new sustainability commitments

Fashion is so much more than clothes. Fashion is an outlet for self-expression,

for the creation of communities, stamping one’s identity and following - or
breaking from - the latest trends. It is an enabler of change, allowing us to
make our own rules and display our convictions without breathing a word.

At Inditex we want to be agents of change. We believe in fashion’s

transformational power and we go to lengths to make the fashion industry
a positive force for people and the planet. The pressure on our natural
resources and the challenge implied by climate change warrant a swift
response by all.

Our goal is to continue to offer our customers more environmentally-friendly

clothing and advance towards a circular model - in which waste is turned into
a new input - and zero net emissions.

We want to contribute to the battle against climate change by aligning our

sector with the United Nations’ recommendations and aspirations, so helping
to protect the planet and its inhabitants.

Furthering the work done in previous years, we have set new and demanding
targets for this decade with which we are seeking not only to transform our
products and supply chain, but also to spearhead decisive change in the
textile industry.
New sustainability “The new sustainability targets announced today mark a “Innovation and collaboration are the cornerstones of Inditex’s
qualitative step forward in our roadmap towards profitable and efforts to configure an increasingly sustainable value chain.
commitments responsible growth.
We have identified several priorities for cutting our emissions
These ambitious new goals will unquestionably help transform by over 50% by 2030 so as to attain zero net emissions by
and improve the textile sector and industry and reflect 2040: using materials with a smaller environmental footprint,
the hard work we have been doing across all areas of the transforming our supply chain, extending our circularity projects
company in recent years”. and helping improve biodiversity.

Óscar García Maceiras, CEO of Inditex Among other milestones, by 2030, 100% of our textile products
will be made exclusively from materials with a smaller
environmental footprint.

Also, in line with our biodiversity commitments, we will support

projects for the protection, restoration or regeneration of up to
5 million hectares by 2030”.

Javier Losada, Director of Sustainability at Inditex

3
Contents
Our transformation roadmap 5

Our new commitments 6

Climate change 7

Lower-impact fibres 8
Strategic commitment to recycling 9
Innovative fibres 10
Organic and regenerative agriculture 12

Transforming garment manufacturing 13

Workers at the Centre 14
Environmental transformation 15

Expanding circularity 19

Contributing to biodiversity 20
Our transformation roadmap
At Inditex we are advancing towards a sustainable engaging with all our stakeholders to
model, reducing the environmental footprint of define our roadmap for transforming our
our products and taking new steps in configuring business and that of the entire industry.
an ecosystem which generates positive
impacts for the planet and its inhabitants. To do that we are setting targets, which bind us to
a roadmap based on continuous improvement.
We are etching out the path we need to They help us visualise our final destination and
follow to achieve these goals, analysing the stops we need to make along the way. We
the textile sector in all its manifestations want our ambitions to stimulate innovation
in meticulous detail: the materials we use, and attract talent and the resources needed
the processes needed to manufacture our to transform our industry. We did it in 2019,
products and the suppliers we work with. when we established targets around fibres,
We are partnering with environmental experts, waste and decarbonisation. We added new
third-sector organisations, unions and non- targets in 2021 and now we are updating those
profits to analyse our impacts on our business targets and making new commitments.
communities, whether through our stores
or the manufacture of our garments. Sustainability is an ever-evolving task in
which science and innovation are set to
We are analysing our emissions, water continue to open new doors for achieving
consumption, the chemical products we a circular and more responsible model.
use, the waste we generate, our use of
natural resources and our impacts on Framed by that approach, we have set
communities and ecosystems in fine detail. new targets along our roadmap for
the rest of the decade, a roadmap that
We are working to identify and develop will take us to net zero by 2040.
solutions for these impacts and we are

5
Our new commitments

2025 2030 2040

/ Circularity services such as Zara Pre-Owned / Reducing our emissions by over 50% / Zero net emissions, reducing
in key markets. (in our own operations and our our carbon footprint by at least
value chain). 90% by comparison with 2018.
/ Reaching three million people in the supply
chain via the Workers at the Centre strategy, / Only using textile raw materials with a
fostering progress in social dialogue, living smaller environmental footprint,
wages health, respect and resilience. so-called preferred fibres1.

/ Protecting, restoring, regenerating or

otherwise improving biodiversity across
5 million hectares.

1
The Textile Exchange, a non-profit, defines a “preferred” material as a “fibre or raw material that delivers consistently reduced impacts and increased benefits for climate, nature, and people against the conventional
equivalent, through a holistic approach to transforming production systems”.

