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  • Overall approach
    4/12
    • Overarching commitment on deforestation
      0/4
    • Signatory to an initiative tackling deforestation
      1/1
      Yes
      1/1
      Which initiatives?: UN Global Compact
      Inditex is part of many other/additional partnerships and initiatives to the ones scored by Forest 500. They are listed within their 2020 annual report which.  "A United Nations initiative that encourages social dialogue between companies and civil society. Inditex joined in 2001, and we play an active role on the various working platforms together with other stakeholders, such as the Action Platform on Decent Work in Global Supply Chains, and the Reporting Platform on the Sustainable Development Goals."
    • Awareness of the value of forests
      1/1
      Yes
      1/1
      "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: 1. Ancient and endangered forests, including Indonesia’s Rainforests, Coastal Temperate Rainforests of North America, Canada and Russia’s Boreal Forests, and Rainforests in Africa and South America (i.e. the Amazon); 2. Forests logged illegally2; 3. Tree plantations3 established through the conversion of natural forests since 1994; and, 4. Endangered species habitats [...] Preserves “High Conservation Value Forest Areas” for conservation of their biodiversity"
    • Deforestation as a business risk
      1/1
      Yes
      1/1
      Does the company recognise the risk as financial, operational, competition, reputational, or other? Please detail.: Reputational, economic, financial, operational
      "There are potential financial and reputational risks associated with the nature, speed and focus of policy, legal, technological and market changes as society transitions to a low carbon economy. There is also a risk arising from the potential adverse effects of the Group’s value chain due to the discharge of undesirable or hazardous substances into the environment, or potentially resulting in the loss of biodiversity, deforestation, soil degradation, shortage of raw materials, among others."
    • High-level management of deforestion
      1/1
      Yes
      1/1
      Which commodities does it apply to?: Timber; Pulp & Paper

      How often does the committee or board meet to assess company's progress on addressing deforestation-related issues?: Quartlery
      "The Board of Directors at its meeting of 11 June 2019, approved the creation of the Sustainability Committee, as an informative and advisory delegated committee, responsible for advising the Board on matters within its competence and for supervising and controlling proposals in matters of sustainability in the areas of Human Rights, social, environmental, and the health and safety of our products, as well as promoting commitment to Sustainable Development Goals [...] The Sustainability Committee is a body of the Board of Directors that oversees sustainability proposals and stakeholder relations" The Sustainability Policy contains commitments relating to the Forest Policy and to protecting priority forests. They meet on a quarterly basis (shown via a diagram)
    • Executive compensation linked to deforestation
      Yes, for at least one commodity
      0/0
      Which commodities does the committee focus on?: Timber; Pulp & Paper

      Does it disclose the percentage of pay at risk?: 15%
      "In this regard, Inditex has extended its environmental strategy, in place since 2002 through different pluri-annual Environmental Strategic Plans, to its corporate strategy. Additionally, the company’s remuneration scheme has been increasingly encompassing criteria relating to the environment, social issues, health and safety of the product and corporate governance issues [...] Payment of variable remuneration at Inditex, both annual and pluri-annual, is tied to the achievement of sustainability objectives (environmental, social and corporate governance-related). These objectives are aligned with the Group’s sustainable strategy, wherein all stakeholders are considered, and allows rewarding its implementation. Namely, in 2020 the weight of sustainability objectives on aggregate variable remuneration is 15%."
    • Target to reduce emissions from land-use change
      0/2
    • Reporting on emissions from land-use change
      0/2
    • Disclosure of conservation activity
    • Disclosure of reforestation activity
    • Target to reduce emissions in scope 1/2
      Yes
      0/0
      What is the target date for the company to achieve their climate target?: 2050

