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 WD
WD
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

About us 

Our work 

Why disclose? 

Become a member 

Data and insights 

Help Center Guidance & questionnaires Contact

Language  Location

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Inditex - Climate Change 2022

C0. Introduction

C0.1

(C0.1) Give a general description and introduction to your organization.

Inditex is a global fashion retail group operating in over 200 markets

ets worldwide and both
hemispheres. Our group is made up of seven brands; Zara, Pull&Bear, Massimo Dutti,
Bershka, Stradivarius, Oysho and Zara Home. Each brand directly operates its physical and
online stores in a seamlessly integrated way.

Inditex began with an ambition to make fashionable, quality and life-enhancing clothes for
people at the right price. Many of the social, economic, and environmental challenges that
we all face are now more urgent than ever. We are committed to continue innovating and in‐
creasing our efficiency to make a positive difference to people and the planet.

We aim to create value through the design of beautiful, ethically-produced, high-quality,

trend-driven fashion products, which are accessible to everyone. At the same time, we are
determined to maximise the life cycle of every item we sell and material used in production.
To achieve this, we act carefully and responsibly at every stage of the fashion process.

The impact of climate change, the human influence on the natural world, and a scarcity of
natural resources impacts us all. At Inditex, we believe fashion, is universal, and it must be a
force for good, which is why we are an agent of change. Over the past two decades we have
also demonstrated a longstanding commitment to people and environment, beginning with
the company becoming a signatory to the UN Global Compact in 2001.

The company’s economic growth objectives are thereby fused with ambitious social and en‐
vironmental objectives, all with the common aspiration of making progress towards a circu‐
lar economy and decarbonisation that contributes to mitigating the effects of climate
change and development of biodiversity, with shared demand coming from both within and
outside of the organisation. At the same time, it encourages respect and promotion of fun‐
damental rights and worker rights. That is where our Sustainability Roadmap comes to the
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fore. Unveiled at our Annual General Meeting (AGM) in July 2019, it maps out an ambitious
series of milestones and commitments which the organisation is working towards between
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now and 2025. Some of these targetsets were updated at the AGM in July 2021: net zero emis‐
sions by 2040 (10 years ahead of the previous target), over 50% of Join Life articles by 2022
(label that distinguishes the Group’s most sustainable products), 100% of cotton will be
from more sustainable sources by 2023 (previously 2025), and 100% of electricity consump‐
tion from renewable sources in all our facilities by 2022 (previously 80% by 2025).

To continue reducing the Group’s impact on climate change in 2021, Inditex has made
progress in more closely adopting the recommendations of the TCFD to provide even more
detailed information on the risks and opportunities arising from climate change. A multidis‐
ciplinary working group was created in 2019 to specifically analyse, manage and adapt the
company’s climate-related disclosure and management framework to the recommendations
of the TCFD. We have also reached new milestones in our commitment to tackling climate
change: we have increased our worldwide renewable energy consumption up to 91% for our
operations, compared to 81% in 2020; 47% of our articles carried our Join Life label; we have
been included by Boston Consulting Group on its list of Most Innovative Companies 2021;
and we have received the Terra Carta seal for contribution to creating a sustainable future.
Inditex signed the Open Letter from the We Mean Business coalition to the leaders of G20
countries and we took part in the review of the objectives of the Fashion Industry Charter for
Climate Action (FICCA). Moreover, in 2021 we joined the LEAF Coalition, a global initiative
which brings together companies and governments, and aims to mobilise more than 1 bil‐
lion dollars in funding for the conservation of tropical and subtropical forests. We also con‐
tinued our commitment to preserve ecosystems through a number of projects and by con‐
suming raw materials from more sustainable sources, already representing 42% of the total.

Inditex's shares have been listed on the Madrid stock exchange since 2001 and are included
in blue-chip stock indices such as the Ibex 35, FTSE Eurotop 100 and the Eurostoxx 50.

C0.2

(C0.2) State the start and end date of the year for which you are reporting data.

Start End date Indicate if you are providing Select the number of past reporting years
date emissions data for past reporting you will be providing emissions data for
years

Reporting February January Yes 3 years

year 1 2021 31 2022

C0.3

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(C0.3) Select the countries/areas in which you operate.

Albania  WD

Algeria
Andorra
Argentina
Armenia
Aruba
Australia
Austria
Azerbaijan
Bahrain
Belarus
Belgium
Bosnia & Herzegovina
Brazil
Bulgaria
Canada
Chile
China
China, Macao Special Administrative Region
Colombia
Costa Rica
Croatia
Cyprus
Czechia
Denmark
Dominican Republic
Ecuador
Egypt
El Salvador
Estonia
Finland
France
Georgia
Germany
Greece
Guatemala
Honduras
Hong Kong SAR, China
Hungary
Iceland
India
Indonesia
Ireland
Israel
Italy
Japan
Jordan
Kazakhstan

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Kuwait
Latvia  WD

Lebanon
Lithuania
Luxembourg
Malaysia
Malta
Mexico
Monaco
Montenegro
Morocco
Netherlands
New Zealand
Nicaragua
North Macedonia
Norway
Oman
Panama
Paraguay
Peru
Philippines
Poland
Portugal
Puerto Rico
Qatar
Republic of Korea
Romania
Russian Federation
Saudi Arabia
Serbia
Singapore
Slovakia
Slovenia
South Africa
Spain
Sweden
Switzerland
Taiwan, China
Thailand
Tunisia
Turkey
Ukraine
United Arab Emirates
United Kingdom of Great Britain and Northern Ireland
United States of America
Uruguay
Viet Nam

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C0.4

(C0.4) Select the currency used for all financial information disclosed throughout your
response.
EUR

C0.5

(C0.5) Select the option that describes the reporting boundary for which climate-related
impacts on your business are being reported. Note that this option should align with your
chosen approach for consolidating your GHG inventory.
Financial control

C0.8

(C0.8) Does your organization have an ISIN code or another unique identifier (e.g., Ticker,
CUSIP, etc.)?

Indicate whether you are able to provide a unique identifier for your organization Provide your unique identifier

Yes, an ISIN code ES0148396007

C1. Governance

C1.1

(C1.1) Is there board-level oversight of climate-related issues within your organization?

Yes

C1.1a

(C1.1a) Identify the position(s) (do not include any names) of the individual(s) on the board
with responsibility for climate-related issues.

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Position of Please explain

individual(s)  WD

Chief On the Board, the highest level with direct responsibility for oversight is climate-related issues
Executive lies with the CEO, responsible for approving the Group’s sustainability strategy and the climate
Officer (CEO) change policy. In addition, the Sustainability Committee is the delegated body of the Board of
Directors that supervises and controls proposals in the areas of sustainability, human rights, so‐
cial, environmental, and product health and safety. It is also responsible for fostering the commit‐
ment to the Sustainable Development Goals as well as steering relations with the various stake‐
holders in sustainability matters.

An example of a climate-related decision made by the CEO, could be the setting of a more ambi‐
tious net zero target to be achieved by 2040 (previously 2050). This new target was announced at
the Inditex Annual General Meeting held in July 2021.

Responsibilities from the CEO are linked to the progress in the implementation of the strategy to‐
wards global sustainability, which is why an annual variable remuneration of 15% was established
based on various sustainability indicators such as the consumption of renewable energy in all our
own facilities (headquarters, logistics centres, factories and own stores).

Board-level The Sustainability Committee is the delegated body of the Board of Directors, which is tasked
committee with supervising stakeholder relations in the area of sustainability and reports to the Board of
Directors. The Sustainability Committee is an informative and consultative body in charge of ad‐
vising the Board of Directors on matters of sustainability and overseeing and controlling sustain‐
ability proposals in the human rights, social, environmental and health and safety of our products
aspects, as well as promoting the commitment with the Sustainable Development Goals and the
relations with the various stakeholders in matters of sustainability.

Following the link below, the Sustainability Committee’s regulations can be consulted:
https://www.inditex.com/itxcomweb/api/media/f746012d-6238-4fd3-81b9-f1a53221368e/indi‐
tex_sustainability_committee_regulations.pdf?t=1655305779885

C1.1b

(C1.1b) Provide further details on the board’s oversight of climate-related issues.

Frequency Governance Scope of Please explain

with which mechanisms into board-
climate- which climate- level
related related issues are oversight
issues are a integrated
scheduled
agenda item

Scheduled – Reviewing and <Not The Board of Directors of Inditex is aware of the concerns of cli‐
all meetings guiding strategy Applicabl mate-related issues and that is why they scheduled them in their
Reviewing and e> agenda. At the beginning of each BoD meeting, the Chair of the
guiding major plans Sustainability Committee reports on the main business transact‐
of action ed and the resolutions passed in the last meeting of the
Reviewing and Committee. Also, the Sustainability Committee encourages the
guiding risk presence in its meetings of the CEO and the officers and supervi‐
management sors of the business areas, so they explain their view on certain
policies issues linked with the remit of the Committee. In 2021 some of
Reviewing and these climate-related issues have been: with the aim of reducing
guiding annual consumption of paper bags and related waste, the introduction
budgets
ets of a small charge for them in the markets
ets where we operate, fur‐
Reviewing and ther allocating the equivalent amount collected to environmental
guiding business initiatives, or the new goals and commitments of the

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Frequency Governance Scope of Please explain

with which
climate-
mechanisms into
which climate-
board-
level
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
related related issues are oversight
issues are a integrated
scheduled
agenda item
plans Sustainability Roadmap announced at the AGM 2021.
Setting Governance mechanisms for the integration of climate issues
performance are:
objectives - Review of strategies, action plans and risk management poli‐
Monitoring cies. The BoD is responsible for determining the Enterprise Risk
implementation and Management Policy (ERMP), this being a non-delegable power.
performance of The ERMP sets
ets out the overarching principles, risk factors and
objectives general framework for action to manage and monitor the risks
Overseeing major that affect the Group, encompassing both financial and non-fi‐
capital nancial risks the Group faces (including risks related to climate
expenditures, change and environmental risks). For instance, in 2020, Inditex
acquisitions and officially supported the “Task Force on Climate-related Financial
divestitures Disclosures (TCFD)” and worked to integrate and implement this
Monitoring and standard into its Enterprise Risk Management System (ERMS) as
overseeing progress regards climate risks. In 2021, the Group made significant
against goals and progress in more closely adopting the reporting recommenda‐
targets
ets for tions of this framework and has incorporated an even more de‐
addressing climate- tailed analysis of the risks and opportunities arising from cli‐
related issues mate-change.
- The establishment of targets
ets to address climate-related issues.
In this sense, energy is a critical component of the fashion distri‐
bution business, and the efficient and low-impact use of energy
is essential for our approach to sustainability. Thus in 2020, we
committed to reduce absolute Scope 1 & 2 GHG emissions by
90% by 2030 from a 2018 base year, and absolute scope 3 GHG
emissions in the purchased goods and services category by 20%
by 2030 from a 2018 base year. The SBTi (Science-Based Target
Initiative) approved our decarbonisation objectives, describing
them as “ambitious”, as the reductions proposed are stricter than
those set by the most ambitious emission reduction pathways
available today. Aware of this important challenge, in 2021 we
are making progress on our science-based reduction targets
ets and
already the Group’s energy needs covered by renewable energy
account for 91%. Additionally, the Group approved new sustain‐
ability objectives at its AGM 2021 and brought forward by 10
years its commitment to achieve net zero emissions by 2040.

C1.1d

(C1.1d) Does your organization have at least one board member with competence on climate-
related issues?

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Board Criteria used to assess competence of board Primary reason Explain why your
member(s)
have
member(s) on climate-related issues for no board-
level
organization does not
WD
have at least one board

competence on competence on member with
climate-related climate-related competence on
issues issues climate-related issues
and any plans to
address board-level
competence in the
future

Row Yes The Group’s sustainability strategy and its policy <Not <Not Applicable>
1 on climate change is approved at the highest Applicable>
level by the Board of Directors (BoD) of Inditex.
The BoD monitors, on a quarterly basis, the fulfil‐
ment of the objectives included in the Strategic
Plan, analysing, among others, the indicators re‐
lated to sustainability and climate change, which
are integrated into our business model and our
decision-making processes.

The BoD has set up the Sustainability

Committee as a permanent internal consulting
and advisory body, without executive duties, with
information, oversight, advisory and proposal-
making powers within sustainability and climate
change. As established in the Sustainability
Committee’s Regulations, ‘the BoD shall endeav‐
our to ensure that Committee members, and
namely the Chair, have the appropriate knowl‐
edge, qualifications and experience to discharge
the duties they are called upon to perform, in‐
cluding on sustainability and climate change re‐
lated issues’.

The Nomination Committee has reviewed the

size, membership, skills and effectiveness of the
BoD, drawing up a skill matrix ultimately ap‐
proved by the BoD. The Board skill matrix is in‐
cluded in the “Report of the Nomination
Committee of Industria de Diseño Textil, S.A. (In‐
ditex S.A.) on the needs of the BoD with regard
to the proposal for ratification of appointments
through the co-option system for re-election of
Directors". The matrix shows that 3 directors
have competences in sustainability, where cli‐
mate-related issues are included.

For instance, Bns. Denise Patricia Kingsmill who

chairs the Sustainability Committee and was
elected as a director on 19 July 2017 by the
Annual General Meeting (AGM) and re-elected by
the AGM held on 14 July 2020, is currently a
member of the Advisory Board for the Global
Sustainability Forum and the International
Advisory Board of IESE Business School. She
has recently been appointed a UK representative
on the NATO Parliamentary Assembly.

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C1.2

(C1.2) Provide the highest management-level position(s) or committee(s) with responsibility

for climate-related issues.

Name of the Reporting Responsibility Coverage of Frequency of reporting to

position(s) and/or line responsibility the board on climate-
committee(s) related issues

Chief Sustainability <Not Both assessing and managing <Not Applicable> Quarterly
Officer (CSO) Applicable> climate-related risks and
opportunities

C1.2a

(C1.2a) Describe where in the organizational structure this/these position(s) and/or

committees lie, what their associated responsibilities are, and how climate-related issues are
monitored (do not include the names of individuals).

Where in the organizational structure that position lies.

The Chief Sustainability Officer (CSO) is the highest management position in charge for
both assessing and managing climate-related issues. The Chief Sustainability Officer (CSO)
is part of the Senior Management of Inditex, which comprises the Company’s senior execu‐
tives and the directors of all our brands. The CSO reports to the COO & Head of Digital and
Sustainable Transformation and to the CEO whenever so required, to the Sustainability
Committee on at least a quarterly basis and, where applicable, to the Audit and Compliance
Committee, concerning aspects relating to climate change and the associated risks.

The CSO establishes the strategy and, within the ERMS, proposes the level of tolerance to
climate risk (approved by the Board), as well as supervising the implementation of the sus‐
tainability roadmap, and the attainment of the climate goals.

Once assessed and defined in detail, the Board of Directors is responsible for approving the
sustainability strategy and make sure Inditex is on the right path to be a net-zero emissions
company by 2040. Below the CSO, we can find the Environmental and Social Directors, re‐
porting on the progress in their respective fields, including climate-related issues directly to
the CSO. In addition to this, the Audit and Compliance Committee oversees evaluating any
aspect regarding non-financial risks (including without limitation, operational, technological,
regulatory, social, environmental, political and reputational) the enterprise risk management
policy and the risks management systems must contain. The CSO is tightly coordinated
with the Audit and Compliance Committee, which as well reports directly to the Board of
Directors (BoD) about the progress of the year, information gathering on the Sustainability

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Policy and achievement of the goals of the Environmental Strategic Plan.

 WD

Why responsibility lies with that position.

The BoD is responsible for designing and reviewing the organizational structure and the
lines of responsibility within the Group. The CSO’s primary objective is to ensure the sustain‐
able development of the Group and hence he is directly in charge of ensuring that the cur‐
rent activities of the Group are sustainable from a climate and financial perspective without
compromising our future needs.

Responsibilities.

CSO is responsible for:

- Establishing the Sustainability Strategy and, within the ERMS, proposing the level of cli‐
mate-related risk that the Company may deem acceptable.

- Validating and supervising action plans resulting from the risks management process itself
and the sustainability roadmap that will lead Inditex to be a net-zero emissions company by
2040 (previously 2050).

- Raising awareness regarding the weight of the Environmental Resources Management

System and its value for all the stakeholders of the Group, encouraging the creation of an
all-encompassing risks management culture.

- Defining and validating functions, powers and responsibilities within the framework of the
Environmental Resources Management System.

- Oversee the implementation of the sustainability roadmap and the achievement of climate
goals.

- Follow-up on activities.

Description of positon(s)/committee(s) specific climate-related issues monitoring process.

Inditex climate-related risks are integrated into multi-disciplinary company-wide risk man‐
agement, so standard criteria to identify, assess and prioritize them are used based upon
the concept of risk tolerance as a key tool. The CSO establishes the strategy and climate-re‐
lated risk tolerance, which must reflect the volume of risk that our company is willing to as‐
sume, to reasonably achieve the objectives and interests of the Group. Such tolerance is
regularly updated in accordance with the more updated target ambition and the company
strategy. Once our risk tolerance has been defined, the Corporate Risks Manager is in
charge to determine the assessment scales of key business risks (impact, likelihood, and re‐
silience). Accordingly, the CSO oversees implementing climate-related strategies and

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achieving the climate-related targets.

ets In 2020, at Inditex, we committed to the TCFD recom‐
 in‐WD
mendations of disclosing climate strategies and climate-related financial risks to help 
vestors understand our financial exposure to climate risk. The quantification and reporting
of financial impacts are done in close partnership with the Financial Division, led by the
CFO. In 2021, Inditex has made progress in more closely adopting the recommendations of
the TCFD to provide more detailed information on the risks and opportunities arising from
climate change. A multidisciplinary working group was created in 2019 to specifically an‐
alyse, manage and adapt the company’s climate-related disclosure and management frame‐
work to the recommendations of the TCFD.

C1.3

(C1.3) Do you provide incentives for the management of climate-related issues, including the
attainment of targets?
ets

Provide incentives for Comment

the management of
climate-related issues

Row Yes Incentives for the management of climate-related issues are integrated into our
1 variable remuneration policy and consists of different remuneration elements and
schemes. The variable remuneration comprises a mix of variable cash remuneration
and share-based remuneration components. In 2021, Inditex continued to include
sustainability-and climate related goals in its employees' variable pay.

C1.3a

(C1.3a) Provide further details on the incentives provided for the management of climate-
related issues (do not include the names of individuals).

Entitled to Type of Activity Comment

incentive incentive incentivized

Chief Executive Monetary Emissions Inditex ensures that climate-related objectives are introduced
Officer (CEO) reward reduction throughout the company and that management is responsible for
project the achievement of these objectives, associating the performance
Energy reduction and management of these objectives with economic incentives.
target
Environmental The variable annual remuneration of the Group’s Chief Executive
criteria included Officer is linked to the fulfilment of the sustainability objectives,
in purchases specifically representing 15% of the variable annual remuneration.
This progress is measured in accordance with a set of indicators,
such as the increase in the percentage of Join Life labelled prod‐
ucts (those made of more sustainable raw materials and the most
environmentally friendly production processes), % of renewable en‐
ergy consumed in Inditex buildings, among others.

Corporate Monetary Emissions Inditex has a long-term incentive (LTI) scheme for members of the
executive team reward reduction management team and other employees covering the 2019-2023
project period. This incentive includes, among other sustainability criteria,
Energy reduction a reduction in the ratio of greenhouse gas emissions in the
target Company’s own operations with respect to the volume of the
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Entitled to Type of Activity Comment

incentive incentive incentivized  WD

Environmental Group’s total sales. This index has a maximum weighting of 10%
criteria included over the total. In 2021, the Annual General Meeting approved a new
in purchases long-term incentive plan for 2021-2025, which continues the same
approach of the previous plan. The main new development under
this new Plan is the increase in the weighting of sustainability met‐
rics from 10% to 25%.

Furthermore, variable specific compensation of the corporate exec‐

utive team is linked to the performance of the company regarding
sustainability.

Chief Monetary Emissions Inditex has a long-term incentive (LTI) scheme for members of the
Sustainability reward reduction management team and other employees covering the 2019-2023
Officer (CSO) project period. This incentive includes, among other sustainability criteria,
Energy reduction a reduction in the ratio of greenhouse gas emissions in the
target Company’s own operations with respect to the volume of the
Environmental Group’s total sales. This index has a maximum weighting of 10%
criteria included over the total. In 2021, the Annual General Meeting approved a new
in purchases long-term incentive plan for 2021-2025, which continues the same
approach of the previous plan. The main new development under
this new Plan is the increase in the weighting of sustainability met‐
rics from 10% to 25%.

Furthermore, variable specific compensation of the Chief

Sustainability Officer is linked to the performance of the company
regarding sustainability.

C2. Risks and opportunities

C2.1

(C2.1) Does your organization have a process for identifying, assessing, and responding to
climate-related risks and opportunities?
Yes

C2.1a

(C2.1a) How does your organization define short-, medium- and long-term time horizons?

From To Comment
(years) (years)

Short- 0 5 We define time horizons taking into consideration the useful life of the organiza‐
term tion’s assets
ets and infrastructure. Additionally, we are mindful that climate-related is‐
sues often manifest themselves over the medium and longer terms.

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From To Comment
(years) (years)  WD

With regards to the short-term, the Groups’ strategic business plan is used as a
baseline.

Medium- 5 10 With regards to the medium-term the Group, considering climate related risks take
term longer to impact the business, have opted to use the average useful life of the
groups assets
ets as a reference point, resulting in a medium-term horizon of 5-10
years.

Long- 10 With regards to the long-term the Group considers the longer useful life of key as‐
term sets
ets as well as considering strategic actions taken with regards to climate change,
resulting in a time horizon of over 10 years.

C2.1b

(C2.1b) How does your organization define substantive financial or strategic impact on your
business?

Our risk management is driven by the Board of Directors and the Senior management
through the Enterprise Risk Management Policy, which overarching principles, risk factors
and the general framework for action are set out in order to manage and monitor the risks
that affect the Group. The aim is to provide reasonable assurance of achievement of the ob‐
jectives established by the Group as an answer to social and environmental challenges, en‐
suring an appropriate level of guarantee to stakeholders which ensures protection of value
built. The enforcement of the Policy, in full or in part, may extend to any natural and/or legal
person associated with Inditex, and the scope of the Policy extends to the entire Group be‐
ing the basis of an Enterprise Risks Management System. Inditex's Integrated Enterprise
Risk Management System (“ERMS”) is part of the strategic planning process, the definition
of business objectives and of the daily operations of the Group, Climate related risks are in‐
corporated within the ERMS framework.

We define substantive financial impact as one which may have an adverse impact on the
achievement of the business objectives, this is represented by a risk map that includes the
main risks classified in different groups, together with an assessment thereof based upon
the potential impact, the likelihood of occurrence and level of preparedness to address
them. The overall assessed risks are graded into four categories: Low, Medium, Significant,
and High. Inditex defined thresholds for risks with a financial impact ≥ 1% of total revenue
are considered Highly Critical, those between 1% and 0.5% are Significant, risks between
0.5% and 0.25% are classified as Medium and below that threshold, they are classified as
Low in the critical scale. In the end, critical risks are represented in a risk map i.e., those
which if materialized might hamper the achievement of the strategic objectives set by the
Group. Such map is regularly reported to the Board of Directors.

With regards to Climate related risks, the quantitative indicator used to define and monitor
substantive risks is the 5 year expected Free cash flow of the Group.

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 WD

To enhance the Group's identification and assessment of potential substantive climate-relat‐
ed risks and opportunities considering their particularities, complexity and time horizon spe‐
cific nature, we have implemented the Taskforce for Climate-related Financial Disclosures
(TCFD) recommendations. In our latest 2021 Annual Report, we have reported on our sce‐
nario based methodology developing both qualitative and quantitative climate modeling
process across our value chain to assess our Group’s resilience under different emission
pathways. We have partnered with the University of Cambridge’s Centre for Risk Studies
(Risilience) to build a climate modeling tool. The scenarios covered all of TCFD recommend‐
ed dimensions, both physical and transition risks, and incorporated 5 different emission
pathways based on the IPCC latest report.

C2.2

(C2.2) Describe your process(es) for identifying, assessing and responding to climate-related
risks and opportunities.

Value chain stage(s) covered

Direct operations
Upstream
Downstream

Risk management process

Integrated into multi-disciplinary company-wide risk management process

Frequency of assessment
More than once a year

Time horizon(s) covered

Short-term
Medium-term
Long-term

Description of process
Our risk management is driven by the Board of Directors and the Senior management
through the Enterprise Risk Management Policy, which overarching principles, risk factors
and the general framework for action are set out in order to manage and monitor the risks
that affect the Group. The enforcement of the Policy, in full or in part, may extend to any
natural and/or legal person associated with Inditex, and the scope of the Policy extends
to the entire Group being the basis of an Enterprise Risks Management System (ERMS),
applying to risks that may affect direct operations, upstream and downstream operations.
Inditex's ERMS is part of the strategic planning process, the definition of business objec‐
tives and of the daily operations of the Group, Climate related risks are included within the
Inditex ERMS. We follow the recommendations of the TCFD for the identification, evalua‐
tion and response to climate related risks.

1. Identification:

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The risk identification process aims to pinpoint, recognise and describe the risks WD
that may 
prevent the organisation from achieving its objectives. The time-horizons covered in this
identification process go from short (0-5 years), medium (5-10 years) to long term (more
than 10 years). In the identification process, every effort is made to have the best informa‐
tion available, taking as a foundation the knowledge and experience of the areas directly
responsible for risk management, complemented, where appropriate, by relevant external
sources. Emerging risks are also considered, i.e., those risks that are new, in the process
of transformation, or are a novel combination of risks, whose impact, probability of occur‐
rence and cost are not yet well understood. Risk criteria must be set by Senior
Management, in keeping with the Group’s objectives and interests, as well as those of its
various stakeholders, and are updated periodically, more than once a year.

2. Assessment:

The risk assessment considers three magnitudes for each of the risks: impact, likelihood
of occurrence and level of preparedness. The Risk Management department periodically,
more than once a year, asks the various management units to assess and review the dif‐
ferent risks and the mitigation measures in place and planned, by means of a system of
interviews and questionnaires. A risk register is kept, represented in a risk map, assessing
risks according to their overall impact. The map contains the critical risks, meaning those
which, if they were to materialise, could compromise the achievement of the Group’s
strategic objectives. The map is periodically reported to the Board of Directors.

To assess climate change-related risks across our own operations, upstream and down‐
stream operations, methods for the financial assessment of (acute and chronic) physical
and transitional risks in the short, medium and long term based on scenario methodology,
are also used.

The scenarios used are in line with TCFD recommendations. Each scenario is run against
five emissions pathways to assess the potential impacts on the Group of both physical
and transition risks. Each pathway has its own socio-economic narrative based on as‐
sumptions in respect of regulatory changes, energy outlooks and technological advances
on the basis of existing data, and a probability of occurrence. For example, emissions
pathways are aligned with the Shared Socioeconomic Pathways of the Intergovernmental
Panel on Climate Change (IPCC’s SSPs).

The scenarios incorporate strategic business plans, physical locations globally within the
value chain, as well as GHG emissions in scope 1, 2 and 3.

The scenarios result in a financial impact quantification on Future expected free cash
flows, defined as Earnings Value@Risk. This allows senior management and all stakehold‐
ers to understand the climate related risks associated with our business. This tool can be
used to quantify reduction in risks due to the implementation of sustainability objective
over the short, medium and long term horizon.

3. Response:

To cope with climate-related risks, the tolerance to those and the corporate ambition, the

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CSO establishes the climate strategy and supervises its implementation.

The CSO is responsible to identify, prioritize, select and follow-up the sustainability WD
 strate‐

gy in this regard.

The CSO reports to the COO & Head of Digital and Sustainable Transformation and to the
CEO whenever so required, the Sustainability Committee on a quarterly basis and, where
applicable, to the Audit and Compliance Committee, concerning aspects relating to cli‐
mate change and the associated risks.

The Board of Directors approves the sustainability strategy and the climate change policy
proposed by the CSO which is included in the Sustainability Roadmap.

The Sustainability Roadmap includes the corporate milestones and commitments to‐
wards a low-carbon economy and generating a positive impact in the industry and in soci‐
ety in general. At the Annual General Meeting held on 13 July 2021, the Group announced
bringing forward some objectives and adding new ones to those already set out in our
Roadmap, raising the level of ambition. These include bringing forward our goal of net
zero emissions to 2040, ten years earlier than initially scheduled.

We collaborate with all the actors in our value chain and our stakeholders to tackle global
challenges from a holistic standpoint.

C2.2a

(C2.2a) Which risk types are considered in your organization's climate-related risk
assessments?

Relevance Please explain

& inclusion

Current Relevant, As a result of our large global presence in more than 200 markets
ets across five conti‐
regulation always nents, the Group is subject to different legislation in the countries where it conducts
included business. Regulatory climate-related risks are relevant and always considered at
Inditex’s Enterprise Risk Management System (ERMS). The General Counsel’s Office –
Office of the Chief Compliance Officer (GCO-OCCO) is responsible for overseeing and
managing the compliance of the Group to prevent any regulatory risks, including cli‐
mate-related, from happening while respecting the highest ethical standards and fol‐
low-up on best corporate practices.

As an example, the EU Directive 2015/720 of the European Parliament and of the

Council of 29 April 2015 amending D 94/62/EC seeks the reduction of lightweight plas‐
tic carrier bags to the subsequent applications by the EU member states. The impact
that this regulatory risk could have in our business would be an increase of operating
expenses if the Group is not able to reduce our consumption of single-use plastic.