6
Climate change

These commitments mark fresh progress and are We have presented SBTi2 with our updated strategy for
designed to align our company’s performance with reducing the emissions associated with our activities
the pathway for keeping global warming within by more than 50% in 2030, structured as follows:
1.5 degrees Celsius.
/ Reducing our absolute scope 1 and 2 emissions
With these climate change targets we want to send (i.e., our own emissions) by 90% with respect to
a message to the industry, to our suppliers and to all 2018 levels.
our stakeholders regarding the need to move forward
with this transformation, addressing the impact of the / Reducing our absolute scope 3 emissions
raw materials we use, banishing fossil fuels, fostering (i.e., those emitted by our value chain) by 50% with
renewable energies and using natural resources respect to 2018 levels3.
more efficiently.
This will move us in the right direction for achieving
Our decarbonisation strategy is articulated around the net zero emissions by 2040. We will do this by
most recent available scientific knowledge. Since we effectively cutting our emissions by 90%. Around
established our net zero commitment and presented 10% of our greenhouse gas emissions are hard
our decarbonisation targets for 2030 to the Science to eliminate. Those will be neutralised or offset via
Based Targets initiative (SBTi) just three years ago, carbon absorption initiatives.
scientific knowledge has evolved, prompting us to
update our strategy in order to embrace the newest
recommendations.

2
The science Based Targets Initiative (SBTi) was established in 2015 as a partnership between the CDP, the United Nations Global Compact, the World
Resources Institute (WRI) and the Worldwide Fund for Nature (WWF) to help companies set targets for reducing their emissions in line with the consensus
around climate science and the Paris Agreement goals.

3
For the purposes of this target, our value chain includes the following categories of scope 3 emissions: purchased goods and services (category 1), fuel- and
energy- related activities (category 3), upstream transport and distribution (category 4), waste generated in own operations (category 5), business travel (category
6), employee commuting (category 7), end-of-life treatment of sold products (category 12) and franchises (category 14).

7
Lower-impact fibres
The extraction and processing of the raw materials That foundational work positions us to take a new
we use accounts for nearly 30% of our emissions. step: by 2030, 100% of our textile products will only
In addition, we use natural resources such as water use materials that deliver a lower impact.
and soil, as well as chemical substances. Hence
the importance of making progress on the use of This commitment is particularly important as textile
materials that deliver reduced impacts, in line with the raw materials represent more than 90% of all the
definition of preferred fibres provided by benchmark materials used by Inditex. The remaining 10% are
organisations such as the Textile Exchange. non-textile materials such as iron or porcelain, none
of which individually accounts for more than 0.5% of
To that end, in recent years we have been working to total purchases.
drive the use of organic and recycled cotton, viscose
from preferred sources and European linen.

How will we deliver this target?

/ We estimate that around 25% of the textile fibres we use will be made from next-generation materials that do not
yet exist at an industrial scale, which is why we are investing in their development.

/ We are aiming to have 40% of the textile fibres we use come from conventional recycling processes.

/ Another roughly 25% will come from crops grown using organic or regenerative farming practices.

/ The remaining 10% will be made from other preferred fibres aligned with the yardsticks set by benchmark
organisations.

8
/ Lower-impact fibres

Boosting recycling

Increased use of recycled materials prevents the

extraction of new raw materials and reduces the
generation of waste. Recycling leads to a reduction in
the consumption of natural resources, such as water
and fertile soil, and helps conserve the environment
and reduce emissions.

We are working to ensure that by 2030, 40% of our

fibres originate from conventional recycling.

9
/ Lower-impact fibres

Next-generation fibres

Today’s recycling technology presents We are working to ensure that by 2030,

significant limitations, as some fibres and 25% of the textile fibres we use are next-
material blends cannot be turned into new raw generation materials that the chemical
materials. That is what prompted us, back in industry, specialists in textile recycling and
2020, to strike strategic research alliances with innovative start-ups are currently researching
chemical industry and set up our Sustainability and developing. These materials will deliver
Innovation Hub with the goal of nudging the a lower impact on the environment than
industry towards new materials, manufacturing the best alternatives available today.
processes and initiatives for improving product
circularity, use and end-of-life options. Achieving this target will require a major
effort to scale up the new fibres which are
We collaborate with over 200 start-ups and currently scarce: many are being pilot tested
chemical industry leaders to introduce new and production is extremely limited.
materials, enhance production processes
and improve recyclability or traceability
traits, among other things. As a result, we
have launched a number of collections with
start-ups including Nextevo and Renewcell,
as part of an ongoing partnership effort.