      Type of climate target: Other or unclear
      "The goal is to reduce our scope 1 and 2 emissions by 90% and to reduce scope 3 (purchased goods) emissions by 20%, in both cases in the 2018-2030 period, with the ultimate aim of achieving net zero emissions by 2050."
  • Commodity score
    30/88
    • Leather
      11/88
      • Commitment Strength
        0/20
        • Commitment to protect priority forests
          0/11
          • Commitment details
            No commitment
            0/8
          • Commitment applies to all regions, suppliers and operation
            No
            0/2
          • Target date
            No target date
            0/1
          • Interim target date
            No
            0/0.5
        • Commitment to a traceable supply chain
          0/9
          • Commitment details
            No traceability commitment
            0/5.3
          • Commitment applies to all regions, suppliers and operation
            No
            0/2
          • Target date
            No target date
            0/1
          • Interim target date
            No
            0/0.5
      • Social Considerations
        5/18
        • Labour rights in the supply chain
          Yes
          4/4
          Labour rights in the supply chain
          Yes
          4/4
          Other workers' rights commitments: Only work legal working hours; Guaranteed safe and healthy workspaces; Free from abusive practices/undue disciplinary procedures

          Details of commitment: ILO; UNGP; UN Declaration for HR; Discrimination; Forced labour; Child labour; Freedom of association

          How far back in the supply chain does this commitment apply? E.g. tier 1, tier 2, tier 3: unclear
          [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."
        • Inclusion of small-scale farmers
          No
          0/4
        • Gender equality in the supply chain
          Commitment to address gender related labour rights including discrimination and harassment
          1/4
          Gender equality in the supply chain
          Commitment to address gender related labour rights including discrimination and harassment
          1/4
          "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"
        • Commitment to remediation
          No
          0/2
        • Commitment to ensure Free, Prior and Informed Consent
          No
          0/4
        • Commitment to resolve land conflicts
          No
      • Reporting and Implementation
        6/50
        • Reporting against commitments
          0/3
          • Commitment to protect priority forests
            No
            0/2.5
          • Commitment to a traceable supply chain
            No
            0/2.5
        • Reporting is independently verified
          0/2
          • Commitment to protect priority forests
            No
            0/1.5
          • Commitment to a traceable supply chain
            No
            0/1.5
        • Suppliers aligned with deforestation commitments across supply chain
          No
          0/2
        • Deforestation cut off date
          No
          0/2
        • Collaborative actions
          No
          0/2
        • Risk assessments for forest risk
          No
          0/2
        • Operations assessed to comply with law
          Yes
          2/2
          Operations assessed to comply with law
          Yes
          2/2
          "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."
        • Accessible grievance mechanism
          Yes, publicly accessible grievance mechanism
          2/4
          Accessible grievance mechanism
          Yes, publicly accessible grievance mechanism
          2/4
          Which issues does the grievance mechanism cover?: Social; Environmental

