Inditex S.A.

[translation] - "LABOR RIGHTS We apply measures to guarantee labor rights in our supply chain, avoid any discrimination and promote freedom of association. We strive to ensure that Human Rights in general - and fundamental labor rights in particular - are respected in our supply chain, as established by the United Nations Guiding Principles on Business and Human Rights and the Declaration and Conventions of the United Nations. the International Labor Organization (ILO). Following the principles of the ILO Declaration, we apply measures to guarantee the prohibition of forced labor, child labor and all kinds of discrimination, as well as to promote freedom of association and the effective recognition of the right to collective bargaining."

"Manufacturers and suppliers shall not apply any type of discriminatory practice with regards the recruitment, compensation, access to training, promotion, termination of the employment agreement or retirement, based on race, caste, creed, nationality, religion, age, physical or mental disability, gender, marital status, sexual orientation and/or union membership or political affiliation"

"Manufacturers and suppliers shall be duly committed at all times to protect the environment and shall comply with the standards and requirements of the applicable local and international Laws and Regulations. [...] Manufacturers and suppliers shall authorize Inditex and/or any third parties the former might appoint, to monitor the appropriate enforcement of the Code. For these purposes, they shall provide the required means and the appropriate access to the facilities and documentation required to ensure this verification."

Relating to their Supplier Code of Conduct - "Any notices given pursuant to the provisions of this Code, either reports of any breach or enquiries regarding the Code’s interpretation or application can be addressed directly to the Committee of Ethics via: 8  Post: Avenida de la Diputación, Edificio Inditex, 15142 Arteixo, A Coruña ( Spain), Att: Committee of Ethics  Email: comitedeetica@inditex.com  Fax: +34 981 186211. "

Relating to the Supplier Code of Conduct which contains their labour rights commitment - "Manufacturers and suppliers shall authorize Inditex and/or any third parties the former might appoint, to monitor the appropriate enforcement of the Code. For these purposes, they shall provide the required means and the appropriate access to the facilities and documentation required to ensure this verification."   

[translation] - "LABOR RIGHTS We apply measures to guarantee labor rights in our supply chain, avoid any discrimination and promote freedom of association. We strive to ensure that Human Rights in general - and fundamental labor rights in particular - are respected in our supply chain, as established by the United Nations Guiding Principles on Business and Human Rights and the Declaration and Conventions of the United Nations. the International Labor Organization (ILO). Following the principles of the ILO Declaration, we apply measures to guarantee the prohibition of forced labor, child labor and all kinds of discrimination, as well as to promote freedom of association and the effective recognition of the right to collective bargaining."

"Manufacturers and suppliers shall not apply any type of discriminatory practice with regards the recruitment, compensation, access to training, promotion, termination of the employment agreement or retirement, based on race, caste, creed, nationality, religion, age, physical or mental disability, gender, marital status, sexual orientation and/or union membership or political affiliation"

"This policy guides the Group’s purchasing of paper products (bags, hang tags, office supplies, etc.), furniture, commercial products using wood as a raw material and man-made cellulosic textiles made from dissolving pulp1 with the goal of avoiding the use of timber or pulp sourced from: [...] Tree plantations established through the conversion of natural forests since 1994"

[translation]"At Inditex we have a strict Forest Products Policy and we have contributed to the creation of an initiative to protect forests and promote sustainability in the textile industry in cooperation with the NGO Canopy and other brands."

[translation]"Inditex's Comprehensive Risk Management System is based on the “COSO ERM” methodological framework and the corresponding ISO standards, adapted to the needs and specificities of the Group. There are uniform, standardized and systematic processes for the identification, evaluation and prioritization of risks, based on the concepts of risk appetite, risk tolerance and risk objective. The risk factors to which the Group is subject are classified into six categories that are subdivided into lower hierarchies according to their causality: financial, geopolitical, technological, environmental, social and government risks. There is a risk derived from the potential adverse effects of the Group's value chain due to the discharge of undesirable or dangerous substances (be they biological or chemical substances) into the environment. There is also the risk that the Group's activities could translate into loss of biodiversity, deforestation, soil degradation, scarcity of raw materials, among others."

"Manufacturers and suppliers shall be duly committed at all times to protect the environment and shall comply with the standards and requirements of the applicable local and international Laws and Regulations. [...] Manufacturers and suppliers shall authorize Inditex and/or any third parties the former might appoint, to monitor the appropriate enforcement of the Code. For these purposes, they shall provide the required means and the appropriate access to the facilities and documentation required to ensure this verification."