However, at Inditex we have emphasized our commitment through different targets,

ets all
aligned with the Directive, such as our goal of eliminating 100% of single use plastics
to customers by 2023. In line with this commitment, in 2020 we transitioned from
plastic bags to paper bags in stores and eliminated plastic from online orders. In an‐
other step to further our ambition in this regard, we undertook with the Ellen
MacArthur Foundation (EMF) to reduce a 50% the use of virgin plastics in our packag‐
ing by 2025 compared to 2019. This goal underpins the reuse, disposal and recycling
efforts being undertaken across the Company’s multiple teams.
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Relevance Please explain

& inclusion  WD

Emerging Relevant, Emerging regulations are relevant and always considered in Inditex’s Enterprise Risk
regulation always Management System (ERMS). These are risks to which our company is exposed to
included arising from the future laws and regulations in the number of different countries where
we operate.

In response to the Paris Agreement strategy, countries are rapidly implementing legis‐
lation to reduce greenhouse gas (GHG) emissions. Such a response would likely be
forceful, abrupt, and disorderly. The Agreement’s ‘ratchet mechanism’ is designed to
urge ambition, mandating that governments resubmit new commitments (as ‘National‐
ly Determined Contributions’) every five years.

In 2020, national efforts accelerated, with major global economies, including China,
Japan, South Korea, and the USA, making net zero commitments.

An example of emerging regulation in this context, that we considered and have ap‐
plied a scenario analysis model to, is related to carbon pricing. Carbon pricing policies
(via either emissions trading systems or carbon taxes) are determined at national or
sub-national level of governance, reflecting the difficulties in mandating a global
agreement, although some international coordination is expected.

Inditex is globally present in more than 200 markets

ets over five continents and works
with 1,790 suppliers. Therefore, we must adapt quickly and carefully to the evolving le‐
gal and regulatory landscape. The Group’s total emissions footprint in each of the ju‐
risdictions is subject to their carbon pricing as well as related taxes. The financial im‐
pact stems from the increase in production and distribution costs, and the cost of raw
material procurements, in terms of the increase per unit of product.

Technology Relevant, Technology risks are relevant and always considered in Inditex’s Enterprise Risk
always Management System (ERMS).
included
The development and use of emerging technologies that support a lower-carbon econ‐
omy can affect the competitiveness of Inditex, its operating costs, and its ability to
meet consumer demand for products and services.

An example of technology risk in this context, that we considered and have applied a
scenario analysis model to, is the adoption and expansion of renewable energy sys‐
tems, including for industrial and residential consumption and transport/distribution
networks, driven by the rate of technological innovation. Our investments in reducing
GHG emissions may stimulate improvements in efficiency and margins in the long run
but demands significant immediate investments that present near-term risks in terms
of operating expenses and the value of the assets.
ets Our investments seek a balance be‐
tween innovation and profitability.

As established competitors embrace technology and novel competitors enter the mar‐
ket, maintaining market share and profit margins requires Inditex to take educated
risks on investing in emerging, often expensive technologies.

Legal Relevant, Legal risks are relevant and always considered on Inditex’s Enterprise Risk
always Management System (ERMS).
included
With regards to climate related risks, litigation is already being brought against gov‐
ernments and corporations to seek compensation through the courts for harm caused
by climate change.
Inditex could face lawsuits linked to GHG emissions and climate change, which could
bring incurring in compensation costs as well as affecting the company’s reputation.
The scale and number of lawsuits vary in accordance with the different emissions
pathways. Their probability of occurrence and potential impact will also vary depend‐
ing on the associated costs (settlement, legal damages, legal costs, etc.).

Market Relevant, Market risks related to climate risks are relevant and always included within the over‐
always all ERMS framework.

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Relevance Please explain

& inclusion  WD

included
An example of market risk in this context, that we considered and have applied a sce‐
nario analysis model to, is that society is expressing a growing interest in sustainable
products and services. Some consumers may be changing their apparel and footwear
purchasing preferences following sustainability related considerations, while green in‐
vestors are increasingly scrutinising carbon-intensive businesses and sectors vying to
attract their investment. The resulting shifts in supply and demand threaten Inditex’s
market share and cost of capital.

At Inditex, we have our Join Life label, which identifies articles made of more sustain‐
able raw materials and the most environmentally friendly production processes. In
2021, already 47% of the products placed on the market feature this label. Our
Sustainability Roadmap sets
ets that by 2022, 50% of the Group’s products will be Join
Life.

Reputation Relevant, Reputation risks are relevant and always considered on Inditex’s Enterprise Risk
always Management System (ERMS) from a climate perspective.
included
An example of reputation risk in this context that we considered and have applied a
scenario analysis model to is where society accelerates the transition towards a low‐
er-carbon economy and public opinion shifts, and the contribution of Inditex to this
transition is scrutinised.

The primary driver of impact to a business, such as Inditex, is an idiosyncratic loss of

demand for key brands, products, and services, resulting in loss of sales and market
share. Impacts are variable depending on the socioeconomic dynamics of individual
markets
ets and the product offering in each of them.

In a business-as-usual world, global frustrations over meeting emission reductions tar‐

gets
ets may cause a substantial negative shift in public opinion towards major corpora‐
tions due to their approach to tackle climate change. Negative sentiment is fanned by
effective viral media and environmentalist campaigns. Significant consumer segments
may engage in climate activism, targeting individual companies, such as Inditex, with
high-profile, persistent campaigns and boycotts.

Acute Relevant, Acute physical risks are relevant and always considered on Inditex’s Enterprise Risk
physical always Management System (ERMS).
included
The main acute physical risks the Group addresses stem from a potential occurrence
of extraordinary events beyond the control of the Group like natural catastrophes
(such floods, fires, hurricanes, extreme precipitations, drought, etc). These events may
disrupt or interrupt key operations such as distribution centres, stores, transportation,
transport nodes production centres, etc.

Additionally, climate change may increase the likelihood of natural disasters that
could result in water stress, or affect its quality, and/or price. This would impact the
production of natural fibres, like cotton or linen, which depend on water resources for
their cultivation and also manufacturing wet processes that require water, thus could
affect negatively Inditex’s supply chain in terms of manufacturing disruptions and
cost increases.

Chronic Relevant, Chronic physical risks are relevant and always considered on Inditex’s Enterprise Risk
physical always Management System (ERMS).
included
The commercial performance of the Group can be subjected to the impact of weather
anomalies considering that the striking changes in the climate cycles may affect, for
instance, the patterns of demand for fashion. Episodes of weather anomalies are in‐
deed expected to be increasingly common and severe. As a consequence, this risk af‐
fects more frequently the fashion industry, and so Inditex, that is seasonal by nature.
Inditex has a flexible business model to adapt to changes occurring within each sea‐
son, reacting swiftly to deliver the product our customers demanded to our stores in

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Relevance Please explain

& inclusion  WD

the shortest time possible.

Inditex is exposed to the increase in the price of raw materials, either as a result of
market movements, or the need to use alternative raw materials with higher prices.
Changes in weather patterns due to climate change can affect the production of natur‐
al fibres due to water stress, lower yields, flooding, drought, desertification, competi‐
tion with other agricultural commodities, etc.

C2.3

(C2.3) Have you identified any inherent climate-related risks with the potential to have a
substantive financial or strategic impact on your business?
Yes

C2.3a

(C2.3a) Provide details of risks identified with the potential to have a substantive financial or
strategic impact on your business.

Identifier
Risk 4

Where in the value chain does the risk driver occur?

Direct operations

Risk type & Primary climate-related risk driver

Emerging regulation Carbon pricing mechanisms

Primary potential financial impact

Increased direct costs

Climate risk type mapped to traditional financial services industry risk classification
<Not Applicable>

Company-specific description
Carbon pricing is a fundamental mechanism through which governments can incentivise
the transition to a decarbonized economy.

As we are present in more than 200 markets

ets across five continents and we work with
1,790 suppliers and 8,756 factories, we have assessed how carbon pricing may impact our
business.

We have assumed that Inditex’s total emissions footprint (scope 1, 2 and 3) within each of
its operating countries is subject to the carbon price of that jurisdiction. The financial im‐
pact is felt through increasing costs of production, distribution and raw material procure‐
ment.
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We have projected the increase in carbon pricing by country based on various published
 WD

sources (for example, the UN PRI's Inevitable Policy Response project forecasts a 35-75
€/tCO2 price by 2030 for first movers).

For instance, under a 2ºC emission pathway, from 2020 to 2025, some projected changes
in carbon princing will be around 65-75 €//Mt CO2e in certain countries such as the US,
China or Turkey, while others jurisdictions such as France, Mexico, India or Australia, our
projections shows a change around 45-55€ /Mt CO2e.

Time horizon
Short-term

Likelihood
Very likely

Magnitude of impact
Medium-high

Are you able to provide a potential financial impact figure?

Yes, an estimated range

Potential financial impact figure (currency)

<Not Applicable>

Potential financial impact figure – minimum (currency)

1000000

Potential financial impact figure – maximum (currency)

520000000

Explanation of financial impact figure

The financial impacts of emerging regulations such as carbon pricing are modeled using a
scenario analysis model based on five IPCC emission pathways: >4°C, 3°C, 2.5°C, 2°C,
1.5°C.

To quantify the potential impacts of these scenarios, a financial representation (or digital
twin) of the Group was created. The digital twin is a representation of the Group’s busi‐
ness, including its financial statements, key facilities, its value chain, including raw mate‐
rials, a breakdown of the business by market and the GHG emissions. The model captures
the geographic presence of our value chain (origins of raw materials, factories, distribu‐
tion centres, transport hubs, etc.), our commercial presence and our carbon footprint in re‐
spect of scopes 1, 2 & 3. The model allows a short-term quantification, over a five-year
time frame, and also provides a 20-year outlook.

The results show the potential losses in future ‘at risk’ cash flows. Earning Value at Risk,
discounted to obtain its present value, allows to quantify the total financial impact of
each scenario. The impacts are assessed from the standpoint of the physical and transi‐
tion risks facing the Group. Each risk is modelled independently, assuming there are no in‐
terdependencies or trade-offs between them.
The global average carbon price projections in each of the emissions scenarios are bench‐
marked against various published sources (for example, the UN PRI's Inevitable Policy

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Response project forecasts a 35-75€/tCO2 price by 2030 for first movers). Country-level
carbon price projections are defined according to their categorisation into leaders, WD
 follow‐

ers, and laggards, to produce the global total.

In our models, all global emissions are subject to a carbon price. In order to significantly
increase the global average price, we assume all sectors must be covered and there is
minimal carbon leakage. We apply all increases in cost associated with carbon pricing
mechanisms through routine costs, namely to overheads, distribution, and raw material
costs.
It is assumed Inditex experiences no financial benefit resulting from carbon price rev‐
enues. Most global revenues are allocated to general government budgets
ets or are ear‐
marked for green spending, the economic benefits of which are not modelled. We assume
no revenues are used for corporate tax exemptions.

Depending on the emission pathways average global carbon prices differ (based on our
groups global presence) ranging from a maximum of 65-75€ /Mt CO₂e to 2.425€/ Mt CO₂e.

Cost of response to risk

15351390

Description of response and explanation of cost calculation

The cost of response to this risk, i.e., 15.3 m€, is the investment in energy eco-efficiency
projects and renewable energies on our stores, office buildings, logistic centers and HQ,
and renewable energy consumption. The figure includes investments in development and
maintenance of eco-efficient technologies such as Inergy (the Group central platform to
supervise and optimize energy consumption in our stores), all investments made for the
construction and equipment of eco-efficient stores and other buildings with control pan‐
els, probes and lighting equipment, as well as renewable energy consumed (44 markets).
ets

Companies, like Inditex, may pay a price for the carbon they emit across their entire value
chain. An organisation's total emissions footprint within each of its operating countries is
subject to the carbon price of that jurisdiction. This includes scope 1 (direct emissions
from company-owned sources), scope 2 (indirect emissions from the consumption of pur‐
chased electricity, heat or steam), and scope 3 (other indirect emissions from upstream or
downstream sources).

In this sense, we are implementing actions to reduce GHG emissions through increasing
efficiency in energy and resource use and a strong drive for the use of renewable ener‐
gies.

Thanks to the measures deployed across the Group’s owned stores such as more efficient
lighting and HVAC systems, and the connection of our stores to Inergy, the Group has suc‐
ceeded to consume 1,503,739 MWh of electricity in our own stores in 2021, compared
with 1,632,248 MWh in 2019 (the comparison with 2020 is not meaningful because of the
impact of covid-19).

The efficiency gains together with the push for renewable energy has also allowed us to
reduce an 86% our total scope 1 and 2 GHG emissions (2021 vs. 2018). In 2021, our ener‐
gy needs covered by renewable energy already account for 91%, advancing towards our
commitment to 100% by 2022.

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These actions are a response to this risk and are in line with:  WD

(a) our approach to decarbonisation and energy management with our decarbonisation
targets,
ets which were approved by the Science-Based Targets
ets initiative (SBTi) in 2020 and
recognised as ‘ambitious’,
(b) our commitment to renewable energies and the optimisation and improvement of our
energy consumption
(c) our shared goals with external initiatives with whom we share best practices and ambi‐
tious goals (Fashion Pact, Sustainable Apparel Coalition (SAC), CDP, MIT Climate and
Sustainability Consortium (MCSC).

Comment
As stated in the explanation of the financial impact figure, the model captures the geo‐
graphic presence of our value chain, our commercial presence and our carbon footprint in
respect of scopes 1, 2 and 3. Hence, the reported potential financial impact figure in‐
cludes our supply chain as well. The consumption of energy is a critical component of the
fashion distribution business, and the efficient and low-impact use of energy is essential
for an approach to sustainability. At Inditex, we strongly support energy efficiency and the
use of certified energy from renewable sources as a way to mitigate this risk. Hence, our
commitment to actively contribute to the protection of the environment by reducing our
environmental impact and making changes that help our planet to remain under the global
warming limit established in the Paris Climate Agreement.

The Global Energy Strategy, which forms part of our sustainable approach for all our activ‐
ities, indicates the main objectives in this area, among which are:
(i) reduce energy consumption and apply low carbon technologies in our own stores, of‐
fices and logistics centres, and
(ii) promote energy efficiency in our supply chain. Also, we promote the rational and effi‐
cient use of energy throughout our value chain.

Identifier
Risk 5

Where in the value chain does the risk driver occur?

Upstream

Risk type & Primary climate-related risk driver

Chronic physical Other, please specify (Raw material supply risk)

Primary potential financial impact

Increased direct costs

Climate risk type mapped to traditional financial services industry risk classification
<Not Applicable>

Company-specific description
Chronic changes in average climatic conditions and an increased incidence and severity
of extreme events will make production of certain crops in some global regions unviable
in the coming decades, or reduce yield efficiency, thus affecting Inditex’s supply chain of
raw materials.

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The impact of this risk will affect Inditex products which are made of natural fibers and
man-made fibers (i.e., fibres made using natural components as a raw materials that
 WD
un‐ 
dergoes a number of processes in a chemical plant or a laboratory such as viscoses). In
2021, 55% of the fibers used by Inditex were made from natural sources and 9% were man-
made.

Inditex may also be affected by secondary impacts that can include increases in and more
volatile costs of the agricultural commodities associated with reduced supplies.
Production unviability in certain locations has potential to create stranded production as‐
sets.
ets

Focus is made on how climate change will affect the frequency and severity of yield-im‐
pacting events for key vulnerable crops, namely cotton.

Time horizon
Short-term

Likelihood
Likely

Magnitude of impact
Low

Are you able to provide a potential financial impact figure?

Yes, an estimated range

Potential financial impact figure (currency)

<Not Applicable>

Potential financial impact figure – minimum (currency)

500000

Potential financial impact figure – maximum (currency)

1000000

Explanation of financial impact figure

The financial impact is based on the quantification of the yield reduction of cotton associ‐
ated with extreme temperatures and drought events.

Expected loss is calculated to indicate the average (probability weighted) financial losses
in a given year associated with these extreme events, and how this expected loss will
change as a result of climate change. The result is revenue loss aggregated to global
product revenues.

We have reviewed agricultural risk literature to assess model/indices options (e.g., Water
resource stress index, SPI precipitation deficit index, FAO agricultural stress index). A
crop-specific precipitation deficit index was chosen that gives a simplified model of crop
yield reduction with extreme temperatures and precipitation. This method is replicable
across different commodities.

Crop vulnerability functions are parameterised from the scientific literature, including the
FAO Crop Ecological Requirements Database (ECOCROP). This defines the optimal and

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absolute growing conditions (temperature and precipitation deficit) for each crop type.
 WD

Financial impacts are derived by translating yield reduction into product-specific revenue
impacts. Commodity unavailability results in a reduction of revenues.

Hazard types are modelled independently, assuming no correlation between events.

These results consider 5 IPCC emission pathways (>4°C, 3°C, 2.5°C, 2°C, 1.5ºC). There is
virtually no difference in impacts in the short a medium term, as the change in emission
pathways take time to affect the climate. Difference can start to be seen in the long-term.

Cost of response to risk

9657215

Description of response and explanation of cost calculation

To mitigate this risk, at Inditex we have laid out a proactive strategy of a sustainable
transformation in which the commitment to sustainable raw materials is paramount. We
are fostering the use of materials obtained from more sustainable sources and promoting
the use of the best available techniques regarding minimum energy and water consump‐
tion. In this sense, the cost of response to this risk, i.e around 9.6 m€, are the investments
related to the projects we have had in place during FY2021 to use more sustainable pro‐
cesses and raw materials under our Join Life label. More concretely, it has been taken into
account our investment in our Green to Wear standard, programmes to increase the offer
of sustainable raw materials, investigation around microfibers and other circularity pro‐
grams.

The complexity of the global challenges we face require an increasingly prominent pres‐
ence of innovation, science and technology in our actions. For instance, through our col‐
laborative platform, the Sustainability Innovation Hub, Zara teamed with the start-up
LanzaTech to launch a capsule collection of party dresses made with fabric from captured
CO2 emissions.

We are committed to ensuring that 100% of the cotton used in our products will come
from more sustainable sources by 2023.
Also, in 2023, 100% of the man-made cellulose fibres we use will come from more sustain‐
able sources, supporting the responsible viscose commitment by the Changing Markets
ets
organisation.
Lastly, by 2025 100% of the polyester and linen will come from more sustainable sources.

In addition, we are working on improving the management of our supply chain: through
our Join Life label, we strive to curb our impact and constantly promote the level of de‐
mand for sustainability criteria in our garments. Join Life is based on recognised stan‐
dards of raw materials, production and traceability, complemented by audits that guaran‐
tee a high level of performance from both a social and environmental point of view. All
Join Life articles use raw materials and production processes that reduce environmental
impact. In this line, in 2021, we reached 47% of articles placed on the market under the
Join Life label. Also, through our Green to Wear standard we encourages sustainable envi‐
ronmental behaviour in our supply chain:
- We promote best practices in manufacturing

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- We encourage efficiency of resources

- We promote the reduction and the correct management of waste  WD

Comment
The choice of materials is key to the design process and allows to align this phase of the
value chain with the sustainability principles. Through the responsible and sustainable
management of natural resources, we have, this year, increased the use of sustainable
raw materials such as organic cotton or recycled polyester. In this line, we are firmly com‐
mitted to keeping using more sustainable fibres that use less water or crops that are non-
genetically modified.

In 2021, the consumption of raw materials from more sustainable sources represents 42%
of the total consumption thanks to Inditex’s efforts in this field.

Indeed, according to Textile Exchange we have been ranked in 2021 as the 1st world
largest consumer of organic cotton in volume and 3rd world largest consumer of recycled
cotton in volume (source: Textile Exchange 2021).

One of the Group’s most noteworthy initiatives when it comes to innovation in sustainabil‐
ity is the Sustainability Innovation Hub. We have created this platform for innovation
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 prod‐
ucts and help us to advance towards more sustainable and circular solutions.

On the other hand, we are committed to the integral improvement in the management of
the material needs of our products and industrial processes to transform the concept of
waste since we consider waste as a valuable resource that can be recovered and reintro‐
duced as raw material into production systems. This idea of Circular Economy is made
clear at our company through the various global initiatives to close the life cycle of our
garments and the materials used in our activity.

Identifier
Risk 6

Where in the value chain does the risk driver occur?

Direct operations

Risk type & Primary climate-related risk driver

Acute physical Other, please specify (Key facility disruption)

Primary potential financial impact

Increased direct costs

Climate risk type mapped to traditional financial services industry risk classification
<Not Applicable>

Company-specific description
Due to our global value chain footprint, we are exposed to extreme weather events that
can reduce the productivity of business activities and add costs to operations and pro‐
cesses. Events with contrasting characteristics impact businesses in various ways.
Typically, storms and floods are destructive and cause significant physical capital losses,
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while extreme temperature waves disrupt productivity.

 WD

Inditex already experiences impacts and financial losses from extreme weather events
around the world. This analysis quantifies the change in expected (i.e. probability weight‐
ed) physical impacts to Inditex's key facilities.

These operational disruptions that may occur throughout our value chain result in the
loss of productive output, either if the means of production directly disrupted, for example
through transportation and supply chain interruption, energy and utility outages, or pro‐
ductivity is reduced in the workspace.

Time horizon
Short-term

Likelihood
Very likely

Magnitude of impact
Medium-high

Are you able to provide a potential financial impact figure?

Yes, an estimated range

Potential financial impact figure (currency)

<Not Applicable>

Potential financial impact figure – minimum (currency)

1000000

Potential financial impact figure – maximum (currency)

279000000

Explanation of financial impact figure

The financial impact considers 5 different acute hazards; Windstorms, Floods (coastal,
rivel, flash), Drought/water stress, Freeze, Heat wave). We geolocate all assets
ets in our val‐
ue chain (around 14,000 locations globally). We consider that production disruption is
translated into revenue loss according to the function and product/service output of a giv‐
en facility.

This model quantifies the aggregated risk of multiple extreme weather threat types.
Expected loss is a useful metric to indicate average losses from all weather types, or the
amount Inditex can expect to lose, on average, given the set of possible events.
Characteristic scenarios are defined for each threat, representing small, medium, and
large magnitude events, termed Local Impact Severity (LIS) events.

Each facility is assigned a Threat Assessment Grade (TAG) for each threat type. This de‐
termines how likely that location is to experience a threat event, in terms of the annual
probability of the event in a given year. Facilities are also assigned vulnerability functions
to determine the severity of an initial shock and the rate of recovery from an event.

Vulnerability functions are parameterised from an evidence base of case studies, and are
assumed to be the same for all production locations.

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The vulnerability of a facility to an event determines how severe an initial shock would
 WD
be 
in terms of lost capacity (Initial Lost Capacity, ILC), duration of initial severity (DIS) and
the rate of recovery (R) to 100% capacity. Vulnerability differs between hazard types and
for different event magnitudes (Local Impact Severity, LIS events) from moderate to ex‐
treme.

These results consider 5 IPCC emission pathways (>4°C, 3°C, 2.5°C, 2°C, 1.5ºC). There is
virtually no difference in impacts in the short and medium term, as the change in emission
pathways take time to affect the climate. Difference can start to be seen in the long-term.

Cost of response to risk

7800000

Description of response and explanation of cost calculation

Inditex is present in more than 200 markets
ets across five continents, through our stores
(more than 6,400 worldwide) and our online channels.

We work to ensure that sustainability is a fundamental aspect of the future development

of our Group, tackling the climate-related challenges and maximizing the climate-related
opportunities.

Over time, we have developed a unique business model, characterized by its flexibility, in‐
tegration, sustainability, creativity and innovation, which enables to better cope with acute
physical risks and adapt to any disruption on any key facility that can arise from them.

As an example, in order to cope with extreme weather events such as floods, we have de‐
veloped contingency plans and we have invested in the architecture and design of our fa‐
cilities to reduce the consequences of a disruption. For instance, the logistics connection
hub in Lelystad (The Netherlands) is equipped with the latest architecture as underwater
prevention systems, among others.

The Group also allocates resources to insurance premium. The cost of response, i.e. 7.8
m€, is the insurance premium cost for property damage and business interruption that
could be caused by acute physical risks. The premium covers all Group direct operations
locations.

Comment
Given the type of risk it is described in this cell, the reported financial impact figure in‐
cludes our value chain operations as well.

Most of the facilities are linked to the supply chain and our sales network. Technical con‐
tingency systems are in place that would reduce the consequences of a disruption or
standstill. In addition, there are continuous review systems which, along with the insur‐
ance policies, would cover loss of profit and resulting expenses. In the specific case of lo‐
gistics centres, these are configured so as to be able to take on storage and distribution
capacity for other centres in the event of a contingency caused by extreme weather
events.

Adequate emergency preparedness and response enables an organisation to minimise po‐

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tential damage and related consequences. We work with our suppliers and manufacturers
WD
to strengthen and maintain the necessary provisions for emergency prevention, prepared‐


ness and response through a number of initiatives, such as improving their emergency
plans or training workers in evacuation and first aid.

Projects implemented in 2021:

- Structural, fire prevention and electrical safety using advanced diagnostics (India and
Pakistan)
- Training programme for emergency preparedness (Turkey)
- Training, assessment and improved response to emergencies, electrical and fire risks
(Pakistan)

Throughout this year, from Inditex we have promoted the signature of the International
Accord for Health and Safety in the Textile and Garment Industry, known as the
International Accord, which took place on 1 September 2021. This new agreement, signed
individually by brands in the sector and by IndustriALL Global Union and UNI Global Union,
is based on the 2013 Accord on Fire and Building Safety in Bangladesh and the 2018
Accord on Fire and Building Safety in Bangladesh, which we also promoted.

C2.4

(C2.4) Have you identified any climate-related opportunities with the potential to have a
substantive financial or strategic impact on your business?
Yes

C2.4a

(C2.4a) Provide details of opportunities identified with the potential to have a substantive
financial or strategic impact on your business.

Identifier
Opp1

Where in the value chain does the opportunity occur?

Direct operations

Opportunity type
Products and services

Primary climate-related opportunity driver

Other, please specify (Resilience)

Primary potential financial impact

Reduced direct costs

Company-specific description

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By expecting a significant growth of environmental regulation and its impact on our oper‐
WD
ations and the income statement, Inditex has anticipated a new regulation with repercus‐


sions on most companies that manufacture or import non-reusable plastic containers that
are going to be used in the Spanish market, our biggest one.

This new regulation is the Directive (EU) 2019/904, of 5 June 2019, on the reduction of the
impact of certain plastic products on the environment, which aims to reduce the use of
non-reusable plastic containers as well as increase the use of plastic packaging with recy‐
cled content through a fiscal measure, a "green tax". The proposed price of the tax is 0.45
euros/kg of plastic used in the Spanish market.

By having anticipated this risk, we have been able to transform it into an opportunity as
we are progressing in the resilience of our business, by avoiding the impact of taxation,
offering products to our clients with lower environmental impacts and reducing the GHG
emissions related to the manufacturing, transportation and disposal of the packaging ma‐
terials subject to taxation.

In order to keep harmonized our operations, the measures taken in this regard to reduce
unnecessary plastic and increasing the recycled content of plastic will be implemented
across our full portfolio of products, disregarding the country where they are commercial‐
ized. Therefore, the benefits arising from this opportunity will have a global scale affect‐
ing to all products, Inditex brands and the 200 markets
ets where we commercialized our
products.

Moreover, the response to this opportunity will help us advance towards our objective to
eliminate single-use plastics to customers by 2023 and the objective to ensure that all
packaging materials used in our activity can be reused or recycled, and to reduce a 50%
the use of virgin plastics in our packaging by 2025 compared to 2019.

Time horizon
Short-term

Likelihood
Very likely

Magnitude of impact
Medium-low

Are you able to provide a potential financial impact figure?

Yes, an estimated range

Potential financial impact figure (currency)

<Not Applicable>

Potential financial impact figure – minimum (currency)

2792731

Potential financial impact figure – maximum (currency)

3086703

Explanation of financial impact figure

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In order to implement the European Directive, 2019/904, of 5 June 2019, on the reduction
 of WD
of the impact of certain plastic products on the environment, the Spanish Ministry 
Ecological Transition (MITECO) has proposed its development through a fiscal measure, a
"green tax" to reduce such non-reusable plastic packaging. The proposed price of the tax
is 0.45 euros/kg.

We have made a preliminary assessment of the potential impact of this forthcoming

“green tax” in our business, taking into account the plastic packaging used to commercial‐
ize our products in Spain.

We have reported to the Ellen MacArthur Foundation that 45,366,000 kg of plastics were
accompanying our products worldwide during 2021. This figure already excludes the plas‐
tics made of recycled content.

Since our sales in Spain account for the 14.4% of our global sales, we apply the 14.4% to
the previous kilograms of plastic,to obtain the plastics subject to taxation.

To the resulting figure, we have applied a 5% variation as we are in the process of a peri‐
odic review of our packaging elements that we are used in shipping and distribution oper‐
ations, or that accompany our products.

Therefore, the calculation is:

Minimum range = (0.45*45,366,000*0.144) – ((0.45*45,366,000*0.144) *0.05)

Maximum range = (0.45*45,366,000*0.144) + ((0.45*45,366,000*0.144) *0.05)

In this analysis, we have deducted the amount of non-taxable plastics, which are the ones
that are made of recycled content and the non-single-use ones. To the remaining taxable
plastic, we applied the 0.45 euros/kg tax.

