The purpose of the Annual Report is to communicate to all stakeholders how Inditex creates value in the short, medium and long term. It is therefore presented as an Integrated Report, which is supplemented with the information from the corporate webpage: www.inditex.com

In compiling the Annual Report, Inditex has always positioned itself at the forefront of reporting techniques, with the maxim of always adopting best practices. This year, it should be noted that the Annual Report has taken the new Global Reporting Initiative standards as benchmark. These standards were launched on 19 October 2016 and replace the previous GRI-G4 reporting guide. Inditex has not only followed the principles and guidelines of the new standards, but also actively participates in the GRI Standards Pioneers Programme, sharing the process of learning to use the new standards with companies from other sectors.

In light of all of the foregoing, this Report presents issues that reflect the significant economic, environmental and social impacts of Inditex and which may influence the evaluation and decision-making of stakeholders. These issues are identified and evaluated from a materiality process that involves the main stakeholders.

In this Report, Inditex also provides information on its contribution to the United Nations Sustainable Development Goals (SDG) which, as this is of recent creation, does not yet have consensual best practices for reporting. Aware of the need for a benchmark framework that guarantees transparency and comparability, Inditex is part of the Corporate Action Group for Reporting on the Sustainable Development Goals, jointly organized by the United Nations Global Compact and the Global Reporting Initiative. The objective of this multidisciplinary group, involving companies from different sectors as well as other entities of reference, is to outline the future of the corporate report on SDG and to bring together best practices in this matter.

Accordingly, the preparation of this Annual Report is based on the principles of the UN Global Compact, the principles and indications of the Global Reporting Initiative standards, the International <IR> Framework and those principles included in the AccountAbility AA1000 APS (2008) norm.

Inditex’s 2016 Annual Report has been verified by SGS ICS Ibérica, S.A., in accordance with ISO 19011 and in line with the principles established in the standards of the Global Reporting Initiative (GRI), the principles established in the International Reporting Framework, and AA1000 Accountability Principles Standard 2008 (AA1000APS).

A selection of twenty relevant indicators has been reviewed by KPMG Asesores, in accordance with ISAE3000 standard. Since the start of this review in 2010, Inditex has been expanding the number of revised indicators, in line with the company’s philosophy of ongoing improvement also in terms of reporting and in order to continue to progress in the level of ensuring transparency and truthfulness of the data.

The selection of the twenty indicators to be reviewed by KPMG was based on Inditex’s annual materiality analysis, carried out in conjunction with stakeholders.

The result of the verifications demonstrate that the application level (In Accordance - Comprehensive Option) is appropriate.