          What is the nature of the grievance mechanism used by the company (own mechanism, that of external company, internationally recognised mechanism, etc.)?: post, email, telephone
          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. "
        • Report volumes of commodity
          No reporting
          0/2
        • Report verified volumes of commodity
          No disclosure
          0/6
        • Upstream: Monitor compliance with human rights
          Yes, commit to monitoring compliance with labour/worker rights
          2/4
          Upstream: Monitor compliance with human rights
          Yes, commit to monitoring compliance with labour/worker rights
          2/4
          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."   
        • Downstream: Publishing supplier lists
          No
          0/4
        • Downstream: Monitor compliance in supply chain
          No
          0/4
        • Downstream: Reporting hectares of deforestation
          No
          0/4
        • Downstream: Engagement with non-compliant suppliers
          No engagement or exclusion
          0/2
        • Downstream: Disclosure of non-compliant suppliers
          No disclosure
          0/2
    • Pulp & Paper
      41/88
      • Commitment Strength
        12/20
        • Commitment to protect priority forests
          6/8
          • Commitment details
            Zero-gross deforestation
            4/6
            Commitment to protect priority forests
            Zero-gross deforestation
            4/6
            Which certification schemes are used?: FSC; PEFC
            "Inditex prioritizes the certification of its paper, wood and furniture products under the Forest Stewardship Council (FSC) standard. As a transitional measure, and in those cases where it is not possible to obtain products with these characteristics, as a minimum requirement, certification based on the PEFC international standard or equivalent is required. When these types of products are made from timber sourced from countries with ancient and endangered forests, we will avoid sourcing from these ancient and endangered forests and also require Forest Stewardship Council (FSC) certification."
          • Commitment applies to all regions, suppliers and operation
            Yes
            1.3/1.3
            Commitment applies to all regions, suppliers and operation
            Yes
            1.3/1.3
            "Inditex prioritizes the certification of its paper, wood and furniture products under the Forest Stewardship Council (FSC) standard. As a transitional measure, and in those cases where it is not possible to obtain products with these characteristics, as a minimum requirement, certification based on the PEFC international standard or equivalent is required. When these types of products are made from timber sourced from countries with ancient and endangered forests, we will avoid sourcing from these ancient and endangered forests and also require Forest Stewardship Council (FSC) certification."
          • Target date
            Current/achieved
            0.7/0.7
            Target date
            Current/achieved
            0.7/0.7
            "Inditex prioritizes the certification of its paper, wood and furniture products under the Forest Stewardship Council (FSC) standard. As a transitional measure, and in those cases where it is not possible to obtain products with these characteristics, as a minimum requirement, certification based on the PEFC international standard or equivalent is required. When these types of products are made from timber sourced from countries with ancient and endangered forests, we will avoid sourcing from these ancient and endangered forests and also require Forest Stewardship Council (FSC) certification."
          • Interim target date
            NA (target date current or achieved or 2022)
            0.3/0.3
            Interim target date
            NA (target date current or achieved or 2022)
            0.3/0.3
            What date is given for the interim milestone(s)?: Current
            From the 2020 report so assumed to be achieved or lack of update: "Inditex prioritizes the certification of its paper, wood and furniture products under the Forest Stewardship Council (FSC) standard. As a transitional measure, and in those cases where it is not possible to obtain products with these characteristics, as a minimum requirement, certification based on the PEFC international standard or equivalent is required. When these types of products are made from timber sourced from countries with ancient and endangered forests, we will avoid sourcing from these ancient and endangered forests and also require Forest Stewardship Council (FSC) certification."
        • Commitment to reduce use of virgin wood fibre
          5/5
          • Commitment details
            Yes
            3/3
            Commitment to reduce use of virgin wood fibre
            Yes
            3/3
            Type of commitment: Recycled content
            "Inditex gives purchasing preference to forest products with high-recycled content, and/or postconsumer waste, and encourages suppliers to continuously maintain, improve and expand the availability of such products."
          • Commitment applies to all regions, suppliers and operation
            Yes
            1.3/1.3
            Commitment applies to all regions, suppliers and operation
            Yes
            1.3/1.3
            "Inditex gives purchasing preference to forest products with high-recycled content, and/or postconsumer waste, and encourages suppliers to continuously maintain, improve and expand the availability of such products."
          • Target date
            Current/achieved
            0.7/0.7
            Target date
            Current/achieved
            0.7/0.7
            "Inditex gives purchasing preference to forest products with high-recycled content, and/or postconsumer waste, and encourages suppliers to continuously maintain, improve and expand the availability of such products."
          • Interim target date
            NA (target date current or achieved or 2022)
            0.3/0.3
            Interim target date
            NA (target date current or achieved or 2022)
            0.3/0.3
            What date is given for the interim milestone(s)?: Current
            "Inditex gives purchasing preference to forest products with high-recycled content, and/or postconsumer waste, and encourages suppliers to continuously maintain, improve and expand the availability of such products."
        • Commitment to a traceable supply chain
          0/6
          • Commitment details
            No traceability commitment
            0/4
          • Commitment applies to all regions, suppliers and operation
            No
            0/1.3
          • Target date
            No target date
            0/0.7
          • Interim target date
            No
            0/0.3
      • Social Considerations
        5/18
        • Labour rights in the supply chain
          Yes
          4/4
          Labour rights in the supply chain
          Yes
          4/4
          Other workers' rights commitments: Only work legal working hours; Guaranteed safe and healthy workspaces; Free from abusive practices/undue disciplinary procedures

