Inditex
OVERALL |
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Owned |
ESP |
Rating |
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Fashion
World's largest fashion group. Operates over 5000 stores, most of which are company owned. Most sales occur in Europe under eight different banners including Zara. The group designs and manufactures almost everything by itself. 50% of the products Zara sells are manufactured in Spain, 26% in the rest of Europe, and 24% in Asian and African countries and the rest of the world. Spain's richest man, Amancio Ortega, founded Zara in 1975 and later created Inditex as a holding company.
| Industria de Diseno Textil SA | ESP | website | ||||
Company Assessment
| PRAISE | CRITICISM | INFORMATION | ||
| Industria de Diseno Textil SA | ||||
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In 2020, the Carbon Disclosure Project (CDP) asked companies to provide data about their efforts to reduce greenhouse gas emissions and mitigate climate change risk. Responding companies are scored across four key areas: disclosure; awareness; management; and leadership. This company received a CDP Climate Change Score of A-.
Source: CDP (2020)
This company received a score of 70.3/100 (retrieved 10-Oct-2020) in the Corporate Information Transparency Index (CITI), a system for evaluating supply chain practices in China, particularly in regards to environmental management and water pollution. Scores are calculated using government compliance data, online monitoring data, and third-party environmental audits, as well as trends in the environmental performance of factories in the company's supply chains.
Source: IPE (2020)
The 2019 Corporate Human Rights Benchmark assessed 200 of the largest publicly traded companies in the world from the Agricultural Products, Apparel, Extractives and ICT Manufacturing sectors on 100 human rights indicators. This company's score was in the 60-70 band range. The overall average score was a disappointing 24%.
Source: CHRB (2019)
A grade in the Baptist World Aid Australia's 'Ethical Fashion Report 2019', which grades companies, from A to F, on the strength of their systems to mitigate against the risks of forced labour, child labour and worker exploitation in their supply chains, as well as protect the environment from the harmful impacts of the fashion industry. Assessment criteria fall into five main categories: policies, transparency and traceability, auditing and supplier relationships, worker empowerment and environmental management.
Source: Baptist World Aid Australia (2019)
The Ethical Trading Initiative (ETI) is an alliance of companies, trade unions and NGOs. They work in partnership to improve the lives of workers across the globe who make or grow consumer goods - everything from tea to T-shirts, from flowers to footballs. This company is a full member.
Source: Ethical Trading Initiative (2018)
This company has signed the Cotton Pledge with the Responsible Sourcing Network, signifying a public commitment to not knowingly source Uzbek cotton for the manufacturing of any of their products until the Government of Uzbekistan ends the practice of forced labor in its cotton sector. The Uzbek government uses local government officials, hospital directors, and school presidents to mobilize workers; and detains and tortures human rights defenders seeking to monitor the harvests.
Source: As You Sow (2019)
In 2020, the Carbon Disclosure Project (CDP) asked companies to provide data about their efforts to manage and govern freshwater resources. Responding companies are scored on six key metrics: transparency; governance & strategy; measuring & monitoring; risk assessment; targets & goals; and value chain engagement. This company received a CDP Water Security Score of B.
Source: CDP (2020)
This company has signed the 'Accord on Fire and Building Safety in Bangladesh', a program endorsed by Bangladeshi and international unions and labor rights organizations. The ground-breaking program includes independent safety inspections with public reports, mandatory factory building renovations, the obligation by brands and retailers to underwrite the cost of repairs, and a vital role for workers and their unions all in a legally-binding, enforceable agreement.
Source: Bangladesh Accord (2019)
In 2020 Baptist World Aid Australia released The COVID Fashion Report, a special edition of their Ethical Fashion Report. The report is framed around six COVID Fashion Commitments that ask companies to demonstrate the steps and measures they are taking to protect and support the most vulnerable workers in their supply chains. This company showed evidence of actions that cover ALL areas of the COVID Fashion Commitments.