Cost to realize opportunity

367411

Strategy to realize opportunity and explanation of cost calculation

(i) Case study:

1) Situation: As a result of the new regulation Directive (EU) 2019/904, of 5 June 2019, on
the reduction of the impact of certain plastic products on the environment, a reduction of
the use of plastic elements and an increase in the % of recycled content was needed.
2) Task: complying with this new regulation as an initial step, further adapting the busi‐
ness activity to reduce the economic impact of the proposed tax and generate business
opportunities such as reducing GHG emission, lower environmental impact or increase a
more sustainable portfolio of materials.
3) & 4) Actions and results:
In this sense, we have established short-term targets
ets to drive packaging innovations and
developed the necessary programs to achieve our goals. At present, the following targets
ets
have been announced:
- Eliminate plastic from the bags to our customers in our stores and online orders by 2020
- Eliminate single-use plastics for customers by 2023
- Reduce a 50% the use of virgin plastics in our packaging by 2025

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- Our goal is to ensure that 100% of packaging is reused or recycled in the supply chain
 WD

Some results that have been already achieved are:
1. Elimination of plastic bags in stores and online orders in 2020. Replaced by paper bags
in all brands and markets.
ets
2. In 2021, we started to charge paper bags to customer to drive behavioral change, pro‐
mote resource use reduction and funding environmental projects.
3. We started an R&Di project with 15 fashion companies to find more sustainable solu‐
tions for logistics.
4. We joined The Fashion Pact’s Oceans Pillar initiative
5. All Group’s brands are part of our Green to Pack (GtP) programme which is currently op‐
erating in Albania, Bulgaria, Bangladesh, Cambodia, Mainland China, Egypt, India,
Morocco, Myanmar, Pakistan, Portugal, Serbia, Tunisia, Turkey and Vietnam. More than
21.8 million GtP boxes were acquired in 2021.

(ii) The cost to realize this opportunity, i.e. 367,411 €, is the investment we have made this
year on some initiatives regarding circularity and collaborations the Group takes part in to
address common challenges of the industry (The Fashion Pact, Ellen MacArthur
Foundation, etc.).

Comment
At Inditex, we conduct several actions that help us maximize this opportunity. Our Green
to Pack programme setsets the quality standards of our packaging, enabling the use of recy‐
cled materials, the extension of its useful life and subsequent recycling. This helps to re‐
duce consumption of resources and to optimise transport. Zara eliminated 100% of plas‐
tic bags in its stores already back in 2019. In 2020 we transitioned from plastic bags to
paper bags in stores and eliminated plastic from online orders. In order to promote further
resource efficiency, in 2021 we began to charge for those paper bags in some markets,ets
further allocating the equivalent amount collected to environmental initiatives.

The working plan that is currently being developed contemplates reducing the quantity of
plastics in our packaging, thereby advancing towards models of reuse and innovation to‐
gether with our suppliers to implement a nomenclature system, thereby allowing us to im‐
prove traceability and increase the quantity of recycled content of our plastic packaging.

All our efforts are in line with our company's objective to eliminate single-use plastics to
customers by 2023 and the objective to ensure that all packaging materials used in our
activity can be reused or recycled, so they can be reintroduced into the circuit. The ap‐
proach adopted regarding plastics, as well as the results obtained, are reported to the
Ellen MacArthur Foundation, following our commitment to the New Plastics Global
Economy Commitment, driven by that foundation in cooperation with United Nations
Environment.
In another step to further our ambition in this regard, we undertook with the Ellen
MacArthur Foundation (EMF) to reduce a 50% the use of virgin plastics in our packaging
by 2025 compared to 2019. This goal underpins the reuse, disposal and recycling efforts
being undertaken across the Company’s multiple teams.

Our goal is to ensure that 100% of packaging is reused or recycled in the supply chain. On
that basis, in 2021 we signed the manifesto titled The Business Call for a UN Treaty on
Plastic Pollution in order to call on governments to negotiate a global treaty to end plastic
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pollution. This being an issue that affects so many sectors, societies and ecosystems, an
international agreement is needed that presents clear goals, binding targets consisWD
ets and  ‐ 
tent measurement mechanisms to drive the transition to a circular economy for plastics
globally and at scale.

Identifier
Opp2

Where in the value chain does the opportunity occur?

Direct operations

Opportunity type
Energy source

Primary climate-related opportunity driver

Use of lower-emission sources of energy

Primary potential financial impact

Reduced direct costs

Company-specific description
This opportunity is specifically relevant and strategic to our business given that energy is
a critical component in the running of our business. We operate in more than 200 markets ets
across five continents. Our sales in 2021 were distributed as it follows: Spain (14.4%),
Europe ex-Spain (48.4%), Americas (17.5%) and Asia and rest of the world (19.7%).

By seeking to increase the use of lower emission of energy sources, we will not only
progress towards our corporate decarbonization targets
ets but we will be also able to reduce
our direct costs, for instance, as a result of seeking to reduce the consumption of the en‐
ergy that we use prior guaranteeing that it is coming from renewable sources. E.g. in
2021, our global energy consumption accounts for 1,756,210 MWh, from which
1,678,957MWh are electricity, 72,050 MWh natural gas and 5,203 MWh of other fuels.

Additionally, we will be able to cope with financial implications on a future scenario of

higher fuel and energy taxes, using a carbon price of 31.62€ and 57.87 € per metric ton of
CO2, considering the EU ETS price evolutions as a reference.

Time horizon
Medium-term

Likelihood
Likely

Magnitude of impact
Medium-low

Are you able to provide a potential financial impact figure?

Yes, an estimated range

Potential financial impact figure (currency)

<Not Applicable>

Potential financial impact figure – minimum (currency)

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1000000

Potential financial impact figure – maximum (currency)

 WD

520000000

Explanation of financial impact figure

The financial impact figures come from the assessment made in 2021 with the University
of Cambridge’s Centre for Risk Studies to explore the resilience of our value chain under
different scenarios and greenhouse gas emissions pathways.

Five emissions pathways were used and each pathway has its own socio-economic narra‐
tive based on assumptions in respect of regulatory changes, energy outlooks and techno‐
logical advances on the basis of existing data, and a probability of occurrence. For exam‐
ple, emissions pathways are aligned with the Shared Socio- economic Pathways of the
Intergovernmental Panel on Climate Change (IPCC’s SSPs). The five emissions pathways
used are:
- No policies: >4°C
- Current policies: 3°C
- Policies announced: 2.5°C
- Paris Agreement limit: 2°C
- Paris Agreement ambition: 1.5°C

The minimum potential financial impact figure arising from the study accounts for
1,000,000 € and the maximum potential financial impact figure is 520,000,00 €.

Some of the considerations of the study are:

- The global average carbon price projections in each of the emissions scenarios are
benchmarked against various published sources (for example, the UN PRI’s Inevitable
Policy Response project forecasts a $40-80/tCO2 price by 2030 for first movers)
- All increases in cost associated with carbon pricing mechanisms are applied through
routine costs, namely to overheads, distribution, and raw material costs.
- Inditex experiences no financial benefit resulting from carbon price revenues. We as‐
sume no revenues are used for corporate tax exemptions.
- It is assumed that all sectors must be covered by future carbon pricing and there is mini‐
mal carbon leakage.

Cost to realize opportunity

15351390

Strategy to realize opportunity and explanation of cost calculation

(i) Case study:
1) Situation: energy is a critical component of our fashion distribution business. At the
same time, the future scenario of higher fuel and energy taxes, and the urgent need to
fight against climate change represent a call to action.
2) Task: keep progressing in our Sustainability Roadmap to reduce the energy use and the
related GHG emissions by implementing energy efficiency measures and increase the re‐
newable energy consumption.

3) Actions & 4) Results: several actions were implemented to realize this opportunity:

- We invest in our own renewable energy generation facilities when it is technically viable,
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which has led us to have thermal solar, photovoltaic and wind energy facilities, as well as
facilities that make use of geothermal energy.  WD

Timeframe: short-term (0-5 years) and medium term (5-10 years).
Results: in 2021 we have several active plants with photovoltaic panels and a wind tur‐
bine that generated 5,920 MWh of electricity. In addition, 653 MWh of thermal energy
weregenerated by geothermal facilities and solar panels during the year.

- Since the early 90s, we have been developing our own systems for improving energy con‐
sumption and reducing GHG emissions.
Timeframe: short-term (0-5 years) and medium term (5-10 years).
Results: in 2021, we achieved a reduction of 86% in absolute terms in scope 1 and 2 emis‐
sions, compared to 2018.

- Strong commitment to renewable energies. Timeframe: short-term (0-5 years) and medi‐
um term (5-10 years). Results: With the consumption of renewable energy in our facilities
a total of 493,723 tonnes of GHG emissions have been avoided in 2021, 113% more than in
2018.

(ii) The cost to realize this opportunity is the investment in renewable energy consumed
(44 markets),
ets energy eco-efficiency projects on our stores, office buildings, logistic cen‐
ters and HQ, accounting for over 15.3m€ in 2021. This figure includes: investments in de‐
velopment and maintenance of eco-efficient technologies such as Inergy as well as all in‐
vestments made for the construction and equipment of eco-efficient stores and other
buildings with control panels and lighting equipment, among others.

Comment
In order to progress towards our decarbonisation commitments, we are implementing ac‐
tions based on reducing emissions, including increased efficiency in energy and resource
use, as well as a strong drive for the use of renewable energies.

In the long term, focusing on our goal to be net-zero emissions by 2040, we are taking a
holistic approach that includes improvements throughout our entire value chain, from our
headquarters and stores, to the design of our products and their use and end of life.

Inditex’s Global Energy Strategy constitutes one of the main pillars of our commitment to
sustainability and decarbonisation. Its purpose is to promote the rational and efficient
use of energy throughout the value chain. At the same time, we propose to reduce green‐
house gas emissions and help mitigate their effects.

Identifier
Opp3

Where in the value chain does the opportunity occur?

Direct operations

Opportunity type
Markets
ets

Primary climate-related opportunity driver

Other, please specify (Shift in consumer preferences)

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Primary potential financial impact

Increased revenues resulting from increased demand for products and services  WD

Company-specific description
Higher awareness of environmental aspects and climate change issues may cause
changes in consumer preferences.
Our consumers may look for greener products (for instance, in terms of more sustainable
raw materials and manufactured through more environmentally friendly processes), which
in turn brings the opportunity for Inditex to increase its revenues by capturing customers’
needs and offering products that meet those needs.

Product reference:
This represents a very relevant and strategic opportunity, in fact, we have committed to
achieve more than 50% of articles featuring our Join Life label by 2022. This label identi‐
fies the Group’s products that use more sustainable raw materials and more environmen‐
tally friendly manufacturing processes.

In 2021, more than 10,800 requests for information from our customers regarding the sus‐
tainability of our products and our Join Life label were handled, and all our brands have
continued working throughout 2021 on our Join Life collections.

Time horizon
Medium-term

Likelihood
Likely

Magnitude of impact
Medium-high

Are you able to provide a potential financial impact figure?

Yes, a single figure estimate

Potential financial impact figure (currency)

2773207868

Potential financial impact figure – minimum (currency)

<Not Applicable>

Potential financial impact figure – maximum (currency)

<Not Applicable>

Explanation of financial impact figure

We are aware of reputation opportunities and the need of satisfying customer needs. We
work along our value chain partners to enhance any opportunity derived from climate
change. Although it is very challenging to predict trends in customer behaviour, we have
assumed a hypothetical 10% of increase in net sales FY2021 (27,732,078,678 €) resulting
in an opportunity of 2,773,207,868 € due to appetite for more sustainable products.

Cost to realize opportunity

9657215

Strategy to realize opportunity and explanation of cost calculation

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(i) Case study:

 WD

1) Situation: there is a shift in consumer preferences towards alternative products and
services that are sustainable. This is seen as an opportunity for the Group to increase its
revenues by identifying the latest trends and create the products the consumers want and
make them available at the most suitable time and place.
2) Task: keep progressing on the targets
ets and goals established in our Sustainability
Roadmap such as achieving more than 50% of articles featuring the Join Life label; 100%
of cotton and man-made cellulosic fibres from more sustainable sources; 100% polyester
and linen from more sustainable sources; or 25% reduction of water consumption in the
supply chain.

3) Actions & 4) Results: several actions were developed to realize this opportunity:

- R&D of more sustainable raw materials and fibres through our Sustainability Innovation
Hub, our collaborative platform to boost new materials, technologies and processes. The
main objective of this platform is to identify and test innovative initiatives to enhance en‐
vironmental impacts, for the purpose of scaling them in our supply chain and across the
textile industry.
Timeframe: since at Inditex innovation represents a core pillar for the business, this initia‐
tive is not limited to a certain timeframe, but it is a clear business commitment.
Results: in 2021, we collaborated with more than 145 startups and took part in more than
30 pilot tests. Also, in 2021 Zara teamed with the start-up LanzaTech to launch a capsule
collection of party dresses made with fabric from captured CO2 emissions.

- Use of more sustainable raw materials, fibres and manufacturing processes.

Timeframe: short-term (0-5 year)
Results: in 2021 consumption of raw materials from more sustainable sources represents
42% of the total consumed (21% in 2020); we have used 41,317 tonnes of recycled materi‐
als in the products placed on the market (187% more than in 2020) and more than 47% of
our products were labelled as Join Life.

(ii) The cost to realize this opportunity is the investments made in several projects we
have had in place during 2021 to use more sustainable processes and raw materials un‐
der our Join Life label, which account for over 9.6m€. For example, it has been taken into
account our investment in our Green to Wear program, and other programs to increase the
offer of sustainable raw materials, investigation around microfibers and other circularity
programs.

Comment
At Inditex we work to offer high-quality, healthy, safe and environmentally-sustainable
products. Our designers set about making their drawings taking these considerations into
account, as well as the availability of more sustainable raw materials and the aim of max‐
imising the life cycle of our articles, prolonging their durability or facilitating their subse‐
quent recycling.
To ensure that our designers and buying and product teams master the best practices in
circularity and sustainability, we provide them with training focused primarily on sharing
with them Inditex’s vision of sustainability, inspiring them, and informing them of the vari‐
ety of available more sustainable raw materials, the most efficient and cutting-edge man‐
ufacturing processes, circular design by article type and the corporate tools we have to
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ensure, for example, the traceability of the processes, among other aspects.
 WD

At Inditex, we see circularity as a very important tool to achieve real transformation in our
industry, and we work with a number of players, from competitors to industry organisa‐
tions, to achieve this. Furthermore, we are mindful of the importance of offering our cus‐
tomers sustainable products. Raising awareness among them regarding, for example,
best practices for caring for our products, in turn drives the transformation we target.

We are aware that achieving a fully circular model is not an issue that can be tackled by
individual initiative alone; it requires a concerted effort by consumers, industry, the scien‐
tific community and governments. Collaboration is key, and at Inditex this occurs through
our involvement in various projects and initiatives both within our industry and across
multiple sectors, which add up to our individual projects. Thus, we join forces to support
the production and marketing of sustainable and circular products, encourage reuse and
promote collection and recycling.

C3. Business Strategy

C3.1

(C3.1) Does your organization’s strategy include a transition plan that aligns with a 1.5°C
world?

Row 1

Transition plan
Yes, we have a transition plan which aligns with a 1.5°C world

Publicly available transition plan

Yes

Mechanism by which feedback is collected from shareholders on your transition plan

We have a different feedback mechanism in place

Description of feedback mechanism

All the communication channels, as well as Inditex’s relations with its current or potential
shareholders, are governed by the Policy on Communications and Contact with
Shareholders, Institutional Investors and Proxy Advisers, as well as by the Regulations of
the Board of Directors.

In 2021, we handled around 800 requests from individual shareholders for information on
the Company by means of the Shareholders’ Department.

Any individual investor may contact this channel to share and/or obtain detailed informa‐
tion on the evolution of the business, Inditex’s strategy, or any other matter they consider
relevant to the future of the Group, such as the corporate transition plan.

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The Individual Shareholders’ Office takes on particular significance when the Annual WD

General Meeting, which traditionally takes place in mid-July, is called. Inditex sends out
accurate information and documentation to provide shareholders with adequate knowl‐
edge of the meeting called and the proposed content thereof, as well as to facilitate their
participation in the decision-making process of the Group’s highest governing body.

The Investor Relations staff hold quarterly, open-access conference calls to complement
this information. Moreover, Inditex makes presentations to analysts and investors over
the course of the year in the world’s leading financial capitals The CSO also participates in
those meetings, when discussion, feedback or clarification are made around the Inditex
transition plan.

Since 2019, we have a Sustainability Committee, a delegated body of the Board of

Directors, which is tasked with supervising stakeholder relations in the area of sustain‐
ability and reports to the Board of Directors. In this context, sustainability-related aspects
and concerns from our stakeholders are brought to debate and are addressed in these
meetings thus serving us as a key feedback and communication mechanism with our
stakeholders.

Lastly, in keeping with the mandate of its shareholders, Inditex is listed in benchmark in‐
dices, from the perspective of both its financial performance and best practices in sus‐
tainability matters.

Frequency of feedback collection

More frequently than annually

Attach any relevant documents which detail your transition plan (optional)
statement-of-non-financial-information-2021.pdf
Inditex_Commitments_Sustainability_.pdf

Explain why your organization does not have a transition plan that aligns with a 1.5°C
world and any plans to develop one in the future
<Not Applicable>

Explain why climate-related risks and opportunities have not influenced your strategy
<Not Applicable>

C3.2

(C3.2) Does your organization use climate-related scenario analysis to inform its strategy?

Use of climate-related Primary reason why your Explain why your organization does not use
scenario analysis to organization does not use climate- climate-related scenario analysis to inform
inform strategy related scenario analysis to inform its strategy and any plans to use it in the
its strategy future

Row Yes, qualitative and <Not Applicable> <Not Applicable>

1 quantitative

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 WD

C3.2a

(C3.2a) Provide details of your organization’s use of climate-related scenario analysis.

Climate-related Scenario Temperature Parameters, assumptions, analytical choices

scenario analysis alignment of
coverage scenario

Transition Bespoke Company- 1.5ºC i. Analytical choices:

scenarios transition wide
scenario
We have been using climate analysis for some years now. In
2021 we have gone a step further by initiating a project with the
University of Cambridge’s Centre for Risk Studies to explore the
resilience of our value chain under five different quantitative
scenarios:1. No policies; 2. Current policies; 3. Policies an‐
nounced; 4. Paris Agreement limit; 5. Paris Agreement Ambition;
and their temperature alignment pathways (>4ºC, 3ºC, 2.5ºC,
2ºC, and 1.5ºC).

Each pathway has its own socio-economic narrative based on

assumptions in respect of regulatory changes, energy outlooks
and technological advances on the basis of existing data, and a
probability of occurrence. Emissions pathways are aligned with
the Shared Socio-economic Pathways of the Intergovernmental
Panel on Climate Change (IPCC’s SSPs).

The work carried out examined transition risks especially closely

in the short (0-5 years), medium (5-10) and long (more than 10)
term. The scenario analysis was conducted for more than
14,000 facilities, belonging to both the Group and third parties,
throughout our value chain and of different types (factories, lo‐
gistics centres, offices, airports, ports, logistics hubs, stores,
etc.). The model captures the geographic presence of our value
chain (origins of raw materials, factories, distribution centres,
transport hubs, etc.), our commercial presence and our carbon
footprint in respect of scopes 1, 2 and 3. Five dimensions of
transition risks were assessed: Regulatory, Legal liability,
Technological, Market, Reputation.

ii. Parameters/Assumptions:

Inditex's 2021 portfolio and business activities are modelled, as‐

suming no climate actions are undertaken.
Each risk is modelled independently, assuming no dependency
or trade-offs between risks.
TCFD categorisation is used to define transition and physical
risk definitions and scope.
More concrete assumptions, for instance, in emerging regulatory
risks (carbon price):
- The global average carbon price projections in each of the
emissions scenarios are benchmarked against various pub‐
lished sources (e.g., the UN PRI's Inevitable Policy Response
project forecasts a $40-80/tCO2 price by 2030 for first movers).
- All increases in cost associated with carbon pricing mecha‐
nisms are applied through routine costs (overheads, distribution,
and raw material costs).
- Inditex experiences no financial benefit resulting from carbon

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Climate-related Scenario Temperature Parameters, assumptions, analytical choices

scenario analysis
coverage
alignment of
scenario
 WD

price revenues, assuming no revenues are used for corporate tax
exemptions.

Physical RCP Company- <Not i. Analytical choices:

climate 8.5 wide Applicable>
scenarios
We have been using climate analysis for some years now. In
2021 we have gone a step further by initiating a project with the
University of Cambridge’s Centre for Risk Studies to explore the
resilience of our value chain under five different quantitative
scenarios:1. No policies; 2. Current policies; 3. Policies an‐
nounced; 4. Paris Agreement limit; 5. Paris Agreement Ambition;
and their temperature alignment pathways (>4ºC, 3ºC, 2.5ºC,
2ºC, and 1.5ºC), among which is the RCP 8.5. The other RCPs
that have been used are RCP 1.9, RCP 2.6, RCP 4.5 and RCP 7.0.

The work carried out examined physical risks especially closely

in the short (0-5 years), medium (5-10) and long (more than 10)
term. The scenario analysis was conducted for a total of more
than 14,000 facilities, belonging to both the Group and third par‐
ties, throughout our value chain and of different types (factories,
logistics centres, offices, airports, ports, logistics hubs, stores,
etc.). The model captures the geographic presence of our value
chain (origins of raw materials, factories, distribution centres,
transport hubs, etc.), our commercial presence and our carbon
footprint in respect of scopes 1, 2 and 3. There were considered
8 climate phenomena: heatwave, freeze, water stress, flash
flooding, river flooding, coastal flooding, ‘extratropical’ and tropi‐
cal storms. Each threat is evaluated using a base-case scenario
and a change forecast.

ii. Parameters/Assumptions:

Inditex's 2021 portfolio and business activities are modelled, as‐

suming no climate actions are undertaken.
Each risk is modelled independently, assuming no dependency
or trade-offs between risks.
TCFD categorisation is used to define transition and physical
risk definitions and scope.
For more concrete assumptions to the physical risks:
- Market disruption risk is modelled only for heat waves. These
extreme weather events occur over entire regions and so can
disrupt large markets
ets at once, while it is assumed that the im‐
pacts of, for example, a tropical storm, are severe in the location
of impact but immaterial to Inditex at the global scale.
- The agricultural risk literature was reviewed to assess
model/indices options (e.g. Water resource stress index, SPI pre‐
cipitation deficit index, FAO agricultural stress index).
- Crop vulnerability functions are parameterised from the scien‐
tific literature, including the FAO Crop Ecological Requirements
Database (ECOCROP).

C3.2b

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(C3.2b) Provide details of the focal questions your organization seeks to address by using
WD
climate-related scenario analysis, and summarize the results with respect to these questions.


Row 1

Focal questions
Some of the focal questions that we seek to address by using climate-related scenario
analysis are, among others:

1. What is the relative impact of the various dimensions of risk (i.e. physical and transi‐
tion risks) across different greenhouse gas emissions pathways?
2. What are the biggest impacts related to climate change in the short-term (0-5 years)
across different greenhouse gas emissions pathways?
3. What are the biggest impacts related to climate change in the medium-term (5-10
years) across different greenhouse gas emissions pathways?
4. What are the biggest impacts related to climate change in the long-term (more than 10
years) across different greenhouse gas emissions pathways?

In order to better address these focal questions, we have been working with the University
of Cambridge’s Centre for Risk Studies. Through different initial workshops to define the
scope, purpose and usability of the climate analysis assessments, five emissions path‐
ways were defined to assess the potential impacts on the Group of physical and transition
risks. Each pathway has its own socio-economic narrative based on assumptions in re‐
spect of regulatory changes, energy outlooks and technological advances on the basis of
existing data, and a probability of occurrence. For example, emissions pathways are
aligned with the Shared Socio- economic Pathways of the Intergovernmental Panel on
Climate Change (IPCC’s SSPs).

For physical risks we have been using:

• Paris Agreement ambition: RCP 1.9 or 1.5ºC
• Paris Agreement limit: RCP 2.6 or 2ºC
• Stated Policy: RCP 4.5 or 2.5ºC
• Current Policy: RCP 7.0 or 3ºC
• No Policy: RCP 8.5 or >4ºC

For transition risks we have been using the IPCC shared-socioeconomic pathways (SSPs):
• SSP1: Sustainability (Taking the Green Road)
• SSP2: Middle of the Road
• SSP3: Regional Rivalry (A Rocky Road)
• SSP4: Inequality (A Road divided)
• SSP5: Fossil-fueled Development (Taking the Highway)

Results of the climate-related scenario analysis with respect to the focal questions
Results and responses to the focal questions are addressed in our 2021 Statement of
Non-Financial Information (SNFI), p.357-362.

• Q1:
Our assessment of climate related scenarios shows the total impact of climate risks in‐
creases as we move from ‘No policies’ scenario to the most stringent scenario in terms of
emissions reduction (i.e., the ‘Paris Agreement Ambition 1.5ºC).

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Relative weight between physical and transition risks under each scenario:
- No policies (>4ºC): physical risks account for 67%, transition risks for 33%  WD

- Current policies (3ºC): physical 52%, transition 48%
- Policies announced (2.5ºC): physical 39%, transition 61%
- Paris Agreement (2ºC): physical 28%, transition 72%
- Paris Ambition (1.5ºC): physical 20%, transition 80%

• Q2:
In the short term, the most significant impacts relating to climate change stem from tran‐
sition risks. In the next 5 years transition risk is likely to evolve swiftly as a result of regu‐
latory changes, energy supply and demand, etc. Transition risks vary widely depending on
the emissions pathway. The most ambitious scenarios in terms of emissions reductions
result in potentially higher risks.

In the short term (5 years), physical risks deriving from climate change hardly vary across
the five emissions pathways, hence, its impact is broadly equal in all of them. The most
vivid manifestations of physical risks will take longer to emerge.

Our SNFI states minor, moderate, high and acute risks under each scenario. Acute risks
appear only under the ‘Paris Agreement ambition’ for market and policy risks.

• Q3:
Our SNFI states minor, moderate, high and acute risks under each scenario for medium
term. Acute risks appear under:
- Policies announced: emerging policy risks (transition) appear as acute.
- Paris Agreement limit: emerging policy and market risks (both transition) appear as
acute.
- Paris Agreement ambition: emerging policy and market risks (both transition) appear as
acute.

• Q4:
Our SNFI states minor, moderate, high and acute risks under each scenario for long term.
Acute risks appear under:
- Policies announced: emerging policy risks (transition) appear as acute.
- Paris Agreement limit: emerging policy and market risks (both transition) appear as
acute.
- Paris Agreement ambition: emerging policy and market risks (both transition) appear as
acute.

Since over longer timeframes there is more uncertainty with regard to the behaviour of cli‐
mate change over physical risk, there is greater divergence between the various pathways,
and the probability of materialization of these risks increases. These findings evidence
the importance of establishing measures in our Sustainability Roadmap in the short,
medium and long term.

As an example of response to these results, our Sustainability Roadmap, which includes

the milestones and commitments set in this area, was updated in 2021 with renewed ac‐
tions and more ambitious objectives, as well as initiatives aimed at achieving our long-
term objective.

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 WD

C3.3

(C3.3) Describe where and how climate-related risks and opportunities have influenced your
strategy.

Have climate- Description of influence

related risks
and
opportunities
influenced your
strategy in this
area?

Products Yes Increasing new requirements in product labelling standards identified by the busi‐
and ness units at a regional level might result in operational and financial risks as it
services would need the implementation of new procedures to gather and trace all neces‐
sary product environmental footprint data across the entire value chains. At Inditex
we rely on response plans seeking to reduce the impact and/or likelihood of materi‐
alization of critical risks or to benefit from the opportunities derived from them.
Thus, we are constantly analysing opportunities in order to take advantage of the
good sustainability performance when mitigating climate-related risks positioning
ourselves immediately as a leading group in sustainable innovation. In regard of
product labelling, we have already indeed transformed this risk into an opportunity
since all Group's brands have undertaken important strategic initiatives related to
the articles distinguished by the Join Life label, which this year accounts for 47% of
the total products placed in the market (38% in 2020), expecting a short-term signif‐
icant increase in this figure. In line with our overall goals, at our 2021 AGM we an‐
nounced that over 50% of our garments will be labelled as Join Life by 2022. Our
Join Life label identifies the Group's products that are made from more sustainable
raw materials and more environmentally friendly production processes. At Inditex
we work to make that possible using recycled materials and materials produced in a
more sustainable way. Under our Join Life label, we classify all articles that have
been produced using processes and raw materials that help us reduce our impact,
such as organic cotton, cellulosic fibers or recycled polyester. By taking opportuni‐
ties linked to climate change, Inditex is gaining a strategic advantage by incorporat‐
ing sustainability based on all its decisions. It is ever-present in all its processes, in‐
spired by its commitment to selling ethical, safe and social and environmentally re‐
sponsible products. Our articles fulfil the standards Clear to Wear (product health),
Safe to Wear (product safety) and Green to Wear (environmental sustainability of
the product).

