Climate Change Data

Environmental Metrics

ESG Focus Areas

• Circular economy
• Decarbonization
• Sustainable Development Goals
• Human rights

Environmental Achievements

• Reduced energy consumption by 9% per square meter at corporate headquarters, logistics centers, and stores.
• 63% of global electricity consumption from renewable sources.
• 35% reduction per m² in emissions related to scopes 1 and 2.
• Over 14,000 tons of recycled cardboard used for Zara online shipments.
• Zara eliminated 100% of plastic bags in its stores.

Social Achievements

• Implemented Workers at the Centre 2019-2022 strategy focusing on decent work and well-being of over 2 million workers.
• Renewed Global Framework Agreement with IndustriALL Global Union, establishing a Global Union Committee.
• Over 1.4 million workers benefited from strategy's actions and programs.
• 220 buyers from headquarters and 75 from local teams trained in responsible purchasing practices.
• More than 22,000 employees received environmental sustainability training since 2014.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Dynamic and constantly changing supply chain.
• Increased requirements from stakeholder groups.
• Global Sustainable Development Goals (SDGs).
• More demanding legislation supporting global progress.

Mitigation Strategies

• Workers at the Centre 2019-2022 Strategy.
• Collaboration with various stakeholder groups (governments, NGOs, suppliers, other brands).
• Application of new technologies.
• Ongoing due diligence and proximity to suppliers, workers, and stakeholder groups.

Supply Chain Management

Supplier Audits: 6,411 social audits

Responsible Procurement

• Code of Conduct for Manufacturers and Suppliers
• Workers at the Centre 2019-2022 Strategy
• Responsible purchasing practices

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: UNGC, Global Fashion Agenda, ZDHC, CEO Water Mandate, Science-Based Targets (SBT)

Certifications: LEED, BREEAM, ISO 14001, ISO 50001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• SDG 3
• SDG 5
• SDG 6
• SDG 7
• SDG 8
• SDG 9
• SDG 10
• SDG 12
• SDG 13
• SDG 15
• SDG 17

Various initiatives contribute to these goals through actions related to decent work, gender equality, water stewardship, renewable energy, responsible consumption and production, climate action, biodiversity, and partnerships.

Sustainable Products & Innovation

• Join Life collection

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change
• Circular Economy
• Human Rights
• Sustainable Development Goals
• Decarbonization

Environmental Achievements

• Achieved 91% renewable energy consumption in facilities, avoiding 493,723 tonnes of greenhouse gas emissions.
• More than 50% of articles featured the Join Life label.
• 100% of cotton from more sustainable sources.
• 100% man-made cellulosic fibres from more sustainable sources.

Social Achievements

• 15,560 employees trained on sustainability (6,960 in 2020).
• Launched the Changemakers program for store staff.
• Workers at the Centre 2019-2022 strategy reached 1,366,420 workers.
• 76% of the workforce are women.
• 50% of Group vacancies filled internally.

Governance Achievements

• Increased weighting of sustainability metrics in long-term incentive plan to 25% (from 10%).
• 15% of the variable annual remuneration of the Group’s Executive Chairman and Chief Executive Officer is linked to the fulfilment of the sustainability policies.
• Variable remuneration of all office employees linked to sustainability metrics.
• Sustainability Policy approved by the Board of Directors.

Climate Goals & Targets

Environmental Challenges

• Climate change
• Supply chain disruptions (implied)
• Achieving net-zero emissions

Mitigation Strategies

• Brought forward Net Zero Emissions goal to 2040 (from 2050).
• Collaboration with various organizations (UN Global Compact, ILO, etc.).
• Implementation of Workers at the Centre 2019-2022 strategy.
• Continuous improvement of due diligence processes.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Workers at the Centre 2019-2022 strategy
• Code of Conduct and Responsible Practices
• Code of Conduct for Manufacturers and Suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 45001:2018

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• SDG 3
• SDG 5
• SDG 8
• SDG 10
• SDG 12
• SDG 13
• SDG 17

Inditex aligns its strategy with the UN SDGs, focusing on those most relevant to its business model. Detailed contributions are described in the report.

Sustainable Products & Innovation

• Join Life products

Awards & Recognition

• Global 100 World’s Most Sustainable Corporations in the World 2022
• Terra Carta seal

Environmental Metrics

ESG Focus Areas

• Stakeholder engagement
• Innovation
• Climate change
• Environmental footprint minimisation
• Protection of natural resources

Environmental Achievements

• Achieved 100% renewable electricity in our facilities
• Reduced relative water consumption (l/kg) in our supply chain by 17% with respect to 2020
• Launched a pilot Collaboration Programme for Environmental Improvement involving 208 key facilities focusing on water, polluting discharges, chemical management, and energy

Social Achievements

• More than 13,000 employees received environmental sustainability training in 2022

Governance Achievements

• No significant penalties or fines were imposed for breaches of current environmental regulations in 2022, 2021, 2020, 2019 and 2018
• Inditex's Risk Management and Control Policy, which has been in force since 2015 and was last modified in 2020, affects the entire Group and forms the foundation of an Integrated Risk Management System (IRMS). It establishes the basic principles, key factors and general framework for action to manage and control risks affecting the Group, including climate risks.