Source: Baptist World Aid Australia (2020)
In 2020/21 KnowTheChain benchmarked over 180 large global companies in the ICT, Food & Beverage, and Apparel & Footwear sectors on their efforts to address forced labour and human trafficking in their supply chains. This company received a score of 55/100.
Source: KnowTheChain (2021)
The 2021 Global 100 Most Sustainable Corporations in the World list is an extensive data-driven corporate sustainability assessment. The ranked companies are leaders in the field of a sustainable business approach. The efficiency of a company's energy, water, CO2 and waste management is measured in relation to its total sales volume. The disclosure of that information is a pre-condition for the assessment. Of the 143 companies in its peer group, this company ranked #2.
Source: Corporate Knights (2021)
The 2020 Fashion Transparency Index reviewed 250 of the world's largest fashion brands and retailers and ranked them according to how much they disclose about their social and environmental policies, practices and impacts. Brands owned by this company scored 44%, signifying that it is making significant efforts in the given areas, and has made some or most of this information publicly available. The average score was 23% and the highest score was 73%.
Source: Fashion Revolution (2020)
This company received an S&P Global ESG Score of 75/100 in the Retailing category of the S&P Global Corporate Sustainability Assessment, an annual evaluation of companies' sustainability practices (last updated 7 Feb 2021). The rankings are based on an analysis of corporate economic, environmental and social performance, assessing issues such as corporate governance, risk management, environmental reporting, climate strategy, human rights and labour practices.
Source: S&P Global (2021)
The Material Change Index (MCI) is a voluntary benchmark that tracks the apparel and textiles sector's progress toward more sustainable materials sourcing (cotton, polyester, nylon, manmade cellulosics, wool, down and leather), as well as alignment with global efforts like the Sustainable Development Goals and the transition to a circular economy. This company is identified as one of 36 "Leading" companies.
Source: Textile Exchange (2020) |
In early 2017, China's Communist Party began a new incarceration campaign, rounding up, detaining and forcibly indoctrinating over 1 million Uyghurs and other Muslim minority ethnic groups in the far-western region. A coalition of more than 180 human rights groups is calling on apparel brands and retailers to stop using forced labour in the Uyghur Region and end their complicity in the Chinese government's human rights abuses. This company is amongst those being targeted by coalition members for not doing enough to identify and disengage from business relationships with Uyghur Region-linked forced labour.
Source: End Uyghur Forced Labour (2021)
The Clean Clothes Campaign report, Tailored Wages 2019 analyses responses from 32 top clothing brands about their progress in implementing a living wage for the workers who produce their clothes. This company received the lowest possible grade in the report, meaning they produced no evidence that any worker making their clothes was paid a living wage anywhere in the world.
Source: Clean Clothes Campaign (2019)
This company sources garments from factories in the Tamil Nadu region of South India. The yarn used in these factories also comes from Tamil Nadu, where large scale forced labour is used in the spinning mills. Workers in these mills are enslaved by employers who withhold their wages or lock them up in company-controlled hostels. They work long hours, face sexual harassment and do not even earn the minimum wage.
Source: India Committee of the Netherlands (2016)
This 2015 report by SOMO and Reporter Brazil reveals numerous labour rights violations in this company's supply chain in Brazil, such as excessive overtime and occupational health and safety violations. In 2011, Brazilian inspectors found cases of modern-day slavery in Zara's supply chain. This new report shows that Inditex is not living up to the agreements made with the Brazilian authorities at that time. In addition, the research report exposes this company's dodgy legal strategy to avoid liability for Brazilian labour rights abuses.
Source: SOMO (2015)
The Forest 500 identifies, ranks, and tracks the governments, companies and financial institutions worldwide that together could virtually eradicate tropical deforestation. Rankings are based on their public policies and commitments and potential impacts on tropical forests in the context of forest risk commodities (palm oil, soy, beef, leather, timber and paper). This company received a score of 34%.
Source: Forest 500 (2020)
In 2016 Rank a Brand assessed 37 major cotton-using companies on their commitment and performance with regard to sustainable cotton by looking at each company's cotton sourcing policies, use of sustainable cotton, and traceability. This company scored 2.5/19.5, making it one of the weaker performing companies.