Supply Yes Changes in weather patterns, such as mean temperatures and precipitations, can
chain affect the production of natural fibers due to water stress, lower yields, flooding,
and/or drought, desertification, forest fires, competition with other agricultural commodi‐
value chain ties, etc. This may result in an increase in the cost of the materials consumed by
Inditex, either directly or indirectly in the acquisition of goods and/or services. We
are exposed to the increase in the price of materials, either because of market
movements, or the need to use alternative raw materials with higher prices.
Migration to sustainable raw materials could translate into cost inflation in the
short-medium terms. The markets
ets for these raw materials are incipient, lack depth
and, consequently, could be exposed to potential supply and demand shocks until
they reach a size and maturity adjusted to the needs of the industry. This becomes
a risk in the supply or in the price of raw materials. Nevertheless, fashion compa‐
nies that are successfully using more sustainable fibers and engaging with fiber
suppliers and wet processing suppliers will be better suited to create new competi‐
tive and sustainable products. Thus, Inditex has strongly got behind turning it into a
strategic opportunity by achieving a better sustainable positioning and obtaining a
more sustainable supply chain in the short-medium term. We perform numerous au‐
dits (17,477 in 2021) to our key suppliers to confirm compliance metrics, and we

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Have climate- Description of influence

related risks
and
 WD

opportunities
influenced your
strategy in this
area?
have established a business model that offers sufficient flexibility and resilience,
constantly adapting to external conditions and opportunities, that lowers the poten‐
tial impact through all our value chain. As an example, the understanding of these
risks could boost some logistic routes over others or drive purchases to less cli‐
mate risky sourcing suppliers and sites. Therefore, at our 2021 AGM, we announced
our new objective to cut by 25% water consumption in the supply chain by 2025.
This target goes hand in hand with our net-zero emissions target. Our Care for
Water programme, framed within the Green to Wear standard, fosters the use of
technologies to achieve efficient water consumption by means of the continuous
improvement of the production processes of our suppliers and investment in
technology.

Investment Yes In order to advance in the fulfilment of the goals set, during 2021 we have contin‐
in R&D ued to foster innovation in the development of new materials and technologies to
improve the sustainability of the textile fibres used, focusing both on optimising the
consumption of virgin materials and their subsequent recycling. This year we have
continued to promote various lines of collaboration, both with renowned academic
institutions, as well as with local and international organisations, in the interest of
advancing the sustainable development of the materials we use in our value chain.
In this regard, in 2021, 41,317 tonnes of recycled materials were placed on the mar‐
ket, resulting in an 187% increase over 2020.
In 2020, we launched our Sustainability Innovation Hub, an open-innovation plat‐
form based on collaborative technological monitoring to boost new technologies,
processes and more sustainable materials that improve the environmental impact
of our products. The main objective of this platform is to identify and test innova‐
tive initiatives to enhance environmental impacts, for the purpose of scaling them
in our supply chain and across the textile industry. In 2021, we collaborated with
more than 145 startups and took part in more than 30 pilot tests to improve produc‐
tion processes, aspects of recyclability and recycling, traceability and new materi‐
als, among others. In this context, in 2021 Zara teamed with the start-up LanzaTech
to launch a capsule collection of party dresses made with fabric from captured CO2
emissions.

Moreover, it was already announced at the 2019 AGM several targets

ets to boost in‐
vestment in research and development around circularity such as eliminating all
plastics to consumers by 2023, all materials used by the Group in our operations
(cardboard, plastic, paper…) will also be completely recycled (Green to Pack) by
2023, all garments made of man-made cellulosic fibres will be 100% from more sus‐
tainable sources by 2023 and by 2025 all polyester and linen will be 100% from
more sustainable sources. At our 2021 AGM, our ambition towards cotton was in‐
creased, so all of the cotton that Inditex uses will be from more sustainable sources
by 2023 (two years ahead of schedule). These targets
ets are necessary to move ahead
with our SBTs validated by the SBTi and our net-zero target by 2040.

Operations Yes Changes in mean temperatures can affect our direct operations by imposing a risk
on increasing direct costs. Energy is a critical component of the fashion retailing
business, and its efficiency and low impact use is core to Inditex’s approach to
Sustainability. Inditex is conscious of the inherent value and scarcity of energy re‐
sources and the need to have access to the right energy mix in order to guarantee
supply. Therefore, the company works through its Global Energy Strategy to in‐
crease energy efficiency and reduce GHG emissions throughout the value chain. As
an example, the general increase in temperatures will affect a considerable part of
our stores worldwide. According to certain climate scenarios studied, the energy
needs in relation to the cooling of our stores will increase thus increasing the asso‐
ciated energy costs.

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Have climate- Description of influence

related risks
and
 WD

opportunities
influenced your
strategy in this
area?
The energy efficiency measures implemented in our own stores have enabled us to
achieve significant electrical savings, especially in air conditioning systems, given
that these can achieve at least 20% better performance and energy efficiency com‐
pared to conventional equipment. For instance, in our stores we count with our cen‐
tralized consumption management platform, Inergy, to ensure optimization of ener‐
gy consumption and therefore greater efficiency in energy use as well as a reduc‐
tion of the environmental impact. In 2021, 66% of our own stores were connected to
this platform and we are currently focusing our efforts on increasing this number.
All these actions to promote energy efficiency, together with the materialization of
our commitment to renewable energies (91% of global electricity consumption is al‐
ready of renewable sources in all our own facilities in 2021) will allow us to reduce
the GHG emissions associated with our activity in line with our objectives validated
by the SBTi initiative. As a result of the progress made in energy efficiency and the
use of renewable energies, in 2021 we achieved reduction of 86% both in absolute
terms and per m2 in Scope 1 and 2 emissions compared to 2018.

At our 2021 AGM, we announced more stringent targets

ets around our decarbonization
strategy: net-zero emissions target ten years ahead of the previous target of 2050,
all electricity in our direct operations will come from renewable sources by 2022 or
cut by 25% the water consumed in the supply chain by 2025.

C3.4

(C3.4) Describe where and how climate-related risks and opportunities have influenced your
financial planning.

Financial Description of influence

planning
elements that
have been
influenced

Row Revenues During fiscal year 2019, Inditex created a cross-functional Task Force on Climate-Related
1 Direct costs Financial Disclosures (TCFD) working group (i.e.,‘TCFD VISION group’) to analyse, manage
Indirect costs and adapt our climate-related disclosure and management framework to the TCFD recom‐
Capital mendations. In 2020, Inditex formally committed to the TCFD and we published our first
expenditures TCFD chapter in our annual report to provide more insights following the TCFD recommen‐
Assets
ets dations. In 2021, we continued to work to further our alignment with the recommendations
of the TCFD and a comprehensive overview on governance, strategy, risks and metrics is
provided in pages 352 to 369 of our Statement on Non-Financial Information.
Inditex financial planning has been significantly influenced by climate related risks and op‐
portunities on different elements. The Company performance is exposed to the potential fi‐
nancial impact of climate change in its different manifestations of physical risks (chronic
or acute), or transitional - policy, legal, technological, reputation and market. Building on
the work carried our in previous years, in 2021 we went a step further by initiating a project
with the University of Cambridge’s Centre for Risk Studies to further explore the resilience
of our value chain under different scenarios and greenhouse gas emissions pathways, ex‐
amining physical and transition risks especially closely.

Inditex is firmly committed to the highest standards of sustainability and climate change,
the reason why the Group has set ambitious emissions reduction targets
ets approved by the
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Financial Description of influence

planning
elements that
 WD

have been
influenced
Science-Based Target Initiative (SBTi). The goal is to reduce our Scope 1 and 2 emissions
by 90% for the period 2018-2030 and by 20% for emissions from procurement of goods and
services (Scope 3), with the ultimate aim of achieving net-zero emissions by 2040. The
Group's positioning and definition of long-term milestones are enabling us to leverage the
opportunities associated with a transition to a zero-emission economy, thereby mitigating
our exposure to physical risks and using resource efficiency, renewable energy, energy effi‐
ciency and new product development as levers to generate value and competitive advan‐
tage. Financial impacts are modeled using a scenario analysis model based on five emis‐
sion pathways (>4°C, 3°C, 2.5°C, 2°C, 1.5°C).

Here are some examples of how climate-related risks and opportunities have influenced
our financial planning:

(i) Direct costs:

Financial implications on a future scenario of higher carbon taxes, using a carbon price ap‐
plying to scope 1, 2 and 3 emissions could result in additional future costs to be consid‐
ered into annual budgets,
ets which imply a high impact due to Inditex's business model,
which operates in over 200 markets
ets worldwide. Depending on the emission pathways, aver‐
age global carbon prices differ (based on our groups global presence) ranging from a maxi‐
mum of USD 80/Mt CO₂e to USD 2.4/ Mt CO₂e (i.e., 71.7 €/Mt CO2e – 2.15 €/Mt CO2e).
Using the maximum carbon price of USD 80/Mt CO2e and applying this to scope 1, 2 and 3
emissions, could result in additional future direct costs of approximately 1 million € to 250
million €.
Timescale: short term 0-5 years.

(ii) Capital expenditures:

We make the necessary investments in all our headquarters, platforms and stores to con‐
trol the consumption of resources, to reduce that consumption and to mitigate its impact.
For example, when building our headquarters, they are designed in accordance with biocli‐
matic criteria, encouraging the installation of photovoltaic panels, harnessing rain water
for non-drinking uses and ensuring that lighting systems are self-regulating in accordance
with external light conditions. In 2021, we highlight the new Zara.com building, with a sur‐
face area of 67,000 m2 and equipped with the latest advances in technology and sustain‐
ability.
Also, in this context, in our stores we count with our centralized consumption management
platform, Inergy, to ensure optimization of energy consumption and therefore greater effi‐
ciency in energy use as well as a reduction of the environmental impact. In 2021, 66% of
our own stores were connected to this platform and we are currently focusing our efforts
on increasing this number.
Timescale: medium-term 5-10 years.

(iii) Loss of revenue:

(a) considering our operating strategy, the disruption of the activity on our distribution cen‐
tres as a result of natural causes (fires, floods, droughts, etc) derived from climate-related
events is a significant risk as it may significantly impact our revenues. Apparel, footwear,
accessories and homeware for all the brands are distributed from our logistic centres.
Because of its relevance, efficient logistics management is needed, so we review all the
factors which might prevent the target from achieving maximum efficiency of the logistics
management. To mitigate the risk resulting from business interruption, associated with the
likelihood of occurrence of extraordinary events beyond our control, the size and use of all
centres have been optimized, based upon the size of each brand or the specific require‐
ments of the geographic area which they offer service to. The different hubs have been
planned in such a manner as to be able to assume storage and distribution capacity from
other centres in the event of any contingency resulting from potential acute physical cli‐
mate risk.
Timescale: short term 0-5 years.
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Financial Description of influence

planning
elements that
 WD

have been
influenced

(b) Active measures to reduce risk exposure are taken as well through high levels of insur‐
ance policies covering both any potential property damage incurred by the facilities and
any loss of profit that might result from any loss of stock. The interruption of activity of a
distribution centre as a result of natural causes could eventually have an estimated impact
between 1 million € and 279 million €. To mitigate these risks, the Group has a series of in‐
surance coverage plans in place.
Timescale: short term (0-5 years).

(c) The general commercial performance of the Group is subjected to the impact of weath‐
er anomalies. The striking changes in the climate cycles affect the patterns of demand for
fashion.
Milder winters and summers than normal reduce the demand for seasonal products, espe‐
cially if these anomalies coincide with the beginning of the campaigns (seasons) when the
majority of the sales tend to be at full price (March-May and September-November in the
case of the Northern Hemisphere). Episodes of weather anomalies seem to be increasingly
common and severe.
Therefore, this risk affects more frequently the fashion industry that is seasonal by nature.
So, our business model is based on a flexible supply chain that can adapt to changes in
temperatures that are in each season. These changes in temperatures would lead to differ‐
ent decisions from consumers on clothing trends and use, causing overall, changes in con‐
sumption models and therefore our financial foresight.
Timescale: medium term 5-10 years.

C3.5

(C3.5) In your organization’s financial accounting, do you identify spending/revenue that is

aligned with your organization’s transition to a 1.5°C world?
No, but we plan to in the next two years

C4. Targets
ets and performance

C4.1

(C4.1) Did you have an emissions target that was active in the reporting year?
Absolute target

C4.1a

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(C4.1a) Provide details of your absolute emissions target(s) and progress made against
those targets.
ets  WD

Target reference number
Abs 1

Year target was set

2020

Target coverage
Company-wide

Scope(s)
Scope 1
Scope 2

Scope 2 accounting method

Market-based

Scope 3 category(ies)
<Not Applicable>

Base year
2018

Base year Scope 1 emissions covered by target (metric tons CO2e)

19172

Base year Scope 2 emissions covered by target (metric tons CO2e)

419448

Base year Scope 3 emissions covered by target (metric tons CO2e)

<Not Applicable>

Total base year emissions covered by target in all selected Scopes (metric tons CO2e)
438620

Base year Scope 1 emissions covered by target as % of total base year emissions in
Scope 1
100

Base year Scope 2 emissions covered by target as % of total base year emissions in
Scope 2
100

Base year Scope 3 emissions covered by target as % of total base year emissions in
Scope 3 (in all Scope 3 categories)
<Not Applicable>

Base year emissions covered by target in all selected Scopes as % of total base year
emissions in all selected Scopes
100

Target year
2030
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Targeted reduction from base year (%)

90
 WD


Total emissions in target year covered by target in all selected Scopes (metric tons CO2e)
[auto-calculated]
43862

Scope 1 emissions in reporting year covered by target (metric tons CO2e)

14575

Scope 2 emissions in reporting year covered by target (metric tons CO2e)

47770

Scope 3 emissions in reporting year covered by target (metric tons CO2e)

<Not Applicable>

Total emissions in reporting year covered by target in all selected scopes (metric tons
CO2e)
62345

% of target achieved relative to base year [auto-calculated]

95.3178909610445

Target status in reporting year

Underway

Is this a science-based target?

Yes, and this target has been approved by the Science Based Targets
ets initiative

Target ambition
1.5°C aligned

Please explain target coverage and identify any exclusions

In August 2020, the SBTi approved our science-based decarbonisation targets.
ets We commit
to reducing absolute Scope 1 and 2 GHG emissions by 90% by 2030 from a 2018 base
year. This target exceeds the minimum ambition for the 1.5ºC pathway defined by the ab‐
solute contraction approach and is, therefore, considered ambitious by SBTi. CO2 emis‐
sions and/or removals from bioenergy are not relevant for our organization and are not in‐
cluded in this target boundary.

The scope of the indicators includes the facilities of the Inditex Group, specifically:
(i) the headquarters in Arteixo (A Coruña) and all the brands’ offices: Zara, Pull&Bear,
Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home, Uterqüe and Tempe, all of them
located in Spain;
(ii) all the Group's own factories, located in Spain;
(iii) all Group’s logistics centres, and
(iv) all the Group’s own stores.
International offices are not included within the scope. Indicators, where the scope is dif‐
ferent, are given together with the relevant data.

Please note that due to updates of the emission factors, the historical scopes 1 and 2

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data have been recalculated using the emission factors of the International Energy
Agency, 2021 (scope 2) and the DEFRA factors, 2021 (scope 1).  WD

Plan for achieving target, and progress made to the end of the reporting year
To progress towards our decarbonization commitments, we are implementing actions to
reduce emissions, including increased efficiency in energy and resource use, as well as a
strong drive for the use of renewable energies.

We have a public commitment of 100% of renewable electricity consumption in all our

own facilities (headquarters, logistics centres, factories and stores) by 2022 (previously
80% by 2025). To do so we are working on a hybrid approach:
- Auto consumption (photovoltaic and/or wind installation in our offices, distribution cen‐
tres and stores)
- Acquisition of RECs

In 2021 we have made progress in this goal and already the Group’s energy needs covered
by renewable energy account for 91%, compared with 81% in the previous year, 63% in
2019 and 45% in 2018. This represents a total of 1,593,547 MWh of renewable energy con‐
sumed, thus avoiding 493,723 tonnes of GHG emissions.

Energy efficiency is another pillar of our Global Energy Strategy. To achieve this goal, we
put in place different projects to help make our facilities spaces in which sustainability is
fully integrated, both in the design, and the day-to-day running. Some examples of emis‐
sion reduction initiatives which have contributed most to any progress towards the target
to the end of the reporting year are:
- Investments in HQs and platforms in compliance with our Instruction for Proper
Environmental Management
- HQs designed and constructed based on bioclimatic criteria
- Certifications by the US Green Building Council in our HQs and distribution centres (12
LEED certifications), as well as in our flagship stores (9 LEED Platinum certifications, 27
LEED Gold certifications and 1 BREEAM certification)
- 66% of our own stores were connected to Inergy (i.e., our central platform, which super‐
vises and optimises energy consumption
- Inditex’s Data Processing Centre (Spain) certified to the international ISO 50001
Standard
- Active plants with photovoltaic panels, wind turbines, solar panels, co-generation plants
and geothermal facilities in own operations for electricity and thermal energy generation

As a result of these initiatives, in 2021, our energy consumption was 1,756,210 MWh in ab‐
solute terms and 225 kWh/m2. Both represent a decrease of 14% in energy consumption
compared to 2018.
We are also participating in initiatives regarding thermal energy (biomethane) and starting
to explore solutions for the remaining fuels used in our scope 1.

List the emissions reduction initiatives which contributed most to achieving this target
<Not Applicable>

Target reference number

Abs 2

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Year target was set

2020  WD

Target coverage
Company-wide

Scope(s)
Scope 3

Scope 2 accounting method

<Not Applicable>

Scope 3 category(ies)
Category 1: Purchased goods and services

Base year
2018

Base year Scope 1 emissions covered by target (metric tons CO2e)

<Not Applicable>

Base year Scope 2 emissions covered by target (metric tons CO2e)

<Not Applicable>

Base year Scope 3 emissions covered by target (metric tons CO2e)

11001868

Total base year emissions covered by target in all selected Scopes (metric tons CO2e)
11001868

Base year Scope 1 emissions covered by target as % of total base year emissions in
Scope 1
<Not Applicable>

Base year Scope 2 emissions covered by target as % of total base year emissions in
Scope 2
<Not Applicable>

Base year Scope 3 emissions covered by target as % of total base year emissions in
Scope 3 (in all Scope 3 categories)
60

Base year emissions covered by target in all selected Scopes as % of total base year
emissions in all selected Scopes
60

Target year
2030

Targeted reduction from base year (%)

20

Total emissions in target year covered by target in all selected Scopes (metric tons CO2e)
[auto-calculated]
8801494.4
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Scope 1 emissions in reporting year covered by target (metric tons CO2e)

<Not Applicable>
 WD


Scope 2 emissions in reporting year covered by target (metric tons CO2e)

<Not Applicable>

Scope 3 emissions in reporting year covered by target (metric tons CO2e)

10498841

Total emissions in reporting year covered by target in all selected scopes (metric tons
CO2e)
10498841

% of target achieved relative to base year [auto-calculated]

22.8609814260633

Target status in reporting year

Underway

Is this a science-based target?

Yes, and this target has been approved by the Science Based Targets
ets initiative

Target ambition
2°C aligned

Please explain target coverage and identify any exclusions

In August 2020, the SBTi approved our science-based decarbonisation targets.
ets Inditex
commits to reducing absolute Scope 3 GHG emissions (in the Purchased Goods and
Services category) by 20% by 2030 from a 2018 base year. This target exceeds the mini‐
mum ambition defined by the absolute contraction approach and is therefore also consid‐
ered ambitious by the SBTi.

With a view to greater transparency, the Purchased goods and services category (accord‐
ing to the GHG Protocol) published in our Statement on Non-Financial Information, which
is included in our Annual Report, is subdivided into the following categories: raw materials
extraction, raw material processing, material production, wet processes and finished prod‐
uct assembly.
Please note that due to updates of the emission factors, the historical scopes 3 data has
been recalculated using the emission factors of the International Energy Agency, 2021
and the DEFRA factors, 2021.

CO2 emissions and/or removals from bioenergy are not relevant for our organization and
are not included in this target boundary.

Plan for achieving target, and progress made to the end of the reporting year
Our supply chain is key to our Global Energy Strategy, both in the processes necessary for
the manufacture of textile products, and in the extraction and processing of the raw mate‐
rials we use.

Consequently, we are working on various initiatives to meet our targets

ets in terms of emis‐
sion reduction for the purchase of our products:
- Raw materials:
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o 100% of cotton from more sustainable sources by 2023, two years ahead of the initial
target of 2025  WD

o 100% man-made cellulosic fibres from more sustainable sources by 2023
o 100% polyester from more sustainable sources by 2025
o 100% linen from more sustainable sources by 2025
- Scaling renewable energy in the fashion supply chain, through collaboration and engage‐
ment with our suppliers and manufacturers, with a focus also in efficiency.
- As part of our commitment with Fashion Charter, coal phase out: no new boilers in 2023
and elimination in 2030
- 25% reduction of water consumption in the supply chain.
- Designing more sustainable products, taking into account each item’s energy require‐
ments in manufacture and use. In 2021, 47% of Join Life articles placed on the market (in
2020, 38%), advancing towards our goal of achieving by 2022 more than 50% of Join Life
articles.
- Encouraging customers to use our products more efficiently through improved labelling.
- Promoting circularity by reusing and recycling garments and fibres. In 2021, 16,072
tonnes of garments were collected through our Closing the Loop programme and 19,048
tonnes of materials were recovered for its reuse (in 2020, 13,043 tonnes and 16,871
tonnes, respectively).
- Collaboration with other companies and organisations: in 2021, we signed the Open let‐
ter from the We Mean Business coalition to the leaders of G20 countries, etc. Also,
through our Sustainability Innovation Hub (our collaborative platform to boost new tech‐
nologies, processes and more sustainable materials) Zara teamed with the start-up
LanzaTech to launch a capsule collection of party dresses made with fabric from captured
CO2 emissions.

Aware of how rapidly environmental challenges and opportunities evolve, and. in particu‐
lar, those related to decarbonisation, we want to play an active part in the necessary
change that needs to be made in order to make progress in this area. Our reduction tar‐
gets
ets and scenarios are therefore regularly reviewed to ensure they are consistent with our
own internal ambition, the expectations of our stakeholders and the latest scientific
evidence.

List the emissions reduction initiatives which contributed most to achieving this target
<Not Applicable>

C4.2

(C4.2) Did you have any other climate-related targets

ets that were active in the reporting year?
Target(s) to increase low-carbon energy consumption or production
Net-zero target(s)

C4.2a

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(C4.2a) Provide details of your target(s) to increase low-carbon energy consumption or

production.  WD

Target reference number
Low 1

Year target was set

2019

Target coverage
Company-wide

Target type: energy carrier

Electricity

Target type: activity

Consumption

Target type: energy source

Renewable energy source(s) only

Base year
2018

Consumption or production of selected energy carrier in base year (MWh)

837626

% share of low-carbon or renewable energy in base year

44.91

Target year
2022

% share of low-carbon or renewable energy in target year

100

% share of low-carbon or renewable energy in reporting year

91

% of target achieved relative to base year [auto-calculated]

83.6630967507715

Target status in reporting year

Underway

Is this target part of an emissions target?

This target is part of the emission target Abs 1. In the emission target, we commit to re‐
duce absolute Scope 1 and 2 GHG emissions 90 % by 2030 from a 2018 base year.

Is this target part of an overarching initiative?

Science Based Targets ets initiative

Please explain target coverage and identify any exclusions

At Inditex, we are aware of the inherent value of energy resources and the need to access
suitable solutions at all times to safeguard a stable and quality supply. Energy is a core

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element in the fashion sector and its efficient use with a low environmental impact fea‐
ture in Inditex’s sustainability approach. Embedded in our Sustainability Policy, our WD
 Global

Energy Strategy is one of the cornerstones of our commitment to environmental sustain‐
ability for promoting rational and efficient use of energy throughout the entire value chain,
while at the same time reducing GHG emissions and helping to mitigate the risks associ‐
ated with climate change, for example, the availability of raw materials and price of cot‐
ton, one of the essential raw materials. Since the early 90s, we have been developing our
systems for improving energy consumption and reducing GHG emissions. Since then, our
commitment in this area has grown exponentially, as has our activity.

The generation and acquisition of energy from renewable sources is a core pillar of the ar‐
chitecture of our business model. To maintain and strengthen this commitment to the use
of clean energy, at the last Annual General Meeting, Inditex announced the commitment to
use only electricity from renewable sources in all our facilities in 2022 (previously 80% by
2025).

In 2021, 91% of our global energy consumption at our facilities (HQs, logistics centres,
factories and stores) was covered by clean energy, exceeding the 80% previously planned
for 2025. This represents a total of 1,593,547 MWh of sustainable energy consumption in
our own facilities located in 44 markets.
ets Therefore, it can be seen a steady progressing on
the achievement of this target. In 2018, 45% of our electricity came from renewable
sources; while in 2019 it was 63%; in 2020 was 81% and in 2021, 91%.

Additionally, thanks to implementing measures to improve energy efficiency, such as the

central platform Inergy which supervises and optimises energy consumption, boosts effi‐
ciency and reduces the environmental impact, electricity consumption at our own stores
amounted to 1,503,739 MWh in 2021, compared with 1,632,248 MWh in 2019 (the compari‐
son with 2020 is not meaningful because of the impact of covid-19).
In 2021, we have achieved a reduction of 86% per square meter in scope 1 & 2 compared
to 2018 and promoting energies coming from clean sources.

Plan for achieving target, and progress made to the end of the reporting year
In order to achieve our target, we are working on a hybrid approach:
- Auto consumption (photovoltaic and/ or wind installation in our offices, distribution cen‐
tres and stores)
- RECs in those markets
ets where PPAs are not possible

In 2021 we have made progress in our goal of achieving 100% of renewable energy con‐
sumption in all our own facilities by 2022 (previously 80% by 2025) and already accounts
for 91% (in 2020, 81%). This represents a total of 1,593,547 MWh of renewable energy con‐
sumed, thus avoiding 493,723 tonnes of GHG emissions.
At year-end, we have several active plants with photovoltaic panels and a wind turbine
that generated 5,920 MWh of electricity (1,373 MWh, 811 MWh and 575 MWh in 2020,
2019 and 2018), i.e. 331% more than in 2020, and with the following installed capacities: 3
MW in Lelystad, 1 MW in the employee car park at our Arteixo Central Services facilities,
850 kW windmill in Arteixo Central Services facilities, 100 kW in the Arteixo Technology
Building, 200 kW for the headquarters of Zara.com and Zara Man 30 kW in Tempe 1 cen‐
tre, 200 kW in Tempe 3 centre, 200 kW in the Tempe 3S centre and 100 kW in the Laracha
fabric warehouse.

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List the actions which contributed most to achieving this target

<Not Applicable>  WD


C4.2c

(C4.2c) Provide details of your net-zero target(s).

Target reference number

NZ1

Target coverage
Company-wide

Absolute/intensity emission target(s) linked to this net-zero target

Abs1
Abs2

Target year for achieving net zero

2040

Is this a science-based target?

Yes, we consider this a science-based target, and we have committed to seek validation of
this target by the Science Based Targets
ets initiative in the next 2 years

Please explain target coverage and identify any exclusions

As part of our firm commitment to decarbonisation, the Inditex Group has ramped up its
ambition and announced at the Annual General Meeting held on 13 July 2021 its goal of
achieving net zero emissions by 2040, ten years earlier than initially planned.

Do you intend to neutralize any unabated emissions with permanent carbon removals at
the target year?
Yes

Planned milestones and/or near-term investments for neutralization at target year

We have set up our near-term SBTs as the main milestone for achieving net zero. This ref‐
erence will help us gain traction and establish the proper decarbonization paths and all
the framework necessary: supplier engagement, internal communication and culture
transmission, scaling up new technologies, dedicated budgets,
ets etc.

We are aware of how rapidly environmental challenges and opportunities evolve, and in
particular those related to decarbonisation. Furthermore, we want to play an active part in
the necessary change that need to be made in order to make progress in this area. Our re‐
duction targets
ets and scenarios are therefore, regularly reviewed to ensure that they are
consistent with our own internal ambition, the expectations of our stakeholders and the
latest scientific evidence.

Planned actions to mitigate emissions beyond your value chain (optional)

Beyond value chain, the Group is dedicating efforts in the following aspects:
- More sustainable raw materials
- Scaling renewable energy in the fashion supply chain, through collaboration and engage‐
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ment with our suppliers and manufacturers, with focus also in efficiency
- Coal phase out  WD

- Reducing water consumption in the supply chain
- Designing more sustainable products
- Encouraging customers to use our products more efficiently through improved labelling
- Promoting circularity by reusing and recycling garments and fibres
- Collaboration with external initiatives

C4.3

(C4.3) Did you have emissions reduction initiatives that were active within the reporting year?
Note that this can include those in the planning and/or implementation phases.
Yes

C4.3a

(C4.3a) Identify the total number of initiatives at each stage of development, and for those in
the implementation stages, the estimated CO2e savings.

Number of Total estimated annual CO2e savings in metric tonnes CO2e (only
initiatives for rows marked *)

Under investigation 10

To be implemented* 3 188750

Implementation 4 167675
commenced*

Implemented* 2 493814

Not to be implemented 0

C4.3b

(C4.3b) Provide details on the initiatives implemented in the reporting year in the table below.

Initiative category & Initiative type

Low-carbon energy consumption Low-carbon electricity mix

Estimated annual CO2e savings (metric tonnes CO2e)

493723

Scope(s) or Scope 3 category(ies) where emissions savings occur

Scope 2 (location-based)
Scope 2 (market-based)

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Voluntary/Mandatory
Voluntary  WD

Annual monetary savings (unit currency – as specified in C0.4)
1667000

Investment required (unit currency – as specified in C0.4)

9800000

Payback period
11-15 years

Estimated lifetime of the initiative

16-20 years

Comment
Our Global Energy Strategy is one of the cornerstones of our commitment to environmen‐
tal sustainability for promoting the rational and efficient use of energy throughout the en‐
tire value chain, while at the same time reducing GHG emissions and helping to mitigate
the risks associated with climate change. In 2021, 91% of the Group’s electricity needs
were covered by energy from renewable sources. This represents a total sustainable ener‐
gy consumption of 1,593,547 MWh of sustainable energy consumption in our own facili‐
ties located in 44 markets,
ets thus avoiding the emission of 493,723 tons of GHG emissions.