10
To ensure these solutions have market-wide impact, thus benefitting the industry as a whole, we are collaborating with these start-ups in the following ways:

/ We are sharing our technical know-how about the fabrics needed to make the best / Purchase commitments: last year we struck an agreement with Infinited Fiber under
fashion collections. Our design and buyer teams are participating in this process, which we have committed to purchase 30% of future Infinna™ production for three
sharing their first-hand knowledge of products and customer demands. Our suppliers years. Infinna™ is a recycled fibre made by this company entirely from textile waste. This
are also involved, helping us to transform the new fibres into fabric. All these steps are purchase commitment, valued at over €100 million, has been crucial to Infinited Fiber’s
key to facilitating the commercial and industrial development of these fibres. plans for scaling up its recycling technology by building its first industrial scale factory.

/ Direct investments: raw material blends pose one of the main challenges faced
by existing recycling systems. In 2022, we put equity into CIRC, a start-up whose
technology is capable of transforming polycotton blends, one of the most common in
the sector, into a new recycled raw material. As a result, in 2023, Zara, in partnership
with CIRC, launched its first collection made from recycled polycotton blends.

11
/ Lower-impact fibres

Organic and regenerative agriculture

We want to boost organic and regenerative To meet our goal of having 25% of fibres come
agriculture as crops grown using these practices from crops grown using organic and regenerative
deliver improved soil quality and biodiversity practices, we are supporting projects in different
gains, create more resilient communities, parts of the world. For example, we joined
streamline water management and Conservation International’s Regenerative Fund at
reduce emissions. the start of this year, donating €15 million with the
aim of helping scale up these practices.
In the specific case of cotton, one of the fibres
most widely used in our industry, a mere 2% of We are also working with Action Social
all of the cotton used worldwide is organic. The Advancement (ASA), together with the Laudes
percentage of cotton grown using regenerative Foundation, IDH, The Sustainable Trade Initiative
farming practices is even lower. We are working and WWF India to foster regenerative agriculture,
with organisations such as the Organic Cotton restore ecosystems and improve community well-
Accelerator (OCA) to scale up these practices. being in an area of 300,000 hectares in the states
of Madhya Pradesh and Odisha (India).

12
Transforming garment
manufacturing
If the textile sector is to become more sustainable, we
need to transform our supply chain and the way we
make our clothes, as the vast majority of the impacts
from our activities take place in our supply chain.

We must continue to involve the entire production

chain in order to ensure that the processes we use
are as responsible as possible and that our industry
reaches its full potential as an engine of economic
growth and community development.

At Inditex, we operate a strict compliance programme,

articulated around assessment and continuous
improvement in all of our operating markets and
underpinned by a single social strategy which we call
“Workers at the Centre”, a programme designed to
foster the well-being and empowerment of the people
populating our value chain.

13
/ Transforming garment manufacturing

Workers at the Centre

We have updated this strategy for 2023-2025, In parallel, we are pursuing initiatives to make the
taking a holistic approach to ensure we respond industry more resilient and ensure a fair transition
to the needs of the people populating our supply so that suppliers and their workers can tackle the
chain, especially those who are more vulnerable. challenges facing the sector, such as the transition
to more environmentally-friendly fibres and
We continue to make progress on worker processes, the emergence of new technologies
engagement, while taking new steps in preventive and other social changes that could affect their
health programmes and pushing for safe and personal and professional development.
respectful workplaces free from discrimination in
any of its forms. These programmes will reach three million
people between 2023 and 2025.

14
/ Transforming garment manufacturing

Environmental transformation

Our supply chain Environmental Transformation validate their implementation together with our
programme is articulated around plans for in-house teams, who are specialised in specific
collaborating with suppliers and improvement matters such as the management of chemical
plans with a specific focus on water, discharges, substances.
chemical product management and energy.
We constantly raise the minimum demands
To assess how our manufacturers are and requirements for forming part of our supply
progressing, we rely on a network of experts chain and reinforce relations with suppliers who
who analyse the viability of these actions and demonstrate a willingness and ability to improve.

15
Best available techniques Impetus for clean sources of energy Reducing our water consumption
To advise and accompany our suppliers on the use of As is set down in our endorsement of the Industry Charter The Care for Water programme, launched in 2021, is
clean energies and other more efficient technologies, we for Climate Action under the auspices of UN Climate designed to support facilities that have already been
have a catalogue of Best Available Techniques, which Change, from 2023 on we will no longer certify any new certified as managing water well so that they can advance
is open to the industry, so that manufacturers can learn suppliers or manufacturers who use coal as a source to a standard of excellence. Participating facilities must
about the solutions already available in a number of areas. of energy, while encouraging the rest of our suppliers to draw up an action plan with measures for the adoption
switch to renewable sources so that none of our suppliers of new and more efficient technology, optimisation
is using coal by 2030. of manufacturing processes, reuse and recycling of
wastewater and installation of closed water circuits.