Relating to their Supplier Code of Conduct - "Any notices given pursuant to the provisions of this Code, either reports of any breach or enquiries regarding the Code’s interpretation or application can be addressed directly to the Committee of Ethics via: 8  Post: Avenida de la Diputación, Edificio Inditex, 15142 Arteixo, A Coruña ( Spain), Att: Committee of Ethics  Email: comitedeetica@inditex.com  Fax: +34 981 186211. "

"Sustainable viscose (in tonnes) 8,379"

"Sustainable viscose (in tonnes) 8,379";"All wood based products used in the Group’s stores comply with the company’s Forest Products Policy. All furniture and paper products have sustainable forest certification PEFC or FSC stamps, ensuring that the entire production process of forest-origin raw material is carried out in a controlled manner and following sustainability criteria."

Supplier Code of Conduct states that "Manufacturers and suppliers shall be duly committed at all times to protect the environment and shall comply with the standards and requirements of the applicable local and international Laws and Regulations. Likewise, they commit to comply with environmental standards established by Inditex including, if applicable, the necessary measures to reduce and compensate such impact in order to apply said standards." (This refers to the Forest Products Policy). Elsewhere, Inditex states that " we carry out the following types of audits: Pre-assessment audits: before a supplier is certified to work with us, they are audited, without prior notice, in order to guarantee that they and any facilities they plan to use comply with the requirements laid down in our Code of Conduct. Should the supplier pass this initial filter, our business relationship commences with the supplier ratifying Inditex's Minimum Requirements, which include social, environmental and product health and safety compliance commitments [...] Our suppliers and manufacturers enjoy the full support of our sustainability teams but –if they fail to display willingness to improve or to comply with the remedial measures stipulated within the required deadlines, they will no longer be allowed to produce for Inditex."

Supplier Code of Conduct states that "Manufacturers and suppliers shall be duly committed at all times to protect the environment and shall comply with the standards and requirements of the applicable local and international Laws and Regulations. Likewise, they commit to comply with environmental standards established by Inditex including, if applicable, the necessary measures to reduce and compensate such impact in order to apply said standards." (This refers to the Forest Products Policy). Elsewhere, Inditex states that " we carry out the following types of audits: Pre-assessment audits: before a supplier is certified to work with us, they are audited, without prior notice, in order to guarantee that they and any facilities they plan to use comply with the requirements laid down in our Code of Conduct. Should the supplier pass this initial filter, our business relationship commences with the supplier ratifying Inditex's Minimum Requirements, which include social, environmental and product health and safety compliance commitments [...] Our suppliers and manufacturers enjoy the full support of our sustainability teams but –if they fail to display willingness to improve or to comply with the remedial measures stipulated within the required deadlines, they will no longer be allowed to produce for Inditex [...] After each Corrective Action Plan, we assess the factory once again by performing a new social audit in order to verify that all of the improvements identified have been introduced. If a factory fails to reach the required compliance thresholds following this audit, it will be blacklisted and will not receive any new orders."

Inditexa reports the number of suppliers in different categories in 2017. Supplier A: Complies with the Code of Conduct - 661. Supplier B: Does not comply with any non-relevant aspect of the Code of Conduct - 962. Supplier C: Does not comply with a sensitive aspect of the Code of Conduct - 101. Provider in a Corrective Action Plan (CAP): Breaches of the Code of Conduct that trigger the immediate implementation of a Corrective Action Plan - 71. Supplier PR: In the audit process - 29. Number of excluded suppliers - 64.

[translation] - "LABOR RIGHTS We apply measures to guarantee labor rights in our supply chain, avoid any discrimination and promote freedom of association. We strive to ensure that Human Rights in general - and fundamental labor rights in particular - are respected in our supply chain, as established by the United Nations Guiding Principles on Business and Human Rights and the Declaration and Conventions of the United Nations. the International Labor Organization (ILO). Following the principles of the ILO Declaration, we apply measures to guarantee the prohibition of forced labor, child labor and all kinds of discrimination, as well as to promote freedom of association and the effective recognition of the right to collective bargaining."

"Manufacturers and suppliers shall not apply any type of discriminatory practice with regards the recruitment, compensation, access to training, promotion, termination of the employment agreement or retirement, based on race, caste, creed, nationality, religion, age, physical or mental disability, gender, marital status, sexual orientation and/or union membership or political affiliation"

"This policy guides the Group’s purchasing of paper products (bags, hang tags, office supplies, etc.), furniture, commercial products using wood as a raw material and man-made cellulosic textiles made from dissolving pulp1 with the goal of avoiding the use of timber or pulp sourced from: [...] Tree plantations established through the conversion of natural forests since 1994"

[translation]"At Inditex we have a strict Forest Products Policy and we have contributed to the creation of an initiative to protect forests and promote sustainability in the textile industry in cooperation with the NGO Canopy and other brands."