Initiative category & Initiative type

Energy efficiency in buildings Other, please specify (Corporate green building)

Estimated annual CO2e savings (metric tonnes CO2e)

91

Scope(s) or Scope 3 category(ies) where emissions savings occur

Scope 1
Scope 2 (location-based)
Scope 2 (market-based)

Voluntary/Mandatory
Voluntary

Annual monetary savings (unit currency – as specified in C0.4)

128000

Investment required (unit currency – as specified in C0.4)

130000000

Payback period
>25 years

Estimated lifetime of the initiative

>30 years

Comment
The new Zara.com building was inaugurated in 2021. These facilities, spanning more than
67,000 m2 and featuring the latest advances in technology and sustainability, house the

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new Zara.com studios and the Design Centre for Zara Man. The new building is a mile‐
WD
stone for advanced communications, with 5G and wifi 6 coverage to achieve communica‐


tions up to 10 times faster and more reliable than using LTE (Long Term Evolution).
Thanks to wifi 6, scope and coverage are very high, optimising the performance of all de‐
vices connected to the network.

C4.3c

(C4.3c) What methods do you use to drive investment in emissions reduction activities?

Method Comment

Dedicated To achieve our energy-efficiency targets

ets by 2030, at Inditex we employ various methods to en‐
budget for courage the rational and efficient use of energy throughout our business, while also cutting
energy greenhouse gas emissions and helping to offset their impact.
efficiency
One of these methods is the connection of our stores to Inergy, our centralized consumption
management platform which enables connected stores to be overseen to ensure optimization of
energy consumption and therefore greater efficiency in energy use as well as a reduction of the
environmental impact. At the end of 2021, 66% of our own stores were connected to this platform
and we are currently focusing our efforts on increasing this number.

Additionally, we have the commitment to achieve 100% of renewable energy consumption in all
our own facilities (headquarters, logistics centres, factories and stores) by 2022, exceeding the
80% previously planned for 2025. In 2021 we have made significant progress in this KPI and al‐
ready the Group’s energy needs covered by renewable energy accounts for 91% (in 2020, 81%).
This represents a total of 1,593,547 MWh of renewable energy consumed in our own facilities lo‐
cated in 44 markets,
ets thus avoiding 493,723 tonnes of GHG emissions.

Dedicated We apply innovation in the development of new materials and technologies to improve the sus‐
budget for low- tainability of the textile fibers used, focusing both on optimising the consumption of virgin mate‐
carbon product rials and their subsequent recycling.
R&D
In this sense, in 2020, we launched our Sustainability Innovation Hub which consists of an open-
innovation platform based on collaborative technological monitoring to boost new technologies,
processes and more sustainable materials that improve the environmental impact of our prod‐
ucts and help us to advance towards more sustainable and circular solutions. This platform en‐
ables us to select initiatives that are sufficiently mature in terms of technology to be able to as‐
sess their effectiveness through the development of pilot programmes, seeking to extend the
successful results to the commercial phase and to the industry in general.

One of our remarkable projects in the framework of the Sustainability Innovation Hub in 2021 is
the collaboration of our Zara team with the start-up LanzaTech. This startup has developed a
new CO2 capture technology to transform carbon dioxide emissions into ethanol, which can then
be used to produce new materials like polyester. As a result, we offered our customers a capsule
collection made with fabric from captured CO2 emissions. The capture and reuse of carbon diox‐
ide emissions from industrial and agricultural processes and household waste limits the direct
release of these emissions into the atmosphere and helps reduce the use of virgin fossil re‐
sources. Using technology developed by LanzaTech, fibres maintain properties similar to virgin
polyester in terms of, for example, quality, performance and care.

Furthermore, this year we have continued to promote various lines of collaboration, both with
renowned academic institutions, as well as with local and international organisations, in the in‐
terest of advancing the sustainable development of the materials we use in our value chain.
Thanks to our efforts this year, we have managed to place a total of 41,317 tonnes of recycled
materials on the market, 187% more than in 2020.

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Method Comment

Dedicated
 WD
One of the main mechanisms that we have in place to incentivise decarbonisation is our Join Life 
budget for programme. We use the Join Life label to identify all articles made of more sustainable raw mate‐
other rials and more environmentally friendly production processes. It enables us to advance in our en‐
emissions deavours to curb our impact and steadily boost the level of demand for sustainability criteria in
reduction our products.
activities
The products under Join Life are identified under the labels “Care for Fiber”, “Care for Water” and
“Care for Planet” if garments have been produced using more sustainable raw materials, using
technologies that reduce water usage in their production processes and using processes which
help reduce emissions and/or the use of chemical products in production processes respectively.
All Join Life products are produced by suppliers classified with the best rankings (A or B) or
those with a firm commitment to improvement by conducting a Corrective Action Plan, both on a
social and environmental level.

In 2021, we achieved 47% of our products placed on the market featuring our Join Life label.
Moreover, at our Annual General Meeting of July 2021, we announced a new Join Life related tar‐
get: over 50% of articles will be Join Life by 2022.

C4.5

(C4.5) Do you classify any of your existing goods and/or services as low-carbon products?
Yes

C4.5a

(C4.5a) Provide details of your products and/or services that you classify as low-carbon
products.

Level of aggregation
Group of products or services

Taxonomy used to classify product(s) or service(s) as low-carbon

Other, please specify (Join Life label)

Type of product(s) or service(s)

Other Other, please specify (Articles that use more sustainable raw materials and more environmentally
friendly production processes)

Description of product(s) or service(s)

Inditex has developed the Join Life labelling standard to identify the products that use
more sustainable raw materials and more environmentally friendly production processes,
based on the requirements listed in our website.

The products under this label are identified as “Care for Fiber”, “Care for Water” and “Care
for Planet” if garments have been produced using more sustainable raw materials, using
technologies that reduce water usage in their production processes and using processes
which help reduce emissions and/or the use of chemical products in production process‐

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es, respectively. All Join Life garments are produced by suppliers classified with the best
rankings (A or B) or those with a firm commitment to improvement by conductinga WD

Corrective Action Plan, both on a social and environmental level.

It is worth mentioning that at present, there is a lack of harmonized standards and

methodologies to evaluate the environmental and social impacts of products. In this
sense, we have been participating in projects that can overcome this gap. E.g. we are tak‐
ing part in the Product Environmental Footprint (PEF) for Apparel and Footwear of the
European Commission. In 2021, this group submitted for public consultation the first ver‐
sion of the PEFCR (Product Environmental Footprint Categories Rules), a document that
includes specific methodological rules for clothing and footwear products, for review by
the stakeholders.

Have you estimated the avoided emissions of this low-carbon product(s) or service(s)
No

Methodology used to calculate avoided emissions

<Not Applicable>

Life cycle stage(s) covered for the low-carbon product(s) or services(s)

<Not Applicable>

Functional unit used

<Not Applicable>

Reference product/service or baseline scenario used

<Not Applicable>

Life cycle stage(s) covered for the reference product/service or baseline scenario
<Not Applicable>

Estimated avoided emissions (metric tons CO2e per functional unit) compared to
reference product/service or baseline scenario
<Not Applicable>

Explain your calculation of avoided emissions, including any assumptions

<Not Applicable>

Revenue generated from low-carbon product(s) or service(s) as % of total revenue in the

reporting year
47

C5. Emissions methodology

C5.1

(C5.1) Is this your first year of reporting emissions data to CDP?

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No
 WD


C5.1a

(C5.1a) Has your organization undergone any structural changes in the reporting year, or are
any previous structural changes being accounted for in this disclosure of emissions data?

Row 1

Has there been a structural change?

No

Name of organization(s) acquired, divested from, or merged with

<Not Applicable>

Details of structural change(s), including completion dates

<Not Applicable>

C5.1b

(C5.1b) Has your emissions accounting methodology, boundary, and/or reporting year
definition changed in the reporting year?

Change(s) in Details of methodology, boundary, and/or reporting year definition change(s)

methodology,
boundary, and/or
reporting year
definition?

Row Yes, a change in In 2021, due to the updating of the emission factors, the historical scope 1 and 2
1 methodology data have been recalculated using the emission factors of the International Energy
Agency, 2021 (scope 2 emissions) and the emission factors of DEFRA (Department
for Environment Food & Rural Affairs) v.3.0, 2021 (scope 1 emissions). The histori‐
cal scope 3 categories where those emission factors are applied have been also
updated.

C5.1c

(C5.1c) Have your organization’s base year emissions been recalculated as result of the
changes or errors reported in C5.1a and C5.1b?

Base year Base year emissions recalculation policy, including significance threshold
recalculation

Row Yes As a result of the update of the emission factors, scope 1 and 2 emissions corresponding
1 to 2018 (base year) have been recalculated.
The emission factors of DEFRA (Department for Environment Food & Rural Affairs) v.3.0,

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Base year Base year emissions recalculation policy, including significance threshold
recalculation  WD

2021, were used for scope 1 emissions, and for scope 2 the emission factors of the
International Energy Agency, 2021. The historical scope 3 categories where those emis‐
sion factors are applied have been also updated.

C5.2

(C5.2) Provide your base year and base year emissions.

Scope 1

Base year start

February 1 2018

Base year end

January 31 2019

Base year emissions (metric tons CO2e)

19172

Comment
Due to updates of the emission factors, the historical scope 1 data has been recalculated
using the emission factors of DEFRA (Department for Environment Food & Rural Affairs),
2018.

Scope 2 (location-based)

Base year start

February 1 2018

Base year end

January 31 2019

Base year emissions (metric tons CO2e)

651266

Comment
Due to updates of the emission factors, the historical scope 2 data has been recalculated
using the emission factors of the International Energy Agency, 2021.

Scope 2 (market-based)

Base year start

February 1 2018

Base year end

January 31 2019

Base year emissions (metric tons CO2e)

419448

Comment
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Due to updates of the emission factors, the historical scope 2 data has been recalculated
using the emission factors of the International Energy Agency, 2021.  WD

Scope 3 category 1: Purchased goods and services

Base year start

February 1 2018

Base year end

January 31 2019

Base year emissions (metric tons CO2e)

11001868

Comment
Due to updates of the emission factors, the historical scope data for this category has
been recalculated to take into account the emission factors of the International Energy
Agency, 2021 and the emission factors of DEFRA (Department for Environment Food &
Rural Affairs), 2018.

Scope 3 category 2: Capital goods

Base year start

February 1 2018

Base year end

January 31 2019

Base year emissions (metric tons CO2e)

999119

Comment

Scope 3 category 3: Fuel-and-energy-related activities (not included in Scope 1 or 2)

Base year start

February 1 2018

Base year end

January 31 2019

Base year emissions (metric tons CO2e)

88034

Comment
Due to updates of the emission factors, the historical scope data for this category has
been recalculated using the emission factors of DEFRA (Department for Environment
Food & Rural Affairs), 2018.

Scope 3 category 4: Upstream transportation and distribution

Base year start

February 1 2018

Base year end

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January 31 2019

Base year emissions (metric tons CO2e)

 WD

1663956

Comment
Due to updates of the emission factors, the historical scope data for this category has
been recalculated using the emission factors of GLEC, Global Logistic Emissions Council
Framework for Logistics Emissions Accounting and Reporting, V.2.0.

Scope 3 category 5: Waste generated in operations

Base year start

February 1 2018

Base year end

January 31 2019

Base year emissions (metric tons CO2e)

1597

Comment
Due to updates of the emission factors, the historical scope data for this category has
been recalculated using the emission factors of DEFRA (Department for Environment
Food & Rural Affairs), 2018.

Scope 3 category 6: Business travel

Base year start

February 1 2018

Base year end

January 31 2019

Base year emissions (metric tons CO2e)

49425

Comment
Due to updates of the emission factors, the historical scope data for this category has
been recalculated using the emission factors of DEFRA (Department for Environment
Food & Rural Affairs), 2018.

Scope 3 category 7: Employee commuting

Base year start

February 1 2018

Base year end

January 31 2019

Base year emissions (metric tons CO2e)

174105

Comment

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Due to updates of the emission factors, the historical scope data for this category has
been recalculated using the emission factors of DEFRA (Department for Environment  WD

Food & Rural Affairs), 2018.

Scope 3 category 8: Upstream leased assets

ets

Base year start

February 1 2018

Base year end

January 31 2019

Base year emissions (metric tons CO2e)

Comment
Not relevant. GHG Standards establishes that GHG emissions should be calculated based
on the principles of relevance, completeness, consistency, transparency, and accuracy.
The standard states that the most rigorous approach to prioritize data collection efforts is
to estimate GHG emissions to determine which activities are expected to be most signifi‐
cant. At Inditex, we worked to identify high-impact categories using routinely collected ex‐
penditure, product, and/or investment information and the category of Scope 3-upstream
leased assets
ets has resulted in no relevance.

Scope 3 category 9: Downstream transportation and distribution

Base year start

February 1 2018

Base year end

January 31 2019

Base year emissions (metric tons CO2e)

Comment
Not relevant. GHG Standards establishes that GHG emissions should be calculated based
on the principles of relevance, completeness, consistency, transparency, and accuracy.
The standard states that the most rigorous approach to prioritize data collection efforts is
to estimate GHG emissions to determine which activities are expected to be most signifi‐
cant. At Inditex, we worked to identify high-impact categories using routinely collected ex‐
penditure, product, and/or investment information and the category of Scope 3 down‐
stream transportation and distribution has resulted as not as much relevant as other cate‐
gories.

Inditex is constantly working on improving the internal corporate systems, we are also
working to have more accurate visibility in all scope categories.

Scope 3 category 10: Processing of sold products

Base year start

February 1 2018

Base year end

January 31 2019

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Base year emissions (metric tons CO2e)

Comment
 WD

Not relevant. We do not identify as significant any scope 3 emissions related to the pro‐
cessing of sold products activities. Our company, as a fashion retailer business is in‐
volved in all stages of the fashion value chain: design, manufacturing, distribution, and
sale in our stores. Those sold products, mainly garments, shoes, and accessories, are fin‐
ished, and they do not need any processing activity. For this reason, and following GHG
Standards criteria, this category has resulted in “not relevant”.

Scope 3 category 11: Use of sold products

Base year start

February 1 2018

Base year end

January 31 2019

Base year emissions (metric tons CO2e)

4001921

Comment
Due to updates of the emission factors, the historical scope data for this category has
been recalculated using the emission factors of the International Energy Agency, 2021.

Scope 3 category 12: End of life treatment of sold products

Base year start

February 1 2018

Base year end

January 31 2019

Base year emissions (metric tons CO2e)

232585

Comment
Due to updates of the emission factors, the historical scope data for this category has
been recalculated using the emission factors of DEFRA (Department for Environment
Food & Rural Affairs), 2018.

Scope 3 category 13: Downstream leased assets

ets

Base year start

February 1 2018

Base year end

January 31 2019

Base year emissions (metric tons CO2e)

Comment
Not relevant. GHG Standards establishes that GHG emissions should be calculated based
on the principles of relevance, completeness, consistency, transparency and accuracy.
The standard says that the most rigorous approach to prioritizing data collection efforts
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is to estimate GHG emissions to determine which activities are expected to be most sig‐
nificant. At Inditex, we have worked to identify high-impact categories using routinely
 WD
col‐ 
lected expenditure, product, and/or investment information and this category of Scope 3
downstream leased assetsets has resulted as “not relevant”.

Scope 3 category 14: Franchises

Base year start

February 1 2018

Base year end

January 31 2019

Base year emissions (metric tons CO2e)

112943

Comment
Due to updates of the emission factors, the historical scope data for this category has
been recalculated using the emission factors of the International Energy Agency, 2021.

Scope 3 category 15: Investments

Base year start

February 1 2018

Base year end

January 31 2019

Base year emissions (metric tons CO2e)

0

Comment
Included in this category are equity investments and debt investments. Project financing
and investment management and customer service do not apply. They are calculated us‐
ing the calculator Scope 3 evaluator, Greenhouse Gas Protocol and Quantis.

Scope 3: Other (upstream)

Base year start

Base year end

Base year emissions (metric tons CO2e)

Comment

Scope 3: Other (downstream)

Base year start

Base year end

Base year emissions (metric tons CO2e)

Comment

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 WD

C5.3

(C5.3) Select the name of the standard, protocol, or methodology you have used to collect
activity data and calculate emissions.
The Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (Revised
Edition)
The Greenhouse Gas Protocol: Scope 2 Guidance

C6. Emissions data

C6.1

(C6.1) What were your organization’s gross global Scope 1 emissions in metric tons CO2e?

Reporting year

Gross global Scope 1 emissions (metric tons CO2e)

14575

Start date
February 1 2021

End date
January 31 2022

Comment

Past year 1

Gross global Scope 1 emissions (metric tons CO2e)

11859

Start date
February 1 2020

End date
January 31 2021

Comment
Due to updates of the emission factors, the historical scope 1 data has been recalculated
using the emission factors of DEFRA, 2020.

Past year 2

Gross global Scope 1 emissions (metric tons CO2e)

15804
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Start date
February 1 2019
 WD


End date
January 31 2020

Comment
Due to updates of the emission factors, the historical scope 1 data has been recalculated
using the emission factors of DEFRA, 2019.

Past year 3

Gross global Scope 1 emissions (metric tons CO2e)

19172

Start date
February 1 2018

End date
January 31 2019

Comment
Due to updates of the emission factors, the historical scope 1 data has been recalculated
using the emission factors of DEFRA, 2018.

C6.2

(C6.2) Describe your organization’s approach to reporting Scope 2 emissions.

Row 1

​Scope 2, location-based​
We are reporting a Scope 2, location-based figure

Scope 2, market-based
We are reporting a Scope 2, market-based figure

Comment
The Scope 2 data is calculated according to the GHG Protocol guidance for the calcula‐
tion of Scope 2, World Resources Institute (WRI), 2015. In 2021, Inditex has made strong
progress towards its ambitious target of 2022 (previously planned for 2025), in which the
company commits to guarantee that 100% of its energy needs come from a renewable
source. This year, 91% of the Group’s electricity needs were covered by energy from renew‐
able sources, exceeding the 80% previously planned for 2025. Inditex continues to work
on energy transition, reducing its fossil fuel needs per square metre and increasing the
purchase of certified renewable energy. This year, the company reduced its relative con‐
sumption of natural gas per square metre by 40% compared to 2018 and succeeded in re‐
ducing its overall energy consumption by 14% in absolute terms and per square metre all,
at corporate headquarters, logistics centres and its own stores and factories. We have
achieved a reduction in scope 1 and 2 of 86% (market-based) and 20% (location based)

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compared to 2018. This was possible due to the measures implemented to improve its en‐
WD
ergy efficiency. Also, it is important to note that the generation and purchase of certified


renewable energy has continued to reach, and a total of 1,593,547 MWh have been con‐
sumed at our facilities located in 44 markets.
ets Moreover, Inditex invests in its own renew‐
able energy generation facilities when it is technically feasible, which leads it to have so‐
lar, thermal, photovoltaic and wind energy facilities, as well as facilities for geothermal
use. In 2021, Inditex generated 5,920 MWh of electricity with photovoltaic panels and a
wind turbine, and a total of 8,852 MWh of electricity and 10,051 MWh of thermal energy
using their co-generation plants. In addition, 653 MWh of thermal energy were generated
by geothermal facilities and solar panels during the year.

C6.3

(C6.3) What were your organization’s gross global Scope 2 emissions in metric tons CO2e?

Reporting year

Scope 2, location-based
541493

Scope 2, market-based (if applicable)

47770

Start date
February 1 2021

End date
January 31 2022

Comment

Past year 1

Scope 2, location-based
363718

Scope 2, market-based (if applicable)

98676

Start date
February 1 2020

End date
January 31 2021

Comment
Due to updates of the emission factors, the historical scope 2 data has been recalculated
using the emission factors of the International Energy Agency, 2021.

Past year 2

Scope 2, location-based

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589547

Scope 2, market-based (if applicable)

 WD

293981

Start date
February 1 2019

End date
January 31 2020

Comment
Due to updates of the emission factors, the historical scope 2 data has been recalculated
using the emission factors of the International Energy Agency, 2021.

Past year 3

Scope 2, location-based
651266

Scope 2, market-based (if applicable)

419448

Start date
February 1 2018

End date
January 31 2019

Comment
Due to updates of the emission factors, the historical scope 2 data has been recalculated
using the emission factors of the International Energy Agency, 2021.

C6.4

(C6.4) Are there any sources (e.g. facilities, specific GHGs, activities, geographies, etc.) of
Scope 1 and Scope 2 emissions that are within your selected reporting boundary which are
not included in your disclosure?
Yes

C6.4a

(C6.4a) Provide details of the sources of Scope 1 and Scope 2 emissions that are within your
selected reporting boundary which are not included in your disclosure.

Source
Emissions associated with occasional leaks (or isolated leaks) of HFC and PFC gases
from air-conditioning equipment and electricity used in international offices are not

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included.

Relevance of Scope 1 emissions from this source

 WD

Emissions are not relevant

Relevance of location-based Scope 2 emissions from this source

Emissions are not relevant

Relevance of market-based Scope 2 emissions from this source (if applicable)

Emissions are not relevant

Explain why this source is excluded

Both emissions excluded on Scope 1 & 2 (market and location-based method) are not rele‐
vant. Emissions associated with occasional leaks (or isolated leaks) of HFC and PFC gas‐
es from air-conditioning equipment are produced very rarely and they are not representa‐
tive compared to total Scope 1 emissions. Moreover, our company has a reduced number
of international offices. Due to that, emissions related to our electricity consumption are
unrepresentative compared with market and location-based method scope 2 emissions,
which are mainly produced by the stores’ energy consumption. Furthermore, we conduct
periodic inspections of the facilities to ensure proper operations.

Estimated percentage of total Scope 1+2 emissions this excluded source represents
1

Explain how you estimated the percentage of emissions this excluded source represents
Inditex is present in more than 200 markets
ets across five continents, through our stores
(more than 6,400 worldwide) and our online channels. The emissions related to our elec‐
tricity consumption in our international offices are not representative compared with loca‐
tion-based scope 2 emissions, which are mainly produced by the stores’ energy consump‐
tion. More specifically this represents 1% of total scope 2 emissions, which as explained,
is practically insignificant. Please note the estimated figure represents 1% in both calcula‐
tions: either referring to scope 2 market-based, or scope 2 location-based.

The starting point to do the calculation was the total area corresponding to our in‐
ternational offices. Hence, knowing the total square meters our offices represent and the
total scope 2 emissions (market-based | location-based), an estimated figure of the emis‐
sions our international offices accounted for was obtained.

C6.5

(C6.5) Account for your organization’s gross global Scope 3 emissions, disclosing and
explaining any exclusions.

Purchased goods and services

Evaluation status
Relevant, calculated

Emissions in reporting year (metric tons CO2e)

10498841
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Emissions calculation methodology

Hybrid method
 WD

Average spend-based method

Percentage of emissions calculated using data obtained from suppliers or value chain
partners
0

Please explain
These GHG emissions are based on industry studies, technical expert advice and internal
data. To achieve greater transparency, through our Statement on Non-Financial
Information, we continued to subdivide the Purchased Goods and Services category (ac‐
cording to the GHG Protocol) into the following categories: raw material extraction, raw
material processing, material production, wet processes and finished product assembly.

Capital goods

Evaluation status
Relevant, calculated

Emissions in reporting year (metric tons CO2e)

484876

Emissions calculation methodology

Average spend-based method

Percentage of emissions calculated using data obtained from suppliers or value chain
partners
0

Please explain
Emissions generated as a result of the extraction, production and transportation of capital
goods purchased and/or acquired by the Company. Emissions are calculated using the
Greenhouse Gas Protocol’s Scope 3 emissions calculator.

Fuel-and-energy-related activities (not included in Scope 1 or 2)

Evaluation status
Relevant, calculated

Emissions in reporting year (metric tons CO2e)

39028

Emissions calculation methodology

Average data method

Percentage of emissions calculated using data obtained from suppliers or value chain
partners
0

Please explain
This category includes emissions related to the production of fuels and energy purchased
and consumed by Inditex that are not included in scope 1 or scope 2. Emissions are calcu‐

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lated based on the global energy consumption and the corresponding emission factors.

Upstream transportation and distribution

 WD


Evaluation status
Relevant, calculated

Emissions in reporting year (metric tons CO2e)

1821316

Emissions calculation methodology

Distance-based method

Percentage of emissions calculated using data obtained from suppliers or value chain
partners
0

Please explain
Emissions linked to the upstream transportation and distribution services acquired by the
Company. Their calculation takes into account the tonnes transported and kilometres
travelled by each means of transport, along with the relevant emission factors.

Waste generated in operations

Evaluation status
Relevant, calculated

Emissions in reporting year (metric tons CO2e)

1029

Emissions calculation methodology

Waste-type-specific method

Percentage of emissions calculated using data obtained from suppliers or value chain
partners
0

Please explain
Emissions from the disposal and treatment of waste generated in Inditex’s headquarters,
own logistic centres and own factories. Information on waste generated in own stores not
available with the required level of breakdown.
Their calculation takes into account the tonnes of each type of waste generated and the
final treatment of each, along with the corresponding emission factors.

Business travel

Evaluation status
Relevant, calculated

Emissions in reporting year (metric tons CO2e)

15832

Emissions calculation methodology

Spend-based method
Distance-based method
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Percentage of emissions calculated using data obtained from suppliers or value chain
partners
 WD

0

Please explain
Emissions from the transportation of employees for business-related activities in vehicles
owned or operated by third parties.
For the calculation, the origin, destination, means of transport used by the Spanish agen‐
cies and the corresponding emission factor are taken into account. It is extrapolated to
the rest of the subsidiaries based on travel expenses in Spain.

Employee commuting

Evaluation status
Relevant, calculated

Emissions in reporting year (metric tons CO2e)

155934

Emissions calculation methodology

Average data method

Percentage of emissions calculated using data obtained from suppliers or value chain
partners
0

Please explain
Emissions generated as employees commute between home and work.
Their calculation involves estimating average distances covered by means of transport
and commuting patterns based on bibliographic research.

Upstream leased assets

ets

Evaluation status
Not relevant, explanation provided

Emissions in reporting year (metric tons CO2e)

<Not Applicable>

Emissions calculation methodology

<Not Applicable>

Percentage of emissions calculated using data obtained from suppliers or value chain
partners
<Not Applicable>

Please explain
GHG Standards establishes that GHG emissions should be calculated based on the princi‐
ples of relevance, completeness, consistency, transparency, and accuracy. The standard
states that the most rigorous approach to prioritize data collection efforts is to estimate
GHG emissions to determine which activities are expected to be most significant. At
Inditex, we worked to identify high-impact categories using routinely collected expendi‐

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ture, product, and/or investment information and the category of Scope 3-upstream
leased assets
ets has resulted in no relevance.  WD

Downstream transportation and distribution

Evaluation status
Not relevant, explanation provided

Emissions in reporting year (metric tons CO2e)

<Not Applicable>

Emissions calculation methodology

<Not Applicable>

Percentage of emissions calculated using data obtained from suppliers or value chain
partners
<Not Applicable>

Please explain
GHG Standards establishes that GHG emissions should be calculated based on the princi‐
ples of relevance, completeness, consistency, transparency, and accuracy. The standard
states that the most rigorous approach to prioritize data collection efforts is to estimate
GHG emissions to determine which activities are expected to be most significant. At
Inditex, we worked to identify high-impact categories using routinely collected expendi‐
ture, product, and/or investment information and the category of Scope 3 downstream
transportation and distribution has resulted as “not relevant”.

Processing of sold products

Evaluation status
Not relevant, explanation provided

Emissions in reporting year (metric tons CO2e)

<Not Applicable>

Emissions calculation methodology

<Not Applicable>

Percentage of emissions calculated using data obtained from suppliers or value chain
partners
<Not Applicable>

Please explain
We do not identify as significant any scope 3 emissions related to the processing of sold
products activities. Our company, as a fashion retailer business is involved in all stages of
the fashion value chain: design, manufacturing, distribution, and sale in our stores. Those
sold products, mainly garments, shoes, and accessories, are finished,
and they do not need any processing activity. For this reason, and following GHG
Standards criteria, this category has resulted in “not relevant”.

Use of sold products

Evaluation status
Relevant, calculated

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Emissions in reporting year (metric tons CO2e)

3729409
 WD


Emissions calculation methodology

Methodology for indirect use phase emissions, please specify (Product Module SAC)

Percentage of emissions calculated using data obtained from suppliers or value chain
partners
0

Please explain
Estimated emissions expected from the use of products sold by Inditex. Their calculation
takes into account the energy consumed during the use phase based on bibliographic
research.

End of life treatment of sold products

Evaluation status
Relevant, calculated

Emissions in reporting year (metric tons CO2e)

234577

Emissions calculation methodology

Average data method

Percentage of emissions calculated using data obtained from suppliers or value chain
partners
0

Please explain
Emissions from the final disposal of products sold by the Company. Their calculation
takes into account the number of units sold and the final destination based on biblio‐
graphic research.

Downstream leased assets

ets

Evaluation status
Not relevant, explanation provided

Emissions in reporting year (metric tons CO2e)

<Not Applicable>

Emissions calculation methodology

<Not Applicable>

Percentage of emissions calculated using data obtained from suppliers or value chain
partners
<Not Applicable>

Please explain
GHG Standards establishes that GHG emissions should be calculated based on the princi‐
ples of relevance, completeness, consistency, transparency and accuracy. The standard
says that the most rigorous approach to prioritizing data collection efforts is to estimate
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GHG emissions to determine which activities are expected to be most significant. At

 ex‐WD
Inditex, we have worked to identify high-impact categories using routinely collected 
penditure, product, and/or investment information and this category of Scope 3 down‐
stream leased assets
ets has resulted as “not relevant”.

