical assistance through International Apparel Federation partnership.

Financial Support for Decarbonization
Loans and financing: No evidence

Collective financing initiatives: No evidence

Direct/debt-free financing: No evidence

Responsible/equitable buying to enable climate action
Purchasing decisions incentivize climate action: Limited in scope. Inditex’s suppliers are not required to make energy savings as a condition of the contract. It has its code of conduct, Green to Wear standards and Higg FEM data collection rules but not codified into contracts. Through the Inditex Green to Wear Standard, A or B classification suppliers must have: at least 80% of consumed thermal energy must come and be used from renewable energy and at least 40% of consumed electric energy must come and be used from renewable energy. Percentage of suppliers by procurement spend that have to comply with this climate-related requirement only accounts for 19.68%.

Equitable/long-term sourcing to enable climate action: In a section on,’putting workers at the centre’, the company communicated “We want to ensure that a human rights-based approach is systematically incorporated into Inditex’s climate commitments.”

Prices enable climate action: No

Climate Adaptation
Adaptation/worker just transition training funded or provided: No strong examples here

Emergency support developed with local groups: No

Decarbonization Progress
Reducing manufacturing emissions: Reported an 8% reduction in emissions compared with the 2018 baseline in 2024.

Increasing supply chain renewable electricity: No

Coal phase out transition progress: Company has not shared progress on coal phase out, but reports that since July 2023 it does not onboard new suppliers with coal-fired boilers.

Commitment to phase out fossil fuel-derived fibers
No. Company has goal to ensure 100% polyester from sustainable sources by 2030.

Deforestation-free materials
Leather: Inditex Group is working with other players in the industry through the “Deforestation-Free Call to Action for Leather” to advance in this direction, requires informations on name and sourcing country of product and more. Inditex’s Ecosystems and Biodiversity Policy contains detailed commitment to no deforestation, degradation, or conversion of natural ecosystems.

Man-made Cellulosic Fibers: Yes through Canopy and uses Hot Button Ranking.

Low-carbon materials
Yes, multiple strong examples. The company has partnered with BASF on Loopamid, made from 100% textile waste, and signed a three-year agreement with Ambercycle to purchase a significant portion of Cycora®, a material made from polyester waste, for over 70 million euros. In July, Inditex acquired a stake in Galy, a US-based Startup developing lab-grown cotton from stem cells for sustainable materials. In October, Inditex launched a fund to invest €50m ($54m) in innovation projects within the textile sector. In 2022, it also contributed to a US$30m funding round for Circ, a circular fashion company expanding its poly-cotton recycling technology, and made capital investments in INFINITED FIBER and EPOCH in 2024.

Increasing Circularity
Inditex has a goal to use 100% lower impact materials by 2030, including recycled, regenerative and organic cotton. It does however, still use Better Cotton, although has recently reduced its dependency on this. In 2023, the company rolled out pre-owned options in 17 markets and has engaged in multiple partnerships to explore next-gen materials including a three year agreement with Ambercycle.

Target & increase recycled cotton
Company has the goal to use 100% textile fibres from “lower environmental impact” sources by 2030, which includes recycled cotton.

100% recycled/organic/regen cotton + wool, report on progress
Yes. Has the goal to use 100% lower impact materials by 2030, including recycled, regenerative, in conversion organic cotton, and reports its progress.

Support farmers, transition to regen/organic farming
Yes. Working with partners including Organic Cotton Accelerator (OCA) to scale up these practices and the Action Social Advancement (ASA), together with the Laudes Foundation, IDH, The Sustainable Trade Initiative and WWF India to foster regenerative agriculture, restore ecosystems and improve community wellbeing in an area of 300,000 hectares in the states of Madhya Pradesh and Odisha (India).

Resale/repair – % total sales/disclosure on #
In 2023, Zara pre owned was rolled out in 17 markets. The platform enables the repair, resale, and donation of used clothing, helping extend product lifecycles and supporting customers in giving their clothing a second life, contributing to industry circularity.

Direct link resale/repair to reduce production
No, about longevity and circularity.

Materials transparency
Shares material mix: Yes, provides volume and percentage of total fibre basket, including the percentage of recycled fibres.

Provides data on units sold: No, but does provide a total tonnes of raw materials used for 2024.

Inditex is both a leader and a laggard in terms of its upstream shipping, as an early actor on supporting a transition to zero emission vessels, while also being heavily, and increasingly, reliant on aviation to move its products. A recent investigation by Public Eye highlighted the brand’s rapid growth in shipping emissions and significant increase in air freight through Zaragosa airport.

The company does have a target to reduce emissions from upstream transportation, but reported emissions growing by 10% in the year to 2024, and 24% compared with the 2018 baseline.

Inditex does not provide a full breakdown of its transportation modes, or report any plans to limit air freight or reduce emissions, beyond a plan to buy Sustainable Aviation Fuel as a partial offset, which is not a sustainable solution.

Action to reduce the impact of marine shipping: In 2023, Inditex signed an agreement with Maersk to reduce its carbon footprint in maritime transport. This agreement ensures that the freight company will use alternative fuels in their vessels, such as green methanol or second-generation biofuels, reducing emissions by 80% for every litre of fuel consumed, according to research by Maersk. Also member of Sustainable Freight Buyers Alliance (SFBA) and Smart Freight Centre. It is a signatory of the Arctic Shipping Pledge.

Inditex does take action to accellerate the transition to zero emission vessels by 204 as a founding member of COZEV, which is positive, and has set a goal to use alternative fuels for 90% of its maritime shipping by 2025.

Limited direct examples; Inditex prioritises engagement with industry bodies. In 2023, Inditex communicated it joined the Bangladesh Peer Action Group which aims to collectively move towards a planned strategy to phase out the use of coal, and ahead of COP29 signed a World Economic Forum letter in support of net zero and a just transition.