          Details of commitment: ILO; UNGP; UN Declaration for HR; Discrimination; Forced labour; Child labour; Freedom of association
          [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."
        • Inclusion of small-scale farmers
          No
          0/4
        • Gender equality in the supply chain
          Commitment to address gender related labour rights including discrimination and harassment
          1/4
          Gender equality in the supply chain
          Commitment to address gender related labour rights including discrimination and harassment
          1/4
          "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"
        • Commitment to remediation
          No
          0/2
        • Commitment to ensure Free, Prior and Informed Consent
          No
          0/4
        • Commitment to resolve land conflicts
          No
      • Reporting and Implementation
        25/50
        • Reporting against commitments
          0/2
          • Commitment to protect priority forests
            Yes, for all commodity exposure
            1.7/1.7
            Commitment to protect priority forests
            Yes, for all commodity exposure
            1.7/1.7
            "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."
          • Commitment to reduce use of virgin wood fibre
            Yes, for partial or unclear commodity exposure
            0.8/1.7
            Commitment to reduce use of virgin wood fibre
            Yes, for partial or unclear commodity exposure
            0.8/1.7
            "In 2020, we carried out a number of commercial initiatives where the design of collections was based on the selection of especially sustainable materials:"[...]For Zara "Packaging comprising 100% recycled FSC certified paper"
          • Commitment to a traceable supply chain
            No
            0/1.7
        • Reporting is independently verified
          0/1
          • Commitment to protect priority forests
            Yes, using a third-party verification scheme or certification scheme.
            1/1
            Commitment to protect priority forests
            Yes, using a third-party verification scheme or certification scheme.
            1/1
            Which processes or groups does the company use for third party verification?: FSC, PEFC

            Which tools, approaches, third-party verification, including certification, schemes are used?: FSC, PEFC
            "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."
          • Commitment to reduce use of virgin wood fibre
            Yes, using a third-party verification scheme or certification scheme.
            1/1
            Commitment to reduce use of virgin wood fibre
            Yes, using a third-party verification scheme or certification scheme.
            1/1
            Which processes or groups does the company use for third party verification?: FSC

            Which tools, approaches, third-party verification, including certification, schemes are used?: FSC
            "In 2020, we carried out a number of commercial initiatives where the design of collections was based on the selection of especially sustainable materials:"[...]For Zara "Packaging comprising 100% recycled FSC certified paper"
          • Commitment to a traceable supply chain
            No
            0/1
        • Suppliers aligned with deforestation commitments across supply chain
          No
          0/2
        • Deforestation cut off date
          Yes, for all sourcing regions/operations
          2/2
          Deforestation cut off date
          Yes, for all sourcing regions/operations
          2/2
          What cut-off date is specified?: 1994
          "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"
        • Collaborative actions
          Yes
          2/2
          Collaborative actions
          Yes
          2/2
          What initiatives does the company participate in?: Canopy Initiative

          What is the nature of that participation?: Attending & contributing to meetings
          [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."
        • Risk assessments for forest risk
          Yes
          2/2
          Risk assessments for forest risk
          Yes
          2/2
          How frequently are assessments conducted?: Not specified 
          [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."
        • Operations assessed to comply with law
          Yes
          2/2
          Operations assessed to comply with law
          Yes
          2/2
          "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."
        • Accessible grievance mechanism
          Yes, publicly accessible grievance mechanism
          2/4
          Accessible grievance mechanism
          Yes, publicly accessible grievance mechanism
          2/4
          Which issues does the grievance mechanism cover?: Social; Environmental