Franchises

Evaluation status
Relevant, calculated

Emissions in reporting year (metric tons CO2e)

116959

Emissions calculation methodology

Average data method

Percentage of emissions calculated using data obtained from suppliers or value chain
partners
0

Please explain
Emissions from franchisees during the operation of franchises. The electricity consump‐
tion of franchises has been estimated based on the consumption averages of own stores.
This consumption is multiplied by the corresponding emission factor.

Investments

Evaluation status
Not relevant, calculated

Emissions in reporting year (metric tons CO2e)

0

Emissions calculation methodology

Average data method

Percentage of emissions calculated using data obtained from suppliers or value chain
partners
0

Please explain
Emissions from Inditex investment activities. Included in this category are equity invest‐
ments and debt
investments. Project financing and investment management and customer service do not
apply. They are calculated using the calculator Scope 3 evaluator, Greenhouse Gas
Protocol and Quantis. This category is equal to zero at our company for the FY21, as the
subsidiaries are consolidated into the main financial report and there are no commercial
loan structures with a known outcome.

Other (upstream)

Evaluation status

Emissions in reporting year (metric tons CO2e)

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<Not Applicable>

Emissions calculation methodology

 WD

<Not Applicable>

Percentage of emissions calculated using data obtained from suppliers or value chain
partners
<Not Applicable>

Please explain

Other (downstream)

Evaluation status

Emissions in reporting year (metric tons CO2e)

<Not Applicable>

Emissions calculation methodology

<Not Applicable>

Percentage of emissions calculated using data obtained from suppliers or value chain
partners
<Not Applicable>

Please explain

C6.5a

(C6.5a) Disclose or restate your Scope 3 emissions data for previous years.

Past year 1

Start date
February 1 2020

End date
January 31 2021

Scope 3: Purchased goods and services (metric tons CO2e)

8944806

Scope 3: Capital goods (metric tons CO2e)

335322

Scope 3: Fuel and energy-related activities (not included in Scopes 1 or 2) (metric tons
CO2e)
21942

Scope 3: Upstream transportation and distribution (metric tons CO2e)

1419555

Scope 3: Waste generated in operations (metric tons CO2e)

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1087

Scope 3: Business travel (metric tons CO2e)

 WD

4090

Scope 3: Employee commuting (metric tons CO2e)

136297

Scope 3: Upstream leased assets

ets (metric tons CO2e)

Scope 3: Downstream transportation and distribution (metric tons CO2e)

Scope 3: Processing of sold products (metric tons CO2e)

Scope 3: Use of sold products (metric tons CO2e)

2245255

Scope 3: End of life treatment of sold products (metric tons CO2e)

161626

Scope 3: Downstream leased assets

ets (metric tons CO2e)

Scope 3: Franchises (metric tons CO2e)

71482

Scope 3: Investments (metric tons CO2e)

0

Scope 3: Other (upstream) (metric tons CO2e)

Scope 3: Other (downstream) (metric tons CO2e)

Comment

Past year 2

Start date
February 1 2019

End date
January 31 2020

Scope 3: Purchased goods and services (metric tons CO2e)

11076816

Scope 3: Capital goods (metric tons CO2e)

631431

Scope 3: Fuel and energy-related activities (not included in Scopes 1 or 2) (metric tons
CO2e)
60311

Scope 3: Upstream transportation and distribution (metric tons CO2e)

1801046

Scope 3: Waste generated in operations (metric tons CO2e)

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1387

Scope 3: Business travel (metric tons CO2e)

 WD

47229

Scope 3: Employee commuting (metric tons CO2e)

172880

Scope 3: Upstream leased assets

ets (metric tons CO2e)

Scope 3: Downstream transportation and distribution (metric tons CO2e)

Scope 3: Processing of sold products (metric tons CO2e)

Scope 3: Use of sold products (metric tons CO2e)

3844921

Scope 3: End of life treatment of sold products (metric tons CO2e)

244863

Scope 3: Downstream leased assets

ets (metric tons CO2e)

Scope 3: Franchises (metric tons CO2e)

108013

Scope 3: Investments (metric tons CO2e)

0

Scope 3: Other (upstream) (metric tons CO2e)

Scope 3: Other (downstream) (metric tons CO2e)

Comment

Past year 3

Start date
February 1 2018

End date
January 31 2019

Scope 3: Purchased goods and services (metric tons CO2e)

11001868

Scope 3: Capital goods (metric tons CO2e)

999119

Scope 3: Fuel and energy-related activities (not included in Scopes 1 or 2) (metric tons
CO2e)
88034

Scope 3: Upstream transportation and distribution (metric tons CO2e)

1663956

Scope 3: Waste generated in operations (metric tons CO2e)

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1597

Scope 3: Business travel (metric tons CO2e)

 WD

49425

Scope 3: Employee commuting (metric tons CO2e)

174105

Scope 3: Upstream leased assets

ets (metric tons CO2e)

Scope 3: Downstream transportation and distribution (metric tons CO2e)

Scope 3: Processing of sold products (metric tons CO2e)

Scope 3: Use of sold products (metric tons CO2e)

4001921

Scope 3: End of life treatment of sold products (metric tons CO2e)

232585

Scope 3: Downstream leased assets

ets (metric tons CO2e)

Scope 3: Franchises (metric tons CO2e)

112943

Scope 3: Investments (metric tons CO2e)

0

Scope 3: Other (upstream) (metric tons CO2e)

Scope 3: Other (downstream) (metric tons CO2e)

Comment

C6.7

(C6.7) Are carbon dioxide emissions from biogenic carbon relevant to your organization?
No

C6.10

(C6.10) Describe your gross global combined Scope 1 and 2 emissions for the reporting year
in metric tons CO2e per unit currency total revenue and provide any additional intensity
metrics that are appropriate to your business operations.

Intensity figure
0.00000225

Metric numerator (Gross global combined Scope 1 and 2 emissions, metric tons CO2e)
62345
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Metric denominator
unit total revenue
 WD


Metric denominator: Unit total

27732078678

Scope 2 figure used

Market-based

% change from previous year

58.5

Direction of change
Decreased

Reason for change

Inditex continues to advance in its strategy to reach an economy that is climate-neutral,
efficient in the use of resources and competitive. In this context, we work in the imple‐
mentation of different initiatives in order reduce our intensity figure.
This year, compared to 2020 scope 1+2 emissions, a reduction of 58.5% has been
achieved.
In 2021, historical scope 1 and 2 data was recalculated due to the updating of the emis‐
sion factors. The reported figure of %change already considers in the calculation the up‐
dated scope 1+2 2020 figure.

Some examples of initiatives that have contributed to reducing our intensity figure are:
- We continued to invest in our renewable energy generation facilities, which leads us to
have solar thermal, photovoltaic and wind energy facilities, as well as facilities for geo‐
thermal use. Generation throughout the years remains increasing, hence, in 2021 a total of
5,920 MWh of electricity (331% more than in 2020) was generated by active plants with
photovoltaic panels and a wind turbine, and 8,852 MWh of electricity and 10,051 MWh of
thermal energy using our co-generation plants, which enable the production of energy us‐
ing low-carbon fuel. Also, in 2021 a total of 653 MWh of thermal energy has been generat‐
ed from renewable installations using geothermic and solar panels (633 MWh, 577 MWh
and 329 MWh in 2020, 2019 and 2018, respectively).
This is in line with the Group’s commitment to use only energy from renewable sources in
all our facilities by 2022. Already in 2021 Inditex has covered 91% (1,593,547 MWh in our
facilities located in 44 markets)
ets of the energy needs (HQs, logistics centres, factories and
stores) from renewable sources.
- Energy efficiency measures help reduce GHG emissions. For instance, the connection of
our stores to Inergy, our centralized consumption management platform which enables
optimization of energy consumption. At the end of 2021, 66% of our own stores were con‐
nected to this platform and we are currently focusing our efforts on increasing this num‐
ber.

All the actions implemented to foster energy efficiency and the use of renewable energies,
have allowed us to achieve an 86% reduction per m2 in Scope 1 and 2 emissions com‐
pared to 2018.

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Also, and as part of our Sustainability Roadmap, we are committed to reduce 90% of the
Group’s Scope 1 and Scope 2 emissions by 2030 compared to 2018.  WD

Intensity figure
0.008

Metric numerator (Gross global combined Scope 1 and 2 emissions, metric tons CO2e)
62345

Metric denominator
square meter

Metric denominator: Unit total

7813753

Scope 2 figure used

Market-based

% change from previous year

44.3

Direction of change
Decreased

Reason for change

Please note that due to updates of the emission factors, the historical scopes 1 and 2
data have been recalculated using the emission factors of the International Energy
Agency, 2021 (scope 2) and the DEFRA factors, 2021 (scope 1). As a result, intensity met‐
rics based on total area (m2) for previous years are: 0.014 (FY2020), 0.039 (FY2019),
0.058 (FY2018).

In 2020, Inditex reached an important milestone tackling climate change: the approval of
the company’s decarbonisation targets
ets by the SBTi (Science-Based Target Initiative). This
year, the Group has continued advancing towards reducing its impact on climate change
and has achieved new milestones, such as: signing the Open Letter from the We Mean
Business coalition to the leaders of G20 countries; taking part in the review of the objec‐
tives of the Fashion Industry Charter for Climate Action (FICCA), among others.

Inditex is committed to reducing 90% of the Group’s Scope 1 and Scope 2 emissions by
2030 compared to 2018. Simultaneously, Inditex has covered 91% (1,593,547 MWh in our
facilities located in 44 markets)
ets of our energy needs (headquarters, logistics centres, fac‐
tories and stores) from renewable sources, exceeding the 80% previously planned for 2025
and advancing towards our commitment to use only energy from renewable sources in all
our facilities by 2022.

We continued to invest in our renewable energy generation facilities, which leads us to

have solar thermal, photovoltaic and wind energy facilities, as well as facilities for geo‐
thermal use. In 2021, a total of 5,920 MWh of electricity was generated by active plants
with photovoltaic panels and a wind turbine, and 8,852 MWh of electricity and 10,051
MWh of thermal energy using our co-generation plants, which enable the production of en‐
ergy using low-carbon fuel. In addition, in 2021 a total of 653 MWh of thermal energy has
been generated from renewable installations using geothermic and solar panels. Thus, all
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the actions as a whole that have been implemented to foster energy efficiency have al‐
lowed us to achieve a 43% reduction per m2 in emissions related to Scopes 1 and2 com‐ WD

pared to 2019.

C7. Emissions breakdowns

C7.1

(C7.1) Does your organization break down its Scope 1 emissions by greenhouse gas type?
Yes

C7.1a

(C7.1a) Break down your total gross global Scope 1 emissions by greenhouse gas type and
provide the source of each used greenhouse warming potential (GWP).

Greenhouse gas Scope 1 emissions (metric tons of CO2e) GWP Reference

CO2 14537 IPCC Fifth Assessment Report (AR5 – 100 year)

CH4 19 IPCC Fifth Assessment Report (AR5 – 100 year)

N2O 19 IPCC Fourth Assessment Report (AR4 - 100 year)

C7.2

(C7.2) Break down your total gross global Scope 1 emissions by country/region.

Country/Region Scope 1 emissions (metric tons CO2e)

Spain 13783

Other, please specify (Rest of the world) 792

C7.3

(C7.3) Indicate which gross global Scope 1 emissions breakdowns you are able to provide.
By activity

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 WD

C7.3c

(C7.3c) Break down your total gross global Scope 1 emissions by business activity.

Activity Scope 1 emissions (metric tons CO2e)

Headquarters 2697

Own factories and logistics centers 11878

C7.5

(C7.5) Break down your total gross global Scope 2 emissions by country/region.

Country/Region Scope 2, location-based (metric tons Scope 2, market-based (metric tons

CO2e) CO2e)

Spain 89762 0

Other, please specify (Rest of the 451731 47770

world)

C7.6

(C7.6) Indicate which gross global Scope 2 emissions breakdowns you are able to provide.
By activity

C7.6c

(C7.6c) Break down your total gross global Scope 2 emissions by business activity.

Activity Scope 2, location-based (metric Scope 2, market-based (metric

tons CO2e) tons CO2e)

Headquarters, own factories and logis‐ 36676 0

tics centers

Stores 504816 47770

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 WD

C7.9

(C7.9) How do your gross global emissions (Scope 1 and 2 combined) for the reporting year
compare to those of the previous reporting year?
Decreased

C7.9a

(C7.9a) Identify the reasons for any change in your gross global emissions (Scope 1 and 2
combined), and for each of them specify how your emissions compare to the previous year.

Change in Direction Emissions Please explain calculation

emissions of change value
(metric tons (percentage)
CO2e)

Change in 50906 Decreased 81.65 During 2021, we continued working on improving the
renewable methodology used to calculate the carbon footprint
energy and, thanks to this effort, we have been able to expand
consumption the data, making the result more precise. In 2021, 91%
of the Group’s electricity needs were covered by energy
from renewable sources. This represents a total sus‐
tainable energy consumption of 1,593,547 MWh in our
facilities located in 44 markets.
ets The use of renewable
energy led to a decrease of 50,906 t CO2. The percent‐
age decrease was 81.65% compared to the previous
year (50,906/62,345)*100 = 81.65%).

Other 2716 Increased 4.36 At Inditex, we invest in our facilities to optimize energy
emissions use. Eco-efficiency is a priority at all the Group’s facili‐
reduction ties. This is evidenced by the investments undertaken
activities to fulfil the Instruction for Proper Environmental
Management, an internal document aimed at ensuring
that headquarters and platforms are ecoefficient. Even
though this year, the emissions increase, please take
into account the comparison is made with year 2020
which was affected by covid-19, thus affecting this in‐
dicator.
The percentage increase was 4.36% compared to the
previous year ((2,716/62,345)*100= 4.36%).

Divestment <Not
Applicable
>

Acquisitions <Not
Applicable
>

Mergers <Not
Applicable
>

Change in <Not
output Applicable
>

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Change in Direction Emissions Please explain calculation

emissions
(metric tons
of change value
(percentage)
 WD

CO2e)

Change in <Not
methodology Applicable
>

Change in <Not
boundary Applicable
>

Change in <Not
physical Applicable
operating >
conditions

Unidentified <Not
Applicable
>

Other <Not
Applicable
>

C7.9b

(C7.9b) Are your emissions performance calculations in C7.9 and C7.9a based on a location-
based Scope 2 emissions figure or a market-based Scope 2 emissions figure?
Market-based

C8. Energy

C8.1

(C8.1) What percentage of your total operational spend in the reporting year was on energy?
More than 0% but less than or equal to 5%

C8.2

(C8.2) Select which energy-related activities your organization has undertaken.

Indicate whether your organization undertook this energy-related

activity in the reporting year

Consumption of fuel (excluding Yes

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Indicate whether your organization undertook this energy-related

activity in the reporting year  WD

feedstocks)

Consumption of purchased or acquired Yes

electricity

Consumption of purchased or acquired No

heat

Consumption of purchased or acquired No

steam

Consumption of purchased or acquired No

cooling

Generation of electricity, heat, steam, or Yes

cooling

C8.2a

(C8.2a) Report your organization’s energy consumption totals (excluding feedstocks) in

MWh.

Heating value MWh from MWh from non- Total (renewable and
renewable renewable sources non-renewable) MWh
sources

Consumption of fuel (excluding LHV (lower 0 77254 77254

feedstock) heating value)

Consumption of purchased or <Not 1593547 85409 1678956

acquired electricity Applicable>

Consumption of purchased or <Not <Not Applicable> <Not Applicable> <Not Applicable>

acquired heat Applicable>

Consumption of purchased or <Not <Not Applicable> <Not Applicable> <Not Applicable>

acquired steam Applicable>

Consumption of purchased or <Not <Not Applicable> <Not Applicable> <Not Applicable>

acquired cooling Applicable>

Consumption of self-generated <Not 6573 <Not Applicable> 6573

non-fuel renewable energy Applicable>

Total energy consumption <Not 1600120 162663 1762783

Applicable>

C8.2b

(C8.2b) Select the applications of your organization’s consumption of fuel.

Indicate whether your organization undertakes this fuel

application

Consumption of fuel for the generation of Yes

electricity

Consumption of fuel for the generation of heat No

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Indicate whether your organization undertakes this fuel

application  WD

Consumption of fuel for the generation of steam No

Consumption of fuel for the generation of cooling No

Consumption of fuel for co-generation or tri- Yes

generation

C8.2c

(C8.2c) State how much fuel in MWh your organization has consumed (excluding feedstocks)
by fuel type.

Sustainable biomass

Heating value
Unable to confirm heating value

Total fuel MWh consumed by the organization

0

MWh fuel consumed for self-generation of electricity

0

MWh fuel consumed for self-generation of heat

0

MWh fuel consumed for self-generation of steam

<Not Applicable>

MWh fuel consumed for self-generation of cooling

<Not Applicable>

MWh fuel consumed for self- cogeneration or self-trigeneration

0

Comment

Other biomass

Heating value
Unable to confirm heating value

Total fuel MWh consumed by the organization

0

MWh fuel consumed for self-generation of electricity

0

MWh fuel consumed for self-generation of heat

0

MWh fuel consumed for self-generation of steam

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<Not Applicable>

MWh fuel consumed for self-generation of cooling

 WD

<Not Applicable>

MWh fuel consumed for self- cogeneration or self-trigeneration

0

Comment

Other renewable fuels (e.g. renewable hydrogen)

Heating value
Unable to confirm heating value

Total fuel MWh consumed by the organization

0

MWh fuel consumed for self-generation of electricity

0

MWh fuel consumed for self-generation of heat

0

MWh fuel consumed for self-generation of steam

<Not Applicable>

MWh fuel consumed for self-generation of cooling

<Not Applicable>

MWh fuel consumed for self- cogeneration or self-trigeneration

0

Comment

Coal

Heating value
Unable to confirm heating value

Total fuel MWh consumed by the organization

0

MWh fuel consumed for self-generation of electricity

0

MWh fuel consumed for self-generation of heat

0

MWh fuel consumed for self-generation of steam

<Not Applicable>

MWh fuel consumed for self-generation of cooling

<Not Applicable>

MWh fuel consumed for self- cogeneration or self-trigeneration

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Comment
 WD


Oil

Heating value
Unable to confirm heating value

Total fuel MWh consumed by the organization

0

MWh fuel consumed for self-generation of electricity

0

MWh fuel consumed for self-generation of heat

0

MWh fuel consumed for self-generation of steam

<Not Applicable>

MWh fuel consumed for self-generation of cooling

<Not Applicable>

MWh fuel consumed for self- cogeneration or self-trigeneration

0

Comment

Gas

Heating value
LHV

Total fuel MWh consumed by the organization

72050

MWh fuel consumed for self-generation of electricity

0

MWh fuel consumed for self-generation of heat

0

MWh fuel consumed for self-generation of steam

<Not Applicable>

MWh fuel consumed for self-generation of cooling

<Not Applicable>

MWh fuel consumed for self- cogeneration or self-trigeneration

27555

Comment

Other non-renewable fuels (e.g. non-renewable hydrogen)

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Heating value
LHV  WD

Total fuel MWh consumed by the organization
5203

MWh fuel consumed for self-generation of electricity

321

MWh fuel consumed for self-generation of heat

0

MWh fuel consumed for self-generation of steam

<Not Applicable>

MWh fuel consumed for self-generation of cooling

<Not Applicable>

MWh fuel consumed for self- cogeneration or self-trigeneration

0

Comment
The reported data includes consumption from Diesel, LPG and other residual types of fuel.
Inditex´s Global Energy Strategy, as the cornerstone of Inditex´s commitment to the envi‐
ronment, seeks to drive the rational and efficient use of energy throughout the Company’s
value chain, while at the same time reducing GHG emissions. As part of this strategy,
Inditex is committed to reducing the overall energy consumption of its value chain, with a
particular focus on reducing the use of energy sourced or derived from fossil fuels. The re‐
duction of the consumption of fossil fuels is synchronized with the implementations to
improve energy efficiency such as connecting our stores to the Inergy platform or boost‐
ing our consumption of clean energy. As a result of the progress made in energy efficiency
and the use of renewable energies, in 2021 we achieved a reduction of 86% per square me‐
ter in Scope 1 and 2 emissions compared to 2018.

Moreover, in line with our commitment to achieve by 2022 100% of energy consumption
from renewable sources in all our own facilities (headquarters, logistics centres, factories
and stores), in 2021 the Group’s energy needs covered by renewable energy already ac‐
counts for 91%. Inditex continues to incorporate renewable energy sources into all pro‐
cesses at its facilities.

Total fuel

Heating value
LHV

Total fuel MWh consumed by the organization

77253

MWh fuel consumed for self-generation of electricity

321

MWh fuel consumed for self-generation of heat

0

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5/4/23, 6:21 PM CDP

MWh fuel consumed for self-generation of steam

<Not Applicable>  WD

MWh fuel consumed for self-generation of cooling
<Not Applicable>

MWh fuel consumed for self- cogeneration or self-trigeneration

27555

Comment

C8.2d

(C8.2d) Provide details on the electricity, heat, steam, and cooling your organization has
generated and consumed in the reporting year.

Total Gross Generation that is Gross generation from Generation from renewable
generation consumed by the renewable sources sources that is consumed by the
(MWh) organization (MWh) (MWh) organization (MWh)

Electricity 14772 14772 5920 5920

Heat 10051 10051 653 653

Steam 0 0 0 0

Cooling 0 0 0 0

C8.2e

(C8.2e) Provide details on the electricity, heat, steam, and/or cooling amounts that were
accounted for at a zero or near-zero emission factor in the market-based Scope 2 figure
reported in C6.3.

Sourcing method
Unbundled energy attribute certificates (EACs) purchase

Energy carrier
Electricity

Low-carbon technology type

Low-carbon energy mix, please specify (Solar, wind, hydroelectric, geothermal and biogas)

Country/area of low-carbon energy consumption

Spain

Tracking instrument used

GO

Low-carbon energy consumed via selected sourcing method in the reporting year (MWh)
450611

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5/4/23, 6:21 PM CDP

Country/area of origin (generation) of the low-carbon energy or energy attribute

Spain  WD

Commissioning year of the energy generation facility (e.g. date of first commercial
operation or repowering)

Comment
In 2021, 91% of the Group’s electricity needs were covered by energy from renewable
sources. This represents a total sustainable energy consumption of 1,593,547 MWh in our
facilities located in 44 markets,
ets thus avoiding the emission of 493,723 tonnes of GHG
emissions (978,266 MWh consumed and 265,041 tonnes of GHG emissions avoided,
1,144,020 MWh and 295,566 tonnes, and 837,626 MWh and 231,818 tonnes in 2020, 2019
and 2018, respectively).

Please take this as a general comment for all 44 cells disclosed, corresponding to our fa‐
cilities located in 44 markets.
ets

Sourcing method
Unbundled energy attribute certificates (EACs) purchase

Energy carrier
Electricity

Low-carbon technology type

Low-carbon energy mix, please specify (Solar, wind, hydroelectric, geothermal and biogas)

Country/area of low-carbon energy consumption

Italy

Tracking instrument used

GO

Low-carbon energy consumed via selected sourcing method in the reporting year (MWh)
116406

Country/area of origin (generation) of the low-carbon energy or energy attribute

Italy

Commissioning year of the energy generation facility (e.g. date of first commercial
operation or repowering)

Comment

Sourcing method
Unbundled energy attribute certificates (EACs) purchase

Energy carrier
Electricity

Low-carbon technology type

Low-carbon energy mix, please specify (Solar, wind, hydroelectric, geothermal and biogas)

Country/area of low-carbon energy consumption

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5/4/23, 6:21 PM CDP

Mexico

Tracking instrument used

 WD

I-REC

Low-carbon energy consumed via selected sourcing method in the reporting year (MWh)
111728

Country/area of origin (generation) of the low-carbon energy or energy attribute

Mexico

Commissioning year of the energy generation facility (e.g. date of first commercial
operation or repowering)

Comment

Sourcing method
Unbundled energy attribute certificates (EACs) purchase

Energy carrier
Electricity

Low-carbon technology type

Low-carbon energy mix, please specify (Solar, wind, hydroelectric, geothermal and biogas)

Country/area of low-carbon energy consumption

Russian Federation

Tracking instrument used

I-REC

Low-carbon energy consumed via selected sourcing method in the reporting year (MWh)
105339

Country/area of origin (generation) of the low-carbon energy or energy attribute

China

Commissioning year of the energy generation facility (e.g. date of first commercial
operation or repowering)

Comment

Sourcing method
Unbundled energy attribute certificates (EACs) purchase

Energy carrier
Electricity

Low-carbon technology type

Low-carbon energy mix, please specify (Solar, wind, hydroelectric, geothermal and biogas)

Country/area of low-carbon energy consumption

China

https://www.cdp.net/en/formatted_responses/responses?campaign_id=79520704&discloser_id=942728&locale=en&organization_name=Inditex&organizati… 98/142
5/4/23, 6:21 PM CDP

Tracking instrument used

I-REC  WD

Low-carbon energy consumed via selected sourcing method in the reporting year (MWh)
98328

Country/area of origin (generation) of the low-carbon energy or energy attribute

China

Commissioning year of the energy generation facility (e.g. date of first commercial
operation or repowering)

Comment

Sourcing method
Unbundled energy attribute certificates (EACs) purchase

Energy carrier
Electricity

Low-carbon technology type

Low-carbon energy mix, please specify (Solar, wind, hydroelectric, geothermal and biogas)

Country/area of low-carbon energy consumption

France

Tracking instrument used

GO

Low-carbon energy consumed via selected sourcing method in the reporting year (MWh)
78911

Country/area of origin (generation) of the low-carbon energy or energy attribute

Bulgaria

Commissioning year of the energy generation facility (e.g. date of first commercial
operation or repowering)

Comment

Sourcing method
Unbundled energy attribute certificates (EACs) purchase

Energy carrier
Electricity

Low-carbon technology type

Low-carbon energy mix, please specify (Solar, wind, hydroelectric, geothermal and biogas)

Country/area of low-carbon energy consumption

United States of America

Tracking instrument used

GO
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5/4/23, 6:21 PM CDP

Low-carbon energy consumed via selected sourcing method in the reporting year(MWh)
63840
WD


Country/area of origin (generation) of the low-carbon energy or energy attribute

Canada

Commissioning year of the energy generation facility (e.g. date of first commercial
operation or repowering)

Comment

Sourcing method
Unbundled energy attribute certificates (EACs) purchase

Energy carrier
Electricity

Low-carbon technology type

Low-carbon energy mix, please specify (Solar, wind, hydroelectric, geothermal and biogas)

Country/area of low-carbon energy consumption

Portugal

Tracking instrument used

GO

Low-carbon energy consumed via selected sourcing method in the reporting year (MWh)
56819

Country/area of origin (generation) of the low-carbon energy or energy attribute

Bulgaria

Commissioning year of the energy generation facility (e.g. date of first commercial
operation or repowering)

Comment

Sourcing method
Unbundled energy attribute certificates (EACs) purchase

Energy carrier
Electricity

Low-carbon technology type

Low-carbon energy mix, please specify (Solar, wind, hydroelectric, geothermal and biogas)

Country/area of low-carbon energy consumption

Turkey

Tracking instrument used

I-REC

Low-carbon energy consumed via selected sourcing method in the reporting year (MWh)

https://www.cdp.net/en/formatted_responses/responses?campaign_id=79520704&discloser_id=942728&locale=en&organization_name=Inditex&organizat… 100/142
5/4/23, 6:21 PM CDP

45296

Country/area of origin (generation) of the low-carbon energy or energy attribute

 WD

Turkey

Commissioning year of the energy generation facility (e.g. date of first commercial
operation or repowering)

Comment

Sourcing method
Unbundled energy attribute certificates (EACs) purchase

Energy carrier
Electricity

Low-carbon technology type

Low-carbon energy mix, please specify (Solar, wind, hydroelectric, geothermal and biogas)

Country/area of low-carbon energy consumption

Poland

Tracking instrument used

GO

Low-carbon energy consumed via selected sourcing method in the reporting year (MWh)
42992

Country/area of origin (generation) of the low-carbon energy or energy attribute

Poland

Commissioning year of the energy generation facility (e.g. date of first commercial
operation or repowering)

Comment

Sourcing method
Unbundled energy attribute certificates (EACs) purchase

Energy carrier
Electricity

Low-carbon technology type

Low-carbon energy mix, please specify (Solar, wind, hydroelectric, geothermal and biogas)

Country/area of low-carbon energy consumption

United Kingdom of Great Britain and Northern Ireland

Tracking instrument used

REGO

Low-carbon energy consumed via selected sourcing method in the reporting year (MWh)
42127

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5/4/23, 6:21 PM CDP

Country/area of origin (generation) of the low-carbon energy or energy attribute

United Kingdom of Great Britain and Northern Ireland  WD

Commissioning year of the energy generation facility (e.g. date of first commercial
operation or repowering)

Comment

Sourcing method
Unbundled energy attribute certificates (EACs) purchase

Energy carrier
Electricity

Low-carbon technology type

Low-carbon energy mix, please specify (Solar, wind, hydroelectric, geothermal and biogas)

Country/area of low-carbon energy consumption

Greece

Tracking instrument used

GO

Low-carbon energy consumed via selected sourcing method in the reporting year (MWh)
35447

