Report - COP Prototype

2022 Communication on Progress

Inditex, Industrias de Diseno Textil, S.A.

Published date

May 30, 2022

No. of questions

Supplemental files

Inditex Policy on Human Rights.pdf Inditex Code of Conduct for Manufacturers and Suppliers.pdf Inditex Sustainability Policy.pdf Code of Conduct and Responsible Practices.pdf statement-of-non-financial-information-2021.pdf statement-of-non-financial-information-2021.pdf Inditex Policy on Human Rights.pdf Diversity_Inclusion_Policy.pdf Inditex Code of Conduct for Manufacturers and Suppliers.pdf Inditex Policy on Human Rights.pdf Occupational Health and Safety Policy.pdf Code of Conduct and Responsible Practices.pdf Inditex-UniGlobalUnion.pdf workers-centre-2021.pdf statement-of-non-financial-information-2021.pdf Inditex Sustainability Policy.pdf Inditex Biodiversity Strategy.pdf Inditex Global Water Management Strategy.pdf Inditex Global Energy Strategy.pdf

CEO Statement

Signed

Governance

Policies and Responsibilities

1. Does the Board / highest governance body or most senior executive of the company:

Issue an annual statement about the relevance of sustainable development to the company

Issue an annual statement that addresses impacts on both people and the environment

Issue an annual statement highlighting a zero tolerance for corruption

Sign off on organizational sustainability targets

Supervise Environmental, Social, and Governance reporting

Regularly review potential risks related to the business model

None of the above

Optional comment

Further Information available in: Inditex Statement of Non-Financial Information 2021 (https://www.inditex.com/documents/10279/682269/2021+Statement+of+Non+Financial+Information.pdf/dfe484b5-9d06-74f2-40d3-992e71b739cd)

2. Does the company have a publicly stated commitment regarding the following sustainability topics?

	No, this is not a current priority	No, but we plan to have a commitment within 2 years	Yes, and the commitment is focused on our own operations	Yes, and the commitment includes our own operations and the value chain	Yes, and the commitment includes our own operations and the value chain along with communities and society
Human Rights
Labour Rights / Decent Work
Environment
Anti-Corruption

Optional comment

Further information available in: https://www.inditex.com/en/corporate-ethics Policy on Human Rights: https://www.inditex.com/documents/10279/325624/Inditex+Policy+on+Human+Rights.pdf/0ec776a7-4b59-438b-bc2c-42415760d0b4 Sustainability Policy: https://www.inditex.com/documents/10279/240918/Inditex+Sustainability+Policy.pdf/7cfc197b-ec03-7ea6-757c-df7406262cdc Code of Conduct and Responsible Practices: https://www.inditex.com/documents/10279/241587/Code+of+Conduct+and+Responsible+Practices/aa0ee7c0-74b5-4f8d-a210-5581678919fe Code of Conduct for Manufacturers and Suppliers: https://www.inditex.com/documents/10279/241035/Inditex+Code+of+Conduct+for+Manufacturers+and+Suppliers/e23dde6a-4b0e-4e16-a2aa-68911d3032e7

3. Does the company have in place a code of conduct regarding each of the following sustainability topics?

	No, this is not a current priority	No, but we plan to have a code of conduct within two years	Yes, focused on employee conduct	Yes, focused on employees and suppliers	Yes, focused on employees, suppliers, and other business relationships
Human Rights
Labour Rights / Decent Work
Environment
Anti-Corruption

Optional comment

Further information available in: Code of Conduct and Responsible Practices: https://www.inditex.com/documents/10279/241587/Code+of+Conduct+and+Responsible+Practices/aa0ee7c0-74b5-4f8d-a210-5581678919fe Code of Conduct for Manufacturers and Suppliers: https://www.inditex.com/documents/10279/241035/Inditex+Code+of+Conduct+for+Manufacturers+and+Suppliers/e23dde6a-4b0e-4e16-a2aa-68911d3032e7

4. Has the company appointed an individual or group responsible for each of the following sustainability topics?

	No one is specifically responsible for this topic	Yes, with limited influence on outcomes (e.g., limited access to internal information, limited decision-making authority)	Yes, with moderate influence on outcomes (e.g., has access to relevant information, reports to senior manager)	Yes, with direct influence of some outcomes (e.g., has access to relevant information, includes one or more senior manager with decision making rights	Yes, with direct influence at the highest levels of the organization (e.g., has access to relevant information, includes most senior members of organization)
Human Rights
Labour Rights / Decent Work
Environment
Anti-Corruption

5. Does the company have a formal structure(s) (such as a cross-functional committee) to address each of the following sustainability topics?

	No formal structure	Yes, and with limited influence on outcomes (e.g., limited access to internal information necessary to understand risks, poor representation from relevant departments or functions)	Yes, with moderate influence on outcomes (e.g., it includes representatives of some functions, departments, or business units most relevant for addressing the risks concerned, has access to relevant information, reports to senior manager)	Yes, with direct influence on some outcomes (e.g., it includes representatives of functions, departments, or business units most relevant for addressing the risks concerned, has access to relevant information, it involves one or more members of senior management)	Yes, and with direct influence at the highest level of the organization (e.g., full access to relevant information, it involves members at highest level of organization)
Human Rights
Labour Rights / Decent Work
Environment
Anti-Corruption

Prevention

6. Does the company have a process or processes to assess risk?

	No, this is not a current priority	No, but we are planning to develop one in the next two years	Yes, related to our own operations	Yes, related to our own operations and entire value chain and other business relationships
Human rights risks
Labour rights risks
Environmental risks
Corruption risks

Optional comment

Further information available in: Inditex Statement of Non Financial Information 2021, pp. 333-336.

6.1. During the assessment of risk, which business relationships are reviewed?

	A few suppliers or business relationships [approximately less than 25 %]	Several suppliers / business relationships (i.e., first tier or other high priority) [approx. 25 - 50 %]	Most suppliers / relevant business relationships [approx. 51 - 99 %]	All suppliers / relevant business relationships outside the supply chain
Human rights risks
Labour rights risks
Environmental risks
Corruption risks

7. Does the company have a due diligence process through which it identifies, prevents, mitigates, and accounts for actual and potential negative impacts on sustainability topics?

	No, this is not a current priority	No, but we are planning to develop one in the next two years	Yes, related to our own operations	Yes, related to our own operations and entire value chain and other business relationships
Human rights risks
Labour rights risks
Environmental risks
Corruption risks

7.1. During the due diligence process, which business relationships are reviewed?

	A few suppliers or business relationships [approximately less than 25 %]	Several suppliers / business relationships (i.e., first tier or other high priority) [approx. 25 - 50 %]	Most suppliers / relevant business relationships [approx. 51 - 99 %]	All suppliers / relevant business relationships outside the supply chain
Human rights risks
Labour rights risks
Environmental risks
Corruption risks

Concerns and grievance mechanisms

8. Are there any processes through which members of the company’s workforce can raise concerns about the company’s conduct related to human rights, labour rights, environment, or anti-corruption?

No, this is not a current priority

No, but we plan to within two years

Yes, we have an informal process (e.g., through supervisors, others)

Yes, we have a formal process

Optional comment

Further information available in: https://www.inditex.com/en/corporate-ethics

8.1. Please provide additional detail regarding the process(es) the company has through which members of the company’s workforce can raise concerns about the company’s conduct.

	No	Yes
Is the process communicated to all employees/workers in local languages?
Is the process available to non-employees (e.g., contractors, vendors, suppliers)?
Is the process confidential (e.g., whistleblowing process)?
Are there processes in place to avoid retaliation?
Can concerns be raised about suppliers or other business relationships (e.g., clients, partners, etc.)
Other (Please provide additional information)

9. Does the company provide or enable access to effective remedy to right holders / stakeholders where it has caused or contributed to the adverse impact?