          What is the nature of the grievance mechanism used by the company (own mechanism, that of external company, internationally recognised mechanism, etc.)?: post, email,telephone
          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. "
        • Report volumes of commodity
          Reporting partial volumes
          1/2
          Report volumes of commodity
          Reporting partial volumes
          1/2
          Total/partial volume reported: 8,379 tonnes
          "Sustainable viscose (in tonnes) 8,379"
        • Report verified volumes of commodity
          Some disclosure of compliant commodity/unclear % of volume/no verification of reporting
          1/6
          Report verified volumes of commodity
          Some disclosure of compliant commodity/unclear % of volume/no verification of reporting
          1/6
          What third-party verification is used?: PEFC, FSC

          What is the certified volume?: 8,379 tonnes
          "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."
        • Upstream: Monitor compliance with human rights
          No
          0/4
        • Downstream: Publishing supplier lists
          No
          0/4
        • Downstream: Monitor compliance in supply chain
          Yes, for its suppliers production or primary processing operations in its supply chains
          4/4
          Downstream: Monitor compliance in supply chain
          Yes, for its suppliers production or primary processing operations in its supply chains
          4/4
          How frequently is compliance assessed?: Not Specified

          Details of monitoring: Using internal monitoring and verification systems
          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."
        • Downstream: Reporting hectares of deforestation
          No
          0/4
        • Downstream: Engagement with non-compliant suppliers
          Engage with suppliers with a time-bound threat of exclusion
          2/2
          Downstream: Engagement with non-compliant suppliers
          Engage with suppliers with a time-bound threat of exclusion
          2/2
          What type of support does the company offer to its suppliers to help them achieve compliance with commitments?: Corrective Action Plan

          Does the company engage non-compliant indirect suppliers in order to address and remedy non-compliance?: Yes

          What criteria does the policy specify for blacklisting or exclusion?: Failure to comply with remedial measures
          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."
        • Downstream: Disclosure of non-compliant suppliers
          Yes, engaged; Yes, excluded
          2/2
          Downstream: Disclosure of non-compliant suppliers
          Yes, engaged; Yes, excluded
          2/2
          How many noncompliant producers or suppliers are engaged through improvement plans or other processes, and what percentage of the company's supply chain volume does that represent?: 71

          Does the company have a list of blacklisted or otherwise excluded suppliers or producers?: No
          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.
    • Timber *
      44/88
      • Commitment Strength
        8/20
        • Commitment to protect priority forests
          9/11
          • Commitment details
            Zero-gross deforestation
            5.3/8
            Commitment to protect priority forests
            Zero-gross deforestation
            5.3/8
            Which certification schemes are used?: FSC
            "Inditex prioritizes the certification of its paper, wood and furniture products under the Forest Stewardship Council (FSC) standard. As a transitional measure, and in those cases where it is not possible to obtain products with these characteristics, as a minimum requirement, certification based on the PEFC international standard or equivalent is required. When these types of products are made from timber sourced from countries with ancient and endangered forests, we will avoid sourcing from these ancient and endangered forests and also require Forest Stewardship Council (FSC) certification."
          • Commitment applies to all regions, suppliers and operation
            Yes
            2/2
            Commitment applies to all regions, suppliers and operation
            Yes
            2/2
            "Inditex prioritizes the certification of its paper, wood and furniture products under the Forest Stewardship Council (FSC) standard. As a transitional measure, and in those cases where it is not possible to obtain products with these characteristics, as a minimum requirement, certification based on the PEFC international standard or equivalent is required. When these types of products are made from timber sourced from countries with ancient and endangered forests, we will avoid sourcing from these ancient and endangered forests and also require Forest Stewardship Council (FSC) certification."
          • Target date
            Current/achieved
            1/1
            Target date
            Current/achieved
            1/1
            "Inditex prioritizes the certification of its paper, wood and furniture products under the Forest Stewardship Council (FSC) standard. As a transitional measure, and in those cases where it is not possible to obtain products with these characteristics, as a minimum requirement, certification based on the PEFC international standard or equivalent is required. When these types of products are made from timber sourced from countries with ancient and endangered forests, we will avoid sourcing from these ancient and endangered forests and also require Forest Stewardship Council (FSC) certification."
          • Interim target date
            NA (target date current or achieved or 2022)
            0.5/0.5
            Interim target date
            NA (target date current or achieved or 2022)
            0.5/0.5
            What date is given for the interim milestone(s)?: Current
            From the 2020 report so assumed to be achieved or lack of update: "Inditex prioritizes the certification of its paper, wood and furniture products under the Forest Stewardship Council (FSC) standard. As a transitional measure, and in those cases where it is not possible to obtain products with these characteristics, as a minimum requirement, certification based on the PEFC international standard or equivalent is required. When these types of products are made from timber sourced from countries with ancient and endangered forests, we will avoid sourcing from these ancient and endangered forests and also require Forest Stewardship Council (FSC) certification."
        • Commitment to a traceable supply chain
          0/9
          • Commitment details
            No traceability commitment
            0/5.3
          • Commitment applies to all regions, suppliers and operation
            No
            0/2
          • Target date
            No target date
            0/1
          • Interim target date
            No
            0/0.5
      • Social Considerations
        5/18
        • Labour rights in the supply chain
          Yes
          4/4
          Labour rights in the supply chain
          Yes
          4/4
          Details of commitment: ILO; UNGP; UN Declaration for HR; Discrimination; Forced labour; Child labour; Freedom of association