By driving these technologies across the factories we work

with, we have been able to cut our supply chain’s water
consumption by 17% by comparison with 2020 levels.
Our commitment, announced in 2021, is to increase that
percentage to 25% by 2025.

16
/ Transforming garment manufacturing

Use of chemical products

Our promise is that we will only use substances that
are safe for people and the planet.

In 2013, we created The List by Inditex, a pioneering

initiative in the textile and leather industry that, by
collaborating with the chemical industry, seeks to
classify and improve the chemical products used to
make our products.

Framed by our commitment to helping to transform

our sector, we have made The List by Inditex
programme available to the entire industry through
the ZDHC (Zero Discharge of Hazardous Chemicals)
platform whose Roadmap to Zero we have endorsed.

17
/ Transforming garment manufacturing

Innovation around more efficient processes

We are working with other industries to energy savings of up to 60% by comparison with
develop new, lower-impact technologies and alternative continuous dying techniques.
production systems. A good example is the joint
development, with CHT Group, of PIGMENTURA In parallel, we are working with BASF to devise
by CHT, an innovative dyeing solution which and fine-tune the first cold industrial wash system,
reduces water consumption by 96%. SOKALAN HP 56 A, and with Pulcra Chemicals
to develop the first combined pretreatment and
That novel development, the first outcome of our dying system for cotton and polycotton, Susteneri
research alliance with CHT, which dates to 2020, by Pulcra. Both technologies deliver, without
is based on pigment dying, which eliminates the the need for new investment, a considerable
need for water during the washing and drying reduction in water and energy consumption
phases, while also reducing the energy needed during exhaust dying.
for heating during the process. This translates into

18
Expanding circularity
We are aware that our responsibility does / Donation: customers can ask to have their
not end in our stores and we want to help our used clothing picked up at their homes for
customers extend the life of their garments and donation to non-profits which then sort the
advance towards a circular model. products for reuse whenever possible or
recycling if they have reached the end of
That was behind our decision to launch Zara their life cycle, supporting projects in local
Pre-Owned in 2022, a pioneering platform communities. The donation service accepts all
accessible from Zara stores and the Zara website brands.
and mobile app, which offers repairs, customer-
to-customer sales and the possibility of donating Currently, Zara Pre-Owned is available in the UK
used clothing. and will be implemented in France, Germany
and Spain this year. Our goal is to introduce
/ Repair: customers can use this service to have circularity services such as these in key markets
any used Zara garment from any previous by 2025.
season mended. The services on offer include
a wide range of repairs, from the replacement
of buttons and zips to the mending of seams.
Customers can arrange their repairs wholly on
line or at the Zara store of their choice.

/ Sale: Zara Pre-Owned also enables the sale

of Zara clothing from any collection over a
secure platform. The sale area of the platform
is organised by product category and provides
detailed information about each item, including
the original Zara information for the item and
current photos provided by the seller.

19
Contributing to biodiversity
Biodiversity plays a crucial role in water purification, soil fertility, crop pollination and climate regulation.
It is therefore fundamental for ecosystems to function correctly and for the preservation of life.
Protecting and restoring nature is essential to avoiding climate change.

We have committed to protect, restore, regenerate or otherwise improve biodiversity across

5 million hectares.

Framed by this commitment, we have already earmarked €15 million to Conservation International’s
Regenerative Fund to help scale up regenerative farming and grazing practices.

We have also sealed strategic alliances with organisations of the calibre of WWF, to which we have
pledged over €10 million for the restoration of endangered ecosystems in Europe, Asia, Africa and
South and Central America.

20
The pressure on our planet’s natural resources, the need to advance towards fairer
and more resilient societies, the challenge implied by climate change and the
biodiversity crisis require a swift response by all.

These ambitious targets will take us to the next level in the use of materials with a
lower impact, especially recycled and next-generation fibres, accelerate the social
and environmental transformation of our supply chain, help our customers extend
the life of their clothing and bring about improvements in our natural ecosystems.

Through these commitments, we are not only striving to transform our business
and how our garments are made, but also looking to drive decisive change in the
textile industry as a whole.