	No process to enable remedy to stakeholders	Remedy available to some stakeholders (i.e., some geographies, employees only)	Remedy is available to all affected stakeholders	Remedy is available to all stakeholders, and suppliers are expected to have similar policies
Human Rights
Labour Rights / Decent Work
Environment
Anti-Corruption

Lessons

10. How does the company capture lessons regarding each of the following sustainability topics?

	No lessons are regularly captured	Conducts root cause analyses/investigation of major incidents	Conducts root cause analyses/investigation and changes organizational policies, processes, and practices accordingly	Systematically conducts root cause analyses/investigation and leverages learnings to influence both internal and external affairs
Human Rights
Labour Rights / Decent Work
Environment
Anti-Corruption

Optional comment

Executive Pay

11. Is executive pay linked to performance on one or more of the following sustainability topics?

Board Composition

12. Percentage of individuals within the company’s Board / highest governance body by:

	Number/Percentage	Not applicable (Please provide additional information)
Total number of board members (#)	11
Male (%)	63.64
Female (%)	36.36
Non-binary (%)	0
Under 30 years old (%)	0
30-50 years old (%)	1
Above 50 years old (%)	10
From minority or vulnerable groups (%)
n/a
Executive (%)	1
Independent (%)	54.55

Optional comment

Further information available in: https://www.inditex.com/en/compliance/corporate-governance/board

Data Assurance

14. Is the information disclosed in this questionnaire assured by a third-party?

No assurance for any metrics

Limited assurance for minority of metrics (e.g., GHG emissions only)

Limited assurance for majority of metrics

This report has been reviewed by Deloitte, S.L. in accordance with the revised International Standard on Assurance Engagements (ISAE) 3000, Assurance Engagements Other than Audits or Review of Historical Financial Information, and with Guideline no. 47 on attestation engagements of the Statement on Non- Financial Information issued by the Instituto de Censores Jurados de Cuentas [Institute of Certified Public Accountants] of Spain. Based on these two standards, in addition to the review of the contents required by Act 11/2018, a selection of 42 disclosures from the comprehensive option of the GRI Standards have been reviewed. These disclosures were selected based on themateriality analysis performed by Inditex annually with its stakeholders. Further information available in: Inditex Statement of Non Financial Information 2021, pp.396-397, 409-411

Reasonable assurance for minority of metrics

Reasonable assurance for majority of metrics

Other (Please provide additional information)

Optional comment

Independent Verification report available in the Inditex Statement of Non Financial Information, pp. 409-411. (https://www.inditex.com/documents/10279/682269/2021+Statement+of+Non+Financial+Information.pdf/dfe484b5-9d06-74f2-40d3-992e71b739cd)

Human Rights

Commitment

2. Does the company have a policy commitment in relation to the following human rights issues?

	No, and we have no plans to develop a policy	No, but we plan to in the next two years	Yes, included within a broader policy	Yes, articulated as a stand-alone policy
Rights of women and/or girls
2016
Freedom of expression
Rights of refugees and migrants
2016
Digital security / privacy
Rights of indigenous peoples
Access to culture
Free, prior and informed consent
Access to water and sanitation

Optional comment

Inditex Policy on Human Rights available at: https://www.inditex.com/documents/10279/325624/Inditex+Policy+on+Human+Rights.pdf/0ec776a7-4b59-438b-bc2c-42415760d0b4 Aditionally, regarding the rights of women and/or girls, the Inditex Group devises equality plans with measures to promote the commitment to and effective application of the principle of equality between women and men, helping to reduce inequalities and imbalances, preventing discrimination in the workplace, guaranteeing a healthy working environment and establishing measures that help maintain a work-life balance.

2.1. For each human rights policy, is it:

	Aligned with international human rights standards?	Publicly available?	Approved at most senior level of the company?	Applied to the company’s own operations?	Applied to the company’s supply chain and/or other business relationships?	Developed involving human rights expertise from inside and outside the company?	Other (Please provide additional information)
Freedom of expression
Digital security / privacy
Rights of women and/or girls
Access to culture
Rights of indigenous peoples
Free, prior and informed consent
Rights of refugees and migrants
Access to water and sanitation

Optional comment

Further information available in: Human Rights 2021 report. (https://static.inditex.com/annual_report_2021/en/documents/human-rights-2021.pdf) Inditex Statement of Non Financial Information 2021, pp. 62-68. (https://www.inditex.com/documents/10279/682269/2021+Statement+of+Non+Financial+Information.pdf/dfe484b5-9d06-74f2-40d3-992e71b739cd)

Prevention

3. In the course of the reporting period, has the company engaged with affected stakeholders or their legitimate representatives in relation to the following human rights issues?

	No engagement on this topic	To better understand the risks/ impacts in question	To discuss potential ways to prevent or mitigate the risks/ impacts in question	To agree on a way to prevent/ mitigate the risks/ impacts in question	To assess progress in preventing /mitigating the risks/impacts in question	To collaborate in the prevention/ mitigation of the risks/ impacts in question
Rights of women and/or girls
Freedom of expression
Rights of refugees and migrants
Digital security / privacy
Rights of indigenous peoples
Access to culture
Free, prior and informed consent
Access to water and sanitation

Optional comment

Collaboration is an integral part of our approach towards combating the human rights risks arising in Inditex's supply chain. Detailed information on our collaborations is available in: Inditex Statement of Non Financial Information 2021, pp. 88-100, 219-245. (https://www.inditex.com/documents/10279/682269/2021+Statement+of+Non+Financial+Information.pdf/dfe484b5-9d06-74f2-40d3-992e71b739cd) Workers at the Centre 2021 report. (https://static.inditex.com/annual_report_2021/en/documents/workers-centre-2021.pdf)

4. What type of action has the company taken in the reporting period with the aim of preventing/mitigating the risks/impacts associated with this human rights issue?

	Provided internal training/ capacity building for the direct workforce	Building capacity among relevant business relationships (e.g., partners, suppliers, clients, etc.)	Conducting an audit process and/or corrective action plan	Collective Action with peers or other stakeholders to address the issue	Collaboration with governmental or regulatory bodies	Other (Please provide additional information)	No action within reporting period
Rights of women and/or girls
Freedom of expression
Rights of refugees and migrants
Digital security / privacy
Rights of indigenous peoples
Access to culture
Free, prior and informed consent
Access to water and sanitation

Optional comment

Information available in: Inditex Statement of Non Financial Information 2021, pp. 219-245. (https://www.inditex.com/documents/10279/682269/2021+Statement+of+Non+Financial+Information.pdf/dfe484b5-9d06-74f2-40d3-992e71b739cd) Workers at the Centre 2021 report. (https://static.inditex.com/annual_report_2021/en/documents/workers-centre-2021.pdf)

5. Who receives training for the following human rights issues?

	No training provided	Select employees	All employees	Contractors	Direct suppliers of the organization	Indirect suppliers of the organization	Other – such as partners, clients, etc.
Rights of women and/or girls
Freedom of expression
Rights of refugees and migrants
Digital security / privacy
Rights of indigenous peoples
Access to culture
Free, prior and informed consent
Access to water and sanitation

Optional comment

Trainings are also provided to supply chain workers, supply chain factory managers and the communities.

6. How does the company assess progress in preventing/mitigating the risks/impacts associated with the following human rights issues?

	No monitoring of progress	Review issues on ad-hoc basis	Set annual targets/ goals, track progress over time (internal programs only)	Set annual targets/ goals, track progress over time (internal and external programs)	Other (Please provide additional information)
Rights of women and/or girls
Freedom of expression
Rights of refugees and migrants
Digital security / privacy
Rights of indigenous peoples
Access to culture
Free, prior and informed consent
Access to water and sanitation

Optional comment

Further information available in: Workers at the Centre 2021 report. (https://static.inditex.com/annual_report_2021/en/documents/workers-centre-2021.pdf) Inditex Statement of Non Financial Information 2021, pp. 219-245. (https://www.inditex.com/documents/10279/682269/2021+Statement+of+Non+Financial+Information.pdf/dfe484b5-9d06-74f2-40d3-992e71b739cd)

Response

7. During the reporting period, has the company been involved in providing or enabling remedy where it has caused or contributed to adverse impact associated with the following human rights issue(s)?

