In 2013, Inditex continued to integrate sustainability criteria for the use of water in all of its business areas, thanks to the implementation of its Global Water Management Strategy. All of the proposed commitments and guidelines have been drafted in line with the CEO Water Mandate initiative promoted by the United Nations and endorsed by Inditex.

Further information at http://www.inditex.com/en/sustainability/environment/water

This section focuses on the initiatives carried out in the supply chain. However, as is shown in the following graph, Inditex is carrying out initiatives to ensure correct water management in each and every one of the links of its value chain.

Main initiatives developed as part of the Global Water Management Strategy in 2013

Master Plan for Water Management in the Supply Chain

The rational use of water and “zero discharge” of undesirable chemical substances are given special attention in the Master Plan for Water Management in the Supply Chain. This plan sets out the joint work of Inditex and its suppliers to integrate both of these criteria in the whole of the production process.

In 2013, Inditex published the results achieved on a specific website designed for the purpose of the plan in order to disseminate actions and developments in this area throughout the whole of the supply chain.

Further information at www.wateractionplan.com

“Zero discharge”

The commitment to “Zero Discharge” of Hazardous Chemicals 2020 was adopted by Inditex in November 2012.

Throughout 2013, Inditex continued to make progress in fulfilling this commitment, paying special attention in its supply chain to the 11 priority groups of undesirable chemical substances. The results yielded by water discharge samples provided by the Group’s main suppliers have been published to this purpose.

Inditex’s Chemicals Guidelines for achieving “zero discharge”

Inditex has set out its commitment to the elimination of undesired chemical substances from its supply chain with the publication of the Inditex Chemicals Guidelines for achieving “zero discharge”.

These guidelines were applied in the supply chain in 2013 based on the following programmes:

• appropriate chemicals management in the manufacturing process: Ready to Manufacture programme.
• compliance with the Product Restricted Substances List (included in the Clear to Wear standard) and the Manufacturing Restricted Substances List (regulated by the Green to Wear standard): Programme of audits and capacity-building for “zero discharge”.
• the promotion of green chemicals via the drafting of guides to safe alternatives: The List, By Inditex programme.
• appropriate water management both in use and disposal: an auditing and technical capacity-building programme for “zero discharge” and Bangladesh Water PaCT.

Manufacturing Restricted Substances List (MRSL)

As a result of its commitment regarding the use of chemical substances in the manufacturing process, in 2013 Inditex published the Manufacturing Restricted Substances List.

This document specifies the restrictions and prohibitions on the chemical substances used in the main phases of manufacture of the products sold by Inditex. This restricted list must be observed by Inditex suppliers participating in wet processes (dyeing, printing, finishing factories and laundries, among others).

In the drafting of the list consideration was given not only to the strictest international legislation, but also to consultations made with experts of the textile industry, chemical product companies and suppliers of the Group.

Likewise, Inditex participated in the development of the ranking of hazardous chemicals, an initiative created as part of the Joint Roadmap towards Zero Discharge of Hazardous Chemicals (ZDHC). This methodology allows the updating and reviewing of the MRSL.

Further information at www.roadmaptozero.com

The Manufacturing Restricted Substances List complements the Product Restricted Substances List included in the Clear to Wear product health standard.

Programme of audits and capacity building in the supply chain

Inditex verifies and controls compliance with both lists of restricted substances (RSL and MRSL) by means of product analyses, chemical management audits and discharge quality standards audits. The latter controls consist of taking random water samples from Inditex’s supply chain to check that the Group’s suppliers comply with the discharge quality standards set out in each country’s national legislation and the Manufacturing Restricted Substances List. Moreover, in the framework of the Master Plan for Water Management in the Supply Chain and the commitment to “zero discharge”, a capacity building project was carried out in the supply chain. This project allowed work to be performed in close collaboration with suppliers and the factories themselves to achieve correct management of chemical products, guaranteeing compliance with Inditex’s Chemicals Guidelines.

In 2013 Inditex carried out the following actions:

• Analysis of suppliers and own supply chain and assessment of awareness and application of the Inditex Chemicals Guidelines. The participation and collaboration of more than 50 suppliers, some 16% of the supply chain, allowed the performance of 101 audits in wet process plants – dyeing, washing, printing and fabric finishing installations – in China (39), India (28) and Bangladesh (34).
• Exhaustive investigation of the 11 priority groups of undesirable chemical substances. Water entering and leaving each plant was analysed to check for the presence of a total of 121 chemical substances belonging to the 11 groups of priority chemicals. The results obtained from the 101 factories were checked by the Water and Environment Engineering Group (GEAMA) of the University of A Coruña. Similarly, numerous plants published the results on the website of the Institute of Public and Environmental Affairs of China (IPE), a non-profit organisation which disseminates environmental information on Chinese companies in order to promote the improvement of their facilities in environmental matters. In this sense, it must be stressed that Inditex and the University of A Coruña have signed a framework collaboration agreement for the development of activities aimed at introducing improvements concerning the use and management of water.
  
  The agreement is intended to achieve a more sustainable and rational management of water in the world and the preservation of the environmental quality of water basins. The actions planned as part of the agreement include the performance of studies and investigations and the validation of the analytical results published in this platform and which have been carried out by external laboratories.

Further information at www.wateractionplan.com

• Phase of capacity building and improved performance in the management of chemicals and water. In 2013, Inditex held training sessions with those in charge of environment, health and safety in the suppliers and plants taking part in the project in order to improve the use of chemical substances in the manufacturing process and correct water management. In this sense, and in the framework of the Joint Roadmap towards “Zero Discharge”, Inditex is leading the development of training materials for suppliers regarding the use of chemical substances in manufacture.
  
  This phase is not solely limited to theoretical training. In the event that priority chemical substances are detected in the water samples, a corrective plan of action was defined in conjunction with the installation in which the chemical products that must be replaced or which require a more specific analysis were identified.

As a result of the previous investigations and specific corrective plans of action, the following success cases in some of the analysed suppliers can be highlighted:

• Elimination of ethoxylated alkyl phenol (APEOs): These chemical substances are mainly found in detergents and lubricants used to wash garments. Inditex made an analysis of the inventory of chemicals used and several samples of its auxiliary chemical products were analysed. The identification and withdrawal of chemical products containing APEOs allowed the concentration of these substances in subsequent discharge samples to be eliminated.
• Elimination of perfluorocarbons (PFCs): This group of chemicals is used for their impermeable and non-adherent properties in the manufacture of water-resistant garments. The dissemination of the Guide to PFC-free alternatives among Inditex suppliers and the capacity building of these suppliers has enabled the manufacture of outer garments which repel water while using auxiliary chemical products which comply with the Group’s policy. Inditex has prohibited the use of PFCs C6, C7 and C8 in the manufacture of its products as of 2014.

Bangladesh Water PaCT

Inditex takes part along with eight textile brands in the Bangladesh Water PaCT. This initiative seeks to promote a change in the textile sector in Bangladesh. For four years, Inditex along with other brands will take part in different activities involving an environmental and social improvement in so-called wet processes, that is, in the processes of dyeing, washing, printing and other finishes.

Within the framework of this project, in 2013 Inditex selected 10 plants to take part in several awareness-raising and water and energy consumption reduction workshops. The advice that these plants will receive will enable them, among other things, to reduce their wastewater and emissions and to lower their general costs by between 30 and 50%.

Further information at http://www.textilepact.org/