[translation]"Inditex's Comprehensive Risk Management System is based on the “COSO ERM” methodological framework and the corresponding ISO standards, adapted to the needs and specificities of the Group. There are uniform, standardized and systematic processes for the identification, evaluation and prioritization of risks, based on the concepts of risk appetite, risk tolerance and risk objective. The risk factors to which the Group is subject are classified into six categories that are subdivided into lower hierarchies according to their causality: financial, geopolitical, technological, environmental, social and government risks. There is a risk derived from the potential adverse effects of the Group's value chain due to the discharge of undesirable or dangerous substances (be they biological or chemical substances) into the environment. There is also the risk that the Group's activities could translate into loss of biodiversity, deforestation, soil degradation, scarcity of raw materials, among others."

"Manufacturers and suppliers shall be duly committed at all times to protect the environment and shall comply with the standards and requirements of the applicable local and international Laws and Regulations. [...] Manufacturers and suppliers shall authorize Inditex and/or any third parties the former might appoint, to monitor the appropriate enforcement of the Code. For these purposes, they shall provide the required means and the appropriate access to the facilities and documentation required to ensure this verification."

Relating to their Supplier Code of Conduct - "Any notices given pursuant to the provisions of this Code, either reports of any breach or enquiries regarding the Code’s interpretation or application can be addressed directly to the Committee of Ethics via: 8  Post: Avenida de la Diputación, Edificio Inditex, 15142 Arteixo, A Coruña ( Spain), Att: Committee of Ethics  Email: comitedeetica@inditex.com  Fax: +34 981 186211. "

"All wood based products used in the Group’s stores comply with the company’s Forest Products Policy. All furniture and paper products have sustainable forest certification PEFC or FSC stamps, ensuring that the entire production process of forest-origin raw material is carried out in a controlled manner and following sustainability criteria." 

Relating to the Supplier Code of Conduct which contains their labour rights commitment - "Manufacturers and suppliers shall authorize Inditex and/or any third parties the former might appoint, to monitor the appropriate enforcement of the Code. For these purposes, they shall provide the required means and the appropriate access to the facilities and documentation required to ensure this verification."   

Supplier Code of Conduct states that "Manufacturers and suppliers shall be duly committed at all times to protect the environment and shall comply with the standards and requirements of the applicable local and international Laws and Regulations. Likewise, they commit to comply with environmental standards established by Inditex including, if applicable, the necessary measures to reduce and compensate such impact in order to apply said standards." (This refers to the Forest Products Policy). Elsewhere, Inditex states that " we carry out the following types of audits: Pre-assessment audits: before a supplier is certified to work with us, they are audited, without prior notice, in order to guarantee that they and any facilities they plan to use comply with the requirements laid down in our Code of Conduct. Should the supplier pass this initial filter, our business relationship commences with the supplier ratifying Inditex's Minimum Requirements, which include social, environmental and product health and safety compliance commitments [...] Our suppliers and manufacturers enjoy the full support of our sustainability teams but –if they fail to display willingness to improve or to comply with the remedial measures stipulated within the required deadlines, they will no longer be allowed to produce for Inditex."

Supplier Code of Conduct states that "Manufacturers and suppliers shall be duly committed at all times to protect the environment and shall comply with the standards and requirements of the applicable local and international Laws and Regulations. Likewise, they commit to comply with environmental standards established by Inditex including, if applicable, the necessary measures to reduce and compensate such impact in order to apply said standards." (This refers to the Forest Products Policy). Elsewhere, Inditex states that " we carry out the following types of audits: Pre-assessment audits: before a supplier is certified to work with us, they are audited, without prior notice, in order to guarantee that they and any facilities they plan to use comply with the requirements laid down in our Code of Conduct. Should the supplier pass this initial filter, our business relationship commences with the supplier ratifying Inditex's Minimum Requirements, which include social, environmental and product health and safety compliance commitments [...] Our suppliers and manufacturers enjoy the full support of our sustainability teams but –if they fail to display willingness to improve or to comply with the remedial measures stipulated within the required deadlines, they will no longer be allowed to produce for Inditex [...] After each Corrective Action Plan, we assess the factory once again by performing a new social audit in order to verify that all of the improvements identified have been introduced. If a factory fails to reach the required compliance thresholds following this audit, it will be blacklisted and will not receive any new orders."

Inditexa reports the number of suppliers in different categories in 2017. Supplier A: Complies with the Code of Conduct - 661. Supplier B: Does not comply with any non-relevant aspect of the Code of Conduct - 962. Supplier C: Does not comply with a sensitive aspect of the Code of Conduct - 101. Provider in a Corrective Action Plan (CAP): Breaches of the Code of Conduct that trigger the immediate implementation of a Corrective Action Plan - 71. Supplier PR: In the audit process - 29. Number of excluded suppliers - 64.