	Yes	No	Choose to not disclose	Not applicable (Please provide additional information)
Rights of women and/or girls
Freedom of expression
Rights of refugees and migrants
Digital security / privacy
Rights of indigenous peoples
Access to culture
Free, prior and informed consent
Access to water and sanitation

Optional comment

Inditex has not caused or contributed to adverse impacts associated with the rights of women and girls or the rights of refugees and migrants during the reporting period. Despite this, due to the company´s committment with the respect of human rights in its value chain and more specifically in the supply chain, Inditex develops projects such as: - The Together Strong project which consists in capacity building trainings in the field of women protection - Stablishment of remediation plans for migrants and refugees in collaboration with local NGOs Further information available in: Workers at the Centre 2021 report, pp. 65-69, 92-100. (https://static.inditex.com/annual_report_2021/en/documents/workers-centre-2021.pdf) Inditex Statement of Non Financial Information 2021, pp. 234-235, 238-239. (https://www.inditex.com/documents/10279/682269/2021+Statement+of+Non+Financial+Information.pdf/dfe484b5-9d06-74f2-40d3-992e71b739cd)

8. Briefly describe practical actions the company has taken during the reporting period and/or plans to take to implement the human rights principles, including any challenges faced and actions taken towards prevention and/or remediation.

At Inditex, we have identified the salient human rights risks in the supply chain through the corresponding due diligence process resulting in our Workers at the Centre 2019-2022 strategy. Within this framework, different projects are carried out in accordance to the seven Priority Impact Areas identified by Inditex: worker participation; living wages; gender, diversity and inclusion; occupational health and safety; protection of migrants and refugees; social protection; and protection of labour rights in the production of raw materials. Below we describe a couple of practical examples: Regarding the rights of refugees and migrants, programs such as the Buddy Programme integration project, in partnership with the ILO in Turkey, or the Sowbhagyam project in India are carried out. These programmes aim to ensure fair employment and recruitment practices for migrants and refugees, and to reinforce social and labour cohesion on the production facilities. Within the area of Gender, diversity and inclusion, we develop projects in the field of workers' health and protection, for example those implemented with Medicus Mundi in Morocco, or in the field of empowerment like the HERFinance project with the objective of facilitating wage digitalization and financial empowerment and literacy. At the end of FY2021 the Workers at the Centre strategy has allowed us to benefit 1.366.420 workers, and involve in our work and actions to 1.153 suppliers and factories. Regarding Inditex own employees, equality plans negotiated within the Group aim to make co-responsibility a right and a duty. In this regard, in 2021 diagnostic instruments were presented to properly monitor both data and the implementation of measures under the equality plans in Spain. Based on the term of the equality plan in force, negotiations for new plans are underway in the corresponding companies. This is the case with Plataforma Cabanillas, where the negotiation of its second equality plan has now begun, and Grupo Massimo Dutti, which is due to start the negotiation of its third plan. Our organisation rejects discrimination in any form. Hence, we strive to prevent sexual harassment, abuse and exploitation in the workplace by implementing an internal policy to stop sexual or gender-based harassment at work. With its Policy to Prevent Sexual and Gender-Based Harassment in the Workplace, devised and developed over the course of 2021, Inditex aims to improve the information and training in this area for the entire workforce. The main lines of this proposal will be prevention, care and support and response for victims. Further information available in: Inditex Statement of Non Financial Information 2021, pp. 118, 124-125, 219-245. (https://www.inditex.com/documents/10279/682269/2021+Statement+of+Non+Financial+Information.pdf/dfe484b5-9d06-74f2-40d3-992e71b739cd) Workers at the Centre 2021 report. (https://static.inditex.com/annual_report_2021/en/documents/workers-centre-2021.pdf) Global Sexual Harassment and Sex or Gender Identity-Based Harassment at the Workplace Prevention Policy. (https://www.inditex.com/documents/10279/643554/Sexual+Harassment+Prevention+Policy.pdf/1fbef4fd-23cb-413d-2d92-b74de8836f79)

Labour

Commitment

1. Does the company have a policy commitment in relation to the following labour rights principles?

	No, and we have no plans to develop a policy	No, but we plan to in the next two years	Yes, included within a broader policy	Yes, articulated as a stand-alone policy	Not applicable (Please provide additional information)
Freedom of association and the effective recognition of the right to collective bargaining
2016
Forced labour
2016
Child labour
2016
Non-discrimination in respect of employment and occupation
2020
Occupational safety and health
2019
Working conditions (wages, working hours)
2016

Optional comment

Policy on Human Rights: https://www.inditex.com/documents/10279/325624/Inditex+Policy+on+Human+Rights.pdf/0ec776a7-4b59-438b-bc2c-42415760d0b4 Occupational Health & Safety Policy: https://www.inditex.com/documents/10279/241538/Occupational+Health+and+Safety+Policy.pdf/28389756-c269-579b-ecb5-19a3855ff09c Diversity & Inclusion Policy: https://www.inditex.com/documents/10279/241636/Diversity_Inclusion_Policy.pdf/621d0a74-2d48-3faa-a8eb-e77fde93bba4 Additionally, Inditex's codes of conduct are an essential part of its in-house rules: Code of Conduct and Responsible Practices: https://www.inditex.com/documents/10279/241587/Code+of+Conduct+and+Responsible+Practices/aa0ee7c0-74b5-4f8d-a210-5581678919fe Code of Conduct for Manufacturers and Suppliers: https://www.inditex.com/documents/10279/241035/Inditex+Code+of+Conduct+for+Manufacturers+and+Suppliers/e23dde6a-4b0e-4e16-a2aa-68911d3032e7 Furthermore, Inditex has two Global Framework Agreements with international trade Union Federations: - The Global Agreement between Inditex and UNI Global Union for implementation of Fundamental Labour Rights and decent work which covers Inditex own employees - The Global Framework Agrement between Inditex and IndustriALL Global Union to promote and protect human and labour rights, freedom of association and the right bargain collectively. This Agreement covers Inditex's supply chain. More information available in: Inditex Statement of Non Financial Information 2021 pp. 136-137 (https://www.inditex.com/documents/10279/682269/2021+Statement+of+Non+Financial+Information.pdf/dfe484b5-9d06-74f2-40d3-992e71b739cd) Workers at the Centre 2021, pp. 41-42. (https://static.inditex.com/annual_report_2021/en/documents/workers-centre-2021.pdf)

1.1. For each labour rights policy, is it:

	Aligned with international labour standards?	Publicly available?	Approved at most senior level of the company?	Applied to the company’s own operations?	Applied to the company’s supply chain and/or other business relationships?	Developed involving labour rights expertise from inside and outside the company?	Other (Please provide additional information)
Freedom of association and the effective recognition of the right to collective bargaining
Forced labour
Child labour
Non-discrimination in respect of employment and occupation
Occupational safety and health
Working conditions (wages, working hours)

Optional comment

Further information on Inditex's approach to Human Rights available in: Inditex Statement of Non Financial Information 2021, pp. 62-69. (https://www.inditex.com/documents/10279/682269/2021+Statement+of+Non+Financial+Information.pdf/dfe484b5-9d06-74f2-40d3-992e71b739cd) Human rights 2021 report. (https://static.inditex.com/annual_report_2021/en/documents/human-rights-2021.pdf) Workers at the Centre 2021 report. (https://static.inditex.com/annual_report_2021/en/documents/workers-centre-2021.pdf)

Prevention

2. In the course of the reporting period, has the company engaged with affected stakeholders or their legitimate representatives in relation to the following labour rights issues?