Source: Rank a Brand (2016)
This 2016 investigative report by the India Committee of the Netherlands (ICN) reveals how migrant garment workers in Bangalore, South India endure appalling living conditions, low wages and restricted freedom of movement. This company pledged to take serious action after being named in the report as sourcing from Bangalore.
Source: ICN (2016)
According to Oxfam's 2019 report, "Made in Poverty - The True Cost of Fashion", this company sources from Bangladesh and Vietnam. Some of the many disturbing findings of the research in Bangladesh were that 100 per cent of workers interviewed were not paid a living wage, nine out of ten could not afford enough food for themselves and their families until their next monthly pay and seven out of 10 could not pay for medical treatment when they were sick or injured. In Vietnam, 99 per cent were not paid a living wage and seven out of 10 women interviewed felt their pay was not enough to meet their needs.
Source: Oxfam Australia (2019)
This company received a score of 47.7/100 in the Newsweek Green Ranking 2017, which ranks the world's largest publicly traded companies on eight indicators covering energy, greenhouse gases, water, waste, fines and penalties, linking executive pay to sustainability targets, board-level committee oversight of environmental issues and third-party audits. Ranking methodology by Corporate Knights and HIP Investor.
Source: Newsweek (2017) |
The Apparel and Footwear Supply Chain Transparency Pledge (Transparency Pledge) helps demonstrate apparel and footwear companies' commitment towards greater transparency in their manufacturing supply chain. Transparency of a company's manufacturing supply chain better enables a company to collaborate with civil society in identifying, assessing, and avoiding actual or potential adverse human rights impacts. This is a critical step that strengthens a company's human rights due diligence. This company is not aligned with the Transparency Pledge and has made no commitment to publish supplier factory information.
Source: Transparency Pledge (2019)
As listed on the We Mean Business website, this company has committed to the following climate action initiatives: adopt a science-based emissions reduction target.
Source: We Mean Business (2017)
In 2011, a group of major apparel and footwear brands and retailers, including this company, made a shared commitment to help lead the industry towards zero discharge of hazardous chemicals by 2020. It includes specific commitments and timelines to realize this shared goal.
Source: ZDHC (2019)
Greenpeace launched its "Detox My Fashion" campaign in 2011 to expose the direct links between global clothing brands, their suppliers and toxic water pollution around the world. As a result, many companies, including this one, committed to Greenpeace's Detox Program. The 2016 Detox Catwalk report focused on implementation, assessing the steps taken by fashion brands to fulfil their commitments using three criteria: Detox 2020 plan, PFC elimination and Transparency. This company is "ahead of the curve and on track to meet their commitments".
Source: Greenpeace (2016)
This company appears on the 2021 Bloomberg Gender-Equality Index, signifying a commitment to supporting gender equality through policy development, representation, and transparency.
Source: Bloomberg (2021)
This company has announced that they don't sell animal fur or are phasing in a fur-free policy.
Source: Humane Society (2019)
This company has taken angora items off the shelves and promised not to use angora again, following a PETA campaign launched in Dec 2013 which revealed the cruelty inflicted on angora rabbits in Chinese factory farms, where 90% of the world's angora is produced.
Source: PETA (2018)
This company is a signatory to the New Plastics Economy Global Commitment, whose goal is to eliminate plastic pollution at its source.
Source: New Plastics Economy (2019)
This company is a member of the Better Cotton Initiative, a voluntary initiative which encourages the adoption of better management practices in cotton cultivation to achieve measurable reductions in key environmental impacts, while improving social and economic benefits for cotton farmers, small and large, worldwide.
Source: Better Cotton Initiative (2019)
This company is a partner of Better Work, an initiative of the UN's International Labour Organization and the International Finance Corporation which brings diverse groups together - governments, global brands, factory owners, and unions and workers - to improve working conditions in the garment industry and make the sector more competitive.