Country/area of origin (generation) of the low-carbon energy or energy attribute

Greece

Commissioning year of the energy generation facility (e.g. date of first commercial
operation or repowering)

Comment

Sourcing method
Unbundled energy attribute certificates (EACs) purchase

Energy carrier
Electricity

Low-carbon technology type

Low-carbon energy mix, please specify (Solar, wind, hydroelectric, geothermal and biogas)

Country/area of low-carbon energy consumption

Netherlands

Tracking instrument used

GO

Low-carbon energy consumed via selected sourcing method in the reporting year (MWh)
34892

Country/area of origin (generation) of the low-carbon energy or energy attribute

Bulgaria
https://www.cdp.net/en/formatted_responses/responses?campaign_id=79520704&discloser_id=942728&locale=en&organization_name=Inditex&organizat… 102/142
5/4/23, 6:21 PM CDP

Commissioning year of the energy generation facility (e.g. date of first commercial
operation or repowering)
 WD


Comment

Sourcing method
Unbundled energy attribute certificates (EACs) purchase

Energy carrier
Electricity

Low-carbon technology type

Low-carbon energy mix, please specify (Solar, wind, hydroelectric, geothermal and biogas)

Country/area of low-carbon energy consumption

Germany

Tracking instrument used

GO

Low-carbon energy consumed via selected sourcing method in the reporting year (MWh)
33879

Country/area of origin (generation) of the low-carbon energy or energy attribute

Germany

Commissioning year of the energy generation facility (e.g. date of first commercial
operation or repowering)

Comment

Sourcing method
Unbundled energy attribute certificates (EACs) purchase

Energy carrier
Electricity

Low-carbon technology type

Low-carbon energy mix, please specify (Solar, wind, hydroelectric, geothermal and biogas)

Country/area of low-carbon energy consumption

Brazil

Tracking instrument used

I-REC

Low-carbon energy consumed via selected sourcing method in the reporting year (MWh)
33167

Country/area of origin (generation) of the low-carbon energy or energy attribute

Brazil

https://www.cdp.net/en/formatted_responses/responses?campaign_id=79520704&discloser_id=942728&locale=en&organization_name=Inditex&organizat… 103/142
5/4/23, 6:21 PM CDP

Commissioning year of the energy generation facility (e.g. date of first commercial
operation or repowering)  WD

Comment

Sourcing method
Unbundled energy attribute certificates (EACs) purchase

Energy carrier
Electricity

Low-carbon technology type

Low-carbon energy mix, please specify (Solar, wind, hydroelectric, geothermal and biogas)

Country/area of low-carbon energy consumption

Romania

Tracking instrument used

GO

Low-carbon energy consumed via selected sourcing method in the reporting year (MWh)
30387

Country/area of origin (generation) of the low-carbon energy or energy attribute

Bulgaria

Commissioning year of the energy generation facility (e.g. date of first commercial
operation or repowering)

Comment

Sourcing method
Unbundled energy attribute certificates (EACs) purchase

Energy carrier
Electricity

Low-carbon technology type

Low-carbon energy mix, please specify (Solar, wind, hydroelectric, geothermal and biogas)

Country/area of low-carbon energy consumption

Belgium

Tracking instrument used

GO

Low-carbon energy consumed via selected sourcing method in the reporting year (MWh)
20715

Country/area of origin (generation) of the low-carbon energy or energy attribute

Belgium

Commissioning year of the energy generation facility (e.g. date of first commercial
operation or repowering)
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5/4/23, 6:21 PM CDP

Comment
 WD

Sourcing method
Unbundled energy attribute certificates (EACs) purchase

Energy carrier
Electricity

Low-carbon technology type

Low-carbon energy mix, please specify (Solar, wind, hydroelectric, geothermal and biogas)

Country/area of low-carbon energy consumption

Canada

Tracking instrument used

GO

Low-carbon energy consumed via selected sourcing method in the reporting year (MWh)
16139

Country/area of origin (generation) of the low-carbon energy or energy attribute

Canada

Commissioning year of the energy generation facility (e.g. date of first commercial
operation or repowering)

Comment

Sourcing method
Unbundled energy attribute certificates (EACs) purchase

Energy carrier
Electricity

Low-carbon technology type

Low-carbon energy mix, please specify (Solar, wind, hydroelectric, geothermal and biogas)

Country/area of low-carbon energy consumption

Ukraine

Tracking instrument used

GO

Low-carbon energy consumed via selected sourcing method in the reporting year (MWh)
15286

Country/area of origin (generation) of the low-carbon energy or energy attribute

Bulgaria

Commissioning year of the energy generation facility (e.g. date of first commercial
operation or repowering)

Comment

https://www.cdp.net/en/formatted_responses/responses?campaign_id=79520704&discloser_id=942728&locale=en&organization_name=Inditex&organizat… 105/142
5/4/23, 6:21 PM CDP

Sourcing method
Unbundled energy attribute certificates (EACs) purchase  WD

Energy carrier
Electricity

Low-carbon technology type

Low-carbon energy mix, please specify (Solar, wind, hydroelectric, geothermal and biogas)

Country/area of low-carbon energy consumption

Japan

Tracking instrument used

NFC – Renewable

Low-carbon energy consumed via selected sourcing method in the reporting year (MWh)
14749

Country/area of origin (generation) of the low-carbon energy or energy attribute

Japan

Commissioning year of the energy generation facility (e.g. date of first commercial
operation or repowering)

Comment

Sourcing method
Unbundled energy attribute certificates (EACs) purchase

Energy carrier
Electricity

Low-carbon technology type

Low-carbon energy mix, please specify (Solar, wind, hydroelectric, geothermal and biogas)

Country/area of low-carbon energy consumption

Switzerland

Tracking instrument used

GO

Low-carbon energy consumed via selected sourcing method in the reporting year (MWh)
13478

Country/area of origin (generation) of the low-carbon energy or energy attribute

Italy

Commissioning year of the energy generation facility (e.g. date of first commercial
operation or repowering)

Comment

Sourcing method
Unbundled energy attribute certificates (EACs) purchase
https://www.cdp.net/en/formatted_responses/responses?campaign_id=79520704&discloser_id=942728&locale=en&organization_name=Inditex&organizat… 106/142
5/4/23, 6:21 PM CDP

Energy carrier
Electricity
 WD


Low-carbon technology type

Low-carbon energy mix, please specify (Solar, wind, hydroelectric, geothermal and biogas)

Country/area of low-carbon energy consumption

Serbia

Tracking instrument used

GO

Low-carbon energy consumed via selected sourcing method in the reporting year (MWh)
12808

Country/area of origin (generation) of the low-carbon energy or energy attribute

Bulgaria

Commissioning year of the energy generation facility (e.g. date of first commercial
operation or repowering)

Comment

Sourcing method
Unbundled energy attribute certificates (EACs) purchase

Energy carrier
Electricity

Low-carbon technology type

Low-carbon energy mix, please specify (Solar, wind, hydroelectric, geothermal and biogas)

Country/area of low-carbon energy consumption

Croatia

Tracking instrument used

GO

Low-carbon energy consumed via selected sourcing method in the reporting year (MWh)
11691

Country/area of origin (generation) of the low-carbon energy or energy attribute

Bulgaria

Commissioning year of the energy generation facility (e.g. date of first commercial
operation or repowering)

Comment

Sourcing method
Unbundled energy attribute certificates (EACs) purchase

Energy carrier

https://www.cdp.net/en/formatted_responses/responses?campaign_id=79520704&discloser_id=942728&locale=en&organization_name=Inditex&organizat… 107/142
5/4/23, 6:21 PM CDP

Electricity

Low-carbon technology type

 WD

Low-carbon energy mix, please specify (Solar, wind, hydroelectric, geothermal and biogas)

Country/area of low-carbon energy consumption

India

Tracking instrument used

I-REC

Low-carbon energy consumed via selected sourcing method in the reporting year (MWh)
11130

Country/area of origin (generation) of the low-carbon energy or energy attribute

India

Commissioning year of the energy generation facility (e.g. date of first commercial
operation or repowering)

Comment

Sourcing method
Unbundled energy attribute certificates (EACs) purchase

Energy carrier
Electricity

Low-carbon technology type

Low-carbon energy mix, please specify (Solar, wind, hydroelectric, geothermal and biogas)

Country/area of low-carbon energy consumption

Hungary

Tracking instrument used

GO

Low-carbon energy consumed via selected sourcing method in the reporting year (MWh)
9889

Country/area of origin (generation) of the low-carbon energy or energy attribute

Bulgaria

Commissioning year of the energy generation facility (e.g. date of first commercial
operation or repowering)

Comment

Sourcing method
Unbundled energy attribute certificates (EACs) purchase

Energy carrier
Electricity

https://www.cdp.net/en/formatted_responses/responses?campaign_id=79520704&discloser_id=942728&locale=en&organization_name=Inditex&organizat… 108/142
5/4/23, 6:21 PM CDP

Low-carbon technology type

WD
Low-carbon energy mix, please specify (Solar, wind, hydroelectric, geothermal andbiogas) 
Country/area of low-carbon energy consumption
Bulgaria

Tracking instrument used

GO

Low-carbon energy consumed via selected sourcing method in the reporting year (MWh)
8005

Country/area of origin (generation) of the low-carbon energy or energy attribute

Bulgaria

Commissioning year of the energy generation facility (e.g. date of first commercial
operation or repowering)

Comment

Sourcing method
Unbundled energy attribute certificates (EACs) purchase

Energy carrier
Electricity

Low-carbon technology type

Low-carbon energy mix, please specify (Solar, wind, hydroelectric, geothermal and biogas)

Country/area of low-carbon energy consumption

Austria

Tracking instrument used

GO

Low-carbon energy consumed via selected sourcing method in the reporting year (MWh)
7595

Country/area of origin (generation) of the low-carbon energy or energy attribute

Bulgaria

Commissioning year of the energy generation facility (e.g. date of first commercial
operation or repowering)

Comment

Sourcing method
Unbundled energy attribute certificates (EACs) purchase

Energy carrier
Electricity

Low-carbon technology type

Low-carbon energy mix, please specify (Solar, wind, hydroelectric, geothermal and biogas)
https://www.cdp.net/en/formatted_responses/responses?campaign_id=79520704&discloser_id=942728&locale=en&organization_name=Inditex&organizat… 109/142
5/4/23, 6:21 PM CDP

Country/area of low-carbon energy consumption

Hong Kong SAR, China
 WD


Tracking instrument used

I-REC

Low-carbon energy consumed via selected sourcing method in the reporting year (MWh)
7117

Country/area of origin (generation) of the low-carbon energy or energy attribute

China

Commissioning year of the energy generation facility (e.g. date of first commercial
operation or repowering)

Comment

Sourcing method
Unbundled energy attribute certificates (EACs) purchase

Energy carrier
Electricity

Low-carbon technology type

Low-carbon energy mix, please specify (Solar, wind, hydroelectric, geothermal and biogas)

Country/area of low-carbon energy consumption

Ireland

Tracking instrument used

GO

Low-carbon energy consumed via selected sourcing method in the reporting year (MWh)
7066

Country/area of origin (generation) of the low-carbon energy or energy attribute

Ireland

Commissioning year of the energy generation facility (e.g. date of first commercial
operation or repowering)

Comment

Sourcing method
Unbundled energy attribute certificates (EACs) purchase

Energy carrier
Electricity

Low-carbon technology type

Low-carbon energy mix, please specify (Solar, wind, hydroelectric, geothermal and biogas)

Country/area of low-carbon energy consumption

https://www.cdp.net/en/formatted_responses/responses?campaign_id=79520704&discloser_id=942728&locale=en&organization_name=Inditex&organizat… 110/142
5/4/23, 6:21 PM CDP

Argentina

Tracking instrument used

 WD

I-REC

Low-carbon energy consumed via selected sourcing method in the reporting year (MWh)
6746

Country/area of origin (generation) of the low-carbon energy or energy attribute

Argentina

Commissioning year of the energy generation facility (e.g. date of first commercial
operation or repowering)

Comment

Sourcing method
Unbundled energy attribute certificates (EACs) purchase

Energy carrier
Electricity

Low-carbon technology type

Low-carbon energy mix, please specify (Solar, wind, hydroelectric, geothermal and biogas)

Country/area of low-carbon energy consumption

Sweden

Tracking instrument used

GO

Low-carbon energy consumed via selected sourcing method in the reporting year (MWh)
5612

Country/area of origin (generation) of the low-carbon energy or energy attribute

Bulgaria

Commissioning year of the energy generation facility (e.g. date of first commercial
operation or repowering)

Comment

Sourcing method
Unbundled energy attribute certificates (EACs) purchase

Energy carrier
Electricity

Low-carbon technology type

Low-carbon energy mix, please specify (Solar, wind, hydroelectric, geothermal and biogas)

Country/area of low-carbon energy consumption

Chile

https://www.cdp.net/en/formatted_responses/responses?campaign_id=79520704&discloser_id=942728&locale=en&organization_name=Inditex&organizati… 111/142
5/4/23, 6:21 PM CDP

Tracking instrument used

I-REC  WD

Low-carbon energy consumed via selected sourcing method in the reporting year (MWh)
5467

Country/area of origin (generation) of the low-carbon energy or energy attribute

Chile

Commissioning year of the energy generation facility (e.g. date of first commercial
operation or repowering)

Comment

Sourcing method
Unbundled energy attribute certificates (EACs) purchase

Energy carrier
Electricity

Low-carbon technology type

Low-carbon energy mix, please specify (Solar, wind, hydroelectric, geothermal and biogas)

Country/area of low-carbon energy consumption

Norway

Tracking instrument used

GO

Low-carbon energy consumed via selected sourcing method in the reporting year (MWh)
5399

Country/area of origin (generation) of the low-carbon energy or energy attribute

Bulgaria

Commissioning year of the energy generation facility (e.g. date of first commercial
operation or repowering)

Comment

Sourcing method
Unbundled energy attribute certificates (EACs) purchase

Energy carrier
Electricity

Low-carbon technology type

Low-carbon energy mix, please specify (Solar, wind, hydroelectric, geothermal and biogas)

Country/area of low-carbon energy consumption

Kazakhstan

Tracking instrument used

I-REC
https://www.cdp.net/en/formatted_responses/responses?campaign_id=79520704&discloser_id=942728&locale=en&organization_name=Inditex&organizat… 112/142
5/4/23, 6:21 PM CDP

Low-carbon energy consumed via selected sourcing method in the reporting year(MWh)
5305
WD


Country/area of origin (generation) of the low-carbon energy or energy attribute

China

Commissioning year of the energy generation facility (e.g. date of first commercial
operation or repowering)

Comment

Sourcing method
Unbundled energy attribute certificates (EACs) purchase

Energy carrier
Electricity

Low-carbon technology type

Low-carbon energy mix, please specify (Solar, wind, hydroelectric, geothermal and biogas)

Country/area of low-carbon energy consumption

Slovakia

Tracking instrument used

GO

Low-carbon energy consumed via selected sourcing method in the reporting year (MWh)
4876

Country/area of origin (generation) of the low-carbon energy or energy attribute

Bulgaria

Commissioning year of the energy generation facility (e.g. date of first commercial
operation or repowering)

Comment

Sourcing method
Unbundled energy attribute certificates (EACs) purchase

Energy carrier
Electricity

Low-carbon technology type

Low-carbon energy mix, please specify (Solar, wind, hydroelectric, geothermal and biogas)

Country/area of low-carbon energy consumption

Czechia

Tracking instrument used

GO

Low-carbon energy consumed via selected sourcing method in the reporting year (MWh)

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4109

Country/area of origin (generation) of the low-carbon energy or energy attribute

 WD

Bulgaria

Commissioning year of the energy generation facility (e.g. date of first commercial
operation or repowering)

Comment

Sourcing method
Unbundled energy attribute certificates (EACs) purchase

Energy carrier
Electricity

Low-carbon technology type

Low-carbon energy mix, please specify (Solar, wind, hydroelectric, geothermal and biogas)

Country/area of low-carbon energy consumption

Belarus

Tracking instrument used

GO

Low-carbon energy consumed via selected sourcing method in the reporting year (MWh)
3835

Country/area of origin (generation) of the low-carbon energy or energy attribute

Bulgaria

Commissioning year of the energy generation facility (e.g. date of first commercial
operation or repowering)

Comment

Sourcing method
Unbundled energy attribute certificates (EACs) purchase

Energy carrier
Electricity

Low-carbon technology type

Low-carbon energy mix, please specify (Solar, wind, hydroelectric, geothermal and biogas)

Country/area of low-carbon energy consumption

Bosnia & Herzegovina

Tracking instrument used

GO

Low-carbon energy consumed via selected sourcing method in the reporting year (MWh)
3691

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Country/area of origin (generation) of the low-carbon energy or energy attribute

Bulgaria  WD

Commissioning year of the energy generation facility (e.g. date of first commercial
operation or repowering)

Comment

Sourcing method
Unbundled energy attribute certificates (EACs) purchase

Energy carrier
Electricity

Low-carbon technology type

Low-carbon energy mix, please specify (Solar, wind, hydroelectric, geothermal and biogas)

Country/area of low-carbon energy consumption

Finland

Tracking instrument used

GO

Low-carbon energy consumed via selected sourcing method in the reporting year (MWh)
3553

Country/area of origin (generation) of the low-carbon energy or energy attribute

Bulgaria

Commissioning year of the energy generation facility (e.g. date of first commercial
operation or repowering)

Comment

Sourcing method
Unbundled energy attribute certificates (EACs) purchase

Energy carrier
Electricity

Low-carbon technology type

Low-carbon energy mix, please specify (Solar, wind, hydroelectric, geothermal and biogas)

Country/area of low-carbon energy consumption

Denmark

Tracking instrument used

GO

Low-carbon energy consumed via selected sourcing method in the reporting year (MWh)
2994

Country/area of origin (generation) of the low-carbon energy or energy attribute

Bulgaria
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Commissioning year of the energy generation facility (e.g. date of first commercial
operation or repowering)
 WD


Comment

Sourcing method
Unbundled energy attribute certificates (EACs) purchase

Energy carrier
Electricity

Low-carbon technology type

Low-carbon energy mix, please specify (Solar, wind, hydroelectric, geothermal and biogas)

Country/area of low-carbon energy consumption

Uruguay

Tracking instrument used

Other, please specify (100% of the country's generation is renewable )

Low-carbon energy consumed via selected sourcing method in the reporting year (MWh)
2274

Country/area of origin (generation) of the low-carbon energy or energy attribute

Uruguay

Commissioning year of the energy generation facility (e.g. date of first commercial
operation or repowering)

Comment

Sourcing method
Unbundled energy attribute certificates (EACs) purchase

Energy carrier
Electricity

Low-carbon technology type

Low-carbon energy mix, please specify (Solar, wind, hydroelectric, geothermal and biogas)

Country/area of low-carbon energy consumption

Luxembourg

Tracking instrument used

GO

Low-carbon energy consumed via selected sourcing method in the reporting year (MWh)
2161

Country/area of origin (generation) of the low-carbon energy or energy attribute

Bulgaria

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Commissioning year of the energy generation facility (e.g. date of first commercial
operation or repowering)  WD

Comment

Sourcing method
Unbundled energy attribute certificates (EACs) purchase

Energy carrier
Electricity

Low-carbon technology type

Low-carbon energy mix, please specify (Solar, wind, hydroelectric, geothermal and biogas)

Country/area of low-carbon energy consumption

China, Macao Special Administrative Region

Tracking instrument used

I-REC

Low-carbon energy consumed via selected sourcing method in the reporting year (MWh)
965

Country/area of origin (generation) of the low-carbon energy or energy attribute

China

Commissioning year of the energy generation facility (e.g. date of first commercial
operation or repowering)

Comment

Sourcing method
Unbundled energy attribute certificates (EACs) purchase

Energy carrier
Electricity

Low-carbon technology type

Low-carbon energy mix, please specify (Solar, wind, hydroelectric, geothermal and biogas)

Country/area of low-carbon energy consumption

New Zealand

Tracking instrument used

Other, please specify (NZECs)

Low-carbon energy consumed via selected sourcing method in the reporting year (MWh)
726

Country/area of origin (generation) of the low-carbon energy or energy attribute

New Zealand

Commissioning year of the energy generation facility (e.g. date of first commercial
operation or repowering)
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Comment
 WD


C8.2g

(C8.2g) Provide a breakdown of your non-fuel energy consumption by country.

Country/area
Spain

Consumption of electricity (MWh)

459463

Consumption of heat, steam, and cooling (MWh)

10051

Total non-fuel energy consumption (MWh) [Auto-calculated]

469514

Is this consumption excluded from your RE100 commitment?

<Not Applicable>

Country/area
Other, please specify (Rest of the world)

Consumption of electricity (MWh)

1228346

Consumption of heat, steam, and cooling (MWh)

0

Total non-fuel energy consumption (MWh) [Auto-calculated]

1228346

Is this consumption excluded from your RE100 commitment?

<Not Applicable>

C9. Additional metrics

C9.1

(C9.1) Provide any additional climate-related metrics relevant to your business.

Description
Waste
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Metric value
20397417
 WD


Metric numerator
Kg of waste

Metric denominator (intensity metric only)

Revenue in 2021: 27,732,078,678 €

% change from previous year

19

Direction of change
Decreased

Please explain
At Inditex, we seek innovative solutions to implement circular economy initiatives with
which to minimize the negative impacts of our activity.

The Group is committed to achieve zero waste from our own facilities (headquarters, lo‐
gistics centres, factories and stores) by 2023. In this context, and as a result of the
Group’s efforts, our intensity waste figure (kg waste / revenue) has decreased this year by
19% compared to 2020.

One of Inditex’s most noteworthy initiatives in place in this area is our Zero Waste pro‐
gramme which integrates the concept of circular economy in our business model.
It is designed for the recovery of waste generated at our facilities, through correct sorting
and collection, before subsequent recycling by legally authorized managers. The correct
sorting of waste at our facilities is a task that is crucial to the programme, as it becomes
a new resource for developing new products. During 2021, 93.39% of our hazardous and
non-hazardous waste (headquarters, logistics centres and own factories) was sent for re‐
use and recycling via the aforementioned circuits, thus preventing the use of virgin raw
materials.

We also carry out different projects aimed at reducing the environmental impact at the
end of life of our products:
- Closing the Loop is our voluntary programme for the collection of products at the end of
their useful life. In 2021, 16,072 tonnes of garments were collected through this pro‐
gramme.
- Green to Pack is a programme aimed at introducing as many recycled materials as possi‐
ble into packaging. We have committed to 100% collection of all packaging materials for
recycling or reuse in the supply chain by 2023.
Our work through this program has enabled us to continue enhancing the quality of the
cardboard boxes that transport our garments, prioritising the use of recycled materials
and extending their useful life. They now contain 75% of recycled cardboard sourced from
the market and can be used up to five times before being sent again for recycling.

Regarding plastics, we have committed to eliminate single-use plastics to customers by

2023. In 2020 we transitioned from plastic bags to paper bags in stores and eliminated

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plastic from online orders and in 2021 we began to charge for those paper bags in some
markets, WD
ets further allocating the equivalent amount collected to environmental initiatives.



C10. Verification

C10.1

(C10.1) Indicate the verification/assurance status that applies to your reported emissions.

Verification/assurance status

Scope 1 Third-party verification or assurance process in place

Scope 2 (location-based or market-based) Third-party verification or assurance process in place

Scope 3 Third-party verification or assurance process in place

C10.1a

(C10.1a) Provide further details of the verification/assurance undertaken for your Scope 1
emissions, and attach the relevant statements.

Verification or assurance cycle in place

Annual process

Status in the current reporting year

Complete

Type of verification or assurance

Limited assurance

Attach the statement

statement-of-non-financial-information-2021.pdf
Informe GHG Inditex 2021 (firmado).pdf

Page/ section reference

- Greenhouse Gas Statement FY2021: all pages.
- Independent Verification Report 2021: pages 384, 409-411 of Inditex’s Statement on Non-
Financial Information 2021.

Relevant standard
ISAE 3410

Proportion of reported emissions verified (%)

100

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 WD

C10.1b

(C10.1b) Provide further details of the verification/assurance undertaken for your Scope 2
emissions and attach the relevant statements.

Scope 2 approach
Scope 2 location-based

Verification or assurance cycle in place

Annual process

Status in the current reporting year

Complete

Type of verification or assurance

Limited assurance

Attach the statement

statement-of-non-financial-information-2021.pdf
Informe GHG Inditex 2021 (firmado).pdf

Page/ section reference

- Greenhouse Gas Statement FY2021: all pages.

- Independent Verification Report 2021: pages 384, 409-411 of Inditex’s Statement on Non-
Financial Information 2021.

Relevant standard
ISAE 3410

Proportion of reported emissions verified (%)

100

Scope 2 approach
Scope 2 market-based

Verification or assurance cycle in place

Annual process

Status in the current reporting year

Complete

Type of verification or assurance

Limited assurance

Attach the statement

statement-of-non-financial-information-2021.pdf
Informe GHG Inditex 2021 (firmado).pdf

Page/ section reference

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- Greenhouse Gas Statement FY2021: all pages.

 WD

- Independent Verification Report 2021: pages 384, 409-411 of Inditex’s Statement on Non-
Financial Information 2021.

Relevant standard
ISAE 3410

Proportion of reported emissions verified (%)

100

C10.1c

(C10.1c) Provide further details of the verification/assurance undertaken for your Scope 3
emissions and attach the relevant statements.

Scope 3 category
Scope 3: Purchased goods and services
Scope 3: Capital goods
Scope 3: Fuel and energy-related activities (not included in Scopes 1 or 2)
Scope 3: Upstream transportation and distribution
Scope 3: Waste generated in operations
Scope 3: Business travel
Scope 3: Employee commuting
Scope 3: Investments
Scope 3: Use of sold products
Scope 3: End-of-life treatment of sold products
Scope 3: Franchises

Verification or assurance cycle in place

Annual process

Status in the current reporting year

Complete

Type of verification or assurance

Limited assurance

Attach the statement

statement-of-non-financial-information-2021.pdf
Informe GHG Inditex 2021 (firmado).pdf

Page/section reference
- Greenhouse Gas Statement FY2021: all pages.

- Independent Verification Report 2021: pages 384, 409-411 of Inditex’s Statement on Non-
Financial Information 2021.

Relevant standard
ISAE 3410
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Proportion of reported emissions verified (%)

100
 WD


C10.2

(C10.2) Do you verify any climate-related information reported in your CDP disclosure other
than the emissions figures reported in C6.1, C6.3, and C6.5?
Yes

C10.2a

(C10.2a) Which data points within your CDP disclosure have been verified, and which
verification standards were used?

Disclosure Data verified Verification standard Please explain

module
verification
relates to

C6. Emissions Year on year ISAE 3410. Deloitte conducted their limited assurance en‐ Scope 1 emissions
data change in gagement in accordance with International Standards on for FY2021, year on
emissions Assurance Engagements on Greenhouse Gas Statements year change and
(Scope 1) (ISAE 3410) issued by the International Auditing and historic data have
Assurance Standard Board (IAASB) of the International been third party ver‐
Federation of Accountants (IFAC) which requires that ified.
Deloitte plans and performs this engagement to obtain
limited assurance about whether the GHG Statement is - Statement on Non-
free from material misstatements. As such, Deloitte Financial
planned and performed their examination in order to pro‐ Information 2021,
vide limited assurance. pages 384, 409-411.

Furthermore, in accordance with the Article 49 of the - Greenhouse Gas

Spanish Commercial Code, Deloitte has performed the Statement 2021, all
verification, with a scope of limited assurance of our pages.
Consolidated Non-Financial Information Statement for
the year ended 31 January 2022. This work was conduct‐
ed in accordance with ISAE 3000 issued by the IAASB.

C6. Emissions Year on year ISAE 3410. Deloitte conducted their limited assurance en‐ Scope 2 emissions
data change in gagement in accordance with International Standards on for FY2021, year on
emissions Assurance Engagements on Greenhouse Gas Statements year change and
(Scope 2) (ISAE 3410) issued by the International Auditing and historic data have
Assurance Standard Board (IAASB) of the International been third party ver‐
Federation of Accountants (IFAC) which requires that ified.
Deloitte plans and performs this engagement to obtain
limited assurance about whether the GHG Statement is - Statement on Non-
free from material misstatements. As such, Deloitte Financial
planned and performed their examination in order to pro‐ Information 2021,
vide limited assurance. pages 409-411.

Furthermore, in accordance with the Article 49 of the - Greenhouse Gas

Spanish Commercial Code, Deloitte has performed the

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Disclosure Data verified Verification standard Please explain

module
verification
 WD

relates to
verification, with a scope of limited assurance of our Statement 2021, all
Consolidated Non-Financial Information Statement for pages.
the year ended 31 January 2022. This work was conduct‐
ed in accordance with ISAE 3000 issued by the IAASB.

C6. Emissions Year on year ISAE 3410. Deloitte conducted their limited assurance en‐ Scope 1 and Scope
data change in gagement in accordance with International Standards on 2 emissions for
emissions Assurance Engagements on Greenhouse Gas Statements FY2021, year on
(Scope 1 and 2) (ISAE 3410) issued by the International Auditing and year change and
Assurance Standard Board (IAASB) of the International historic data have
Federation of Accountants (IFAC) which requires that been third party ver‐
Deloitte plans and performs this engagement to obtain ified.
limited assurance about whether the GHG Statement is
free from material misstatements. As such, Deloitte - Statement on Non-
planned and performed their examination in order to pro‐ Financial
vide limited assurance. Information 2021,
pages 409-411.
Furthermore, in accordance with the Article 49 of the
Spanish Commercial Code, Deloitte has performed the - Greenhouse Gas
verification, with a scope of limited assurance of our Statement 2021, all
Consolidated Non-Financial Information Statement for pages.
the year ended 31 January 2022. This work was conduct‐
ed in accordance with ISAE 3000 issued by the IAASB.