	No engagement on this topic	To better understand the risks/ impacts in question	To discuss potential ways to prevent or mitigate the risks/ impacts in question	To agree on a way to prevent/ mitigate the risks/ impacts in question	To assess progress in preventing/ mitigating the risks /impacts in question	To collaborate in the prevention/ mitigation of the risks/ impacts in question	Other (Please provide additional information)
Freedom of association and the effective recognition of the right to collective bargaining
Forced labour
Child labour
Non-discrimination in respect of employment and occupation
Occupational safety and health
Working conditions (wages, working hours)

Optional comment

Collaboration is an integral part of our approach to promote and respect human rights at Inditex's supply chain. Detailed information on Inditex's collaborations is available in: Inditex Statement of Non Financial Information 2021, pp. 88-100, 219-245. (https://www.inditex.com/documents/10279/682269/2021+Statement+of+Non+Financial+Information.pdf/dfe484b5-9d06-74f2-40d3-992e71b739cd) Workers at the Centre 2021 report. (https://static.inditex.com/annual_report_2021/en/documents/workers-centre-2021.pdf)

3. What type of action has the company taken in the reporting period with the aim of preventing/mitigating the risks/impacts associated with this labour rights issue?

	Provided internal training/ capacity building for the direct workforce	Building capacity among relevant business relationships (e.g., partners, suppliers, clients, etc.)	Conducting an audit process and/or corrective action plan	Collective Action with peers or other stakeholders, in particular workers' organizations, to address the issue	Collaboration with governmental or regulatory bodies	Other (Please provide additional information)	No action within reporting period
Freedom of association and the effective recognition of the right to collective bargaining
Information available at: Workers at the Centre 2021 report, pp. 38-64. (https://static.inditex.com/annual_report_2021/en/documents/workers-centre-2021.pdf) Statement of Non Financial Information 2021, pp. 229-233. (https://www.inditex.com/documents/10279/682269/2021+Statement+of+Non+Financial+Information.pdf/dfe484b5-9d06-74f2-40d3-992e71b739cd)
Forced labour
Workers at the Centre 2021 report, pp. 92-100. (https://static.inditex.com/annual_report_2021/en/documents/workers-centre-2021.pdf) Statement of Non Financial Information 2021, pp. 238-239. (https://www.inditex.com/documents/10279/682269/2021+Statement+of+Non+Financial+Information.pdf/dfe484b5-9d06-74f2-40d3-992e71b739cd)
Child labour
Workers at the Centre 2021 report, pp. 101-109. (https://static.inditex.com/annual_report_2021/en/documents/workers-centre-2021.pdf) Statement of Non Financial Information 2021, pp. 240-241. (https://www.inditex.com/documents/10279/682269/2021+Statement+of+Non+Financial+Information.pdf/dfe484b5-9d06-74f2-40d3-992e71b739cd)
Non-discrimination in respect of employment and occupation
Workers at the Centre 2021 report, pp. 65-79. (https://static.inditex.com/annual_report_2021/en/documents/workers-centre-2021.pdf) Statement of Non Financial Information 2021, pp. 234-235. (https://www.inditex.com/documents/10279/682269/2021+Statement+of+Non+Financial+Information.pdf/dfe484b5-9d06-74f2-40d3-992e71b739cd)
Occupational safety and health
Workers at the Centre 2021 report, pp. 80-91. (https://static.inditex.com/annual_report_2021/en/documents/workers-centre-2021.pdf) Statement of Non Financial Information 2021, pp. 236-237. (https://www.inditex.com/documents/10279/682269/2021+Statement+of+Non+Financial+Information.pdf/dfe484b5-9d06-74f2-40d3-992e71b739cd)
Working conditions (wages, working hours)
Workers at the Centre 2021 report, pp. 38-64, 110-117. (https://static.inditex.com/annual_report_2021/en/documents/workers-centre-2021.pdf) Statement of Non Financial Information 2021, pp. 229-233, 240-241. (https://www.inditex.com/documents/10279/682269/2021+Statement+of+Non+Financial+Information.pdf/dfe484b5-9d06-74f2-40d3-992e71b739cd)

Optional comment

Information available in: Inditex Statement of Non Financial Information 2021, pp. 219-245, 248-249, 261-263. (https://www.inditex.com/documents/10279/682269/2021+Statement+of+Non+Financial+Information.pdf/dfe484b5-9d06-74f2-40d3-992e71b739cd). Workers at the Centre 2021 report. (https://static.inditex.com/annual_report_2021/en/documents/workers-centre-2021.pdf).

4. Who receives training for the following labour rights issues?

	No training provided	Select employees	All employees	Contractors	Direct suppliers of the organization	Indirect suppliers of the organization	Other – such as partners, clients, etc.
Freedom of association and the effective recognition of the right to collective bargaining
Forced labour
Child labour
Non-discrimination in respect of employment and occupation
Occupational safety and health
Working conditions (wages, working hours)

Optional comment

Trainings are also provided to supply chain workers, supply chain factory managers and the communities.

5. How does the company assess progress in preventing/mitigating the risks/impacts associated with the following labour rights issues?

	No monitoring of progress	Review issues on ad-hoc basis	Set annual targets/ goals, track progress over time (internal programs only)	Set annual targets/ goals, track progress over time (internal and external programs)	Other (Please provide additional information)
Freedom of association and the effective recognition of the right to collective bargaining
Forced labour
Child labour
Non-discrimination in respect of employment and occupation
Occupational safety and health
Working conditions (wages, working hours)

Optional comment

Further information available in: Inditex Statement of Non Financial Information 2021. (https://www.inditex.com/documents/10279/682269/2021+Statement+of+Non+Financial+Information.pdf/dfe484b5-9d06-74f2-40d3-992e71b739cd) Workers at the Centre 2021 report. (https://static.inditex.com/annual_report_2021/en/documents/workers-centre-2021.pdf)

Performance

6. What is the percentage of employees covered under collective bargaining agreements?

	Percent of employees (%)	Unknown
Employees covered under collective bargaining (%)	60

Optional comment

Overall, the measures implemented this year in terms of social relations mean that, globally, the percentage of employees covered by local collective bargaining agreements remains at 60% (60% in 2020, 56% in 2019, and 70% in 2018) while, in Europe, the percentage is close to 70%, as in 2018, 2019 and 2020. Further information available in: Inditex Statement of Non Financial Information 2021, pp. 138-139. (https://www.inditex.com/documents/10279/682269/2021+Statement+of+Non+Financial+Information.pdf/dfe484b5-9d06-74f2-40d3-992e71b739cd)

7. What is the percentage of employees in a trade union or other workers' organization?

	Percent of employees (%)	Unknown	Not applicable (Please provide additional information)
Employees in a trade union or on a worker committee (%)

Optional comment

This is a confidential data that the Company does not actively ask. However, 44% of Inditex’s workplaces have trade union representation, as stated in the Statement of Non Financial Information 2021, page 431. (https://www.inditex.com/documents/10279/682269/2021+Statement+of+Non+Financial+Information.pdf/dfe484b5-9d06-74f2-40d3-992e71b739cd)

8. In the course of the reporting period, what was the percentage of women in:

	Percent of women (%)	Unknown
Senior leadership level position	81
Non-executive board	60

Optional comment

As stated in Inditex Statement of Non Financial Information 2021: "By cultivating the talent of the women in our Company, we have been able to make major leaps in their leadership within the Organisation. The figures speak for themselves, and in 2021, 81% of the Company’s management positions were filled by women (81% in 2020 and 79% in 2019)." (...) "Firstly, Inditex is a company characterised by gender and age diversity. Women account for the majority, although the proportion of women to men has been gradually evening up over the last decade, with 76% of our workforce being women, compared to 24% men (76% and 24% in 2020, 76% and 24% in 2019, and 75% and 25% in 2018, respectively)." Information available in: Inditex Statement of Non Financial Information 2021, pp. 111-112, 118. (https://www.inditex.com/documents/10279/682269/2021+Statement+of+Non+Financial+Information.pdf/dfe484b5-9d06-74f2-40d3-992e71b739cd)

9. What was the average ratio of the basic salary and remuneration of women to men (comparing jobs of equal value) during the reporting period?