Climate Goals & Targets

Environmental Challenges

• Lack of availability of renewable energies in the markets in which our value chain is deployed

Mitigation Strategies

• Regularly review our models and targets to ensure that they are consistent with our own ambition, our stakeholders’ expectations and the latest scientific evidence
• Increased efforts in reducing scope 3 emissions in 2022
• Launched Collaborative Programme for Environmental Improvement of the supply chain, which has a specific focus on reducing energy consumption and associated emissions, as well as the use of renewable energy.

Supply Chain Management

Responsible Procurement

• Care for Water programme
• Collaboration Programme for Environmental Improvement
• Knowledge transfer platform with best available techniques
• ZDHC MRSL adoption

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, SBTi, TCFD, UN Fashion Industry Charter for Climate Action, ZDHC

Certifications: ISO 14001, ISO 50001, LEED, BREEAM, FSC, PEFC

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 13 (Climate Action)
• Goal 6 (Clean Water and Sanitation)
• Goal 15 (Life on Land)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Water Management
• Biodiversity and Ecosystems
• Circular Economy

Environmental Achievements

• Reduced relative energy consumption per square meter by 19% and per euro of sale by 40% compared to 2018.
• 100% of electricity consumed in own facilities from renewable sources since 2022.
• Reduced water consumption in own facilities by 1% compared to 2022.
• Reduced water consumption by 20% in the supply chain compared to 2020.

Social Achievements

• Launched Zara Pre-Owned platform in 16 markets for repair services, customer-to-customer sales, and donations.
• Clothing Collection Programme recovered 20,259 tonnes of garments and footwear, with 67% reused and 33% recycled or used for energy recovery.
• Launched The Laundry by Inditex, a detergent designed to reduce microfibre shedding.

Governance Achievements

• New Climate Transition Plan devised.
• New sustainability commitments and science-based climate targets (SBTs) introduced.
• Executive compensation linked to ESG achievements (CEO and senior management have specific incentives associated with emission reductions).

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to extreme weather events.
• Challenges in sourcing preferred man-made cellulosic fibres.
• Limited textile waste collection and sorting technologies and infrastructure.
• Ensuring recycled fabrics maintain comparable quality to original fabrics.

Mitigation Strategies

• Developed contingency systems for logistics centers.
• Continuous review systems and insurance policies to cover loss of profit and expenses.
• Collaboration with cellulose pulp manufacturers to implement best available techniques (BATs).
• Own textile recycling projects and collaboration with other organizations.
• Development of a guide to threads and yarns containing mechanically recycled cotton fibre.

Supply Chain Management

Responsible Procurement

• Green to Wear standard
• Environmental improvement plans
• Code of Conduct for Manufacturers and Suppliers
• Fibres Plan

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (storms, floods, freezes)
• Gradual changes in weather patterns (water stress, heat waves)
• Changes in raw material availability (cotton, viscose)

Transition Risks

• Regulatory changes (carbon pricing)
• Legal liability (climate litigation)
• Technological changes (low-carbon technologies)
• Market shifts (consumer preference for sustainable products)
• Reputational risks (climate activism)

Opportunities

• Integrated business model
• Continuous strategic transformation
• Innovation (new materials, processes)
• Customer orientation
• Transformation of the sector
• New business models
• Collaboration
• Efficient consumption of natural resources
• Energy efficiency
• Generation of renewable energies
• Sustainable building

Reporting Standards

Frameworks Used: GRI, SBTi, TCFD, UN Fashion Industry Charter for Climate Action, SBTN, TNFD

Certifications: ISO 14001, ISO 50001, LEED, BREEAM, TRUE, OCS, GOTS, RCS, GRS, FSC, PEFC, ZDHC MRSL

Third-party Assurance: Ernst & Young (in accordance with ISAE 3410 standard)

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 13 (Climate Action)
• Goal 6 (Clean Water and Sanitation)
• Goal 15 (Life on Land)

Initiatives contribute to these goals through emission reductions, renewable energy use, water conservation, and biodiversity protection.

Sustainable Products & Innovation

• Zara Pre-Owned
• The Laundry by Zara Home
• Garments made with recycled polyester (cycora®)
• LOOPAMID® x ZARA capsule collection