C6. Emissions Year on year ISAE 3410. Deloitte conducted their limited assurance en‐ Scope 3 emissions
data change in gagement in accordance with International Standards on for FY2021, year on
emissions Assurance Engagements on Greenhouse Gas Statements year change and
(Scope 3) (ISAE 3410) issued by the International Auditing and historic data have
Assurance Standard Board (IAASB) of the International been third party ver‐
Federation of Accountants (IFAC) which requires that ified.
Deloitte plans and performs this engagement to obtain
limited assurance about whether the GHG Statement is - Statement on Non-
free from material misstatements. As such, Deloitte Financial
planned and performed their examination in order to pro‐ Information 2021,
vide limited assurance. pages 409-411.

- Greenhouse Gas
Statement 2021, all
pages.

C6. Emissions Year on year ISAE 3410. Deloitte conducted their limited assurance en‐ Emissions intensity
data emissions gagement in accordance with International Standards on for FY2021, year on
intensity figure Assurance Engagements on Greenhouse Gas Statements year change and
(ISAE 3410) issued by the International Auditing and historic data have
Assurance Standard Board (IAASB) of the International been third party ver‐
Federation of Accountants (IFAC) which requires that ified.
Deloitte plans and performs this engagement to obtain
limited assurance about whether the GHG Statement is - Statement on Non-
free from material misstatements. As such, Deloitte Financial
planned and performed their examination in order to pro‐ Information 2021,
vide limited assurance. pages 409-411.

- Greenhouse Gas
Statement 2021, all
pages.

C7. Emissions Emissions ISAE 3410 Emission reduction

breakdown reduction activities and data
activities stated at the annual
report have been

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Disclosure Data verified Verification standard Please explain

module
verification
 WD

relates to
third party verified,
for instance, renew‐
able energy genera‐
tion, ecoefficient
store savings, etc.

- Statement on Non-
Financial
Information 2021,
pages 409-411.

- Greenhouse Gas
Statement 2021, all
pages.

C4. Targets
ets Renewable ISAE 3410 Renewable energy
and energy products purchase and certifi‐
performance cations have been
third party verified.

- Greenhouse Gas
Statement 2021, all
pages.

C8. Energy Other, please ISAE 3410 Purchased renew‐

specify able energy con‐
(Renewable sumption against
energy from total energy con‐
total energy sumption for
consumed) FY2021 data have
been third party ver‐
ified.

- Greenhouse Gas
Statement 2021, all
pages.

C9. Additional Other, please ISAE 3000 Waste generated in‐

metrics specify (Waste dicators (amount
generated) and type of waste
generated) for
FY2021, year on
year change and
historic data have
been third party ver‐
ified.

- Statement on Non-
Financial
Information 2021,
pages 409-411.

C11. Carbon pricing

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 WD

C11.1

(C11.1) Are any of your operations or activities regulated by a carbon pricing system (i.e.
ETS, Cap & Trade or Carbon Tax)?
ETS
No, and we do not anticipate being regulated in the next three years

C11.2

(C11.2) Has your organization originated or purchased any project-based carbon credits
within the reporting period?
Yes

C11.2a

(C11.2a) Provide details of the project-based carbon credits originated or purchased by your
organization in the reporting period.

Credit origination or credit purchase

Credit purchase

Project type
Forests

Project identification
Rimba Raya Biodiversity Reserve Project
Project type: Nature-based Solutions | Forest Conservation (REDD+)
Project country: ID

Verified to which standard

VCS (Verified Carbon Standard)

Number of credits (metric tonnes CO2e)

17386.49

Number of credits (metric tonnes CO2e): Risk adjusted volume

17500

Credits cancelled
No

Purpose, e.g. compliance

Voluntary Offsetting

Credit origination or credit purchase

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Credit purchase

Project type
 WD

Forests

Project identification
Absorption projects based on the Restoration Plan for degraded forests executed by AFG
(Asociación Forestal de Galicia)
Project type: Afforestation on degraded lands
Project country: ES

Verified to which standard

Other, please specify (Ministry for the Ecological Transition and the Demographic
challenge (MITECO))

Number of credits (metric tonnes CO2e)

34693.51

Number of credits (metric tonnes CO2e): Risk adjusted volume

34920

Credits cancelled
No

Purpose, e.g. compliance

Voluntary Offsetting

C11.3

(C11.3) Does your organization use an internal price on carbon?

No, but we anticipate doing so in the next two years

C12. Engagement

C12.1

(C12.1) Do you engage with your value chain on climate-related issues?

Yes, our suppliers
Yes, our customers/clients
Yes, other partners in the value chain

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 WD

C12.1a

(C12.1a) Provide details of your climate-related supplier engagement strategy.

Type of engagement
Engagement & incentivization (changing supplier behavior)

Details of engagement
Run an engagement campaign to educate suppliers about climate change

% of suppliers by number
77

% total procurement spend (direct and indirect)

47

% of supplier-related Scope 3 emissions as reported in C6.5

18.8

Rationale for the coverage of your engagement

Our supplier engagement strategy is articulated around our Green to Wear (GtW) standard
and our Join Life label. This engagement with our suppliers is a core pillar to continuing
progressing towards our Sustainability Roadmap targets
ets and SBTs.
As wet processes have a higher environmental impact (higher energy intensity, water con‐
sumption, etc.) we engage and work together with our wet processing suppliers to im‐
prove their environmental performance through the GtW standard, which also incorpo‐
rates the management of chemical substances. This engagement is key as it helps min‐
imise the environmental impact.

In 2021, the % of suppliers engaged accounts for 77% of wet process suppliers, since pro‐
cesses of these characteristics represent a key step in the supply chain to help minimise
the environmental impact. A fundamental part of the GtW standard is the use of our The
List programme, key to correctly selecting the chemicals used and ensuring the absence
of hazardous substances in emissions to the environment. External verification of compli‐
ance with the GtW standard is regularly assessed using environmental audits on suppliers
and factories that carried out wet processes. This assessment enables us to collect cli‐
mate related KPIs (GHG emissions, etc.) on a periodic basis.

In 2021, 1,713 audits have been conducted under GtW standard. After identifying breach‐
es in environmental audits, Corrective Action Plans (CAP) were conducted to mitigate/ re‐
mediate them; or to prevent future breaches. During 2021, 583 environmental CAPs were
conducted, 171 of them were carried out in factories Subject to CAP, and 412 in factories
with other ratings.

Moreover, we have trained our supply chain and strengthen the philosophy of continuous
improvement. One of our core supply chain management goals is to engage in ongoing
collaboration and support with our suppliers and to cooperate with them to improve their
supply chains. Thus, we train our suppliers, support them in the application of our stan‐
dards and requirements, and work jointly with them towards ongoing improvement. We

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are even developing pilot projects in which we analyse our supply chain’s will and need for
technical assistance, to achieve the sustainability goals set at Inditex, and we seek WD
 to ac‐

company our suppliers with technical support to achieve these goals and facilitate access
to sustainable financing.

Impact of engagement, including measures of success

To measure the success of our engagement with wet processing suppliers, we are using
several KPIs: nº of suppliers involved in our programs, % of procurement volume, emission
gross and intensity figures, nº of training provided, nº of correction action plans in place,
presence/absence of suppliers and subcontractors in public tools for denouncing legisla‐
tive non-compliance (i.e., IPE platform in China). For instance, regarding the health and
safety of our products, we are convinced that training our supply chain suppliers who car‐
ry out wet processes involving chemicals is key, not only to achieve product conformity,
but also as a way to curb environmental impact, in line with our commitment of Zero
Discharge (ZDHC).
We work with our suppliers to publish the results of wastewater analyses—obtained from
the Green to Wear audits—on the ZDHC Gateway platform. In this context and as measure
of success and result of our efforts, the % of suppliers and factories meeting
Foundational level of ZDHC has increased in 2021: 87% of the suppliers and 90% of the
factories under the scope of our GtW environmental standard, meet the Foundational level
of ZDHC in its direct discharges (in 2020, 75% and 86%, respectively).

As an example of positive outcomes, this engagement and improved performance over

the years has resulted in a more environmentally aware supply chain, which as a result
helps the Group advance towards our commitments in emissions (scope 3), water, etc. in
the supply chain.

Comment
Through the Green to Wear programme, we favour environmentally sustainable behaviour
in the supply chain, promoting good manufacturing practices, the efficiency of resources,
etc. thus favourably impacting the fight against climate change.

C12.1b

(C12.1b) Give details of your climate-related engagement strategy with your customers.

Type of engagement & Details of engagement

Collaboration & innovation Run a campaign to encourage innovation to reduce climate change impacts

% of customers by number
100

% of customer - related Scope 3 emissions as reported in C6.5

1.4

Please explain the rationale for selecting this group of customers and scope of
engagement

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At Inditex we have designed a voluntary programme for the collection of products at the
end of their useful life, which we call Closing the Loop. As a global fashion retail group
 WD
op‐ 
erating in over 200 markets
ets worldwide and in both hemispheres, we have designed this
programme to offer all our customers the best channel to close the loop of textile prod‐
ucts, footwear and accessories, so that they do not end up in a landfill and can be reused
or recycled in the best possible way. The service is available for the customer to donate
either in physical store, through street containers, or at home by means of our free door-
to-door collection programme (available in Spain and cities in 4 international markets).
ets
Since 2015, over 78,500 tons of garments, footwear and accessories have been donated.

Sustainability is one of the company’s key strategic pillar, which entails collaboration to
have a positive impact. In this context, the programme addresses one significant chal‐
lenge of the textile industry and customers play a key role in this transformation to a cir‐
cular economy.

In 2020 we achieved our target of rolling out this programme in all markets
ets and all stores
where we operate, and in 2021 efforts are focused primarily on consolidating the pro‐
gramme and strengthening the training of all store personnel.

Impact of engagement, including measures of success

To measure the success of our engagement with customers, we are using several KPIs: nº
of website visits in the product use section, nº of consults from costumers in this regard,
nº of products with more sustainable fibres, tonnes of donated textiles, scope 3 savings.
This programme could help allow the achievement of goals set by the Group, such as the
reduction of water consumption in the supply chain, all cotton from more sustainable
sources (e.g., recycled), etc.

An important milestone with regard to this programme was achieving in 2020 our commit‐
ment of used clothing containers in 100% of our stores. This has served as an important
measure of success of the programme, as well as our KPI regarding the number of gar‐
ments collected through this programme (donated textiles). In this context, in 2021 we
have collected 16,072 garments, around 3,000 more than in 2020 (13,043 tonnes) which
evidences the efforts and progress made throughout the year.

In our Closing the Loop programme customer engagement plays a key role, as it is thanks
to the garments they donate that a second life could be given to them or be recycled when
they can no longer be reused. Inditex works with non-profit organisations and specialist
third parties in each market where we have a commercial presence. For instance, in Spain,
we work with the social organisation Cáritas, to enable the collection of garments by
means of containers located in the streets
ets of a number of cities, 100% funded by Inditex.
Currently there are a total of 2,446 on-street containers placed in Spain through which our
customers can donate any garment.

As an example of positive outcomes, it should be highlighted the number of employments

generated and the beneficiaries of the non-profit organizations.

C12.1d
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(C12.1d) Give details of your climate-related engagement strategy with other partners in the
value chain.  WD

Other partners in the value chain:

EU Product Environmental Product (PEF) Pilot for Apparel and Footwear, Organic Cotton
Accelerator (OCA), Textile Exchange (TE), Better Cotton Initiative (BCI), Canopy Planet, CEO
Water Mandate, Massachusetts Insitute of Technology (MIT), The Institute of Public &
Environmental Affairs (IPE), China Environmental Protection Foundation, Fashion Industry
Charter for Climate Action (FICCA), Fashion Pact, Global Fashion Agenda, the Sustainable
Apparel Coalition (SAC), Universities of Vigo and A Coruña, Clean Cargo, MIT Climate and
Sustainability Consortium (MCSC), Zero Discharge of Hazardous Chemicals (ZDHC), etc.

Strategy for prioritizing engagements:

Projects funded by our company are selected on a case-by-case basis taking into account
the Global Energy, Water and Biodiversity Strategy frameworks and the materiality analysis
where internal and external stakeholders concerns and expectations are reflected. Other val‐
ue chain partners are key external stakeholders and the dialogue with them is crucial to de‐
fine and prioritize strategy ensuring the sustainability of our business model. The
Sustainability Committee oversees and evaluates the processes of relations with the differ‐
ent stakeholders of the Company and its Group concerning climate change issues.
Moreover, the Committee also makes proposals aimed at improving the Company’s reputa‐
tion, the image of its different commercial brands, the transparency and the ethical stan‐
dards that guide the Group’s activity when establishing relationships with the different
stakeholders.

Then, engagements are prioritized depending on the relevance of the issue included in the
materiality matrix and if they are directly or indirectly affected by Inditex’s strategic opera‐
tions in areas where its goods are produced, distributed and marketed. Materiality matrix is
available at our Annual Report and our Statement on Non-Financial Information 2021.

Measures of success:

- Other partners

In this regard, we monitor several KPIs which are specific for each project. Some examples
are nº of projects carried out with each organization, investment in these projects, success
and different benefits obtained from the collaborations, etc.

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 WD

Study case:

We collaborate with renowned entities such as the Massachusetts Institute of Technology

(MIT) and Cáritas, among others, to advance in textile recycling processes and technologies
that help us meet our circular economy strategic goal. Also, during 2021, Inditex continued
for the fifth year running the programme to strengthen the management of the end of life of
textile products in partnership with Cáritas. This collaboration has allocated EUR 7 million
for the 2016 and 2022 period and has resulted already in the creation by Cáritas of the
“Moda-Re programme”.

In 2021, Inditex continued committed to the Massachusetts Institute of Technology and fig‐
ures as one of the founding members of January 2021 launched MIT Climate and
Sustainability Consortium (MCSC), an alliance of leaders from a broad range of industries
that aims to vastly accelerate the large-scale, real-world implementation of solutions to ad‐
dress the threat of climate change. It’s also worth highlighting the collaboration with the
Chinese Institute of Public and Environmental Affairs (IPE) in the improvement of environ‐
mental management in the China supply chain and the disclosure of the results of waste‐
water analyses on the IPE website. In 2021, the IPE ranked Inditex in its global ranking of
brands at fourth position in the textile sector (fifth globally).

Additionally, we and the Universities of Vigo–in collaboration with the University of

Clermont, France, the Basque Country, Granada–jointly with that of Hamburg, Germany–
and the Polytechnic University of Valencia have submitted projects to find new pioneering
methods for separating fibres and subsequent recycling.

Furthermore, this year Inditex has joined the LEAF Coalition, a global initiative which brings
together businesses and governments and has managed to mobilise over $1 billion in fi‐
nancing for the conservation of tropical and subtropical forests.

In 2021 Inditex joined the Board of the ZDHC (Zero Discharge of Hazardous Chemicals), with
whom we have been working for some time and whose objective is to achieve zero dis‐
charge of hazardous chemicals in the textile industry.

C12.2

(C12.2) Do your suppliers have to meet climate-related requirements as part of your

organization’s purchasing process?
Yes, climate-related requirements are included in our supplier contracts

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 WD

C12.2a

(C12.2a) Provide details of the climate-related requirements that suppliers have to meet as
part of your organization’s purchasing process and the compliance mechanisms in place.

Climate-related requirement
Complying with regulatory requirements

Description of this climate related requirement

Our Code of Conduct for Manufacturers and Suppliers defines minimum standards of ethi‐
cal and responsible behaviour that must be observed by all of the Group’s manufacturers
and suppliers throughout the supply chain, in accordance with Inditex. In fact, it is con‐
tained within the Inditex Minimum Requirements document, which includes the mandato‐
ry social, environmental and product health and safety requirements. In this context, com‐
pliance with all the standards provided in the Code of Conduct for Manufacturers and
Suppliers is a pre-requisite for a supplier or manufacturer to form part of Inditex’s supply
chain. All of our suppliers and manufacturers are audited against our Code of Conduct for
Manufacturers and Suppliers, which includes a section on environmental compliance.

Also, as stipulated in the Code of Conduct for Manufacturers and Suppliers, suppliers
must comply with local legislation.

% suppliers by procurement spend that have to comply with this climate-related

requirement
100

% suppliers by procurement spend in compliance with this climate-related requirement

98

Mechanisms for monitoring compliance with this climate-related requirement

On-site third-party verification

Response to supplier non-compliance with this climate-related requirement

Retain and engage

Climate-related requirement
Implementation of emissions reduction initiatives

Description of this climate related requirement

At Inditex our operations and actions are guided by a strategy of environmental sustain‐
ability based on control and improvement throughout our supply chain. In this context, we
count with our own environmental standard Green to Wear which aims to minimise the en‐
vironmental impact of wet process while promoting best practices.
Our Green to Wear standard is included in the Inditex Minimum Requirements document,
which includes the mandatory social, environmental and product health and safety re‐
quirements a supplier or manufacturer have to comply with in order to form part of
Inditex’s supply chain. Hence, all the suppliers and manufacturers in our supply chain that
perform wet processes are obliged to comply with this standard, and compliance is regu‐
larly verified through environmental audits. In 2021, 1,713 environmental audits were car‐

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ried out.
 WD

The % suppliers by procurement spend that have to comply with this climate-related re‐
quirement accounts for 20%, as it is specifically applicable only to those suppliers per‐
forming wet processes hence being those which entail higher environmental impact.

% suppliers by procurement spend that have to comply with this climate-related

requirement
20

% suppliers by procurement spend in compliance with this climate-related requirement

78

Mechanisms for monitoring compliance with this climate-related requirement

On-site third-party verification

Response to supplier non-compliance with this climate-related requirement

Retain and engage

C12.3

(C12.3) Does your organization engage in activities that could either directly or indirectly
influence policy, law, or regulation that may impact the climate?

Row 1

Direct or indirect engagement that could influence policy, law, or regulation that may
impact the climate
Yes, we engage directly with policy makers
Yes, we engage indirectly through trade associations

Does your organization have a public commitment or position statement to conduct your
engagement activities in line with the goals of the Paris Agreement?
Yes

Attach commitment or position statement(s)

We are signatories of several initiatives, for instance:

- The Fashion Industry Charter for Climate Action fostered by United Nations:
In 2021 we took part in the review of this partnership’s decarbonisation targets
ets to make
them more ambitious and consistent with the latest scientific evidence. The new goals
were unveiled at COP26 in Glasgow.

In the following link can be seen Inditex as one of the signatories of this engagement:
https://unfccc.int/climate-action/sectoral-engagement/global-climate-action-in-
fashion/fashion-industry-charter-for-climate-action/participants-in-the-fashion-industry-
charter-for-climate-action#eq-1

Moreover, attached you can find what signatories commit to.

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WD
- Uniting business and governments to recover better by the United Nations: Declaration


signed by more than 150 companies that collaborate with SBTi, including Inditex, to urge
governments worldwide to align their recovery efforts to combat the crisis caused by
covid-19 and work on economic aid in relation to the latest climate science.
In the following link can be seen Inditex as one of the signatories of this engagement:
https://unglobalcompact.org/take-action/recover-better-statement/uniting-business-and-
governments-to-recover-better

Moreover, we are signatories of other relevant initiatives or organizations. Attached you

can further information:
- We mean business coalition
- Race To Zero
- Business ambition for 1.5ºC by the United Nations
-The Fashion Pact
recover-better-statement.pdf
Industry Charter Fashion and Climate Action - 22102018.pdf

Describe the process(es) your organization has in place to ensure that your engagement
activities are consistent with your overall climate change strategy
Our engagement activities are selected on a case-by-case basis taking into account our
Global Energy, Water and Biodiversity Strategy frameworks, sustainability targets
ets (sus‐
tainability roadmap commitments, SBTs).

Other value chain partners are key external stakeholders and the dialogue with them is
crucial to define and prioritize the strategy ensuring the sustainability of our business
model. The Sustainability Committee oversees and evaluates the processes of relations
with the different stakeholders of the Company and its Group concerning climate change
issues. Moreover, the Committee also makes proposals aimed at improving the
Company’s reputation, the image of its different commercial brands, the transparency and
the ethical standards that guide the Group’s activity when establishing relationships with
the different stakeholders.

Primary reason for not engaging in activities that could directly or indirectly influence
policy, law, or regulation that may impact the climate
<Not Applicable>

Explain why your organization does not engage in activities that could directly or indirectly
influence policy, law, or regulation that may impact the climate
<Not Applicable>

C12.3a

(C12.3a) On what policy, law, or regulation that may impact the climate has your organization
been engaging directly with policy makers in the reporting year?

Focus of policy, law, or regulation that may impact the climate

Other, please specify (EU Product Environmental Footprint)

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Specify the policy, law, or regulation on which your organization is engaging with policy
makers  WD

The Product Environmental Footprint (PEF) European initiative of the European
Commission is aiming towards the development of a harmonised EU-wide methodology
for the calculation of the environmental footprint of products and comparability of its en‐
vironmental performance.

Policy, law, or regulation geographic coverage

Regional

Country/region the policy, law, or regulation applies to

Europe

Your organization’s position on the policy, law, or regulation

Support with no exceptions

Description of engagement with policy makers

EU Product Environmental Footprint. This European Commission work is aimed at devel‐
oping a shared methodology to calculate the environmental impact of clothing and
footwear, based on Life Cycle Analysis (LCA).

Convinced that a common methodology based on standard industry principles can help
accelerate the transition towards more sustainable products, at Inditex we have taken
part in the pilot edition of this programme as members of the Technical Secretariat, help‐
ing to define such a methodology and a simplified approach to Life Cycle Analysis.

In 2021, the secretariat submitted for public consultation the first version of the PEFCR
(Product Environmental Footprint Categories Rules), a document that includes specific
methodological rules for clothing and footwear products, for review by the European
Commission and the rest of the stakeholders.

A harmonized methodology to measure the environmental impacts of our products, in‐

cluding climate-related impacts, is the basis to GHG product accountability and consumer
transparency for more informed purchasing practices.

Details of exceptions (if applicable) and your organization’s proposed alternative

approach to the policy, law or regulation
<Not Applicable>

Have you evaluated whether your organization’s engagement is aligned with the goals of
the Paris Agreement?
Yes, we have evaluated, and it is aligned

C12.3b

(C12.3b) Provide details of the trade associations your organization engages with which are
likely to take a position on any policy, law or regulation that may impact the climate.

Trade association

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Other, please specify (Fashion Pact)

Is your organization’s position on climate change consistent with theirs?

 WD

Consistent

Has your organization influenced, or is your organization attempting to influence their

position?
We publicly promote their current position

State the trade association’s position on climate change, explain where your
organization’s position differs, and how you are attempting to influence their position (if
applicable)
We are co-founding partners of the Fashion Pact, and with other 70 leading fashion com‐
panies we set specific goals to tackle industry challenges. This initiative is a global coali‐
tion of companies in the fashion and textile industry including their suppliers and distribu‐
tors. It has been designed to stop climate change, protect the oceans and restore biodi‐
versity. Moreover, the Pact encourages the participation of member companies in other
complementary industry initiatives, supporting the development of accelerators to help
achieve the challenges ahead.

The Fashion Pact actively involved 14 leaders forming the CEO-led Steering Committee (of
which Inditex is part) actively driving 24 collective decisions since its founding.
Concerning climate change, one global target has been defined as “the implementation of
Science-Based Targets
ets for Climate to achieve net-zero by 2050”. And additional actions to
be developed have been settled:
- Ongoing implementation of principles of the UN Charter for Climate Action: by 2025
- 25% of our key raw materials are of lower climate impact
- By 2030: 100% renewable energy across our operation

In order to measure progress and steer actions towards impact, the Pact has established
a digital dashboard of KPIs around its three pillars, developed with the strategic reporting
support of the Boston Consulting Group (BCG). The fashion Pact was presented to Heads
of State at the G7 Summit in 2019 in Biarritz.

Funding figure your organization provided to this trade association in the reporting year, if
applicable (currency as selected in C0.4) (optional)

Describe the aim of your organization’s funding

<Not Applicable>

Have you evaluated whether your organization’s engagement with this trade association
is aligned with the goals of the Paris Agreement?
Yes, we have evaluated, and it is aligned

C12.4

(C12.4) Have you published information about your organization’s response to climate
change and GHG emissions performance for this reporting year in places other than in your
CDP response? If so, please attach the publication(s).
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Publication
In mainstream reports, incorporating the TCFD recommendations  WD

Status
Complete

Attach the document

statement-of-non-financial-information-2021.pdf

Page/Section reference
Pages 55, 165-199, 247- 269, 352-369, 381-384, 409-411

Content elements
Governance
Strategy
Risks & opportunities
Emissions figures
Emission targets
ets
Other metrics

Comment
In 2021 we continued to make progress in more closely adopting the recommendations of
the TCFD to provide even more detailed information on the risks and opportunities arising
from climate change.
In this regard, this year an even more comprehensive chapter on climate-related risks and
opportunities has been included in our 2021 Statement on Non-Financial Information (p.
352-369).

C15. Biodiversity

C15.1

(C15.1) Is there board-level oversight and/or executive management-level responsibility for

biodiversity-related issues within your organization?

Board-level oversight Description of oversight and objectives relating to biodiversity Scope of

and/or executive board-level
management-level oversight
responsibility for
biodiversity-related
issues

Row Yes, both board-level Board-level: <Not

1 oversight and executive Applicable>
management-level The Sustainability Committee is the delegate committee of the
responsibility Board of Directors, which is tasked with supervising stakeholder re‐
lations in the area of sustainability and reports to the Board of
Directors.
The Sustainability Committee is an information and consultation

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Board-level oversight Description of oversight and objectives relating to biodiversity Scope of

and/or executive
management-level
board-level
 WD
oversight

responsibility for
biodiversity-related
issues
body responsible for advising the Board of Directors on matters of
sustainability and overseeing and controlling sustainability propos‐
als in the human rights, social, environmental and health and safety
of our products aspects, as well as fostering the company’s commit‐
ment to the Sustainable Development Goals and steering relations
with the various stakeholders in these matters.

https://www.inditex.com/itxcomweb/api/media/f746012d-6238-
4fd3-81b9-f1a53221368e/inditex_sustainability_committee_regula‐
tions.pdf?t=1655305779885

The Inditex Biodiversity Strategy is included in the sustainability

strategy.

Executive-level:
The CEO is a member of the Board and the Executive Committee
and the CSO reports to him whenever required.
The Inditex Biodiversity Strategy is included in the sustainability
area.

C15.2

(C15.2) Has your organization made a public commitment and/or endorsed any initiatives
related to biodiversity?

Indicate whether your Biodiversity-related public commitments Initiatives endorsed

organization made a public
commitment or endorsed
any initiatives related to
biodiversity

Row Yes, we have made public Other, please specify (Support zero deforestation and Other, please specify
1 commitments and publicly sustainable forest management, urged governments (The Fashion Pact
endorsed initiatives related to adopt ambitious policies to reverse nature loss, Business for Nature
to biodiversity encourage cotton farmers to adopt a Biodiversity “call to action” Better
Management Plan that conserves biodiversity on and Cotton)
around their farm)

C15.3

(C15.3) Does your organization assess the impact of its value chain on biodiversity?

Does your organization assess the impact of its value chain on biodiversity? Portfolio

Row 1 No, but we plan to assess biodiversity-related impacts within the next two years <Not Applicable>

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 WD

C15.4

(C15.4) What actions has your organization taken in the reporting year to progress your
biodiversity-related commitments?

Have you taken any actions in the reporting period to progress Type of action taken to progress
your biodiversity-related commitments? biodiversity- related commitments

Row Yes, we are taking actions to progress our biodiversity-related Land/water protection
1 commitments

C15.5

(C15.5) Does your organization use biodiversity indicators to monitor performance across its
activities?

Does your organization Indicators used to monitor biodiversity performance

use indicators to monitor
biodiversity performance?

Row Yes, we use indicators Other, please specify (We are currently in the process of updating our
1 biodiversity strategy. At present, we work with different indicators to monitor
our biodiversity performance such as % of cotton/viscose/linen/polyester from
more sustainable sources.)

C15.6

(C15.6) Have you published information about your organization’s response to biodiversity-
related issues for this reporting year in places other than in your CDP response? If so, please
attach the publication(s).

Report type Content elements Attach the document and indicate where in the document the
relevant biodiversity information is located

In mainstream Content of biodiversity- Inditex’s Statement on Non-Financial Information 2021, included our
financial reports related policies or 2021 Annual Report, covers the Groups’ progress made throughout
commitments the fiscal year. The relevant biodiversity information is located in this
Governance document, pages 391-394.
Influence on public statement-of-non-financial-information-2021.pdf
policy and lobbying
Biodiversity strategy

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 WD

C16. Signoff

C-FI

(C-FI) Use this field to provide any additional information or context that you feel is relevant
to your organization's response. Please note that this field is optional and is not scored.

Please find more information in our 2021 Statement on Non-Financial Information (SNFI)
available at www.inditex.com

Direct link to the SNFI: https://static.inditex.com/annual_report_2021/en/documents/state‐

ment-of-non-financial-information-2021.pdf

C16.1

(C16.1) Provide details for the person that has signed off (approved) your CDP climate
change response.

Job title Corresponding job category

Row 1 Chief Operating Officer (COO) Chief Operating Officer (COO)

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