          Other workers' rights commitments: Only work legal working hours; Guaranteed safe and healthy workspaces; Free from abusive practices/undue disciplinary procedures
          [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."
        • Inclusion of small-scale farmers
          No
          0/4
        • Gender equality in the supply chain
          Commitment to address gender related labour rights including discrimination and harassment
          1/4
          Gender equality in the supply chain
          Commitment to address gender related labour rights including discrimination and harassment
          1/4
          "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"
        • Commitment to remediation
          No
          0/2
        • Commitment to ensure Free, Prior and Informed Consent
          No
          0/4
        • Commitment to resolve land conflicts
          No
      • Reporting and Implementation
        30/50
        • Reporting against commitments
          0/3
          • Commitment to protect priority forests
            Yes, for all commodity exposure
            2.5/2.5
            Commitment to protect priority forests
            Yes, for all commodity exposure
            2.5/2.5
            Does the company report on the degree of compliance/progress with commitments, disaggregated by relevant factors such as origin or supply chain stage?: Yes
            "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."
          • Commitment to a traceable supply chain
            No
            0/2.5
        • Reporting is independently verified
          0/2
          • Commitment to protect priority forests
            Yes, using a third-party verification scheme or certification scheme.
            1.5/1.5
            Commitment to protect priority forests
            Yes, using a third-party verification scheme or certification scheme.
            1.5/1.5
            Which tools, approaches, third-party verification, including certification, schemes are used?: FSC,PEFC

            Which processes or groups does the company use for third party verification?: FSC,PEFC
            "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."
          • Commitment to a traceable supply chain
            No
            0/1.5
        • Suppliers aligned with deforestation commitments across supply chain
          No
          0/2
        • Deforestation cut off date
          Yes, for all sourcing regions/operations
          2/2
          Deforestation cut off date
          Yes, for all sourcing regions/operations
          2/2
          What cut-off date is specified?: 1994
          "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"
        • Collaborative actions
          Yes
          2/2
          Collaborative actions
          Yes
          2/2
          What initiatives does the company participate in?: Canopy Initiative 

          What is the nature of that participation?: Attending & contributing to meetings
          [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."
        • Risk assessments for forest risk
          Yes
          2/2
          Risk assessments for forest risk
          Yes
          2/2
          How frequently are assessments conducted?: Not specified 
          [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."
        • Operations assessed to comply with law
          Yes
          2/2
          Operations assessed to comply with law
          Yes
          2/2
          "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."
        • Accessible grievance mechanism
          Yes, publicly accessible grievance mechanism
          2/4
          Accessible grievance mechanism
          Yes, publicly accessible grievance mechanism
          2/4
          Which issues does the grievance mechanism cover?: Social; Environmental

