Inditex

Strengths of the climate strategy: Inditex has set ambitious GHG emission reduction targets, namely a 53% reduction in emissions between 2018 and 2030 (-95% on scopes 1 and 2 market-based, -51% on scope 3). This target has been approved by SBTi and aligned with a 1.5°C trajectory. An intermediate target has been set for 2027 (-20% across all scopes). The Group also has a Net Zero target by 2040, and has committed to reducing its emissions (scopes 1, 2 and 3) by 90% compared to 2018. In addition, the Group has set up a raw material traceability system and made commitments in terms of the integration of sustainable raw materials. A few initiatives in terms of repairability and extrinsic durability, notably via the Zara Pre-Owned platform, have been put in place. In terms of governance, Inditex's transition plan is public, detailed, and covers the entire value chain in the short and long term (until 2040). The Group has produced a scenario analysis and a risk and opportunity analysis aligned with the TCFD. In terms of value chain engagement, Inditex has a Supplier Code of Conduct and has produced a "Supply Chain Transformation Plan" that details the actions taken to engage suppliers over the next three years. Some initiatives have been noted: "Join Life" environmental labelling on products made from sustainable raw materials, marketing, elimination of plastic bags in all stores, etc. Inditex is working on the deployment of a low-carbon business model, with Zara Pre-Owned, which allows customer-to-customer sales, as well as product repair.

Areas for improvement in the transition plan: Inditex has only reduced its scope 3 emissions by 1% between 2018 and 2024. Since 99% of the group's emissions are concentrated in scope 3, it is crucial that Inditex takes action to reduce these emissions and achieve its targets. Based on public data sources, no measures to increase intrinsic sustainability were identified. In addition, improvements could be made to further engage all actors in the value chain. No customer engagement strategy seems to have been clearly defined in the annual environmental information publication, while Inditex could encourage its customers to turn to more sustainable options (second-hand, products made from recycled fibers, etc.). Regarding the evolution of its business model, Zara Pre-Owned represents a minimal part of the group's turnover and the expected deployment of this business model has not been made public. As Inditex is regularly singled out for its rapid replacement of pieces / for the many year-round collections ("fast fashion" model), it should focus its efforts on the decarbonization of its current business model (for example by offering fewer collections, or by producing fewer references per collection).