	Salary ratio (%)	Unknown	Choose to not disclose
Women / Men (%)	0.3

Optional comment

The answer is 0.3% As stated in Inditex Statement of Non Financial Information 2021: "To analyse differences in salaries by gender, the pay gap is the clearest indicator in methodological terms. The gender pay gap is calculated based upon the median salary in each market (considering total salary: fixed + variable, consisting of commission and bonus), weighted according to each area of activity of the Group (store, central services, logistics and factories). This median is in turn weighted according to each market's weighting over the aggregate number of Inditex employees. As a result, a global reliable indicator of pay gap between male and female workers in the Group is obtained. The outcome of the analysis carried out in 2021 shows wage parity between men and women in Inditex. In total salary terms, women are paid 0.3% more than men, indicating a slight variation from previous years (in 2020, men were paid 0.4% more than women; in 2019, women were paid 0.2% more than men; and in 2018, women were paid 0.8% more than men), which is explained by staff turnover during the period." Information available in: Inditex Statement of Non Financial Information 2021, pp. 140. (https://www.inditex.com/documents/10279/682269/2021+Statement+of+Non+Financial+Information.pdf/dfe484b5-9d06-74f2-40d3-992e71b739cd)

10. In the course of the reporting period, how frequently were workers injured (injuries per hour worked)?

	Frequency of injury	Unknown	Choose to not disclose
Frequency of injury	0.00001079

Optional comment

The answer is: 0.00001079 We have calculated this rate taking into account all occupational accidents in stores with absence to work excluding commuting accidents. As stated in Inditex Statement of Non Financial Information 2021: "In 2021, we compiled information on accidents in our own logistics, store, office, manufacturing and construction activities. The risks we have studied include falls on the same or different levels, as well as sprains or strains due to overexertion in the activity. This helps us to work on preventive and remedial measures. When analysing health and safety indicators, we consider an occupational accident to be any bodily injury to a worker during or as a consequence of the work performed as an employee, while an occupational disease is a disease whose onset is a result of the work performed as an employee in the activities and specified in the professional illnesses chart of the activity, according to local legislation. Such disease must be a result of the action of elements or substances indicated in said chart for each occupational disease. In 2021, we registered 12 occupational accidents with recovery periods of more than 180 days in Spain, and 34 in other markets (5 and 0 in 2020, respectively). On the other hand, no death resulting from an injury or accident at work has been recorded in any of the markets where the Group operates." Information available in: Inditex Statement of Non Financial Information 2021, pp. 144-148. (https://www.inditex.com/documents/10279/682269/2021+Statement+of+Non+Financial+Information.pdf/dfe484b5-9d06-74f2-40d3-992e71b739cd)

11. In the course of the reporting period, what was the company’s incident rate?

	Incident rate	Unknown	Choose to not disclose
Incident rate	13.49

Optional comment

Incidente rate =Injuries * 1000/ Average workforce = 13.49 We have calculated this rate taking into account all occupational accidents in stores with absence to work excluding commuting accidents. As stated in Inditex Statement of Non Financial Information 2021: "In 2021, we compiled information on accidents in our own logistics, store, office, manufacturing and construction activities. The risks we have studied include falls on the same or different levels, as well as sprains or strains due to overexertion in the activity. This helps us to work on preventive and remedial measures. When analysing health and safety indicators, we consider an occupational accident to be any bodily injury to a worker during or as a consequence of the work performed as an employee, while an occupational disease is a disease whose onset is a result of the work performed as an employee in the activities and specified in the professional illnesses chart of the activity, according to local legislation. Such disease must be a result of the action of elements or substances indicated in said chart for each occupational disease. In 2021, we registered 12 occupational accidents with recovery periods of more than 180 days in Spain, and 34 in other markets (5 and 0 in 2020, respectively). On the other hand, no death resulting from an injury or accident at work has been recorded in any of the markets where the Group operates." Information available at: Inditex Statement of Non Financial Information 2021, pp. 144-148. (https://www.inditex.com/documents/10279/682269/2021+Statement+of+Non+Financial+Information.pdf/dfe484b5-9d06-74f2-40d3-992e71b739cd)

Response and Reporting

12. In the course of the reporting period, has the company been involved in providing or enabling remedy where it has caused or contributed to the adverse impact associated with the following labour rights issues?

	Yes	No	Choose to not disclose	Not applicable (Please provide additional information)
Freedom of association and the effective recognition of the right to collective bargaining
Forced labour
Child labour
Non-discrimination in respect of employment and occupation
Occupational safety and health
Working conditions (wages, working hours)

Optional comment

Inditex has not caused or contributed to adverse impacts associated with the described human rights during the reporting period. Despite this, due to the company´s committment with the respect of human rights in its value chain and more specifically in the supply chain, Inditex develops projects and collaborations such as: - The Global Framework Agreement with IndusriALL Global Union able to create the communication channels between IndustriALL Global Union and Inditex, and to stablish the collaboration between their affiliates in the ground and Inditex - Stablishment of remediation plans for migrants and refugees in collaboration with local NGOs which strengthens our zer-tolerance approach towards any kind of forced labour - We also carry out remediation plans to prevent ptential cases of employment of people below the llowed age. As part of the established procedure, suppliers must be responsible for the education of the affected person until the mandatory age, as well as provide work to another family member or pay the equivalent wage of the worker to ensure the family income is not reduced - The Together Strong project consists in capacity building trainings in the field of women protection - At Inditex, we offer accompaniment and support in order to resolve open and reported issues in Bangladesh through the activities related to grievance mechanisms developed by the RSC Accord in connection to occupational health and safety - Finally, we develop corrective action plans after developing different evaluations in production facilities, with the objective of stablishing meassures which not only support both us and the suppliers on mitigating or remediating detected non-conformities in areas such as wages and working hours, but that also help us to prevent them in the future Further information available in: Workers at the Centre 2021 report, pp. 65-69 & 92-100. (https://static.inditex.com/annual_report_2021/en/documents/workers-centre-2021.pdf) Inditex Statement of Non Financial Information 2021, pp. 216-218, 234-235 & 238-239. (https://www.inditex.com/documents/10279/682269/2021+Statement+of+Non+Financial+Information.pdf/dfe484b5-9d06-74f2-40d3-992e71b739cd)

13. Briefly describe practical actions the company has taken during the reporting period and/or plans to take to implement the labour rights principles, including any challenges faced and actions taken towards prevention and/or remediation.