          What is the nature of the grievance mechanism used by the company (own mechanism, that of external company, internationally recognised mechanism, etc.)?: post, email,telephone
          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. "
        • Report volumes of commodity
          No reporting
          0/2
        • Report verified volumes of commodity
          100%
          6/6
          Report verified volumes of commodity
          100%
          6/6
          For what percent of the company's supply volume is third-party verification of performance relative to commitments conducted?: 100%
          "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." 
        • Upstream: Monitor compliance with human rights
          Yes, commit to monitoring compliance with labour/worker rights
          2/4
          Upstream: Monitor compliance with human rights
          Yes, commit to monitoring compliance with labour/worker rights
          2/4
          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."   
        • Downstream: Publishing supplier lists
          No
          0/4
        • Downstream: Monitor compliance in supply chain
          Yes, for its suppliers production or primary processing operations in its supply chains
          4/4
          Downstream: Monitor compliance in supply chain
          Yes, for its suppliers production or primary processing operations in its supply chains
          4/4
          Details of monitoring: Using internal monitoring and verification systems

          How frequently is compliance assessed?: Not specified 
          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."
        • Downstream: Reporting hectares of deforestation
          No
          0/4
        • Downstream: Engagement with non-compliant suppliers
          Engage with suppliers with a time-bound threat of exclusion
          2/2
          Downstream: Engagement with non-compliant suppliers
          Engage with suppliers with a time-bound threat of exclusion
          2/2
          What criteria does the policy specify for blacklisting or exclusion?:  Failure to comply with remedial measures

          What type of support does the company offer to its suppliers to help them achieve compliance with commitments?: Corrective Action Plan

          Does the company engage non-compliant indirect suppliers in order to address and remedy non-compliance?: Yes
          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."
        • Downstream: Disclosure of non-compliant suppliers
          Yes, engaged; Yes, excluded
          2/2
          Downstream: Disclosure of non-compliant suppliers
          Yes, engaged; Yes, excluded
          2/2
          How many noncompliant producers or suppliers are engaged through improvement plans or other processes, and what percentage of the company's supply chain volume does that represent?: 71

          Does the company have a list of blacklisted or otherwise excluded suppliers or producers?: No
          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.
  • * commodity scores for which a company is not a powerbroker are given half the weighting of other commodities in total scores

  • Commitment strength
    6/20
    Avg. score
  • Reporting and Implementation
    18/50
    Avg. score
  • Social considerations
    5/18
    Avg. score

Profile

Inditex is a Spanish fashion retailer. It has eight brands, including Zara, Pull&Bear, Bershka, Massimo Dutti, and Stradivarius. Inditex has over 7000 stores in more than 90 countries, and employs over 160,000 people. The company claims to be one of the largest fashion retailers in the world. Inditex use cellulose and leather in its products. Inditex S.A. is selected as a powerbroker for leather and pulp & paper and is also assessed for its exposure to timber.

Sector
Industry sector 
Accessories & luggage, Apparel & footwear, Furniture & flooring
Segments
Manufacturer, Retailer
HQ
HQ 
Spain
Company Type
Company type 
Public listed
Collective Commitments
Consumer Goods Forum member
New York Declaration on Forests signatory

Top Brands

Zara, Pull&Bear, Massimo Dutti, Bershka, Oysho, Zara Home, Uterque

How we assess the Forest 500

To ensure deforestation free supply chains, companies need to adopt and implement timebound and measurable policies for forest risk commodities.

All assessments use policies published on company websites, some links may have changed or been removed since the time of assessment.

Disclaimer

This assessment has been carried out following the methodology developed for the Forest 500 project, available here. Please see our disclaimer applicable to all information contained within this site and our terms and conditions for use of data presented on this site.

All assessments use policies published on company and financial institution websites, and while we endeavor to keep them updated some links may have changed or been removed since the time of assessment.

Please contact us with any concerns or feedback about this or other assessments included in the Forest 500.