This Annual Report has been defined and elaborated in accordance with the comprehensive option of the new G4 Guidelines from the Global Reporting Initiative (GRI). For the elaboration of this report, Inditex has used the G4 principles for defining report content:

• Stakeholders participation: Inditex identifies and keeps a constant dialogue with its stakeholders. By doing this, the Group is able to describe its further response to its stakeholders’ expectations and interests.
• Sustainability strategic context: Inditex contributes, or pretends to do so in the future, to the improvement of the economic, environmental and social trends, advances and conditions, at a local, regional or global level, all of them interconnected.
• Materiality: Inditex covers those aspects and indicators which best reflect the organisation’s most significant social, environmental and economic impacts, or those which could be substantially influential on its stakeholders’ evaluations and decisions.
• Exhaustiveness: the scope of the indicators Inditex is using and the definition of the information’s scope must be enough to reflect the social, economic and environmental significant impacts and to allow that stakeholders are able to evaluate the Group’s performance during the fiscal year.

In accordance with the principles established in the G4 Guide, this report’s content has been determined from a materiality analysis, aimed at identifying the economic, environmental and social impacts of Inditex’s value chain and their influence in its stakeholders’ decisions.

As a result of consulting its stakeholders, Inditex has identified 30 relevant issues which are the foundations of this Annual Report, as reflected in the G4 Guide indicators. In this way, Inditex responds to those issues that are of interest for the Group’s different stakeholders.

In addition to the material main indicators, those indicators that are specific to the textile and footwear sector, which Inditex helped draft, have also been included and are identified as follows:

16 of the GRI indicators identified in the materiality analysis carried out by Inditex were analysed by KPMG auditors, pursuant to regulation ISAE 3000. These indicators can be found in the GRI index and are marked with this symbol:

Global Compact Principles

Inditex adheres to the U.N. Global Compact. In the GRI index of this Report, which also doubles as a Report on Progress, the different parts of the document related to each of the Global Compact principles are indicated.

• Principle 1. Businesses should support and respect the protection of internationally proclaimed human rights.
• Principle 2. Businesses should make sure that they are not complicit in human rights abuses.
• Principle 3. Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining.
• Principle 4. Businesses should uphold the elimination of all forms of forced and compulsory labour.
• Principle 5. Businesses should uphold the effective abolition of child labour.
• Principle 6. Businesses should uphold the elimination of discrimination in respect of employment and occupation.
• Principle 7. Businesses should support a precautionary approach to environmental challenges.
• Principle 8. Businesses should undertake initiatives to promote greater environmental responsibility.
• Principle 9. Businesses should encourage the development and diffusion of environmentally friendly technologies.
• Principle 10. Businesses should work against corruption in all its forms, including extortion and bribery.