At Inditex, we have identified the salient human rights risks in supply chain through the corresponding due diligence process resulting in our Workers at the Centre 2019-2022 strategy. Within this framework, different projects are carried out in accordance to the seven Priority Impact Areas identified by Inditex. Some of the implemented activities whithin these areas are: -Worker participation • Better Work programme (Bangladesh, Cambodia, Egypt, Vietnam and Indonesia) • Collaboration on the ground with IndustriALL and its local affiliates (Bangladesh, Morocco and Turkey) • Communication and dialogue at the workplace (Myanmar) -Living wages • LEAN project (China, Bangladesh, Portugal, India) • Collaboration with ACT (Turkey, Bangladesh, Cambodia and Myanmar) • Wage digitalisation capacity building (Bangladesh, Vietnam, India) -Gender, diversity and inclusion • Sakhi Health (India) • Medicus Mundi Protection Project (Morocco) • Together Strong Project (Turkey) -Occupational health and safety • Structural assessment, fire prevention and electrical safety (Bangladesh, Turkey and China) • Monitoring compliance of Accord/RSC corrective action plans (Bangladesh) • Development and participation of workers in the improvement of their physical and mental health (Portugal and Vietnam) -Protection of migrants and refugees • Implementation of remedation plans (Turkey) •Buddy Programme integration project with ILO (Turkey) • Facilitating equitable workplaces that generate a culture of peaceful life (Turkey) -Social protection • Mothers at the workplace-Breastfeedingfriendly workplaces (Vietnam and Cambodia) • Prevention of school drop-out (global) • Ending long-distance parenting for working parents (China) -Protection of labour rights in the production of raw materials • Public–private partnership with the ILO (India, Pakistan, Mali) • Yarn Ethically & Sustainably Sourced (Global) • The Visible Thread (Global) Further information available at: Statement of Non Financial Information 2021, pp. 219-245. Workers at the Centre 2021 report OWN EMPLOYEES: Freedom of association and right to collective bargaining: - Regarding international social relations, a Collective Bargaining Agreement was signed between Zara Luxembourg and the trade unions, dated 22 October 2021 and in force from 1 November 2021 to 31 October 2024. - An agreement signed in 2015 with UNI, UFCW, Inditex and Zara USA, which led to the approval of a collective agreement was extended to 3 stores more in the states of New York, New Jersey and Connecticut, being a total of 24 vs 21 stores in 2020. - One of the main developments in connection with the European Works Council (EWC) this year has been the launch of a working group on gender equality. In this regard, in June 2021, training on this topic was provided by UNI Global Union for all EWC members and alternates. In addition, two other EWC plenary sessions were held during the year to inform members of key aspects of the Group regarding the economic situation, progress on the Digital Transformation Plan in the rest of the European countries, health measures implemented during the year, and investments made in humanitarian matters, among other topics. All eight member countries took part in the sessions, held in May and November. Non - discrimination in respect of employment and occupation: - The equality plans negotiated within the Group aim to make co-responsibility a right and a duty. In this regard, in 2021diagnostic instruments were presented to properly monitor both data and the implementation of measures under the equality plans in Spain. Based on the term of the equality plan in force, negotiations for new plans are underway in the corresponding companies. This is the case with Plataforma Cabanillas, where the negotiation of its second equality plan has now begun, and Grupo Massimo Dutti, which is due to start the negotiation of its third plan. - Our organisation rejects discrimination in any form. Hence, we strive to prevent sexual harassment, abuse and exploitation in the workplace by implementing an internal policy to stop sexual or gender-based harassment at work. With its Policy to Prevent Sexual and Gender-Based Harassment in the Workplace, devised and developed over the course of 2021, Inditex aims to improve the information and training in this area for the entire workforce. The main lines of this proposal will be prevention, care and support and response for victims. Information available in: Inditex Statement of Non Financial Information 2021, pp. 118, 124-125, 136-137. (https://www.inditex.com/documents/10279/682269/2021+Statement+of+Non+Financial+Information.pdf/dfe484b5-9d06-74f2-40d3-992e71b739cd)

Environment

Commitment

1. Does the company have a formal policy on the following environmental topics?

	No, and we have no plans to develop a policy	No, but we plan to in the next two years	Yes, included within a broader policy	Yes, articulated as a stand-alone policy	Not applicable (Please provide additional information)
Climate Action
2020
Water
2020
Oceans
2020
Forests / Biodiversity / Land Use
2015
Air Pollution
2020
Waste (e.g., chemical spills, solid waste, hazardous, plastic, etc.)
2020
Energy & Resource Use
2020

Optional comment

At Inditex we count with a Sustainability Policy. Approved by the Board of Directors on 14 December 2020, this policy builds on and updates the previous Corporate Social Responsibility Policy and Environmental Sustainability Policy, consolidating them into a single text. Our environmental management encompasses three broad areas (energy, water and biodiversity) on which the strategies deriving from our Sustainability Policy focus. For more information, please see Inditex Group Annual Report 2021. Inditex Sustainability Policy: https://www.inditex.com/documents/10279/240918/Inditex+Sustainability+Policy.pdf/7cfc197b-ec03-7ea6-757c-df7406262cdc Inditex Global Water Management Strategy: https://www.inditex.com/documents/10279/241820/Inditex+Global+Water+Management+Strategy/a128125c-4874-47cf-beab-7e65385b923e Inditex Global Energy Strategy: https://www.inditex.com/documents/10279/242114/Inditex+Global+Energy+Strategy/606a5ac4-1381-4672-9ad0-a192032479a2 Inditex Biodiversity Strategy: https://www.inditex.com/documents/10279/242165/Inditex+Biodiversity+Strategy/b1954ead-d283-43f2-acff-31329f56879a

1.1. For each environmental policy, is it:

	Aligned with international environmental standards?	Publicly available?	Approved at most senior level of the company?	Applied to the company’s own operations?	Applied to the company’s supply chain and/or other business relationships?	Developed involving environmental expertise from inside and outside the company?	Other (Please provide additional information)
Climate Action
Water
Oceans
Forests / Biodiversity / Land Use
Air Pollution
Waste (e.g., chemical spills, solid waste, hazardous, plastic, etc.)
Energy & Resource Use

Optional comment

Further Information available at: Inditex Statement of Non Financial Information 2021. (https://www.inditex.com/documents/10279/682269/2021+Statement+of+Non+Financial+Information.pdf/dfe484b5-9d06-74f2-40d3-992e71b739cd).

Prevention

2. In the course of the reporting period, has the company engaged with affected stakeholders or their legitimate representatives in relation to the following environmental issues?

	No engagement on this topic	To better understand the risks/ impacts in question	To discuss potential ways to prevent or mitigate the risks/ impacts in question	To agree on a way to prevent/ mitigate the risks/ impacts in question	To assess progress in preventing/ mitigating the risks/ impacts in question	To collaborate in the prevention/ mitigation of the risks/ impacts in question	Other (Please provide additional information)
Climate Action
Water
Oceans
Forests / Biodiversity / Land Use
Air Pollution
Waste (e.g., chemical spills, solid waste, hazardous, plastic, etc.)
Energy & Resource Use

Optional comment

Further Information available at: Inditex Statement of Non Financial Information 2021 (https://www.inditex.com/documents/10279/682269/2021+Statement+of+Non+Financial+Information.pdf/dfe484b5-9d06-74f2-40d3-992e71b739cd)

3. What type of action has the company taken in the reporting period with the aim of preventing/mitigating the risks/impacts associated with these environmental topics?

	Provided internal training/ capacity building for the direct workforce	Building capacity among relevant business relationships (e.g., partners, suppliers, clients, etc.)	Conducting an audit process and/or corrective action plan	Collective Action with peers or other stakeholders to address the issue	Collaboration with governmental or regulatory bodies	Other (Please provide additional information)	No action within reporting period
Climate Action
Water
Oceans
Forests / Biodiversity / Land Use
Air Pollution
Waste (e.g., chemical spills, solid waste, hazardous, plastic, etc.)
Energy & Resource Use

Optional comment

4. How does the company assess progress in preventing/mitigating the risks/impacts associated with the following environmental topics?

	No monitoring of progress	Review issues on ad-hoc basis	Set annual targets/ goals, track progress over time (internal programs only)	Set annual targets/ goals, track progress over time (internal and external programs)	Other (Please provide additional information)
Climate Action
Water
Oceans
Forests / Biodiversity / Land Use
Air Pollution
Waste (e.g., chemical spills, solid waste, hazardous, plastic, etc.)
Energy & Resource Use

Optional comment

4.1. For each environmental topic in which the company sets timebound goals / targets, what kind of targets has the company set?

	Description of targets (e.g., what is the target, absolute vs. intensity, externally verified, on track, etc.)
Climate Action	Commitment to achieve net zero emissions by 2040. In addition, we have set the target of achieving by 2022 more than 50% of articles featuring the Join Life label (the Group’s products made of more sustainable raw materials and the most environmentally friendly production processes).
Energy & Resource Use	Commitment to achieve 100% of energy consumption from renewable sources in all our own facilities (headquarters, logistics centres, factories and stores) by 2022.
Water	Commitment to achieve 25% reduction of water consumption in the supply chain by 2025.
Forests / Biodiversity / Land Use	Commitment to achieve by 2023:100% cotton from more sustainable sources, 100% man-made cellulosic fibres from more sustainable sources. Commitment to achieve by 2025: 100% polyester from more sustainable sources, 100% linen from more sustainable sources.
Air Pollution	Our Science-Based Targets (SBTs) approved by the Science-Based Targets initiative (SBTi): - 90% reduction in our Scope 1 and 2 emissions by 2030 compared to 2018. - 20% reduction in our Scope 3 emissions (in the purchased goods and services category), by 2030 compared to 2018.
Waste (e.g., chemical spills, solid waste, hazardous, plastic, etc.)	Commitment to achieve by 2023: Zero waste from our own facilities (headquarters, logistics centres, factories and stores), 100% elimination of single use plastic for customers, 100% collection of all packaging materials for recycling or reuse in the supply chain (Green to Pack).
Oceans	100% elimination of single use plastic for customers. Eliminating problematic and unnecessary plastic by 2025. To reduce a 50% the use of virgin plastics in our packaging by 2025 compared to 2019.