Source: Better Work (2020)
This company is a participant of Make Fashion Circular, a multi-stakeholder platform run by the Ellen MacArthur Foundation, which drives collaboration between industry leaders and other key stakeholders to create a textiles economy fit for the 21st century. Its ambition is to ensure clothes are made from safe and renewable materials, new business models increase their use, and old clothes are turned into new. This new textiles economy would benefit business, society, and the environment.
Source: Ellen MacArthur Foundation (2019)
This company is a participant in the Action, Collaboration, Transformation (ACT) initiative, an initiative between international brands and retailers, manufacturers, and trade unions to address the issue of living wages in the textile and garment supply chain.
Source: IndustriALL (2021)
This company is a member of the Leather Working Group, a multi-stakeholder group who's objective is to develop and maintain a protocol that assesses the compliance and environmental performance of tanners and promotes sustainable and appropriate environmental business practices within the leather industry.
Source: Leather Working Group (2019)
This company is a founding member of the Sustainable Apparel Coalition, a multi-stakeholder initiative launched in March 2011 by a group of global apparel and footwear companies and non-profit organizations (representing nearly one third of the global market share for apparel and footwear). The Coalition's goals are to reduce the apparel industry's environmental and social impact, and to develop a universal index to measure environmental and social performance of apparel products.
Source: Sustainable Apparel Coalition (2020)
This company is a member of the Textile Exchange, a global non-profit that works closely with its members to drive textile industry transformation in preferred fibres, integrity and standards and responsible supply networks. They identify and share best practices regarding farming, materials, processing, traceability and product end-of-life in order to reduce the textile industry's impact on the world's water, soil and air, and the human population.
Source: Textile Exchange (2019)
This company is a signatory to the Fashion Industry Charter for Climate Action, a United Nations initiative which contains the vision to achieve net-zero emissions by 2050.
Source: UNFCCC (2020)
This company is a member of the CanopyStyle initiative, which came about when research found that millions of trees are used every year to produce dissolving pulp, a key ingredient for fabrics such as rayon/viscose. The campaign seeks to phase out the use of endangered forest fibre in fabric.
Source: Canopy (2018)
In 2020, the Carbon Disclosure Project (CDP) asked companies to provide data about their efforts towards removing commodity-driven deforestation and forest degradation from its direct operations and supply chains. Responding companies are scored across four key areas: disclosure; awareness; management; and leadership. This company received a CDP Forests Score of C+.
Source: CDP (2020)
California, the UK and Australia have all enacted legislation requiring companies operating within their borders to disclose their efforts to eradicate modern slavery from their operations and supply chains. Follow the link to see this company's disclosure statement.
Source: Modern Slavery Registry (2018)
In 2020 Oxfam evaluated several clothing brand's purchasing practices across seven categories: whether a brand provides accurate forecasts of upcoming work to factories; its price negotiation strategies; whether a factory's environmental and social compliance influences the brand's purchasing decisions; how a brand places orders with factories; what its payment terms are; commitment to pay a living wage; and the transparency of a brand's supply chain. This company was given a score of 2 with 4 being the highest possible score.
Source: Oxfam Australia (2020)
Oxfam Australia's Company Tracker compares the big clothing brands on their efforts to pay a living wage to the women working in their factories. This company has released a partial list of their supplier factories, and has taken some action towards paying a living wage within a set timeframe in the supply chain.
Source: Oxfam Australia (2019) |
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Company Details
| Type | Public company |
| Revenue | 23.3 billion EUR (2016) |
| Employees | 162,450 (2016) |
| Subsidiaries | Group Zara Australia Pty Ltd 
Clothing retail Entered the Australian market in 2011 and today operates 18 stores. |
Contact Details
| Address | Arteixo, La Coruna, Spain |
| Website | www.inditex.com/en |
Products / Brands
Inditex|
Bershka Youth Fashion Massimo Dutti Womens Fashion Massimo Dutti Menswear (casual) Oysho Intimate Apparel Pull&Bear Youth Fashion Stradivarius Menswear (casual) Stradivarius Womens Fashion |
Zara Australia
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Zara Youth Fashion Zara Everyday Apparel |