Optional comment

On an annual basis, the Group reports the progress made throughout the year on ESG aspects in its Statement of Non Financial Information. Regarding the previously described commitments, in 2021: - 47% Join Life articles - Cotton from more sustainable sources: 166,195 tonnes - Polyester from more sustainable sources: 26,728 tonnes - Linen from more sustainable sources: 4,201 tonnes - Viscose and other man-made cellulosic fibres from more sustainable sources: 29,053 tonnes - Scope 1 emissions: 14,575 tCO2 eq - Scope 2 emissions (market-based): 47,770 tCO2 eq - Scope 3 emissions: 17,097,801 tCO2 eq - 91% of energy consumption in our facilities from renewable sources.

4.2. For each environmental topic in which the company sets timebound goals / targets, how is progress against target / goal tracked?

	Progress is reviewed against goals annually or more frequently	Progress is reported internally to the most senior level	Progress is reported externally	Other (Please provide additional information)
Climate Action
Energy & Resource Use
Water
Forests / Biodiversity / Land Use
Air Pollution
Waste (e.g., chemical spills, solid waste, hazardous, plastic, etc.)
Oceans

5. In the course of the reporting period, has the company been involved in providing or enabling remedy for any actual impacts associated with the following environmental issue(s)?

	Yes	No	Choose to not disclose	Not applicable (Please provide additional information)
Climate Action
Water
Oceans
Forests / Biodiversity / Land Use
Air Pollution
Waste (e.g., chemical spills, solid waste, hazardous, plastic, etc.)
Energy & Resource Use

Optional comment

Inditex has not caused or contributed to adverse impacts associated with this environmental issues during the reporting period. Despite this, due to the company´s committment with the respect and safeguard of enronment, Inditex develops different projects and iniatives to prevent these impacts to happen. Some examples of initiatives and programmes carried out by Inditex regarding environmental sustainability: - Care for Water improvement programme - Sustainability Innovation Hub - Closing the Loop programme - Reforestation in collaboration with the Galician Forestry Association - Efficiency initiatives in transport and distribution (load optimisation, high-capacity vehicles, among others) Further information available at: Inditex Statement of Non Financial Information 2021. (https://www.inditex.com/documents/10279/682269/2021+Statement+of+Non+Financial+Information.pdf/dfe484b5-9d06-74f2-40d3-992e71b739cd)

Climate Action

6. What were the company’s gross global greenhouse gas emissions for the reporting period?

Scope 1 Emissions

Full

None

Emissions (tCO2e)

Scope 2 Emissions

Full

None

Emissions (tCO2e)

Scope 3 Emissions

Full

Partial

None

Emissions (tCO2e)

17097801

Optional comment

Scope 1 emissions in 2021: 14,575 tCO2eq Scope 2 emissions in 2021: 47,770 tCO2eq Scope 3 emissions in 2021: 17,097,801 tCO2eq The scope 2 data are calculated according to the market-based method following the GHG Protocol guidance for the calculation of scope 2, World Resources Institute (WRI), 2015. Regarding scope 3 emissions, the comapny reports on all relevant categories. Upstream leased assets, Processing of sold products, Downstream leased assets categories and Downstream transportation and distribution category are excluded as they are not relevant or applicable given the Inditex's activity.

7. What percentage of the company's revenue was invested in R&D of low-carbon products/services during this reporting period?

Percent of revenue (%)

Unknown

Not applicable (Please provide additional information)

We have selected not applicable as the percentage of revenue invested in R&D is confidential. At Inditex we set up the Sustainability Innovation Hub, our open innovation platform based on collaborative technology monitoring, to take an active part in the quest for new materials, technologies and processes that improve the environmental impact of our products and help us to advance towards more sustainable and circular solutions. The main objective of this platform is to identify and test innovative initiatives to enhance environmental impacts, for the purpose of scaling them in our supply chain and across the textile industry. For more information, please see Inditex Statement of Non Financial Information 2021.

Optional comment

At Inditex we set up the Sustainability Innovation Hub, our open innovation platform based on collaborative technology monitoring, to take an active part in the quest for new materials, technologies and processes that improve the environmental impact of our products and help us to advance towards more sustainable and circular solutions. The main objective of this platform is to identify and test innovative initiatives to enhance environmental impacts, for the purpose of scaling them in our supply chain and across the textile industry. For more information, please see Inditex Statement of Non Financial Information 2021.

8. Has the organization acted to support climate change adaptation and resilience?

We have taken action to increase organization-wide resilience to climate change

We have taken action to increase resilience in our supply chains

We have taken action to increase resilience in the communities in which we operate

We have provided funding for climate change adaptation and resilience initiatives and projects

We have not taken actions to build climate change resilience in the reporting period

Other (Please provide additional information)

Unknown

Optional comment

In 2021 we continued to work to further our alignment with the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD). On this regard, a comprehensive scenario analysis was conducted, enabling the company to better understand the potential impacts of climate change on the business.

Energy / Resource Use

9. Please report the company's renewable energy consumption as a percentage of total energy consumption in the reporting period.

% of total energy consumption

Unknown

Optional comment

At the last Annual General Meeting, Inditex announced the commitment to use only energy from renewable sources in all our facilities in 2022. In 2021, we have made progress in this goal and our renewable energy use now accounts for 91% of the total. Within the framework of our commitment, among other measures we have invested in generating renewable energy at our own operating centres. Where technically viable, we use our own solar thermal, solar photovoltaic or wind energy, as well as facilities to harness geothermal energy. Further information available at: Inditex Statement of Non Financial Information, pp. 254, 255. (https://www.inditex.com/documents/10279/682269/2021+Statement+of+Non+Financial+Information.pdf/dfe484b5-9d06-74f2-40d3-992e71b739cd)

Technology

10. What percent of the company's revenue came from environmentally friendly products / services during this reporting period?

Percent of total revenue (%)

Unknown

Not applicable (Please provide additional information)

Optional comment

Our Join Life label identifies the Group’s products that use more sustainable raw materials and more environmentally-friendly production processes. In 2021, 47% of our articles placed on the market are Join Life. At the Annual General Meeting held in July 2021, we also announced our ambition to label 50% of the articles we place on the market Join Life by 2022. For more information, please see Inditex Statement of Non Financial Information 2021. (https://www.inditex.com/documents/10279/682269/2021+Statement+of+Non+Financial+Information.pdf/dfe484b5-9d06-74f2-40d3-992e71b739cd)

Sector-specific: Waste

18. Please report the company's total weight of waste generated in metric tonnes during the reporting period.

Waste Generated (t)

20397

Unknown

Not applicable (Please provide additional information)

Optional comment

19. Please report the percentage of the company's waste that was hazardous waste (i.e., hazardous waste ratio) during the reporting period.

Hazardous Waste Ratio (%)

0.15

Unknown

Not applicable (Please provide additional information)

Optional comment

The absolute figure for hazardous waste generation at headquarters, own logistics centres and own factories in 2021 is 31,428 kg. The Company’s systems are not currently capable of producing disclosures about the waste generated in its proprietary stores with the level of detail required. Inditex has a number of projects underway with the aim of being able to comply with this disclosure requirement by 2023. Further information available in: Inditex Statement of Non Financial Information 2021. (https://www.inditex.com/documents/10279/682269/2021+Statement+of+Non+Financial+Information.pdf/dfe484b5-9d06-74f2-40d3-992e71b739cd)

20. Please report the company's estimated metric tonnes of single-use plastic consumed wherever material along the value chain during the reporting period.

Single-use plastics (tonnes)

Unknown

Not applicable (Please provide additional information)

Optional comment

We are working to have complete information about the use of single-use plastic in our value chain. We are collaborating with the Ellen MacArthur Foundation in this sphere.

Overall Environment

21. Briefly describe practical actions the company has taken during the reporting period and/or plans to take to implement the environment principles, including any challenges faced and actions taken towards prevention and/or remediation.

Sustainability is ingrained in all our processes and decisions throughout our value chain. From product design to store management, it is a shared principle. To ensure it permeates our entire staff, regardless of their position and function, we carry out various actions aimed at creating a culture of sustainability throughout the Company. In keeping with our aim of being a driver of transformation in the industry, we take a holistic approach to sustainability, which includes both its integration throughout our entire value chain and collaboration with each and every one of the related actors.To address the paradigm shift needed to face the challenges posed by the fight against climate change, circularity or the sustainable development of communities, we have to join forces with all the actors involved. Through our collaborative platform, the Sustainability Innovation Hub, in 2021 Zara teamed with the start-up LanzaTech to launch a capsule collection of party dresses made with fabric from capturedCO2 emissions. (More information on Inditex Statement of Non Financial Information 2021, page 174, 175). In addition, our brand's have developed several circularity projetcs, some of them are: - Zara. Recycling of pre-consumption cotton and wool from our production. - Zara Home. Recycling our own cotton waste. - Pull&Bear. Circular collections. (More information on Inditex Statement of Non Financial Information 2021, page 176) As part of our commitment to reduce our water footprint, one of the key programmes rolled out in 2021 is the Care for Water Improvement Programme. This initiative is aimed at providing support to facilities to optimise and reduce their water demand and obtain our highest score for their water management and use (Excellent Water Management) in Green to Wear audits. This year we have worked together with more than 170 facilities within the framework of this programme, providing them support, guidance and advice. (More information on Inditex Statement of Non Financial Information 2021, page 264). In 2021 Inditex joined the LEAF Coalition. This global initiative, which brings together companies and governments, aims to mobilise more than 1 billion dollars in funding for the conservation of tropical and subtropical forests. (More information on Inditex Statement of Non Financial Information 2021, page 265). Further information available in: Inditex Statement of Non Financial Information 2021. (https://www.inditex.com/documents/10279/682269/2021+Statement+of+Non+Financial+Information.pdf/dfe484b5-9d06-74f2-40d3-992e71b739cd)

Anti-corruption

Commitment

1. Does the company have an anti-corruption compliance programme?

No, it is not an immediate business priority

No, but we plan to in the next two years

Yes

2021

Optional comment

Further information on Inditex's anti-corruption compliance programme available in: Inditex Statement of Non Financial Information 2021, pp. 302-318. (https://www.inditex.com/documents/10279/682269/2021+Statement+of+Non+Financial+Information.pdf/dfe484b5-9d06-74f2-40d3-992e71b739cd) https://www.inditex.com/en/corporate-ethics

2. Does your company have policies and recommendations for employees on how to act in case of doubt and/or in situations that may represent a conflict of interest, e.g. with regard to gifts and hospitality, donations, sponsorship, or interactions with public officials?

No, and we have no plans to develop a policy

No, but we plan to in the next two years

Yes, included within a broader policy

Yes, articulated as a stand-alone policy

Optional comment

Conflicts of Interest Policy, available to all the stakeholders (including employees): https://www.inditex.com/documents/10279/643554/Conflicts+of+Interest+Policy.pdf/01e10a1d-5758-98a1-038b-5a4d12877a5e Aditionally, Inditex has drawn up Integrity Policies, which, in keeping with the provisions of the ISO 37001 Anti-Bribery Management System standard, interconnect with the ethical values of our Group, and comprise: • Policy on Donations and Sponsorships: regulating the scenarios in which donations and sponsorships may or may not be made, as well as the flow for the verification, documentation and approval thereof. • Policy on Gifts and Business Courtesies: regulating the requirements for the offering and/or acceptance of gifts or other courtesies to be considered valid and compatible with the rules of conduct of Inditex and establishing a channel for filing communications and complaints with the Ethics Committee. • Policy on Dealings with Public Servants: expressly prohibiting all forms of bribery in the public and private sectors, including facilitation payments, even where such payments are not prohibited by the laws of the country or territory concerned. Likewise, the Policy establishes the due diligence processes implemented to guarantee that the behaviour of third parties with whom Inditex has relationships is in keeping with the values, rules and ethical standards of the Company, the regulations applicable in the markets and anti-corruption best practices. Information available in: Inditex Statement of Non Financial Information 2021, pp. 304-308. https://www.inditex.com/en/corporate-ethics

Prevention

3. Who receives training on anti-corruption and integrity?

Optional comment

Further information available in: Inditex Statement of Non Financial Information 2021, pp. 302-318. (https://www.inditex.com/documents/10279/682269/2021+Statement+of+Non+Financial+Information.pdf/dfe484b5-9d06-74f2-40d3-992e71b739cd)

3.1. How often is such training provided?

	One time only	Every year	Every two or more years	We do not collect this data
All employees
Select employees
Contractors
Direct suppliers of the organization
Other – such as partners, clients, etc.
Indirect suppliers of the organization

Optional comment

4. Does the company monitor its anti-corruption compliance programme?

No, we do not monitor the anti-corruption compliance programme

Review issues on ad-hoc basis

Yes, through internal employee self-evaluations

Yes, through automated controls monitoring

Yes, through external independent monitoring

Yes, through other mechanisms

Optional comment

Further information available in: Inditex Statement of Non Financial Information 2021, pp. 302-318.

Response and Reporting

5. Please report the company's total number and nature of incidents of corruption during the reporting year.

	Number of incident(s)	Unknown	Choose to not disclose
Confirmed during the current year, but related to previous years	0
N/A
Confirmed during the current year, and related to this year	16
Over the course of financial year 2021, the Ethics Committee dealt with 16 cases related to corruption and bribery between private individuals. Of the cases closed, corrupt practices were confirmed in two instances. In one of the cases the employee was dismissed and in the other evidence of irregular practices by an external employee was obtained, leading to the adoption of the relevant remedial, mitigating and/or preventive measures within that company in order to be able to maintain the commercial relationship with said service supplier. In none of those cases relevant aspects affecting the Company were observed. During 2021, 2020, 2019 and 2018, the Group has not been aware, either through its Ethics Committee or through other means, any legal proceedings concerning corruption or bribery having been brought against the Company.

Optional comment

6. Within the reporting period, what measures has the company taken to address suspected incidents of corruption independently or in response to a dispute or investigation by a government regulator?

Initial case assessment

Internal investigation

Review by risk / ethics committee

Review by board of directors

External audit / review

Other (please provide additional information)

Not applicable/no incidents in the reporting period

Optional comment

7. Does your company engage in Collective Action against corruption?

No, it is not an immediate business priority

No, but we plan to in the next two years

Yes (please explain)

8. Briefly describe practical actions the company has taken during the reporting period and/or plans to take to implement the anti-corruption principle, including any challenges faced and actions taken towards prevention and/or remediation.

In the process of implementing the Compliance Model developed during financial year 2021, the Matrix of Criminal Risks and Controls has been updated, by analysing the possible risks inherent in the processes of the different activities carried out, taking into account the new legislation developments, the approval and / or modification of internal regulations and changes in the organisational structure and in certain processes of the Company. In this respect, as set out in the Audit Plan approved by the Audit and Compliance Committee for financial year 2021, the Internal Audit Function has engaged PwC to issue a reasonable assurance report on Inditex' Model of Criminal Risk Prevention, with a limited scope of assurance, at 31 January 2022, and following the criteria of paragraphs 2 and 5 of section 31bis of the Spanish Criminal Code, of the UNE 19600 standard, and of the guidelines issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO), which has been issued without qualification. Further information available in: Inditex Statement of Non Financial Information 2021.